Restructuring and Other Charges

12 Months Ended

Oct. 31, 2016

Restructuring and Related Activities [Abstract]

Summary of Restructuring Plans

HP’s restructuring activities in fiscal years 2016 and 2015 summarized by plan were as follows:



	Fiscal 2017 Plan		Fiscal 2015 Plan						Fiscal 2012 Plan
	Severance		Severance and PRP⁽¹⁾			Infrastructure and other			Severance and EER⁽²⁾			Infrastructure and other			Total
	In millions
Accrued balance as of October 31, 2014	$	—	$	—		$	—		$	218		$	7		$	225
Charges	—		39			—			23			1			63
Cash payments	—		—			—			(216		)	(4		)	(220		)
Non-cash and other adjustments	—		—			—			(4		)	(1		)	(5		)
Accrued balance as of October 31, 2015	—		39			—			21			3			63
Charges	24		117			27			7			—			175
Cash payments	—		(122		)	(4		)	(30		)	(1		)	(157		)
Non-cash and other adjustments	—		(13		)	(19		)	9			—			(23		)
Accrued balance as of October 31, 2016	$	24	$	21		$	4		$	7		$	2		$	58
Total costs incurred to date as of October 31, 2016	$	24	$	156		$	27		$	1,074		$	44		$	1,325
Reflected in Consolidated Balance Sheets:
Other accrued liabilities	$	24	$	21		$	4		$	7		$	1		$	57
Other non-current liabilities	$	—	$	—		$	—		$	—		$	1		$	1


⁽¹⁾	PRP represents Phased Retirement Program.


⁽²⁾	EER represents Enhanced Early Retirement.

Fiscal 2017 Plan

On October 10, 2016, HP’s Board of Directors approved a restructuring plan (the “Fiscal 2017 Plan”) which it expects will be implemented through fiscal year 2019. HP estimates that it will incur aggregate pre-tax charges between $350 million and $500 million relating to workforce reductions, real estate consolidation and other non-labor charges. HP estimates that approximately half of the expected cumulative pre-tax costs will relate to severance and the remaining will relate to infrastructure and other. HP expects between 3,000 and 4,000 employees to exit by the end of fiscal year 2019.

Fiscal 2015 Plan

In connection with the Separation, on September 14, 2015, HP’s Board of Directors approved a cost savings plan (the “Fiscal 2015 Plan”) which includes labor and non-labor actions. The Fiscal 2015 Plan was considered complete as of October 31, 2016 and we do not expect any further costs associated with this plan. Approximately 3,000 employees exited by the end of fiscal year 2016.

During fiscal year 2016, HP announced a voluntary PRP for certain qualified employees. Qualified employees will retire gradually over a defined period of time and at the end of which they will receive severance and certain benefits. HP recognized charges aggregating $29 million during fiscal year 2016 related to the PRP.

Fiscal 2012 Plan

The severance and infrastructure cash payments associated with the restructuring plan initiated by HP in fiscal year 2012 (the “Fiscal 2012 Plan”) are expected to be paid through fiscal year 2021. The Fiscal 2012 Plan was considered complete as of October 31, 2016 and we do not expect any further costs associated with this plan.

Other charges

Other charges include non-recurring costs that are distinct from ongoing operational costs such as information technology costs incurred in connection with the Separation. HP incurred $30 million of other charges in fiscal year 2016.