Restructuring and Other Charges

6 Months Ended

Apr. 30, 2022

Restructuring and Related Activities [Abstract]

Summary of Restructuring Plans

HP’s restructuring activities for the six months ended April 30, 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	85		57		3		145
Cash payments	(115)		(23)		(3)		(141)
Non-cash and other adjustments	2		(34)		—		(32)
Accrued balance as of April 30, 2022	$	47	$	—	$	—	$	47
Total costs incurred to date as of April 30, 2022	$	694	$	105	$	507	$	1,306

Reflected in Consolidated Condensed Balance Sheets
Other current liabilities	$	47	$	—	$	—	$	47



Accrued balance as of October 31, 2020	$	55	$	—	$	12	$	67
Charges	136		15		—		151
Cash payments	(92)		(3)		(10)		(105)
Non-cash and other adjustments	1		(12)		—		(11)
Accrued balance as of April 30, 2021	$	100	$	—	$	2	$	102

HP’s restructuring charges for the three months ended April 30, 2022 summarized by the plans outlined below were as follows:


	Fiscal 2020 Plan
	Severance and EER		Non-labor		Total
	In millions
For the three months ended April 30, 2022	$	32	$	46	$	78

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 $0.7 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 and six months ended April 30, 2022, HP incurred $4 million and $5 million of other charges, respectively. For the three and six months ended April 30, 2021, HP incurred $5 million and $9 million of other charges, respectively.