Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Oct. 31, 2013 | Nov. 30, 2013 | Apr. 30, 2013 | |
Document and Entity Information | ' | ' | ' |
Entity Registrant Name | 'HEWLETT PACKARD CO | ' | ' |
Entity Central Index Key | '0000047217 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Oct-13 | ' | ' |
Amendment Flag | 'false | ' | ' |
Current Fiscal Year End Date | '--10-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Public Float | ' | ' | $38,923,374,469 |
Entity Common Stock, Shares Outstanding | ' | 1,908,777,048 | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Consolidated_Statements_of_Ear
Consolidated Statements of Earnings (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Net revenue: | ' | ' | ' |
Products | $72,398 | $77,887 | $84,757 |
Services | 39,453 | 42,008 | 42,039 |
Financing income | 447 | 462 | 449 |
Total net revenue | 112,298 | 120,357 | 127,245 |
Costs and expenses: | ' | ' | ' |
Cost of products | 55,632 | 59,468 | 65,167 |
Cost of services | 30,436 | 32,600 | 31,945 |
Financing interest | 312 | 317 | 306 |
Research and development | 3,135 | 3,399 | 3,254 |
Selling, general and administrative | 13,267 | 13,500 | 13,577 |
Amortization of intangible assets | 1,373 | 1,784 | 1,607 |
Impairment of goodwill and intangible assets | ' | 18,035 | 885 |
Restructuring charges | 990 | 2,266 | 645 |
Acquisition-related charges | 22 | 45 | 182 |
Total operating expenses | 105,167 | 131,414 | 117,568 |
Earnings (loss) from operations | 7,131 | -11,057 | 9,677 |
Interest and other, net | -621 | -876 | -695 |
Earnings (loss) before taxes | 6,510 | -11,933 | 8,982 |
Provision for taxes | -1,397 | -717 | -1,908 |
Net earnings (loss) | $5,113 | ($12,650) | $7,074 |
Net earnings (loss) per share: | ' | ' | ' |
Basic (in dollars per share) | $2.64 | ($6.41) | $3.38 |
Diluted (in dollars per share) | $2.62 | ($6.41) | $3.32 |
Weighted-average shares used to compute net earnings (loss) per share: | ' | ' | ' |
Basic (in shares) | 1,934 | 1,974 | 2,094 |
Diluted (in shares) | 1,950 | 1,974 | 2,128 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Consolidated Statements of Comprehensive Income | ' | ' | ' |
Net earnings (loss) | $5,113 | ($12,650) | $7,074 |
Change in unrealized gains on available-for-sale securities: | ' | ' | ' |
Unrealized gains arising during the period | 52 | 25 | 17 |
Gains reclassified into earnings | -49 | ' | ' |
Change in unrealized gains on available-for-sale securities | 3 | 25 | 17 |
Change in unrealized (losses) gains on cash flow hedges: | ' | ' | ' |
Unrealized (losses) gains arising during the period | -243 | 335 | -374 |
Losses (gains) reclassified into earnings | 106 | -399 | 658 |
Change in unrealized gains / losses on cash flow hedges | -137 | -64 | 284 |
Change in unrealized components of defined benefit plans: | ' | ' | ' |
Gains (losses) arising during the period | 1,953 | -2,457 | -289 |
Amortization of actuarial loss and prior service benefit | 326 | 172 | 174 |
Curtailments, settlements and other | 25 | 122 | 2 |
Change in unrealized components of defined benefit plans | 2,304 | -2,163 | -113 |
Change in cumulative translation adjustment | -150 | -47 | 66 |
Other comprehensive income (loss) before taxes | 2,020 | -2,249 | 254 |
(Provision) benefit for taxes | -239 | 188 | 85 |
Other comprehensive income (loss), net of tax | 1,781 | -2,061 | 339 |
Comprehensive income (loss) | $6,894 | ($14,711) | $7,413 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Oct. 31, 2013 | Oct. 31, 2012 |
In Millions, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $12,163 | $11,301 |
Accounts receivable | 15,876 | 16,407 |
Financing receivables | 3,144 | 3,252 |
Inventory | 6,046 | 6,317 |
Other current assets | 13,135 | 13,360 |
Total current assets | 50,364 | 50,637 |
Property, plant and equipment | 11,463 | 11,954 |
Long-term financing receivables and other assets | 9,556 | 10,593 |
Goodwill | 31,124 | 31,069 |
Intangible assets | 3,169 | 4,515 |
Total assets | 105,676 | 108,768 |
Current liabilities: | ' | ' |
Notes payable and short-term borrowings | 5,979 | 6,647 |
Accounts payable | 14,019 | 13,350 |
Employee compensation and benefits | 4,436 | 4,058 |
Taxes on earnings | 1,203 | 846 |
Deferred revenue | 6,477 | 7,494 |
Accrued restructuring | 901 | 771 |
Other accrued liabilities | 12,506 | 13,500 |
Total current liabilities | 45,521 | 46,666 |
Long-term debt | 16,608 | 21,789 |
Other liabilities | 15,891 | 17,480 |
Commitments and contingencies | ' | ' |
HP stockholders' equity | ' | ' |
Preferred stock, $0.01 par value (300 shares authorized; none issued) | ' | ' |
Common stock, $0.01 par value (9,600 shares authorized; 1,908 and 1,963 shares issued and outstanding, respectively) | 19 | 20 |
Additional paid-in capital | 5,465 | 6,454 |
Retained earnings | 25,563 | 21,521 |
Accumulated other comprehensive loss | -3,778 | -5,559 |
Total HP stockholders' equity | 27,269 | 22,436 |
Non-controlling interests | 387 | 397 |
Total stockholders' equity | 27,656 | 22,833 |
Total liabilities and stockholders' equity | $105,676 | $108,768 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Oct. 31, 2013 | Oct. 31, 2012 |
In Millions, except Per Share data, unless otherwise specified | ||
Consolidated Balance Sheets | ' | ' |
Preferred stock, par value (in dollars per share) | $0.01 | $0.01 |
Preferred stock, shares authorized | 300 | 300 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized | 9,600 | 9,600 |
Common stock, shares issued | 1,908 | 1,963 |
Common stock, shares outstanding | 1,908 | 1,963 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Cash flows from operating activities: | ' | ' | ' |
Net earnings (loss) | $5,113 | ($12,650) | $7,074 |
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities: | ' | ' | ' |
Depreciation and amortization | 4,611 | 5,095 | 4,984 |
Impairment of goodwill and intangible assets | ' | 18,035 | 885 |
Stock-based compensation expense | 500 | 635 | 685 |
Provision for doubtful accounts | 61 | 142 | 81 |
Provision for inventory | 275 | 277 | 217 |
Restructuring charges | 990 | 2,266 | 645 |
Deferred taxes on earnings | -410 | -711 | 166 |
Excess tax benefit from stock-based compensation | -2 | -12 | -163 |
Other, net | 443 | 265 | -46 |
Changes in operating assets and liabilities (net of acquisitions): | ' | ' | ' |
Accounts receivable | 530 | 1,687 | 448 |
Financing receivables | 484 | -418 | -675 |
Inventory | -4 | 890 | -1,252 |
Accounts payable | 541 | -1,414 | 275 |
Taxes on earnings | 417 | -320 | 610 |
Restructuring | -904 | -840 | -1,002 |
Other assets and liabilities | -1,037 | -2,356 | -293 |
Net cash provided by operating activities | 11,608 | 10,571 | 12,639 |
Cash flows from investing activities: | ' | ' | ' |
Investment in property, plant and equipment | -3,199 | -3,706 | -4,539 |
Proceeds from sale of property, plant and equipment | 653 | 617 | 999 |
Purchases of available-for-sale securities and other investments | -1,243 | -972 | -96 |
Maturities and sales of available-for-sale securities and other investments | 1,153 | 662 | 68 |
Payments in connection with business acquisitions, net of cash acquired | -167 | -141 | -10,480 |
Proceeds from business divestiture, net | ' | 87 | 89 |
Net cash used in investing activities | -2,803 | -3,453 | -13,959 |
Cash flows from financing activities: | ' | ' | ' |
Repayment of commercial paper and notes payable, net | -154 | -2,775 | -1,270 |
Issuance of debt | 279 | 5,154 | 11,942 |
Payment of debt | -5,721 | -4,333 | -2,336 |
Issuance of common stock under employee stock plans | 288 | 716 | 896 |
Repurchase of common stock | -1,532 | -1,619 | -10,117 |
Excess tax benefit from stock-based compensation | 2 | 12 | 163 |
Cash dividends paid | -1,105 | -1,015 | -844 |
Net cash used in financing activities | -7,943 | -3,860 | -1,566 |
Increase (decrease) in cash and cash equivalents | 862 | 3,258 | -2,886 |
Cash and cash equivalents at beginning of period | 11,301 | 8,043 | 10,929 |
Cash and cash equivalents at end of period | 12,163 | 11,301 | 8,043 |
Supplemental cash flow disclosures: | ' | ' | ' |
Income taxes paid (net of refunds) | 1,391 | 1,750 | 1,134 |
Interest expense paid | $837 | $856 | $451 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Total | Total HP Stockholders' Equity | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Non-controlling Interests | Comprehensive Income (loss) |
In Millions, except Share data in Thousands, unless otherwise specified | ||||||||
Balance at Oct. 31, 2010 | $40,781 | $40,449 | $22 | $11,569 | $32,695 | ($3,837) | $332 | ' |
Balance (in shares) at Oct. 31, 2010 | ' | ' | 2,203,898 | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' | ' | ' |
Net earnings (loss) | 7,074 | 7,074 | ' | ' | 7,074 | ' | ' | 7,074 |
Other comprehensive income (loss) | 339 | 339 | ' | ' | ' | 339 | ' | 339 |
Comprehensive income (loss) | 7,413 | 7,413 | ' | ' | ' | ' | ' | 7,413 |
Issuance of common stock in connection with employee stock plans and other | 752 | 752 | 1 | 751 | ' | ' | ' | ' |
Issuance of common stock in connection with employee stock plans and other (in shares) | ' | ' | 45,461 | ' | ' | ' | ' | ' |
Repurchases of common stock | -9,968 | -9,968 | -3 | -6,296 | -3,669 | ' | ' | ' |
Repurchases of common stock (in shares) | -259,000 | ' | -258,853 | ' | ' | ' | ' | ' |
Tax benefits (deficiency) from employee stock plans | 128 | 128 | ' | 128 | ' | ' | ' | ' |
Cash dividends declared | -834 | -834 | ' | ' | -834 | ' | ' | ' |
Stock-based compensation expense | 685 | 685 | ' | 685 | ' | ' | ' | ' |
Changes in non-controlling interest | 47 | ' | ' | ' | ' | ' | 47 | ' |
Balance at Oct. 31, 2011 | 39,004 | 38,625 | 20 | 6,837 | 35,266 | -3,498 | 379 | ' |
Balance (in shares) at Oct. 31, 2011 | ' | ' | 1,990,506 | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' | ' | ' |
Net earnings (loss) | -12,650 | -12,650 | ' | ' | -12,650 | ' | ' | -12,650 |
Other comprehensive income (loss) | -2,061 | -2,061 | ' | ' | ' | -2,061 | ' | -2,061 |
Comprehensive income (loss) | -14,711 | -14,711 | ' | ' | ' | ' | ' | -14,711 |
Issuance of common stock in connection with employee stock plans and other | 683 | 683 | ' | 682 | 1 | ' | ' | ' |
Issuance of common stock in connection with employee stock plans and other (in shares) | ' | ' | 39,068 | ' | ' | ' | ' | ' |
Repurchases of common stock | -1,626 | -1,626 | ' | -1,525 | -101 | ' | ' | ' |
Repurchases of common stock (in shares) | -67,000 | ' | -66,736 | ' | ' | ' | ' | ' |
Tax benefits (deficiency) from employee stock plans | -175 | -175 | ' | -175 | ' | ' | ' | ' |
Cash dividends declared | -995 | -995 | ' | ' | -995 | ' | ' | ' |
Stock-based compensation expense | 635 | 635 | ' | 635 | ' | ' | ' | ' |
Changes in non-controlling interest | 18 | ' | ' | ' | ' | ' | 18 | ' |
Balance at Oct. 31, 2012 | 22,833 | 22,436 | 20 | 6,454 | 21,521 | -5,559 | 397 | ' |
Balance (in shares) at Oct. 31, 2012 | 1,963,000 | ' | 1,962,838 | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' | ' | ' |
Net earnings (loss) | 5,113 | 5,113 | ' | ' | 5,113 | ' | ' | 5,113 |
Other comprehensive income (loss) | 1,781 | 1,781 | ' | ' | ' | 1,781 | ' | 1,781 |
Comprehensive income (loss) | 6,894 | 6,894 | ' | ' | ' | ' | ' | 6,894 |
Issuance of common stock in connection with employee stock plans and other | 208 | 208 | ' | 210 | -2 | ' | ' | ' |
Issuance of common stock in connection with employee stock plans and other (in shares) | ' | ' | 22,950 | ' | ' | ' | ' | ' |
Repurchases of common stock | -1,546 | -1,546 | -1 | -1,550 | 5 | ' | ' | ' |
Repurchases of common stock (in shares) | -77,000 | ' | -77,905 | ' | ' | ' | ' | ' |
Tax benefits (deficiency) from employee stock plans | -149 | -149 | ' | -149 | ' | ' | ' | ' |
Cash dividends declared | -1,074 | -1,074 | ' | ' | -1,074 | ' | ' | ' |
Stock-based compensation expense | 500 | 500 | ' | 500 | ' | ' | ' | ' |
Changes in non-controlling interest | -10 | ' | ' | ' | ' | ' | -10 | ' |
Balance at Oct. 31, 2013 | $27,656 | $27,269 | $19 | $5,465 | $25,563 | ($3,778) | $387 | ' |
Balance (in shares) at Oct. 31, 2013 | 1,908,000 | ' | 1,907,883 | ' | ' | ' | ' | ' |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended |
Oct. 31, 2013 | |
Summary of Significant Accounting Policies | ' |
Summary of Significant Accounting Policies | ' |
Note 1: Summary of Significant Accounting Policies | |
Principles of Consolidation | |
The Consolidated Financial Statements include the accounts of Hewlett-Packard Company ("HP") and the subsidiaries and affiliates in which HP has a controlling financial interest or is the primary beneficiary. HP accounts for equity investments in companies over which HP has the ability to exercise significant influence but does not hold a controlling interest under the equity method, and HP records its proportionate share of income or losses in Interest and other, net in the Consolidated Statements of Earnings. HP presents non-controlling interests as a separate component within Total stockholder's equity in the Consolidated Balance Sheets. Net earnings attributable to the non-controlling interests are eliminated within Interest and other, net in the Consolidated Statements of Earnings and are not presented separately as they were not material for any period presented. HP has eliminated all significant intercompany accounts and transactions. | |
Reclassifications and Segment Reorganization | |
HP has made certain segment and business unit realignments in order to optimize its operating structure. Reclassifications of certain prior-year segment and business unit financial information have been made to conform to the current-year presentation. None of the changes impacts HP's previously reported consolidated net revenue, earnings from operations, net earnings or net earnings per share. See Note 18 for a further discussion of HP's segment reorganization. | |
Use of Estimates | |
The preparation of financial statements in accordance with U.S. generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions that affect the amounts reported in HP's Consolidated Financial Statements and accompanying notes. Actual results could differ materially from those estimates. | |
Revenue Recognition | |
HP derives net revenue primarily from the sale of products and services. The following revenue recognition policies define the manner in which HP accounts for sales transactions. | |
HP recognizes revenue when persuasive evidence of a sales arrangement exists, delivery has occurred or services are rendered, the sales price or fee is fixed or determinable, and collectibility is reasonably assured. Additionally, HP recognizes hardware revenue on sales to channel partners, including resellers, distributors or value-added solution providers at the time of delivery when the channel partners have economic substance apart from HP, and HP has completed its obligations related to the sale. HP generally recognizes revenue for its stand-alone software sales to channel partners upon receiving evidence that the software has been sold to a specific end user. | |
When a sales arrangement contains multiple elements, such as hardware and software products, licenses and/or services, HP allocates revenue to each element based on a selling price hierarchy. The selling price for a deliverable is based on its vendor specific objective evidence ("VSOE") of selling price, if available, third party evidence ("TPE") if VSOE of selling price is not available, or estimated selling price ("ESP") if neither VSOE of selling price nor TPE is available. HP establishes VSOE of selling price using the price charged for a deliverable when sold separately and, in rare instances, using the price established by management having the relevant authority. HP establishes TPE of selling price by evaluating largely similar and interchangeable competitor products or services in standalone sales to similarly situated customers. HP establishes ESP, based on management judgment, considering internal factors such as margin objectives, pricing practices and controls, customer segment pricing strategies and the product life cycle. Consideration is also given to market conditions, such as competitor pricing strategies and industry technology life cycles. In arrangements with multiple elements, HP determines allocation of the transaction price at inception of the arrangement based on the relative selling price of each unit of accounting. | |
In multiple element arrangements where more-than-incidental software deliverables are included, HP allocates the transaction price to the individual units of accounting for the non-software deliverables and to the software deliverables as a group using the relative selling prices of each of the deliverables in the arrangement based on the selling price hierarchy. If the arrangement contains more than one software deliverable, the transaction price allocated to the group of software deliverables is then allocated to each component software deliverable. | |
HP limits the amount of revenue recognized for delivered elements to the amount that is not contingent on the future delivery of products or services, future performance obligations or subject to customer-specified return or refund privileges. | |
HP evaluates each deliverable in an arrangement to determine whether it represents a separate unit of accounting. A deliverable constitutes a separate unit of accounting when it has standalone value and there are no customer-negotiated refund or return rights or other contingencies present for the delivered elements. If the arrangement includes a customer-negotiated refund or return right relative to the delivered item, and the delivery and performance of the undelivered item is considered probable and substantially within HP's control, the delivered element constitutes a separate unit of accounting. In instances when the aforementioned criteria are not met, the deliverable is combined with the undelivered elements and the allocation of the arrangement consideration and method of revenue recognition is determined for the combined unit as a single unit of accounting. | |
HP records estimated reductions to revenue for customer and distributor programs and incentive offerings, including price protection, promotions, other volume-based incentives and expected returns. Future market conditions and product transitions may require HP to take actions to increase customer incentive offerings, possibly resulting in an incremental reduction of revenue at the time the incentive is offered. Additionally, certain incentive programs require HP to estimate, based on historical experience and the specific terms and conditions of the incentive, the number of customers who will actually redeem the incentive. | |
In instances when revenue is derived from sales of third-party vendor services, HP records revenue on a gross basis when HP is a principal to the transaction and net of costs when HP is acting as an agent between the customer and the vendor. HP considers several factors to determine whether it is a principal or an agent, most notably whether HP is the primary obligor to the customer, has established its own pricing, and has inventory and credit risks. | |
HP reports revenue net of any required taxes collected from customers and remitted to government authorities, with the collected taxes recorded as current liabilities until remitted to the relevant government authority. | |
Products revenue | |
Hardware | |
Under HP's standard terms and conditions of sale, HP transfers title and risk of loss to the customer at the time product is delivered to the customer and recognizes revenue accordingly, unless customer acceptance is uncertain or significant obligations remain. HP reduces revenue for estimated customer returns, price protection, rebates and other programs offered under sales agreements established by HP with its distributors and resellers. HP records revenue from the sale of equipment under sales-type leases as product revenue at the inception of the lease. HP accrues the estimated cost of post-sale obligations, including basic product warranties, based on historical experience, at the time HP recognizes revenue. | |
Software | |
HP recognizes revenue from perpetual software licenses at the inception of the license term, assuming all revenue recognition criteria have been met. Term-based software license revenue is generally recognized ratably over the term of the license. HP uses the residual method to allocate revenue to software licenses at the inception of the license term when VSOE of fair value for all undelivered elements exists, such as post-contract support, and all other revenue recognition criteria have been satisfied. HP recognizes revenue generated from maintenance and unspecified upgrades or updates on a when-and-if-available basis ratably over the period during which such items are delivered. HP recognizes revenue for software hosting or software-as-a-service ("SaaS") arrangements as the service is delivered, generally on a straight-line basis, over the contractual period of performance. In software hosting arrangements where licenses are sold, HP recognizes the associated software revenue according to whether perpetual licenses or term licenses are sold, subject to the above guidance. In such software hosting arrangements HP considers the rights provided to the customer (e.g., ownership of a license, contract termination provisions and the feasibility of the customer to operate the software) in determining how to account for the software license fees. In SaaS arrangements where software licenses are not sold, HP recognizes the entire arrangement ratably over the term of the subscription arrangement. | |
Services revenue | |
HP recognizes revenue from fixed-price support or maintenance contracts, including extended warranty contracts and software post-contract customer support agreements, ratably over the contract period and recognizes the costs associated with these contracts as incurred. For time and material contracts, HP recognizes revenue as services are rendered and costs as they are incurred. HP recognizes revenue from fixed-price consulting arrangements over the contract period on a proportional performance basis, as determined by the relationship of actual labor costs incurred to date compared to the estimated total contract labor costs. HP recognizes revenue on certain design and build projects (to design, develop and construct software and systems) using the percentage-of-completion method. HP uses the cost-to-cost method of measurement towards completion as determined by the percentage of cost incurred to date compared to the total estimated costs of the project. Estimates of project costs for fixed-price contracts are regularly revised during the life of a contract. HP records revisions to cost estimates, and overall contract losses where applicable, in the period in which the facts that give rise to such changes become known. HP uses the completed contract method if reasonable and reliable cost estimates for a project cannot be made. | |
HP generally recognizes outsourcing services revenue when the service is provided and the amount earned is not contingent upon any future event. If the service is provided evenly during the contract term but service billings are uneven, HP generally recognizes revenue on a straight-line basis over the contract term. Losses on outsourcing arrangements are recognized in the period in which such contractual losses become probable and estimable. | |
HP recognizes revenue from operating leases on a straight-line basis as service revenue over the rental period. | |
HP records amounts invoiced to customers in excess of revenue recognized as deferred revenue until the revenue recognition criteria are met. HP records revenue that is earned and recognized in excess of amounts invoiced on services contracts as trade receivables. | |
Financing income | |
Sales-type and direct-financing leases produce financing income, which HP recognizes at consistent rates of return over the lease term. | |
Deferred revenue and deferred costs | |
Deferred revenue represents amounts received in advance for product support contracts, software customer support contracts, outsourcing startup services work, consulting and integration projects, product sales or leasing income. The product support contracts include stand-alone product support packages, routine maintenance service contracts, upgrades or extensions to standard product warranty, as well as high-availability services for complex, global, networked, multi-vendor environments. HP defers these support service amounts at the time HP bills the customer, and HP then generally recognizes the amounts ratably over the support contract term or as HP delivers the services. | |
HP recognizes costs associated with outsourcing contracts as incurred, unless such costs relate to the startup phase of the outsourcing contract and are considered direct and incremental to the contract, in which case HP defers and subsequently amortizes such costs over the contractual services period. HP amortizes deferred contract costs on a straight-line basis over the remaining original term of the contract unless facts and circumstances of the contract indicate a shorter period is more appropriate. Based on actual and projected contract financial performance indicators, HP analyzes the recoverability of deferred contract costs associated with a particular contract on a periodic basis using the undiscounted estimated cash flows of the contract over its remaining term. If such undiscounted cash flows are insufficient to recover the long-lived assets and deferred contract costs, the deferred contract costs are written down based on a discounted cash flow model. If a cash flow deficiency remains after reducing the balance of the deferred contract costs to zero, HP evaluates any remaining long-lived assets related to that contract for impairment. | |
Shipping and Handling | |
HP includes costs related to shipping and handling in cost of sales. | |
Advertising | |
HP expenses advertising costs as incurred or when the advertising is first run. Such costs totaled approximately $878 million in fiscal 2013, $1.0 billion in fiscal 2012 and $1.2 billion in fiscal 2011. | |
Software Development Costs | |
HP capitalizes costs incurred to acquire or develop software for resale subsequent to the software product establishing technological feasibility, if significant. HP amortizes capitalized software development costs using the greater of the straight-line amortization method or the ratio that current gross revenues for a product bear to the total current and anticipated future gross revenues for that product. The estimated useful lives for capitalized software for resale are generally three years or less. Software development costs incurred subsequent to a product establishing technological feasibility are usually not significant. In those instances, HP expenses such costs as incurred. | |
Stock-Based Compensation | |
HP determines stock-based compensation expense for all share-based payment awards based on the measurement date fair value. HP recognizes compensation cost only for those awards expected to meet the service and performance vesting conditions on a straight-line basis over the requisite service period of the award. HP determines compensation costs at the aggregate grant level for service-based awards and at the individual vesting tranche level for awards with performance and/or market conditions. HP estimates the forfeiture rate based on its historical experience. | |
Restructuring | |
HP records restructuring charges associated with management-approved restructuring plans to reorganize one or more of HP's business segments, to remove duplicative headcount and infrastructure associated with business acquisitions or to simplify business processes and accelerate innovation. Restructuring charges can include severance costs to eliminate a specified number of employees, infrastructure charges to vacate facilities and consolidate operations, and contract cancellation costs. HP records restructuring charges based on estimated employee terminations and site closure and consolidation plans. HP accrues for severance and other employee separation costs under these actions when it is probable that benefits will be paid and the amount is reasonably estimable. The rates used in determing severance accruals are based on existing plans, historical experiences, and negotiated settlements. | |
Foreign Currency Translation | |
HP uses the U.S. dollar predominately as its functional currency. Assets and liabilities denominated in non-U.S. dollars are remeasured into U.S. dollars at current exchange rates for monetary assets and liabilities and at historical exchange rates for nonmonetary assets and liabilities. Net revenue, costs and expenses are remeasured at monthly average exchange rates prevailing during the period. HP includes gains or losses from foreign currency remeasurement in Interest and other, net in the Consolidated Statement of Earnings. Certain non-U.S. subsidiaries designate the local currency as their functional currency, and HP records the translation of their assets and liabilities into U.S. dollars at the balance sheet dates as translation adjustments and includes them as a component of Accumulated other comprehensive loss in the Consolidated Balance Sheets. | |
Debt and Marketable Equity Securities | |
Debt and marketable equity securities are generally considered available-for-sale and are reported at fair value with unrealized gains and losses, net of applicable taxes, recorded in Accumulated other comprehensive loss in the Consolidated Balance Sheets. Realized gains and losses for available-for-sale securities are calculated based on the specific identification method and included in Interest and other, net in the Consolidated Statement of Earnings. HP monitors its investment portfolio for impairment on a quarterly basis. When the carrying value of an investment in debt securities exceeds its fair value and the decline in value is determined to be an other-than-temporary decline (i.e., when HP does not intend to sell the debt securities and it is not more likely than not that HP will be required to sell the debt securities prior to anticipated recovery of its amortized cost basis), HP records an impairment charge to Interest and other, net in the amount of the credit loss and the balance, if any, to Accumulated other comprehensive loss in the Consolidated Balance Sheets. | |
Allowance for Doubtful Accounts for Accounts Receivable | |
HP establishes an allowance for doubtful accounts for account receivables. HP records a specific reserve for individual accounts when HP becomes aware of specific customer circumstances, such as in the case of bankruptcy filings or a deterioration in the customer's operating results or financial position. If there are additional changes in circumstances related to the specific customer, HP further adjusts estimates of the recoverability of receivables. HP maintains bad debt reserves for all other customers based on a variety of factors, including the use of third-party credit risk models that generate quantitative measures of default probabilities based on market factors, the financial condition of customers, the length of time receivables are past due, trends in the weighted-average risk rating for the portfolio, macroeconomic conditions, information derived from competitive benchmarking, significant one-time events and historical experience. The past due or delinquency status of a receivable is based on the contractual payment terms of the receivable. | |
Inventory | |
HP values inventory at the lower of cost or market. Cost is computed using standard cost which approximates actual cost on a first-in, first-out basis. Adjustments to reduce the cost of inventory to its net realizable value are made, if required, for estimated excess, obsolete or impaired balances. | |
Derivatives | |
HP uses derivative financial instruments, primarily non-speculative forwards, swaps, and options, to hedge certain foreign currency and interest rate exposures. HP also may use other derivative instruments not designated as hedges, such as forwards used to hedge foreign currency balance sheet exposures. HP does not use derivative financial instruments for speculative purposes. See Note 9 for a full description of HP's derivative financial instrument activities and related accounting policies. | |
Property, Plant and Equipment | |
HP states property, plant and equipment at cost less accumulated depreciation. HP capitalizes additions and improvements and expenses maintenance and repairs as incurred. Depreciation is computed using straight-line or accelerated methods over the estimated useful lives of the assets. Estimated useful lives are five to 40 years for buildings and improvements and three to 15 years for machinery and equipment. HP depreciates leasehold improvements over the life of the lease or the asset, whichever is shorter. HP depreciates equipment held for lease over the initial term of the lease to the equipment's estimated residual value. The estimated useful lives of assets used solely to support a customer services contract generally do not exceed the term of the customer contract. Upon retirement or disposition, the asset cost and related accumulated depreciation are removed with any gain or loss recognized in the Consolidated Statements of Earnings. | |
HP capitalizes certain internal and external costs incurred to acquire or create internal use software, principally related to software coding, designing system interfaces and installation and testing of the software. HP amortizes capitalized internal use software costs using the straight-line method over the estimated useful lives of the software, generally from three to five years. | |
Business Combinations | |
HP includes the results of operations of the businesses that it has acquired in HP's consolidated results prospectively from the respective dates of acquisition. HP allocates the fair value of purchase consideration to the assets acquired, liabilities assumed, and non-controlling interests in the acquired entity generally based on their fair values at the acquisition date. The excess of the fair value of purchase consideration over the fair value of these assets acquired, liabilities assumed and non-controlling interests in the acquired entity is recorded as goodwill. The primary items that generate goodwill include the value of the synergies between the acquired companies and HP and the acquired assembled workforce, neither of which qualifies for recognition as an intangible asset. Acquisition-related expenses and restructuring costs are recognized separately from the business combination and are expensed as incurred. | |
Goodwill | |
HP reviews goodwill for impairment annually and whenever events or changes in circumstances indicate the carrying amount of goodwill may not be recoverable. While HP is permitted to conduct a qualitative assessment to determine whether it is necessary to perform a two-step quantitative goodwill impairment test, for its annual goodwill impairment test in the fourth quarter of fiscal 2013, HP performed a quantitative test for all of its reporting units. | |
Goodwill is tested for impairment at the reporting unit level. Except for the Enterprise Group ("EG") and Enterprise Services ("ES"), HP's reporting units are consistent with the reportable segments identified in Note 18. The Enterprise Group includes two reporting units, which are Enterprise Servers, Storage and Networking ("ESSN") and Technology Services ("TS"). ES also consists of two reporting units, which are MphasiS Limited and the remainder of ES. In fiscal 2013, HP made two changes to our reporting units. HP identified MphasiS Limited as a reporting unit apart from the remainder of ES, and in connection with integration activities combined the Autonomy reporting unit with the legacy HP software business reporting unit. | |
In the first step of the impairment test, HP compares the fair value of each reporting unit to its carrying amount. HP estimates the fair value of its reporting units using a weighting of fair values derived most significantly from the income approach and to a lesser extent the market approach. Under the income approach, HP estimates the fair value of a reporting unit based on the present value of estimated future cash flows. HP bases cash flow projections on management's estimates of revenue growth rates and operating margins, taking into consideration industry and market conditions. HP bases the discount rate used on the weighted-average cost of capital adjusted for the relevant risk associated with business-specific characteristics and the uncertainty related to the reporting unit's ability to execute on the projected cash flows. Under the market approach, HP estimates fair value based on market multiples of revenue and earnings derived from comparable publicly-traded companies with similar operating and investment characteristics as the reporting unit. HP weights the fair value derived from the market approach up to 50% of the concluded reporting unit fair value depending on the level of comparability of these publicly-traded companies to the reporting unit. When market comparables are not meaningful or not available, HP estimates the fair value of a reporting unit using only the income approach. For the MphasiS Limited reporting unit, HP used the quoted market price in an active market to estimate fair value. | |
In order to assess the reasonableness of the estimated fair values of HP's reporting units, HP compares the aggregate reporting unit fair values to HP's market capitalization and calculates an implied control premium (the excess of the sum of the reporting units' fair values over HP's market capitalization). HP evaluates the control premium by comparing it to observable control premiums from recent comparable transactions. If the implied control premium is not believed to be reasonable in light of these recent transactions, HP reevaluates reporting unit fair values, which may result in an adjustment to the discount rate and/or other assumptions. This reevaluation could reduce the estimated fair value for certain or all reporting units. | |
If the fair value of the reporting unit exceeds the carrying amount of the net assets assigned to that reporting unit, goodwill is not impaired and no further testing is required. If the fair value of the reporting unit is less than its carrying amount, then HP must perform the second step of the impairment test to measure the amount of impairment loss, if any. In the second step, HP measures the reporting unit's assets, including any unrecognized intangible assets, liabilities and non-controlling interests at fair value in a hypothetical analysis to calculate the implied fair value of goodwill for the reporting unit. If the implied fair value of the reporting unit's goodwill is less than its carrying amount, the difference is recorded as an impairment loss. | |
Intangible Assets and Long-Lived Assets | |
HP reviews intangible assets with finite lives and long-lived assets for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. HP assesses recoverability of the assets based on the undiscounted future cash flows expected to result from the use of the asset and the eventual disposition of the asset. If the undiscounted future cash flows are less than the carrying amount, the asset is impaired. HP measures the amount of impairment loss, if any, as the difference between the carrying amount of the asset and its fair value using an income approach or, when available and appropriate, using a market approach. HP amortizes intangible assets with finite lives using the straight-line method over the estimated economic lives of the assets, ranging from one to ten years. | |
Retirement and Post-Retirement Plans | |
HP has various defined benefit, other contributory and noncontributory retirement and post-retirement plans. HP generally amortizes unrecognized actuarial gains and losses on a straight-line basis over the average remaining estimated service life of participants. In some cases, HP amortizes actuarial gains and losses using the corridor approach. See Note 15 for a full description of these plans and the accounting and funding policies. | |
Taxes on Earnings | |
HP recognizes deferred tax assets and liabilities for the expected tax consequences of temporary differences between the tax bases of assets and liabilities and their reported amounts using enacted tax rates in effect for the year the differences are expected to reverse. HP records a valuation allowance to reduce the deferred tax assets to the amount that is more likely than not to be realized. | |
HP records accruals for uncertain tax positions when HP believes that it is not more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. HP makes adjustments to these accruals when facts and circumstances change, such as the closing of a tax audit or the refinement of an estimate. The provision for income taxes includes the effects of adjustments for uncertain tax positions, as well as the related net interest and penalties. | |
Concentrations of Credit Risk | |
Financial instruments that potentially subject HP to significant concentrations of credit risk consist principally of cash and cash equivalents, investments, accounts receivable from trade customers and contract manufacturers, financing receivables and derivatives. | |
HP maintains cash and cash equivalents, investments, derivatives and certain other financial instruments with various financial institutions. These financial institutions are located in many different geographical regions, and HP's policy is designed to limit exposure to any one institution. As part of its risk management processes, HP performs periodic evaluations of the relative credit standing of the financial institutions. HP has not sustained material credit losses from instruments held at financial institutions. HP utilizes derivative contracts to protect against the effects of foreign currency and interest rate exposures. Such contracts involve the risk of non-performance by the counterparty, which could result in a material loss. | |
HP sells a significant portion of its products through third-party distributors and resellers and, as a result, maintains individually significant receivable balances with these parties. If the financial condition or operations of all of these distributors' and resellers' aggregated accounts deteriorate substantially, HP's operating results could be adversely affected. The ten largest distributor and reseller receivable balances, which were concentrated primarily in North America and Europe, collectively represented approximately 21% and 14% of gross accounts receivable at October 31, 2013 and 2012, respectively. No single customer accounts for more than 10% of accounts receivable. Credit risk with respect to other accounts receivable and financing receivables is generally diversified due to the large number of entities comprising HP's customer base and their dispersion across many different industries and geographical regions. HP performs ongoing credit evaluations of the financial condition of its third-party distributors, resellers and other customers and requires collateral, such as letters of credit and bank guarantees, in certain circumstances. | |
HP utilizes outsourced manufacturers around the world to manufacture HP-designed products. HP may purchase product components from suppliers and sell those components to its outsourced manufacturers creating receivable balances from the outsourced manufacturers. The three largest outsourced manufacturer receivable balances represented approximately 82% and 69% of HP's supplier receivables of $1.0 billion and $1.2 billion at October 31, 2013 and 2012, respectively. HP includes the supplier receivables in Other current assets in the Consolidated Balance Sheets. HP's credit risk associated with these receivables is partially mitigated by the amounts HP owes to these outsourced manufacturers, as HP generally has the legal right to offset its payables to the outsourced manufacturers against these receivables. HP does not reflect the sale of these components in revenue and does not recognize any profits on these sales until the related products are sold by HP, at which time any profit is recognized as a reduction to cost of sales. | |
Other Concentration | |
HP obtains a significant number of components from single source suppliers due to technology, availability, price, quality or other considerations. The loss of a single source supplier, the deterioration of HP's relationship with a single source supplier, or any unilateral modification to the contractual terms under which HP is supplied components by a single source supplier could adversely affect HP's revenue and gross margins. | |
Loss Contingencies | |
HP is involved in various lawsuits, claims, investigations and proceedings that arise in the ordinary course of business. HP records a liability when it believes it is both probable that a liability has been incurred and the amount of loss can be reasonably estimated. See Note 17 for a full description of HP's loss contingencies and related accounting policies. | |
Accounting Pronouncements | |
In July 2013, the Financial Accounting Standards Board ("FASB") issued a new accounting standard that will require the presentation of certain unrecognized tax benefits as reductions to deferred tax assets rather than as liabilities in the Consolidated Balance Sheets when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. HP will be required to adopt this new standard on a prospective basis in the first quarter of fiscal 2015; however, early adoption is permitted as is a retrospective application. HP is currently evaluating the timing, transition method and impact of this new standard on its Consolidated Financial Statements. | |
In July 2013, the FASB issued guidance which will permit the Fed Funds Effective Swap Rate (or Overnight Index Swap Rate) to be used as a U.S. benchmark interest rate for hedge accounting purposes. The guidance also removes the restriction on using different benchmark rates for similar hedges. The guidance is effective prospectively for qualifying new or redesignated hedging relationships entered into on or after July 17, 2013. The adoption of this guidance did not have any effect on HP's Consolidated Financial Statements. | |
StockBased_Compensation
Stock-Based Compensation | 12 Months Ended | |||||||||||||||||||||||||||||||||||||
Oct. 31, 2013 | ||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation | ' | |||||||||||||||||||||||||||||||||||||
Stock-Based Compensation | ' | |||||||||||||||||||||||||||||||||||||
Note 2: Stock-Based Compensation | ||||||||||||||||||||||||||||||||||||||
HP's stock-based compensation plans include incentive compensation plans and an employee stock purchase plan ("ESPP"). | ||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation Expense and Related Income Tax Benefits | ||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense and the resulting tax benefits were as follows: | ||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | $ | 500 | $ | 635 | $ | 685 | ||||||||||||||||||||||||||||||||
Income tax benefit | (158 | ) | (197 | ) | (219 | ) | ||||||||||||||||||||||||||||||||
Stock-based compensation expense, net of tax | $ | 342 | $ | 438 | $ | 466 | ||||||||||||||||||||||||||||||||
Cash received from option exercises and purchases under the ESPP was $0.3 billion in fiscal 2013, $0.7 billion in fiscal 2012 and $0.9 billion in fiscal 2011. The benefit realized for the tax deduction from option exercises of share-based payment awards in fiscal 2013, 2012 and 2011 was $13 million, $57 million and $220 million, respectively. | ||||||||||||||||||||||||||||||||||||||
Incentive Compensation Plans | ||||||||||||||||||||||||||||||||||||||
HP's incentive compensation plans include equity plans adopted in 2004 (as amended in 2013 and 2010), 2000 and 1995 ("principal equity plans"), as well as various equity plans assumed through acquisitions under which stock-based awards are outstanding. Stock-based awards granted from the principal equity plans include restricted stock awards, stock options and performance-based restricted units ("PRUs"). Employees meeting certain employment qualifications are eligible to receive stock-based awards. | ||||||||||||||||||||||||||||||||||||||
Under the principal equity plans, HP has granted certain employees restricted stock awards, cash-settled awards or both. Restricted stock awards are non-vested stock awards that may include grants of restricted stock or grants of restricted stock units. Restricted stock awards and cash-settled awards are generally subject to forfeiture if employment terminates prior to the release of the restrictions. Such awards generally vest one to three years from the date of grant. During that period, ownership of the restricted stock cannot be transferred. Restricted stock has the same cash dividend and voting rights as other common stock and is considered to be currently issued and outstanding. Restricted stock units have dividend equivalent rights equal to the cash dividend paid on restricted stock. Restricted stock units do not have the voting rights of common stock, and the shares underlying the restricted stock units are not considered issued and outstanding. However, shares underlying restricted stock units are included in the calculation of diluted net earnings per share ("EPS"). HP expenses the fair value of restricted stock awards ratably over the period during which the restrictions lapse. | ||||||||||||||||||||||||||||||||||||||
Stock options granted under the principal equity plans are generally non-qualified stock options, but the principal equity plans permit some options granted to qualify as "incentive stock options" under the U.S. Internal Revenue Code. Stock options generally vest over three to four years from the date of grant. The exercise price of a stock option is equal to the fair market value of HP's stock on the option grant date (as determined by the reported sale prices of HP's stock when the market closes on that date). The majority of the stock options issued by HP contain only service vesting conditions. However, starting in fiscal 2011, HP began granting performance-contingent stock options that vest only upon the satisfaction of both service and market conditions prior to the expiration of the awards. | ||||||||||||||||||||||||||||||||||||||
HP's PRU program provides for the issuance of PRUs representing hypothetical shares of HP stock. Each PRU award reflects a target number of shares ("Target Shares") that may be issued to the award recipient before adjusting for performance and market conditions. The actual number of shares the recipient receives is determined at the end of a three-year performance period based on results achieved versus company performance goals and may range from 0% to 200% of the Target Shares granted. No PRUs were granted in fiscal 2013. The performance goals for PRUs granted in fiscal 2012 are based on HP's adjusted annual cash flow from operations as a percentage of revenue and on HP's adjusted annual revenue growth. The performance goals for PRUs granted prior to fiscal 2012 are based on HP's adjusted annual cash flow from operations as a percentage of revenue and on a market condition based on total shareholder return ("TSR") relative to the S&P 500 over the three-year performance period. | ||||||||||||||||||||||||||||||||||||||
Recipients of a PRU award generally must remain employed by HP on a continuous basis through the end of the applicable three-year performance period in order to receive shares subject to that award. Target Shares subject to PRU awards do not have dividend equivalent rights and do not have the voting rights of common stock until earned and issued following the end of the applicable performance period. The expense for these awards, net of estimated forfeitures, is recorded over the requisite service period based on the number of Target Shares that are expected to be earned and the achievement of performance goals during the performance period. | ||||||||||||||||||||||||||||||||||||||
Restricted Stock Awards | ||||||||||||||||||||||||||||||||||||||
Non-vested restricted stock awards as of October 31, 2013, 2012 and 2011 and changes during fiscal 2013, 2012 and 2011 were as follows: | ||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||||||||
Shares | Weighted- | Shares | Weighted- | Shares | Weighted- | |||||||||||||||||||||||||||||||||
Average Grant | Average Grant | Average Grant | ||||||||||||||||||||||||||||||||||||
Date Fair Value | Date Fair Value | Date Fair Value | ||||||||||||||||||||||||||||||||||||
Per Share | Per Share | Per Share | ||||||||||||||||||||||||||||||||||||
In thousands | In thousands | In thousands | ||||||||||||||||||||||||||||||||||||
Outstanding at beginning of year | 25,532 | $ | 31 | 16,813 | $ | 39 | 5,848 | $ | 45 | |||||||||||||||||||||||||||||
Granted | 20,707 | $ | 15 | 20,316 | $ | 27 | 17,569 | $ | 38 | |||||||||||||||||||||||||||||
Vested | (10,966 | ) | $ | 33 | (8,521 | ) | $ | 38 | (5,660 | ) | $ | 41 | ||||||||||||||||||||||||||
Forfeited | (3,011 | ) | $ | 24 | (3,076 | ) | $ | 34 | (944 | ) | $ | 43 | ||||||||||||||||||||||||||
Outstanding at end of year | 32,262 | $ | 21 | 25,532 | $ | 31 | 16,813 | $ | 39 | |||||||||||||||||||||||||||||
At October 31, 2013, 2012 and 2011, there was $330 million, $508 million and $526 million, respectively, of unrecognized pre-tax stock-based compensation expense related to non-vested restricted stock awards, which HP expected to recognize over the remaining weighted-average vesting period of 1.3 years, 1.3 years and 1.4 years, respectively. | ||||||||||||||||||||||||||||||||||||||
Stock Options | ||||||||||||||||||||||||||||||||||||||
HP utilizes the Black-Scholes-Merton option pricing formula to estimate the fair value of stock options subject to service-based vesting conditions that are granted under its principal equity plans. HP estimates the fair value of stock options subject to performance-contingent vesting conditions using a combination of a Monte Carlo simulation model and a lattice model, as these awards contain market conditions. | ||||||||||||||||||||||||||||||||||||||
The weighted-average fair value and the assumptions used to measure fair value were as follows: | ||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||||||||
Weighted-average fair value of grants per option(1) | $ | 4.26 | $ | 9.06 | $ | 7.85 | ||||||||||||||||||||||||||||||||
Expected volatility(2) | 42 | % | 42 | % | 41 | % | ||||||||||||||||||||||||||||||||
Risk-free interest rate(3) | 1.07 | % | 1.17 | % | 1.2 | % | ||||||||||||||||||||||||||||||||
Expected dividend yield(4) | 3.64 | % | 1.83 | % | 1.97 | % | ||||||||||||||||||||||||||||||||
Expected term in months(5) | 71 | 67 | 63 | |||||||||||||||||||||||||||||||||||
-1 | ||||||||||||||||||||||||||||||||||||||
The fair value calculation was based on stock options granted during the period. | ||||||||||||||||||||||||||||||||||||||
-2 | ||||||||||||||||||||||||||||||||||||||
Determined using implied volatility from traded options on HP's stock. | ||||||||||||||||||||||||||||||||||||||
-3 | ||||||||||||||||||||||||||||||||||||||
Determined using the yield on U.S. Treasury zero-coupon issues. | ||||||||||||||||||||||||||||||||||||||
-4 | ||||||||||||||||||||||||||||||||||||||
Determined using a constant dividend yield during the expected term of the option. | ||||||||||||||||||||||||||||||||||||||
-5 | ||||||||||||||||||||||||||||||||||||||
Determined using historical exercise and post-vesting termination patterns. | ||||||||||||||||||||||||||||||||||||||
Option activity as of October 31 during each fiscal year was as follows: | ||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||||||||
Shares | Weighted- | Weighted- | Aggregate | Shares | Weighted- | Weighted- | Aggregate | Shares | Weighted- | Weighted- | Aggregate | |||||||||||||||||||||||||||
Average | Average | Intrinsic | Average | Average | Intrinsic | Average | Average | Intrinsic | ||||||||||||||||||||||||||||||
Exercise | Remaining | Value | Exercise | Remaining | Value | Exercise | Remaining | Value | ||||||||||||||||||||||||||||||
Price | Contractual | Price | Contractual | Price | Contractual | |||||||||||||||||||||||||||||||||
Term | Term | Term | ||||||||||||||||||||||||||||||||||||
In thousands | In years | In millions | In thousands | In years | In millions | In thousands | In years | In millions | ||||||||||||||||||||||||||||||
Outstanding at beginning of year | 87,296 | $ | 29 | 120,243 | $ | 28 | 142,916 | $ | 28 | |||||||||||||||||||||||||||||
Granted(1) | 25,785 | $ | 15 | 7,529 | $ | 27 | 18,804 | $ | 21 | |||||||||||||||||||||||||||||
Exercised | (10,063 | ) | $ | 19 | (29,683 | ) | $ | 20 | (37,121 | ) | $ | 23 | ||||||||||||||||||||||||||
Forfeited/cancelled/expired | (18,976 | ) | $ | 25 | (10,793 | ) | $ | 35 | (4,356 | ) | $ | 39 | ||||||||||||||||||||||||||
Outstanding at end of year | 84,042 | $ | 27 | 3.9 | $ | 303 | 87,296 | $ | 29 | 3 | $ | 15 | 120,243 | $ | 28 | 3 | $ | 460 | ||||||||||||||||||||
Vested and expected to vest at end of year | 80,004 | $ | 27 | 3.7 | $ | 274 | 85,935 | $ | 29 | 2.9 | $ | 15 | 117,066 | $ | 28 | 2.9 | $ | 442 | ||||||||||||||||||||
Exercisable at end of year | 49,825 | $ | 33 | 1.8 | $ | 58 | 68,437 | $ | 31 | 1.9 | $ | 12 | 97,967 | $ | 29 | 2 | $ | 332 | ||||||||||||||||||||
-1 | ||||||||||||||||||||||||||||||||||||||
In connection with fiscal 2011 acquisitions, HP assumed options to purchase approximately 6 million shares with a weighted-average exercise price of $14 per share. | ||||||||||||||||||||||||||||||||||||||
The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value that option holders would have received had all option holders exercised their options on October 31, 2013, 2012 and 2011. The aggregate intrinsic value is the difference between HP's closing stock price on the last trading day of fiscal 2013, 2012 and 2011 and the exercise price, multiplied by the number of in-the-money options. Total intrinsic value of options exercised in fiscal 2013, 2012 and 2011 was $36 million, $176 million and $673 million, respectively. Total grant date fair value of options vested in fiscal 2013, 2012 and 2011 was $64 million, $104 million and $95 million, respectively, net of taxes. | ||||||||||||||||||||||||||||||||||||||
Information about options outstanding at October 31, 2013 was as follows: | ||||||||||||||||||||||||||||||||||||||
Options Outstanding | ||||||||||||||||||||||||||||||||||||||
Options Exercisable | ||||||||||||||||||||||||||||||||||||||
Weighted- | ||||||||||||||||||||||||||||||||||||||
Average | ||||||||||||||||||||||||||||||||||||||
Remaining | ||||||||||||||||||||||||||||||||||||||
Contractual | ||||||||||||||||||||||||||||||||||||||
Range of Exercise Prices | Shares | Life | Weighted- | Shares | Weighted- | |||||||||||||||||||||||||||||||||
Outstanding | Average | Exercisable | Average | |||||||||||||||||||||||||||||||||||
Exercise | Exercise | |||||||||||||||||||||||||||||||||||||
Price | Price | |||||||||||||||||||||||||||||||||||||
In thousands | In years | In thousands | ||||||||||||||||||||||||||||||||||||
$0-$9.99 | 616 | 4.3 | $ | 7 | 595 | $ | 7 | |||||||||||||||||||||||||||||||
$10-$19.99 | 27,161 | 6.7 | $ | 14 | 3,991 | $ | 14 | |||||||||||||||||||||||||||||||
$20-$29.99 | 18,906 | 5.6 | $ | 25 | 8,204 | $ | 25 | |||||||||||||||||||||||||||||||
$30-$39.99 | 20,018 | 0.5 | $ | 32 | 19,940 | $ | 32 | |||||||||||||||||||||||||||||||
$40-$49.99 | 16,422 | 1.4 | $ | 43 | 16,263 | $ | 43 | |||||||||||||||||||||||||||||||
$50-$59.99 | 667 | 3.2 | $ | 52 | 580 | $ | 52 | |||||||||||||||||||||||||||||||
$60 and over | 252 | 0.7 | $ | 73 | 252 | $ | 73 | |||||||||||||||||||||||||||||||
84,042 | 3.9 | $ | 27 | 49,825 | $ | 33 | ||||||||||||||||||||||||||||||||
At October 31, 2013, 2012 and 2011 there was $112 million, $157 million and $264 million, respectively, of unrecognized pre-tax stock-based compensation expense related to stock options, which HP expected to recognize over a weighted-average vesting period of 2.2 years, 1.8 years and 2.3 years, respectively. | ||||||||||||||||||||||||||||||||||||||
Performance-Based Restricted Units | ||||||||||||||||||||||||||||||||||||||
For PRU awards granted in fiscal 2012, HP estimates the fair value of the Target Shares using HP's closing stock price on the measurement date. The weighted-average fair value for these PRUs was as follows: | ||||||||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||||||||
Weighted-average fair value of grants per unit | $ | 13.14 | -1 | $ | 27 | -2 | ||||||||||||||||||||||||||||||||
-1 | ||||||||||||||||||||||||||||||||||||||
Reflects the weighted-average fair value for the second year of the three-year performance period applicable to PRUs granted in fiscal 2012. The estimated fair value of the Target Shares for the third year for PRUs granted in fiscal year 2012 will be determined on the measurement date applicable to those PRUs, which will occur during the period that the annual performance goals are approved for those PRUs, and the expense will be amortized over the remainder of the applicable three-year performance period. | ||||||||||||||||||||||||||||||||||||||
-2 | ||||||||||||||||||||||||||||||||||||||
Reflects the weighted-average fair value for the first year of the three-year performance period applicable to PRUs granted in fiscal 2012. | ||||||||||||||||||||||||||||||||||||||
For PRU awards granted prior to fiscal 2012, HP estimates the fair value of the Target Shares subject to those awards using the Monte Carlo simulation model, as the TSR modifier represents a market condition. The weighted-average fair values of these PRU awards and the following weighted-average assumptions, in addition to projections of market conditions, used to measure the weighted- average fair values were as follows for fiscal years ended October 31: | ||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||||||||
Weighted-average fair value of grants per unit | $ | 0 | -1 | $ | 3.35 | -2 | $ | 27.59 | -3 | |||||||||||||||||||||||||||||
Expected volatility(4) | 33 | % | 41 | % | 30 | % | ||||||||||||||||||||||||||||||||
Risk-free interest rate | 0.18 | % | 0.14 | % | 0.38 | % | ||||||||||||||||||||||||||||||||
Expected dividend yield | 3.94 | % | 1.78 | % | 0.75 | % | ||||||||||||||||||||||||||||||||
Expected term in months | 12 | 15 | 19 | |||||||||||||||||||||||||||||||||||
-1 | ||||||||||||||||||||||||||||||||||||||
Reflects the weighted-average fair value for the third year of the three-year performance period applicable to PRUs granted in fiscal 2011. The weighted-average fair value per unit is zero based on the result of the Monte-Carlo simulation model using the weighted-average assumptions on the measurement date. | ||||||||||||||||||||||||||||||||||||||
-2 | ||||||||||||||||||||||||||||||||||||||
Reflects the weighted-average fair value for the third year of the three-year performance period applicable to PRUs granted in fiscal 2010 and for the second year of the three-year performance period applicable to PRUs granted in fiscal 2011. | ||||||||||||||||||||||||||||||||||||||
-3 | ||||||||||||||||||||||||||||||||||||||
Reflects the weighted-average fair value for the third year of the three-year performance period applicable to PRUs granted in fiscal 2009, for the second year of the three-year performance period applicable to PRUs granted in fiscal 2010 and for the first year of the three-year performance period applicable to PRUs granted in fiscal 2011. | ||||||||||||||||||||||||||||||||||||||
-4 | ||||||||||||||||||||||||||||||||||||||
HP uses historic volatility for PRU awards when simulating multivariate prices for companies in the S&P 500. | ||||||||||||||||||||||||||||||||||||||
Non-vested PRUs as of October 31, 2013, 2012 and 2011 and changes during fiscal 2013, 2012 and 2011 were as follows: | ||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||||||||
Shares in thousands | ||||||||||||||||||||||||||||||||||||||
Outstanding Target Shares at beginning of year | 5,688 | 11,382 | 18,508 | |||||||||||||||||||||||||||||||||||
Granted | — | 1,251 | 5,950 | |||||||||||||||||||||||||||||||||||
Change in units due to performance and market conditions achievement for PRUs vested in the year(1) | (4,307 | ) | (5,617 | ) | (10,862 | ) | ||||||||||||||||||||||||||||||||
Forfeited | (356 | ) | (1,328 | ) | (2,214 | ) | ||||||||||||||||||||||||||||||||
Outstanding Target Shares at end of year | 1,025 | 5,688 | 11,382 | |||||||||||||||||||||||||||||||||||
Outstanding Target Shares of PRUs assigned a fair value at end of year | 690 | -2 | 3,492 | -3 | 5,867 | -4 | ||||||||||||||||||||||||||||||||
-1 | ||||||||||||||||||||||||||||||||||||||
The minimum level of TSR was not met for PRUs granted in fiscal 2011, 2010 and 2009, which resulted in the cancellation of Target Shares. | ||||||||||||||||||||||||||||||||||||||
-2 | ||||||||||||||||||||||||||||||||||||||
Excludes Target Shares for the third year for PRUs granted in fiscal 2012 as the measurement date had not yet been established. The measurement date and related fair value for the excluded PRUs will be established when the annual performance goals are approved. | ||||||||||||||||||||||||||||||||||||||
-3 | ||||||||||||||||||||||||||||||||||||||
Excludes Target Shares for the third year for PRUs granted in fiscal 2011 and for the second and third years for PRUs granted in fiscal 2012 as the measurement dates had not yet been established. | ||||||||||||||||||||||||||||||||||||||
-4 | ||||||||||||||||||||||||||||||||||||||
Excludes Target Shares for the third year for PRUs granted in fiscal 2010 and for the second and third years for PRUs granted in fiscal 2011 as the measurement dates had not yet been established. | ||||||||||||||||||||||||||||||||||||||
At October 31, 2013, 2012 and 2011, there was $3 million, $17 million and $82 million, respectively, of unrecognized pre-tax stock-based compensation expense related to PRUs with an assigned fair value, which HP expected to recognize over the remaining weighted-average vesting period of 1 year, 1.1 years and 1.4 years, respectively. | ||||||||||||||||||||||||||||||||||||||
Employee Stock Purchase Plan | ||||||||||||||||||||||||||||||||||||||
HP sponsors the Hewlett-Packard Company 2011 Employee Stock Purchase Plan (the "2011 ESPP"), pursuant to which eligible employees may contribute up to 10% of base compensation, subject to certain income limits, to purchase shares of HP's common stock. | ||||||||||||||||||||||||||||||||||||||
For purchases made on or after October 31, 2011, employees purchased stock under the 2011 ESPP at a price equal to 95% of the fair market value on the purchase date. Because all the criteria of a non-compensatory plan were met, no stock-based compensation expense was recorded in connection with those purchases. | ||||||||||||||||||||||||||||||||||||||
Shares Reserved | ||||||||||||||||||||||||||||||||||||||
Shares available for future grant and shares reserved for future issuance under the ESPP and incentive compensation plans were as follows: | ||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||||||||
Shares in thousands | ||||||||||||||||||||||||||||||||||||||
Shares available for future grant at October 31 | 300,984 | 152,837 | 172,259 | |||||||||||||||||||||||||||||||||||
Shares reserved for future issuance under all stock-related benefit plans at October 31 | 417,642 | 270,498 | 319,602 | |||||||||||||||||||||||||||||||||||
Net_Earnings_Per_Share
Net Earnings Per Share | 12 Months Ended | ||||||||||
Oct. 31, 2013 | |||||||||||
Net Earnings Per Share | ' | ||||||||||
Net Earnings Per Share | ' | ||||||||||
Note 3: 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, stock options and PRUs. | |||||||||||
The reconciliation of the numerators and denominators of each of the basic and diluted net EPS calculations were as follows for the following fiscal years ended October 31: | |||||||||||
2013 | 2012 | 2011 | |||||||||
In millions, except per share | |||||||||||
amounts | |||||||||||
Numerator: | |||||||||||
Net earnings (loss)(1) | $ | 5,113 | $ | (12,650 | ) | $ | 7,074 | ||||
Denominator: | |||||||||||
Weighted-average shares used to compute basic EPS | 1,934 | 1,974 | 2,094 | ||||||||
Dilutive effect of employee stock plans | 16 | — | 34 | ||||||||
Weighted-average shares used to compute diluted EPS | 1,950 | 1,974 | 2,128 | ||||||||
Net earnings (loss) per share: | |||||||||||
Basic | $ | 2.64 | $ | (6.41 | ) | $ | 3.38 | ||||
Diluted(2) | $ | 2.62 | $ | (6.41 | ) | $ | 3.32 | ||||
-1 | |||||||||||
Net earnings (loss) available to participating securities were not significant for fiscal 2013, 2012 and 2011. HP considers restricted stock that provides the holder with a non-forfeitable right to receive dividends to be a participating security. | |||||||||||
-2 | |||||||||||
For fiscal 2012, HP excluded from the calculation of diluted net loss per share 10 million shares potentially issuable under employee stock plans, as their effect, if included, would have been anti-dilutive. | |||||||||||
HP excludes options with exercise prices that are greater than the average market price from the calculation of diluted net EPS because their effect would be anti-dilutive. In fiscal 2013, 2012 and 2011, HP excluded from the calculation of diluted net EPS options to purchase 51 million shares, 56 million shares and 25 million shares, respectively. In addition, HP also excluded from the calculation of diluted net EPS options to purchase an additional 1 million shares in fiscal 2013, 2012 and 2011, as their combined exercise price, unamortized fair value and excess tax benefits were greater in each of those periods than the average market price for HP's stock. | |||||||||||
Balance_Sheet_Details
Balance Sheet Details | 12 Months Ended | ||||||||||
Oct. 31, 2013 | |||||||||||
Balance Sheet Details | ' | ||||||||||
Balance Sheet Details | ' | ||||||||||
Note 4: Balance Sheet Details | |||||||||||
Balance sheet details were as follows for the following fiscal years ended October 31: | |||||||||||
Accounts Receivable, Net | |||||||||||
2013 | 2012 | 2011 | |||||||||
In millions | |||||||||||
Accounts receivable, gross | $ | 16,208 | $ | 16,871 | $ | 18,694 | |||||
Less: Allowance for doubtful accounts | |||||||||||
Balance at beginning of year | 464 | 470 | 525 | ||||||||
Increase in allowance from acquisitions | — | — | 27 | ||||||||
Provision for doubtful accounts | 23 | 100 | 23 | ||||||||
Deductions, net of recoveries | (155 | ) | (106 | ) | (105 | ) | |||||
Balance at end of year | 332 | 464 | 470 | ||||||||
Accounts receivable, net | $ | 15,876 | $ | 16,407 | $ | 18,224 | |||||
HP has third-party financing arrangements consisting of revolving short-term financing intended to facilitate the working capital requirements of certain customers. These financing arrangements, which in one case provides for partial recourse, result in a transfer of HP's trade receivables and risk to the third party. As these transfers qualify for sales accounting treatment, the trade receivables are derecognized from the Consolidated Balance Sheets upon transfer, and HP receives a payment for the trade receivables from the third party within a mutually agreed upon time period. For the arrangement 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 Balance Sheets. The recourse obligations as of October 31, 2013 and October 31, 2012 were not material. | |||||||||||
