Leases

12 Months Ended

Oct. 31, 2025

As a lessee, HP determines, at lease inception, whether or not an arrangement contains a lease. A significant portion of the operating lease portfolio includes real estate leases. Additionally, HP has identified embedded operating leases within certain outsourced supply chain contracts. Leasing arrangements have a remaining lease term ranging from 1 to approximately 15 years with varying renewal and termination options. Substantially all of HP’s leases are considered operating leases. Finance leases, short-term leases and sub-lease income were not material as of October 31, 2025 and 2024 or for fiscal years ended October 31, 2025 and 2024, respectively.

Lease terms include options to extend or terminate the lease when it is reasonably certain that HP will exercise such options. HP generally considers the economic life of the ROU assets to be comparable to the useful life of similar owned assets. HP’s leases generally do not provide a residual guarantee.

Operating leases are included in Other non-current assets, Other current liabilities and Other non-current liabilities. Finance leases are included in Property, plant and equipment, net, Notes payable and short-term borrowings and Long-term debt in the Consolidated Balance Sheets.

As most of the leases do not provide an implicit interest rate, HP uses the incremental borrowing rate based on the information available at the commencement date of a lease in determining the present value of lease payments. The incremental borrowing rate is determined based on the rate of interest that HP would have to pay to borrow an amount equal to the lease payments on a collateralized basis over a similar term. HP uses the unsecured borrowing rate and risk-adjusts that rate to approximate a collateralized rate.

HP has elected the practical expedient to combine lease and non-lease components as a single lease element for its real estate leases and certain outsourced warehousing contracts in calculating the ROU assets and lease liabilities. Where HP chooses not to combine the lease and non-lease components, HP allocates contract consideration to the lease and non-lease components based on relative standalone prices.

HP reviews the impairment of the ROU assets consistent with the approach applied for other long-lived assets.

The components of lease expense are as follows:


	For the fiscal years ended October 31
	2025		2024
	In millions
Operating lease cost	$	249	$	230
Variable cost	100		106
Total lease expense	$	349	$	336

All lease expenses, including variable lease costs, are primarily included in Cost of net revenue and Selling, general and administrative expenses in the Consolidated Statements of Earnings based on the use of the facilities.

Variable lease expense relates primarily to leased real estate utilized for office space and outsourced warehousing. These costs primarily include adjustments for inflation, payments dependent on a rate or index or usage of asset and common area maintenance charges. These costs are not included in the lease liability and are recognized in the period in which they are incurred.

The following table presents supplemental information relating to the cash flows arising from lease transactions. Cash payments made from variable lease costs and short-term leases are not included in the measurement of operating lease liabilities, and, as such, are excluded from the amounts below:


	For the fiscal years ended October 31
	2025		2024
	In millions
Cash paid for amount included in the measurement of lease liabilities	$	256	$	233
Right-of-use assets obtained in exchange of lease liabilities(1)	$	452	$	411

(1) Includes the impact of new leases as well as remeasurements and modifications to existing leases.

Weighted-average information associated with the measurement of our remaining operating lease liabilities is as follows:


	As of October 31
	2025		2024
Weighted-average remaining lease term in years	4.7		4.1
Weighted-average discount rate	6.9	%	6.5	%

The following maturity analysis presents expected undiscounted cash outflows for operating leases on an annual basis for the next five years:


Fiscal year	In millions
2026	$	474
2027	357
2028	193
2029	90
2030	57
Thereafter	216
Total lease payments	1,387
Less: Imputed interest	171
Total lease liabilities	$	1,216

There were no material operating leases that HP had entered into and that were yet to commence as of October 31, 2025.

As a lessor, HP records revenue under sales-type leases at the commencement of the lease. Revenue recognized from sales-type leases constituted less than one percent of product net revenue for fiscal years 2025, 2024 and 2023 respectively. As of October 31, 2025 and 2024, the net investment in leases balance were $859 million and $705 million, respectively.