Subsequent Events

6 Months Ended

Apr. 30, 2012

Subsequent Events

Subsequent Event

Note 17: Subsequent Events

• Restructuring Plan

        On May 23, 2012, HP adopted a restructuring plan designed to simplify business processes, accelerate innovation and deliver better results for customers, employees and stockholders. HP expects that the restructuring plan will be implemented through the end of HP's 2014 fiscal year. In connection with the restructuring plan, HP expects approximately 27,000 employees to exit the company by the end of fiscal 2014, with a portion of those employees exiting the company as part of a voluntary early retirement program for U.S. employees whose combined age and years of service exceed certain levels.

        In connection with the restructuring plan, HP expects to record aggregate pre-tax charges of approximately $3.5 billion through the end of HP's 2014 fiscal year beginning in the third quarter of HP's 2012 fiscal year. Of that amount, HP expects approximately $3.0 billion to relate to the workforce reductions and approximately $0.5 billion to relate to other items, including data center and real estate consolidation. HP expects approximately $2.7 billion of those aggregate pre-tax charges to result in cash expenditures during the term of the plan. HP expects to amend its U.S. pension plans to facilitate the funding of a portion of the voluntary early retirement program using available U.S. pension plan assets. These restructuring actions could result in curtailments or potential settlements with HP's various pension and post-retirement plans.

        HP is also evaluating the impact, if any, on the carrying value of its long-lived assets within the Services segment as a result of the restructuring plan and other related initiatives, market conditions and the long-term profitability outlook for the Services business subsequent to the execution of the restructuring plan.

• Compaq Trade Name Impairment

        On May 23, 2012, HP approved a change to its branding strategy for personal computers, which is expected to result in a more limited and focused use of the "Compaq" trade name acquired in 2002. In conjunction with the change in branding strategy, HP also revised its assumption as to the useful life of that intangible asset, which resulted in a reclassification of that asset from indefinite-lived to an asset with a remaining useful life of approximately five years. As a result of these changes, HP has commenced an asset impairment analysis to determine the impact of this change on the fair value of the intangible asset associated with that trade name. Based on the preliminary results of this analysis, HP expects to record an impairment charge of approximately $1.2 billion in its third fiscal quarter of 2012. HP does not expect the impairment charge to result in any future cash expenditures.

• Shelf Registration Statement

        On May 24, 2012, HP filed a shelf registration statement (the "2012 Shelf Registration Statement") with the SEC to enable the company to offer for sale, from time to time, in one or more offerings, an unspecified amount of debt securities, common stock, preferred stock, depositary shares and warrants. The 2012 Shelf Registration Statement replaced the 2009 Shelf Registration Statement, which expired in May 2012.