Discontinued Operations (Tables)

9 Months Ended

Jul. 31, 2016

Discontinued Operations and Disposal Groups [Abstract]

Schedule of Operating Results of Discontinued Operations

For the three and nine months ended July 31, 2015, significant non-cash items and capital expenditures of discontinued operations are outlined below:

	Three months ended July 31, 2015		Nine months ended July 31, 2015
	In millions
Depreciation and amortization	$	925	$	2,750
Purchases of property, plant and equipment	$	768	$	2,215

The following table presents assets and liabilities that were transferred to Hewlett Packard Enterprise as of November 1, 2015 and presented as discontinued operations in the Consolidated Condensed Balance Sheets as of October 31, 2015:

	In millions
Cash and cash equivalents	$	9,849
Accounts receivable	8,538
Financing receivables	2,918
Inventory	2,197
Other current assets	7,090
Total current assets of discontinued operations	$	30,592
Property, plant and equipment	$	9,598
Goodwill	27,261
Long-term financing receivables and other non-current assets	9,472
Total non-current assets of discontinued operations	$	46,331
Notes payable and short-term borrowings	$	691
Accounts payable	5,762
Employee compensation and benefits	2,861
Taxes on earnings	587
Deferred revenue	5,148
Other accrued liabilities	6,472
Total current liabilities of discontinued operations	$	21,521
Long-term debt	$	15,103
Other non-current liabilities	7,346
Total non-current liabilities of discontinued operations	$	22,449

The following table presents the financial results of HP's discontinued operations:

	Three months ended July 31						Nine months ended July 31
	2016			2015			2016			2015
	In millions, except per share amounts
Net revenue	$	—		$	12,987		$	—		$	38,444
Cost of revenue(1)	—			9,281			—			27,609
Expenses(2)	30			3,501			158			9,394
Interest and other, net(3)(4)	(174		)	18			(157		)	132
Earnings (loss) from discontinued operations before taxes	144			187			(1		)	1,309
Provision for taxes(4)	(204		)	(33		)	(148		)	(281		)
(Loss) earnings from discontinued operations, net of taxes	$	(60	)	$	154		$	(149	)	$	1,028

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⁽¹⁾  Cost of products, cost of services and financing interest.

⁽²⁾  Expenses for the three and nine months ended July 31, 2016 were primarily related to separation costs.

⁽³⁾  In fiscal 2015, allocation of interest to Hewlett Packard Enterprise was based on the average effective interest rate of the debt assumed by Hewlett Packard Enterprise and the debt repaid as part of the Separation.

⁽⁴⁾  In connection with the tax matters agreement (the "TMA"), Interest and other, net for the three and nine months ended July 31, 2016 includes $174 million and $157 million, respectively, of net tax indemnification amounts and Provision for taxes for the three and nine months ended July 31, 2016 includes $172 million and $156 million, respectively, of the tax impact relating to the above amounts. For more information on tax indemnifications and the TMA, see Note 7, "Taxes on Earnings".