Financial Instruments (Tables)

9 Months Ended

Jul. 31, 2020

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, 2020								As of October 31, 2019
	Cost		Gross Unrealized Gain		Gross Unrealized Loss		Fair Value		Cost		Gross Unrealized Gain		Gross Unrealized Loss		Fair Value
	In millions
Cash Equivalents:
Corporate debt	$	985	$	—	$	—	$	985	$	1,283	$	—	$	—	$	1,283
Financial institution instruments	13		—		—		13		—		—		—		—
Government debt	2,780		—		—		2,780		2,422		—		—		2,422
Total cash equivalents	3,778		—		—		3,778		3,705		—		—		3,705
Available-for-Sale Investments:
Corporate debt	135		—		—		135		—		—		—		—
Financial institution instruments	26		—		—		26		—		—		—		—
Government debt	68		—		—		68		—		—		—		—
Marketable equity securities and mutual funds	42		15		—		57		40		16		—		56
Total available-for-sale investments	271		15		—		286		40		16		—		56
Total cash equivalents and available-for-sale investments	$	4,049	$	15	$	—	$	4,064	$	3,745	$	16	$	—	$	3,761

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

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

	As of July 31, 2020										As of October 31, 2019
	Outstanding Gross Notional		Other Current Assets		Other Non-Current Assets		Other Current Liabilities		Other Non-Current Liabilities		Outstanding Gross Notional		Other Current Assets		Other Non-Current Assets		Other Current Liabilities		Other Non-Current Liabilities
	In millions
Derivatives designated as hedging instruments
Fair value hedges:
Interest rate contracts	$	750	$	—	$	6	$	—	$	—	$	750	$	—	$	4	$	—	$	—
Cash flow hedges:
Foreign currency contracts	15,010		120		24		363		63		15,639		260		111		123		28
Total derivatives designated as hedging instruments	15,760		120		30		363		63		16,389		260		115		123		28
Derivatives not designated as hedging instruments
Foreign currency contracts	4,963		27		—		18		—		7,146		10		—		14		—
Other derivatives	138		22		—		—		—		134		7		—		1		—
Total derivatives not designated as hedging instruments	5,101		49		—		18		—		7,280		17		—		15		—
Total derivatives	$	20,861	$	169	$	30	$	381	$	63	$	23,669	$	277	$	115	$	138	$	28

Schedule of Offsetting Assets

As of July 31, 2020 and October 31, 2019, 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, 2020
Derivative assets	$	199	$	—	$	199	$	154	$	9	(1)	$	36
Derivative liabilities	$	444	$	—	$	444	$	154	$	249	(2)	$	41
As of October 31, 2019
Derivative assets	$	392	$	—	$	392	$	113	$	259	(1)	$	20
Derivative liabilities	$	166	$	—	$	166	$	113	$	43	(2)	$	10

⁽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, 2020 and October 31, 2019, 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, 2020
Derivative assets	$	199	$	—	$	199	$	154	$	9	(1)	$	36
Derivative liabilities	$	444	$	—	$	444	$	154	$	249	(2)	$	41
As of October 31, 2019
Derivative assets	$	392	$	—	$	392	$	113	$	259	(1)	$	20
Derivative liabilities	$	166	$	—	$	166	$	113	$	43	(2)	$	10

⁽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, 2020 and 2019 were as follows:

		Total amounts of income/ (expense) line items presented in the statement of financial performance in which the effects of fair value hedges are recorded		Gain/(Loss) Recognized in Earnings on Derivative Instrument				Gain/(Loss) Recognized in Earnings on Derivative and Related Hedged Item
Derivative Instrument	Location	Three months ended July 31, 2020		Three months ended July 31, 2020		Hedged Item	Location	Three months ended July 31, 2020
In millions
Interest rate contracts	Interest and other, net	$	(28)	$	1	Fixed-rate debt	Interest and other, net	$	(1)

		Total amounts of income/ (expense) line items presented in the statement of financial performance in which the effects of fair value hedges are recorded		Gain/(Loss) Recognized in Earnings on Derivative Instrument				Gain/(Loss) Recognized in Earnings on Derivative and Related Hedged Item
Derivative Instrument	Location	Nine months ended July 31, 2020		Nine months ended July 31, 2020		Hedged Item	Location	Nine months ended July 31, 2020
In millions
Interest rate contracts	Interest and other, net	$	(15)	$	11	Fixed-rate debt	Interest and other, net	$	(11)

