Restructuring and Other Charges

3 Months Ended

Jan. 31, 2017

Restructuring and Related Activities [Abstract]

Summary of Restructuring Plans

HP’s restructuring activities for the three months ended January 31, 2017 and January 31, 2016 summarized by plan were as follows:



	Fiscal 2017 Plan						Fiscal 2015 Plan						Fiscal 2012 Plan
	Severance			Infrastructure and other			Severance and PRP⁽¹⁾			Infrastructure and other			Severance and EER⁽²⁾			Infrastructure and other			Total
	In millions
Accrued balance as of October 31, 2016	$	24		$	—		$	21		$	4		$	7		$	2		$	58
Charges	24			1			6			—			1			—			32
Cash payments	(8		)	(1		)	(24		)	(2		)	(2		)	—			(37		)
Non-cash and other adjustments	—			—			1			—			—			—			1
Accrued balance as of January 31, 2017	$	40		$	—		$	4		$	2		$	6		$	2		$	54
Total costs incurred to date as of January 31, 2017	$	48		$	1		$	162		$	27		$	1,075		$	44		$	1,357
Reflected in Consolidated Balance Sheets
Other accrued liabilities	$	40		$	—		$	4		$	2		$	6		$	—		$	52
Other non-current liabilities	—			—			—			—			—			2			2

Accrued balance as of October 31, 2015	—			—			39			—			21			3			63
Charges	—			—			15			5			—			—			20
Cash payments	—			—			(12		)	—			(19		)	—			(31		)
Non-cash and other adjustments	—			—			—			(4		)	—			(1		)	(5		)
Accrued balance as of January 31, 2016	$	—		$	—		$	42		$	1		$	2		$	2		$	47

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⁽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 labor and non-labor actions. HP estimates that approximately half of the expected cumulative pre-tax costs will relate to severance and the remaining will relate to infrastructure, non-labor actions and other charges, as described below. 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 substantially complete as of October 31, 2016. Approximately 3,000 employees exited by the end of fiscal year 2016.

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 is considered substantially complete as of October 31, 2016 and we do not expect any further activity associated with this plan.

Other Charges

Other charges include non-recurring costs, including those as a result of Separation, and are distinct from ongoing operational costs. These costs primarily relate to information technology costs such as advisory, consulting and non-recurring labor costs. HP incurred $31 million of other charges for the three months ended January 31, 2017. There were no other charges incurred for the three months ended January 31, 2016.