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Financial Instruments (Tables)

9 Months Ended

Jul. 31, 2018

Investments, All Other Investments [Abstract]

Schedule of Cash Equivalents and Available-for-Sale Investments

Cash Equivalents and Available-for-Sale Investments



	As of July 31, 2018									As of October 31, 2017
	Cost		Gross Unrealized Gain		Gross Unrealized Loss			Fair Value		Cost		Gross Unrealized Gain		Gross Unrealized Loss			Fair Value
	In millions
Cash Equivalents:
Corporate debt	$	1,493	$	—	$	—		$	1,493	$	1,390	$	—	$	—		$	1,390
Financial institution instruments	—		—		—			—		6		—		—			6
Government debt	3,542		—		—			3,542		4,002		—		—			4,002
Total cash equivalents	5,035		—		—			5,035		5,398		—		—			5,398
Available-for-Sale Investments:
Corporate debt ⁽¹⁾	436		—		(2		)	434		629		—		—			629
Financial institution instruments ⁽¹⁾	39		—		—			39		78		—		—			78
Government debt ⁽¹⁾	415		—		(2		)	413		443		—		(1		)	442
Marketable equity securities	4		3		—			7		5		7		—			12
Mutual funds	41		9		—			50		39		10		—			49
Total available-for-sale investments	935		12		(4		)	943		1,194		17		(1		)	1,210
Total cash equivalents and available-for-sale investments	$	5,970	$	12	$	(4	)	$	5,978	$	6,592	$	17	$	(1	)	$	6,608

⁽¹⁾HP classifies its marketable debt securities as available-for-sale investments within Other current assets on the Consolidated Condensed Balance Sheets, including those with maturity dates beyond one year, based on their highly liquid nature and availability for use in current operations.

Schedule of Contractual Maturities of Available for-sale Debt Securities

Contractual maturities of investments in available-for-sale debt securities were as follows:



	As of July 31, 2018
	Amortized Cost		Fair Value
	In millions
Due in one year or less	$	742	$	740
Due in one to five years	$	148	$	146

Schedule of Gross Notional and Fair Value of Derivative Financial Instruments in the Consolidated Condensed Balance Sheets

The gross notional and fair value of derivative instruments in the Consolidated Condensed Balance Sheets were as follows:



	As of July 31, 2018										As of October 31, 2017
	Outstanding Gross Notional		Other Current Assets		Other Non-Current Assets		Other Accrued Liabilities		Other Non-Current Liabilities		Outstanding Gross Notional		Other Current Assets		Other Non-Current Assets		Other Accrued Liabilities		Other Non-Current Liabilities
	In millions
Derivatives designated as hedging instruments
Fair value hedges:
Interest rate contracts	$	1,000	$	—	$	—	$	1	$	22	$	2,500	$	—	$	—	$	—	$	12
Cash flow hedges:
Foreign currency contracts	18,782		258		54		115		59		16,149		92		12		245		100
Total derivatives designated as hedging instruments	19,782		258		54		116		81		18,649		92		12		245		112
Derivatives not designated as hedging instruments
Foreign currency contracts	4,645		9		—		18		—		5,801		16		—		15		—
Other derivatives	68		2		—		—		—		123		1		—		—		—
Total derivatives not designated as hedging instruments	4,713		11		—		18		—		5,924		17		—		15		—
Total derivatives	$	24,495	$	269	$	54	$	134	$	81	$	24,573	$	109	$	12	$	260	$	112

Schedule of Offsetting Assets

As of July 31, 2018 and October 31, 2017, information related to the potential effect of HP’s master netting agreements and collateral security agreements was as follows:



	In the Consolidated Condensed Balance Sheets
							Gross Amounts Not Offset
	Gross Amount Recognized (i)		Gross Amount Offset (ii)		Net Amount Presented (iii) = (i)–(ii)		Derivatives (iv)		Financial Collateral (v)			Net Amount (vi) = (iii)–(iv)–(v)
	In millions
As of July 31, 2018
Derivative assets	$	323	$	—	$	323	$	104	$	186	⁽¹⁾	$	33
Derivative liabilities	$	215	$	—	$	215	$	104	$	91	⁽²⁾	$	20
As of October 31, 2017
Derivative assets	$	121	$	—	$	121	$	108	$	4	⁽¹⁾	$	9
Derivative liabilities	$	372	$	—	$	372	$	108	$	219	⁽²⁾	$	45

_______________________________________________________________________________


⁽¹⁾	Represents the cash collateral posted by counterparties as of the respective reporting date for HP’s asset position, net of derivative amounts that could be offset, as of, generally, two business days prior to the respective reporting date.


⁽²⁾	Represents the collateral posted by HP through re-use of counterparty cash collateral as of the respective reporting date for HP’s liability position, net of derivative amounts that could be offset, as of, generally, two business days prior to the respective reporting date.

