Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Oct. 31, 2014 | Nov. 30, 2014 | Apr. 30, 2014 | |
Document and Entity Information | |||
Entity Registrant Name | HEWLETT PACKARD CO | ||
Entity Central Index Key | 47217 | ||
Document Type | 10-K | ||
Document Period End Date | 31-Oct-14 | ||
Amendment Flag | FALSE | ||
Current Fiscal Year End Date | -21 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $61,031,111,812 | ||
Entity Common Stock, Shares Outstanding | 1,834,081,993 | ||
Document Fiscal Year Focus | 2014 | ||
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, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Net revenue: | |||
Products | $73,726 | $72,398 | $77,887 |
Services | 37,327 | 39,453 | 42,008 |
Financing income | 401 | 447 | 462 |
Total net revenue | 111,454 | 112,298 | 120,357 |
Costs and expenses: | |||
Cost of products | 56,469 | 55,632 | 59,468 |
Cost of services | 28,093 | 30,436 | 32,600 |
Financing interest | 277 | 312 | 317 |
Research and development | 3,447 | 3,135 | 3,399 |
Selling, general and administrative | 13,353 | 13,267 | 13,500 |
Amortization of intangible assets | 1,000 | 1,373 | 1,784 |
Impairment of goodwill and intangible assets | 18,035 | ||
Restructuring charges | 1,619 | 990 | 2,266 |
Acquisition-related charges | 11 | 22 | 45 |
Total operating expenses | 104,269 | 105,167 | 131,414 |
Earnings (loss) from operations | 7,185 | 7,131 | -11,057 |
Interest and other, net | -628 | -621 | -876 |
Earnings (loss) before taxes | 6,557 | 6,510 | -11,933 |
Provision for taxes | -1,544 | -1,397 | -717 |
Net earnings (loss) | $5,013 | $5,113 | ($12,650) |
Net earnings (loss) per share: | |||
Basic (in dollars per share) | $2.66 | $2.64 | ($6.41) |
Diluted (in dollars per share) | $2.62 | $2.62 | ($6.41) |
Weighted-average shares used to compute net earnings (loss) per share: | |||
Basic (in shares) | 1,882 | 1,934 | 1,974 |
Diluted (in shares) | 1,912 | 1,950 | 1,974 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Consolidated Statements of Comprehensive Income | |||
Net earnings (loss) | $5,013 | $5,113 | ($12,650) |
Change in unrealized gains on available-for-sale securities: | |||
Unrealized gains arising during the period | 7 | 52 | 25 |
Gains reclassified into earnings | -1 | -49 | |
Change in unrealized gains on available-for-sale securities | 6 | 3 | 25 |
Change in unrealized gains (losses) on cash flow hedges: | |||
Unrealized gains (losses) arising during the period | 337 | -243 | 335 |
Losses (gains) reclassified into earnings | 151 | 106 | -399 |
Change in unrealized gains (losses) on cash flow hedges | 488 | -137 | -64 |
Change in unrealized components of defined benefit plans: | |||
(Losses) gains arising during the period | -2,756 | 1,953 | -2,457 |
Amortization of actuarial loss and prior service benefit | 259 | 326 | 172 |
Curtailments, settlements and other | 51 | 25 | 122 |
Change in unrealized components of defined benefit plans | -2,446 | 2,304 | -2,163 |
Change in cumulative translation adjustment | -85 | -150 | -47 |
Other comprehensive (loss) income before taxes | -2,037 | 2,020 | -2,249 |
(Provision) benefit for taxes | -66 | -239 | 188 |
Other comprehensive (loss) income, net of taxes | -2,103 | 1,781 | -2,061 |
Comprehensive income (loss) | $2,910 | $6,894 | ($14,711) |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Oct. 31, 2014 | Oct. 31, 2013 |
In Millions, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $15,133 | $12,163 |
Accounts receivable | 13,832 | 15,876 |
Financing receivables | 2,946 | 3,144 |
Inventory | 6,415 | 6,046 |
Other current assets | 11,819 | 13,135 |
Total current assets | 50,145 | 50,364 |
Property, plant and equipment | 11,340 | 11,463 |
Long-term financing receivables and other assets | 8,454 | 9,556 |
Goodwill | 31,139 | 31,124 |
Intangible assets | 2,128 | 3,169 |
Total assets | 103,206 | 105,676 |
Current liabilities: | ||
Notes payable and short-term borrowings | 3,486 | 5,979 |
Accounts payable | 15,903 | 14,019 |
Employee compensation and benefits | 4,209 | 4,436 |
Taxes on earnings | 1,017 | 1,203 |
Deferred revenue | 6,143 | 6,477 |
Accrued restructuring | 898 | 901 |
Other accrued liabilities | 12,079 | 12,506 |
Total current liabilities | 43,735 | 45,521 |
Long-term debt | 16,039 | 16,608 |
Other liabilities | 16,305 | 15,891 |
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; 1,839 and 1,908 shares issued and outstanding at October 31, 2014 and October 31, 2013, respectively) | 18 | 19 |
Additional paid-in capital | 3,430 | 5,465 |
Retained earnings | 29,164 | 25,563 |
Accumulated other comprehensive loss | -5,881 | -3,778 |
Total HP stockholders' equity | 26,731 | 27,269 |
Non-controlling interests | 396 | 387 |
Total stockholders' equity | 27,127 | 27,656 |
Total liabilities and stockholders' equity | $103,206 | $105,676 |
Consolidated_Condensed_Balance
Consolidated Condensed Balance Sheets (Parenthetical) (USD $) | Oct. 31, 2014 | Oct. 31, 2013 |
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 | 1,839 | 1,908 |
Common stock, shares outstanding | 1,839 | 1,908 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Cash flows from operating activities: | |||
Net earnings (loss) | $5,013 | $5,113 | ($12,650) |
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 4,334 | 4,611 | 5,095 |
Impairment of goodwill and intangible assets | 18,035 | ||
Stock-based compensation expense | 560 | 500 | 635 |
Provision for doubtful accounts | 55 | 61 | 142 |
Provision for inventory | 211 | 275 | 277 |
Restructuring charges | 1,619 | 990 | 2,266 |
Deferred taxes on earnings | -34 | -410 | -711 |
Excess tax benefit from stock-based compensation | -58 | -2 | -12 |
Other, net | 81 | 443 | 265 |
Changes in operating assets and liabilities (net of acquisitions): | |||
Accounts receivable | 2,017 | 530 | 1,687 |
Financing receivables | 420 | 484 | -418 |
Inventory | -580 | -4 | 890 |
Accounts payable | 1,912 | 541 | -1,414 |
Taxes on earnings | 310 | 417 | -320 |
Restructuring | -1,506 | -904 | -840 |
Other assets and liabilities | -2,021 | -1,037 | -2,356 |
Net cash provided by operating activities | 12,333 | 11,608 | 10,571 |
Cash flows from investing activities: | |||
Investment in property, plant and equipment | -3,853 | -3,199 | -3,706 |
Proceeds from sale of property, plant and equipment | 843 | 653 | 617 |
Purchases of available-for-sale securities and other investments | -1,086 | -1,243 | -972 |
Maturities and sales of available-for-sale securities and other investments | 1,347 | 1,153 | 662 |
Payments made in connection with business acquisitions, net of cash acquired | -49 | -167 | -141 |
Proceeds from business divestiture, net | 6 | 87 | |
Net cash used in investing activities | -2,792 | -2,803 | -3,453 |
Cash flows from financing activities: | |||
Short-term borrowings with original maturities less than 90 days, net | 148 | -154 | -2,775 |
Issuance of debt | 2,875 | 279 | 5,154 |
Payment of debt | -6,037 | -5,721 | -4,333 |
Issuance of common stock under employee stock plans | 297 | 288 | 716 |
Repurchase of common stock | -2,728 | -1,532 | -1,619 |
Excess tax benefit from stock-based compensation | 58 | 2 | 12 |
Cash dividends paid | -1,184 | -1,105 | -1,015 |
Net cash used in financing activities | -6,571 | -7,943 | -3,860 |
Increase in cash and cash equivalents | 2,970 | 862 | 3,258 |
Cash and cash equivalents at beginning of period | 12,163 | 11,301 | 8,043 |
Cash and cash equivalents at end of period | 15,133 | 12,163 | 11,301 |
Supplemental cash flow disclosures: | |||
Income taxes paid (net of refunds) | 1,267 | 1,391 | 1,750 |
Interest expense paid | 678 | 837 | 856 |
Supplemental schedule of non-cash investing and financing activities: | |||
Purchase of assets under capital leases | $113 | $3 | $12 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Total HP Stockholders' Equity | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Non-controlling Interests | Total |
In Millions, except Share data in Thousands, unless otherwise specified | |||||||
Balance at Oct. 31, 2011 | $38,625 | $20 | $6,837 | $35,266 | ($3,498) | $379 | $39,004 |
Balance (in shares) at Oct. 31, 2011 | 1,990,506 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net earnings (loss) | -12,650 | -12,650 | -12,650 | ||||
Other comprehensive income (loss) | -2,061 | -2,061 | -2,061 | ||||
Comprehensive income (loss) | -14,711 | -14,711 | |||||
Issuance of common stock in connection with employee stock plans and other | 683 | 682 | 1 | 683 | |||
Issuance of common stock in connection with employee stock plans and other (in shares) | 39,068 | ||||||
Repurchases of common stock | -1,626 | -1,525 | -101 | -1,626 | |||
Repurchases of common stock (in shares) | -66,736 | -67,000 | |||||
Tax 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 | 22,436 | 20 | 6,454 | 21,521 | -5,559 | 397 | 22,833 |
Balance (in shares) at Oct. 31, 2012 | 1,962,838 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net earnings (loss) | 5,113 | 5,113 | 5,113 | ||||
Other comprehensive income (loss) | 1,781 | 1,781 | 1,781 | ||||
Comprehensive income (loss) | 6,894 | 6,894 | |||||
Issuance of common stock in connection with employee stock plans and other | 208 | 210 | -2 | 208 | |||
Issuance of common stock in connection with employee stock plans and other (in shares) | 22,950 | ||||||
Repurchases of common stock | -1,546 | -1 | -1,550 | 5 | -1,546 | ||
Repurchases of common stock (in shares) | -77,905 | -77,000 | |||||
Tax 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 | 27,269 | 19 | 5,465 | 25,563 | -3,778 | 387 | 27,656 |
Balance (in shares) at Oct. 31, 2013 | 1,907,883 | 1,908,000 | |||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net earnings (loss) | 5,013 | 5,013 | 5,013 | ||||
Other comprehensive income (loss) | -2,103 | -2,103 | -2,103 | ||||
Comprehensive income (loss) | 2,910 | 2,910 | |||||
Issuance of common stock in connection with employee stock plans and other | 143 | 142 | 1 | 143 | |||
Issuance of common stock in connection with employee stock plans and other (in shares) | 23,785 | ||||||
Repurchases of common stock | -2,957 | -1 | -2,694 | -262 | -2,957 | ||
Repurchases of common stock (in shares) | -92,380 | -92,000 | |||||
Tax deficiency from employee stock plans | -43 | -43 | -43 | ||||
Cash dividends declared | -1,151 | -1,151 | -1,151 | ||||
Stock-based compensation expense | 560 | 560 | 560 | ||||
Changes in non-controlling interest | 9 | 9 | |||||
Balance at Oct. 31, 2014 | $26,731 | $18 | $3,430 | $29,164 | ($5,881) | $396 | $27,127 |
Balance (in shares) at Oct. 31, 2014 | 1,839,288 | 1,839,000 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended |
Oct. 31, 2014 | |
Basis of Presentation | |
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 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 intercompany accounts and transactions. | |
Reclassifications | |
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 ("EPS"). See Note 2 for a further discussion of HP's segment reorganization. | |
Use of Estimates | |
The preparation of financial statements in accordance with United States ("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. | |
Foreign Currency Translation | |
HP predominately uses the U.S. dollar as its functional currency. Assets and liabilities denominated in non-U.S. dollars are remeasured into U.S. dollars at current exchange rates for monetary assets and liabilities and at historical exchange rates for nonmonetary assets and liabilities. Net revenue, costs and expenses denominated in non-U.S. dollars are recorded in U.S. dollars at monthly average exchange rates prevailing during the period. HP includes gains or losses from foreign currency remeasurement in Interest and other, net in the Consolidated Statements of Earnings. Certain 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 date as translation adjustments and includes them as a component of Accumulated other comprehensive loss in the Consolidated Balance Sheets. | |
Accounting Pronouncements | |
In May 2014, the Financial Accounting Standards Board ("FASB") amended the existing accounting standards for revenue recognition. The amendments are based on the principle that revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. HP is required to adopt the amendments in the first quarter of fiscal 2018. Early adoption is not permitted. The amendments may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of initial application. HP is currently evaluating the impact of these amendments and the transition alternatives on its Consolidated Financial Statements. | |
In April 2014, the FASB issued guidance which changes the criteria for identifying a discontinued operation. The guidance limits the definition of a discontinued operation to the disposal of a component or group of components that is disposed of or is classified as held for sale and represents a strategic shift that has, or will have, a major effect on an entity's operations and financial results. HP is required to adopt the guidance in the first quarter of fiscal 2016, with early adoption permitted for transactions that have not been reported in financial statements previously issued. | |
In July 2013, the FASB issued a new accounting standard requiring 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 is required to adopt this new standard on a prospective basis in the first quarter of fiscal 2015; however, early adoption is permitted as is retrospective application. HP will adopt the new standard in the first fiscal quarter of 2015 on a prospective basis. Adoption of the new standard is not expected to have a material effect on HP's Consolidated Financial Statements. | |
Revenue Recognition | |
General | |
HP recognizes revenue when persuasive evidence of an 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 standalone software sales to channel partners on receipt of evidence that the software has been sold to a specific end user. 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 refund or return rights. | |
HP reduces revenue for customer and distributor programs and incentive offerings, including price protection, rebates, 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. For certain incentive programs, HP estimates the number of customers expected to redeem the incentive based on historical experience and the specific terms and conditions of the incentive. | |
In instances when revenue is derived from sales of third-party vendor products or services, HP records revenue on a gross basis when HP is a principal to the transaction and on a net basis when HP is acting as an agent between the customer and the vendor. HP considers several factors to determine whether it is acting as a principal or an agent, most notably whether HP is the primary obligor to the customer, has established its own pricing and has inventory and credit risks. | |
HP reports revenue net of any taxes collected from customers and remitted to government authorities, with the collected taxes recorded as current liabilities until remitted to the relevant government authority. | |
Multiple element arrangements | |
When a sales arrangement contains multiple elements or deliverables, such as hardware and software products, 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 technology life cycles. In arrangements with multiple elements, HP allocates the transaction price to the individual units of accounting at inception of the arrangement based on their relative selling price. | |
In multiple element arrangements that include software that is more-than-incidental, 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 price 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 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 to the customer. For elements with no standalone value, HP recognizes revenue consistent with the pattern of the associated deliverables. If the arrangement includes a customer-negotiated refund or return right or other contingency relative to the delivered items, and the delivery and performance of the undelivered items is considered probable and substantially within HP's control, the delivered element constitutes a separate unit of accounting. In arrangements with combined units of accounting, changes in the allocation of the transaction price between elements may impact the timing of revenue recognition for the contract but will not change the total revenue recognized for the contract. | |
Product 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 to the customer 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 standard 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 satisfied. 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 inception of the arrangement when VSOE of fair value for all undelivered elements, such as post-contract support, exists and all other revenue recognition criteria have been satisfied. HP recognizes revenue from maintenance and unspecified upgrades or updates provided on a when-and-if-available basis ratably over the period during which such items are delivered. | |
HP recognizes revenue for 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 hosting arrangements where software licenses are sold, HP recognizes the license revenue according to whether perpetual or term licenses are sold, when all other revenue recognition criteria are satisfied. In hosting arrangements that include software licenses, 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 when to recognize revenue for the licenses. | |
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 recognizes costs as they are incurred. | |
HP recognizes revenue from certain fixed-price contracts, such as consulting arrangements, as work progresses over the contract period on a proportional performance basis, as determined by the percentage of labor costs incurred to date compared to the total estimated contract labor costs of a contract. HP recognizes revenue on fixed-price contracts for 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 to measure progress toward completion as determined by the percentage of cost incurred to date compared to the total estimated costs of the project. Estimates of total project costs for fixed-price contracts are regularly revised during the life of a contract. Provisions for estimated losses on fixed-priced contracts are recognized in the period when such losses become known. If reasonable and reliable cost estimates for a project cannot be made, HP uses the completed contract method and recognizes revenue and costs upon service completion. | |
HP generally recognizes outsourcing services revenue in the period when the service is provided and the amount earned is not contingent on the occurrence of any future event. HP recognizes revenue using an objective measure of output for unit-priced contracts. Revenue for fixed-price outsourcing contracts with periodic billings is recognized on a straight-line basis if the service is provided evenly during the contract term. Provisions for estimated losses on outsourcing arrangements are recognized in the period when such losses become probable and estimable. | |
HP recognizes revenue from operating leases on a straight-line basis as service revenue over the rental period. | |
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 | |
HP records amounts invoiced to customers in excess of revenue recognized as deferred revenue until the revenue recognition criteria are satisfied. HP records revenue that is earned and recognized in excess of amounts invoiced on services contracts as trade receivables. | |
Deferred revenue represents amounts invoiced in advance for product support contracts, software customer support contracts, outsourcing startup services work, consulting and integration projects, product sales or leasing income. | |
HP recognizes costs associated with outsourcing contracts as incurred, unless such costs are considered direct and incremental to the startup phase of the contract, in which case HP defers these costs during the startup phase and subsequently amortizes such costs over the period that outsourcing services are provided, once those services commence. HP amortizes deferred contract costs on a straight-line basis over the remaining 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 using the undiscounted estimated cash flows of the contract over its remaining term. If such undiscounted cash flows are insufficient to recover the carrying amount of deferred contract costs and long-lived assets directly associated with the contract, the deferred contract costs are first impaired. If a cash flow deficiency remains after reducing the carrying amount 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. | |
Stock-Based Compensation | |
HP determines stock-based compensation expense based on the measurement date fair value of the award. HP recognizes compensation cost only for those awards expected to meet the service and performance vesting conditions on a straight-line basis over the requisite service period of the award. HP determines compensation costs at the aggregate grant level for service-based awards and at the individual vesting tranche level for awards with performance and/or market conditions. HP estimates the forfeiture rate based on its historical experience. | |
Retirement and Post-Retirement Plans | |
HP has various defined benefit, other contributory and 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 4 for a full description of these plans and the accounting and funding policies. | |
Advertising | |
Costs to produce advertising are expensed as incurred during production. Costs to communicate advertising are expensed when the advertising is first run. Such costs totaled approximately $784 million in fiscal 2014, $878 million in fiscal 2013 and $1.0 billion in fiscal 2012. | |
Restructuring | |
HP records charges associated with management-approved restructuring plans to reorganize one or more of HP's business segments, to remove duplicative headcount and infrastructure associated with business acquisitions or to simplify business processes and accelerate innovation. Restructuring charges can include severance costs to 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. | |
Taxes on Earnings | |
HP recognizes deferred tax assets and liabilities for the expected tax consequences of temporary differences between the tax bases of assets and liabilities and their reported amounts using enacted tax rates in effect for the year the differences are expected to reverse. HP records a valuation allowance to reduce the deferred tax assets to the amount that is more likely than not to be realized. | |
HP records accruals for uncertain tax positions when HP believes that it is not more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. HP makes adjustments to these accruals when facts and circumstances change, such as the closing of a tax audit or the refinement of an estimate. The provision for income taxes includes the effects of adjustments for uncertain tax positions, as well as any related interest and penalties. | |
Accounts Receivable | |
HP establishes an allowance for doubtful accounts for accounts receivable. HP records a specific reserve for individual accounts when HP becomes aware of specific customer circumstances, such as in the case of a bankruptcy filing or deterioration in the customer's operating results or financial position. If there are additional changes in circumstances related to the specific customer, HP further adjusts estimates of the recoverability of receivables. HP 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. | |
HP has third-party revolving short-term financing arrangements intended to facilitate the working capital requirements of certain customers. These financing arrangements, which in certain cases provide for partial recourse, result in the transfer of HP's trade receivables to a third party. HP reflects amounts transferred to, but not yet collected from, the third party in accounts receivable in the Consolidated Balance Sheets. For arrangements involving an element of recourse, the fair value of the recourse obligation is measured using market data from similar transactions and reported as a current liability in the Consolidated Balance Sheets. | |
Concentrations of Risk | |
Financial instruments that potentially subject HP to significant concentrations of credit risk consist principally of cash and cash equivalents, investments, receivables from trade customers and contract manufacturers, 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 geographic regions, and HP's policy is designed to limit exposure from any particular institution. As part of its risk management processes, HP performs periodic evaluations of the relative credit standing of these financial institutions. HP has not sustained material credit losses from instruments held at these financial institutions. HP utilizes derivative contracts to protect against the effects of foreign currency 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 these distributors' and resellers' aggregated business deteriorates substantially, HP's operating results could be adversely affected. The ten largest distributor and reseller receivable balances, which were concentrated primarily in North America and Europe, collectively represented approximately 20% and 21% of gross accounts receivable at October 31, 2014 and 2013, respectively. No single customer accounts for more than 10% of gross 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 geographic regions. HP performs ongoing credit evaluations of the financial condition of its third-party distributors, resellers and other customers and may require collateral, such as letters of credit and bank guarantees, in certain circumstances. | |
HP utilizes outsourced manufacturers around the world to manufacture HP-designed products. HP may purchase product components from suppliers and sell those components to its outsourced manufacturers thereby creating receivable balances from the outsourced manufacturers. The three largest outsourced manufacturer receivable balances collectively represented 90% and 82% of HP's supplier receivables of $1.0 billion and $1.0 billion at October 31, 2014 and 2013, respectively. HP includes the supplier receivables in Other current assets in the Consolidated Balance Sheets on a gross basis. HP's credit risk associated with these receivables is mitigated wholly or in part, by the amount HP owes to these outsourced manufacturers, as HP generally has the legal right to offset its payables to the outsourced manufacturers against these receivables. HP does not reflect the sale of these components in revenue and does not recognize any profit on these component sales until the related products are sold by HP, at which time any profit is recognized as a reduction to cost of sales. | |
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. | |
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. | |
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 expense is recognized on a straight-line basis 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. On retirement or disposition, the asset cost and related accumulated depreciation are removed from the Consolidated Balance Sheets 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. | |
Software Development Costs | |
HP capitalizes costs incurred to acquire or develop software for resale subsequent to establishing technological feasibility for the software, 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 life for capitalized software for resale is generally three years or less. Software development costs incurred subsequent to establishing technological feasibility are generally not significant. | |
Business Combinations | |
HP includes the results of operations of acquired businesses in HP's consolidated results prospectively from the date 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 company and HP and the value of the acquired assembled workforce, neither of which qualifies for recognition as an intangible asset. Acquisition-related expenses and post-acquisition restructuring costs are recognized separately from the business combination and are expensed as incurred. | |
Goodwill | |
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 2014, HP performed a quantitative test for all of its reporting units. | |
Goodwill is tested for impairment at the reporting unit level. At the beginning of its first quarter of fiscal 2014, HP made a change to its reporting units. In connection with continued operational synergies and interdependencies between the Enterprise Servers, Storage and Networking reporting unit and the Technology Services ("TS") reporting unit within the Enterprise Group ("EG") segment, HP combined these reporting units to create the EG reporting unit. As of October 31, 2014, HP's reporting units are consistent with the reportable segments identified in Note 2, except for Enterprise Services ("ES"), which consists of two reporting units: MphasiS Limited and the remainder of ES. | |
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 on the weighted-average cost of capital adjusted for the relevant risk associated with business-specific characteristics and the uncertainty related to the reporting unit's ability to execute on the projected cash flows. Under the market approach, HP estimates fair value based on market multiples of revenue and earnings derived from comparable publicly-traded companies with similar operating and investment characteristics as the reporting unit. HP weights the fair value derived from the market approach depending on the level of comparability of these publicly-traded companies to the reporting unit. When market comparables are not meaningful or not available, HP estimates the fair value of a reporting unit using only the income approach. For the MphasiS Limited reporting unit, HP utilized the quoted market price in an active market to estimate fair value. | |
In order to assess the reasonableness of the estimated fair value of HP's reporting units, HP compares the aggregate reporting unit fair value to HP's market capitalization and calculates an implied control premium (the excess of the sum of the reporting units' fair value 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 result in a change to the estimated fair value for certain or all reporting units. | |
If the fair value of a reporting unit exceeds the carrying amount of the net assets assigned to that reporting unit, goodwill is not impaired and no further testing is required. If the fair value of the reporting unit is less than its carrying amount, then HP performs the second step of the goodwill 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 in the same manner as if the reporting unit was being acquired in a business combination. 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 the recoverability of assets based on the estimated undiscounted future cash flows expected to result from the use and eventual disposition of the asset. If the undiscounted future cash flows are less than the carrying amount, the asset is impaired. 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. | |
Debt and Marketable Equity Securities Investments | |
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, in Accumulated other comprehensive loss in the Consolidated Balance Sheets. Realized gains and losses for available-for-sale securities are calculated based on the specific identification method and included in Interest and other, net in the Consolidated Statements of Earnings. HP monitors its investment portfolio for potential impairment on a quarterly basis. When the carrying amount of an investment in debt securities exceeds its fair value and the decline in value is determined to be other-than-temporary (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, is recorded in Accumulated other comprehensive loss in the Consolidated Balance Sheets. | |
Derivatives | |
HP uses derivative financial instruments, primarily 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 11 for a full description of HP's derivative financial instrument activities and related accounting policies. | |
Loss Contingencies | |
HP is involved in various lawsuits, claims, investigations and proceedings that arise in the ordinary course of business. HP records a liability for contingencies when it believes it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. See Note 15 for a full description of HP's loss contingencies and related accounting policies. | |
Segment_Information
Segment Information | 12 Months Ended | |||||||||||||||||||||||||
Oct. 31, 2014 | ||||||||||||||||||||||||||
Segment Information | ||||||||||||||||||||||||||
Segment Information | Note 2: Segment Information | |||||||||||||||||||||||||
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; enterprise information technology ("IT") infrastructure, including enterprise server and storage technology, networking products and solutions, and technology support and maintenance; multi-vendor customer services, including technology consulting, outsourcing and support services across infrastructure, applications and business process domains; and IT management software, application testing and delivery software, information management solutions, big data analytics, security intelligence and risk management solutions. | ||||||||||||||||||||||||||
HP's operations are organized into seven segments for financial reporting purposes: Personal Systems, Printing, the EG, ES, Software, HP Financial Services ("HPFS") 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 and homogeneity of products and technology. The segments are based on this organizational structure and information reviewed by HP's management to evaluate 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 may provide financial data aggregating the Personal Systems and the Printing segments in order to provide a supplementary view of its business. | ||||||||||||||||||||||||||
A summary description of each 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 organization that is customer-focused and poised to capitalize on rapidly shifting industry trends. Each of the segments within PPS is described below. | ||||||||||||||||||||||||||
Personal Systems provides commercial Personal Computers ("PCs"), consumer PCs, workstations, thin clients, tablets, retail point-of-sale systems, calculators and other related accessories, software, support and services for the commercial and consumer markets. HP groups commercial notebooks, commercial desktops, commercial tablets, workstations and thin clients into commercial clients and consumer notebooks, consumer desktops and consumer tablets into consumer clients when describing performance in these markets. Described below are HP's global business capabilities within Personal Systems. | ||||||||||||||||||||||||||
• | Commercial PCs are optimized for use by customers, including enterprise and SMB customers, and for connectivity, reliability and manageability in networked environments. | |||||||||||||||||||||||||
• | Consumer PCs include the HP Spectre, HP ENVY, HP Pavilion, HP Chromebook, HP Split and HP Slate series of multi-media consumer notebooks, consumer tablets, hybrids and desktops. | |||||||||||||||||||||||||
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 printers and commercial inkjet printers into commercial hardware and consumer inkjet printers into consumer hardware when describing performance in these markets. Described below are HP's global business capabilities within Printing. | ||||||||||||||||||||||||||
• | LaserJet and Enterprise Solutions deliver HP's LaserJet and enterprise products, services and solutions to the SMB and enterprise segments. Managed Print Services provides printing equipment, supplies, support, workflow optimization and security services for SMB and enterprise customers around the world, utilizing proprietary HP tools and fleet management solutions as well as third-party software. | |||||||||||||||||||||||||
• | Inkjet and Printing Solutions deliver HP's consumer and SMB inkjet solutions (hardware, supplies, media, and web-connected hardware and services). Ongoing initiatives and programs such as Ink in the Office and Ink Advantage and newer initiatives such as Instant Ink provide innovative printing solutions to consumers and SMBs. | |||||||||||||||||||||||||
• | Graphics Solutions delivers large format printers (Designjet, Large Format Production, and Scitex Industrial), specialty printing, digital press solutions (Indigo and Inkjet Webpress), supplies and services to print service providers and design & rendering customers. | |||||||||||||||||||||||||
• | 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 and technology services that, when combined with HP's Cloud solutions, enable 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. | ||||||||||||||||||||||||||
• | Industry Standard Servers offers a range of products from entry-level servers through premium ProLiant servers, which run primarily Windows, Linux and virtualization platforms from software providers such as Microsoft and VMware and open sourced software from other major vendors while leveraging x86 processors from Intel and AMD. | |||||||||||||||||||||||||
• | Business Critical Systems offers HP Integrity servers based on the Intel® Itanium® processor, HP Integrity NonStop solutions and mission-critical x86 ProLiant servers. | |||||||||||||||||||||||||
• | 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 and StoreVirtual products. | |||||||||||||||||||||||||
• | Networking offers switches, routers, wireless local area network and network management products that span the data center, campus and branch environments and deliver software-defined networking and unified communications capabilities. | |||||||||||||||||||||||||
• | Technology Services provides support services and technology consulting optimizing EG's hardware platforms, and focuses on cloud, mobility and big data. 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 comprised of Infrastructure Technology Outsourcing, Application and Business Services. | ||||||||||||||||||||||||||
• | Infrastructure Technology Outsourcing delivers comprehensive services that encompass the management of data centers, IT security, cloud computing, workplace technology, networks, unified communications and enterprise service management. | |||||||||||||||||||||||||
• | Application and Business Services helps clients develop, revitalize and manage their applications and information assets. | |||||||||||||||||||||||||
Software provides IT management, application testing and delivery, information management, big data analytics, security intelligence and risk management solutions for businesses and enterprises of all sizes. Our software offerings include licenses, support, professional services and SaaS. | ||||||||||||||||||||||||||
HP Financial Services provides flexible investment solutions, such as leasing, financing, utility programs and asset management services, for customers to enable the creation of unique technology deployment models and acquire complete IT solutions, including hardware, software and services from HP and others. Providing flexible services and capabilities that support the entire IT lifecycle, HPFS partners with customers globally to help build investment strategies that enhance their business agility and support their business transformation. HPFS offers a wide selection of investment solution capabilities for large enterprise customers and channel partners, along with an array of financial options to SMBs and educational and governmental entities. | ||||||||||||||||||||||||||
Corporate Investments includes HP Labs and certain cloud-related business incubation projects among others. | ||||||||||||||||||||||||||
Segment Policy | ||||||||||||||||||||||||||
HP derives the results of the business segments directly from its internal management reporting system. The accounting policies HP uses to derive segment results are substantially the same as those the consolidated company uses. Management measures the performance of each segment based on several metrics, including earnings from operations. Management uses these results, in part, to evaluate the performance of, and to allocate resources to, each of the segments. | ||||||||||||||||||||||||||
Segment revenue includes revenues from sales to external customers and intersegment revenues that reflect transactions between the segments on an arm's-length basis. Intersegment revenues primarily consist of sales of hardware and software that are sourced internally and, in the majority of the cases, are financed as operating leases by HPFS. HP's consolidated net revenue is derived and reported after the elimination of intersegment revenues from such arrangements. | ||||||||||||||||||||||||||
HP periodically engages in intercompany licensing arrangements that may result in advance payments between subsidiaries. Revenues from intercompany licensing arrangements are deferred and recognized ratably over the term of the arrangement by the legal entities involved in such transactions; however, these payments are eliminated from revenues as reported by HP and its business segments. As disclosed in Note 6, during fiscal 2014, HP executed a multi-year intercompany licensing arrangement on which advanced royalty payments of $10.4 billion were received in the U.S. from a foreign consolidated affiliate. Deferred intercompany royalty revenues of $9.9 billion will be recognized over the life of the arrangement through 2029 in the respective legal entities, but eliminated from both HP consolidated and segment revenues. | ||||||||||||||||||||||||||
Financing interest in the Consolidated Statements of Earnings reflects interest expense on debt attributable to HPFS. Debt attributable to HPFS consists of intercompany equity that is treated as debt for segment reporting purposes, intercompany debt, and borrowing- and funding-related activity associated with HPFS and its subsidiaries. | ||||||||||||||||||||||||||
HP does not allocate to its segments certain operating expenses, which it manages at the corporate level. These unallocated costs include certain corporate governance costs, stock-based compensation expense, amortization of intangible assets, impairment of goodwill and intangible assets, restructuring charges and acquisition-related charges. | ||||||||||||||||||||||||||
Segment Realignment | ||||||||||||||||||||||||||
Effective at the beginning of its first quarter of fiscal 2014, HP implemented certain organizational changes to align its segment financial reporting more closely with its current business structure. These organizational changes include: | ||||||||||||||||||||||||||
• | transferring the HP Exstream business from the Commercial Hardware business unit within the Printing segment to the Software segment; | |||||||||||||||||||||||||
• | transferring the Personal Systems trade and warranty support business from the TS business unit within the EG segment to the Other business unit within the Personal Systems segment; | |||||||||||||||||||||||||
• | transferring the spare and replacement parts business supporting the Personal Systems and Printing segments from the TS business unit within the EG segment to the Other business unit within the Personal Systems segment and the Commercial Hardware business unit within the Printing segment, respectively; | |||||||||||||||||||||||||
• | transferring certain cloud-related incubation activities previously reported in Corporate and unallocated costs and eliminations and in the EG segment to the Corporate Investments segment. | |||||||||||||||||||||||||
In addition, HP transferred certain intrasegment eliminations from the ES segment and the EG segment to corporate intersegment revenue eliminations. | ||||||||||||||||||||||||||
HP has reflected these changes to its segment information retrospectively to the earliest period presented, which has resulted in the transfer of revenue among the Printing, Personal Systems, EG, ES and Software segments and the transfer of operating profit among the Printing, Personal Systems, EG, Software and Corporate Investments segments. These changes had no impact on the previously reported financial results for the HPFS segment. In addition, none of these changes impacted HP's previously reported consolidated net revenue, earnings from operations, net earnings or net EPS. | ||||||||||||||||||||||||||
Segment Operating Results | ||||||||||||||||||||||||||
Printing and | ||||||||||||||||||||||||||
Personal Systems | ||||||||||||||||||||||||||
Personal | Printing | Enterprise | Enterprise | Software | HP Financial | Corporate | Total | |||||||||||||||||||
Systems | Group | Services | Services | Investments | ||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||
2014 | ||||||||||||||||||||||||||
Net revenue | $ | 33,304 | $ | 22,719 | $ | 26,809 | $ | 21,297 | $ | 3,607 | $ | 3,416 | $ | 302 | $ | 111,454 | ||||||||||
Intersegment net revenue and other | 999 | 260 | 1,005 | 1,101 | 326 | 82 | — | 3,773 | ||||||||||||||||||
Total segment net revenue | $ | 34,303 | $ | 22,979 | $ | 27,814 | $ | 22,398 | $ | 3,933 | $ | 3,498 | $ | 302 | $ | 115,227 | ||||||||||
Earnings (loss) from operations | $ | 1,270 | $ | 4,185 | $ | 4,008 | $ | 803 | $ | 872 | $ | 389 | $ | (199 | ) | $ | 11,328 | |||||||||
2013 | ||||||||||||||||||||||||||
Net revenue | $ | 31,232 | $ | 23,685 | $ | 27,045 | $ | 23,041 | $ | 3,701 | $ | 3,570 | $ | 24 | $ | 112,298 | ||||||||||
Intersegment net revenue and other | 947 | 211 | 1,036 | 1,020 | 320 | 59 | — | 3,593 | ||||||||||||||||||
Total segment net revenue | $ | 32,179 | $ | 23,896 | $ | 28,081 | $ | 24,061 | $ | 4,021 | $ | 3,629 | $ | 24 | $ | 115,891 | ||||||||||
Earnings (loss) from operations | $ | 980 | $ | 3,933 | $ | 4,259 | $ | 679 | $ | 868 | $ | 399 | $ | (316 | ) | $ | 10,802 | |||||||||
2012 | ||||||||||||||||||||||||||
Net revenue | $ | 34,892 | $ | 24,317 | $ | 28,349 | $ | 25,090 | $ | 3,868 | $ | 3,784 | $ | 57 | $ | 120,357 | ||||||||||
Intersegment net revenue and other | 951 | 221 | 1,294 | 903 | 303 | 35 | 1 | 3,708 | ||||||||||||||||||
Total segment net revenue | $ | 35,843 | $ | 24,538 | $ | 29,643 | $ | 25,993 | $ | 4,171 | $ | 3,819 | $ | 58 | $ | 124,065 | ||||||||||
Earnings (loss) from operations | $ | 1,724 | $ | 3,612 | $ | 5,123 | $ | 1,045 | $ | 836 | $ | 388 | $ | (233 | ) | $ | 12,495 | |||||||||
The reconciliation of segment operating results to HP consolidated results was as follows: | ||||||||||||||||||||||||||
For the fiscal years ended October 31 | ||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||
Net Revenue: | ||||||||||||||||||||||||||
Total segments | $ | 115,227 | $ | 115,891 | $ | 124,065 | ||||||||||||||||||||
Elimination of intersegment net revenue and other | (3,773 | ) | (3,593 | ) | (3,708 | ) | ||||||||||||||||||||
Total HP consolidated net revenue | $ | 111,454 | $ | 112,298 | $ | 120,357 | ||||||||||||||||||||
Earnings before taxes: | ||||||||||||||||||||||||||
Total segment earnings from operations | $ | 11,328 | $ | 10,802 | $ | 12,495 | ||||||||||||||||||||
Corporate and unallocated costs and eliminations | (953 | ) | (786 | ) | (787 | ) | ||||||||||||||||||||
Stock-based compensation expense | (560 | ) | (500 | ) | (635 | ) | ||||||||||||||||||||
Amortization of intangible assets | (1,000 | ) | (1,373 | ) | (1,784 | ) | ||||||||||||||||||||
Impairment of goodwill and intangible assets | — | — | (18,035 | ) | ||||||||||||||||||||||
Restructuring charges | (1,619 | ) | (990 | ) | (2,266 | ) | ||||||||||||||||||||
Acquisition-related charges | (11 | ) | (22 | ) | (45 | ) | ||||||||||||||||||||
Interest and other, net | (628 | ) | (621 | ) | (876 | ) | ||||||||||||||||||||
Total HP consolidated earnings (loss) before taxes | $ | 6,557 | $ | 6,510 | $ | (11,933 | ) | |||||||||||||||||||
Segment Assets | ||||||||||||||||||||||||||
HP allocates assets to its business segments based on the segments primarily benefiting from the assets. Total assets by segment and the reconciliation of segment assets to HP consolidated assets were as follows: | ||||||||||||||||||||||||||
As of October 31 | ||||||||||||||||||||||||||
2014 | 2013(1) | |||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||
Personal Systems | $ | 12,104 | $ | 11,690 | ||||||||||||||||||||||
Printing | 10,063 | 11,088 | ||||||||||||||||||||||||
Printing and Personal Systems Group | 22,167 | 22,778 | ||||||||||||||||||||||||
Enterprise Group | 27,236 | 29,759 | ||||||||||||||||||||||||
Enterprise Services | 13,472 | 16,217 | ||||||||||||||||||||||||
Software | 11,575 | 11,940 | ||||||||||||||||||||||||
HP Financial Services | 13,529 | 12,746 | ||||||||||||||||||||||||
Corporate Investments | 34 | 105 | ||||||||||||||||||||||||
Corporate and unallocated assets | 15,193 | 12,131 | ||||||||||||||||||||||||
Total HP consolidated assets | $ | 103,206 | $ | 105,676 | ||||||||||||||||||||||
-1 | HP has revised the presentation for the fiscal year ended October 31, 2013 in order to present comparable information with the current year period. | |||||||||||||||||||||||||
Major Customers | ||||||||||||||||||||||||||
No single customer represented 10% or more of HP's total net revenue in any fiscal year presented. | ||||||||||||||||||||||||||
Geographic Information | ||||||||||||||||||||||||||
Net revenue by country is based upon the sales location that predominately represents the customer location. For each of the fiscal years of 2014, 2013 and 2012, other than the U.S., no country represented more than 10% of HP net revenue. | ||||||||||||||||||||||||||
Net revenue by country in which HP operates was as follows: | ||||||||||||||||||||||||||
For the fiscal years ended October 31 | ||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||
U.S. | $ | 38,805 | $ | 40,284 | $ | 42,140 | ||||||||||||||||||||
Other countries | 72,649 | 72,014 | 78,217 | |||||||||||||||||||||||
Total net revenue | $ | 111,454 | $ | 112,298 | $ | 120,357 | ||||||||||||||||||||
As of October 31, 2014, the U.S., Netherlands and Ireland each represented more than 10% of net assets. As of October 31, 2013, the U.S., the Cayman Islands and Ireland each represented 10% or more of net assets. | ||||||||||||||||||||||||||
Net property, plant and equipment by country in which HP operates was as follows: | ||||||||||||||||||||||||||
As of October 31 | ||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||
U.S. | $ | 5,668 | $ | 5,546 | ||||||||||||||||||||||
The United Kingdom. | 1,053 | 1,090 | ||||||||||||||||||||||||
Other countries | 4,619 | 4,827 | ||||||||||||||||||||||||
Total net property, plant and equipment | $ | 11,340 | $ | 11,463 | ||||||||||||||||||||||
Net revenue by segment and business unit was as follows: | ||||||||||||||||||||||||||
For the fiscal years ended October 31 | ||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||
Notebooks | $ | 17,540 | $ | 16,029 | $ | 18,830 | ||||||||||||||||||||
Desktops | 13,197 | 12,844 | 13,888 | |||||||||||||||||||||||
Workstations | 2,218 | 2,147 | 2,148 | |||||||||||||||||||||||
Other | 1,348 | 1,159 | 977 | |||||||||||||||||||||||
Personal Systems | 34,303 | 32,179 | 35,843 | |||||||||||||||||||||||
Supplies | 14,917 | 15,716 | 16,151 | |||||||||||||||||||||||
Commercial Hardware | 5,717 | 5,744 | 5,946 | |||||||||||||||||||||||
Consumer Hardware | 2,345 | 2,436 | 2,441 | |||||||||||||||||||||||
Printing | 22,979 | 23,896 | 24,538 | |||||||||||||||||||||||
Total Printing and Personal Systems Group | 57,282 | 56,075 | 60,381 | |||||||||||||||||||||||
Industry Standard Servers | 12,474 | 12,102 | 12,582 | |||||||||||||||||||||||
Technology Services | 8,466 | 8,788 | 9,152 | |||||||||||||||||||||||
Storage | 3,316 | 3,475 | 3,815 | |||||||||||||||||||||||
Networking | 2,629 | 2,526 | 2,482 | |||||||||||||||||||||||
Business Critical Systems | 929 | 1,190 | 1,612 | |||||||||||||||||||||||
Enterprise Group | 27,814 | 28,081 | 29,643 | |||||||||||||||||||||||
Infrastructure Technology Outsourcing | 14,038 | 15,223 | 16,176 | |||||||||||||||||||||||
Application and Business Services | 8,360 | 8,838 | 9,817 | |||||||||||||||||||||||
Enterprise Services | 22,398 | 24,061 | 25,993 | |||||||||||||||||||||||
Software | 3,933 | 4,021 | 4,171 | |||||||||||||||||||||||
HP Financial Services | 3,498 | 3,629 | 3,819 | |||||||||||||||||||||||
Corporate Investments | 302 | 24 | 58 | |||||||||||||||||||||||
Total segment net revenue | 115,227 | 115,891 | 124,065 | |||||||||||||||||||||||
Eliminations of intersegment net revenue and other | (3,773 | ) | (3,593 | ) | (3,708 | ) | ||||||||||||||||||||
Total net revenue | $ | 111,454 | $ | 112,298 | $ | 120,357 | ||||||||||||||||||||
Restructuring
Restructuring | 12 Months Ended | ||||||||||||||||||||||
Oct. 31, 2014 | |||||||||||||||||||||||
Restructuring Charges | |||||||||||||||||||||||
Restructuring | Note 3: Restructuring | ||||||||||||||||||||||
Summary of Restructuring Plans | |||||||||||||||||||||||
HP's restructuring activities in fiscal 2014 summarized by plan were as follows: | |||||||||||||||||||||||
Fiscal 2014 | As of October 31, | ||||||||||||||||||||||
2014 | |||||||||||||||||||||||
Balance, | Charges | Cash | Other | Balance, | Total | Total | |||||||||||||||||
October 31, | Payments | Adjustments | October 31, | Costs | Expected | ||||||||||||||||||
2013 | and Non-Cash | 2014 | Incurred | Costs to Be | |||||||||||||||||||
Settlements | to Date | Incurred | |||||||||||||||||||||
In millions | |||||||||||||||||||||||
Fiscal 2012 Plan | |||||||||||||||||||||||
Severance and EER | $ | 945 | $ | 1,357 | $ | (1,233 | ) | $ | (114 | ) | $ | 955 | $ | 4,393 | $ | 5,000 | |||||||
Infrastructure and other | 40 | 268 | (208 | ) | (2 | ) | 98 | 515 | 540 | ||||||||||||||
Total 2012 Plan | 985 | 1,625 | (1,441 | ) | (116 | ) | 1,053 | 4,908 | 5,540 | ||||||||||||||
Other Plans: | |||||||||||||||||||||||
Severance | 10 | — | (3 | ) | — | 7 | 2,629 | 2,629 | |||||||||||||||
Infrastructure | 122 | (6 | ) | (62 | ) | — | 54 | 1,433 | 1,437 | ||||||||||||||
Total Other Plans | 132 | (6 | ) | (65 | ) | — | 61 | 4,062 | 4,066 | ||||||||||||||
Total restructuring plans | $ | 1,117 | $ | 1,619 | $ | (1,506 | ) | $ | (116 | ) | $ | 1,114 | $ | 8,970 | $ | 9,606 | |||||||
Reflected in Consolidated Balance Sheets: | |||||||||||||||||||||||
Accrued restructuring | $ | 901 | $ | 898 | |||||||||||||||||||
Other liabilities | $ | 216 | $ | 216 | |||||||||||||||||||
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 October 31, 2013, HP estimated that it would eliminate approximately 34,000 positions in connection with the 2012 Plan through fiscal 2014, with a portion of those employees exiting the company as part of voluntary enhanced early retirement ("EER") programs in the U.S. and in certain other countries. As of October 31, 2013, HP estimated that it would recognize approximately $4.1 billion in aggregate charges in connection with the 2012 Plan. | |||||||||||||||||||||||
In fiscal 2014, HP increased the expected number of positions to be eliminated to 55,000 as HP continued to optimize the workforce and reengineer business processes to be more competitive and meet its objectives. As a result, as of October 31, 2014, HP estimates that it will recognize approximately $5.5 billion in aggregate charges in connection with the 2012 Plan. As of October 31, 2014, HP had recorded $4.9 billion in aggregate charges of which $4.4 billion related to workforce reductions and $515 million related to infrastructure, including data center and real estate consolidation, and other items. As of October 31, 2014, HP had eliminated approximately 40,900 positions for which a severance payment has been or will be made as part of the 2012 Plan. The severance- and infrastructure-related cash payments associated with the 2012 Plan are expected to be paid out through fiscal 2021. | |||||||||||||||||||||||
Other Plans | |||||||||||||||||||||||
Restructuring plans initiated by HP in fiscal 2008 and 2010 were substantially completed as of October 31, 2014. Severance- and infrastructure-related cash payments associated with the other plans are expected to be paid out through fiscal 2019. | |||||||||||||||||||||||
Retirement_and_PostRetirement_
Retirement and Post-Retirement Benefit Plans | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
