Taxes on Earnings (Tables)

12 Months Ended

Oct. 31, 2014

Income Taxes

Schedule of domestic and foreign components of earnings (loss) before taxes

	For the fiscal years ended October 31
	2014		2013		2012
	In millions
U.S.	$	2,565	$	2,618	$	(3,192	)
Non-U.S.		3,992		3,892		(8,741	)
	$	6,557	$	6,510	$	(11,933	)

Schedule of provision for (benefit from) taxes on earnings

	For the fiscal years ended October 31
	2014			2013			2012
	In millions
U.S. federal taxes:
Current	$	381		$	475		$	330
Deferred		210			(666	)		81
Non-U.S. taxes:
Current		984			1,275			1,139
Deferred		(42	)		89			(787	)
State taxes:
Current		212			57			(41	)
Deferred		(201	)		167			(5	)
	$	1,544		$	1,397		$	717

Schedule of differences between the U.S. federal statutory income tax rate and effective tax rate

	For the fiscal years ended October 31
	2014			2013			2012(1)
U.S. federal statutory income tax rate		35.0	%		35.0	%		35.0	%
State income taxes, net of federal tax benefit		0.4	%		0.1	%		0.5	%
Lower rates in other jurisdictions, net		(12.9	)%		(24.5	)%		13.9	%
Valuation allowance		1.7	%		3.8	%		(14.0	)%
Nondeductible goodwill		—			—			(40.3	)%
Uncertain tax positions		(2.3	)%		4.1	%		(1.4	)%
Other, net		1.6	%		3.0	%		0.3	%
		23.5	%		21.5	%		(6.0	)%

(1) Positive numbers represent tax benefits and negative numbers represent tax expense as HP recorded income tax expense on a pretax loss.

Schedule of reconciliation of gross unrecognized tax benefits

	As of October 31
	2014			2013			2012
	In millions
Balance at beginning of year	$	3,484		$	2,573		$	2,118
Increases:
For current year's tax positions		304			290			209
For prior years' tax positions		593			997			651
Decreases:
For prior years' tax positions		(125	)		(146	)		(321	)
Statute of limitations expiration		(46	)		(11	)		(1	)
Settlements with taxing authorities		(82	)		(219	)		(83	)
Balance at end of year	$	4,128		$	3,484		$	2,573

Schedule of significant components of deferred tax assets and deferred tax liabilities

	As of October 31
	2014					2013
	Deferred Tax Assets			Deferred Tax Liabilities		Deferred Tax Assets			Deferred Tax Liabilities
	In millions
Loss carryforwards	$	9,476		$	—	$	9,807		$	—
Credit carryforwards		2,377			—		4,261			—
Unremitted earnings of foreign subsidiaries		—			7,828		—			7,469
Inventory valuation		152			8		128			13
Intercompany transactions—profit in inventory		136			—		125			—
Intercompany transactions—excluding inventory		4,403			—		1,923			—
Fixed assets		383			74		289			72
Warranty		616			—		622			—
Employee and retiree benefits		2,790			57		2,350			11
Accounts receivable allowance		107			1		185			1
Intangible assets		212			596		224			886
Restructuring		354			—		340			—
Deferred revenue		1,143			12		1,119			19
Other		1,573			1,145		1,443			759
Gross deferred tax assets and liabilities		23,722			9,721		22,816			9,230
Valuation allowance		(11,915	)		—		(11,390	)		—
Net deferred tax assets and liabilities	$	11,807		$	9,721	$	11,426		$	9,230

Schedule of current and long-term deferred tax assets and liabilities

	As of October 31
	2014			2013
	In millions
Current deferred tax assets	$	2,754		$	3,893
Current deferred tax liabilities		(284	)		(375	)
Long-term deferred tax assets		740			1,346
Long-term deferred tax liabilities		(1,124	)		(2,668	)
Net deferred tax assets net of deferred tax liabilities	$	2,086		$	2,196

Schedule of tax credit carryforwards

	Carryforward		Valuation Allowance		Initial Year of Expiration
	In millions
U.S. foreign tax credits	$	1,321	$	47		2021
U.S. research and development and other credits		662		—		2018
Tax credits in state and foreign jurisdictions		394		204		2015
Balance at end of year	$	2,377	$	251

Schedule of valuation allowance balance

	As of October 31
	2014		2013			2012
	In millions
Balance at beginning of year	$	11,390	$	10,223		$	9,057
Income tax expense		184		1,644			865
Other comprehensive income, currency translation and charges to other accounts		341		(477	)		301
Balance at end of year	$	11,915	$	11,390		$	10,223