Schedule of Offsetting Liabilities

As of July 31, 2018 and October 31, 2017, information related to the potential effect of HP’s master netting agreements and collateral security agreements was as follows:



	In the Consolidated Condensed Balance Sheets
							Gross Amounts Not Offset
	Gross Amount Recognized (i)		Gross Amount Offset (ii)		Net Amount Presented (iii) = (i)–(ii)		Derivatives (iv)		Financial Collateral (v)			Net Amount (vi) = (iii)–(iv)–(v)
	In millions
As of July 31, 2018
Derivative assets	$	323	$	—	$	323	$	104	$	186	⁽¹⁾	$	33
Derivative liabilities	$	215	$	—	$	215	$	104	$	91	⁽²⁾	$	20
As of October 31, 2017
Derivative assets	$	121	$	—	$	121	$	108	$	4	⁽¹⁾	$	9
Derivative liabilities	$	372	$	—	$	372	$	108	$	219	⁽²⁾	$	45

_______________________________________________________________________________


⁽¹⁾	Represents the cash collateral posted by counterparties as of the respective reporting date for HP’s asset position, net of derivative amounts that could be offset, as of, generally, two business days prior to the respective reporting date.


⁽²⁾	Represents the collateral posted by HP through re-use of counterparty cash collateral as of the respective reporting date for HP’s liability position, net of derivative amounts that could be offset, as of, generally, two business days prior to the respective reporting date.

Schedule of Pre-Tax Effect of Derivative Instruments and Related Hedged Items in a Fair Value Hedging Relationship

The pre-tax effect of derivative instruments and related hedged items in a fair value hedging relationship for the three and nine months ended July 31, 2018 and 2017 were as follows:

Gain (Loss) Recognized in Earnings on Derivative and Related Hedged Item

Derivative Instrument

Location

Three months ended July 31, 2018

Nine months ended July 31, 2018

Hedged Item

Location

Three months ended July 31, 2018

Nine months ended July 31, 2018

In millions

Interest rate contracts

Interest and other, net

—

(11

)

Fixed-rate debt

Interest and other, net

—



	Gain (Loss) Recognized in Earnings on Derivative and Related Hedged Item
Derivative Instrument	Location	Three months ended July 31, 2017		Nine months ended July 31, 2017			Hedged Item	Location	Three months ended July 31, 2017			Nine months ended July 31, 2017
		In millions							In millions
Interest rate contracts	Interest and other, net	$	5	$	(43	)	Fixed-rate debt	Interest and other, net	$	(5	)	$	43

Schedule of Pre-Tax Effect of Derivative Instruments in Cash Flow Hedging Relationships

The pre-tax effect of derivative instruments in cash flow hedging relationships for the three and nine months ended July 31, 2018 was as follows:



	(Loss) Gain Recognized in Other Comprehensive Income (“OCI”) on Derivatives (Effective Portion)				(Loss) Gain Reclassified from Accumulated OCI Into Earnings (Effective Portion)
	Three months ended July 31, 2018		Nine months ended July 31, 2018		Location	Three months ended July 31, 2018			Nine months ended July 31, 2018
	In millions					In millions
Cash flow hedges:
Foreign currency contracts	$	273	$	19	Net revenue	$	(20	)	$	(349	)
					Cost of revenue	4			(14		)
					Operating expenses	(1		)	—
					Interest and other, net	—			—
Total	$	273	$	19		$	(17	)	$	(363	)

The pre-tax effect of derivative instruments in cash flow hedging relationships for the three and nine months ended July 31, 2017 was as follows:



	Loss Recognized in Other Comprehensive Income (“OCI”) on Derivatives (Effective Portion)						(Loss) Gain Reclassified from Accumulated OCI Into Earnings (Effective Portion)
	Three months ended July 31, 2017			Nine months ended July 31, 2017			Location	Three months ended July 31, 2017			Nine months ended July 31, 2017
	In millions							In millions
Cash flow hedges:
Foreign currency contracts	$	(519	)	$	(758	)	Net revenue	$	(26	)	$	89
							Cost of revenue	(13		)	(32		)
							Operating expenses	1			1
							Interest and other, net	—			(9		)
Total	$	(519	)	$	(758	)		$	(38	)	$	49

Schedule of Pre-Tax Effect of Derivative Instruments not Designated as Hedging Instruments on the Consolidated Condensed Statements of Earnings

The pre-tax effect of derivative instruments not designated as hedging instruments in the Consolidated Condensed Statements of Earnings for the three and nine months ended July 31, 2018 and 2017 was as follows:



	Gain (Loss) Recognized in Earnings on Derivatives
	Location	Three months ended July 31, 2018		Three months ended July 31, 2017		Nine months ended July 31, 2018			Nine months ended July 31, 2017
		In millions
Foreign currency contracts	Interest and other, net	$	5	$	16	$	(4	)	$	(33	)
Other derivatives	Interest and other, net	1		1		1			5
Total		$	6	$	17	$	(3	)	$	(28	)