		Total amounts of income/ (expense) line items presented in the statement of financial performance in which the effects of fair value hedges are recorded		Gain/(Loss) Recognized in Earnings on Derivative Instrument				Gain/(Loss) Recognized in Earnings on Derivative and Related Hedged Item
Derivative Instrument	Location	Three months ended July 31, 2019		Three months ended July 31, 2019		Hedged Item	Location	Three months ended July 31, 2019
In millions
Interest rate contracts	Interest and other, net	$	(831)	$	8	Fixed-rate debt	Interest and other, net	$	(8)

		Total amounts of income/ (expense) line items presented in the statement of financial performance in which the effects of fair value hedges are recorded		Gain/(Loss) Recognized in Earnings on Derivative Instrument				Gain/(Loss) Recognized in Earnings on Derivative and Related Hedged Item
Derivative Instrument	Location	Nine months ended July 31, 2019		Nine months ended July 31, 2019		Hedged Item	Location	Nine months ended July 31, 2019
In millions
Interest rate contracts	Interest and other, net	$	(902)	$	24	Fixed-rate debt	Interest and other, net	$	(24)

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, 2020 and 2019 was as follows:

	Gain/(Loss) Recognized in AOCI on Derivatives			Total amounts of income and expense line items presented in the statement of financial performance in which the effects of cash flow hedges are recorded		Gain /(Loss) Reclassified from AOCI into Earnings
	Three months ended July 31, 2020		Location	Three months ended July 31, 2020
	In millions
Cash flow hedges:
Foreign currency contracts	$	(567)	Net revenue	$	14,294	$	136
Interest rate contracts	4		Cost of revenue	(11,901)		(7)
			Operating expenses	(1,614)		1
Total	$	(563)				$	130

	Gain/(Loss) Recognized in AOCI on Derivatives			Total amounts of income and expense line items presented in the statement of financial performance in which the effects of cash flow hedges are recorded		Gain /(Loss) Reclassified from AOCI into Earnings
	Nine months ended July 31, 2020		Location	Nine months ended July 31, 2020
	In millions
Cash flow hedges:
Foreign currency contracts	$	(268)	Net revenue	$	41,381	$	259
Interest rate contracts	(4)		Cost of revenue	(33,623)		(18)
			Operating expenses	(5,288)		1
Total	$	(272)				$	242

	Gain/(Loss) Recognized in AOCI on Derivatives			Total amounts of income and expense line items presented in the statement of financial performance in which the effects of cash flow hedges are recorded		Gain /(Loss) Reclassified from AOCI into Earnings
	Three months ended July 31, 2019		Location	Three months ended July 31, 2019
	In millions
Cash flow hedges:
Foreign currency contracts	$	180	Net revenue	$	14,603	$	98
			Cost of revenue	(11,698)		(12)
			Operating expenses	(1,826)		—
Total	$	180				$	86

	Gain/(Loss) Recognized in AOCI on Derivatives			Total amounts of income and expense line items presented in the statement of financial performance in which the effects of cash flow hedges are recorded		Gain /(Loss) Reclassified from AOCI into Earnings
	Nine months ended July 31, 2019		Location	Nine months ended July 31, 2019
	In millions
Cash flow hedges:
Foreign currency contracts	$	271	Net revenue	$	43,349	$	289
			Cost of revenue	(35,103)		(28)
			Operating expenses	(5,313)		(2)
Total	$	271				$	259

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 recognized in the Consolidated Condensed Statements of Earnings for the three and nine months ended July 31, 2020 and 2019 was as follows:

	Three months ended July 31				Nine months ended July 31
	2020		2019		2020		2019
	In millions
Foreign currency contracts	$	46	$	(59)	$	63	$	(116)
Other derivatives	11		(3)		16		(12)
Total	$	57	$	(62)	$	79	$	(128)

Schedule of Contractual Maturities

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

	As of July 31, 2020
	Amortized Cost		Fair Value
	In millions
Due in one year or less	$	229	$	229