Restructuring

6 Months Ended

Apr. 30, 2016

Restructuring

Restructuring

Note 4: Restructuring

Fiscal 2015 Plan

        In connection with the Separation, on September 14, 2015, HP's Board of Directors approved a cost saving plan which includes labor and non-labor actions which will be implemented through fiscal 2016. HP estimates that it will incur aggregate pre-tax charges up to $300 million which relate to workforce reductions, real estate consolidation and other non-labor charges. HP expects approximately 3,000 employees will exit by the end of fiscal 2016.

        During the three months ended April 30, 2016, HP announced a voluntary phased retirement program ("PRP") for certain qualified employees. Qualified employees will retire gradually over a defined period of time and at the end of which they will receive severance and certain benefits. HP recognized charges aggregating $29 million during the three and six months ended April 30, 2016 related to the PRP.

        The following table summarizes the cost saving plan activities in the three and six months ended April 30, 2016.

															As of April 30, 2016
			Three months ended April 30, 2016 Charges		Six months ended April 30, 2016
	Accrued Balance, October 31, 2015												Accrued Balance, April 30, 2016		Total Costs Incurred to Date		Total Expected Costs to Be Incurred
					Charges		Cash Payments			Non-Cash and Other Adjustments
			In millions
Fiscal 2015 Plan
Severance and PRP	$	39	$	72	$	87	$	(42	)	$	(10	)	$	74	$	125	$	240
Infrastructure and other		—		26		31		(1	)		(29	)		1		31		60
Total	$	39	$	98	$	118	$	(43	)	$	(39	)	$	75	$	156	$	300

Fiscal 2012 Plan

        The severance and infrastructure cash payments associated with the restructuring plan (the "2012 Plan") initiated by HP in fiscal 2012 are expected to be paid through fiscal 2021. For the three and six months ended April 30, 2016, HP recognized $2 million in total severance charges in connection with the 2012 Plan. Accrued expenses related to the 2012 Plan, which were included in "Other accrued liabilities" and "Other non-current liabilities," totaled $11 million as of April 30, 2016.