Restructuring and Other Charges

3 Months Ended

Jan. 31, 2022

Restructuring and Related Activities [Abstract]

Summary of Restructuring Plans

HP’s restructuring activities for the three months ended January 31, 2022 and 2021 summarized by plan were as follows:


	Fiscal 2020 Plan
	Severance and EER		Non-labor		Other prior-year plan		Total
	In millions
Accrued balance as of October 31, 2021	$	75	$	—	$	—	$	75
Charges	53		11		3		67
Cash payments	(91)		(4)		(3)		(98)
Non-cash and other adjustments	—		(7)		—		(7)
Accrued balance as of January 31, 2022	$	37	$	—	$	—	$	37
Total costs incurred to date as of January 31, 2022	$	662	$	59	$	507	$	1,228

Reflected in Consolidated Condensed Balance Sheets
Other current liabilities	$	37	$	—	$	—	$	37



Accrued balance as of October 31, 2020	$	55	$	—	$	12	$	67
Charges	106		11		—		117
Cash payments	(54)		(3)		(8)		(65)
Non-cash and other adjustments	1		(8)		—		(7)
Accrued balance as of January 31, 2021	$	108	$	—	$	4	$	112

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 $0.8 billion primarily in labor costs related to workforce reductions and the remaining costs will relate to non-labor actions and other charges.

Other charges

Other charges include non-recurring costs, including those as a result of information technology rationalization efforts, and are distinct from ongoing operational costs. These costs primarily relate to third-party professional services and other non-recurring costs. For the three months ended January 31, 2022 and 2021, HP incurred $1 million and $4 million of other charges, respectively.