Taxes on Earnings (Tables)

12 Months Ended

Oct. 31, 2019

Income Tax Disclosure [Abstract]

Schedule of domestic and foreign components of earnings before taxes

The domestic and foreign components of earnings (loss) from continuing operations before taxes were as follows:

	For the fiscal years ended October 31,
	2019			2018			2017
	In millions
U.S.(1)	$	(1,067	)	$	(2,805	)	$	(1,929	)
Non-U.S.(1)	2,620			3,073			2,201
	$	1,553		$	268		$	272

(1)

Fiscal 2017 amount has been reclassified to conform with the current period presentation.

Schedule of provision for (benefit from) taxes on earnings

The provision (benefit) for taxes on earnings from continuing operations were as follows:

	For the fiscal years ended October 31,
	2019			2018			2017
	In millions
U.S. federal taxes:
Current	$	(763	)	$	(2,177	)	$	560
Deferred	1,046			150			(1,366		)
Non-U.S. taxes:
Current	246			419			64
Deferred	101			(188		)	25
State taxes:
Current	(58		)	52			(107		)
Deferred	(68		)	—			660
	$	504		$	(1,744	)	$	(164	)

Schedule of differences between the U.S. federal statutory income tax rate and effective tax rate

The differences between the U.S. federal statutory income tax rate and the Company's effective tax rate were as follows:

	For the fiscal years ended October 31,
	2019		2018		2017
U.S. federal statutory income tax rate	21.0	%	23.3	%	35.0	%
State income taxes, net of federal tax benefit	(0.1	)%	4.3	%	3.0	%
Lower rates in other jurisdictions, net	(7.3	)%	(121.4	)%	(426.3	)%
Valuation allowance	5.8	%	(59.8	)%	310.0	%
U.S. permanent differences	6.0	%	39.3	%	27.8	%
Uncertain tax positions	(14.7	)%	(694.8	)%	(8.4	)%
Impacts of the Tax Act(1)	24.5	%	158.0	%	—	%
Other, net	(2.7	)%	0.4	%	(1.4	)%
	32.5	%	(650.7	)%	(60.3	)%

(1) Impacts of the Tax Act is inclusive of valuation allowances recorded as a result of the U.S. law change under SAB 118.

Schedule of reconciliation of gross unrecognized tax benefits

A reconciliation of unrecognized tax benefits is as follows:

	As of October 31,
	2019			2018			2017
	In millions
Balance at beginning of year	$	8,826		$	11,262		$	11,411
Increases:
For current year's tax positions	43			163			28
For prior years' tax positions	37			66			311
Decreases:
For prior years' tax positions	(17		)	(82		)	(202		)
Statute of limitations expiration	(38		)	(86		)	(70		)
Settlements with taxing authorities	(7		)	(2		)	(216		)
Settlements related to joint and several positions of former Parent	(6,575		)	(2,495		)	—
Balance at end of year	$	2,269		$	8,826		$	11,262

Schedule of significant components of deferred tax assets and deferred tax liabilities

The significant components of deferred tax assets and deferred tax liabilities were as follows:

	As of October 31,
	2019			2018
	In millions
Deferred tax assets:
Loss and credit carry-forwards	$	8,110		$	9,149
Inventory valuation	59			77
Intercompany prepayments	179			48
Other intercompany transactions	41			63
Warranty	72			81
Employee and retiree benefits	584			498
Restructuring	65			101
Deferred revenue	531			518
Intangible assets	130			48
Other	243			432
Total deferred tax assets	10,014			11,015
Valuation allowance	(8,225		)	(8,209		)
Total deferred tax assets net of valuation allowance	1,789			2,806
Deferred tax liabilities:
Unremitted earnings of foreign subsidiaries	(233		)	(161		)
Fixed assets	(352		)	(470		)
Total deferred tax liabilities	(585		)	(631		)
Net deferred tax assets and liabilities	$	1,204		$	2,175

Schedule of current and long-term deferred tax assets and liabilities

Deferred tax assets and liabilities included in the Consolidated Balance Sheets are as follows:

	As of October 31,
	2019			2018
	In millions
Long-term deferred tax assets	$	1,515		$	2,403
Long-term deferred tax liabilities	(311		)	(228		)
Net deferred tax assets net of deferred tax liabilities	$	1,204		$	2,175

Schedule of tax credit carryforwards

As of October 31, 2019, Hewlett Packard Enterprise had recorded deferred tax assets for various tax credit carryforwards as follows:

	Carryforward		Valuation Allowance			Initial Year of Expiration
	In millions
U.S. foreign tax credits	$	1,271	$	(1,227	)	2026
U.S. research and development and other credits	149		(2		)	2021
Tax credits in state and foreign jurisdictions	174		(91		)	2022
Balance at end of year	$	1,594	$	(1,320	)

Schedule of valuation allowance balance

The deferred tax asset valuation allowance and changes were as follows:

	As of October 31,
	2019			2018			2017
	In millions
Balance at beginning of year	$	8,209		$	2,789		$	2,095
Income tax expense	(10		)	(166		)	848
Income tax expense related to the Tax Act	488			687			—
Valuation allowance offsetting current activity	(738		)	5,028			—
Other comprehensive income, currency translation and charges to other accounts	276			(129		)	(154		)
Balance at end of year	$	8,225		$	8,209		$	2,789