For fiscal 2013 and 2012, trade receivables sold under these facilities were $4.9 billion and $4.3 billion, respectively. The amount of trade receivables sold approximates the amount of cash received. The resulting costs associated with the sales of trade accounts receivable for the year ended October 31, 2013 and 2012 were not material. The maximum program capacity and available program capacity under these arrangements were as follows for the following fiscal years ended October 31: | |||||||||||
2013 | 2012 | ||||||||||
In millions | |||||||||||
Non-recourse arrangements | |||||||||||
Aggregate maximum program capacity | $ | 764 | $ | 636 | |||||||
Aggregate available capacity | $ | 450 | $ | 434 | |||||||
Aggregate utilized capacity | $ | 314 | $ | 202 | |||||||
Partial-recourse arrangement | |||||||||||
Maximum program capacity | $ | 631 | $ | 876 | |||||||
Available capacity | $ | 177 | $ | 413 | |||||||
Utilized capacity | $ | 454 | $ | 463 | |||||||
Total arrangements | |||||||||||
Aggregate maximum program capacity | $ | 1,395 | $ | 1,512 | |||||||
Aggregate available capacity | $ | 627 | $ | 847 | |||||||
Aggregate utilized capacity | $ | 768 | $ | 665 | |||||||
Inventory | |||||||||||
2013 | 2012 | ||||||||||
In millions | |||||||||||
Finished goods | $ | 3,847 | $ | 4,094 | |||||||
Purchased parts and fabricated assemblies | 2,199 | 2,223 | |||||||||
$ | 6,046 | $ | 6,317 | ||||||||
Other Current Assets | |||||||||||
2013 | 2012 | ||||||||||
In millions | |||||||||||
Deferred tax assets—short-term | $ | 3,893 | $ | 3,783 | |||||||
Value-added taxes receivable from various governments | 2,425 | 3,298 | |||||||||
Supplier and other receivables | 2,579 | 2,549 | |||||||||
Prepaid and other current assets | 4,238 | 3,730 | |||||||||
$ | 13,135 | $ | 13,360 | ||||||||
Property, Plant and Equipment | |||||||||||
2013 | 2012 | ||||||||||
In millions | |||||||||||
Land | $ | 626 | $ | 636 | |||||||
Buildings and leasehold improvements | 8,942 | 8,744 | |||||||||
Machinery and equipment, including equipment held for lease | 16,565 | 16,503 | |||||||||
26,133 | 25,883 | ||||||||||
Accumulated depreciation | (14,670 | ) | (13,929 | ) | |||||||
$ | 11,463 | $ | 11,954 | ||||||||
Depreciation expense was $3.2 billion, $3.3 billion and $3.4 billion in fiscal 2013, 2012 and 2011, respectively. For the twelve months ended October 31, 2013, the change in gross property, plant and equipment was due primarily to investments of $3.2 billion, which were partially offset by sales and retirements totaling $3.0 billion. Accumulated depreciation associated with the assets sold and retired was $2.5 billion. | |||||||||||
Long-Term Financing Receivables and Other Assets | |||||||||||
2013 | 2012 | ||||||||||
In millions | |||||||||||
Financing receivables, net | $ | 3,878 | $ | 4,292 | |||||||
Deferred tax assets—long-term | 1,346 | 1,581 | |||||||||
Deferred costs—long-term | 999 | 1,301 | |||||||||
Other | 3,333 | 3,419 | |||||||||
$ | 9,556 | $ | 10,593 | ||||||||
Other Accrued Liabilities | |||||||||||
2013 | 2012 | ||||||||||
In millions | |||||||||||
Other accrued taxes | $ | 2,703 | $ | 3,264 | |||||||
Warranty | 1,390 | 1,496 | |||||||||
Sales and marketing programs | 2,823 | 2,900 | |||||||||
Other | 5,590 | 5,840 | |||||||||
$ | 12,506 | $ | 13,500 | ||||||||
Other Liabilities | |||||||||||
2013 | 2012 | ||||||||||
In millions | |||||||||||
Pension, post-retirement, and post-employment liabilities | $ | 5,098 | $ | 7,780 | |||||||
Deferred tax liability—long-term | 2,668 | 2,948 | |||||||||
Long-term deferred revenue | 3,907 | 3,371 | |||||||||
Other long-term liabilities | 4,218 | 3,381 | |||||||||
$ | 15,891 | $ | 17,480 | ||||||||
Acquisitions
Acquisitions | 12 Months Ended |
Oct. 31, 2013 | |
Acquisitions | ' |
Acquisitions | ' |
Note 5: Acquisitions | |
In fiscal 2013, MphasiS Limited, a majority-owned subsidiary of HP, acquired Digital Risk LLC for $174 million. HP recorded $112 million of goodwill related to this acquisition in the ES segment. | |
Acquisitions in prior years | |
In fiscal 2011, HP completed four acquisitions. Total fair value of purchase consideration for the acquisitions was $11.4 billion, which includes cash paid for outstanding common stock, convertible bonds, vested-in-the-money stock awards and the estimated fair value of earned unvested stock awards assumed. In connection with these acquisitions, HP recorded approximately $6.9 billion of goodwill, $4.7 billion of intangibles and assumed $206 million of net liabilities. HP's largest acquisition in fiscal 2011 was its acquisition of Autonomy, with a total fair value of purchase consideration of $11.0 billion. | |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 12 Months Ended | |||||||||||||||||||||||||
Oct. 31, 2013 | ||||||||||||||||||||||||||
Goodwill and Intangible Assets | ' | |||||||||||||||||||||||||
Goodwill and Intangible Assets | ' | |||||||||||||||||||||||||
Note 6: Goodwill and Intangible Assets | ||||||||||||||||||||||||||
Goodwill | ||||||||||||||||||||||||||
Goodwill allocated to HP's reportable segments as of October 31, 2013 and 2012 and changes in the carrying amount of goodwill during the fiscal years ended October 31, 2013 and 2012 are as follows: | ||||||||||||||||||||||||||
Personal | Printing | Enterprise | Enterprise | Software | HP | Corporate | Total | |||||||||||||||||||
Systems | Group | Services | Financial | Investments | ||||||||||||||||||||||
Services | ||||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||
Net balance at October 31, 2011(1) | $ | 2,498 | $ | 2,471 | $ | 17,349 | $ | 8,001 | $ | 14,063 | $ | 144 | $ | 25 | $ | 44,551 | ||||||||||
Goodwill acquired during the period | — | 16 | — | — | — | — | — | 16 | ||||||||||||||||||
Goodwill adjustments/reclassifications | — | — | (308 | ) | (40 | ) | 580 | — | (25 | ) | 207 | |||||||||||||||
Impairment loss | — | — | — | (7,961 | ) | (5,744 | ) | — | — | (13,705 | ) | |||||||||||||||
Net balance at October 31, 2012(2) | $ | 2,498 | $ | 2,487 | $ | 17,041 | $ | — | $ | 8,899 | $ | 144 | $ | — | $ | 31,069 | ||||||||||
Goodwill acquired during the period | — | — | — | 112 | — | — | — | 112 | ||||||||||||||||||
Goodwill adjustments/reclassifications | — | — | 39 | (15 | ) | (81 | ) | — | — | (57 | ) | |||||||||||||||
Impairment loss | — | — | — | — | — | — | — | — | ||||||||||||||||||
Net balance at October 31, 2013(2) | $ | 2,498 | $ | 2,487 | $ | 17,080 | (3) | $ | 97 | (4) | $ | 8,818 | $ | 144 | $ | — | $ | 31,124 | ||||||||
-1 | ||||||||||||||||||||||||||
Goodwill at October 31, 2011 is net of accumulated impairment losses of $813 million related to the Corporate Investments segment. | ||||||||||||||||||||||||||
-2 | ||||||||||||||||||||||||||
Goodwill at October 31, 2013 and October 31, 2012 is net of accumulated impairment losses of $14,518 million. Of that amount, $7,961 million relates to ES, $5,744 million relates to Software, and the remaining $813 million relates to Corporate Investments. | ||||||||||||||||||||||||||
-3 | ||||||||||||||||||||||||||
Goodwill at October 31, 2013 includes $9,280 million and $7,800 million related to the TS reporting unit and the ESSN reporting unit, respectively. | ||||||||||||||||||||||||||
-4 | ||||||||||||||||||||||||||
All goodwill at October 31, 2013 relates to the MphasiS reporting unit. | ||||||||||||||||||||||||||
In the first quarter of fiscal 2013, HP implemented certain organizational realignments. As a result of these realignments, HP has re-evaluated its reportable segment structure and, effective in the first quarter of fiscal 2013, created two new reportable segments, the EG segment and the ES segment, and eliminated two other reportable segments, the ESSN segment and the Services segment. The EG segment consists of the business units within the former ESSN segment and most of the services offerings of the TS business unit, which was previously a part of the former Services segment. The ES segment consists of the Applications and Business Services ("ABS") and Infrastructure Technology Outsourcing ("ITO") business units from the former Services segment, along with the end-user workplace support services business that was previously part of TS. As a result of the reportable segment changes described above, the net goodwill balance at October 31, 2012 and at October 31, 2011 includes the reclassification of $9.3 billion of goodwill related to the movement of the TS business unit from the former Services segment to the EG segment. See Note 18 for a full description of the segment realignments. | ||||||||||||||||||||||||||
Based on the results of its annual impairment tests, HP determined that no impairment of goodwill existed as of August 1, 2013. However, future goodwill impairment tests could result in a charge to earnings. HP will continue to evaluate goodwill on an annual basis as of the beginning of its fourth fiscal quarter and whenever events and changes in circumstances indicate that there may be a potential impairment. | ||||||||||||||||||||||||||
During fiscal 2012, HP determined that sufficient indicators of potential impairment existed to require an interim goodwill impairment analysis for the ES reporting unit. These indicators included the trading values of HP's stock at the time of the impairment test, coupled with market conditions and business trends within ES. The fair value of the ES reporting unit was based on the income approach. The decline in the fair value of the ES reporting unit resulted from lower projected revenue growth rates and profitability levels as well as an increase in the risk factor that was included in the discount rate used to calculate the discounted cash flows. The increase in the discount rate was due to the implied control premium resulting from trading values of HP stock at the time of the impairment test. The resulting adjustments to discount rates caused a significant reduction in the fair value for the ES reporting unit. Based on the step one and step two analyses, HP recorded an $8.0 billion goodwill impairment charge in fiscal 2012, and there was no remaining goodwill in the ES reporting unit as of October 31, 2012. Prior to completing the goodwill impairment test, HP tested the recoverability of the ES long-lived assets (other than goodwill) and concluded that such assets were not impaired. | ||||||||||||||||||||||||||
Also during fiscal 2012, the Software segment included two reporting units, which were Autonomy and the legacy HP Software business. HP initiated its annual goodwill impairment analysis in the fourth quarter of fiscal 2012 and concluded that fair value was below carrying amount for the Autonomy reporting unit. The fair value of the Autonomy reporting unit was based on the income approach. | ||||||||||||||||||||||||||
The decline in the estimated fair value of the Autonomy reporting unit resulted from lower projected revenue growth rates and profitability levels as well as an increase in the risk factor that was included in the discount rate used to calculate the discounted cash flows. The increase in the discount rate was due to the implied control premium that resulted from trading values of HP stock at the time of the impairment test. The lower projected operating results reflected changes in assumptions related to organic revenue growth rates, market trends, business mix, cost structure, expected deal synergies and other expectations about the anticipated short-term and long-term operating results of the Autonomy business. These assumptions incorporated HP's analysis of what it believes were accounting improprieties, incomplete disclosures and misrepresentations at Autonomy that occurred prior to the Autonomy acquisition with respect to Autonomy's pre-acquisition business and related operating results. In addition, as noted above, when estimating the fair value of a reporting unit HP may need to adjust discount rates and/or other assumptions in order to derive a reasonable implied control premium when comparing the sum of the fair values of HP's reporting units to HP's market capitalization. Due to the trading values of HP stock at the time of the impairment test, the resulting adjustments to the discount rate to arrive at an appropriate control premium caused a significant reduction in the fair value for the Autonomy reporting unit as well as the fair values for HP's other reporting units. | ||||||||||||||||||||||||||
Prior to conducting step one of the goodwill impairment test for the Autonomy reporting unit, HP first evaluated the recoverability of the long-lived assets, including intangible assets. When indicators of impairment are present, HP tests long-lived assets (other than goodwill) for recoverability by comparing the carrying amount of an asset group to its undiscounted cash flows. HP considered the lower-than-expected revenue and profitability levels over a sustained period of time, the trading values of HP stock and downward revisions to management's short-term and long-term forecast for the Autonomy business to be indicators of impairment for the Autonomy long-lived assets. Based on the results of the recoverability test, HP determined that the carrying amount of the Autonomy asset group exceeded its undiscounted cash flows and was therefore not recoverable. HP then compared the fair value of the asset group to its carrying amount and determined the impairment loss. The impairment loss was allocated to the carrying values of the long-lived assets but not below their individual fair values. Based on the analysis, HP recorded an impairment charge of $3.1 billion on intangible assets, which resulted in a remaining carrying amount of approximately $0.8 billion as of October 31, 2012. The decline in the fair value of the Autonomy intangible assets was attributable to the same factors as discussed above for the fair value of the Autonomy reporting unit. | ||||||||||||||||||||||||||
The decline in the fair value of the Autonomy reporting unit and Autonomy intangibles, as well as fair value changes for other assets and liabilities in the step two goodwill impairment test, resulted in an implied fair value of goodwill substantially below the carrying amount of the goodwill for the Autonomy reporting unit. As a result, HP recorded a goodwill impairment charge of $5.7 billion, which resulted in a $1.2 billion remaining carrying amount of Autonomy goodwill as of October 31, 2012. Both the goodwill impairment charge and the intangible assets impairment charge, totaling $8.8 billion, were included in the Impairment of goodwill and intangible assets line item in the Consolidated Statements of Earnings. | ||||||||||||||||||||||||||
Subsequent to the Autonomy purchase price allocation period, which concluded in the first quarter of fiscal 2012, and in conjunction with HP's annual goodwill impairment testing, HP identified certain indicators of impairment. The indicators of impairment included lower-than-expected revenue and profitability levels over a sustained period of time, the trading values of HP stock and downward revisions to management's short-term and long-term forecast for the Autonomy business. HP revised its multi-year forecast for the Autonomy business, and the timing of this forecast revision coincided with the timing of HP's overall forecasting process for all reporting units, which is completed each year in the fourth fiscal quarter in conjunction with the annual goodwill impairment analysis. The change in assumptions used in the revised forecast and the fair value estimates utilized in the impairment testing of the Autonomy goodwill and long-lived assets incorporated insights gained from having owned the Autonomy business for the preceding year. The revised forecast reflected changes related to organic revenue growth rates, current market trends, business mix, cost structure, expected deal synergies and other expectations about the anticipated short-term and long-term operating results of the Autonomy business, driven by HP's analysis regarding certain accounting improprieties, incomplete disclosures and misrepresentations at Autonomy that occurred prior to the Autonomy acquisition with respect to Autonomy's pre-acquisition business and related operating results. Accordingly, the change in fair values represented a change in accounting estimate that occurred outside the purchase price allocation period, resulting in the recorded impairment charge. | ||||||||||||||||||||||||||
Based on the results of the annual impairment test for all other reporting units, HP concluded that no other goodwill impairment existed as of August 1, 2012, apart from the impairment charges discussed above. | ||||||||||||||||||||||||||
Intangible Assets | ||||||||||||||||||||||||||
HP's intangible assets associated with completed acquisitions for each of the following fiscal years ended October 31 are composed of: | ||||||||||||||||||||||||||
October 31, 2013 | October 31, 2012 | |||||||||||||||||||||||||
Gross | Accumulated | Accumulated | Net | Gross | Accumulated | Accumulated | Net | |||||||||||||||||||
Amortization | Impairment | Amortization | Impairment | |||||||||||||||||||||||
Loss | Loss | |||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||
Customer contracts, customer lists and distribution agreements | $ | 5,321 | $ | (2,709 | ) | $ | (856 | ) | $ | 1,756 | $ | 5,807 | $ | (2,625 | ) | $ | (856 | ) | $ | 2,326 | ||||||
Developed and core technology and patents | 5,331 | (1,966 | ) | (2,138 | ) | 1,227 | 6,580 | (2,501 | ) | (2,138 | ) | 1,941 | ||||||||||||||
Trade name and trade marks | 1,730 | (211 | ) | (1,336 | ) | 183 | 1,732 | (155 | ) | (1,336 | ) | 241 | ||||||||||||||
In-process research and development | 3 | — | — | 3 | 7 | — | — | 7 | ||||||||||||||||||
Total intangible assets | $ | 12,385 | $ | (4,886 | ) | $ | (4,330 | ) | $ | 3,169 | $ | 14,126 | $ | (5,281 | ) | $ | (4,330 | ) | $ | 4,515 | ||||||
For fiscal 2013, the majority of the decrease in gross intangibles was related to $1.7 billion of fully amortized intangible assets that have been eliminated from both the gross and accumulated amounts. | ||||||||||||||||||||||||||
In fiscal 2012, HP recorded total intangible asset impairment charges of $4.3 billion, of which $3.1 billion was related to the Autonomy reporting unit as described above. The remaining $1.2 billion was related to a change in the Compaq branding strategy. In May 2012, HP approved a change to its branding strategy for personal computers, which has resulted in a more limited and focused use of the "Compaq" trade name acquired in fiscal 2002. In conjunction with the change in branding strategy, HP revised its assumption as to the useful life of that intangible asset, which resulted in a reclassification of the asset from an indefinite-lived intangible to a finite-lived intangible. These changes triggered an impairment review of the "Compaq" trade name intangible asset. In conducting an impairment review of an intangible asset, HP compares the fair value of the asset to its carrying amount. If the fair value of the asset is less than the carrying amount, the difference is recorded as an impairment loss. HP estimated the fair value of the "Compaq" trade name by calculating the present value of the royalties saved that would have been paid to a third party had HP not owned the trade name. Following the completion of that analysis, HP determined that the fair value of the trade name asset was less than the carrying amount due primarily to the change in the useful life assumption and a decrease in expected future revenues related to Compaq-branded products resulting from the more focused branding strategy. As a result, HP recorded an impairment charge of $1.2 billion in the third quarter of fiscal 2012, which was included in the Impairment of goodwill and intangible assets line item in the Consolidated Statements of Earnings. | ||||||||||||||||||||||||||
The weighted-average useful lives of intangible assets at the time of acquisition are as follows: | ||||||||||||||||||||||||||
Finite-Lived Intangible Assets | Weighted-Average | |||||||||||||||||||||||||
Useful Lives | ||||||||||||||||||||||||||
Customer contracts, customer lists and distribution agreements | 8 | |||||||||||||||||||||||||
Developed and core technology and patents | 7 | |||||||||||||||||||||||||
Trade name and trade marks | 7 | |||||||||||||||||||||||||
Estimated future amortization expense related to finite-lived intangible assets at October 31, 2013 is as follows: | ||||||||||||||||||||||||||
Fiscal year: | In millions | |||||||||||||||||||||||||
2014 | $ | 1,060 | ||||||||||||||||||||||||
2015 | 871 | |||||||||||||||||||||||||
2016 | 646 | |||||||||||||||||||||||||
2017 | 230 | |||||||||||||||||||||||||
2018 | 145 | |||||||||||||||||||||||||
Thereafter | 214 | |||||||||||||||||||||||||
Total | $ | 3,166 | ||||||||||||||||||||||||
Restructuring
Restructuring | 12 Months Ended | ||||||||||||||||||||||
Oct. 31, 2013 | |||||||||||||||||||||||
Restructuring | ' | ||||||||||||||||||||||
Restructuring | ' | ||||||||||||||||||||||
Note 7: Restructuring | |||||||||||||||||||||||
Summary of Restructuring Plans | |||||||||||||||||||||||
HP's restructuring activities summarized by plan for the twelve months ended October 31, 2013 were as follows: | |||||||||||||||||||||||
As of October 31, 2013 | |||||||||||||||||||||||
Balance, | Fiscal | Cash | Other | Balance, | Total | Total | |||||||||||||||||
October 31, | Year 2013 | Payments | Adjustments | October 31, | Costs | Expected | |||||||||||||||||
2012 | Charges | and Non-Cash | 2013 | Incurred | Costs to Be | ||||||||||||||||||
Settlements | to Date | Incurred | |||||||||||||||||||||
In millions | |||||||||||||||||||||||
Fiscal 2012 Plan | |||||||||||||||||||||||
Severance and EER | $ | 597 | $ | 1,053 | $ | (701 | ) | $ | (4 | ) | $ | 945 | $ | 3,036 | $ | 3,500 | |||||||
Infrastructure and other | 11 | 141 | (112 | ) | — | 40 | 247 | 600 | |||||||||||||||
Total 2012 Plan | 608 | 1,194 | (813 | ) | (4 | ) | 985 | 3,283 | 4,100 | ||||||||||||||
Fiscal 2010 acquisitions | 10 | (10 | ) | — | — | — | 91 | 91 | |||||||||||||||
Fiscal 2010 ES Plan: | |||||||||||||||||||||||
Severance | 227 | (189 | ) | (36 | ) | 8 | 10 | 434 | 434 | ||||||||||||||
Infrastructure | 1 | — | — | — | 1 | 369 | 369 | ||||||||||||||||
Total ES Plan | 228 | (189 | ) | (36 | ) | 8 | 11 | 803 | 803 | ||||||||||||||
Fiscal 2008 HP/EDS Plan: | |||||||||||||||||||||||
Severance | — | — | — | — | — | 2,195 | 2,195 | ||||||||||||||||
Infrastructure | 181 | (5 | ) | (55 | ) | — | 121 | 1,070 | 1,074 | ||||||||||||||
Total HP/EDS Plan | 181 | (5 | ) | (55 | ) | — | 121 | 3,265 | 3,269 | ||||||||||||||
Total restructuring plans | $ | 1,027 | $ | 990 | $ | (904 | ) | $ | 4 | $ | 1,117 | $ | 7,442 | $ | 8,263 | ||||||||
At October 31, 2013 and 2012, HP included the short-term portion of the restructuring liability of $901 million and $771 million, respectively, in Accrued restructuring, and the long-term portion of $216 million and $256 million, respectively, in Other liabilities in the accompanying Consolidated Balance Sheets. The timing of associated cash payments is dependent upon the type of restructuring charge and can extend over a multi-year period. | |||||||||||||||||||||||
Fiscal 2012 Restructuring Plan | |||||||||||||||||||||||
On May 23, 2012, HP adopted a multi-year restructuring plan (the "2012 Plan") designed to simplify business processes, accelerate innovation and deliver better results for customers, employees and stockholders. As of July 31, 2013, HP estimated that it would eliminate approximately 29,000 positions in connection with the 2012 Plan through fiscal year 2014, with a portion of those employees exiting the company as part of voluntary enhanced early retirement ("EER") programs in the United States and in certain other countries. The majority of the U.S. EER program was funded through the HP Pension Plan. As of that same date, HP estimated it would recognize approximately $3.6 billion of total costs in connection with the 2012 Plan. HP also estimated that the number of positions ultimately eliminated and the total expense of the 2012 Plan could vary by as much as 15% from these estimates. Due to continued market and business pressures, as of October 31, 2013, HP expects to eliminate an additional 15% of those 29,000 positions, or a total of approximately 34,000 positions, and to record an additional 15% of that $3.6 billion in total costs, or approximately $4.1 billion in aggregate charges. HP expects to record these charges through the end of HP's 2014 fiscal year as the accounting recognition criteria are met. HP expects approximately $3.5 billion to relate to workforce reductions, including the EER programs, and approximately $0.6 billion to relate to infrastructure, including data center and real estate consolidation, and other items. HP recorded a charge of approximately $1.2 billion in fiscal 2013 relating to the 2012 Plan, of which $141 million related to data center and real estate consolidations. As of October 31, 2013, HP had eliminated approximately 24,600 positions for which a severance payment has been or will be made as part of the 2012 Plan. The cash payments associated with the 2012 Plan are expected to be paid out through fiscal 2017. | |||||||||||||||||||||||
Fiscal 2010 Acquisitions | |||||||||||||||||||||||
In connection with the acquisitions of Palm, Inc. ("Palm") and 3Com Corporation ("3Com") in fiscal 2010, HP's management approved and initiated plans to restructure the operations of the acquired companies, including severance for employees, contract cancellation costs, costs to vacate duplicative facilities and other items. The total combined cost of the plans was $91 million. As of October 31, 2011, HP had recorded all of the costs of the plans based upon the anticipated timing of planned terminations and facility closure costs. In the second quarter of fiscal 2013, $10 million was credited to restructuring expense to close the Palm and 3Com plans as no further restructuring costs or payments are anticipated. | |||||||||||||||||||||||
Fiscal 2010 Enterprise Services Business Restructuring Plan | |||||||||||||||||||||||
On June 1, 2010, HP's management announced a plan to restructure its enterprise services business, which included the ITO and ABS business units. The multi-year restructuring program included plans to consolidate commercial data centers, tools and applications. The total expected cost of the plan is approximately $803 million, which includes severance costs to eliminate approximately 8,200 positions and infrastructure charges. As of October 31, 2012 all 8,200 positions under the plan had been eliminated. For the fiscal year ended October 31, 2013, HP reversed $189 million of the restructuring accrual to reflect an updated estimate of expected cash payments for severance. The majority of the infrastructure charges were paid out during fiscal 2012 with the remaining charges expected to be paid out through the first half of fiscal 2015. This plan is now closed with no further restructuring charges anticipated. HP expects the majority of the remaining severance for the plan to be paid out through fiscal 2014. | |||||||||||||||||||||||
Fiscal 2008 HP/EDS Restructuring Plan | |||||||||||||||||||||||
In connection with the acquisition of Electronic Data Systems Corporation ("EDS") in August 2008, HP's management approved and initiated a restructuring plan to combine and align HP's services businesses, eliminate duplicative overhead functions and consolidate and vacate duplicative facilities. The restructuring plan is expected to be implemented at a total expected cost of $3.3 billion. | |||||||||||||||||||||||
The restructuring plan included severance costs related to eliminating approximately 25,000 positions. As of October 31, 2011, all actions had occurred and the associated severance costs had been paid out. The infrastructure charges in the restructuring plan included facility closure and consolidation costs and the costs associated with early termination of certain related contractual obligations. HP has recorded the majority of these costs based on the anticipated execution of site closure and consolidation plans. The associated cash payments are expected to be paid out through fiscal 2016. | |||||||||||||||||||||||
Fair_Value
Fair Value | 12 Months Ended | |||||||||||||||||||||||||
Oct. 31, 2013 | ||||||||||||||||||||||||||
Fair Value | ' | |||||||||||||||||||||||||
Fair Value | ' | |||||||||||||||||||||||||
Note 8: 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 | ||||||||||||||||||||||||||
Valuation techniques used by HP are based upon observable and unobservable inputs. Observable or market inputs reflect market data obtained from independent sources, while unobservable inputs reflect HP's assumptions about market participant assumptions based on the best information available. 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 in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | ||||||||||||||||||||||||||
Level 3—Unobservable inputs for the asset or liability. | ||||||||||||||||||||||||||
The fair value hierarchy gives the highest priority to observable inputs and lowest priority to unobservable inputs. | ||||||||||||||||||||||||||
The following table presents HP's assets and liabilities that are measured at fair value on a recurring basis: | ||||||||||||||||||||||||||
As of October 31, 2013 | As of October 31, 2012 | |||||||||||||||||||||||||
Fair Value | Fair Value | |||||||||||||||||||||||||
Measured Using | Total | Measured Using | Total | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Balance | Level 1 | Level 2 | Level 3 | Balance | |||||||||||||||||||
In millions | ||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||
Time deposits | $ | — | $ | 2,221 | $ | — | $ | 2,221 | $ | — | $ | 3,641 | $ | — | $ | 3,641 | ||||||||||
Money market funds | 6,819 | — | — | 6,819 | 4,630 | — | — | 4,630 | ||||||||||||||||||
Mutual funds | — | 313 | — | 313 | — | 469 | — | 469 | ||||||||||||||||||
Marketable equity securities | 10 | 5 | — | 15 | 60 | 3 | — | 63 | ||||||||||||||||||
Foreign bonds | 9 | 387 | — | 396 | 8 | 377 | — | 385 | ||||||||||||||||||
Other debt securities | — | 2 | 47 | 49 | 1 | — | 55 | 56 | ||||||||||||||||||
Derivatives: | ||||||||||||||||||||||||||
Interest rate contracts | — | 156 | — | 156 | — | 344 | — | 344 | ||||||||||||||||||
Foreign exchange contracts | — | 284 | 3 | 287 | — | 291 | — | 291 | ||||||||||||||||||
Other derivatives | — | 9 | — | 9 | — | 1 | — | 1 | ||||||||||||||||||
Total Assets | $ | 6,838 | $ | 3,377 | $ | 50 | $ | 10,265 | $ | 4,699 | $ | 5,126 | $ | 55 | $ | 9,880 | ||||||||||
Liabilities | ||||||||||||||||||||||||||
Derivatives: | ||||||||||||||||||||||||||
Interest rate contracts | $ | — | $ | 107 | $ | — | $ | 107 | $ | — | $ | 29 | $ | — | $ | 29 | ||||||||||
Foreign exchange contracts | — | 547 | 2 | 549 | — | 485 | 1 | 486 | ||||||||||||||||||
Other derivatives | — | — | — | — | — | 3 | — | 3 | ||||||||||||||||||
Total Liabilities | $ | — | $ | 654 | $ | 2 | $ | 656 | $ | — | $ | 517 | $ | 1 | $ | 518 | ||||||||||
For the twelve months ended October 31, 2013 and October 31, 2012, there were no material transfers between the levels within the fair value hierarchy. | ||||||||||||||||||||||||||
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 instruments were based on quoted market prices or model driven valuations using inputs primarily derived from or corroborated by observable market data, and in certain instances internally developed valuation models that utilize assumptions which cannot be corroborated with observable market data. | ||||||||||||||||||||||||||
Derivative Instruments: As discussed in Note 9, HP mainly holds non-speculative forwards, swaps and options to hedge certain foreign currency and interest rate exposures. When prices in active markets are not available for the identical asset or liability, 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. | ||||||||||||||||||||||||||
Other Fair Value Disclosures | ||||||||||||||||||||||||||
Short- and Long-Term Debt: HP calculates the estimated fair value of its debt primarily using an expected present value technique which is based upon observable market inputs using interest rates currently available to companies of similar credit standing for similar terms and remaining maturities and considers HP's own credit risk. The portion of HP's fixed-rate debt obligations that is hedged is reflected in the Consolidated Balance Sheets as an amount equal to the debt's carrying amount, which includes a fair value adjustment representing changes in the fair value of the hedged debt obligations arising from movements in benchmark interest rates. The estimated fair value of HP's short- and long-term debt was approximately $22.7 billion at October 31, 2013, compared to its carrying value of $22.6 billion at that date. The estimated fair value of HP's short- and long-term debt approximated its carrying value of $28.4 billion at October 31, 2012. If measured at fair value in the Consolidated Balance Sheets, short- and long-term debt would be classified in Level 2 of the fair value hierarchy. | ||||||||||||||||||||||||||
Other Financial Instruments: For the balance of HP's financial instruments, primarily accounts receivable, accounts payable and financial liabilities in other accrued liabilities, the carrying amounts approximate fair value due to their short maturities. If measured at fair value in the Consolidated Balance Sheets, these other financial instruments would be classified in Level 3 of the fair value hierarchy. | ||||||||||||||||||||||||||
Non-Marketable Equity Investments and Non-Financial Assets: HP's non-marketable equity investments and non-financial assets, such as intangible assets, goodwill and property, plant and equipment, are recorded at fair value only if an impairment charge is recognized. For the fiscal year ended October 31, 2012, HP recognized a goodwill and intangible asset impairment charge of $8.8 billion associated with the Autonomy reporting unit within the Software segment, a goodwill impairment charge of $8.0 billion associated with the ES reporting unit within the Services segment and an intangible asset impairment charge of $1.2 billion associated with the "Compaq" trade name within the Personal Systems segment. | ||||||||||||||||||||||||||
The fair value of HP's reporting units was classified in Level 3 of the fair value hierarchy due to the significance of unobservable inputs developed using company-specific information. HP used the income approach to measure the fair value of the ES and Autonomy reporting units. Under the income approach, HP calculated the fair value of a reporting unit based on the present value of the estimated future cash flows. Cash flow projections were based on management's estimates of revenue growth rates and operating margins, taking into consideration industry and market conditions. The discount rate used was based on the weighted-average cost of capital adjusted for the relevant risk associated with business-specific characteristics and the uncertainty related to the business's ability to execute on the projected cash flows. The discount rate also reflected adjustments required when comparing the sum of the fair values of HP's reporting units to HP's market capitalization as discussed in Note 6. The unobservable inputs used to estimate the fair value these reporting units included projected revenue growth rates, profitability and the risk factor added to the discount rate. | ||||||||||||||||||||||||||
The inputs used to estimate the fair value of the intangible assets of Autonomy and the "Compaq" trade name were largely unobservable, and, accordingly, these measurements were classified in Level 3 of the fair value hierarchy. The fair value of the intangible assets for Autonomy were estimated using an income approach, which is based on management's cash flow projections of revenue growth rates and operating margins, taking into consideration industry and market conditions. HP estimated the fair value of the "Compaq" trade name by calculating the present value of the royalties saved that would have been paid to a third party had HP not owned the trade name. The discount rates used in the fair value calculations for the Autonomy intangibles and the "Compaq" trade name were based on a weighted average cost of capital adjusted for the relevant risk associated with those assets. The unobservable inputs used in these valuations include projected revenue growth rates, operating margins, royalty rates and the risk factor added to the discount rate. The discount rates ranged from 11% to 16%. Projected revenue growth rates ranged from (61)% to 13%. The (61)% rate reflected the significant decline in expected future revenues for Compaq-branded products from fiscal 2013 to fiscal 2014 due to the change in branding strategy discussed in Note 6. | ||||||||||||||||||||||||||
Financial_Instruments
Financial Instruments | 12 Months Ended | |||||||||||||||||||||||||||||||
Oct. 31, 2013 | ||||||||||||||||||||||||||||||||
Financial Instruments | ' | |||||||||||||||||||||||||||||||
Financial Instruments | ' | |||||||||||||||||||||||||||||||
Note 9: Financial Instruments | ||||||||||||||||||||||||||||||||
Cash Equivalents and Available-for-Sale Investments | ||||||||||||||||||||||||||||||||
Cash equivalents and available-for-sale investments as of October 31, 2013 and October 31, 2012 were as follows: | ||||||||||||||||||||||||||||||||
October 31, 2013 | October 31, 2012 | |||||||||||||||||||||||||||||||
Cost | Gross | Gross | Fair | Cost | Gross | Gross | Fair | |||||||||||||||||||||||||
Unrealized | Unrealized | Value | Unrealized | Unrealized | Value | |||||||||||||||||||||||||||
Gain | Loss | Gain | Loss | |||||||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||||||||
Cash Equivalents | ||||||||||||||||||||||||||||||||
Time deposits | $ | 2,207 | $ | — | $ | — | $ | 2,207 | $ | 3,633 | $ | — | $ | — | $ | 3,633 | ||||||||||||||||
Money market funds | 6,819 | — | — | 6,819 | 4,630 | — | — | 4,630 | ||||||||||||||||||||||||
Mutual funds | 13 | — | — | 13 | 69 | — | — | 69 | ||||||||||||||||||||||||
Total cash equivalents | 9,039 | — | — | 9,039 | 8,332 | — | — | 8,332 | ||||||||||||||||||||||||
Available-for-Sale Investments | ||||||||||||||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||||||||||
Time deposits | 14 | — | — | 14 | 8 | — | — | 8 | ||||||||||||||||||||||||
Foreign bonds | 310 | 86 | — | 396 | 303 | 82 | — | 385 | ||||||||||||||||||||||||
Other debt securities | 64 | — | (15 | ) | 49 | 73 | — | (17 | ) | 56 | ||||||||||||||||||||||
Total debt securities | 388 | 86 | (15 | ) | 459 | 384 | 82 | (17 | ) | 449 | ||||||||||||||||||||||
Equity securities: | ||||||||||||||||||||||||||||||||
Mutual funds | 300 | — | — | 300 | 400 | — | — | 400 | ||||||||||||||||||||||||
Equity securities in public companies | 5 | 6 | — | 11 | 50 | 9 | — | 59 | ||||||||||||||||||||||||
Total equity securities | 305 | 6 | — | 311 | 450 | 9 | — | 459 | ||||||||||||||||||||||||
Total available-for-sale investments | 693 | 92 | (15 | ) | 770 | 834 | 91 | (17 | ) | 908 | ||||||||||||||||||||||
Total cash equivalents and available-for-sale investments | $ | 9,732 | $ | 92 | $ | (15 | ) | $ | 9,809 | $ | 9,166 | $ | 91 | $ | (17 | ) | $ | 9,240 | ||||||||||||||
All highly liquid investments with original maturities of three months or less at the date of acquisition are considered to be cash equivalents. As of October 31, 2013 and 2012, the carrying value of cash equivalents approximates fair value due to the short period of time to maturity. Interest income related to cash and cash equivalents was approximately $148 million in fiscal 2013, $155 million in fiscal 2012 and $167 million in fiscal 2011. Time deposits were primarily issued by institutions outside the United States as of October 31, 2013 and October 31, 2012. The estimated fair values of the available-for-sale investments may not be representative of actual values that will be realized in the future. | ||||||||||||||||||||||||||||||||
The gross unrealized loss as of October 31, 2013 and October 31, 2012 was due primarily to decline in the fair value of a debt security of $15 million and $17 million, respectively, that has been in a continuous loss position for more than twelve months. HP does not intend to sell this debt security, and it is not likely that HP will be required to sell this debt security prior to the recovery of the amortized cost. | ||||||||||||||||||||||||||||||||
Contractual maturities of short-term and long-term investments in available-for-sale debt securities were as follows: | ||||||||||||||||||||||||||||||||
October 31, 2013 | ||||||||||||||||||||||||||||||||
Cost | Fair Value | |||||||||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||||||||
Due in one to five years | $ | 16 | $ | 16 | ||||||||||||||||||||||||||||
Due in more than five years | 372 | 443 | ||||||||||||||||||||||||||||||
$ | 388 | $ | 459 | |||||||||||||||||||||||||||||
Equity securities in privately held companies include cost basis and equity method investments. These amounted to $50 million and $51 million at October 31, 2013 and October 31, 2012, respectively, and are included in long-term financing receivables and other assets. | ||||||||||||||||||||||||||||||||
Derivative Financial Instruments | ||||||||||||||||||||||||||||||||
HP is a global company exposed to foreign currency exchange rate fluctuations and interest rate changes in the normal course of its business. As part of its risk management strategy, HP uses derivative instruments, primarily forward contracts, option contracts, interest rate swaps, and total return swaps, to hedge certain foreign currency, interest rate and, to a lesser extent, equity exposures. HP's objective is to offset gains and losses resulting from these exposures with losses and gains on the derivative contracts used to hedge them, thereby reducing volatility of earnings or protecting fair values of assets and liabilities. HP does not have any leveraged derivatives and does not use derivative contracts for speculative purposes. HP designates its derivatives as fair value hedges, cash flow hedges or hedges of the foreign currency exposure of a net investment in a foreign operation ("net investment hedges"). Additionally, for derivatives not designated as hedging instruments, HP categorizes those economic hedges as other derivatives. HP recognizes all derivatives, on a gross basis, in the Consolidated Balance Sheets at fair value. HP classifies cash flows from the derivative programs as operating activities in the Consolidated Statements of Cash Flows. | ||||||||||||||||||||||||||||||||
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. To mitigate this counterparty credit risk, HP has a policy of only entering into contracts with carefully selected major financial institutions based upon their credit ratings and other factors, and HP maintains dollar risk limits that correspond to each institution's credit rating and other factors. HP's established policies and procedures for mitigating credit risk include reviewing and establishing limits for credit exposure and periodically re-assessing the creditworthiness of counterparties. Master agreements with counterparties include master netting arrangements as further mitigation of credit exposure to counterparties. These arrangements permit HP to net amounts due from HP to a counterparty with amounts due to HP from the same counterparty. HP does not offset the fair value of its derivative instruments against the fair value of cash collateral receivable or payable under its master netting arrangements. | ||||||||||||||||||||||||||||||||
To further mitigate credit exposure to counterparties, HP has collateral security arrangements that cover the vast majority of its counterparty risk. These arrangements require HP to post collateral or to hold collateral from counterparties when derivative fair values exceed contractually established thresholds which are generally based on the credit ratings of HP and its counterparties. If HP's or the counterparty's credit rating falls below a specified credit rating, either party has the right to request full collateralization on the derivatives' net liability position. Such funds are generally transferred within two business days of the due date. As of October 31, 2013, HP held $30 million of collateral and posted $283 million under these collateralized arrangements, of which $30 million was through re-use of counterparty cash collateral and $253 million was in cash. As of October 31, 2012, HP held $198 million of collateral and posted $72 million under these collateralized arrangements, of which $49 million was through re-use of counterparty cash collateral and $23 million in cash. | ||||||||||||||||||||||||||||||||
Further, under HP's agreements with its counterparties, 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 as of October 31, 2013 and October 31, 2012. | ||||||||||||||||||||||||||||||||
Fair Value Hedges | ||||||||||||||||||||||||||||||||
HP enters into fair value hedges to reduce the exposure of its debt portfolio to interest rate risk. HP issues long-term debt in U.S. dollars based on market conditions at the time of financing. HP uses interest rate swaps to mitigate the market risk exposures in connection with the debt to achieve a primarily U.S. dollar LIBOR-based floating interest expense. The swap transactions generally involve principal and interest obligations for U.S. dollar-denominated amounts. Alternatively, HP may choose not to swap fixed for floating interest payments or may terminate a previously executed swap if it believes a larger proportion of fixed-rate debt would be beneficial. | ||||||||||||||||||||||||||||||||
When investing in fixed-rate instruments, HP may enter into interest rate swaps that convert the fixed interest payments into variable interest payments and would classify these swaps as fair value hedges. | ||||||||||||||||||||||||||||||||
For derivative instruments that are designated and qualify as fair value hedges, HP recognizes the gain or loss on the derivative instrument, as well as the offsetting loss or gain on the hedged item, in Interest and other, net in the Consolidated Statements of Earnings in the period of change. | ||||||||||||||||||||||||||||||||
Cash Flow Hedges | ||||||||||||||||||||||||||||||||
HP uses a combination of forward contracts and options designated as cash flow hedges to protect against the foreign currency exchange rate risks inherent in its forecasted net revenue and, to a lesser extent, cost of sales, operating expenses, and intercompany loans denominated in currencies other than the U.S. dollar. HP's foreign currency cash flow hedges mature generally within twelve months. However, certain leasing revenue-related forward contracts and intercompany loan forward contracts extend for the duration of the lease or loan term, which can be up to five years. | ||||||||||||||||||||||||||||||||
For derivative instruments that are designated and qualify as cash flow hedges, HP initially records the effective portion of the gain or loss on the derivative instrument in Accumulated other comprehensive loss as a separate component of stockholders' equity in the Consolidated Balance Sheets and subsequently reclassifies these amounts into earnings in the period during which the hedged transaction is recognized in earnings. HP reports the effective portion of cash flow hedges in the same financial statement line item as the changes in value of the hedged item. During fiscal 2013 and 2012 there was no significant impact to results of operations as a result of discontinued cash flow hedges. During fiscal 2011, HP did not discontinue any cash flow hedge for which it was probable that a forecasted transaction would not occur. | ||||||||||||||||||||||||||||||||
Net Investment Hedges | ||||||||||||||||||||||||||||||||
HP uses forward contracts designated as net investment hedges to hedge net investments in certain foreign subsidiaries whose functional currency is the local currency. These derivative instruments are designated as net investment hedges and, as such, HP records the effective portion of the gain or loss on the derivative instrument together with changes in the hedged items in Cumulative translation adjustment as a separate component of stockholders' equity in the Consolidated Balance Sheets. | ||||||||||||||||||||||||||||||||
Other Derivatives | ||||||||||||||||||||||||||||||||
Other derivatives not designated as hedging instruments consist primarily of forward contracts HP uses to hedge foreign currency balance sheet exposures. HP also uses total return swaps and, to a lesser extent, interest rate swaps, based on the equity and fixed income indices, to hedge its executive deferred compensation plan liability. | ||||||||||||||||||||||||||||||||
For derivative instruments not designated as hedging instruments, HP recognizes changes in the fair values in earnings in the period of change. HP recognizes the gain or loss on foreign currency forward contracts used to hedge balance sheet exposures in Interest and other, net in the Consolidated Statements of Earnings in the same period as the remeasurement gain and loss of the related foreign currency denominated assets and liabilities. HP recognizes the gain or loss on the total return swaps and interest rate swaps in Interest and other, net in the same period as the gain or loss from the change in market value of the executive deferred compensation plan liability. | ||||||||||||||||||||||||||||||||
Hedge Effectiveness | ||||||||||||||||||||||||||||||||
For interest rate swaps designated as fair value hedges, HP measures effectiveness by offsetting the change in fair value of the hedged instrument with the change in fair value of the derivative. For foreign currency options and forward contracts designated as cash flow or net investment hedges, HP measures effectiveness by comparing the cumulative change in the hedge contract with the cumulative change in the hedged item, both of which are based on forward rates. HP recognizes any ineffective portion of the hedge, as well as amounts not included in the assessment of effectiveness, in the Consolidated Statements of Earnings. | ||||||||||||||||||||||||||||||||
Fair Value of Derivative Instruments in the Consolidated Balance Sheets | ||||||||||||||||||||||||||||||||
As discussed in Note 8, HP estimates the fair values of derivatives primarily based on pricing models using current market rates and records all derivatives on the balance sheet at fair value. The gross notional and fair value of derivative financial instruments in the Consolidated Balance Sheets were as follows: | ||||||||||||||||||||||||||||||||
As of October 31, 2013 | As of October 31, 2012 | |||||||||||||||||||||||||||||||
Gross | Other | Long-Term | Other | Long-Term | Gross | Other | Long-Term | Other | Long-Term | |||||||||||||||||||||||
Notional(1) | Current | Financing | Accrued | Other | Notional(1) | Current | Financing | Accrued | Other | |||||||||||||||||||||||
Assets | Receivables | Liabilities | Liabilities | Assets | Receivables | Liabilities | Liabilities | |||||||||||||||||||||||||
and Other | and Other | |||||||||||||||||||||||||||||||
Assets | Assets | |||||||||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||||||||
Derivatives designated as hedging instruments | ||||||||||||||||||||||||||||||||
Fair value hedges: | ||||||||||||||||||||||||||||||||
Interest rate contracts | $ | 11,100 | $ | 31 | $ | 125 | $ | — | $ | 107 | $ | 7,900 | $ | 43 | $ | 276 | $ | — | $ | — | ||||||||||||
Cash flow hedges: | ||||||||||||||||||||||||||||||||
Foreign exchange contracts | 22,463 | 79 | 40 | 341 | 80 | 19,409 | 160 | 24 | 277 | 79 | ||||||||||||||||||||||
Net investment hedges: | ||||||||||||||||||||||||||||||||
Foreign exchange contracts | 1,920 | 30 | 40 | 20 | 12 | 1,683 | 14 | 15 | 36 | 24 | ||||||||||||||||||||||
Total derivatives designated as hedging instruments | 35,483 | 140 | 205 | 361 | 199 | 28,992 | 217 | 315 | 313 | 103 | ||||||||||||||||||||||
Derivatives not designated as hedging instruments | ||||||||||||||||||||||||||||||||
Foreign exchange contracts | 16,048 | 72 | 26 | 76 | 20 | 18,687 | 61 | 17 | 51 | 19 | ||||||||||||||||||||||
Interest rate contracts(2) | — | — | — | — | — | 2,200 | 25 | — | 29 | — | ||||||||||||||||||||||
Other derivatives | 344 | 8 | 1 | — | — | 383 | 1 | — | 3 | — | ||||||||||||||||||||||
Total derivatives not designated as hedging instruments | 16,392 | 80 | 27 | 76 | 20 | 21,270 | 87 | 17 | 83 | 19 | ||||||||||||||||||||||
Total derivatives | $ | 51,875 | $ | 220 | $ | 232 | $ | 437 | $ | 219 | $ | 50,262 | $ | 304 | $ | 332 | $ | 396 | $ | 122 | ||||||||||||
-1 | ||||||||||||||||||||||||||||||||
Represents the face amounts of contracts that were outstanding as of October 31, 2013 and October 31, 2012, respectively. | ||||||||||||||||||||||||||||||||
-2 | ||||||||||||||||||||||||||||||||
Represents offsetting swaps acquired through previous business combinations that were not designated as hedging instruments. | ||||||||||||||||||||||||||||||||
Effect of Derivative Instruments on the Consolidated Statements of Earnings | ||||||||||||||||||||||||||||||||
The pre-tax effect of derivative instruments and related hedged items in a fair value hedging relationship for fiscal years ended October 31, 2013 and October 31, 2012 were as follows: | ||||||||||||||||||||||||||||||||
(Loss) Gain Recognized in Income on Derivative and Related Hedged Item | ||||||||||||||||||||||||||||||||
Derivative Instrument | Location | 2013 | Hedged Item | Location | 2013 | |||||||||||||||||||||||||||
In millions | In millions | |||||||||||||||||||||||||||||||
Interest rate contracts | Interest and other, net | $ | (270 | ) | Fixed-rate debt | Interest and other, net | $ | 270 | ||||||||||||||||||||||||
(Loss) Gain Recognized in Income on Derivative and Related Hedged Item | ||||||||||||||||||||||||||||||||
Derivative Instrument | Location | 2012 | Hedged Item | Location | 2012 | |||||||||||||||||||||||||||
In millions | In millions | |||||||||||||||||||||||||||||||
Interest rate contracts | Interest and other, net | $ | (130 | ) | Fixed-rate debt | Interest and other, net | $ | 134 | ||||||||||||||||||||||||
The pre-tax effect of derivative instruments in cash flow and net investment hedging relationships for fiscal 2013 and 2012 were as follows: | ||||||||||||||||||||||||||||||||
Gain (Loss) | Gain (Loss) Reclassified from | |||||||||||||||||||||||||||||||
Recognized in | Accumulated OCI into Income | |||||||||||||||||||||||||||||||
Other | (Effective Portion) | |||||||||||||||||||||||||||||||
Comprehensive | ||||||||||||||||||||||||||||||||
Income ("OCI") | ||||||||||||||||||||||||||||||||
on Derivative | ||||||||||||||||||||||||||||||||
(Effective Portion) | ||||||||||||||||||||||||||||||||
2013 | Location | 2013 | ||||||||||||||||||||||||||||||
In millions | In millions | |||||||||||||||||||||||||||||||
Cash flow hedges: | ||||||||||||||||||||||||||||||||
Foreign exchange contracts | $ | (53 | ) | Net revenue | $ | 48 | ||||||||||||||||||||||||||
Foreign exchange contracts | (192 | ) | Cost of products | (165 | ) | |||||||||||||||||||||||||||
Foreign exchange contracts | (19 | ) | Other operating expenses | 1 | ||||||||||||||||||||||||||||
Foreign exchange contracts | 21 | Interest and other, net | 10 | |||||||||||||||||||||||||||||
Total cash flow hedges | $ | (243 | ) | $ | (106 | ) | ||||||||||||||||||||||||||
Net investment hedges: | ||||||||||||||||||||||||||||||||
Foreign exchange contracts | $ | 38 | Interest and other, net | $ | — | |||||||||||||||||||||||||||
Gain (Loss) | Gain (Loss) Reclassified from | |||||||||||||||||||||||||||||||
Recognized in | Accumulated OCI into Income | |||||||||||||||||||||||||||||||
OCI on Derivative | (Effective Portion) | |||||||||||||||||||||||||||||||
(Effective Portion) | ||||||||||||||||||||||||||||||||
2012 | Location | 2012 | ||||||||||||||||||||||||||||||
In millions | In millions | |||||||||||||||||||||||||||||||
Cash flow hedges: | ||||||||||||||||||||||||||||||||
Foreign exchange contracts | $ | 415 | Net revenue | $ | 423 | |||||||||||||||||||||||||||
Foreign exchange contracts | (65 | ) | Cost of products | (15 | ) | |||||||||||||||||||||||||||
Foreign exchange contracts | (7 | ) | Other operating expenses | (6 | ) | |||||||||||||||||||||||||||
Foreign exchange contracts | (8 | ) | Interest and other, net | (3 | ) | |||||||||||||||||||||||||||
Total cash flow hedges | $ | 335 | $ | 399 | ||||||||||||||||||||||||||||
Net investment hedges: | ||||||||||||||||||||||||||||||||
Foreign exchange contracts | $ | 37 | Interest and other, net | $ | — | |||||||||||||||||||||||||||
As of October 31, 2013, no portion of the hedging instruments gain or loss was excluded from the assessment of effectiveness for fair value, cash flow or net investment hedges. As of October 31, 2012, the portion of hedging instruments gain or loss excluded from the assessment of effectiveness was not material for fair value, cash flow or net investment hedges. Hedge ineffectiveness for fair value, cash flow and net investment hedges was not material for fiscal 2013, 2012 and 2011. | ||||||||||||||||||||||||||||||||
As of October 31, 2013, HP expects to reclassify an estimated net Accumulated other comprehensive loss of approximately $177 million, net of taxes, to earnings in the next twelve months along with the earnings effects of the related forecasted transactions associated with cash flow hedges. | ||||||||||||||||||||||||||||||||
The pre-tax effect of derivative instruments not designated as hedging instruments on the Consolidated Statements of Earnings for fiscal 2013 and 2012 were as follows: | ||||||||||||||||||||||||||||||||
Gain (Loss) Recognized in Income on Derivative | ||||||||||||||||||||||||||||||||
Location | 2013 | |||||||||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||||||||
Foreign exchange contracts | Interest and other, net | $ | 166 | |||||||||||||||||||||||||||||
Other derivatives | Interest and other, net | 11 | ||||||||||||||||||||||||||||||
Interest rate contracts | Interest and other, net | 3 | ||||||||||||||||||||||||||||||
Total | $ | 180 | ||||||||||||||||||||||||||||||
Gain (Loss) Recognized in Income on Derivative | ||||||||||||||||||||||||||||||||
Location | 2012 | |||||||||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||||||||
Foreign exchange contracts | Interest and other, net | $ | 171 | |||||||||||||||||||||||||||||
Other derivatives | Interest and other, net | (32 | ) | |||||||||||||||||||||||||||||
Interest rate contracts | Interest and other, net | 13 | ||||||||||||||||||||||||||||||
Total | $ | 152 | ||||||||||||||||||||||||||||||
Financing_Receivables_and_Oper
Financing Receivables and Operating Leases | 12 Months Ended | |||||||||||||||||||
Oct. 31, 2013 | ||||||||||||||||||||
Financing Receivables and Operating Leases | ' | |||||||||||||||||||
Financing Receivables and Operating Leases | ' | |||||||||||||||||||
Note 10: Financing Receivables and Operating Leases | ||||||||||||||||||||
Financing receivables represent sales-type and direct-financing leases resulting from the placement of HP and third-party products. These receivables typically have terms from two to five years and are usually collateralized by a security interest in the underlying assets. Financing receivables also include billed receivables from operating leases. The components of financing receivables, which are included in Financing receivables, net and Long-term financing receivables and other assets in the accompanying Consolidated Balance Sheets, were as follows: | ||||||||||||||||||||
October 31, | October 31, | |||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
In millions | ||||||||||||||||||||
Minimum lease payments receivable | $ | 7,505 | $ | 8,133 | ||||||||||||||||
Unguaranteed residual value | 252 | 248 | ||||||||||||||||||
Unearned income | (604 | ) | (688 | ) | ||||||||||||||||
Financing receivables, gross | 7,153 | 7,693 | ||||||||||||||||||
Allowance for doubtful accounts | (131 | ) | (149 | ) | ||||||||||||||||
Financing receivables, net | 7,022 | 7,544 | ||||||||||||||||||
Less current portion | (3,144 | ) | (3,252 | ) | ||||||||||||||||
Amounts due after one year, net | $ | 3,878 | $ | 4,292 | ||||||||||||||||
As of October 31, 2013, scheduled maturities of HP's minimum lease payments receivable were as follows for the following fiscal years ended October 31: | ||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | Thereafter | Total | |||||||||||||||
In millions | ||||||||||||||||||||
Scheduled maturities of minimum lease payments receivable | $ | 3,490 | $ | 2,022 | $ | 1,237 | $ | 555 | $ | 201 | $ | 7,505 | ||||||||
Credit Quality Indicators | ||||||||||||||||||||
Due to the homogenous nature of its leasing transactions, HP manages its financing receivables on an aggregate basis when assessing and monitoring credit risk. Credit risk is generally diversified due to the large number of entities comprising HP's customer base and their dispersion across many different industries and geographical regions. HP evaluates the credit quality of an obligor at lease inception and monitors that credit quality over the term of a transaction. HP assigns risk ratings to each lease based on the creditworthiness of the obligor and other variables that augment or mitigate the inherent credit risk of a particular transaction. Such variables include the underlying value and liquidity of the collateral, the essential use of the equipment, the term of the lease, and the inclusion of guarantees, letters of credit, security deposits or other credit enhancements. | ||||||||||||||||||||
The credit risk profile of gross financing receivables, based on internally assigned ratings, was as follows: | ||||||||||||||||||||
October 31, | October 31, | |||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
In millions | ||||||||||||||||||||
Risk Rating | ||||||||||||||||||||
Low | $ | 3,948 | $ | 4,461 | ||||||||||||||||
Moderate | 3,084 | 3,151 | ||||||||||||||||||
High | 121 | 81 | ||||||||||||||||||
Total | $ | 7,153 | $ | 7,693 | ||||||||||||||||
Accounts rated low risk typically have the equivalent of a Standard & Poor's rating of BBB- or higher, while accounts rated moderate risk generally have the equivalent of BB+ or lower. HP classifies accounts as high risk when it considers the financing receivable to be impaired or when management believes that there is a near-term risk of impairment. | ||||||||||||||||||||
Allowance for Doubtful Accounts for Financing Receivables | ||||||||||||||||||||
The allowance for doubtful accounts is comprised of a general reserve and a specific reserve. HP maintains general reserve percentages on a regional basis and bases such percentages on several factors, including consideration of historical credit losses and portfolio delinquencies, trends in the overall weighted-average risk rating of the portfolio, current economic conditions and information derived from competitive benchmarking. HP excludes accounts evaluated as part of the specific reserve from the general reserve analysis. HP establishes a specific reserve for leases with identified exposures, such as customer defaults, bankruptcy or other events, that make it unlikely that HP will recover its investment in the lease. For individually evaluated receivables, HP determines the expected cash flow for the receivable, which includes consideration of estimated proceeds from disposition of the collateral, and calculates an estimate of the potential loss and the probability of loss. For those accounts where a loss is probable, HP records a specific reserve. HP generally records a write-off or specific reserve when an account reaches 180 days past due, or sooner if HP determines that the account is not collectible. | ||||||||||||||||||||
The allowance for doubtful accounts for financing receivables was as follows: | ||||||||||||||||||||
For the fiscal years | ||||||||||||||||||||
ended October 31 | ||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||
In millions | ||||||||||||||||||||
Balance at beginning of year | $ | 149 | $ | 130 | $ | 140 | ||||||||||||||
Provision for doubtful accounts | 38 | 42 | 58 | |||||||||||||||||
Deductions, net of recoveries | (56 | ) | (23 | ) | (68 | ) | ||||||||||||||
Balance at end of year | $ | 131 | $ | 149 | $ | 130 | ||||||||||||||
The allowance and related gross financing receivables collectively and individually evaluated for loss were as follows: | ||||||||||||||||||||
October 31, | October 31, | |||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
In millions | ||||||||||||||||||||
Allowance for financing receivables collectively evaluated for loss | $ | 95 | $ | 104 | ||||||||||||||||
Allowance for financing receivables individually evaluated for loss | 36 | 45 | ||||||||||||||||||
Total | $ | 131 | $ | 149 | ||||||||||||||||
Gross financing receivables collectively evaluated for loss | $ | 6,773 | $ | 7,355 | ||||||||||||||||
Gross financing receivables individually evaluated for loss | 380 | 338 | ||||||||||||||||||
Total | $ | 7,153 | $ | 7,693 | ||||||||||||||||
Non-Accrual and Past-due Financing Receivables | ||||||||||||||||||||
HP considers a financing receivable to be past due when the minimum payment is not received by the contractually specified due date. HP generally places financing receivables on non-accrual status (suspension of interest accrual) and considers such receivables to be non-performing at the earlier of the time at which full payment of principal and interest becomes doubtful or the receivable becomes contractually 90 days past due. Subsequently, HP may recognize revenue on non-accrual financing receivables as payments are received (i.e., on a cash basis) if HP deems the recorded financing receivable to be fully collectible; however, if there is doubt regarding the ultimate collectability of the recorded financing receivable, HP applies all cash receipts to reduce the carrying amount of the financing receivable (i.e., the cost recovery method). In certain circumstances, such as when HP deems a delinquency to be of an administrative nature, financing receivables may accrue interest after they reach 90 days past due. The non-accrual status of a financing receivable may not impact a customer's risk rating. After all of a customer's delinquent principal and interest balances are settled, HP may return the related financing receivable to accrual status. | ||||||||||||||||||||
The following table summarizes the aging and non-accrual status of gross financing receivables: | ||||||||||||||||||||
October 31, | October 31, | |||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
In millions | ||||||||||||||||||||
Billed(1): | ||||||||||||||||||||
Current 1-30 days | $ | 217 | $ | 216 | ||||||||||||||||
Past due 31-60 days | 50 | 53 | ||||||||||||||||||
Past due 61-90 days | 15 | 13 | ||||||||||||||||||
Past due >90 days | 46 | 51 | ||||||||||||||||||
Unbilled sales-type and direct-financing lease receivables | 6,825 | 7,360 | ||||||||||||||||||
Total gross financing receivables | $ | 7,153 | $ | 7,693 | ||||||||||||||||
Gross financing receivables on non-accrual status(2) | $ | 199 | $ | 225 | ||||||||||||||||
Gross financing receivables 90 days past due and still accruing interest(2) | $ | 181 | $ | 113 | ||||||||||||||||
-1 | ||||||||||||||||||||
Includes billed operating lease receivables and billed sales-type and direct-financing lease receivables. | ||||||||||||||||||||
-2 | ||||||||||||||||||||
Includes billed operating lease receivables and billed and unbilled sales-type and direct-financing lease receivables. | ||||||||||||||||||||
Operating Leases | ||||||||||||||||||||
Operating lease assets included in machinery and equipment were as follows: | ||||||||||||||||||||
October 31, | October 31, | |||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
In millions | ||||||||||||||||||||
Equipment leased to customers | $ | 3,822 | $ | 3,865 | ||||||||||||||||
Accumulated depreciation | (1,452 | ) | (1,499 | ) | ||||||||||||||||
Operating lease assets, net | $ | 2,370 | $ | 2,366 | ||||||||||||||||
As of October 31, 2013, minimum future rentals on non-cancelable operating leases related to leased equipment were as follows for the following fiscal years ended October 31: | ||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | Thereafter | Total | |||||||||||||||
In millions | ||||||||||||||||||||
Minimum future rentals on non-cancelable operating leases | $ | 1,212 | $ | 759 | $ | 346 | $ | 93 | $ | 28 | $ | 2,438 |
Guarantees
Guarantees | 12 Months Ended | |||||||
Oct. 31, 2013 | ||||||||
Guarantees | ' | |||||||
Guarantees | ' | |||||||
Note 11: Guarantees | ||||||||
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. | ||||||||
HP has entered into service contracts with certain of its clients that are supported by financing arrangements. If a service contract is terminated as a result of HP's non-performance under the contract or failure to comply with the terms of the financing arrangement, HP could, under certain circumstances, be required to acquire certain assets related to the service contract. HP believes the likelihood of it being required to acquire a material amount of assets under these arrangements is remote. | ||||||||
Indemnifications | ||||||||
In the ordinary course of business, HP enters into contractual arrangements under which HP may agree to indemnify the 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 against claims of intellectual property infringement made by third parties arising from the vendor's use of HP's software products and certain other matters. Such indemnification obligations may not be subject to maximum loss clauses. Historically, payments made related to these indemnifications have been immaterial. | ||||||||
Warranty | ||||||||
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, ongoing product failure rates, as well as specific product class failures outside of HP's baseline experience, affect the estimated warranty obligation. | ||||||||
The changes in HP's aggregate product warranty liabilities were as follows for the following fiscal years ended October 31: | ||||||||
2013 | 2012 | |||||||
In millions | ||||||||
Balance at beginning of year | $ | 2,170 | $ | 2,451 | ||||
Accruals for warranties issued | 2,007 | 2,249 | ||||||
Adjustments related to pre-existing warranties (including changes in estimates) | (4 | ) | (79 | ) | ||||
Settlements made (in cash or in kind) | (2,142 | ) | (2,451 | ) | ||||
Balance at end of year | $ | 2,031 | $ | 2,170 | ||||
Borrowings
Borrowings | 12 Months Ended | ||||||||||||||||||||||
Oct. 31, 2013 | |||||||||||||||||||||||
Borrowings | ' | ||||||||||||||||||||||
Borrowings | ' | ||||||||||||||||||||||
Note 12: Borrowings | |||||||||||||||||||||||
Notes Payable and Short-Term Borrowings | |||||||||||||||||||||||
Notes payable and short-term borrowings, including the current portion of long-term debt, were as follows for the following fiscal years ended October 31: | |||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||
Amount | Weighted- | Amount | Weighted- | ||||||||||||||||||||
Outstanding | Average Interest | Outstanding | Average Interest | ||||||||||||||||||||
Rate | Rate | ||||||||||||||||||||||
In millions | In millions | ||||||||||||||||||||||
Current portion of long-term debt | $ | 5,226 | 2.8 | % | $ | 5,744 | 1.6 | % | |||||||||||||||
Commercial paper(1) | 327 | 0.4 | % | 365 | 0.9 | % | |||||||||||||||||
Notes payable to banks, lines of credit and other(1) | 426 | 1.7 | % | 538 | 2.3 | % | |||||||||||||||||
$ | 5,979 | $ | 6,647 | ||||||||||||||||||||
-1 | |||||||||||||||||||||||
Commercial paper includes $327 million and $365 million and Notes payable to banks, lines of credit and other includes $368 million and $465 million at October 31, 2013 and October 31, 2012, respectively, of borrowing and funding related activity associated with HP Financial Services ("HPFS") and its subsidiaries. | |||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||
