HP records restructuring charges associated with management-approved restructuring plans to either reorganize one or more of HP's business segments, or to remove duplicative headcount and infrastructure associated with one or more business acquisitions. Restructuring charges can include severance costs to eliminate a specified number of employees, infrastructure charges to vacate facilities and consolidate operations, and contract cancellation costs. Restructuring charges are recorded based upon planned employee termination dates and site closure and consolidation plans. The timing of associated cash payments is dependent upon the type of restructuring charge and can extend over a multi-year period. HP records the short-term portion of the restructuring liability in Accrued restructuring and the long-term portion in Other liabilities in the Consolidated Condensed Balance Sheets.

On May 23, 2012, HP adopted a multi-year restructuring plan (the "2012 Plan") designed to simplify business processes, accelerate innovation and deliver better results for customers, employees and stockholders. HP estimates that it will eliminate approximately 29,000 positions in connection with the 2012 Plan through fiscal year 2014, with a portion of those employees exiting the company as part of a voluntary enhanced early retirement ("EER") program for U.S. employees. As discussed in Note 14, a majority of the EER program will be funded through HP's U.S. pension plans. In connection with the 2012 Plan, HP expects to record aggregate charges of approximately $3.7 billion through the end of HP's 2014 fiscal year as accounting recognition criteria are met. Of that amount, HP expects approximately $3.3 billion to relate to the workforce reductions and the EER program and approximately $0.4 billion to relate to other items, including data center and real estate consolidation.

HP recorded an initial charge of approximately $1.7 billion in the third fiscal quarter of 2012 relating to the 2012 Plan. This amount included $41 million of stock-based compensation expense for accelerated vesting of stock-based awards held by participating EER employees and a special termination benefit ("STB") expense of $53 million for certain EER participants whose retirement incentive benefit will be paid in cash outside of HP's U.S. pension plans. As of July 31, 2012, HP had eliminated approximately 3,800 positions as part of the 2012 Plan. The $1.7 billion charge also includes $52 million for data center and real estate consolidation, of which $45 million related to asset impairments. The cash payments associated with the 2012 Plan are expected to be paid out through the first half of fiscal 2015.

In connection with the acquisitions of Palm, Inc. ("Palm") and 3Com Corporation ("3Com") in fiscal 2010, HP's management approved and initiated plans to restructure the operations of the acquired companies, including severance for employees, contract cancellation costs, costs to vacate duplicative facilities and other items. The total expected combined cost of the plans is $121 million, which includes $33 million of additional restructuring costs recorded in the fourth quarter of fiscal 2011 in connection with HP's decision to wind down the webOS device business. As of October 31, 2011, HP had recorded the majority of the costs of the plans based upon the anticipated timing of planned terminations and facility closure costs. With respect to the Palm plan, no further restructuring charges are anticipated, and the majority of the remaining costs are expected to be paid out through fiscal 2012. The remaining costs pertaining to the 3Com plan are expected to be paid out through fiscal 2016 as fixed lease payments are made.

On June 1, 2010, HP's management announced a plan to restructure its ES business, which includes the ITO and ABS business units. The multi-year restructuring program includes plans to consolidate commercial data centers, tools and applications. The total expected cost of the plan that will be recorded as restructuring charges is approximately $1.0 billion, and includes severance costs to eliminate approximately 8,000 positions and infrastructure charges. As the execution of the restructuring activities has evolved, certain components and their related cost estimates have been revised. While the total cost of the plan remains consistent, during the first quarter of fiscal 2012, HP reduced the severance accrual by $100 million and recognized additional infrastructure related charges of $104 million. HP expects to record the majority of the infrastructure charges through fiscal 2012. The timing of the charges is based upon planned termination dates and site closure and consolidation plans. The majority of the associated cash payments are expected to be paid out through the first quarter of fiscal 2013. As of July 31, 2012, approximately 7,300 positions had been eliminated.

In May 2009, HP's management approved and initiated a restructuring plan to structurally change and improve the effectiveness of the Imaging and Printing Group ("IPG"), the Personal Systems Group ("PSG"), and ESSN businesses. The total expected cost of the plan was $301 million in severance-related costs associated with the planned elimination of approximately 4,400 positions. All planned eliminations had occurred and the vast majority of the restructuring costs had been paid out as of October 31, 2011.

In connection with the acquisition of Electronic Data Systems Corporation ("EDS") on August 26, 2008, HP's management approved and initiated a restructuring plan to combine and align HP's services businesses, eliminate duplicative overhead functions and consolidate and vacate duplicative facilities. The restructuring plan is expected to be implemented at a total expected cost of $3.3 billion. Approximately $1.5 billion of the expected costs were associated with pre-acquisition EDS and were reflected in the fair value of purchase consideration of EDS. These costs are subject to change based on the actual costs incurred. The remaining costs are primarily associated with HP and will be recorded as a restructuring charge.

The restructuring plan includes severance costs related to eliminating approximately 25,000 positions. As of October 31, 2011, all planned eliminations had occurred and the vast majority of the associated severance costs had been paid out. The infrastructure charges in the restructuring plan include facility closure and consolidation costs and the costs associated with early termination of certain contractual obligations. HP has recorded the majority of these costs based upon the execution of site closure and consolidation plans. The associated cash payments are expected to be paid out through fiscal 2016.

The adjustments to the accrued restructuring expenses related to all of HP's restructuring plans described above for the nine months ended July 31, 2012 were as follows:

			Three months ended July 31, 2012 charges		Nine months ended July 31, 2012 charges											As of July 31, 2012

											Other adjustments and non-cash settlements					As of July 31, 2012
	Balance, October 31, 2011							Cash payments			Other adjustments and non-cash settlements			Balance, July 31, 2012		Total costs and adjustments to date		Total expected costs and adjustments
	In millions
Fiscal 2012 Plan
Severance and EER	$	—	$	1,680	$	1,680		$	(81	)	$	(1,106)	⁽¹⁾	$	493	$	1,680	$	3,279
Infrastructure and other		—		52		52			(1	)		(46	)		5		52		404

Total 2012 Plan		—		1,732		1,732			(82	)		(1,152	)		498		1,732		3,683
Fiscal 2010 acquisitions		59		—		—			(19	)		(1	)		39		114		121
Fiscal 2010 ES Plan:
Severance		493		—		(100	)		(111	)		(27	)		255		623		623
Infrastructure		3		33		172			(137	)		(37	)		1		365		369

Total ES Plan		496		33		72			(248	)		(64	)		256		988		992
Fiscal 2009 Plan		—		—		7			(9	)		2			—		301		301
Fiscal 2008 HP/EDS Plan:
Severance		—		—		5			(7	)		2			—		2,195		2,195
Infrastructure		258		30		72			(107	)		(11	)		212		1,046		1,085

Total HP/EDS Plan		258		30		77			(114	)		(9	)		212		3,241		3,280

Total restructuring plans	$	813	$	1,795	$	1,888		$	(472	)	$	(1,224	)	$	1,005	$	6,376	$	8,377

At July 31, 2012 and October 31, 2011, HP included the long-term portion of the restructuring liability of $263 million and $159 million, respectively, in Other liabilities, and the short-term portion of $742 million and $654 million, respectively, in Accrued restructuring in the accompanying Consolidated Condensed Balance Sheets.