Oct. 31, 2014 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement and Post-Retirement Benefit Plans | ||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement and Post-Retirement Benefit Plans | Note 4: 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 Pension Plan ("Pension Plan"), a defined benefit pension plan under which benefits are based on pay and years of service, and the HP Company Cash Account Pension Plan ("Cash Account Pension Plan"), under which benefits are accrued pursuant to a formula based on a percentage of pay plus interest, were frozen effective January 1, 2008. The Cash Account Pension Plan was merged into the HP Pension Plan in 2005 for certain funding and investment purposes. Effective October 30, 2009 the Electronic Data Systems Corporation ("EDS") U.S. qualified pension plan was also merged into the Pension Plan. The EDS pension plan was frozen effective January 1, 2009. | ||||||||||||||||||||||||||||||||||||||||||||||||||
HP reduces the benefit payable to certain U.S. employees under the Pension Plan for service before 1993, if any, by any amounts due to the employee under HP's frozen defined contribution Deferred Profit-Sharing Plan ("DPSP"). 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 Pension 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 were as follows: | ||||||||||||||||||||||||||||||||||||||||||||||||||
For the fiscal years ended October 31 | ||||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||||||||||||||||||||
Plan Assets | Projected | Plan Assets | Projected | |||||||||||||||||||||||||||||||||||||||||||||||
Benefit | Benefit | |||||||||||||||||||||||||||||||||||||||||||||||||
Obligation | Obligation | |||||||||||||||||||||||||||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. defined benefit plans | $ | 11,979 | $ | 13,756 | $ | 10,866 | $ | 11,866 | ||||||||||||||||||||||||||||||||||||||||||
DPSP | 828 | 828 | 837 | 837 | ||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 12,807 | $ | 14,584 | $ | 11,703 | $ | 12,703 | ||||||||||||||||||||||||||||||||||||||||||
Post-Retirement Benefit Plans | ||||||||||||||||||||||||||||||||||||||||||||||||||
HP sponsors retiree health and welfare benefit plans, of which the most significant are in the U.S. Under the HP Retiree Welfare Benefits Plan, certain pre-2003 retirees and grandfathered participants with continuous service to HP since 2002 are eligible to receive partially-subsidized medical coverage based on years of service at retirement. 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 ("RMSA") upon attaining age 45. Credits offered after September 2008 are provided in the form of matching credits on employee contributions made to a voluntary employee beneficiary association. On retirement, former employees may use these credits for the reimbursement of certain eligible medical expenses, including premiums required for coverage. | ||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Contribution Plans | ||||||||||||||||||||||||||||||||||||||||||||||||||
HP offers various defined contribution plans for U.S. and non-U.S. employees. Total defined contribution expense was $573 million in fiscal 2014, $603 million in fiscal 2013 and $628 million in fiscal 2012. U.S. employees are automatically enrolled in the Hewlett-Packard Company 401(k) Plan ("HP 401(k) Plan") when they meet eligibility requirements, unless they decline participation. | ||||||||||||||||||||||||||||||||||||||||||||||||||
The quarterly employer matching contributions in the HP 401(K) Plan are 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 (credit) cost recognized in the Consolidated Statements of Earnings was as follows: | ||||||||||||||||||||||||||||||||||||||||||||||||||
For the fiscal years ended October 31 | ||||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||||||||||
U.S. Defined | Non-U.S. Defined | Post-Retirement | ||||||||||||||||||||||||||||||||||||||||||||||||
Benefit Plans | Benefit Plans | Benefit Plans | ||||||||||||||||||||||||||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||||||||||||||||||||||||||
Service cost | $ | 1 | $ | 1 | $ | 1 | $ | 308 | $ | 337 | $ | 294 | $ | 5 | $ | 6 | $ | 7 | ||||||||||||||||||||||||||||||||
Interest cost | 569 | 560 | 566 | 737 | 676 | 690 | 32 | 31 | 35 | |||||||||||||||||||||||||||||||||||||||||
Expected return on plan assets | (811 | ) | (845 | ) | (793 | ) | (1,140 | ) | (1,007 | ) | (816 | ) | (34 | ) | (34 | ) | (38 | ) | ||||||||||||||||||||||||||||||||
Amortization and deferrals: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Actuarial loss (gain) | 15 | 77 | 43 | 318 | 341 | 235 | (10 | ) | 2 | (3 | ) | |||||||||||||||||||||||||||||||||||||||
Prior service benefit | — | — | — | (23 | ) | (27 | ) | (24 | ) | (41 | ) | (67 | ) | (79 | ) | |||||||||||||||||||||||||||||||||||
Net periodic benefit (credit) cost | (226 | ) | (207 | ) | (183 | ) | 200 | 320 | 379 | (48 | ) | (62 | ) | (78 | ) | |||||||||||||||||||||||||||||||||||
Curtailment (gain) loss | — | — | — | (7 | ) | (3 | ) | 4 | — | (7 | ) | (30 | ) | |||||||||||||||||||||||||||||||||||||
Settlement loss (gain) | 1 | 12 | 11 | 12 | 18 | (18 | ) | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Special termination benefits | — | — | 833 | 50 | 31 | 17 | 32 | (5 | ) | 227 | ||||||||||||||||||||||||||||||||||||||||
Net benefit (credit) cost | $ | (225 | ) | $ | (195 | ) | $ | 661 | $ | 255 | $ | 366 | $ | 382 | $ | (16 | ) | $ | (74 | ) | $ | 119 | ||||||||||||||||||||||||||||
The weighted-average assumptions used to calculate net benefit (credit) cost were as follows: | ||||||||||||||||||||||||||||||||||||||||||||||||||
For the fiscal years ended October 31 | ||||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||||||||||
U.S. Defined | Non-U.S. Defined | Post-Retirement | ||||||||||||||||||||||||||||||||||||||||||||||||
Benefit Plans | Benefit Plans | Benefit Plans | ||||||||||||||||||||||||||||||||||||||||||||||||
Discount rate | 4.9 | % | 4.1 | % | 4.8 | % | 3.9 | % | 3.8 | % | 4.5 | % | 3.9 | % | 3.0 | % | 4.4 | % | ||||||||||||||||||||||||||||||||
Expected increase in compensation levels | 2.0 | % | 2.0 | % | 2.0 | % | 2.4 | % | 2.4 | % | 2.5 | % | — | — | — | |||||||||||||||||||||||||||||||||||
Expected long-term return on plan assets | 7.7 | % | 7.8 | % | 7.6 | % | 7.0 | % | 7.2 | % | 6.4 | % | 8.9 | % | 9.0 | % | 10.0 | % | ||||||||||||||||||||||||||||||||
Funded Status | ||||||||||||||||||||||||||||||||||||||||||||||||||
The funded status of the defined benefit and post-retirement benefit plans was as follows: | ||||||||||||||||||||||||||||||||||||||||||||||||||
As of October 31 | ||||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||||||||||||||||||
U.S. Defined | Non-U.S. Defined | Post-Retirement | ||||||||||||||||||||||||||||||||||||||||||||||||
Benefit Plans | Benefit Plans | Benefit Plans | ||||||||||||||||||||||||||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||||||||||||||||||||||||||
Change in fair value of plan assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value—beginning of year | $ | 10,866 | $ | 11,536 | $ | 16,083 | $ | 14,021 | $ | 396 | $ | 395 | ||||||||||||||||||||||||||||||||||||||
Acquisition/addition of plans | — | — | 8 | 7 | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Actual return on plan assets | 1,648 | 629 | 1,814 | 1,842 | 83 | 32 | ||||||||||||||||||||||||||||||||||||||||||||
Employer contributions | 27 | 54 | 1,019 | 634 | 92 | 102 | ||||||||||||||||||||||||||||||||||||||||||||
Participant contributions | — | — | 64 | 63 | 54 | 72 | ||||||||||||||||||||||||||||||||||||||||||||
Benefits paid | (558 | ) | (1,320 | ) | (568 | ) | (504 | ) | (167 | ) | (205 | ) | ||||||||||||||||||||||||||||||||||||||
Settlement | (4 | ) | (33 | ) | (49 | ) | (96 | ) | — | — | ||||||||||||||||||||||||||||||||||||||||
Currency impact | — | — | (801 | ) | 116 | — | — | |||||||||||||||||||||||||||||||||||||||||||
Fair value—end of year | 11,979 | 10,866 | 17,570 | 16,083 | 458 | 396 | ||||||||||||||||||||||||||||||||||||||||||||
Change in benefit obligation: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Projected benefit obligation—beginning of year | 11,866 | 14,237 | 19,152 | 18,097 | 867 | 1,056 | ||||||||||||||||||||||||||||||||||||||||||||
Acquisition/addition of plans | — | — | 10 | 14 | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Service cost | 1 | 1 | 308 | 337 | 5 | 6 | ||||||||||||||||||||||||||||||||||||||||||||
Interest cost | 569 | 560 | 737 | 676 | 32 | 31 | ||||||||||||||||||||||||||||||||||||||||||||
Participant contributions | — | — | 64 | 63 | 54 | 72 | ||||||||||||||||||||||||||||||||||||||||||||
Actuarial loss (gain) | 1,882 | (1,579 | ) | 2,500 | 343 | 22 | (85 | ) | ||||||||||||||||||||||||||||||||||||||||||
Benefits paid | (558 | ) | (1,320 | ) | (568 | ) | (504 | ) | (167 | ) | (205 | ) | ||||||||||||||||||||||||||||||||||||||
Plan amendments | — | — | — | 6 | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Curtailment | — | — | (49 | ) | 13 | — | — | |||||||||||||||||||||||||||||||||||||||||||
Settlement | (4 | ) | (33 | ) | (49 | ) | (100 | ) | — | — | ||||||||||||||||||||||||||||||||||||||||
Special termination benefits | — | — | 50 | 31 | 32 | (5 | ) | |||||||||||||||||||||||||||||||||||||||||||
Currency impact | — | — | (935 | ) | 176 | (5 | ) | (3 | ) | |||||||||||||||||||||||||||||||||||||||||
Projected benefit obligation—end of year | 13,756 | 11,866 | 21,220 | 19,152 | 840 | 867 | ||||||||||||||||||||||||||||||||||||||||||||
Funded status at end of year | $ | (1,777 | ) | $ | (1,000 | ) | $ | (3,650 | ) | $ | (3,069 | ) | $ | (382 | ) | $ | (471 | ) | ||||||||||||||||||||||||||||||||
Accumulated benefit obligation | $ | 13,755 | $ | 11,865 | $ | 20,207 | $ | 18,254 | ||||||||||||||||||||||||||||||||||||||||||
The weighted-average assumptions used to calculate the projected benefit obligations were as follows: | ||||||||||||||||||||||||||||||||||||||||||||||||||
For the fiscal years ended October 31 | ||||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||||||||||||||||||
U.S. Defined | Non-U.S. | Post-Retirement | ||||||||||||||||||||||||||||||||||||||||||||||||
Benefit Plans | Defined | Benefit Plans | ||||||||||||||||||||||||||||||||||||||||||||||||
Benefit Plans | ||||||||||||||||||||||||||||||||||||||||||||||||||
Discount rate | 4.4 | % | 4.9 | % | 3.2 | % | 3.9 | % | 3.6 | % | 3.9 | % | ||||||||||||||||||||||||||||||||||||||
Expected increase in compensation levels | 2.0 | % | 2.0 | % | 2.5 | % | 2.4 | % | — | — | ||||||||||||||||||||||||||||||||||||||||
For the U.S. defined benefit plan, HP adopted a new mortality rate table in fiscal 2014 to better reflect expected lifetimes of its U.S. plan participants. The table used is based on a historical demographic study of the plans and increased the projected benefit obligation by approximately $870 million. The increase in the projected benefit obligation was recognized as a part of the net actuarial loss as included in the other comprehensive loss which will be amortized over the remaining estimated life of plan participants (approximately 26.5 years). | ||||||||||||||||||||||||||||||||||||||||||||||||||
The net amounts recognized for HP's defined benefit and post-retirement benefit plans in HP's Consolidated Balance Sheets were as follows: | ||||||||||||||||||||||||||||||||||||||||||||||||||
As of October 31 | ||||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||||||||||||||||||
U.S. Defined | Non-U.S. Defined | Post-Retirement | ||||||||||||||||||||||||||||||||||||||||||||||||
Benefit Plans | Benefit Plans | Benefit Plans | ||||||||||||||||||||||||||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||||||||||||||||||||||||||
Noncurrent assets | $ | — | $ | — | $ | 421 | $ | 479 | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||||
Current liabilities | (35 | ) | (33 | ) | (43 | ) | (46 | ) | (47 | ) | (109 | ) | ||||||||||||||||||||||||||||||||||||||
Noncurrent liabilities | (1,742 | ) | (967 | ) | (4,028 | ) | (3,502 | ) | (335 | ) | (362 | ) | ||||||||||||||||||||||||||||||||||||||
Funded status at end of year | $ | (1,777 | ) | $ | (1,000 | ) | $ | (3,650 | ) | $ | (3,069 | ) | (382 | ) | $ | (471 | ) | |||||||||||||||||||||||||||||||||
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: | ||||||||||||||||||||||||||||||||||||||||||||||||||
For the fiscal year ended October 31, 2014 | ||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Defined | Non-U.S. Defined | Post-Retirement | ||||||||||||||||||||||||||||||||||||||||||||||||
Benefit Plans | Benefit Plans | Benefit Plans | ||||||||||||||||||||||||||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net actuarial loss (gain) | $ | 1,405 | $ | 5,423 | $ | (115 | ) | |||||||||||||||||||||||||||||||||||||||||||
Prior service benefit | — | (186 | ) | (119 | ) | |||||||||||||||||||||||||||||||||||||||||||||
Total recognized in accumulated other comprehensive loss | $ | 1,405 | $ | 5,237 | $ | (234 | ) | |||||||||||||||||||||||||||||||||||||||||||
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) | $ | 54 | $ | 452 | $ | (10 | ) | |||||||||||||||||||||||||||||||||||||||||||
Prior service benefit | — | (22 | ) | (20 | ) | |||||||||||||||||||||||||||||||||||||||||||||
Total expected to be recognized in net periodic benefit cost (credit) | $ | 54 | $ | 430 | $ | (30 | ) | |||||||||||||||||||||||||||||||||||||||||||
Defined benefit plans with projected benefit obligations exceeding the fair value of plan assets were as follows: | ||||||||||||||||||||||||||||||||||||||||||||||||||
As of October 31 | ||||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||||||||||||||||||||
U.S. Defined | Non-U.S. Defined | |||||||||||||||||||||||||||||||||||||||||||||||||
Benefit Plans | Benefit Plans | |||||||||||||||||||||||||||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||||||||||||||||||||||||||
Aggregate fair value of plan assets | $ | 11,979 | $ | 10,866 | $ | 12,701 | $ | 10,462 | ||||||||||||||||||||||||||||||||||||||||||
Aggregate projected benefit obligation | $ | 13,756 | $ | 11,866 | $ | 16,774 | $ | 14,010 | ||||||||||||||||||||||||||||||||||||||||||
Defined benefit plans with accumulated benefit obligations exceeding the fair value of plan assets were as follows: | ||||||||||||||||||||||||||||||||||||||||||||||||||
As of October 31 | ||||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||||||||||||||||||||
U.S. Defined | Non-U.S. Defined | |||||||||||||||||||||||||||||||||||||||||||||||||
Benefit Plans | Benefit Plans | |||||||||||||||||||||||||||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||||||||||||||||||||||||||
Aggregate fair value of plan assets | $ | 11,979 | $ | 10,866 | $ | 12,578 | $ | 9,926 | ||||||||||||||||||||||||||||||||||||||||||
Aggregate accumulated benefit obligation | $ | 13,755 | $ | 11,865 | $ | 15,797 | $ | 12,703 | ||||||||||||||||||||||||||||||||||||||||||
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 special termination benefit STB expense of $227 million, which was offset by net curtailment gains of $37 million, due primarily to the resulting accelerated recognition of the existing prior service benefit. The entire STB and approximately $30 million in curtailment gains were recognized in fiscal 2012. HP reported this net expense as a restructuring charge in the Consolidated Statements of Earnings. | ||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Plan Assets | ||||||||||||||||||||||||||||||||||||||||||||||||||
The table below sets forth the fair value of plan assets by asset category within the fair value hierarchy. | ||||||||||||||||||||||||||||||||||||||||||||||||||
As of October 31, 2014 | ||||||||||||||||||||||||||||||||||||||||||||||||||
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. | $ | 1,787 | $ | — | $ | — | $ | 1,787 | $ | 2,935 | $ | 30 | $ | — | $ | 2,965 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||||||
Non-U.S. | 1,268 | — | — | 1,268 | 4,050 | 742 | 80 | 4,872 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||
Debt securities | ||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate | — | 3,283 | 7 | 3,290 | — | 2,935 | — | 2,935 | — | 20 | — | 20 | ||||||||||||||||||||||||||||||||||||||
Government(1) | — | 2,204 | — | 2,204 | — | 1,787 | — | 1,787 | — | 22 | — | 22 | ||||||||||||||||||||||||||||||||||||||
Alternative Investments | ||||||||||||||||||||||||||||||||||||||||||||||||||
Private Equity(2) | — | — | 1,284 | 1,284 | — | 2 | 51 | 53 | — | — | 271 | 271 | ||||||||||||||||||||||||||||||||||||||
Hybrids(3) | — | — | 3 | 3 | 114 | 2,466 | 43 | 2,623 | — | — | 1 | 1 | ||||||||||||||||||||||||||||||||||||||
Hedge Funds(4) | — | 346 | 263 | 609 | — | 103 | 285 | 388 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||
Real Estate Funds | — | — | — | — | 220 | 277 | 543 | 1,040 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||
Insurance Group Annuity Contracts | — | — | — | — | — | 44 | 79 | 123 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||
Common Collective Trusts and 103-12 Investment Entities(5) | — | 854 | — | 854 | — | — | — | — | — | 55 | — | 55 | ||||||||||||||||||||||||||||||||||||||
Registered Investment Companies(6) | 68 | 314 | — | 382 | — | — | — | — | 86 | 1 | — | 87 | ||||||||||||||||||||||||||||||||||||||
Cash and Cash Equivalents(7) | 161 | 66 | — | 227 | 573 | — | — | 573 | — | 6 | — | 6 | ||||||||||||||||||||||||||||||||||||||
Other(8) | (24 | ) | 95 | — | 71 | 79 | 130 | 2 | 211 | (4 | ) | — | — | (4 | ) | |||||||||||||||||||||||||||||||||||
Total | $ | 3,260 | $ | 7,162 | $ | 1,557 | $ | 11,979 | $ | 7,971 | $ | 8,516 | $ | 1,083 | $ | 17,570 | $ | 82 | $ | 104 | $ | 272 | $ | 458 | ||||||||||||||||||||||||||
-1 | Includes debt issued by national, state and local governments and agencies. | |||||||||||||||||||||||||||||||||||||||||||||||||
-2 | Includes limited partnerships such as equity, buyout, venture capital, real estate and other similar funds that invest in the U.S. and internationally where foreign currencies are hedged. | |||||||||||||||||||||||||||||||||||||||||||||||||
-3 | Includes a fund that invests in both private and public equities primarily in the U.S. 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 limited partnerships that invest both long and short primarily in common stocks and credit, relative value, event driven equity, distressed debt and macro strategies. Management of the hedge funds has the ability to shift investments from value to growth strategies, from small to large capitalization stocks and bonds, and from a net long position to a net short position. | |||||||||||||||||||||||||||||||||||||||||||||||||
-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 Registered Investment Entities. | |||||||||||||||||||||||||||||||||||||||||||||||||
-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 were as follows: | ||||||||||||||||||||||||||||||||||||||||||||||||||
For the fiscal year ended October 31, 2014 | ||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Defined Benefit Plans | Non-U.S. Defined Benefit Plans | Post-Retirement | ||||||||||||||||||||||||||||||||||||||||||||||||
Benefit Plans | ||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Alternative | Equity | Alternative | Alternative | ||||||||||||||||||||||||||||||||||||||||||||||
Securities | Investments | Investments | Investments | |||||||||||||||||||||||||||||||||||||||||||||||
Corporate | Private | Hybrids | Hedge | Total | Non U.S. | Private | Hedge | Hybrids | Real | Insurance | Other | Total | Private | Hybrids | Total | |||||||||||||||||||||||||||||||||||
Debt | Equity | Funds | Equities | Equity | Funds | Estate | Group | Equity | ||||||||||||||||||||||||||||||||||||||||||
Annuities | ||||||||||||||||||||||||||||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance at October 31, 2013 | $ | — | $ | 1,250 | $ | 2 | $ | 113 | $ | 1,365 | $ | 77 | $ | 48 | $ | 204 | $ | — | $ | 325 | $ | 81 | $ | 2 | $ | 737 | $ | 234 | $ | 1 | $ | 235 | ||||||||||||||||||
Actual return on plan assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Relating to assets still held at the reporting date | — | 92 | 1 | 10 | 103 | 3 | 2 | 14 | — | 46 | (8 | ) | — | 57 | 51 | — | 51 | |||||||||||||||||||||||||||||||||
Relating to assets sold during the period | — | 169 | — | — | 169 | — | 2 | (1 | ) | — | — | — | — | 1 | 21 | — | 21 | |||||||||||||||||||||||||||||||||
Purchases, sales, and settlements (net) | 7 | (227 | ) | — | 140 | (80 | ) | — | (1 | ) | 68 | 43 | 108 | (2 | ) | — | 216 | (35 | ) | — | (35 | ) | ||||||||||||||||||||||||||||
Transfers in and/or out of Level 3 | — | — | — | — | — | — | — | — | — | 64 | 8 | — | 72 | — | — | — | ||||||||||||||||||||||||||||||||||
Ending balance at October 31, 2014 | $ | 7 | $ | 1,284 | $ | 3 | $ | 263 | $ | 1,557 | $ | 80 | $ | 51 | $ | 285 | $ | 43 | $ | 543 | $ | 79 | $ | 2 | $ | 1,083 | $ | 271 | $ | 1 | $ | 272 | ||||||||||||||||||
The table below sets forth the fair value of plan assets by asset category within the fair value hierarchy. | ||||||||||||||||||||||||||||||||||||||||||||||||||
As of October 31, 2013 | ||||||||||||||||||||||||||||||||||||||||||||||||||
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(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 such as equity, buyout, venture capital, real estate and other similar funds that invest in the U.S. and internationally where foreign currencies are hedged. | |||||||||||||||||||||||||||||||||||||||||||||||||
-3 | Includes a fund that invests in both private and public equities primarily in the U.S. 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 limited partnerships that invest both long and short primarily in common stocks and credit, relative value, event driven equity, distressed debt and macro strategies. Management of the hedge funds has the ability to shift investments from value to growth strategies, from small to large capitalization stocks and bonds, and from a net long position to a net short position. | |||||||||||||||||||||||||||||||||||||||||||||||||
-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 Registered Investment Entities. | |||||||||||||||||||||||||||||||||||||||||||||||||
-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 were as follows: | ||||||||||||||||||||||||||||||||||||||||||||||||||
For the fiscal year ended October 31, 2013 | ||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Defined Benefit Plans | Non-U.S. Defined Benefit Plans | Post-Retirement | ||||||||||||||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||||||||||||||||||||||||||
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 following is a description of the valuation methodologies used to measure plan assets 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 on observable inputs of comparable market transactions. For corporate and government debt securities traded on active exchanges, fair value is based on 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 adjusted for cash flows, if necessary. In making such an assessment, a variety of factors are reviewed by management, including, but not limited to, the timeliness of NAV as reported by the asset manager and changes in general economic and market conditions subsequent to the last NAV reported by the asset manager. 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 in either Level 2 or Level 3 of the fair value hierarchy. Common collective trusts, interests 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, including insurance group annuity contracts, 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 Benefit Plans | Non-U.S. Defined | Post-Retirement | ||||||||||||||||||||||||||||||||||||||||||||||||
Benefit Plans | Benefit Plans | |||||||||||||||||||||||||||||||||||||||||||||||||
Plan Assets | Plan Assets | Plan Assets | ||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2014 | 2014 | ||||||||||||||||||||||||||||||||||||||||||||||||
Target | Target | Target | ||||||||||||||||||||||||||||||||||||||||||||||||
Asset Category | Allocation | 2014 | 2013 | Allocation | 2014 | 2013 | Allocation | 2014 | 2013 | |||||||||||||||||||||||||||||||||||||||||
Public equity securities | 31.3 | % | 36.7 | % | 46.8 | % | 48.0 | % | 10.2 | % | 9.5 | % | ||||||||||||||||||||||||||||||||||||||
Private/other equity securities | 15.8 | % | 12.6 | % | 15.2 | % | 7.9 | % | 58.6 | % | 59.1 | % | ||||||||||||||||||||||||||||||||||||||
Real estate and other | 0.6 | % | — | 7.1 | % | 7.5 | % | — | — | |||||||||||||||||||||||||||||||||||||||||
Equity-related investments | 47.5 | % | 47.7 | % | 49.3 | % | 67.7 | % | 69.1 | % | 63.4 | % | 71.1 | % | 68.8 | % | 68.6 | % | ||||||||||||||||||||||||||||||||
Debt securities | 52.5 | % | 49.2 | % | 48.2 | % | 31.6 | % | 27.6 | % | 32.5 | % | 27.0 | % | 27.5 | % | 29.0 | % | ||||||||||||||||||||||||||||||||
Cash | — | 3.1 | % | 2.5 | % | 0.7 | % | 3.3 | % | 4.1 | % | 1.9 | % | 3.7 | % | 2.4 | % | |||||||||||||||||||||||||||||||||
Total | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||||||||||||||||||||||||
Investment Policy | ||||||||||||||||||||||||||||||||||||||||||||||||||
HP's investment strategy is to seek a competitive rate of return relative to an appropriate level of risk depending on the funded status of each plan and the timing of expected benefit payments. The majority of the plans' investment managers employ active investment management strategies with the goal of outperforming the broad markets in which they invest. Risk management practices include diversification across asset classes and investment styles and periodic rebalancing toward asset allocation targets. A number of the plans' investment managers are authorized to utilize derivatives for investment or liability exposures, and HP may utilize derivatives to 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 U.S., 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 2015, HP expects to contribute approximately $686 million to its non-U.S. pension plans and approximately $35 million to cover benefit payments to U.S. non-qualified plan participants. HP expects to pay approximately $47 million to cover benefit claims for HP's post-retirement benefit plans. HP's policy is to fund its pension plans so that it makes at least the minimum contribution required by local government, funding and taxing authorities. | ||||||||||||||||||||||||||||||||||||||||||||||||||
Estimated Future Benefits Payments | ||||||||||||||||||||||||||||||||||||||||||||||||||
As of October 31, 2014, HP estimates that the future benefits payments for the retirement and post-retirement plans are as follows: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Fiscal year | U.S. Defined | Non-U.S. | Post-Retirement | |||||||||||||||||||||||||||||||||||||||||||||||
Benefit Plans | Defined | Benefit Plans | ||||||||||||||||||||||||||||||||||||||||||||||||
Benefit Plans | ||||||||||||||||||||||||||||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||||||||||||||||||||||||||
2015 | $ | 801 | $ | 567 | $ | 91 | ||||||||||||||||||||||||||||||||||||||||||||
2016 | 588 | 528 | 94 | |||||||||||||||||||||||||||||||||||||||||||||||
2017 | 613 | 560 | 82 | |||||||||||||||||||||||||||||||||||||||||||||||
2018 | 648 | 606 | 71 | |||||||||||||||||||||||||||||||||||||||||||||||
2019 | 694 | 659 | 68 | |||||||||||||||||||||||||||||||||||||||||||||||
Next five fiscal years to October 31, 2024 | 3,850 | 3,980 | 278 | |||||||||||||||||||||||||||||||||||||||||||||||
StockBased_Compensation
Stock-Based Compensation | 12 Months Ended | |||||||||||||||||||||||||||||||||||||
Oct. 31, 2014 | ||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation | ||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation | Note 5: 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: | ||||||||||||||||||||||||||||||||||||||
For the fiscal years ended | ||||||||||||||||||||||||||||||||||||||
October 31 | ||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | $ | 560 | $ | 500 | $ | 635 | ||||||||||||||||||||||||||||||||
Income tax benefit | (179 | ) | (158 | ) | (197 | ) | ||||||||||||||||||||||||||||||||
Stock-based compensation expense, net of tax | $ | 381 | $ | 342 | $ | 438 | ||||||||||||||||||||||||||||||||
Cash received from option exercises and purchases under the Hewlett-Packard Company 2011 Employee Stock Purchase Plan (the "2011 ESPP") was $0.3 billion in fiscal 2014, $0.3 billion in fiscal 2013 and $0.7 billion in fiscal 2012. The benefit realized for the tax deduction from option exercises in fiscal 2014, 2013 and 2012 was $51 million, $13 million and $57 million, respectively. | ||||||||||||||||||||||||||||||||||||||
Stock-Based Incentive Compensation Plans | ||||||||||||||||||||||||||||||||||||||
HP's stock-based incentive compensation plans include equity plans adopted in 2004, 2000 and 1995, as amended ("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 awards. Employees meeting certain employment qualifications are eligible to receive stock-based awards. | ||||||||||||||||||||||||||||||||||||||
Restricted stock awards are non-vested stock awards that may include grants of restricted stock or restricted stock units. Restricted stock awards and cash-settled awards are generally subject to forfeiture if employment terminates prior to the lapse of the restrictions. Such awards generally vest one to three years from the date of grant. During the vesting period, ownership of the restricted stock cannot be transferred. Restricted stock has the same dividend and voting rights as common stock and is considered to be issued and outstanding upon grant. The dividends paid on restricted stock are non-forfeitable. Restricted stock units have forfeitable dividend equivalent rights equal to the dividend paid on common stock. Restricted stock units do not have the voting rights of common stock, and the shares underlying restricted stock units are not considered issued and outstanding upon grant. However, shares underlying restricted stock units are included in the calculation of diluted net 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 closing price of HP's stock on the option grant date. The majority of 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 on the satisfaction of both service and market conditions prior to the expiration of the awards. | ||||||||||||||||||||||||||||||||||||||
Restricted Stock Awards | ||||||||||||||||||||||||||||||||||||||
A summary of restricted stock awards activity is as follows: | ||||||||||||||||||||||||||||||||||||||
As of October 31 | ||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||||
Shares | Weighted- | Shares | Weighted- | Shares | Weighted- | |||||||||||||||||||||||||||||||||
Average | Average | Average | ||||||||||||||||||||||||||||||||||||
Grant Date | Grant Date | Grant Date | ||||||||||||||||||||||||||||||||||||
Fair Value | Fair Value | Fair Value | ||||||||||||||||||||||||||||||||||||
Per Share | Per Share | Per Share | ||||||||||||||||||||||||||||||||||||
In thousands | In thousands | In thousands | ||||||||||||||||||||||||||||||||||||
Outstanding at beginning of year | 32,262 | $ | 21 | 25,532 | $ | 31 | 16,813 | $ | 39 | |||||||||||||||||||||||||||||
Granted | 26,036 | $ | 28 | 20,707 | $ | 15 | 20,316 | $ | 27 | |||||||||||||||||||||||||||||
Vested | (14,253 | ) | $ | 24 | (10,966 | ) | $ | 33 | (8,521 | ) | $ | 38 | ||||||||||||||||||||||||||
Forfeited | (3,237 | ) | $ | 22 | (3,011 | ) | $ | 24 | (3,076 | ) | $ | 34 | ||||||||||||||||||||||||||
Outstanding at end of year | 40,808 | $ | 24 | 32,262 | $ | 21 | 25,532 | $ | 31 | |||||||||||||||||||||||||||||
The total grant date fair value of restricted stock awards vested in fiscal 2014, 2013 and 2012 was $234 million, $247 million and $229 million, respectively, net of taxes. As of October 31, 2014, total unrecognized pre-tax stock-based compensation expense related to non-vested restricted stock awards was $511 million, which is expected to be recognized over the remaining weighted-average vesting period of 1.4 years. | ||||||||||||||||||||||||||||||||||||||
Stock Options | ||||||||||||||||||||||||||||||||||||||
HP utilizes the Black-Scholes-Merton option pricing formula to estimate the fair value of stock options subject to service-based vesting conditions. HP estimates the fair value of stock options subject to performance-contingent vesting conditions using a combination of a Monte Carlo simulation model and a lattice model as these awards contain market conditions. The weighted-average fair value and the assumptions used to measure fair value were as follows: | ||||||||||||||||||||||||||||||||||||||
For the fiscal years ended October 31 | ||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||||
Weighted-average fair value(1) | $ | $ | $ | |||||||||||||||||||||||||||||||||||
7 | 4 | 9 | ||||||||||||||||||||||||||||||||||||
Expected volatility(2) | 33.1 | % | 41.7 | % | 41.9 | % | ||||||||||||||||||||||||||||||||
Risk-free interest rate(3) | 1.8 | % | 1.1 | % | 1.2 | % | ||||||||||||||||||||||||||||||||
Expected dividend yield(4) | 2.1 | % | 3.6 | % | 1.8 | % | ||||||||||||||||||||||||||||||||
Expected term in years(5) | 5.7 | 5.9 | 5.6 | |||||||||||||||||||||||||||||||||||
-1 | The weighted-average fair value was based on stock options granted during the period. | |||||||||||||||||||||||||||||||||||||
-2 | For awards granted in fiscal 2014, expected volatility for awards subject to service-based vesting was estimated using the implied volatility derived from options traded on HP's common stock, whereas for performance-contingent awards, expected volatility was estimated using the historical volatility of HP's common stock. For awards granted in fiscal 2013 and fiscal 2012, expected volatility for all awards was estimated using the implied volatility derived from options traded on HP's common stock. | |||||||||||||||||||||||||||||||||||||
-3 | The risk-free interest rate was estimated based on the yield on U.S. Treasury zero-coupon issues. | |||||||||||||||||||||||||||||||||||||
-4 | The expected dividend yield represents a constant dividend yield applied for the duration of the expected term of the award. | |||||||||||||||||||||||||||||||||||||
-5 | For awards subject to service-based vesting, the expected term was estimated using historical exercise and post-vesting termination patterns; and for performance-contingent awards, the expected term represents an output from the lattice model. | |||||||||||||||||||||||||||||||||||||
A summary of stock option activity is as follows: | ||||||||||||||||||||||||||||||||||||||
As of October 31 | ||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||||
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 | 84,042 | $ | 27 | 87,296 | $ | 29 | 120,243 | $ | 28 | |||||||||||||||||||||||||||||
Granted | 9,575 | $ | 28 | 25,785 | $ | 15 | 7,529 | $ | 27 | |||||||||||||||||||||||||||||
Exercised | (11,145 | ) | $ | 18 | (10,063 | ) | $ | 19 | (29,683 | ) | $ | 20 | ||||||||||||||||||||||||||
Forfeited/cancelled/expired | (24,619 | ) | $ | 31 | (18,976 | ) | $ | 25 | (10,793 | ) | $ | 35 | ||||||||||||||||||||||||||
Outstanding at end of year | 57,853 | $ | 27 | 4.3 | $ | 629 | 84,042 | $ | 27 | 3.9 | $ | 303 | 87,296 | $ | 29 | 3 | $ | 15 | ||||||||||||||||||||
Vested and expected to vest at end of year | 54,166 | $ | 27 | 4.1 | $ | 571 | 80,004 | $ | 27 | 3.7 | $ | 274 | 85,935 | $ | 29 | 2.9 | $ | 15 | ||||||||||||||||||||
Exercisable at end of year | 30,459 | $ | 33 | 2.3 | $ | 197 | 49,825 | $ | 33 | 1.8 | $ | 58 | 68,437 | $ | 31 | 1.9 | $ | 12 | ||||||||||||||||||||
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 the last trading day of fiscal 2014, 2013 and 2012. The aggregate intrinsic value is the difference between HP's closing stock price on the last trading day of the fiscal year and the exercise price, multiplied by the number of in-the-money options. The total intrinsic value of options exercised in fiscal 2014, 2013 and 2012 was $151 million, $36 million and $176 million, respectively. The total grant date fair value of options vested in fiscal 2014, 2013 and 2012 was $53 million, $64 million and $104 million, respectively, net of taxes. | ||||||||||||||||||||||||||||||||||||||
The following table summarizes significant ranges of outstanding and exercisable stock options: | ||||||||||||||||||||||||||||||||||||||
As of October 31, 2014 | ||||||||||||||||||||||||||||||||||||||
Options Outstanding | Options Exercisable | |||||||||||||||||||||||||||||||||||||
Range of Exercise Prices | Shares | Weighted- | Weighted- | Shares | Weighted- | |||||||||||||||||||||||||||||||||
Outstanding | Average | Average | Exercisable | Average | ||||||||||||||||||||||||||||||||||
Remaining | Exercise | Exercise | ||||||||||||||||||||||||||||||||||||
Contractual Term | Price | Price | ||||||||||||||||||||||||||||||||||||
In thousands | In years | In thousands | ||||||||||||||||||||||||||||||||||||
$0-$9.99 | 324 | 3.7 | $ | 7 | 323 | $ | 7 | |||||||||||||||||||||||||||||||
$10-$19.99 | 18,387 | 5.8 | $ | 14 | 3,620 | $ | 14 | |||||||||||||||||||||||||||||||
$20-$29.99 | 21,077 | 5.8 | $ | 26 | 9,358 | $ | 25 | |||||||||||||||||||||||||||||||
$30-$39.99 | 2,502 | 3.5 | $ | 36 | 1,628 | $ | 36 | |||||||||||||||||||||||||||||||
$40-$49.99 | 14,910 | 0.4 | $ | 43 | 14,877 | $ | 43 | |||||||||||||||||||||||||||||||
$50-$59.99 | 511 | 2.3 | $ | 52 | 511 | $ | 52 | |||||||||||||||||||||||||||||||
$60 and over | 142 | 0.1 | $ | 71 | 142 | $ | 71 | |||||||||||||||||||||||||||||||
57,853 | 4.3 | $ | 27 | 30,459 | $ | 33 | ||||||||||||||||||||||||||||||||
As of October 31, 2014, total unrecognized pre-tax stock-based compensation expense related to stock options was $61 million, which is expected to be recognized over a weighted-average vesting period of 2.0 years. | ||||||||||||||||||||||||||||||||||||||
Employee Stock Purchase Plan | ||||||||||||||||||||||||||||||||||||||
HP sponsors 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. | ||||||||||||||||||||||||||||||||||||||
Pursuant to the terms of the 2011 ESPP, employees purchase stock under the 2011 ESPP at a price equal to 95% of HP's closing stock price on the purchase date. No stock-based compensation expense was recorded in connection with those purchases because the criteria of a non-compensatory plan were met. | ||||||||||||||||||||||||||||||||||||||
Shares Reserved | ||||||||||||||||||||||||||||||||||||||
Shares available for future grant and shares reserved for future issuance under the stock-based incentive compensation plans and the 2011 ESPP were as follows: | ||||||||||||||||||||||||||||||||||||||
As of October 31 | ||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||||
In thousands | ||||||||||||||||||||||||||||||||||||||
Shares available for future grant | 246,852 | 300,984 | 152,837 | |||||||||||||||||||||||||||||||||||
Shares reserved for future issuance | 344,848 | 417,642 | 270,498 | |||||||||||||||||||||||||||||||||||
Taxes_on_Earnings
Taxes on Earnings | 12 Months Ended | |||||||||||||
Oct. 31, 2014 | ||||||||||||||
Income Taxes | ||||||||||||||
Taxes on Earnings | Note 6: Taxes on Earnings | |||||||||||||
Provision for Taxes | ||||||||||||||
The domestic and foreign components of earnings (loss) before taxes were as follows: | ||||||||||||||
For the fiscal years ended | ||||||||||||||
October 31 | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
In millions | ||||||||||||||
U.S. | $ | 2,565 | $ | 2,618 | $ | (3,192 | ) | |||||||
Non-U.S. | 3,992 | 3,892 | (8,741 | ) | ||||||||||
$ | 6,557 | $ | 6,510 | $ | (11,933 | ) | ||||||||
The provision for (benefit from) taxes on earnings was as follows: | ||||||||||||||
For the fiscal years ended | ||||||||||||||
October 31 | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
In millions | ||||||||||||||
U.S. federal taxes: | ||||||||||||||
Current | $ | 381 | $ | 475 | $ | 330 | ||||||||
Deferred | 210 | (666 | ) | 81 | ||||||||||
Non-U.S. taxes: | ||||||||||||||
Current | 984 | 1,275 | 1,139 | |||||||||||
Deferred | (42 | ) | 89 | (787 | ) | |||||||||
State taxes: | ||||||||||||||
Current | 212 | 57 | (41 | ) | ||||||||||
Deferred | (201 | ) | 167 | (5 | ) | |||||||||
$ | 1,544 | $ | 1,397 | $ | 717 | |||||||||
The differences between the U.S. federal statutory income tax rate and HP's effective tax rate were as follows: | ||||||||||||||
For the fiscal years ended October 31 | ||||||||||||||
2014 | 2013 | 2012(1) | ||||||||||||
U.S. federal statutory income tax rate | 35.0 | % | 35.0 | % | 35.0 | % | ||||||||
State income taxes, net of federal tax benefit | 0.4 | % | 0.1 | % | 0.5 | % | ||||||||
Lower rates in other jurisdictions, net | (12.9 | )% | (24.5 | )% | 13.9 | % | ||||||||
Valuation allowance | 1.7 | % | 3.8 | % | (14.0 | )% | ||||||||
Nondeductible goodwill | — | — | (40.3 | )% | ||||||||||
Uncertain tax positions | (2.3 | )% | 4.1 | % | (1.4 | )% | ||||||||
Other, net | 1.6 | % | 3.0 | % | 0.3 | % | ||||||||
23.5 | % | 21.5 | % | (6.0 | )% | |||||||||
-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 impact on HP's effective tax rate in the periods presented include Puerto Rico, Singapore, Netherlands, China and Ireland. HP plans to reinvest some of the earnings of these jurisdictions indefinitely outside the U.S. and therefore has not provided U.S. taxes on those indefinitely reinvested earnings. | ||||||||||||||
In fiscal 2014, HP recorded $53 million of net income tax charges related to items unique to the year. | ||||||||||||||
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 ES segment, 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. | ||||||||||||||
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 $1.2 billion ($0.61 diluted net EPS) in fiscal 2014, $827 million ($0.42 diluted net EPS) in fiscal 2013 and $900 million ($0.46 diluted net EPS) in fiscal 2012. | ||||||||||||||
Uncertain Tax Positions | ||||||||||||||
A reconciliation of unrecognized tax benefits is as follows: | ||||||||||||||
As of October 31 | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
In millions | ||||||||||||||
Balance at beginning of year | $ | 3,484 | $ | 2,573 | $ | 2,118 | ||||||||
Increases: | ||||||||||||||
For current year's tax positions | 304 | 290 | 209 | |||||||||||
For prior years' tax positions | 593 | 997 | 651 | |||||||||||
Decreases: | ||||||||||||||
For prior years' tax positions | (125 | ) | (146 | ) | (321 | ) | ||||||||
Statute of limitations expiration | (46 | ) | (11 | ) | (1 | ) | ||||||||
Settlements with taxing authorities | (82 | ) | (219 | ) | (83 | ) | ||||||||
Balance at end of year | $ | 4,128 | $ | 3,484 | $ | 2,573 | ||||||||
Up to $2.2 billion, $1.9 billion and $1.4 billion of HP's unrecognized tax benefits at October 31, 2014, 2013 and 2012, respectively, would affect HP's effective tax rate if realized. | ||||||||||||||
HP recognizes interest income from favorable settlements and interest expense and penalties accrued on unrecognized tax benefits in Provision for taxes in the Consolidated Statements of Earnings. HP had accrued $254 million and $196 million for interest and penalties as of October 31, 2014 and October 31, 2013, respectively. | ||||||||||||||
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 $1.4 billion within the next 12 months. | ||||||||||||||
HP is subject to income tax in the U.S. and approximately 105 other countries and is subject to routine corporate income tax audits in many of these jurisdictions. In addition, HP is subject to numerous ongoing audits by federal, state and foreign tax authorities. The IRS is conducting an audit of HP's 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 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 $445 million. In addition, HP expects the IRS to issue an RAR for 2009 relating to certain tax positions taken on the filed tax returns, including matters related to the U.S. taxation of certain intercompany loans. While the RAR may be material in amount, HP believes it has valid positions supporting its tax returns and, if necessary, it will vigorously defend such matters. | ||||||||||||||
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 for which HP has filed a formal Notice of Appeal. The Court proceedings are expected to begin in fiscal 2015. | ||||||||||||||
Pre-acquisition tax years of HP's U.S. group of subsidiaries providing enterprise services through 2004 have been audited by the IRS, and all proposed adjustments have been resolved. RARs have been received for tax years 2005, 2006, 2007 and the short period ended August 26, 2008, proposing total tax deficiencies of $274 million. HP is contesting certain of these issues. | ||||||||||||||
The IRS began an audit in fiscal 2013 of the 2010 income tax return for 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 federal, state and foreign tax audits. HP regularly assesses the likely outcomes of these audits in order to determine the appropriateness of HP's tax provision. HP adjusts its uncertain tax positions to reflect the impact of negotiations, settlements, rulings, advice of legal counsel, and other information and events pertaining to a particular audit. However, income tax audits are inherently unpredictable and there can be no assurance that HP will accurately predict the outcome of these audits. The amounts ultimately paid on resolution of an audit could be materially different from the amounts previously included in the Provision for taxes and therefore the resolution of one or more of these uncertainties in any particular period could have a material impact on net income or cash flows. | ||||||||||||||
HP has not provided for U.S. federal income and foreign withholding taxes on $42.9 billion of undistributed earnings from non-U.S. operations as of October 31, 2014 because HP intends to reinvest such earnings indefinitely outside of the U.S. 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 HP 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: | ||||||||||||||
As of October 31 | ||||||||||||||
2014 | 2013 | |||||||||||||
Deferred | Deferred | Deferred | Deferred | |||||||||||
Tax | Tax | Tax | Tax | |||||||||||
Assets | Liabilities | Assets | Liabilities | |||||||||||
In millions | ||||||||||||||
Loss carryforwards | $ | 9,476 | $ | — | $ | 9,807 | $ | — | ||||||
Credit carryforwards | 2,377 | — | 4,261 | — | ||||||||||
Unremitted earnings of foreign subsidiaries | — | 7,828 | — | 7,469 | ||||||||||
Inventory valuation | 152 | 8 | 128 | 13 | ||||||||||
Intercompany transactions—profit in inventory | 136 | — | 125 | — | ||||||||||
Intercompany transactions—excluding inventory | 4,403 | — | 1,923 | — | ||||||||||
Fixed assets | 383 | 74 | 289 | 72 | ||||||||||
Warranty | 616 | — | 622 | — | ||||||||||
Employee and retiree benefits | 2,790 | 57 | 2,350 | 11 | ||||||||||
Accounts receivable allowance | 107 | 1 | 185 | 1 | ||||||||||
Intangible assets | 212 | 596 | 224 | 886 | ||||||||||
Restructuring | 354 | — | 340 | — | ||||||||||
Deferred revenue | 1,143 | 12 | 1,119 | 19 | ||||||||||
Other | 1,573 | 1,145 | 1,443 | 759 | ||||||||||
Gross deferred tax assets and liabilities | 23,722 | 9,721 | 22,816 | 9,230 | ||||||||||
Valuation allowance | (11,915 | ) | — | (11,390 | ) | — | ||||||||
Net deferred tax assets and liabilities | $ | 11,807 | $ | 9,721 | $ | 11,426 | $ | 9,230 | ||||||
Current and long-term deferred tax assets and liabilities included in the Consolidated Balance Sheets as follows: | ||||||||||||||
As of October 31 | ||||||||||||||
2014 | 2013 | |||||||||||||
In millions | ||||||||||||||
Current deferred tax assets | $ | 2,754 | $ | 3,893 | ||||||||||
Current deferred tax liabilities | (284 | ) | (375 | ) | ||||||||||
Long-term deferred tax assets | 740 | 1,346 | ||||||||||||
Long-term deferred tax liabilities | (1,124 | ) | (2,668 | ) | ||||||||||
Net deferred tax assets net of deferred tax liabilities | $ | 2,086 | $ | 2,196 | ||||||||||
Tax deficits of approximately $43 million, $149 million and $175 million were recorded as a result of employee stock program activity and exercise of employee stock options, as a decrease in stockholders' equity in fiscal 2014, 2013 and 2012, respectively. | ||||||||||||||
HP periodically engages in intercompany licensing arrangements that may result in advance payments between subsidiaries in different tax jurisdictions. When the local tax treatment of the intercompany licensing arrangements differs from their U.S. GAAP treatment, deferred taxes are recognized. During fiscal 2014, HP executed a multi-year intercompany licensing arrangement on which advanced royalty payments of $10.4 billion were received in the U.S., the result of which was the recognition of net U.S. long-term deferred tax assets of $1.3 billion. The remaining intercompany royalty revenues of $9.9 billion will be recognized over the life of the arrangement through 2029 in the respective legal entities and eliminated in consolidation. The amortization expense related to the licensing rights will also be eliminated in consolidation. The decrease in deferred tax assets for credit carryforwards and increase in deferred tax assets for intercompany transactions excluding inventory include the deferred tax attributable to this transaction. This results in an increase in long-term deferred tax assets which is presented as a component of HP's long-term deferred tax liabilities due to the effects of jurisdictional netting. | ||||||||||||||
As of October 31, 2014, HP had $858 million, $4.2 billion and $29.7 billion of federal, state and foreign net operating loss carryforwards, respectively. Amounts included in federal net operating loss carryforwards will begin to expire in fiscal 2021 and amounts included in state and foreign net operating loss carryforwards will begin to expire in 2015. HP also has a capital loss carryforward of approximately $272 million which will expire in fiscal 2015. HP has provided a valuation allowance of $133 million and $8.7 billion for deferred tax assets related to state and foreign net operating losses carryforwards, respectively and $104 million for deferred tax assets related to capital loss carryforwards that HP does not expect to realize. | ||||||||||||||
As of October 31, 2014, HP had recorded deferred tax assets for various tax credit carryforwards as follows: | ||||||||||||||
Carryforward | Valuation | Initial | ||||||||||||
Allowance | Year of | |||||||||||||
Expiration | ||||||||||||||
In millions | ||||||||||||||
U.S. foreign tax credits | $ | 1,321 | $ | 47 | 2021 | |||||||||
U.S. research and development and other credits | 662 | — | 2018 | |||||||||||
Tax credits in state and foreign jurisdictions | 394 | 204 | 2015 | |||||||||||
Balance at end of year | $ | 2,377 | $ | 251 | ||||||||||
Deferred Tax Asset Valuation Allowance | ||||||||||||||
The deferred tax asset valuation allowance and changes were as follows: | ||||||||||||||
As of October 31 | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
In millions | ||||||||||||||
Balance at beginning of year | $ | 11,390 | $ | 10,223 | $ | 9,057 | ||||||||
Income tax expense | 184 | 1,644 | 865 | |||||||||||
Other comprehensive income, currency translation and charges to other accounts | 341 | (477 | ) | 301 | ||||||||||
Balance at end of year | $ | 11,915 | $ | 11,390 | $ | 10,223 | ||||||||
Total valuation allowances increased by $525 million and $1.2 billion in fiscal 2014 and 2013, respectively. These increases were associated primarily with foreign net operating losses. | ||||||||||||||
Balance_Sheet_Details
Balance Sheet Details | 12 Months Ended | ||||||||||
Oct. 31, 2014 | |||||||||||
Balance Sheet Details | |||||||||||
Balance Sheet Details | Note 7: Balance Sheet Details | ||||||||||
Balance sheet details were as follows: | |||||||||||
Accounts Receivable, Net | |||||||||||
As of October 31 | |||||||||||
2014 | 2013 | ||||||||||
In millions | |||||||||||
Accounts receivable | $ | 14,064 | $ | 16,208 | |||||||
Allowance for doubtful accounts | (232 | ) | (332 | ) | |||||||
$ | 13,832 | $ | 15,876 | ||||||||
The allowance for doubtful accounts related to accounts receivable and changes were as follows: | |||||||||||
As of October 31 | |||||||||||
2014 | 2013 | 2012 | |||||||||
In millions | |||||||||||
Balance at beginning of year | $ | 332 | $ | 464 | $ | 470 | |||||
Provision for doubtful accounts | 25 | 23 | 100 | ||||||||
Deductions, net of recoveries | (125 | ) | (155 | ) | (106 | ) | |||||
Balance at end of year | $ | 232 | $ | 332 | $ | 464 | |||||
HP has third-party revolving short-term financing arrangements intended to facilitate the working capital requirements of certain customers. In the second quarter of fiscal 2014, HP expanded its revolving short-term financing arrangements, adding $1.6 billion of capacity. The maximum, utilized and available program capacity under these revolving short-term financing arrangements was as follows: | |||||||||||
As of October 31 | |||||||||||
2014 | 2013 | ||||||||||
In millions | |||||||||||
Non-recourse arrangements: | |||||||||||
Maximum program capacity | $ | 1,083 | $ | 764 | |||||||
Utilized capacity(1) | (613 | ) | (314 | ) | |||||||
Available capacity | $ | 470 | $ | 450 | |||||||
Partial-recourse arrangements: | |||||||||||
Maximum program capacity | $ | 1,877 | $ | 631 | |||||||
Utilized capacity(1) | (1,500 | ) | (454 | ) | |||||||
Available capacity | $ | 377 | $ | 177 | |||||||
Total arrangements: | |||||||||||
Maximum program capacity | $ | 2,960 | $ | 1,395 | |||||||
Utilized capacity(1) | (2,113 | ) | (768 | ) | |||||||
Available capacity | $ | 847 | $ | 627 | |||||||
-1 | Utilized capacity represents the receivables sold to third parties, but not collected from the customer by the third parties. Transferred trade receivables included in the utilized capacity that HP has not collected from third parties are as follows: | ||||||||||
As of October 31 | |||||||||||
2014 | 2013 | ||||||||||
In millions | |||||||||||
Non-recourse arrangements | $ | 78 | $ | 54 | |||||||
Partial-recourse arrangements | 381 | 118 | |||||||||
Total arrangements | $ | 459 | $ | 172 | |||||||
The activity related to HP's revolving short-term financing arrangements was as follows: | |||||||||||
As of October 31 | |||||||||||
2014 | 2013 | 2012 | |||||||||
In millions | |||||||||||
Balance at beginning of period(1) | $ | 172 | $ | 228 | $ | 245 | |||||
Trade receivables sold(2) | 9,627 | 4,241 | 3,510 | ||||||||
Cash receipts(2) | (9,306 | ) | (4,305 | ) | (3,510 | ) | |||||
Foreign currency and other | (34 | ) | 8 | (17 | ) | ||||||
Balance at end of period(1) | $ | 459 | $ | 172 | $ | 228 | |||||
-1 | Beginning and ending balance represents amounts for trade receivables sold but not yet collected. | ||||||||||
-2 | HP has revised the presentation for the trade receivables sold and the cash received under the short-term financing arrangements for the fiscal years ended October 31, 2013 and 2012 in order to present comparable information with the current year period. | ||||||||||
Inventory | |||||||||||
As of October 31 | |||||||||||
2014 | 2013 | ||||||||||
In millions | |||||||||||
Finished goods | $ | 3,973 | $ | 3,847 | |||||||
Purchased parts and fabricated assemblies | 2,442 | 2,199 | |||||||||
$ | 6,415 | $ | 6,046 | ||||||||
Other Current Assets | |||||||||||
As of October 31 | |||||||||||
2014 | 2013 | ||||||||||
In millions | |||||||||||
Deferred tax assets—short-term | $ | 2,754 | $ | 3,893 | |||||||
Value-added taxes receivable | 2,169 | 2,425 | |||||||||
Supplier and other receivables | 2,378 | 2,579 | |||||||||
Prepaid and other current assets | 4,518 | 4,238 | |||||||||
$ | 11,819 | $ | 13,135 | ||||||||
Property, Plant and Equipment | |||||||||||
As of October 31 | |||||||||||
2014 | 2013 | ||||||||||
In millions | |||||||||||
Land | $ | 540 | $ | 626 | |||||||
Buildings and leasehold improvements | 9,048 | 8,942 | |||||||||
Machinery and equipment, including equipment held for lease | 16,664 | 16,565 | |||||||||
26,252 | 26,133 | ||||||||||
Accumulated depreciation | (14,912 | ) | (14,670 | ) | |||||||
$ | 11,340 | $ | 11,463 | ||||||||
Depreciation expense was $3.3 billion, $3.2 billion and $3.3 billion in fiscal 2014, 2013 and 2012, respectively. The change in gross property, plant and equipment was due primarily to purchases of $3.9 billion, which were partially offset by sales and retirements totaling $3.5 billion. Accumulated depreciation associated with the assets sold and retired in fiscal 2014 was $2.9 billion. | |||||||||||
Long-Term Financing Receivables and Other Assets | |||||||||||
As of October 31 | |||||||||||
2014 | 2013 | ||||||||||
In millions | |||||||||||
Financing receivables, net | $ | 3,613 | $ | 3,878 | |||||||
Deferred tax assets—long-term | 740 | 1,346 | |||||||||
Deferred costs—long-term | 755 | 999 | |||||||||
Other | 3,346 | 3,333 | |||||||||
$ | 8,454 | $ | 9,556 | ||||||||
Other Accrued Liabilities | |||||||||||
As of October 31 | |||||||||||
2014 | 2013 | ||||||||||
In millions | |||||||||||
Accrued taxes—other | $ | 2,269 | $ | 2,703 | |||||||
Warranty | 1,325 | 1,390 | |||||||||