Long-term debt was as follows for the following fiscal years ended October 31: | |||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||
In millions | |||||||||||||||||||||||
U.S. Dollar Global Notes | |||||||||||||||||||||||
2006 Shelf Registration Statement: | |||||||||||||||||||||||
$500 issued at discount to par at a price of 99.694% in February 2007 at 5.4%, due March 2017 | $ | 499 | $ | 499 | |||||||||||||||||||
$1,500 issued at discount to par at a price of 99.921% in March 2008 at 4.5%, paid March 2013 | — | 1,500 | |||||||||||||||||||||
$750 issued at discount to par at a price of 99.932% in March 2008 at 5.5%, due March 2018 | 750 | 750 | |||||||||||||||||||||
$2,000 issued at discount to par at a price of 99.561% in December 2008 at 6.125%, due March 2014 | 1,999 | 1,998 | |||||||||||||||||||||
$1,500 issued at discount to par at a price of 99.993% in February 2009 at 4.75%, due June 2014 | 1,500 | 1,500 | |||||||||||||||||||||
2009 Shelf Registration Statement: | |||||||||||||||||||||||
$1,100 issued at discount to par at a price of 99.921% in September 2010 at 1.25%, paid September 2013 | — | 1,100 | |||||||||||||||||||||
$1,100 issued at discount to par at a price of 99.887% in September 2010 at 2.125%, due September 2015 | 1,100 | 1,100 | |||||||||||||||||||||
$650 issued at discount to par at a price of 99.911% in December 2010 at 2.2%, due December 2015 | 650 | 650 | |||||||||||||||||||||
$1,350 issued at discount to par at a price of 99.827% in December 2010 at 3.75%, due December 2020 | 1,349 | 1,348 | |||||||||||||||||||||
$1,750 issued at par in May 2011 at three month USD LIBOR plus 0.28%, paid May 2013 | — | 1,750 | |||||||||||||||||||||
$500 issued at par in May 2011 at three month USD LIBOR plus 0.4%, due May 2014 | 500 | 500 | |||||||||||||||||||||
$500 issued at discount to par at a price of 99.971% in May 2011 at 1.55%, due May 2014 | 500 | 500 | |||||||||||||||||||||
$1,000 issued at discount to par at a price of 99.958% in May 2011 at 2.65%, due June 2016 | 1,000 | 1,000 | |||||||||||||||||||||
$1,250 issued at discount to par at a price of 99.799% in May 2011 at 4.3%, due June 2021 | 1,248 | 1,248 | |||||||||||||||||||||
$750 issued at discount to par at a price of 99.977% in September 2011 at 2.35%, due March 2015 | 750 | 750 | |||||||||||||||||||||
$1,300 issued at discount to par at a price of 99.784% in September 2011 at 3.0%, due September 2016 | 1,298 | 1,298 | |||||||||||||||||||||
$1,000 issued at discount to par at a price of 99.816% in September 2011 at 4.375%, due September 2021 | 999 | 998 | |||||||||||||||||||||
$1,200 issued at discount to par at a price of 99.863% in September 2011 at 6.0%, due September 2041 | 1,198 | 1,198 | |||||||||||||||||||||
$350 issued at par in September 2011 at three-month USD LIBOR plus 1.55%, due September 2014 | 350 | 350 | |||||||||||||||||||||
$650 issued at discount to par at a price of 99.946% in December 2011 at 2.625%, due December 2014 | 650 | 650 | |||||||||||||||||||||
$850 issued at discount to par at a price of 99.790% in December 2011 at 3.3%, due December 2016 | 849 | 849 | |||||||||||||||||||||
$1,500 issued at discount to par at a price of 99.707% in December 2011 at 4.65%, due December 2021 | 1,496 | 1,496 | |||||||||||||||||||||
$1,500 issued at discount to par at a price of 99.985% in March 2012 at 2.6%, due September 2017 | 1,500 | 1,500 | |||||||||||||||||||||
$500 issued at discount to par at a price of 99.771% in March 2012 at 4.05%, due September 2022 | 499 | 499 | |||||||||||||||||||||
20,684 | 25,031 | ||||||||||||||||||||||
EDS Senior Notes | |||||||||||||||||||||||
$1,100 issued June 2003 at 6.0%, paid August 2013 | — | 1,109 | |||||||||||||||||||||
$300 issued October 1999 at 7.45%, due October 2029 | 314 | 314 | |||||||||||||||||||||
314 | 1,423 | ||||||||||||||||||||||
Other, including capital lease obligations, at 0.00%-8.39%, due in calendar years 2014-2024(1) | 689 | 680 | |||||||||||||||||||||
Fair value adjustment related to hedged debt | 147 | 399 | |||||||||||||||||||||
Less: current portion | (5,226 | ) | (5,744 | ) | |||||||||||||||||||
Total long-term debt | $ | 16,608 | $ | 21,789 | |||||||||||||||||||
-1 | |||||||||||||||||||||||
Other, including capital lease obligations includes $244 million and $225 million at October 31, 2013 and October 31, 2012, respectively, of borrowing and funding related activity associated with HPFS and its subsidiaries. | |||||||||||||||||||||||
As disclosed in Note 9, HP uses interest rate swaps to mitigate interest rate risk in connection with certain fixed-rate global notes in order to achieve primarily U.S. dollar LIBOR-based floating interest expense. The interest rates in the table above have not been adjusted to reflect the impact of any interest rate swaps. | |||||||||||||||||||||||
HP may redeem some or all of the fixed-rate U.S. Dollar Global Notes set forth in the above table at any time in accordance with the terms thereof. The U.S. Dollar Global Notes are senior unsecured debt. | |||||||||||||||||||||||
In May 2012, HP filed a shelf registration statement (the "2012 Shelf Registration Statement") with the Securities and Exchange Commission ("SEC") to enable the company to offer for sale, from time to time, in one or more offerings, an unspecified amount of debt securities, common stock, preferred stock, depositary shares and warrants. The 2012 Shelf Registration Statement replaced the registration statement filed in May 2009. | |||||||||||||||||||||||
HP's Board of Directors has authorized the issuance of up to $16.0 billion in aggregate principal amount of commercial paper by HP. HP's subsidiaries are authorized to issue up to an additional $1.0 billion in aggregate principal amount of commercial paper. HP maintains two commercial paper programs, and a wholly owned subsidiary maintains a third program. HP's U.S. program provides for the issuance of U.S. dollar-denominated commercial paper up to a maximum aggregate principal amount of $16.0 billion. HP's euro commercial paper program, which was established in September 2012, provides for the issuance of commercial paper outside of the United States denominated in U.S. dollars, euros or British pounds up to a maximum aggregate principal amount of $3.0 billion or the equivalent in those alternative currencies. The combined aggregate principal amount of commercial paper outstanding under those programs at any one time cannot exceed the $16.0 billion authorized by HP's Board of Directors. The HP subsidiary's Euro Commercial Paper/Certificate of Deposit Programme provides for the issuance of commercial paper in various currencies up to a maximum aggregate principal amount of $500 million. | |||||||||||||||||||||||
HP maintains senior unsecured committed credit facilities primarily to support the issuance of commercial paper. HP has a $3.0 billion five-year credit facility that expires in March 2017 and a $4.5 billion four-year credit facility that expires in February 2015. Both facilities support the U.S. commercial paper program and the euro commercial paper program. In addition, the five-year credit facility was amended in September 2012 to permit borrowings in euros and British pounds, with the amounts available in euros and pounds being limited to the U.S. dollar equivalent of $2.2 billion and $300 million, respectively. Commitment fees, interest rates and other terms of borrowing under the credit facilities vary based on HP's external credit ratings. HP's ability to have an outstanding U.S. commercial paper balance that exceeds the $7.5 billion supported by these credit facilities is subject to a number of factors, including liquidity conditions and business performance. | |||||||||||||||||||||||
Within Other, including capital lease obligations, are borrowings that are collateralized by certain financing receivable assets. As of October 31, 2013 and October 31, 2012, the carrying value of the assets approximated the carrying amount of the borrowings of $244 million and $225 million, respectively. | |||||||||||||||||||||||
As of October 31, 2013, HP had the capacity to issue an unspecified amount of additional debt securities, common stock, preferred stock, depositary shares and warrants under the 2012 Shelf Registration Statement. As of that date, HP also had up to $17.8 billion of available borrowing resources, including $16.2 billion in available capacity under its commercial paper programs and $1.6 billion relating to uncommitted lines of credit. The extent to which HP is able to utilize the 2012 Shelf Registration Statement and the commercial paper programs as sources of liquidity at any given time is subject to a number of factors, including market demand for HP securities and commercial paper, HP's financial performance, HP's credit ratings and market conditions generally. | |||||||||||||||||||||||
Aggregate future maturities of long-term debt at face value (excluding a fair value adjustment related to hedged debt of $147 million, a premium on debt issuance of $14 million, and a discount on debt issuance of $16 million) were as follows at October 31, 2013: | |||||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | Total | |||||||||||||||||
In millions | |||||||||||||||||||||||
Aggregate future maturities of debt outstanding including capital lease obligations | $ | 5,195 | $ | 2,543 | $ | 3,013 | $ | 2,891 | $ | 842 | $ | 7,205 | $ | 21,689 | |||||||||
Interest expense on borrowings was as follows: | |||||||||||||||||||||||
For the fiscal years ended October 31 | |||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||
In millions | |||||||||||||||||||||||
Financing interest | $ | 312 | $ | 317 | $ | 306 | |||||||||||||||||
Interest expense | 426 | 514 | 216 | ||||||||||||||||||||
Total interest expense | $ | 738 | $ | 831 | $ | 522 | |||||||||||||||||
Taxes_on_Earnings
Taxes on Earnings | 12 Months Ended | |||||||||||||
Oct. 31, 2013 | ||||||||||||||
Taxes on Earnings | ' | |||||||||||||
Taxes on Earnings | ' | |||||||||||||
Note 13: Taxes on Earnings | ||||||||||||||
Provision for Taxes | ||||||||||||||
The domestic and foreign components of earnings (loss) before taxes were as follows for the following fiscal years ended October 31: | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
In millions | ||||||||||||||
U.S. | $ | 2,618 | $ | (3,192 | ) | $ | 3,039 | |||||||
Non-U.S. | 3,892 | (8,741 | ) | 5,943 | ||||||||||
$ | 6,510 | $ | (11,933 | ) | $ | 8,982 | ||||||||
The provision for (benefit from) taxes on earnings was as follows for the following fiscal years ended October 31: | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
In millions | ||||||||||||||
U.S. federal taxes: | ||||||||||||||
Current | $ | 475 | $ | 330 | $ | 390 | ||||||||
Deferred | (666 | ) | 81 | (590 | ) | |||||||||
Non-U.S. taxes: | ||||||||||||||
Current | 1,275 | 1,139 | 1,177 | |||||||||||
Deferred | 89 | (787 | ) | 611 | ||||||||||
State taxes: | ||||||||||||||
Current | 57 | (41 | ) | 141 | ||||||||||
Deferred | 167 | (5 | ) | 179 | ||||||||||
$ | 1,397 | $ | 717 | $ | 1,908 | |||||||||
There was no net excess tax benefit recorded as a result of the exercise of employee stock options and other employee stock programs in fiscal 2013. Deficits of approximately $149 million and $175 million were recorded as a decrease in stockholders' equity in fiscal 2013 and 2012, respectively, and excess tax benefits of $128 million were recorded in fiscal 2011. | ||||||||||||||
The differences between the U.S. federal statutory income tax rate and HP's effective tax rate were as follows for the following fiscal years ended October 31: | ||||||||||||||
2013 | 2012(1) | 2011 | ||||||||||||
U.S. federal statutory income tax rate | 35 | % | 35 | % | 35 | % | ||||||||
State income taxes, net of federal tax benefit | 0.1 | 0.5 | 0.5 | |||||||||||
Lower rates in other jurisdictions, net | (24.5 | ) | 13.9 | (23.3 | ) | |||||||||
Research and development credit | (0.7 | ) | 0.1 | (0.6 | ) | |||||||||
Valuation allowance | 3.8 | (14.0 | ) | 5.2 | ||||||||||
Nondeductible goodwill | — | (40.3 | ) | 3.4 | ||||||||||
Uncertain tax positions | 4.1 | (1.4 | ) | (1.1 | ) | |||||||||
Other, net | 3.7 | 0.2 | 2.1 | |||||||||||
21.5 | % | (6.0 | )% | 21.2 | % | |||||||||
-1 | ||||||||||||||
Positive numbers represent tax benefits and negative numbers represent tax expense as HP recorded income tax expense on a pretax loss. | ||||||||||||||
The jurisdictions with favorable tax rates that have the most significant effective tax rate impact in the periods presented include China, Ireland, the Netherlands, Puerto Rico and Singapore. HP plans to reinvest some of the earnings of these jurisdictions indefinitely outside the United States, and therefore has not provided U.S. taxes on those indefinitely reinvested earnings. | ||||||||||||||
In fiscal 2013, HP recorded $471 million of net income tax charges related to items unique to the year. These amounts included $214 million of net increases to valuation allowances, $406 million of tax charges for adjustments to uncertain tax positions and the settlement of tax audit matters and $47 million of tax charges for various prior period adjustments. In addition, HP recorded $146 million of tax benefits from adjustments to prior year foreign income tax accruals and a tax benefit of $50 million arising from the retroactive research and development credit resulting from the American Taxpayer Relief Act of 2012, which was signed into law in January 2013. | ||||||||||||||
In fiscal 2012, HP recorded a $1.3 billion income tax charge to record valuation allowances on certain U.S. deferred tax assets related to the enterprise services business, which was unique to the year. Other unique items included charges of $297 million for various foreign valuation allowances, as well as $26 million of income tax benefits related to adjustments to prior year foreign income tax accruals, settlement of tax audit matters, and miscellaneous other items. | ||||||||||||||
In fiscal 2011, HP recorded $325 million of net income tax charges related to items unique to the year. These amounts included $468 million of tax charges for increases to foreign and state valuation allowances, offset by $78 million of income tax benefits for adjustments to prior year foreign income tax accruals, $63 million of income tax benefits for uncertain tax position reserve adjustments and settlement of tax audit matters, and $2 million of tax benefits associated with miscellaneous prior period items. | ||||||||||||||
As a result of certain employment actions and capital investments HP has undertaken, income from manufacturing and services in certain countries is subject to reduced tax rates, and in some cases is wholly exempt from taxes, through 2024. The gross income tax benefits attributable to these actions and investments were estimated to be $827 million ($0.42 diluted net earnings per share) in fiscal 2013, $900 million ($0.46 diluted net earnings per share) in fiscal 2012 and $1.3 billion ($0.62 diluted net earnings per share) in fiscal 2011. The gross income tax benefits were offset partially by accruals of U.S. income taxes on undistributed earnings, among other factors. | ||||||||||||||
Uncertain Tax Positions | ||||||||||||||
A reconciliation of unrecognized tax benefits is as follows: | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
In millions | ||||||||||||||
Balance at beginning of year | $ | 2,573 | $ | 2,118 | $ | 2,085 | ||||||||
Increases: | ||||||||||||||
For current year's tax positions | 290 | 209 | 384 | |||||||||||
For prior years' tax positions | 997 | 651 | 426 | |||||||||||
Decreases: | ||||||||||||||
For prior years' tax positions | (146 | ) | (321 | ) | (159 | ) | ||||||||
Statute of limitations expiration | (11 | ) | (1 | ) | (20 | ) | ||||||||
Settlements with taxing authorities | (219 | ) | (83 | ) | (598 | ) | ||||||||
Balance at end of year | $ | 3,484 | $ | 2,573 | $ | 2,118 | ||||||||
Up to $1.9 billion, $1.4 billion and $1.1 billion of HP's unrecognized tax benefits at October 31, 2013, 2012 and 2011, respectively, would affect HP's effective tax rate if realized. | ||||||||||||||
HP recognizes interest income from favorable settlements and income tax receivables and interest expense and penalties accrued on unrecognized tax benefits within income tax expense. As of October 31, 2013, HP had accrued $196 million for interest and penalties. | ||||||||||||||
HP engages in continuous discussion and negotiation with taxing authorities regarding tax matters in various jurisdictions. HP does not expect complete resolution of any U.S. Internal Revenue Service ("IRS") audit cycle within the next 12 months. However, it is reasonably possible that certain federal, foreign and state tax issues may be concluded in the next 12 months, including issues involving transfer pricing and other matters. Accordingly, HP believes it is reasonably possible that its existing unrecognized tax benefits may be reduced by an amount up to $1.1 billion within the next 12 months. | ||||||||||||||
HP is subject to income tax in the United States and approximately 80 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 state and foreign tax authorities. The IRS is conducting an audit of HP's 2009, 2010 and 2011 income tax returns. HP has received from the IRS Notices of Deficiency for its fiscal 1999, 2000, 2003, 2004 and 2005 tax years, and Revenue Agent's Reports ("RAR") for its fiscal 2001, 2002, 2006, 2007 and 2008 tax years. The proposed IRS adjustments for these tax years would, if sustained, reduce the benefits of tax refund claims HP has filed for net operating loss carrybacks to earlier fiscal years and tax credit carryforwards to subsequent years by approximately $446 million. | ||||||||||||||
HP has filed petitions with the U.S. Tax Court regarding certain proposed IRS adjustments regarding tax years 1999 through 2003 and is continuing to contest additional adjustments proposed by the IRS for other tax years. The U.S. Tax Court ruled in May 2012 against HP regarding one of the IRS adjustments. HP intends to appeal the decision. | ||||||||||||||
Tax years of HP's U.S. group of subsidiaries providing enterprise services through 2002 have been audited by the IRS, and all proposed adjustments have been resolved. RARs have been received for exam years 2003, 2004, 2005, 2006, 2007 and the short period ended August 26, 2008, proposing total tax deficiencies of $320 million. HP is contesting certain of these issues. | ||||||||||||||
The IRS began an audit in 2013 of the 2010 income tax return of HP's U.S. group of subsidiaries providing enterprise services, and has issued an RAR for the short period ended October 31, 2008 and the period ending October 31, 2009 proposing a total tax deficiency of $62 million. HP is contesting certain of these issues. | ||||||||||||||
With respect to major foreign and state tax jurisdictions, HP is no longer subject to tax authority examinations for years prior to 1999. HP is subject to a foreign tax audit concerning an intercompany transaction for fiscal 2009. The relevant taxing authority has proposed an assessment of approximately $680 million. HP is contesting this proposed assessment. | ||||||||||||||
HP believes it has provided adequate reserves for all tax deficiencies or reductions in tax benefits that could result from IRS, foreign and state tax audit matters. | ||||||||||||||
HP has not provided for U.S. federal income and foreign withholding taxes on $38.2 billion of undistributed earnings from non-U.S. operations as of October 31, 2013 because HP intends to reinvest such earnings indefinitely outside of the United States. If HP were to distribute these earnings, foreign tax credits may become available under current law to reduce the resulting U.S. income tax liability. Determination of the amount of unrecognized deferred tax liability related to these earnings is not practicable. HP will remit non-indefinitely reinvested earnings of its non-U.S. subsidiaries for which deferred U.S. federal and withholding taxes have been provided where excess cash has accumulated and it determines that it is advantageous for business operations, tax or cash management reasons. | ||||||||||||||
Deferred Income Taxes | ||||||||||||||
The significant components of deferred tax assets and deferred tax liabilities were as follows for the following fiscal years ended October 31: | ||||||||||||||
2013 | 2012 | |||||||||||||
Deferred | Deferred | Deferred | Deferred | |||||||||||
Tax Assets | Tax | Tax | Tax | |||||||||||
Liabilities | Assets | Liabilities | ||||||||||||
In millions | ||||||||||||||
Loss carryforwards | $ | 9,807 | $ | — | $ | 9,142 | $ | — | ||||||
Credit carryforwards | 4,261 | — | 3,884 | — | ||||||||||
Unremitted earnings of foreign subsidiaries | — | 7,469 | — | 7,559 | ||||||||||
Inventory valuation | 128 | 13 | 185 | 12 | ||||||||||
Intercompany transactions—profit in inventory | 125 | — | 463 | — | ||||||||||
Intercompany transactions—excluding inventory | 1,923 | — | 881 | — | ||||||||||
Fixed assets | 289 | 72 | 349 | 65 | ||||||||||
Warranty | 622 | — | 663 | — | ||||||||||
Employee and retiree benefits | 2,350 | 11 | 3,264 | 16 | ||||||||||
Accounts receivable allowance | 185 | 1 | 161 | 2 | ||||||||||
Intangible assets | 224 | 886 | 264 | 1,111 | ||||||||||
Restructuring | 340 | — | 225 | — | ||||||||||
Deferred revenue | 1,119 | 19 | 969 | 16 | ||||||||||
Other | 1,443 | 759 | 1,107 | 367 | ||||||||||
Gross deferred tax assets and liabilities | 22,816 | 9,230 | 21,557 | 9,148 | ||||||||||
Valuation allowance | (11,390 | ) | — | (10,223 | ) | — | ||||||||
Net deferred tax assets and liabilities | $ | 11,426 | $ | 9,230 | $ | 11,334 | $ | 9,148 | ||||||
Current and long-term deferred tax assets and liabilities are presented in the Consolidated Balance Sheets as follows for the following fiscal years ended October 31: | ||||||||||||||
2013 | 2012 | |||||||||||||
In millions | ||||||||||||||
Current deferred tax assets | $ | 3,893 | $ | 3,783 | ||||||||||
Current deferred tax liabilities | (375 | ) | (230 | ) | ||||||||||
Long-term deferred tax assets | 1,346 | 1,581 | ||||||||||||
Long-term deferred tax liabilities | (2,668 | ) | (2,948 | ) | ||||||||||
Net deferred tax assets net of deferred tax liabilities | $ | 2,196 | $ | 2,186 | ||||||||||
As of October 31, 2013, HP had $1.4 billion, $5.6 billion and $30.8 billion of federal, state and foreign net operating loss carryforwards, respectively. Amounts included in each of these respective totals will begin to expire in fiscal 2014. HP also has a capital loss carryforward of approximately $272 million which will expire in fiscal 2015. HP has provided a valuation allowance of $162 million for deferred tax assets related to state net operating losses, $104 million for deferred tax assets related to capital loss carryforwards and $8.9 billion for deferred tax assets related to foreign net operating loss carryforwards that HP does not expect to realize. | ||||||||||||||
As of October 31, 2012, HP had $2.9 billion, $6.2 billion and $25.7 billion of federal, state and foreign net operating loss carryforwards, respectively. HP had a capital loss carryforward of approximately $286 million at October 31, 2012. HP provided a valuation allowance of $166 million for deferred tax assets related to federal and state net operating losses, $104 million for deferred tax assets related to capital loss carryforwards and $7.6 billion for deferred tax assets related to foreign net operating loss carryforwards that HP did not expect to realize as of October 31, 2012. | ||||||||||||||
As of October 31, 2013, HP had recorded deferred tax assets for various tax credit carryforwards as follows: | ||||||||||||||
Carryforward | Valuation Allowance | Initial | ||||||||||||
Year of | ||||||||||||||
Expiration | ||||||||||||||
In millions | ||||||||||||||
U.S. foreign tax credits | $ | 3,200 | $ | 47 | 2021 | |||||||||
U.S. research and development and other credits | 653 | — | 2018 | |||||||||||
Tax credits in state and foreign jurisdictions | 408 | 239 | 2014 | |||||||||||
Balance at end of year | $ | 4,261 | $ | 286 | ||||||||||
Deferred Tax Asset Valuation Allowance | ||||||||||||||
Valuation allowance balance as of October 31, 2013, 2012 and 2011 and changes during fiscal 2013, 2012 and 2011 were as follows: | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
In millions | ||||||||||||||
Balance at beginning of year | $ | 10,223 | $ | 9,057 | $ | 8,755 | ||||||||
Charged to expenses | 1,644 | 865 | 315 | |||||||||||
Other comprehensive income, currency translation and other | (477 | ) | 301 | (13 | ) | |||||||||
Balance at end of year | $ | 11,390 | $ | 10,223 | $ | 9,057 | ||||||||
Total valuation allowances increased by $1.2 billion in fiscal 2013 associated primarily with foreign net operating losses. Total valuation allowances increased by $1.1 billion in fiscal 2012 associated primarily with the net effects of increases of $1.3 billion, $317 million, and $669 million, respectively, in valuation allowances on certain U.S. deferred tax assets related to legal entities within the enterprise services business, other U.S. deferred tax assets, and certain foreign deferred tax assets, respectively, and a $1.1 billion decrease in foreign valuation allowance attributable to foreign currency translation. | ||||||||||||||
Stockholders_Equity
Stockholders' Equity | 12 Months Ended | ||||||||||
Oct. 31, 2013 | |||||||||||
Stockholders' Equity | ' | ||||||||||
Stockholders' Equity | ' | ||||||||||
Note 14: Stockholders' Equity | |||||||||||
Dividends | |||||||||||
The stockholders of HP common stock are entitled to receive dividends when and as declared by HP's Board of Directors. Dividends are paid quarterly. Dividends declared were $0.55 per common share in fiscal 2013, $0.50 per common share in fiscal 2012 and $0.40 per common share in fiscal 2011. | |||||||||||
Share Repurchase Program | |||||||||||
HP's share repurchase program authorizes both open market and private repurchase transactions. In fiscal 2013, HP executed share repurchases of 77 million shares which were settled for $1.5 billion. In fiscal 2012, HP executed share repurchases of 67 million shares which were settled for $1.6 billion. In fiscal 2011, HP executed share repurchases of 259 million shares. Repurchases of 262 million shares were settled for $10.1 billion, which included 3 million shares repurchased in transactions that were executed in fiscal 2010 but settled in fiscal 2011. The foregoing shares repurchased and settled in fiscal 2013, fiscal 2012 and fiscal 2011 were all open market repurchase transactions. | |||||||||||
In fiscal 2013 and 2012, there was no additional authorization for future share repurchases by HP's Board of Directors. In fiscal 2011, HP's Board of Directors authorized an additional $10.0 billion for future share repurchases. As of October 31, 2013, HP had remaining authorization of approximately $7.6 billion for future share repurchases. | |||||||||||
Taxes related to Other Comprehensive Income/Loss | |||||||||||
2013 | 2012 | 2011 | |||||||||
In millions | |||||||||||
Tax (expense) benefit on change in unrealized gains/losses on available-for-sale securities: | |||||||||||
Tax (expense) benefit on unrealized gains/losses arising during the period | $ | (14 | ) | $ | 25 | $ | — | ||||
Tax expense (benefit) on gains/losses reclassified into earnings | — | — | — | ||||||||
(14 | ) | 25 | — | ||||||||
Tax benefit (expense) on change in unrealized gains/losses on cash flow hedges: | |||||||||||
Tax benefit (expense) on unrealized gains/losses arising during the period | 97 | (137 | ) | 86 | |||||||
Tax (benefit) expense on gains/losses reclassified into earnings | (49 | ) | 143 | (210 | ) | ||||||
48 | 6 | (124 | ) | ||||||||
Tax (expense) benefit on change in unrealized components of defined benefit plans: | |||||||||||
Tax (expense) benefit on net losses arising during the period | (258 | ) | 261 | 263 | |||||||
Tax (benefit) expense on amortization of actuarial loss and prior service benefit | (35 | ) | (31 | ) | (36 | ) | |||||
Tax (expense) benefit on curtailments, settlements and other | (5 | ) | (48 | ) | 2 | ||||||
(298 | ) | 182 | 229 | ||||||||
Tax benefit (expense) on change in cumulative translation adjustment | 25 | (25 | ) | (20 | ) | ||||||
Tax (expense) benefit on other comprehensive income/loss | $ | (239 | ) | $ | 188 | $ | 85 | ||||
The components of accumulated other comprehensive loss, net of taxes, were as follows for the following fiscal years ended October 31: | |||||||||||
2013 | 2012 | 2011 | |||||||||
In millions | |||||||||||
Net unrealized gain on available-for-sale securities | $ | 76 | $ | 87 | $ | 37 | |||||
Net unrealized loss on cash flow hedges | (188 | ) | (99 | ) | (41 | ) | |||||
Unrealized components of defined benefit plans | (3,084 | ) | (5,090 | ) | (3,109 | ) | |||||
Cumulative translation adjustment | (582 | ) | (457 | ) | (385 | ) | |||||
Accumulated other comprehensive loss | $ | (3,778 | ) | $ | (5,559 | ) | $ | (3,498 | ) | ||
Retirement_and_PostRetirement_
Retirement and Post-Retirement Benefit Plans | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Oct. 31, 2013 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement and Post-Retirement Benefit Plans | ' | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement and Post-Retirement Benefit Plans | ' | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note 15: Retirement and Post-Retirement Benefit Plans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
HP sponsors a number of defined benefit pension plans worldwide, of which the most significant are in the United States. Both the HP Retirement Plan (the "Retirement Plan"), a traditional defined benefit pension plan based on pay and years of service, and the HP Company Cash Account Pension Plan (the "Cash Account Pension Plan"), under which benefits are accrued pursuant to a cash accumulation account formula based upon a percentage of pay plus interest, were frozen effective January 1, 2008. The Cash Account Pension Plan and the Retirement Plan were merged in 2005 for certain funding and investment purposes. Effective October 30, 2009 the EDS U.S. qualified pension plan was also merged into the HP Pension Plan. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
HP reduces the benefit payable to a U.S. employee under the Retirement Plan for service before 1993, if any, by any amounts due to the employee under HP's frozen defined contribution Deferred Profit-Sharing Plan (the "DPSP"). HP closed the DPSP to new participants in 1993. The DPSP plan obligations are equal to the plan assets and are recognized as an offset to the Retirement Plan when HP calculates its defined benefit pension cost and obligations. The fair value of plan assets and projected benefit obligations for the U.S. defined benefit plans combined with the DPSP are as follows for the following fiscal years ended October 31: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Plan Assets | Projected | Plan Assets | Projected | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefit | Benefit | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Obligation | Obligation | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. defined benefit plans | $ | 10,866 | $ | 11,866 | $ | 11,536 | $ | 14,237 | ||||||||||||||||||||||||||||||||||||||||||||||||
DPSP | 837 | 837 | 958 | 958 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 11,703 | $ | 12,703 | $ | 12,494 | $ | 15,195 | ||||||||||||||||||||||||||||||||||||||||||||||||
Post-Retirement Benefit Plans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
HP sponsors retiree health and welfare benefit plans in the Americas, of which the most significant are in the United States. Under the HP Retiree Welfare Benefits Plan, certain pre-2003 retirees and grandfathered participants with continuous service with HP since 2002 are eligible to receive partially-subsidized medical coverage based on years of service at retirement. Former grandfathered employees of Digital Equipment Corporation also receive partially-subsidized medical benefits that are not service-based. HP's share of the premium cost is capped for all subsidized medical coverage provided under the HP Retiree Welfare Benefits Plan. HP currently leverages the employer group waiver plan process to provide HP Retiree Welfare Benefits Plan post-65 prescription drug coverage under Medicare Part D, thereby giving HP access to federal subsidies to help pay for retiree benefits. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Certain employees not grandfathered under the above programs, as well as employees hired after 2002 but before August 2008, are eligible for credits under the HP Retirement Medical Savings Account Plan (the "RMSA") upon attaining age 45. Credits offered after September 2008 are provided only in the form of matching credits on employee contributions made to a voluntary employee beneficiary association. Upon retirement, former employees may use these credits for the reimbursement of certain eligible medical expenses, including premiums required for coverage. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Contribution Plans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
HP offers various defined contribution plans for U.S. and non-U.S. employees. Total defined contribution expense was $603 million in fiscal 2013, $628 million in fiscal 2012 and $626 million in fiscal 2011. U.S. employees are automatically enrolled in the Hewlett-Packard Company 401(k) Plan (the "HP 401(k) Plan") when they meet eligibility requirements, unless they decline participation. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effective at the beginning of fiscal 2011, the quarterly employer matching contributions in the HP 401(k) Plan were set to equal 100% of an employee's contributions, up to a maximum of 4% of eligible compensation. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension and Post-Retirement Benefit Expense | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
HP's net pension and post-retirement benefit cost (credit) recognized in the Consolidated Statements of Earnings was as follows for the following fiscal years ended October 31: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Defined | Non-U.S. Defined | Post-Retirement | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefit Plans | Benefit Plans | Benefit Plans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Service cost | $ | 1 | $ | 1 | $ | 1 | $ | 337 | $ | 294 | $ | 343 | $ | 6 | $ | 7 | $ | 9 | ||||||||||||||||||||||||||||||||||||||
Interest cost | 560 | 566 | 594 | 676 | 690 | 694 | 31 | 35 | 35 | |||||||||||||||||||||||||||||||||||||||||||||||
Expected return on plan assets | (845 | ) | (793 | ) | (744 | ) | (1,007 | ) | (816 | ) | (890 | ) | (34 | ) | (38 | ) | (37 | ) | ||||||||||||||||||||||||||||||||||||||
Amortization and deferrals: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Actuarial loss (gain) | 77 | 43 | 33 | 341 | 235 | 235 | 2 | (3 | ) | 3 | ||||||||||||||||||||||||||||||||||||||||||||||
Prior service benefit | — | — | — | (27 | ) | (24 | ) | (14 | ) | (67 | ) | (79 | ) | (83 | ) | |||||||||||||||||||||||||||||||||||||||||
Net periodic benefit (credit) cost | (207 | ) | (183 | ) | (116 | ) | 320 | 379 | 368 | (62 | ) | (78 | ) | (73 | ) | |||||||||||||||||||||||||||||||||||||||||
Curtailment (gain) loss | — | — | — | (3 | ) | 4 | — | (7 | ) | (30 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||
Settlement loss (gain) | 12 | 11 | 3 | 18 | (18 | ) | 9 | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Special termination benefits | — | 833 | — | 31 | 17 | 16 | (5 | ) | 227 | — | ||||||||||||||||||||||||||||||||||||||||||||||
Net benefit (credit) cost | $ | (195 | ) | $ | 661 | $ | (113 | ) | $ | 366 | $ | 382 | $ | 393 | $ | (74 | ) | $ | 119 | $ | (73 | ) | ||||||||||||||||||||||||||||||||||
The weighted-average assumptions used to calculate net benefit (credit) cost were as follows for the following fiscal years ended October 31: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Defined | Non-U.S. Defined | Post-Retirement | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefit Plans | Benefit Plans | Benefit Plans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||||||||||||||||||||
Discount rate | 4.1 | % | 4.8 | % | 5.6 | % | 3.8 | % | 4.5 | % | 4.4 | % | 3 | % | 4.4 | % | 4.4 | % | ||||||||||||||||||||||||||||||||||||||
Expected increase in compensation levels | 2 | % | 2 | % | 2 | % | 2.4 | % | 2.5 | % | 2.5 | % | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Expected long-term return on assets | 7.8 | % | 7.6 | % | 8 | % | 7.2 | % | 6.4 | % | 6.8 | % | 9 | % | 10 | % | 10.5 | % | ||||||||||||||||||||||||||||||||||||||
Funded Status | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The funded status of the defined benefit and post-retirement benefit plans was as follows for the following fiscal years ended October 31: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Defined | Non-U.S. Defined | Post-Retirement | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefit Plans | Benefit Plans | Benefit Plans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in fair value of plan assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value—beginning of year | $ | 11,536 | $ | 10,662 | $ | 14,021 | $ | 13,180 | $ | 395 | $ | 394 | ||||||||||||||||||||||||||||||||||||||||||||
Acquisition/addition of plans | — | — | 7 | 8 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Actual return on plan assets | 629 | 1,411 | 1,842 | 1,327 | 32 | 36 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Employer contributions | 54 | 50 | 634 | 582 | 102 | 31 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Participant contributions | — | — | 63 | 57 | 72 | 59 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Benefits paid | (1,320 | ) | (556 | ) | (504 | ) | (462 | ) | (205 | ) | (125 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Settlement | (33 | ) | (31 | ) | (96 | ) | (193 | ) | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Currency impact | — | — | 116 | (478 | ) | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Fair value—end of year | 10,866 | 11,536 | 16,083 | 14,021 | 396 | 395 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Change in benefit obligation: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Projected benefit obligation—beginning of year | 14,237 | 11,945 | 18,097 | 16,328 | 1,056 | 816 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition/addition of plans | — | — | 14 | 25 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Service cost | 1 | 1 | 337 | 294 | 6 | 7 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Interest cost | 560 | 566 | 676 | 690 | 31 | 35 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Participant contributions | — | — | 63 | 57 | 72 | 59 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Actuarial (gain) loss | (1,579 | ) | 1,479 | 343 | 2,143 | (85 | ) | 34 | ||||||||||||||||||||||||||||||||||||||||||||||||
Benefits paid | (1,320 | ) | (556 | ) | (504 | ) | (462 | ) | (205 | ) | (125 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Plan amendments | — | — | 6 | (67 | ) | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Curtailment | — | — | 13 | 5 | — | 5 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Settlement | (33 | ) | (31 | ) | (100 | ) | (395 | ) | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Special termination benefits | — | 833 | 31 | 17 | (5 | ) | 227 | |||||||||||||||||||||||||||||||||||||||||||||||||
Currency impact | — | — | 176 | (538 | ) | (3 | ) | (2 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
Projected benefit obligation—end of year | 11,866 | 14,237 | 19,152 | 18,097 | 867 | 1,056 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Funded status at end of year | $ | (1,000 | ) | $ | (2,701 | ) | $ | (3,069 | ) | $ | (4,076 | ) | $ | (471 | ) | $ | (661 | ) | ||||||||||||||||||||||||||||||||||||||
Accumulated benefit obligation | $ | 11,865 | $ | 14,236 | $ | 18,254 | $ | 17,070 | ||||||||||||||||||||||||||||||||||||||||||||||||
The weighted-average assumptions used to calculate the projected benefit obligations were as follows for the fiscal years ended October 31, 2013 and 2012: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Defined | Non-U.S. Defined | Post-Retirement | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefit Plans | Benefit Plans | Benefit Plans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Discount rate | 4.9 | % | 4.1 | % | 3.9 | % | 3.8 | % | 3.9 | % | 3 | % | ||||||||||||||||||||||||||||||||||||||||||||
Expected increase in compensation levels | 2 | % | 2 | % | 2.4 | % | 2.4 | % | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
The net amounts recognized for HP's defined benefit and post-retirement benefit plans in HP's Consolidated Balance Sheets as of October 31, 2013 and October 31, 2012 were as follows: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Defined | Non-U.S. Defined | Post-Retirement | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefit Plans | Benefit Plans | Benefit Plans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncurrent assets | $ | — | $ | — | $ | 479 | $ | 260 | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||||||||||
Current liabilities | (33 | ) | (33 | ) | (46 | ) | (39 | ) | (109 | ) | (124 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Noncurrent liabilities | (967 | ) | (2,668 | ) | (3,502 | ) | (4,297 | ) | (362 | ) | (537 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Funded status at end of year | $ | (1,000 | ) | $ | (2,701 | ) | $ | (3,069 | ) | $ | (4,076 | ) | $ | (471 | ) | $ | (661 | ) | ||||||||||||||||||||||||||||||||||||||
The following table summarizes the pretax net actuarial loss (gain) and prior service benefit recognized in accumulated other comprehensive loss for the defined benefit and post-retirement benefit plans as of October 31, 2013. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Defined | Non-U.S. Defined | Post-Retirement | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefit Plans | Benefit Plans | Benefit Plans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net actuarial loss (gain) | $ | 377 | $ | 4,220 | $ | (96 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||
Prior service benefit | — | (231 | ) | (161 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Total recognized in accumulated other comprehensive loss | $ | 377 | $ | 3,989 | $ | (257 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||
The following table summarizes the net actuarial loss (gain) and prior service benefit that are expected to be amortized from accumulated other comprehensive loss (income) and recognized as components of net periodic benefit cost (credit) during the next fiscal year. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Defined | Non-U.S. Defined | Post-Retirement | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefit Plans | Benefit Plans | Benefit Plans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net actuarial loss (gain) | $ | 16 | $ | 311 | $ | (10 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||
Prior service benefit | — | (24 | ) | (41 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Total expected to be recognized in net periodic benefit cost (credit) | $ | 16 | $ | 287 | $ | (51 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||
Defined benefit plans with projected benefit obligations exceeding the fair value of plan assets were as follows: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Defined | Non-U.S. Defined | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefit Plans | Benefit Plans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Aggregate fair value of plan assets | $ | 10,866 | $ | 11,536 | $ | 10,462 | $ | 10,283 | ||||||||||||||||||||||||||||||||||||||||||||||||
Aggregate projected benefit obligation | $ | 11,866 | $ | 14,237 | $ | 14,010 | $ | 14,618 | ||||||||||||||||||||||||||||||||||||||||||||||||
Defined benefit plans with accumulated benefit obligations exceeding the fair value of plan assets were as follows: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Defined | Non-U.S. Defined | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefit Plans | Benefit Plans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Aggregate fair value of plan assets | $ | 10,866 | $ | 11,536 | $ | 9,926 | $ | 10,193 | ||||||||||||||||||||||||||||||||||||||||||||||||
Aggregate accumulated benefit obligation | $ | 11,865 | $ | 14,236 | $ | 12,703 | $ | 13,645 | ||||||||||||||||||||||||||||||||||||||||||||||||
Settlements | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
During the first quarter of fiscal 2012, HP completed the transfer of the substitutional portion of its Japan pension obligation to the Japanese government. This transfer resulted in recognizing a net gain of $28 million, which is comprised of a net settlement loss of $150 million and a gain on government subsidy of $178 million. The government subsidy consisted of the elimination of $344 million of pension obligations and the transfer of $166 million of pension assets to the Japanese government. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Incentive Program | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
As part of the 2012 restructuring plan, the company announced a voluntary enhanced early retirement program for its U.S employees. Participation in the EER program was limited to those employees whose combined age and years of service equaled 65 or more. Approximately 8,500 employees elected to participate in the EER program and left the company on dates designated by the company with the majority of the EER participants having left the company on August 31, 2012 and others exiting through August 31, 2013. The HP Pension Plan was amended to provide for an EER benefit from the plan for electing EER participants who were current participants in the plan. The retirement incentive benefit was calculated as a lump sum and ranged between five and fourteen months of pay depending on years of service at the time of retirement under the program. As a result of this retirement incentive, HP recognized a special termination benefit ("STB") of $833 million, which reflected the present value of all additional benefits that HP would distribute from the HP Pension Plan. HP recorded these expenses as a restructuring charge. In addition, the HP Pension Plan was remeasured on June 30, 2012, which resulted in no material change to the 2012 net periodic benefit cost or funded status. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
HP extended to all employees participating in the EER program the opportunity to continue health care coverage at active employee contribution rates for up to 24 months following retirement. In addition, for employees not grandfathered into certain employer-subsidized retiree medical plans, HP provided up to $12,000 in employer credits under the RMSA. These items resulted in an additional STB expense of $227 million, which was offset by net curtailment gains of $37 million, due primarily to the resulting accelerated recognition of existing prior service cost/credits. The entire STB and approximately $30 million in curtailment gains were recognized in the second half of fiscal 2012. HP reported this net expense as a restructuring charge. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Plan Assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The table below sets forth the fair value of plan assets as of October 31, 2013 by asset category within the fair value hierarchy. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Defined Benefit Plans | Non-U.S. Defined Benefit Plans | Post-Retirement Benefit Plans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset Category: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity securities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. | $ | 1,711 | $ | — | $ | — | $ | 1,711 | $ | 2,456 | $ | 31 | $ | — | $ | 2,487 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||||||||||||
Non-U.S. | 1,274 | — | — | 1,274 | 4,059 | 670 | 77 | 4,806 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Debt securities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate | — | 3,028 | — | 3,028 | — | 3,347 | — | 3,347 | — | 17 | — | 17 | ||||||||||||||||||||||||||||||||||||||||||||
Government(1) | — | 1,849 | — | 1,849 | — | 1,751 | — | 1,751 | 5 | 17 | — | 22 | ||||||||||||||||||||||||||||||||||||||||||||
Alternative Investments | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Private Equity(2) | — | — | 1,250 | 1,250 | — | 2 | 48 | 50 | — | — | 234 | 234 | ||||||||||||||||||||||||||||||||||||||||||||
Hybrids(3) | — | — | 2 | 2 | 1,223 | — | 1,223 | — | — | 1 | 1 | |||||||||||||||||||||||||||||||||||||||||||||
Hedge Funds(4) | — | — | 113 | 113 | — | 226 | 204 | 430 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Real Estate Funds | — | — | — | — | 470 | 237 | 325 | 1,032 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Insurance Group Annuity Contracts | — | — | — | — | — | 50 | 81 | 131 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Common Collective Trusts and 103-12 Investment Entities(5) | — | 1,233 | — | 1,233 | — | — | — | — | — | 42 | — | 42 | ||||||||||||||||||||||||||||||||||||||||||||
Registered Investment Companies ("RICs")(6) | 61 | 329 | — | 390 | — | — | — | — | 79 | — | — | 79 | ||||||||||||||||||||||||||||||||||||||||||||
Cash and Cash Equivalents(7) | 11 | 62 | — | 73 | 648 | 4 | — | 652 | — | 3 | — | 3 | ||||||||||||||||||||||||||||||||||||||||||||
Other(8) | (37 | ) | (20 | ) | — | (57 | ) | 110 | 62 | 2 | 174 | (2 | ) | — | — | (2 | ) | |||||||||||||||||||||||||||||||||||||||
Total | $ | 3,020 | $ | 6,481 | $ | 1,365 | $ | 10,866 | $ | 7,743 | $ | 7,603 | $ | 737 | $ | 16,083 | $ | 82 | $ | 79 | $ | 235 | $ | 396 | ||||||||||||||||||||||||||||||||
-1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Includes debt issued by national, state and local governments and agencies. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
-2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Includes limited partnerships and venture capital partnerships as well as equity / buyout funds, venture capital, real estate and other similar funds that invest in the United States and internationally where foreign currencies are hedged. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
-3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Includes a fund that invests in both private and public equities primarily in the United States and the United Kingdom, as well as emerging markets across all sectors. The fund also holds fixed income and derivative instruments to hedge interest rate and inflation risk. In addition, the fund includes units in transferable securities, collective investment schemes, money market funds, cash and deposits. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
-4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Includes those that invest both long and short primarily in common stocks and credit, relative value, event driven equity, distressed debt and macro strategies. Management of the hedge funds has the ability to shift investments from value to growth strategies, from small to large capitalization stocks and bonds, and from a net long position to a net short position. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
-5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Department of Labor 103-12 IE (Investment Entity) designation is for plan assets held by two or more unrelated employee benefit plans which includes limited partnerships and venture capital partnerships. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
-6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Includes publicly and privately traded RICs. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
-7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Includes cash and cash equivalents such as short-term marketable securities. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
-8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Includes international insured contracts, derivative instruments and unsettled transactions. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in fair value measurements of Level 3 investments during the year ended October 31, 2013, were as follows: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Defined | Non-U.S. Defined Benefit Plans | Post-Retirement Benefit Plans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefit Plans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Alternative | Equity | Alternative | Alternative | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities | Investments | Investments | Investments | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate | Private | Hybrids | Hedge | Total | Non U.S. | Private | Hedge | Real | Insurance | Other | Total | Private | Hybrids | Total | ||||||||||||||||||||||||||||||||||||||||||
Debt | Equity | Funds | Equities | Equity | Funds | Estate | Group | Equity | ||||||||||||||||||||||||||||||||||||||||||||||||
Annuities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance at October 31, 2012 | $ | 1 | $ | 1,300 | $ | 2 | $ | 65 | $ | 1,368 | $ | 76 | $ | 21 | $ | 233 | $ | 194 | $ | 88 | $ | 2 | $ | 614 | $ | 235 | $ | 1 | $ | 236 | ||||||||||||||||||||||||||
Actual return on plan assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Relating to assets still held at the reporting date | — | (9 | ) | — | 13 | 4 | 1 | 8 | — | 16 | (5 | ) | — | 20 | 5 | — | 5 | |||||||||||||||||||||||||||||||||||||||
Relating to assets sold during the period | — | 143 | — | — | 143 | — | — | 11 | — | — | — | 11 | 21 | — | 21 | |||||||||||||||||||||||||||||||||||||||||
Purchases, sales, and settlements (net) | — | (184 | ) | — | 35 | (149 | ) | — | 19 | (40 | ) | 115 | (2 | ) | — | 92 | (27 | ) | — | (27 | ) | |||||||||||||||||||||||||||||||||||
Transfers in and/or out of Level 3 | (1 | ) | — | — | — | (1 | ) | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Ending balance at October 31, 2013 | $ | — | $ | 1,250 | $ | 2 | $ | 113 | $ | 1,365 | $ | 77 | $ | 48 | $ | 204 | $ | 325 | $ | 81 | $ | 2 | $ | 737 | $ | 234 | $ | 1 | $ | 235 | ||||||||||||||||||||||||||
The table below sets forth the fair value of our plan assets as of October 31, 2012 by asset category within the fair value hierarchy. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Defined Benefit Plans | Non-U.S. Defined Benefit Plans | Post-Retirement Benefit Plans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset Category: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity securities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. | $ | 1,150 | $ | — | $ | — | $ | 1,150 | $ | 1,621 | $ | 28 | $ | — | $ | 1,649 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||||||||||||
Non-U.S. | 866 | — | — | 866 | 4,049 | 50 | 76 | 4,175 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Debt securities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate | — | 3,442 | 1 | 3,443 | — | 2,878 | — | 2,878 | — | 17 | — | 17 | ||||||||||||||||||||||||||||||||||||||||||||
Government(1) | — | 3,037 | — | 3,037 | — | 1,653 | — | 1,653 | 6 | 16 | — | 22 | ||||||||||||||||||||||||||||||||||||||||||||
Alternative Investments | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Private Equity(2) | 3 | — | 1,300 | 1,303 | 2 | — | 21 | 23 | — | — | 235 | 235 | ||||||||||||||||||||||||||||||||||||||||||||
Hybrids(3) | — | — | 2 | 2 | — | 1,089 | — | 1,089 | — | — | 1 | 1 | ||||||||||||||||||||||||||||||||||||||||||||
Hedge Funds(4) | — | — | 65 | 65 | — | 296 | 233 | 529 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Real Estate Funds | — | — | — | — | 449 | 177 | 194 | 820 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Insurance Group Annuity Contracts | — | — | — | — | — | 60 | 88 | 148 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Common Collective Trusts and 103-12 Investment Entities(5) | — | 1,546 | — | 1,546 | — | — | — | — | — | 49 | — | 49 | ||||||||||||||||||||||||||||||||||||||||||||
Registered Investment Companies ("RICs")(6) | 119 | 342 | — | 461 | — | — | — | — | 73 | — | — | 73 | ||||||||||||||||||||||||||||||||||||||||||||
Cash and Cash Equivalents(7) | (66 | ) | 108 | — | 42 | 439 | 5 | — | 444 | — | 2 | — | 2 | |||||||||||||||||||||||||||||||||||||||||||
Other(8) | (245 | ) | (134 | ) | — | (379 | ) | 575 | 36 | 2 | 613 | (4 | ) | — | — | (4 | ) | |||||||||||||||||||||||||||||||||||||||
Total | $ | 1,827 | $ | 8,341 | $ | 1,368 | $ | 11,536 | $ | 7,135 | $ | 6,272 | $ | 614 | $ | 14,021 | $ | 75 | $ | 84 | $ | 236 | $ | 395 | ||||||||||||||||||||||||||||||||
-1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Includes debt issued by national, state and local governments and agencies. Certain U.S. treasury debt securities in the aggregate of $1.6 billion have been reclassified from level 1 to level 2 based upon further analysis of the investments. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
-2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Includes limited partnerships and venture capital partnerships as well as equity / buyout funds, venture capital, real estate and other similar funds that invest in the United States and internationally where foreign currencies are hedged. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
-3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Includes a fund that invests in both private and public equities primarily in the United States and the United Kingdom, as well as emerging markets across all sectors. The fund also holds fixed income and derivative instruments to hedge interest rate and inflation risk. In addition, the fund includes units in transferable securities, collective investment schemes, money market funds, cash and deposits. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
-4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Includes those that invest both long and short primarily in common stocks and credit, relative value, event driven equity, distressed debt and macro strategies. Management of the hedge funds has the ability to shift investments from value to growth strategies, from small to large capitalization stocks and bonds, and from a net long position to a net short position. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
-5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Department of Labor 103-12 IE (Investment Entity) designation is for plan assets held by two or more unrelated employee benefit plans which includes limited partnerships and venture capital partnerships. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
-6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Includes publicly and privately traded RICs. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
-7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Includes cash and cash equivalents such as short-term marketable securities. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
-8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Includes international insured contracts, derivative instruments and unsettled transactions. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in fair value measurements of Level 3 investments during the year ended October 31, 2012, were as follows: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Defined Benefit Plans | Non-U.S. Defined Benefit Plans | Post-Retirement Benefit Plans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Securities | Alternative Investments | Equity | Debt Securities | Alternative Investments | Alternative Investments | |||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate | Private | Hybrids | Hedge | Total | U.S. | Non U.S. | Corporate | Private | Hedge | Real | Insurance | Cash | Other | Total | Private | Hybrids | Total | |||||||||||||||||||||||||||||||||||||||
Debt | Equity | Funds | Equities | Equities | Debt | Equity | Funds | Estate | Group | Equity | ||||||||||||||||||||||||||||||||||||||||||||||
Annuities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance at October 31, 2011 | $ | — | $ | 1,356 | $ | 4 | $ | — | $ | 1,360 | $ | 30 | $ | — | $ | 3 | $ | 20 | $ | 300 | $ | 199 | $ | 89 | $ | (4 | ) | $ | 19 | $ | 656 | $ | 227 | $ | 1 | $ | 228 | |||||||||||||||||||
Actual return on plan assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Relating to assets still held at the reporting date | — | (67 | ) | (1 | ) | — | (68 | ) | (2 | ) | — | (1 | ) | (1 | ) | (76 | ) | (5 | ) | 1 | — | (1 | ) | (85 | ) | 13 | — | 13 | ||||||||||||||||||||||||||||
Relating to assets sold during the period | — | 103 | 1 | — | 104 | — | — | — | — | — | — | — | — | — | — | 3 | — | 3 | ||||||||||||||||||||||||||||||||||||||
Purchases, sales, and settlements (net) | 1 | (92 | ) | (2 | ) | 65 | (28 | ) | — | — | (2 | ) | 16 | — | 43 | (2 | ) | — | — | 55 | (8 | ) | — | (8 | ) | |||||||||||||||||||||||||||||||
Transfers in and/or out of Level 3 | — | — | — | — | — | (28 | ) | 76 | — | (14 | ) | 9 | (43 | ) | — | 4 | (16 | ) | (12 | ) | — | — | — | |||||||||||||||||||||||||||||||||
Ending balance at October 31, 2012 | $ | 1 | $ | 1,300 | $ | 2 | $ | 65 | $ | 1,368 | $ | — | $ | 76 | $ | — | $ | 21 | $ | 233 | $ | 194 | $ | 88 | $ | — | $ | 2 | $ | 614 | $ | 235 | $ | 1 | $ | 236 | ||||||||||||||||||||
The following is a description of the valuation methodologies used for plan assets measured at fair value. There have been no changes in the methodologies used during the reporting period. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments in publicly-traded equity securities are valued using the closing price on the measurement date as reported on the stock exchange on which the individual securities are traded. For corporate, government and asset-backed debt securities, fair value is based upon observable inputs of comparable market transactions. For corporate and government debt securities traded on active exchanges, fair value is based upon observable quoted prices. The valuation of alternative investments, such as limited partnerships and joint ventures, may require significant management judgment. For alternative investments, valuation is based on net asset value ("NAV") as reported by the asset manager and is adjusted when management determines that NAV is not representative of fair value. In making such an assessment, a variety of factors are reviewed by management, including, but not limited to, the timeliness of NAV as reported by the asset manager and changes in general economic and market conditions subsequent to the last NAV reported by the asset manager. Depending on the amount of management judgment, the lack of near-term liquidity, and the absence of quoted market prices, these assets are classified in Level 2 or Level 3 of the fair value hierarchy. Further, depending on how quickly HP can redeem its hedge fund investments, and the extent of any adjustments to NAV, hedge funds are classified within either Level 2 or Level 3 of the fair value hierarchy. Common collective trusts, interest in 103-12 entities and registered investment companies are valued at NAV. The valuation for some of these assets requires judgment due to the absence of quoted market prices, and these assets are generally classified in Level 2 of the fair value hierarchy. Cash and cash equivalents includes money market funds, which are valued based on NAV. Other assets were classified in the fair value hierarchy based on the lowest level input (e.g., quoted prices and observable inputs) that is significant to the fair value measure in its entirety. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Plan Asset Allocations | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The weighted-average target and actual asset allocations across the benefit plans at the respective measurement dates were as follows: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U. S. Defined | Non-U.S. Defined | Post-Retirement | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefit Plans | Benefit Plans | Benefit Plans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Plan Assets | Plan Assets | Plan Assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2013 | 2013 | 2013 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Target | Target | Target | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset Category | Allocation | 2013 | 2012 | Allocation | 2013 | 2012 | Allocation | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||||||||||||
Public equity securities | 37.2 | % | 23.7 | % | 48 | % | 41.5 | % | 9.5 | % | 8.6 | % | ||||||||||||||||||||||||||||||||||||||||||||
Private/other equity securities | 12.6 | % | 11.9 | % | 7.9 | % | 11.7 | % | 59.2 | % | 59.6 | % | ||||||||||||||||||||||||||||||||||||||||||||
Real estate and other | (0.5 | )% | (3.3 | )% | 7.5 | % | 10.2 | % | (0.1 | )% | (0.9 | )% | ||||||||||||||||||||||||||||||||||||||||||||
Equity related investments | 55 | % | 49.3 | % | 32.3 | % | 64 | % | 63.4 | % | 63.4 | % | 68 | % | 68.6 | % | 67.3 | % | ||||||||||||||||||||||||||||||||||||||
Debt securities | 45 | % | 48.2 | % | 61.5 | % | 35.2 | % | 32.5 | % | 33.4 | % | 28 | % | 29 | % | 27.9 | % | ||||||||||||||||||||||||||||||||||||||
Cash | — | 2.5 | % | 6.2 | % | 0.8 | % | 4.1 | % | 3.2 | % | 4 | % | 2.4 | % | 4.8 | % | |||||||||||||||||||||||||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||||||||||||||||||||||||||||||||
Investment Policy | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
HP's investment strategy is to seek a competitive rate of return relative to an appropriate level of risk depending on the funded status of each plan. The majority of the plans' investment managers employ active investment management strategies with the goal of outperforming the broad markets in which they invest. Risk management practices include diversification across asset classes and investment styles and periodic rebalancing toward asset allocation targets. A number of the plans' investment managers are authorized to utilize derivatives for investment or liability exposures, and HP may utilize derivatives to effect asset allocation changes or to hedge certain investment or liability exposures. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The target asset allocation selected for each U.S. plan reflects a risk/return profile HP believes is appropriate relative to each plan's liability structure and return goals. HP conducts periodic asset-liability studies for U.S. plans in order to model various potential asset allocations in comparison to each plan's forecasted liabilities and liquidity needs. HP invests a portion of the U.S. defined benefit plan assets and post-retirement benefit plan assets in private market securities such as private equity funds to provide diversification and a higher expected return on assets. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Outside the United States, asset allocation decisions are typically made by an independent board of trustees for the specific plan. As in the U.S., investment objectives are designed to generate returns that will enable the plan to meet its future obligations. In some countries, local regulations may restrict asset allocations, typically leading to a higher percentage of investment in fixed income securities than would otherwise be deployed. HP reviews the investment strategy and provides a recommended list of investment managers for each country plan, with final decisions on asset allocation and investment managers made by the board of trustees for the specific plan. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis for Expected Long-Term Rate of Return on Plan Assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The expected long-term rate of return on plan assets reflects the expected returns for each major asset class in which the plan invests and the weight of each asset class in the target mix. Expected asset returns reflect the current yield on government bonds, risk premiums for each asset class, and expected real returns which considers each country's specific inflation outlook. Because HP's investment policy is to employ primarily active investment managers who seek to outperform the broader market, the expected returns are adjusted to reflect the expected additional returns net of fees. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Future Contributions and Funding Policy | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
In fiscal 2014, HP expects to contribute approximately $617 million to its non-U.S. pension plans and approximately $33 million to cover benefit payments to U.S. non-qualified plan participants. HP expects to pay approximately $109 million to cover benefit claims for HP's post-retirement benefit plans. HP's funding policy is to fund its pension plans so that it meets at least the minimum contribution requirements, as established by local government, funding and taxing authorities. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Estimated Future Benefits Payable | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
HP estimates that the future benefits payable for the retirement and post-retirement plans were as follows at October 31, 2013: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Defined | Non-U.S. | Post-Retirement | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefit Plans | Defined | Benefit Plans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefit Plans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fiscal year ending October 31 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2014 | $ | 694 | $ | 549 | $ | 146 | ||||||||||||||||||||||||||||||||||||||||||||||||||
2015 | $ | 553 | $ | 538 | $ | 76 | (1) | |||||||||||||||||||||||||||||||||||||||||||||||||
2016 | $ | 573 | $ | 546 | $ | 70 | ||||||||||||||||||||||||||||||||||||||||||||||||||
2017 | $ | 610 | $ | 596 | $ | 67 | ||||||||||||||||||||||||||||||||||||||||||||||||||
2018 | $ | 653 | $ | 636 | $ | 65 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Next five fiscal years to October 31, 2023 | $ | 3,681 | $ | 3,960 | $ | 286 | ||||||||||||||||||||||||||||||||||||||||||||||||||
-1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Decrease in future benefits payable due to the winding down of the 2012 EER program. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments
Commitments | 12 Months Ended | ||||||||||||||||||||||
Oct. 31, 2013 | |||||||||||||||||||||||
Commitments | ' | ||||||||||||||||||||||
Commitments | ' | ||||||||||||||||||||||
Note 16: Commitments | |||||||||||||||||||||||
Lease Commitments | |||||||||||||||||||||||
HP leases certain real and personal property under non-cancelable operating leases. Certain leases require HP to pay property taxes, insurance and routine maintenance and include renewal options and escalation clauses. Rent expense was $1.0 billion in fiscal 2013, 2012 and 2011. Sublease rental income was $30 million in fiscal 2013, $37 million in fiscal 2012 and $38 million in fiscal 2011. | |||||||||||||||||||||||
Property under capital lease comprised primarily of equipment and furniture, which was $437 million and $482 million as of October 31, 2013 and October 31, 2012, respectively, and was included in property, plant and equipment in the Consolidated Balance Sheets. Accumulated depreciation on the property under capital lease was $404 million and $418 million as of October 31, 2013 and October 31, 2012, respectively. The related depreciation is included in depreciation expense. | |||||||||||||||||||||||
