XML 39 R25.htm IDEA: XBRL DOCUMENT v3.8.0.1
Stockholders' Equity
 12 Months Ended
Oct. 31, 2017
Stockholders' Equity Note [Abstract]  
Stockholders' Equity
Stockholders' Equity
Taxes related to Other Comprehensive Income (Loss)
 
Fiscal years ended October 31,
 
2017
 
2016
 
2015
 
In millions
Taxes on change in net unrealized losses on available-for-sale securities:
 

 
 

 
 

Tax (provision) benefit on net unrealized losses arising during the period
$
(2
)
 
$
2

 
$
2

Tax provision (benefit) on (gains) losses reclassified into earnings
1

 
(2
)
 
—

 
(1
)

—


2

Taxes on change in net unrealized (losses) gains on cash flow hedges:
 

 
 

 
 

Tax benefit (provision) on net unrealized gains arising during the period
6

 
(14
)
 
(69
)
Tax provision on net gains reclassified into earnings
10

 
25

 
76

 
16


11


7

Taxes on change in unrealized components of defined benefit plans:
 

 
 

 
 

Tax (provision) benefit on gains (losses) arising during the period
(49
)
 
63

 
30

Tax provision on amortization of actuarial loss and prior service benefit
(19
)
 
(20
)
 
(10
)
Tax provision on curtailments, settlements and other
(91
)
 
(1
)
 
—

Tax benefit on plans transferred from former Parent during the period
—

 
—

 
255

 
(159
)

42


275

Taxes on change in cumulative translation adjustment:
 
 
 
 
 
Tax on cumulative translation adjustment arising during the period
(1
)
 
20

 
(73
)
Tax on release of cumulative translation adjustment as a result of H3C and MphasiS divestitures
—

 
(22
)
 
—

 
(1
)
 
(2
)
 
(73
)
Tax (provision) benefit on other comprehensive loss
$
(145
)

$
51


$
211


Changes and reclassifications related to Other Comprehensive Income (Loss), net of taxes
 
Fiscal years ended October 31,
 
2017
 
2016
 
2015
 
In millions
Other comprehensive income (loss), net of taxes:
 

 
 

 
 

Change in net unrealized losses on available-for-sale securities:
 

 
 

 
 

Net unrealized losses arising during the period
$
(10
)
 
$
(2
)
 
$
(8
)
(Gains) losses reclassified into earnings
(3
)
 
1

 
—

 
(13
)
 
(1
)
 
(8
)
Change in net unrealized (losses) gains on cash flow hedges:
 

 
 

 
 

Net unrealized gains arising during the period
52

 
212

 
412

Net gains reclassified into earnings(1)
(135
)
 
(245
)
 
(404
)
 
(83
)
 
(33
)
 
8

Change in unrealized components of defined benefit plans:
 

 
 

 
 

Gains (losses) arising during the period
895

 
(1,714
)
 
(352
)
Amortization of actuarial loss and prior service benefit(2)
266

 
264

 
204

Curtailments, settlements and other
(76
)
 
(19
)
 
4

Plans transferred from former Parent during the period
—

 
—

 
(2,352
)
 
1,085

 
(1,469
)
 
(2,496
)
Change in cumulative translation adjustment:
 
 
 
 
 
Cumulative translation adjustment arising during the period
(15
)
 
(134
)
 
(271
)
Release of cumulative translation adjustment as a result of H3C and MphasiS divestitures
—

 
53

 
—

 
(15
)
 
(81
)
 
(271
)
Other comprehensive income (loss), net of taxes
$
974

 
$
(1,584
)
 
$
(2,767
)
 
(1)
For more details on reclassification of pre-tax (gains) losses on cash flow hedges into the Consolidated and Combined Statements of Earnings, see Note 14, "Financial Instruments".
(2)
These components are included in the computation of net pension and post-retirement benefit (credit) cost in Note 6, "Retirement and Post-Retirement Benefit Plans".
The components of accumulated other comprehensive loss, net of taxes as of October 31, 2017 and changes during fiscal 2017 were as follows:
 
Net unrealized
gains (losses) on
available-for-sale
securities
 
Net unrealized
gains (losses) on cash
flow hedges
 
Unrealized
components
of defined
benefit plans
 
Cumulative
translation
adjustment
 
Accumulated
other
comprehensive
loss
 
In millions
Balance at beginning of period
$
54

 
$
35

 
$
(5,642
)
 
$
(1,046
)
 
$
(6,599
)
Transfer related to the Everett Transaction
(9
)
 
—

 
1,820

 
768

 
2,579

Transfer related to the Seattle Transaction
(3
)
 
—

 
47

 
107

 
151

Other comprehensive (loss) income before reclassifications
(10
)
 
52

 
895

 
(15
)
 
922

Reclassifications of (gains) losses into earnings
(3
)
 
(135
)
 
190

 
—

 
52

Balance at end of period
$
29


$
(48
)

$
(2,690
)

$
(186
)

$
(2,895
)

Dividends
On November 11, 2015, the Company's Board of Directors authorized a regular quarterly cash dividend for its common stock. The stockholders of HPE common stock are entitled to receive dividends when and as declared by HPE's Board of Directors. Dividends declared were $0.26 per common share in fiscal 2017 and $0.22 per common share in fiscal 2016.
Share Repurchase Program
On October 13, 2015, the Company's Board of Directors approved a share repurchase program with an authorization of $3.0 billion, which was refreshed with additional share repurchase authorizations of $3.0 billion and $5.0 billion on May 24, 2016 and October 16, 2017, respectively. The Company's share repurchase program authorizes both open market and private repurchase transactions and does not have a specific expiration date. The Company may choose to repurchase shares when sufficient liquidity exists and the shares are trading at a discount relative to estimated intrinsic value.
The Company entered into two separate accelerated share repurchase agreements ("ASR Agreements") with financial institutions in November 2015 and May 2016. Under the ASR agreements, the Company paid upfront amounts of $1,075 million and $1,450 million, respectively. For fiscal 2016, the Company retired a total of 158 million shares as a result of its share repurchase program, which included purchases of 148 million shares under the ASR Agreements with the remainder under open market repurchases. The 158 million shares were retired and recorded as a $2.7 billion reduction to stockholder's equity. For fiscal 2017, the Company repurchased and retired 136 million shares as a result of its share repurchase program and recorded a $2.6 billion reduction to stockholders' equity. Share repurchases settled in fiscal 2017 were open market purchases. As of October 31, 2017, the Company had unsettled open market repurchases of 1.7 million shares, which were recorded as a $24 million reduction to stockholders' equity. As of October 31, 2017, the Company had a remaining authorization of $5.8 billion for future share repurchases.