Sales and marketing programs | 2,986 | 2,823 | |||||||||
Other | 5,499 | 5,590 | |||||||||
$ | 12,079 | $ | 12,506 | ||||||||
Other Liabilities | |||||||||||
As of October 31 | |||||||||||
2014 | 2013 | ||||||||||
In millions | |||||||||||
Pension, post-retirement, and post-employment liabilities | $ | 6,379 | $ | 5,098 | |||||||
Deferred revenue—long-term | 3,931 | 3,907 | |||||||||
Deferred tax liability—long-term | 1,124 | 2,668 | |||||||||
Tax liability—long-term | 2,861 | 2,213 | |||||||||
Other long-term liabilities | 2,010 | 2,005 | |||||||||
$ | 16,305 | $ | 15,891 | ||||||||
Financing_Receivables_and_Oper
Financing Receivables and Operating Leases | 12 Months Ended | ||||||||||||||||||||||
Oct. 31, 2014 | |||||||||||||||||||||||
Financing Receivables and Operating Leases | |||||||||||||||||||||||
Financing Receivables and Operating Leases | Note 8: Financing Receivables and Operating Leases | ||||||||||||||||||||||
Financing receivables represent sales-type and direct-financing leases of HP and third-party products. These receivables typically have terms ranging 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 were as follows: | |||||||||||||||||||||||
As of October 31 | |||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||
In millions | |||||||||||||||||||||||
Minimum lease payments receivable | $ | 6,982 | $ | 7,505 | |||||||||||||||||||
Unguaranteed residual value | 235 | 252 | |||||||||||||||||||||
Unearned income | (547 | ) | (604 | ) | |||||||||||||||||||
Financing receivables, gross | 6,670 | 7,153 | |||||||||||||||||||||
Allowance for doubtful accounts | (111 | ) | (131 | ) | |||||||||||||||||||
Financing receivables, net | 6,559 | 7,022 | |||||||||||||||||||||
Less: current portion(1) | (2,946 | ) | (3,144 | ) | |||||||||||||||||||
Amounts due after one year, net(1) | $ | 3,613 | $ | 3,878 | |||||||||||||||||||
-1 | HP includes the current portion in Financing receivables and amounts due after one year, net in Long-term financing receivables and other assets in the accompanying Consolidated Balance Sheets. | ||||||||||||||||||||||
As of October 31, 2014, scheduled maturities of HP's minimum lease payments receivable were as follows for the fiscal years ended October 31: | |||||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | Total | |||||||||||||||||
In millions | |||||||||||||||||||||||
Scheduled maturities of minimum lease payments receivable | $ | 3,220 | $ | 1,959 | $ | 1,112 | $ | 483 | $ | 174 | $ | 34 | $ | 6,982 | |||||||||
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 geographic 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 credit enhancements, such as guarantees, letters of credit or security deposits. | |||||||||||||||||||||||
The credit risk profile of gross financing receivables, based on internally assigned ratings, was as follows: | |||||||||||||||||||||||
As of October 31 | |||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||
In millions | |||||||||||||||||||||||
Risk Rating: | |||||||||||||||||||||||
Low | $ | 3,536 | $ | 3,948 | |||||||||||||||||||
Moderate | 3,022 | 3,084 | |||||||||||||||||||||
High | 112 | 121 | |||||||||||||||||||||
Total | $ | 6,670 | $ | 7,153 | |||||||||||||||||||
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 there is a significant near-term risk of impairment. | |||||||||||||||||||||||
Allowance for Doubtful Accounts | |||||||||||||||||||||||
The allowance for doubtful accounts for financing receivables 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 financing receivables with identified exposures, such as customer defaults, bankruptcy or other events, that make it unlikely HP will recover its investment. 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 considered probable, HP records a specific reserve. HP generally writes off a receivable or records a specific reserve when a receivable becomes 180 days past due, or sooner if HP determines that the receivable is not collectible. | |||||||||||||||||||||||
The allowance for doubtful accounts related to financing receivables and changes were as follows: | |||||||||||||||||||||||
As of October 31 | |||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||
In millions | |||||||||||||||||||||||
Balance at beginning of year | $ | 131 | $ | 149 | $ | 130 | |||||||||||||||||
Provision for doubtful accounts | 30 | 38 | 42 | ||||||||||||||||||||
Deductions, net of recoveries | (50 | ) | (56 | ) | (23 | ) | |||||||||||||||||
Balance at end of year | $ | 111 | $ | 131 | $ | 149 | |||||||||||||||||
The gross financing receivables and related allowance evaluated for loss were as follows: | |||||||||||||||||||||||
As of | |||||||||||||||||||||||
October 31 | |||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||
In millions | |||||||||||||||||||||||
Gross financing receivables collectively evaluated for loss | $ | 6,378 | $ | 6,773 | |||||||||||||||||||
Gross financing receivables individually evaluated for loss | 292 | 380 | |||||||||||||||||||||
Total | $ | 6,670 | $ | 7,153 | |||||||||||||||||||
Allowance for financing receivables collectively evaluated for loss | $ | 92 | $ | 95 | |||||||||||||||||||
Allowance for financing receivables individually evaluated for loss | 19 | 36 | |||||||||||||||||||||
Total | $ | 111 | $ | 131 | |||||||||||||||||||
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, which is suspension of interest accrual, and considers such receivables to be non-performing at the earlier of the time at which full payment of principal and interest becomes doubtful or the receivable becomes 90 days past due. Subsequently, HP may recognize revenue on non-accrual financing receivables as payments are received, which is 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, all cash receipts are applied to the carrying amount of the financing receivable, which is the cost recovery method. In certain circumstances, such as when HP deems a delinquency to be of an administrative nature, financing receivables may accrue interest after becoming 90 days past due. The non-accrual status of a financing receivable may not impact a customer's risk rating. After all of a customer's delinquent principal and interest balances are settled, HP may return the related financing receivable to accrual status. | |||||||||||||||||||||||
The following table summarizes the aging and non-accrual status of gross financing receivables: | |||||||||||||||||||||||
As of | |||||||||||||||||||||||
October 31 | |||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||
In millions | |||||||||||||||||||||||
Billed(1): | |||||||||||||||||||||||
Current 1-30 days | $ | 243 | $ | 217 | |||||||||||||||||||
Past due 31-60 days | 46 | 50 | |||||||||||||||||||||
Past due 61-90 days | 12 | 15 | |||||||||||||||||||||
Past due >90 days | 49 | 46 | |||||||||||||||||||||
Unbilled sales-type and direct-financing lease receivables | 6,320 | 6,825 | |||||||||||||||||||||
Total gross financing receivables | $ | 6,670 | $ | 7,153 | |||||||||||||||||||
Gross financing receivables on non-accrual status(2) | $ | 130 | $ | 199 | |||||||||||||||||||
Gross financing receivables 90 days past due and still accruing interest(2) | $ | 162 | $ | 181 | |||||||||||||||||||
-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 in the Consolidated Balance Sheets were as follows: | |||||||||||||||||||||||
As of | |||||||||||||||||||||||
October 31 | |||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||
In millions | |||||||||||||||||||||||
Equipment leased to customers | $ | 3,977 | $ | 3,822 | |||||||||||||||||||
Accumulated depreciation | (1,382 | ) | (1,452 | ) | |||||||||||||||||||
$ | 2,595 | $ | 2,370 | ||||||||||||||||||||
As of October 31, 2014, minimum future rentals on non-cancelable operating leases related to leased equipment were as follows for the fiscal years ended October 31: | |||||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | Total | |||||||||||||||||
In millions | |||||||||||||||||||||||
Minimum future rentals on non-cancelable operating leases | $ | 1,487 | $ | 958 | $ | 467 | $ | 156 | $ | 50 | $ | 6 | $ | 3,124 | |||||||||
Acquisitions_Goodwill_and_Inta
Acquisitions, Goodwill and Intangible Assets | 12 Months Ended | |||||||||||||||||||||||||
Oct. 31, 2014 | ||||||||||||||||||||||||||
Acquisitions, Goodwill and Intangible Assets | ||||||||||||||||||||||||||
Acquisitions, Goodwill and Intangible Assets. | Note 9: Acquisitions, Goodwill and Intangible Assets | |||||||||||||||||||||||||
Acquisitions | ||||||||||||||||||||||||||
In fiscal 2014, HP completed two acquisitions with a combined purchase price of $55 million, of which $12 million was recorded as goodwill and $25 million was recorded as intangible assets related to these 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 and $48 million of intangible assets related to this acquisition. | ||||||||||||||||||||||||||
Goodwill | ||||||||||||||||||||||||||
Goodwill allocated to HP's reportable segments and changes in the carrying amount of goodwill were as follows: | ||||||||||||||||||||||||||
Personal | Printing | Enterprise | Enterprise | Software | HP | Corporate | Total | |||||||||||||||||||
Systems | Group | Services(3) | Financial | Investments | ||||||||||||||||||||||
Services | ||||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||
Balance at October 31, 2012(1)(2) | $ | 2,588 | $ | 2,591 | $ | 16,825 | $ | — | $ | 8,921 | $ | 144 | $ | — | $ | 31,069 | ||||||||||
Goodwill acquired during the period | — | — | — | 112 | — | — | — | 112 | ||||||||||||||||||
Goodwill adjustments | — | — | 39 | (15 | ) | (81 | ) | — | — | (57 | ) | |||||||||||||||
Balance at October 31, 2013(1)(2) | $ | 2,588 | $ | 2,591 | $ | 16,864 | $ | 97 | $ | 8,840 | $ | 144 | $ | — | $ | 31,124 | ||||||||||
Goodwill acquired during the period | — | — | — | — | 12 | — | — | 12 | ||||||||||||||||||
Goodwill adjustments | — | — | 3 | — | — | — | — | 3 | ||||||||||||||||||
Balance at October 31, 2014(1) | $ | 2,588 | $ | 2,591 | $ | 16,867 | $ | 97 | $ | 8,852 | $ | 144 | $ | — | $ | 31,139 | ||||||||||
-1 | Goodwill is net of accumulated impairment losses of $14.5 billion. Of that amount, $8.0 billion relates to the ES segment, $5.7 billion relates to Software, and the remaining $0.8 billion relates to Corporate Investments. | |||||||||||||||||||||||||
-2 | Effective at the beginning of its first quarter of fiscal 2014, HP implemented certain organizational changes to align its segment financial reporting more closely with its current business structure. As a result of these organizational realignments, HP transferred $126 million of goodwill related to the transfer of the Printing spare and replacement parts business from the EG segment to the Printing segment, $48 million of goodwill related to the transfer of the Personal Systems spare and replacement parts business from the EG segment to the Personal Systems segment, $42 million of goodwill related to the transfer of the Personal Systems trade and warranty support business from the EG segment to the Personal Systems segment and $22 million of goodwill related to the transfer of the HP Exstream business from the Printing segment to the Software segment. See Note 2 for a full description of the segment realignments. | |||||||||||||||||||||||||
-3 | Goodwill relates to the MphasiS Limited reporting unit. | |||||||||||||||||||||||||
Goodwill is tested for impairment at the reporting unit level. At the beginning of its first quarter of fiscal 2014, HP made a change to its reporting units. In connection with continued operational synergies and interdependencies between the Enterprise Servers, Storage and Networking reporting unit and the TS reporting unit within the EG segment, HP combined these reporting units to create the EG reporting unit. As of October 31, 2014, HP's reporting units are consistent with the reportable segments identified in Note 2, except for ES, which includes two reporting units: MphasiS Limited; and the remainder of ES. | ||||||||||||||||||||||||||
Based on the results of its annual impairment tests, HP determined that no impairment of goodwill existed as of August 1, 2014. 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 or changes in circumstances indicate there may be a potential impairment. | ||||||||||||||||||||||||||
Goodwill impairments | ||||||||||||||||||||||||||
There were no goodwill impairments in fiscal 2014 and 2013. | ||||||||||||||||||||||||||
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- and long-term forecasts 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- and long-term forecasts 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- 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 are composed of: | ||||||||||||||||||||||||||
As of October 31, 2014 | As of October 31, 2013 | |||||||||||||||||||||||||
Gross | Accumulated | Accumulated | Net | Gross | Accumulated | Accumulated | Net | |||||||||||||||||||
Amortization | Impairment | Amortization | Impairment | |||||||||||||||||||||||
Loss | Loss | |||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||
Customer contracts, customer lists and distribution agreements | $ | 5,289 | $ | (3,228 | ) | $ | (856 | ) | $ | 1,205 | $ | 5,321 | $ | (2,709 | ) | $ | (856 | ) | $ | 1,756 | ||||||
Developed and core technology and patents | 4,266 | (1,301 | ) | (2,138 | ) | 827 | 5,331 | (1,966 | ) | (2,138 | ) | 1,227 | ||||||||||||||
Trade name and trade marks | 1,693 | (261 | ) | (1,336 | ) | 96 | 1,730 | (211 | ) | (1,336 | ) | 183 | ||||||||||||||
In-process research and development | — | — | — | — | 3 | — | — | 3 | ||||||||||||||||||
Total intangible assets | $ | 11,248 | $ | (4,790 | ) | $ | (4,330 | ) | $ | 2,128 | $ | 12,385 | $ | (4,886 | ) | $ | (4,330 | ) | $ | 3,169 | ||||||
For fiscal 2014, $855 million of intangible assets became fully amortized and have been eliminated from gross intangible assets and accumulated amortization. HP also eliminated gross intangible assets and accumulated amortization related to the sale of a portfolio of intellectual property ("IP") in the first quarter of fiscal 2014. | ||||||||||||||||||||||||||
For fiscal 2013, the majority of the decrease in gross intangible assets was related to $1.7 billion of fully amortized intangible assets that were 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 PCs, 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 are as follows: | ||||||||||||||||||||||||||
As of | ||||||||||||||||||||||||||
October 31, 2014 | ||||||||||||||||||||||||||
Finite-Lived Intangible Assets | Weighted-Average | |||||||||||||||||||||||||
Useful Lives | ||||||||||||||||||||||||||
In years | ||||||||||||||||||||||||||
Customer contracts, customer lists and distribution agreements | 8 | |||||||||||||||||||||||||
Developed and core technology and patents | 8 | |||||||||||||||||||||||||
Trade name and trade marks | 7 | |||||||||||||||||||||||||
As of October 31, 2014, estimated future amortization expense related to finite-lived intangible assets was as follows: | ||||||||||||||||||||||||||
Fiscal year | In millions | |||||||||||||||||||||||||
2015 | $ | 872 | ||||||||||||||||||||||||
2016 | 653 | |||||||||||||||||||||||||
2017 | 244 | |||||||||||||||||||||||||
2018 | 147 | |||||||||||||||||||||||||
2019 | 110 | |||||||||||||||||||||||||
Thereafter | 102 | |||||||||||||||||||||||||
Total | $ | 2,128 | ||||||||||||||||||||||||
Fair_Value
Fair Value | 12 Months Ended | |||||||||||||||||||||||||
Oct. 31, 2014 | ||||||||||||||||||||||||||
Fair Value | ||||||||||||||||||||||||||
Fair Value | Note 10: Fair Value | |||||||||||||||||||||||||
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. | ||||||||||||||||||||||||||
Fair Value Hierarchy | ||||||||||||||||||||||||||
HP uses valuation techniques that are based upon observable and unobservable inputs. Observable inputs are developed using market data such as publicly available information and reflect the assumptions market participants would use, while unobservable inputs are developed using the best information available about the assumptions market participants would use. Assets and liabilities are classified in the fair value hierarchy based on the lowest level input that is significant to the fair value measurement: | ||||||||||||||||||||||||||
Level 1—Quoted prices (unadjusted) in active markets for identical assets or liabilities. | ||||||||||||||||||||||||||
Level 2—Quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability and market-corroborated inputs. | ||||||||||||||||||||||||||
Level 3—Unobservable inputs for the asset or liability. | ||||||||||||||||||||||||||
The fair value hierarchy gives the highest priority to observable inputs and lowest priority to unobservable inputs. | ||||||||||||||||||||||||||
The following table presents HP's assets and liabilities that are measured at fair value on a recurring basis: | ||||||||||||||||||||||||||
As of October 31, 2014 | As of October 31, 2013 | |||||||||||||||||||||||||
Fair Value | Fair Value | |||||||||||||||||||||||||
Measured Using | Measured Using | |||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||
In millions | ||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||
Cash Equivalents and Investments: | ||||||||||||||||||||||||||
Time deposits | $ | — | $ | 2,865 | $ | — | $ | 2,865 | $ | — | $ | 2,221 | $ | — | $ | 2,221 | ||||||||||
Money market funds | 9,857 | — | — | 9,857 | 6,819 | — | — | 6,819 | ||||||||||||||||||
Mutual funds | — | 244 | — | 244 | — | 313 | — | 313 | ||||||||||||||||||
Marketable equity securities | 14 | 5 | — | 19 | 10 | 5 | — | 15 | ||||||||||||||||||
Foreign bonds | 9 | 367 | — | 376 | 9 | 387 | — | 396 | ||||||||||||||||||
Other debt securities | — | 1 | 46 | 47 | — | 2 | 47 | 49 | ||||||||||||||||||
Derivatives: | ||||||||||||||||||||||||||
Interest rate contracts | — | 105 | — | 105 | — | 156 | — | 156 | ||||||||||||||||||
Foreign exchange contracts | — | 862 | 6 | 868 | — | 284 | 3 | 287 | ||||||||||||||||||
Other derivatives | — | 7 | — | 7 | — | 9 | — | 9 | ||||||||||||||||||
Total assets | $ | 9,880 | $ | 4,456 | $ | 52 | $ | 14,388 | $ | 6,838 | $ | 3,377 | $ | 50 | $ | 10,265 | ||||||||||
Liabilities | ||||||||||||||||||||||||||
Derivatives: | ||||||||||||||||||||||||||
Interest rate contracts | $ | — | $ | 55 | $ | — | $ | 55 | $ | — | $ | 107 | $ | — | $ | 107 | ||||||||||
Foreign exchange contracts | — | 348 | 2 | 350 | — | 547 | 2 | 549 | ||||||||||||||||||
Total liabilities | $ | — | $ | 403 | $ | 2 | $ | 405 | $ | — | $ | 654 | $ | 2 | $ | 656 | ||||||||||
For the year ended October 31, 2014, there were no transfers between 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 NAV, or models utilizing market observable inputs. The fair value of debt investments was based on quoted market prices or model-driven valuations using inputs primarily derived from or corroborated by observable market data, and, in certain instances, valuation models that utilize assumptions which cannot be corroborated with observable market data. | ||||||||||||||||||||||||||
Derivative Instruments: HP uses forward contracts, interest rate and total return swaps and option contracts to hedge certain foreign currency and interest rate exposures. HP uses industry standard valuation models to measure fair value. Where applicable, these models project future cash flows and discount the future amounts to present value using market-based observable inputs, including interest rate curves, HP and counterparty credit risk, foreign exchange rates, and forward and spot prices for currencies and interest rates. See Note 11 for a further discussion of HP's use of derivative instruments. | ||||||||||||||||||||||||||
Other Fair Value Disclosures | ||||||||||||||||||||||||||
Short- and Long-Term Debt: HP estimates the fair value of its debt primarily using an expected present value technique, which is based on observable market inputs using interest rates currently available to companies of similar credit standing for similar terms and remaining maturities, and considering its own credit risk. The portion of HP's debt that is hedged is reflected in the Consolidated Balance Sheets as an amount equal to the debt's carrying amount and a fair value adjustment representing changes in the fair value of the hedged debt obligations arising from movements in benchmark interest rates. The estimated fair value of HP's short- and long-term debt was $19.9 billion at October 31, 2014, compared to its carrying amount of $19.5 billion at that date. The estimated fair value of HP's short- and long-term debt was $22.7 billion at October 31, 2013, compared to its carrying amount of $22.6 billion at that date. If measured at fair value in the Consolidated Balance Sheets, short- and long-term debt would be classified in Level 2 of the fair value hierarchy. | ||||||||||||||||||||||||||
Other Financial Instruments: For the balance of HP's financial instruments, primarily accounts receivable, accounts payable and financial liabilities included in other accrued liabilities, the carrying amounts approximate fair value due to their short maturities. If measured at fair value in the Consolidated Balance Sheets, these other financial instruments would be classified in Level 2 or Level 3 of the fair value hierarchy. | ||||||||||||||||||||||||||
Non-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 in the period an impairment charge is recognized. If measured at fair value in the Consolidated Balance Sheets, these would generally be classified in Level 3 of the fair value hierarchy. | ||||||||||||||||||||||||||
In fiscal 2012, HP recognized a goodwill and intangible asset impairment charge of $8.8 billion associated with the Autonomy reporting unit, a goodwill impairment charge of $8.0 billion associated with the ES reporting unit, and an intangible asset impairment charge of $1.2 billion associated with the Compaq trade name. The fair value of these 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 9. 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 9. | ||||||||||||||||||||||||||
Financial_Instruments
Financial Instruments | 12 Months Ended | |||||||||||||||||||||||||||||||
Oct. 31, 2014 | ||||||||||||||||||||||||||||||||
Financial Instruments | ||||||||||||||||||||||||||||||||
Financial Instruments | Note 11: Financial Instruments | |||||||||||||||||||||||||||||||
Cash Equivalents and Available-for-Sale Investments | ||||||||||||||||||||||||||||||||
Cash equivalents and available-for-sale investments were as follows: | ||||||||||||||||||||||||||||||||
As of October 31, 2014 | As of October 31, 2013 | |||||||||||||||||||||||||||||||
Cost | Gross | Gross | Fair | Cost | Gross | Gross | Fair | |||||||||||||||||||||||||
Unrealized | Unrealized | Value | Unrealized | Unrealized | Value | |||||||||||||||||||||||||||
Gain | Loss | Gain | Loss | |||||||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||||||||
Cash Equivalents: | ||||||||||||||||||||||||||||||||
Time deposits | $ | 2,720 | $ | — | $ | — | $ | 2,720 | $ | 2,207 | $ | — | $ | — | $ | 2,207 | ||||||||||||||||
Money market funds | 9,857 | — | — | 9,857 | 6,819 | — | — | 6,819 | ||||||||||||||||||||||||
Mutual funds | 110 | — | — | 110 | 13 | — | — | 13 | ||||||||||||||||||||||||
Total cash equivalents | 12,687 | — | — | 12,687 | 9,039 | — | — | 9,039 | ||||||||||||||||||||||||
Available-for-Sale Investments: | ||||||||||||||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||||||||||
Time deposits | 145 | — | — | 145 | 14 | — | — | 14 | ||||||||||||||||||||||||
Foreign bonds | 286 | 90 | — | 376 | 310 | 86 | — | 396 | ||||||||||||||||||||||||
Other debt securities | 61 | — | (14 | ) | 47 | 64 | — | (15 | ) | 49 | ||||||||||||||||||||||
Total debt securities | 492 | 90 | (14 | ) | 568 | 388 | 86 | (15 | ) | 459 | ||||||||||||||||||||||
Equity securities: | ||||||||||||||||||||||||||||||||
Mutual funds | 134 | — | — | 134 | 300 | — | — | 300 | ||||||||||||||||||||||||
Equity securities in public companies | 8 | 7 | — | 15 | 5 | 6 | — | 11 | ||||||||||||||||||||||||
Total equity securities | 142 | 7 | — | 149 | 305 | 6 | — | 311 | ||||||||||||||||||||||||
Total available-for-sale investments | 634 | 97 | (14 | ) | 717 | 693 | 92 | (15 | ) | 770 | ||||||||||||||||||||||
Total cash equivalents and available-for-sale investments | $ | 13,321 | $ | 97 | $ | (14 | ) | $ | 13,404 | $ | 9,732 | $ | 92 | $ | (15 | ) | $ | 9,809 | ||||||||||||||
All highly liquid investments with original maturities of three months or less at the date of acquisition are considered cash equivalents. As of October 31, 2014 and October 31, 2013, the carrying amount of cash equivalents approximated fair value due to the short period of time to maturity. Interest income related to cash, cash equivalents and debt securities was approximately $136 million in fiscal 2014, $148 million in fiscal 2013 and $155 million in fiscal 2012. Time deposits were primarily issued by institutions outside the U.S. as of October 31, 2014 and October 31, 2013. The estimated fair value of the available-for-sale investments may not be representative of values that will be realized in the future. | ||||||||||||||||||||||||||||||||
The gross unrealized loss as of October 31, 2014 and October 31, 2013 was due primarily to decline in the fair value of a debt security of $14 million and $15 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 investments in available-for-sale debt securities were as follows: | ||||||||||||||||||||||||||||||||
As of October 31, 2014 | ||||||||||||||||||||||||||||||||
Amortized | Fair Value | |||||||||||||||||||||||||||||||
Cost | ||||||||||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||||||||
Due in one year | $ | 129 | $ | 129 | ||||||||||||||||||||||||||||
Due in one to five years | 3 | 3 | ||||||||||||||||||||||||||||||
Due in more than five years | 360 | 436 | ||||||||||||||||||||||||||||||
$ | 492 | $ | 568 | |||||||||||||||||||||||||||||
Equity securities in privately held companies include cost basis and equity method investments and are included in Long-term financing receivables and other assets in the Consolidated Balance Sheets. These amounted to $97 million and $50 million at October 31, 2014 and October 31, 2013, respectively. | ||||||||||||||||||||||||||||||||
Derivative 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 the fair value of assets and liabilities. HP does not have any leveraged derivatives and does not use derivative contracts for speculative purposes. HP may designate its derivative contracts as fair value hedges, cash flow hedges or hedges of the foreign currency exposure of a net investment in a foreign operation ("net investment hedges"). Additionally, for derivatives not designated as hedging instruments, HP categorizes those economic hedges as other derivatives. HP recognizes all derivative instruments at fair value in the Consolidated Balance Sheets. HP classifies cash flows from its 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 counterparty credit risk, HP has a policy of only entering into derivative contracts with carefully selected major financial institutions based on their credit ratings and other factors, and HP maintains dollar risk limits that correspond to each financial 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 its counterparties. Master netting agreements further mitigate credit exposure to counterparties by permitting HP to net amounts due from HP to counterparty against amounts due to HP from the same counterparty under certain conditions. | ||||||||||||||||||||||||||||||||
To further mitigate credit exposure to counterparties, HP has collateral security agreements that allow HP to hold collateral from, or require HP to post collateral to, counterparties when aggregate derivative fair values exceed contractually established thresholds which are generally based on the credit ratings of HP and its counterparties. If HP's or the counterparty's credit rating falls below a specified credit rating, either party has the right to request full collateralization of the derivatives' net liability position. Collateral is generally posted within two business days. The fair value of derivatives with credit contingent features in a net liability position was $38 million and $207 million at October 31, 2014 and October 31, 2013, respectively, all of which were fully collateralized within two business days. | ||||||||||||||||||||||||||||||||
Under HP's derivative contracts, the counterparty can terminate all outstanding trades following a covered change of control event affecting HP that results in the surviving entity being rated below a specified credit rating. This credit contingent provision did not affect HP's financial position or cash flows as of October 31, 2014 and October 31, 2013. | ||||||||||||||||||||||||||||||||
Fair Value Hedges | ||||||||||||||||||||||||||||||||
HP issues long-term debt in U.S. dollars based on market conditions at the time of financing. HP may enter into fair value hedges, such as interest rate swaps, to reduce the exposure of its debt portfolio to changes in fair value resulting from changes in interest rates by achieving a primarily U.S. dollar LIBOR-based floating interest 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 may designate these swaps as fair value hedges. | ||||||||||||||||||||||||||||||||
For derivative instruments that are designated and qualify as fair value hedges, HP recognizes the change in fair value of the derivative instrument, as well as the offsetting change in the fair value of the hedged item, in Interest and other, net in the Consolidated Statements of Earnings in the period of change. | ||||||||||||||||||||||||||||||||
Cash Flow Hedges | ||||||||||||||||||||||||||||||||
HP uses a combination of forward contracts and option contracts designated as cash flow hedges to protect against the foreign currency exchange rate risks inherent in its forecasted net revenue and, to a lesser extent, cost of sales, operating expenses, and intercompany loans denominated in currencies other than the U.S. dollar. HP's foreign currency cash flow hedges mature generally within twelve months; however, hedges related to longer term procurement arrangements extend several years and forward contracts associated with sales-type and direct-financing leases and intercompany loans extend for the duration of the lease or loan term, which typically range from two to five years. | ||||||||||||||||||||||||||||||||
For derivative instruments that are designated and qualify as cash flow hedges, HP initially records changes in fair value for the effective portion of 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 its cash flow hedges in the same financial statement line item as changes in the fair value of the hedged item. | ||||||||||||||||||||||||||||||||
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. HP records the effective portion of such derivative instruments together with changes in the fair value of 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 used to hedge foreign currency-denominated balance sheet exposures. HP also uses total return swaps and, to a lesser extent, interest rate swaps, based on equity or fixed income indices, to hedge its executive deferred compensation plan liability. | ||||||||||||||||||||||||||||||||
For derivative instruments not designated as hedging instruments, HP recognizes changes in fair value of the derivative instrument, as well as the offsetting change in the fair value of the hedged item, in Interest and other net in the Consolidated Statements of Earnings in the period of change. | ||||||||||||||||||||||||||||||||
Hedge Effectiveness | ||||||||||||||||||||||||||||||||
For interest rate swaps designated as fair value hedges, HP measures hedge effectiveness by offsetting the change in fair value of the hedged 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 hedge effectiveness by comparing the cumulative change in fair value of the hedge contract with the cumulative change in fair value of the hedged item, both of which are based on forward rates. HP recognizes any ineffective portion of the hedge in the Consolidated Statements of Earnings in the same period in which ineffectiveness occurs. Amounts excluded from the assessment of effectiveness are recognized in the Consolidated Statements of Earnings in the period they arise. | ||||||||||||||||||||||||||||||||
Fair Value of Derivative Instruments in the Consolidated Balance Sheets | ||||||||||||||||||||||||||||||||
The gross notional and fair value of derivative instruments in the Consolidated Balance Sheets was as follows: | ||||||||||||||||||||||||||||||||
As of October 31, 2014 | As of October 31, 2013 | |||||||||||||||||||||||||||||||
Outstanding | Other | Long-Term | Other | Long-Term | Outstanding | Other | Long-Term | Other | Long-Term | |||||||||||||||||||||||
Gross | Current | Financing | Accrued | Other | Gross | Current | Financing | Accrued | Other | |||||||||||||||||||||||
Notional | Assets | Receivables | Liabilities | Liabilities | Notional | Assets | Receivables | Liabilities | Liabilities | |||||||||||||||||||||||
and Other | and Other | |||||||||||||||||||||||||||||||
Assets | Assets | |||||||||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||||||||
Derivatives designated as hedging instruments | ||||||||||||||||||||||||||||||||
Fair value hedges: | ||||||||||||||||||||||||||||||||
Interest rate contracts | $ | 10,800 | $ | 3 | $ | 102 | $ | — | $ | 55 | $ | 11,100 | $ | 31 | $ | 125 | $ | — | $ | 107 | ||||||||||||
Cash flow hedges: | ||||||||||||||||||||||||||||||||
Foreign currency contracts | 20,196 | 539 | 124 | 131 | 94 | 22,463 | 79 | 40 | 341 | 80 | ||||||||||||||||||||||
Net investment hedges: | ||||||||||||||||||||||||||||||||
Foreign currency contracts | 1,952 | 44 | 47 | 10 | 8 | 1,920 | 30 | 40 | 20 | 12 | ||||||||||||||||||||||
Total derivatives designated as hedging instruments | 32,948 | 586 | 273 | 141 | 157 | 35,483 | 140 | 205 | 361 | 199 | ||||||||||||||||||||||
Derivatives not designated as hedging instruments | ||||||||||||||||||||||||||||||||
Foreign currency contracts | 21,384 | 82 | 32 | 82 | 25 | 16,048 | 72 | 26 | 76 | 20 | ||||||||||||||||||||||
Other derivatives | 361 | 6 | 1 | — | — | 344 | 8 | 1 | — | — | ||||||||||||||||||||||
Total derivatives not designated as hedging instruments | 21,745 | 88 | 33 | 82 | 25 | 16,392 | 80 | 27 | 76 | 20 | ||||||||||||||||||||||
Total derivatives | $ | 54,693 | $ | 674 | $ | 306 | $ | 223 | $ | 182 | $ | 51,875 | $ | 220 | $ | 232 | $ | 437 | $ | 219 | ||||||||||||
Offsetting of Derivative Instruments | ||||||||||||||||||||||||||||||||
HP recognizes all derivative instruments on a gross basis in the Consolidated Balance Sheets. HP does not offset the fair value of its derivative instruments against the fair value of cash collateral posted under its collateral security agreements. As of October 31, 2014 and October 31, 2013, information related to the potential effect of HP's master netting agreements and collateral security agreements was as follows: | ||||||||||||||||||||||||||||||||
As of October 31, 2014 | ||||||||||||||||||||||||||||||||
In the Consolidated Balance Sheets | ||||||||||||||||||||||||||||||||
(i) | (ii) | (iii) =i)-(ii) | (iv) | (v) | (vi) =iii)-(iv)-(v) | |||||||||||||||||||||||||||
Gross Amounts | ||||||||||||||||||||||||||||||||
Not Offset | ||||||||||||||||||||||||||||||||
Gross | Gross | Net Amount | Derivatives | Financial | Net Amount | |||||||||||||||||||||||||||
Amount | Amount | Presented | Collateral | |||||||||||||||||||||||||||||
Recognized | Offset | |||||||||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||||||||
Derivative assets | $ | 980 | $ | — | $ | 980 | $ | 361 | $ | 452 | $ | 167 | ||||||||||||||||||||
Derivative liabilities | $ | 405 | $ | — | $ | 405 | $ | 361 | $ | 29 | -1 | $ | 15 | |||||||||||||||||||
-1 | Collateral posted through re-use of counterparty cash collateral. | |||||||||||||||||||||||||||||||
As of October 31, 2013 | ||||||||||||||||||||||||||||||||
In the Consolidated Balance Sheets | ||||||||||||||||||||||||||||||||
(i) | (ii) | (iii) =i)-(ii) | (iv) | (v) | (vi) =iii)-(iv)-(v) | |||||||||||||||||||||||||||
Gross Amounts | ||||||||||||||||||||||||||||||||
Not Offset | ||||||||||||||||||||||||||||||||
Gross | Gross | Net Amount | Derivatives | Financial | Net Amount | |||||||||||||||||||||||||||
Amount | Amount | Presented | Collateral | |||||||||||||||||||||||||||||
Recognized | Offset | |||||||||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||||||||
Derivative assets | $ | 452 | $ | — | $ | 452 | $ | 372 | $ | 30 | $ | 50 | ||||||||||||||||||||
Derivative liabilities | $ | 656 | $ | — | $ | 656 | $ | 372 | $ | 283 | -1 | $ | 1 | |||||||||||||||||||
-1 | Of the $283 million of collateral posted, $30 million was through re-use of counterparty cash collateral and $253 million was in cash. | |||||||||||||||||||||||||||||||
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, 2014, 2013 and 2012 was as follows: | ||||||||||||||||||||||||||||||||
(Loss) Gain Recognized in Income on Derivative and Related Hedged Item | ||||||||||||||||||||||||||||||||
Derivative Instrument | Location | 2014 | 2013 | 2012 | Hedged Item | Location | 2014 | 2013 | 2012 | |||||||||||||||||||||||
In millions | In millions | |||||||||||||||||||||||||||||||
Interest rate contracts | Interest and other, net | $ | 1 | $ | (270 | ) | $ | (130 | ) | Fixed-rate debt | Interest and other, net | $ | (1 | ) | $ | 270 | $ | 134 | ||||||||||||||
The pre-tax effect of derivative instruments in cash flow and net investment hedging relationships for fiscal years ended October 31, 2014, 2013 and 2012 was as follows: | ||||||||||||||||||||||||||||||||
Gain (Loss) | Gain (Loss) Reclassified from Accumulated OCI | |||||||||||||||||||||||||||||||
Recognized in OCI | Into Earnings (Effective Portion) | |||||||||||||||||||||||||||||||
on Derivatives | ||||||||||||||||||||||||||||||||
(Effective Portion) | ||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | Location | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||
In millions | In millions | |||||||||||||||||||||||||||||||
Cash flow hedges: | ||||||||||||||||||||||||||||||||
Foreign currency contracts | $ | 593 | $ | (53 | ) | $ | 415 | Net revenue | $ | (21 | ) | $ | 48 | $ | 423 | |||||||||||||||||
Foreign currency contracts | (203 | ) | (192 | ) | (65 | ) | Cost of products | (71 | ) | (165 | ) | (15 | ) | |||||||||||||||||||
Foreign currency contracts | 7 | (19 | ) | (7 | ) | Other operating expenses | (9 | ) | 1 | (6 | ) | |||||||||||||||||||||
Foreign currency contracts | (60 | ) | 21 | (8 | ) | Interest and other, net | (50 | ) | 10 | (3 | ) | |||||||||||||||||||||
Total currency hedges | $ | 337 | $ | (243 | ) | $ | 335 | $ | (151 | ) | $ | (106 | ) | $ | 399 | |||||||||||||||||
Net investment hedges: | ||||||||||||||||||||||||||||||||
Foreign currency contracts | $ | 57 | $ | 38 | $ | 37 | Interest and other, net | $ | — | $ | — | $ | — | |||||||||||||||||||
As of October 31, 2014 and 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 the 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 2014, 2013 and 2012. | ||||||||||||||||||||||||||||||||
As of October 31, 2014, HP expects to reclassify an estimated net Accumulated other comprehensive gain of approximately $185 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 years ended October 31, 2014, 2013 and 2012 was as follows: | ||||||||||||||||||||||||||||||||
Gain (Loss) Recognized in Income on Derivatives | ||||||||||||||||||||||||||||||||
Location | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||||||||
Foreign currency contracts | Interest and other, net | $ | 56 | $ | 166 | $ | 171 | |||||||||||||||||||||||||
Other derivatives | Interest and other, net | — | 11 | (32 | ) | |||||||||||||||||||||||||||
Interest rate contracts | Interest and other, net | — | 3 | 13 | ||||||||||||||||||||||||||||
Total | $ | 56 | $ | 180 | $ | 152 | ||||||||||||||||||||||||||
Borrowings
Borrowings | 12 Months Ended | ||||||||||||||||||||||
Oct. 31, 2014 | |||||||||||||||||||||||
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: | |||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||
As of October 31 | |||||||||||||||||||||||
Amount | Weighted-Average | Amount | Weighted-Average | ||||||||||||||||||||
Outstanding | Interest Rate | Outstanding | Interest Rate | ||||||||||||||||||||
In millions | In millions | ||||||||||||||||||||||
Current portion of long-term debt | $ | 2,655 | 2.2 | % | $ | 5,226 | 2.8 | % | |||||||||||||||
Commercial paper(1) | 298 | 0.5 | % | 327 | 0.4 | % | |||||||||||||||||
Notes payable to banks, lines of credit and other(1) | 533 | 4.0 | % | 426 | 1.7 | % | |||||||||||||||||
$ | 3,486 | $ | 5,979 | ||||||||||||||||||||
-1 | Commercial paper includes $298 million and $327 million and Notes payable to banks, lines of credit and other includes $404 million and $368 million at October 31, 2014 and October 31, 2013, respectively, of borrowing- and funding-related activity associated with HPFS and its subsidiaries. | ||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||
As of October 31 | |||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||
In millions | |||||||||||||||||||||||
U.S. Dollar Global Notes(1) | |||||||||||||||||||||||
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 | $ | 500 | $ | 499 | |||||||||||||||||||
$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%, paid March 2014 | — | 1,999 | |||||||||||||||||||||
$1,500 issued at discount to par at a price of 99.993% in February 2009 at 4.75%, paid June 2014 | — | 1,500 | |||||||||||||||||||||
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 | 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 | 1,349 | |||||||||||||||||||||
$500 issued at par in May 2011 at three-month USD LIBOR plus 0.4%, paid May 2014 | — | 500 | |||||||||||||||||||||
$500 issued at discount to par at a price of 99.971% in May 2011 at 1.55%, paid May 2014 | — | 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 | |||||||||||||||||||||
$350 issued at par in September 2011 at three-month USD LIBOR plus 1.55%, paid September 2014 | — | 350 | |||||||||||||||||||||
$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 | 999 | |||||||||||||||||||||
$1,200 issued at discount to par at a price of 99.863% in September 2011 at 6.0%, due September 2041 | 1,199 | 1,198 | |||||||||||||||||||||
$650 issued at discount to par at a price of 99.946% in December 2011 at 2.625%, paid 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 | |||||||||||||||||||||
2012 Shelf Registration Statement: | |||||||||||||||||||||||
$750 issued at par in January 2014 at three-month USD LIBOR plus 0.94%, due January 2019 | 750 | — | |||||||||||||||||||||
$1,250 issued at discount to par at a price of 99.954% in January 2014 at 2.75%, due January 2019 | 1,250 | — | |||||||||||||||||||||
17,837 | 20,684 | ||||||||||||||||||||||
EDS Senior Notes(1) | |||||||||||||||||||||||
$300 issued October 1999 at 7.45%, due October 2029 | 313 | 314 | |||||||||||||||||||||
Other, including capital lease obligations, at 0.00%-8.30%, due in calendar years 2014-2024(2) | 424 | 689 | |||||||||||||||||||||
Fair value adjustment related to hedged debt | 120 | 147 | |||||||||||||||||||||
Less: current portion | (2,655 | ) | (5,226 | ) | |||||||||||||||||||
Total long-term debt | $ | 16,039 | $ | 16,608 | |||||||||||||||||||
-1 | HP may redeem some or all of the fixed-rate U.S. Dollar Global Notes and EDS Senior Notes at any time in accordance with the terms thereof. The U.S. Dollar Global Notes and EDS Senior Notes are senior unsecured debt. | ||||||||||||||||||||||
-2 | Other, including capital lease obligations includes $123 million and $244 million as of October 31, 2014 and 2013, respectively, of borrowing- and funding-related activity associated with HPFS and its subsidiaries that are collateralized by receivables and underlying assets associated with the related capital and operating leases. For both the periods presented, the carrying amount of the assets approximated the carrying amount of the borrowings. | ||||||||||||||||||||||
As disclosed in Note 11, HP uses interest rate swaps to mitigate the exposure of its debt portfolio to changes in fair value resulting from changes in interest rates by achieving a primarily U.S. dollar LIBOR-based floating interest expense. Interest rates shown in the table of long-term debt have not been adjusted to reflect the impact of any interest rate swaps. | |||||||||||||||||||||||
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. | |||||||||||||||||||||||
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 provides for the issuance of commercial paper outside of the U.S. denominated in U.S. dollars, euros or British pounds up to a maximum aggregate principal amount of $3.0 billion or the equivalent in those alternative currencies. The combined aggregate principal amount of commercial paper outstanding under those programs at any one time cannot exceed the $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 of 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 five-year credit facility that expires in April 2019. The $4.5 billion credit facility expiring in April 2019 was executed in the second quarter of fiscal 2014 and replaced a previous $4.5 billion credit facility that was to expire in February 2015. Both facilities support the U.S. commercial paper program and the euro commercial paper program. 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. In addition, the $3.0 billion five-year credit facility was amended in September 2012 to permit borrowings in euros and British pounds, with the amounts available in euros and British pounds being limited to the U.S. dollar equivalent of $2.2 billion and $300 million, respectively. | |||||||||||||||||||||||
HP's and the HP subsidiary's resources available to obtain short- or long-term financing were as follows: | |||||||||||||||||||||||
As of | |||||||||||||||||||||||
October 31, | |||||||||||||||||||||||
2014 | |||||||||||||||||||||||
In millions | |||||||||||||||||||||||
2012 Shelf Registration Statement(1) | Unspecified | ||||||||||||||||||||||
Commercial paper programs | $ | ||||||||||||||||||||||
16,202 | |||||||||||||||||||||||
Uncommitted lines of credit | $ 1,587 | ||||||||||||||||||||||
-1 | HP has 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. | ||||||||||||||||||||||
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. | |||||||||||||||||||||||
As of October 31, 2014, aggregate future maturities of long-term debt at face value (excluding a fair value adjustment related to hedged debt of $120 million, a premium on debt issuance of $13 million and a discount on debt issuance of $13 million) were as follows: | |||||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | Total | |||||||||||||||||
In millions | |||||||||||||||||||||||
Aggregate future maturities of debt outstanding including capital lease obligations | $ | 2,652 | $ | 3,027 | $ | 2,920 | $ | 786 | $ | 2,003 | $ | 7,186 | $ | 18,574 | |||||||||
Interest expense on borrowings recognized in the Consolidated Statements of Earnings during the fiscal years was as follows: | |||||||||||||||||||||||
Expense | Location | 2014 | 2013 | 2012 | |||||||||||||||||||
In millions | |||||||||||||||||||||||
Financing interest | Financing interest | $ | 277 | $ | 312 | $ | 317 | ||||||||||||||||
Interest expense | Interest and other, net | 344 | 426 | 514 | |||||||||||||||||||
Total interest expense | $ | 621 | $ | 738 | $ | 831 | |||||||||||||||||
Stockholders_Equity
Stockholders' Equity | 12 Months Ended | ||||||||||||||||
Oct. 31, 2014 | |||||||||||||||||
Stockholders' Equity | |||||||||||||||||
Stockholders' Equity | Note 13: 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 declared were $0.61 per common share in fiscal 2014, $0.55 per common share in fiscal 2013 and $0.50 per common share in fiscal 2012. | |||||||||||||||||
Share Repurchase Program | |||||||||||||||||
HP's share repurchase program authorizes both open market and private repurchase transactions. In fiscal 2014, HP executed share repurchases of 92 million shares which were settled for $2.7 billion and included 7 million shares expected to settle in the first quarter of fiscal 2015. 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. The shares repurchased and settled in fiscal 2014, fiscal 2013 and fiscal 2012 were all open market repurchase transactions. As of October 31, 2014, HP had remaining authorization of $4.9 billion for future share repurchases under the $10.0 billion repurchase authorization approved by HP's Board of Directors on July 21, 2011. | |||||||||||||||||
Taxes related to Other Comprehensive (Loss) Income | |||||||||||||||||
For the fiscal years ended | |||||||||||||||||
October 31 | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
In millions | |||||||||||||||||
Tax (provision) benefit on change in unrealized gains on available-for-sale securities: | |||||||||||||||||
Tax (provision) benefit on unrealized gains arising during the period | $ | (1 | ) | $ | (14 | ) | $ | 25 | |||||||||
(1 | ) | (14 | ) | 25 | |||||||||||||
Tax (provision) benefit on change in unrealized gains (losses) on cash flow hedges: | |||||||||||||||||
Tax (provision) benefit on unrealized gains (losses) arising during the period | (174 | ) | 97 | (137 | ) | ||||||||||||
Tax (benefit) provision on losses (gains) reclassified into earnings | (18 | ) | (49 | ) | 143 | ||||||||||||
(192 | ) | 48 | 6 | ||||||||||||||
Tax benefit (provision) on change in unrealized components of defined benefit plans: | |||||||||||||||||
Tax benefit (provision) on (losses) gains arising during the period | 181 | (258 | ) | 261 | |||||||||||||
Tax benefit on amortization of actuarial loss and prior service benefit | (18 | ) | (35 | ) | (31 | ) | |||||||||||
Tax provision on curtailments, settlements and other | (9 | ) | (5 | ) | (48 | ) | |||||||||||
154 | (298 | ) | 182 | ||||||||||||||
Tax (provision) benefit on change in cumulative translation adjustment | (27 | ) | 25 | (25 | ) | ||||||||||||
Tax (provision) benefit on other comprehensive (loss) income | $ | (66 | ) | $ | (239 | ) | $ | 188 | |||||||||
Changes and reclassifications related to Other Comprehensive (Loss) Income, net of taxes | |||||||||||||||||
For the fiscal years ended | |||||||||||||||||
October 31 | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
In millions | |||||||||||||||||
Other comprehensive (loss) income, net of taxes: | |||||||||||||||||
Change in unrealized gains on available-for-sale securities: | |||||||||||||||||
Unrealized gains arising during the period | $ | 6 | $ | 38 | $ | 50 | |||||||||||
Gains reclassified into earnings | (1 | ) | (49 | ) | — | ||||||||||||
5 | (11 | ) | 50 | ||||||||||||||
Change in unrealized gains (losses) on cash flow hedges: | |||||||||||||||||
Unrealized gains (losses) arising during the period | 163 | (146 | ) | 198 | |||||||||||||
Losses (gains) reclassified into earnings(1) | 133 | 57 | (256 | ) | |||||||||||||
296 | (89 | ) | (58 | ) | |||||||||||||
Change in unrealized components of defined benefit plans: | |||||||||||||||||
(Losses) gains arising during the period | (2,575 | ) | 1,695 | (2,196 | ) | ||||||||||||
Amortization of actuarial loss and prior service benefit(2) | 241 | 291 | 141 | ||||||||||||||
Curtailments, settlements and other | 42 | 20 | 74 | ||||||||||||||
(2,292 | ) | 2,006 | (1,981 | ) | |||||||||||||
Change in cumulative translation adjustment | (112 | ) | (125 | ) | (72 | ) | |||||||||||
Other comprehensive (loss) income, net of taxes | $ | (2,103 | ) | $ | 1,781 | $ | (2,061 | ) | |||||||||
-1 | Reclassification of pre-tax losses (gains) on cash flow hedges into the Consolidated Statements of Earnings was as follows: | ||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
In millions | |||||||||||||||||
Net revenue | $ | 21 | $ | (48 | ) | $ | (423 | ) | |||||||||
Cost of products | 71 | 165 | 15 | ||||||||||||||
Other operating expenses | 9 | (1 | ) | 6 | |||||||||||||
Interest and other, net | 50 | (10 | ) | 3 | |||||||||||||
$ | 151 | $ | 106 | $ | (399 | ) | |||||||||||
-2 | These components are included in the computation of net pension and post-retirement benefit (credit) cost in Note 4. | ||||||||||||||||
The components of accumulated other comprehensive loss, net of taxes as of October 31, 2014 and changes during fiscal year 2014 were as follows: | |||||||||||||||||
Net unrealized | Net unrealized | Unrealized | Cumulative | Accumulated | |||||||||||||
gain on | loss on cash | components | translation | other | |||||||||||||
available-for-sale | flow hedges | of defined | adjustment | comprehensive | |||||||||||||
securities | benefit plans | loss | |||||||||||||||
In millions | |||||||||||||||||
Balance at beginning of period | $ | 76 | $ | (188 | ) | $ | (3,084 | ) | $ | (582 | ) | $ | (3,778 | ) | |||
Other comprehensive income (loss) before reclassifications | 6 | 163 | (2,533 | ) | (112 | ) | (2,479 | ) | |||||||||
Reclassifications of (gains) losses into earnings | (1 | ) | 133 | 241 | — | 376 | |||||||||||
Balance at end of period | $ | 81 | $ | 108 | $ | (5,376 | ) | $ | (694 | ) | $ | (5,881 | ) | ||||
Net_Earnings_Per_Share
Net Earnings Per Share | 12 Months Ended | ||||||||||
Oct. 31, 2014 | |||||||||||
Net Earnings Per Share | |||||||||||
Net Earnings Per Share | Note 14: Net Earnings Per Share | ||||||||||
HP calculates basic net EPS using net earnings (loss) and the weighted-average number of shares outstanding during the reporting period. Diluted net EPS includes any dilutive effect of restricted stock awards, stock options, performance-based awards and shares purchased under the 2011 ESPP. | |||||||||||
The reconciliations of the numerators and denominators of each of the basic and diluted net EPS calculations were as follows: | |||||||||||
For the fiscal years ended | |||||||||||
October 31 | |||||||||||
2014 | 2013 | 2012 | |||||||||
In millions, except per share | |||||||||||
amounts | |||||||||||
Numerator: | |||||||||||
Net earnings (loss)(1) | $ | 5,013 | $ | 5,113 | $ | (12,650 | ) | ||||
Denominator: | |||||||||||
Weighted-average shares used to compute basic net EPS | 1,882 | 1,934 | 1,974 | ||||||||
Dilutive effect of employee stock plans | 30 | 16 | — | ||||||||
Weighted-average shares used to compute diluted net EPS | 1,912 | 1,950 | 1,974 | ||||||||
Net earnings (loss) per share: | |||||||||||
Basic | $ | 2.66 | $ | 2.64 | $ | (6.41 | ) | ||||
Diluted(2) | $ | 2.62 | $ | 2.62 | $ | (6.41 | ) | ||||
Anti-dilutive weighted average options(3) | 26 | 52 | 57 | ||||||||
-1 | Net earnings allocated to participating securities were not significant in fiscal 2014, 2013 and 2012. HP considers restricted stock awards that provide the holder with a non-forfeitable right to receive dividends to be participating securities. | ||||||||||
-2 | For fiscal 2012, HP excluded from the calculation of diluted net loss per share 10 million shares potentially issuable under stock-based incentive compensation plans and the 2011 ESPP, as their effect, if included, would have been anti-dilutive. | ||||||||||
-3 | HP excludes options where the assumed proceeds exceed the average market price from the calculation of diluted net EPS, because their effect would be anti-dilutive. The assumed proceeds of an option include the sum of its exercise price, average unrecognized compensation cost and excess tax benefits. | ||||||||||
Litigation_and_Contingencies
Litigation and Contingencies | 12 Months Ended | |
Oct. 31, 2014 | ||
Litigation and Contingencies | ||
Litigation and Contingencies | Note 15: Litigation and Contingencies | |
HP is involved in lawsuits, claims, investigations and proceedings, including those identified below, consisting of IP, commercial, securities, employment, employee benefits and environmental matters that arise in the ordinary course of business. HP accrues a liability when management believes that it is both probable that a liability has been incurred and the amount of loss can be reasonably estimated. HP believes it has recorded adequate provisions for any such matters and, as of October 31, 2014, it was not reasonably possible that a material loss had been incurred in excess of the amounts recognized in HP's financial statements. HP reviews these matters at least quarterly and adjusts its accruals to reflect the impact of negotiations, settlements, rulings, advice of legal counsel, and other information and events pertaining to a particular case. Based on its experience, HP believes that any damage amounts claimed in the specific matters discussed below are not a meaningful indicator of HP's potential liability. Litigation is inherently unpredictable. However, HP believes it has valid defenses with respect to legal matters pending against it. Nevertheless, cash flows or results of operations could be materially affected in any particular period by the resolution of one or more of these contingencies. | ||
