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Restructuring Charges
 9 Months Ended
Jul. 31, 2014
Restructuring Charges  
Restructuring Charges

Note 6: Restructuring Charges

  • Summary of Restructuring Plans

        HP's restructuring activities summarized by plan were as follows:

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

Fiscal 2012 Plan

                                                  

Severance and EER

   $ 945   $ 562   $ 817   $ (861 ) $ (12 ) $ 889   $ 3,853   $ 4,000  

Infrastructure and other

     40     86     195     (138 )   —     97     442     500  
                                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total 2012 Plan

     985     648     1,012     (999 )   (12 )   986     4,295     4,500  

Other Plans:

                                                  

Severance

     10     —     —     (3 )   —     7     2,629     2,629  

Infrastructure

     122     1     3     (48 )   —     77     1,442     1,443  
                                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total Other Plans

     132     1     3     (51 )   —     84     4,071     4,072  
                                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total restructuring plans

   $ 1,117   $ 649   $ 1,015   $ (1,050 ) $ (12 ) $ 1,070   $ 8,366   $ 8,572  
                                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                                   

In Balance Sheets:

                                                  

Accrued restructuring

   $ 901                           $ 828              
                                               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Other liabilities

   $ 216                           $ 242              
                                               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

  • 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. As of April 30, 2014, HP estimated that it would eliminate approximately 34,000 positions in connection with the 2012 Plan through fiscal 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. As of April 30, 2014, HP estimated that it would recognize approximately $4.0 billion in aggregate charges in connection with the 2012 Plan.

        In May 2014, HP increased the previously estimated 34,000 positions to be eliminated under the 2012 Plan by an additional 11,000 to 16,000 as HP continues to optimize the workforce and reengineer business processes to be more competitive and meet its objectives. HP estimates it will recognize an additional charge of approximately $500 million based on the low-end of the estimated headcount increase. As a result, as of July 31, 2014, HP estimated that it will eliminate approximately 45,000 to 50,000 positions in connection with the 2012 Plan, including those employees who have exited the company as part of voluntary EER programs in the United States and in certain other countries. HP expects a total of 41,000 positions to be eliminated by the end of fiscal 2014, with the remainder to be eliminated in fiscal 2015. As of July 31, 2014, HP estimated that it would recognize approximately $4.5 billion in aggregate charges in connection with the 2012 Plan based on the low-end of the estimated headcount reduction. HP expects to record these charges through the end of HP's fiscal 2014 as the accounting recognition criteria are met. HP expects to incur costs of approximately $4.0 billion related to workforce reductions and approximately $500 million related to infrastructure, including data center and real estate consolidation, and other items. As of July 31, 2014, HP had eliminated approximately 36,000 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 were substantially completed as of July 31, 2014. Severance- and infrastructure-related cash payments associated with the other plans are expected to be paid out through fiscal 2019.