Restructuring and Other Charges

Summary of Restructuring Plans

HP’s restructuring activities for the nine months ended July 31, 2018 and 2017 summarized by the plans outlined below were as follows:



	Fiscal 2017 Plan						Fiscal 2015 Plan						Fiscal 2012 Plan
	Severance			Infrastructure and other⁽¹⁾			Severance and PRP⁽²⁾			Infrastructure and other			Severance and EER⁽³⁾			Infrastructure and other		Total
	In millions
Accrued balance as of October 31, 2017	$	76		$	19		$	6		$	2		$	3		$	2	$	108
Charges (reversals)	72			(16		)	—			—			—			—		56
Cash payments	(110		)	(32		)	(2		)	(2		)	—			—		(146		)
Non-cash and other adjustments	(2		)	29			1			—			—			—		28
Accrued balance as of July 31, 2018	$	36		$	—		$	5		$	—		$	3		$	2	$	46
Total costs incurred to date as of July 31, 2018	$	213		$	78		$	171		$	27		$	1,075		$	44	$	1,608

Reflected in Consolidated Condensed Balance Sheets
Other accrued liabilities	$	36		$	—		$	5		$	—		$	3		$	1	$	45
Other non-current liabilities	—			—			—			—			—			1		1

Accrued balance as of October 31, 2016	$	24		$	—		$	21		$	4		$	7		$	2	$	58
Charges	95			60			15			—			1			—		171
Cash payments	(46		)	(6		)	(35		)	(2		)	(4		)	—		(93		)
Non-cash and other adjustments	4			(52		)	6			—			—			—		(42		)
Accrued balance as of July 31, 2017	$	77		$	2		$	7		$	2		$	4		$	2	$	94

HP’s restructuring charges for the three months ended July 31, 2018 summarized by the plans outlined below were as follows:



	Fiscal 2017 Plan					Fiscal 2015 Plan				Fiscal 2012 Plan
	Severance		Infrastructure and other			Severance and PRP⁽²⁾		Infrastructure and other		Severance and EER⁽³⁾		Infrastructure and other		Total
	In millions
For the three months ended July 31, 2018	$	20	$	(28	)	$	—	$	—	$	—	$	—	$	(8	)


⁽¹⁾	Infrastructure and other includes adjustment of carrying amount of held for sale assets of $52 million for the nine months ended July 31, 2017 and reversal of adjustments of $29 million for the three and nine months ended July 31, 2018 associated with the consolidation of manufacturing into global hubs.


⁽²⁾	PRP represents Phased Retirement Program.


⁽³⁾	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 HP expected would be implemented through fiscal year 2019.

On May 26, 2018, HP’s Board of Directors approved amending the Fiscal 2017 Plan. HP now expects approximately 4,500 to 5,000 employees to exit by the end of fiscal year 2019, subject to certain jurisdictional labor law requirements. HP estimates that it will now incur aggregate pre-tax charges of approximately $700 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 costs will relate to infrastructure, non-labor actions and other charges.

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 and HP does not expect any further activity associated with this plan.

Fiscal 2012 Plan

HP initiated a restructuring plan in fiscal year 2012 (the “Fiscal 2012 Plan”), which includes severance and infrastructure costs. The Fiscal 2012 Plan was considered substantially complete as of October 31, 2016 and HP does 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. For the three and nine months ended July 31, 2018, HP incurred $12 million and $36 million of other charges, respectively. For the three and nine months ended July 31, 2017, HP incurred $25 million and $78 million of other charges, respectively.