Litigation, Proceedings and Investigations | ||
Copyright Levies. 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 multi-function 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. The German Federal Supreme Court issued a decision on July 3, 2014 partially granting the claim of VG Wort. The German Federal Supreme Court decision provides that levies are due where the printer is used with a PC to make permitted reprographic copies in a single process under the control of the same person, but no levies are due on a printer for reprographic copies made with a "scanner-PC-printer" product chain. The case has been remitted to lower courts to assess the amount to be paid per printer unit. | ||
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. The German Federal Supreme Court issued a decision on July 3, 2014 partially granting the claim of VG Wort. The German Federal Supreme Court decision provides that levies are due for audio-visual copying of standing text and pictures using a PC as the last device in a single reproduction process under the control of the same person, but no levies are due on a PC for reprographic copies made using a "PC-printer" or a "scanner-PC-printer" chain. The case has been remitted to lower courts to assess the amount to be paid per PC unit. | ||
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 Electronic Data Systems Corporation ("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: | ||
• | 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, was filed on October 23, 2007 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. On December 11, 2013, HP and plaintiffs' counsel in the consolidated Cunningham/Steavens matter, and the Salva matter described below, mediated these cases and reached a settlement agreement. The court preliminarily approved the settlement on November 4, 2014. The final approval hearing is scheduled for June 8, 2015. | |
• | 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 December 11, 2013, HP and plaintiffs' counsel in the consolidated Cunningham/Steavens matter and the Salva matter mediated these cases and reached a settlement agreement. The court consolidated the Salva matter into the Cunningham/Steavens matter and preliminarily approved the settlement on November 4, 2014. The final approval hearing is scheduled for June 8, 2015. | |
• | 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. The parties are currently engaged in discovery. | |
• | Blake, et al. v. Hewlett-Packard Company was filed as a purported nationwide collective action 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 had been misclassified as exempt employees under the Fair Labor Standards Act. On February 10, 2012, the plaintiffs filed a motion requesting that the court conditionally certify the case as a collective action. On July 11, 2013, the court denied the plaintiffs' motion for conditional certification in its entirety. Following the denial of class certification, the case has continued as an individual action on behalf of the named plaintiff and one other employee. The parties have reached an agreement to resolve this matter with the two plaintiffs agreeing to settle their individual claims and release any other claims they may have against HP. The court approved the settlement on August 19, 2014, and dismissed the case with prejudice on September 9, 2014. | |
• | 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 February 13, 2014, the court granted the plaintiff's motion for conditional class certification. The parties are engaged in discovery. | |
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 concluded on February 25, 2014 and closing briefs were submitted on July 18, 2014. On August 15, 2014, the CPO agreed to the parties' joint request that the CPO not issue an order unless and until the parties, with the guidance of the mediator, report to the CPO that their ongoing mediation has reached a final impasse. | ||
On September 10, 2014, the parties reached an agreement in principle to resolve this matter and on December 15, 2014, the parties submitted a settlement agreement and time and materials agreement to the CPO for approval. | ||
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 then-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 the appeals as well as an extension of the stay of deposit as to HP and the individuals already granted until final disposition of the appeals. On February 7, 2014, the application for extension of the stay of deposit was granted by the Customs Tribunal until disposal of the appeals. On October 27, 2014, the Customs Tribunal commenced hearings on the cross-appeals of the Commissioner's orders. The Customs Tribunal rejected HP's request to remand the matter to the Commissioner on procedural grounds, and is scheduled to reconvene hearings on the merits beginning on April 6, 2015. | ||
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 Polish Central Anti-Corruption Bureau is also conducting an investigation into potential corruption 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. HP is cooperating with these investigating agencies. | ||
The DOJ and the SEC also conducted an investigation into the Russia GPO deal and potential violations of the Foreign Corrupt Practices Act ("FCPA"). In addition, the same U.S. enforcement agencies conducted investigations into certain other public-sector transactions in Russia, Poland, the Commonwealth of Independent States and Mexico, among other countries. On April 9, 2014, HP announced a resolution of the DOJ and SEC FCPA investigations. Pursuant to the terms of the resolution of the DOJ and SEC FCPA investigation announced in April 2014, on September 11, 2014, an HP subsidiary in Russia, ZAO Hewlett Packard A.O., entered a guilty plea in the United States District Court, Northern District of California, to criminal violations of the FCPA. HP paid the SEC approximately $31 million, and paid approximately $77 million in fines and penalties pursuant to its agreements with the DOJ. HP also has agreed to undertake certain compliance, reporting and cooperation obligations. | ||
On December 2, 2014, plaintiffs Petroleos Mexicanos and Pemex Exploracion filed a complaint against HP and HP Mexico in the United States District Court for the Northern District of California alleging violations of the Racketeer Influenced and Corrupt Organizations Act (RICO Act), fraudulent concealment, tortious interference, and violations of the California Unfair Competition Law in connection with alleged improper payments provided to Pemex officials by third-parties retained by HP Mexico. These allegations arise from the same subject-matter as a previously disclosed 2014 Non-Prosecution Agreement between HP Mexico and the DOJ and a simultaneous cease-and-desist order against HP issued by the SEC. HP is investigating this claim, however, HP does not believe that the resolution of this matter will have a material impact on its financial statements. | ||
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 ECT's decision revoked. HP Brazil also requested an injunction suspending the application of the penalties until a final ruling on the merits of the case. The court of first instance has not issued a decision on the merits of the case, but it has denied HP Brazil's request for injunctive relief. HP Brazil appealed the denial of its request for injunctive relief to the intermediate appellate court, which issued a preliminary ruling denying the request for injunctive relief but reducing the length of the sanctions from five 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 this decision to be issued in 2015 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 HP's 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: | ||
• | 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. On September 8, 2014, the plaintiff voluntarily dismissed its appeal, which concluded the case. | |
• | A.J. Copeland v. Raymond J. Lane, et al. ("Copeland I") 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 Chairman of HP's Board of Directors and HP's 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, the 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, the 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, the plaintiff filed an appeal with the United States Court of Appeals for the Ninth Circuit. The appeal has been fully briefed, but a date has not yet been set for oral argument. | |
• | A.J. Copeland v. Léo Apotheker, et al. ("Copeland II") is a lawsuit filed on February 10, 2014 in the United States District Court for the Northern District of California alleging, among other things, that the defendants used their control over HP and its corporate suffrage process in effectuating, directly participating in and/or aiding and abetting violations of Section 14(a) of the Exchange Act and Rule 14a-9 promulgated thereunder, violations of Sections 10(b) and 20(a) of the Exchange Act and Rule 10b-5 promulgated thereunder. The complaint asserts claims for breach of fiduciary duty, waste of corporate assets, unjust enrichment, and breach of the duty of candor. The claims arise out of the circumstances at HP relating to its 2013 and 2014 proxy statements, the departure of Mr. Hurd as Chairman of HP's Board of Directors and HP's Chief Executive Officer, alleged violations of the FCPA, and HP's acquisition of 3PAR Inc. and Autonomy Corporation plc ("Autonomy"). On February 25, 2014, the court issued an order granting HP's administrative motion to relate Copeland II to Copeland I. On April 8, 2014, the court granted the parties' stipulation to stay the action pending resolution of Copeland I by the United States Court of Appeals for the Ninth Circuit. | |
• | 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 the plaintiff 30 days to file an amended complaint. On October 19, 2012, the 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 and on March 31, 2014, the parties executed a settlement stipulation. On September 15, 2014, the court granted final approval of the settlement and HP and certain of its insurers paid approximately $57 million pursuant to the terms of the settlement agreement. The deadline to appeal the court's grant of final approval has passed and the court's judgment is now final. | |
• | 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. In an order dated February 13, 2014, the court granted the motion to stay. At the August 11, 2014 status conference, the stay was lifted. The plaintiffs informed the court that they will move forward with their complaint. HP filed a motion to dismiss on November 21, 2014. | |
• | 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. The court held a status conference on November 17, 2014. | |
• | 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 plaintiff filed an amended complaint on September 9, 2013, and the defendants moved to dismiss that complaint on October 24, 2013. On June 25, 2014, the court issued an order granting the defendants' motions to dismiss and on July 25, 2014, plaintiff filed a notice of appeal to the United States Court of Appeals for the Ninth Circuit. On November 4, 2014, the plaintiff-appellant filed its opening brief in the Court of Appeals for the Ninth Circuit. | |
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 DOJ 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 HP's 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. The plaintiffs filed a motion for class certification on November 4, 2014 and, on December 15, 2014, defendants filed their opposition to the motion. The hearing on the motion for class certification is scheduled for February 20, 2015. | |
• | 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 Intelligent Data Operating Layer 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. The court extended the stay of the litigation until June 16, 2014. Lead plaintiff filed a stipulation of proposed settlement on June 30, 2014. The court has held hearings on the motion for preliminary approval of the proposed settlement, but has not issued a decision. The parties and other interested parties have submitted further briefing and await a ruling from the court. The court is also expected to rule on the motion to sever filed in an additional derivative action captioned Steinberg and Vogel v. Apotheker, et. al. that contains substantially similar allegations and seeking substantially similar relief; the motion to intervene filed by the California state court plaintiff Vincent Ho for the limited purpose of applying for attorneys' fees; the motion to intervene filed by Sushovan Hussain for the purposes of objecting to the proposed settlement and obtaining discovery; and the motion to intervene filed by purported HP shareholder Rodney Cook for the purposes of removing the lead plaintiff and having himself appointed as the lead plaintiff. | |
• | 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. On March 31, 2014, the court granted HP's motion to dismiss this action with leave to amend. On July 16, 2014, the plaintiffs filed a second amended complaint containing substantially similar allegations and seeking substantially similar relief as the first amended complaint. HP moved to dismiss the second amended complaint and a hearing on the motion is scheduled for January 23, 2015. | |
• | 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 also have been stayed pending resolution of the In re Hewlett-Packard Shareholder Derivative Litigation matter. If the settlement of the federal derivative case is approved, it will result in a release of the claims asserted in all three actions other than claims asserted against Michael Lynch, the former chief executive officer of Autonomy. | |
• | Cook v. Whitman, et al. is a lawsuit filed on March 18, 2014 in the Delaware Chancery Court, alleging, among other things, that the defendants breached their fiduciary duties and wasted corporate assets in connection with HP's acquisition of Autonomy. On May 15, 2014, HP moved to dismiss or stay the Cook matter. On July 22, 2014, the Delaware Chancery Court stayed the motion pending the United States District Court's hearing on preliminary approval of the proposed settlement in the In re Hewlett-Packard Shareholder Derivative Litigation matter. If the District Court approves the settlement, it will result in a release of all the claims asserted in the Cook matter other than those asserted against Michael Lynch, Sushovan Hussain, the former chief financial officer of Autonomy, and Deloitte LLP. | |
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. | ||
Guarantees
Guarantees | 12 Months Ended | |||||||
Oct. 31, 2014 | ||||||||
Guarantees | ||||||||
Guarantees | Note 16: 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 having 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 a third party to such arrangement from any losses incurred relating to the services they perform on behalf of HP or for losses arising from certain events as defined within the particular contract, which may include, for example, litigation or claims relating to past performance. HP also provides indemnifications to certain vendors and customers against claims of IP infringement made by third parties arising from the vendor's and customer's use of HP's software products and services and certain other matters. Some indemnifications may not be subject to maximum loss clauses. Historically, payments made related to these indemnifications have been immaterial. | ||||||||
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 and ongoing product failure rates, as well as specific product class failures outside of HP's baseline experience, affect the estimated warranty obligation. | ||||||||
HP's aggregate product warranty liabilities and changes during the fiscal years were as follows: | ||||||||
As of October 31 | ||||||||
2014 | 2013 | |||||||
In millions | ||||||||
Balance at beginning of year | $ | 2,031 | $ | 2,170 | ||||
Accruals for warranties issued | 1,840 | 2,007 | ||||||
Adjustments related to pre-existing warranties (including changes in estimates) | 12 | (4 | ) | |||||
Settlements made (in cash or in kind) | (1,927 | ) | (2,142 | ) | ||||
Balance at end of year | $ | 1,956 | $ | 2,031 | ||||
Commitments
Commitments | 12 Months Ended | ||||||||||||||||||||||
Oct. 31, 2014 | |||||||||||||||||||||||
Commitments | |||||||||||||||||||||||
Commitments | Note 17: 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 approximately $1.0 billion in fiscal 2014, 2013 and 2012. | |||||||||||||||||||||||
Property under capital leases comprised primarily of equipment and furniture. Capital lease assets included in Property, plant and equipment in the Consolidated Balance Sheets were $229 million and $437 million as of October 31, 2014 and October 31, 2013, respectively. Accumulated depreciation on the property under capital lease was $207 million and $404 million as of October 31, 2014 and October 31, 2013, respectively. | |||||||||||||||||||||||
As of October 31, 2014, future minimum lease commitments were as follows: | |||||||||||||||||||||||
Operating Lease | |||||||||||||||||||||||
In millions | |||||||||||||||||||||||
Fiscal year | |||||||||||||||||||||||
2015 | $ | 744 | |||||||||||||||||||||
2016 | 555 | ||||||||||||||||||||||
2017 | 416 | ||||||||||||||||||||||
2018 | 308 | ||||||||||||||||||||||
2019 | 237 | ||||||||||||||||||||||
Thereafter | 804 | ||||||||||||||||||||||
Less: Sublease rental income | (63 | ) | |||||||||||||||||||||
Total | $ | 3,001 | |||||||||||||||||||||
Unconditional Purchase Obligations | |||||||||||||||||||||||
At October 31, 2014, HP had unconditional purchase obligations of approximately $2.1 billion. These unconditional purchase obligations include agreements to purchase goods or services that are enforceable and legally binding on HP and that specify all significant terms, including fixed or minimum quantities to be purchased, fixed, minimum or variable price provisions and the approximate timing of the transaction. These unconditional purchase obligations are related principally to inventory and other items. Unconditional purchase obligations exclude agreements that are cancelable without penalty. | |||||||||||||||||||||||
As of October 31, 2014, future unconditional purchase obligations were as follows: | |||||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | Total | |||||||||||||||||
In millions | |||||||||||||||||||||||
Unconditional purchase obligations | $ | 1,383 | $ | 289 | $ | 229 | $ | 212 | $ | — | $ | — | $ | 2,113 | |||||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Oct. 31, 2014 | |
Basis of Presentation | |
Principles of Consolidation | 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 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 intercompany accounts and transactions. | |
Reclassifications | Reclassifications |
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 ("EPS"). See Note 2 for a further discussion of HP's segment reorganization. | |
Use of Estimates | Use of Estimates |
The preparation of financial statements in accordance with United States ("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. | |
Foreign Currency Translation | Foreign Currency Translation |
HP predominately uses the U.S. dollar as its functional currency. Assets and liabilities denominated in non-U.S. dollars are remeasured into U.S. dollars at current exchange rates for monetary assets and liabilities and at historical exchange rates for nonmonetary assets and liabilities. Net revenue, costs and expenses denominated in non-U.S. dollars are recorded in U.S. dollars at monthly average exchange rates prevailing during the period. HP includes gains or losses from foreign currency remeasurement in Interest and other, net in the Consolidated Statements of Earnings. Certain 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 date as translation adjustments and includes them as a component of Accumulated other comprehensive loss in the Consolidated Balance Sheets. | |
Accounting Pronouncements | Accounting Pronouncements |
In May 2014, the Financial Accounting Standards Board ("FASB") amended the existing accounting standards for revenue recognition. The amendments are based on the principle that revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. HP is required to adopt the amendments in the first quarter of fiscal 2018. Early adoption is not permitted. The amendments may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of initial application. HP is currently evaluating the impact of these amendments and the transition alternatives on its Consolidated Financial Statements. | |
In April 2014, the FASB issued guidance which changes the criteria for identifying a discontinued operation. The guidance limits the definition of a discontinued operation to the disposal of a component or group of components that is disposed of or is classified as held for sale and represents a strategic shift that has, or will have, a major effect on an entity's operations and financial results. HP is required to adopt the guidance in the first quarter of fiscal 2016, with early adoption permitted for transactions that have not been reported in financial statements previously issued. | |
In July 2013, the FASB issued a new accounting standard requiring 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 is required to adopt this new standard on a prospective basis in the first quarter of fiscal 2015; however, early adoption is permitted as is retrospective application. HP will adopt the new standard in the first fiscal quarter of 2015 on a prospective basis. Adoption of the new standard is not expected to have a material effect on HP's Consolidated Financial Statements. | |
Revenue Recognition | Revenue Recognition |
General | |
HP recognizes revenue when persuasive evidence of an 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 standalone software sales to channel partners on receipt of evidence that the software has been sold to a specific end user. 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 refund or return rights. | |
HP reduces revenue for customer and distributor programs and incentive offerings, including price protection, rebates, 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. For certain incentive programs, HP estimates the number of customers expected to redeem the incentive based on historical experience and the specific terms and conditions of the incentive. | |
In instances when revenue is derived from sales of third-party vendor products or services, HP records revenue on a gross basis when HP is a principal to the transaction and on a net basis when HP is acting as an agent between the customer and the vendor. HP considers several factors to determine whether it is acting as a principal or an agent, most notably whether HP is the primary obligor to the customer, has established its own pricing and has inventory and credit risks. | |
HP reports revenue net of any taxes collected from customers and remitted to government authorities, with the collected taxes recorded as current liabilities until remitted to the relevant government authority. | |
Multiple element arrangements | |
When a sales arrangement contains multiple elements or deliverables, such as hardware and software products, 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 technology life cycles. In arrangements with multiple elements, HP allocates the transaction price to the individual units of accounting at inception of the arrangement based on their relative selling price. | |
In multiple element arrangements that include software that is more-than-incidental, 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 price 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 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 to the customer. For elements with no standalone value, HP recognizes revenue consistent with the pattern of the associated deliverables. If the arrangement includes a customer-negotiated refund or return right or other contingency relative to the delivered items, and the delivery and performance of the undelivered items is considered probable and substantially within HP's control, the delivered element constitutes a separate unit of accounting. In arrangements with combined units of accounting, changes in the allocation of the transaction price between elements may impact the timing of revenue recognition for the contract but will not change the total revenue recognized for the contract. | |
Product 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 to the customer 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 standard 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 satisfied. 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 inception of the arrangement when VSOE of fair value for all undelivered elements, such as post-contract support, exists and all other revenue recognition criteria have been satisfied. HP recognizes revenue from maintenance and unspecified upgrades or updates provided on a when-and-if-available basis ratably over the period during which such items are delivered. | |
HP recognizes revenue for 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 hosting arrangements where software licenses are sold, HP recognizes the license revenue according to whether perpetual or term licenses are sold, when all other revenue recognition criteria are satisfied. In hosting arrangements that include software licenses, 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 when to recognize revenue for the licenses. | |
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 recognizes costs as they are incurred. | |
HP recognizes revenue from certain fixed-price contracts, such as consulting arrangements, as work progresses over the contract period on a proportional performance basis, as determined by the percentage of labor costs incurred to date compared to the total estimated contract labor costs of a contract. HP recognizes revenue on fixed-price contracts for 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 to measure progress toward completion as determined by the percentage of cost incurred to date compared to the total estimated costs of the project. Estimates of total project costs for fixed-price contracts are regularly revised during the life of a contract. Provisions for estimated losses on fixed-priced contracts are recognized in the period when such losses become known. If reasonable and reliable cost estimates for a project cannot be made, HP uses the completed contract method and recognizes revenue and costs upon service completion. | |
HP generally recognizes outsourcing services revenue in the period when the service is provided and the amount earned is not contingent on the occurrence of any future event. HP recognizes revenue using an objective measure of output for unit-priced contracts. Revenue for fixed-price outsourcing contracts with periodic billings is recognized on a straight-line basis if the service is provided evenly during the contract term. Provisions for estimated losses on outsourcing arrangements are recognized in the period when such losses become probable and estimable. | |
HP recognizes revenue from operating leases on a straight-line basis as service revenue over the rental period. | |
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 | |
HP records amounts invoiced to customers in excess of revenue recognized as deferred revenue until the revenue recognition criteria are satisfied. HP records revenue that is earned and recognized in excess of amounts invoiced on services contracts as trade receivables. | |
Deferred revenue represents amounts invoiced in advance for product support contracts, software customer support contracts, outsourcing startup services work, consulting and integration projects, product sales or leasing income. | |
HP recognizes costs associated with outsourcing contracts as incurred, unless such costs are considered direct and incremental to the startup phase of the contract, in which case HP defers these costs during the startup phase and subsequently amortizes such costs over the period that outsourcing services are provided, once those services commence. HP amortizes deferred contract costs on a straight-line basis over the remaining 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 using the undiscounted estimated cash flows of the contract over its remaining term. If such undiscounted cash flows are insufficient to recover the carrying amount of deferred contract costs and long-lived assets directly associated with the contract, the deferred contract costs are first impaired. If a cash flow deficiency remains after reducing the carrying amount of the deferred contract costs to zero, HP evaluates any remaining long-lived assets related to that contract for impairment. | |
Shipping and handling | Shipping and Handling |
HP includes costs related to shipping and handling in cost of sales. | |
Stock-Based Compensation | Stock-Based Compensation |
HP determines stock-based compensation expense based on the measurement date fair value of the award. HP recognizes compensation cost only for those awards expected to meet the service and performance vesting conditions on a straight-line basis over the requisite service period of the award. HP determines compensation costs at the aggregate grant level for service-based awards and at the individual vesting tranche level for awards with performance and/or market conditions. HP estimates the forfeiture rate based on its historical experience. | |
HP utilizes the Black-Scholes-Merton option pricing formula to estimate the fair value of stock options subject to service-based vesting conditions. HP estimates the fair value of stock options subject to performance-contingent vesting conditions using a combination of a Monte Carlo simulation model and a lattice model as these awards contain market conditions. | |
Retirement and Post-Retirement Plans | 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 4 for a full description of these plans and the accounting and funding policies. | |
Advertising | Advertising |
Costs to produce advertising are expensed as incurred during production. Costs to communicate advertising are expensed when the advertising is first run. Such costs totaled approximately $784 million in fiscal 2014, $878 million in fiscal 2013 and $1.0 billion in fiscal 2012. | |
Restructuring | Restructuring |
HP records charges associated with management-approved restructuring plans to reorganize one or more of HP's business segments, to remove duplicative headcount and infrastructure associated with business acquisitions or to simplify business processes and accelerate innovation. Restructuring charges can include severance costs to 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. | |
Taxes on Earnings | Taxes on Earnings |
HP recognizes deferred tax assets and liabilities for the expected tax consequences of temporary differences between the tax bases of assets and liabilities and their reported amounts using enacted tax rates in effect for the year the differences are expected to reverse. HP records a valuation allowance to reduce the deferred tax assets to the amount that is more likely than not to be realized. | |
HP records accruals for uncertain tax positions when HP believes that it is not more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. HP makes adjustments to these accruals when facts and circumstances change, such as the closing of a tax audit or the refinement of an estimate. The provision for income taxes includes the effects of adjustments for uncertain tax positions, as well as any related interest and penalties. | |
HP recognizes interest income from favorable settlements and interest expense and penalties accrued on unrecognized tax benefits in Provision for taxes in the Consolidated Statements of Earnings | |
HP adjusts its uncertain tax positions to reflect the impact of negotiations, settlements, rulings, advice of legal counsel, and other information and events pertaining to a particular audit. | |
When the local tax treatment of the intercompany licensing arrangements differs from their U.S. GAAP treatment, deferred taxes are recognized. | |
Accounts Receivable | Accounts Receivable |
HP establishes an allowance for doubtful accounts for accounts receivable. HP records a specific reserve for individual accounts when HP becomes aware of specific customer circumstances, such as in the case of a bankruptcy filing or deterioration in the customer's operating results or financial position. If there are additional changes in circumstances related to the specific customer, HP further adjusts estimates of the recoverability of receivables. HP 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. | |
Factoring-Financing Arrangements | HP has third-party revolving short-term financing arrangements intended to facilitate the working capital requirements of certain customers. These financing arrangements, which in certain cases provide for partial recourse, result in the transfer of HP's trade receivables to a third party. HP reflects amounts transferred to, but not yet collected from, the third party in accounts receivable in the Consolidated Balance Sheets. For arrangements involving an element of recourse, the fair value of the recourse obligation is measured using market data from similar transactions and reported as a current liability in the Consolidated Balance Sheets. |
Concentrations of Risk | Concentrations of Risk |
Financial instruments that potentially subject HP to significant concentrations of credit risk consist principally of cash and cash equivalents, investments, receivables from trade customers and contract manufacturers, 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 geographic regions, and HP's policy is designed to limit exposure from any particular institution. As part of its risk management processes, HP performs periodic evaluations of the relative credit standing of these financial institutions. HP has not sustained material credit losses from instruments held at these financial institutions. HP utilizes derivative contracts to protect against the effects of foreign currency 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 these distributors' and resellers' aggregated business deteriorates substantially, HP's operating results could be adversely affected. The ten largest distributor and reseller receivable balances, which were concentrated primarily in North America and Europe, collectively represented approximately 20% and 21% of gross accounts receivable at October 31, 2014 and 2013, respectively. No single customer accounts for more than 10% of gross 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 geographic regions. HP performs ongoing credit evaluations of the financial condition of its third-party distributors, resellers and other customers and may require collateral, such as letters of credit and bank guarantees, in certain circumstances. | |
HP utilizes outsourced manufacturers around the world to manufacture HP-designed products. HP may purchase product components from suppliers and sell those components to its outsourced manufacturers thereby creating receivable balances from the outsourced manufacturers. The three largest outsourced manufacturer receivable balances collectively represented 90% and 82% of HP's supplier receivables of $1.0 billion and $1.0 billion at October 31, 2014 and 2013, respectively. HP includes the supplier receivables in Other current assets in the Consolidated Balance Sheets on a gross basis. HP's credit risk associated with these receivables is mitigated wholly or in part, by the amount HP owes to these outsourced manufacturers, as HP generally has the legal right to offset its payables to the outsourced manufacturers against these receivables. HP does not reflect the sale of these components in revenue and does not recognize any profit on these component sales until the related products are sold by HP, at which time any profit is recognized as a reduction to cost of sales. | |
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. | |
Inventory | Inventory |
HP values inventory at the lower of cost or market. Cost is computed using standard cost which approximates actual cost on a first-in, first-out basis. Adjustments to reduce the cost of inventory to its net realizable value are made, if required, for estimated excess, obsolete or impaired balances. | |
Property, Plant and Equipment | 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 expense is recognized on a straight-line basis 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. On retirement or disposition, the asset cost and related accumulated depreciation are removed from the Consolidated Balance Sheets 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. | |
Software Development Costs | Software Development Costs |
HP capitalizes costs incurred to acquire or develop software for resale subsequent to establishing technological feasibility for the software, 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 life for capitalized software for resale is generally three years or less. Software development costs incurred subsequent to establishing technological feasibility are generally not significant. | |
Business Combinations | Business Combinations |
HP includes the results of operations of acquired businesses in HP's consolidated results prospectively from the date 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 company and HP and the value of the acquired assembled workforce, neither of which qualifies for recognition as an intangible asset. Acquisition-related expenses and post-acquisition restructuring costs are recognized separately from the business combination and are expensed as incurred. | |
Goodwill | Goodwill |
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 2014, HP performed a quantitative test for all of its reporting units. | |
Goodwill is tested for impairment at the reporting unit level. At the beginning of its first quarter of fiscal 2014, HP made a change to its reporting units. In connection with continued operational synergies and interdependencies between the Enterprise Servers, Storage and Networking reporting unit and the Technology Services ("TS") reporting unit within the Enterprise Group ("EG") segment, HP combined these reporting units to create the EG reporting unit. As of October 31, 2014, HP's reporting units are consistent with the reportable segments identified in Note 2, except for Enterprise Services ("ES"), which consists of two reporting units: MphasiS Limited and the remainder of ES. | |
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 on the weighted-average cost of capital adjusted for the relevant risk associated with business-specific characteristics and the uncertainty related to the reporting unit's ability to execute on the projected cash flows. Under the market approach, HP estimates fair value based on market multiples of revenue and earnings derived from comparable publicly-traded companies with similar operating and investment characteristics as the reporting unit. HP weights the fair value derived from the market approach depending on the level of comparability of these publicly-traded companies to the reporting unit. When market comparables are not meaningful or not available, HP estimates the fair value of a reporting unit using only the income approach. For the MphasiS Limited reporting unit, HP utilized the quoted market price in an active market to estimate fair value. | |
In order to assess the reasonableness of the estimated fair value of HP's reporting units, HP compares the aggregate reporting unit fair value to HP's market capitalization and calculates an implied control premium (the excess of the sum of the reporting units' fair value 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 result in a change to the estimated fair value for certain or all reporting units. | |
If the fair value of a reporting unit exceeds the carrying amount of the net assets assigned to that reporting unit, goodwill is not impaired and no further testing is required. If the fair value of the reporting unit is less than its carrying amount, then HP performs the second step of the goodwill 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 in the same manner as if the reporting unit was being acquired in a business combination. 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. | |
Goodwill is tested for impairment at the reporting unit level. | |
HP will continue to evaluate goodwill on an annual basis as of the beginning of its fourth fiscal quarter and whenever events or changes in circumstances indicate there may be a potential impairment. | |
Intangible Assets and Long-Lived Assets | 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 the recoverability of assets based on the estimated undiscounted future cash flows expected to result from the use and eventual disposition of the asset. If the undiscounted future cash flows are less than the carrying amount, the asset is impaired. 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. | |
Debt and Marketable Equity Securities | Debt and Marketable Equity Securities Investments |
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, in Accumulated other comprehensive loss in the Consolidated Balance Sheets. Realized gains and losses for available-for-sale securities are calculated based on the specific identification method and included in Interest and other, net in the Consolidated Statements of Earnings. HP monitors its investment portfolio for potential impairment on a quarterly basis. When the carrying amount of an investment in debt securities exceeds its fair value and the decline in value is determined to be other-than-temporary (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, is recorded in Accumulated other comprehensive loss in the Consolidated Balance Sheets. | |
Derivatives | Derivatives |
HP uses derivative financial instruments, primarily 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 11 for a full description of HP's derivative financial instrument activities and related accounting policies | |
Equity securities in privately held companies include cost basis and equity method investments and are included in Long-term financing receivables and other assets in the Consolidated Balance Sheets. | |
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 the fair value of assets and liabilities. HP does not have any leveraged derivatives and does not use derivative contracts for speculative purposes. HP may designate its derivative contracts as fair value hedges, cash flow hedges or hedges of the foreign currency exposure of a net investment in a foreign operation ("net investment hedges"). Additionally, for derivatives not designated as hedging instruments, HP categorizes those economic hedges as other derivatives. HP recognizes all derivative instruments at fair value in the Consolidated Balance Sheets. HP classifies cash flows from its 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 counterparty credit risk, HP has a policy of only entering into derivative contracts with carefully selected major financial institutions based on their credit ratings and other factors, and HP maintains dollar risk limits that correspond to each financial 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 its counterparties. Master netting agreements further mitigate credit exposure to counterparties by permitting HP to net amounts due from HP to counterparty against amounts due to HP from the same counterparty under certain conditions. | |
To further mitigate credit exposure to counterparties, HP has collateral security agreements that allow HP to hold collateral from, or require HP to post collateral to, counterparties when aggregate derivative fair values exceed contractually established thresholds which are generally based on the credit ratings of HP and its counterparties. If HP's or the counterparty's credit rating falls below a specified credit rating, either party has the right to request full collateralization of the derivatives' net liability position. Collateral is generally posted within two business days. The fair value of derivatives with credit contingent features in a net liability position was $38 million and $207 million at October 31, 2014 and October 31, 2013, respectively, all of which were fully collateralized within two business days. | |
Under HP's derivative contracts, the counterparty can terminate all outstanding trades following a covered change of control event affecting HP that results in the surviving entity being rated below a specified credit rating. This credit contingent provision did not affect HP's financial position or cash flows as of October 31, 2014 and October 31, 2013. | |
Fair Value Hedges | |
HP issues long-term debt in U.S. dollars based on market conditions at the time of financing. HP may enter into fair value hedges, such as interest rate swaps, to reduce the exposure of its debt portfolio to changes in fair value resulting from changes in interest rates by achieving a primarily U.S. dollar LIBOR-based floating interest 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 may designate these swaps as fair value hedges. | |
For derivative instruments that are designated and qualify as fair value hedges, HP recognizes the change in fair value of the derivative instrument, as well as the offsetting change in the fair value of the hedged item, in Interest and other, net in the Consolidated Statements of Earnings in the period of change. | |
Cash Flow Hedges | |
HP uses a combination of forward contracts and option contracts designated as cash flow hedges to protect against the foreign currency exchange rate risks inherent in its forecasted net revenue and, to a lesser extent, cost of sales, operating expenses, and intercompany loans denominated in currencies other than the U.S. dollar. HP's foreign currency cash flow hedges mature generally within twelve months; however, hedges related to longer term procurement arrangements extend several years and forward contracts associated with sales-type and direct-financing leases and intercompany loans extend for the duration of the lease or loan term, which typically range from two to five years. | |
For derivative instruments that are designated and qualify as cash flow hedges, HP initially records changes in fair value for the effective portion of 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 its cash flow hedges in the same financial statement line item as changes in the fair value of the hedged item. | |
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. HP records the effective portion of such derivative instruments together with changes in the fair value of 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 used to hedge foreign currency-denominated balance sheet exposures. HP also uses total return swaps and, to a lesser extent, interest rate swaps, based on equity or fixed income indices, to hedge its executive deferred compensation plan liability. | |
For derivative instruments not designated as hedging instruments, HP recognizes changes in fair value of the derivative instrument, as well as the offsetting change in the fair value of the hedged item, in Interest and other net in the Consolidated Statements of Earnings in the period of change. | |
Hedge Effectiveness | |
For interest rate swaps designated as fair value hedges, HP measures hedge effectiveness by offsetting the change in fair value of the hedged 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 hedge effectiveness by comparing the cumulative change in fair value of the hedge contract with the cumulative change in fair value of the hedged item, both of which are based on forward rates. HP recognizes any ineffective portion of the hedge in the Consolidated Statements of Earnings in the same period in which ineffectiveness occurs. Amounts excluded from the assessment of effectiveness are recognized in the Consolidated Statements of Earnings in the period they arise. | |
Loss Contingencies | Loss Contingencies |
HP is involved in various lawsuits, claims, investigations and proceedings that arise in the ordinary course of business. HP records a liability for contingencies when it believes it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. See Note 15 for a full description of HP's loss contingencies and related accounting policies | |
HP is involved in lawsuits, claims, investigations and proceedings, including those identified below, consisting of IP, commercial, securities, employment, employee benefits and environmental matters that arise in the ordinary course of business. HP accrues a liability when management believes that it is both probable that a liability has been incurred and the amount of loss can be reasonably estimated. HP believes it has recorded adequate provisions for any such matters and, as of October 31, 2014, it was not reasonably possible that a material loss had been incurred in excess of the amounts recognized in HP's financial statements. HP reviews these matters at least quarterly and adjusts its accruals to reflect the impact of negotiations, settlements, rulings, advice of legal counsel, and other information and events pertaining to a particular case. Based on its experience, HP believes that any damage amounts claimed in the specific matters discussed below are not a meaningful indicator of HP's potential liability. Litigation is inherently unpredictable. However, HP believes it has valid defenses with respect to legal matters pending against it. Nevertheless, cash flows or results of operations could be materially affected in any particular period by the resolution of one or more of these contingencies. | |
Segment Policy | Segment Policy |
HP derives the results of the business segments directly from its internal management reporting system. The accounting policies HP uses to derive segment results are substantially the same as those the consolidated company uses. Management measures the performance of each segment based on several metrics, including earnings from operations. Management uses these results, in part, to evaluate the performance of, and to allocate resources to, each of the segments. | |
Segment revenue includes revenues from sales to external customers and intersegment revenues that reflect transactions between the segments on an arm's-length basis. Intersegment revenues primarily consist of sales of hardware and software that are sourced internally and, in the majority of the cases, are financed as operating leases by HPFS. HP's consolidated net revenue is derived and reported after the elimination of intersegment revenues from such arrangements. | |
HP periodically engages in intercompany licensing arrangements that may result in advance payments between subsidiaries. Revenues from intercompany licensing arrangements are deferred and recognized ratably over the term of the arrangement by the legal entities involved in such transactions; however, these payments are eliminated from revenues as reported by HP and its business segments. As disclosed in Note 6, during fiscal 2014, HP executed a multi-year intercompany licensing arrangement on which advanced royalty payments of $10.4 billion were received in the U.S. from a foreign consolidated affiliate. Deferred intercompany royalty revenues of $9.9 billion will be recognized over the life of the arrangement through 2029 in the respective legal entities, but eliminated from both HP consolidated and segment revenues. | |
Financing interest in the Consolidated Statements of Earnings reflects interest expense on debt attributable to HPFS. Debt attributable to HPFS consists of intercompany equity that is treated as debt for segment reporting purposes, intercompany debt, and borrowing- and funding-related activity associated with HPFS and its subsidiaries. | |
HP does not allocate to its segments certain operating expenses, which it manages at the corporate level. These unallocated costs include certain corporate governance costs, stock-based compensation expense, amortization of intangible assets, impairment of goodwill and intangible assets, restructuring charges and acquisition-related charges. | |
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 on observable inputs of comparable market transactions. For corporate and government debt securities traded on active exchanges, fair value is based on 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 adjusted for cash flows, if necessary. In making such an assessment, a variety of factors are reviewed by management, including, but not limited to, the timeliness of NAV as reported by the asset manager and changes in general economic and market conditions subsequent to the last NAV reported by the asset manager. 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 in either Level 2 or Level 3 of the fair value hierarchy. Common collective trusts, interests 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, including insurance group annuity contracts, 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. |
Financing Receivables Allowance for Credit Loss and Reserves Policy | HP includes the current portion in Financing receivables and amounts due after one year, net in Long-term financing receivables and other assets in the accompanying Consolidated Balance Sheets. |
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 geographic 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 credit enhancements, such as guarantees, letters of credit or security deposits. | |
Allowance for Doubtful Accounts | |
The allowance for doubtful accounts for financing receivables 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 financing receivables with identified exposures, such as customer defaults, bankruptcy or other events, that make it unlikely HP will recover its investment. 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 considered probable, HP records a specific reserve. HP generally writes off a receivable or records a specific reserve when a receivable becomes 180 days past due, or sooner if HP determines that the receivable is not collectible. | |
Financing Receivables, Non-Accrual and Past Due Status Policy | 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, which is suspension of interest accrual, and considers such receivables to be non-performing at the earlier of the time at which full payment of principal and interest becomes doubtful or the receivable becomes 90 days past due. Subsequently, HP may recognize revenue on non-accrual financing receivables as payments are received, which is 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, all cash receipts are applied to the carrying amount of the financing receivable, which is the cost recovery method. In certain circumstances, such as when HP deems a delinquency to be of an administrative nature, financing receivables may accrue interest after becoming 90 days past due. The non-accrual status of a financing receivable may not impact a customer's risk rating. After all of a customer's delinquent principal and interest balances are settled, HP may return the related financing receivable to accrual status. | |
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 | |
HP uses valuation techniques that are based upon observable and unobservable inputs. Observable inputs are developed using market data such as publicly available information and reflect the assumptions market participants would use, while unobservable inputs are developed using the best information available about the assumptions market participants would use. Assets and liabilities are classified in the fair value hierarchy based on the lowest level input that is significant to the fair value measurement: | |
Level 1—Quoted prices (unadjusted) in active markets for identical assets or liabilities. | |
Level 2—Quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability and market-corroborated inputs. | |
Level 3—Unobservable inputs for the asset or liability. | |
The fair value hierarchy gives the highest priority to observable inputs and lowest priority to unobservable inputs. | |
Valuation Techniques | |
