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Restructuring Charges
 3 Months Ended
Jan. 31, 2014
Restructuring Charges  
Restructuring Charges

Note 6: Restructuring Charges

  • Summary of Restructuring Plans

        HP's restructuring activities summarized by plan for the three months ended January 31, 2014 were as follows:

 
    
    
    
    
    
   As of January 31,
2014		  
 
    
   Three months
ended
January 31,
2014
Charges		    
    
    
  
 
   Balance,
October 31,
2013		   Cash
Payments		   Other
Adjustments
and Non-Cash
Settlements		   Balance,
January 31,
2014		   Total
Costs
Incurred
to Date		   Total
Expected
Costs to Be
Incurred		  
 
   In millions
  

Fiscal 2012 Plan:

                                            

Severance and EER

   $ 945   $ 59   $ (333 ) $ 4   $ 675   $ 3,095   $ 3,500  

Infrastructure and other

     40     56     (35 )   —     61     303     600  
                               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total 2012 Plan

     985     115     (368 )   4     736     3,398     4,100  

Other Plans:

                                            

Severance

     10     —     (2 )   —     8     2,629     2,629  

Infrastructure

     122     (1 )   (11 )   —     110     1,438     1,443  
                               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total Other Plans

     132     (1 )   (13 )   —     118     4,067     4,072  
                               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total restructuring plans

   $ 1,117   $ 114   $ (381 ) $ 4   $ 854   $ 7,465   $ 8,172  
                               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                               

        At January 31, 2014 and October 31, 2013, HP included the short-term portion of the restructuring liability of $630 million and $901 million, respectively, in Accrued restructuring, and the long-term portion of $224 million and $216 million, respectively, in Other liabilities in the accompanying Consolidated Condensed Balance Sheets. The timing of associated cash payments is dependent upon the type of restructuring charge and can extend over a multi-year period.

  • Fiscal 2012 Restructuring Plan

        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 34,000 positions in connection with the 2012 Plan through fiscal year 2014, with a portion of those employees exiting the company as part of voluntary enhanced early retirement ("EER") programs in the United States and in certain other countries. HP estimates it will recognize approximately $4.1 billion in aggregate charges in connection with the 2012 Plan. HP expects to record these charges through the end of HP's 2014 fiscal year as the accounting recognition criteria are met. HP expects approximately $3.5 billion to relate to workforce reductions, including the EER programs, and approximately $0.6 billion to relate to infrastructure, including data center and real estate consolidation, and other items. As of January 31, 2014, HP had eliminated approximately 28,300 positions for which a severance payment has been or will be made as part of the 2012 Plan. The severance and infrastructure related cash payments associated with the 2012 Plan are expected to be paid out through fiscal 2021.

  • Other Plans

        Restructuring plans initiated by HP in fiscal 2008 and 2010 have been substantially completed as of January 31, 2014, with $5 million of restructuring charges anticipated in future periods. HP estimates it will recognize approximately $4.1 billion in aggregate charges in connection with these plans. The severance and infrastructure-related cash payments associated with the other plans are expected to be paid out through fiscal 2019.