Future annual lease commitments and sublease rental income as of October 31, 2013 were as follows: | |||||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | Total | |||||||||||||||||
In millions | |||||||||||||||||||||||
Operating lease commitments | $ | 763 | $ | 605 | $ | 435 | $ | 275 | $ | 180 | $ | 735 | $ | 2,993 | |||||||||
Less: Sublease rental income | (35 | ) | (24 | ) | (12 | ) | (5 | ) | (5 | ) | (12 | ) | (93 | ) | |||||||||
$ | 728 | $ | 581 | $ | 423 | $ | 270 | $ | 175 | $ | 723 | $ | 2,900 | ||||||||||
Capital lease commitments | $ | 229 | $ | 20 | $ | 7 | $ | 4 | $ | 4 | $ | 25 | $ | 289 | |||||||||
Less: Interest payments | (5 | ) | (3 | ) | (2 | ) | (2 | ) | (2 | ) | (6 | ) | (20 | ) | |||||||||
$ | 224 | $ | 17 | $ | 5 | $ | 2 | $ | 2 | $ | 19 | $ | 269 | ||||||||||
Unconditional Purchase Obligations | |||||||||||||||||||||||
At October 31, 2013, HP had unconditional purchase obligations of approximately $2.2 billion. These unconditional purchase obligations include agreements to purchase goods or services that are enforceable and legally binding on HP and that specify all significant terms, including fixed or minimum quantities to be purchased, fixed, minimum or variable price provisions and the approximate timing of the transaction. Unconditional purchase obligations exclude agreements that are cancelable without penalty. These unconditional purchase obligations are related principally to inventory and other items. Future unconditional purchase obligations at October 31, 2013 were as follows: | |||||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | Total | |||||||||||||||||
In millions | |||||||||||||||||||||||
Unconditional purchase obligations | $ | 1,191 | $ | 510 | $ | 196 | $ | 141 | $ | 128 | $ | — | $ | 2,166 |
Litigation_and_Contingencies
Litigation and Contingencies | 12 Months Ended |
Oct. 31, 2013 | |
Litigation and Contingencies | ' |
Litigation and Contingencies | ' |
Note 17: Litigation and Contingencies | |
HP is involved in lawsuits, claims, investigations and proceedings, including those identified below, consisting of intellectual property, commercial, securities, employment, employee benefits and environmental matters that arise in the ordinary course of business. HP accrues a liability when management believes that it is both probable that a liability has been incurred and the amount of loss can be reasonably estimated. HP believes it has recorded adequate provisions for any such matters, and, as of October 31, 2013, it was not reasonably possible that an additional material loss had been incurred in an amount in excess of the amounts already 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. 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 that 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. As described below, proceedings are ongoing or have been concluded involving HP in certain European Union ("EU") member countries, including litigation in Germany, Belgium and Austria, seeking to impose or modify levies upon equipment (such as multifunction devices ("MFDs"), personal computers ("PCs") and printers) and alleging that these devices enable producing private copies of copyrighted materials. Descriptions of some of the ongoing proceedings are included below. The levies are generally based upon the number of products sold and the per-product amounts of the levies, which vary. Some EU member countries that do not yet have levies on digital devices are expected to implement similar legislation to enable them to extend existing levy schemes, while some other EU member countries have phased out levies or are expected to limit the scope of levy schemes and applicability in the digital hardware environment, particularly with respect to sales to business users. HP, other companies and various industry associations have opposed the extension of levies to the digital environment and have advocated alternative models of compensation to rights holders. | |
VerwertungsGesellschaft Wort ("VG Wort"), a collection agency representing certain copyright holders, instituted legal proceedings against HP in the Stuttgart Civil Court seeking to impose levies on printers. On December 22, 2004, the court held that HP is liable for payments regarding all printers using ASCII code sold in Germany but did not determine the amount payable per unit. HP appealed this decision in January 2005 to the Stuttgart Court of Appeals. On May 11, 2005, the Stuttgart Court of Appeals issued a decision confirming that levies are due. On June 6, 2005, HP filed an appeal to the German Federal Supreme Court in Karlsruhe. On December 6, 2007, the German Federal Supreme Court issued a judgment that printers are not subject to levies under existing law. VG Wort appealed the decision by filing a claim with the German Federal Constitutional Court challenging the ruling that printers are not subject to levies. On September 21, 2010, the Constitutional Court published a decision holding that the German Federal Supreme Court erred by not referring questions on interpretation of German copyright law to the Court of Justice of the European Union ("CJEU") and therefore revoked the German Federal Supreme Court decision and remitted the matter to it. On July 21, 2011, the German Federal Supreme Court stayed the proceedings and referred several questions to the CJEU with regard to the interpretation of the European Copyright Directive. On June 27, 2013, the CJEU issued its decision responding to those questions. The German Federal Supreme Court subsequently scheduled a joint hearing on this matter with other cases relating to reprographic levies on printers and PCs that was held on October 31, 2013, and is expected to be followed by a decision in January 2014. | |
In September 2003, VG Wort filed a lawsuit against Fujitsu Technology Solutions GmbH ("Fujitsu") in the Munich Civil Court in Munich, Germany seeking to impose levies on PCs. This is an industry test case in Germany, and HP has agreed not to object to the delay if VG Wort sues HP for such levies on PCs following a final decision against Fujitsu. On December 23, 2004, the Munich Civil Court held that PCs are subject to a levy and that Fujitsu must pay €12 plus compound interest for each PC sold in Germany since March 2001. Fujitsu appealed this decision in January 2005 to the Munich Court of Appeals. On December 15, 2005, the Munich Court of Appeals affirmed the Munich Civil Court decision. Fujitsu filed an appeal with the German Federal Supreme Court in February 2006. On October 2, 2008, the German Federal Supreme Court issued a judgment that PCs were not photocopiers within the meaning of the German copyright law that was in effect until December 31, 2007 and, therefore, were not subject to the levies on photocopiers established by that law. VG Wort subsequently filed a claim with the German Federal Constitutional Court challenging that ruling. In January 2011, the Constitutional Court published a decision holding that the German Federal Supreme Court decision was inconsistent with the German Constitution and revoking the German Federal Supreme Court decision. The Constitutional Court also remitted the matter to the German Federal Supreme Court for further action. On July 21, 2011, the German Federal Supreme Court stayed the proceedings and referred several questions to the CJEU with regard to the interpretation of the European Copyright Directive. On June 27, 2013, the CJEU issued its decision responding to those questions. The German Federal Supreme Court subsequently scheduled a joint hearing on that matter with other cases relating to reprographic levies on printers that was held on October 31, 2013, and is expected to be followed by a decision in January 2014. | |
Reprobel, a cooperative society with the authority to collect and distribute the remuneration for reprography to Belgian copyright holders, requested by extra-judicial means that HP amend certain copyright levy declarations submitted for inkjet MFDs sold in Belgium from January 2005 to December 2009 to enable it to collect copyright levies calculated based on the generally higher copying speed when the MFDs are operated in draft print mode rather than when operated in normal print mode. In March 2010, HP filed a lawsuit against Reprobel in the French-speaking chambers of the Court of First Instance of Brussels seeking a declaratory judgment that no copyright levies are payable on sales of MFDs in Belgium or, alternatively, that copyright levies payable on such MFDs must be assessed based on the copying speed when operated in the normal print mode set by default in the device. On November 16, 2012, the court issued a decision holding that Belgium law is not in conformity with EU law in a number of respects and ordered that, by November 2013, Reprobel substantiate that the amounts claimed by Reprobel are commensurate with the harm resulting from legitimate copying under the reprographic exception. HP subsequently appealed that court decision to the Courts of Appeal in Brussels seeking to confirm that the Belgian law is not in conformity with EU law and that, if Belgian law is interpreted in a manner consistent with EU law, no payments by HP are required or, alternatively, the payments already made by HP are sufficient to comply with its obligations under Belgian law. On October 23, 2013, the Court of Appeal in Brussels stayed the proceedings and referred several questions to the CJEU relating to whether the Belgian reprographic copyright levies system is in conformity with EU law. | |
Based on industry opposition to the extension of levies to digital products, HP's assessments of the merits of various proceedings and HP's estimates of the number of units impacted and the amounts of the levies, HP has accrued amounts that it believes are adequate to address the matters described above. However, the ultimate resolution of these matters and the associated financial impact on HP, including the number of units impacted and the amount of levies imposed, remains uncertain. | |
Fair Labor Standards Act Litigation. HP is involved in several lawsuits in which the plaintiffs are seeking unpaid overtime compensation and other damages based on allegations that various employees of EDS or HP have been misclassified as exempt employees under the Fair Labor Standards Act and/or in violation of the California Labor Code or other state laws. Those matters include the following: | |
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Cunningham and Cunningham, et al. v. Electronic Data Systems Corporation is a purported collective action filed on May 10, 2006 in the United States District Court for the Southern District of New York claiming that current and former EDS employees allegedly involved in installing and/or maintaining computer software and hardware were misclassified as exempt employees. Another purported collective action, Steavens, et al. v. Electronic Data Systems Corporation, which was filed on October 23, 2007, is also now pending in the same court alleging similar facts. The Steavens case has been consolidated for pretrial purposes with the Cunningham case. On December 14, 2010, the court granted conditional certification of a class consisting of employees in 20 legacy EDS job codes in the consolidated Cunningham and Steavens matter. Approximately 2,600 current and former EDS employees have filed consents to opt in to the litigation. Plaintiffs had alleged separate "opt-out" classes based on the overtime laws of the states of California, Washington, Massachusetts and New York, but plaintiffs have dismissed those claims. | |
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Salva v. Hewlett-Packard Company is a purported collective action filed on June 15, 2012 in the United States District Court for the Western District of New York alleging that certain information technology employees allegedly involved in installing and/or maintaining computer software and hardware were misclassified as exempt employees under the Fair Labor Standards Act. On August 31, 2012, HP filed its answer to plaintiffs' complaint and filed counterclaims against two of the three named plaintiffs. Also on August 31, 2012, HP filed a motion to transfer venue to the United States District Court for the Eastern District of Texas. A hearing on HP's motion to transfer venue was scheduled for November 21, 2012, but was postponed by the court. | |
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Karlbom, et al. v. Electronic Data Systems Corporation is a class action filed on March 16, 2009 in California Superior Court alleging facts similar to the Cunningham and Steavens matters. In March 2010, the court stayed the matter; that stay was lifted in October 2012. | |
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Blake, et al. v. Hewlett-Packard Company is a purported nationwide collective action filed on February 17, 2011 in the United States District Court for the Southern District of Texas claiming that a class of information technology support personnel were misclassified as exempt employees under the Fair Labor Standards Act. On February 10, 2012, plaintiffs filed a motion requesting that the court conditionally certify the case as a collective action. On July 11, 2013, the court denied plaintiffs' motion for conditional certification in its entirety. Only one opt-in plaintiff had joined the named plaintiff in the lawsuit at the time that the motion was filed. | |
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Benedict v. Hewlett-Packard Company is a purported collective action filed on January 10, 2013 in the United States District Court for the Northern District of California alleging that certain technical support employees allegedly involved in installing, maintaining and/or supporting computer software and/or hardware for HP were misclassified as exempt employees under the Fair Labor Standards Act. The plaintiff has also alleged that HP violated California law by, among other things, allegedly improperly classifying these employees as exempt. On September 20, 2013, the plaintiffs filed a motion for conditional class certification. | |
State of South Carolina Department of Social Services Contract Dispute. In October 2012, the State of South Carolina Department of Social Services and related government agencies ("SCDSS") filed a proceeding before South Carolina's Chief Procurement Officer ("CPO") against Hewlett-Packard State & Local Enterprise Services, Inc., a subsidiary of HP ("HPSLES"). The dispute arises from a contract between SCDSS and HPSLES for the design, implementation and maintenance of a Child Support Enforcement and a Family Court Case Management System (the "CFS System"). SCDSS seeks aggregate damages of approximately $275 million, a declaration that HPSLES is in material breach of the contract and, therefore, that termination of the contract for cause by SCDSS would be appropriate, and a declaration that HPSLES is required to perform certain additional disputed work that expands the scope of the original contract. In November 2012, HPSLES filed responsive pleadings asserting defenses and seeking payment of past-due invoices totaling more than $12 million. On July 10, 2013, SCDSS terminated the contract with HPSLES for cause, and, in its termination notice, SCDSS asserted that HPSLES is responsible for all future federal penalties until the CFS System achieves federal certification, sought an immediate order requiring HPSLES to transfer to SCDSS all work completed and in progress, and indicated that it intends to seek suspension and debarment of HPSLES from contracting with the State of South Carolina. HPSLES is disputing the termination as improper and defective. In addition, on August 9, 2013, HPSLES filed its own affirmative claim within the proceeding alleging that SCDSS materially breached the contract by its improper termination and that SCDSS was a primary and material cause of the project delays. On September 4, 2013, the CPO denied SCDSS's motion for injunctive relief seeking immediate transfer of the system assets to SCDSS and indicated that the CPO would address that request following a hearing on the merits. The hearing on the merits before the CPO commenced on October 21, 2013, and is expected to continue through early January 2014. | |
India Directorate of Revenue Intelligence Proceedings. On April 30 and May 10, 2010, the India Directorate of Revenue Intelligence (the "DRI") issued show cause notices to Hewlett-Packard India Sales Private Ltd ("HPI"), a subsidiary of HP, seven current HP employees and one former HP employee alleging that HP underpaid customs duties while importing products and spare parts into India and seeking to recover an aggregate of approximately $370 million, plus penalties. Prior to the issuance of the show cause notices, HP 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 products and spare parts and to not interrupt the transaction of business by HP in India. | |
On April 11, 2012, the Bangalore Commissioner of Customs issued an order on the products-related show cause notice affirming certain duties and penalties against HPI and the named individuals of approximately $386 million, of which HPI had already deposited $9 million. On December 11, 2012, HPI voluntarily deposited an additional $10 million in connection with the products-related show cause notice. | |
On April 20, 2012, the Commissioner issued an order on the parts-related show cause notice affirming certain duties and penalties against HPI and certain of the named individuals of approximately $17 million, of which HPI had already deposited $7 million. After the order, HPI deposited an additional $3 million in connection with the parts-related show cause notice so as to avoid certain penalties. | |
HPI filed appeals of the Commissioner's orders before the Customs Tribunal along with applications for waiver of the pre-deposit of remaining demand amounts as a condition for hearing the appeals. The Customs Department has also filed cross-appeals before the Customs Tribunal. On January 24, 2013, the Customs Tribunal ordered HPI to deposit an additional $24 million against the products order, which HPI deposited in March 2013. The Customs Tribunal did not order any additional deposit to be made under the parts order. In December 2013, HPI filed applications before the Customs Tribunal seeking early hearing of appeals as well as the extension of the stay already granted until final disposition of the appeals. These applications are currently pending before the Customs Tribunal. | |
Russia GPO and Other FCPA Investigations. The German Public Prosecutor's Office ("German PPO") has been conducting an investigation into allegations that current and former employees of HP engaged in bribery, embezzlement and tax evasion relating to a transaction between Hewlett-Packard ISE GmbH in Germany, a former subsidiary of HP, and the General Prosecutor's Office of the Russian Federation. The approximately €35 million transaction, which was referred to as the Russia GPO deal, spanned the years 2001 to 2006 and was for the delivery and installation of an IT network. The German PPO has issued an indictment of four individuals, including one current and two former HP employees, on charges including bribery, breach of trust and tax evasion. The German PPO has also requested that HP be made an associated party to the case, and, if that request is granted, HP would participate in any portion of the court proceedings that could ultimately bear on the question of whether HP should be subject to potential disgorgement of profits based on the conduct of the indicted current and former employees. | |
The U.S. Department of Justice and the SEC have been conducting an investigation into the Russia GPO deal and potential violations of the Foreign Corrupt Practices Act ("FCPA"). These U.S. enforcement agencies, as well as the Polish Central Anti-Corruption Bureau, are also conducting investigations into potential FCPA violations by an employee of Hewlett-Packard Polska Sp. z o.o., an indirect subsidiary of HP, in connection with certain public-sector transactions in Poland. In addition, the same U.S. enforcement agencies are conducting investigations into certain other public-sector transactions in Russia, Poland, the Commonwealth of Independent States, and Mexico, among other countries. | |
HP is cooperating with these investigating agencies. In addition, HP is in advanced discussions with the U.S. enforcement agencies to resolve their investigations. | |
Under the FCPA, a person or an entity could be subject to fines, civil penalties of up to $725,000 per violation and equitable remedies, including disgorgement of profits, pre-judgment interest and other injunctive relief. In addition, criminal penalties could range from the greater of $25 million per violation or twice the gross pecuniary gain or loss from the violation. | |
ECT Proceedings. In January 2011, the postal service of Brazil, Empresa Brasileira de Correios e Telégrafos ("ECT"), notified an HP subsidiary in Brazil ("HP Brazil") that it had initiated administrative proceedings to consider whether to suspend HP Brazil's right to bid and contract with ECT related to alleged improprieties in the bidding and contracting processes whereby employees of HP Brazil and employees of several other companies allegedly coordinated their bids and fixed results for three ECT contracts in 2007 and 2008. In late July 2011, ECT notified HP Brazil it had decided to apply the penalties against HP Brazil and suspend HP Brazil's right to bid and contract with ECT for five years, based upon the evidence before it. In August 2011, HP Brazil appealed ECT's decision. In April 2013, ECT rejected HP Brazil's appeal, and the administrative proceedings were closed with the penalties against HP Brazil remaining in place. In parallel, in September 2011, HP Brazil filed a civil action against ECT seeking to have ETC's decision revoked. HP Brazil also requested an injunction suspending the application of the penalties until a final ruling on the merits of the case. The court of first instance has not issued a decision on the merits of the case, but it has denied HP Brazil's request for injunctive relief. HP Brazil appealed the denial of its request for injunctive relief to the intermediate appellate court, which issued a preliminary ruling denying the request for injunctive relief but reducing the length of the sanctions from five to two years. HP Brazil appealed that decision and, in December 2011, obtained a ruling staying enforcement of ECT's sanctions until a final ruling on the merits of the case. HP expects the court of first instance to issue a decision on the merits of the case before the end of the first six months of calendar year 2014 and any subsequent appeal on the merits to last several years. | |
Stockholder Litigation. As described below, HP is involved in various stockholder litigation matters commenced against certain current and former HP executive officers and/or certain current and former members of the HP Board of Directors in which the plaintiffs are seeking to recover damages related to HP's allegedly inflated stock price, certain compensation paid by HP to the defendants, other damages and/or injunctive relief: | |
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Saginaw Police & Fire Pension Fund v. Marc L. Andreessen, et al. is a lawsuit filed on October 19, 2010 in the United States District Court for the Northern District of California alleging, among other things, that the defendants breached their fiduciary duties and were unjustly enriched by consciously disregarding HP's alleged violations of the FCPA. On August 15, 2011, the defendants filed a motion to dismiss the lawsuit. On March 21, 2012, the court granted the defendants' motion to dismiss, and the court entered judgment in the defendants' favor and closed the case on May 29, 2012. On June 28, 2012, the plaintiff filed an appeal with the United States Court of Appeals for the Ninth Circuit. | |
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A.J. Copeland v. Raymond J. Lane, et al. is a lawsuit filed on March 7, 2011 in the United States District Court for the Northern District of California alleging, among other things, that the defendants breached their fiduciary duties and wasted corporate assets in connection with HP's alleged violations of the FCPA, HP's severance payments made to Mark Hurd (a former HP Chairman and Chief Executive Officer), and HP's acquisition of 3PAR Inc. The lawsuit also alleges violations of Section 14(a) of the Securities Exchange Act of 1934 (the "Exchange Act") in connection with HP's 2010 and 2011 proxy statements. On February 8, 2012, the defendants filed a motion to dismiss the lawsuit. On October 10, 2012, the Court granted the defendants' motion to dismiss with leave to file an amended complaint. On November 1, 2012, plaintiff filed an amended complaint adding an unjust enrichment claim and claims that the defendants violated Section 14(a) of the Exchange Act and breached their fiduciary duties in connection with HP's 2012 proxy statement. On December 13, 14 and 17, 2012, the defendants moved to dismiss the amended complaint. On December 28, 2012, plaintiff moved for leave to file a third amended complaint. On May 6, 2013, the court denied the motion for leave to amend, granted the motions to dismiss with prejudice and entered judgment in the defendants' favor. On May 31, 2013, plaintiff filed an appeal with the United States Court of Appeals for the Ninth Circuit. | |
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Richard Gammel v. Hewlett-Packard Company, et al. is a putative securities class action filed on September 13, 2011 in the United States District Court for the Central District of California alleging, among other things, that from November 22, 2010 to August 18, 2011, the defendants violated Sections 10(b) and 20(a) of the Exchange Act by concealing material information and making false statements about HP's business model, the future of the webOS operating system, and HP's commitment to developing and integrating webOS products, including the TouchPad tablet PC. On April 11, 2012, the defendants filed a motion to dismiss the lawsuit. On September 4, 2012, the court granted the defendants' motion to dismiss and gave plaintiff 30 days to file an amended complaint. On October 19, 2012, plaintiff filed an amended complaint asserting the same causes of action but dropping one of the defendants and shortening the period that the alleged violations of the Exchange Act occurred to February 9, 2011 to August 18, 2011. On December 3, 2012, the defendants moved to dismiss the amended complaint. On May 8, 2013, the court granted the defendants' motion to dismiss in part and denied it in part. As a result of the court's ruling, the alleged class period in the action runs from June 1, 2011 to August 18, 2011. The parties commenced mediation before a private mediator on December 3, 2013. | |
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Ernesto Espinoza v. Léo Apotheker, et al. and Larry Salat v. Léo Apotheker, et al. are consolidated lawsuits filed on September 21, 2011 in the United States District Court for the Central District of California alleging, among other things, that the defendants violated Section 10(b) and 20(a) of the Exchange Act by concealing material information and making false statements about HP's business model and the future of webOS, the TouchPad and HP's PC business. The lawsuits also allege that the defendants breached their fiduciary duties, wasted corporate assets and were unjustly enriched when they authorized HP's repurchase of its own stock on August 29, 2010 and July 21, 2011. These lawsuits were previously stayed pending developments in the Gammel matter, but those stays have been lifted. The Plaintiffs filed an amended consolidated complaint on August 21, 2013, and, on October 28, 2013, the defendants filed a motion to stay these matters. | |
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Luis Gonzalez v. Léo Apotheker, et al. and Richard Tyner v. Léo Apotheker, et al. are consolidated lawsuits filed on September 29, 2011 and October 5, 2011, respectively, in California Superior Court alleging, among other things, that the defendants breached their fiduciary duties, wasted corporate assets and were unjustly enriched by concealing material information and making false statements about HP's business model and the future of webOS, the TouchPad and HP's PC business and by authorizing HP's repurchase of its own stock on August 29, 2010 and July 21, 2011. The lawsuits are currently stayed pending resolution of the Espinoza/Salat consolidated action in federal court. | |
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Cement & Concrete Workers District Council Pension Fund v. Hewlett-Packard Company, et al. is a putative securities class action filed on August 3, 2012 in the United States District Court for the Northern District of California alleging, among other things, that from November 13, 2007 to August 6, 2010 the defendants violated Sections 10(b) and 20(a) of the Exchange Act by making statements regarding HP's Standards of Business Conduct ("SBC") that were false and misleading because Mr. Hurd, who was serving as HP's Chairman and Chief Executive Officer during that period, had been violating the SBC and concealing his misbehavior in a manner that jeopardized his continued employment with HP. On February 7, 2013, the defendants moved to dismiss the amended complaint. On August 9, 2013, the court granted the defendants' motion to dismiss with leave to amend the complaint by September 9, 2013. The plaintiffs filed an amended complaint on September 9, 2013, and the defendants moved to dismiss that complaint on October 24, 2013. A hearing on defendants' motion to dismiss is scheduled for January 23, 2014. | |
Autonomy-Related Legal Matters | |
Investigations. As a result of the findings of an ongoing investigation, HP has provided information to the U.K. Serious Fraud Office, the U.S. Department of Justice and the SEC related to the accounting improprieties, disclosure failures and misrepresentations at Autonomy that occurred prior to and in connection with HP's acquisition of Autonomy. On November 21, 2012, representatives of the U.S. Department of Justice advised HP that they had opened an investigation relating to Autonomy. On February 6, 2013, representatives of the U.K. Serious Fraud Office advised HP that they had also opened an investigation relating to Autonomy. HP is cooperating with the three investigating agencies. | |
Litigation. As described below, HP is involved in various stockholder litigation relating to, among other things, its November 20, 2012 announcement that it recorded a non-cash charge for the impairment of goodwill and intangible assets within its Software segment of approximately $8.8 billion in the fourth quarter of its 2012 fiscal year and HP's statements that, based on HP's findings from an ongoing investigation, the majority of this impairment charge related to accounting improprieties, misrepresentations to the market and disclosure failures at Autonomy that occurred prior to and in connection with HP's acquisition of Autonomy and the impact of those improprieties, failures and misrepresentations on the expected future financial performance of the Autonomy business over the long term. This stockholder litigation was commenced against, among others, certain current and former HP executive officers, certain current and former members of the HP Board of Directors, and certain advisors to HP. The plaintiffs in these litigation matters are seeking to recover certain compensation paid by HP to the defendants and/or other damages. These matters include the following: | |
• | |
In re HP Securities Litigation consists of two consolidated putative class actions filed on November 26 and 30, 2012 in the United States District Court for the Northern District of California alleging, among other things, that from August 19, 2011 to November 20, 2012, the defendants violated Sections 10(b) and 20(a) of the Exchange Act by concealing material information and making false statements related to HP's acquisition of Autonomy and the financial performance of HP's enterprise services business. On May 3, 2013, the lead plaintiff filed a consolidated complaint alleging that, during that same period, all of the defendants violated Sections 10(b) and 20(a) of the Exchange Act and SEC Rule 10b-5(b) by concealing material information and making false statements related to HP's acquisition of Autonomy and that certain defendants violated SEC Rule 10b-5(a) and (c) by engaging in a "scheme" to defraud investors. On July 2, 2013, HP filed a motion to dismiss the lawsuit. On November 26, 2013, the court granted in part and denied in part HP's motion to dismiss, allowing claims to proceed against HP and Margaret C. Whitman based on alleged statements and/or omissions made on or after May 23, 2012. The court dismissed all of the plaintiff's claims that were based on alleged statements and/or omissions made between August 19, 2011 and May 22, 2012. | |
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In re Hewlett-Packard Shareholder Derivative Litigation consists of seven consolidated lawsuits filed beginning on November 26, 2012 in the United States District Court for the Northern District of California alleging, among other things, that the defendants violated Sections 10(b) and 20(a) of the Exchange Act by concealing material information and making false statements related to HP's acquisition of Autonomy and the financial performance of HP's enterprise services business. The lawsuits also allege that the defendants breached their fiduciary duties, wasted corporate assets and were unjustly enriched in connection with HP's acquisition of Autonomy and by causing HP to repurchase its own stock at allegedly inflated prices between August 2011 and October 2012. One lawsuit further alleges that certain individual defendants engaged in or assisted insider trading and thereby breached their fiduciary duties, were unjustly enriched and violated Sections 25402 and 25403 of the California Corporations Code. On May 3, 2013, the lead plaintiff filed a consolidated complaint alleging, among other things, that the defendants concealed material information and made false statements related to HP's acquisition of Autonomy and Autonomy's IDOL technology and thereby violated Sections 10(b) and 20(a) of the Exchange Act, breached their fiduciary duties, engaged in "abuse of control" over HP and corporate waste and were unjustly enriched. The litigation was stayed by agreement until July 31, 2013. On July 30, 2013, HP filed a motion to further stay the litigation until HP's Board of Directors decides whether to pursue any of the claims asserted in the litigation or the court rules on HP's motion to dismiss the consolidated complaint in the In re HP Securities Litigation matter. On September 6, 2013, the court extended the stay of the litigation until January 17, 2014. | |
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In re HP ERISA Litigation consists of three consolidated putative class actions filed beginning on December 6, 2012 in the United States District Court for the Northern District of California alleging, among other things, that from August 18, 2011 to November 22, 2012, the defendants breached their fiduciary obligations to HP's 401(k) Plan and its participants and thereby violated Sections 404(a)(1) and 405(a) of the Employee Retirement Income Security Act of 1974, as amended, by concealing negative information regarding the financial performance of Autonomy and HP's enterprise services business and by failing to restrict participants from investing in HP stock. On August 16, 2013, HP filed a motion to dismiss the lawsuit. | |
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Vincent Ho v. Margaret C. Whitman, et al. is a lawsuit filed on January 22, 2013 in California Superior Court alleging, among other things, that the defendants breached their fiduciary duties and wasted corporate assets in connection with HP's acquisition of Autonomy and by causing HP to repurchase its own stock at allegedly inflated prices between August 2011 and October 2012. On April 22, 2013, the court stayed the lawsuit pending resolution of the In re Hewlett-Packard Shareholder Derivative Litigation matter in federal court. Two additional derivative actions, James Gould v. Margaret C. Whitman, et al. and Leroy Noel v. Margaret C. Whitman, et al., were filed in California Superior Court on July 26, 2013 and August 16, 2013, respectively, containing substantially similar allegations and seeking substantially similar relief. Those actions have been stayed pending resolution of the In re Hewlett-Packard Shareholder Derivative Litigation matter. | |
Environmental | |
HP's operations and products are subject to various federal, state, local and foreign laws and regulations concerning environmental protection, including laws addressing the discharge of pollutants into the air and water, the management and disposal of hazardous substances and wastes, the cleanup of contaminated sites, the content of HP's products and the recycling, treatment and disposal of those products. In particular, HP faces increasing complexity in its product design and procurement operations as it adjusts to new and future requirements relating to the chemical and materials composition of its products, their safe use, and the energy consumption associated with those products, including requirements relating to climate change. HP is also subject to legislation in an increasing number of jurisdictions that makes producers of electrical goods, including computers and printers, financially responsible for specified collection, recycling, treatment and disposal of past and future covered products (sometimes referred to as "product take-back legislation"). HP could incur substantial costs, its products could be restricted from entering certain jurisdictions, and it could face other sanctions, if it were to violate or become liable under environmental laws or if its products become non-compliant with environmental laws. HP's potential exposure includes fines and civil or criminal sanctions, third-party property damage or personal injury claims and clean-up costs. The amount and timing of costs to comply with environmental laws are difficult to predict. | |
HP is party to, or otherwise involved in, proceedings brought by U.S. or state environmental agencies under the Comprehensive Environmental Response, Compensation and Liability Act ("CERCLA"), known as "Superfund," or state laws similar to CERCLA, and may become a party to, or otherwise involved in, proceedings brought by private parties for contribution towards clean-up costs. HP is also conducting environmental investigations or remediations at several current or former operating sites pursuant to administrative orders or consent agreements with state environmental agencies. | |
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Note 18: Segment Information | ||||||||||||||||||||||||||
Description of Segments | ||||||||||||||||||||||||||
HP is a leading global provider of products, technologies, software, solutions and services to individual consumers, small- and medium-sized businesses ("SMBs"), and large enterprises, including customers in the government, health and education sectors. HP's offerings span personal computing and other access devices; imaging and printing-related products and services; multi-vendor customer services, including infrastructure technology and business process outsourcing, application development and support services, and consulting and integration services; enterprise information technology ("IT") infrastructure, including enterprise server and storage technology, networking products and solutions, and technology support and maintenance; and IT management software, information management solutions and security intelligence/risk management solutions. | ||||||||||||||||||||||||||
HP's operations are organized into seven reportable business segments for financial reporting purposes: Personal Systems, Printing, the Enterprise Group, Enterprise Services, Software, HP Financial Services and Corporate Investments. HP's organizational structure is based on a number of factors that management uses to evaluate, view and run its business operations, which include, but are not limited to, customer base, homogeneity of products and technology. The reportable business segments are based on this organizational structure and information reviewed by HP's management to evaluate the business segment results. | ||||||||||||||||||||||||||
The Personal Systems segment and the Printing segment are structured beneath a broader Printing and Personal Systems Group ("PPS"). While PPS is not a reportable segment, HP sometimes provides financial data aggregating the Personal Systems and the Printing segments within it in order to provide a supplementary view of its business. | ||||||||||||||||||||||||||
HP has implemented certain organizational realignments. As a result of these realignments, HP re-evaluated its reportable segment structure and, effective in the first quarter of fiscal 2013, created two new reportable segments, the EG segment and the ES segment, and eliminated two other reportable segments, the ESSN segment and the Services segment. The EG segment consists of the business units within the former ESSN segment and most of the services offerings of the TS business unit, which was previously a part of the former Services segment. The ES segment consists of the ABS and ITO business units from the former Services segment, along with the end-user workplace support services business that was previously a part of the TS business unit. | ||||||||||||||||||||||||||
Also as a result of these realignments, the financial results of the Personal Systems commercial products support business, which were previously reported as part of the TS business unit, are now reported as part of the Other business unit within the Personal Systems segment, and the financial results of the portion of the business intelligence services business that had continued to be reported as part of the Corporate Investments segment following the implementation of prior realignment actions are now reported as part of the ABS business unit. In addition, the end-user workplace support business, which, as noted above, was previously a part of the TS business unit and is now a part of the ES segment, is reported as part of the ITO business unit within that segment. | ||||||||||||||||||||||||||
A description of the types of products and services provided by each business segment follows. | ||||||||||||||||||||||||||
The Printing and Personal Systems Group's mission is to leverage the respective strengths of the Personal Systems business and the Printing business by creating a unified business that is customer-focused and poised to capitalize on rapidly shifting industry trends. Each of the business segments within PPS is described in detail below. | ||||||||||||||||||||||||||
Personal Systems provides commercial personal computers ("PCs"), consumer PCs, workstations, thin clients, tablets, retail point-of-sale ("POS") systems, calculators and other related accessories, software, support and services for the commercial and consumer markets. HP groups commercial notebooks, commercial desktops, commercial tablets and workstations into commercial clients and consumer notebooks, consumer desktops and consumer tablets into consumer clients when describing its performance in these markets. Described below are HP's global business capabilities within Personal Systems. | ||||||||||||||||||||||||||
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Commercial PCs are optimized for use by commercial customers, including enterprise and SMB customers, and for connectivity, reliability and manageability in networked environments. Commercial PCs include the HP ProBook and HP EliteBook lines of notebooks; the HP Pro and HP Elite lines of business desktops and all-in-ones, retail POS systems, HP Thin Clients and HP ElitePad Tablet PCs. Commercial PCs also include Workstations that are designed and optimized to reliably operate in high performance and demanding application environments including Z desktop workstations, Z all-in-ones and Z mobile workstations. | ||||||||||||||||||||||||||
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Consumer PCs include the HP Spectre, HP ENVY, HP Pavilion, HP Chromebooks and HP Split series of multi-media consumer notebooks, consumer tablets, hybrids (detachable tablets), desktops, including the TouchSmart line of touch-enabled notebooks and all-in-one desktops. Consumer PCs also use the Compaq and Slate sub-brands for certain product offerings. | ||||||||||||||||||||||||||
Printing provides consumer and commercial printer hardware, supplies, media, software and services, as well as scanning devices. Printing is also focused on imaging solutions in the commercial markets. HP groups LaserJet, large format and Indigo printers into commercial hardware and inkjet printers into consumer hardware when describing our performance in these markets. Described below are HP's global business capabilities within Printing. | ||||||||||||||||||||||||||
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Inkjet and Printing Solutions delivers HP's consumer and SMB inkjet solutions (hardware, supplies, media, and web-connected hardware and services). It includes single-function and all-in-one inkjet printers. Ongoing initiatives and programs such as Ink in the office and Ink Advantage and new initiatives such as Instant Ink are meant to provide innovative printing solutions to consumers and SMBs and include HP's Officejet Premium and Officejet Pro inkjet product portfolios. | ||||||||||||||||||||||||||
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LaserJet and Enterprise Solutions delivers HP's commercial and laserjet products, services and solutions to SMB and enterprise segments, including LaserJet printers and supplies (toner), multi-function devices, scanners, web-connected hardware and managed services, and enterprise software solutions, such as Exstream Software and Web Jetadmin. HP managed services include managed service products, support and solutions delivered to SMB and enterprise customers partnering with third-party software providers to offer workflow solutions. | ||||||||||||||||||||||||||
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Graphics Solutions offers large format printing (Designjet and Scitex) and supplies, Indigo digital presses and supplies, inkjet high-speed production solutions and supplies, specialty printing systems and graphics services. | ||||||||||||||||||||||||||
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Software and Web Services delivers a suite of offerings, including photo-storage and printing offerings (such as Snapfish), document storage, entertainment services, web-connected printing, and PC back-up and related services. | ||||||||||||||||||||||||||
The Enterprise Group provides servers, storage, networking, technology services that, when combined with HP's Cloud solutions, enable the customers to manage applications across public cloud, virtual private cloud, private cloud and traditional IT environments. Described below are HP's business units and capabilities within EG. | ||||||||||||||||||||||||||
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Industry Standard Servers offers ProLiant servers, running primarily Windows, Linux and virtualization platforms from software providers such as Microsoft Corporation and VMware, Inc. and open sourced software from other major vendors while leveraging x86 processors from Intel Corporation and Advanced Micro Devices, Inc. The business spans a range of server product lines, including microservers, towers, traditional rack, density-optimized rack and blades, as well as hyperscale solutions for large, distributed computing companies who buy and deploy nodes at a massive scale. In fiscal 2013, HP launched its HP Moonshot servers that operate on ARM-based and Intel Atom-based processors that offer reduced cost, space, energy and complexity compared to some traditional Servers. | ||||||||||||||||||||||||||
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Business Critical Systems offers HP Integrity servers based on the Intel Itanium-based processor, HP Integrity NonStop solutions and mission critical x86 ProLiant Servers. | ||||||||||||||||||||||||||
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Storage offers traditional storage and converged storage solutions. Traditional storage includes tape, storage networking and legacy external disk products such as EVA and XP. Converged storage solutions include 3PAR StoreServ, StoreOnce, StoreVirtual and StoreAll products. | ||||||||||||||||||||||||||
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Networking offers switches and routers that span the data center, campus and branch environments and deliver network management and unified communications. HP's wireless networking offerings include wireless LAN access points and controllers/switches. | ||||||||||||||||||||||||||
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Technology Services provides technology consulting and support services focused on cloud, mobility and big data and provides IT organizations with advice, design, implementation, migration and optimization of HP's Enterprise Group platforms: servers, storage, networking and converged infrastructure. Support services includes Datacenter Care, Foundation Care, Proactive Care and Lifecycle Event services. These services are available in the form of service contracts, pre-packaged offerings or on a customized basis. | ||||||||||||||||||||||||||
Enterprise Services provides technology consulting, outsourcing and support services across infrastructure, applications and business process domains. ES is divided into Infrastructure Technology Outsourcing and Application and Business Services. | ||||||||||||||||||||||||||
• | ||||||||||||||||||||||||||
Infrastructure Technology Outsourcing delivers comprehensive services that encompass the management of data centers, IT security, cloud computing, workplace technology, network, unified communications, and enterprise service management. | ||||||||||||||||||||||||||
• | ||||||||||||||||||||||||||
Application and Business Services helps clients develop, revitalize and manage their applications and information assets. The portfolio also includes intellectual property-based industry solutions, services and technologies to help clients better manage critical business processes and services for customer relationship management, finance and administration, human resources, payroll and document processing. | ||||||||||||||||||||||||||
Software provides IT management big data and security solutions for businesses and enterprises of all sizes. HP's IT management solutions help customers deliver applications and services that perform to defined standards and automate and assure the underlying infrastructure, be it traditional, cloud or hybrid. HP's big data solutions include the HP HAVEn Big Data platform, which, together with the Autonomy and Vertica products, is designed to help customers with their structured and unstructured information. HP's security solutions provide security from the infrastructure through applications and information. HP's Software offerings include licenses, support, professional services and SaaS. | ||||||||||||||||||||||||||
HP Financial Services acts as a strategic enabler for HP by providing financing for customers to purchase complete IT solutions, including hardware, software and services from HP. HPFS offers financial solutions to customers to manage to the lowest total cost of ownership—from planning and acquiring technology all the way to replacing or retiring it. HPFS offers leasing, financing, utility programs and asset management services for large enterprise customers. HPFS also helps customers to manage the risks of dealing with older or surplus IT equipment, which helps provide full life cycle coverage to HPFS customers. | ||||||||||||||||||||||||||
Corporate Investments includes HP Labs, the webOS business and certain business incubation projects. | ||||||||||||||||||||||||||
Segment Data | ||||||||||||||||||||||||||
HP derives the results of the business segments directly from its internal management reporting system. The accounting policies HP uses to derive business segment results are substantially the same as those the consolidated company uses. Management measures the performance of each business segment based on several metrics, including earnings from operations. Management uses these results, in part, to evaluate the performance of, and to assign resources to, each of the business segments. HP does not allocate to its business segments certain operating expenses, which it manages separately at the corporate level. These unallocated costs include restructuring charges, amortization of intangible assets, impairment of goodwill and intangible assets, certain stock-based compensation expense and acquisition-related charges, as well as certain corporate governance costs. | ||||||||||||||||||||||||||
Segment revenue includes revenues from sales to external customers and intersegment revenues that reflect transactions between the segments that are carried out at an arm's-length transfer price. Intersegment revenues primarily consist of sales of hardware and software that are sourced internally and, in the majority of the cases, are classified as operating leases within HPFS. HP's Consolidated Net Revenue is derived and reported after elimination of intersegment revenues for such arrangements in accordance with U.S. GAAP. | ||||||||||||||||||||||||||
To provide improved visibility and comparability, HP has reflected the 2013 changes effective in the first quarter of fiscal 2013 to its reporting structure in prior financial reporting periods on an as-if basis, which has resulted in the transfer of revenue and operating profit among the Personal Systems, EG, ES and Corporate Investments segments. These changes had no impact on the previously reported financial results for the Printing, Software or HPFS segments. In addition, none of these changes impacted HP's previously reported consolidated net revenue, earnings from operations, net earnings or net earnings per share. | ||||||||||||||||||||||||||
Selected operating results information for each business segment was as follows for the following fiscal years ended October 31: | ||||||||||||||||||||||||||
Printing and Personal Systems | ||||||||||||||||||||||||||
Personal | Printing | Enterprise | Enterprise | Software(1) | HP Financial | Corporate | Total | |||||||||||||||||||
Systems | Group | Services | Services | Investments(2) | ||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||
2013 | ||||||||||||||||||||||||||
Net revenue | $ | 31,124 | $ | 23,643 | $ | 27,303 | $ | 23,041 | $ | 3,593 | $ | 3,570 | $ | 24 | $ | 112,298 | ||||||||||
Intersegment net revenue and other | 947 | 211 | 880 | 479 | 320 | 59 | — | 2,896 | ||||||||||||||||||
Total segment net revenue | $ | 32,071 | $ | 23,854 | $ | 28,183 | $ | 23,520 | $ | 3,913 | $ | 3,629 | $ | 24 | $ | 115,194 | ||||||||||
Earnings (loss) from operations | $ | 949 | $ | 3,890 | $ | 4,301 | $ | 679 | $ | 866 | $ | 399 | $ | (236 | ) | $ | 10,848 | |||||||||
2012 | ||||||||||||||||||||||||||
Net revenue | $ | 34,774 | $ | 24,266 | $ | 28,628 | $ | 25,091 | $ | 3,757 | $ | 3,784 | $ | 57 | $ | 120,357 | ||||||||||
Intersegment net revenue and other | 951 | 221 | 1,151 | 518 | 303 | 35 | 1 | 3,180 | ||||||||||||||||||
Total segment net revenue | $ | 35,725 | $ | 24,487 | $ | 29,779 | $ | 25,609 | $ | 4,060 | $ | 3,819 | $ | 58 | $ | 123,537 | ||||||||||
Earnings (loss) from operations | $ | 1,689 | $ | 3,585 | $ | 5,194 | $ | 1,045 | $ | 827 | $ | 388 | $ | (233 | ) | $ | 12,495 | |||||||||
2011 | ||||||||||||||||||||||||||
Net revenue | $ | 38,448 | $ | 25,874 | $ | 30,135 | $ | 25,938 | $ | 3,128 | $ | 3,568 | $ | 154 | $ | 127,245 | ||||||||||
Intersegment net revenue and other | 1,206 | 302 | 1,325 | 330 | 239 | 28 | 12 | 3,442 | ||||||||||||||||||
Total segment net revenue | $ | 39,654 | $ | 26,176 | $ | 31,460 | $ | 26,268 | $ | 3,367 | $ | 3,596 | $ | 166 | $ | 130,687 | ||||||||||
Earnings (loss) from operations | $ | 2,327 | $ | 3,927 | $ | 6,265 | $ | 1,972 | $ | 722 | $ | 348 | $ | (1,633 | ) | $ | 13,928 | |||||||||
-1 | ||||||||||||||||||||||||||
Includes the results of Autonomy from the date of acquisition in October 2011. | ||||||||||||||||||||||||||
-2 | ||||||||||||||||||||||||||
Includes the impact of the decision to wind down the webOS device business during the quarter ended October 31, 2011. | ||||||||||||||||||||||||||
The reconciliation of segment operating results to HP consolidated results was as follows for the fiscal years ended October 31: | ||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||
Net revenue: | ||||||||||||||||||||||||||
Segment total | $ | 115,194 | $ | 123,537 | $ | 130,687 | ||||||||||||||||||||
Elimination of intersegment net revenue and other | (2,896 | ) | (3,180 | ) | (3,442 | ) | ||||||||||||||||||||
Total HP consolidated net revenue | $ | 112,298 | $ | 120,357 | $ | 127,245 | ||||||||||||||||||||
Earnings before taxes: | ||||||||||||||||||||||||||
Total segment earnings from operations | $ | 10,848 | $ | 12,495 | $ | 13,928 | ||||||||||||||||||||
Corporate and unallocated costs and eliminations | (832 | ) | (787 | ) | (314 | ) | ||||||||||||||||||||
Unallocated costs related to certain stock-based compensation expense | (500 | ) | (635 | ) | (618 | ) | ||||||||||||||||||||
Amortization of intangible assets | (1,373 | ) | (1,784 | ) | (1,607 | ) | ||||||||||||||||||||
Impairment of goodwill and intangible assets | — | (18,035 | ) | (885 | ) | |||||||||||||||||||||
Restructuring charges | (990 | ) | (2,266 | ) | (645 | ) | ||||||||||||||||||||
Acquisition-related charges | (22 | ) | (45 | ) | (182 | ) | ||||||||||||||||||||
Interest and other, net | (621 | ) | (876 | ) | (695 | ) | ||||||||||||||||||||
Total HP consolidated earnings (loss) before taxes | $ | 6,510 | $ | (11,933 | ) | $ | 8,982 | |||||||||||||||||||
HP allocates assets to its business segments based on the segments primarily benefiting from the assets. Total assets by segment and the reconciliation of segment assets to HP consolidated assets were as follows at October 31: | ||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||
Personal Systems | $ | 11,870 | $ | 12,752 | $ | 15,781 | ||||||||||||||||||||
Printing | 10,705 | 11,169 | 11,939 | |||||||||||||||||||||||
Printing and Personal Systems Group | 22,575 | 23,921 | 27,720 | |||||||||||||||||||||||
Enterprise Group | 30,858 | 30,851 | 32,388 | |||||||||||||||||||||||
Enterprise Services | 15,229 | 16,383 | 25,765 | |||||||||||||||||||||||
Software | 11,868 | 12,264 | 21,028 | |||||||||||||||||||||||
HP Financial Services | 12,011 | 12,924 | 13,543 | |||||||||||||||||||||||
Corporate Investments | 123 | 248 | 517 | |||||||||||||||||||||||
Corporate and unallocated assets | 13,012 | 12,177 | 8,556 | |||||||||||||||||||||||
Total HP consolidated assets | $ | 105,676 | $ | 108,768 | $ | 129,517 | ||||||||||||||||||||
Assets allocated to the Personal Systems segment in fiscal 2012 decreased as compared to fiscal 2011 as a result of an impairment charge impacting the "Compaq" trade name as described further in Note 6. Assets allocated to the ES segment decreased in fiscal 2012 due primarily to a goodwill impairment charge as described further in Note 6. In addition, assets allocated to the Software segment decreased in fiscal 2012 due primarily to intangible asset and goodwill impairment charges related to the Autonomy reporting unit as described further in Note 6. | ||||||||||||||||||||||||||
Major Customers | ||||||||||||||||||||||||||
No single customer represented 10% or more of HP's total net revenue in any fiscal year presented. | ||||||||||||||||||||||||||
Geographic Information | ||||||||||||||||||||||||||
Net revenue, classified by the major geographic areas in which HP operates, was as follows for the following fiscal years ended October 31: | ||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||
Net revenue: | ||||||||||||||||||||||||||
U.S. | $ | 40,284 | $ | 42,140 | $ | 44,111 | ||||||||||||||||||||
Non-U.S. | 72,014 | 78,217 | 83,134 | |||||||||||||||||||||||
Total HP consolidated net revenue | $ | 112,298 | $ | 120,357 | $ | 127,245 | ||||||||||||||||||||
Net revenue by geographic area is based upon the sales location that predominately represents the customer location. For each of the fiscal years ended October 31, 2013, 2012 and 2011, other than the United States, no country represented more than 10% of HP's total consolidated net revenue. HP reports revenue net of sales taxes, use taxes and value-added taxes directly imposed by governmental authorities on HP's revenue producing transactions with its customers. | ||||||||||||||||||||||||||
At October 31, 2013 and 2012, the United States, the Cayman Islands and Ireland each had 10% or more of HP's consolidated net assets. At October 31, 2011, the United States and the Netherlands each had 10% or more of HP's consolidated net assets. | ||||||||||||||||||||||||||
Net property, plant and equipment, classified by major geographic areas in which HP operates, was as follows for the following fiscal years ended October 31: | ||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||
Net property, plant and equipment: | ||||||||||||||||||||||||||
U.S. | $ | 5,546 | $ | 5,894 | $ | 6,126 | ||||||||||||||||||||
U.K. | 1,090 | 1,195 | 1,195 | |||||||||||||||||||||||
Other countries | 4,827 | 4,865 | 4,971 | |||||||||||||||||||||||
Total HP consolidated net property, plant and equipment | $ | 11,463 | $ | 11,954 | $ | 12,292 | ||||||||||||||||||||
Net revenue by segment and business unit | ||||||||||||||||||||||||||
The following table provides net revenue by segment and business unit for the following fiscal years ended October 31: | ||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||
Net revenue: | ||||||||||||||||||||||||||
Notebooks | $ | 16,029 | $ | 18,830 | $ | 21,319 | ||||||||||||||||||||
Desktops | 12,844 | 13,888 | 15,260 | |||||||||||||||||||||||
Workstations | 2,147 | 2,148 | 2,216 | |||||||||||||||||||||||
Other | 1,051 | 859 | 859 | |||||||||||||||||||||||
Personal Systems | 32,071 | 35,725 | 39,654 | |||||||||||||||||||||||
Supplies | 15,716 | 16,151 | 17,154 | |||||||||||||||||||||||
Commercial Hardware | 5,702 | 5,895 | 6,183 | |||||||||||||||||||||||
Consumer Hardware | 2,436 | 2,441 | 2,839 | |||||||||||||||||||||||
Printing | 23,854 | 24,487 | 26,176 | |||||||||||||||||||||||
Printing and Personal Systems Group | 55,925 | 60,212 | 65,830 | |||||||||||||||||||||||
Industry Standard Servers | 12,102 | 12,582 | 13,521 | |||||||||||||||||||||||
Technology Services | 8,890 | 9,288 | 9,396 | |||||||||||||||||||||||
Storage | 3,475 | 3,815 | 4,056 | |||||||||||||||||||||||
Networking | 2,526 | 2,482 | 2,392 | |||||||||||||||||||||||
Business Critical Systems | 1,190 | 1,612 | 2,095 | |||||||||||||||||||||||
Enterprise Group | 28,183 | 29,779 | 31,460 | |||||||||||||||||||||||
Infrastructure Technology Outsourcing | 14,682 | 15,792 | 16,290 | |||||||||||||||||||||||
Application and Business Services | 8,838 | 9,817 | 9,978 | |||||||||||||||||||||||
Enterprise Services | 23,520 | 25,609 | 26,268 | |||||||||||||||||||||||
Software(1) | 3,913 | 4,060 | 3,367 | |||||||||||||||||||||||
HP Financial Services | 3,629 | 3,819 | 3,596 | |||||||||||||||||||||||
Corporate Investments(2) | 24 | 58 | 166 | |||||||||||||||||||||||
Total segments | 115,194 | 123,537 | 130,687 | |||||||||||||||||||||||
Eliminations of intersegment net revenue and other | (2,896 | ) | (3,180 | ) | (3,442 | ) | ||||||||||||||||||||
Total HP consolidated net revenue | $ | 112,298 | $ | 120,357 | $ | 127,245 | ||||||||||||||||||||
-1 | ||||||||||||||||||||||||||
Includes the results of Autonomy from the date of acquisition in October 2011. | ||||||||||||||||||||||||||
-2 | ||||||||||||||||||||||||||
Includes the impact of the decision to wind down the webOS device business during the quarter ended October 31, 2011. | ||||||||||||||||||||||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Oct. 31, 2013 | |
Summary of Significant Accounting Policies | ' |
Principles of Consolidation | ' |
The Consolidated Financial Statements include the accounts of Hewlett-Packard Company ("HP") and the subsidiaries and affiliates in which HP has a controlling financial interest or is the primary beneficiary. HP accounts for equity investments in companies over which HP has the ability to exercise significant influence but does not hold a controlling interest under the equity method, and HP records its proportionate share of income or losses in Interest and other, net in the Consolidated Statements of Earnings. HP presents non-controlling interests as a separate component within Total stockholder's equity in the Consolidated Balance Sheets. Net earnings attributable to the non-controlling interests are eliminated within Interest and other, net in the Consolidated Statements of Earnings and are not presented separately as they were not material for any period presented. HP has eliminated all significant intercompany accounts and transactions. | |
Reclassifications and Segment Reorganization | ' |
HP has made certain segment and business unit realignments in order to optimize its operating structure. Reclassifications of certain prior-year segment and business unit financial information have been made to conform to the current-year presentation. None of the changes impacts HP's previously reported consolidated net revenue, earnings from operations, net earnings or net earnings per share. See Note 18 for a further discussion of HP's segment reorganization. | |
Use of Estimates | ' |
The preparation of financial statements in accordance with U.S. generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions that affect the amounts reported in HP's Consolidated Financial Statements and accompanying notes. Actual results could differ materially from those estimates. | |
Revenue Recognition | ' |
HP derives net revenue primarily from the sale of products and services. The following revenue recognition policies define the manner in which HP accounts for sales transactions. | |
HP recognizes revenue when persuasive evidence of a sales arrangement exists, delivery has occurred or services are rendered, the sales price or fee is fixed or determinable, and collectibility is reasonably assured. Additionally, HP recognizes hardware revenue on sales to channel partners, including resellers, distributors or value-added solution providers at the time of delivery when the channel partners have economic substance apart from HP, and HP has completed its obligations related to the sale. HP generally recognizes revenue for its stand-alone software sales to channel partners upon receiving evidence that the software has been sold to a specific end user. | |
When a sales arrangement contains multiple elements, such as hardware and software products, licenses and/or services, HP allocates revenue to each element based on a selling price hierarchy. The selling price for a deliverable is based on its vendor specific objective evidence ("VSOE") of selling price, if available, third party evidence ("TPE") if VSOE of selling price is not available, or estimated selling price ("ESP") if neither VSOE of selling price nor TPE is available. HP establishes VSOE of selling price using the price charged for a deliverable when sold separately and, in rare instances, using the price established by management having the relevant authority. HP establishes TPE of selling price by evaluating largely similar and interchangeable competitor products or services in standalone sales to similarly situated customers. HP establishes ESP, based on management judgment, considering internal factors such as margin objectives, pricing practices and controls, customer segment pricing strategies and the product life cycle. Consideration is also given to market conditions, such as competitor pricing strategies and industry technology life cycles. In arrangements with multiple elements, HP determines allocation of the transaction price at inception of the arrangement based on the relative selling price of each unit of accounting. | |
In multiple element arrangements where more-than-incidental software deliverables are included, HP allocates the transaction price to the individual units of accounting for the non-software deliverables and to the software deliverables as a group using the relative selling prices of each of the deliverables in the arrangement based on the selling price hierarchy. If the arrangement contains more than one software deliverable, the transaction price allocated to the group of software deliverables is then allocated to each component software deliverable. | |
HP limits the amount of revenue recognized for delivered elements to the amount that is not contingent on the future delivery of products or services, future performance obligations or subject to customer-specified return or refund privileges. | |
HP evaluates each deliverable in an arrangement to determine whether it represents a separate unit of accounting. A deliverable constitutes a separate unit of accounting when it has standalone value and there are no customer-negotiated refund or return rights or other contingencies present for the delivered elements. If the arrangement includes a customer-negotiated refund or return right relative to the delivered item, and the delivery and performance of the undelivered item is considered probable and substantially within HP's control, the delivered element constitutes a separate unit of accounting. In instances when the aforementioned criteria are not met, the deliverable is combined with the undelivered elements and the allocation of the arrangement consideration and method of revenue recognition is determined for the combined unit as a single unit of accounting. | |
HP records estimated reductions to revenue for customer and distributor programs and incentive offerings, including price protection, promotions, other volume-based incentives and expected returns. Future market conditions and product transitions may require HP to take actions to increase customer incentive offerings, possibly resulting in an incremental reduction of revenue at the time the incentive is offered. Additionally, certain incentive programs require HP to estimate, based on historical experience and the specific terms and conditions of the incentive, the number of customers who will actually redeem the incentive. | |
In instances when revenue is derived from sales of third-party vendor services, HP records revenue on a gross basis when HP is a principal to the transaction and net of costs when HP is acting as an agent between the customer and the vendor. HP considers several factors to determine whether it is a principal or an agent, most notably whether HP is the primary obligor to the customer, has established its own pricing, and has inventory and credit risks. | |
HP reports revenue net of any required taxes collected from customers and remitted to government authorities, with the collected taxes recorded as current liabilities until remitted to the relevant government authority. | |
Products revenue | |
Hardware | |