Cash Equivalents and Investments: HP holds time deposits, money market funds, mutual funds, other debt securities primarily consisting of corporate and foreign government notes and bonds, and common stock and equivalents. HP values cash equivalents and equity investments using quoted market prices, alternative pricing sources, including NAV, or models utilizing market observable inputs. The fair value of debt investments was based on quoted market prices or model-driven valuations using inputs primarily derived from or corroborated by observable market data, and, in certain instances, valuation models that utilize assumptions which cannot be corroborated with observable market data. | |
Derivative Instruments: HP uses forward contracts, interest rate and total return swaps and option contracts to hedge certain foreign currency and interest rate exposures. HP uses industry standard valuation models to measure fair value. Where applicable, these models project future cash flows and discount the future amounts to present value using market-based observable inputs, including interest rate curves, HP and counterparty credit risk, foreign exchange rates, and forward and spot prices for currencies and interest rates. See Note 11 for a further discussion of HP's use of derivative instruments. | |
Other Fair Value Disclosures | |
Short- and Long-Term Debt: HP estimates the fair value of its debt primarily using an expected present value technique, which is based on observable market inputs using interest rates currently available to companies of similar credit standing for similar terms and remaining maturities, and considering its own credit risk. The portion of HP's debt that is hedged is reflected in the Consolidated Balance Sheets as an amount equal to the debt's carrying amount and a fair value adjustment representing changes in the fair value of the hedged debt obligations arising from movements in benchmark interest rates | |
Other Financial Instruments: For the balance of HP's financial instruments, primarily accounts receivable, accounts payable and financial liabilities included in other accrued liabilities, the carrying amounts approximate fair value due to their short maturities. If measured at fair value in the Consolidated Balance Sheets, these other financial instruments would be classified in Level 2 or Level 3 of the fair value hierarchy. | |
Non-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 in the period an impairment charge is recognized. If measured at fair value in the Consolidated Balance Sheets, these would generally be classified in Level 3 of the fair value hierarchy. | |
Warranty Policy | 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 and ongoing product failure rates, as well as specific product class failures outside of HP's baseline experience, affect the estimated warranty obligation. | |
Cash and Cash Equivalents Policy | All highly liquid investments with original maturities of three months or less at the date of acquisition are considered cash equivalents. |
Offsetting of Derivatives Policy | Offsetting of Derivative Instruments |
HP recognizes all derivative instruments on a gross basis in the Consolidated Balance Sheets. HP does not offset the fair value of its derivative instruments against the fair value of cash collateral posted under its collateral security agreements | |
Earnings Per Share Policy | HP calculates basic net EPS using net earnings (loss) and the weighted-average number of shares outstanding during the reporting period. Diluted net EPS includes any dilutive effect of restricted stock awards, stock options, performance-based awards and shares purchased under the 2011 ESPP. |
HP excludes options where the assumed proceeds exceed the average market price from the calculation of diluted net EPS, because their effect would be anti-dilutive. The assumed proceeds of an option include the sum of its exercise price, average unrecognized compensation cost and excess tax benefits. | |
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | |||||||||||||||||||||||||
Oct. 31, 2014 | ||||||||||||||||||||||||||
Segment Information | ||||||||||||||||||||||||||
Schedule of Revenue and Earnings (Loss) from Operations, by Segment | ||||||||||||||||||||||||||
Printing and | ||||||||||||||||||||||||||
Personal Systems | ||||||||||||||||||||||||||
Personal | Printing | Enterprise | Enterprise | Software | HP Financial | Corporate | Total | |||||||||||||||||||
Systems | Group | Services | Services | Investments | ||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||
2014 | ||||||||||||||||||||||||||
Net revenue | $ | 33,304 | $ | 22,719 | $ | 26,809 | $ | 21,297 | $ | 3,607 | $ | 3,416 | $ | 302 | $ | 111,454 | ||||||||||
Intersegment net revenue and other | 999 | 260 | 1,005 | 1,101 | 326 | 82 | — | 3,773 | ||||||||||||||||||
Total segment net revenue | $ | 34,303 | $ | 22,979 | $ | 27,814 | $ | 22,398 | $ | 3,933 | $ | 3,498 | $ | 302 | $ | 115,227 | ||||||||||
Earnings (loss) from operations | $ | 1,270 | $ | 4,185 | $ | 4,008 | $ | 803 | $ | 872 | $ | 389 | $ | (199 | ) | $ | 11,328 | |||||||||
2013 | ||||||||||||||||||||||||||
Net revenue | $ | 31,232 | $ | 23,685 | $ | 27,045 | $ | 23,041 | $ | 3,701 | $ | 3,570 | $ | 24 | $ | 112,298 | ||||||||||
Intersegment net revenue and other | 947 | 211 | 1,036 | 1,020 | 320 | 59 | — | 3,593 | ||||||||||||||||||
Total segment net revenue | $ | 32,179 | $ | 23,896 | $ | 28,081 | $ | 24,061 | $ | 4,021 | $ | 3,629 | $ | 24 | $ | 115,891 | ||||||||||
Earnings (loss) from operations | $ | 980 | $ | 3,933 | $ | 4,259 | $ | 679 | $ | 868 | $ | 399 | $ | (316 | ) | $ | 10,802 | |||||||||
2012 | ||||||||||||||||||||||||||
Net revenue | $ | 34,892 | $ | 24,317 | $ | 28,349 | $ | 25,090 | $ | 3,868 | $ | 3,784 | $ | 57 | $ | 120,357 | ||||||||||
Intersegment net revenue and other | 951 | 221 | 1,294 | 903 | 303 | 35 | 1 | 3,708 | ||||||||||||||||||
Total segment net revenue | $ | 35,843 | $ | 24,538 | $ | 29,643 | $ | 25,993 | $ | 4,171 | $ | 3,819 | $ | 58 | $ | 124,065 | ||||||||||
Earnings (loss) from operations | $ | 1,724 | $ | 3,612 | $ | 5,123 | $ | 1,045 | $ | 836 | $ | 388 | $ | (233 | ) | $ | 12,495 | |||||||||
Schedule of Reconciliation of Revenues and Earnings before Taxes from Segments to Consolidated | ||||||||||||||||||||||||||
For the fiscal years ended October 31 | ||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||
Net Revenue: | ||||||||||||||||||||||||||
Total segments | $ | 115,227 | $ | 115,891 | $ | 124,065 | ||||||||||||||||||||
Elimination of intersegment net revenue and other | (3,773 | ) | (3,593 | ) | (3,708 | ) | ||||||||||||||||||||
Total HP consolidated net revenue | $ | 111,454 | $ | 112,298 | $ | 120,357 | ||||||||||||||||||||
Earnings before taxes: | ||||||||||||||||||||||||||
Total segment earnings from operations | $ | 11,328 | $ | 10,802 | $ | 12,495 | ||||||||||||||||||||
Corporate and unallocated costs and eliminations | (953 | ) | (786 | ) | (787 | ) | ||||||||||||||||||||
Stock-based compensation expense | (560 | ) | (500 | ) | (635 | ) | ||||||||||||||||||||
Amortization of intangible assets | (1,000 | ) | (1,373 | ) | (1,784 | ) | ||||||||||||||||||||
Impairment of goodwill and intangible assets | — | — | (18,035 | ) | ||||||||||||||||||||||
Restructuring charges | (1,619 | ) | (990 | ) | (2,266 | ) | ||||||||||||||||||||
Acquisition-related charges | (11 | ) | (22 | ) | (45 | ) | ||||||||||||||||||||
Interest and other, net | (628 | ) | (621 | ) | (876 | ) | ||||||||||||||||||||
Total HP consolidated earnings (loss) before taxes | $ | 6,557 | $ | 6,510 | $ | (11,933 | ) | |||||||||||||||||||
Schedule of Reconciliation of Assets from Segments to Consolidated | ||||||||||||||||||||||||||
As of October 31 | ||||||||||||||||||||||||||
2014 | 2013(1) | |||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||
Personal Systems | $ | 12,104 | $ | 11,690 | ||||||||||||||||||||||
Printing | 10,063 | 11,088 | ||||||||||||||||||||||||
Printing and Personal Systems Group | 22,167 | 22,778 | ||||||||||||||||||||||||
Enterprise Group | 27,236 | 29,759 | ||||||||||||||||||||||||
Enterprise Services | 13,472 | 16,217 | ||||||||||||||||||||||||
Software | 11,575 | 11,940 | ||||||||||||||||||||||||
HP Financial Services | 13,529 | 12,746 | ||||||||||||||||||||||||
Corporate Investments | 34 | 105 | ||||||||||||||||||||||||
Corporate and unallocated assets | 15,193 | 12,131 | ||||||||||||||||||||||||
Total HP consolidated assets | $ | 103,206 | $ | 105,676 | ||||||||||||||||||||||
-1 | HP has revised the presentation for the fiscal year ended October 31, 2013 in order to present comparable information with the current year period. | |||||||||||||||||||||||||
Schedule of net revenue by geographical areas | ||||||||||||||||||||||||||
For the fiscal years ended October 31 | ||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||
U.S. | $ | 38,805 | $ | 40,284 | $ | 42,140 | ||||||||||||||||||||
Other countries | 72,649 | 72,014 | 78,217 | |||||||||||||||||||||||
Total net revenue | $ | 111,454 | $ | 112,298 | $ | 120,357 | ||||||||||||||||||||
Schedule of net property, plant and equipment by geographical areas | ||||||||||||||||||||||||||
As of October 31 | ||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||
U.S. | $ | 5,668 | $ | 5,546 | ||||||||||||||||||||||
The United Kingdom. | 1,053 | 1,090 | ||||||||||||||||||||||||
Other countries | 4,619 | 4,827 | ||||||||||||||||||||||||
Total net property, plant and equipment | $ | 11,340 | $ | 11,463 | ||||||||||||||||||||||
Schedule of Revenue by Segment and Business Unit | ||||||||||||||||||||||||||
For the fiscal years ended October 31 | ||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||
Notebooks | $ | 17,540 | $ | 16,029 | $ | 18,830 | ||||||||||||||||||||
Desktops | 13,197 | 12,844 | 13,888 | |||||||||||||||||||||||
Workstations | 2,218 | 2,147 | 2,148 | |||||||||||||||||||||||
Other | 1,348 | 1,159 | 977 | |||||||||||||||||||||||
Personal Systems | 34,303 | 32,179 | 35,843 | |||||||||||||||||||||||
Supplies | 14,917 | 15,716 | 16,151 | |||||||||||||||||||||||
Commercial Hardware | 5,717 | 5,744 | 5,946 | |||||||||||||||||||||||
Consumer Hardware | 2,345 | 2,436 | 2,441 | |||||||||||||||||||||||
Printing | 22,979 | 23,896 | 24,538 | |||||||||||||||||||||||
Total Printing and Personal Systems Group | 57,282 | 56,075 | 60,381 | |||||||||||||||||||||||
Industry Standard Servers | 12,474 | 12,102 | 12,582 | |||||||||||||||||||||||
Technology Services | 8,466 | 8,788 | 9,152 | |||||||||||||||||||||||
Storage | 3,316 | 3,475 | 3,815 | |||||||||||||||||||||||
Networking | 2,629 | 2,526 | 2,482 | |||||||||||||||||||||||
Business Critical Systems | 929 | 1,190 | 1,612 | |||||||||||||||||||||||
Enterprise Group | 27,814 | 28,081 | 29,643 | |||||||||||||||||||||||
Infrastructure Technology Outsourcing | 14,038 | 15,223 | 16,176 | |||||||||||||||||||||||
Application and Business Services | 8,360 | 8,838 | 9,817 | |||||||||||||||||||||||
Enterprise Services | 22,398 | 24,061 | 25,993 | |||||||||||||||||||||||
Software | 3,933 | 4,021 | 4,171 | |||||||||||||||||||||||
HP Financial Services | 3,498 | 3,629 | 3,819 | |||||||||||||||||||||||
Corporate Investments | 302 | 24 | 58 | |||||||||||||||||||||||
Total segment net revenue | 115,227 | 115,891 | 124,065 | |||||||||||||||||||||||
Eliminations of intersegment net revenue and other | (3,773 | ) | (3,593 | ) | (3,708 | ) | ||||||||||||||||||||
Total net revenue | $ | 111,454 | $ | 112,298 | $ | 120,357 | ||||||||||||||||||||
Restructuring_Tables
Restructuring (Tables) | 12 Months Ended | ||||||||||||||||||||||
Oct. 31, 2014 | |||||||||||||||||||||||
Restructuring Charges | |||||||||||||||||||||||
Summary of Restructuring Plans | |||||||||||||||||||||||
Fiscal 2014 | As of October 31, | ||||||||||||||||||||||
2014 | |||||||||||||||||||||||
Balance, | Charges | Cash | Other | Balance, | Total | Total | |||||||||||||||||
October 31, | Payments | Adjustments | October 31, | Costs | Expected | ||||||||||||||||||
2013 | and Non-Cash | 2014 | Incurred | Costs to Be | |||||||||||||||||||
Settlements | to Date | Incurred | |||||||||||||||||||||
In millions | |||||||||||||||||||||||
Fiscal 2012 Plan | |||||||||||||||||||||||
Severance and EER | $ | 945 | $ | 1,357 | $ | (1,233 | ) | $ | (114 | ) | $ | 955 | $ | 4,393 | $ | 5,000 | |||||||
Infrastructure and other | 40 | 268 | (208 | ) | (2 | ) | 98 | 515 | 540 | ||||||||||||||
Total 2012 Plan | 985 | 1,625 | (1,441 | ) | (116 | ) | 1,053 | 4,908 | 5,540 | ||||||||||||||
Other Plans: | |||||||||||||||||||||||
Severance | 10 | — | (3 | ) | — | 7 | 2,629 | 2,629 | |||||||||||||||
Infrastructure | 122 | (6 | ) | (62 | ) | — | 54 | 1,433 | 1,437 | ||||||||||||||
Total Other Plans | 132 | (6 | ) | (65 | ) | — | 61 | 4,062 | 4,066 | ||||||||||||||
Total restructuring plans | $ | 1,117 | $ | 1,619 | $ | (1,506 | ) | $ | (116 | ) | $ | 1,114 | $ | 8,970 | $ | 9,606 | |||||||
Reflected in Consolidated Balance Sheets: | |||||||||||||||||||||||
Accrued restructuring | $ | 901 | $ | 898 | |||||||||||||||||||
Other liabilities | $ | 216 | $ | 216 | |||||||||||||||||||
Retirement_and_PostRetirement_1
Retirement and Post-Retirement Benefit Plans (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
Oct. 31, 2014 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement and Post-Retirement Benefit Plans | ||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of fair value of plan assets and projected benefit obligations for US defined benefit plans and DPSP | ||||||||||||||||||||||||||||||||||||||||||||||||||
For the fiscal years ended October 31 | ||||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||||||||||||||||||||
Plan Assets | Projected | Plan Assets | Projected | |||||||||||||||||||||||||||||||||||||||||||||||
Benefit | Benefit | |||||||||||||||||||||||||||||||||||||||||||||||||
Obligation | Obligation | |||||||||||||||||||||||||||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. defined benefit plans | $ | 11,979 | $ | 13,756 | $ | 10,866 | $ | 11,866 | ||||||||||||||||||||||||||||||||||||||||||
DPSP | 828 | 828 | 837 | 837 | ||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 12,807 | $ | 14,584 | $ | 11,703 | $ | 12,703 | ||||||||||||||||||||||||||||||||||||||||||
Schedule of net pension and post-retirement benefit (credit) costs | ||||||||||||||||||||||||||||||||||||||||||||||||||
For the fiscal years ended October 31 | ||||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||||||||||
U.S. Defined | Non-U.S. Defined | Post-Retirement | ||||||||||||||||||||||||||||||||||||||||||||||||
Benefit Plans | Benefit Plans | Benefit Plans | ||||||||||||||||||||||||||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||||||||||||||||||||||||||
Service cost | $ | 1 | $ | 1 | $ | 1 | $ | 308 | $ | 337 | $ | 294 | $ | 5 | $ | 6 | $ | 7 | ||||||||||||||||||||||||||||||||
Interest cost | 569 | 560 | 566 | 737 | 676 | 690 | 32 | 31 | 35 | |||||||||||||||||||||||||||||||||||||||||
Expected return on plan assets | (811 | ) | (845 | ) | (793 | ) | (1,140 | ) | (1,007 | ) | (816 | ) | (34 | ) | (34 | ) | (38 | ) | ||||||||||||||||||||||||||||||||
Amortization and deferrals: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Actuarial loss (gain) | 15 | 77 | 43 | 318 | 341 | 235 | (10 | ) | 2 | (3 | ) | |||||||||||||||||||||||||||||||||||||||
Prior service benefit | — | — | — | (23 | ) | (27 | ) | (24 | ) | (41 | ) | (67 | ) | (79 | ) | |||||||||||||||||||||||||||||||||||
Net periodic benefit (credit) cost | (226 | ) | (207 | ) | (183 | ) | 200 | 320 | 379 | (48 | ) | (62 | ) | (78 | ) | |||||||||||||||||||||||||||||||||||
Curtailment (gain) loss | — | — | — | (7 | ) | (3 | ) | 4 | — | (7 | ) | (30 | ) | |||||||||||||||||||||||||||||||||||||
Settlement loss (gain) | 1 | 12 | 11 | 12 | 18 | (18 | ) | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Special termination benefits | — | — | 833 | 50 | 31 | 17 | 32 | (5 | ) | 227 | ||||||||||||||||||||||||||||||||||||||||
Net benefit (credit) cost | $ | (225 | ) | $ | (195 | ) | $ | 661 | $ | 255 | $ | 366 | $ | 382 | $ | (16 | ) | $ | (74 | ) | $ | 119 | ||||||||||||||||||||||||||||
Schedule of weighted average assumptions used to calculate net benefit (credit) cost | ||||||||||||||||||||||||||||||||||||||||||||||||||
For the fiscal years ended October 31 | ||||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||||||||||
U.S. Defined | Non-U.S. Defined | Post-Retirement | ||||||||||||||||||||||||||||||||||||||||||||||||
Benefit Plans | Benefit Plans | Benefit Plans | ||||||||||||||||||||||||||||||||||||||||||||||||
Discount rate | 4.9 | % | 4.1 | % | 4.8 | % | 3.9 | % | 3.8 | % | 4.5 | % | 3.9 | % | 3.0 | % | 4.4 | % | ||||||||||||||||||||||||||||||||
Expected increase in compensation levels | 2.0 | % | 2.0 | % | 2.0 | % | 2.4 | % | 2.4 | % | 2.5 | % | — | — | — | |||||||||||||||||||||||||||||||||||
Expected long-term return on plan assets | 7.7 | % | 7.8 | % | 7.6 | % | 7.0 | % | 7.2 | % | 6.4 | % | 8.9 | % | 9.0 | % | 10.0 | % | ||||||||||||||||||||||||||||||||
Schedule of funded status of the defined benefit and post-retirement benefit plans | ||||||||||||||||||||||||||||||||||||||||||||||||||
As of October 31 | ||||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||||||||||||||||||
U.S. Defined | Non-U.S. Defined | Post-Retirement | ||||||||||||||||||||||||||||||||||||||||||||||||
Benefit Plans | Benefit Plans | Benefit Plans | ||||||||||||||||||||||||||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||||||||||||||||||||||||||
Change in fair value of plan assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value—beginning of year | $ | 10,866 | $ | 11,536 | $ | 16,083 | $ | 14,021 | $ | 396 | $ | 395 | ||||||||||||||||||||||||||||||||||||||
Acquisition/addition of plans | — | — | 8 | 7 | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Actual return on plan assets | 1,648 | 629 | 1,814 | 1,842 | 83 | 32 | ||||||||||||||||||||||||||||||||||||||||||||
Employer contributions | 27 | 54 | 1,019 | 634 | 92 | 102 | ||||||||||||||||||||||||||||||||||||||||||||
Participant contributions | — | — | 64 | 63 | 54 | 72 | ||||||||||||||||||||||||||||||||||||||||||||
Benefits paid | (558 | ) | (1,320 | ) | (568 | ) | (504 | ) | (167 | ) | (205 | ) | ||||||||||||||||||||||||||||||||||||||
Settlement | (4 | ) | (33 | ) | (49 | ) | (96 | ) | — | — | ||||||||||||||||||||||||||||||||||||||||
Currency impact | — | — | (801 | ) | 116 | — | — | |||||||||||||||||||||||||||||||||||||||||||
Fair value—end of year | 11,979 | 10,866 | 17,570 | 16,083 | 458 | 396 | ||||||||||||||||||||||||||||||||||||||||||||
Change in benefit obligation: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Projected benefit obligation—beginning of year | 11,866 | 14,237 | 19,152 | 18,097 | 867 | 1,056 | ||||||||||||||||||||||||||||||||||||||||||||
Acquisition/addition of plans | — | — | 10 | 14 | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Service cost | 1 | 1 | 308 | 337 | 5 | 6 | ||||||||||||||||||||||||||||||||||||||||||||
Interest cost | 569 | 560 | 737 | 676 | 32 | 31 | ||||||||||||||||||||||||||||||||||||||||||||
Participant contributions | — | — | 64 | 63 | 54 | 72 | ||||||||||||||||||||||||||||||||||||||||||||
Actuarial loss (gain) | 1,882 | (1,579 | ) | 2,500 | 343 | 22 | (85 | ) | ||||||||||||||||||||||||||||||||||||||||||
Benefits paid | (558 | ) | (1,320 | ) | (568 | ) | (504 | ) | (167 | ) | (205 | ) | ||||||||||||||||||||||||||||||||||||||
Plan amendments | — | — | — | 6 | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Curtailment | — | — | (49 | ) | 13 | — | — | |||||||||||||||||||||||||||||||||||||||||||
Settlement | (4 | ) | (33 | ) | (49 | ) | (100 | ) | — | — | ||||||||||||||||||||||||||||||||||||||||
Special termination benefits | — | — | 50 | 31 | 32 | (5 | ) | |||||||||||||||||||||||||||||||||||||||||||
Currency impact | — | — | (935 | ) | 176 | (5 | ) | (3 | ) | |||||||||||||||||||||||||||||||||||||||||
Projected benefit obligation—end of year | 13,756 | 11,866 | 21,220 | 19,152 | 840 | 867 | ||||||||||||||||||||||||||||||||||||||||||||
Funded status at end of year | $ | (1,777 | ) | $ | (1,000 | ) | $ | (3,650 | ) | $ | (3,069 | ) | $ | (382 | ) | $ | (471 | ) | ||||||||||||||||||||||||||||||||
Accumulated benefit obligation | $ | 13,755 | $ | 11,865 | $ | 20,207 | $ | 18,254 | ||||||||||||||||||||||||||||||||||||||||||
Schedule of weighted-average assumptions used to calculate the projected benefit obligations | ||||||||||||||||||||||||||||||||||||||||||||||||||
For the fiscal years ended October 31 | ||||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||||||||||||||||||
U.S. Defined | Non-U.S. | Post-Retirement | ||||||||||||||||||||||||||||||||||||||||||||||||
Benefit Plans | Defined | Benefit Plans | ||||||||||||||||||||||||||||||||||||||||||||||||
Benefit Plans | ||||||||||||||||||||||||||||||||||||||||||||||||||
Discount rate | 4.4 | % | 4.9 | % | 3.2 | % | 3.9 | % | 3.6 | % | 3.9 | % | ||||||||||||||||||||||||||||||||||||||
Expected increase in compensation levels | 2.0 | % | 2.0 | % | 2.5 | % | 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 | ||||||||||||||||||||||||||||||||||||||||||||||||||
As of October 31 | ||||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||||||||||||||||||
U.S. Defined | Non-U.S. Defined | Post-Retirement | ||||||||||||||||||||||||||||||||||||||||||||||||
Benefit Plans | Benefit Plans | Benefit Plans | ||||||||||||||||||||||||||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||||||||||||||||||||||||||
Noncurrent assets | $ | — | $ | — | $ | 421 | $ | 479 | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||||
Current liabilities | (35 | ) | (33 | ) | (43 | ) | (46 | ) | (47 | ) | (109 | ) | ||||||||||||||||||||||||||||||||||||||
Noncurrent liabilities | (1,742 | ) | (967 | ) | (4,028 | ) | (3,502 | ) | (335 | ) | (362 | ) | ||||||||||||||||||||||||||||||||||||||
Funded status at end of year | $ | (1,777 | ) | $ | (1,000 | ) | $ | (3,650 | ) | $ | (3,069 | ) | (382 | ) | $ | (471 | ) | |||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||||||||||||||||
For the fiscal year ended October 31, 2014 | ||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Defined | Non-U.S. Defined | Post-Retirement | ||||||||||||||||||||||||||||||||||||||||||||||||
Benefit Plans | Benefit Plans | Benefit Plans | ||||||||||||||||||||||||||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net actuarial loss (gain) | $ | 1,405 | $ | 5,423 | $ | (115 | ) | |||||||||||||||||||||||||||||||||||||||||||
Prior service benefit | — | (186 | ) | (119 | ) | |||||||||||||||||||||||||||||||||||||||||||||
Total recognized in accumulated other comprehensive loss | $ | 1,405 | $ | 5,237 | $ | (234 | ) | |||||||||||||||||||||||||||||||||||||||||||
Summary of 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) | ||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Defined | Non-U.S. Defined | Post-Retirement | ||||||||||||||||||||||||||||||||||||||||||||||||
Benefit Plans | Benefit Plans | Benefit Plans | ||||||||||||||||||||||||||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net actuarial loss (gain) | $ | 54 | $ | 452 | $ | (10 | ) | |||||||||||||||||||||||||||||||||||||||||||
Prior service benefit | — | (22 | ) | (20 | ) | |||||||||||||||||||||||||||||||||||||||||||||
Total expected to be recognized in net periodic benefit cost (credit) | $ | 54 | $ | 430 | $ | (30 | ) | |||||||||||||||||||||||||||||||||||||||||||
Schedule of defined benefit plans with projected benefit obligations exceeding the fair value of plan assets | ||||||||||||||||||||||||||||||||||||||||||||||||||
As of October 31 | ||||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||||||||||||||||||||
U.S. Defined | Non-U.S. Defined | |||||||||||||||||||||||||||||||||||||||||||||||||
Benefit Plans | Benefit Plans | |||||||||||||||||||||||||||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||||||||||||||||||||||||||
Aggregate fair value of plan assets | $ | 11,979 | $ | 10,866 | $ | 12,701 | $ | 10,462 | ||||||||||||||||||||||||||||||||||||||||||
Aggregate projected benefit obligation | $ | 13,756 | $ | 11,866 | $ | 16,774 | $ | 14,010 | ||||||||||||||||||||||||||||||||||||||||||
Schedule of defined benefit plans with accumulated benefit obligations exceeding the fair value of plan assets | ||||||||||||||||||||||||||||||||||||||||||||||||||
As of October 31 | ||||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||||||||||||||||||||
U.S. Defined | Non-U.S. Defined | |||||||||||||||||||||||||||||||||||||||||||||||||
Benefit Plans | Benefit Plans | |||||||||||||||||||||||||||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||||||||||||||||||||||||||
Aggregate fair value of plan assets | $ | 11,979 | $ | 10,866 | $ | 12,578 | $ | 9,926 | ||||||||||||||||||||||||||||||||||||||||||
Aggregate accumulated benefit obligation | $ | 13,755 | $ | 11,865 | $ | 15,797 | $ | 12,703 | ||||||||||||||||||||||||||||||||||||||||||
Schedule of fair value of plan assets by asset category within the fair value hierarchy | ||||||||||||||||||||||||||||||||||||||||||||||||||
As of October 31, 2014 | ||||||||||||||||||||||||||||||||||||||||||||||||||
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. | $ | 1,787 | $ | — | $ | — | $ | 1,787 | $ | 2,935 | $ | 30 | $ | — | $ | 2,965 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||||||
Non-U.S. | 1,268 | — | — | 1,268 | 4,050 | 742 | 80 | 4,872 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||
Debt securities | ||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate | — | 3,283 | 7 | 3,290 | — | 2,935 | — | 2,935 | — | 20 | — | 20 | ||||||||||||||||||||||||||||||||||||||
Government(1) | — | 2,204 | — | 2,204 | — | 1,787 | — | 1,787 | — | 22 | — | 22 | ||||||||||||||||||||||||||||||||||||||
Alternative Investments | ||||||||||||||||||||||||||||||||||||||||||||||||||
Private Equity(2) | — | — | 1,284 | 1,284 | — | 2 | 51 | 53 | — | — | 271 | 271 | ||||||||||||||||||||||||||||||||||||||
Hybrids(3) | — | — | 3 | 3 | 114 | 2,466 | 43 | 2,623 | — | — | 1 | 1 | ||||||||||||||||||||||||||||||||||||||
Hedge Funds(4) | — | 346 | 263 | 609 | — | 103 | 285 | 388 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||
Real Estate Funds | — | — | — | — | 220 | 277 | 543 | 1,040 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||
Insurance Group Annuity Contracts | — | — | — | — | — | 44 | 79 | 123 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||
Common Collective Trusts and 103-12 Investment Entities(5) | — | 854 | — | 854 | — | — | — | — | — | 55 | — | 55 | ||||||||||||||||||||||||||||||||||||||
Registered Investment Companies(6) | 68 | 314 | — | 382 | — | — | — | — | 86 | 1 | — | 87 | ||||||||||||||||||||||||||||||||||||||
Cash and Cash Equivalents(7) | 161 | 66 | — | 227 | 573 | — | — | 573 | — | 6 | — | 6 | ||||||||||||||||||||||||||||||||||||||
Other(8) | (24 | ) | 95 | — | 71 | 79 | 130 | 2 | 211 | (4 | ) | — | — | (4 | ) | |||||||||||||||||||||||||||||||||||
Total | $ | 3,260 | $ | 7,162 | $ | 1,557 | $ | 11,979 | $ | 7,971 | $ | 8,516 | $ | 1,083 | $ | 17,570 | $ | 82 | $ | 104 | $ | 272 | $ | 458 | ||||||||||||||||||||||||||
-1 | Includes debt issued by national, state and local governments and agencies. | |||||||||||||||||||||||||||||||||||||||||||||||||
-2 | Includes limited partnerships such as equity, buyout, venture capital, real estate and other similar funds that invest in the U.S. and internationally where foreign currencies are hedged. | |||||||||||||||||||||||||||||||||||||||||||||||||
-3 | Includes a fund that invests in both private and public equities primarily in the U.S. 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 limited partnerships that invest both long and short primarily in common stocks and credit, relative value, event driven equity, distressed debt and macro strategies. Management of the hedge funds has the ability to shift investments from value to growth strategies, from small to large capitalization stocks and bonds, and from a net long position to a net short position. | |||||||||||||||||||||||||||||||||||||||||||||||||
-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 Registered Investment Entities. | |||||||||||||||||||||||||||||||||||||||||||||||||
-7 | Includes cash and cash equivalents such as short-term marketable securities. | |||||||||||||||||||||||||||||||||||||||||||||||||
-8 | Includes international insured contracts, derivative instruments and unsettled transactions. | |||||||||||||||||||||||||||||||||||||||||||||||||
As of October 31, 2013 | ||||||||||||||||||||||||||||||||||||||||||||||||||
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(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 such as equity, buyout, venture capital, real estate and other similar funds that invest in the U.S. and internationally where foreign currencies are hedged. | |||||||||||||||||||||||||||||||||||||||||||||||||
-3 | Includes a fund that invests in both private and public equities primarily in the U.S. 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 limited partnerships that invest both long and short primarily in common stocks and credit, relative value, event driven equity, distressed debt and macro strategies. Management of the hedge funds has the ability to shift investments from value to growth strategies, from small to large capitalization stocks and bonds, and from a net long position to a net short position. | |||||||||||||||||||||||||||||||||||||||||||||||||
-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 Registered Investment Entities. | |||||||||||||||||||||||||||||||||||||||||||||||||
-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 | ||||||||||||||||||||||||||||||||||||||||||||||||||
For the fiscal year ended October 31, 2014 | ||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Defined Benefit Plans | Non-U.S. Defined Benefit Plans | Post-Retirement | ||||||||||||||||||||||||||||||||||||||||||||||||
Benefit Plans | ||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Alternative | Equity | Alternative | Alternative | ||||||||||||||||||||||||||||||||||||||||||||||
Securities | Investments | Investments | Investments | |||||||||||||||||||||||||||||||||||||||||||||||
Corporate | Private | Hybrids | Hedge | Total | Non U.S. | Private | Hedge | Hybrids | Real | Insurance | Other | Total | Private | Hybrids | Total | |||||||||||||||||||||||||||||||||||
Debt | Equity | Funds | Equities | Equity | Funds | Estate | Group | Equity | ||||||||||||||||||||||||||||||||||||||||||
Annuities | ||||||||||||||||||||||||||||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance at October 31, 2013 | $ | — | $ | 1,250 | $ | 2 | $ | 113 | $ | 1,365 | $ | 77 | $ | 48 | $ | 204 | $ | — | $ | 325 | $ | 81 | $ | 2 | $ | 737 | $ | 234 | $ | 1 | $ | 235 | ||||||||||||||||||
Actual return on plan assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Relating to assets still held at the reporting date | — | 92 | 1 | 10 | 103 | 3 | 2 | 14 | — | 46 | (8 | ) | — | 57 | 51 | — | 51 | |||||||||||||||||||||||||||||||||
Relating to assets sold during the period | — | 169 | — | — | 169 | — | 2 | (1 | ) | — | — | — | — | 1 | 21 | — | 21 | |||||||||||||||||||||||||||||||||
Purchases, sales, and settlements (net) | 7 | (227 | ) | — | 140 | (80 | ) | — | (1 | ) | 68 | 43 | 108 | (2 | ) | — | 216 | (35 | ) | — | (35 | ) | ||||||||||||||||||||||||||||
Transfers in and/or out of Level 3 | — | — | — | — | — | — | — | — | — | 64 | 8 | — | 72 | — | — | — | ||||||||||||||||||||||||||||||||||
Ending balance at October 31, 2014 | $ | 7 | $ | 1,284 | $ | 3 | $ | 263 | $ | 1,557 | $ | 80 | $ | 51 | $ | 285 | $ | 43 | $ | 543 | $ | 79 | $ | 2 | $ | 1,083 | $ | 271 | $ | 1 | $ | 272 | ||||||||||||||||||
For the fiscal year ended October 31, 2013 | ||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Defined Benefit Plans | Non-U.S. Defined Benefit Plans | Post-Retirement | ||||||||||||||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||
Schedule of weighted-average target and actual asset allocations across the benefit plans | ||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Defined Benefit Plans | Non-U.S. Defined | Post-Retirement | ||||||||||||||||||||||||||||||||||||||||||||||||
Benefit Plans | Benefit Plans | |||||||||||||||||||||||||||||||||||||||||||||||||
Plan Assets | Plan Assets | Plan Assets | ||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2014 | 2014 | ||||||||||||||||||||||||||||||||||||||||||||||||
Target | Target | Target | ||||||||||||||||||||||||||||||||||||||||||||||||
Asset Category | Allocation | 2014 | 2013 | Allocation | 2014 | 2013 | Allocation | 2014 | 2013 | |||||||||||||||||||||||||||||||||||||||||
Public equity securities | 31.3 | % | 36.7 | % | 46.8 | % | 48.0 | % | 10.2 | % | 9.5 | % | ||||||||||||||||||||||||||||||||||||||
Private/other equity securities | 15.8 | % | 12.6 | % | 15.2 | % | 7.9 | % | 58.6 | % | 59.1 | % | ||||||||||||||||||||||||||||||||||||||
Real estate and other | 0.6 | % | — | 7.1 | % | 7.5 | % | — | — | |||||||||||||||||||||||||||||||||||||||||
Equity-related investments | 47.5 | % | 47.7 | % | 49.3 | % | 67.7 | % | 69.1 | % | 63.4 | % | 71.1 | % | 68.8 | % | 68.6 | % | ||||||||||||||||||||||||||||||||
Debt securities | 52.5 | % | 49.2 | % | 48.2 | % | 31.6 | % | 27.6 | % | 32.5 | % | 27.0 | % | 27.5 | % | 29.0 | % | ||||||||||||||||||||||||||||||||
Cash | — | 3.1 | % | 2.5 | % | 0.7 | % | 3.3 | % | 4.1 | % | 1.9 | % | 3.7 | % | 2.4 | % | |||||||||||||||||||||||||||||||||
Total | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||||||||||||||||||||||||
Schedule of estimated future benefits payable for the retirement and post-retirement plans | As of October 31, 2014, HP estimates that the future benefits payments for the retirement and post-retirement plans are as follows: | |||||||||||||||||||||||||||||||||||||||||||||||||
Fiscal year | U.S. Defined | Non-U.S. | Post-Retirement | |||||||||||||||||||||||||||||||||||||||||||||||
Benefit Plans | Defined | Benefit Plans | ||||||||||||||||||||||||||||||||||||||||||||||||
Benefit Plans | ||||||||||||||||||||||||||||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||||||||||||||||||||||||||
2015 | $ | 801 | $ | 567 | $ | 91 | ||||||||||||||||||||||||||||||||||||||||||||
2016 | 588 | 528 | 94 | |||||||||||||||||||||||||||||||||||||||||||||||
2017 | 613 | 560 | 82 | |||||||||||||||||||||||||||||||||||||||||||||||
2018 | 648 | 606 | 71 | |||||||||||||||||||||||||||||||||||||||||||||||
2019 | 694 | 659 | 68 | |||||||||||||||||||||||||||||||||||||||||||||||
Next five fiscal years to October 31, 2024 | 3,850 | 3,980 | 278 | |||||||||||||||||||||||||||||||||||||||||||||||
StockBased_Compensation_Table
Stock-Based Compensation (Table) | 12 Months Ended | |||||||||||||||||||||||||||||||||||||
Oct. 31, 2014 | ||||||||||||||||||||||||||||||||||||||
Share-based compensation | ||||||||||||||||||||||||||||||||||||||
Schedule of stock based compensation expense and the resulting tax benefits | ||||||||||||||||||||||||||||||||||||||
For the fiscal years ended | ||||||||||||||||||||||||||||||||||||||
October 31 | ||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | $ | 560 | $ | 500 | $ | 635 | ||||||||||||||||||||||||||||||||
Income tax benefit | (179 | ) | (158 | ) | (197 | ) | ||||||||||||||||||||||||||||||||
Stock-based compensation expense, net of tax | $ | 381 | $ | 342 | $ | 438 | ||||||||||||||||||||||||||||||||
Schedule of restricted stock awards activity | ||||||||||||||||||||||||||||||||||||||
As of October 31 | ||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||||
Shares | Weighted- | Shares | Weighted- | Shares | Weighted- | |||||||||||||||||||||||||||||||||
Average | Average | Average | ||||||||||||||||||||||||||||||||||||
Grant Date | Grant Date | Grant Date | ||||||||||||||||||||||||||||||||||||
Fair Value | Fair Value | Fair Value | ||||||||||||||||||||||||||||||||||||
Per Share | Per Share | Per Share | ||||||||||||||||||||||||||||||||||||
In thousands | In thousands | In thousands | ||||||||||||||||||||||||||||||||||||
Outstanding at beginning of year | 32,262 | $ | 21 | 25,532 | $ | 31 | 16,813 | $ | 39 | |||||||||||||||||||||||||||||
Granted | 26,036 | $ | 28 | 20,707 | $ | 15 | 20,316 | $ | 27 | |||||||||||||||||||||||||||||
Vested | (14,253 | ) | $ | 24 | (10,966 | ) | $ | 33 | (8,521 | ) | $ | 38 | ||||||||||||||||||||||||||
Forfeited | (3,237 | ) | $ | 22 | (3,011 | ) | $ | 24 | (3,076 | ) | $ | 34 | ||||||||||||||||||||||||||
Outstanding at end of year | 40,808 | $ | 24 | 32,262 | $ | 21 | 25,532 | $ | 31 | |||||||||||||||||||||||||||||
Schedule of shares available for future grant and shares reserved for future issuance under the ESPP and incentive compensation plans | ||||||||||||||||||||||||||||||||||||||
As of October 31 | ||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||||
In thousands | ||||||||||||||||||||||||||||||||||||||
Shares available for future grant | 246,852 | 300,984 | 152,837 | |||||||||||||||||||||||||||||||||||
Shares reserved for future issuance | 344,848 | 417,642 | 270,498 | |||||||||||||||||||||||||||||||||||
Stock Options | ||||||||||||||||||||||||||||||||||||||
Share-based compensation | ||||||||||||||||||||||||||||||||||||||
Schedule of weighted-average fair value and the assumptions used to measure fair value | ||||||||||||||||||||||||||||||||||||||
For the fiscal years ended October 31 | ||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||||
Weighted-average fair value(1) | $ | $ | $ | |||||||||||||||||||||||||||||||||||
7 | 4 | 9 | ||||||||||||||||||||||||||||||||||||
Expected volatility(2) | 33.1 | % | 41.7 | % | 41.9 | % | ||||||||||||||||||||||||||||||||
Risk-free interest rate(3) | 1.8 | % | 1.1 | % | 1.2 | % | ||||||||||||||||||||||||||||||||
Expected dividend yield(4) | 2.1 | % | 3.6 | % | 1.8 | % | ||||||||||||||||||||||||||||||||
Expected term in years(5) | 5.7 | 5.9 | 5.6 | |||||||||||||||||||||||||||||||||||
-1 | The weighted-average fair value was based on stock options granted during the period. | |||||||||||||||||||||||||||||||||||||
-2 | For awards granted in fiscal 2014, expected volatility for awards subject to service-based vesting was estimated using the implied volatility derived from options traded on HP's common stock, whereas for performance-contingent awards, expected volatility was estimated using the historical volatility of HP's common stock. For awards granted in fiscal 2013 and fiscal 2012, expected volatility for all awards was estimated using the implied volatility derived from options traded on HP's common stock. | |||||||||||||||||||||||||||||||||||||
-3 | The risk-free interest rate was estimated based on the yield on U.S. Treasury zero-coupon issues. | |||||||||||||||||||||||||||||||||||||
-4 | The expected dividend yield represents a constant dividend yield applied for the duration of the expected term of the award. | |||||||||||||||||||||||||||||||||||||
-5 | For awards subject to service-based vesting, the expected term was estimated using historical exercise and post-vesting termination patterns; and for performance-contingent awards, the expected term represents an output from the lattice model. | |||||||||||||||||||||||||||||||||||||
Schedule of stock options activity | ||||||||||||||||||||||||||||||||||||||
As of October 31 | ||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||||
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 | 84,042 | $ | 27 | 87,296 | $ | 29 | 120,243 | $ | 28 | |||||||||||||||||||||||||||||
Granted | 9,575 | $ | 28 | 25,785 | $ | 15 | 7,529 | $ | 27 | |||||||||||||||||||||||||||||
Exercised | (11,145 | ) | $ | 18 | (10,063 | ) | $ | 19 | (29,683 | ) | $ | 20 | ||||||||||||||||||||||||||
Forfeited/cancelled/expired | (24,619 | ) | $ | 31 | (18,976 | ) | $ | 25 | (10,793 | ) | $ | 35 | ||||||||||||||||||||||||||
Outstanding at end of year | 57,853 | $ | 27 | 4.3 | $ | 629 | 84,042 | $ | 27 | 3.9 | $ | 303 | 87,296 | $ | 29 | 3 | $ | 15 | ||||||||||||||||||||
Vested and expected to vest at end of year | 54,166 | $ | 27 | 4.1 | $ | 571 | 80,004 | $ | 27 | 3.7 | $ | 274 | 85,935 | $ | 29 | 2.9 | $ | 15 | ||||||||||||||||||||
Exercisable at end of year | 30,459 | $ | 33 | 2.3 | $ | 197 | 49,825 | $ | 33 | 1.8 | $ | 58 | 68,437 | $ | 31 | 1.9 | $ | 12 | ||||||||||||||||||||
Schedule of significant ranges of outstanding and exercisable stock options | ||||||||||||||||||||||||||||||||||||||
As of October 31, 2014 | ||||||||||||||||||||||||||||||||||||||
Options Outstanding | Options Exercisable | |||||||||||||||||||||||||||||||||||||
Range of Exercise Prices | Shares | Weighted- | Weighted- | Shares | Weighted- | |||||||||||||||||||||||||||||||||
Outstanding | Average | Average | Exercisable | Average | ||||||||||||||||||||||||||||||||||
Remaining | Exercise | Exercise | ||||||||||||||||||||||||||||||||||||
Contractual Term | Price | Price | ||||||||||||||||||||||||||||||||||||
In thousands | In years | In thousands | ||||||||||||||||||||||||||||||||||||
$0-$9.99 | 324 | 3.7 | $ | 7 | 323 | $ | 7 | |||||||||||||||||||||||||||||||
$10-$19.99 | 18,387 | 5.8 | $ | 14 | 3,620 | $ | 14 | |||||||||||||||||||||||||||||||
$20-$29.99 | 21,077 | 5.8 | $ | 26 | 9,358 | $ | 25 | |||||||||||||||||||||||||||||||
$30-$39.99 | 2,502 | 3.5 | $ | 36 | 1,628 | $ | 36 | |||||||||||||||||||||||||||||||
$40-$49.99 | 14,910 | 0.4 | $ | 43 | 14,877 | $ | 43 | |||||||||||||||||||||||||||||||
$50-$59.99 | 511 | 2.3 | $ | 52 | 511 | $ | 52 | |||||||||||||||||||||||||||||||
$60 and over | 142 | 0.1 | $ | 71 | 142 | $ | 71 | |||||||||||||||||||||||||||||||
57,853 | 4.3 | $ | 27 | 30,459 | $ | 33 | ||||||||||||||||||||||||||||||||
Taxes_on_Earnings_Tables
Taxes on Earnings (Tables) | 12 Months Ended | |||||||||||||
Oct. 31, 2014 | ||||||||||||||
Income Taxes | ||||||||||||||
Schedule of domestic and foreign components of earnings (loss) before taxes | ||||||||||||||
For the fiscal years ended | ||||||||||||||
October 31 | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
In millions | ||||||||||||||
U.S. | $ | 2,565 | $ | 2,618 | $ | (3,192 | ) | |||||||
Non-U.S. | 3,992 | 3,892 | (8,741 | ) | ||||||||||
$ | 6,557 | $ | 6,510 | $ | (11,933 | ) | ||||||||
Schedule of provision for (benefit from) taxes on earnings | ||||||||||||||
For the fiscal years ended | ||||||||||||||
October 31 | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
In millions | ||||||||||||||
U.S. federal taxes: | ||||||||||||||
Current | $ | 381 | $ | 475 | $ | 330 | ||||||||
Deferred | 210 | (666 | ) | 81 | ||||||||||
Non-U.S. taxes: | ||||||||||||||
Current | 984 | 1,275 | 1,139 | |||||||||||
Deferred | (42 | ) | 89 | (787 | ) | |||||||||
State taxes: | ||||||||||||||
Current | 212 | 57 | (41 | ) | ||||||||||
Deferred | (201 | ) | 167 | (5 | ) | |||||||||
$ | 1,544 | $ | 1,397 | $ | 717 | |||||||||
Schedule of differences between the U.S. federal statutory income tax rate and effective tax rate | ||||||||||||||
For the fiscal years ended October 31 | ||||||||||||||
2014 | 2013 | 2012(1) | ||||||||||||
U.S. federal statutory income tax rate | 35.0 | % | 35.0 | % | 35.0 | % | ||||||||
State income taxes, net of federal tax benefit | 0.4 | % | 0.1 | % | 0.5 | % | ||||||||
Lower rates in other jurisdictions, net | (12.9 | )% | (24.5 | )% | 13.9 | % | ||||||||
Valuation allowance | 1.7 | % | 3.8 | % | (14.0 | )% | ||||||||
Nondeductible goodwill | — | — | (40.3 | )% | ||||||||||
Uncertain tax positions | (2.3 | )% | 4.1 | % | (1.4 | )% | ||||||||
Other, net | 1.6 | % | 3.0 | % | 0.3 | % | ||||||||
23.5 | % | 21.5 | % | (6.0 | )% | |||||||||
-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 | ||||||||||||||
As of October 31 | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
In millions | ||||||||||||||
Balance at beginning of year | $ | 3,484 | $ | 2,573 | $ | 2,118 | ||||||||
Increases: | ||||||||||||||
For current year's tax positions | 304 | 290 | 209 | |||||||||||
For prior years' tax positions | 593 | 997 | 651 | |||||||||||
Decreases: | ||||||||||||||
For prior years' tax positions | (125 | ) | (146 | ) | (321 | ) | ||||||||
Statute of limitations expiration | (46 | ) | (11 | ) | (1 | ) | ||||||||
Settlements with taxing authorities | (82 | ) | (219 | ) | (83 | ) | ||||||||
Balance at end of year | $ | 4,128 | $ | 3,484 | $ | 2,573 | ||||||||
Schedule of significant components of deferred tax assets and deferred tax liabilities | ||||||||||||||
As of October 31 | ||||||||||||||
2014 | 2013 | |||||||||||||
Deferred | Deferred | Deferred | Deferred | |||||||||||
Tax | Tax | Tax | Tax | |||||||||||
Assets | Liabilities | Assets | Liabilities | |||||||||||
In millions | ||||||||||||||
Loss carryforwards | $ | 9,476 | $ | — | $ | 9,807 | $ | — | ||||||
Credit carryforwards | 2,377 | — | 4,261 | — | ||||||||||
Unremitted earnings of foreign subsidiaries | — | 7,828 | — | 7,469 | ||||||||||
Inventory valuation | 152 | 8 | 128 | 13 | ||||||||||
Intercompany transactions—profit in inventory | 136 | — | 125 | — | ||||||||||
Intercompany transactions—excluding inventory | 4,403 | — | 1,923 | — | ||||||||||
Fixed assets | 383 | 74 | 289 | 72 | ||||||||||
Warranty | 616 | — | 622 | — | ||||||||||
Employee and retiree benefits | 2,790 | 57 | 2,350 | 11 | ||||||||||
Accounts receivable allowance | 107 | 1 | 185 | 1 | ||||||||||
Intangible assets | 212 | 596 | 224 | 886 | ||||||||||
Restructuring | 354 | — | 340 | — | ||||||||||
Deferred revenue | 1,143 | 12 | 1,119 | 19 | ||||||||||
Other | 1,573 | 1,145 | 1,443 | 759 | ||||||||||
Gross deferred tax assets and liabilities | 23,722 | 9,721 | 22,816 | 9,230 | ||||||||||
Valuation allowance | (11,915 | ) | — | (11,390 | ) | — | ||||||||
Net deferred tax assets and liabilities | $ | 11,807 | $ | 9,721 | $ | 11,426 | $ | 9,230 | ||||||
Schedule of current and long-term deferred tax assets and liabilities | ||||||||||||||
As of October 31 | ||||||||||||||
2014 | 2013 | |||||||||||||
In millions | ||||||||||||||
Current deferred tax assets | $ | 2,754 | $ | 3,893 | ||||||||||
Current deferred tax liabilities | (284 | ) | (375 | ) | ||||||||||
Long-term deferred tax assets | 740 | 1,346 | ||||||||||||
Long-term deferred tax liabilities | (1,124 | ) | (2,668 | ) | ||||||||||
Net deferred tax assets net of deferred tax liabilities | $ | 2,086 | $ | 2,196 | ||||||||||
Schedule of tax credit carryforwards | ||||||||||||||
Carryforward | Valuation | Initial | ||||||||||||
Allowance | Year of | |||||||||||||
Expiration | ||||||||||||||
In millions | ||||||||||||||
U.S. foreign tax credits | $ | 1,321 | $ | 47 | 2021 | |||||||||
U.S. research and development and other credits | 662 | — | 2018 | |||||||||||
Tax credits in state and foreign jurisdictions | 394 | 204 | 2015 | |||||||||||
Balance at end of year | $ | 2,377 | $ | 251 | ||||||||||
Schedule of valuation allowance balance | ||||||||||||||
As of October 31 | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
In millions | ||||||||||||||
Balance at beginning of year | $ | 11,390 | $ | 10,223 | $ | 9,057 | ||||||||
Income tax expense | 184 | 1,644 | 865 | |||||||||||
Other comprehensive income, currency translation and charges to other accounts | 341 | (477 | ) | 301 | ||||||||||
Balance at end of year | $ | 11,915 | $ | 11,390 | $ | 10,223 | ||||||||
Balance_Sheet_Details_Table
Balance Sheet Details (Table) | 12 Months Ended | ||||||||||
Oct. 31, 2014 | |||||||||||
Balance Sheet Details | |||||||||||
Accounts Receivable, Net | |||||||||||
As of October 31 | |||||||||||
2014 | 2013 | ||||||||||
In millions | |||||||||||
Accounts receivable | $ | 14,064 | $ | 16,208 | |||||||
Allowance for doubtful accounts | (232 | ) | (332 | ) | |||||||
$ | 13,832 | $ | 15,876 | ||||||||
Schedule of allowance for doubtful accounts related to accounts receivable | |||||||||||
As of October 31 | |||||||||||
2014 | 2013 | 2012 | |||||||||
In millions | |||||||||||
Balance at beginning of year | $ | 332 | $ | 464 | $ | 470 | |||||
Provision for doubtful accounts | 25 | 23 | 100 | ||||||||
Deductions, net of recoveries | (125 | ) | (155 | ) | (106 | ) | |||||
Balance at end of year | $ | 232 | $ | 332 | $ | 464 | |||||
Schedule of maximum program capacity and available program capacity under revolving short-term financing arrangements | |||||||||||
As of October 31 | |||||||||||
2014 | 2013 | ||||||||||
In millions | |||||||||||
Non-recourse arrangements: | |||||||||||
Maximum program capacity | $ | 1,083 | $ | 764 | |||||||
Utilized capacity(1) | (613 | ) | (314 | ) | |||||||
Available capacity | $ | 470 | $ | 450 | |||||||
Partial-recourse arrangements: | |||||||||||
Maximum program capacity | $ | 1,877 | $ | 631 | |||||||
Utilized capacity(1) | (1,500 | ) | (454 | ) | |||||||
Available capacity | $ | 377 | $ | 177 | |||||||
Total arrangements: | |||||||||||
Maximum program capacity | $ | 2,960 | $ | 1,395 | |||||||
Utilized capacity(1) | (2,113 | ) | (768 | ) | |||||||
Available capacity | $ | 847 | $ | 627 | |||||||
-1 | Utilized capacity represents the receivables sold to third parties, but not collected from the customer by the third parties. Transferred trade receivables included in the utilized capacity that HP has not collected from third parties are as follows: | ||||||||||
As of October 31 | |||||||||||
2014 | 2013 | ||||||||||
In millions | |||||||||||
Non-recourse arrangements | $ | 78 | $ | 54 | |||||||
Partial-recourse arrangements | 381 | 118 | |||||||||
Total arrangements | $ | 459 | $ | 172 | |||||||
Schedule of revolving short-term financing arrangements | |||||||||||
As of October 31 | |||||||||||
2014 | 2013 | ||||||||||
In millions | |||||||||||
Non-recourse arrangements | $ | 78 | $ | 54 | |||||||
Partial-recourse arrangements | 381 | 118 | |||||||||
Total arrangements | $ | 459 | $ | 172 | |||||||
Schedule of transferred trade receivables not collected from the third parties | |||||||||||
As of October 31 | |||||||||||
2014 | 2013 | 2012 | |||||||||
In millions | |||||||||||
Balance at beginning of period(1) | $ | 172 | $ | 228 | $ | 245 | |||||
Trade receivables sold(2) | 9,627 | 4,241 | 3,510 | ||||||||
Cash receipts(2) | (9,306 | ) | (4,305 | ) | (3,510 | ) | |||||
Foreign currency and other | (34 | ) | 8 | (17 | ) | ||||||
Balance at end of period(1) | $ | 459 | $ | 172 | $ | 228 | |||||
-1 | Beginning and ending balance represents amounts for trade receivables sold but not yet collected. | ||||||||||
-2 | HP has revised the presentation for the trade receivables sold and the cash received under the short-term financing arrangements for the fiscal years ended October 31, 2013 and 2012 in order to present comparable information with the current year period. | ||||||||||
Inventory | |||||||||||
As of October 31 | |||||||||||
2014 | 2013 | ||||||||||
In millions | |||||||||||
Finished goods | $ | 3,973 | $ | 3,847 | |||||||
Purchased parts and fabricated assemblies | 2,442 | 2,199 | |||||||||
$ | 6,415 | $ | 6,046 | ||||||||
Other Current Assets | |||||||||||
As of October 31 | |||||||||||
2014 | 2013 | ||||||||||
In millions | |||||||||||
Deferred tax assets—short-term | $ | 2,754 | $ | 3,893 | |||||||
Value-added taxes receivable | 2,169 | 2,425 | |||||||||
Supplier and other receivables | 2,378 | 2,579 | |||||||||
Prepaid and other current assets | 4,518 | 4,238 | |||||||||
$ | 11,819 | $ | 13,135 | ||||||||
Property, Plant and Equipment | |||||||||||
As of October 31 | |||||||||||
2014 | 2013 | ||||||||||
In millions | |||||||||||
Land | $ | 540 | $ | 626 | |||||||
Buildings and leasehold improvements | 9,048 | 8,942 | |||||||||
Machinery and equipment, including equipment held for lease | 16,664 | 16,565 | |||||||||
26,252 | 26,133 | ||||||||||
Accumulated depreciation | (14,912 | ) | (14,670 | ) | |||||||
$ | 11,340 | $ | 11,463 | ||||||||
Long-Term Financing Receivables and Other Assets | |||||||||||
As of October 31 | |||||||||||
2014 | 2013 | ||||||||||
In millions | |||||||||||
Financing receivables, net | $ | 3,613 | $ | 3,878 | |||||||
Deferred tax assets—long-term | 740 | 1,346 | |||||||||
Deferred costs—long-term | 755 | 999 | |||||||||
Other | 3,346 | 3,333 | |||||||||
$ | 8,454 | $ | 9,556 | ||||||||
Other Accrued Liabilities | |||||||||||
As of October 31 | |||||||||||
2014 | 2013 | ||||||||||
In millions | |||||||||||
Accrued taxes—other | $ | 2,269 | $ | 2,703 | |||||||
Warranty | 1,325 | 1,390 | |||||||||
Sales and marketing programs | 2,986 | 2,823 | |||||||||
Other | 5,499 | 5,590 | |||||||||
$ | 12,079 | $ | 12,506 | ||||||||
Other Liabilities | |||||||||||
As of October 31 | |||||||||||
2014 | 2013 | ||||||||||
In millions | |||||||||||
Pension, post-retirement, and post-employment liabilities | $ | 6,379 | $ | 5,098 | |||||||
Deferred revenue—long-term | 3,931 | 3,907 | |||||||||
Deferred tax liability—long-term | 1,124 | 2,668 | |||||||||
Tax liability—long-term | 2,861 | 2,213 | |||||||||
Other long-term liabilities | 2,010 | 2,005 | |||||||||
$ | 16,305 | $ | 15,891 | ||||||||
Financing_Receivables_and_Oper1
Financing Receivables and Operating Leases (Tables) | 12 Months Ended | ||||||||||||||||||||||
Oct. 31, 2014 | |||||||||||||||||||||||
Financing Receivables and Operating Leases | |||||||||||||||||||||||
Components of financing receivables | |||||||||||||||||||||||
As of October 31 | |||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||
In millions | |||||||||||||||||||||||
Minimum lease payments receivable | $ | 6,982 | $ | 7,505 | |||||||||||||||||||
Unguaranteed residual value | 235 | 252 | |||||||||||||||||||||
Unearned income | (547 | ) | (604 | ) | |||||||||||||||||||
Financing receivables, gross | 6,670 | 7,153 | |||||||||||||||||||||
Allowance for doubtful accounts | (111 | ) | (131 | ) | |||||||||||||||||||
Financing receivables, net | 6,559 | 7,022 | |||||||||||||||||||||
Less: current portion(1) | (2,946 | ) | (3,144 | ) | |||||||||||||||||||
Amounts due after one year, net(1) | $ | 3,613 | $ | 3,878 | |||||||||||||||||||
-1 | HP includes the current portion in Financing receivables and amounts due after one year, net in Long-term financing receivables and other assets in the accompanying Consolidated Balance Sheets. | ||||||||||||||||||||||
Scheduled maturities of minimum lease payments receivable | As of October 31, 2014, scheduled maturities of HP's minimum lease payments receivable were as follows for the fiscal years ended October 31: | ||||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | Total | |||||||||||||||||
In millions | |||||||||||||||||||||||
Scheduled maturities of minimum lease payments receivable | $ | 3,220 | $ | 1,959 | $ | 1,112 | $ | 483 | $ | 174 | $ | 34 | $ | 6,982 | |||||||||
Credit risk profile of gross financing receivables | |||||||||||||||||||||||
As of October 31 | |||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||
In millions | |||||||||||||||||||||||
Risk Rating: | |||||||||||||||||||||||
Low | $ | 3,536 | $ | 3,948 | |||||||||||||||||||
Moderate | 3,022 | 3,084 | |||||||||||||||||||||
High | 112 | 121 | |||||||||||||||||||||
Total | $ | 6,670 | $ | 7,153 | |||||||||||||||||||
Schedule of allowance for doubtful accounts for financing receivables | |||||||||||||||||||||||
As of October 31 | |||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||
In millions | |||||||||||||||||||||||
Balance at beginning of year | $ | 131 | $ | 149 | $ | 130 | |||||||||||||||||
Provision for doubtful accounts | 30 | 38 | 42 | ||||||||||||||||||||
Deductions, net of recoveries | (50 | ) | (56 | ) | (23 | ) | |||||||||||||||||
Balance at end of year | $ | 111 | $ | 131 | $ | 149 | |||||||||||||||||
Gross financing receivables and related allowance collectively and individually evaluated for loss | |||||||||||||||||||||||
As of | |||||||||||||||||||||||
October 31 | |||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||
In millions | |||||||||||||||||||||||
Gross financing receivables collectively evaluated for loss | $ | 6,378 | $ | 6,773 | |||||||||||||||||||
Gross financing receivables individually evaluated for loss | 292 | 380 | |||||||||||||||||||||
Total | $ | 6,670 | $ | 7,153 | |||||||||||||||||||
Allowance for financing receivables collectively evaluated for loss | $ | 92 | $ | 95 | |||||||||||||||||||
Allowance for financing receivables individually evaluated for loss | 19 | 36 | |||||||||||||||||||||
Total | $ | 111 | $ | 131 | |||||||||||||||||||
Summary of the aging and non-accrual status of gross financing receivables | |||||||||||||||||||||||
As of | |||||||||||||||||||||||
October 31 | |||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||
In millions | |||||||||||||||||||||||
Billed(1): | |||||||||||||||||||||||
Current 1-30 days | $ | 243 | $ | 217 | |||||||||||||||||||
Past due 31-60 days | 46 | 50 | |||||||||||||||||||||
Past due 61-90 days | 12 | 15 | |||||||||||||||||||||
Past due >90 days | 49 | 46 | |||||||||||||||||||||
