HPE Next (Tables)

6 Months Ended

Apr. 30, 2019

Restructuring and Related Activities [Abstract]

In association with the HPE Next initiative, during the three and six months ended April 30, 2019, the Company incurred $55 million and $138 million of net charges, of which $54 million and $132 million were recorded within Transformation costs, and $1 million and $6 million were recorded within Non-service net periodic benefit credit in the Condensed Consolidated Statements of Earnings, respectively. During the three and six months ended April 30, 2018, the Company incurred $123 million and $368 million of net charges, of which $120 million and $365 million were recorded within Transformation costs, and $3 million was recorded within Non-service net periodic benefit credit for both periods, in the Condensed Consolidated Statements of Earnings, respectively.



	Three months ended April 30,						Six months ended April 30,
	2019			2018			2019			2018
	In millions
Program management⁽¹⁾	$	9		$	30		$	20		$	54
IT costs	26			36			53			69
Restructuring charges⁽²⁾	18			85			51			256
Gain on real estate sales	(7		)	(36		)	(7		)	(37		)
Other⁽³⁾	9			8			21			26
Total	$	55		$	123		$	138		$	368


(1)	Primarily consists of consulting fees and other direct costs attributable to the design and implementation of the HPE Next initiative.


(2)	For the three and six months ended April 30, 2019 and 2018, a portion of these costs were recorded in Non-service net periodic benefit credit in the Condensed Consolidated Statements of Earnings as described above.


(3)	Primarily consists of site relocation costs in connection with the HPE Next initiative.

Schedule of Restructuring Reserve by Cost

Restructuring activities related to the Company's employees and infrastructure for the 2015 and 2012 Plans are presented in the table below:



	2015 Plan						2012 Plan
	Employee Severance			Infrastructure and other			Employee Severance and EER			Infrastructure and other			Total
	In millions
Liability as of October 31, 2018	$	62		$	10		$	11		$	1		$	84
Cash payments	(18		)	(2		)	(3		)	(1		)	(24		)
Liability as of April 30, 2019	$	44		$	8		$	8		$	—		$	60
Total costs incurred to date, as of April 30, 2019	$	751		$	78		$	1,268		$	145		$	2,242
Total costs expected to be incurred, as of April 30, 2019	$	751		$	78		$	1,268		$	145		$	2,242



	Employee Severance			Infrastructure and other
	In millions
Liability as of October 31, 2018	$	291		$	33
Charges	43			8
Cash payments	(162		)	(12		)
Non-cash items	(8		)	(2		)
Liability as of April 30, 2019	$	164		$	27
Total costs incurred to date, as of April 30, 2019	$	809		$	69
Total costs expected to be incurred, as of April 30, 2019	$	1,200		$	180