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HPE Next
 12 Months Ended
Oct. 31, 2018
Restructuring and Related Activities [Abstract]  
HPE Next
Restructuring
Summary of Restructuring Plans
Restructuring charges of $19 million, $417 million and $417 million were recorded by the Company during fiscal 2018, 2017 and 2016, respectively, based on restructuring activities impacting the Company's employees and infrastructure. The restructuring charges for fiscal 2016 include reversals of $2 million related to earlier plans not included in the table below. Additionally, restructuring charges of $251 million and $819 million for fiscal 2017 and 2016, respectively, are included in Net loss from discontinued operations in the Consolidated Statements of Earnings. For details on restructuring charges related to HPE Next, see Note 5, "HPE Next".
Restructuring activities related to the Company's employees and infrastructure, summarized by plan, are presented in the table below:
 
Fiscal 2015 Plan
 
Fiscal 2012 Plan
 
 
 
Employee
Severance
 
Infrastructure
and other
 
Employee Severance and EER
 
Infrastructure
and other
 
Total
 
In millions
Liability as of October 31, 2015
$
67

 
$
—

 
$
47

 
$
37

 
$
151

Charges
301

 
42

 
75

 
1

 
419

Cash payments
(172
)
 
(19
)
 
(82
)
 
(15
)
 
(288
)
Non-cash items
38

 
(10
)
 
(3
)
 
(9
)
 
16

Liability as of October 31, 2016
$
234


$
13


$
37


$
14


$
298

Charges
374

 
37

 
6

 
—

 
417

Cash payments
(355
)
 
(19
)
 
(32
)
 
(6
)
 
(412
)
Non-cash items
(34
)
 
(14
)
 
5

 
(6
)
 
(49
)
Liability as of October 31, 2017
$
219


$
17


$
16


$
2


$
254

Charges
9

 
(2
)
 
13

 
(1
)
 
19

Cash payments
(158
)
 
(8
)
 
(15
)
 
—

 
(181
)
Non-cash items
(8
)
 
3

 
(3
)
 
—

 
(8
)
Liability as of October 31, 2018
$
62


$
10


$
11


$
1


$
84

Total costs incurred to date as of October 31, 2018
$
751

 
$
78

 
$
1,268

 
$
145

 
$
2,242

Total expected costs to be incurred as of October 31, 2018
$
751

 
$
78

 
$
1,268

 
$
145

 
$
2,242


The current restructuring liability related to the plans in the table above, reported in Accrued restructuring in the Consolidated Balance Sheets as of October 31, 2018 and 2017, was $53 million and $158 million, respectively. The non-current restructuring liability related to the plans in the table above, reported in Other liabilities in the Consolidated Balance Sheets as of October 31, 2018 and 2017, was $31 million and $96 million, respectively.
Fiscal 2015 Restructuring Plan
On September 14, 2015, former Parent's Board of Directors approved a restructuring plan (the "2015 Plan") in connection with the Separation. As a result of the Everett and Seattle Transactions, cost amounts and total headcount exits were revised. As such, as of October 31, 2018, the Company had eliminated 8,300 positions as part of the 2015 Plan. As of October 31, 2018, the plan is complete, with no further positions being eliminated. The Company recognized $0.8 billion in total aggregate charges in connection with the 2015 Plan through fiscal 2018, of which approximately $751 million related to workforce reductions and approximately $78 million primarily related to real estate consolidation and asset impairments. The severance- and infrastructure-related cash payments associated with the 2015 Plan are expected to be paid out through fiscal 2022.
Fiscal 2012 Restructuring Plan
On May 23, 2012, former Parent 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 a result of the Everett and Seattle Transactions, cost amounts and total headcount exits were revised. As such, as of October 31, 2018, the Company had eliminated 10,300 positions, 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, 2018, the plan is complete, with no further positions being eliminated. The Company recognized $1.4 billion in total aggregate charges in connection with the 2012 Plan, of which approximately $1.3 billion related to workforce reductions, including the EER programs, and approximately $0.1 billion related to infrastructure, including data center and real estate consolidation and other items. The severance- and infrastructure-related cash payments associated with the 2012 Plan are expected to be paid out through fiscal 2022.
HPE Next
Transformation Costs
The HPE Next initiative is expected to be implemented through fiscal 2020, during which time the Company expects to incur expenses for workforce reductions, to upgrade and simplify its IT infrastructure, and for other non-labor actions. These costs will be partially offset by proceeds received from real estate sales.
During fiscal 2018 and 2017, the Company incurred $425 million and $359 million, respectively in net charges associated with the HPE Next initiative, which were recorded within Transformation costs in the Consolidated Statements of Earnings. Additionally, the Company incurred $20 million of transformation costs in fiscal 2018 related to cumulative translation adjustments which were recorded within Interest and other, net in the Consolidated Statements of Earnings.
 
Fiscal years ended October 31,
 
2018
 
2017
 
In millions
Program management(1)
$
95

 
$
57

IT costs
148

 
34

Restructuring charges
531

 
296

Other(2)
56

 
—

Gains on real estate sales(3)
(405
)
 
(28
)
Total Transformation Costs
$
425

 
$
359

 
(1)
Primarily consists of consulting fees and other direct costs attributable to the design and implementation of the HPE Next initiative.
(2)
Primarily consists of costs related to real estate improvements in connection with the HPE Next initiative.
(3)
In fiscal 2018, primarily includes the gain on the sale of the Company's Palo Alto, California corporate headquarters.
Restructuring Plan
On October 16, 2017, the Company's Board of Directors approved a restructuring plan in connection with the HPE Next initiative (the "HPE Next Plan") and on September 20, 2018, the Company's Board of Directors approved a revision to that restructuring plan. As a result of the revision to the plan, cost amounts and total headcount exits were revised and the completion of the workforce reductions was extended to fiscal 2020. The changes to the workforce will vary by country, based on business needs, local legal requirements and consultations with employee work councils and other employee representatives, as appropriate. As of October 31, 2018, the Company estimates that it will incur aggregate pre-tax charges of approximately $1.4 billion through fiscal 2020 in connection with the HPE Next Plan, of which approximately $1.2 billion relates to workforce reductions and approximately $0.2 billion relates to infrastructure, primarily real estate site exits.
 
Employee
Severance
 
Infrastructure
and other
 
In millions
Liability as of October 31, 2016
$
—

 
$
—

Charges
296

 
—

Liability as of October 31, 2017
$
296

 
$
—

Charges
470

 
61

Cash payments
(452
)
 
(14
)
Non-cash items
(23
)
 
(14
)
Liability as of October 31, 2018
$
291

 
$
33

Total costs incurred to date as of October 31, 2018
$
766

 
$
61

Total expected costs to be incurred as of October 31, 2018
$
1,200

 
$
180


The current restructuring liability related to the HPE Next Plan, reported in Accrued restructuring in the Consolidated Balance Sheets at October 31, 2018 and 2017, was $241 million and $287 million, respectively. The non-current restructuring liability related to the HPE Next Plan, reported in Other liabilities in the Consolidated Balance Sheets as of October 31, 2018 and 2017 was $83 million and $9 million, respectively.