Unbilled sales-type and direct-financing lease receivables | 6,320 | 6,825 | |||||||||||||||||||||
Total gross financing receivables | $ | 6,670 | $ | 7,153 | |||||||||||||||||||
Gross financing receivables on non-accrual status(2) | $ | 130 | $ | 199 | |||||||||||||||||||
Gross financing receivables 90 days past due and still accruing interest(2) | $ | 162 | $ | 181 | |||||||||||||||||||
-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 | |||||||||||||||||||||||
As of | |||||||||||||||||||||||
October 31 | |||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||
In millions | |||||||||||||||||||||||
Equipment leased to customers | $ | 3,977 | $ | 3,822 | |||||||||||||||||||
Accumulated depreciation | (1,382 | ) | (1,452 | ) | |||||||||||||||||||
$ | 2,595 | $ | 2,370 | ||||||||||||||||||||
Minimum future rentals on non-cancelable operating leases | As of October 31, 2014, minimum future rentals on non-cancelable operating leases related to leased equipment were as follows for the fiscal years ended October 31: | ||||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | Total | |||||||||||||||||
In millions | |||||||||||||||||||||||
Minimum future rentals on non-cancelable operating leases | $ | 1,487 | $ | 958 | $ | 467 | $ | 156 | $ | 50 | $ | 6 | $ | 3,124 | |||||||||
Acquisitions_Goodwill_and_Inta1
Acquisitions, Goodwill and Intangible Assets (Tables) | 12 Months Ended | |||||||||||||||||||||||||
Oct. 31, 2014 | ||||||||||||||||||||||||||
Acquisitions, Goodwill and Intangible Assets | ||||||||||||||||||||||||||
Goodwill | ||||||||||||||||||||||||||
Personal | Printing | Enterprise | Enterprise | Software | HP | Corporate | Total | |||||||||||||||||||
Systems | Group | Services(3) | Financial | Investments | ||||||||||||||||||||||
Services | ||||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||
Balance at October 31, 2012(1)(2) | $ | 2,588 | $ | 2,591 | $ | 16,825 | $ | — | $ | 8,921 | $ | 144 | $ | — | $ | 31,069 | ||||||||||
Goodwill acquired during the period | — | — | — | 112 | — | — | — | 112 | ||||||||||||||||||
Goodwill adjustments | — | — | 39 | (15 | ) | (81 | ) | — | — | (57 | ) | |||||||||||||||
Balance at October 31, 2013(1)(2) | $ | 2,588 | $ | 2,591 | $ | 16,864 | $ | 97 | $ | 8,840 | $ | 144 | $ | — | $ | 31,124 | ||||||||||
Goodwill acquired during the period | — | — | — | — | 12 | — | — | 12 | ||||||||||||||||||
Goodwill adjustments | — | — | 3 | — | — | — | — | 3 | ||||||||||||||||||
Balance at October 31, 2014(1) | $ | 2,588 | $ | 2,591 | $ | 16,867 | $ | 97 | $ | 8,852 | $ | 144 | $ | — | $ | 31,139 | ||||||||||
-1 | Goodwill is net of accumulated impairment losses of $14.5 billion. Of that amount, $8.0 billion relates to the ES segment, $5.7 billion relates to Software, and the remaining $0.8 billion relates to Corporate Investments. | |||||||||||||||||||||||||
-2 | Effective at the beginning of its first quarter of fiscal 2014, HP implemented certain organizational changes to align its segment financial reporting more closely with its current business structure. As a result of these organizational realignments, HP transferred $126 million of goodwill related to the transfer of the Printing spare and replacement parts business from the EG segment to the Printing segment, $48 million of goodwill related to the transfer of the Personal Systems spare and replacement parts business from the EG segment to the Personal Systems segment, $42 million of goodwill related to the transfer of the Personal Systems trade and warranty support business from the EG segment to the Personal Systems segment and $22 million of goodwill related to the transfer of the HP Exstream business from the Printing segment to the Software segment. See Note 2 for a full description of the segment realignments. | |||||||||||||||||||||||||
-3 | Goodwill relates to the MphasiS Limited reporting unit. | |||||||||||||||||||||||||
Intangible Assets | ||||||||||||||||||||||||||
As of October 31, 2014 | As of October 31, 2013 | |||||||||||||||||||||||||
Gross | Accumulated | Accumulated | Net | Gross | Accumulated | Accumulated | Net | |||||||||||||||||||
Amortization | Impairment | Amortization | Impairment | |||||||||||||||||||||||
Loss | Loss | |||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||
Customer contracts, customer lists and distribution agreements | $ | 5,289 | $ | (3,228 | ) | $ | (856 | ) | $ | 1,205 | $ | 5,321 | $ | (2,709 | ) | $ | (856 | ) | $ | 1,756 | ||||||
Developed and core technology and patents | 4,266 | (1,301 | ) | (2,138 | ) | 827 | 5,331 | (1,966 | ) | (2,138 | ) | 1,227 | ||||||||||||||
Trade name and trade marks | 1,693 | (261 | ) | (1,336 | ) | 96 | 1,730 | (211 | ) | (1,336 | ) | 183 | ||||||||||||||
In-process research and development | — | — | — | — | 3 | — | — | 3 | ||||||||||||||||||
Total intangible assets | $ | 11,248 | $ | (4,790 | ) | $ | (4,330 | ) | $ | 2,128 | $ | 12,385 | $ | (4,886 | ) | $ | (4,330 | ) | $ | 3,169 | ||||||
Schedule of weighted-average useful lives of intangible assets at the time of acquisition | ||||||||||||||||||||||||||
As of | ||||||||||||||||||||||||||
October 31, 2014 | ||||||||||||||||||||||||||
Finite-Lived Intangible Assets | Weighted-Average | |||||||||||||||||||||||||
Useful Lives | ||||||||||||||||||||||||||
In years | ||||||||||||||||||||||||||
Customer contracts, customer lists and distribution agreements | 8 | |||||||||||||||||||||||||
Developed and core technology and patents | 8 | |||||||||||||||||||||||||
Trade name and trade marks | 7 | |||||||||||||||||||||||||
Estimated future amortization expense related to finite-lived purchased intangible assets | As of October 31, 2014, estimated future amortization expense related to finite-lived intangible assets was as follows: | |||||||||||||||||||||||||
Fiscal year | In millions | |||||||||||||||||||||||||
2015 | $ | 872 | ||||||||||||||||||||||||
2016 | 653 | |||||||||||||||||||||||||
2017 | 244 | |||||||||||||||||||||||||
2018 | 147 | |||||||||||||||||||||||||
2019 | 110 | |||||||||||||||||||||||||
Thereafter | 102 | |||||||||||||||||||||||||
Total | $ | 2,128 | ||||||||||||||||||||||||
Fair_Value_Tables
Fair Value (Tables) | 12 Months Ended | |||||||||||||||||||||||||
Oct. 31, 2014 | ||||||||||||||||||||||||||
Fair Value | ||||||||||||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | ||||||||||||||||||||||||||
As of October 31, 2014 | As of October 31, 2013 | |||||||||||||||||||||||||
Fair Value | Fair Value | |||||||||||||||||||||||||
Measured Using | Measured Using | |||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||
In millions | ||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||
Cash Equivalents and Investments: | ||||||||||||||||||||||||||
Time deposits | $ | — | $ | 2,865 | $ | — | $ | 2,865 | $ | — | $ | 2,221 | $ | — | $ | 2,221 | ||||||||||
Money market funds | 9,857 | — | — | 9,857 | 6,819 | — | — | 6,819 | ||||||||||||||||||
Mutual funds | — | 244 | — | 244 | — | 313 | — | 313 | ||||||||||||||||||
Marketable equity securities | 14 | 5 | — | 19 | 10 | 5 | — | 15 | ||||||||||||||||||
Foreign bonds | 9 | 367 | — | 376 | 9 | 387 | — | 396 | ||||||||||||||||||
Other debt securities | — | 1 | 46 | 47 | — | 2 | 47 | 49 | ||||||||||||||||||
Derivatives: | ||||||||||||||||||||||||||
Interest rate contracts | — | 105 | — | 105 | — | 156 | — | 156 | ||||||||||||||||||
Foreign exchange contracts | — | 862 | 6 | 868 | — | 284 | 3 | 287 | ||||||||||||||||||
Other derivatives | — | 7 | — | 7 | — | 9 | — | 9 | ||||||||||||||||||
Total assets | $ | 9,880 | $ | 4,456 | $ | 52 | $ | 14,388 | $ | 6,838 | $ | 3,377 | $ | 50 | $ | 10,265 | ||||||||||
Liabilities | ||||||||||||||||||||||||||
Derivatives: | ||||||||||||||||||||||||||
Interest rate contracts | $ | — | $ | 55 | $ | — | $ | 55 | $ | — | $ | 107 | $ | — | $ | 107 | ||||||||||
Foreign exchange contracts | — | 348 | 2 | 350 | — | 547 | 2 | 549 | ||||||||||||||||||
Total liabilities | $ | — | $ | 403 | $ | 2 | $ | 405 | $ | — | $ | 654 | $ | 2 | $ | 656 | ||||||||||
Financial_Instruments_Tables
Financial Instruments (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||
Oct. 31, 2014 | ||||||||||||||||||||||||||||||||
Financial Instruments | ||||||||||||||||||||||||||||||||
Schedule of cash equivalents and available-for-sale investments | ||||||||||||||||||||||||||||||||
As of October 31, 2014 | As of October 31, 2013 | |||||||||||||||||||||||||||||||
Cost | Gross | Gross | Fair | Cost | Gross | Gross | Fair | |||||||||||||||||||||||||
Unrealized | Unrealized | Value | Unrealized | Unrealized | Value | |||||||||||||||||||||||||||
Gain | Loss | Gain | Loss | |||||||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||||||||
Cash Equivalents: | ||||||||||||||||||||||||||||||||
Time deposits | $ | 2,720 | $ | — | $ | — | $ | 2,720 | $ | 2,207 | $ | — | $ | — | $ | 2,207 | ||||||||||||||||
Money market funds | 9,857 | — | — | 9,857 | 6,819 | — | — | 6,819 | ||||||||||||||||||||||||
Mutual funds | 110 | — | — | 110 | 13 | — | — | 13 | ||||||||||||||||||||||||
Total cash equivalents | 12,687 | — | — | 12,687 | 9,039 | — | — | 9,039 | ||||||||||||||||||||||||
Available-for-Sale Investments: | ||||||||||||||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||||||||||
Time deposits | 145 | — | — | 145 | 14 | — | — | 14 | ||||||||||||||||||||||||
Foreign bonds | 286 | 90 | — | 376 | 310 | 86 | — | 396 | ||||||||||||||||||||||||
Other debt securities | 61 | — | (14 | ) | 47 | 64 | — | (15 | ) | 49 | ||||||||||||||||||||||
Total debt securities | 492 | 90 | (14 | ) | 568 | 388 | 86 | (15 | ) | 459 | ||||||||||||||||||||||
Equity securities: | ||||||||||||||||||||||||||||||||
Mutual funds | 134 | — | — | 134 | 300 | — | — | 300 | ||||||||||||||||||||||||
Equity securities in public companies | 8 | 7 | — | 15 | 5 | 6 | — | 11 | ||||||||||||||||||||||||
Total equity securities | 142 | 7 | — | 149 | 305 | 6 | — | 311 | ||||||||||||||||||||||||
Total available-for-sale investments | 634 | 97 | (14 | ) | 717 | 693 | 92 | (15 | ) | 770 | ||||||||||||||||||||||
Total cash equivalents and available-for-sale investments | $ | 13,321 | $ | 97 | $ | (14 | ) | $ | 13,404 | $ | 9,732 | $ | 92 | $ | (15 | ) | $ | 9,809 | ||||||||||||||
Schedule of contractual maturities of short-term and long-term investments in available-for-sale debt securities | ||||||||||||||||||||||||||||||||
As of October 31, 2014 | ||||||||||||||||||||||||||||||||
Amortized | Fair Value | |||||||||||||||||||||||||||||||
Cost | ||||||||||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||||||||
Due in one year | $ | 129 | $ | 129 | ||||||||||||||||||||||||||||
Due in one to five years | 3 | 3 | ||||||||||||||||||||||||||||||
Due in more than five years | 360 | 436 | ||||||||||||||||||||||||||||||
$ | 492 | $ | 568 | |||||||||||||||||||||||||||||
Schedule of gross notional and fair value of derivative financial instruments in the Consolidated Balance Sheets | ||||||||||||||||||||||||||||||||
As of October 31, 2014 | As of October 31, 2013 | |||||||||||||||||||||||||||||||
Outstanding | Other | Long-Term | Other | Long-Term | Outstanding | Other | Long-Term | Other | Long-Term | |||||||||||||||||||||||
Gross | Current | Financing | Accrued | Other | Gross | Current | Financing | Accrued | Other | |||||||||||||||||||||||
Notional | Assets | Receivables | Liabilities | Liabilities | Notional | Assets | Receivables | Liabilities | Liabilities | |||||||||||||||||||||||
and Other | and Other | |||||||||||||||||||||||||||||||
Assets | Assets | |||||||||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||||||||
Derivatives designated as hedging instruments | ||||||||||||||||||||||||||||||||
Fair value hedges: | ||||||||||||||||||||||||||||||||
Interest rate contracts | $ | 10,800 | $ | 3 | $ | 102 | $ | — | $ | 55 | $ | 11,100 | $ | 31 | $ | 125 | $ | — | $ | 107 | ||||||||||||
Cash flow hedges: | ||||||||||||||||||||||||||||||||
Foreign currency contracts | 20,196 | 539 | 124 | 131 | 94 | 22,463 | 79 | 40 | 341 | 80 | ||||||||||||||||||||||
Net investment hedges: | ||||||||||||||||||||||||||||||||
Foreign currency contracts | 1,952 | 44 | 47 | 10 | 8 | 1,920 | 30 | 40 | 20 | 12 | ||||||||||||||||||||||
Total derivatives designated as hedging instruments | 32,948 | 586 | 273 | 141 | 157 | 35,483 | 140 | 205 | 361 | 199 | ||||||||||||||||||||||
Derivatives not designated as hedging instruments | ||||||||||||||||||||||||||||||||
Foreign currency contracts | 21,384 | 82 | 32 | 82 | 25 | 16,048 | 72 | 26 | 76 | 20 | ||||||||||||||||||||||
Other derivatives | 361 | 6 | 1 | — | — | 344 | 8 | 1 | — | — | ||||||||||||||||||||||
Total derivatives not designated as hedging instruments | 21,745 | 88 | 33 | 82 | 25 | 16,392 | 80 | 27 | 76 | 20 | ||||||||||||||||||||||
Total derivatives | $ | 54,693 | $ | 674 | $ | 306 | $ | 223 | $ | 182 | $ | 51,875 | $ | 220 | $ | 232 | $ | 437 | $ | 219 | ||||||||||||
Schedule of information related to the potential effect of entity's master netting agreements and collateral security agreements | ||||||||||||||||||||||||||||||||
As of October 31, 2014 | ||||||||||||||||||||||||||||||||
In the Consolidated Balance Sheets | ||||||||||||||||||||||||||||||||
(i) | (ii) | (iii) =i)-(ii) | (iv) | (v) | (vi) =iii)-(iv)-(v) | |||||||||||||||||||||||||||
Gross Amounts | ||||||||||||||||||||||||||||||||
Not Offset | ||||||||||||||||||||||||||||||||
Gross | Gross | Net Amount | Derivatives | Financial | Net Amount | |||||||||||||||||||||||||||
Amount | Amount | Presented | Collateral | |||||||||||||||||||||||||||||
Recognized | Offset | |||||||||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||||||||
Derivative assets | $ | 980 | $ | — | $ | 980 | $ | 361 | $ | 452 | $ | 167 | ||||||||||||||||||||
Derivative liabilities | $ | 405 | $ | — | $ | 405 | $ | 361 | $ | 29 | -1 | $ | 15 | |||||||||||||||||||
-1 | Collateral posted through re-use of counterparty cash collateral. | |||||||||||||||||||||||||||||||
As of October 31, 2013 | ||||||||||||||||||||||||||||||||
In the Consolidated Balance Sheets | ||||||||||||||||||||||||||||||||
(i) | (ii) | (iii) =i)-(ii) | (iv) | (v) | (vi) =iii)-(iv)-(v) | |||||||||||||||||||||||||||
Gross Amounts | ||||||||||||||||||||||||||||||||
Not Offset | ||||||||||||||||||||||||||||||||
Gross | Gross | Net Amount | Derivatives | Financial | Net Amount | |||||||||||||||||||||||||||
Amount | Amount | Presented | Collateral | |||||||||||||||||||||||||||||
Recognized | Offset | |||||||||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||||||||
Derivative assets | $ | 452 | $ | — | $ | 452 | $ | 372 | $ | 30 | $ | 50 | ||||||||||||||||||||
Derivative liabilities | $ | 656 | $ | — | $ | 656 | $ | 372 | $ | 283 | -1 | $ | 1 | |||||||||||||||||||
-1 | Of the $283 million of collateral posted, $30 million was through re-use of counterparty cash collateral and $253 million was in cash. | |||||||||||||||||||||||||||||||
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 | 2014 | 2013 | 2012 | Hedged Item | Location | 2014 | 2013 | 2012 | |||||||||||||||||||||||
In millions | In millions | |||||||||||||||||||||||||||||||
Interest rate contracts | Interest and other, net | $ | 1 | $ | (270 | ) | $ | (130 | ) | Fixed-rate debt | Interest and other, net | $ | (1 | ) | $ | 270 | $ | 134 | ||||||||||||||
Schedule of pre-tax effect of derivative instruments in cash flow and net investment hedging relationships | ||||||||||||||||||||||||||||||||
Gain (Loss) | Gain (Loss) Reclassified from Accumulated OCI | |||||||||||||||||||||||||||||||
Recognized in OCI | Into Earnings (Effective Portion) | |||||||||||||||||||||||||||||||
on Derivatives | ||||||||||||||||||||||||||||||||
(Effective Portion) | ||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | Location | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||
In millions | In millions | |||||||||||||||||||||||||||||||
Cash flow hedges: | ||||||||||||||||||||||||||||||||
Foreign currency contracts | $ | 593 | $ | (53 | ) | $ | 415 | Net revenue | $ | (21 | ) | $ | 48 | $ | 423 | |||||||||||||||||
Foreign currency contracts | (203 | ) | (192 | ) | (65 | ) | Cost of products | (71 | ) | (165 | ) | (15 | ) | |||||||||||||||||||
Foreign currency contracts | 7 | (19 | ) | (7 | ) | Other operating expenses | (9 | ) | 1 | (6 | ) | |||||||||||||||||||||
Foreign currency contracts | (60 | ) | 21 | (8 | ) | Interest and other, net | (50 | ) | 10 | (3 | ) | |||||||||||||||||||||
Total currency hedges | $ | 337 | $ | (243 | ) | $ | 335 | $ | (151 | ) | $ | (106 | ) | $ | 399 | |||||||||||||||||
Net investment hedges: | ||||||||||||||||||||||||||||||||
Foreign currency contracts | $ | 57 | $ | 38 | $ | 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 Derivatives | ||||||||||||||||||||||||||||||||
Location | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||||
In millions | ||||||||||||||||||||||||||||||||
Foreign currency contracts | Interest and other, net | $ | 56 | $ | 166 | $ | 171 | |||||||||||||||||||||||||
Other derivatives | Interest and other, net | — | 11 | (32 | ) | |||||||||||||||||||||||||||
Interest rate contracts | Interest and other, net | — | 3 | 13 | ||||||||||||||||||||||||||||
Total | $ | 56 | $ | 180 | $ | 152 | ||||||||||||||||||||||||||
Borrowings_Tables
Borrowings (Tables) | 12 Months Ended | ||||||||||||||||||||||
Oct. 31, 2014 | |||||||||||||||||||||||
Borrowings | |||||||||||||||||||||||
Schedule of notes payable and short-term borrowings, including the current portion of long-term debt | |||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||
As of October 31 | |||||||||||||||||||||||
Amount | Weighted-Average | Amount | Weighted-Average | ||||||||||||||||||||
Outstanding | Interest Rate | Outstanding | Interest Rate | ||||||||||||||||||||
In millions | In millions | ||||||||||||||||||||||
Current portion of long-term debt | $ | 2,655 | 2.2 | % | $ | 5,226 | 2.8 | % | |||||||||||||||
Commercial paper(1) | 298 | 0.5 | % | 327 | 0.4 | % | |||||||||||||||||
Notes payable to banks, lines of credit and other(1) | 533 | 4.0 | % | 426 | 1.7 | % | |||||||||||||||||
$ | 3,486 | $ | 5,979 | ||||||||||||||||||||
-1 | Commercial paper includes $298 million and $327 million and Notes payable to banks, lines of credit and other includes $404 million and $368 million at October 31, 2014 and October 31, 2013, respectively, of borrowing- and funding-related activity associated with HPFS and its subsidiaries. | ||||||||||||||||||||||
Schedule of long-term debt | |||||||||||||||||||||||
As of October 31 | |||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||
In millions | |||||||||||||||||||||||
U.S. Dollar Global Notes(1) | |||||||||||||||||||||||
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 | $ | 500 | $ | 499 | |||||||||||||||||||
$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%, paid March 2014 | — | 1,999 | |||||||||||||||||||||
$1,500 issued at discount to par at a price of 99.993% in February 2009 at 4.75%, paid June 2014 | — | 1,500 | |||||||||||||||||||||
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 | 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 | 1,349 | |||||||||||||||||||||
$500 issued at par in May 2011 at three-month USD LIBOR plus 0.4%, paid May 2014 | — | 500 | |||||||||||||||||||||
$500 issued at discount to par at a price of 99.971% in May 2011 at 1.55%, paid May 2014 | — | 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 | |||||||||||||||||||||
$350 issued at par in September 2011 at three-month USD LIBOR plus 1.55%, paid September 2014 | — | 350 | |||||||||||||||||||||
$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 | 999 | |||||||||||||||||||||
$1,200 issued at discount to par at a price of 99.863% in September 2011 at 6.0%, due September 2041 | 1,199 | 1,198 | |||||||||||||||||||||
$650 issued at discount to par at a price of 99.946% in December 2011 at 2.625%, paid 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 | |||||||||||||||||||||
2012 Shelf Registration Statement: | |||||||||||||||||||||||
$750 issued at par in January 2014 at three-month USD LIBOR plus 0.94%, due January 2019 | 750 | — | |||||||||||||||||||||
$1,250 issued at discount to par at a price of 99.954% in January 2014 at 2.75%, due January 2019 | 1,250 | — | |||||||||||||||||||||
17,837 | 20,684 | ||||||||||||||||||||||
EDS Senior Notes(1) | |||||||||||||||||||||||
$300 issued October 1999 at 7.45%, due October 2029 | 313 | 314 | |||||||||||||||||||||
Other, including capital lease obligations, at 0.00%-8.30%, due in calendar years 2014-2024(2) | 424 | 689 | |||||||||||||||||||||
Fair value adjustment related to hedged debt | 120 | 147 | |||||||||||||||||||||
Less: current portion | (2,655 | ) | (5,226 | ) | |||||||||||||||||||
Total long-term debt | $ | 16,039 | $ | 16,608 | |||||||||||||||||||
-1 | HP may redeem some or all of the fixed-rate U.S. Dollar Global Notes and EDS Senior Notes at any time in accordance with the terms thereof. The U.S. Dollar Global Notes and EDS Senior Notes are senior unsecured debt. | ||||||||||||||||||||||
-2 | Other, including capital lease obligations includes $123 million and $244 million as of October 31, 2014 and 2013, respectively, of borrowing- and funding-related activity associated with HPFS and its subsidiaries that are collateralized by receivables and underlying assets associated with the related capital and operating leases. For both the periods presented, the carrying amount of the assets approximated the carrying amount of the borrowings. | ||||||||||||||||||||||
Schedule of borrowing resources available to obtain short-term or long-term financing | |||||||||||||||||||||||
As of | |||||||||||||||||||||||
October 31, | |||||||||||||||||||||||
2014 | |||||||||||||||||||||||
In millions | |||||||||||||||||||||||
2012 Shelf Registration Statement(1) | Unspecified | ||||||||||||||||||||||
Commercial paper programs | $ | ||||||||||||||||||||||
16,202 | |||||||||||||||||||||||
Uncommitted lines of credit | $ 1,587 | ||||||||||||||||||||||
-1 | HP has 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. | ||||||||||||||||||||||
Schedule of aggregate future maturities of long-term debt at face value | As of October 31, 2014, aggregate future maturities of long-term debt at face value (excluding a fair value adjustment related to hedged debt of $120 million, a premium on debt issuance of $13 million and a discount on debt issuance of $13 million) were as follows: | ||||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | Total | |||||||||||||||||
In millions | |||||||||||||||||||||||
Aggregate future maturities of debt outstanding including capital lease obligations | $ | 2,652 | $ | 3,027 | $ | 2,920 | $ | 786 | $ | 2,003 | $ | 7,186 | $ | 18,574 | |||||||||
Schedule of interest expense on borrowings recognized in the Consolidated Condensed Statements of Earnings | |||||||||||||||||||||||
Expense | Location | 2014 | 2013 | 2012 | |||||||||||||||||||
In millions | |||||||||||||||||||||||
Financing interest | Financing interest | $ | 277 | $ | 312 | $ | 317 | ||||||||||||||||
Interest expense | Interest and other, net | 344 | 426 | 514 | |||||||||||||||||||
Total interest expense | $ | 621 | $ | 738 | $ | 831 | |||||||||||||||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 12 Months Ended | ||||||||||||||||
Oct. 31, 2014 | |||||||||||||||||
Stockholders' Equity | |||||||||||||||||
Schedule of taxes related to changes in Other Comprehensive (Loss) Income | |||||||||||||||||
For the fiscal years ended | |||||||||||||||||
October 31 | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
In millions | |||||||||||||||||
Tax (provision) benefit on change in unrealized gains on available-for-sale securities: | |||||||||||||||||
Tax (provision) benefit on unrealized gains arising during the period | $ | (1 | ) | $ | (14 | ) | $ | 25 | |||||||||
(1 | ) | (14 | ) | 25 | |||||||||||||
Tax (provision) benefit on change in unrealized gains (losses) on cash flow hedges: | |||||||||||||||||
Tax (provision) benefit on unrealized gains (losses) arising during the period | (174 | ) | 97 | (137 | ) | ||||||||||||
Tax (benefit) provision on losses (gains) reclassified into earnings | (18 | ) | (49 | ) | 143 | ||||||||||||
(192 | ) | 48 | 6 | ||||||||||||||
Tax benefit (provision) on change in unrealized components of defined benefit plans: | |||||||||||||||||
Tax benefit (provision) on (losses) gains arising during the period | 181 | (258 | ) | 261 | |||||||||||||
Tax benefit on amortization of actuarial loss and prior service benefit | (18 | ) | (35 | ) | (31 | ) | |||||||||||
Tax provision on curtailments, settlements and other | (9 | ) | (5 | ) | (48 | ) | |||||||||||
154 | (298 | ) | 182 | ||||||||||||||
Tax (provision) benefit on change in cumulative translation adjustment | (27 | ) | 25 | (25 | ) | ||||||||||||
Tax (provision) benefit on other comprehensive (loss) income | $ | (66 | ) | $ | (239 | ) | $ | 188 | |||||||||
Schedule of reclassifications and taxes related to items of other comprehensive income (loss) | |||||||||||||||||
For the fiscal years ended | |||||||||||||||||
October 31 | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
In millions | |||||||||||||||||
Other comprehensive (loss) income, net of taxes: | |||||||||||||||||
Change in unrealized gains on available-for-sale securities: | |||||||||||||||||
Unrealized gains arising during the period | $ | 6 | $ | 38 | $ | 50 | |||||||||||
Gains reclassified into earnings | (1 | ) | (49 | ) | — | ||||||||||||
5 | (11 | ) | 50 | ||||||||||||||
Change in unrealized gains (losses) on cash flow hedges: | |||||||||||||||||
Unrealized gains (losses) arising during the period | 163 | (146 | ) | 198 | |||||||||||||
Losses (gains) reclassified into earnings(1) | 133 | 57 | (256 | ) | |||||||||||||
296 | (89 | ) | (58 | ) | |||||||||||||
Change in unrealized components of defined benefit plans: | |||||||||||||||||
(Losses) gains arising during the period | (2,575 | ) | 1,695 | (2,196 | ) | ||||||||||||
Amortization of actuarial loss and prior service benefit(2) | 241 | 291 | 141 | ||||||||||||||
Curtailments, settlements and other | 42 | 20 | 74 | ||||||||||||||
(2,292 | ) | 2,006 | (1,981 | ) | |||||||||||||
Change in cumulative translation adjustment | (112 | ) | (125 | ) | (72 | ) | |||||||||||
Other comprehensive (loss) income, net of taxes | $ | (2,103 | ) | $ | 1,781 | $ | (2,061 | ) | |||||||||
-1 | Reclassification of pre-tax losses (gains) on cash flow hedges into the Consolidated Statements of Earnings was as follows: | ||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
In millions | |||||||||||||||||
Net revenue | $ | 21 | $ | (48 | ) | $ | (423 | ) | |||||||||
Cost of products | 71 | 165 | 15 | ||||||||||||||
Other operating expenses | 9 | (1 | ) | 6 | |||||||||||||
Interest and other, net | 50 | (10 | ) | 3 | |||||||||||||
$ | 151 | $ | 106 | $ | (399 | ) | |||||||||||
-2 | These components are included in the computation of net pension and post-retirement benefit (credit) cost in Note 4. | ||||||||||||||||
Schedule of reclassification of pre tax losses (gains) on cash flow hedges | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
In millions | |||||||||||||||||
Net revenue | $ | 21 | $ | (48 | ) | $ | (423 | ) | |||||||||
Cost of products | 71 | 165 | 15 | ||||||||||||||
Other operating expenses | 9 | (1 | ) | 6 | |||||||||||||
Interest and other, net | 50 | (10 | ) | 3 | |||||||||||||
$ | 151 | $ | 106 | $ | (399 | ) | |||||||||||
Schedule of Accumulated Other Comprehensive Loss, net of taxes | |||||||||||||||||
Net unrealized | Net unrealized | Unrealized | Cumulative | Accumulated | |||||||||||||
gain on | loss on cash | components | translation | other | |||||||||||||
available-for-sale | flow hedges | of defined | adjustment | comprehensive | |||||||||||||
securities | benefit plans | loss | |||||||||||||||
In millions | |||||||||||||||||
Balance at beginning of period | $ | 76 | $ | (188 | ) | $ | (3,084 | ) | $ | (582 | ) | $ | (3,778 | ) | |||
Other comprehensive income (loss) before reclassifications | 6 | 163 | (2,533 | ) | (112 | ) | (2,479 | ) | |||||||||
Reclassifications of (gains) losses into earnings | (1 | ) | 133 | 241 | — | 376 | |||||||||||
Balance at end of period | $ | 81 | $ | 108 | $ | (5,376 | ) | $ | (694 | ) | $ | (5,881 | ) | ||||
Net_Earnings_Per_Share_Tables
Net Earnings Per Share (Tables) | 12 Months Ended | ||||||||||
Oct. 31, 2014 | |||||||||||
Net Earnings Per Share | |||||||||||
Basic and diluted net Earnings Per Share calculations | |||||||||||
For the fiscal years ended | |||||||||||
October 31 | |||||||||||
2014 | 2013 | 2012 | |||||||||
In millions, except per share | |||||||||||
amounts | |||||||||||
Numerator: | |||||||||||
Net earnings (loss)(1) | $ | 5,013 | $ | 5,113 | $ | (12,650 | ) | ||||
Denominator: | |||||||||||
Weighted-average shares used to compute basic net EPS | 1,882 | 1,934 | 1,974 | ||||||||
Dilutive effect of employee stock plans | 30 | 16 | — | ||||||||
Weighted-average shares used to compute diluted net EPS | 1,912 | 1,950 | 1,974 | ||||||||
Net earnings (loss) per share: | |||||||||||
Basic | $ | 2.66 | $ | 2.64 | $ | (6.41 | ) | ||||
Diluted(2) | $ | 2.62 | $ | 2.62 | $ | (6.41 | ) | ||||
Anti-dilutive weighted average options(3) | 26 | 52 | 57 | ||||||||
-1 | Net earnings allocated to participating securities were not significant in fiscal 2014, 2013 and 2012. HP considers restricted stock awards that provide the holder with a non-forfeitable right to receive dividends to be participating securities. | ||||||||||
-2 | For fiscal 2012, HP excluded from the calculation of diluted net loss per share 10 million shares potentially issuable under stock-based incentive compensation plans and the 2011 ESPP, as their effect, if included, would have been anti-dilutive. | ||||||||||
-3 | HP excludes options where the assumed proceeds exceed the average market price from the calculation of diluted net EPS, because their effect would be anti-dilutive. The assumed proceeds of an option include the sum of its exercise price, average unrecognized compensation cost and excess tax benefits. | ||||||||||
Guarantees_Tables
Guarantees (Tables) | 12 Months Ended | |||||||
Oct. 31, 2014 | ||||||||
Guarantees | ||||||||
Changes in aggregate product warranty liabilities | ||||||||
As of October 31 | ||||||||
2014 | 2013 | |||||||
In millions | ||||||||
Balance at beginning of year | $ | 2,031 | $ | 2,170 | ||||
Accruals for warranties issued | 1,840 | 2,007 | ||||||
Adjustments related to pre-existing warranties (including changes in estimates) | 12 | (4 | ) | |||||
Settlements made (in cash or in kind) | (1,927 | ) | (2,142 | ) | ||||
Balance at end of year | $ | 1,956 | $ | 2,031 | ||||
Commitments_Tables
Commitments (Tables) | 12 Months Ended | ||||||||||||||||||||||
Oct. 31, 2014 | |||||||||||||||||||||||
Commitments | |||||||||||||||||||||||
Future annual lease commitments and sublease rental income | |||||||||||||||||||||||
As of October 31, 2014, future minimum lease commitments were as follows: | |||||||||||||||||||||||
Operating Lease | |||||||||||||||||||||||
In millions | |||||||||||||||||||||||
Fiscal year | |||||||||||||||||||||||
2015 | $ | 744 | |||||||||||||||||||||
2016 | 555 | ||||||||||||||||||||||
2017 | 416 | ||||||||||||||||||||||
2018 | 308 | ||||||||||||||||||||||
2019 | 237 | ||||||||||||||||||||||
Thereafter | 804 | ||||||||||||||||||||||
Less: Sublease rental income | (63 | ) | |||||||||||||||||||||
Total | $ | 3,001 | |||||||||||||||||||||
Future unconditional purchase obligations | As of October 31, 2014, future unconditional purchase obligations were as follows: | ||||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | Total | |||||||||||||||||
In millions | |||||||||||||||||||||||
Unconditional purchase obligations | $ | 1,383 | $ | 289 | $ | 229 | $ | 212 | $ | — | $ | — | $ | 2,113 | |||||||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Basis of Presentation | |||
Advertising cost | $784 | $878 | $1,000 |
Enterprise Services | |||
Segment Reporting Information | |||
Number of reporting units | 2 |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details 2) (Major Customers, Accounts Receivable, USD $) | 12 Months Ended | |
In Billions, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 |
item | ||
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) | 20.00% | 21.00% |
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) | 90.00% | 82.00% |
Supplier receivables | 1 | 1 |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Details 3) | 12 Months Ended |
Oct. 31, 2014 | |
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 |
Intangible Assets And Long Lived Assets | Minimum | |
Property, Plant and Equipment, Net | |
Estimated useful life for purchased intangible assets | 1 year |
Intangible Assets And Long Lived Assets | Maximum | |
Property, Plant and Equipment, Net | |
Estimated useful life for purchased intangible assets | 10 years |
Segment_Information_Detail
Segment Information (Detail) (USD $) | 12 Months Ended | ||
Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 | |
segment | |||
Segment Information | |||
Number of reportable segments | 7 | ||
Segment Reporting Information | |||
Advance royalty proceeds received from intercompany licensing arrangements | $10,400,000,000 | ||
Royalty to be earned in the fiscal years 2015 through 2029 | 9,900,000,000 | ||
Net revenue | 111,454,000,000 | 112,298,000,000 | 120,357,000,000 |
Earnings (loss) from operations | 7,185,000,000 | 7,131,000,000 | -11,057,000,000 |
Eliminations of inter-segment net revenue and other | |||
Segment Reporting Information | |||
Net revenue | -3,773,000,000 | -3,593,000,000 | -3,708,000,000 |
Operating segments | |||
Segment Reporting Information | |||
Net revenue | 115,227,000,000 | 115,891,000,000 | 124,065,000,000 |
Earnings (loss) from operations | 11,328,000,000 | 10,802,000,000 | 12,495,000,000 |
Enterprise Group | |||
Segment Reporting Information | |||
Net revenue | 26,809,000,000 | 27,045,000,000 | 28,349,000,000 |
Enterprise Group | Eliminations of inter-segment net revenue and other | |||
Segment Reporting Information | |||
Net revenue | -1,005,000,000 | -1,036,000,000 | -1,294,000,000 |
Enterprise Group | Operating segments | |||
Segment Reporting Information | |||
Net revenue | 27,814,000,000 | 28,081,000,000 | 29,643,000,000 |
Earnings (loss) from operations | 4,008,000,000 | 4,259,000,000 | 5,123,000,000 |
Enterprise Services | |||
Segment Reporting Information | |||
Net revenue | 21,297,000,000 | 23,041,000,000 | 25,090,000,000 |
Enterprise Services | Eliminations of inter-segment net revenue and other | |||
Segment Reporting Information | |||
Net revenue | -1,101,000,000 | -1,020,000,000 | -903,000,000 |
Enterprise Services | Operating segments | |||
Segment Reporting Information | |||
Net revenue | 22,398,000,000 | 24,061,000,000 | 25,993,000,000 |
Earnings (loss) from operations | 803,000,000 | 679,000,000 | 1,045,000,000 |
Software | |||
Segment Reporting Information | |||
Net revenue | 3,607,000,000 | 3,701,000,000 | 3,868,000,000 |
Software | Eliminations of inter-segment net revenue and other | |||
Segment Reporting Information | |||
Net revenue | -326,000,000 | -320,000,000 | -303,000,000 |
Software | Operating segments | |||
Segment Reporting Information | |||
Net revenue | 3,933,000,000 | 4,021,000,000 | 4,171,000,000 |
Earnings (loss) from operations | 872,000,000 | 868,000,000 | 836,000,000 |
HP Financial Services | |||
Segment Reporting Information | |||
Net revenue | 3,416,000,000 | 3,570,000,000 | 3,784,000,000 |
HP Financial Services | Eliminations of inter-segment net revenue and other | |||
Segment Reporting Information | |||
Net revenue | -82,000,000 | -59,000,000 | -35,000,000 |
HP Financial Services | Operating segments | |||
Segment Reporting Information | |||
Net revenue | 3,498,000,000 | 3,629,000,000 | 3,819,000,000 |
Earnings (loss) from operations | 389,000,000 | 399,000,000 | 388,000,000 |
Corporate Investments | |||
Segment Reporting Information | |||
Net revenue | 302,000,000 | 24,000,000 | 57,000,000 |
Corporate Investments | Eliminations of inter-segment net revenue and other | |||
Segment Reporting Information | |||
Net revenue | -1,000,000 | ||
Corporate Investments | Operating segments | |||
Segment Reporting Information | |||
Net revenue | 302,000,000 | 24,000,000 | 58,000,000 |
Earnings (loss) from operations | -199,000,000 | -316,000,000 | -233,000,000 |
Printing and Personal Systems Group | Operating segments | |||
Segment Reporting Information | |||
Net revenue | 57,282,000,000 | 56,075,000,000 | 60,381,000,000 |
Printing and Personal Systems Group | Personal Systems | |||
Segment Reporting Information | |||
Net revenue | 33,304,000,000 | 31,232,000,000 | 34,892,000,000 |
Printing and Personal Systems Group | Personal Systems | Eliminations of inter-segment net revenue and other | |||
Segment Reporting Information | |||
Net revenue | -999,000,000 | -947,000,000 | -951,000,000 |
Printing and Personal Systems Group | Personal Systems | Operating segments | |||
Segment Reporting Information | |||
Net revenue | 34,303,000,000 | 32,179,000,000 | 35,843,000,000 |
Earnings (loss) from operations | 1,270,000,000 | 980,000,000 | 1,724,000,000 |
Printing and Personal Systems Group | Printing | |||
Segment Reporting Information | |||
Net revenue | 22,719,000,000 | 23,685,000,000 | 24,317,000,000 |
Printing and Personal Systems Group | Printing | Eliminations of inter-segment net revenue and other | |||
Segment Reporting Information | |||
Net revenue | -260,000,000 | -211,000,000 | -221,000,000 |
Printing and Personal Systems Group | Printing | Operating segments | |||
Segment Reporting Information | |||
Net revenue | 22,979,000,000 | 23,896,000,000 | 24,538,000,000 |
Earnings (loss) from operations | $4,185,000,000 | $3,933,000,000 | $3,612,000,000 |
Segment_Information_Detail_2
Segment Information (Detail 2) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Segment Reporting Information | |||
Net Revenue | $111,454 | $112,298 | $120,357 |
Earnings from operations | 7,185 | 7,131 | -11,057 |
Stock-based compensation expense | -560 | -500 | -635 |
Amortization of intangible assets | -1,000 | -1,373 | -1,784 |
Impairment of goodwill and intangible assets | -18,035 | ||
Restructuring charges | -1,619 | -990 | -2,266 |
Acquisition-related charges | -11 | -22 | -45 |
Interest and other, net | -628 | -621 | -876 |
Earnings (loss) before taxes | 6,557 | 6,510 | -11,933 |
Assets | 103,206 | 105,676 | |
Enterprise Group | |||
Segment Reporting Information | |||
Net Revenue | 26,809 | 27,045 | 28,349 |
Enterprise Services | |||
Segment Reporting Information | |||
Net Revenue | 21,297 | 23,041 | 25,090 |
Impairment of goodwill and intangible assets | -8,000 | ||
Software | |||
Segment Reporting Information | |||
Net Revenue | 3,607 | 3,701 | 3,868 |
HP Financial Services | |||
Segment Reporting Information | |||
Net Revenue | 3,416 | 3,570 | 3,784 |
Corporate Investments | |||
Segment Reporting Information | |||
Net Revenue | 302 | 24 | 57 |
Printing and Personal Systems Group | Personal Systems | |||
Segment Reporting Information | |||
Net Revenue | 33,304 | 31,232 | 34,892 |
Printing and Personal Systems Group | Printing | |||
Segment Reporting Information | |||
Net Revenue | 22,719 | 23,685 | 24,317 |
Operating segments | |||
Segment Reporting Information | |||
Net Revenue | 115,227 | 115,891 | 124,065 |
Earnings from operations | 11,328 | 10,802 | 12,495 |
Operating segments | Enterprise Group | |||
Segment Reporting Information | |||
Net Revenue | 27,814 | 28,081 | 29,643 |
Earnings from operations | 4,008 | 4,259 | 5,123 |
Assets | 27,236 | 29,759 | |
Operating segments | Enterprise Services | |||
Segment Reporting Information | |||
Net Revenue | 22,398 | 24,061 | 25,993 |
Earnings from operations | 803 | 679 | 1,045 |
Assets | 13,472 | 16,217 | |
Operating segments | Software | |||
Segment Reporting Information | |||
Net Revenue | 3,933 | 4,021 | 4,171 |
Earnings from operations | 872 | 868 | 836 |
Assets | 11,575 | 11,940 | |
Operating segments | HP Financial Services | |||
Segment Reporting Information | |||
Net Revenue | 3,498 | 3,629 | 3,819 |
Earnings from operations | 389 | 399 | 388 |
Assets | 13,529 | 12,746 | |
Operating segments | Corporate Investments | |||
Segment Reporting Information | |||
Net Revenue | 302 | 24 | 58 |
Earnings from operations | -199 | -316 | -233 |
Assets | 34 | 105 | |
Operating segments | Printing and Personal Systems Group | |||
Segment Reporting Information | |||
Net Revenue | 57,282 | 56,075 | 60,381 |
Assets | 22,167 | 22,778 | |
Operating segments | Printing and Personal Systems Group | Personal Systems | |||
Segment Reporting Information | |||
Net Revenue | 34,303 | 32,179 | 35,843 |
Earnings from operations | 1,270 | 980 | 1,724 |
Assets | 12,104 | 11,690 | |
Operating segments | Printing and Personal Systems Group | Printing | |||
Segment Reporting Information | |||
Net Revenue | 22,979 | 23,896 | 24,538 |
Earnings from operations | 4,185 | 3,933 | 3,612 |
Assets | 10,063 | 11,088 | |
Eliminations of inter-segment net revenue and other | |||
Segment Reporting Information | |||
Net Revenue | -3,773 | -3,593 | -3,708 |
Eliminations of inter-segment net revenue and other | Enterprise Group | |||
Segment Reporting Information | |||
Net Revenue | -1,005 | -1,036 | -1,294 |
Eliminations of inter-segment net revenue and other | Enterprise Services | |||
Segment Reporting Information | |||
Net Revenue | -1,101 | -1,020 | -903 |
Eliminations of inter-segment net revenue and other | Software | |||
Segment Reporting Information | |||
Net Revenue | -326 | -320 | -303 |
Eliminations of inter-segment net revenue and other | HP Financial Services | |||
Segment Reporting Information | |||
Net Revenue | -82 | -59 | -35 |
Eliminations of inter-segment net revenue and other | Corporate Investments | |||
Segment Reporting Information | |||
Net Revenue | -1 | ||
Eliminations of inter-segment net revenue and other | Printing and Personal Systems Group | Personal Systems | |||
Segment Reporting Information | |||
Net Revenue | -999 | -947 | -951 |
Eliminations of inter-segment net revenue and other | Printing and Personal Systems Group | Printing | |||
Segment Reporting Information | |||
Net Revenue | -260 | -211 | -221 |
Significant Reconciling Items | |||
Segment Reporting Information | |||
Corporate and unallocated costs and eliminations | -953 | -786 | -787 |
Stock-based compensation expense | -560 | -500 | -635 |
Amortization of intangible assets | -1,000 | -1,373 | -1,784 |
Impairment of goodwill and intangible assets | -18,035 | ||
Restructuring charges | -1,619 | -990 | -2,266 |
Acquisition-related charges | -11 | -22 | -45 |
Interest and other, net | -628 | -621 | -876 |
Corporate and unallocated assets | |||
Segment Reporting Information | |||
Assets | $15,193 | $12,131 |
Segment_Information_Detail_3
Segment Information (Detail 3) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Segment Reporting Information | |||
Net revenue | $111,454 | $112,298 | $120,357 |
Property, Plant and Equipment, Net [Abstract] | |||
Property, Plant and Equipment, Net | 11,340 | 11,463 | |
U.S. | |||
Segment Reporting Information | |||
Net revenue | 38,805 | 40,284 | 42,140 |
Property, Plant and Equipment, Net [Abstract] | |||
Property, Plant and Equipment, Net | 5,668 | 5,546 | |
Non-U.S. | |||
Segment Reporting Information | |||
Net revenue | 72,649 | 72,014 | 78,217 |
U.K | |||
Property, Plant and Equipment, Net [Abstract] | |||
Property, Plant and Equipment, Net | 1,053 | 1,090 | |
Other countries | |||
Property, Plant and Equipment, Net [Abstract] | |||
Property, Plant and Equipment, Net | $4,619 | $4,827 |
Segment_Information_Details_4
Segment Information (Details 4) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Segment Reporting Information | |||
Net revenue | $111,454 | $112,298 | $120,357 |
Operating segments | |||
Segment Reporting Information | |||
Net revenue | 115,227 | 115,891 | 124,065 |
Eliminations of inter-segment net revenue and other | |||
Segment Reporting Information | |||
Net revenue | -3,773 | -3,593 | -3,708 |
Enterprise Group | |||
Segment Reporting Information | |||
Net revenue | 26,809 | 27,045 | 28,349 |
Enterprise Group | Operating segments | |||
Segment Reporting Information | |||
Net revenue | 27,814 | 28,081 | 29,643 |
Enterprise Group | Operating segments | Industry Standard Servers | |||
Segment Reporting Information | |||
Net revenue | 12,474 | 12,102 | 12,582 |
Enterprise Group | Operating segments | Technology Services | |||
Segment Reporting Information | |||
Net revenue | 8,466 | 8,788 | 9,152 |
Enterprise Group | Operating segments | Storage | |||
Segment Reporting Information | |||
Net revenue | 3,316 | 3,475 | 3,815 |
Enterprise Group | Operating segments | Networking | |||
Segment Reporting Information | |||
Net revenue | 2,629 | 2,526 | 2,482 |
Enterprise Group | Operating segments | Business Critical Systems | |||
Segment Reporting Information | |||
Net revenue | 929 | 1,190 | 1,612 |
Enterprise Group | Eliminations of inter-segment net revenue and other | |||
Segment Reporting Information | |||
Net revenue | -1,005 | -1,036 | -1,294 |
Enterprise Services | |||
Segment Reporting Information | |||
Net revenue | 21,297 | 23,041 | 25,090 |
Enterprise Services | Operating segments | |||
Segment Reporting Information | |||
Net revenue | 22,398 | 24,061 | 25,993 |
Enterprise Services | Operating segments | Infrastructure Technology Outsourcing | |||
Segment Reporting Information | |||
Net revenue | 14,038 | 15,223 | 16,176 |
Enterprise Services | Operating segments | Application and Business Services | |||
Segment Reporting Information | |||
Net revenue | 8,360 | 8,838 | 9,817 |
Enterprise Services | Eliminations of inter-segment net revenue and other | |||
Segment Reporting Information | |||
Net revenue | -1,101 | -1,020 | -903 |
Software | |||
Segment Reporting Information | |||
Net revenue | 3,607 | 3,701 | 3,868 |
Software | Operating segments | |||
Segment Reporting Information | |||
Net revenue | 3,933 | 4,021 | 4,171 |
Software | Eliminations of inter-segment net revenue and other | |||
Segment Reporting Information | |||
Net revenue | -326 | -320 | -303 |
HP Financial Services | |||
Segment Reporting Information | |||
Net revenue | 3,416 | 3,570 | 3,784 |
HP Financial Services | Operating segments | |||
Segment Reporting Information | |||
Net revenue | 3,498 | 3,629 | 3,819 |
HP Financial Services | Eliminations of inter-segment net revenue and other | |||
Segment Reporting Information | |||
Net revenue | -82 | -59 | -35 |
Corporate Investments | |||
Segment Reporting Information | |||
Net revenue | 302 | 24 | 57 |
Corporate Investments | Operating segments | |||
Segment Reporting Information | |||
Net revenue | 302 | 24 | 58 |
Corporate Investments | Eliminations of inter-segment net revenue and other | |||
Segment Reporting Information | |||
Net revenue | -1 | ||
Printing and Personal Systems Group | Operating segments | |||
Segment Reporting Information | |||
Net revenue | 57,282 | 56,075 | 60,381 |
Printing and Personal Systems Group | Personal Systems | |||
Segment Reporting Information | |||
Net revenue | 33,304 | 31,232 | 34,892 |
Printing and Personal Systems Group | Personal Systems | Operating segments | |||
Segment Reporting Information | |||
Net revenue | 34,303 | 32,179 | 35,843 |
Printing and Personal Systems Group | Personal Systems | Operating segments | Notebooks | |||
Segment Reporting Information | |||
Net revenue | 17,540 | 16,029 | 18,830 |
Printing and Personal Systems Group | Personal Systems | Operating segments | Desktops | |||
Segment Reporting Information | |||
Net revenue | 13,197 | 12,844 | 13,888 |
Printing and Personal Systems Group | Personal Systems | Operating segments | Workstations | |||
Segment Reporting Information | |||
Net revenue | 2,218 | 2,147 | 2,148 |
Printing and Personal Systems Group | Personal Systems | Operating segments | Other | |||
Segment Reporting Information | |||
Net revenue | 1,348 | 1,159 | 977 |
Printing and Personal Systems Group | Personal Systems | Eliminations of inter-segment net revenue and other | |||
Segment Reporting Information | |||
Net revenue | -999 | -947 | -951 |
Printing and Personal Systems Group | Printing | |||
Segment Reporting Information | |||
Net revenue | 22,719 | 23,685 | 24,317 |
Printing and Personal Systems Group | Printing | Operating segments | |||
Segment Reporting Information | |||
Net revenue | 22,979 | 23,896 | 24,538 |
Printing and Personal Systems Group | Printing | Operating segments | Supplies | |||
Segment Reporting Information | |||
Net revenue | 14,917 | 15,716 | 16,151 |
Printing and Personal Systems Group | Printing | Operating segments | Commercial Hardware | |||
Segment Reporting Information | |||
Net revenue | 5,717 | 5,744 | 5,946 |
Printing and Personal Systems Group | Printing | Operating segments | Consumer Hardware | |||
Segment Reporting Information | |||
Net revenue | 2,345 | 2,436 | 2,441 |
Printing and Personal Systems Group | Printing | Eliminations of inter-segment net revenue and other | |||
Segment Reporting Information | |||
Net revenue | ($260) | ($211) | ($221) |
Restructuring_Details
Restructuring (Details) (USD $) | 12 Months Ended | 1 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2014 |
position | ||||
Restructuring Reserve | ||||
Balance at the beginning of the period | $1,117 | |||
Charges | 1,619 | 990 | 2,266 | |
Cash Payments | -1,506 | |||
Other Adjustments and Non-Cash Settlements | -116 | |||
Balance at the end of the period | 1,114 | 1,117 | 1,114 | |
Short-term portion of restructuring reserve, recorded in Accrued restructuring | 898 | 901 | 898 | |
Long-term portion of restructuring reserve, recorded in Other liabilities | 216 | 216 | 216 | |
Total Costs Incurred to Date | 8,970 | 8,970 | ||
Total Expected Costs to be Incurred | 9,606 | 9,606 | ||
Fiscal 2012 Restructuring Plan | ||||
Restructuring Reserve | ||||
Balance at the beginning of the period | 985 | |||
Charges | 1,625 | |||
Cash Payments | -1,441 | |||
Other Adjustments and Non-Cash Settlements | -116 | |||
Balance at the end of the period | 1,053 | 985 | 1,053 | |
Expected positions to be eliminated | 34,000 | 55,000 | ||
Positions eliminated | 40,900 | 40,900 | ||
Total Costs Incurred to Date | 4,908 | 4,908 | ||
Total Expected Costs to be Incurred | 5,540 | 4,100 | 5,540 | |
Completion Date | 31-Oct-21 | |||
Fiscal 2012 Restructuring Plan | Severance and EER | ||||
Restructuring Reserve | ||||
Balance at the beginning of the period | 945 | |||
Charges | 1,357 | |||
Cash Payments | -1,233 | |||
Other Adjustments and Non-Cash Settlements | -114 | |||
Balance at the end of the period | 955 | 955 | ||
Total Costs Incurred to Date | 4,393 | 4,393 | ||
Total Expected Costs to be Incurred | 5,000 | 5,000 | ||
Fiscal 2012 Restructuring Plan | Infrastructure and other items | ||||
Restructuring Reserve | ||||
Balance at the beginning of the period | 40 | |||
Charges | 268 | |||
Cash Payments | -208 | |||
Other Adjustments and Non-Cash Settlements | -2 | |||
Balance at the end of the period | 98 | 98 | ||
Total Costs Incurred to Date | 515 | 515 | ||
Total Expected Costs to be Incurred | 540 | 540 | ||
Other Plans | ||||
Restructuring Reserve | ||||
Balance at the beginning of the period | 132 | |||
Charges | -6 | |||
Cash Payments | -65 | |||
Balance at the end of the period | 61 | 61 | ||
Total Costs Incurred to Date | 4,062 | 4,062 | ||
Total Expected Costs to be Incurred | 4,066 | 4,066 | ||
Completion Date | 31-Oct-19 | |||
Other Plans | Severance and workforce reductions | ||||
Restructuring Reserve | ||||
Balance at the beginning of the period | 10 | |||
Cash Payments | -3 | |||
Balance at the end of the period | 7 | 7 | ||
Total Costs Incurred to Date | 2,629 | 2,629 | ||
Total Expected Costs to be Incurred | 2,629 | 2,629 | ||
Other Plans | Infrastructure | ||||
Restructuring Reserve | ||||
Balance at the beginning of the period | 122 | |||
Charges | -6 | |||
Cash Payments | -62 | |||
Balance at the end of the period | 54 | 54 | ||
Total Costs Incurred to Date | 1,433 | 1,433 | ||
Total Expected Costs to be Incurred | $1,437 | $1,437 |
Retirement_and_PostRetirement_2
Retirement and Post-Retirement Benefit Plans (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Retirement and post-retirement benefit plans | |||
Plan assets | $12,807 | $11,703 | |
Projected Benefit Obligation | 14,584 | 12,703 | |
U.S. Defined Benefit Plans | |||
Retirement and post-retirement benefit plans | |||
Plan assets | 11,979 | 10,866 | |
Projected Benefit Obligation | 13,756 | ||
Projected Benefit Obligation | 13,756 | 11,866 | 14,237 |
Post-Retirement Benefit Plans | |||
Retirement and post-retirement benefit plans | |||
Projected Benefit Obligation | 840 | 867 | 1,056 |
Eligible Age for HP Retirement Medical Savings Account Plan | 45 years | ||
DPSP | |||
Retirement and post-retirement benefit plans | |||
Plan assets | 828 | 837 | |
Projected Benefit Obligation | $828 | $837 |
Retirement_and_PostRetirement_3
Retirement and Post-Retirement Benefit Plans (Details 2) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Defined Contribution Plan Disclosure [Line Items] | |||
Total defined contribution expense | $573 | $603 | $628 |
HP 401(k) Plan | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Percent of equal 401(k) match to employees effective during the period | 100.00% | ||
Percentage of maximum matching contribution | 4.00% |
Retirement_and_PostRetirement_4
Retirement and Post-Retirement Benefit Plans (Details 3) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
U.S. Defined Benefit Plans | |||
Net benefit costs | |||
Service cost | $1 | $1 | $1 |
Interest cost | 569 | 560 | 566 |
Expected return on plan assets | -811 | -845 | -793 |
Amortization and deferrals: | |||
Actuarial loss (gain) | 15 | 77 | 43 |
Net periodic benefit (credit) cost | -226 | -207 | -183 |
Settlement loss (gain) | 1 | 12 | 11 |
Special termination benefits | 833 | ||
Net benefit (credit) cost | -225 | -195 | 661 |
Non-U.S. Defined Benefit Plans | |||
Net benefit costs | |||
Service cost | 308 | 337 | 294 |
Interest cost | 737 | 676 | 690 |
Expected return on plan assets | -1,140 | -1,007 | -816 |
Amortization and deferrals: | |||
Actuarial loss (gain) | 318 | 341 | 235 |
Prior service benefit | -23 | -27 | -24 |
Net periodic benefit (credit) cost | 200 | 320 | 379 |
Curtailment (gain) loss | -7 | -3 | 4 |
Settlement loss (gain) | 12 | 18 | -18 |
Special termination benefits | 50 | 31 | 17 |
Net benefit (credit) cost | 255 | 366 | 382 |
Employer Contributions and Funding Policy | |||
Expected contribution to defined benefit plans in fiscal 2015 | 686 | ||
U.S. non-qualified plan participants | |||
Employer Contributions and Funding Policy | |||
Expected contribution to defined benefit plans in fiscal 2015 | 35 | ||
Post-Retirement Benefit Plans | |||
Net benefit costs | |||
Service cost | 5 | 6 | 7 |
Interest cost | 32 | 31 | 35 |
Expected return on plan assets | -34 | -34 | -38 |
Amortization and deferrals: | |||
Actuarial loss (gain) | -10 | 2 | -3 |
Prior service benefit | -41 | -67 | -79 |
Net periodic benefit (credit) cost | -48 | -62 | -78 |
Curtailment (gain) loss | -7 | -30 | |
Special termination benefits | 32 | -5 | 227 |
Net benefit (credit) cost | -16 | -74 | 119 |
Age for eligibility under HP Retirement Medical Savings Account Plan | 45 years | ||
Employer Contributions and Funding Policy | |||
Expected contribution to defined benefit plans in fiscal 2015 | $47 |
Retirement_and_PostRetirement_5
Retirement and Post-Retirement Benefit Plans (Details 4) (USD $) | 12 Months Ended | 6 Months Ended | 12 Months Ended | |
Oct. 31, 2014 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | |
Weighted average assumptions used to calculate net benefit (credit) cost | ||||
Estimated life of plan participants | 26 years 6 months | |||
2012 EER | ||||
Change in benefit obligation: | ||||
Special termination benefits | -833,000,000 | |||
Defined benefit plans with accumulated benefit obligations exceeding the fair value of plan assets | ||||
Combined age and service required for each employee participating in the restructuring plan | 65 years | |||
Number of employees who participated | 8,500 | |||
Special termination benefits | 833,000,000 | |||
Maximum period for continuing health care coverage at active employee contribution rates for participating employees in restructuring plan | 24 months | |||
Curtailment (gain) loss | -30,000,000 | |||
U.S. Defined Benefit Plans | ||||
Weighted average assumptions used to calculate net benefit (credit) cost | ||||
Discount rate (as a percent) | 4.90% | 4.10% | 4.80% | |
Expected increase in compensation levels (as a percent) | 2.00% | 2.00% | 2.00% | |