Under HP's standard terms and conditions of sale, HP transfers title and risk of loss to the customer at the time product is delivered to the customer and recognizes revenue accordingly, unless customer acceptance is uncertain or significant obligations remain. HP reduces revenue for estimated customer returns, price protection, rebates and other programs offered under sales agreements established by HP with its distributors and resellers. HP records revenue from the sale of equipment under sales-type leases as product revenue at the inception of the lease. HP accrues the estimated cost of post-sale obligations, including basic product warranties, based on historical experience, at the time HP recognizes revenue. | |
Software | |
HP recognizes revenue from perpetual software licenses at the inception of the license term, assuming all revenue recognition criteria have been met. Term-based software license revenue is generally recognized ratably over the term of the license. HP uses the residual method to allocate revenue to software licenses at the inception of the license term when VSOE of fair value for all undelivered elements exists, such as post-contract support, and all other revenue recognition criteria have been satisfied. HP recognizes revenue generated from maintenance and unspecified upgrades or updates on a when-and-if-available basis ratably over the period during which such items are delivered. HP recognizes revenue for software hosting or software-as-a-service ("SaaS") arrangements as the service is delivered, generally on a straight-line basis, over the contractual period of performance. In software hosting arrangements where licenses are sold, HP recognizes the associated software revenue according to whether perpetual licenses or term licenses are sold, subject to the above guidance. In such software hosting arrangements HP considers the rights provided to the customer (e.g., ownership of a license, contract termination provisions and the feasibility of the customer to operate the software) in determining how to account for the software license fees. In SaaS arrangements where software licenses are not sold, HP recognizes the entire arrangement ratably over the term of the subscription arrangement. | |
Services revenue | |
HP recognizes revenue from fixed-price support or maintenance contracts, including extended warranty contracts and software post-contract customer support agreements, ratably over the contract period and recognizes the costs associated with these contracts as incurred. For time and material contracts, HP recognizes revenue as services are rendered and costs as they are incurred. HP recognizes revenue from fixed-price consulting arrangements over the contract period on a proportional performance basis, as determined by the relationship of actual labor costs incurred to date compared to the estimated total contract labor costs. HP recognizes revenue on certain design and build projects (to design, develop and construct software and systems) using the percentage-of-completion method. HP uses the cost-to-cost method of measurement towards completion as determined by the percentage of cost incurred to date compared to the total estimated costs of the project. Estimates of project costs for fixed-price contracts are regularly revised during the life of a contract. HP records revisions to cost estimates, and overall contract losses where applicable, in the period in which the facts that give rise to such changes become known. HP uses the completed contract method if reasonable and reliable cost estimates for a project cannot be made. | |
HP generally recognizes outsourcing services revenue when the service is provided and the amount earned is not contingent upon any future event. If the service is provided evenly during the contract term but service billings are uneven, HP generally recognizes revenue on a straight-line basis over the contract term. Losses on outsourcing arrangements are recognized in the period in which such contractual losses become probable and estimable. | |
HP recognizes revenue from operating leases on a straight-line basis as service revenue over the rental period. | |
HP records amounts invoiced to customers in excess of revenue recognized as deferred revenue until the revenue recognition criteria are met. HP records revenue that is earned and recognized in excess of amounts invoiced on services contracts as trade receivables. | |
Financing income | |
Sales-type and direct-financing leases produce financing income, which HP recognizes at consistent rates of return over the lease term. | |
Deferred revenue and deferred costs | |
Deferred revenue represents amounts received in advance for product support contracts, software customer support contracts, outsourcing startup services work, consulting and integration projects, product sales or leasing income. The product support contracts include stand-alone product support packages, routine maintenance service contracts, upgrades or extensions to standard product warranty, as well as high-availability services for complex, global, networked, multi-vendor environments. HP defers these support service amounts at the time HP bills the customer, and HP then generally recognizes the amounts ratably over the support contract term or as HP delivers the services. | |
HP recognizes costs associated with outsourcing contracts as incurred, unless such costs relate to the startup phase of the outsourcing contract and are considered direct and incremental to the contract, in which case HP defers and subsequently amortizes such costs over the contractual services period. HP amortizes deferred contract costs on a straight-line basis over the remaining original term of the contract unless facts and circumstances of the contract indicate a shorter period is more appropriate. Based on actual and projected contract financial performance indicators, HP analyzes the recoverability of deferred contract costs associated with a particular contract on a periodic basis using the undiscounted estimated cash flows of the contract over its remaining term. If such undiscounted cash flows are insufficient to recover the long-lived assets and deferred contract costs, the deferred contract costs are written down based on a discounted cash flow model. If a cash flow deficiency remains after reducing the balance of the deferred contract costs to zero, HP evaluates any remaining long-lived assets related to that contract for impairment. | |
Shipping and handling | ' |
HP includes costs related to shipping and handling in cost of sales. | |
Advertising | ' |
HP expenses advertising costs as incurred or when the advertising is first run. Such costs totaled approximately $878 million in fiscal 2013, $1.0 billion in fiscal 2012 and $1.2 billion in fiscal 2011. | |
Software Development Costs | ' |
HP capitalizes costs incurred to acquire or develop software for resale subsequent to the software product establishing technological feasibility, if significant. HP amortizes capitalized software development costs using the greater of the straight-line amortization method or the ratio that current gross revenues for a product bear to the total current and anticipated future gross revenues for that product. The estimated useful lives for capitalized software for resale are generally three years or less. Software development costs incurred subsequent to a product establishing technological feasibility are usually not significant. In those instances, HP expenses such costs as incurred. | |
Stock-Based Compensation | ' |
HP determines stock-based compensation expense for all share-based payment awards based on the measurement date fair value. HP recognizes compensation cost only for those awards expected to meet the service and performance vesting conditions on a straight-line basis over the requisite service period of the award. HP determines compensation costs at the aggregate grant level for service-based awards and at the individual vesting tranche level for awards with performance and/or market conditions. HP estimates the forfeiture rate based on its historical experience. | |
Restructuring | ' |
HP records restructuring charges associated with management-approved restructuring plans to reorganize one or more of HP's business segments, to remove duplicative headcount and infrastructure associated with business acquisitions or to simplify business processes and accelerate innovation. Restructuring charges can include severance costs to eliminate a specified number of employees, infrastructure charges to vacate facilities and consolidate operations, and contract cancellation costs. HP records restructuring charges based on estimated employee terminations and site closure and consolidation plans. HP accrues for severance and other employee separation costs under these actions when it is probable that benefits will be paid and the amount is reasonably estimable. The rates used in determing severance accruals are based on existing plans, historical experiences, and negotiated settlements. | |
Foreign Currency Translation | ' |
HP uses the U.S. dollar predominately as its functional currency. Assets and liabilities denominated in non-U.S. dollars are remeasured into U.S. dollars at current exchange rates for monetary assets and liabilities and at historical exchange rates for nonmonetary assets and liabilities. Net revenue, costs and expenses are remeasured at monthly average exchange rates prevailing during the period. HP includes gains or losses from foreign currency remeasurement in Interest and other, net in the Consolidated Statement of Earnings. Certain non-U.S. subsidiaries designate the local currency as their functional currency, and HP records the translation of their assets and liabilities into U.S. dollars at the balance sheet dates as translation adjustments and includes them as a component of Accumulated other comprehensive loss in the Consolidated Balance Sheets. | |
Debt and Marketable Equity Securities | ' |
Debt and marketable equity securities are generally considered available-for-sale and are reported at fair value with unrealized gains and losses, net of applicable taxes, recorded in Accumulated other comprehensive loss in the Consolidated Balance Sheets. Realized gains and losses for available-for-sale securities are calculated based on the specific identification method and included in Interest and other, net in the Consolidated Statement of Earnings. HP monitors its investment portfolio for impairment on a quarterly basis. When the carrying value of an investment in debt securities exceeds its fair value and the decline in value is determined to be an other-than-temporary decline (i.e., when HP does not intend to sell the debt securities and it is not more likely than not that HP will be required to sell the debt securities prior to anticipated recovery of its amortized cost basis), HP records an impairment charge to Interest and other, net in the amount of the credit loss and the balance, if any, to Accumulated other comprehensive loss in the Consolidated Balance Sheets. | |
Allowance for Doubtful Accounts for Accounts Receivable | ' |
HP establishes an allowance for doubtful accounts for account receivables. HP records a specific reserve for individual accounts when HP becomes aware of specific customer circumstances, such as in the case of bankruptcy filings or a deterioration in the customer's operating results or financial position. If there are additional changes in circumstances related to the specific customer, HP further adjusts estimates of the recoverability of receivables. HP maintains bad debt reserves for all other customers based on a variety of factors, including the use of third-party credit risk models that generate quantitative measures of default probabilities based on market factors, the financial condition of customers, the length of time receivables are past due, trends in the weighted-average risk rating for the portfolio, macroeconomic conditions, information derived from competitive benchmarking, significant one-time events and historical experience. The past due or delinquency status of a receivable is based on the contractual payment terms of the receivable. | |
Inventory | ' |
HP values inventory at the lower of cost or market. Cost is computed using standard cost which approximates actual cost on a first-in, first-out basis. Adjustments to reduce the cost of inventory to its net realizable value are made, if required, for estimated excess, obsolete or impaired balances. | |
Derivatives | ' |
HP uses derivative financial instruments, primarily non-speculative forwards, swaps, and options, to hedge certain foreign currency and interest rate exposures. HP also may use other derivative instruments not designated as hedges, such as forwards used to hedge foreign currency balance sheet exposures. HP does not use derivative financial instruments for speculative purposes. See Note 9 for a full description of HP's derivative financial instrument activities and related accounting policies. | |
Property, Plant and Equipment | ' |
HP states property, plant and equipment at cost less accumulated depreciation. HP capitalizes additions and improvements and expenses maintenance and repairs as incurred. Depreciation is computed using straight-line or accelerated methods over the estimated useful lives of the assets. Estimated useful lives are five to 40 years for buildings and improvements and three to 15 years for machinery and equipment. HP depreciates leasehold improvements over the life of the lease or the asset, whichever is shorter. HP depreciates equipment held for lease over the initial term of the lease to the equipment's estimated residual value. The estimated useful lives of assets used solely to support a customer services contract generally do not exceed the term of the customer contract. Upon retirement or disposition, the asset cost and related accumulated depreciation are removed with any gain or loss recognized in the Consolidated Statements of Earnings. | |
HP capitalizes certain internal and external costs incurred to acquire or create internal use software, principally related to software coding, designing system interfaces and installation and testing of the software. HP amortizes capitalized internal use software costs using the straight-line method over the estimated useful lives of the software, generally from three to five years. | |
Business Combinations | ' |
HP includes the results of operations of the businesses that it has acquired in HP's consolidated results prospectively from the respective dates of acquisition. HP allocates the fair value of purchase consideration to the assets acquired, liabilities assumed, and non-controlling interests in the acquired entity generally based on their fair values at the acquisition date. The excess of the fair value of purchase consideration over the fair value of these assets acquired, liabilities assumed and non-controlling interests in the acquired entity is recorded as goodwill. The primary items that generate goodwill include the value of the synergies between the acquired companies and HP and the acquired assembled workforce, neither of which qualifies for recognition as an intangible asset. Acquisition-related expenses and restructuring costs are recognized separately from the business combination and are expensed as incurred. | |
Goodwill | ' |
HP reviews goodwill for impairment annually and whenever events or changes in circumstances indicate the carrying amount of goodwill may not be recoverable. While HP is permitted to conduct a qualitative assessment to determine whether it is necessary to perform a two-step quantitative goodwill impairment test, for its annual goodwill impairment test in the fourth quarter of fiscal 2013, HP performed a quantitative test for all of its reporting units. | |
Goodwill is tested for impairment at the reporting unit level. Except for the Enterprise Group ("EG") and Enterprise Services ("ES"), HP's reporting units are consistent with the reportable segments identified in Note 18. The Enterprise Group includes two reporting units, which are Enterprise Servers, Storage and Networking ("ESSN") and Technology Services ("TS"). ES also consists of two reporting units, which are MphasiS Limited and the remainder of ES. In fiscal 2013, HP made two changes to our reporting units. HP identified MphasiS Limited as a reporting unit apart from the remainder of ES, and in connection with integration activities combined the Autonomy reporting unit with the legacy HP software business reporting unit. | |
In the first step of the impairment test, HP compares the fair value of each reporting unit to its carrying amount. HP estimates the fair value of its reporting units using a weighting of fair values derived most significantly from the income approach and to a lesser extent the market approach. Under the income approach, HP estimates the fair value of a reporting unit based on the present value of estimated future cash flows. HP bases cash flow projections on management's estimates of revenue growth rates and operating margins, taking into consideration industry and market conditions. HP bases the discount rate used on the weighted-average cost of capital adjusted for the relevant risk associated with business-specific characteristics and the uncertainty related to the reporting unit's ability to execute on the projected cash flows. Under the market approach, HP estimates fair value based on market multiples of revenue and earnings derived from comparable publicly-traded companies with similar operating and investment characteristics as the reporting unit. HP weights the fair value derived from the market approach up to 50% of the concluded reporting unit fair value depending on the level of comparability of these publicly-traded companies to the reporting unit. When market comparables are not meaningful or not available, HP estimates the fair value of a reporting unit using only the income approach. For the MphasiS Limited reporting unit, HP used the quoted market price in an active market to estimate fair value. | |
In order to assess the reasonableness of the estimated fair values of HP's reporting units, HP compares the aggregate reporting unit fair values to HP's market capitalization and calculates an implied control premium (the excess of the sum of the reporting units' fair values over HP's market capitalization). HP evaluates the control premium by comparing it to observable control premiums from recent comparable transactions. If the implied control premium is not believed to be reasonable in light of these recent transactions, HP reevaluates reporting unit fair values, which may result in an adjustment to the discount rate and/or other assumptions. This reevaluation could reduce the estimated fair value for certain or all reporting units. | |
If the fair value of the reporting unit exceeds the carrying amount of the net assets assigned to that reporting unit, goodwill is not impaired and no further testing is required. If the fair value of the reporting unit is less than its carrying amount, then HP must perform the second step of the impairment test to measure the amount of impairment loss, if any. In the second step, HP measures the reporting unit's assets, including any unrecognized intangible assets, liabilities and non-controlling interests at fair value in a hypothetical analysis to calculate the implied fair value of goodwill for the reporting unit. If the implied fair value of the reporting unit's goodwill is less than its carrying amount, the difference is recorded as an impairment loss. | |
Intangible Assets and Long-Lived Asset | ' |
HP reviews intangible assets with finite lives and long-lived assets for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. HP assesses recoverability of the assets based on the undiscounted future cash flows expected to result from the use of the asset and the eventual disposition of the asset. If the undiscounted future cash flows are less than the carrying amount, the asset is impaired. HP measures the amount of impairment loss, if any, as the difference between the carrying amount of the asset and its fair value using an income approach or, when available and appropriate, using a market approach. HP amortizes intangible assets with finite lives using the straight-line method over the estimated economic lives of the assets, ranging from one to ten years. | |
Retirement and Post-Retirement Plans | ' |
HP has various defined benefit, other contributory and noncontributory retirement and post-retirement plans. HP generally amortizes unrecognized actuarial gains and losses on a straight-line basis over the average remaining estimated service life of participants. In some cases, HP amortizes actuarial gains and losses using the corridor approach. See Note 15 for a full description of these plans and the accounting and funding policies. | |
Taxes on Earnings | ' |
HP recognizes deferred tax assets and liabilities for the expected tax consequences of temporary differences between the tax bases of assets and liabilities and their reported amounts using enacted tax rates in effect for the year the differences are expected to reverse. HP records a valuation allowance to reduce the deferred tax assets to the amount that is more likely than not to be realized. | |
HP records accruals for uncertain tax positions when HP believes that it is not more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. HP makes adjustments to these accruals when facts and circumstances change, such as the closing of a tax audit or the refinement of an estimate. The provision for income taxes includes the effects of adjustments for uncertain tax positions, as well as the related net interest and penalties. | |
Concentrations of Credit Risk | ' |
Financial instruments that potentially subject HP to significant concentrations of credit risk consist principally of cash and cash equivalents, investments, accounts receivable from trade customers and contract manufacturers, financing receivables and derivatives. | |
HP maintains cash and cash equivalents, investments, derivatives and certain other financial instruments with various financial institutions. These financial institutions are located in many different geographical regions, and HP's policy is designed to limit exposure to any one institution. As part of its risk management processes, HP performs periodic evaluations of the relative credit standing of the financial institutions. HP has not sustained material credit losses from instruments held at financial institutions. HP utilizes derivative contracts to protect against the effects of foreign currency and interest rate exposures. Such contracts involve the risk of non-performance by the counterparty, which could result in a material loss. | |
HP sells a significant portion of its products through third-party distributors and resellers and, as a result, maintains individually significant receivable balances with these parties. If the financial condition or operations of all of these distributors' and resellers' aggregated accounts deteriorate substantially, HP's operating results could be adversely affected. The ten largest distributor and reseller receivable balances, which were concentrated primarily in North America and Europe, collectively represented approximately 21% and 14% of gross accounts receivable at October 31, 2013 and 2012, respectively. No single customer accounts for more than 10% of accounts receivable. Credit risk with respect to other accounts receivable and financing receivables is generally diversified due to the large number of entities comprising HP's customer base and their dispersion across many different industries and geographical regions. HP performs ongoing credit evaluations of the financial condition of its third-party distributors, resellers and other customers and requires collateral, such as letters of credit and bank guarantees, in certain circumstances. | |
HP utilizes outsourced manufacturers around the world to manufacture HP-designed products. HP may purchase product components from suppliers and sell those components to its outsourced manufacturers creating receivable balances from the outsourced manufacturers. The three largest outsourced manufacturer receivable balances represented approximately 82% and 69% of HP's supplier receivables of $1.0 billion and $1.2 billion at October 31, 2013 and 2012, respectively. HP includes the supplier receivables in Other current assets in the Consolidated Balance Sheets. HP's credit risk associated with these receivables is partially mitigated by the amounts HP owes to these outsourced manufacturers, as HP generally has the legal right to offset its payables to the outsourced manufacturers against these receivables. HP does not reflect the sale of these components in revenue and does not recognize any profits on these sales until the related products are sold by HP, at which time any profit is recognized as a reduction to cost of sales. | |
Other Concentration | ' |
HP obtains a significant number of components from single source suppliers due to technology, availability, price, quality or other considerations. The loss of a single source supplier, the deterioration of HP's relationship with a single source supplier, or any unilateral modification to the contractual terms under which HP is supplied components by a single source supplier could adversely affect HP's revenue and gross margins. | |
Loss Contingencies | ' |
HP is involved in various lawsuits, claims, investigations and proceedings that arise in the ordinary course of business. HP records a liability when it believes it is both probable that a liability has been incurred and the amount of loss can be reasonably estimated. See Note 17 for a full description of HP's loss contingencies and related accounting policies. | |
Accounting Pronouncements | ' |
In July 2013, the Financial Accounting Standards Board ("FASB") issued a new accounting standard that will require the presentation of certain unrecognized tax benefits as reductions to deferred tax assets rather than as liabilities in the Consolidated Balance Sheets when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. HP will be required to adopt this new standard on a prospective basis in the first quarter of fiscal 2015; however, early adoption is permitted as is a retrospective application. HP is currently evaluating the timing, transition method and impact of this new standard on its Consolidated Financial Statements. | |
In July 2013, the FASB issued guidance which will permit the Fed Funds Effective Swap Rate (or Overnight Index Swap Rate) to be used as a U.S. benchmark interest rate for hedge accounting purposes. The guidance also removes the restriction on using different benchmark rates for similar hedges. The guidance is effective prospectively for qualifying new or redesignated hedging relationships entered into on or after July 17, 2013. The adoption of this guidance did not have any effect on HP's Consolidated Financial Statements. | |
Transfers and Servicing Trade Receivables Policy | ' |
HP has third-party financing arrangements consisting of revolving short-term financing intended to facilitate the working capital requirements of certain customers. These financing arrangements, which in one case provides for partial recourse, result in a transfer of HP's trade receivables and risk to the third party. As these transfers qualify for sales accounting treatment, the trade receivables are derecognized from the Consolidated Balance Sheets upon transfer, and HP receives a payment for the trade receivables from the third party within a mutually agreed upon time period. For the arrangement 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 Balance Sheets. | |
Fair Value Policy | ' |
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 | |
Valuation techniques used by HP are based upon observable and unobservable inputs. Observable or market inputs reflect market data obtained from independent sources, while unobservable inputs reflect HP's assumptions about market participant assumptions based on the best information available. 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 in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | |
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 instruments were based on quoted market prices or model driven valuations using inputs primarily derived from or corroborated by observable market data, and in certain instances internally developed valuation models that utilize assumptions which cannot be corroborated with observable market data. | |
Derivative Instruments: As discussed in Note 9, HP mainly holds non-speculative forwards, swaps and options to hedge certain foreign currency and interest rate exposures. When prices in active markets are not available for the identical asset or liability, 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. | |
Other Fair Value Disclosures | |
Short- and Long-Term Debt: HP calculates the estimated fair value of its debt primarily using an expected present value technique which is based upon observable market inputs using interest rates currently available to companies of similar credit standing for similar terms and remaining maturities and considers HP's own credit risk. The portion of HP's fixed-rate debt obligations that is hedged is reflected in the Consolidated Balance Sheets as an amount equal to the debt's carrying amount, which includes a fair value adjustment representing changes in the fair value of the hedged debt obligations arising from movements in benchmark interest rates. | |
Receivables Financing Allowance and Reserves Policy | ' |
The allowance for doubtful accounts is comprised of a general reserve and a specific reserve. HP maintains general reserve percentages on a regional basis and bases such percentages on several factors, including consideration of historical credit losses and portfolio delinquencies, trends in the overall weighted-average risk rating of the portfolio, current economic conditions and information derived from competitive benchmarking. HP excludes accounts evaluated as part of the specific reserve from the general reserve analysis. HP establishes a specific reserve for leases with identified exposures, such as customer defaults, bankruptcy or other events, that make it unlikely that HP will recover its investment in the lease. For individually evaluated receivables, HP determines the expected cash flow for the receivable, which includes consideration of estimated proceeds from disposition of the collateral, and calculates an estimate of the potential loss and the probability of loss. For those accounts where a loss is probable, HP records a specific reserve. HP generally records a write-off or specific reserve when an account reaches 180 days past due, or sooner if HP determines that the account is not collectible. | |
Financing Receivables, Non-Accrual and Past Due Status Policy | ' |
HP considers a financing receivable to be past due when the minimum payment is not received by the contractually specified due date. HP generally places financing receivables on non-accrual status (suspension of interest accrual) and considers such receivables to be non-performing at the earlier of the time at which full payment of principal and interest becomes doubtful or the receivable becomes contractually 90 days past due. Subsequently, HP may recognize revenue on non-accrual financing receivables as payments are received (i.e., on a cash basis) if HP deems the recorded financing receivable to be fully collectible; however, if there is doubt regarding the ultimate collectability of the recorded financing receivable, HP applies all cash receipts to reduce the carrying amount of the financing receivable (i.e., the cost recovery method). In certain circumstances, such as when HP deems a delinquency to be of an administrative nature, financing receivables may accrue interest after they reach 90 days past due. The non-accrual status of a financing receivable may not impact a customer's risk rating. After all of a customer's delinquent principal and interest balances are settled, HP may return the related financing receivable to accrual status. | |
Warranty Policy | ' |
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, ongoing product failure rates, as well as specific product class failures outside of HP's baseline experience, affect the estimated warranty obligation. | |
Fair Value Of Pension Plan Assets Policy | ' |
Investments in publicly-traded equity securities are valued using the closing price on the measurement date as reported on the stock exchange on which the individual securities are traded. For corporate, government and asset-backed debt securities, fair value is based upon observable inputs of comparable market transactions. For corporate and government debt securities traded on active exchanges, fair value is based upon observable quoted prices. The valuation of alternative investments, such as limited partnerships and joint ventures, may require significant management judgment. For alternative investments, valuation is based on net asset value ("NAV") as reported by the asset manager and is adjusted when management determines that NAV is not representative of fair value. In making such an assessment, a variety of factors are reviewed by management, including, but not limited to, the timeliness of NAV as reported by the asset manager and changes in general economic and market conditions subsequent to the last NAV reported by the asset manager. Depending on the amount of management judgment, the lack of near-term liquidity, and the absence of quoted market prices, these assets are classified in Level 2 or Level 3 of the fair value hierarchy. Further, depending on how quickly HP can redeem its hedge fund investments, and the extent of any adjustments to NAV, hedge funds are classified within either Level 2 or Level 3 of the fair value hierarchy. Common collective trusts, interest in 103-12 entities and registered investment companies are valued at NAV. The valuation for some of these assets requires judgment due to the absence of quoted market prices, and these assets are generally classified in Level 2 of the fair value hierarchy. Cash and cash equivalents includes money market funds, which are valued based on NAV. Other assets were classified in the fair value hierarchy based on the lowest level input (e.g., quoted prices and observable inputs) that is significant to the fair value measure in its entirety. | |
Litigation and Contingencies Policy | ' |
HP is involved in lawsuits, claims, investigations and proceedings, including those identified below, consisting of intellectual property, commercial, securities, employment, employee benefits and environmental matters that arise in the ordinary course of business. HP accrues a liability when management believes that it is both probable that a liability has been incurred and the amount of loss can be reasonably estimated. HP believes it has recorded adequate provisions for any such matters, and, as of October 31, 2013, it was not reasonably possible that an additional material loss had been incurred in an amount in excess of the amounts already 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. 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 that 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. | |
Segment Reporting Policy | ' |
HP derives the results of the business segments directly from its internal management reporting system. The accounting policies HP uses to derive business segment results are substantially the same as those the consolidated company uses. Management measures the performance of each business segment based on several metrics, including earnings from operations. Management uses these results, in part, to evaluate the performance of, and to assign resources to, each of the business segments. HP does not allocate to its business segments certain operating expenses, which it manages separately at the corporate level. These unallocated costs include restructuring charges, amortization of intangible assets, impairment of goodwill and intangible assets, certain stock-based compensation expense and acquisition-related charges, as well as certain corporate governance costs. |
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||||||||
Oct. 31, 2013 | ||||||||||||||||||||||||||||||||||||||
Share-based compensation | ' | |||||||||||||||||||||||||||||||||||||
Schedule of stock based compensation expense and the resulting tax benefits | ' | |||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | $ | 500 | $ | 635 | $ | 685 | ||||||||||||||||||||||||||||||||
Income tax benefit | (158 | ) | (197 | ) | (219 | ) | ||||||||||||||||||||||||||||||||
Stock-based compensation expense, net of tax | $ | 342 | $ | 438 | $ | 466 | ||||||||||||||||||||||||||||||||
Schedule of changes in non-vested restricted stock awards | ' | |||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||||||||
Shares | Weighted- | Shares | Weighted- | Shares | Weighted- | |||||||||||||||||||||||||||||||||
Average Grant | Average Grant | Average Grant | ||||||||||||||||||||||||||||||||||||
Date Fair Value | Date Fair Value | Date Fair Value | ||||||||||||||||||||||||||||||||||||
Per Share | Per Share | Per Share | ||||||||||||||||||||||||||||||||||||
In thousands | In thousands | In thousands | ||||||||||||||||||||||||||||||||||||
Outstanding at beginning of year | 25,532 | $ | 31 | 16,813 | $ | 39 | 5,848 | $ | 45 | |||||||||||||||||||||||||||||
Granted | 20,707 | $ | 15 | 20,316 | $ | 27 | 17,569 | $ | 38 | |||||||||||||||||||||||||||||
Vested | (10,966 | ) | $ | 33 | (8,521 | ) | $ | 38 | (5,660 | ) | $ | 41 | ||||||||||||||||||||||||||
Forfeited | (3,011 | ) | $ | 24 | (3,076 | ) | $ | 34 | (944 | ) | $ | 43 | ||||||||||||||||||||||||||
Outstanding at end of year | 32,262 | $ | 21 | 25,532 | $ | 31 | 16,813 | $ | 39 | |||||||||||||||||||||||||||||
Schedule of changes in non-vested PRUs | ' | |||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||||||||
Shares in thousands | ||||||||||||||||||||||||||||||||||||||
Outstanding Target Shares at beginning of year | 5,688 | 11,382 | 18,508 | |||||||||||||||||||||||||||||||||||
Granted | — | 1,251 | 5,950 | |||||||||||||||||||||||||||||||||||
Change in units due to performance and market conditions achievement for PRUs vested in the year(1) | (4,307 | ) | (5,617 | ) | (10,862 | ) | ||||||||||||||||||||||||||||||||
Forfeited | (356 | ) | (1,328 | ) | (2,214 | ) | ||||||||||||||||||||||||||||||||
Outstanding Target Shares at end of year | 1,025 | 5,688 | 11,382 | |||||||||||||||||||||||||||||||||||
Outstanding Target Shares of PRUs assigned a fair value at end of year | 690 | -2 | 3,492 | -3 | 5,867 | -4 | ||||||||||||||||||||||||||||||||
-1 | ||||||||||||||||||||||||||||||||||||||
The minimum level of TSR was not met for PRUs granted in fiscal 2011, 2010 and 2009, which resulted in the cancellation of Target Shares. | ||||||||||||||||||||||||||||||||||||||
-2 | ||||||||||||||||||||||||||||||||||||||
Excludes Target Shares for the third year for PRUs granted in fiscal 2012 as the measurement date had not yet been established. The measurement date and related fair value for the excluded PRUs will be established when the annual performance goals are approved. | ||||||||||||||||||||||||||||||||||||||
-3 | ||||||||||||||||||||||||||||||||||||||
Excludes Target Shares for the third year for PRUs granted in fiscal 2011 and for the second and third years for PRUs granted in fiscal 2012 as the measurement dates had not yet been established. | ||||||||||||||||||||||||||||||||||||||
-4 | ||||||||||||||||||||||||||||||||||||||
Excludes Target Shares for the third year for PRUs granted in fiscal 2010 and for the second and third years for PRUs granted in fiscal 2011 as the measurement dates had not yet been established. | ||||||||||||||||||||||||||||||||||||||
Schedule of shares available for future grant and shares reserved for future issuance under the ESPP and incentive compensation plans | ' | |||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||||||||
Shares in thousands | ||||||||||||||||||||||||||||||||||||||
Shares available for future grant at October 31 | 300,984 | 152,837 | 172,259 | |||||||||||||||||||||||||||||||||||
Shares reserved for future issuance under all stock-related benefit plans at October 31 | 417,642 | 270,498 | 319,602 | |||||||||||||||||||||||||||||||||||
Stock Options | ' | |||||||||||||||||||||||||||||||||||||
Share-based compensation | ' | |||||||||||||||||||||||||||||||||||||
Schedule of weighted-average fair value and the assumptions used to measure fair value | ' | |||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||||||||
Weighted-average fair value of grants per option(1) | $ | 4.26 | $ | 9.06 | $ | 7.85 | ||||||||||||||||||||||||||||||||
Expected volatility(2) | 42 | % | 42 | % | 41 | % | ||||||||||||||||||||||||||||||||
Risk-free interest rate(3) | 1.07 | % | 1.17 | % | 1.2 | % | ||||||||||||||||||||||||||||||||
Expected dividend yield(4) | 3.64 | % | 1.83 | % | 1.97 | % | ||||||||||||||||||||||||||||||||
Expected term in months(5) | 71 | 67 | 63 | |||||||||||||||||||||||||||||||||||
-1 | ||||||||||||||||||||||||||||||||||||||
The fair value calculation was based on stock options granted during the period. | ||||||||||||||||||||||||||||||||||||||
-2 | ||||||||||||||||||||||||||||||||||||||
Determined using implied volatility from traded options on HP's stock. | ||||||||||||||||||||||||||||||||||||||
-3 | ||||||||||||||||||||||||||||||||||||||
Determined using the yield on U.S. Treasury zero-coupon issues. | ||||||||||||||||||||||||||||||||||||||
-4 | ||||||||||||||||||||||||||||||||||||||
Determined using a constant dividend yield during the expected term of the option. | ||||||||||||||||||||||||||||||||||||||
-5 | ||||||||||||||||||||||||||||||||||||||
Determined using historical exercise and post-vesting termination patterns. | ||||||||||||||||||||||||||||||||||||||
Schedule of changes in option awards outstanding | ' | |||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||||||||
Shares | Weighted- | Weighted- | Aggregate | Shares | Weighted- | Weighted- | Aggregate | Shares | Weighted- | Weighted- | Aggregate | |||||||||||||||||||||||||||
Average | Average | Intrinsic | Average | Average | Intrinsic | Average | Average | Intrinsic | ||||||||||||||||||||||||||||||
Exercise | Remaining | Value | Exercise | Remaining | Value | Exercise | Remaining | Value | ||||||||||||||||||||||||||||||
Price | Contractual | Price | Contractual | Price | Contractual | |||||||||||||||||||||||||||||||||
Term | Term | Term | ||||||||||||||||||||||||||||||||||||
In thousands | In years | In millions | In thousands | In years | In millions | In thousands | In years | In millions | ||||||||||||||||||||||||||||||
Outstanding at beginning of year | 87,296 | $ | 29 | 120,243 | $ | 28 | 142,916 | $ | 28 | |||||||||||||||||||||||||||||
Granted(1) | 25,785 | $ | 15 | 7,529 | $ | 27 | 18,804 | $ | 21 | |||||||||||||||||||||||||||||
Exercised | (10,063 | ) | $ | 19 | (29,683 | ) | $ | 20 | (37,121 | ) | $ | 23 | ||||||||||||||||||||||||||
Forfeited/cancelled/expired | (18,976 | ) | $ | 25 | (10,793 | ) | $ | 35 | (4,356 | ) | $ | 39 | ||||||||||||||||||||||||||
Outstanding at end of year | 84,042 | $ | 27 | 3.9 | $ | 303 | 87,296 | $ | 29 | 3 | $ | 15 | 120,243 | $ | 28 | 3 | $ | 460 | ||||||||||||||||||||
Vested and expected to vest at end of year | 80,004 | $ | 27 | 3.7 | $ | 274 | 85,935 | $ | 29 | 2.9 | $ | 15 | 117,066 | $ | 28 | 2.9 | $ | 442 | ||||||||||||||||||||
Exercisable at end of year | 49,825 | $ | 33 | 1.8 | $ | 58 | 68,437 | $ | 31 | 1.9 | $ | 12 | 97,967 | $ | 29 | 2 | $ | 332 | ||||||||||||||||||||
-1 | ||||||||||||||||||||||||||||||||||||||
In connection with fiscal 2011 acquisitions, HP assumed options to purchase approximately 6 million shares with a weighted-average exercise price of $14 per share. | ||||||||||||||||||||||||||||||||||||||
Schedule of information about options outstanding | ' | |||||||||||||||||||||||||||||||||||||
Information about options outstanding at October 31, 2013 was as follows: | ||||||||||||||||||||||||||||||||||||||
Options Outstanding | ||||||||||||||||||||||||||||||||||||||
Options Exercisable | ||||||||||||||||||||||||||||||||||||||
Weighted- | ||||||||||||||||||||||||||||||||||||||
Average | ||||||||||||||||||||||||||||||||||||||
Remaining | ||||||||||||||||||||||||||||||||||||||
Contractual | ||||||||||||||||||||||||||||||||||||||
Range of Exercise Prices | Shares | Life | Weighted- | Shares | Weighted- | |||||||||||||||||||||||||||||||||
Outstanding | Average | Exercisable | Average | |||||||||||||||||||||||||||||||||||
Exercise | Exercise | |||||||||||||||||||||||||||||||||||||
Price | Price | |||||||||||||||||||||||||||||||||||||
In thousands | In years | In thousands | ||||||||||||||||||||||||||||||||||||
$0-$9.99 | 616 | 4.3 | $ | 7 | 595 | $ | 7 | |||||||||||||||||||||||||||||||
$10-$19.99 | 27,161 | 6.7 | $ | 14 | 3,991 | $ | 14 | |||||||||||||||||||||||||||||||
$20-$29.99 | 18,906 | 5.6 | $ | 25 | 8,204 | $ | 25 | |||||||||||||||||||||||||||||||
$30-$39.99 | 20,018 | 0.5 | $ | 32 | 19,940 | $ | 32 | |||||||||||||||||||||||||||||||
$40-$49.99 | 16,422 | 1.4 | $ | 43 | 16,263 | $ | 43 | |||||||||||||||||||||||||||||||
$50-$59.99 | 667 | 3.2 | $ | 52 | 580 | $ | 52 | |||||||||||||||||||||||||||||||
$60 and over | 252 | 0.7 | $ | 73 | 252 | $ | 73 | |||||||||||||||||||||||||||||||
84,042 | 3.9 | $ | 27 | 49,825 | $ | 33 | ||||||||||||||||||||||||||||||||
PRUs | ' | |||||||||||||||||||||||||||||||||||||
Share-based compensation | ' | |||||||||||||||||||||||||||||||||||||
Schedule of weighted-average fair value and the assumptions used to measure fair value | ' | |||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||||||||
Weighted-average fair value of grants per unit | $ | 0 | -1 | $ | 3.35 | -2 | $ | 27.59 | -3 | |||||||||||||||||||||||||||||
Expected volatility(4) | 33 | % | 41 | % | 30 | % | ||||||||||||||||||||||||||||||||
Risk-free interest rate | 0.18 | % | 0.14 | % | 0.38 | % | ||||||||||||||||||||||||||||||||
Expected dividend yield | 3.94 | % | 1.78 | % | 0.75 | % | ||||||||||||||||||||||||||||||||
Expected term in months | 12 | 15 | 19 | |||||||||||||||||||||||||||||||||||
-1 | ||||||||||||||||||||||||||||||||||||||
Reflects the weighted-average fair value for the third year of the three-year performance period applicable to PRUs granted in fiscal 2011. The weighted-average fair value per unit is zero based on the result of the Monte-Carlo simulation model using the weighted-average assumptions on the measurement date. | ||||||||||||||||||||||||||||||||||||||
-2 | ||||||||||||||||||||||||||||||||||||||
Reflects the weighted-average fair value for the third year of the three-year performance period applicable to PRUs granted in fiscal 2010 and for the second year of the three-year performance period applicable to PRUs granted in fiscal 2011. | ||||||||||||||||||||||||||||||||||||||
-3 | ||||||||||||||||||||||||||||||||||||||
Reflects the weighted-average fair value for the third year of the three-year performance period applicable to PRUs granted in fiscal 2009, for the second year of the three-year performance period applicable to PRUs granted in fiscal 2010 and for the first year of the three-year performance period applicable to PRUs granted in fiscal 2011. | ||||||||||||||||||||||||||||||||||||||
-4 | ||||||||||||||||||||||||||||||||||||||
HP uses historic volatility for PRU awards when simulating multivariate prices for companies in the S&P 500. | ||||||||||||||||||||||||||||||||||||||
Schedule of weighted-average fair value for PRU awards granted in fiscal year 2012 | ' | |||||||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||||||||
Weighted-average fair value of grants per unit | $ | 13.14 | -1 | $ | 27 | -2 | ||||||||||||||||||||||||||||||||
-1 | ||||||||||||||||||||||||||||||||||||||
Reflects the weighted-average fair value for the second year of the three-year performance period applicable to PRUs granted in fiscal 2012. The estimated fair value of the Target Shares for the third year for PRUs granted in fiscal year 2012 will be determined on the measurement date applicable to those PRUs, which will occur during the period that the annual performance goals are approved for those PRUs, and the expense will be amortized over the remainder of the applicable three-year performance period. | ||||||||||||||||||||||||||||||||||||||
-2 | ||||||||||||||||||||||||||||||||||||||
Reflects the weighted-average fair value for the first year of the three-year performance period applicable to PRUs granted in fiscal 2012. | ||||||||||||||||||||||||||||||||||||||
Net_Earnings_Per_Share_Tables
Net Earnings Per Share (Tables) | 12 Months Ended | ||||||||||
Oct. 31, 2013 | |||||||||||
Net Earnings Per Share | ' | ||||||||||
Basic and diluted net EPS calculations | ' | ||||||||||
2013 | 2012 | 2011 | |||||||||
In millions, except per share | |||||||||||
amounts | |||||||||||
Numerator: | |||||||||||
Net earnings (loss)(1) | $ | 5,113 | $ | (12,650 | ) | $ | 7,074 | ||||
Denominator: | |||||||||||
Weighted-average shares used to compute basic EPS | 1,934 | 1,974 | 2,094 | ||||||||
Dilutive effect of employee stock plans | 16 | — | 34 | ||||||||
Weighted-average shares used to compute diluted EPS | 1,950 | 1,974 | 2,128 | ||||||||
Net earnings (loss) per share: | |||||||||||
Basic | $ | 2.64 | $ | (6.41 | ) | $ | 3.38 | ||||
Diluted(2) | $ | 2.62 | $ | (6.41 | ) | $ | 3.32 | ||||
-1 | |||||||||||
Net earnings (loss) available to participating securities were not significant for fiscal 2013, 2012 and 2011. HP considers restricted stock that provides the holder with a non-forfeitable right to receive dividends to be a participating security. | |||||||||||
-2 | |||||||||||
For fiscal 2012, HP excluded from the calculation of diluted net loss per share 10 million shares potentially issuable under employee stock plans, as their effect, if included, would have been anti-dilutive. | |||||||||||
Balance_Sheet_Details_Tables
Balance Sheet Details (Tables) | 12 Months Ended | ||||||||||
Oct. 31, 2013 | |||||||||||
Balance Sheet Details | ' | ||||||||||
Accounts Receivable, Net | ' | ||||||||||
2013 | 2012 | 2011 | |||||||||
In millions | |||||||||||
Accounts receivable, gross | $ | 16,208 | $ | 16,871 | $ | 18,694 | |||||
Less: Allowance for doubtful accounts | |||||||||||
Balance at beginning of year | 464 | 470 | 525 | ||||||||
Increase in allowance from acquisitions | — | — | 27 | ||||||||
Provision for doubtful accounts | 23 | 100 | 23 | ||||||||
Deductions, net of recoveries | (155 | ) | (106 | ) | (105 | ) | |||||
Balance at end of year | 332 | 464 | 470 | ||||||||
Accounts receivable, net | $ | 15,876 | $ | 16,407 | $ | 18,224 | |||||
Schedule of maximum program capacity and available program capacity under financing arrangements | ' | ||||||||||
2013 | 2012 | ||||||||||
In millions | |||||||||||
Non-recourse arrangements | |||||||||||
Aggregate maximum program capacity | $ | 764 | $ | 636 | |||||||
Aggregate available capacity | $ | 450 | $ | 434 | |||||||
Aggregate utilized capacity | $ | 314 | $ | 202 | |||||||
Partial-recourse arrangement | |||||||||||
Maximum program capacity | $ | 631 | $ | 876 | |||||||
Available capacity | $ | 177 | $ | 413 | |||||||
Utilized capacity | $ | 454 | $ | 463 | |||||||
Total arrangements | |||||||||||
Aggregate maximum program capacity | $ | 1,395 | $ | 1,512 | |||||||
Aggregate available capacity | $ | 627 | $ | 847 | |||||||
Aggregate utilized capacity | $ | 768 | $ | 665 | |||||||
Inventory | ' | ||||||||||
2013 | 2012 | ||||||||||
In millions | |||||||||||
Finished goods | $ | 3,847 | $ | 4,094 | |||||||
Purchased parts and fabricated assemblies | 2,199 | 2,223 | |||||||||
$ | 6,046 | $ | 6,317 | ||||||||
Other Current Assets | ' | ||||||||||
2013 | 2012 | ||||||||||
In millions | |||||||||||
Deferred tax assets—short-term | $ | 3,893 | $ | 3,783 | |||||||
Value-added taxes receivable from various governments | 2,425 | 3,298 | |||||||||
Supplier and other receivables | 2,579 | 2,549 | |||||||||
Prepaid and other current assets | 4,238 | 3,730 | |||||||||
$ | 13,135 | $ | 13,360 | ||||||||
Property, Plant and Equipment | ' | ||||||||||
2013 | 2012 | ||||||||||
In millions | |||||||||||
Land | $ | 626 | $ | 636 | |||||||
Buildings and leasehold improvements | 8,942 | 8,744 | |||||||||
Machinery and equipment, including equipment held for lease | 16,565 | 16,503 | |||||||||
26,133 | 25,883 | ||||||||||
Accumulated depreciation | (14,670 | ) | (13,929 | ) | |||||||
$ | 11,463 | $ | 11,954 | ||||||||
Long-Term Financing Receivables and Other Assets | ' | ||||||||||
2013 | 2012 | ||||||||||
In millions | |||||||||||
Financing receivables, net | $ | 3,878 | $ | 4,292 | |||||||
Deferred tax assets—long-term | 1,346 | 1,581 | |||||||||
Deferred costs—long-term | 999 | 1,301 | |||||||||
Other | 3,333 | 3,419 | |||||||||
$ | 9,556 | $ | 10,593 | ||||||||
Other Accrued Liabilities | ' | ||||||||||
2013 | 2012 | ||||||||||
In millions | |||||||||||
Other accrued taxes | $ | 2,703 | $ | 3,264 | |||||||
Warranty | 1,390 | 1,496 | |||||||||
Sales and marketing programs | 2,823 | 2,900 | |||||||||
Other | 5,590 | 5,840 | |||||||||
$ | 12,506 | $ | 13,500 | ||||||||
Other Liabilities | ' | ||||||||||
2013 | 2012 | ||||||||||
In millions | |||||||||||
Pension, post-retirement, and post-employment liabilities | $ | 5,098 | $ | 7,780 | |||||||
Deferred tax liability—long-term | 2,668 | 2,948 | |||||||||
Long-term deferred revenue | 3,907 | 3,371 | |||||||||
Other long-term liabilities | 4,218 | 3,381 | |||||||||
$ | 15,891 | $ | 17,480 | ||||||||
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 12 Months Ended | |||||||||||||||||||||||||
Oct. 31, 2013 | ||||||||||||||||||||||||||
Goodwill and Intangible Assets | ' | |||||||||||||||||||||||||
Goodwill | ' | |||||||||||||||||||||||||
Personal | Printing | Enterprise | Enterprise | Software | HP | Corporate | Total | |||||||||||||||||||
Systems | Group | Services | Financial | Investments | ||||||||||||||||||||||
Services | ||||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||
Net balance at October 31, 2011(1) | $ | 2,498 | $ | 2,471 | $ | 17,349 | $ | 8,001 | $ | 14,063 | $ | 144 | $ | 25 | $ | 44,551 | ||||||||||
Goodwill acquired during the period | — | 16 | — | — | — | — | — | 16 | ||||||||||||||||||
Goodwill adjustments/reclassifications | — | — | (308 | ) | (40 | ) | 580 | — | (25 | ) | 207 | |||||||||||||||
Impairment loss | — | — | — | (7,961 | ) | (5,744 | ) | — | — | (13,705 | ) | |||||||||||||||
Net balance at October 31, 2012(2) | $ | 2,498 | $ | 2,487 | $ | 17,041 | $ | — | $ | 8,899 | $ | 144 | $ | — | $ | 31,069 | ||||||||||
Goodwill acquired during the period | — | — | — | 112 | — | — | — | 112 | ||||||||||||||||||
Goodwill adjustments/reclassifications | — | — | 39 | (15 | ) | (81 | ) | — | — | (57 | ) | |||||||||||||||
Impairment loss | — | — | — | — | — | — | — | — | ||||||||||||||||||
Net balance at October 31, 2013(2) | $ | 2,498 | $ | 2,487 | $ | 17,080 | (3) | $ | 97 | (4) | $ | 8,818 | $ | 144 | $ | — | $ | 31,124 | ||||||||
-1 | ||||||||||||||||||||||||||
Goodwill at October 31, 2011 is net of accumulated impairment losses of $813 million related to the Corporate Investments segment. | ||||||||||||||||||||||||||
-2 | ||||||||||||||||||||||||||
Goodwill at October 31, 2013 and October 31, 2012 is net of accumulated impairment losses of $14,518 million. Of that amount, $7,961 million relates to ES, $5,744 million relates to Software, and the remaining $813 million relates to Corporate Investments. | ||||||||||||||||||||||||||
-3 | ||||||||||||||||||||||||||
Goodwill at October 31, 2013 includes $9,280 million and $7,800 million related to the TS reporting unit and the ESSN reporting unit, respectively. | ||||||||||||||||||||||||||
-4 | ||||||||||||||||||||||||||
All goodwill at October 31, 2013 relates to the MphasiS reporting unit. | ||||||||||||||||||||||||||
Intangible Assets | ' | |||||||||||||||||||||||||
October 31, 2013 | October 31, 2012 | |||||||||||||||||||||||||
Gross | Accumulated | Accumulated | Net | Gross | Accumulated | Accumulated | Net | |||||||||||||||||||
Amortization | Impairment | Amortization | Impairment | |||||||||||||||||||||||
Loss | Loss | |||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||
Customer contracts, customer lists and distribution agreements | $ | 5,321 | $ | (2,709 | ) | $ | (856 | ) | $ | 1,756 | $ | 5,807 | $ | (2,625 | ) | $ | (856 | ) | $ | 2,326 | ||||||
Developed and core technology and patents | 5,331 | (1,966 | ) | (2,138 | ) | 1,227 | 6,580 | (2,501 | ) | (2,138 | ) | 1,941 | ||||||||||||||
Trade name and trade marks | 1,730 | (211 | ) | (1,336 | ) | 183 | 1,732 | (155 | ) | (1,336 | ) | 241 | ||||||||||||||
In-process research and development | 3 | — | — | 3 | 7 | — | — | 7 | ||||||||||||||||||
Total intangible assets | $ | 12,385 | $ | (4,886 | ) | $ | (4,330 | ) | $ | 3,169 | $ | 14,126 | $ | (5,281 | ) | $ | (4,330 | ) | $ | 4,515 | ||||||
Schedule of weighted-average useful lives of intangible assets at the time of acquisition | ' | |||||||||||||||||||||||||
Finite-Lived Intangible Assets | Weighted-Average | |||||||||||||||||||||||||
Useful Lives | ||||||||||||||||||||||||||
Customer contracts, customer lists and distribution agreements | 8 | |||||||||||||||||||||||||
Developed and core technology and patents | 7 | |||||||||||||||||||||||||
Trade name and trade marks | 7 | |||||||||||||||||||||||||
Estimated future amortization expense related to finite-lived purchased intangible assets | ' | |||||||||||||||||||||||||
Estimated future amortization expense related to finite-lived intangible assets at October 31, 2013 is as follows: | ||||||||||||||||||||||||||
Fiscal year: | In millions | |||||||||||||||||||||||||
2014 | $ | 1,060 | ||||||||||||||||||||||||
2015 | 871 | |||||||||||||||||||||||||
2016 | 646 | |||||||||||||||||||||||||
2017 | 230 | |||||||||||||||||||||||||
2018 | 145 | |||||||||||||||||||||||||
Thereafter | 214 | |||||||||||||||||||||||||
Total | $ | 3,166 | ||||||||||||||||||||||||
Restructuring_Tables
Restructuring (Tables) | 12 Months Ended | ||||||||||||||||||||||
Oct. 31, 2013 | |||||||||||||||||||||||
Restructuring | ' | ||||||||||||||||||||||
Summary of Restructuring Plans | ' | ||||||||||||||||||||||
As of October 31, 2013 | |||||||||||||||||||||||
Balance, | Fiscal | Cash | Other | Balance, | Total | Total | |||||||||||||||||
October 31, | Year 2013 | Payments | Adjustments | October 31, | Costs | Expected | |||||||||||||||||
2012 | Charges | and Non-Cash | 2013 | Incurred | Costs to Be | ||||||||||||||||||
Settlements | to Date | Incurred | |||||||||||||||||||||
In millions | |||||||||||||||||||||||
Fiscal 2012 Plan | |||||||||||||||||||||||
Severance and EER | $ | 597 | $ | 1,053 | $ | (701 | ) | $ | (4 | ) | $ | 945 | $ | 3,036 | $ | 3,500 | |||||||
Infrastructure and other | 11 | 141 | (112 | ) | — | 40 | 247 | 600 | |||||||||||||||
Total 2012 Plan | 608 | 1,194 | (813 | ) | (4 | ) | 985 | 3,283 | 4,100 | ||||||||||||||
Fiscal 2010 acquisitions | 10 | (10 | ) | — | — | — | 91 | 91 | |||||||||||||||
Fiscal 2010 ES Plan: | |||||||||||||||||||||||
Severance | 227 | (189 | ) | (36 | ) | 8 | 10 | 434 | 434 | ||||||||||||||
Infrastructure | 1 | — | — | — | 1 | 369 | 369 | ||||||||||||||||
Total ES Plan | 228 | (189 | ) | (36 | ) | 8 | 11 | 803 | 803 | ||||||||||||||
Fiscal 2008 HP/EDS Plan: | |||||||||||||||||||||||
Severance | — | — | — | — | — | 2,195 | 2,195 | ||||||||||||||||
Infrastructure | 181 | (5 | ) | (55 | ) | — | 121 | 1,070 | 1,074 | ||||||||||||||
Total HP/EDS Plan | 181 | (5 | ) | (55 | ) | — | 121 | 3,265 | 3,269 | ||||||||||||||
Total restructuring plans | $ | 1,027 | $ | 990 | $ | (904 | ) | $ | 4 | $ | 1,117 | $ | 7,442 | $ | 8,263 | ||||||||
Fair_Value_Tables
Fair Value (Tables) | 12 Months Ended | |||||||||||||||||||||||||
Oct. 31, 2013 | ||||||||||||||||||||||||||
Fair Value | ' | |||||||||||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | ' | |||||||||||||||||||||||||
As of October 31, 2013 | As of October 31, 2012 | |||||||||||||||||||||||||
Fair Value | Fair Value | |||||||||||||||||||||||||
Measured Using | Total | Measured Using | Total | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Balance | Level 1 | Level 2 | Level 3 | Balance | |||||||||||||||||||
In millions | ||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||
Time deposits | $ | — | $ | 2,221 | $ | — | $ | 2,221 | $ | — | $ | 3,641 | $ | — | $ | 3,641 | ||||||||||
Money market funds | 6,819 | — | — | 6,819 | 4,630 | — | — | 4,630 | ||||||||||||||||||
Mutual funds | — | 313 | — | 313 | — | 469 | — | 469 | ||||||||||||||||||
Marketable equity securities | 10 | 5 | — | 15 | 60 | 3 | — | 63 | ||||||||||||||||||
Foreign bonds | 9 | 387 | — | 396 | 8 | 377 | — | 385 | ||||||||||||||||||
Other debt securities | — | 2 | 47 | 49 | 1 | — | 55 | 56 | ||||||||||||||||||
Derivatives: | ||||||||||||||||||||||||||
Interest rate contracts | — | 156 | — | 156 | — | 344 | — | 344 | ||||||||||||||||||
Foreign exchange contracts | — | 284 | 3 | 287 | — | 291 | — | 291 | ||||||||||||||||||
Other derivatives | — | 9 | — | 9 | — | 1 | — | 1 | ||||||||||||||||||
Total Assets | $ | 6,838 | $ | 3,377 | $ | 50 | $ | 10,265 | $ | 4,699 | $ | 5,126 | $ | 55 | $ | 9,880 | ||||||||||
Liabilities | ||||||||||||||||||||||||||
Derivatives: | ||||||||||||||||||||||||||
Interest rate contracts | $ | — | $ | 107 | $ | — | $ | 107 | $ | — | $ | 29 | $ | — | $ | 29 | ||||||||||
Foreign exchange contracts | — | 547 | 2 | 549 | — | 485 | 1 | 486 | ||||||||||||||||||
Other derivatives | — | — | — | — | — | 3 | — | 3 | ||||||||||||||||||
Total Liabilities | $ | — | $ | 654 | $ | 2 | $ | 656 | $ | — | $ | 517 | $ | 1 | $ | 518 | ||||||||||
Financial_Instruments_Tables
Financial Instruments (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||
Oct. 31, 2013 | ||||||||||||||||||||||||||||||||
Financial Instruments | ' | |||||||||||||||||||||||||||||||
Schedule of cash equivalents and available-for-sale investments | ' | |||||||||||||||||||||||||||||||
October 31, 2013 | October 31, 2012 | |||||||||||||||||||||||||||||||
Cost | Gross | Gross | Fair | Cost | Gross | Gross | Fair | |||||||||||||||||||||||||
Unrealized | Unrealized | Value | Unrealized | Unrealized | Value | |||||||||||||||||||||||||||
Gain | Loss | Gain | Loss | |||||||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||||||||
Cash Equivalents | ||||||||||||||||||||||||||||||||
Time deposits | $ | 2,207 | $ | — | $ | — | $ | 2,207 | $ | 3,633 | $ | — | $ | — | $ | 3,633 | ||||||||||||||||
Money market funds | 6,819 | — | — | 6,819 | 4,630 | — | — | 4,630 | ||||||||||||||||||||||||
Mutual funds | 13 | — | — | 13 | 69 | — | — | 69 | ||||||||||||||||||||||||
Total cash equivalents | 9,039 | — | — | 9,039 | 8,332 | — | — | 8,332 | ||||||||||||||||||||||||
Available-for-Sale Investments | ||||||||||||||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||||||||||
Time deposits | 14 | — | — | 14 | 8 | — | — | 8 | ||||||||||||||||||||||||
Foreign bonds | 310 | 86 | — | 396 | 303 | 82 | — | 385 | ||||||||||||||||||||||||
Other debt securities | 64 | — | (15 | ) | 49 | 73 | — | (17 | ) | 56 | ||||||||||||||||||||||
Total debt securities | 388 | 86 | (15 | ) | 459 | 384 | 82 | (17 | ) | 449 | ||||||||||||||||||||||
Equity securities: | ||||||||||||||||||||||||||||||||
Mutual funds | 300 | — | — | 300 | 400 | — | — | 400 | ||||||||||||||||||||||||
Equity securities in public companies | 5 | 6 | — | 11 | 50 | 9 | — | 59 | ||||||||||||||||||||||||
Total equity securities | 305 | 6 | — | 311 | 450 | 9 | — | 459 | ||||||||||||||||||||||||
Total available-for-sale investments | 693 | 92 | (15 | ) | 770 | 834 | 91 | (17 | ) | 908 | ||||||||||||||||||||||
Total cash equivalents and available-for-sale investments | $ | 9,732 | $ | 92 | $ | (15 | ) | $ | 9,809 | $ | 9,166 | $ | 91 | $ | (17 | ) | $ | 9,240 | ||||||||||||||
Schedule of contractual maturities of short-term and long-term investments in available-for-sale debt securities | ' | |||||||||||||||||||||||||||||||
October 31, 2013 | ||||||||||||||||||||||||||||||||
Cost | Fair Value | |||||||||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||||||||
Due in one to five years | $ | 16 | $ | 16 | ||||||||||||||||||||||||||||
Due in more than five years | 372 | 443 | ||||||||||||||||||||||||||||||
$ | 388 | $ | 459 | |||||||||||||||||||||||||||||
Schedule of gross notional and fair value of derivative financial instruments in the Consolidated Balance Sheets | ' | |||||||||||||||||||||||||||||||
As of October 31, 2013 | As of October 31, 2012 | |||||||||||||||||||||||||||||||
Gross | Other | Long-Term | Other | Long-Term | Gross | Other | Long-Term | Other | Long-Term | |||||||||||||||||||||||
Notional(1) | Current | Financing | Accrued | Other | Notional(1) | Current | Financing | Accrued | Other | |||||||||||||||||||||||
Assets | Receivables | Liabilities | Liabilities | Assets | Receivables | Liabilities | Liabilities | |||||||||||||||||||||||||
and Other | and Other | |||||||||||||||||||||||||||||||
Assets | Assets | |||||||||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||||||||
Derivatives designated as hedging instruments | ||||||||||||||||||||||||||||||||
Fair value hedges: | ||||||||||||||||||||||||||||||||
Interest rate contracts | $ | 11,100 | $ | 31 | $ | 125 | $ | — | $ | 107 | $ | 7,900 | $ | 43 | $ | 276 | $ | — | $ | — | ||||||||||||
Cash flow hedges: | ||||||||||||||||||||||||||||||||
Foreign exchange contracts | 22,463 | 79 | 40 | 341 | 80 | 19,409 | 160 | 24 | 277 | 79 | ||||||||||||||||||||||
Net investment hedges: | ||||||||||||||||||||||||||||||||
Foreign exchange contracts | 1,920 | 30 | 40 | 20 | 12 | 1,683 | 14 | 15 | 36 | 24 | ||||||||||||||||||||||
Total derivatives designated as hedging instruments | 35,483 | 140 | 205 | 361 | 199 | 28,992 | 217 | 315 | 313 | 103 | ||||||||||||||||||||||
Derivatives not designated as hedging instruments | ||||||||||||||||||||||||||||||||
Foreign exchange contracts | 16,048 | 72 | 26 | 76 | 20 | 18,687 | 61 | 17 | 51 | 19 | ||||||||||||||||||||||
Interest rate contracts(2) | — | — | — | — | — | 2,200 | 25 | — | 29 | — | ||||||||||||||||||||||
Other derivatives | 344 | 8 | 1 | — | — | 383 | 1 | — | 3 | — | ||||||||||||||||||||||
Total derivatives not designated as hedging instruments | 16,392 | 80 | 27 | 76 | 20 | 21,270 | 87 | 17 | 83 | 19 | ||||||||||||||||||||||
Total derivatives | $ | 51,875 | $ | 220 | $ | 232 | $ | 437 | $ | 219 | $ | 50,262 | $ | 304 | $ | 332 | $ | 396 | $ | 122 | ||||||||||||
-1 | ||||||||||||||||||||||||||||||||
Represents the face amounts of contracts that were outstanding as of October 31, 2013 and October 31, 2012, respectively. | ||||||||||||||||||||||||||||||||
-2 | ||||||||||||||||||||||||||||||||
Represents offsetting swaps acquired through previous business combinations that were not designated as hedging instruments. | ||||||||||||||||||||||||||||||||
Schedule of pre-tax effect of derivative instruments and related hedged items in a fair value hedging relationship | ' | |||||||||||||||||||||||||||||||
(Loss) Gain Recognized in Income on Derivative and Related Hedged Item | ||||||||||||||||||||||||||||||||
Derivative Instrument | Location | 2013 | Hedged Item | Location | 2013 | |||||||||||||||||||||||||||
In millions | In millions | |||||||||||||||||||||||||||||||
Interest rate contracts | Interest and other, net | $ | (270 | ) | Fixed-rate debt | Interest and other, net | $ | 270 | ||||||||||||||||||||||||
(Loss) Gain Recognized in Income on Derivative and Related Hedged Item | ||||||||||||||||||||||||||||||||
Derivative Instrument | Location | 2012 | Hedged Item | Location | 2012 | |||||||||||||||||||||||||||
In millions | In millions | |||||||||||||||||||||||||||||||
Interest rate contracts | Interest and other, net | $ | (130 | ) | Fixed-rate debt | Interest and other, net | $ | 134 | ||||||||||||||||||||||||
Schedule of pre-tax effect of derivative instruments in cash flow and net investment hedging relationships | ' | |||||||||||||||||||||||||||||||
Gain (Loss) | Gain (Loss) Reclassified from | |||||||||||||||||||||||||||||||
Recognized in | Accumulated OCI into Income | |||||||||||||||||||||||||||||||
Other | (Effective Portion) | |||||||||||||||||||||||||||||||
Comprehensive | ||||||||||||||||||||||||||||||||
Income ("OCI") | ||||||||||||||||||||||||||||||||
on Derivative | ||||||||||||||||||||||||||||||||
(Effective Portion) | ||||||||||||||||||||||||||||||||
2013 | Location | 2013 | ||||||||||||||||||||||||||||||
In millions | In millions | |||||||||||||||||||||||||||||||
Cash flow hedges: | ||||||||||||||||||||||||||||||||
Foreign exchange contracts | $ | (53 | ) | Net revenue | $ | 48 | ||||||||||||||||||||||||||
Foreign exchange contracts | (192 | ) | Cost of products | (165 | ) | |||||||||||||||||||||||||||
Foreign exchange contracts | (19 | ) | Other operating expenses | 1 | ||||||||||||||||||||||||||||
Foreign exchange contracts | 21 | Interest and other, net | 10 | |||||||||||||||||||||||||||||
Total cash flow hedges | $ | (243 | ) | $ | (106 | ) | ||||||||||||||||||||||||||
Net investment hedges: | ||||||||||||||||||||||||||||||||
Foreign exchange contracts | $ | 38 | Interest and other, net | $ | — | |||||||||||||||||||||||||||
Gain (Loss) | Gain (Loss) Reclassified from | |||||||||||||||||||||||||||||||
Recognized in | Accumulated OCI into Income | |||||||||||||||||||||||||||||||
OCI on Derivative | (Effective Portion) | |||||||||||||||||||||||||||||||
(Effective Portion) | ||||||||||||||||||||||||||||||||
2012 | Location | 2012 | ||||||||||||||||||||||||||||||
In millions | In millions | |||||||||||||||||||||||||||||||
Cash flow hedges: | ||||||||||||||||||||||||||||||||
Foreign exchange contracts | $ | 415 | Net revenue | $ | 423 | |||||||||||||||||||||||||||
Foreign exchange contracts | (65 | ) | Cost of products | (15 | ) | |||||||||||||||||||||||||||
Foreign exchange contracts | (7 | ) | Other operating expenses | (6 | ) | |||||||||||||||||||||||||||
Foreign exchange contracts | (8 | ) | Interest and other, net | (3 | ) | |||||||||||||||||||||||||||
Total cash flow hedges | $ | 335 | $ | 399 | ||||||||||||||||||||||||||||
Net investment hedges: | ||||||||||||||||||||||||||||||||
Foreign exchange contracts | $ | 37 | Interest and other, net | $ | — | |||||||||||||||||||||||||||
Schedule of pre-tax effect of derivative instruments not designated as hedging instruments on the Consolidated Statements of Earnings | ' | |||||||||||||||||||||||||||||||
Gain (Loss) Recognized in Income on Derivative | ||||||||||||||||||||||||||||||||
Location | 2013 | |||||||||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||||||||
Foreign exchange contracts | Interest and other, net | $ | 166 | |||||||||||||||||||||||||||||
Other derivatives | Interest and other, net | 11 | ||||||||||||||||||||||||||||||
Interest rate contracts | Interest and other, net | 3 | ||||||||||||||||||||||||||||||
Total | $ | 180 | ||||||||||||||||||||||||||||||
Gain (Loss) Recognized in Income on Derivative | ||||||||||||||||||||||||||||||||
Location | 2012 | |||||||||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||||||||
Foreign exchange contracts | Interest and other, net | $ | 171 | |||||||||||||||||||||||||||||
Other derivatives | Interest and other, net | (32 | ) | |||||||||||||||||||||||||||||
Interest rate contracts | Interest and other, net | 13 | ||||||||||||||||||||||||||||||
Total | $ | 152 | ||||||||||||||||||||||||||||||
Financing_Receivables_and_Oper1
Financing Receivables and Operating Leases (Tables) | 12 Months Ended | |||||||||||||||||||
Oct. 31, 2013 | ||||||||||||||||||||
