Segment Information

3 Months Ended

Jan. 31, 2024

Segment Reporting [Abstract]

Segment Information

Segment Information

HP’s operations are organized into three reportable segments: Personal Systems, Printing, and Corporate Investments.

Personal Systems offers commercial and consumer desktops and notebooks, detachables and convertibles, workstations, thin clients, commercial mobility devices, retail point-of-sale (“POS”) systems, displays, hybrid systems, software, solutions and services. Personal Systems includes support and deployment, configurations and extended warranty services and maintains multi-operating system and multi-architecture strategies using Microsoft Windows and Google Chrome operating systems, and predominantly use processors from Intel Corporation (“Intel”) and Advanced Micro Devices, Inc. (“AMD”).

Personal Systems groups its global business capabilities into the following business units when reporting business performance:

•Commercial PS consists of devices and accessories, including workstations, thin clients, mobility devices and hybrid systems, for use by enterprise, public sector (which includes education), and small- and medium-sized business (“SMB”) customers. HP offers a range of services and solutions to commercial customers to help them manage the lifecycle of their personal computers (“PCs”) and mobility installed base. 

•Consumer PS consists of devices, accessories and services which are optimized for consumer usage, focusing on gaming, learning and working remotely, consuming multi-media for entertainment, managing personal life activities, sharing information, and staying connected informed and secure.

Printing offers consumer and commercial printer hardware, supplies, services and solutions. Printing is also focused on Graphics and 3D Printing and Personalization in the commercial and industrial markets. Our global business capabilities within Printing are described below:

•Office Printing Solutions delivers HP’s office printers, supplies, services, and solutions to SMBs, public sector and large enterprises. It also includes Original Equipment Manufacturer (“OEM”) hardware and solutions.

•Home Printing Solutions delivers innovative printing products, supplies, services and solutions for the home and home business.

•Graphics Solutions delivers large-format, commercial and industrial solutions and supplies to print service providers and packaging converters through a wide portfolio of printers and presses (HP DesignJet, HP Latex, HP Indigo and HP PageWide Web Presses).

•3D Printing & Personalization offers a portfolio of additive manufacturing solutions and supplies to help customers succeed in their additive and digital manufacturing journey. HP offers complete solutions in collaboration with an ecosystem of partners.

Printing groups its global business capabilities into the following business units when reporting business performance:

•Commercial Printing consists of office printing solutions, graphics solutions and 3D printing and personalization, excluding supplies;

•Consumer Printing consists of home printing solutions, excluding supplies; and

•Supplies comprises a set of highly innovative consumable products, ranging from ink and laser cartridges to media, graphics supplies and 3D printing and digital manufacturing supplies, for recurring use in consumer and commercial hardware.

Corporate Investments includes certain business incubation and investment projects.

HP does not allocate certain operating expenses, which it manages at the corporate level, to its segments. These unallocated amounts include expenses such as certain corporate governance costs and infrastructure investments, stock-based compensation expense, restructuring and other charges, acquisition and divestiture charges and amortization of intangible assets.

Segment Operating Results and the reconciliation to HP consolidated results were as follows:

	Three months ended January 31
	2024		2023
	In millions
Net revenue:
Commercial PS	$	6,045	$	6,382
Consumer PS	2,764		2,803
Personal Systems	8,809		9,185
Supplies	2,863		2,857
Commercial Printing	1,227		1,388
Consumer Printing	285		367
Printing	4,375		4,612
Corporate Investments	2		1
Total segment net revenue	13,186		13,798
Other	(1)		—
Total net revenue	$	13,185	$	13,798
Earnings before taxes:
Personal Systems	$	537	$	475
Printing	872		870
Corporate Investments	(37)		(33)
Total segment earnings from operations	1,372		1,312
Corporate and unallocated costs and other	(89)		(92)
Stock-based compensation expense	(177)		(167)
Restructuring and other charges	(63)		(141)
Acquisition and divestiture charges	(27)		(84)
Amortization of intangible assets	(81)		(85)
Interest and other, net	(142)		(181)
Total earnings before taxes	$	793	$	562

Realignment

Effective at the beginning of its first quarter of fiscal year 2024, HP realigned its business unit financial reporting more closely with its customer market segmentation. The realignment resulted in the transfer of LaserJet printers net revenues from Consumer Printing to Commercial Printing. HP reflected this change to its business unit information in prior reporting periods on an as-if basis which resulted in the reclassification of net revenues from Consumer Printing to Commercial Printing. The reporting change had no impact to previously reported segment net revenue, consolidated net revenue, earnings from operations, net earnings or net earnings per share (“EPS”).