Expected long-term return on plan assets (as a percent) | 7.70% | 7.80% | 7.60% | |
Increase in defined benefit plan benefit obligation | 870,000,000 | |||
Change in fair value of plan assets: | ||||
Fair value - beginning of year | 10,866,000,000 | 11,536,000,000 | ||
Actual return on plan assets | 1,648,000,000 | 629,000,000 | ||
Employer contributions | 27,000,000 | 54,000,000 | ||
Benefits paid | -558,000,000 | -1,320,000,000 | ||
Settlement | -4,000,000 | -33,000,000 | ||
Fair value - end of year | 11,979,000,000 | 11,536,000,000 | 10,866,000,000 | 11,536,000,000 |
Change in benefit obligation: | ||||
Projected benefit obligation - beginning of year | 11,866,000,000 | 14,237,000,000 | ||
Service cost | 1,000,000 | 1,000,000 | 1,000,000 | |
Interest cost | 569,000,000 | 560,000,000 | 566,000,000 | |
Actuarial (gain) loss | 1,882,000,000 | -1,579,000,000 | ||
Benefits paid | -558,000,000 | -1,320,000,000 | ||
Settlement | -4,000,000 | -33,000,000 | ||
Special termination benefits | 833,000,000 | |||
Projected benefit obligation - end of year | 13,756,000,000 | 14,237,000,000 | 11,866,000,000 | 14,237,000,000 |
Funded status at end of year | -1,777,000,000 | -1,000,000,000 | ||
Accumulated benefit obligation | 13,755,000,000 | 11,865,000,000 | ||
Weighted average assumptions used to calculate the projected benefit obligations | ||||
Discount rate (as a percent) | 4.40% | 4.90% | ||
Expected increase in compensation levels (as a percent) | 2.00% | 2.00% | ||
Net amounts recognized for defined benefit and post-retirement benefit plans in Consolidated Balance Sheets | ||||
Current liabilities | -35,000,000 | -33,000,000 | ||
Noncurrent liabilities | -1,742,000,000 | -967,000,000 | ||
Funded status at end of year | -1,777,000,000 | -1,000,000,000 | ||
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) | 1,405,000,000 | |||
Total recognized in accumulated other comprehensive loss (income) | 1,405,000,000 | |||
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 | 54,000,000 | |||
Total expected to be recognized in net periodic benefit cost (credit) | 54,000,000 | |||
Defined benefit plans with projected benefit obligations exceeding the fair value of plan assets | ||||
Aggregate fair value of plan assets | 11,979,000,000 | 10,866,000,000 | ||
Aggregate projected benefit obligation | 13,756,000,000 | 11,866,000,000 | ||
Defined benefit plans with accumulated benefit obligations exceeding the fair value of plan assets | ||||
Aggregate fair value of plan assets | 11,979,000,000 | 10,866,000,000 | ||
Aggregate accumulated benefit obligation | 13,755,000,000 | 11,865,000,000 | ||
Special termination benefits | -833,000,000 | |||
Contributions to benefit plans | 27,000,000 | 54,000,000 | ||
U.S. Defined Benefit Plans | 2012 EER | Minimum | ||||
Defined benefit plans with accumulated benefit obligations exceeding the fair value of plan assets | ||||
Period for calculation of lump sum payment | 5 months | |||
U.S. Defined Benefit Plans | 2012 EER | Maximum | ||||
Defined benefit plans with accumulated benefit obligations exceeding the fair value of plan assets | ||||
Period for calculation of lump sum payment | 14 months | |||
Non-U.S. Defined Benefit Plans | ||||
Weighted average assumptions used to calculate net benefit (credit) cost | ||||
Discount rate (as a percent) | 3.90% | 3.80% | 4.50% | |
Expected increase in compensation levels (as a percent) | 2.40% | 2.40% | 2.50% | |
Expected long-term return on plan assets (as a percent) | 7.00% | 7.20% | 6.40% | |
Change in fair value of plan assets: | ||||
Fair value - beginning of year | 16,083,000,000 | 14,021,000,000 | ||
Acquisition/addition of plans | 8,000,000 | 7,000,000 | ||
Actual return on plan assets | 1,814,000,000 | 1,842,000,000 | ||
Employer contributions | 1,019,000,000 | 634,000,000 | ||
Participant contributions | 64,000,000 | 63,000,000 | ||
Benefits paid | -568,000,000 | -504,000,000 | ||
Settlement | -49,000,000 | -96,000,000 | ||
Currency impact | -801,000,000 | 116,000,000 | ||
Fair value - end of year | 17,570,000,000 | 14,021,000,000 | 16,083,000,000 | 14,021,000,000 |
Change in benefit obligation: | ||||
Projected benefit obligation - beginning of year | 19,152,000,000 | 18,097,000,000 | ||
Acquisition/addition of plans | 10,000,000 | 14,000,000 | ||
Service cost | 308,000,000 | 337,000,000 | 294,000,000 | |
Interest cost | 737,000,000 | 676,000,000 | 690,000,000 | |
Participant contributions | 64,000,000 | 63,000,000 | ||
Actuarial (gain) loss | 2,500,000,000 | 343,000,000 | ||
Benefits paid | -568,000,000 | -504,000,000 | ||
Plan amendments | 6,000,000 | |||
Curtailment | -49,000,000 | 13,000,000 | ||
Settlement | -49,000,000 | -100,000,000 | ||
Special termination benefits | 50,000,000 | 31,000,000 | 17,000,000 | |
Currency impact | -935,000,000 | 176,000,000 | ||
Projected benefit obligation - end of year | 21,220,000,000 | 18,097,000,000 | 19,152,000,000 | 18,097,000,000 |
Funded status at end of year | -3,650,000,000 | -3,069,000,000 | ||
Accumulated benefit obligation | 20,207,000,000 | 18,254,000,000 | ||
Weighted average assumptions used to calculate the projected benefit obligations | ||||
Discount rate (as a percent) | 3.20% | 3.90% | ||
Expected increase in compensation levels (as a percent) | 2.50% | 2.40% | ||
Net amounts recognized for defined benefit and post-retirement benefit plans in Consolidated Balance Sheets | ||||
Noncurrent assets | 421,000,000 | 479,000,000 | ||
Current liabilities | -43,000,000 | -46,000,000 | ||
Noncurrent liabilities | -4,028,000,000 | -3,502,000,000 | ||
Funded status at end of year | -3,650,000,000 | -3,069,000,000 | ||
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) | 5,423,000,000 | |||
Prior service benefit | -186,000,000 | |||
Total recognized in accumulated other comprehensive loss (income) | 5,237,000,000 | |||
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 | 452,000,000 | |||
Prior service benefit | -22,000,000 | |||
Total expected to be recognized in net periodic benefit cost (credit) | 430,000,000 | |||
Defined benefit plans with projected benefit obligations exceeding the fair value of plan assets | ||||
Aggregate fair value of plan assets | 12,701,000,000 | 10,462,000,000 | ||
Aggregate projected benefit obligation | 16,774,000,000 | 14,010,000,000 | ||
Defined benefit plans with accumulated benefit obligations exceeding the fair value of plan assets | ||||
Aggregate fair value of plan assets | 12,578,000,000 | 9,926,000,000 | ||
Aggregate accumulated benefit obligation | 15,797,000,000 | 12,703,000,000 | ||
Special termination benefits | -50,000,000 | -31,000,000 | -17,000,000 | |
Contributions to benefit plans | 1,019,000,000 | 634,000,000 | ||
Curtailment (gain) loss | -7,000,000 | -3,000,000 | 4,000,000 | |
Retirement Medical Savings Account | 2012 EER | ||||
Change in benefit obligation: | ||||
Special termination benefits | -227,000,000 | |||
Defined benefit plans with accumulated benefit obligations exceeding the fair value of plan assets | ||||
Special termination benefits | 227,000,000 | |||
Curtailment (gain) loss | -37,000,000 | |||
Retirement Medical Savings Account | 2012 EER | Maximum | ||||
Change in fair value of plan assets: | ||||
Employer contributions | 12,000 | |||
Defined benefit plans with accumulated benefit obligations exceeding the fair value of plan assets | ||||
Contributions to benefit plans | 12,000 | |||
Post-Retirement Benefit Plans | ||||
Weighted average assumptions used to calculate net benefit (credit) cost | ||||
Discount rate (as a percent) | 3.90% | 3.00% | 4.40% | |
Expected long-term return on plan assets (as a percent) | 8.90% | 9.00% | 10.00% | |
Change in fair value of plan assets: | ||||
Fair value - beginning of year | 396,000,000 | 395,000,000 | ||
Actual return on plan assets | 83,000,000 | 32,000,000 | ||
Employer contributions | 92,000,000 | 102,000,000 | ||
Participant contributions | 54,000,000 | 72,000,000 | ||
Benefits paid | -167,000,000 | -205,000,000 | ||
Fair value - end of year | 458,000,000 | 395,000,000 | 396,000,000 | 395,000,000 |
Change in benefit obligation: | ||||
Projected benefit obligation - beginning of year | 867,000,000 | 1,056,000,000 | ||
Service cost | 5,000,000 | 6,000,000 | 7,000,000 | |
Interest cost | 32,000,000 | 31,000,000 | 35,000,000 | |
Participant contributions | 54,000,000 | 72,000,000 | ||
Actuarial (gain) loss | 22,000,000 | -85,000,000 | ||
Benefits paid | -167,000,000 | -205,000,000 | ||
Special termination benefits | 32,000,000 | -5,000,000 | 227,000,000 | |
Currency impact | -5,000,000 | -3,000,000 | ||
Projected benefit obligation - end of year | 840,000,000 | 1,056,000,000 | 867,000,000 | 1,056,000,000 |
Funded status at end of year | -382,000,000 | -471,000,000 | ||
Weighted average assumptions used to calculate the projected benefit obligations | ||||
Discount rate (as a percent) | 3.60% | 3.90% | ||
Net amounts recognized for defined benefit and post-retirement benefit plans in Consolidated Balance Sheets | ||||
Current liabilities | -47,000,000 | -109,000,000 | ||
Noncurrent liabilities | -335,000,000 | -362,000,000 | ||
Funded status at end of year | -382,000,000 | -471,000,000 | ||
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) | -115,000,000 | |||
Prior service benefit | -119,000,000 | |||
Total recognized in accumulated other comprehensive loss (income) | -234,000,000 | |||
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 | -10,000,000 | |||
Prior service benefit | -20,000,000 | |||
Total expected to be recognized in net periodic benefit cost (credit) | -30,000,000 | |||
Defined benefit plans with accumulated benefit obligations exceeding the fair value of plan assets | ||||
Special termination benefits | -32,000,000 | 5,000,000 | -227,000,000 | |
Contributions to benefit plans | 92,000,000 | 102,000,000 | ||
Curtailment (gain) loss | ($7,000,000) | ($30,000,000) |
Retirement_and_PostRetirement_6
Retirement and Post-Retirement Benefit Plans (Details 5) (USD $) | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
In Millions, unless otherwise specified | |||
U.S. Defined Benefit Plans | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | $11,979 | $10,866 | $11,536 |
U.S. Defined Benefit Plans | U.S, equity securities | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | 1,787 | 1,711 | |
U.S. Defined Benefit Plans | Non-U.S, equity securities | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | 1,268 | 1,274 | |
U.S. Defined Benefit Plans | Corporate debt securities | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | 3,290 | 3,028 | |
U.S. Defined Benefit Plans | Government debt securities | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | 2,204 | 1,849 | |
U.S. Defined Benefit Plans | Private Equity, alternative Investments | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | 1,284 | 1,250 | |
U.S. Defined Benefit Plans | Hybrids, alternative investments | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | 3 | 2 | |
U.S. Defined Benefit Plans | Hedge Funds, alternative investments | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | 609 | 113 | |
U.S. Defined Benefit Plans | Common Collective Trusts and 103-12 Investment Entities | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | 854 | 1,233 | |
U.S. Defined Benefit Plans | Registered Investment Companies | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | 382 | 390 | |
U.S. Defined Benefit Plans | Cash and Cash Equivalents | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | 227 | 73 | |
U.S. Defined Benefit Plans | Other | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | 71 | -57 | |
U.S. Defined Benefit Plans | Fair Value Measured Using Level 1 | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | 3,260 | 3,020 | |
U.S. Defined Benefit Plans | Fair Value Measured Using Level 1 | U.S, equity securities | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | 1,787 | 1,711 | |
U.S. Defined Benefit Plans | Fair Value Measured Using Level 1 | Non-U.S, equity securities | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | 1,268 | 1,274 | |
U.S. Defined Benefit Plans | Fair Value Measured Using Level 1 | Registered Investment Companies | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | 68 | 61 | |
U.S. Defined Benefit Plans | Fair Value Measured Using Level 1 | Cash and Cash Equivalents | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | 161 | 11 | |
U.S. Defined Benefit Plans | Fair Value Measured Using Level 1 | Other | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | -24 | -37 | |
U.S. Defined Benefit Plans | Fair Value Measured Using Level 2 | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | 7,162 | 6,481 | |
U.S. Defined Benefit Plans | Fair Value Measured Using Level 2 | Corporate debt securities | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | 3,283 | 3,028 | |
U.S. Defined Benefit Plans | Fair Value Measured Using Level 2 | Government debt securities | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | 2,204 | 1,849 | |
U.S. Defined Benefit Plans | Fair Value Measured Using Level 2 | Hedge Funds, alternative investments | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | 346 | ||
U.S. Defined Benefit Plans | Fair Value Measured Using Level 2 | Common Collective Trusts and 103-12 Investment Entities | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | 854 | 1,233 | |
U.S. Defined Benefit Plans | Fair Value Measured Using Level 2 | Registered Investment Companies | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | 314 | 329 | |
U.S. Defined Benefit Plans | Fair Value Measured Using Level 2 | Cash and Cash Equivalents | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | 66 | 62 | |
U.S. Defined Benefit Plans | Fair Value Measured Using Level 2 | Other | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | 95 | -20 | |
U.S. Defined Benefit Plans | Fair Value Measured Using Level 3 | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | 1,557 | 1,365 | 1,368 |
U.S. Defined Benefit Plans | Fair Value Measured Using Level 3 | Corporate debt securities | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | 7 | 1 | |
U.S. Defined Benefit Plans | Fair Value Measured Using Level 3 | Private Equity, alternative Investments | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | 1,284 | 1,250 | 1,300 |
U.S. Defined Benefit Plans | Fair Value Measured Using Level 3 | Hybrids, alternative investments | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | 3 | 2 | 2 |
U.S. Defined Benefit Plans | Fair Value Measured Using Level 3 | Hedge Funds, alternative investments | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | 263 | 113 | 65 |
Non-U.S. Defined Benefit Plans | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | 17,570 | 16,083 | 14,021 |
Non-U.S. Defined Benefit Plans | U.S, equity securities | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | 2,965 | 2,487 | |
Non-U.S. Defined Benefit Plans | Non-U.S, equity securities | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | 4,872 | 4,806 | |
Non-U.S. Defined Benefit Plans | Corporate debt securities | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | 2,935 | 3,347 | |
Non-U.S. Defined Benefit Plans | Government debt securities | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | 1,787 | 1,751 | |
Non-U.S. Defined Benefit Plans | Private Equity, alternative Investments | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | 53 | 50 | |
Non-U.S. Defined Benefit Plans | Hybrids, alternative investments | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | 2,623 | 1,223 | |
Non-U.S. Defined Benefit Plans | Hedge Funds, alternative investments | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | 388 | 430 | |
Non-U.S. Defined Benefit Plans | Real Estate Funds | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | 1,040 | 1,032 | |
Non-U.S. Defined Benefit Plans | Insurance Group Annuity Contracts | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | 123 | 131 | |
Non-U.S. Defined Benefit Plans | Cash and Cash Equivalents | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | 573 | 652 | |
Non-U.S. Defined Benefit Plans | Other | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | 211 | 174 | |
Non-U.S. Defined Benefit Plans | Fair Value Measured Using Level 1 | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | 7,971 | 7,743 | |
Non-U.S. Defined Benefit Plans | Fair Value Measured Using Level 1 | U.S, equity securities | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | 2,935 | 2,456 | |
Non-U.S. Defined Benefit Plans | Fair Value Measured Using Level 1 | Non-U.S, equity securities | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | 4,050 | 4,059 | |
Non-U.S. Defined Benefit Plans | Fair Value Measured Using Level 1 | Hybrids, alternative investments | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | 114 | ||
Non-U.S. Defined Benefit Plans | Fair Value Measured Using Level 1 | Real Estate Funds | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | 220 | 470 | |
Non-U.S. Defined Benefit Plans | Fair Value Measured Using Level 1 | Cash and Cash Equivalents | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | 573 | 648 | |
Non-U.S. Defined Benefit Plans | Fair Value Measured Using Level 1 | Other | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | 79 | 110 | |
Non-U.S. Defined Benefit Plans | Fair Value Measured Using Level 2 | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | 8,516 | 7,603 | |
Non-U.S. Defined Benefit Plans | Fair Value Measured Using Level 2 | U.S, equity securities | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | 30 | 31 | |
Non-U.S. Defined Benefit Plans | Fair Value Measured Using Level 2 | Non-U.S, equity securities | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | 742 | 670 | |
Non-U.S. Defined Benefit Plans | Fair Value Measured Using Level 2 | Corporate debt securities | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | 2,935 | 3,347 | |
Non-U.S. Defined Benefit Plans | Fair Value Measured Using Level 2 | Government debt securities | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | 1,787 | 1,751 | |
Non-U.S. Defined Benefit Plans | Fair Value Measured Using Level 2 | Private Equity, alternative Investments | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | 2 | 2 | |
Non-U.S. Defined Benefit Plans | Fair Value Measured Using Level 2 | Hybrids, alternative investments | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | 2,466 | 1,223 | |
Non-U.S. Defined Benefit Plans | Fair Value Measured Using Level 2 | Hedge Funds, alternative investments | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | 103 | 226 | |
Non-U.S. Defined Benefit Plans | Fair Value Measured Using Level 2 | Real Estate Funds | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | 277 | 237 | |
Non-U.S. Defined Benefit Plans | Fair Value Measured Using Level 2 | Insurance Group Annuity Contracts | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | 44 | 50 | |
Non-U.S. Defined Benefit Plans | Fair Value Measured Using Level 2 | Cash and Cash Equivalents | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | 4 | ||
Non-U.S. Defined Benefit Plans | Fair Value Measured Using Level 2 | Other | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | 130 | 62 | |
Non-U.S. Defined Benefit Plans | Fair Value Measured Using Level 3 | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | 1,083 | 737 | 614 |
Non-U.S. Defined Benefit Plans | Fair Value Measured Using Level 3 | Non-U.S, equity securities | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | 80 | 77 | 76 |
Non-U.S. Defined Benefit Plans | Fair Value Measured Using Level 3 | Private Equity, alternative Investments | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | 51 | 48 | 21 |
Non-U.S. Defined Benefit Plans | Fair Value Measured Using Level 3 | Hybrids, alternative investments | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | 43 | ||
Non-U.S. Defined Benefit Plans | Fair Value Measured Using Level 3 | Hedge Funds, alternative investments | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | 285 | 204 | 233 |
Non-U.S. Defined Benefit Plans | Fair Value Measured Using Level 3 | Real Estate Funds | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | 543 | 325 | 194 |
Non-U.S. Defined Benefit Plans | Fair Value Measured Using Level 3 | Insurance Group Annuity Contracts | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | 79 | 81 | 88 |
Non-U.S. Defined Benefit Plans | Fair Value Measured Using Level 3 | Other | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | 2 | 2 | 2 |
Post-Retirement Benefit Plans | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | 458 | 396 | 395 |
Post-Retirement Benefit Plans | Corporate debt securities | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | 20 | 17 | |
Post-Retirement Benefit Plans | Government debt securities | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | 22 | 22 | |
Post-Retirement Benefit Plans | Private Equity, alternative Investments | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | 271 | 234 | |
Post-Retirement Benefit Plans | Hybrids, alternative investments | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | 1 | 1 | |
Post-Retirement Benefit Plans | Common Collective Trusts and 103-12 Investment Entities | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | 55 | 42 | |
Post-Retirement Benefit Plans | Registered Investment Companies | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | 87 | 79 | |
Post-Retirement Benefit Plans | Cash and Cash Equivalents | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | 6 | 3 | |
Post-Retirement Benefit Plans | Other | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | -4 | -2 | |
Post-Retirement Benefit Plans | Fair Value Measured Using Level 1 | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | 82 | 82 | |
Post-Retirement Benefit Plans | Fair Value Measured Using Level 1 | Government debt securities | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | 5 | ||
Post-Retirement Benefit Plans | Fair Value Measured Using Level 1 | Registered Investment Companies | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | 86 | 79 | |
Post-Retirement Benefit Plans | Fair Value Measured Using Level 1 | Other | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | -4 | -2 | |
Post-Retirement Benefit Plans | Fair Value Measured Using Level 2 | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | 104 | 79 | |
Post-Retirement Benefit Plans | Fair Value Measured Using Level 2 | Corporate debt securities | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | 20 | 17 | |
Post-Retirement Benefit Plans | Fair Value Measured Using Level 2 | Government debt securities | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | 22 | 17 | |
Post-Retirement Benefit Plans | Fair Value Measured Using Level 2 | Common Collective Trusts and 103-12 Investment Entities | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | 55 | 42 | |
Post-Retirement Benefit Plans | Fair Value Measured Using Level 2 | Registered Investment Companies | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | 1 | ||
Post-Retirement Benefit Plans | Fair Value Measured Using Level 2 | Cash and Cash Equivalents | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | 6 | 3 | |
Post-Retirement Benefit Plans | Fair Value Measured Using Level 3 | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | 272 | 235 | 236 |
Post-Retirement Benefit Plans | Fair Value Measured Using Level 3 | Private Equity, alternative Investments | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | 271 | 234 | 235 |
Post-Retirement Benefit Plans | Fair Value Measured Using Level 3 | Hybrids, alternative investments | |||
Retirement and post-retirement benefit plans | |||
Fair value of plan assets | $1 | $1 | $1 |
Retirement_and_PostRetirement_7
Retirement and Post-Retirement Benefit Plans (Details 6) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
U.S. Defined Benefit Plans | |||
Changes in fair value measurements of Level 3 investments | |||
Fair value - beginning of year | $10,866 | $11,536 | |
Actual return on plan assets: | |||
Fair value - end of year | 11,979 | 11,536 | |
Plan assets target allocation (as a percent) | 100.00% | ||
Plan asset actual allocations (as a percent) | 100.00% | 100.00% | |
Future benefits payable for the retirement and post-retirement plans | |||
2015 | 801 | ||
2016 | 588 | ||
2017 | 613 | ||
2018 | 648 | ||
2019 | 694 | ||
Next five fiscal years to October 31, 2024 | 3,850 | ||
U.S. Defined Benefit Plans | Fair Value Measured Using Level 3 | |||
Changes in fair value measurements of Level 3 investments | |||
Fair value - beginning of year | 1,365 | 1,368 | |
Actual return on plan assets: | |||
Relating to assets still held at the reporting date | 103 | 4 | |
Relating to assets sold during the period | 169 | 143 | |
Purchases, sales, and settlements (net) | -80 | -149 | |
Transfers in and/or out of Level 3 | -1 | ||
Fair value - end of year | 1,557 | 1,365 | |
U.S. Defined Benefit Plans | Marketable equity securities | |||
Actual return on plan assets: | |||
Plan assets target allocation (as a percent) | 47.50% | ||
Plan asset actual allocations (as a percent) | 47.70% | 49.30% | |
U.S. Defined Benefit Plans | U.S, equity securities | |||
Actual return on plan assets: | |||
Fair value - end of year | 1,787 | 1,711 | |
U.S. Defined Benefit Plans | Non-U.S, equity securities | |||
Actual return on plan assets: | |||
Fair value - end of year | 1,268 | 1,274 | |
U.S. Defined Benefit Plans | Debt securities: | |||
Actual return on plan assets: | |||
Plan assets target allocation (as a percent) | 52.50% | ||
Plan asset actual allocations (as a percent) | 49.20% | 48.20% | |
U.S. Defined Benefit Plans | Corporate debt securities | |||
Actual return on plan assets: | |||
Fair value - end of year | 3,290 | 3,028 | |
U.S. Defined Benefit Plans | Corporate debt securities | Fair Value Measured Using Level 3 | |||
Changes in fair value measurements of Level 3 investments | |||
Fair value - beginning of year | 1 | ||
Actual return on plan assets: | |||
Purchases, sales, and settlements (net) | 7 | ||
Transfers in and/or out of Level 3 | -1 | ||
Fair value - end of year | 7 | ||
U.S. Defined Benefit Plans | Government debt securities | |||
Actual return on plan assets: | |||
Fair value - end of year | 2,204 | 1,849 | |
U.S. Defined Benefit Plans | Private Equity, alternative Investments | |||
Actual return on plan assets: | |||
Fair value - end of year | 1,284 | 1,250 | |
Plan asset actual allocations (as a percent) | 15.80% | 12.60% | |
U.S. Defined Benefit Plans | Private Equity, alternative Investments | Fair Value Measured Using Level 3 | |||
Changes in fair value measurements of Level 3 investments | |||
Fair value - beginning of year | 1,250 | 1,300 | |
Actual return on plan assets: | |||
Relating to assets still held at the reporting date | 92 | -9 | |
Relating to assets sold during the period | 169 | 143 | |
Purchases, sales, and settlements (net) | -227 | -184 | |
Fair value - end of year | 1,284 | 1,250 | |
U.S. Defined Benefit Plans | Hybrids, alternative investments | |||
Actual return on plan assets: | |||
Fair value - end of year | 3 | 2 | |
U.S. Defined Benefit Plans | Hybrids, alternative investments | Fair Value Measured Using Level 3 | |||
Changes in fair value measurements of Level 3 investments | |||
Fair value - beginning of year | 2 | 2 | |
Actual return on plan assets: | |||
Relating to assets still held at the reporting date | 1 | ||
Fair value - end of year | 3 | 2 | |
U.S. Defined Benefit Plans | Hedge Funds, alternative investments | |||
Actual return on plan assets: | |||
Fair value - end of year | 609 | 113 | |
U.S. Defined Benefit Plans | Hedge Funds, alternative investments | Fair Value Measured Using Level 3 | |||
Changes in fair value measurements of Level 3 investments | |||
Fair value - beginning of year | 113 | 65 | |
Actual return on plan assets: | |||
Relating to assets still held at the reporting date | 10 | 13 | |
Purchases, sales, and settlements (net) | 140 | 35 | |
Fair value - end of year | 263 | 113 | |
U.S. Defined Benefit Plans | Equity securities in public companies | |||
Actual return on plan assets: | |||
Plan asset actual allocations (as a percent) | 31.30% | 36.70% | |
U.S. Defined Benefit Plans | Real Estate Funds | |||
Actual return on plan assets: | |||
Plan asset actual allocations (as a percent) | 0.60% | ||
U.S. Defined Benefit Plans | Cash and Cash Equivalents | |||
Actual return on plan assets: | |||
Fair value - end of year | 227 | 73 | |
Plan asset actual allocations (as a percent) | 3.10% | 2.50% | |
U.S. Defined Benefit Plans | Other | |||
Actual return on plan assets: | |||
Fair value - end of year | 71 | -57 | |
U.S. non-qualified plan participants | |||
Future Contributions and Funding Policy | |||
Expected contribution to defined benefit plans in fiscal 2015 | 35 | ||
Non-U.S. Defined Benefit Plans | |||
Changes in fair value measurements of Level 3 investments | |||
Fair value - beginning of year | 16,083 | 14,021 | |
Actual return on plan assets: | |||
Fair value - end of year | 17,570 | 14,021 | |
Plan assets target allocation (as a percent) | 100.00% | ||
Plan asset actual allocations (as a percent) | 100.00% | 100.00% | |
Future Contributions and Funding Policy | |||
Expected contribution to defined benefit plans in fiscal 2015 | 686 | ||
Future benefits payable for the retirement and post-retirement plans | |||
2015 | 567 | ||
2016 | 528 | ||
2017 | 560 | ||
2018 | 606 | ||
2019 | 659 | ||
Next five fiscal years to October 31, 2024 | 3,980 | ||
Non-U.S. Defined Benefit Plans | Fair Value Measured Using Level 3 | |||
Changes in fair value measurements of Level 3 investments | |||
Fair value - beginning of year | 737 | 614 | |
Actual return on plan assets: | |||
Relating to assets still held at the reporting date | 57 | 20 | |
Relating to assets sold during the period | 1 | 11 | |
Purchases, sales, and settlements (net) | 216 | 92 | |
Transfers in and/or out of Level 3 | 72 | ||
Fair value - end of year | 1,083 | 737 | |
Non-U.S. Defined Benefit Plans | Marketable equity securities | |||
Actual return on plan assets: | |||
Plan assets target allocation (as a percent) | 67.70% | ||
Plan asset actual allocations (as a percent) | 69.10% | 63.40% | |
Non-U.S. Defined Benefit Plans | U.S, equity securities | |||
Actual return on plan assets: | |||
Fair value - end of year | 2,965 | 2,487 | |
Non-U.S. Defined Benefit Plans | Non-U.S, equity securities | |||
Actual return on plan assets: | |||
Fair value - end of year | 4,872 | 4,806 | |
Non-U.S. Defined Benefit Plans | Non-U.S, equity securities | Fair Value Measured Using Level 3 | |||
Changes in fair value measurements of Level 3 investments | |||
Fair value - beginning of year | 77 | 76 | |
Actual return on plan assets: | |||
Relating to assets still held at the reporting date | 3 | 1 | |
Fair value - end of year | 80 | 77 | |
Non-U.S. Defined Benefit Plans | Debt securities: | |||
Actual return on plan assets: | |||
Plan assets target allocation (as a percent) | 31.60% | ||
Plan asset actual allocations (as a percent) | 27.60% | 32.50% | |
Non-U.S. Defined Benefit Plans | Corporate debt securities | |||
Actual return on plan assets: | |||
Fair value - end of year | 2,935 | 3,347 | |
Non-U.S. Defined Benefit Plans | Government debt securities | |||
Actual return on plan assets: | |||
Fair value - end of year | 1,787 | 1,751 | |
Non-U.S. Defined Benefit Plans | Private Equity, alternative Investments | |||
Actual return on plan assets: | |||
Fair value - end of year | 53 | 50 | |
Plan asset actual allocations (as a percent) | 15.20% | 7.90% | |
Non-U.S. Defined Benefit Plans | Private Equity, alternative Investments | Fair Value Measured Using Level 3 | |||
Changes in fair value measurements of Level 3 investments | |||
Fair value - beginning of year | 48 | 21 | |
Actual return on plan assets: | |||
Relating to assets still held at the reporting date | 2 | 8 | |
Relating to assets sold during the period | 2 | ||
Purchases, sales, and settlements (net) | -1 | 19 | |
Fair value - end of year | 51 | 48 | |
Non-U.S. Defined Benefit Plans | Hybrids, alternative investments | |||
Actual return on plan assets: | |||
Fair value - end of year | 2,623 | 1,223 | |
Non-U.S. Defined Benefit Plans | Hybrids, alternative investments | Fair Value Measured Using Level 3 | |||
Actual return on plan assets: | |||
Purchases, sales, and settlements (net) | 43 | ||
Fair value - end of year | 43 | ||
Non-U.S. Defined Benefit Plans | Hedge Funds, alternative investments | |||
Actual return on plan assets: | |||
Fair value - end of year | 388 | 430 | |
Non-U.S. Defined Benefit Plans | Hedge Funds, alternative investments | Fair Value Measured Using Level 3 | |||
Changes in fair value measurements of Level 3 investments | |||
Fair value - beginning of year | 204 | 233 | |
Actual return on plan assets: | |||
Relating to assets still held at the reporting date | 14 | ||
Relating to assets sold during the period | -1 | 11 | |
Purchases, sales, and settlements (net) | 68 | -40 | |
Fair value - end of year | 285 | 204 | |
Non-U.S. Defined Benefit Plans | Equity securities in public companies | |||
Actual return on plan assets: | |||
Plan asset actual allocations (as a percent) | 46.80% | 48.00% | |
Non-U.S. Defined Benefit Plans | Real Estate Funds | |||
Actual return on plan assets: | |||
Fair value - end of year | 1,040 | 1,032 | |
Plan asset actual allocations (as a percent) | 7.10% | 7.50% | |
Non-U.S. Defined Benefit Plans | Real Estate Funds | Fair Value Measured Using Level 3 | |||
Changes in fair value measurements of Level 3 investments | |||
Fair value - beginning of year | 325 | 194 | |
Actual return on plan assets: | |||
Relating to assets still held at the reporting date | 46 | 16 | |
Purchases, sales, and settlements (net) | 108 | 115 | |
Transfers in and/or out of Level 3 | 64 | ||
Fair value - end of year | 543 | 325 | |
Non-U.S. Defined Benefit Plans | Insurance Group Annuity Contracts | |||
Actual return on plan assets: | |||
Fair value - end of year | 123 | 131 | |
Non-U.S. Defined Benefit Plans | Insurance Group Annuity Contracts | Fair Value Measured Using Level 3 | |||
Changes in fair value measurements of Level 3 investments | |||
Fair value - beginning of year | 81 | 88 | |
Actual return on plan assets: | |||
Relating to assets still held at the reporting date | -8 | -5 | |
Purchases, sales, and settlements (net) | -2 | -2 | |
Transfers in and/or out of Level 3 | 8 | ||
Fair value - end of year | 79 | 81 | |
Non-U.S. Defined Benefit Plans | Cash and Cash Equivalents | |||
Changes in fair value measurements of Level 3 investments | |||
Fair value - beginning of year | 652 | ||
Actual return on plan assets: | |||
Fair value - end of year | 573 | ||
Plan assets target allocation (as a percent) | 0.70% | ||
Plan asset actual allocations (as a percent) | 3.30% | 4.10% | |
Non-U.S. Defined Benefit Plans | Other | |||
Actual return on plan assets: | |||
Fair value - end of year | 211 | 174 | |
Non-U.S. Defined Benefit Plans | Other | Fair Value Measured Using Level 3 | |||
Changes in fair value measurements of Level 3 investments | |||
Fair value - beginning of year | 2 | ||
Actual return on plan assets: | |||
Fair value - end of year | 2 | 2 | 2 |
Post-Retirement Benefit Plans | |||
Changes in fair value measurements of Level 3 investments | |||
Fair value - beginning of year | 396 | 395 | |
Actual return on plan assets: | |||
Fair value - end of year | 458 | 395 | |
Plan assets target allocation (as a percent) | 100.00% | ||
Plan asset actual allocations (as a percent) | 100.00% | 100.00% | |
Future Contributions and Funding Policy | |||
Expected contribution to defined benefit plans in fiscal 2015 | 47 | ||
Future benefits payable for the retirement and post-retirement plans | |||
2015 | 91 | ||
2016 | 94 | ||
2017 | 82 | ||
2018 | 71 | ||
2019 | 68 | ||
Next five fiscal years to October 31, 2024 | 278 | ||
Post-Retirement Benefit Plans | Fair Value Measured Using Level 3 | |||
Changes in fair value measurements of Level 3 investments | |||
Fair value - beginning of year | 235 | 236 | |
Actual return on plan assets: | |||
Relating to assets still held at the reporting date | 51 | 5 | |
Relating to assets sold during the period | 21 | 21 | |
Purchases, sales, and settlements (net) | -35 | -27 | |
Fair value - end of year | 272 | 235 | |
Post-Retirement Benefit Plans | Marketable equity securities | |||
Actual return on plan assets: | |||
Plan assets target allocation (as a percent) | 71.10% | ||
Plan asset actual allocations (as a percent) | 68.80% | 68.60% | |
Post-Retirement Benefit Plans | Debt securities: | |||
Actual return on plan assets: | |||
Plan assets target allocation (as a percent) | 27.00% | ||
Plan asset actual allocations (as a percent) | 27.50% | 29.00% | |
Post-Retirement Benefit Plans | Corporate debt securities | |||
Actual return on plan assets: | |||
Fair value - end of year | 20 | 17 | |
Post-Retirement Benefit Plans | Government debt securities | |||
Actual return on plan assets: | |||
Fair value - end of year | 22 | 22 | |
Post-Retirement Benefit Plans | Private Equity, alternative Investments | |||
Actual return on plan assets: | |||
Fair value - end of year | 271 | 234 | |
Plan asset actual allocations (as a percent) | 58.60% | 59.10% | |
Post-Retirement Benefit Plans | Private Equity, alternative Investments | Fair Value Measured Using Level 3 | |||
Changes in fair value measurements of Level 3 investments | |||
Fair value - beginning of year | 234 | 235 | |
Actual return on plan assets: | |||
Relating to assets still held at the reporting date | 51 | 5 | |
Relating to assets sold during the period | 21 | 21 | |
Purchases, sales, and settlements (net) | -35 | -27 | |
Fair value - end of year | 271 | 234 | |
Post-Retirement Benefit Plans | Hybrids, alternative investments | |||
Actual return on plan assets: | |||
Fair value - end of year | 1 | 1 | |
Post-Retirement Benefit Plans | Hybrids, alternative investments | Fair Value Measured Using Level 3 | |||
Changes in fair value measurements of Level 3 investments | |||
Fair value - beginning of year | 1 | ||
Actual return on plan assets: | |||
Fair value - end of year | 1 | 1 | 1 |
Post-Retirement Benefit Plans | Equity securities in public companies | |||
Actual return on plan assets: | |||
Plan asset actual allocations (as a percent) | 10.20% | 9.50% | |
Post-Retirement Benefit Plans | Cash and Cash Equivalents | |||
Changes in fair value measurements of Level 3 investments | |||
Fair value - beginning of year | 3 | ||
Actual return on plan assets: | |||
Fair value - end of year | 6 | ||
Plan assets target allocation (as a percent) | 1.90% | ||
Plan asset actual allocations (as a percent) | 3.70% | 2.40% | |
Post-Retirement Benefit Plans | Other | |||
Actual return on plan assets: | |||
Fair value - end of year | ($4) | ($2) |
StockBased_Compensation_Detail
Stock-Based Compensation (Detail) (USD $) | 12 Months Ended | ||
Share data in Thousands, except Per Share data, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Stock-Based Compensation | |||
Stock-based compensation expense | $560,000,000 | $500,000,000 | $635,000,000 |
Income tax benefit | -179,000,000 | -158,000,000 | -197,000,000 |
Stock-based compensation expense, net of tax | 381,000,000 | 342,000,000 | 438,000,000 |
Cash received from option exercises and purchases under the ESPP | 297,000,000 | 288,000,000 | 716,000,000 |
Benefit realized for the tax deduction from option exercises of share-based payment awards | 51,000,000 | 13,000,000 | 57,000,000 |
Restricted Stock Awards | |||
Shares | |||
Outstanding at the beginning of the period (in shares) | 32,262 | 25,532 | 16,813 |
Granted (in shares) | 26,036 | 20,707 | 20,316 |
Vested (in shares) | -14,253 | -10,966 | -8,521 |
Forfeited (in shares) | -3,237 | -3,011 | -3,076 |
Outstanding at the end of the period (in shares) | 40,808 | 32,262 | 25,532 |
Weighted-Average Grant Date Fair Value Per Share | |||
Outstanding at the beginning of the period (in dollars per share) | $21 | $31 | $39 |
Granted (in dollars per share) | $28 | $15 | $27 |
Vested (in dollars per share) | $24 | $33 | $38 |
Forfeited (in dollars per share) | $22 | $24 | $34 |
Outstanding at the end of the period (in dollars per share) | $24 | $21 | $31 |
Total grant date fair value of restricted stock vested | 234,000,000 | 247,000,000 | 229,000,000 |
Unrecognized pre-tax stock-based compensation expense and recognition period | |||
Unrecognized pre-tax stock-based compensation expense | 511,000,000 | ||
Remaining weighted-average vesting period over which pre-tax stock-based compensation expense is expected to be recognized | 1 year 4 months 24 days | ||
Stock Options | |||
Unrecognized pre-tax stock-based compensation expense and recognition period | |||
Unrecognized pre-tax stock-based compensation expense | 61,000,000 | ||
Remaining weighted-average vesting period over which pre-tax stock-based compensation expense is expected to be recognized | 2 years | ||
Weighted-average fair value and the assumptions used to measure fair value | |||
Weighted- average fair value of grants per option (in dollars per share) | $7 | $4 | $9 |
Expected volatility (as a percent) | 33.10% | 41.70% | 41.90% |
Risk-free interest rate (as a percent) | 1.80% | 1.10% | 1.20% |
Expected dividend yield (as a percent) | 2.10% | 3.60% | 1.80% |
Expected term in years | 5 years 8 months 12 days | 5 years 10 months 24 days | 5 years 7 months 6 days |
Total grant date fair value of options vested | 53,000,000 | 64,000,000 | 104,000,000 |
Shares | |||
Outstanding at beginning of period (in shares) | 84,042 | 87,296 | 120,243 |
Granted (in shares) | 9,575 | 25,785 | 7,529 |
Exercised (in shares) | -11,145 | -10,063 | -29,683 |
Forfeited/cancelled/expired (in shares) | -24,619 | -18,976 | -10,793 |
Outstanding at end of period (in shares) | 57,853 | 84,042 | 87,296 |
Vested and expected to vest at end of period (in shares) | 54,166 | 80,004 | 85,935 |
Exercisable at the end of period (in shares) | 30,459 | 49,825 | 68,437 |
Weighted-Average Exercise Price | |||
Outstanding at the beginning of the period (in dollars per share) | $27 | $29 | $28 |
Granted (in dollars per share) | $28 | $15 | $27 |
Exercised (in dollars per share) | $18 | $19 | $20 |
Forfeited/cancelled/expired (in dollars per share) | $31 | $25 | $35 |
Outstanding at end of period (in dollars per share) | $27 | $27 | $29 |
Vested and expected to vest at the end of period (in dollars per share) | $27 | $27 | $29 |
Exercisable at the end of the period (in dollars per share) | $33 | $33 | $31 |
Weighted-Average Remaining Contractual Term | |||
Outstanding at the end of the period | 4 years 3 months 18 days | 3 years 10 months 24 days | 3 years |
Vested and expected to vest at the end of the period | 4 years 1 month 6 days | 3 years 8 months 12 days | 2 years 10 months 24 days |
Exercisable at the end of the period | 2 years 3 months 18 days | 1 year 9 months 18 days | 1 year 10 months 24 days |
Aggregate Intrinsic Value | |||
Outstanding at the end of the period | 629,000,000 | 303,000,000 | 15,000,000 |
Vested and expected to vest at the end of the period | 571,000,000 | 274,000,000 | 15,000,000 |
Exercisable at the end of the period | 197,000,000 | 58,000,000 | 12,000,000 |
Options exercised | $151,000,000 | $36,000,000 | $176,000,000 |
Stock Options | Minimum | |||
Stock-Based Compensation | |||
Vesting period | 3 years | ||
Stock Options | Maximum | |||
Stock-Based Compensation | |||
Vesting period | 4 years | ||
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 (Detail 2) (Stock Options, USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Oct. 31, 2014 |
Information about options outstanding, by exercise price range | |
Options Outstanding - Shares Outstanding | 57,853 |
Options Outstanding - Weighted Average Remaining Contractual Term | 4 years 3 months 18 days |
Options Outstanding - Weighted Average Exercise Price (in dollars per share) | $27 |
Options Exercisable - Shares Exercisable | 30,459 |
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 | 324 |
Options Outstanding - Weighted Average Remaining Contractual Term | 3 years 8 months 12 days |
Options Outstanding - Weighted Average Exercise Price (in dollars per share) | $7 |
Options Exercisable - Shares Exercisable | 323 |
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 | 18,387 |
Options Outstanding - Weighted Average Remaining Contractual Term | 5 years 9 months 18 days |
Options Outstanding - Weighted Average Exercise Price (in dollars per share) | $14 |
Options Exercisable - Shares Exercisable | 3,620 |
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 | 21,077 |
Options Outstanding - Weighted Average Remaining Contractual Term | 5 years 9 months 18 days |
Options Outstanding - Weighted Average Exercise Price (in dollars per share) | $26 |
Options Exercisable - Shares Exercisable | 9,358 |
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 | 2,502 |
Options Outstanding - Weighted Average Remaining Contractual Term | 3 years 6 months |
Options Outstanding - Weighted Average Exercise Price (in dollars per share) | $36 |
Options Exercisable - Shares Exercisable | 1,628 |
Options Exercisable - Weighted-Average Exercise Price (in dollars per share) | $36 |
$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 | 14,910 |
Options Outstanding - Weighted Average Remaining Contractual Term | 4 months 24 days |
Options Outstanding - Weighted Average Exercise Price (in dollars per share) | $43 |
Options Exercisable - Shares Exercisable | 14,877 |
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 | 511 |
Options Outstanding - Weighted Average Remaining Contractual Term | 2 years 3 months 18 days |
Options Outstanding - Weighted Average Exercise Price (in dollars per share) | $52 |
Options Exercisable - Shares Exercisable | 511 |
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 | 142 |
Options Outstanding - Weighted Average Remaining Contractual Term | 1 month 6 days |
Options Outstanding - Weighted Average Exercise Price (in dollars per share) | $71 |
Options Exercisable - Shares Exercisable | 142 |
Options Exercisable - Weighted-Average Exercise Price (in dollars per share) | $71 |
StockBased_Compensation_Detail2
Stock-Based Compensation (Details 3) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Share-based compensation | |||
Stock-based compensation expense, net of tax | $381,000 | $342,000 | $438,000 |
Shares reserved | |||
Shares available for future grant at the end of the period | 246,852 | 300,984 | 152,837 |
Shares reserved for future issuance under all stock-related benefit plans at the end of the period | 344,848 | 417,642 | 270,498 |
Employee Stock Purchase Plan | |||
Share-based compensation | |||
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 |
Taxes_on_Earnings_Details
Taxes on Earnings (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Domestic and foreign components of earnings (loss) before taxes | |||
U.S. | $2,565 | $2,618 | ($3,192) |
Non-U.S. | 3,992 | 3,892 | -8,741 |
Earnings (loss) before taxes | 6,557 | 6,510 | -11,933 |
U.S. federal taxes: | |||
Current | 381 | 475 | 330 |
Deferred | 210 | -666 | 81 |
Non-U.S. taxes: | |||
Current | 984 | 1,275 | 1,139 |
Deferred | -42 | 89 | -787 |
State taxes: | |||
Current | 212 | 57 | -41 |
Deferred | -201 | 167 | -5 |
Provision for (benefit from) taxes on earnings | $1,544 | $1,397 | $717 |
Taxes_on_Earnings_Detail_2
Taxes on Earnings (Detail 2) | 12 Months Ended | ||
Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 | |
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) | 0.40% | 0.10% | 0.50% |
Lower rates in other jurisdictions, net (as a percent) | -12.90% | -24.50% | 13.90% |
Valuation allowance (as a percent) | 1.70% | 3.80% | -14.00% |
Nondeductible goodwill (as a percent) | -40.30% | ||
Uncertain tax positions | -2.30% | 4.10% | -1.40% |
Other, net (as a percent) | 1.60% | 3.00% | 0.30% |
Effective tax rate (as a percent) | 23.50% | 21.50% | -6.00% |
Taxes_on_Earnings_Detail_3
Taxes on Earnings (Detail 3) (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Income Taxes | |||
Income tax charge to record valuation allowances | $214 | $1,300 | |
Amount of charges recorded for various foreign valuation allowances | 297 | ||
Income tax charge (benefits) for adjustments to prior year foreign income tax accruals, settlement of tax audit matters, and miscellaneous other items | -146 | -26 | |
Income tax charges for adjustments to uncertain tax positions and the settlement of tax audit matters | 406 | ||
Tax benefit from the retroactive research and development credit | -50 | ||
Tax expense (benefit) associated with miscellaneous prior period items | 47 | ||
Income tax charges related to items unique to the year | 53 | 471 | |
Income tax benefits, reduced rates for subsidiaries in certain countries | $1,200 | $827 | $900 |
Income tax benefits, reduced rates for subsidiaries in certain countries (in dollars per share) | $0.61 | $0.42 | $0.46 |
Taxes_on_Earnings_Detail_4
Taxes on Earnings (Detail 4) (USD $) | 12 Months Ended | 15 Months Ended | 46 Months Ended | ||
Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2009 | Aug. 26, 2008 | |
item | |||||
Reconciliation of unrecognized tax benefits | |||||
Balance at beginning of year | $3,484,000,000 | $2,573,000,000 | $2,118,000,000 | ||
Increases: | |||||
For current year's tax positions | 304,000,000 | 290,000,000 | 209,000,000 | ||
For prior years' tax positions | 593,000,000 | 997,000,000 | 651,000,000 | ||
Decreases: | |||||
For prior years' tax positions | -125,000,000 | -146,000,000 | -321,000,000 | ||
Statute of limitations expiration | -46,000,000 | -11,000,000 | -1,000,000 | ||
Settlements with taxing authorities | -82,000,000 | -219,000,000 | -83,000,000 | ||
Balance at end of year | 4,128,000,000 | 3,484,000,000 | 2,573,000,000 | ||
Unrecognized tax benefits that would affect effective tax rate if realized | 2,200,000,000 | 1,900,000,000 | 1,400,000,000 | ||
Accrued income tax for interest and penalties | 254,000,000 | 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 | 1,400,000,000 | ||||
Number of other countries in which HP is subject to income taxes | 105 | ||||
Income tax examination, reduction in tax benefits | 445,000,000 | ||||
Income tax examination, additional tax payable | 62,000,000 | 274,000,000 | |||
Income tax examination, proposed assessment amount | 680,000,000 | ||||
Undistributed earnings from non-U.S. operations | $42,900,000,000 |
Taxes_on_Earnings_Detail_5
Taxes on Earnings (Detail 5) (USD $) | Oct. 31, 2014 | Oct. 31, 2013 |
In Millions, unless otherwise specified | ||
Deferred Tax Assets | ||
Loss carryforwards | $9,476 | $9,807 |
Credit carryforwards | 2,377 | 4,261 |
Inventory valuation | 152 | 128 |
Intercompany transactions - profit in inventory | 136 | 125 |
Intercompany transactions - excluding inventory | 4,403 | 1,923 |
Fixed assets | 383 | 289 |
Warranty | 616 | 622 |
Employee and retiree benefits | 2,790 | 2,350 |
Accounts receivable allowance | 107 | 185 |
Intangible assets | 212 | 224 |
Restructuring | 354 | 340 |
Deferred revenue | 1,143 | 1,119 |
Other | 1,573 | 1,443 |
Gross deferred tax assets | 23,722 | 22,816 |
Valuation allowance | -11,915 | -11,390 |
Net deferred tax assets | 11,807 | 11,426 |
Deferred Tax Liabilities | ||
Unremitted earnings of foreign subsidiaries | 7,828 | 7,469 |
Inventory valuation | 8 | 13 |
Fixed assets | 74 | 72 |
Employee and retiree benefits | 57 | 11 |
Accounts receivable allowance | 1 | 1 |
Intangible assets | 596 | 886 |
Deferred revenue | 12 | 19 |
Other | 1,145 | 759 |
Gross deferred tax liabilities | 9,721 | 9,230 |
Net deferred tax liabilities | $9,721 | $9,230 |
Taxes_on_Earning_Details_6
Taxes on Earning (Details 6) (USD $) | 12 Months Ended | ||
Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 | |
Current and long-term deferred tax assets and deferred tax liabilities | |||
Current deferred tax assets | $2,754,000,000 | $3,893,000,000 | |
Current deferred tax liabilities | -284,000,000 | -375,000,000 | |
Long-term deferred tax assets | 740,000,000 | 1,346,000,000 | |
Long-term deferred tax liabilities | -1,124,000,000 | -2,668,000,000 | |
Net deferred tax assets net of deferred tax liabilities | 2,086,000,000 | 2,196,000,000 | |
Tax deficiency from employee stock plans | 43,000,000 | 149,000,000 | 175,000,000 |
Recognition of net long term deferred tax assets from intercompany licensing arrangement | 1,300,000,000 | ||
Advance royalty proceeds received from intercompany licensing arrangements | 10,400,000,000 | ||
Royalty to be earned in the fiscal years 2015 through 2029 | 9,900,000,000 | ||
Federal | |||
Operating loss carryforwards | |||
Operating loss carryforwards | 858,000,000 | ||
State | |||
Operating loss carryforwards | |||
Operating loss carryforwards | 4,200,000,000 | ||
Foreign | |||
Operating loss carryforwards | |||
Operating loss carryforwards | $29,700,000,000 |
Taxes_on_Earnings_Detail_7
Taxes on Earnings (Detail 7) (USD $) | Oct. 31, 2014 | Oct. 31, 2013 |
In Millions, unless otherwise specified | ||
Income Taxes | ||
Capital loss carryforwards | $272 | |
Valuation allowance | ||
Valuation allowance for deferred tax assets | 11,915 | 11,390 |
Operating loss carryforwards. | State | ||
Valuation allowance | ||
Valuation allowance for deferred tax assets | 133 | |
Operating loss carryforwards. | Foreign | ||
Valuation allowance | ||
Valuation allowance for deferred tax assets | 8,700 | |
Capital loss carryforwards | ||
Valuation allowance | ||
Valuation allowance for deferred tax assets | $104 |
Tax_on_Earnings_Detail_8
Tax on Earnings (Detail 8) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Carryforward | |||
U.S. foreign tax credits | $1,321 | ||
U.S. research and development and other credits | 662 | ||
Tax credits in state and foreign jurisdictions | 394 | ||
Deferred tax assets for various tax credit carryforwards | 2,377 | 4,261 | |
Valuation Allowance | |||
U.S. foreign tax credits | 47 | ||
Tax credits in state and foreign jurisdictions | 204 | ||
Balance at end of year | 251 | ||
Valuation allowance balance | |||
Balance at beginning of year | 11,390 | ||
Income tax expense | 1,544 | 1,397 | 717 |
Balance at end of year | 11,915 | 11,390 | |
Increase in valuation allowances | 525 | 1,200 | |
Deferred tax asset valuation allowance | |||
Valuation allowance balance | |||
Balance at beginning of year | 11,390 | 10,223 | 9,057 |
Income tax expense | 184 | 1,644 | 865 |
Other comprehensive income, currency translation and charges to other accounts | 341 | -477 | 301 |
Balance at end of year | $11,915 | $11,390 | $10,223 |
Balance_Sheet_Details_Detail
Balance Sheet Details (Detail) (USD $) | 12 Months Ended | |||
Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 | Apr. 30, 2014 | |
Accounts Receivable, Net | ||||
Accounts receivable, gross | $14,064,000,000 | $16,208,000,000 | ||
Allowance for doubtful accounts | -232,000,000 | -332,000,000 | -464,000,000 | |
Accounts receivable, net | 13,832,000,000 | 15,876,000,000 | ||
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||||
Balance at beginning of year | 332,000,000 | 464,000,000 | 470,000,000 | |
Provision for doubtful accounts | 25,000,000 | 23,000,000 | 100,000,000 | |
Deductions, net of recoveries | -125,000,000 | -155,000,000 | -106,000,000 | |
Balance at end of year | 232,000,000 | 332,000,000 | 464,000,000 | |
Additional maximum program capacity | 1,600,000,000 | |||
Trade receivables sold and cash received | ||||
Balance at beginning of period | 172,000,000 | 228,000,000 | 245,000,000 | |
Trade receivables sold | 9,627,000,000 | 4,241,000,000 | 3,510,000,000 | |
Cash receipts | -9,306,000,000 | -4,305,000,000 | -3,510,000,000 | |
Foreign currency and other | -34,000,000 | 8,000,000 | -17,000,000 | |
Balance at end of period | 459,000,000 | 172,000,000 | 228,000,000 | |
Non-recourse arrangements | ||||
Maximum program capacity | 1,083,000,000 | 764,000,000 | ||
Utilized capacity | -613,000,000 | -314,000,000 | ||
Available capacity | 470,000,000 | 450,000,000 | ||
Partial-recourse arrangement | ||||
Maximum program capacity | 1,877,000,000 | 631,000,000 | ||
Utilized capacity | -1,500,000,000 | -454,000,000 | ||
Available capacity | 377,000,000 | 177,000,000 | ||
Total arrangements | ||||
Maximum program capacity | 2,960,000,000 | 1,395,000,000 | ||
Utilized capacity | -2,113,000,000 | -768,000,000 | ||
Available capacity | 847,000,000 | 627,000,000 | ||
Amounts due from third parties for transferred trade receivables | ||||