Financing Receivables and Operating Leases | ' | |||||||||||||||||||
Components of financing receivables | ' | |||||||||||||||||||
October 31, | October 31, | |||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
In millions | ||||||||||||||||||||
Minimum lease payments receivable | $ | 7,505 | $ | 8,133 | ||||||||||||||||
Unguaranteed residual value | 252 | 248 | ||||||||||||||||||
Unearned income | (604 | ) | (688 | ) | ||||||||||||||||
Financing receivables, gross | 7,153 | 7,693 | ||||||||||||||||||
Allowance for doubtful accounts | (131 | ) | (149 | ) | ||||||||||||||||
Financing receivables, net | 7,022 | 7,544 | ||||||||||||||||||
Less current portion | (3,144 | ) | (3,252 | ) | ||||||||||||||||
Amounts due after one year, net | $ | 3,878 | $ | 4,292 | ||||||||||||||||
Scheduled maturities of minimum lease payments receivable | ' | |||||||||||||||||||
As of October 31, 2013, scheduled maturities of HP's minimum lease payments receivable were as follows for the following fiscal years ended October 31: | ||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | Thereafter | Total | |||||||||||||||
In millions | ||||||||||||||||||||
Scheduled maturities of minimum lease payments receivable | $ | 3,490 | $ | 2,022 | $ | 1,237 | $ | 555 | $ | 201 | $ | 7,505 | ||||||||
Credit risk profile of gross financing receivables | ' | |||||||||||||||||||
October 31, | October 31, | |||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
In millions | ||||||||||||||||||||
Risk Rating | ||||||||||||||||||||
Low | $ | 3,948 | $ | 4,461 | ||||||||||||||||
Moderate | 3,084 | 3,151 | ||||||||||||||||||
High | 121 | 81 | ||||||||||||||||||
Total | $ | 7,153 | $ | 7,693 | ||||||||||||||||
Schedule of allowance for doubtful accounts for financing receivables | ' | |||||||||||||||||||
For the fiscal years | ||||||||||||||||||||
ended October 31 | ||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||
In millions | ||||||||||||||||||||
Balance at beginning of year | $ | 149 | $ | 130 | $ | 140 | ||||||||||||||
Provision for doubtful accounts | 38 | 42 | 58 | |||||||||||||||||
Deductions, net of recoveries | (56 | ) | (23 | ) | (68 | ) | ||||||||||||||
Balance at end of year | $ | 131 | $ | 149 | $ | 130 | ||||||||||||||
Allowance and related gross financing receivables collectively and individually evaluated for loss | ' | |||||||||||||||||||
October 31, | October 31, | |||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
In millions | ||||||||||||||||||||
Allowance for financing receivables collectively evaluated for loss | $ | 95 | $ | 104 | ||||||||||||||||
Allowance for financing receivables individually evaluated for loss | 36 | 45 | ||||||||||||||||||
Total | $ | 131 | $ | 149 | ||||||||||||||||
Gross financing receivables collectively evaluated for loss | $ | 6,773 | $ | 7,355 | ||||||||||||||||
Gross financing receivables individually evaluated for loss | 380 | 338 | ||||||||||||||||||
Total | $ | 7,153 | $ | 7,693 | ||||||||||||||||
Summary of the aging and non-accrual status of gross financing receivables | ' | |||||||||||||||||||
October 31, | October 31, | |||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
In millions | ||||||||||||||||||||
Billed(1): | ||||||||||||||||||||
Current 1-30 days | $ | 217 | $ | 216 | ||||||||||||||||
Past due 31-60 days | 50 | 53 | ||||||||||||||||||
Past due 61-90 days | 15 | 13 | ||||||||||||||||||
Past due >90 days | 46 | 51 | ||||||||||||||||||
Unbilled sales-type and direct-financing lease receivables | 6,825 | 7,360 | ||||||||||||||||||
Total gross financing receivables | $ | 7,153 | $ | 7,693 | ||||||||||||||||
Gross financing receivables on non-accrual status(2) | $ | 199 | $ | 225 | ||||||||||||||||
Gross financing receivables 90 days past due and still accruing interest(2) | $ | 181 | $ | 113 | ||||||||||||||||
-1 | ||||||||||||||||||||
Includes billed operating lease receivables and billed sales-type and direct-financing lease receivables. | ||||||||||||||||||||
-2 | ||||||||||||||||||||
Includes billed operating lease receivables and billed and unbilled sales-type and direct-financing lease receivables. | ||||||||||||||||||||
Schedule of operating lease assets included in machinery and equipment | ' | |||||||||||||||||||
October 31, | October 31, | |||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
In millions | ||||||||||||||||||||
Equipment leased to customers | $ | 3,822 | $ | 3,865 | ||||||||||||||||
Accumulated depreciation | (1,452 | ) | (1,499 | ) | ||||||||||||||||
Operating lease assets, net | $ | 2,370 | $ | 2,366 | ||||||||||||||||
Minimum future rentals on non-cancelable operating leases | ' | |||||||||||||||||||
As of October 31, 2013, minimum future rentals on non-cancelable operating leases related to leased equipment were as follows for the following fiscal years ended October 31: | ||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | Thereafter | Total | |||||||||||||||
In millions | ||||||||||||||||||||
Minimum future rentals on non-cancelable operating leases | $ | 1,212 | $ | 759 | $ | 346 | $ | 93 | $ | 28 | $ | 2,438 |
Guarantees_Tables
Guarantees (Tables) | 12 Months Ended | |||||||
Oct. 31, 2013 | ||||||||
Guarantees | ' | |||||||
Changes in aggregate product warranty liabilities | ' | |||||||
2013 | 2012 | |||||||
In millions | ||||||||
Balance at beginning of year | $ | 2,170 | $ | 2,451 | ||||
Accruals for warranties issued | 2,007 | 2,249 | ||||||
Adjustments related to pre-existing warranties (including changes in estimates) | (4 | ) | (79 | ) | ||||
Settlements made (in cash or in kind) | (2,142 | ) | (2,451 | ) | ||||
Balance at end of year | $ | 2,031 | $ | 2,170 | ||||
Borrowings_Tables
Borrowings (Tables) | 12 Months Ended | ||||||||||||||||||||||
Oct. 31, 2013 | |||||||||||||||||||||||
Borrowings | ' | ||||||||||||||||||||||
Schedule of notes payable and short-term borrowings, including the current portion of long-term debt | ' | ||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||
Amount | Weighted- | Amount | Weighted- | ||||||||||||||||||||
Outstanding | Average Interest | Outstanding | Average Interest | ||||||||||||||||||||
Rate | Rate | ||||||||||||||||||||||
In millions | In millions | ||||||||||||||||||||||
Current portion of long-term debt | $ | 5,226 | 2.8 | % | $ | 5,744 | 1.6 | % | |||||||||||||||
Commercial paper(1) | 327 | 0.4 | % | 365 | 0.9 | % | |||||||||||||||||
Notes payable to banks, lines of credit and other(1) | 426 | 1.7 | % | 538 | 2.3 | % | |||||||||||||||||
$ | 5,979 | $ | 6,647 | ||||||||||||||||||||
-1 | |||||||||||||||||||||||
Commercial paper includes $327 million and $365 million and Notes payable to banks, lines of credit and other includes $368 million and $465 million at October 31, 2013 and October 31, 2012, respectively, of borrowing and funding related activity associated with HP Financial Services ("HPFS") and its subsidiaries. | |||||||||||||||||||||||
Schedule of long-term debt | ' | ||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||
In millions | |||||||||||||||||||||||
U.S. Dollar Global Notes | |||||||||||||||||||||||
2006 Shelf Registration Statement: | |||||||||||||||||||||||
$500 issued at discount to par at a price of 99.694% in February 2007 at 5.4%, due March 2017 | $ | 499 | $ | 499 | |||||||||||||||||||
$1,500 issued at discount to par at a price of 99.921% in March 2008 at 4.5%, paid March 2013 | — | 1,500 | |||||||||||||||||||||
$750 issued at discount to par at a price of 99.932% in March 2008 at 5.5%, due March 2018 | 750 | 750 | |||||||||||||||||||||
$2,000 issued at discount to par at a price of 99.561% in December 2008 at 6.125%, due March 2014 | 1,999 | 1,998 | |||||||||||||||||||||
$1,500 issued at discount to par at a price of 99.993% in February 2009 at 4.75%, due June 2014 | 1,500 | 1,500 | |||||||||||||||||||||
2009 Shelf Registration Statement: | |||||||||||||||||||||||
$1,100 issued at discount to par at a price of 99.921% in September 2010 at 1.25%, paid September 2013 | — | 1,100 | |||||||||||||||||||||
$1,100 issued at discount to par at a price of 99.887% in September 2010 at 2.125%, due September 2015 | 1,100 | 1,100 | |||||||||||||||||||||
$650 issued at discount to par at a price of 99.911% in December 2010 at 2.2%, due December 2015 | 650 | 650 | |||||||||||||||||||||
$1,350 issued at discount to par at a price of 99.827% in December 2010 at 3.75%, due December 2020 | 1,349 | 1,348 | |||||||||||||||||||||
$1,750 issued at par in May 2011 at three month USD LIBOR plus 0.28%, paid May 2013 | — | 1,750 | |||||||||||||||||||||
$500 issued at par in May 2011 at three month USD LIBOR plus 0.4%, due May 2014 | 500 | 500 | |||||||||||||||||||||
$500 issued at discount to par at a price of 99.971% in May 2011 at 1.55%, due May 2014 | 500 | 500 | |||||||||||||||||||||
$1,000 issued at discount to par at a price of 99.958% in May 2011 at 2.65%, due June 2016 | 1,000 | 1,000 | |||||||||||||||||||||
$1,250 issued at discount to par at a price of 99.799% in May 2011 at 4.3%, due June 2021 | 1,248 | 1,248 | |||||||||||||||||||||
$750 issued at discount to par at a price of 99.977% in September 2011 at 2.35%, due March 2015 | 750 | 750 | |||||||||||||||||||||
$1,300 issued at discount to par at a price of 99.784% in September 2011 at 3.0%, due September 2016 | 1,298 | 1,298 | |||||||||||||||||||||
$1,000 issued at discount to par at a price of 99.816% in September 2011 at 4.375%, due September 2021 | 999 | 998 | |||||||||||||||||||||
$1,200 issued at discount to par at a price of 99.863% in September 2011 at 6.0%, due September 2041 | 1,198 | 1,198 | |||||||||||||||||||||
$350 issued at par in September 2011 at three-month USD LIBOR plus 1.55%, due September 2014 | 350 | 350 | |||||||||||||||||||||
$650 issued at discount to par at a price of 99.946% in December 2011 at 2.625%, due December 2014 | 650 | 650 | |||||||||||||||||||||
$850 issued at discount to par at a price of 99.790% in December 2011 at 3.3%, due December 2016 | 849 | 849 | |||||||||||||||||||||
$1,500 issued at discount to par at a price of 99.707% in December 2011 at 4.65%, due December 2021 | 1,496 | 1,496 | |||||||||||||||||||||
$1,500 issued at discount to par at a price of 99.985% in March 2012 at 2.6%, due September 2017 | 1,500 | 1,500 | |||||||||||||||||||||
$500 issued at discount to par at a price of 99.771% in March 2012 at 4.05%, due September 2022 | 499 | 499 | |||||||||||||||||||||
20,684 | 25,031 | ||||||||||||||||||||||
EDS Senior Notes | |||||||||||||||||||||||
$1,100 issued June 2003 at 6.0%, paid August 2013 | — | 1,109 | |||||||||||||||||||||
$300 issued October 1999 at 7.45%, due October 2029 | 314 | 314 | |||||||||||||||||||||
314 | 1,423 | ||||||||||||||||||||||
Other, including capital lease obligations, at 0.00%-8.39%, due in calendar years 2014-2024(1) | 689 | 680 | |||||||||||||||||||||
Fair value adjustment related to hedged debt | 147 | 399 | |||||||||||||||||||||
Less: current portion | (5,226 | ) | (5,744 | ) | |||||||||||||||||||
Total long-term debt | $ | 16,608 | $ | 21,789 | |||||||||||||||||||
-1 | |||||||||||||||||||||||
Other, including capital lease obligations includes $244 million and $225 million at October 31, 2013 and October 31, 2012, respectively, of borrowing and funding related activity associated with HPFS and its subsidiaries. | |||||||||||||||||||||||
Schedule of aggregate future maturities of long-term debt at face value | ' | ||||||||||||||||||||||
Aggregate future maturities of long-term debt at face value (excluding a fair value adjustment related to hedged debt of $147 million, a premium on debt issuance of $14 million, and a discount on debt issuance of $16 million) were as follows at October 31, 2013: | |||||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | Total | |||||||||||||||||
In millions | |||||||||||||||||||||||
Aggregate future maturities of debt outstanding including capital lease obligations | $ | 5,195 | $ | 2,543 | $ | 3,013 | $ | 2,891 | $ | 842 | $ | 7,205 | $ | 21,689 | |||||||||
Schedule of interest expense on borrowings | ' | ||||||||||||||||||||||
For the fiscal years ended October 31 | |||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||
In millions | |||||||||||||||||||||||
Financing interest | $ | 312 | $ | 317 | $ | 306 | |||||||||||||||||
Interest expense | 426 | 514 | 216 | ||||||||||||||||||||
Total interest expense | $ | 738 | $ | 831 | $ | 522 | |||||||||||||||||
Taxes_on_Earnings_Tables
Taxes on Earnings (Tables) | 12 Months Ended | |||||||||||||
Oct. 31, 2013 | ||||||||||||||
Taxes on Earnings | ' | |||||||||||||
Schedule of domestic and foreign components of earnings (loss) before taxes | ' | |||||||||||||
2013 | 2012 | 2011 | ||||||||||||
In millions | ||||||||||||||
U.S. | $ | 2,618 | $ | (3,192 | ) | $ | 3,039 | |||||||
Non-U.S. | 3,892 | (8,741 | ) | 5,943 | ||||||||||
$ | 6,510 | $ | (11,933 | ) | $ | 8,982 | ||||||||
Schedule of provision for (benefit from) taxes on earnings | ' | |||||||||||||
2013 | 2012 | 2011 | ||||||||||||
In millions | ||||||||||||||
U.S. federal taxes: | ||||||||||||||
Current | $ | 475 | $ | 330 | $ | 390 | ||||||||
Deferred | (666 | ) | 81 | (590 | ) | |||||||||
Non-U.S. taxes: | ||||||||||||||
Current | 1,275 | 1,139 | 1,177 | |||||||||||
Deferred | 89 | (787 | ) | 611 | ||||||||||
State taxes: | ||||||||||||||
Current | 57 | (41 | ) | 141 | ||||||||||
Deferred | 167 | (5 | ) | 179 | ||||||||||
$ | 1,397 | $ | 717 | $ | 1,908 | |||||||||
Schedule of differences between the U.S. federal statutory income tax rate and effective tax rate | ' | |||||||||||||
2013 | 2012(1) | 2011 | ||||||||||||
U.S. federal statutory income tax rate | 35 | % | 35 | % | 35 | % | ||||||||
State income taxes, net of federal tax benefit | 0.1 | 0.5 | 0.5 | |||||||||||
Lower rates in other jurisdictions, net | (24.5 | ) | 13.9 | (23.3 | ) | |||||||||
Research and development credit | (0.7 | ) | 0.1 | (0.6 | ) | |||||||||
Valuation allowance | 3.8 | (14.0 | ) | 5.2 | ||||||||||
Nondeductible goodwill | — | (40.3 | ) | 3.4 | ||||||||||
Uncertain tax positions | 4.1 | (1.4 | ) | (1.1 | ) | |||||||||
Other, net | 3.7 | 0.2 | 2.1 | |||||||||||
21.5 | % | (6.0 | )% | 21.2 | % | |||||||||
-1 | ||||||||||||||
Positive numbers represent tax benefits and negative numbers represent tax expense as HP recorded income tax expense on a pretax loss. | ||||||||||||||
Schedule of reconciliation of gross unrecognized tax benefits | ' | |||||||||||||
2013 | 2012 | 2011 | ||||||||||||
In millions | ||||||||||||||
Balance at beginning of year | $ | 2,573 | $ | 2,118 | $ | 2,085 | ||||||||
Increases: | ||||||||||||||
For current year's tax positions | 290 | 209 | 384 | |||||||||||
For prior years' tax positions | 997 | 651 | 426 | |||||||||||
Decreases: | ||||||||||||||
For prior years' tax positions | (146 | ) | (321 | ) | (159 | ) | ||||||||
Statute of limitations expiration | (11 | ) | (1 | ) | (20 | ) | ||||||||
Settlements with taxing authorities | (219 | ) | (83 | ) | (598 | ) | ||||||||
Balance at end of year | $ | 3,484 | $ | 2,573 | $ | 2,118 | ||||||||
Schedule of significant components of deferred tax assets and deferred tax liabilities | ' | |||||||||||||
2013 | 2012 | |||||||||||||
Deferred | Deferred | Deferred | Deferred | |||||||||||
Tax Assets | Tax | Tax | Tax | |||||||||||
Liabilities | Assets | Liabilities | ||||||||||||
In millions | ||||||||||||||
Loss carryforwards | $ | 9,807 | $ | — | $ | 9,142 | $ | — | ||||||
Credit carryforwards | 4,261 | — | 3,884 | — | ||||||||||
Unremitted earnings of foreign subsidiaries | — | 7,469 | — | 7,559 | ||||||||||
Inventory valuation | 128 | 13 | 185 | 12 | ||||||||||
Intercompany transactions—profit in inventory | 125 | — | 463 | — | ||||||||||
Intercompany transactions—excluding inventory | 1,923 | — | 881 | — | ||||||||||
Fixed assets | 289 | 72 | 349 | 65 | ||||||||||
Warranty | 622 | — | 663 | — | ||||||||||
Employee and retiree benefits | 2,350 | 11 | 3,264 | 16 | ||||||||||
Accounts receivable allowance | 185 | 1 | 161 | 2 | ||||||||||
Intangible assets | 224 | 886 | 264 | 1,111 | ||||||||||
Restructuring | 340 | — | 225 | — | ||||||||||
Deferred revenue | 1,119 | 19 | 969 | 16 | ||||||||||
Other | 1,443 | 759 | 1,107 | 367 | ||||||||||
Gross deferred tax assets and liabilities | 22,816 | 9,230 | 21,557 | 9,148 | ||||||||||
Valuation allowance | (11,390 | ) | — | (10,223 | ) | — | ||||||||
Net deferred tax assets and liabilities | $ | 11,426 | $ | 9,230 | $ | 11,334 | $ | 9,148 | ||||||
Schedule of current and long term deferred tax assets and liabilities | ' | |||||||||||||
2013 | 2012 | |||||||||||||
In millions | ||||||||||||||
Current deferred tax assets | $ | 3,893 | $ | 3,783 | ||||||||||
Current deferred tax liabilities | (375 | ) | (230 | ) | ||||||||||
Long-term deferred tax assets | 1,346 | 1,581 | ||||||||||||
Long-term deferred tax liabilities | (2,668 | ) | (2,948 | ) | ||||||||||
Net deferred tax assets net of deferred tax liabilities | $ | 2,196 | $ | 2,186 | ||||||||||
Schedule of tax credit carryforwards | ' | |||||||||||||
As of October 31, 2013, HP had recorded deferred tax assets for various tax credit carryforwards as follows: | ||||||||||||||
Carryforward | Valuation Allowance | Initial | ||||||||||||
Year of | ||||||||||||||
Expiration | ||||||||||||||
In millions | ||||||||||||||
U.S. foreign tax credits | $ | 3,200 | $ | 47 | 2021 | |||||||||
U.S. research and development and other credits | 653 | — | 2018 | |||||||||||
Tax credits in state and foreign jurisdictions | 408 | 239 | 2014 | |||||||||||
Balance at end of year | $ | 4,261 | $ | 286 | ||||||||||
Schedule of valuation allowance balance | ' | |||||||||||||
2013 | 2012 | 2011 | ||||||||||||
In millions | ||||||||||||||
Balance at beginning of year | $ | 10,223 | $ | 9,057 | $ | 8,755 | ||||||||
Charged to expenses | 1,644 | 865 | 315 | |||||||||||
Other comprehensive income, currency translation and other | (477 | ) | 301 | (13 | ) | |||||||||
Balance at end of year | $ | 11,390 | $ | 10,223 | $ | 9,057 | ||||||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 12 Months Ended | ||||||||||
Oct. 31, 2013 | |||||||||||
Stockholders' Equity | ' | ||||||||||
Taxes related to Other Comprehensive Income/Loss | ' | ||||||||||
2013 | 2012 | 2011 | |||||||||
In millions | |||||||||||
Tax (expense) benefit on change in unrealized gains/losses on available-for-sale securities: | |||||||||||
Tax (expense) benefit on unrealized gains/losses arising during the period | $ | (14 | ) | $ | 25 | $ | — | ||||
Tax expense (benefit) on gains/losses reclassified into earnings | — | — | — | ||||||||
(14 | ) | 25 | — | ||||||||
Tax benefit (expense) on change in unrealized gains/losses on cash flow hedges: | |||||||||||
Tax benefit (expense) on unrealized gains/losses arising during the period | 97 | (137 | ) | 86 | |||||||
Tax (benefit) expense on gains/losses reclassified into earnings | (49 | ) | 143 | (210 | ) | ||||||
48 | 6 | (124 | ) | ||||||||
Tax (expense) benefit on change in unrealized components of defined benefit plans: | |||||||||||
Tax (expense) benefit on net losses arising during the period | (258 | ) | 261 | 263 | |||||||
Tax (benefit) expense on amortization of actuarial loss and prior service benefit | (35 | ) | (31 | ) | (36 | ) | |||||
Tax (expense) benefit on curtailments, settlements and other | (5 | ) | (48 | ) | 2 | ||||||
(298 | ) | 182 | 229 | ||||||||
Tax benefit (expense) on change in cumulative translation adjustment | 25 | (25 | ) | (20 | ) | ||||||
Tax (expense) benefit on other comprehensive income/loss | $ | (239 | ) | $ | 188 | $ | 85 | ||||
Accumulated Other Comprehensive loss, net of taxes | ' | ||||||||||
2013 | 2012 | 2011 | |||||||||
In millions | |||||||||||
Net unrealized gain on available-for-sale securities | $ | 76 | $ | 87 | $ | 37 | |||||
Net unrealized loss on cash flow hedges | (188 | ) | (99 | ) | (41 | ) | |||||
Unrealized components of defined benefit plans | (3,084 | ) | (5,090 | ) | (3,109 | ) | |||||
Cumulative translation adjustment | (582 | ) | (457 | ) | (385 | ) | |||||
Accumulated other comprehensive loss | $ | (3,778 | ) | $ | (5,559 | ) | $ | (3,498 | ) | ||
Retirement_and_PostRetirement_1
Retirement and Post-Retirement Benefit Plans (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Oct. 31, 2013 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement and Post-Retirement Benefit Plans | ' | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of fair value of plan assets and projected benefit obligations for US defined benefit plans and DPSP | ' | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Plan Assets | Projected | Plan Assets | Projected | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefit | Benefit | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Obligation | Obligation | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. defined benefit plans | $ | 10,866 | $ | 11,866 | $ | 11,536 | $ | 14,237 | ||||||||||||||||||||||||||||||||||||||||||||||||
DPSP | 837 | 837 | 958 | 958 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 11,703 | $ | 12,703 | $ | 12,494 | $ | 15,195 | ||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of net pension and post-retirement benefit cost (credit) | ' | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Defined | Non-U.S. Defined | Post-Retirement | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefit Plans | Benefit Plans | Benefit Plans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Service cost | $ | 1 | $ | 1 | $ | 1 | $ | 337 | $ | 294 | $ | 343 | $ | 6 | $ | 7 | $ | 9 | ||||||||||||||||||||||||||||||||||||||
Interest cost | 560 | 566 | 594 | 676 | 690 | 694 | 31 | 35 | 35 | |||||||||||||||||||||||||||||||||||||||||||||||
Expected return on plan assets | (845 | ) | (793 | ) | (744 | ) | (1,007 | ) | (816 | ) | (890 | ) | (34 | ) | (38 | ) | (37 | ) | ||||||||||||||||||||||||||||||||||||||
Amortization and deferrals: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Actuarial loss (gain) | 77 | 43 | 33 | 341 | 235 | 235 | 2 | (3 | ) | 3 | ||||||||||||||||||||||||||||||||||||||||||||||
Prior service benefit | — | — | — | (27 | ) | (24 | ) | (14 | ) | (67 | ) | (79 | ) | (83 | ) | |||||||||||||||||||||||||||||||||||||||||
Net periodic benefit (credit) cost | (207 | ) | (183 | ) | (116 | ) | 320 | 379 | 368 | (62 | ) | (78 | ) | (73 | ) | |||||||||||||||||||||||||||||||||||||||||
Curtailment (gain) loss | — | — | — | (3 | ) | 4 | — | (7 | ) | (30 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||
Settlement loss (gain) | 12 | 11 | 3 | 18 | (18 | ) | 9 | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Special termination benefits | — | 833 | — | 31 | 17 | 16 | (5 | ) | 227 | — | ||||||||||||||||||||||||||||||||||||||||||||||
Net benefit (credit) cost | $ | (195 | ) | $ | 661 | $ | (113 | ) | $ | 366 | $ | 382 | $ | 393 | $ | (74 | ) | $ | 119 | $ | (73 | ) | ||||||||||||||||||||||||||||||||||
Schedule of weighted average assumptions used to calculate net benefit (credit) cost | ' | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Defined | Non-U.S. Defined | Post-Retirement | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefit Plans | Benefit Plans | Benefit Plans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||||||||||||||||||||
Discount rate | 4.1 | % | 4.8 | % | 5.6 | % | 3.8 | % | 4.5 | % | 4.4 | % | 3 | % | 4.4 | % | 4.4 | % | ||||||||||||||||||||||||||||||||||||||
Expected increase in compensation levels | 2 | % | 2 | % | 2 | % | 2.4 | % | 2.5 | % | 2.5 | % | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Expected long-term return on assets | 7.8 | % | 7.6 | % | 8 | % | 7.2 | % | 6.4 | % | 6.8 | % | 9 | % | 10 | % | 10.5 | % | ||||||||||||||||||||||||||||||||||||||
Schedule of funded status of the defined benefit and post-retirement benefit plans | ' | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Defined | Non-U.S. Defined | Post-Retirement | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefit Plans | Benefit Plans | Benefit Plans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in fair value of plan assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value—beginning of year | $ | 11,536 | $ | 10,662 | $ | 14,021 | $ | 13,180 | $ | 395 | $ | 394 | ||||||||||||||||||||||||||||||||||||||||||||
Acquisition/addition of plans | — | — | 7 | 8 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Actual return on plan assets | 629 | 1,411 | 1,842 | 1,327 | 32 | 36 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Employer contributions | 54 | 50 | 634 | 582 | 102 | 31 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Participant contributions | — | — | 63 | 57 | 72 | 59 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Benefits paid | (1,320 | ) | (556 | ) | (504 | ) | (462 | ) | (205 | ) | (125 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Settlement | (33 | ) | (31 | ) | (96 | ) | (193 | ) | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Currency impact | — | — | 116 | (478 | ) | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Fair value—end of year | 10,866 | 11,536 | 16,083 | 14,021 | 396 | 395 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Change in benefit obligation: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Projected benefit obligation—beginning of year | 14,237 | 11,945 | 18,097 | 16,328 | 1,056 | 816 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition/addition of plans | — | — | 14 | 25 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Service cost | 1 | 1 | 337 | 294 | 6 | 7 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Interest cost | 560 | 566 | 676 | 690 | 31 | 35 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Participant contributions | — | — | 63 | 57 | 72 | 59 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Actuarial (gain) loss | (1,579 | ) | 1,479 | 343 | 2,143 | (85 | ) | 34 | ||||||||||||||||||||||||||||||||||||||||||||||||
Benefits paid | (1,320 | ) | (556 | ) | (504 | ) | (462 | ) | (205 | ) | (125 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Plan amendments | — | — | 6 | (67 | ) | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Curtailment | — | — | 13 | 5 | — | 5 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Settlement | (33 | ) | (31 | ) | (100 | ) | (395 | ) | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Special termination benefits | — | 833 | 31 | 17 | (5 | ) | 227 | |||||||||||||||||||||||||||||||||||||||||||||||||
Currency impact | — | — | 176 | (538 | ) | (3 | ) | (2 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
Projected benefit obligation—end of year | 11,866 | 14,237 | 19,152 | 18,097 | 867 | 1,056 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Funded status at end of year | $ | (1,000 | ) | $ | (2,701 | ) | $ | (3,069 | ) | $ | (4,076 | ) | $ | (471 | ) | $ | (661 | ) | ||||||||||||||||||||||||||||||||||||||
Accumulated benefit obligation | $ | 11,865 | $ | 14,236 | $ | 18,254 | $ | 17,070 | ||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of weighted-average assumptions used to calculate the projected benefit obligations | ' | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Defined | Non-U.S. Defined | Post-Retirement | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefit Plans | Benefit Plans | Benefit Plans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Discount rate | 4.9 | % | 4.1 | % | 3.9 | % | 3.8 | % | 3.9 | % | 3 | % | ||||||||||||||||||||||||||||||||||||||||||||
Expected increase in compensation levels | 2 | % | 2 | % | 2.4 | % | 2.4 | % | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Schedule of net amount recognized for the entity's defined benefit and post-retirement benefit plans in the entity's Consolidated Balance Sheets | ' | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Defined | Non-U.S. Defined | Post-Retirement | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefit Plans | Benefit Plans | Benefit Plans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncurrent assets | $ | — | $ | — | $ | 479 | $ | 260 | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||||||||||
Current liabilities | (33 | ) | (33 | ) | (46 | ) | (39 | ) | (109 | ) | (124 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Noncurrent liabilities | (967 | ) | (2,668 | ) | (3,502 | ) | (4,297 | ) | (362 | ) | (537 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Funded status at end of year | $ | (1,000 | ) | $ | (2,701 | ) | $ | (3,069 | ) | $ | (4,076 | ) | $ | (471 | ) | $ | (661 | ) | ||||||||||||||||||||||||||||||||||||||
Summary of pretax net actuarial loss (gain) and prior service benefit recognized in accumulated other comprehensive loss for defined benefit and post-retirement benefit plans | ' | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Defined | Non-U.S. Defined | Post-Retirement | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefit Plans | Benefit Plans | Benefit Plans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net actuarial loss (gain) | $ | 377 | $ | 4,220 | $ | (96 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||
Prior service benefit | — | (231 | ) | (161 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Total recognized in accumulated other comprehensive loss | $ | 377 | $ | 3,989 | $ | (257 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||
Summary of actuarial loss and prior service benefit that are expected to be amortized from accumulated other comprehensive loss (income) and recognized as components of net periodic benefit cost (credit) | ' | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Defined | Non-U.S. Defined | Post-Retirement | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefit Plans | Benefit Plans | Benefit Plans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net actuarial loss (gain) | $ | 16 | $ | 311 | $ | (10 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||
Prior service benefit | — | (24 | ) | (41 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Total expected to be recognized in net periodic benefit cost (credit) | $ | 16 | $ | 287 | $ | (51 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of defined benefit plans with projected benefit obligations exceeding the fair value of plan assets | ' | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Defined | Non-U.S. Defined | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefit Plans | Benefit Plans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Aggregate fair value of plan assets | $ | 10,866 | $ | 11,536 | $ | 10,462 | $ | 10,283 | ||||||||||||||||||||||||||||||||||||||||||||||||
Aggregate projected benefit obligation | $ | 11,866 | $ | 14,237 | $ | 14,010 | $ | 14,618 | ||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of defined benefit plans with accumulated benefit obligations exceeding the fair value of plan assets | ' | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Defined | Non-U.S. Defined | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefit Plans | Benefit Plans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Aggregate fair value of plan assets | $ | 10,866 | $ | 11,536 | $ | 9,926 | $ | 10,193 | ||||||||||||||||||||||||||||||||||||||||||||||||
Aggregate accumulated benefit obligation | $ | 11,865 | $ | 14,236 | $ | 12,703 | $ | 13,645 | ||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of fair value of plan assets by asset category within the fair value hierarchy | ' | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
The table below sets forth the fair value of plan assets as of October 31, 2013 by asset category within the fair value hierarchy. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Defined Benefit Plans | Non-U.S. Defined Benefit Plans | Post-Retirement Benefit Plans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset Category: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity securities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. | $ | 1,711 | $ | — | $ | — | $ | 1,711 | $ | 2,456 | $ | 31 | $ | — | $ | 2,487 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||||||||||||
Non-U.S. | 1,274 | — | — | 1,274 | 4,059 | 670 | 77 | 4,806 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Debt securities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate | — | 3,028 | — | 3,028 | — | 3,347 | — | 3,347 | — | 17 | — | 17 | ||||||||||||||||||||||||||||||||||||||||||||
Government(1) | — | 1,849 | — | 1,849 | — | 1,751 | — | 1,751 | 5 | 17 | — | 22 | ||||||||||||||||||||||||||||||||||||||||||||
Alternative Investments | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Private Equity(2) | — | — | 1,250 | 1,250 | — | 2 | 48 | 50 | — | — | 234 | 234 | ||||||||||||||||||||||||||||||||||||||||||||
Hybrids(3) | — | — | 2 | 2 | 1,223 | — | 1,223 | — | — | 1 | 1 | |||||||||||||||||||||||||||||||||||||||||||||
Hedge Funds(4) | — | — | 113 | 113 | — | 226 | 204 | 430 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Real Estate Funds | — | — | — | — | 470 | 237 | 325 | 1,032 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Insurance Group Annuity Contracts | — | — | — | — | — | 50 | 81 | 131 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Common Collective Trusts and 103-12 Investment Entities(5) | — | 1,233 | — | 1,233 | — | — | — | — | — | 42 | — | 42 | ||||||||||||||||||||||||||||||||||||||||||||
Registered Investment Companies ("RICs")(6) | 61 | 329 | — | 390 | — | — | — | — | 79 | — | — | 79 | ||||||||||||||||||||||||||||||||||||||||||||
Cash and Cash Equivalents(7) | 11 | 62 | — | 73 | 648 | 4 | — | 652 | — | 3 | — | 3 | ||||||||||||||||||||||||||||||||||||||||||||
Other(8) | (37 | ) | (20 | ) | — | (57 | ) | 110 | 62 | 2 | 174 | (2 | ) | — | — | (2 | ) | |||||||||||||||||||||||||||||||||||||||
Total | $ | 3,020 | $ | 6,481 | $ | 1,365 | $ | 10,866 | $ | 7,743 | $ | 7,603 | $ | 737 | $ | 16,083 | $ | 82 | $ | 79 | $ | 235 | $ | 396 | ||||||||||||||||||||||||||||||||
-1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Includes debt issued by national, state and local governments and agencies. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
-2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Includes limited partnerships and venture capital partnerships as well as equity / buyout funds, venture capital, real estate and other similar funds that invest in the United States and internationally where foreign currencies are hedged. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
-3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Includes a fund that invests in both private and public equities primarily in the United States and the United Kingdom, as well as emerging markets across all sectors. The fund also holds fixed income and derivative instruments to hedge interest rate and inflation risk. In addition, the fund includes units in transferable securities, collective investment schemes, money market funds, cash and deposits. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
-4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Includes those that invest both long and short primarily in common stocks and credit, relative value, event driven equity, distressed debt and macro strategies. Management of the hedge funds has the ability to shift investments from value to growth strategies, from small to large capitalization stocks and bonds, and from a net long position to a net short position. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
-5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Department of Labor 103-12 IE (Investment Entity) designation is for plan assets held by two or more unrelated employee benefit plans which includes limited partnerships and venture capital partnerships. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
-6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Includes publicly and privately traded RICs. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
-7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Includes cash and cash equivalents such as short-term marketable securities. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
-8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Includes international insured contracts, derivative instruments and unsettled transactions. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The table below sets forth the fair value of our plan assets as of October 31, 2012 by asset category within the fair value hierarchy. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Defined Benefit Plans | Non-U.S. Defined Benefit Plans | Post-Retirement Benefit Plans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset Category: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity securities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. | $ | 1,150 | $ | — | $ | — | $ | 1,150 | $ | 1,621 | $ | 28 | $ | — | $ | 1,649 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||||||||||||
Non-U.S. | 866 | — | — | 866 | 4,049 | 50 | 76 | 4,175 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Debt securities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate | — | 3,442 | 1 | 3,443 | — | 2,878 | — | 2,878 | — | 17 | — | 17 | ||||||||||||||||||||||||||||||||||||||||||||
Government(1) | — | 3,037 | — | 3,037 | — | 1,653 | — | 1,653 | 6 | 16 | — | 22 | ||||||||||||||||||||||||||||||||||||||||||||
Alternative Investments | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Private Equity(2) | 3 | — | 1,300 | 1,303 | 2 | — | 21 | 23 | — | — | 235 | 235 | ||||||||||||||||||||||||||||||||||||||||||||
Hybrids(3) | — | — | 2 | 2 | — | 1,089 | — | 1,089 | — | — | 1 | 1 | ||||||||||||||||||||||||||||||||||||||||||||
Hedge Funds(4) | — | — | 65 | 65 | — | 296 | 233 | 529 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Real Estate Funds | — | — | — | — | 449 | 177 | 194 | 820 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Insurance Group Annuity Contracts | — | — | — | — | — | 60 | 88 | 148 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Common Collective Trusts and 103-12 Investment Entities(5) | — | 1,546 | — | 1,546 | — | — | — | — | — | 49 | — | 49 | ||||||||||||||||||||||||||||||||||||||||||||
Registered Investment Companies ("RICs")(6) | 119 | 342 | — | 461 | — | — | — | — | 73 | — | — | 73 | ||||||||||||||||||||||||||||||||||||||||||||
Cash and Cash Equivalents(7) | (66 | ) | 108 | — | 42 | 439 | 5 | — | 444 | — | 2 | — | 2 | |||||||||||||||||||||||||||||||||||||||||||
Other(8) | (245 | ) | (134 | ) | — | (379 | ) | 575 | 36 | 2 | 613 | (4 | ) | — | — | (4 | ) | |||||||||||||||||||||||||||||||||||||||
Total | $ | 1,827 | $ | 8,341 | $ | 1,368 | $ | 11,536 | $ | 7,135 | $ | 6,272 | $ | 614 | $ | 14,021 | $ | 75 | $ | 84 | $ | 236 | $ | 395 | ||||||||||||||||||||||||||||||||
-1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Includes debt issued by national, state and local governments and agencies. Certain U.S. treasury debt securities in the aggregate of $1.6 billion have been reclassified from level 1 to level 2 based upon further analysis of the investments. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
-2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Includes limited partnerships and venture capital partnerships as well as equity / buyout funds, venture capital, real estate and other similar funds that invest in the United States and internationally where foreign currencies are hedged. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
-3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Includes a fund that invests in both private and public equities primarily in the United States and the United Kingdom, as well as emerging markets across all sectors. The fund also holds fixed income and derivative instruments to hedge interest rate and inflation risk. In addition, the fund includes units in transferable securities, collective investment schemes, money market funds, cash and deposits. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
-4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Includes those that invest both long and short primarily in common stocks and credit, relative value, event driven equity, distressed debt and macro strategies. Management of the hedge funds has the ability to shift investments from value to growth strategies, from small to large capitalization stocks and bonds, and from a net long position to a net short position. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
-5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Department of Labor 103-12 IE (Investment Entity) designation is for plan assets held by two or more unrelated employee benefit plans which includes limited partnerships and venture capital partnerships. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
-6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Includes publicly and privately traded RICs. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
-7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Includes cash and cash equivalents such as short-term marketable securities. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
-8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Includes international insured contracts, derivative instruments and unsettled transactions. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of changes in fair value measurements of Level 3 investments | ' | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Defined | Non-U.S. Defined Benefit Plans | Post-Retirement Benefit Plans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefit Plans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Alternative | Equity | Alternative | Alternative | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities | Investments | Investments | Investments | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate | Private | Hybrids | Hedge | Total | Non U.S. | Private | Hedge | Real | Insurance | Other | Total | Private | Hybrids | Total | ||||||||||||||||||||||||||||||||||||||||||
Debt | Equity | Funds | Equities | Equity | Funds | Estate | Group | Equity | ||||||||||||||||||||||||||||||||||||||||||||||||
Annuities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance at October 31, 2012 | $ | 1 | $ | 1,300 | $ | 2 | $ | 65 | $ | 1,368 | $ | 76 | $ | 21 | $ | 233 | $ | 194 | $ | 88 | $ | 2 | $ | 614 | $ | 235 | $ | 1 | $ | 236 | ||||||||||||||||||||||||||
Actual return on plan assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Relating to assets still held at the reporting date | — | (9 | ) | — | 13 | 4 | 1 | 8 | — | 16 | (5 | ) | — | 20 | 5 | — | 5 | |||||||||||||||||||||||||||||||||||||||
Relating to assets sold during the period | — | 143 | — | — | 143 | — | — | 11 | — | — | — | 11 | 21 | — | 21 | |||||||||||||||||||||||||||||||||||||||||
Purchases, sales, and settlements (net) | — | (184 | ) | — | 35 | (149 | ) | — | 19 | (40 | ) | 115 | (2 | ) | — | 92 | (27 | ) | — | (27 | ) | |||||||||||||||||||||||||||||||||||
Transfers in and/or out of Level 3 | (1 | ) | — | — | — | (1 | ) | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Ending balance at October 31, 2013 | $ | — | $ | 1,250 | $ | 2 | $ | 113 | $ | 1,365 | $ | 77 | $ | 48 | $ | 204 | $ | 325 | $ | 81 | $ | 2 | $ | 737 | $ | 234 | $ | 1 | $ | 235 | ||||||||||||||||||||||||||
U.S. Defined Benefit Plans | Non-U.S. Defined Benefit Plans | Post-Retirement Benefit Plans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Securities | Alternative Investments | Equity | Debt Securities | Alternative Investments | Alternative Investments | |||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate | Private | Hybrids | Hedge | Total | U.S. | Non U.S. | Corporate | Private | Hedge | Real | Insurance | Cash | Other | Total | Private | Hybrids | Total | |||||||||||||||||||||||||||||||||||||||
Debt | Equity | Funds | Equities | Equities | Debt | Equity | Funds | Estate | Group | Equity | ||||||||||||||||||||||||||||||||||||||||||||||
Annuities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance at October 31, 2011 | $ | — | $ | 1,356 | $ | 4 | $ | — | $ | 1,360 | $ | 30 | $ | — | $ | 3 | $ | 20 | $ | 300 | $ | 199 | $ | 89 | $ | (4 | ) | $ | 19 | $ | 656 | $ | 227 | $ | 1 | $ | 228 | |||||||||||||||||||
Actual return on plan assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Relating to assets still held at the reporting date | — | (67 | ) | (1 | ) | — | (68 | ) | (2 | ) | — | (1 | ) | (1 | ) | (76 | ) | (5 | ) | 1 | — | (1 | ) | (85 | ) | 13 | — | 13 | ||||||||||||||||||||||||||||
Relating to assets sold during the period | — | 103 | 1 | — | 104 | — | — | — | — | — | — | — | — | — | — | 3 | — | 3 | ||||||||||||||||||||||||||||||||||||||
Purchases, sales, and settlements (net) | 1 | (92 | ) | (2 | ) | 65 | (28 | ) | — | — | (2 | ) | 16 | — | 43 | (2 | ) | — | — | 55 | (8 | ) | — | (8 | ) | |||||||||||||||||||||||||||||||
Transfers in and/or out of Level 3 | — | — | — | — | — | (28 | ) | 76 | — | (14 | ) | 9 | (43 | ) | — | 4 | (16 | ) | (12 | ) | — | — | — | |||||||||||||||||||||||||||||||||
Ending balance at October 31, 2012 | $ | 1 | $ | 1,300 | $ | 2 | $ | 65 | $ | 1,368 | $ | — | $ | 76 | $ | — | $ | 21 | $ | 233 | $ | 194 | $ | 88 | $ | — | $ | 2 | $ | 614 | $ | 235 | $ | 1 | $ | 236 | ||||||||||||||||||||
Schedule of weighted-average target and actual asset allocations across the benefit plans | ' | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
U. S. Defined | Non-U.S. Defined | Post-Retirement | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefit Plans | Benefit Plans | Benefit Plans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Plan Assets | Plan Assets | Plan Assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2013 | 2013 | 2013 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Target | Target | Target | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset Category | Allocation | 2013 | 2012 | Allocation | 2013 | 2012 | Allocation | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||||||||||||
Public equity securities | 37.2 | % | 23.7 | % | 48 | % | 41.5 | % | 9.5 | % | 8.6 | % | ||||||||||||||||||||||||||||||||||||||||||||
Private/other equity securities | 12.6 | % | 11.9 | % | 7.9 | % | 11.7 | % | 59.2 | % | 59.6 | % | ||||||||||||||||||||||||||||||||||||||||||||
Real estate and other | (0.5 | )% | (3.3 | )% | 7.5 | % | 10.2 | % | (0.1 | )% | (0.9 | )% | ||||||||||||||||||||||||||||||||||||||||||||
Equity related investments | 55 | % | 49.3 | % | 32.3 | % | 64 | % | 63.4 | % | 63.4 | % | 68 | % | 68.6 | % | 67.3 | % | ||||||||||||||||||||||||||||||||||||||
Debt securities | 45 | % | 48.2 | % | 61.5 | % | 35.2 | % | 32.5 | % | 33.4 | % | 28 | % | 29 | % | 27.9 | % | ||||||||||||||||||||||||||||||||||||||
Cash | — | 2.5 | % | 6.2 | % | 0.8 | % | 4.1 | % | 3.2 | % | 4 | % | 2.4 | % | 4.8 | % | |||||||||||||||||||||||||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||||||||||||||||||||||||||||||||
Schedule of estimated future benefits payable for the retirement and post-retirement plans | ' | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Defined | Non-U.S. | Post-Retirement | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefit Plans | Defined | Benefit Plans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefit Plans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fiscal year ending October 31 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2014 | $ | 694 | $ | 549 | $ | 146 | ||||||||||||||||||||||||||||||||||||||||||||||||||
2015 | $ | 553 | $ | 538 | $ | 76 | (1) | |||||||||||||||||||||||||||||||||||||||||||||||||
2016 | $ | 573 | $ | 546 | $ | 70 | ||||||||||||||||||||||||||||||||||||||||||||||||||
2017 | $ | 610 | $ | 596 | $ | 67 | ||||||||||||||||||||||||||||||||||||||||||||||||||
2018 | $ | 653 | $ | 636 | $ | 65 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Next five fiscal years to October 31, 2023 | $ | 3,681 | $ | 3,960 | $ | 286 | ||||||||||||||||||||||||||||||||||||||||||||||||||
-1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Decrease in future benefits payable due to the winding down of the 2012 EER program. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments_Tables
Commitments (Tables) | 12 Months Ended | ||||||||||||||||||||||
Oct. 31, 2013 | |||||||||||||||||||||||
Commitments | ' | ||||||||||||||||||||||
Future annual lease commitments and sublease rental income | ' | ||||||||||||||||||||||
Future annual lease commitments and sublease rental income as of October 31, 2013 were as follows: | |||||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | Total | |||||||||||||||||
In millions | |||||||||||||||||||||||
Operating lease commitments | $ | 763 | $ | 605 | $ | 435 | $ | 275 | $ | 180 | $ | 735 | $ | 2,993 | |||||||||
Less: Sublease rental income | (35 | ) | (24 | ) | (12 | ) | (5 | ) | (5 | ) | (12 | ) | (93 | ) | |||||||||
$ | 728 | $ | 581 | $ | 423 | $ | 270 | $ | 175 | $ | 723 | $ | 2,900 | ||||||||||
Capital lease commitments | $ | 229 | $ | 20 | $ | 7 | $ | 4 | $ | 4 | $ | 25 | $ | 289 | |||||||||
Less: Interest payments | (5 | ) | (3 | ) | (2 | ) | (2 | ) | (2 | ) | (6 | ) | (20 | ) | |||||||||
$ | 224 | $ | 17 | $ | 5 | $ | 2 | $ | 2 | $ | 19 | $ | 269 | ||||||||||
Future unconditional purchase obligations | ' | ||||||||||||||||||||||
These unconditional purchase obligations are related principally to inventory and other items. Future unconditional purchase obligations at October 31, 2013 were as follows: | |||||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | Total | |||||||||||||||||
In millions | |||||||||||||||||||||||
Unconditional purchase obligations | $ | 1,191 | $ | 510 | $ | 196 | $ | 141 | $ | 128 | $ | — | $ | 2,166 |
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | |||||||||||||||||||||||||
Oct. 31, 2013 | ||||||||||||||||||||||||||
Segment Information | ' | |||||||||||||||||||||||||
Schedule of Revenue and Earnings (Loss) from Operations, by Segment | ' | |||||||||||||||||||||||||
Printing and Personal Systems | ||||||||||||||||||||||||||
Personal | Printing | Enterprise | Enterprise | Software(1) | HP Financial | Corporate | Total | |||||||||||||||||||
Systems | Group | Services | Services | Investments(2) | ||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||
2013 | ||||||||||||||||||||||||||
Net revenue | $ | 31,124 | $ | 23,643 | $ | 27,303 | $ | 23,041 | $ | 3,593 | $ | 3,570 | $ | 24 | $ | 112,298 | ||||||||||
Intersegment net revenue and other | 947 | 211 | 880 | 479 | 320 | 59 | — | 2,896 | ||||||||||||||||||
Total segment net revenue | $ | 32,071 | $ | 23,854 | $ | 28,183 | $ | 23,520 | $ | 3,913 | $ | 3,629 | $ | 24 | $ | 115,194 | ||||||||||
Earnings (loss) from operations | $ | 949 | $ | 3,890 | $ | 4,301 | $ | 679 | $ | 866 | $ | 399 | $ | (236 | ) | $ | 10,848 | |||||||||
2012 | ||||||||||||||||||||||||||
Net revenue | $ | 34,774 | $ | 24,266 | $ | 28,628 | $ | 25,091 | $ | 3,757 | $ | 3,784 | $ | 57 | $ | 120,357 | ||||||||||
Intersegment net revenue and other | 951 | 221 | 1,151 | 518 | 303 | 35 | 1 | 3,180 | ||||||||||||||||||
Total segment net revenue | $ | 35,725 | $ | 24,487 | $ | 29,779 | $ | 25,609 | $ | 4,060 | $ | 3,819 | $ | 58 | $ | 123,537 | ||||||||||
Earnings (loss) from operations | $ | 1,689 | $ | 3,585 | $ | 5,194 | $ | 1,045 | $ | 827 | $ | 388 | $ | (233 | ) | $ | 12,495 | |||||||||
2011 | ||||||||||||||||||||||||||
Net revenue | $ | 38,448 | $ | 25,874 | $ | 30,135 | $ | 25,938 | $ | 3,128 | $ | 3,568 | $ | 154 | $ | 127,245 | ||||||||||
Intersegment net revenue and other | 1,206 | 302 | 1,325 | 330 | 239 | 28 | 12 | 3,442 | ||||||||||||||||||
Total segment net revenue | $ | 39,654 | $ | 26,176 | $ | 31,460 | $ | 26,268 | $ | 3,367 | $ | 3,596 | $ | 166 | $ | 130,687 | ||||||||||
Earnings (loss) from operations | $ | 2,327 | $ | 3,927 | $ | 6,265 | $ | 1,972 | $ | 722 | $ | 348 | $ | (1,633 | ) | $ | 13,928 | |||||||||
-1 | ||||||||||||||||||||||||||
Includes the results of Autonomy from the date of acquisition in October 2011. | ||||||||||||||||||||||||||
-2 | ||||||||||||||||||||||||||
Includes the impact of the decision to wind down the webOS device business during the quarter ended October 31, 2011. | ||||||||||||||||||||||||||
Schedule of Reconciliation of Revenues and Earnings before Taxes from Segments to Consolidated | ' | |||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||
Net revenue: | ||||||||||||||||||||||||||
Segment total | $ | 115,194 | $ | 123,537 | $ | 130,687 | ||||||||||||||||||||
Elimination of intersegment net revenue and other | (2,896 | ) | (3,180 | ) | (3,442 | ) | ||||||||||||||||||||
Total HP consolidated net revenue | $ | 112,298 | $ | 120,357 | $ | 127,245 | ||||||||||||||||||||
Earnings before taxes: | ||||||||||||||||||||||||||
Total segment earnings from operations | $ | 10,848 | $ | 12,495 | $ | 13,928 | ||||||||||||||||||||
Corporate and unallocated costs and eliminations | (832 | ) | (787 | ) | (314 | ) | ||||||||||||||||||||
Unallocated costs related to certain stock-based compensation expense | (500 | ) | (635 | ) | (618 | ) | ||||||||||||||||||||
Amortization of intangible assets | (1,373 | ) | (1,784 | ) | (1,607 | ) | ||||||||||||||||||||
Impairment of goodwill and intangible assets | — | (18,035 | ) | (885 | ) | |||||||||||||||||||||
Restructuring charges | (990 | ) | (2,266 | ) | (645 | ) | ||||||||||||||||||||
Acquisition-related charges | (22 | ) | (45 | ) | (182 | ) | ||||||||||||||||||||
Interest and other, net | (621 | ) | (876 | ) | (695 | ) | ||||||||||||||||||||
Total HP consolidated earnings (loss) before taxes | $ | 6,510 | $ | (11,933 | ) | $ | 8,982 | |||||||||||||||||||
Schedule of Reconciliation of Assets from Segments to Consolidated | ' | |||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||
Personal Systems | $ | 11,870 | $ | 12,752 | $ | 15,781 | ||||||||||||||||||||
Printing | 10,705 | 11,169 | 11,939 | |||||||||||||||||||||||
Printing and Personal Systems Group | 22,575 | 23,921 | 27,720 | |||||||||||||||||||||||
Enterprise Group | 30,858 | 30,851 | 32,388 | |||||||||||||||||||||||
Enterprise Services | 15,229 | 16,383 | 25,765 | |||||||||||||||||||||||
Software | 11,868 | 12,264 | 21,028 | |||||||||||||||||||||||
HP Financial Services | 12,011 | 12,924 | 13,543 | |||||||||||||||||||||||
Corporate Investments | 123 | 248 | 517 | |||||||||||||||||||||||
Corporate and unallocated assets | 13,012 | 12,177 | 8,556 | |||||||||||||||||||||||
Total HP consolidated assets | $ | 105,676 | $ | 108,768 | $ | 129,517 | ||||||||||||||||||||
Schedule of net revenue by geographical areas | ' | |||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||
Net revenue: | ||||||||||||||||||||||||||
U.S. | $ | 40,284 | $ | 42,140 | $ | 44,111 | ||||||||||||||||||||
Non-U.S. | 72,014 | 78,217 | 83,134 | |||||||||||||||||||||||
Total HP consolidated net revenue | $ | 112,298 | $ | 120,357 | $ | 127,245 | ||||||||||||||||||||
Schedule of net property, plant and equipment by geographical areas | ' | |||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||
Net property, plant and equipment: | ||||||||||||||||||||||||||
U.S. | $ | 5,546 | $ | 5,894 | $ | 6,126 | ||||||||||||||||||||
U.K. | 1,090 | 1,195 | 1,195 | |||||||||||||||||||||||
Other countries | 4,827 | 4,865 | 4,971 | |||||||||||||||||||||||
Total HP consolidated net property, plant and equipment | $ | 11,463 | $ | 11,954 | $ | 12,292 | ||||||||||||||||||||
Schedule of Revenue by Segment and Business Unit | ' | |||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||
Net revenue: | ||||||||||||||||||||||||||
Notebooks | $ | 16,029 | $ | 18,830 | $ | 21,319 | ||||||||||||||||||||
Desktops | 12,844 | 13,888 | 15,260 | |||||||||||||||||||||||
Workstations | 2,147 | 2,148 | 2,216 | |||||||||||||||||||||||
Other | 1,051 | 859 | 859 | |||||||||||||||||||||||
Personal Systems | 32,071 | 35,725 | 39,654 | |||||||||||||||||||||||
Supplies | 15,716 | 16,151 | 17,154 | |||||||||||||||||||||||
Commercial Hardware | 5,702 | 5,895 | 6,183 | |||||||||||||||||||||||
Consumer Hardware | 2,436 | 2,441 | 2,839 | |||||||||||||||||||||||
Printing | 23,854 | 24,487 | 26,176 | |||||||||||||||||||||||
Printing and Personal Systems Group | 55,925 | 60,212 | 65,830 | |||||||||||||||||||||||
Industry Standard Servers | 12,102 | 12,582 | 13,521 | |||||||||||||||||||||||
Technology Services | 8,890 | 9,288 | 9,396 | |||||||||||||||||||||||
Storage | 3,475 | 3,815 | 4,056 | |||||||||||||||||||||||
Networking | 2,526 | 2,482 | 2,392 | |||||||||||||||||||||||
Business Critical Systems | 1,190 | 1,612 | 2,095 | |||||||||||||||||||||||
Enterprise Group | 28,183 | 29,779 | 31,460 | |||||||||||||||||||||||
Infrastructure Technology Outsourcing | 14,682 | 15,792 | 16,290 | |||||||||||||||||||||||
Application and Business Services | 8,838 | 9,817 | 9,978 | |||||||||||||||||||||||
Enterprise Services | 23,520 | 25,609 | 26,268 | |||||||||||||||||||||||
Software(1) | 3,913 | 4,060 | 3,367 | |||||||||||||||||||||||
HP Financial Services | 3,629 | 3,819 | 3,596 | |||||||||||||||||||||||
Corporate Investments(2) | 24 | 58 | 166 | |||||||||||||||||||||||
Total segments | 115,194 | 123,537 | 130,687 | |||||||||||||||||||||||
Eliminations of intersegment net revenue and other | (2,896 | ) | (3,180 | ) | (3,442 | ) | ||||||||||||||||||||
Total HP consolidated net revenue | $ | 112,298 | $ | 120,357 | $ | 127,245 | ||||||||||||||||||||
-1 | ||||||||||||||||||||||||||
Includes the results of Autonomy from the date of acquisition in October 2011. | ||||||||||||||||||||||||||
-2 | ||||||||||||||||||||||||||
Includes the impact of the decision to wind down the webOS device business during the quarter ended October 31, 2011. | ||||||||||||||||||||||||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Item | |||
Summary of Significant Accounting Policies | ' | ' | ' |
Number of customer negotiated refund or return rights for the delivered elements | 0 | ' | ' |
Advertising cost | $878 | $1,000 | $1,200 |
Buildings and improvements | Minimum | ' | ' | ' |
Property, Plant and Equipment, Net | ' | ' | ' |
Estimated useful life for property, plant and equipment | '5 years | ' | ' |
Buildings and improvements | Maximum | ' | ' | ' |
Property, Plant and Equipment, Net | ' | ' | ' |
Estimated useful life for property, plant and equipment | '40 years | ' | ' |
Machinery and equipment | Minimum | ' | ' | ' |
Property, Plant and Equipment, Net | ' | ' | ' |
Estimated useful life for property, plant and equipment | '3 years | ' | ' |
Machinery and equipment | Maximum | ' | ' | ' |
Property, Plant and Equipment, Net | ' | ' | ' |
Estimated useful life for property, plant and equipment | '15 years | ' | ' |
Capitalized internal use software | Minimum | ' | ' | ' |
Property, Plant and Equipment, Net | ' | ' | ' |
Estimated useful life for property, plant and equipment | '3 years | ' | ' |
Capitalized internal use software | Maximum | ' | ' | ' |
Property, Plant and Equipment, Net | ' | ' | ' |
Estimated useful life for property, plant and equipment | '5 years | ' | ' |
Capitalized software for resale | Maximum | ' | ' | ' |
Property, Plant and Equipment, Net | ' | ' | ' |
Estimated useful life for property, plant and equipment | '3 years | ' | ' |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details 2) | 12 Months Ended |
Oct. 31, 2013 | |
Item | |
Segment Reporting Information | ' |
Number of changes to reporting units | 2 |
Enterprise Group | ' |
Segment Reporting Information | ' |
Number of reporting units | 2 |
Enterprise Services | ' |
Segment Reporting Information | ' |
Number of reporting units | 2 |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Details 3) (USD $) | 12 Months Ended | |
In Billions, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 |
Item | ||
Concentration Risk | ' | ' |
Estimated useful life for purchased intangible assets | '5 years | ' |
Number of institution designed to limit exposure as per entity's policy | 1 | ' |
Minimum | ' | ' |
Concentration Risk | ' | ' |
Estimated useful life for purchased intangible assets | '1 year | ' |
Maximum | ' | ' |
Concentration Risk | ' | ' |
Estimated useful life for purchased intangible assets | '10 years | ' |
Accounts Receivable | Major Customers | Ten largest distributor | ' | ' |
Concentration Risk | ' | ' |
Number of largest distributor and reseller receivable balances or largest outsourced manufacturer receivable balances | 10 | ' |
Concentration of credit risk (as a percent) | 21.00% | 14.00% |
Accounts Receivable | Major Customers | Three largest outsourced manufacturer | ' | ' |
Concentration Risk | ' | ' |
Number of largest distributor and reseller receivable balances or largest outsourced manufacturer receivable balances | 3 | ' |
Concentration of credit risk (as a percent) | 82.00% | 69.00% |
Supplier receivables | 1 | 1.2 |
StockBased_Compensation_Detail
Stock-Based Compensation (Details) (USD $) | 12 Months Ended | ||
Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | |
Stock-Based Compensation | ' | ' | ' |
Stock-based compensation expense | $500,000,000 | $635,000,000 | $685,000,000 |
Income tax benefit | -158,000,000 | -197,000,000 | -219,000,000 |
Stock-based compensation expense, net of tax | 342,000,000 | 438,000,000 | 466,000,000 |
Cash received from option exercises and purchases under the ESPP | 288,000,000 | 716,000,000 | 896,000,000 |
Benefit realized for the tax deduction from option exercises of share-based payment awards | 13,000,000 | 57,000,000 | 220,000,000 |
Restricted Stock Awards | ' | ' | ' |
Shares | ' | ' | ' |
Outstanding at the beginning of the period (in shares) | 25,532,000 | 16,813,000 | 5,848,000 |
Granted (in shares) | 20,707,000 | 20,316,000 | 17,569,000 |
Vested (in shares) | -10,966,000 | -8,521,000 | -5,660,000 |
Forfeited (in shares) | -3,011,000 | -3,076,000 | -944,000 |
Outstanding at the end of the period (in shares) | 32,262,000 | 25,532,000 | 16,813,000 |
Weighted-Average Grant Date Fair Value Per Share | ' | ' | ' |
Outstanding at the beginning of the period (in dollars per share) | $31 | $39 | $45 |
Granted (in dollars per share) | $15 | $27 | $38 |
Vested (in dollars per share) | $33 | $38 | $41 |
Forfeited (in dollars per share) | $24 | $34 | $43 |
Outstanding at the end of the period (in dollars per share) | $21 | $31 | $39 |
Unrecognized pre-tax stock-based compensation expense and recognition period | ' | ' | ' |
Unrecognized pre-tax stock-based compensation expense | 330,000,000 | 508,000,000 | 526,000,000 |
Remaining weighted-average vesting period over which pre-tax stock-based compensation expense expected to be recognized | '1 year 3 months 18 days | '1 year 3 months 18 days | '1 year 4 months 24 days |
Weighted-average fair value and the assumptions used to measure fair value | ' | ' | ' |
Weighted average fair value of grants per unit (In dollars per share) | $15 | $27 | $38 |
Stock Options | ' | ' | ' |
Unrecognized pre-tax stock-based compensation expense and recognition period | ' | ' | ' |
Unrecognized pre-tax stock-based compensation expense | 112,000,000 | 157,000,000 | 264,000,000 |
Remaining weighted-average vesting period over which pre-tax stock-based compensation expense expected to be recognized | '2 years 2 months 12 days | '1 year 9 months 18 days | '2 years 3 months 18 days |
Weighted-average fair value and the assumptions used to measure fair value | ' | ' | ' |
Weighted- average fair value of grants per option (in dollars per share) | $4.26 | $9.06 | $7.85 |
Expected volatility (as a percent) | 42.00% | 42.00% | 41.00% |
Risk-free interest rate (as a percent) | 1.07% | 1.17% | 1.20% |
Expected dividend yield (as a percent) | 3.64% | 1.83% | 1.97% |
Expected term in months | '71 months | '67 months | '63 months |
Total grant date fair value of options vested | 64,000,000 | 104,000,000 | 95,000,000 |
Shares | ' | ' | ' |
Outstanding at the beginning of the period (in shares) | 87,296,000 | 120,243,000 | 142,916,000 |
Granted (in shares) | 25,785,000 | 7,529,000 | 18,804,000 |
Exercised (in shares) | -10,063,000 | -29,683,000 | -37,121,000 |
Forfeited/cancelled/expired (in shares) | -18,976,000 | -10,793,000 | -4,356,000 |
Outstanding at the end of the period (in shares) | 84,042,000 | 87,296,000 | 120,243,000 |
Vested and expected to vest at the end of the period (in shares) | 80,004,000 | 85,935,000 | 117,066,000 |
Exercisable at the end of the period (in shares) | 49,825,000 | 68,437,000 | 97,967,000 |
Weighted-Average Exercise Price | ' | ' | ' |
Outstanding at the beginning of the period (in dollars per share) | $29 | $28 | $28 |
Granted (in dollars per share) | $15 | $27 | $21 |
Exercised (in dollars per share) | $19 | $20 | $23 |
Forfeited/cancelled/expired (in dollars per share) | $25 | $35 | $39 |
Outstanding at the end of the period (in dollars per share) | $27 | $29 | $28 |
Vested and expected to vest at the end of the period (in dollars per share) | $27 | $29 | $28 |
Exercisable at the end of the period (in dollars per share) | $33 | $31 | $29 |
Weighted-Average Remaining Contractual Term | ' | ' | ' |
Outstanding at the end of the period | '3 years 10 months 24 days | '3 years | '3 years |
Vested and expected to vest at the end of the period | '3 years 8 months 12 days | '2 years 10 months 24 days | '2 years 10 months 24 days |
Exercisable at the end of the period | '1 year 9 months 18 days | '1 year 10 months 24 days | '2 years |
Aggregate Intrinsic Value | ' | ' | ' |
Outstanding at the end of the period | 303,000,000 | 15,000,000 | 460,000,000 |
Vested and expected to vest at the end of the period | 274,000,000 | 15,000,000 | 442,000,000 |
Exercisable at the end of the period | 58,000,000 | 12,000,000 | 332,000,000 |
Options assumed through acquisitions (in shares) | ' | ' | 6,000,000 |
Weighted-average exercise price of options assumed through acquisitions (in dollars per share) | ' | ' | $14 |
Options exercised | 36,000,000 | 176,000,000 | 673,000,000 |
Stock Options | Minimum | ' | ' | ' |
Stock-Based Compensation | ' | ' | ' |
Vesting period | '3 years | ' | ' |
Stock Options | Maximum | ' | ' | ' |
Stock-Based Compensation | ' | ' | ' |
Vesting period | '4 years | ' | ' |
PRUs | ' | ' | ' |
Stock-Based Compensation | ' | ' | ' |
Performance period to determine share based awards | '3 years | ' | ' |
Shares | ' | ' | ' |
Outstanding at the beginning of the period (in shares) | 5,688,000 | 11,382,000 | 18,508,000 |
Granted (in shares) | 0 | 1,251,000 | 5,950,000 |
Change in units due to performance and market conditions achievement for PRUs vested in the period (in shares) | -4,307,000 | -5,617,000 | -10,862,000 |
Forfeited (in shares) | -356,000 | -1,328,000 | -2,214,000 |
Outstanding at the end of the period (in shares) | 1,025,000 | 5,688,000 | 11,382,000 |
Outstanding Target shares assigned a fair value at the end of the period | 690,000 | 3,492,000 | 5,867,000 |
Unrecognized pre-tax stock-based compensation expense and recognition period | ' | ' | ' |
Unrecognized pre-tax stock-based compensation expense | $3,000,000 | $17,000,000 | $82,000,000 |
Remaining weighted-average vesting period over which pre-tax stock-based compensation expense expected to be recognized | '1 year | '1 year 1 month 6 days | '1 year 4 months 24 days |
PRUs | Minimum | ' | ' | ' |
Stock-Based Compensation | ' | ' | ' |
Percentage of target shares granted used in computation of issuance of unvested awards | 0.00% | ' | ' |
PRUs | Maximum | ' | ' | ' |
Stock-Based Compensation | ' | ' | ' |
Percentage of target shares granted used in computation of issuance of unvested awards | 200.00% | ' | ' |
PRU awards granted in fiscal 2012 | ' | ' | ' |
Weighted-Average Grant Date Fair Value Per Share | ' | ' | ' |
Granted (in dollars per share) | $13.14 | $27 | ' |
Weighted-average fair value and the assumptions used to measure fair value | ' | ' | ' |
Weighted average fair value of grants per unit (In dollars per share) | $13.14 | $27 | ' |
PRU awards granted prior to fiscal 2012 | ' | ' | ' |
Weighted-Average Grant Date Fair Value Per Share | ' | ' | ' |
Granted (in dollars per share) | $0 | $3.35 | $27.59 |
Weighted-average fair value and the assumptions used to measure fair value | ' | ' | ' |
Weighted average fair value of grants per unit (In dollars per share) | $0 | $3.35 | $27.59 |
Expected volatility (as a percent) | 33.00% | 41.00% | 30.00% |
Risk-free interest rate (as a percent) | 0.18% | 0.14% | 0.38% |
Expected dividend yield (as a percent) | 3.94% | 1.78% | 0.75% |
Expected term in months | '12 months | '15 months | '19 months |
Cash-settled awards and restricted stock awards | Minimum | ' | ' | ' |
Stock-Based Compensation | ' | ' | ' |
Vesting period | '1 year | ' | ' |
Cash-settled awards and restricted stock awards | Maximum | ' | ' | ' |
Stock-Based Compensation | ' | ' | ' |
Vesting period | '3 years | ' | ' |
StockBased_Compensation_Detail1
Stock-Based Compensation (Details 2) (Stock Options, USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Oct. 31, 2013 |
Information about options outstanding, by exercise price range | ' |
Options Outstanding - Shares Outstanding | 84,042 |
Options Outstanding - Weighted Average Remaining Contractual Life | '3 years 10 months 24 days |
Options Outstanding - Weighted Average Exercise Price (in dollars per share) | $27 |
Options Exercisable - Shares Exercisable | 49,825 |
Options Exercisable - Weighted-Average Exercise Price (in dollars per share) | $33 |
$0-$9.99 | ' |
Information about options outstanding, by exercise price range | ' |
Exercise price range, lower range limit (in dollars per share) | $0 |
Exercise price range, upper range limit (in dollars per share) | $9.99 |
Options Outstanding - Shares Outstanding | 616 |
Options Outstanding - Weighted Average Remaining Contractual Life | '4 years 3 months 18 days |
Options Outstanding - Weighted Average Exercise Price (in dollars per share) | $7 |
Options Exercisable - Shares Exercisable | 595 |
Options Exercisable - Weighted-Average Exercise Price (in dollars per share) | $7 |
$10-$19.99 | ' |
Information about options outstanding, by exercise price range | ' |
Exercise price range, lower range limit (in dollars per share) | $10 |
Exercise price range, upper range limit (in dollars per share) | $19.99 |
Options Outstanding - Shares Outstanding | 27,161 |
Options Outstanding - Weighted Average Remaining Contractual Life | '6 years 8 months 12 days |
Options Outstanding - Weighted Average Exercise Price (in dollars per share) | $14 |
Options Exercisable - Shares Exercisable | 3,991 |
Options Exercisable - Weighted-Average Exercise Price (in dollars per share) | $14 |
$20-$29.99 | ' |
Information about options outstanding, by exercise price range | ' |
Exercise price range, lower range limit (in dollars per share) | $20 |
Exercise price range, upper range limit (in dollars per share) | $29.99 |
Options Outstanding - Shares Outstanding | 18,906 |
Options Outstanding - Weighted Average Remaining Contractual Life | '5 years 7 months 6 days |
Options Outstanding - Weighted Average Exercise Price (in dollars per share) | $25 |
Options Exercisable - Shares Exercisable | 8,204 |
Options Exercisable - Weighted-Average Exercise Price (in dollars per share) | $25 |
$30-$39.99 | ' |
Information about options outstanding, by exercise price range | ' |
Exercise price range, lower range limit (in dollars per share) | $30 |
Exercise price range, upper range limit (in dollars per share) | $39.99 |
Options Outstanding - Shares Outstanding | 20,018 |
Options Outstanding - Weighted Average Remaining Contractual Life | '6 months |
Options Outstanding - Weighted Average Exercise Price (in dollars per share) | $32 |
Options Exercisable - Shares Exercisable | 19,940 |
Options Exercisable - Weighted-Average Exercise Price (in dollars per share) | $32 |
$40-$49.99 | ' |
Information about options outstanding, by exercise price range | ' |
Exercise price range, lower range limit (in dollars per share) | $40 |
Exercise price range, upper range limit (in dollars per share) | $49.99 |
Options Outstanding - Shares Outstanding | 16,422 |
Options Outstanding - Weighted Average Remaining Contractual Life | '1 year 4 months 24 days |
Options Outstanding - Weighted Average Exercise Price (in dollars per share) | $43 |
