Restructuring and Other Charges

12 Months Ended

Oct. 31, 2019

Restructuring and Related Activities [Abstract]

Summary of Restructuring Plans

HP’s restructuring activities in fiscal years 2019, 2018 and 2017 summarized by plan were as follows:



	Fiscal 2020 Plan							Fiscal 2017 Plan						Other prior year plans ⁽²⁾			Total
	Severance and EER					Infrastructure and other		Severance			Infrastructure and other ⁽¹⁾			Other prior year plans ⁽²⁾			Total
	In millions
Accrued balance as of October 31, 2016	$	—				$	—	$	24		$	—		$	34		$	58
Charges	—					—		117			94			16			227
Cash payments	—					—		(68		)	(23		)	(43		)	(134		)
Non-cash and other adjustments	—					—		3			(52		)	6			(43		)
Accrued balance as of October 31, 2017	—					—		76			19			13			108
Charges (reversals)	—					—		112			(13		)	—			99
Cash payments	—					—		(136		)	(35		)	(4		)	(175		)
Non-cash and other adjustments	—					—		(2		)	29			—			27
Accrued balance as of October 31, 2018	—					—		50			—			9			59
Charges	82					—		137			28			—			247
Cash payments	—					—		(122		)	(15		)	(3		)	(140		)
Non-cash and other adjustments	(6		)	⁽³	⁾	—		(7		)	(11		)	—			(24		)
Accrued balance as of October 31, 2019	$	76				$	—	$	58		$	2		$	6		$	142
Total costs incurred to date as of October 31, 2019	$	82				$	—	$	390		$	109		$	1,317		$	1,898

Reflected in Consolidated Balance Sheets:
Other current liabilities	$	76				$	—	$	58		$	2		$	5		$	141
Other non-current liabilities	$	—				$	—	$	—		$	—		$	1		$	1


⁽¹⁾	Infrastructure and other includes adjustment of carrying amount of held for sale assets of $52 million in fiscal year 2017 and reversal of adjustments of $29 million for the fiscal year 2018 associated with the consolidation of manufacturing into global hubs.


⁽²⁾	Includes prior-year plans which are substantially complete. HP does not expect any further material activity associated with these plans.


⁽³⁾	Includes reclassification of liability related to the Enhanced Early Retirement (“EER”) plan of $6M for certain healthcare and medical savings account benefits to pension and other post retirement plans. See Note 4 “Retirement and Post-Retirement Benefit Plans” for further information.

Fiscal 2020 Plan

On September 30, 2019, HP’s Board of Directors approved the Fiscal 2020 Plan intended to optimize and simplify its operating model and cost structure that HP expects will be implemented through fiscal 2022. HP expects to reduce global headcount by approximately 7,000 to 9,000 employees through a combination of employee exits and voluntary EER. HP estimates that it will incur pre-tax charges of approximately $1.0 billion relating to labor and non-labor actions. HP expects to incur approximately $0.9 billion primarily in labor costs related to workforce reductions and the remaining costs will relate to infrastructure, non-labor actions and other charges.

Fiscal 2017 Plan

On October 10, 2016, HP’s Board of Directors approved the Fiscal 2017 Plan, which included severance costs related to labor actions and infrastructure costs related to non-labor actions and other charges. Approximately 5,300 employees exited as part of the Fiscal 2017 Plan. HP incurred $390 million in severance costs and $305 million in infrastructure costs related to non-labor and other charges. The Fiscal 2017 Plan is substantially complete. HP does not expect any further costs associated with the plan.

Other charges

Other charges include non-recurring costs, including those as a result of the Separation or information technology rationalization efforts, 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 $28 million, $33 million and $135 million of other charges in fiscal year 2019, 2018 and 2017, respectively.