Non recourse arrangements | 78,000,000 | 54,000,000 | ||
Partial recourse arrangements | 381,000,000 | 118,000,000 | ||
Total arrangements | 459,000,000 | 172,000,000 | 228,000,000 | |
Inventory | ||||
Finished goods | 3,973,000,000 | 3,847,000,000 | ||
Purchased parts and fabricated assemblies | 2,442,000,000 | 2,199,000,000 | ||
Inventory, net | 6,415,000,000 | 6,046,000,000 | ||
Other Current Assets | ||||
Deferred tax assets - short-term | 2,754,000,000 | 3,893,000,000 | ||
Value-added taxes receivable | 2,169,000,000 | 2,425,000,000 | ||
Supplier and other receivables | 2,378,000,000 | 2,579,000,000 | ||
Prepaid and other current assets | 4,518,000,000 | 4,238,000,000 | ||
Other current assets, total | 11,819,000,000 | 13,135,000,000 | ||
Long-Term Financing Receivables and Other Assets | ||||
Financing receivables, net | 3,613,000,000 | 3,878,000,000 | ||
Deferred tax assets-long-term | 740,000,000 | 1,346,000,000 | ||
Deferred costs-long-term | 755,000,000 | 999,000,000 | ||
Other | 3,346,000,000 | 3,333,000,000 | ||
Long-Term Financing Receivables and Other Assets, total | 8,454,000,000 | 9,556,000,000 | ||
Other Accrued Liabilities | ||||
Accrued taxes- other | 2,269,000,000 | 2,703,000,000 | ||
Warranty | 1,325,000,000 | 1,390,000,000 | ||
Sales and marketing programs | 2,986,000,000 | 2,823,000,000 | ||
Other | 5,499,000,000 | 5,590,000,000 | ||
Other Accrued Liabilities, total | 12,079,000,000 | 12,506,000,000 | ||
Other Liabilities | ||||
Pension, post-retirement, and post-employment liabilities | 6,379,000,000 | 5,098,000,000 | ||
Deferred revenue-long term | 3,931,000,000 | 3,907,000,000 | ||
Deferred tax liability - long-term | 1,124,000,000 | 2,668,000,000 | ||
Tax liability- long-term | 2,861,000,000 | 2,213,000,000 | ||
Other long-term liabilities | 2,010,000,000 | 2,005,000,000 | ||
Other Liabilities, total | $16,305,000,000 | $15,891,000,000 |
Balance_Sheet_Details_Detail_2
Balance Sheet Details (Detail 2) (USD $) | 12 Months Ended | ||
Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 | |
Property, Plant and Equipment, Net | |||
Property, plant and equipment, gross | $26,252,000,000 | $26,133,000,000 | |
Accumulated depreciation | -14,912,000,000 | -14,670,000,000 | |
Property, plant and equipment, net | 11,340,000,000 | 11,463,000,000 | |
Depreciation expense | 3,300,000,000 | 3,200,000,000 | 3,300,000,000 |
Purchase of property, plant and equipment | 3,900,000,000 | ||
Sale and retirement of gross Property, Plant and Equipment | 3,500,000,000 | ||
Accumulated depreciation on sale and retirement of property, plant and equipment | 2,900,000,000 | ||
Land | |||
Property, Plant and Equipment, Net | |||
Property, plant and equipment, gross | 540,000,000 | 626,000,000 | |
Buildings and leasehold improvements | |||
Property, Plant and Equipment, Net | |||
Property, plant and equipment, gross | 9,048,000,000 | 8,942,000,000 | |
Machinery and equipment | |||
Property, Plant and Equipment, Net | |||
Property, plant and equipment, gross | $16,664,000,000 | $16,565,000,000 |
Financing_Receivables_and_Oper2
Financing Receivables and Operating Leases (Detail) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
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 | $6,982 | $7,505 | ||
Unguaranteed residual value | 235 | 252 | ||
Unearned income | -547 | -604 | ||
Financing receivables, gross | 6,670 | 7,153 | ||
Allowance for doubtful accounts | -111 | -131 | -149 | -130 |
Financing receivables, net | 6,559 | 7,022 | ||
Less: current portion | -2,946 | -3,144 | ||
Amounts due after one year, net | 3,613 | 3,878 | ||
Scheduled maturities of minimum lease payments receivable: | ||||
2015 | 3,220 | |||
2016 | 1,959 | |||
2017 | 1,112 | |||
2018 | 483 | |||
2019 | 174 | |||
Thereafter | 34 | |||
Total | $6,982 | $7,505 |
Financing_Receivables_and_Oper3
Financing Receivables and Operating Leases (Detail 2) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Gross financing receivables | |||
Net Investment | $6,670 | $7,153 | |
Period past due, after which a write-off or specific reserve is created | 180 days | ||
Allowance for doubtful accounts | |||
Balance at beginning of year | 131 | 149 | 130 |
Provision for doubtful accounts | 30 | 38 | 42 |
Deductions, net of recoveries | -50 | -56 | -23 |
Balance at end of period | 111 | 131 | 149 |
Gross financing receivables collectively evaluated for loss | 6,378 | 6,773 | |
Gross financing receivables individually evaluated for loss | 292 | 380 | |
Allowance for financing receivables collectively evaluated for loss | 92 | 95 | |
Allowance for financing receivables individually evaluated for loss | 19 | 36 | |
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 | 243 | 217 | |
Past due 31-60 days | 46 | 50 | |
Past due 61-90 days | 12 | 15 | |
Past due >90 days | 49 | 46 | |
Unbilled sales-type and direct-financing lease receivables | 6,320 | 6,825 | |
Gross financing receivables on non-accrual status | 130 | 199 | |
Gross financing receivables 90 days past due and still accruing interest | 162 | 181 | |
Operating lease assets | |||
Equipment leased to customers | 3,977 | 3,822 | |
Accumulated depreciation | -1,382 | -1,452 | |
Operating lease assets, net | 2,595 | 2,370 | |
Minimum future rentals on non-cancelable operating leases: | |||
2015 | 1,487 | ||
2016 | 958 | ||
2017 | 467 | ||
2018 | 156 | ||
2019 | 50 | ||
Thereafter | 6 | ||
Total | 3,124 | ||
Low Risk | |||
Gross financing receivables | |||
Net Investment | 3,536 | 3,948 | |
Moderate Risk | |||
Gross financing receivables | |||
Net Investment | 3,022 | 3,084 | |
High Risk | |||
Gross financing receivables | |||
Net Investment | $112 | $121 |
Acquisitions_Goodwill_and_Inta2
Acquisitions, Goodwill and Intangible Assets (Details) (USD $) | 12 Months Ended | 3 Months Ended | ||||
Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 | Jan. 31, 2014 | Aug. 01, 2014 | Aug. 01, 2012 | |
item | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | ||||||
Goodwill | $31,139,000,000 | $31,124,000,000 | $31,069,000,000 | |||
Goodwill | ||||||
Balance at the beginning of year | 31,124,000,000 | 31,069,000,000 | 31,124,000,000 | |||
Goodwill acquired during the period | 12,000,000 | 112,000,000 | ||||
Goodwill adjustments | 3,000,000 | -57,000,000 | ||||
Balance at the end of year | 31,139,000,000 | 31,124,000,000 | 31,069,000,000 | |||
Finite-lived Intangible Assets, Accumulated Impairment Losses | -4,300,000,000 | |||||
Impairment loss | 0 | 0 | 5,700,000,000 | |||
Accumulated impairment loss | 14,500,000,000 | |||||
Impairment of goodwill and intangible assets | 18,035,000,000 | |||||
Number of new reportable units | 2 | |||||
Acquisitions | ||||||
Goodwill | ||||||
Number of acquisitions | 2 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | ||||||
Total purchase price | 55,000,000 | |||||
Goodwill | 12,000,000 | |||||
Intangible assets | 25,000,000 | |||||
Goodwill | ||||||
Balance at the end of year | 12,000,000 | |||||
Digital Risk LLC | MphasiS | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | ||||||
Total purchase price | 174,000,000 | |||||
Goodwill | 112,000,000 | |||||
Intangible assets | 48,000,000 | |||||
Goodwill | ||||||
Balance at the end of year | 112,000,000 | |||||
Autonomy | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | ||||||
Goodwill | 1,200,000,000 | |||||
Goodwill | ||||||
Balance at the end of year | 1,200,000,000 | |||||
Finite-lived Intangible Assets, Accumulated Impairment Losses | -3,100,000,000 | |||||
Impairment of goodwill and intangible assets | 8,800,000,000 | |||||
Personal Systems | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | ||||||
Goodwill | 2,588,000,000 | 2,588,000,000 | 2,588,000,000 | |||
Goodwill | ||||||
Balance at the end of year | 2,588,000,000 | 2,588,000,000 | 2,588,000,000 | |||
Printing | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | ||||||
Goodwill | 2,591,000,000 | 2,591,000,000 | 2,591,000,000 | |||
Goodwill | ||||||
Balance at the end of year | 2,591,000,000 | 2,591,000,000 | 2,591,000,000 | |||
Enterprise Group | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | ||||||
Goodwill | 16,867,000,000 | 16,864,000,000 | ||||
Goodwill | ||||||
Balance at the beginning of year | 16,864,000,000 | 16,825,000,000 | 16,864,000,000 | |||
Goodwill adjustments | 3,000,000 | 39,000,000 | ||||
Balance at the end of year | 16,867,000,000 | 16,864,000,000 | ||||
Enterprise Services segment | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | ||||||
Goodwill | 97,000,000 | 97,000,000 | ||||
Goodwill | ||||||
Goodwill acquired during the period | 112,000,000 | |||||
Goodwill adjustments | -15,000,000 | |||||
Balance at the end of year | 97,000,000 | 97,000,000 | ||||
Accumulated impairment loss | 8,000,000,000 | 0 | ||||
Software | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | ||||||
Goodwill | 8,852,000,000 | 8,840,000,000 | 8,921,000,000 | |||
Goodwill | ||||||
Balance at the beginning of year | 8,840,000,000 | 8,921,000,000 | 8,840,000,000 | |||
Goodwill acquired during the period | 12,000,000 | |||||
Goodwill adjustments | -81,000,000 | |||||
Balance at the end of year | 8,852,000,000 | 8,840,000,000 | 8,921,000,000 | |||
Accumulated impairment loss | 5,700,000,000 | |||||
Goodwill transferred | 22,000,000 | |||||
Number of reporting units within Software segment | 2 | |||||
Software | Autonomy Goodwill and Intangibles | ||||||
Goodwill | ||||||
Impairment of goodwill and intangible assets | 8,800,000,000 | |||||
HP Financial Services | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | ||||||
Goodwill | 144,000,000 | 144,000,000 | 144,000,000 | |||
Goodwill | ||||||
Balance at the end of year | 144,000,000 | 144,000,000 | 144,000,000 | |||
Corporate Investments | Autonomy | ||||||
Goodwill | ||||||
Accumulated impairment loss | 800,000,000 | |||||
Other reporting units | ||||||
Goodwill | ||||||
Accumulated impairment loss | 0 | 0 | ||||
Printing Spare And Replacement Parts [Member] | Printing | ||||||
Goodwill | ||||||
Goodwill transferred | 126,000,000 | |||||
Personal Systems Spare And Replacement Parts [Member] | Personal Systems | ||||||
Goodwill | ||||||
Goodwill transferred | 48,000,000 | |||||
Personal Systems Trade And Warranty Support [Member] | Personal Systems | ||||||
Goodwill | ||||||
Goodwill transferred | $42,000,000 |
Acquisitions_Goodwill_and_Inta3
Acquisitions, Goodwill and Intangible Assets (Details 2) (USD $) | 12 Months Ended | 3 Months Ended | ||
Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 | Jul. 31, 2012 | |
Intangible assets | ||||
Amortizable intangible assets, accumulated amortization | ($4,790,000,000) | ($4,886,000,000) | ||
Finite-lived Intangible Assets, Accumulated Impairment Losses | -4,330,000,000 | -4,330,000,000 | ||
Amortizable intangible assets, net | 2,128,000,000 | |||
Intangible assets, gross | 11,248,000,000 | 12,385,000,000 | ||
Intangible assets | 2,128,000,000 | 3,169,000,000 | ||
Amount of fully amortized intangible assets | 855,000,000 | 1,700,000,000 | ||
Intangible asset impairment charges | 4,300,000,000 | |||
Impairment of goodwill and intangible assets | 18,035,000,000 | |||
Autonomy | ||||
Intangible assets | ||||
Intangible asset impairment charges | 3,100,000,000 | |||
Impairment of goodwill and intangible assets | 8,800,000,000 | |||
In-process research and development | ||||
Intangible assets | ||||
Indefinite-lived intangible assets | 3,000,000 | |||
Customer contracts, customer lists and distribution agreements | ||||
Intangible assets | ||||
Amortizable intangible assets, gross | 5,289,000,000 | 5,321,000,000 | ||
Amortizable intangible assets, accumulated amortization | -3,228,000,000 | -2,709,000,000 | ||
Finite-lived Intangible Assets, Accumulated Impairment Losses | -856,000,000 | -856,000,000 | ||
Amortizable intangible assets, net | 1,205,000,000 | 1,756,000,000 | ||
Weighted-Average Useful Lives | 8 years | |||
Developed and core technology and patents | ||||
Intangible assets | ||||
Amortizable intangible assets, gross | 4,266,000,000 | 5,331,000,000 | ||
Amortizable intangible assets, accumulated amortization | -1,301,000,000 | -1,966,000,000 | ||
Finite-lived Intangible Assets, Accumulated Impairment Losses | -2,138,000,000 | -2,138,000,000 | ||
Amortizable intangible assets, net | 827,000,000 | 1,227,000,000 | ||
Weighted-Average Useful Lives | 8 years | |||
Trade name and trade marks | ||||
Intangible assets | ||||
Amortizable intangible assets, gross | 1,693,000,000 | 1,730,000,000 | ||
Amortizable intangible assets, accumulated amortization | -261,000,000 | -211,000,000 | ||
Intangible Assets, Accumulated Impairment Losses | -1,336,000,000 | -1,336,000,000 | ||
Amortizable intangible assets, net | 96,000,000 | 183,000,000 | ||
Weighted-Average Useful Lives | 7 years | |||
Compaq | ||||
Intangible assets | ||||
Intangible asset impairment charges | 1,200,000,000 | |||
Impairment of goodwill and intangible assets | $1,200,000,000 |
Acquisitions_Goodwill_and_Inta4
Acquisitions, Goodwill and Intangible Assets (Details 3) (USD $) | Oct. 31, 2014 |
In Millions, unless otherwise specified | |
Estimated future amortization expense related to finite-lived purchased intangible assets | |
2015 | $872 |
2016 | 653 |
2017 | 244 |
2018 | 147 |
2019 | 110 |
Thereafter | 102 |
Amortizable intangible assets, net | $2,128 |
Fair_Value_Details
Fair Value (Details) (USD $) | 12 Months Ended | ||
Oct. 31, 2014 | Oct. 31, 2012 | Oct. 31, 2013 | |
Financial assets and liabilities measured at fair value on a recurring basis | |||
Transfers between the levels within the fair value hierarchy | $0 | ||
Impairment of goodwill and intangible assets | 18,035,000,000 | ||
Fair Value and Carrying Value of Debt | |||
Fair value, short- and long-term debt | 19,900,000,000 | 22,700,000,000 | |
Carrying value, short- and long-term debt | 19,500,000,000 | 22,600,000,000 | |
Autonomy | |||
Financial assets and liabilities measured at fair value on a recurring basis | |||
Impairment of goodwill and intangible assets | 8,800,000,000 | ||
Compaq | |||
Financial assets and liabilities measured at fair value on a recurring basis | |||
Intangible asset impairment charge | 1,200,000,000 | ||
Enterprise Services | |||
Financial assets and liabilities measured at fair value on a recurring basis | |||
Impairment of goodwill and intangible assets | 8,000,000,000 | ||
Fair Value Measured Using Level 3 | Compaq | Minimum | Autonomy | |||
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 | |||
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 | 9,880,000,000 | 6,838,000,000 | |
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 | 9,857,000,000 | 6,819,000,000 | |
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 | 14,000,000 | 10,000,000 | |
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 | 9,000,000 | |
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 | 4,456,000,000 | 3,377,000,000 | |
Total Liabilities, measured at fair value on a recurring basis | 403,000,000 | 654,000,000 | |
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 | 2,865,000,000 | 2,221,000,000 | |
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 | 244,000,000 | 313,000,000 | |
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 | 5,000,000 | |
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 | 367,000,000 | 387,000,000 | |
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 | 1,000,000 | 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 | 105,000,000 | 156,000,000 | |
Total Liabilities, measured at fair value on a recurring basis | 55,000,000 | 107,000,000 | |
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 | 862,000,000 | 284,000,000 | |
Total Liabilities, measured at fair value on a recurring basis | 348,000,000 | 547,000,000 | |
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 | 7,000,000 | 9,000,000 | |
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 | 52,000,000 | 50,000,000 | |
Total Liabilities, measured at fair value on a recurring basis | 2,000,000 | 2,000,000 | |
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 | 46,000,000 | 47,000,000 | |
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 | 6,000,000 | 3,000,000 | |
Total Liabilities, measured at fair value on a recurring basis | 2,000,000 | 2,000,000 | |
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 | 14,388,000,000 | 10,265,000,000 | |
Total Liabilities, measured at fair value on a recurring basis | 405,000,000 | 656,000,000 | |
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 | 2,865,000,000 | 2,221,000,000 | |
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 | 9,857,000,000 | 6,819,000,000 | |
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 | 244,000,000 | 313,000,000 | |
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 | 19,000,000 | 15,000,000 | |
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 | 376,000,000 | 396,000,000 | |
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 | 47,000,000 | 49,000,000 | |
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 | 105,000,000 | 156,000,000 | |
Total Liabilities, measured at fair value on a recurring basis | 55,000,000 | 107,000,000 | |
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 | 868,000,000 | 287,000,000 | |
Total Liabilities, measured at fair value on a recurring basis | 350,000,000 | 549,000,000 | |
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 | $7,000,000 | $9,000,000 |
Financial_Instruments_Details
Financial Instruments (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Cash equivalents and available-for-sale investments | |||
Available-for-sale securities, Cost | $634 | $693 | |
Available-for-sale securities, Gross Unrealized Gain | 97 | 92 | |
Available-for-sale securities, Gross Unrealized Loss | -14 | -15 | |
Available-for-sale securities, Estimated Fair Value | 717 | 770 | |
Interest income | 136 | 148 | 155 |
Cost | |||
Cash equivalents and available-for-sale investments | |||
Cash equivalents | 12,687 | 9,039 | |
Total cash equivalents and available-for-sale investments | 13,321 | 9,732 | |
Estimate of Fair Value, Fair Value Disclosure | |||
Cash equivalents and available-for-sale investments | |||
Cash equivalents | 12,687 | 9,039 | |
Total cash equivalents and available-for-sale investments | 13,404 | 9,809 | |
Debt securities: | |||
Cash equivalents and available-for-sale investments | |||
Available-for-sale securities, Gross Unrealized Gain | 90 | 86 | |
Available-for-sale securities, Gross Unrealized Loss | -14 | -15 | |
Gross unrealized loss of debt security in a continuous loss position for more than 12 months | 14 | 15 | |
Debt securities: | Cost | |||
Cash equivalents and available-for-sale investments | |||
Available-for-sale securities, Cost | 492 | 388 | |
Debt securities: | Estimate of Fair Value, Fair Value Disclosure | |||
Cash equivalents and available-for-sale investments | |||
Available-for-sale securities, Estimated Fair Value | 568 | 459 | |
Time deposits | Cost | |||
Cash equivalents and available-for-sale investments | |||
Available-for-sale securities, Cost | 145 | 14 | |
Time deposits | Estimate of Fair Value, Fair Value Disclosure | |||
Cash equivalents and available-for-sale investments | |||
Available-for-sale securities, Estimated Fair Value | 145 | 14 | |
Foreign bonds. | |||
Cash equivalents and available-for-sale investments | |||
Available-for-sale securities, Gross Unrealized Gain | 90 | 86 | |
Foreign bonds. | Cost | |||
Cash equivalents and available-for-sale investments | |||
Available-for-sale securities, Cost | 286 | 310 | |
Foreign bonds. | Estimate of Fair Value, Fair Value Disclosure | |||
Cash equivalents and available-for-sale investments | |||
Available-for-sale securities, Estimated Fair Value | 376 | 396 | |
Other Debt Securities | |||
Cash equivalents and available-for-sale investments | |||
Available-for-sale securities, Gross Unrealized Loss | -14 | -15 | |
Other Debt Securities | Cost | |||
Cash equivalents and available-for-sale investments | |||
Available-for-sale securities, Cost | 61 | 64 | |
Other Debt Securities | Estimate of Fair Value, Fair Value Disclosure | |||
Cash equivalents and available-for-sale investments | |||
Available-for-sale securities, Estimated Fair Value | 47 | 49 | |
Marketable equity securities | |||
Cash equivalents and available-for-sale investments | |||
Available-for-sale securities, Gross Unrealized Gain | 7 | 6 | |
Marketable equity securities | Cost | |||
Cash equivalents and available-for-sale investments | |||
Available-for-sale securities, Cost | 142 | 305 | |
Marketable equity securities | Estimate of Fair Value, Fair Value Disclosure | |||
Cash equivalents and available-for-sale investments | |||
Available-for-sale securities, Estimated Fair Value | 149 | 311 | |
Mutual funds | Cost | |||
Cash equivalents and available-for-sale investments | |||
Available-for-sale securities, Cost | 134 | 300 | |
Mutual funds | Estimate of Fair Value, Fair Value Disclosure | |||
Cash equivalents and available-for-sale investments | |||
Available-for-sale securities, Estimated Fair Value | 134 | 300 | |
Equity securities in public companies | |||
Cash equivalents and available-for-sale investments | |||
Available-for-sale securities, Gross Unrealized Gain | 7 | 6 | |
Equity securities in public companies | Cost | |||
Cash equivalents and available-for-sale investments | |||
Available-for-sale securities, Cost | 8 | 5 | |
Equity securities in public companies | Estimate of Fair Value, Fair Value Disclosure | |||
Cash equivalents and available-for-sale investments | |||
Available-for-sale securities, Estimated Fair Value | 15 | 11 | |
Time deposits | Cost | |||
Cash equivalents and available-for-sale investments | |||
Cash equivalents | 2,720 | 2,207 | |
Time deposits | Estimate of Fair Value, Fair Value Disclosure | |||
Cash equivalents and available-for-sale investments | |||
Cash equivalents | 2,720 | 2,207 | |
Money market funds | Cost | |||
Cash equivalents and available-for-sale investments | |||
Cash equivalents | 9,857 | 6,819 | |
Money market funds | Estimate of Fair Value, Fair Value Disclosure | |||
Cash equivalents and available-for-sale investments | |||
Cash equivalents | 9,857 | 6,819 | |
Mutual funds | Cost | |||
Cash equivalents and available-for-sale investments | |||
Cash equivalents | 110 | 13 | |
Mutual funds | Estimate of Fair Value, Fair Value Disclosure | |||
Cash equivalents and available-for-sale investments | |||
Cash equivalents | $110 | $13 |
Financial_Instruments_Detail_2
Financial Instruments (Detail 2) (USD $) | Oct. 31, 2014 | Oct. 31, 2013 |
In Millions, unless otherwise specified | ||
Cost | ||
Due in one year | $129 | |
Due in one to five years | 3 | |
Due in more than five years | 360 | |
Total | 492 | |
Fair Value | ||
Due in one year | 129 | |
Due in one to five years | 3 | |
Due in more than five years | 436 | |
Total | 568 | |
Investment Holdings | ||
Investment amount | 717 | 770 |
Equity securities in privately held companies | Long-term Financing Receivables and Other Assets | ||
Investment Holdings | ||
Investment amount | $97 | $50 |
Financial_Instruments_Detail_3
Financial Instruments (Detail 3) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 |
Financial Instruments | ||
Period within which the funds held as collateral and posted as collateral are transferred from or to counterparties | 2 days | |
Derivative, Collateral, Obligation to Return Cash | $452 | $30 |
Derivative, Collateral,Right to Reclaim Cash | 29 | 283 |
Derivatives, Fair Value | ||
Total derivatives, gross notional amount | 54,693 | 51,875 |
Derivative asset, fair value | 980 | 452 |
Derivative liability, fair value | 405 | 656 |
Collateralized arrangements in net liability position | 38 | 207 |
Other Current Assets | ||
Derivatives, Fair Value | ||
Derivative asset, fair value | 674 | 220 |
Long-term Financing Receivables and Other Assets | ||
Derivatives, Fair Value | ||
Derivative asset, fair value | 306 | 232 |
Other Accrued Liabilities | ||
Derivatives, Fair Value | ||
Derivative liability, fair value | 223 | 437 |
Long-Term Other Liabilities | ||
Derivatives, Fair Value | ||
Derivative liability, fair value | 182 | 219 |
Cash flow hedges | ||
Derivatives, Fair Value | ||
Maturity period of foreign currency cash flow hedges | 12 months | |
Cash flow hedges | Minimum | ||
Derivatives, Fair Value | ||
Duration of lease term for which lease-related forward contracts and intercompany lease loan forward contracts can be extended | 2 years | |
Cash flow hedges | Maximum | ||
Derivatives, Fair Value | ||
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 | 32,948 | 35,483 |
Derivatives designated as hedging instruments | Other Current Assets | ||
Derivatives, Fair Value | ||
Derivative asset, fair value | 586 | 140 |
Derivatives designated as hedging instruments | Long-term Financing Receivables and Other Assets | ||
Derivatives, Fair Value | ||
Derivative asset, fair value | 273 | 205 |
Derivatives designated as hedging instruments | Other Accrued Liabilities | ||
Derivatives, Fair Value | ||
Derivative liability, fair value | 141 | 361 |
Derivatives designated as hedging instruments | Long-Term Other Liabilities | ||
Derivatives, Fair Value | ||
Derivative liability, fair value | 157 | 199 |
Derivatives designated as hedging instruments | Fair value hedges | Interest rate contracts | ||
Derivatives, Fair Value | ||
Total derivatives, gross notional amount | 10,800 | 11,100 |
Derivatives designated as hedging instruments | Fair value hedges | Interest rate contracts | Other Current Assets | ||
Derivatives, Fair Value | ||
Derivative asset, fair value | 3 | 31 |
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 | 102 | 125 |
Derivatives designated as hedging instruments | Fair value hedges | Interest rate contracts | Long-Term Other Liabilities | ||
Derivatives, Fair Value | ||
Derivative liability, fair value | 55 | 107 |
Derivatives designated as hedging instruments | Cash flow hedges | Foreign exchange contracts | ||
Derivatives, Fair Value | ||
Total derivatives, gross notional amount | 20,196 | 22,463 |
Derivatives designated as hedging instruments | Cash flow hedges | Foreign exchange contracts | Other Current Assets | ||
Derivatives, Fair Value | ||
Derivative asset, fair value | 539 | 79 |
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 | 124 | 40 |
Derivatives designated as hedging instruments | Cash flow hedges | Foreign exchange contracts | Other Accrued Liabilities | ||
Derivatives, Fair Value | ||
Derivative liability, fair value | 131 | 341 |
Derivatives designated as hedging instruments | Cash flow hedges | Foreign exchange contracts | Long-Term Other Liabilities | ||
Derivatives, Fair Value | ||
Derivative liability, fair value | 94 | 80 |
Derivatives designated as hedging instruments | Net investment hedges | Foreign exchange contracts | ||
Derivatives, Fair Value | ||
Total derivatives, gross notional amount | 1,952 | 1,920 |
Derivatives designated as hedging instruments | Net investment hedges | Foreign exchange contracts | Other Current Assets | ||
Derivatives, Fair Value | ||
Derivative asset, fair value | 44 | 30 |
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 | 47 | 40 |
Derivatives designated as hedging instruments | Net investment hedges | Foreign exchange contracts | Other Accrued Liabilities | ||
Derivatives, Fair Value | ||
Derivative liability, fair value | 10 | 20 |
Derivatives designated as hedging instruments | Net investment hedges | Foreign exchange contracts | Long-Term Other Liabilities | ||
Derivatives, Fair Value | ||
Derivative liability, fair value | 8 | 12 |
Derivatives not designated as hedging instruments | ||
Derivatives, Fair Value | ||
Total derivatives, gross notional amount | 21,745 | 16,392 |
Derivatives not designated as hedging instruments | Other Current Assets | ||
Derivatives, Fair Value | ||
Derivative asset, fair value | 88 | 80 |
Derivatives not designated as hedging instruments | Long-term Financing Receivables and Other Assets | ||
Derivatives, Fair Value | ||
Derivative asset, fair value | 33 | 27 |
Derivatives not designated as hedging instruments | Other Accrued Liabilities | ||
Derivatives, Fair Value | ||
Derivative liability, fair value | 82 | 76 |
Derivatives not designated as hedging instruments | Long-Term Other Liabilities | ||
Derivatives, Fair Value | ||
Derivative liability, fair value | 25 | 20 |
Derivatives not designated as hedging instruments | Foreign exchange contracts | ||
Derivatives, Fair Value | ||
Total derivatives, gross notional amount | 21,384 | 16,048 |
Derivatives not designated as hedging instruments | Foreign exchange contracts | Other Current Assets | ||
Derivatives, Fair Value | ||
Derivative asset, fair value | 82 | 72 |
Derivatives not designated as hedging instruments | Foreign exchange contracts | Long-term Financing Receivables and Other Assets | ||
Derivatives, Fair Value | ||
Derivative asset, fair value | 32 | 26 |
Derivatives not designated as hedging instruments | Foreign exchange contracts | Other Accrued Liabilities | ||
Derivatives, Fair Value | ||
Derivative liability, fair value | 82 | 76 |
Derivatives not designated as hedging instruments | Foreign exchange contracts | Long-Term Other Liabilities | ||
Derivatives, Fair Value | ||
Derivative liability, fair value | 25 | 20 |
Derivatives not designated as hedging instruments | Other derivatives | ||
Derivatives, Fair Value | ||
Total derivatives, gross notional amount | 361 | 344 |
Derivatives not designated as hedging instruments | Other derivatives | Other Current Assets | ||
Derivatives, Fair Value | ||
Derivative asset, fair value | 6 | 8 |
Derivatives not designated as hedging instruments | Other derivatives | Long-term Financing Receivables and Other Assets | ||
Derivatives, Fair Value | ||
Derivative asset, fair value | $1 | $1 |
Financial_Instruments_Details_
Financial Instruments (Details 4) (USD $) | Oct. 31, 2014 | Oct. 31, 2013 |
In Millions, unless otherwise specified | ||
Derivative assets | ||
Gross Amount Recognized | $980 | $452 |
Net Amount Presented | 980 | 452 |
Gross Amounts Not Offset | ||
Derivatives | 361 | 372 |
Financial Collateral | 452 | 30 |
Net Amount | 167 | 50 |
Derivative liabilities | ||
Gross Amount Recognized | 405 | 656 |
Net Amount Presented | 405 | 656 |
Gross Amounts Not Offset | ||
Derivatives | 361 | 372 |
Financial Collateral | 29 | 283 |
Net Amount | 15 | 1 |
Cash posted as collateral to counterparties through reuse | 29 | 30 |
Cash posted as collateral to counterparties in cash | $253 |
Financial_Instruments_Detail_5
Financial Instruments (Detail 5) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2014 | 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 | $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 | 56 | 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 | 1 | -270 | -130 |
(Loss) Gain recognized in Income on Related Hedged Item | -1 | 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 | 56 | 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) | 337 | -243 | 335 |
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | -151 | -106 | 399 |
Loss expected to be reclassified from Accumulated OCI into earnings in next 12 months | 185 | ||
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) | 593 | -53 | 415 |
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | -21 | 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) | -203 | -192 | -65 |
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | -71 | -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) | 7 | -19 | -7 |
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | -9 | 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) | -60 | 21 | -8 |
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | -50 | 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) | $57 | $38 | $37 |
Borrowings_Details
Borrowings (Details) (USD $) | Oct. 31, 2014 | Oct. 31, 2013 |
In Millions, unless otherwise specified | ||
Notes Payable and Short-Term Borrowings | ||
Current portion of long-term debt | $2,655 | $5,226 |
Amount outstanding | 3,486 | 5,979 |
Current portion of long-term debt, weighted average interest rate (as a percent) | 2.20% | 2.80% |
Commercial paper | ||
Notes Payable and Short-Term Borrowings | ||
Short term borrowings | 298 | 327 |
Weighted average interest rate (as a percent) | 0.50% | 0.40% |
Commercial paper | HP Financial Services | ||
Notes Payable and Short-Term Borrowings | ||
Short term borrowings | 298 | 327 |
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 | 533 | 426 |
Weighted average interest rate (as a percent) | 4.00% | 1.70% |
Obligation related to notes payable to banks, lines of credit, uncommitted line of credit and other debt | HP Financial Services | ||
Notes Payable and Short-Term Borrowings | ||
Short term borrowings | $404 | $368 |
Borrowings_Details_2
Borrowings (Details 2) (USD $) | 1 Months Ended | 12 Months Ended | 1 Months Ended | |||||||||||
31-May-11 | Oct. 31, 2014 | Oct. 31, 2013 | Sep. 30, 2011 | Jan. 31, 2014 | Feb. 28, 2007 | Mar. 31, 2008 | Dec. 31, 2008 | Feb. 28, 2009 | Sep. 30, 2010 | Dec. 31, 2010 | Dec. 31, 2011 | Mar. 31, 2012 | Oct. 31, 1999 | |
Long-term debt | ||||||||||||||
Total | $16,039,000,000 | $16,608,000,000 | ||||||||||||
Fair value adjustment related to hedged debt | 120,000,000 | 147,000,000 | ||||||||||||
Less: current portion | -2,655,000,000 | -5,226,000,000 | ||||||||||||
U.S. Dollar Global Notes | ||||||||||||||
Long-term debt | ||||||||||||||
Total | 17,837,000,000 | 20,684,000,000 | ||||||||||||
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 | 500,000,000 | 499,000,000 | ||||||||||||
Discount to par (as a percent) | 99.69% | 99.69% | 99.69% | |||||||||||
Interest rate (as a percent) | 5.40% | 5.40% | 5.40% | |||||||||||
Face amount of debt instrument | 500,000,000 | 500,000,000 | 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% | 99.93% | |||||||||||
Interest rate (as a percent) | 5.50% | 5.50% | 5.50% | |||||||||||
Face amount of debt instrument | 750,000,000 | 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%, paid March 2014 | ||||||||||||||
Long-term debt | ||||||||||||||
Total | 1,999,000,000 | |||||||||||||
Discount to par (as a percent) | 99.56% | 99.56% | 99.56% | |||||||||||
Interest rate (as a percent) | 6.13% | 6.13% | 6.13% | |||||||||||
Face amount of debt instrument | 2,000,000,000 | 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%, paid June 2014 | ||||||||||||||
Long-term debt | ||||||||||||||
Total | 1,500,000,000 | |||||||||||||
Discount to par (as a percent) | 99.99% | 99.99% | 99.99% | |||||||||||
Interest rate (as a percent) | 4.75% | 4.75% | 4.75% | |||||||||||
Face amount of debt instrument | 1,500,000,000 | 1,500,000,000 | 1,500,000,000 | |||||||||||
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% | 99.89% | |||||||||||
Interest rate (as a percent) | 2.13% | 2.13% | 2.13% | |||||||||||
Face amount of debt instrument | 1,100,000,000 | 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% | 99.91% | |||||||||||
Interest rate (as a percent) | 2.20% | 2.20% | 2.20% | |||||||||||
Face amount of debt instrument | 650,000,000 | 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 | 1,349,000,000 | ||||||||||||
Discount to par (as a percent) | 99.83% | 99.83% | 99.83% | |||||||||||
Interest rate (as a percent) | 3.75% | 3.75% | 3.75% | |||||||||||
Face amount of debt instrument | 1,350,000,000 | 1,350,000,000 | 1,350,000,000 | |||||||||||
2009 Shelf Registration Statement-$500 issued at par in May 2011 at three month USD LIBOR plus 0.4%, paid May 2014 | ||||||||||||||
Long-term debt | ||||||||||||||
Total | 500,000,000 | |||||||||||||
Face amount of debt instrument | 500,000,000 | 500,000,000 | 500,000,000 | |||||||||||
Spread on reference interest rate (as a percent) | 0.40% | 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%, paid May 2014 | ||||||||||||||
Long-term debt | ||||||||||||||
Total | 500,000,000 | |||||||||||||
Discount to par (as a percent) | 99.97% | 99.97% | 99.97% | |||||||||||
Interest rate (as a percent) | 1.55% | 1.55% | 1.55% | |||||||||||
Face amount of debt instrument | 500,000,000 | 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% | 99.96% | |||||||||||
Interest rate (as a percent) | 2.65% | 2.65% | 2.65% | |||||||||||
Face amount of debt instrument | 1,000,000,000 | 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% | 99.80% | |||||||||||
Interest rate (as a percent) | 4.30% | 4.30% | 4.30% | |||||||||||
Face amount of debt instrument | 1,250,000,000 | 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% | 99.98% | |||||||||||
Interest rate (as a percent) | 2.35% | 2.35% | 2.35% | |||||||||||
Face amount of debt instrument | 750,000,000 | 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% | 99.78% | |||||||||||
Interest rate (as a percent) | 3.00% | 3.00% | 3.00% | |||||||||||
Face amount of debt instrument | 1,300,000,000 | 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 | 999,000,000 | ||||||||||||
Discount to par (as a percent) | 99.82% | 99.82% | 99.82% | |||||||||||
Interest rate (as a percent) | 4.38% | 4.38% | 4.38% | |||||||||||
Face amount of debt instrument | 1,000,000,000 | 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 | 1,199,000,000 | 1,198,000,000 | ||||||||||||
Discount to par (as a percent) | 99.86% | 99.86% | 99.86% | |||||||||||
Interest rate (as a percent) | 6.00% | 6.00% | 6.00% | |||||||||||
Face amount of debt instrument | 1,200,000,000 | 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%, paid September 2014 | ||||||||||||||
Long-term debt | ||||||||||||||
Total | 350,000,000 | |||||||||||||
Face amount of debt instrument | 350,000,000 | 350,000,000 | 350,000,000 | |||||||||||
Spread on reference interest rate (as a percent) | 1.55% | 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%, paid December 2014 | ||||||||||||||
Long-term debt | ||||||||||||||
Total | 650,000,000 | 650,000,000 | ||||||||||||
Discount to par (as a percent) | 99.95% | 99.95% | 99.95% | |||||||||||
Interest rate (as a percent) | 2.63% | 2.63% | 2.63% | |||||||||||
Face amount of debt instrument | 650,000,000 | 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% | 99.79% | |||||||||||
Interest rate (as a percent) | 3.30% | 3.30% | 3.30% | |||||||||||
Face amount of debt instrument | 850,000,000 | 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% | 99.71% | |||||||||||
Interest rate (as a percent) | 4.65% | 4.65% | 4.65% | |||||||||||
Face amount of debt instrument | 1,500,000,000 | 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% | 99.99% | |||||||||||
Interest rate (as a percent) | 2.60% | 2.60% | 2.60% | |||||||||||
Face amount of debt instrument | 1,500,000,000 | 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% | 99.77% | |||||||||||
Interest rate (as a percent) | 4.05% | 4.05% | 4.05% | |||||||||||
Face amount of debt instrument | 500,000,000 | 500,000,000 | 500,000,000 | |||||||||||
2012 Shelf Registration Statement-$750 issued at par in January 2014 at three-month USD LIBOR plus 0.94%, due January 2019 | ||||||||||||||
Long-term debt | ||||||||||||||
Total | 750,000,000 | |||||||||||||
Face amount of debt instrument | 750,000,000 | 750,000,000 | ||||||||||||
Spread on reference interest rate (as a percent) | 0.94% | 0.94% | ||||||||||||
2012 Shelf Registration Statement-$1,250 issued at discount to par at a price of 99.954% in January 2014 at 2.75%, due January 2019 | ||||||||||||||
Long-term debt | ||||||||||||||
Total | 1,250,000,000 | |||||||||||||
Discount to par (as a percent) | 99.95% | 99.95% | ||||||||||||
Interest rate (as a percent) | 2.75% | 2.75% | ||||||||||||
Face amount of debt instrument | 1,250,000,000 | 1,250,000,000 | ||||||||||||
EDS Senior Notes-$300 issued October 1999 at 7.45%, due October 2029 | ||||||||||||||
Long-term debt | ||||||||||||||
Total | 313,000,000 | 314,000,000 | ||||||||||||
Interest rate (as a percent) | 7.45% | 7.45% | 7.45% | |||||||||||
Face amount of debt instrument | 300,000,000 | 300,000,000 | 300,000,000 | |||||||||||
Other, including capital lease obligations, at 0.00%-8.50%, due in calendar years 2014-2024 | ||||||||||||||
Long-term debt | ||||||||||||||
Other, including capital lease obligations | 424,000,000 | 689,000,000 | ||||||||||||
Minimum interest rate (as a percent) | 0.00% | 0.00% | ||||||||||||
Maximum interest rate (as a percent) | 8.30% | 8.30% | ||||||||||||
Other, including capital lease obligations, at 0.00%-8.50%, due in calendar years 2014-2024 | HP Financial Services | ||||||||||||||
Long-term debt | ||||||||||||||
Other, including capital lease obligations | $123,000,000 | $244,000,000 |
Borrowings_Details_3
Borrowings (Details 3) (USD $) | 12 Months Ended | |||
Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 | Sep. 30, 2012 | |
Interest expense on borrowings recognized in Consolidated Condensed Statements of Earnings | ||||
Financing interest | $277,000,000 | $312,000,000 | $317,000,000 | |
Interest expense | 344,000,000 | 426,000,000 | 514,000,000 | |
Total interest expense | 621,000,000 | 738,000,000 | 831,000,000 | |
Aggregate future maturities of debt outstanding including capital lease obligations | ||||
2015 | 2,652,000,000 | |||
2016 | 3,027,000,000 | |||
2017 | 2,920,000,000 | |||
2018 | 786,000,000 | |||
2019 | 2,003,000,000 | |||
Thereafter | 7,186,000,000 | |||
Total | 18,574,000,000 | |||
Premium on debt issuance | 13,000,000 | |||
Discount on debt issuance | 13,000,000 | |||
Credit facilities | ||||
Debt instruments | ||||
Amount available under credit facility | 7,500,000,000 | |||
Available borrowing resources, other than 2012 Shelf Registration | 1,587,000,000 | |||
Credit facility expiring March 2017 | ||||
Debt instruments | ||||
Amount available under credit facility | 3,000,000,000 | |||
Term of credit facility | 5 years | |||
Credit facility expiring March 2017 | Euro | ||||
Debt instruments | ||||
Commercial paper authorization by HP | 2,200,000,000 | |||
Credit facility expiring March 2017 | GBP | ||||
Debt instruments | ||||
Commercial paper authorization by HP | 300,000,000 | |||
Credit facility expired February 2015 | ||||
Debt instruments | ||||
Amount available under credit facility | 4,500,000,000 | |||
Term of credit facility | 5 years | |||
Commercial paper | ||||
Debt instruments | ||||
Number of commercial paper programs | 2 | |||
Commercial paper authorization by HP | 16,000,000,000 | |||
Amount of additional commercial paper authorization for subsidiaries | 1,000,000,000 | |||
Available borrowing resources, other than 2012 Shelf Registration | 16,202,000,000 | |||
Commercial paper | U.S. program | ||||
Debt instruments | ||||
Commercial paper authorization by HP | 16,000,000,000 | |||
Commercial paper | Euro program | ||||
Debt instruments | ||||
Commercial paper authorization by HP | 3,000,000,000 | |||
Hewlett-Packard International Bank PLC | Commercial paper | Euro Commercial Paper/Certificate of Deposit Programme | ||||
Debt instruments | ||||
Commercial paper authorization by HP | $500,000,000 |
Stockholders_Equity_Details
Stockholders' Equity (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||
Share data in Thousands, except Per Share data, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Stockholders' Equity | |||||
Cash dividends declared per share (in dollars per share) | $0.61 | $0.55 | $0.50 | ||
Repurchases of common stock (in shares) | 7,000 | 92,000 | 77,000 | 67,000 | |
Share repurchases settled | $2,728,000,000 | $1,532,000,000 | $1,619,000,000 | ||
Share repurchase authorization remaining | 4,900,000,000 | 4,900,000,000 | |||
Tax (expense) benefit on change in unrealized gains/losses on available-for-sale securities: | |||||
Tax (provision) benefit on unrealized gains arising during the period | -1,000,000 | -14,000,000 | 25,000,000 | ||
Tax (provision) benefit on unrealized gains arising during the period | -1,000,000 | -14,000,000 | 25,000,000 | ||
Tax (provision) benefit on change in unrealized gains (losses) on cash flow hedges: | |||||
Tax (provision) benefit on unrealized gains (losses) arising during the period | -174,000,000 | 97,000,000 | -137,000,000 | ||
Tax benefit on losses (gains) reclassified into earnings | -18,000,000 | -49,000,000 | 143,000,000 | ||
Tax (provision) benefit on change in unrealized gains (losses) on cash flow hedges | -192,000,000 | 48,000,000 | 6,000,000 | ||
Tax (provision) benefit on change in unrealized components of defined benefit plans: | |||||
Tax (provision) benefit on (losses) gains arising during the period | 181,000,000 | -258,000,000 | 261,000,000 | ||
Tax (benefit) provision on amortization of actuarial loss and prior service benefit | -18,000,000 | -35,000,000 | -31,000,000 | ||
Tax provision on curtailments, settlements and other | -9,000,000 | -5,000,000 | -48,000,000 | ||
Tax (provision) benefit on change in unrealized components of defined benefit plans | 154,000,000 | -298,000,000 | 182,000,000 | ||
Tax benefit (provision) on change in cumulative translation adjustment | -27,000,000 | 25,000,000 | -25,000,000 | ||
Tax (provision) benefit on other comprehensive (loss) income | -66,000,000 | -239,000,000 | 188,000,000 | ||
Reclassifications and Taxes related to Items of Other Comprehensive Income (Loss) | |||||
Amounts reclassified from accumulated other comprehensive income | 376,000,000 | ||||
Other comprehensive income (loss), before reclassification | -2,479,000,000 | ||||
Other comprehensive income (loss), Tax expense (benefit) | 66,000,000 | 239,000,000 | -188,000,000 | ||
Other comprehensive income (loss), net of taxes | -2,103,000,000 | 1,781,000,000 | -2,061,000,000 | ||
Net revenue | -111,454,000,000 | -112,298,000,000 | -120,357,000,000 | ||
Cost of products | 56,469,000,000 | 55,632,000,000 | 59,468,000,000 | ||
Interest and other, net | -628,000,000 | -621,000,000 | -876,000,000 | ||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax, Total | -151,000,000 | -106,000,000 | 399,000,000 | ||
Share repurchase authorization increase after balance sheet date | 10,000,000,000 | ||||
Change in unrealized gains on available-for-sale securities | |||||
Reclassifications and Taxes related to Items of Other Comprehensive Income (Loss) | |||||
Amounts reclassified from accumulated other comprehensive income | -1,000,000 | ||||
Other comprehensive income (loss), before reclassification | 6,000,000 | 38,000,000 | 50,000,000 | ||
Other comprehensive income (loss), net of taxes | 5,000,000 | -11,000,000 | 50,000,000 | ||
Change in unrealized gains on available-for-sale securities | Reclassifications of losses (gains) into earnings | |||||
Reclassifications and Taxes related to Items of Other Comprehensive Income (Loss) | |||||
Amounts reclassified from accumulated other comprehensive income | -1,000,000 | -49,000,000 | |||
Change in unrealized gains (losses) on cash flow hedges | |||||
Reclassifications and Taxes related to Items of Other Comprehensive Income (Loss) | |||||
Amounts reclassified from accumulated other comprehensive income | 133,000,000 | ||||
Other comprehensive income (loss), before reclassification | 163,000,000 | -146,000,000 | 198,000,000 | ||
Other comprehensive income (loss), net of taxes | 296,000,000 | -89,000,000 | -58,000,000 | ||
Change in unrealized gains (losses) on cash flow hedges | Reclassifications of losses (gains) into earnings | |||||
Reclassifications and Taxes related to Items of Other Comprehensive Income (Loss) | |||||
Amounts reclassified from accumulated other comprehensive income | 133,000,000 | 57,000,000 | -256,000,000 | ||
Net revenue | 21,000,000 | -48,000,000 | -423,000,000 | ||
Cost of products | 71,000,000 | 165,000,000 | 15,000,000 | ||
Other operating expenses | 9,000,000 | -1,000,000 | 6,000,000 | ||
Interest and other, net | -50,000,000 | 10,000,000 | -3,000,000 | ||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax, Total | 151,000,000 | 106,000,000 | -399,000,000 | ||
Change in unrealized components of defined benefit plans | |||||
Reclassifications and Taxes related to Items of Other Comprehensive Income (Loss) | |||||
Amounts reclassified from accumulated other comprehensive income | 241,000,000 | ||||
Other comprehensive income (loss), before reclassification | -2,533,000,000 | ||||
Other comprehensive income (loss), net of taxes | -2,292,000,000 | 2,006,000,000 | -1,981,000,000 | ||
Amortization of actuarial loss and prior service benefit | Reclassifications of losses (gains) into earnings | |||||
Reclassifications and Taxes related to Items of Other Comprehensive Income (Loss) | |||||
Amounts reclassified from accumulated other comprehensive income | 241,000,000 | 291,000,000 | 141,000,000 | ||
Curtailments, settlements and other | |||||
Reclassifications and Taxes related to Items of Other Comprehensive Income (Loss) | |||||
Other comprehensive income (loss), net of taxes | 42,000,000 | 20,000,000 | 74,000,000 | ||
Losses (gains) reclassified into earnings | |||||
Reclassifications and Taxes related to Items of Other Comprehensive Income (Loss) | |||||
Other comprehensive income (loss), before reclassification | -2,575,000,000 | 1,695,000,000 | -2,196,000,000 | ||
Change in cumulative translation adjustment | |||||
Reclassifications and Taxes related to Items of Other Comprehensive Income (Loss) | |||||
Other comprehensive income (loss), before reclassification | -112,000,000 | ||||
Other comprehensive income (loss), net of taxes | ($112,000,000) | ($125,000,000) | ($72,000,000) |
Stockholders_Equity_Details_2
Stockholders' Equity (Details 2) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Components of accumulated other comprehensive (loss) income, net of taxes | |||
Balance at the beginning of the period | ($3,778) | ||
Other comprehensive income (loss) before reclassifications | -2,479 | ||
Reclassifications of (gains) losses into earnings | 376 | ||
Balance at the end of the period | -5,881 | ||
Change in unrealized gains on available-for-sale securities | |||
Components of accumulated other comprehensive (loss) income, net of taxes | |||
Balance at the beginning of the period | 76 | ||
Other comprehensive income (loss) before reclassifications | 6 | 38 | 50 |
Reclassifications of (gains) losses into earnings | -1 | ||
Balance at the end of the period | 81 | 76 | |
Change in unrealized gains (losses) on cash flow hedges | |||
Components of accumulated other comprehensive (loss) income, net of taxes | |||
Balance at the beginning of the period | -188 | ||
Other comprehensive income (loss) before reclassifications | 163 | -146 | 198 |
Reclassifications of (gains) losses into earnings | 133 | ||
Balance at the end of the period | 108 | -188 | |
Change in unrealized components of defined benefit plans | |||
Components of accumulated other comprehensive (loss) income, net of taxes | |||
Balance at the beginning of the period | -3,084 | ||
Other comprehensive income (loss) before reclassifications | -2,533 | ||
Reclassifications of (gains) losses into earnings | 241 | ||
Balance at the end of the period | -5,376 | ||
Change in cumulative translation adjustment | |||
Components of accumulated other comprehensive (loss) income, net of taxes | |||
Balance at the beginning of the period | -582 | ||
Other comprehensive income (loss) before reclassifications | -112 | ||
Balance at the end of the period | ($694) |
Net_Earnings_Per_Share_Detail
Net Earnings Per Share (Detail) (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Numerator: | |||
Net earnings (loss) | $5,013 | $5,113 | ($12,650) |
Denominator: | |||
Weighted-average shares used to compute basic net EPS | 1,882 | 1,934 | 1,974 |
Dilutive effect of employee stock plans (in shares) | 30 | 16 | |
Weighted-average shares used to compute diluted net EPS | 1,912 | 1,950 | 1,974 |
Net earnings (loss) per share: | |||
Basic (in dollars per share) | $2.66 | $2.64 | ($6.41) |
Diluted (in dollars per share) | $2.62 | $2.62 | ($6.41) |
Other information related to EPS computation | |||
Antidilutive securities excluded from the calculation of EPS (in shares) | 26 | 52 | 57 |
Stock Options | |||
Other information related to EPS computation | |||
Antidilutive securities excluded from the calculation of EPS (in shares) | 10 |
Litigation_and_Contingencies_D
Litigation and Contingencies (Detail) | 0 Months Ended | 1 Months Ended | 0 Months Ended | 12 Months Ended | 72 Months Ended | 1 Months Ended | 12 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||||||||
Dec. 23, 2004 | Oct. 31, 2014 | Dec. 14, 2010 | Oct. 31, 2012 | Nov. 30, 2012 | 10-May-10 | Apr. 29, 2010 | Jan. 24, 2013 | Jan. 24, 2013 | Dec. 11, 2012 | Apr. 21, 2012 | Apr. 20, 2012 | Apr. 11, 2012 | Oct. 31, 2014 | Oct. 31, 2006 | Jul. 31, 2011 | Oct. 31, 2008 | Oct. 31, 2007 | Jul. 31, 2013 | Jul. 31, 2013 | Dec. 06, 2012 | Aug. 26, 2013 | Jul. 30, 2013 | Jul. 26, 2013 | Feb. 06, 2013 | Jan. 22, 2013 | Nov. 30, 2012 | Oct. 31, 2012 | Oct. 31, 2012 | Oct. 31, 2014 | |
USD ($) | 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 | Bangalore Commissioner of Customs | Russia GPO and Other FCPA Investigations | Russia GPO and Other FCPA Investigations | ECT Proceedings | ECT Proceedings | ECT Proceedings | ECT Proceedings | ECT Proceedings | Autonomy-Related Legal Matters | Autonomy-Related Legal Matters | Autonomy-Related Legal Matters | Autonomy-Related Legal Matters | Autonomy-Related Legal Matters | Autonomy-Related Legal Matters | Autonomy-Related Legal Matters | Autonomy-Related Legal Matters | Autonomy-Related Legal Matters | Stockholder Litigation | ||
item | USD ($) | Minimum | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | EUR (€) | item | item | Minimum | Maximum | item | item | item | item | item | item | item | item | Software | USD ($) | ||||
USD ($) | USD ($) | |||||||||||||||||||||||||||||
Copyright Levies | ||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||
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 | 24,000,000 | ||||||||||||||||||||||||||||
Transaction of former subsidiary under investigation | 35,000,000 | |||||||||||||||||||||||||||||
ETC Proceedings, period to suspend right to bid and contract | 5 years | |||||||||||||||||||||||||||||
Number of ECT contracts related to alleged improprieties | 3 | 3 | ||||||||||||||||||||||||||||
Length of sanctions | 2 years | 5 years | ||||||||||||||||||||||||||||
Impairment of goodwill and intangible assets | 8,800,000,000 | |||||||||||||||||||||||||||||
Number of consolidated putative class action security lawsuits filed | 2 | |||||||||||||||||||||||||||||
Number of consolidated lawsuits filed | 7 | |||||||||||||||||||||||||||||
Number of investigating agencies | 3 | |||||||||||||||||||||||||||||
Number of lawsuits alleging insider trading filed | 1 | |||||||||||||||||||||||||||||
Number of consolidated ERISA lawsuits filed | 3 | |||||||||||||||||||||||||||||
Additional breach of fiduciary duties lawsuits filed | 2 | 2 | ||||||||||||||||||||||||||||
Number of actions other than claims asserted | 3 | |||||||||||||||||||||||||||||
Amount payable to U.S. government agencies | 77,000,000 | |||||||||||||||||||||||||||||
Amount agreed to pay into settlement fund | 57,000,000 | |||||||||||||||||||||||||||||
Amount paid to SEC | $31,000,000 |
Guarantees_Details
Guarantees (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 |
Changes in aggregated product warranty liabilities | ||
Balance at beginning of year | $2,031 | $2,170 |
Accruals for warranties issued | 1,840 | 2,007 |
Adjustments related to pre-existing warranties (including changes in estimates) | 12 | -4 |
Settlements made (in cash or in kind) | -1,927 | -2,142 |
Balance at end of period | $1,956 | $2,031 |
Commitments_Details
Commitments (Details) (USD $) | 12 Months Ended | ||
Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 | |
Commitments | |||
Rent expense | $1,000,000,000 | $1,000,000,000 | $1,000,000,000 |
Property under capital lease | 229,000,000 | 437,000,000 | |
Accumulated depreciation on property under capital lease | 207,000,000 | 404,000,000 | |
Operating lease commitments, sublease rental income | |||
2015 | 744,000,000 | ||
2016 | 555,000,000 | ||
2017 | 416,000,000 | ||
2018 | 308,000,000 | ||
2019 | 237,000,000 | ||
Thereafter | 804,000,000 | ||
Less: Sublease rental income | -63,000,000 | ||
Total | 3,001,000,000 | ||
Less: Sublease rental income, thereafter | -6,000,000 | ||
Unconditional purchase obligations details | |||
Unconditional purchase obligations | 2,100,000,000 | ||
Unconditional purchase obligations, 2015 | 1,383,000,000 | ||
Unconditional purchase obligations, 2016 | 289,000,000 | ||
Unconditional purchase obligations, 2017 | 229,000,000 | ||
Unconditional purchase obligations, 2018 | 212,000,000 | ||
Unconditional purchase obligations, total | $2,113,000,000 |