Stockholders' Equity

6 Months Ended

Apr. 30, 2016

Stockholders' Equity

Stockholders' Equity

Note 12: Stockholders' Equity

Share Repurchase Program

        HP's share repurchase program authorizes both open market and private repurchase transactions. During the three and six months ended April 30, 2016, HP executed share repurchases of 28 million shares and 96 million shares, respectively. Shares traded during the three months ended April 30, 2016 included 0.7 million shares settled in May 2016. During the three and six months ended April 30, 2016, HP settled total shares for $0.3 billion and $1.1 billion, respectively. During the three and six months ended April 30, 2015, HP executed share repurchases of 18 million shares and 54 million shares and settled total shares for $0.6 billion and for $2.2 billion, respectively.

        The shares repurchased in the six months ended April 30, 2016 and 2015 were all open market repurchase transactions. As of April 30, 2016, HP had remaining authorization of $0.9 billion for future share repurchases under the $10.0 billion repurchase authorization approved by HP's Board of Directors on July 21, 2011.

Tax effects related to Other Comprehensive Loss

	Three months ended April 30						Six months ended April 30
	2016			2015			2016			2015
	In millions
Tax effects on change in unrealized losses on available-for-sale securities:
Tax benefit on unrealized losses arising during the period	$	—		$	18		$	—		$	3
Tax effects on change in unrealized components of cash flow hedges:
Tax benefit (provision) on unrealized (losses) gains arising during the period		40			20			51			(181	)
Tax provision on gains reclassified into earnings		15			157			23			255
		55			177			74			74
Tax effects on change in unrealized components of defined benefit plans:
Tax benefit on losses arising during the period		2			—			2			—
Tax (benefit) provision on amortization of actuarial loss and prior service benefit		(3	)		1			(6	)		(13	)
Tax provision on Settlements and other		(1	)		(1	)		(1	)		(1	)
		(2	)		—			(5	)		(14	)
Tax benefit (provision) on change in cumulative translation adjustment		—			3			—			(44	)
Tax benefit on other comprehensive loss	$	53		$	198		$	69		$	19

Changes and reclassifications related to Other Comprehensive Loss, net of taxes

	Three months ended April 30						Six months ended April 30
	2016			2015			2016			2015
	In millions
Other comprehensive loss, net of taxes:
Change in unrealized gains (losses) on available-for-sale securities:
Unrealized gains (losses) arising during the period	$	1		$	(41	)	$	1		$	(10	)
Change in unrealized components of cash flow hedges:
Unrealized (losses) gains arising during the period		(105	)		2			11			432
Gains reclassified into earnings(1)		(47	)		(399	)		(73	)		(635	)
		(152	)		(397	)		(62	)		(203	)
Change in unrealized components of defined benefit plans:
Losses arising during the period		(2	)		—			(2	)		—
Amortization of actuarial loss and prior service benefit(2)		9			105			18			203
Settlements and other		—			3			—			1
		7			108			16			204
Change in cumulative translation adjustment		—			3			—			(112	)
Other comprehensive loss, net of taxes	$	(144	)	$	(327	)	$	(45	)	$	(121	)

(1) Reclassification of pre-tax (gains) losses on cash flow hedges into the Consolidated Condensed Statements of Earnings was as follows:

	Three months ended April 30						Six months ended April 30
	2016			2015			2016			2015
	In millions
Net revenue	$	(88	)	$	(410	)	$	(166	)	$	(665	)
Cost of revenue		32			44			72			72
Operating expenses		—			1			—			2
Interest and other, net		(6	)		—			(2	)		—
Continuing Operations		(62	)		(365	)		(96	)		(591	)
Discontinued Operations		—			(191	)		—			(299	)
Total	$	(62	)	$	(556	)	$	(96	)	$	(890	)

(2) These components are included in the computation of net pension and post-retirement benefit (credit) cost in Note 5, "Retirement and Post-Retirement Benefit Plans".

        The components of accumulated other comprehensive loss, net of taxes and changes were as follows:

	Six months ended April 30, 2016
	Net unrealized gains (losses) on available-for-sale securities			Net unrealized gains (losses) on cash flow hedges			Unrealized components of defined benefit plans			Cumulative translation adjustment			Accumulated other comprehensive loss
	In millions
Balance at beginning of period	$	66		$	(39	)	$	(5,355	)	$	(974	)	$	(6,302	)
Separation of Hewlett Packard Enterprise		(55	)		(68	)		4,230			974			5,081
Other comprehensive income before reclassifications		1			11			(2	)		—			10
Reclassifications of (gains) losses into earnings		—			(73	)		18			—			(55	)
Balance at end of period	$	12		$	(169	)	$	(1,109	)	$	—		$	(1,266	)