Options Exercisable - Shares Exercisable | 16,263 |
Options Exercisable - Weighted-Average Exercise Price (in dollars per share) | $43 |
$50-$59.99 | ' |
Information about options outstanding, by exercise price range | ' |
Exercise price range, lower range limit (in dollars per share) | $50 |
Exercise price range, upper range limit (in dollars per share) | $59.99 |
Options Outstanding - Shares Outstanding | 667 |
Options Outstanding - Weighted Average Remaining Contractual Life | '3 years 2 months 12 days |
Options Outstanding - Weighted Average Exercise Price (in dollars per share) | $52 |
Options Exercisable - Shares Exercisable | 580 |
Options Exercisable - Weighted-Average Exercise Price (in dollars per share) | $52 |
$60 and over | ' |
Information about options outstanding, by exercise price range | ' |
Exercise price range, lower range limit (in dollars per share) | $60 |
Options Outstanding - Shares Outstanding | 252 |
Options Outstanding - Weighted Average Remaining Contractual Life | '8 months 12 days |
Options Outstanding - Weighted Average Exercise Price (in dollars per share) | $73 |
Options Exercisable - Shares Exercisable | 252 |
Options Exercisable - Weighted-Average Exercise Price (in dollars per share) | $73 |
StockBased_Compensation_Detail2
Stock-Based Compensation (Details 3) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Employee stock purchase plan | ' | ' | ' |
Stock-based compensation expense, net of tax | $342,000 | $438,000 | $466,000 |
Shares reserved | ' | ' | ' |
Shares available for future grant at the end of the period | 300,984 | 152,837 | 172,259 |
Shares reserved for future issuance under all stock-related benefit plans at the end of the period | 417,642 | 270,498 | 319,602 |
2011 Employee Stock Purchase Plan | ' | ' | ' |
Employee stock purchase plan | ' | ' | ' |
Maximum contribution limit as percentage of base compensation (as a percent) | ' | ' | 10.00% |
Stock purchase price as a percentage of the fair market value on the purchase date | ' | ' | 95.00% |
Stock-based compensation expense, net of tax | ' | ' | $0 |
Net_Earnings_Per_Share_Details
Net Earnings Per Share (Details) (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Numerator: | ' | ' | ' |
Net earnings (loss) | $5,113 | ($12,650) | $7,074 |
Denominator: | ' | ' | ' |
Weighted-average shares used to compute basic EPS | 1,934 | 1,974 | 2,094 |
Dilutive effect of employee stock plans (in shares) | 16 | ' | 34 |
Weighted-average shares used to compute diluted EPS | 1,950 | 1,974 | 2,128 |
Net earnings (loss) per share: | ' | ' | ' |
Basic (in dollars per share) | $2.64 | ($6.41) | $3.38 |
Diluted (in dollars per share) | $2.62 | ($6.41) | $3.32 |
Stock Options | ' | ' | ' |
Other information related to EPS computation | ' | ' | ' |
Antidilutive securities excluded from the calculation of EPS (in shares) | ' | 10 | ' |
Options with exercise price greater than market price of stock | ' | ' | ' |
Other information related to EPS computation | ' | ' | ' |
Antidilutive securities excluded from the calculation of EPS (in shares) | 51 | 56 | 25 |
Stock options combined exercise price unamortized fair value excess tax benefits greater than market price | ' | ' | ' |
Other information related to EPS computation | ' | ' | ' |
Antidilutive securities excluded from the calculation of EPS (in shares) | 1 | 1 | 1 |
Balance_Sheet_Details_Details
Balance Sheet Details (Details) (USD $) | 12 Months Ended | ||
Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | |
Item | |||
Accounts Receivable, Net | ' | ' | ' |
Accounts receivable, gross | $16,208,000,000 | $16,871,000,000 | $18,694,000,000 |
Less: Allowance for doubtful accounts | ' | ' | ' |
Balance at beginning of year | 464,000,000 | 470,000,000 | 525,000,000 |
Increase in allowance from acquisitions | ' | ' | 27,000,000 |
Provision for doubtful accounts | 23,000,000 | 100,000,000 | 23,000,000 |
Deductions, net of recoveries | -155,000,000 | -106,000,000 | -105,000,000 |
Balance at end of year | 332,000,000 | 464,000,000 | 470,000,000 |
Accounts receivable, net | 15,876,000,000 | 16,407,000,000 | 18,224,000,000 |
Number of cases providing partial recourse | 1 | ' | ' |
Trade receivables sold | 4,900,000,000 | 4,300,000,000 | ' |
Non-recourse arrangements | ' | ' | ' |
Aggregate maximum program capacity | 764,000,000 | 636,000,000 | ' |
Aggregate available capacity | 450,000,000 | 434,000,000 | ' |
Aggregate utilized capacity | 314,000,000 | 202,000,000 | ' |
Partial-recourse arrangement | ' | ' | ' |
Maximum program capacity | 631,000,000 | 876,000,000 | ' |
Available capacity | 177,000,000 | 413,000,000 | ' |
Utilized capacity | 454,000,000 | 463,000,000 | ' |
Total arrangements | ' | ' | ' |
Aggregate maximum program capacity | 1,395,000,000 | 1,512,000,000 | ' |
Aggregate available capacity | 627,000,000 | 847,000,000 | ' |
Aggregate utilized capacity | 768,000,000 | 665,000,000 | ' |
Inventory | ' | ' | ' |
Finished goods | 3,847,000,000 | 4,094,000,000 | ' |
Purchased parts and fabricated assemblies | 2,199,000,000 | 2,223,000,000 | ' |
Inventory, net | 6,046,000,000 | 6,317,000,000 | ' |
Other Current Assets | ' | ' | ' |
Deferred tax assets - short-term | 3,893,000,000 | 3,783,000,000 | ' |
Value-added taxes receivable from various governments | 2,425,000,000 | 3,298,000,000 | ' |
Supplier and other receivables | 2,579,000,000 | 2,549,000,000 | ' |
Prepaid and other current assets | 4,238,000,000 | 3,730,000,000 | ' |
Other current assets, total | 13,135,000,000 | 13,360,000,000 | ' |
Long-Term Financing Receivables and Other Assets | ' | ' | ' |
Financing receivables, net | 3,878,000,000 | 4,292,000,000 | ' |
Deferred tax assets-long-term | 1,346,000,000 | 1,581,000,000 | ' |
Deferred costs-long-term | 999,000,000 | 1,301,000,000 | ' |
Other | 3,333,000,000 | 3,419,000,000 | ' |
Long-Term Financing Receivables and Other Assets, total | 9,556,000,000 | 10,593,000,000 | ' |
Other Accrued Liabilities | ' | ' | ' |
Other accrued taxes | 2,703,000,000 | 3,264,000,000 | ' |
Warranty | 1,390,000,000 | 1,496,000,000 | ' |
Sales and marketing programs | 2,823,000,000 | 2,900,000,000 | ' |
Other | 5,590,000,000 | 5,840,000,000 | ' |
Other Accrued Liabilities, total | 12,506,000,000 | 13,500,000,000 | ' |
Other Liabilities | ' | ' | ' |
Pension, post-retirement, and post-employment liabilities | 5,098,000,000 | 7,780,000,000 | ' |
Deferred tax liability - long-term | 2,668,000,000 | 2,948,000,000 | ' |
Long-term deferred revenue | 3,907,000,000 | 3,371,000,000 | ' |
Other long-term liabilities | 4,218,000,000 | 3,381,000,000 | ' |
Other Liabilities, total | $15,891,000,000 | $17,480,000,000 | ' |
Balance_Sheet_Details_Details_
Balance Sheet Details (Details 2) (USD $) | 12 Months Ended | ||
Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | |
Property, Plant and Equipment, Net | ' | ' | ' |
Property, plant and equipment, gross | $26,133,000,000 | $25,883,000,000 | ' |
Accumulated depreciation | -14,670,000,000 | -13,929,000,000 | ' |
Property, plant and equipment, net | 11,463,000,000 | 11,954,000,000 | 12,292,000,000 |
Depreciation expense | 3,200,000,000 | 3,300,000,000 | 3,400,000,000 |
Investment in property, plant and equipment | 3,200,000,000 | ' | ' |
Sale and retirement of gross Property, Plant and Equipment | 3,000,000,000 | ' | ' |
Accumulated depreciation on sale and retirement of property, plant and equipment | 2,500,000,000 | ' | ' |
Land | ' | ' | ' |
Property, Plant and Equipment, Net | ' | ' | ' |
Property, plant and equipment, gross | 626,000,000 | 636,000,000 | ' |
Buildings and leasehold improvements | ' | ' | ' |
Property, Plant and Equipment, Net | ' | ' | ' |
Property, plant and equipment, gross | 8,942,000,000 | 8,744,000,000 | ' |
Machinery and equipment | ' | ' | ' |
Property, Plant and Equipment, Net | ' | ' | ' |
Property, plant and equipment, gross | $16,565,000,000 | $16,503,000,000 | ' |
Acquisitions_Details
Acquisitions (Details) (USD $) | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | Oct. 31, 2011 | Oct. 31, 2013 | Oct. 31, 2011 | Oct. 31, 2012 |
Acquisitions | Digital Risk LLC | Autonomy | Autonomy | ||||
Item | MphasiS Limited | ||||||
Acquisitions: | ' | ' | ' | ' | ' | ' | ' |
Number of acquisitions | ' | ' | ' | 4 | ' | ' | ' |
Purchase price allocation | ' | ' | ' | ' | ' | ' | ' |
Total fair value of purchase consideration | ' | ' | ' | $11,400,000,000 | $174,000,000 | $11,000,000,000 | ' |
Goodwill | 31,124,000,000 | 31,069,000,000 | 44,551,000,000 | 6,900,000,000 | 112,000,000 | ' | 1,200,000,000 |
Intangible assets | ' | ' | ' | 4,700,000,000 | ' | ' | ' |
Net liabilities assumed | ' | ' | ' | $206,000,000 | ' | ' | ' |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets (Details) (USD $) | 3 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||||||||||
Jan. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | Oct. 31, 2012 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2011 | Oct. 31, 2013 | Aug. 01, 2012 | |
segment | segment | Autonomy | Autonomy Goodwill and Intangibles | TS reporting unit | Personal Systems | Personal Systems | Personal Systems | Printing | Printing | Enterprise Group | Enterprise Group | Enterprise Services | Enterprise Services | Software | Software | Software | HP Financial Services | HP Financial Services | HP Financial Services | Corporate Investments | Corporate Investments | Corporate Investments | ESSN reporting unit | Other reporting units | |||
Item | Autonomy | ||||||||||||||||||||||||||
Goodwill | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net balance at the beginning of the period | $31,069,000,000 | $31,069,000,000 | $44,551,000,000 | ' | ' | ' | $9,280,000,000 | $2,498,000,000 | $2,498,000,000 | $2,498,000,000 | $2,471,000,000 | $2,487,000,000 | $17,041,000,000 | $17,349,000,000 | ' | $8,001,000,000 | $8,899,000,000 | $14,063,000,000 | ' | $144,000,000 | $144,000,000 | $144,000,000 | $25,000,000 | ' | ' | $7,800,000,000 | ' |
Goodwill acquired during the period | ' | 112,000,000 | 16,000,000 | ' | ' | ' | ' | ' | ' | ' | 16,000,000 | ' | ' | ' | 112,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill adjustments/reclassifications | ' | -57,000,000 | 207,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 39,000,000 | -308,000,000 | -15,000,000 | -40,000,000 | -81,000,000 | 580,000,000 | ' | ' | ' | ' | -25,000,000 | ' | ' | ' | ' |
Finite-lived Intangible Assets, Accumulated Impairment Losses | ' | ' | -4,300,000,000 | ' | -3,100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impairment loss | ' | ' | -13,705,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -7,961,000,000 | ' | -5,744,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net balance at the end of the period | ' | 31,124,000,000 | 31,069,000,000 | 44,551,000,000 | 1,200,000,000 | ' | 9,280,000,000 | 2,498,000,000 | 2,498,000,000 | 2,498,000,000 | 2,487,000,000 | 2,487,000,000 | 17,080,000,000 | 17,041,000,000 | 97,000,000 | ' | 8,818,000,000 | 8,899,000,000 | ' | 144,000,000 | 144,000,000 | 144,000,000 | ' | ' | ' | 7,800,000,000 | ' |
Accumulated impairment loss | ' | 14,518,000,000 | 14,518,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,961,000,000 | 7,961,000,000 | 5,744,000,000 | 5,744,000,000 | ' | ' | ' | ' | 813,000,000 | 813,000,000 | 813,000,000 | ' | 0 |
Goodwill adjustments/reclassifications | ' | ' | 9,300,000,000 | 9,300,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impairment of goodwill and intangible assets | ' | ' | $18,035,000,000 | $885,000,000 | ' | $8,800,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $8,800,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Number of reporting units within Software segment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of new reporting segments | 2 | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of reporting segments eliminated | 2 | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets (Details 2) (USD $) | 12 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||
Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Jul. 31, 2012 | Oct. 31, 2012 | Oct. 31, 2013 | |
Autonomy | In-process research and development | In-process research and development | Customer contracts, customer lists and distribution agreements | Customer contracts, customer lists and distribution agreements | Developed and core technology and patents | Developed and core technology and patents | Trade name and trade marks | Trade name and trade marks | Compaq | Compaq | Developed and core technology, patents, product tradename and product trademarks | ||||
Intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortizable intangible assets, gross | ' | ' | ' | ' | ' | ' | $5,321,000,000 | $5,807,000,000 | $5,331,000,000 | $6,580,000,000 | $1,730,000,000 | $1,732,000,000 | ' | ' | ' |
Amortizable intangible assets, accumulated amortization | -4,886,000,000 | -5,281,000,000 | ' | ' | ' | ' | -2,709,000,000 | -2,625,000,000 | -1,966,000,000 | -2,501,000,000 | -211,000,000 | -155,000,000 | ' | ' | ' |
Intangible Assets, Accumulated Impairment Losses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1,336,000,000 | -1,336,000,000 | ' | ' | ' |
Finite-lived Intangible Assets, Accumulated Impairment Losses | -4,330,000,000 | -4,330,000,000 | ' | ' | ' | ' | -856,000,000 | -856,000,000 | -2,138,000,000 | -2,138,000,000 | ' | ' | ' | ' | ' |
Amortizable intangible assets, net | 3,166,000,000 | ' | ' | 800,000,000 | ' | ' | 1,756,000,000 | 2,326,000,000 | 1,227,000,000 | 1,941,000,000 | 183,000,000 | 241,000,000 | ' | ' | ' |
Indefinite-lived intangible assets | ' | ' | ' | ' | 3,000,000 | 7,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intangible assets, gross | 12,385,000,000 | 14,126,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intangible assets, net | 3,169,000,000 | 4,515,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-Average Useful Lives | '5 years | ' | ' | ' | ' | ' | '8 years | ' | ' | ' | '7 years | ' | ' | ' | '7 years |
Amount of fully amortized intangible assets | 1,700,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intangible asset impairment charges | ' | 4,300,000,000 | ' | 3,100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,200,000,000 | ' |
Impairment charge | ' | $18,035,000,000 | $885,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,200,000,000 | ' | ' |
Goodwill_and_Intangible_Assets4
Goodwill and Intangible Assets (Details 3) (USD $) | Oct. 31, 2013 |
In Millions, unless otherwise specified | |
Estimated future amortization expense related to finite-lived purchased intangible assets | ' |
2014 | $1,060 |
2015 | 871 |
2016 | 646 |
2017 | 230 |
2018 | 145 |
Thereafter | 214 |
Amortizable intangible assets, net | $3,166 |
Restructuring_Details
Restructuring (Details) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | ||||||
In Millions, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | Jul. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2013 | Apr. 30, 2013 | Oct. 31, 2013 | Jun. 30, 2010 | Oct. 31, 2013 | Jun. 30, 2010 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Aug. 31, 2008 | Oct. 31, 2013 | Aug. 31, 2008 | Oct. 31, 2013 | Oct. 31, 2013 |
Fiscal 2012 Restructuring Plan | Fiscal 2012 Restructuring Plan | Fiscal 2012 Restructuring Plan | Fiscal 2012 Restructuring Plan | Fiscal 2010 Acquisitions | Fiscal 2010 Acquisitions | Fiscal 2010 Enterprise Services Business Restructuring Plan | Fiscal 2010 Enterprise Services Business Restructuring Plan | Fiscal 2010 Enterprise Services Business Restructuring Plan | Fiscal 2010 Enterprise Services Business Restructuring Plan | Fiscal 2010 Enterprise Services Business Restructuring Plan | Fiscal 2010 Enterprise Services Business Restructuring Plan | Fiscal 2008 HP/EDS Restructuring Plan | Fiscal 2008 HP/EDS Restructuring Plan | Fiscal 2008 HP/EDS Restructuring Plan | Fiscal 2008 HP/EDS Restructuring Plan | Fiscal 2008 HP/EDS Restructuring Plan | ||||
position | position | Severance and EER | Infrastructure and other items | Severance and workforce reductions | Severance and workforce reductions | Severance and workforce reductions | Infrastructure | Severance and workforce reductions | Severance and workforce reductions | Infrastructure | ||||||||||
position | position | position | ||||||||||||||||||
Restructuring Reserve | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at the beginning of the period | $1,027 | ' | ' | ' | $608 | $597 | $11 | ' | $10 | ' | $228 | ' | $227 | ' | $1 | ' | $181 | ' | ' | $181 |
Charges | 990 | 2,266 | 645 | ' | 1,194 | 1,053 | 141 | -10 | -10 | ' | -189 | ' | -189 | ' | ' | ' | -5 | ' | ' | -5 |
Cash Payments | -904 | ' | ' | ' | -813 | -701 | -112 | ' | ' | ' | -36 | ' | -36 | ' | ' | ' | -55 | ' | ' | -55 |
Other Adjustments and Non-Cash Settlements | 4 | ' | ' | ' | -4 | -4 | ' | ' | ' | ' | 8 | ' | 8 | ' | ' | ' | ' | ' | ' | ' |
Balance at the end of the period | 1,117 | 1,027 | ' | ' | 985 | 945 | 40 | ' | ' | ' | 11 | ' | 10 | ' | 1 | ' | 121 | ' | ' | 121 |
Short-term portion of restructuring reserve, recorded in Accrued restructuring | 901 | 771 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term portion of restructuring reserve, recorded in Other liabilities | 216 | 256 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected cost of the plan | ' | ' | ' | 3,600 | 4,100 | 3,500 | 600 | ' | 91 | 803 | ' | ' | ' | ' | ' | 3,300 | ' | ' | ' | ' |
Expected positions to be eliminated | ' | ' | ' | 29,000 | 34,000 | ' | ' | ' | ' | ' | ' | 8,200 | ' | ' | ' | ' | ' | 25,000 | ' | ' |
Variance of expected headcount reductions (as a percent) | ' | ' | ' | 15.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Charges | 990 | 2,266 | 645 | ' | 1,194 | 1,053 | 141 | -10 | -10 | ' | -189 | ' | -189 | ' | ' | ' | -5 | ' | ' | -5 |
Positions eliminated | ' | ' | ' | ' | 24,600 | ' | ' | ' | ' | ' | ' | ' | ' | 8,200 | ' | ' | ' | ' | ' | ' |
Costs reflected in purchase price of the acquiree | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Costs Incurred to Date | 7,442 | ' | ' | ' | 3,283 | 3,036 | 247 | ' | 91 | ' | 803 | ' | 434 | ' | 369 | ' | 3,265 | ' | 2,195 | 1,070 |
Total Expected Costs to Be Incurred | $8,263 | ' | ' | ' | $4,100 | $3,500 | $600 | ' | $91 | ' | $803 | ' | $434 | ' | $369 | ' | $3,269 | ' | $2,195 | $1,074 |
Fair_Value_Details
Fair Value (Details) (USD $) | 12 Months Ended | ||
Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | |
Financial assets and liabilities measured at fair value on a recurring basis | ' | ' | ' |
Transfers between the levels within the fair value hierarchy | $0 | $0 | ' |
Impairment of goodwill and intangible assets | ' | 18,035,000,000 | 885,000,000 |
Impairment of goodwill | ' | 13,705,000,000 | ' |
Fair Value and Carrying Value of Debt | ' | ' | ' |
Fair value, short- and long-term debt | 22,700,000,000 | 28,400,000,000 | ' |
Carrying value, short- and long-term debt | 22,600,000,000 | 28,400,000,000 | ' |
Compaq | ' | ' | ' |
Financial assets and liabilities measured at fair value on a recurring basis | ' | ' | ' |
Intangible asset impairment charge | ' | 1,200,000,000 | ' |
Software | ' | ' | ' |
Financial assets and liabilities measured at fair value on a recurring basis | ' | ' | ' |
Impairment of goodwill | ' | 5,744,000,000 | ' |
Software | Autonomy Acquisition | ' | ' | ' |
Financial assets and liabilities measured at fair value on a recurring basis | ' | ' | ' |
Impairment of goodwill and intangible assets | ' | 8,800,000,000 | ' |
Enterprise Services | ' | ' | ' |
Financial assets and liabilities measured at fair value on a recurring basis | ' | ' | ' |
Impairment of goodwill | ' | 7,961,000,000 | ' |
Fair Value Measured Using Level 3 | Compaq | Minimum | Autonomy Acquisition | ' | ' | ' |
Financial assets and liabilities measured at fair value on a recurring basis | ' | ' | ' |
Discount rate (as a percent) | ' | 11.00% | ' |
Projected revenue growth rate (as a percent) | ' | -61.00% | ' |
Fair Value Measured Using Level 3 | Compaq | Maximum | Autonomy Acquisition | ' | ' | ' |
Financial assets and liabilities measured at fair value on a recurring basis | ' | ' | ' |
Discount rate (as a percent) | ' | 16.00% | ' |
Projected revenue growth rate (as a percent) | ' | 13.00% | ' |
Fair Value, Measurements, Recurring | Fair Value Measured Using Level 1 | ' | ' | ' |
Financial assets and liabilities measured at fair value on a recurring basis | ' | ' | ' |
Total Assets, measured at fair value on a recurring basis | 6,838,000,000 | 4,699,000,000 | ' |
Fair Value, Measurements, Recurring | Fair Value Measured Using Level 1 | Money market funds | ' | ' | ' |
Financial assets and liabilities measured at fair value on a recurring basis | ' | ' | ' |
Total Assets, measured at fair value on a recurring basis | 6,819,000,000 | 4,630,000,000 | ' |
Fair Value, Measurements, Recurring | Fair Value Measured Using Level 1 | Marketable equity securities | ' | ' | ' |
Financial assets and liabilities measured at fair value on a recurring basis | ' | ' | ' |
Total Assets, measured at fair value on a recurring basis | 10,000,000 | 60,000,000 | ' |
Fair Value, Measurements, Recurring | Fair Value Measured Using Level 1 | Foreign bonds | ' | ' | ' |
Financial assets and liabilities measured at fair value on a recurring basis | ' | ' | ' |
Total Assets, measured at fair value on a recurring basis | 9,000,000 | 8,000,000 | ' |
Fair Value, Measurements, Recurring | Fair Value Measured Using Level 1 | Other Debt Securities | ' | ' | ' |
Financial assets and liabilities measured at fair value on a recurring basis | ' | ' | ' |
Total Assets, measured at fair value on a recurring basis | ' | 1,000,000 | ' |
Fair Value, Measurements, Recurring | Fair Value Measured Using Level 2 | ' | ' | ' |
Financial assets and liabilities measured at fair value on a recurring basis | ' | ' | ' |
Total Assets, measured at fair value on a recurring basis | 3,377,000,000 | 5,126,000,000 | ' |
Total Liabilities, measured at fair value on a recurring basis | 654,000,000 | 517,000,000 | ' |
Fair Value, Measurements, Recurring | Fair Value Measured Using Level 2 | Time deposits | ' | ' | ' |
Financial assets and liabilities measured at fair value on a recurring basis | ' | ' | ' |
Total Assets, measured at fair value on a recurring basis | 2,221,000,000 | 3,641,000,000 | ' |
Fair Value, Measurements, Recurring | Fair Value Measured Using Level 2 | Mutual funds | ' | ' | ' |
Financial assets and liabilities measured at fair value on a recurring basis | ' | ' | ' |
Total Assets, measured at fair value on a recurring basis | 313,000,000 | 469,000,000 | ' |
Fair Value, Measurements, Recurring | Fair Value Measured Using Level 2 | Marketable equity securities | ' | ' | ' |
Financial assets and liabilities measured at fair value on a recurring basis | ' | ' | ' |
Total Assets, measured at fair value on a recurring basis | 5,000,000 | 3,000,000 | ' |
Fair Value, Measurements, Recurring | Fair Value Measured Using Level 2 | Foreign bonds | ' | ' | ' |
Financial assets and liabilities measured at fair value on a recurring basis | ' | ' | ' |
Total Assets, measured at fair value on a recurring basis | 387,000,000 | 377,000,000 | ' |
Fair Value, Measurements, Recurring | Fair Value Measured Using Level 2 | Other Debt Securities | ' | ' | ' |
Financial assets and liabilities measured at fair value on a recurring basis | ' | ' | ' |
Total Assets, measured at fair value on a recurring basis | 2,000,000 | ' | ' |
Fair Value, Measurements, Recurring | Fair Value Measured Using Level 2 | Interest rate contracts | ' | ' | ' |
Financial assets and liabilities measured at fair value on a recurring basis | ' | ' | ' |
Total Assets, measured at fair value on a recurring basis | 156,000,000 | 344,000,000 | ' |
Total Liabilities, measured at fair value on a recurring basis | 107,000,000 | 29,000,000 | ' |
Fair Value, Measurements, Recurring | Fair Value Measured Using Level 2 | Foreign exchange contracts | ' | ' | ' |
Financial assets and liabilities measured at fair value on a recurring basis | ' | ' | ' |
Total Assets, measured at fair value on a recurring basis | 284,000,000 | 291,000,000 | ' |
Total Liabilities, measured at fair value on a recurring basis | 547,000,000 | 485,000,000 | ' |
Fair Value, Measurements, Recurring | Fair Value Measured Using Level 2 | Other derivatives | ' | ' | ' |
Financial assets and liabilities measured at fair value on a recurring basis | ' | ' | ' |
Total Assets, measured at fair value on a recurring basis | 9,000,000 | 1,000,000 | ' |
Total Liabilities, measured at fair value on a recurring basis | ' | 3,000,000 | ' |
Fair Value, Measurements, Recurring | Fair Value Measured Using Level 3 | ' | ' | ' |
Financial assets and liabilities measured at fair value on a recurring basis | ' | ' | ' |
Total Assets, measured at fair value on a recurring basis | 50,000,000 | 55,000,000 | ' |
Total Liabilities, measured at fair value on a recurring basis | 2,000,000 | 1,000,000 | ' |
Fair Value, Measurements, Recurring | Fair Value Measured Using Level 3 | Other Debt Securities | ' | ' | ' |
Financial assets and liabilities measured at fair value on a recurring basis | ' | ' | ' |
Total Assets, measured at fair value on a recurring basis | 47,000,000 | 55,000,000 | ' |
Fair Value, Measurements, Recurring | Fair Value Measured Using Level 3 | Foreign exchange contracts | ' | ' | ' |
Financial assets and liabilities measured at fair value on a recurring basis | ' | ' | ' |
Total Assets, measured at fair value on a recurring basis | 3,000,000 | ' | ' |
Total Liabilities, measured at fair value on a recurring basis | 2,000,000 | 1,000,000 | ' |
Fair Value, Measurements, Recurring | Estimate of Fair Value, Fair Value Disclosure | ' | ' | ' |
Financial assets and liabilities measured at fair value on a recurring basis | ' | ' | ' |
Total Assets, measured at fair value on a recurring basis | 10,265,000,000 | 9,880,000,000 | ' |
Total Liabilities, measured at fair value on a recurring basis | 656,000,000 | 518,000,000 | ' |
Fair Value, Measurements, Recurring | Estimate of Fair Value, Fair Value Disclosure | Time deposits | ' | ' | ' |
Financial assets and liabilities measured at fair value on a recurring basis | ' | ' | ' |
Total Assets, measured at fair value on a recurring basis | 2,221,000,000 | 3,641,000,000 | ' |
Fair Value, Measurements, Recurring | Estimate of Fair Value, Fair Value Disclosure | Money market funds | ' | ' | ' |
Financial assets and liabilities measured at fair value on a recurring basis | ' | ' | ' |
Total Assets, measured at fair value on a recurring basis | 6,819,000,000 | 4,630,000,000 | ' |
Fair Value, Measurements, Recurring | Estimate of Fair Value, Fair Value Disclosure | Mutual funds | ' | ' | ' |
Financial assets and liabilities measured at fair value on a recurring basis | ' | ' | ' |
Total Assets, measured at fair value on a recurring basis | 313,000,000 | 469,000,000 | ' |
Fair Value, Measurements, Recurring | Estimate of Fair Value, Fair Value Disclosure | Marketable equity securities | ' | ' | ' |
Financial assets and liabilities measured at fair value on a recurring basis | ' | ' | ' |
Total Assets, measured at fair value on a recurring basis | 15,000,000 | 63,000,000 | ' |
Fair Value, Measurements, Recurring | Estimate of Fair Value, Fair Value Disclosure | Foreign bonds | ' | ' | ' |
Financial assets and liabilities measured at fair value on a recurring basis | ' | ' | ' |
Total Assets, measured at fair value on a recurring basis | 396,000,000 | 385,000,000 | ' |
Fair Value, Measurements, Recurring | Estimate of Fair Value, Fair Value Disclosure | Other Debt Securities | ' | ' | ' |
Financial assets and liabilities measured at fair value on a recurring basis | ' | ' | ' |
Total Assets, measured at fair value on a recurring basis | 49,000,000 | 56,000,000 | ' |
Fair Value, Measurements, Recurring | Estimate of Fair Value, Fair Value Disclosure | Interest rate contracts | ' | ' | ' |
Financial assets and liabilities measured at fair value on a recurring basis | ' | ' | ' |
Total Assets, measured at fair value on a recurring basis | 156,000,000 | 344,000,000 | ' |
Total Liabilities, measured at fair value on a recurring basis | 107,000,000 | 29,000,000 | ' |
Fair Value, Measurements, Recurring | Estimate of Fair Value, Fair Value Disclosure | Foreign exchange contracts | ' | ' | ' |
Financial assets and liabilities measured at fair value on a recurring basis | ' | ' | ' |
Total Assets, measured at fair value on a recurring basis | 287,000,000 | 291,000,000 | ' |
Total Liabilities, measured at fair value on a recurring basis | 549,000,000 | 486,000,000 | ' |
Fair Value, Measurements, Recurring | Estimate of Fair Value, Fair Value Disclosure | Other derivatives | ' | ' | ' |
Financial assets and liabilities measured at fair value on a recurring basis | ' | ' | ' |
Total Assets, measured at fair value on a recurring basis | 9,000,000 | 1,000,000 | ' |
Total Liabilities, measured at fair value on a recurring basis | ' | $3,000,000 | ' |
Financial_Instruments_Details
Financial Instruments (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Cash equivalents and available-for-sale investments | ' | ' | ' |
Available-for-sale securities, Cost | $693 | $834 | ' |
Available-for-sale securities, Gross Unrealized Gain | 92 | 91 | ' |
Available-for-sale securities, Gross Unrealized Loss | -15 | -17 | ' |
Available-for-sale securities, Estimated Fair Value | 770 | 908 | ' |
Interest income | 148 | 155 | 167 |
Cost | ' | ' | ' |
Cash equivalents and available-for-sale investments | ' | ' | ' |
Cash equivalents | 9,039 | 8,332 | ' |
Total cash equivalents and available-for-sale investments | 9,732 | 9,166 | ' |
Fair Value | ' | ' | ' |
Cash equivalents and available-for-sale investments | ' | ' | ' |
Cash equivalents | 9,039 | 8,332 | ' |
Total cash equivalents and available-for-sale investments | 9,809 | 9,240 | ' |
Debt securities: | ' | ' | ' |
Cash equivalents and available-for-sale investments | ' | ' | ' |
Available-for-sale securities, Gross Unrealized Gain | 86 | 82 | ' |
Available-for-sale securities, Gross Unrealized Loss | -15 | -17 | ' |
Gross unrealized loss of debt security in a continuous loss position for more than 12 months | 15 | 17 | ' |
Debt securities: | Cost | ' | ' | ' |
Cash equivalents and available-for-sale investments | ' | ' | ' |
Available-for-sale securities, Cost | 388 | 384 | ' |
Debt securities: | Fair Value | ' | ' | ' |
Cash equivalents and available-for-sale investments | ' | ' | ' |
Available-for-sale securities, Estimated Fair Value | 459 | 449 | ' |
Time deposits | Cost | ' | ' | ' |
Cash equivalents and available-for-sale investments | ' | ' | ' |
Available-for-sale securities, Cost | 14 | 8 | ' |
Time deposits | Fair Value | ' | ' | ' |
Cash equivalents and available-for-sale investments | ' | ' | ' |
Available-for-sale securities, Estimated Fair Value | 14 | 8 | ' |
Foreign bonds | ' | ' | ' |
Cash equivalents and available-for-sale investments | ' | ' | ' |
Available-for-sale securities, Gross Unrealized Gain | 86 | 82 | ' |
Foreign bonds | Cost | ' | ' | ' |
Cash equivalents and available-for-sale investments | ' | ' | ' |
Available-for-sale securities, Cost | 310 | 303 | ' |
Foreign bonds | Fair Value | ' | ' | ' |
Cash equivalents and available-for-sale investments | ' | ' | ' |
Available-for-sale securities, Estimated Fair Value | 396 | 385 | ' |
Other Debt Securities | ' | ' | ' |
Cash equivalents and available-for-sale investments | ' | ' | ' |
Available-for-sale securities, Gross Unrealized Loss | -15 | -17 | ' |
Other Debt Securities | Cost | ' | ' | ' |
Cash equivalents and available-for-sale investments | ' | ' | ' |
Available-for-sale securities, Cost | 64 | 73 | ' |
Other Debt Securities | Fair Value | ' | ' | ' |
Cash equivalents and available-for-sale investments | ' | ' | ' |
Available-for-sale securities, Estimated Fair Value | 49 | 56 | ' |
Equity securities: | ' | ' | ' |
Cash equivalents and available-for-sale investments | ' | ' | ' |
Available-for-sale securities, Gross Unrealized Gain | 6 | 9 | ' |
Equity securities: | Cost | ' | ' | ' |
Cash equivalents and available-for-sale investments | ' | ' | ' |
Available-for-sale securities, Cost | 305 | 450 | ' |
Equity securities: | Fair Value | ' | ' | ' |
Cash equivalents and available-for-sale investments | ' | ' | ' |
Available-for-sale securities, Estimated Fair Value | 311 | 459 | ' |
Mutual funds | Cost | ' | ' | ' |
Cash equivalents and available-for-sale investments | ' | ' | ' |
Available-for-sale securities, Cost | 300 | 400 | ' |
Mutual funds | Fair Value | ' | ' | ' |
Cash equivalents and available-for-sale investments | ' | ' | ' |
Available-for-sale securities, Estimated Fair Value | 300 | 400 | ' |
Equity securities in public companies | ' | ' | ' |
Cash equivalents and available-for-sale investments | ' | ' | ' |
Available-for-sale securities, Gross Unrealized Gain | 6 | 9 | ' |
Equity securities in public companies | Cost | ' | ' | ' |
Cash equivalents and available-for-sale investments | ' | ' | ' |
Available-for-sale securities, Cost | 5 | 50 | ' |
Equity securities in public companies | Fair Value | ' | ' | ' |
Cash equivalents and available-for-sale investments | ' | ' | ' |
Available-for-sale securities, Estimated Fair Value | 11 | 59 | ' |
Time deposits | Cost | ' | ' | ' |
Cash equivalents and available-for-sale investments | ' | ' | ' |
Cash equivalents | 2,207 | 3,633 | ' |
Time deposits | Fair Value | ' | ' | ' |
Cash equivalents and available-for-sale investments | ' | ' | ' |
Cash equivalents | 2,207 | 3,633 | ' |
Money market funds | Cost | ' | ' | ' |
Cash equivalents and available-for-sale investments | ' | ' | ' |
Cash equivalents | 6,819 | 4,630 | ' |
Money market funds | Fair Value | ' | ' | ' |
Cash equivalents and available-for-sale investments | ' | ' | ' |
Cash equivalents | 6,819 | 4,630 | ' |
Mutual funds | Cost | ' | ' | ' |
Cash equivalents and available-for-sale investments | ' | ' | ' |
Cash equivalents | 13 | 69 | ' |
Mutual funds | Fair Value | ' | ' | ' |
Cash equivalents and available-for-sale investments | ' | ' | ' |
Cash equivalents | $13 | $69 | ' |
Financial_Instruments_Details_
Financial Instruments (Details 2) (USD $) | Oct. 31, 2013 | Oct. 31, 2012 |
In Millions, unless otherwise specified | ||
Cost | ' | ' |
Due in one to five years | $16 | ' |
Due in more than five years | 372 | ' |
Total | 388 | ' |
Fair Value | ' | ' |
Due in one to five years | 16 | ' |
Due in more than five years | 443 | ' |
Total | 459 | ' |
Investment Holdings | ' | ' |
Investment amount | 770 | 908 |
Equity securities in privately held companies | Long-term Financing Receivables and Other Assets | ' | ' |
Investment Holdings | ' | ' |
Investment amount | $50 | $51 |
Financial_Instruments_Details_1
Financial Instruments (Details 3) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 |
Financial Instruments | ' | ' |
Period within which the funds held as collateral and posted as collateral are transferred from or to counterparties | '2 days | ' |
Cash held as collateral from counterparties under collateralized arrangements | $30 | $198 |
Cash posted as collateral under collateralized arrangements | 283 | 72 |
Cash posted as collateral to counterparties through reuse | 30 | 49 |
Cash posted as collateral to counterparties in cash | 253 | 23 |
Derivatives, Fair Value | ' | ' |
Total derivatives, gross notional amount | 51,875 | 50,262 |
Other Current Assets | ' | ' |
Derivatives, Fair Value | ' | ' |
Derivative asset, fair value | 220 | 304 |
Long-Term Financing Receivables and Other Assets | ' | ' |
Derivatives, Fair Value | ' | ' |
Derivative asset, fair value | 232 | 332 |
Other Accrued Liabilities | ' | ' |
Derivatives, Fair Value | ' | ' |
Derivative liability, fair value | 437 | 396 |
Long-Term Other Liabilities | ' | ' |
Derivatives, Fair Value | ' | ' |
Derivative liability, fair value | 219 | 122 |
Cash flow hedges | ' | ' |
Derivatives, Fair Value | ' | ' |
Maturity period of foreign currency cash flow hedges | '12 months | ' |
Maximum duration of lease term for which lease-related forward contracts and intercompany lease loan forward contracts can be extended | '5 years | ' |
Derivatives designated as hedging instruments | ' | ' |
Derivatives, Fair Value | ' | ' |
Total derivatives, gross notional amount | 35,483 | 28,992 |
Derivatives designated as hedging instruments | Other Current Assets | ' | ' |
Derivatives, Fair Value | ' | ' |
Derivative asset, fair value | 140 | 217 |
Derivatives designated as hedging instruments | Long-Term Financing Receivables and Other Assets | ' | ' |
Derivatives, Fair Value | ' | ' |
Derivative asset, fair value | 205 | 315 |
Derivatives designated as hedging instruments | Other Accrued Liabilities | ' | ' |
Derivatives, Fair Value | ' | ' |
Derivative liability, fair value | 361 | 313 |
Derivatives designated as hedging instruments | Long-Term Other Liabilities | ' | ' |
Derivatives, Fair Value | ' | ' |
Derivative liability, fair value | 199 | 103 |
Derivatives designated as hedging instruments | Fair value hedges | Interest rate contracts | ' | ' |
Derivatives, Fair Value | ' | ' |
Total derivatives, gross notional amount | 11,100 | 7,900 |
Derivatives designated as hedging instruments | Fair value hedges | Interest rate contracts | Other Current Assets | ' | ' |
Derivatives, Fair Value | ' | ' |
Derivative asset, fair value | 31 | 43 |
Derivatives designated as hedging instruments | Fair value hedges | Interest rate contracts | Long-Term Financing Receivables and Other Assets | ' | ' |
Derivatives, Fair Value | ' | ' |
Derivative asset, fair value | 125 | 276 |
Derivatives designated as hedging instruments | Fair value hedges | Interest rate contracts | Long-Term Other Liabilities | ' | ' |
Derivatives, Fair Value | ' | ' |
Derivative liability, fair value | 107 | ' |
Derivatives designated as hedging instruments | Cash flow hedges | Foreign exchange contracts | ' | ' |
Derivatives, Fair Value | ' | ' |
Total derivatives, gross notional amount | 22,463 | 19,409 |
Derivatives designated as hedging instruments | Cash flow hedges | Foreign exchange contracts | Other Current Assets | ' | ' |
Derivatives, Fair Value | ' | ' |
Derivative asset, fair value | 79 | 160 |
Derivatives designated as hedging instruments | Cash flow hedges | Foreign exchange contracts | Long-Term Financing Receivables and Other Assets | ' | ' |
Derivatives, Fair Value | ' | ' |
Derivative asset, fair value | 40 | 24 |
Derivatives designated as hedging instruments | Cash flow hedges | Foreign exchange contracts | Other Accrued Liabilities | ' | ' |
Derivatives, Fair Value | ' | ' |
Derivative liability, fair value | 341 | 277 |
Derivatives designated as hedging instruments | Cash flow hedges | Foreign exchange contracts | Long-Term Other Liabilities | ' | ' |
Derivatives, Fair Value | ' | ' |
Derivative liability, fair value | 80 | 79 |
Derivatives designated as hedging instruments | Net investment hedges | Foreign exchange contracts | ' | ' |
Derivatives, Fair Value | ' | ' |
Total derivatives, gross notional amount | 1,920 | 1,683 |
Derivatives designated as hedging instruments | Net investment hedges | Foreign exchange contracts | Other Current Assets | ' | ' |
Derivatives, Fair Value | ' | ' |
Derivative asset, fair value | 30 | 14 |
Derivatives designated as hedging instruments | Net investment hedges | Foreign exchange contracts | Long-Term Financing Receivables and Other Assets | ' | ' |
Derivatives, Fair Value | ' | ' |
Derivative asset, fair value | 40 | 15 |
Derivatives designated as hedging instruments | Net investment hedges | Foreign exchange contracts | Other Accrued Liabilities | ' | ' |
Derivatives, Fair Value | ' | ' |
Derivative liability, fair value | 20 | 36 |
Derivatives designated as hedging instruments | Net investment hedges | Foreign exchange contracts | Long-Term Other Liabilities | ' | ' |
Derivatives, Fair Value | ' | ' |
Derivative liability, fair value | 12 | 24 |
Derivatives not designated as hedging instruments | ' | ' |
Derivatives, Fair Value | ' | ' |
Total derivatives, gross notional amount | 16,392 | 21,270 |
Derivatives not designated as hedging instruments | Other Current Assets | ' | ' |
Derivatives, Fair Value | ' | ' |
Derivative asset, fair value | 80 | 87 |
Derivatives not designated as hedging instruments | Long-Term Financing Receivables and Other Assets | ' | ' |
Derivatives, Fair Value | ' | ' |
Derivative asset, fair value | 27 | 17 |
Derivatives not designated as hedging instruments | Other Accrued Liabilities | ' | ' |
Derivatives, Fair Value | ' | ' |
Derivative liability, fair value | 76 | 83 |
Derivatives not designated as hedging instruments | Long-Term Other Liabilities | ' | ' |
Derivatives, Fair Value | ' | ' |
Derivative liability, fair value | 20 | 19 |
Derivatives not designated as hedging instruments | Foreign exchange contracts | ' | ' |
Derivatives, Fair Value | ' | ' |
Total derivatives, gross notional amount | 16,048 | 18,687 |
Derivatives not designated as hedging instruments | Foreign exchange contracts | Other Current Assets | ' | ' |
Derivatives, Fair Value | ' | ' |
Derivative asset, fair value | 72 | 61 |
Derivatives not designated as hedging instruments | Foreign exchange contracts | Long-Term Financing Receivables and Other Assets | ' | ' |
Derivatives, Fair Value | ' | ' |
Derivative asset, fair value | 26 | 17 |
Derivatives not designated as hedging instruments | Foreign exchange contracts | Other Accrued Liabilities | ' | ' |
Derivatives, Fair Value | ' | ' |
Derivative liability, fair value | 76 | 51 |
Derivatives not designated as hedging instruments | Foreign exchange contracts | Long-Term Other Liabilities | ' | ' |
Derivatives, Fair Value | ' | ' |
Derivative liability, fair value | 20 | 19 |
Derivatives not designated as hedging instruments | Interest rate contracts | ' | ' |
Derivatives, Fair Value | ' | ' |
Total derivatives, gross notional amount | ' | 2,200 |
Derivatives not designated as hedging instruments | Interest rate contracts | Other Current Assets | ' | ' |
Derivatives, Fair Value | ' | ' |
Derivative asset, fair value | ' | 25 |
Derivatives not designated as hedging instruments | Interest rate contracts | Other Accrued Liabilities | ' | ' |
Derivatives, Fair Value | ' | ' |
Derivative liability, fair value | ' | 29 |
Derivatives not designated as hedging instruments | Other derivatives | ' | ' |
Derivatives, Fair Value | ' | ' |
Total derivatives, gross notional amount | 344 | 383 |
Derivatives not designated as hedging instruments | Other derivatives | Other Current Assets | ' | ' |
Derivatives, Fair Value | ' | ' |
Derivative asset, fair value | 8 | 1 |
Derivatives not designated as hedging instruments | Other derivatives | Long-Term Financing Receivables and Other Assets | ' | ' |
Derivatives, Fair Value | ' | ' |
Derivative asset, fair value | 1 | ' |
Derivatives not designated as hedging instruments | Other derivatives | Other Accrued Liabilities | ' | ' |
Derivatives, Fair Value | ' | ' |
Derivative liability, fair value | ' | $3 |
Financial_Instruments_Details_2
Financial Instruments (Details 4) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 |
Pre-tax effect of derivative instruments in cash flow and net investment hedging relationships | ' | ' |
Portion of the hedging instruments gain or loss excluded from the assessment of effectiveness for fair value, cash flow or net investment hedges | $0 | ' |
Pre-tax effect of derivative instruments not designated as hedging instruments on the Consolidated Condensed Statements of Earnings | ' | ' |
Gain (Loss) recognized in income on derivatives not designated as hedges | 180 | 152 |
Interest rate contracts | Interest and other, net | ' | ' |
Pre-tax effect of derivative instruments and related hedged items in a fair value hedging relationship | ' | ' |
(Loss) Gain Recognized in Income on Derivative | -270 | -130 |
(Loss) Gain recognized in Income on Related Hedged Item | 270 | 134 |
Pre-tax effect of derivative instruments not designated as hedging instruments on the Consolidated Condensed Statements of Earnings | ' | ' |
Gain (Loss) recognized in income on derivatives not designated as hedges | 3 | 13 |
Foreign exchange contracts | Interest and other, net | ' | ' |
Pre-tax effect of derivative instruments not designated as hedging instruments on the Consolidated Condensed Statements of Earnings | ' | ' |
Gain (Loss) recognized in income on derivatives not designated as hedges | 166 | 171 |
Other derivatives | Interest and other, net | ' | ' |
Pre-tax effect of derivative instruments not designated as hedging instruments on the Consolidated Condensed Statements of Earnings | ' | ' |
Gain (Loss) recognized in income on derivatives not designated as hedges | 11 | -32 |
Cash flow hedges | ' | ' |
Pre-tax effect of derivative instruments in cash flow and net investment hedging relationships | ' | ' |
Gain (Loss) Recognized in Other Comprehensive Income ("OCI") on Derivative (Effective portion) | -243 | 335 |
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | -106 | 399 |
Loss expected to be reclassified from Accumulated OCI into earnings in next 12 months | 177 | ' |
Cash flow hedges | Foreign exchange contracts | Net revenue | ' | ' |
Pre-tax effect of derivative instruments in cash flow and net investment hedging relationships | ' | ' |
Gain (Loss) Recognized in Other Comprehensive Income ("OCI") on Derivative (Effective portion) | -53 | 415 |
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | 48 | 423 |
Cash flow hedges | Foreign exchange contracts | Cost of products | ' | ' |
Pre-tax effect of derivative instruments in cash flow and net investment hedging relationships | ' | ' |
Gain (Loss) Recognized in Other Comprehensive Income ("OCI") on Derivative (Effective portion) | -192 | -65 |
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | -165 | -15 |
Cash flow hedges | Foreign exchange contracts | Other operating expenses | ' | ' |
Pre-tax effect of derivative instruments in cash flow and net investment hedging relationships | ' | ' |
Gain (Loss) Recognized in Other Comprehensive Income ("OCI") on Derivative (Effective portion) | -19 | -7 |
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | 1 | -6 |
Cash flow hedges | Foreign exchange contracts | Interest and other, net | ' | ' |
Pre-tax effect of derivative instruments in cash flow and net investment hedging relationships | ' | ' |
Gain (Loss) Recognized in Other Comprehensive Income ("OCI") on Derivative (Effective portion) | 21 | -8 |
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | 10 | -3 |
Net investment hedges | Foreign exchange contracts | Interest and other, net | ' | ' |
Pre-tax effect of derivative instruments in cash flow and net investment hedging relationships | ' | ' |
Gain (Loss) Recognized in Other Comprehensive Income ("OCI") on Derivative (Effective portion) | $38 | $37 |
Financing_Receivables_and_Oper2
Financing Receivables and Operating Leases (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | Oct. 31, 2010 |
Financing Receivables and Operating Leases | ' | ' | ' | ' |
Financing receivable term, low end of range | '2 years | ' | ' | ' |
Financing receivable term, high end of range | '5 years | ' | ' | ' |
Minimum lease payments receivable | $7,505 | $8,133 | ' | ' |
Unguaranteed residual value | 252 | 248 | ' | ' |
Unearned income | -604 | -688 | ' | ' |
Financing receivables, gross | 7,153 | 7,693 | ' | ' |
Allowance for doubtful accounts | -131 | -149 | -130 | -140 |
Financing receivables, net | 7,022 | 7,544 | ' | ' |
Less current portion | -3,144 | -3,252 | ' | ' |
Amounts due after one year, net | 3,878 | 4,292 | ' | ' |
Scheduled maturities of minimum lease payments receivable: | ' | ' | ' | ' |
2014 | 3,490 | ' | ' | ' |
2015 | 2,022 | ' | ' | ' |
2016 | 1,237 | ' | ' | ' |
2017 | 555 | ' | ' | ' |
Thereafter | 201 | ' | ' | ' |
Total | $7,505 | $8,133 | ' | ' |
Financing_Receivables_and_Oper3
Financing Receivables and Operating Leases (Details 2) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Gross financing receivables | ' | ' | ' |
Net Investment | $7,153 | $7,693 | ' |
Period past due, after which a write-off or specific reserve is created | '180 days | ' | ' |
Allowance for doubtful accounts | ' | ' | ' |
Balance at beginning of year | 149 | 130 | 140 |
Provision for doubtful accounts | 38 | 42 | 58 |
Deductions, net of recoveries | -56 | -23 | -68 |
Balance at end of year | 131 | 149 | 130 |
Allowance for financing receivables collectively evaluated for loss | 95 | 104 | ' |
Allowance for financing receivables individually evaluated for loss | 36 | 45 | ' |
Gross financing receivables individually evaluated for loss | 380 | 338 | ' |
Gross financing receivables collectively evaluated for loss | 6,773 | 7,355 | ' |
Period past due, after which account is put on non-accrual status | '90 days | ' | ' |
Aging and non-accrual status of gross financing receivables | ' | ' | ' |
Current 1-30 days | 217 | 216 | ' |
Past due 31-60 days | 50 | 53 | ' |
Past due 61-90 days | 15 | 13 | ' |
Past due >90 days | 46 | 51 | ' |
Unbilled sales-type and direct-financing lease receivables | 6,825 | 7,360 | ' |
Gross financing receivables on non-accrual status | 199 | 225 | ' |
Gross financing receivables 90 days past due and still accruing interest | 181 | 113 | ' |
Operating lease assets | ' | ' | ' |
Equipment leased to customers | 3,822 | 3,865 | ' |
Accumulated depreciation | -1,452 | -1,499 | ' |
Operating lease assets, net | 2,370 | 2,366 | ' |
Minimum future rentals on non-cancelable operating leases: | ' | ' | ' |
2014 | 1,212 | ' | ' |
2015 | 759 | ' | ' |
2016 | 346 | ' | ' |
2017 | 93 | ' | ' |
Thereafter | 28 | ' | ' |
Total | 2,438 | ' | ' |
Low | ' | ' | ' |
Gross financing receivables | ' | ' | ' |
Net Investment | 3,948 | 4,461 | ' |
Moderate | ' | ' | ' |
Gross financing receivables | ' | ' | ' |
Net Investment | 3,084 | 3,151 | ' |
High | ' | ' | ' |
Gross financing receivables | ' | ' | ' |
Net Investment | $121 | $81 | ' |
Guarantees_Details
Guarantees (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 |
Changes in aggregated product warranty liabilities | ' | ' |
Balance at beginning of year | $2,170 | $2,451 |
Accruals for warranties issued | 2,007 | 2,249 |
Adjustments related to pre-existing warranties (including changes in estimates) | -4 | -79 |
Settlements made (in cash or in kind) | -2,142 | -2,451 |
Balance at end of year | $2,031 | $2,170 |
Borrowings_Details
Borrowings (Details) (USD $) | Oct. 31, 2013 | Oct. 31, 2012 |
In Millions, unless otherwise specified | ||
Notes Payable and Short-Term Borrowings | ' | ' |
Current portion of long-term debt | $5,226 | $5,744 |
Amount outstanding | 5,979 | 6,647 |
Current portion of long-term debt, weighted average interest rate (as a percent) | 2.80% | 1.60% |
Commercial paper | ' | ' |
Notes Payable and Short-Term Borrowings | ' | ' |
Short term borrowings | 327 | 365 |
Weighted average interest rate (as a percent) | 0.40% | 0.90% |
Commercial paper | HPFS and its subsidiaries | ' | ' |
Notes Payable and Short-Term Borrowings | ' | ' |
Short term borrowings | 327 | 365 |
Obligation related to notes payable to banks, lines of credit, uncommitted line of credit and other debt | ' | ' |
Notes Payable and Short-Term Borrowings | ' | ' |
Short term borrowings | 426 | 538 |
Weighted average interest rate (as a percent) | 1.70% | 2.30% |
Obligation related to notes payable to banks, lines of credit, uncommitted line of credit and other debt | HPFS and its subsidiaries | ' | ' |
Notes Payable and Short-Term Borrowings | ' | ' |
Short term borrowings | $368 | $465 |
Borrowings_Details_2
Borrowings (Details 2) (USD $) | 12 Months Ended | |
Oct. 31, 2013 | Oct. 31, 2012 | |
Long-term debt | ' | ' |
Total | $16,608,000,000 | $21,789,000,000 |
Fair value adjustment related to hedged debt | 147,000,000 | 399,000,000 |
Less: current portion | -5,226,000,000 | -5,744,000,000 |
U.S. Dollar Global Notes | ' | ' |
Long-term debt | ' | ' |
Total | 20,684,000,000 | 25,031,000,000 |
2006 Shelf Registration Statement-$500 issued at discount to par at a price of 99.694% in February 2007 at 5.4%, due March 2017 | ' | ' |
Long-term debt | ' | ' |
Total | 499,000,000 | 499,000,000 |
Discount to par (as a percent) | 99.69% | 99.69% |
Interest rate (as a percent) | 5.40% | 5.40% |
Face amount of debt instrument | 500,000,000 | 500,000,000 |
2006 Shelf Registration Statement-$1,500 issued at discount to par at a price of 99.921% in March 2008 at 4.5%, paid March 2013 | ' | ' |
Long-term debt | ' | ' |
Total | ' | 1,500,000,000 |
Discount to par (as a percent) | ' | 99.92% |
Interest rate (as a percent) | ' | 4.50% |
Face amount of debt instrument | ' | 1,500,000,000 |
2006 Shelf Registration Statement-$750 issued at discount to par at a price of 99.932% in March 2008 at 5.5%, due March 2018 | ' | ' |
Long-term debt | ' | ' |
Total | 750,000,000 | 750,000,000 |
Discount to par (as a percent) | 99.93% | 99.93% |
Interest rate (as a percent) | 5.50% | 5.50% |
Face amount of debt instrument | 750,000,000 | 750,000,000 |
2006 Shelf Registration Statement-$2,000 issued at discount to par at a price of 99.561% in December 2008 at 6.125%, due March 2014 | ' | ' |
Long-term debt | ' | ' |
Total | 1,999,000,000 | 1,998,000,000 |
Discount to par (as a percent) | 99.56% | 99.56% |
Interest rate (as a percent) | 6.13% | 6.13% |
Face amount of debt instrument | 2,000,000,000 | 2,000,000,000 |
2006 Shelf Registration Statement-$1,500 issued at discount to par at a price of 99.993% in February 2009 at 4.75%, due June 2014 | ' | ' |
Long-term debt | ' | ' |
Total | 1,500,000,000 | 1,500,000,000 |
Discount to par (as a percent) | 99.99% | 99.99% |
Interest rate (as a percent) | 4.75% | 4.75% |
Face amount of debt instrument | 1,500,000,000 | 1,500,000,000 |
2009 Shelf Registration Statement - $1,100 issued at discount to par at a price of 99.921% in September 2010 at 1.25% paid September 201 3 | ' | ' |
Long-term debt | ' | ' |
Total | ' | 1,100,000,000 |
Discount to par (as a percent) | ' | 99.92% |
Interest rate (as a percent) | ' | 1.25% |
Face amount of debt instrument | ' | 1,100,000,000 |
2009 Shelf Registration Statement-$1,100 issued at discount to par at a price of 99.887% in September 2010 at 2.125% due September 2015 | ' | ' |
Long-term debt | ' | ' |
Total | 1,100,000,000 | 1,100,000,000 |
Discount to par (as a percent) | 99.89% | 99.89% |
Interest rate (as a percent) | 2.13% | 2.13% |
Face amount of debt instrument | 1,100,000,000 | 1,100,000,000 |
2009 Shelf Registration Statement-$650 issued at discount to par at a price of 99.911% in December 2010 at 2.2% due December 2015 | ' | ' |
Long-term debt | ' | ' |
Total | 650,000,000 | 650,000,000 |
Discount to par (as a percent) | 99.91% | 99.91% |
Interest rate (as a percent) | 2.20% | 2.20% |
Face amount of debt instrument | 650,000,000 | 650,000,000 |
2009 Shelf Registration Statement-$1,350 issued at discount to par at a price of 99.827% in December 2010 at 3.75% due December 2020 | ' | ' |
Long-term debt | ' | ' |
Total | 1,349,000,000 | 1,348,000,000 |
Discount to par (as a percent) | 99.83% | 99.83% |
Interest rate (as a percent) | 3.75% | 3.75% |
Face amount of debt instrument | 1,350,000,000 | 1,350,000,000 |
2009 Shelf Registration Statement-$1,750 issued at par in May 2011 at three month USD LIBOR plus 0.28%, paid May 2013 | ' | ' |
Long-term debt | ' | ' |
Total | ' | 1,750,000,000 |
Face amount of debt instrument | ' | 1,750,000,000 |
Reference interest rate | ' | 'three-month USD LIBOR |
Spread on reference interest rate (as a percent) | ' | 0.28% |
2009 Shelf Registration Statement-$500 issued at par in May 2011 at three month USD LIBOR plus 0.4%, due May 2014 | ' | ' |
Long-term debt | ' | ' |
Total | 500,000,000 | 500,000,000 |
Face amount of debt instrument | 500,000,000 | 500,000,000 |
Reference interest rate | 'three-month USD LIBOR | 'three-month USD LIBOR |
Spread on reference interest rate (as a percent) | 0.40% | 0.40% |
2009 Shelf Registration Statement-$500 issued at discount to par at a price of 99.971% in May 2011 at 1.55%, due May 2014 | ' | ' |
Long-term debt | ' | ' |
Total | 500,000,000 | 500,000,000 |
Discount to par (as a percent) | 99.97% | 99.97% |
Interest rate (as a percent) | 1.55% | 1.55% |
Face amount of debt instrument | 500,000,000 | 500,000,000 |
2009 Shelf Registration Statement-$1,000 issued at discount to par at a price of 99.958% in May 2011 at 2.65%, due June 2016 | ' | ' |
Long-term debt | ' | ' |
Total | 1,000,000,000 | 1,000,000,000 |
Discount to par (as a percent) | 99.96% | 99.96% |
Interest rate (as a percent) | 2.65% | 2.65% |
Face amount of debt instrument | 1,000,000,000 | 1,000,000,000 |
2009 Shelf Registration Statement-$1,250 issued at discount to par at a price of 99.799% in May 2011 at 4.3%, due June 2021 | ' | ' |
Long-term debt | ' | ' |
Total | 1,248,000,000 | 1,248,000,000 |
Discount to par (as a percent) | 99.80% | 99.80% |
Interest rate (as a percent) | 4.30% | 4.30% |
Face amount of debt instrument | 1,250,000,000 | 1,250,000,000 |
2009 Shelf Registration Statement-$750 issued at discount to par at a price of 99.977% in September 2011 at 2.35%, due March 2015 | ' | ' |
Long-term debt | ' | ' |
Total | 750,000,000 | 750,000,000 |
Discount to par (as a percent) | 99.98% | 99.98% |
Interest rate (as a percent) | 2.35% | 2.35% |
Face amount of debt instrument | 750,000,000 | 750,000,000 |
2009 Shelf Registration Statement-$1,300 issued at discount to par at a price of 99.784% in September 2011 at 3.0%, due September 2016 | ' | ' |
Long-term debt | ' | ' |
Total | 1,298,000,000 | 1,298,000,000 |
Discount to par (as a percent) | 99.78% | 99.78% |
Interest rate (as a percent) | 3.00% | 3.00% |
Face amount of debt instrument | 1,300,000,000 | 1,300,000,000 |
2009 Shelf Registration Statement-$1,000 issued at discount to par at a price of 99.816% in September 2011 at 4.375%, due September 2021 | ' | ' |
Long-term debt | ' | ' |
Total | 999,000,000 | 998,000,000 |
Discount to par (as a percent) | 99.82% | 99.82% |
Interest rate (as a percent) | 4.38% | 4.38% |
Face amount of debt instrument | 1,000,000,000 | 1,000,000,000 |
2009 Shelf Registration Statement-$1,200 issued at discount to par at a price of 99.863% in September 2011 at 6.0% due September 2041 | ' | ' |
Long-term debt | ' | ' |
Total | 1,198,000,000 | 1,198,000,000 |
Discount to par (as a percent) | 99.86% | 99.86% |
Interest rate (as a percent) | 6.00% | 6.00% |
Face amount of debt instrument | 1,200,000,000 | 1,200,000,000 |
2009 Shelf Registration Statement-$350 issued at par in September 2011 at three month USD LIBOR plus 1.55%, due September 2014 | ' | ' |
Long-term debt | ' | ' |
Total | 350,000,000 | 350,000,000 |
Face amount of debt instrument | 350,000,000 | 350,000,000 |
Reference interest rate | 'three-month USD LIBOR | 'three-month USD LIBOR |
Spread on reference interest rate (as a percent) | 1.55% | 1.55% |
2009 Shelf Registration Statement-$650 issued at discount to par at a price of 99.946% in December 2011 at 2.625%, due December 2014 | ' | ' |
Long-term debt | ' | ' |
Total | 650,000,000 | 650,000,000 |
Discount to par (as a percent) | 99.95% | 99.95% |
Interest rate (as a percent) | 2.63% | 2.63% |
Face amount of debt instrument | 650,000,000 | 650,000,000 |
2009 Shelf Registration Statement-$850 issued at discount to par at a price of 99.790% in December 2011 at 3.3%, due December 2016 | ' | ' |
Long-term debt | ' | ' |
Total | 849,000,000 | 849,000,000 |
Discount to par (as a percent) | 99.79% | 99.79% |
Interest rate (as a percent) | 3.30% | 3.30% |
Face amount of debt instrument | 850,000,000 | 850,000,000 |
2009 Shelf Registration Statement-$1,500 issued at discount to par at a price of 99.707% in December 2011 at 4.65%, due December 2021 | ' | ' |
Long-term debt | ' | ' |
Total | 1,496,000,000 | 1,496,000,000 |
Discount to par (as a percent) | 99.71% | 99.71% |
Interest rate (as a percent) | 4.65% | 4.65% |
Face amount of debt instrument | 1,500,000,000 | 1,500,000,000 |
2009 Shelf Registration Statement-$1,500 issued at discount to par at a price of 99.985% in March 2012 at 2.6%, due September 2017 | ' | ' |
Long-term debt | ' | ' |
Total | 1,500,000,000 | 1,500,000,000 |
Discount to par (as a percent) | 99.99% | 99.99% |
Interest rate (as a percent) | 2.60% | 2.60% |
Face amount of debt instrument | 1,500,000,000 | 1,500,000,000 |
2009 Shelf Registration Statement-$500 issued at discount to par at a price of 99.771% in March 2012 at 4.05%, due September 2022 | ' | ' |
Long-term debt | ' | ' |
Total | 499,000,000 | 499,000,000 |
Discount to par (as a percent) | 99.77% | 99.77% |
Interest rate (as a percent) | 4.05% | 4.05% |
Face amount of debt instrument | 500,000,000 | 500,000,000 |
EDS Senior Notes | ' | ' |
Long-term debt | ' | ' |
Total | 314,000,000 | 1,423,000,000 |
EDS Senior Notes-$1,100 issued June 2003 at 6.0%, paid August 2013 | ' | ' |
Long-term debt | ' | ' |
Total | ' | 1,109,000,000 |
Interest rate (as a percent) | ' | 6.00% |
Face amount of debt instrument | ' | 1,100,000,000 |
EDS Senior Notes-$300 issued October 1999 at 7.45%, due October 2029 | ' | ' |
Long-term debt | ' | ' |
Total | 314,000,000 | 314,000,000 |
Interest rate (as a percent) | 7.45% | 7.45% |
Face amount of debt instrument | 300,000,000 | 300,000,000 |
Other, including capital lease obligations, at 0.00%-8.39%, due in calendar years 2014-2024 | ' | ' |
Long-term debt | ' | ' |
Other, including capital lease obligations | 689,000,000 | 680,000,000 |
Minimum interest rate (as a percent) | 0.00% | 0.00% |
Maximum interest rate (as a percent) | 8.39% | 8.39% |
Other, including capital lease obligations, at 0.00%-8.39%, due in calendar years 2014-2024 | HPFS and its subsidiaries | ' | ' |
Long-term debt | ' | ' |
Other, including capital lease obligations | $244,000,000 | $225,000,000 |
Borrowings_Details_3
Borrowings (Details 3) (USD $) | 12 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||
Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2013 | Sep. 30, 2012 | Sep. 30, 2012 | Oct. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2013 | Sep. 30, 2012 | Oct. 31, 2013 | |
Other, including capital lease obligations, at 0.00%-8.39%, due in calendar years 2014-2024 | Other, including capital lease obligations, at 0.00%-8.39%, due in calendar years 2014-2024 | Credit facilities | Credit facility expiring March 2017 | Credit facility expiring March 2017 | Credit facility expiring March 2017 | Credit facility expired February 2015 | Commercial paper | Commercial paper | Commercial paper | Hewlett-Packard International Bank PLC | ||||
Euro | GBP | Item | U.S. program | Euro program | Commercial paper | |||||||||
Euro Commercial Paper/Certificate of Deposit Programme | ||||||||||||||
Debt instruments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of commercial paper programs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' |
Commercial paper authorization by HP | ' | ' | ' | ' | ' | ' | ' | $2,200,000,000 | $300,000,000 | ' | $16,000,000,000 | $16,000,000,000 | $3,000,000,000 | $500,000,000 |
Amount of additional commercial paper authorization for subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000,000 | ' | ' | ' |
Amount available under credit facility | ' | ' | ' | ' | ' | 7,500,000,000 | 3,000,000,000 | ' | ' | 4,500,000,000 | ' | ' | ' | ' |
Term of credit facility | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | '4 years | ' | ' | ' | ' |
Borrowings collateralized by certain financing receivable assets | ' | ' | ' | 244,000,000 | 225,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Available borrowing resources, other than 2012 Shelf Registration | 17,800,000,000 | ' | ' | ' | ' | 1,600,000,000 | ' | ' | ' | ' | 16,200,000,000 | ' | ' | ' |
Premium on debt issuance | 14,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Discount on debt issuance | 16,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate future maturities of debt outstanding including capital lease obligations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2014 | 5,195,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2015 | 2,543,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2016 | 3,013,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2017 | 2,891,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2018 | 842,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Thereafter | 7,205,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total | 21,689,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest expense on borrowings | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Financing interest | 312,000,000 | 317,000,000 | 306,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest expense | 426,000,000 | 514,000,000 | 216,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total interest expense | $738,000,000 | $831,000,000 | $522,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Taxes_on_Earnings_Details
Taxes on Earnings (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Domestic and foreign components of earnings (loss) before taxes | ' | ' | ' |
U.S. | $2,618 | ($3,192) | $3,039 |
Non-U.S. | 3,892 | -8,741 | 5,943 |
Earnings (loss) before taxes | 6,510 | -11,933 | 8,982 |
U.S. federal taxes: | ' | ' | ' |
Current | 475 | 330 | 390 |
Deferred | -666 | 81 | -590 |
Non-U.S. taxes: | ' | ' | ' |
Current | 1,275 | 1,139 | 1,177 |
Deferred | 89 | -787 | 611 |
State taxes: | ' | ' | ' |
Current | 57 | -41 | 141 |
Deferred | 167 | -5 | 179 |
Provision for (benefit from) taxes on earnings | $1,397 | $717 | $1,908 |
Taxes_on_Earnings_Details_2
Taxes on Earnings (Details 2) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Taxes on Earnings | ' | ' | ' |
Tax benefit (deficit) from the exercise of employee stock options and other employee stock programs | ($149) | ($175) | $128 |
Differences between the U.S. federal statutory income tax rate and HP's effective tax rate | ' | ' | ' |
U.S. federal statutory income tax rate (as a percent) | 35.00% | 35.00% | 35.00% |
State income taxes, net of federal tax benefit (as a percent) | 0.10% | 0.50% | 0.50% |
Lower rates in other jurisdictions, net (as a percent) | -24.50% | 13.90% | -23.30% |
Research and development credit (as a percent) | -0.70% | 0.10% | -0.60% |
Valuation allowance (as a percent) | 3.80% | -14.00% | 5.20% |
Nondeductible goodwill (as a percent) | ' | -40.30% | 3.40% |
Uncertain tax positions | 4.10% | -1.40% | -1.10% |
Other, net (as a percent) | 3.70% | 0.20% | 2.10% |
Effective tax rate (as a percent) | 21.50% | -6.00% | 21.20% |
Taxes_on_Earnings_Details_3
Taxes on Earnings (Details 3) (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Taxes on Earnings | ' | ' | ' |
Income tax charge to record valuation allowances | $214 | $1,300 | ' |
Amount of charges recorded for various foreign valuation allowances | ' | 297 | ' |
Income tax benefits for adjustments to prior year foreign income tax accruals, settlement of tax audit matters, and miscellaneous other items | -146 | -26 | -78 |
Tax charges recorded for increases to foreign and state valuation allowances | ' | ' | 468 |
Income tax benefits (charge) for adjustments to uncertain tax positions and the settlement of tax audit matters | 406 | ' | -63 |
Tax benefit from the retroactive research and development credit | -50 | ' | ' |
Tax expense (benefit) associated with miscellaneous prior period items | 47 | ' | -2 |
Income tax charges related to items unique to the year | 471 | ' | 325 |
Income tax benefits, reduced rates for subsidiaries in certain countries | $827 | $900 | $1,300 |
Income tax benefits, reduced rates for subsidiaries in certain countries (in dollars per share) | $0.42 | $0.46 | $0.62 |
Taxes_on_Earnings_Details_4
Taxes on Earnings (Details 4) (USD $) | 2 Months Ended | 12 Months Ended | 15 Months Ended | 70 Months Ended | ||
Oct. 31, 2008 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | Oct. 31, 2009 | Aug. 26, 2008 | |
Item | ||||||
Reconciliation of unrecognized tax benefits | ' | ' | ' | ' | ' | ' |
Balance at beginning of year | ' | $2,573,000,000 | $2,118,000,000 | $2,085,000,000 | ' | ' |
Increases: | ' | ' | ' | ' | ' | ' |
For current year's tax positions | ' | 290,000,000 | 209,000,000 | 384,000,000 | ' | ' |
For prior years' tax positions | ' | 997,000,000 | 651,000,000 | 426,000,000 | ' | ' |
Decreases: | ' | ' | ' | ' | ' | ' |
For prior years' tax positions | ' | -146,000,000 | -321,000,000 | -159,000,000 | ' | ' |
Statute of limitations expiration | ' | -11,000,000 | -1,000,000 | -20,000,000 | ' | ' |
Settlements with taxing authorities | ' | -219,000,000 | -83,000,000 | -598,000,000 | ' | ' |
Balance at end of year | ' | 3,484,000,000 | 2,573,000,000 | 2,118,000,000 | ' | ' |
Unrecognized tax benefits that would affect effective tax rate if realized | ' | 1,900,000,000 | 1,400,000,000 | 1,100,000,000 | ' | ' |
Accrued income tax for interest and penalties | ' | 196,000,000 | ' | ' | ' | ' |
Likelihood of no resolution period | ' | '12 months | ' | ' | ' | ' |
Likelihood of conclusion period for certain federal, foreign and state tax issues | ' | '12 months | ' | ' | ' | ' |
Reasonably possible decrease in existing unrecognized tax benefits within the next 12 months | ' | 1,100,000,000 | ' | ' | ' | ' |
Number of other countries in which HP is subject to income taxes | ' | 80 | ' | ' | ' | ' |
Income tax examination, reduction in tax benefits | ' | 446,000,000 | ' | ' | ' | ' |
Income tax examination, additional tax payable | 62,000,000 | ' | ' | ' | 62,000,000 | 320,000,000 |
Income tax examination, proposed assessment amount | ' | 680,000,000 | ' | ' | ' | ' |
Undistributed earnings from non-U.S. operations | ' | $38,200,000,000 | ' | ' | ' | ' |
Taxes_on_Earnings_Details_5
Taxes on Earnings (Details 5) (USD $) | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
In Millions, unless otherwise specified | |||
Deferred Tax Assets | ' | ' | ' |
Loss carryforwards | $9,807 | $9,142 | ' |
Credit carryforwards | 4,261 | 3,884 | ' |
Inventory valuation | 128 | 185 | ' |
Intercompany transactions - profit in inventory | 125 | 463 | ' |
Intercompany transactions - excluding inventory | 1,923 | 881 | ' |
Fixed assets | 289 | 349 | ' |
Warranty | 622 | 663 | ' |
Employee and retiree benefits | 2,350 | 3,264 | ' |
Accounts receivable allowance | 185 | 161 | ' |
Intangible assets | 224 | 264 | ' |
Restructuring | 340 | 225 | ' |
Deferred revenue | 1,119 | 969 | ' |
Other | 1,443 | 1,107 | ' |
Gross deferred tax assets | 22,816 | 21,557 | ' |
Valuation allowance | -11,390 | -10,223 | -9,100 |
Net deferred tax assets | 11,426 | 11,334 | ' |
Deferred Tax Liabilities | ' | ' | ' |
Unremitted earnings of foreign subsidiaries | 7,469 | 7,559 | ' |
Inventory valuation | 13 | 12 | ' |
Fixed assets | 72 | 65 | ' |
Employee and retiree benefits | 11 | 16 | ' |
Accounts receivable allowance | 1 | 2 | ' |
Intangible assets | 886 | 1,111 | ' |
Deferred revenue | 19 | 16 | ' |
Other | 759 | 367 | ' |
Gross deferred tax liabilities | 9,230 | 9,148 | ' |
Net deferred tax liabilities | $9,230 | $9,148 | ' |
Taxes_on_Earnings_Details_6
Taxes on Earnings (Details 6) (USD $) | Oct. 31, 2013 | Oct. 31, 2012 |
Current and long-term deferred tax assets and deferred tax liabilities | ' | ' |
Current deferred tax assets | $3,893,000,000 | $3,783,000,000 |
Current deferred tax liabilities | -375,000,000 | -230,000,000 |
Long-term deferred tax assets | 1,346,000,000 | 1,581,000,000 |
Long-term deferred tax liabilities | -2,668,000,000 | -2,948,000,000 |
Net deferred tax assets net of deferred tax liabilities | 2,196,000,000 | 2,186,000,000 |
Federal | ' | ' |
Operating loss carryforwards | ' | ' |
Operating loss carryforwards | 1,400,000,000 | 2,900,000,000 |
State | ' | ' |
Operating loss carryforwards | ' | ' |
Operating loss carryforwards | 5,600,000,000 | 6,200,000,000 |
Foreign | ' | ' |
Operating loss carryforwards | ' | ' |
Operating loss carryforwards | $30,800,000,000 | $25,700,000,000 |
Taxes_on_Earnings_Details_7
Taxes on Earnings (Details 7) (USD $) | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
In Millions, unless otherwise specified | |||
Taxes on Earnings | ' | ' | ' |
Capital loss carryforwards | $272 | $286 | ' |
Valuation allowance | ' | ' | ' |
Valuation allowance for deferred tax assets | 11,390 | 10,223 | 9,100 |
Operating loss carryforwards | State | ' | ' | ' |
Valuation allowance | ' | ' | ' |
Valuation allowance for deferred tax assets | 162 | ' | ' |
Operating loss carryforwards | Federal and state | ' | ' | ' |
Valuation allowance | ' | ' | ' |
Valuation allowance for deferred tax assets | ' | 166 | ' |
Operating loss carryforwards | Foreign | ' | ' | ' |
Valuation allowance | ' | ' | ' |
Valuation allowance for deferred tax assets | 8,900 | 7,600 | ' |
Capital loss carryforwards | ' | ' | ' |
Valuation allowance | ' | ' | ' |
Valuation allowance for deferred tax assets | $104 | $104 | ' |
Taxes_on_Earnings_Details_8
Taxes on Earnings (Details 8) (USD $) | 12 Months Ended | ||
Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | |
Carryforward | ' | ' | ' |
U.S. foreign tax credits | $3,200,000,000 | ' | ' |
U.S. research and development and other credits | 653,000,000 | ' | ' |
Tax credits in state and foreign jurisdictions | 408,000,000 | ' | ' |
Deferred tax assets for various tax credit carryforwards | 4,261,000,000 | 3,884,000,000 | ' |
Valuation Allowance | ' | ' | ' |
U.S. foreign tax credits | 47,000,000 | ' | ' |
Tax credits in state and foreign jurisdictions | 239,000,000 | ' | ' |
Balance at end of year | 286,000,000 | ' | ' |
Valuation allowance balance | ' | ' | ' |
Balance at beginning of year | 10,223,000,000 | 9,100,000,000 | ' |
Balance at end of year | 11,390,000,000 | 10,223,000,000 | ' |
Increase in valuation allowances | 1,200,000,000 | 1,100,000,000 | ' |
Increase in valuation allowances on certain U.S. deferred tax assets related to legal entities within the enterprise services business | ' | 1,300,000,000 | ' |
Increase in valuation allowances on other U.S. deferred tax assets | ' | 317,000,000 | ' |
Increase in valuation allowances on foreign deferred tax assets | ' | 669,000,000 | ' |
Decrease in foreign valuation allowance attributable to foreign currency translation | ' | 1,100,000,000 | ' |
Deferred tax asset valuation allowance | ' | ' | ' |
Valuation allowance balance | ' | ' | ' |
Balance at beginning of year | 10,223,000,000 | 9,057,000,000 | 8,755,000,000 |
Charged to expenses | 1,644,000,000 | 865,000,000 | 315,000,000 |
Other comprehensive income, currency translation and other | -477,000,000 | 301,000,000 | -13,000,000 |
Balance at end of year | $11,390,000,000 | $10,223,000,000 | $9,057,000,000 |
Stockholders_Equity_Details
Stockholders' Equity (Details) (USD $) | 12 Months Ended | ||
Share data in Millions, except Per Share data, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Stockholders' Equity | ' | ' | ' |
Cash dividends declared per share (in dollars per share) | $0.55 | $0.50 | $0.40 |
Repurchases of common stock (in shares) | 77 | 67 | 259 |
Share repurchases settled ( in shares) | ' | ' | 262 |
Share repurchases settled | $1,532,000,000 | $1,619,000,000 | $10,117,000,000 |
Share repurchases executed during period, which will settle in next period | ' | ' | 3 |
Share repurchase authorization increase after balance sheet date | 0 | 0 | 10,000,000,000 |
Share repurchase authorization remaining | 7,600,000,000 | ' | ' |
Tax (expense) benefit on change in unrealized gains/losses on available-for-sale securities: | ' | ' | ' |
Tax (expense) benefit on unrealized gains/losses arising during the period | -14,000,000 | 25,000,000 | ' |
Tax (expense) benefit on change in unrealized gains/losses on available-for-sale securities | -14,000,000 | 25,000,000 | ' |
Tax benefit (expense) on change in unrealized gains/losses on cash flow hedges: | ' | ' | ' |
Tax benefit (expense) on unrealized gains/losses arising during the period | 97,000,000 | -137,000,000 | 86,000,000 |
Tax (benefit) expense on gains/losses reclassified into earnings | -49,000,000 | 143,000,000 | -210,000,000 |
Tax benefit (expense) on change in unrealized gains/losses on cash flow hedges | 48,000,000 | 6,000,000 | -124,000,000 |
Tax (expense) benefit on change in unrealized components of defined benefit plans: | ' | ' | ' |
Tax (expense) benefit on net losses arising during the period | -258,000,000 | 261,000,000 | 263,000,000 |
Tax (benefit) expense on amortization of actuarial loss and prior service benefit | -35,000,000 | -31,000,000 | -36,000,000 |
Tax (expense) benefit on curtailments, settlements and other | -5,000,000 | -48,000,000 | 2,000,000 |
Tax (expense) benefit on change in unrealized components of defined benefit plans | -298,000,000 | 182,000,000 | 229,000,000 |
Tax benefit (expense) on change in cumulative translation adjustment | 25,000,000 | -25,000,000 | -20,000,000 |
Tax (expense) benefit on other comprehensive income/loss | -239,000,000 | 188,000,000 | 85,000,000 |
Accumulated Other Comprehensive Loss, net of taxes | ' | ' | ' |
Net unrealized gain on available-for-sale securities | 76,000,000 | 87,000,000 | 37,000,000 |
Net unrealized loss on cash flow hedges | -188,000,000 | -99,000,000 | -41,000,000 |
Unrealized components of defined benefit plans | -3,084,000,000 | -5,090,000,000 | -3,109,000,000 |
Cumulative translation adjustment | -582,000,000 | -457,000,000 | -385,000,000 |
Accumulated other comprehensive loss | ($3,778,000,000) | ($5,559,000,000) | ($3,498,000,000) |
Retirement_and_PostRetirement_2
Retirement and Post-Retirement Benefit Plans (Details) (USD $) | 94 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Retirement and post-retirement benefit plans | ' | ' | ' |
Plan assets | $11,703 | $12,494 | ' |
Projected Benefit Obligation | 12,703 | 15,195 | ' |
U.S. Defined Benefit Plans | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Plan assets | 10,866 | 11,536 | ' |
Projected Benefit Obligation | 11,866 | 14,237 | 11,945 |
Post-Retirement Benefit Plans | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Projected Benefit Obligation | 867 | 1,056 | 816 |
Age for eligibility under HP Retirement Medical Savings Account Plan | '45 years | ' | ' |
DPSP | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Plan assets | 837 | 958 | ' |
Projected Benefit Obligation | $837 | $958 | ' |
Retirement_and_PostRetirement_3
Retirement and Post-Retirement Benefit Plans (Details 2) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Defined Contribution Plan Disclosures | ' | ' | ' |
Total defined contribution expense | $603 | $628 | $626 |
HP 401(k) Plan | ' | ' | ' |
Defined Contribution Plan Disclosures | ' | ' | ' |
Percent of equal 401(k) match to employees effective during the period | 100.00% | ' | ' |
Percentage of maximum matching contribution | 4.00% | ' | ' |
Retirement_and_PostRetirement_4
Retirement and Post-Retirement Benefit Plans (Details 3) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
U.S. Defined Benefit Plans | ' | ' | ' |
Net benefit cost (credit) | ' | ' | ' |
Service cost | $1 | $1 | $1 |
Interest cost | 560 | 566 | 594 |
Expected return on plan assets | -845 | -793 | -744 |
Amortization and deferrals: | ' | ' | ' |
Actuarial loss (gain) | 77 | 43 | 33 |
Net periodic benefit (credit) cost | -207 | -183 | -116 |
Settlement loss (gain) | 12 | 11 | 3 |
Special termination benefits | ' | 833 | ' |
Net benefit (credit) cost | -195 | 661 | -113 |
Non-U.S. Defined Benefit Plans | ' | ' | ' |
Net benefit cost (credit) | ' | ' | ' |
Service cost | 337 | 294 | 343 |
Interest cost | 676 | 690 | 694 |
Expected return on plan assets | -1,007 | -816 | -890 |
Amortization and deferrals: | ' | ' | ' |
Actuarial loss (gain) | 341 | 235 | 235 |
Prior service benefit | -27 | -24 | -14 |
Net periodic benefit (credit) cost | 320 | 379 | 368 |
Curtailment (gain) loss | -3 | 4 | ' |
Settlement loss (gain) | 18 | -18 | 9 |
Special termination benefits | 31 | 17 | 16 |
Net benefit (credit) cost | 366 | 382 | 393 |
Post-Retirement Benefit Plans | ' | ' | ' |
Net benefit cost (credit) | ' | ' | ' |
Service cost | 6 | 7 | 9 |
Interest cost | 31 | 35 | 35 |
Expected return on plan assets | -34 | -38 | -37 |
Amortization and deferrals: | ' | ' | ' |
Actuarial loss (gain) | 2 | -3 | 3 |
Prior service benefit | -67 | -79 | -83 |
Net periodic benefit (credit) cost | -62 | -78 | -73 |
Curtailment (gain) loss | -7 | -30 | ' |
Special termination benefits | -5 | 227 | ' |
Net benefit (credit) cost | ($74) | $119 | ($73) |
Retirement_and_PostRetirement_5
Retirement and Post-Retirement Benefit Plans (Details 4) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||
Jan. 31, 2012 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | Oct. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | Oct. 31, 2012 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | |
2012 EER | 2012 EER | U.S. Defined Benefit Plans | U.S. Defined Benefit Plans | U.S. Defined Benefit Plans | U.S. Defined Benefit Plans | U.S. Defined Benefit Plans | Non-U.S. Defined Benefit Plans | Non-U.S. Defined Benefit Plans | Non-U.S. Defined Benefit Plans | RMSA | RMSA | Post-Retirement Benefit Plans | Post-Retirement Benefit Plans | Post-Retirement Benefit Plans | ||
employee | 2012 EER | 2012 EER | 2012 EER | 2012 EER | ||||||||||||
Minimum | Maximum | Maximum | ||||||||||||||
Weighted average assumptions used to calculate net benefit (credit) cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Discount rate (as a percent) | ' | ' | ' | 4.10% | 4.80% | 5.60% | ' | ' | 3.80% | 4.50% | 4.40% | ' | ' | 3.00% | 4.40% | 4.40% |
Expected increase in compensation levels (as a percent) | ' | ' | ' | 2.00% | 2.00% | 2.00% | ' | ' | 2.40% | 2.50% | 2.50% | ' | ' | ' | ' | ' |
Expected long-term return on assets (as a percent) | ' | ' | ' | 7.80% | 7.60% | 8.00% | ' | ' | 7.20% | 6.40% | 6.80% | ' | ' | 9.00% | 10.00% | 10.50% |
Change in fair value of plan assets: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value - beginning of year | ' | ' | ' | $11,536,000,000 | $10,662,000,000 | ' | ' | ' | $14,021,000,000 | $13,180,000,000 | ' | ' | ' | $395,000,000 | $394,000,000 | ' |
Acquisition/addition of plans | ' | ' | ' | ' | ' | ' | ' | ' | 7,000,000 | 8,000,000 | ' | ' | ' | ' | ' | ' |
Actual return on plan assets | ' | ' | ' | 629,000,000 | 1,411,000,000 | ' | ' | ' | 1,842,000,000 | 1,327,000,000 | ' | ' | ' | 32,000,000 | 36,000,000 | ' |
Employer contributions | ' | ' | ' | 54,000,000 | 50,000,000 | ' | ' | ' | 634,000,000 | 582,000,000 | ' | ' | 12,000 | 102,000,000 | 31,000,000 | ' |
Participant contributions | ' | ' | ' | ' | ' | ' | ' | ' | 63,000,000 | 57,000,000 | ' | ' | ' | 72,000,000 | 59,000,000 | ' |
Benefits paid | ' | ' | ' | -1,320,000,000 | -556,000,000 | ' | ' | ' | -504,000,000 | -462,000,000 | ' | ' | ' | -205,000,000 | -125,000,000 | ' |
Settlement | ' | ' | ' | -33,000,000 | -31,000,000 | ' | ' | ' | -96,000,000 | -193,000,000 | ' | ' | ' | ' | ' | ' |
Currency impact | ' | ' | ' | ' | ' | ' | ' | ' | 116,000,000 | -478,000,000 | ' | ' | ' | ' | ' | ' |
Fair value - end of year | ' | ' | ' | 10,866,000,000 | 11,536,000,000 | 10,662,000,000 | ' | ' | 16,083,000,000 | 14,021,000,000 | 13,180,000,000 | ' | ' | 396,000,000 | 395,000,000 | 394,000,000 |
Change in benefit obligation: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Projected benefit obligation - beginning of year | ' | ' | ' | 14,237,000,000 | 11,945,000,000 | ' | ' | ' | 18,097,000,000 | 16,328,000,000 | ' | ' | ' | 1,056,000,000 | 816,000,000 | ' |
Acquisition/addition of plans | ' | ' | ' | ' | ' | ' | ' | ' | 14,000,000 | 25,000,000 | ' | ' | ' | ' | ' | ' |
Service cost | ' | ' | ' | 1,000,000 | 1,000,000 | 1,000,000 | ' | ' | 337,000,000 | 294,000,000 | 343,000,000 | ' | ' | 6,000,000 | 7,000,000 | 9,000,000 |
Interest cost | ' | ' | ' | 560,000,000 | 566,000,000 | 594,000,000 | ' | ' | 676,000,000 | 690,000,000 | 694,000,000 | ' | ' | 31,000,000 | 35,000,000 | 35,000,000 |
Participant contributions | ' | ' | ' | ' | ' | ' | ' | ' | 63,000,000 | 57,000,000 | ' | ' | ' | 72,000,000 | 59,000,000 | ' |
Actuarial (gain) loss | ' | ' | ' | -1,579,000,000 | 1,479,000,000 | ' | ' | ' | 343,000,000 | 2,143,000,000 | ' | ' | ' | -85,000,000 | 34,000,000 | ' |
Benefits paid | ' | ' | ' | -1,320,000,000 | -556,000,000 | ' | ' | ' | -504,000,000 | -462,000,000 | ' | ' | ' | -205,000,000 | -125,000,000 | ' |
Plan amendments | ' | ' | ' | ' | ' | ' | ' | ' | 6,000,000 | -67,000,000 | ' | ' | ' | ' | ' | ' |
Curtailment | ' | ' | ' | ' | ' | ' | ' | ' | 13,000,000 | 5,000,000 | ' | ' | ' | ' | 5,000,000 | ' |
Settlement | ' | ' | ' | -33,000,000 | -31,000,000 | ' | ' | ' | -100,000,000 | -395,000,000 | ' | ' | ' | ' | ' | ' |
Special termination benefits | ' | ' | -833,000,000 | ' | 833,000,000 | ' | ' | ' | 31,000,000 | 17,000,000 | 16,000,000 | -227,000,000 | ' | -5,000,000 | 227,000,000 | ' |
Currency impact | ' | ' | ' | ' | ' | ' | ' | ' | 176,000,000 | -538,000,000 | ' | ' | ' | -3,000,000 | -2,000,000 | ' |
Projected benefit obligation - end of year | ' | ' | ' | 11,866,000,000 | 14,237,000,000 | 11,945,000,000 | ' | ' | 19,152,000,000 | 18,097,000,000 | 16,328,000,000 | ' | ' | 867,000,000 | 1,056,000,000 | 816,000,000 |
Funded status at end of year | ' | ' | ' | -1,000,000,000 | -2,701,000,000 | ' | ' | ' | -3,069,000,000 | -4,076,000,000 | ' | ' | ' | -471,000,000 | -661,000,000 | ' |
Accumulated benefit obligation | ' | ' | ' | 11,865,000,000 | 14,236,000,000 | ' | ' | ' | 18,254,000,000 | 17,070,000,000 | ' | ' | ' | ' | ' | ' |
Weighted average assumptions used to calculate the projected benefit obligations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Discount rate (as a percent) | ' | ' | ' | 4.90% | 4.10% | ' | ' | ' | 3.90% | 3.80% | ' | ' | ' | 3.90% | 3.00% | ' |
Expected increase in compensation levels (as a percent) | ' | ' | ' | 2.00% | 2.00% | ' | ' | ' | 2.40% | 2.40% | ' | ' | ' | ' | ' | ' |
Net amounts recognized for defined benefit and post-retirement benefit plans in Consolidated Balance Sheets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Noncurrent assets | ' | ' | ' | ' | ' | ' | ' | ' | 479,000,000 | 260,000,000 | ' | ' | ' | ' | ' | ' |
Current liabilities | ' | ' | ' | -33,000,000 | -33,000,000 | ' | ' | ' | -46,000,000 | -39,000,000 | ' | ' | ' | -109,000,000 | -124,000,000 | ' |
Noncurrent liabilities | ' | ' | ' | -967,000,000 | -2,668,000,000 | ' | ' | ' | -3,502,000,000 | -4,297,000,000 | ' | ' | ' | -362,000,000 | -537,000,000 | ' |
Funded status at end of year | ' | ' | ' | -1,000,000,000 | -2,701,000,000 | ' | ' | ' | -3,069,000,000 | -4,076,000,000 | ' | ' | ' | -471,000,000 | -661,000,000 | ' |
Pretax net actuarial loss (gain) and prior service benefit recognized in accumulated other comprehensive loss for defined benefit and post-retirement benefit plans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net actuarial loss (gain) | ' | ' | ' | 377,000,000 | ' | ' | ' | ' | 4,220,000,000 | ' | ' | ' | ' | -96,000,000 | ' | ' |
Prior service benefit | ' | ' | ' | ' | ' | ' | ' | ' | -231,000,000 | ' | ' | ' | ' | -161,000,000 | ' | ' |
Total recognized in accumulated other comprehensive loss (income) | ' | ' | ' | 377,000,000 | ' | ' | ' | ' | 3,989,000,000 | ' | ' | ' | ' | -257,000,000 | ' | ' |
Net actuarial loss (gain) and prior service benefit that are expected to be amortized from accumulated other comprehensive loss (income) and recognized as components of net periodic benefit cost (credit) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net actuarial loss (gain) | ' | ' | ' | -16,000,000 | ' | ' | ' | ' | -311,000,000 | ' | ' | ' | ' | 10,000,000 | ' | ' |
Prior service benefit | ' | ' | ' | ' | ' | ' | ' | ' | -24,000,000 | ' | ' | ' | ' | -41,000,000 | ' | ' |
Total expected to be recognized in net periodic benefit cost (credit) | ' | ' | ' | 16,000,000 | ' | ' | ' | ' | 287,000,000 | ' | ' | ' | ' | -51,000,000 | ' | ' |
Defined benefit plans with projected benefit obligations exceeding the fair value of plan assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate fair value of plan assets | ' | ' | ' | 10,866,000,000 | 11,536,000,000 | ' | ' | ' | 10,462,000,000 | 10,283,000,000 | ' | ' | ' | ' | ' | ' |
Aggregate projected benefit obligation | ' | ' | ' | 11,866,000,000 | 14,237,000,000 | ' | ' | ' | 14,010,000,000 | 14,618,000,000 | ' | ' | ' | ' | ' | ' |
Defined benefit plans with accumulated benefit obligations exceeding the fair value of plan assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate fair value of plan assets | ' | ' | ' | 10,866,000,000 | 11,536,000,000 | ' | ' | ' | 9,926,000,000 | 10,193,000,000 | ' | ' | ' | ' | ' | ' |
Aggregate accumulated benefit obligation | ' | ' | ' | 11,865,000,000 | 14,236,000,000 | ' | ' | ' | 12,703,000,000 | 13,645,000,000 | ' | ' | ' | ' | ' | ' |
Net gain recognized due to transfer of substitutional portion of entity's Japan pension to Japanese government | 28,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Settlement loss related to transfer of substitutional portion of entity's Japan pension to Japanese government | 150,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Government subsidy related to transfer of substitutional portion of entity's Japan pension to Japanese government | 178,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Elimination of pension obligations included in government subsidy | 344,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Transfer of pension assets included in government subsidy | 166,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Combined age and service required for each employee participating in the restructuring plan | ' | ' | '65 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of employees who participated | ' | ' | 8,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period for calculation of lump sum payment | ' | ' | ' | ' | ' | ' | '5 months | '14 months | ' | ' | ' | ' | ' | ' | ' | ' |
Special termination benefits | ' | ' | -833,000,000 | ' | 833,000,000 | ' | ' | ' | 31,000,000 | 17,000,000 | 16,000,000 | -227,000,000 | ' | -5,000,000 | 227,000,000 | ' |
Maximum period for continuing health care coverage at active employee contribution rates for participating employees in restructuring plan | ' | ' | '24 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contributions to benefit plans | ' | ' | ' | 54,000,000 | 50,000,000 | ' | ' | ' | 634,000,000 | 582,000,000 | ' | ' | 12,000 | 102,000,000 | 31,000,000 | ' |
Curtailment (gain) loss | ' | ($30,000,000) | ' | ' | ' | ' | ' | ' | ($3,000,000) | $4,000,000 | ' | ($37,000,000) | ' | ($7,000,000) | ($30,000,000) | ' |
Retirement_and_PostRetirement_6
Retirement and Post-Retirement Benefit Plans (Details 5) (USD $) | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Government debt securities | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Reclassified from level 1 to level 2 | ' | $1,600,000,000 | ' |
U.S. Defined Benefit Plans | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | 10,866,000,000 | 11,536,000,000 | 10,662,000,000 |
U.S. Defined Benefit Plans | U.S, equity securities | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | 1,711,000,000 | 1,150,000,000 | ' |
U.S. Defined Benefit Plans | Non-U.S, equity securities | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | 1,274,000,000 | 866,000,000 | ' |
U.S. Defined Benefit Plans | Corporate debt securities | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | 3,028,000,000 | 3,443,000,000 | ' |
U.S. Defined Benefit Plans | Government debt securities | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | 1,849,000,000 | 3,037,000,000 | ' |
U.S. Defined Benefit Plans | Private Equity, alternative Investments | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | 1,250,000,000 | 1,303,000,000 | ' |
U.S. Defined Benefit Plans | Hybrids, alternative investments | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | 2,000,000 | 2,000,000 | ' |
U.S. Defined Benefit Plans | Hedge Funds, alternative investments | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | 113,000,000 | 65,000,000 | ' |
U.S. Defined Benefit Plans | Common Collective Trusts and 103-12 Investment Entities | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | 1,233,000,000 | 1,546,000,000 | ' |
U.S. Defined Benefit Plans | Registered Investment Companies | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | 390,000,000 | 461,000,000 | ' |
U.S. Defined Benefit Plans | Cash and Cash Equivalents | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | 73,000,000 | 42,000,000 | ' |
U.S. Defined Benefit Plans | Other | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | -57,000,000 | -379,000,000 | ' |
U.S. Defined Benefit Plans | Level 1 | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | 3,020,000,000 | 1,827,000,000 | ' |
U.S. Defined Benefit Plans | Level 1 | U.S, equity securities | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | 1,711,000,000 | 1,150,000,000 | ' |
U.S. Defined Benefit Plans | Level 1 | Non-U.S, equity securities | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | 1,274,000,000 | 866,000,000 | ' |
U.S. Defined Benefit Plans | Level 1 | Private Equity, alternative Investments | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | ' | 3,000,000 | ' |
U.S. Defined Benefit Plans | Level 1 | Registered Investment Companies | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | 61,000,000 | 119,000,000 | ' |
U.S. Defined Benefit Plans | Level 1 | Cash and Cash Equivalents | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | 11,000,000 | -66,000,000 | ' |
U.S. Defined Benefit Plans | Level 1 | Other | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | -37,000,000 | -245,000,000 | ' |
U.S. Defined Benefit Plans | Level 2 | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | 6,481,000,000 | 8,341,000,000 | ' |
U.S. Defined Benefit Plans | Level 2 | Corporate debt securities | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | 3,028,000,000 | 3,442,000,000 | ' |
U.S. Defined Benefit Plans | Level 2 | Government debt securities | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | 1,849,000,000 | 3,037,000,000 | ' |
U.S. Defined Benefit Plans | Level 2 | Common Collective Trusts and 103-12 Investment Entities | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | 1,233,000,000 | 1,546,000,000 | ' |
U.S. Defined Benefit Plans | Level 2 | Registered Investment Companies | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | 329,000,000 | 342,000,000 | ' |
U.S. Defined Benefit Plans | Level 2 | Cash and Cash Equivalents | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | 62,000,000 | 108,000,000 | ' |
U.S. Defined Benefit Plans | Level 2 | Other | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | -20,000,000 | -134,000,000 | ' |
U.S. Defined Benefit Plans | Level 3 | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | 1,365,000,000 | 1,368,000,000 | 1,360,000,000 |
U.S. Defined Benefit Plans | Level 3 | Corporate debt securities | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | ' | 1,000,000 | ' |
U.S. Defined Benefit Plans | Level 3 | Private Equity, alternative Investments | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | 1,250,000,000 | 1,300,000,000 | 1,356,000,000 |
U.S. Defined Benefit Plans | Level 3 | Hybrids, alternative investments | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | 2,000,000 | 2,000,000 | 4,000,000 |
U.S. Defined Benefit Plans | Level 3 | Hedge Funds, alternative investments | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | 113,000,000 | 65,000,000 | ' |
Non-U.S. Defined Benefit Plans | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | 16,083,000,000 | 14,021,000,000 | 13,180,000,000 |
Non-U.S. Defined Benefit Plans | U.S, equity securities | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | 2,487,000,000 | 1,649,000,000 | ' |
Non-U.S. Defined Benefit Plans | Non-U.S, equity securities | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | 4,806,000,000 | 4,175,000,000 | ' |
Non-U.S. Defined Benefit Plans | Corporate debt securities | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | 3,347,000,000 | 2,878,000,000 | ' |
Non-U.S. Defined Benefit Plans | Government debt securities | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | 1,751,000,000 | 1,653,000,000 | ' |
Non-U.S. Defined Benefit Plans | Private Equity, alternative Investments | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | 50,000,000 | 23,000,000 | ' |
Non-U.S. Defined Benefit Plans | Hybrids, alternative investments | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | 1,223,000,000 | 1,089,000,000 | ' |
Non-U.S. Defined Benefit Plans | Hedge Funds, alternative investments | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | 430,000,000 | 529,000,000 | ' |
Non-U.S. Defined Benefit Plans | Real Estate Funds | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | 1,032,000,000 | 820,000,000 | ' |
Non-U.S. Defined Benefit Plans | Insurance Group Annuity Contracts | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | 131,000,000 | 148,000,000 | ' |
Non-U.S. Defined Benefit Plans | Cash and Cash Equivalents | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | 652,000,000 | 444,000,000 | ' |
Non-U.S. Defined Benefit Plans | Other | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | 174,000,000 | 613,000,000 | ' |
Non-U.S. Defined Benefit Plans | Level 1 | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | 7,743,000,000 | 7,135,000,000 | ' |
Non-U.S. Defined Benefit Plans | Level 1 | U.S, equity securities | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | 2,456,000,000 | 1,621,000,000 | ' |
Non-U.S. Defined Benefit Plans | Level 1 | Non-U.S, equity securities | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | 4,059,000,000 | 4,049,000,000 | ' |
Non-U.S. Defined Benefit Plans | Level 1 | Private Equity, alternative Investments | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | ' | 2,000,000 | ' |
Non-U.S. Defined Benefit Plans | Level 1 | Real Estate Funds | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | 470,000,000 | 449,000,000 | ' |
Non-U.S. Defined Benefit Plans | Level 1 | Cash and Cash Equivalents | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | 648,000,000 | 439,000,000 | ' |
Non-U.S. Defined Benefit Plans | Level 1 | Other | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | 110,000,000 | 575,000,000 | ' |
Non-U.S. Defined Benefit Plans | Level 2 | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | 7,603,000,000 | 6,272,000,000 | ' |
Non-U.S. Defined Benefit Plans | Level 2 | U.S, equity securities | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | 31,000,000 | 28,000,000 | ' |
Non-U.S. Defined Benefit Plans | Level 2 | Non-U.S, equity securities | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | 670,000,000 | 50,000,000 | ' |
Non-U.S. Defined Benefit Plans | Level 2 | Corporate debt securities | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | 3,347,000,000 | 2,878,000,000 | ' |
Non-U.S. Defined Benefit Plans | Level 2 | Government debt securities | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | 1,751,000,000 | 1,653,000,000 | ' |
Non-U.S. Defined Benefit Plans | Level 2 | Private Equity, alternative Investments | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | 2,000,000 | ' | ' |
Non-U.S. Defined Benefit Plans | Level 2 | Hybrids, alternative investments | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | 1,223,000,000 | 1,089,000,000 | ' |
Non-U.S. Defined Benefit Plans | Level 2 | Hedge Funds, alternative investments | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | 226,000,000 | 296,000,000 | ' |
Non-U.S. Defined Benefit Plans | Level 2 | Real Estate Funds | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | 237,000,000 | 177,000,000 | ' |
Non-U.S. Defined Benefit Plans | Level 2 | Insurance Group Annuity Contracts | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | 50,000,000 | 60,000,000 | ' |
Non-U.S. Defined Benefit Plans | Level 2 | Cash and Cash Equivalents | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | 4,000,000 | 5,000,000 | ' |
Non-U.S. Defined Benefit Plans | Level 2 | Other | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | 62,000,000 | 36,000,000 | ' |
Non-U.S. Defined Benefit Plans | Level 3 | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | 737,000,000 | 614,000,000 | 656,000,000 |
Non-U.S. Defined Benefit Plans | Level 3 | U.S, equity securities | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | ' | ' | 30,000,000 |
Non-U.S. Defined Benefit Plans | Level 3 | Non-U.S, equity securities | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | 77,000,000 | 76,000,000 | ' |
Non-U.S. Defined Benefit Plans | Level 3 | Corporate debt securities | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | ' | ' | 3,000,000 |
Non-U.S. Defined Benefit Plans | Level 3 | Private Equity, alternative Investments | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | 48,000,000 | 21,000,000 | 20,000,000 |
Non-U.S. Defined Benefit Plans | Level 3 | Hedge Funds, alternative investments | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | 204,000,000 | 233,000,000 | 300,000,000 |
Non-U.S. Defined Benefit Plans | Level 3 | Real Estate Funds | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | 325,000,000 | 194,000,000 | 199,000,000 |
Non-U.S. Defined Benefit Plans | Level 3 | Insurance Group Annuity Contracts | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | 81,000,000 | 88,000,000 | 89,000,000 |
Non-U.S. Defined Benefit Plans | Level 3 | Cash and Cash Equivalents | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | ' | ' | -4,000,000 |
Non-U.S. Defined Benefit Plans | Level 3 | Other | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | 2,000,000 | 2,000,000 | 19,000,000 |
Post-Retirement Benefit Plans | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | 396,000,000 | 395,000,000 | 394,000,000 |
Post-Retirement Benefit Plans | Corporate debt securities | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | 17,000,000 | 17,000,000 | ' |
Post-Retirement Benefit Plans | Government debt securities | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | 22,000,000 | 22,000,000 | ' |
Post-Retirement Benefit Plans | Private Equity, alternative Investments | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | 234,000,000 | 235,000,000 | ' |
Post-Retirement Benefit Plans | Hybrids, alternative investments | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | 1,000,000 | 1,000,000 | ' |
Post-Retirement Benefit Plans | Common Collective Trusts and 103-12 Investment Entities | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | 42,000,000 | 49,000,000 | ' |
Post-Retirement Benefit Plans | Registered Investment Companies | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | 79,000,000 | 73,000,000 | ' |
Post-Retirement Benefit Plans | Cash and Cash Equivalents | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | 3,000,000 | 2,000,000 | ' |
Post-Retirement Benefit Plans | Other | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | -2,000,000 | -4,000,000 | ' |
Post-Retirement Benefit Plans | Level 1 | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | 82,000,000 | 75,000,000 | ' |
Post-Retirement Benefit Plans | Level 1 | Government debt securities | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | 5,000,000 | 6,000,000 | ' |
Post-Retirement Benefit Plans | Level 1 | Registered Investment Companies | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | 79,000,000 | 73,000,000 | ' |
Post-Retirement Benefit Plans | Level 1 | Other | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | -2,000,000 | -4,000,000 | ' |
Post-Retirement Benefit Plans | Level 2 | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | 79,000,000 | 84,000,000 | ' |
Post-Retirement Benefit Plans | Level 2 | Corporate debt securities | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | 17,000,000 | 17,000,000 | ' |
Post-Retirement Benefit Plans | Level 2 | Government debt securities | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | 17,000,000 | 16,000,000 | ' |
Post-Retirement Benefit Plans | Level 2 | Common Collective Trusts and 103-12 Investment Entities | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | 42,000,000 | 49,000,000 | ' |
Post-Retirement Benefit Plans | Level 2 | Cash and Cash Equivalents | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | 3,000,000 | 2,000,000 | ' |
Post-Retirement Benefit Plans | Level 3 | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | 235,000,000 | 236,000,000 | 228,000,000 |
Post-Retirement Benefit Plans | Level 3 | Private Equity, alternative Investments | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | 234,000,000 | 235,000,000 | 227,000,000 |
Post-Retirement Benefit Plans | Level 3 | Hybrids, alternative investments | ' | ' | ' |
Retirement and post-retirement benefit plans | ' | ' | ' |
Fair value of plan assets | $1,000,000 | $1,000,000 | $1,000,000 |
Retirement_and_PostRetirement_7
Retirement and Post-Retirement Benefit Plans (Details 6) (USD $) | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
In Millions, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 |
U.S. Defined Benefit Plans | U.S. Defined Benefit Plans | U.S. Defined Benefit Plans | U.S. Defined Benefit Plans | U.S. Defined Benefit Plans | U.S. Defined Benefit Plans | U.S. Defined Benefit Plans | U.S. Defined Benefit Plans | U.S. Defined Benefit Plans | U.S. Defined Benefit Plans | U.S. Defined Benefit Plans | U.S. Defined Benefit Plans | U.S. Defined Benefit Plans | U.S. Defined Benefit Plans | U.S. Defined Benefit Plans | U.S. Defined Benefit Plans | U.S. Defined Benefit Plans | U.S. Defined Benefit Plans | U.S. Defined Benefit Plans | U.S. Defined Benefit Plans | U.S. Defined Benefit Plans | U.S. Defined Benefit Plans | U.S. Defined Benefit Plans | U.S. Defined Benefit Plans | U.S. Defined Benefit Plans | U.S. Defined Benefit Plans | U.S. Defined Benefit Plans | U.S. Defined Benefit Plans | U.S. Defined Benefit Plans | U.S. Defined Benefit Plans | U.S. Defined Benefit Plans | U.S. Defined Benefit Plans | U.S. Defined Benefit Plans | U.S. Defined Benefit Plans | U.S. Defined Benefit Plans | U.S. Defined Benefit Plans | U.S. Defined Benefit Plans | U.S. Defined Benefit Plans | U.S. non-qualified plan participants | Non-U.S. Defined Benefit Plans | Non-U.S. Defined Benefit Plans | Non-U.S. Defined Benefit Plans | Non-U.S. Defined Benefit Plans | Non-U.S. Defined Benefit Plans | Non-U.S. Defined Benefit Plans | Non-U.S. Defined Benefit Plans | Non-U.S. Defined Benefit Plans | Non-U.S. Defined Benefit Plans | Non-U.S. Defined Benefit Plans | Non-U.S. Defined Benefit Plans | Non-U.S. Defined Benefit Plans | Non-U.S. Defined Benefit Plans | Non-U.S. Defined Benefit Plans | Non-U.S. Defined Benefit Plans | Non-U.S. Defined Benefit Plans | Non-U.S. Defined Benefit Plans | Non-U.S. Defined Benefit Plans | Non-U.S. Defined Benefit Plans | Non-U.S. Defined Benefit Plans | Non-U.S. Defined Benefit Plans | Non-U.S. Defined Benefit Plans | Non-U.S. Defined Benefit Plans | Non-U.S. Defined Benefit Plans | Non-U.S. Defined Benefit Plans | Non-U.S. Defined Benefit Plans | Non-U.S. Defined Benefit Plans | Non-U.S. Defined Benefit Plans | Non-U.S. Defined Benefit Plans | Non-U.S. Defined Benefit Plans | Non-U.S. Defined Benefit Plans | Non-U.S. Defined Benefit Plans | Non-U.S. Defined Benefit Plans | Non-U.S. Defined Benefit Plans | Non-U.S. Defined Benefit Plans | Non-U.S. Defined Benefit Plans | Non-U.S. Defined Benefit Plans | Non-U.S. Defined Benefit Plans | Non-U.S. Defined Benefit Plans | Non-U.S. Defined Benefit Plans | Non-U.S. Defined Benefit Plans | Non-U.S. Defined Benefit Plans | Non-U.S. Defined Benefit Plans | Non-U.S. Defined Benefit Plans | Non-U.S. Defined Benefit Plans | Non-U.S. Defined Benefit Plans | Non-U.S. Defined Benefit Plans | Post-Retirement Benefit Plans | Post-Retirement Benefit Plans | Post-Retirement Benefit Plans | Post-Retirement Benefit Plans | Post-Retirement Benefit Plans | Post-Retirement Benefit Plans | Post-Retirement Benefit Plans | Post-Retirement Benefit Plans | Post-Retirement Benefit Plans | Post-Retirement Benefit Plans | Post-Retirement Benefit Plans | Post-Retirement Benefit Plans | Post-Retirement Benefit Plans | Post-Retirement Benefit Plans | Post-Retirement Benefit Plans | Post-Retirement Benefit Plans | Post-Retirement Benefit Plans | Post-Retirement Benefit Plans | Post-Retirement Benefit Plans | Post-Retirement Benefit Plans | Post-Retirement Benefit Plans | Post-Retirement Benefit Plans | Post-Retirement Benefit Plans | Post-Retirement Benefit Plans | Post-Retirement Benefit Plans | Post-Retirement Benefit Plans | Post-Retirement Benefit Plans | Post-Retirement Benefit Plans | Post-Retirement Benefit Plans | Post-Retirement Benefit Plans | |
Fair Value Measured Using Level 3 | Fair Value Measured Using Level 3 | Equity securities | Equity securities | U.S. equity securities | U.S. equity securities | Non U.S. equity securities | Non U.S. equity securities | Debt securities | Debt securities | Corporate debt | Corporate debt | Corporate debt | Corporate debt | Government debt securities | Government debt securities | Private Equity, alternative Investments | Private Equity, alternative Investments | Private Equity, alternative Investments | Private Equity, alternative Investments | Hybrids, alternative investments | Hybrids, alternative investments | Hybrids, alternative investments | Hybrids, alternative investments | Hedge Funds, alternative investments | Hedge Funds, alternative investments | Hedge Funds, alternative investments | Hedge Funds, alternative investments | Public Equities | Public Equities | Real Estate Funds | Real Estate Funds | Cash and Cash Equivalents | Cash and Cash Equivalents | Other | Other | Fair Value Measured Using Level 3 | Fair Value Measured Using Level 3 | Equity securities | Equity securities | U.S. equity securities | U.S. equity securities | U.S. equity securities | Non U.S. equity securities | Non U.S. equity securities | Non U.S. equity securities | Non U.S. equity securities | Debt securities | Debt securities | Corporate debt | Corporate debt | Corporate debt | Government debt securities | Government debt securities | Private Equity, alternative Investments | Private Equity, alternative Investments | Private Equity, alternative Investments | Private Equity, alternative Investments | Hybrids, alternative investments | Hybrids, alternative investments | Hedge Funds, alternative investments | Hedge Funds, alternative investments | Hedge Funds, alternative investments | Hedge Funds, alternative investments | Public Equities | Public Equities | Real Estate Funds | Real Estate Funds | Real Estate Funds | Real Estate Funds | Insurance Group Annuity Contracts | Insurance Group Annuity Contracts | Insurance Group Annuity Contracts | Insurance Group Annuity Contracts | Cash and Cash Equivalents | Cash and Cash Equivalents | Cash and Cash Equivalents | Other | Other | Other | Other | Fair Value Measured Using Level 3 | Fair Value Measured Using Level 3 | Equity securities | Equity securities | Debt securities | Debt securities | Corporate debt | Corporate debt | Government debt securities | Government debt securities | Private Equity, alternative Investments | Private Equity, alternative Investments | Private Equity, alternative Investments | Private Equity, alternative Investments | Hybrids, alternative investments | Hybrids, alternative investments | Hybrids, alternative investments | Hybrids, alternative investments | Hybrids, alternative investments | Public Equities | Public Equities | Real Estate Funds | Real Estate Funds | Cash and Cash Equivalents | Cash and Cash Equivalents | Other | Other | |||||||||
Fair Value Measured Using Level 3 | Fair Value Measured Using Level 3 | Fair Value Measured Using Level 3 | Fair Value Measured Using Level 3 | Fair Value Measured Using Level 3 | Fair Value Measured Using Level 3 | Fair Value Measured Using Level 3 | Fair Value Measured Using Level 3 | Fair Value Measured Using Level 3 | Fair Value Measured Using Level 3 | Fair Value Measured Using Level 3 | Fair Value Measured Using Level 3 | Fair Value Measured Using Level 3 | Fair Value Measured Using Level 3 | Fair Value Measured Using Level 3 | Fair Value Measured Using Level 3 | Fair Value Measured Using Level 3 | Fair Value Measured Using Level 3 | Fair Value Measured Using Level 3 | Fair Value Measured Using Level 3 | Fair Value Measured Using Level 3 | Fair Value Measured Using Level 3 | Fair Value Measured Using Level 3 | Fair Value Measured Using Level 3 | Fair Value Measured Using Level 3 | Fair Value Measured Using Level 3 | Fair Value Measured Using Level 3 | Fair Value Measured Using Level 3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in fair value measurements of Level 3 investments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value - beginning of year | $11,536 | $10,662 | $1,368 | $1,360 | ' | ' | $1,711 | $1,150 | $1,274 | $866 | ' | ' | $3,028 | $3,443 | $1 | ' | $1,849 | $3,037 | $1,250 | $1,303 | $1,300 | $1,356 | $2 | $2 | $4 | $2 | $113 | $65 | $65 | ' | ' | ' | ' | ' | $73 | $42 | ($57) | ($379) | ' | $14,021 | $13,180 | $614 | $656 | ' | ' | $2,487 | $1,649 | $30 | $4,806 | $4,175 | $76 | ' | ' | ' | $3,347 | $2,878 | $3 | $1,751 | $1,653 | $50 | $23 | $21 | $20 | $1,223 | $1,089 | $430 | $529 | $233 | $300 | ' | ' | $1,032 | $820 | $194 | $199 | $131 | $148 | $88 | $89 | $444 | ' | ($4) | $174 | $613 | $19 | $2 | $395 | ' | $394 | $236 | $228 | ' | ' | ' | ' | $17 | $17 | $22 | $22 | $234 | $235 | $235 | $227 | $1 | $1 | $1 | $1 | $1 | ' | ' | ' | ' | $2 | ' | ($2) | ($4) |
Actual return on plan assets: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Relating to assets still held at the reporting date | ' | ' | 4 | -68 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -9 | -67 | ' | ' | -1 | ' | ' | ' | 13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20 | -85 | ' | ' | ' | ' | -2 | ' | ' | 1 | ' | ' | ' | ' | ' | -1 | ' | ' | ' | ' | 8 | -1 | ' | ' | ' | ' | ' | -76 | ' | ' | ' | ' | 16 | -5 | ' | ' | -5 | 1 | ' | ' | ' | ' | ' | -1 | ' | ' | ' | ' | 5 | 13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5 | 13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Relating to assets sold during the period | ' | ' | 143 | 104 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 143 | 103 | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 21 | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 21 | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchases, sales, and settlements (net) | ' | ' | -149 | -28 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | -184 | -92 | ' | ' | -2 | ' | ' | ' | 35 | 65 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 92 | 55 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -2 | ' | ' | ' | ' | 19 | 16 | ' | ' | ' | ' | -40 | ' | ' | ' | ' | ' | 115 | 43 | ' | ' | -2 | -2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -27 | -8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -27 | -8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Settlements | -33 | -31 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -96 | -193 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Transfers in and/or out of Level 3 | ' | ' | -1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -12 | ' | ' | ' | ' | -28 | ' | ' | ' | 76 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -14 | ' | ' | ' | ' | ' | 9 | ' | ' | ' | ' | ' | -43 | ' | ' | ' | ' | ' | ' | 4 | ' | ' | -16 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value - end of year | 10,866 | 11,536 | 1,365 | 1,368 | ' | ' | 1,711 | 1,150 | 1,274 | 866 | ' | ' | 3,028 | 3,443 | ' | 1 | 1,849 | 3,037 | 1,250 | 1,303 | 1,250 | 1,300 | 2 | 2 | 2 | 2 | 113 | 65 | 113 | 65 | ' | ' | ' | ' | 73 | 42 | -57 | -379 | ' | 16,083 | 14,021 | 737 | 614 | ' | ' | 2,487 | 1,649 | ' | 4,806 | 4,175 | 77 | 76 | ' | ' | 3,347 | 2,878 | ' | 1,751 | 1,653 | 50 | 23 | 48 | 21 | 1,223 | 1,089 | 430 | 529 | 204 | 233 | ' | ' | 1,032 | 820 | 325 | 194 | 131 | 148 | 81 | 88 | 652 | ' | ' | 174 | 613 | 2 | 2 | 396 | ' | 394 | 235 | 236 | ' | ' | ' | ' | 17 | 17 | 22 | 22 | 234 | 235 | 234 | 235 | 1 | 1 | 1 | 1 | 1 | ' | ' | ' | ' | 3 | ' | -2 | -4 |
Plan assets target allocation (as a percent) | 100.00% | ' | ' | ' | 55.00% | ' | ' | ' | ' | ' | 45.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | 64.00% | ' | ' | ' | ' | ' | ' | ' | ' | 35.20% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.80% | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | 68.00% | ' | 28.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.00% | ' | ' | ' |
Plan asset actual allocations (as a percent) | 100.00% | 100.00% | ' | ' | 49.30% | 32.30% | ' | ' | ' | ' | 48.20% | 61.50% | ' | ' | ' | ' | ' | ' | 12.60% | 11.90% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 37.20% | 23.70% | -0.50% | -3.30% | 2.50% | 6.20% | ' | ' | ' | 100.00% | 100.00% | ' | ' | 63.40% | 63.40% | ' | ' | ' | ' | ' | ' | ' | 32.50% | 33.40% | ' | ' | ' | ' | ' | 7.90% | 11.70% | ' | ' | ' | ' | ' | ' | ' | ' | 48.00% | 41.50% | 7.50% | 10.20% | ' | ' | ' | ' | ' | ' | 4.10% | 3.20% | ' | ' | ' | ' | ' | 100.00% | 100.00% | ' | ' | ' | 68.60% | 67.30% | 29.00% | 27.90% | ' | ' | ' | ' | 59.20% | 59.60% | ' | ' | ' | ' | ' | ' | ' | 9.50% | 8.60% | -0.10% | -0.90% | 2.40% | 4.80% | ' | ' |
Future Contributions and Funding Policy | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected contribution to defined benefit plans in fiscal 2014 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 33 | 617 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 109 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Future benefits payable for the retirement and post-retirement plans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2014 | 694 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 549 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 146 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2015 | 553 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 538 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 76 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2016 | 573 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 546 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 70 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2017 | 610 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 596 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 67 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2018 | 653 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 636 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 65 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Next five fiscal years to October 31, 2023 | $3,681 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3,960 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $286 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Commitments_Details
Commitments (Details) (USD $) | 12 Months Ended | ||
Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | |
Commitments | ' | ' | ' |
Rent expense | $1,000,000,000 | $1,000,000,000 | $1,000,000,000 |
Sublease rental income | 30,000,000 | 37,000,000 | 38,000,000 |
Property under capital lease | 437,000,000 | 482,000,000 | ' |
Accumulated depreciation on property under capital lease | 404,000,000 | 418,000,000 | ' |
Operating lease commitments, sublease rental income | ' | ' | ' |
Operating lease commitments, 2014 | 763,000,000 | ' | ' |
Operating lease commitments, 2015 | 605,000,000 | ' | ' |
Operating lease commitments, 2016 | 435,000,000 | ' | ' |
Operating lease commitments, 2017 | 275,000,000 | ' | ' |
Operating lease commitments, 2018 | 180,000,000 | ' | ' |
Operating lease commitments, thereafter | 735,000,000 | ' | ' |
Operating lease commitments, total | 2,993,000,000 | ' | ' |
Less: Sublease rental income, 2014 | -35,000,000 | ' | ' |
Less: Sublease rental income, 2015 | -24,000,000 | ' | ' |
Less: Sublease rental income, 2016 | -12,000,000 | ' | ' |
Less: Sublease rental income, 2017 | -5,000,000 | ' | ' |
Less: Sublease rental income, 2018 | -5,000,000 | ' | ' |
Less: Sublease rental income, thereafter | -12,000,000 | ' | ' |
Sublease rental income, total | -93,000,000 | ' | ' |
Operating lease commitments net of sublease rental income, 2014 | 728,000,000 | ' | ' |
Operating lease commitments net of sublease rental income, 2015 | 581,000,000 | ' | ' |
Operating lease commitments net of sublease rental income, 2016 | 423,000,000 | ' | ' |
Operating lease commitments net of sublease rental income, 2017 | 270,000,000 | ' | ' |
Operating lease commitments net of sublease rental income, 2018 | 175,000,000 | ' | ' |
Operating lease commitments net of sublease rental income, thereafter | 723,000,000 | ' | ' |
Operating lease commitments net of sublease rental income, total | 2,900,000,000 | ' | ' |
Capital lease commitments | ' | ' | ' |
Capital lease commitments, 2014 | 229,000,000 | ' | ' |
Capital lease commitments, 2015 | 20,000,000 | ' | ' |
Capital lease commitments, 2016 | 7,000,000 | ' | ' |
Capital lease commitments, 2017 | 4,000,000 | ' | ' |
Capital lease commitments, 2018 | 4,000,000 | ' | ' |
Capital lease commitments, thereafter | 25,000,000 | ' | ' |
Capital lease commitments, total | 289,000,000 | ' | ' |
Less: Interest payments, 2014 | -5,000,000 | ' | ' |
Less: Interest payments, 2015 | -3,000,000 | ' | ' |
Less: Interest payments, 2016 | -2,000,000 | ' | ' |
Less: Interest payments, 2017 | -2,000,000 | ' | ' |
Less: Interest payments, 2018 | -2,000,000 | ' | ' |
Less Interest payments, thereafter | -6,000,000 | ' | ' |
Interest payments, total | -20,000,000 | ' | ' |
Capital lease commitments, net of interest payment, 2014 | 224,000,000 | ' | ' |
Capital lease commitments, net of interest payment, 2015 | 17,000,000 | ' | ' |
Capital lease commitments, net of interest payment, 2016 | 5,000,000 | ' | ' |
Capital lease commitments, net of interest payment, 2017 | 2,000,000 | ' | ' |
Capital lease commitments, net of interest payment, 2018 | 2,000,000 | ' | ' |
Capital lease commitments, net of interest payment, thereafter | 19,000,000 | ' | ' |
Capital lease commitments, net of interest payment, total | 269,000,000 | ' | ' |
Unconditional purchase obligations details | ' | ' | ' |
Unconditional purchase obligations, 2014 | 1,191,000,000 | ' | ' |
Unconditional purchase obligations, 2015 | 510,000,000 | ' | ' |
Unconditional purchase obligations, 2016 | 196,000,000 | ' | ' |
Unconditional purchase obligations, 2017 | 141,000,000 | ' | ' |
Unconditional purchase obligations, 2018 | 128,000,000 | ' | ' |
Unconditional purchase obligations, total | 2,166,000,000 | ' | ' |
Unconditional purchase obligations | $2,200,000,000 | ' | ' |
Litigation_and_Contingencies_D
Litigation and Contingencies (Details) | 0 Months Ended | 1 Months Ended | 0 Months Ended | 12 Months Ended | 72 Months Ended | 12 Months Ended | 1 Months Ended | 9 Months Ended | 3 Months Ended | ||||||||||
Dec. 23, 2004 | Oct. 31, 2013 | Dec. 14, 2010 | Oct. 31, 2012 | Nov. 30, 2012 | 10-May-10 | Apr. 29, 2010 | Jan. 24, 2013 | Dec. 11, 2012 | Apr. 21, 2012 | Apr. 20, 2012 | Apr. 11, 2012 | Oct. 31, 2013 | Oct. 31, 2006 | Oct. 31, 2013 | Jul. 31, 2011 | Jul. 31, 2013 | Jul. 31, 2013 | Oct. 31, 2012 | |
USD ($) | Fair Labor Standards Act Litigation | State of South Carolina Department of Social Services Contract Dispute | State of South Carolina Department of Social Services Contract Dispute | India Directorate of Revenue Intelligence Proceedings | India Directorate of Revenue Intelligence Proceedings | Bangalore Commissioner of Customs | Bangalore Commissioner of Customs | Bangalore Commissioner of Customs | Bangalore Commissioner of Customs | Bangalore Commissioner of Customs | Russia GPO and Other FCPA Investigations | Russia GPO and Other FCPA Investigations | Russia GPO and Other FCPA Investigations | ECT Proceedings | ECT Proceedings | ECT Proceedings | Autonomy-Related Legal Matters | ||
employee | USD ($) | Minimum | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | EUR (€) | Maximum | Minimum | Maximum | Software | ||||
code | USD ($) | USD ($) | USD ($) | ||||||||||||||||
Copyright Levies | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum possible additional material loss | ' | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Levy assessed on a specific vendor on personal computers sold since March 2001 in Germany (euros per unit) | 12 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Litigation and Contingencies | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Copyright levies payable on sales of MFDs in Belgium | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of job codes | ' | ' | 20 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of employees filed consent to opt-in to litigation | ' | ' | 2,600 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate damages sought | ' | ' | ' | 275,000,000 | ' | 370,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of payment to be made for past-due invoices by plaintiff | ' | ' | ' | ' | 12,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss contingency deposit to prevent interruption of business | ' | ' | ' | ' | ' | ' | 16,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Duties and penalties under show cause notices | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 17,000,000 | 386,000,000 | ' | ' | ' | ' | ' | ' | ' |
Amount deposited under show cause notice prior to order | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,000,000 | 9,000,000 | ' | ' | ' | ' | ' | ' | ' |
Additional amount deposited against products-related show cause notice | ' | ' | ' | ' | ' | ' | ' | ' | 10,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional amount deposited against parts-related show cause notice | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional amount deposited against product order | ' | ' | ' | ' | ' | ' | ' | 24,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Transaction of former subsidiary under investigation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35,000,000 | ' | ' | ' | ' | ' |
Civil penalties per violation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 725,000 | ' | ' | ' | ' |
Criminal penalties per violation, specific value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25,000,000 | ' | ' | ' | ' | ' | ' |
ETC Proceedings, period to suspend right to bid and contract | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' |
Length of sanctions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | '5 years | ' |
Impairment of goodwill and intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $8,800,000,000 |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
segment | segment | |||
Segment Information | ' | ' | ' | ' |
Number of business segments | ' | 7 | ' | ' |
Number of new reporting segments | 2 | 2 | ' | ' |
Number of reporting segments eliminated | 2 | 2 | ' | ' |
Segment Reporting Information | ' | ' | ' | ' |
Net revenue | ' | $112,298 | $120,357 | $127,245 |
Earnings (loss) from operations | ' | 7,131 | -11,057 | 9,677 |
Eliminations of inter-segment net revenue and other | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' |
Net revenue | ' | -2,896 | -3,180 | -3,442 |
Operating segments | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' |
Net revenue | ' | 115,194 | 123,537 | 130,687 |
Earnings (loss) from operations | ' | 10,848 | 12,495 | 13,928 |
Enterprise Group | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' |
Net revenue | ' | 27,303 | 28,628 | 30,135 |
Enterprise Group | Eliminations of inter-segment net revenue and other | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' |
Net revenue | ' | -880 | -1,151 | -1,325 |
Enterprise Group | Operating segments | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' |
Net revenue | ' | 28,183 | 29,779 | 31,460 |
Earnings (loss) from operations | ' | 4,301 | 5,194 | 6,265 |
Enterprise Services | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' |
Net revenue | ' | 23,041 | 25,091 | 25,938 |
Enterprise Services | Eliminations of inter-segment net revenue and other | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' |
Net revenue | ' | -479 | -518 | -330 |
Enterprise Services | Operating segments | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' |
Net revenue | ' | 23,520 | 25,609 | 26,268 |
Earnings (loss) from operations | ' | 679 | 1,045 | 1,972 |
Software | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' |
Net revenue | ' | 3,593 | 3,757 | 3,128 |
Software | Eliminations of inter-segment net revenue and other | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' |
Net revenue | ' | -320 | -303 | -239 |
Software | Operating segments | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' |
Net revenue | ' | 3,913 | 4,060 | 3,367 |
Earnings (loss) from operations | ' | 866 | 827 | 722 |
HP Financial Services | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' |
Net revenue | ' | 3,570 | 3,784 | 3,568 |
HP Financial Services | Eliminations of inter-segment net revenue and other | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' |
Net revenue | ' | -59 | -35 | -28 |
HP Financial Services | Operating segments | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' |
Net revenue | ' | 3,629 | 3,819 | 3,596 |
Earnings (loss) from operations | ' | 399 | 388 | 348 |
Corporate Investments | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' |
Net revenue | ' | 24 | 57 | 154 |
Corporate Investments | Eliminations of inter-segment net revenue and other | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' |
Net revenue | ' | ' | -1 | -12 |
Corporate Investments | Operating segments | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' |
Net revenue | ' | 24 | 58 | 166 |
Earnings (loss) from operations | ' | -236 | -233 | -1,633 |
Printing and Personal Systems Group | Operating segments | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' |
Net revenue | ' | 55,925 | 60,212 | 65,830 |
Printing and Personal Systems Group | Personal Systems | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' |
Net revenue | ' | 31,124 | 34,774 | 38,448 |
Printing and Personal Systems Group | Personal Systems | Eliminations of inter-segment net revenue and other | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' |
Net revenue | ' | -947 | -951 | -1,206 |
Printing and Personal Systems Group | Personal Systems | Operating segments | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' |
Net revenue | ' | 32,071 | 35,725 | 39,654 |
Earnings (loss) from operations | ' | 949 | 1,689 | 2,327 |
Printing and Personal Systems Group | Printing | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' |
Net revenue | ' | 23,643 | 24,266 | 25,874 |
Printing and Personal Systems Group | Printing | Eliminations of inter-segment net revenue and other | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' |
Net revenue | ' | -211 | -221 | -302 |
Printing and Personal Systems Group | Printing | Operating segments | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' |
Net revenue | ' | 23,854 | 24,487 | 26,176 |
Earnings (loss) from operations | ' | $3,890 | $3,585 | $3,927 |
Segment_Information_Details_2
Segment Information (Details 2) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Segment Reporting Information | ' | ' | ' |
Net revenue | $112,298 | $120,357 | $127,245 |
Earnings (loss) from operations | 7,131 | -11,057 | 9,677 |
Unallocated costs related to stock-based compensation expense | -500 | -635 | -685 |
Amortization of intangible assets | -1,373 | -1,784 | -1,607 |
Impairment of goodwill and intangible assets | ' | -18,035 | -885 |
Restructuring charges | -990 | -2,266 | -645 |
Interest and other, net | -621 | -876 | -695 |
Earnings (loss) before taxes | 6,510 | -11,933 | 8,982 |
Assets | 105,676 | 108,768 | 129,517 |
Enterprise Group | ' | ' | ' |
Segment Reporting Information | ' | ' | ' |
Net revenue | 27,303 | 28,628 | 30,135 |
Enterprise Services | ' | ' | ' |
Segment Reporting Information | ' | ' | ' |
Net revenue | 23,041 | 25,091 | 25,938 |
Software | ' | ' | ' |
Segment Reporting Information | ' | ' | ' |
Net revenue | 3,593 | 3,757 | 3,128 |
HP Financial Services | ' | ' | ' |
Segment Reporting Information | ' | ' | ' |
Net revenue | 3,570 | 3,784 | 3,568 |
Corporate Investments | ' | ' | ' |
Segment Reporting Information | ' | ' | ' |
Net revenue | 24 | 57 | 154 |
Printing and Personal Systems Group | Personal Systems | ' | ' | ' |
Segment Reporting Information | ' | ' | ' |
Net revenue | 31,124 | 34,774 | 38,448 |
Printing and Personal Systems Group | Printing | ' | ' | ' |
Segment Reporting Information | ' | ' | ' |
Net revenue | 23,643 | 24,266 | 25,874 |
Operating segments | ' | ' | ' |
Segment Reporting Information | ' | ' | ' |
Net revenue | 115,194 | 123,537 | 130,687 |
Earnings (loss) from operations | 10,848 | 12,495 | 13,928 |
Operating segments | Enterprise Group | ' | ' | ' |
Segment Reporting Information | ' | ' | ' |
Net revenue | 28,183 | 29,779 | 31,460 |
Earnings (loss) from operations | 4,301 | 5,194 | 6,265 |
Assets | 30,858 | 30,851 | 32,388 |
Operating segments | Enterprise Services | ' | ' | ' |
Segment Reporting Information | ' | ' | ' |
Net revenue | 23,520 | 25,609 | 26,268 |
Earnings (loss) from operations | 679 | 1,045 | 1,972 |
Assets | 15,229 | 16,383 | 25,765 |
Operating segments | Software | ' | ' | ' |
Segment Reporting Information | ' | ' | ' |
Net revenue | 3,913 | 4,060 | 3,367 |
Earnings (loss) from operations | 866 | 827 | 722 |
Assets | 11,868 | 12,264 | 21,028 |
Operating segments | HP Financial Services | ' | ' | ' |
Segment Reporting Information | ' | ' | ' |
Net revenue | 3,629 | 3,819 | 3,596 |
Earnings (loss) from operations | 399 | 388 | 348 |
Assets | 12,011 | 12,924 | 13,543 |
Operating segments | Corporate Investments | ' | ' | ' |
Segment Reporting Information | ' | ' | ' |
Net revenue | 24 | 58 | 166 |
Earnings (loss) from operations | -236 | -233 | -1,633 |
Assets | 123 | 248 | 517 |
Operating segments | Printing and Personal Systems Group | ' | ' | ' |
Segment Reporting Information | ' | ' | ' |
Net revenue | 55,925 | 60,212 | 65,830 |
Assets | 22,575 | 23,921 | 27,720 |
Operating segments | Printing and Personal Systems Group | Personal Systems | ' | ' | ' |
Segment Reporting Information | ' | ' | ' |
Net revenue | 32,071 | 35,725 | 39,654 |
Earnings (loss) from operations | 949 | 1,689 | 2,327 |
Assets | 11,870 | 12,752 | 15,781 |
Operating segments | Printing and Personal Systems Group | Printing | ' | ' | ' |
Segment Reporting Information | ' | ' | ' |
Net revenue | 23,854 | 24,487 | 26,176 |
Earnings (loss) from operations | 3,890 | 3,585 | 3,927 |
Assets | 10,705 | 11,169 | 11,939 |
Eliminations of inter-segment net revenue and other | ' | ' | ' |
Segment Reporting Information | ' | ' | ' |
Net revenue | -2,896 | -3,180 | -3,442 |
Eliminations of inter-segment net revenue and other | Enterprise Group | ' | ' | ' |
Segment Reporting Information | ' | ' | ' |
Net revenue | -880 | -1,151 | -1,325 |
Eliminations of inter-segment net revenue and other | Enterprise Services | ' | ' | ' |
Segment Reporting Information | ' | ' | ' |
Net revenue | -479 | -518 | -330 |
Eliminations of inter-segment net revenue and other | Software | ' | ' | ' |
Segment Reporting Information | ' | ' | ' |
Net revenue | -320 | -303 | -239 |
Eliminations of inter-segment net revenue and other | HP Financial Services | ' | ' | ' |
Segment Reporting Information | ' | ' | ' |
Net revenue | -59 | -35 | -28 |
Eliminations of inter-segment net revenue and other | Corporate Investments | ' | ' | ' |
Segment Reporting Information | ' | ' | ' |
Net revenue | ' | -1 | -12 |
Eliminations of inter-segment net revenue and other | Printing and Personal Systems Group | Personal Systems | ' | ' | ' |
Segment Reporting Information | ' | ' | ' |
Net revenue | -947 | -951 | -1,206 |
Eliminations of inter-segment net revenue and other | Printing and Personal Systems Group | Printing | ' | ' | ' |
Segment Reporting Information | ' | ' | ' |
Net revenue | -211 | -221 | -302 |
Significant Reconciling Items | ' | ' | ' |
Segment Reporting Information | ' | ' | ' |
Corporate and unallocated costs and eliminations | -832 | -787 | -314 |
Unallocated costs related to stock-based compensation expense | -500 | -635 | -618 |
Amortization of intangible assets | -1,373 | -1,784 | -1,607 |
Impairment of goodwill and intangible assets | ' | -18,035 | -885 |
Restructuring charges | -990 | -2,266 | -645 |
Acquisition-related charges | -22 | -45 | -182 |
Interest and other, net | -621 | -876 | -695 |
Corporate and unallocated assets | ' | ' | ' |
Segment Reporting Information | ' | ' | ' |
Assets | $13,012 | $12,177 | $8,556 |
Segment_Information_Details_3
Segment Information (Details 3) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Segment Reporting Information | ' | ' | ' |
Net revenue | $112,298 | $120,357 | $127,245 |
Net property, plant and equipment: | ' | ' | ' |
Property, plant and equipment | 11,463 | 11,954 | 12,292 |
U.S. | ' | ' | ' |
Segment Reporting Information | ' | ' | ' |
Net revenue | 40,284 | 42,140 | 44,111 |
Net property, plant and equipment: | ' | ' | ' |
Property, plant and equipment | 5,546 | 5,894 | 6,126 |
Non-U.S. | ' | ' | ' |
Segment Reporting Information | ' | ' | ' |
Net revenue | 72,014 | 78,217 | 83,134 |
U.K | ' | ' | ' |
Net property, plant and equipment: | ' | ' | ' |
Property, plant and equipment | 1,090 | 1,195 | 1,195 |
Other countries | ' | ' | ' |
Net property, plant and equipment: | ' | ' | ' |
Property, plant and equipment | $4,827 | $4,865 | $4,971 |
Segment_Information_Details_4
Segment Information (Details 4) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Segment Reporting Information | ' | ' | ' |
Net revenue | $112,298 | $120,357 | $127,245 |
Operating segments | ' | ' | ' |
Segment Reporting Information | ' | ' | ' |
Net revenue | 115,194 | 123,537 | 130,687 |
Eliminations of inter-segment net revenue and other | ' | ' | ' |
Segment Reporting Information | ' | ' | ' |
Net revenue | -2,896 | -3,180 | -3,442 |
Enterprise Group | ' | ' | ' |
Segment Reporting Information | ' | ' | ' |
Net revenue | 27,303 | 28,628 | 30,135 |
Enterprise Group | Operating segments | ' | ' | ' |
Segment Reporting Information | ' | ' | ' |
Net revenue | 28,183 | 29,779 | 31,460 |
Enterprise Group | Operating segments | Industry Standard Servers | ' | ' | ' |
Segment Reporting Information | ' | ' | ' |
Net revenue | 12,102 | 12,582 | 13,521 |
Enterprise Group | Operating segments | Technology Services | ' | ' | ' |
Segment Reporting Information | ' | ' | ' |
Net revenue | 8,890 | 9,288 | 9,396 |
Enterprise Group | Operating segments | Storage | ' | ' | ' |
Segment Reporting Information | ' | ' | ' |
Net revenue | 3,475 | 3,815 | 4,056 |
Enterprise Group | Operating segments | Networking | ' | ' | ' |
Segment Reporting Information | ' | ' | ' |
Net revenue | 2,526 | 2,482 | 2,392 |
Enterprise Group | Operating segments | Business Critical Systems | ' | ' | ' |
Segment Reporting Information | ' | ' | ' |
Net revenue | 1,190 | 1,612 | 2,095 |
Enterprise Group | Eliminations of inter-segment net revenue and other | ' | ' | ' |
Segment Reporting Information | ' | ' | ' |
Net revenue | -880 | -1,151 | -1,325 |
Enterprise Services | ' | ' | ' |
Segment Reporting Information | ' | ' | ' |
Net revenue | 23,041 | 25,091 | 25,938 |
Enterprise Services | Operating segments | ' | ' | ' |
Segment Reporting Information | ' | ' | ' |
Net revenue | 23,520 | 25,609 | 26,268 |
Enterprise Services | Operating segments | Infrastructure Technology Outsourcing | ' | ' | ' |
Segment Reporting Information | ' | ' | ' |
Net revenue | 14,682 | 15,792 | 16,290 |
Enterprise Services | Operating segments | Application and Business Services | ' | ' | ' |
Segment Reporting Information | ' | ' | ' |
Net revenue | 8,838 | 9,817 | 9,978 |
Enterprise Services | Eliminations of inter-segment net revenue and other | ' | ' | ' |
Segment Reporting Information | ' | ' | ' |
Net revenue | -479 | -518 | -330 |
Software | ' | ' | ' |
Segment Reporting Information | ' | ' | ' |
Net revenue | 3,593 | 3,757 | 3,128 |
Software | Operating segments | ' | ' | ' |
Segment Reporting Information | ' | ' | ' |
Net revenue | 3,913 | 4,060 | 3,367 |
Software | Eliminations of inter-segment net revenue and other | ' | ' | ' |
Segment Reporting Information | ' | ' | ' |
Net revenue | -320 | -303 | -239 |
HP Financial Services | ' | ' | ' |
Segment Reporting Information | ' | ' | ' |
Net revenue | 3,570 | 3,784 | 3,568 |
HP Financial Services | Operating segments | ' | ' | ' |
Segment Reporting Information | ' | ' | ' |
Net revenue | 3,629 | 3,819 | 3,596 |
HP Financial Services | Eliminations of inter-segment net revenue and other | ' | ' | ' |
Segment Reporting Information | ' | ' | ' |
Net revenue | -59 | -35 | -28 |
Corporate Investments | ' | ' | ' |
Segment Reporting Information | ' | ' | ' |
Net revenue | 24 | 57 | 154 |
Corporate Investments | Operating segments | ' | ' | ' |
Segment Reporting Information | ' | ' | ' |
Net revenue | 24 | 58 | 166 |
Corporate Investments | Eliminations of inter-segment net revenue and other | ' | ' | ' |
Segment Reporting Information | ' | ' | ' |
Net revenue | ' | -1 | -12 |
Printing and Personal Systems Group | Operating segments | ' | ' | ' |
Segment Reporting Information | ' | ' | ' |
Net revenue | 55,925 | 60,212 | 65,830 |
Printing and Personal Systems Group | Personal Systems | ' | ' | ' |
Segment Reporting Information | ' | ' | ' |
Net revenue | 31,124 | 34,774 | 38,448 |
Printing and Personal Systems Group | Personal Systems | Operating segments | ' | ' | ' |
Segment Reporting Information | ' | ' | ' |
Net revenue | 32,071 | 35,725 | 39,654 |
Printing and Personal Systems Group | Personal Systems | Operating segments | Notebooks | ' | ' | ' |
Segment Reporting Information | ' | ' | ' |
Net revenue | 16,029 | 18,830 | 21,319 |
Printing and Personal Systems Group | Personal Systems | Operating segments | Desktops | ' | ' | ' |
Segment Reporting Information | ' | ' | ' |
Net revenue | 12,844 | 13,888 | 15,260 |
Printing and Personal Systems Group | Personal Systems | Operating segments | Workstations | ' | ' | ' |
Segment Reporting Information | ' | ' | ' |
Net revenue | 2,147 | 2,148 | 2,216 |
Printing and Personal Systems Group | Personal Systems | Operating segments | Other | ' | ' | ' |
Segment Reporting Information | ' | ' | ' |
Net revenue | 1,051 | 859 | 859 |
Printing and Personal Systems Group | Personal Systems | Eliminations of inter-segment net revenue and other | ' | ' | ' |
Segment Reporting Information | ' | ' | ' |
Net revenue | -947 | -951 | -1,206 |
Printing and Personal Systems Group | Printing | ' | ' | ' |
Segment Reporting Information | ' | ' | ' |
Net revenue | 23,643 | 24,266 | 25,874 |
Printing and Personal Systems Group | Printing | Operating segments | ' | ' | ' |
Segment Reporting Information | ' | ' | ' |
Net revenue | 23,854 | 24,487 | 26,176 |
Printing and Personal Systems Group | Printing | Operating segments | Supplies | ' | ' | ' |
Segment Reporting Information | ' | ' | ' |
Net revenue | 15,716 | 16,151 | 17,154 |
Printing and Personal Systems Group | Printing | Operating segments | Commercial Hardware | ' | ' | ' |
Segment Reporting Information | ' | ' | ' |
Net revenue | 5,702 | 5,895 | 6,183 |
Printing and Personal Systems Group | Printing | Operating segments | Consumer Hardware | ' | ' | ' |
Segment Reporting Information | ' | ' | ' |
Net revenue | 2,436 | 2,441 | 2,839 |
Printing and Personal Systems Group | Printing | Eliminations of inter-segment net revenue and other | ' | ' | ' |
Segment Reporting Information | ' | ' | ' |
Net revenue | ($211) | ($221) | ($302) |