Stockholders' Equity Taxes related to Other Comprehensive Loss | | | | | | | | | | | | | | Fiscal years ended October 31, | | 2016 | | 2015 | | 2014 | | In millions | Taxes on change in net unrealized (losses) gains on available-for-sale securities: | |
| | |
| | |
| Tax benefit (provision) on net unrealized (losses) gains arising during the period | $ | 2 |
| | $ | 2 |
| | $ | (1 | ) | Tax benefit on losses reclassified into earnings | (2 | ) | | — |
| | — |
| | — |
|
| 2 |
|
| (1 | ) | Taxes on change in net unrealized (losses) gains on cash flow hedges: | |
| | |
| | |
| Tax provision on net unrealized gains arising during the period | (14 | ) | | (69 | ) | | (32 | ) | Tax provision on net (gains) losses reclassified into earnings | 25 |
| | 76 |
| | 1 |
| | 11 |
|
| 7 |
|
| (31 | ) | Taxes on change in unrealized components of defined benefit plans: | |
| | |
| | |
| Tax benefit on losses arising during the period | 63 |
| | 30 |
| | 58 |
| Tax benefit on amortization of actuarial loss and prior service benefit | (20 | ) | | (10 | ) | | (6 | ) | Tax provision on curtailments, settlements and other | (1 | ) | | — |
| | (3 | ) | Tax benefit on Plans transferred from former Parent during the period | — |
| | 255 |
| | — |
| | 42 |
|
| 275 |
|
| 49 |
| Taxes on change in cumulative translation adjustment: | | | | | | Tax on cumulative translation adjustment arising during the period | 20 |
| | (73 | ) | | (27 | ) | Tax on release of cumulative translation adjustment as a result of H3C and MphasiS divestitures | (22 | ) | | — |
| | — |
| | (2 | ) | | (73 | ) | | (27 | ) | Tax benefit (provision) on other comprehensive loss | $ | 51 |
|
| $ | 211 |
|
| $ | (10 | ) |
Changes and reclassifications related to Other Comprehensive Loss, net of taxes | | | | | | | | | | | | | | Fiscal years ended October 31, | | 2016 | | 2015 | | 2014 | | In millions | Other comprehensive loss, net of taxes: | |
| | |
| | |
| Change in net unrealized (losses) gains on available-for-sale securities: | |
| | |
| | |
| Net unrealized (losses) gains arising during the period | $ | (2 | ) | | $ | (8 | ) | | $ | 4 |
| Losses (gains) reclassified into earnings | 1 |
| | — |
| | (1 | ) | | (1 | ) | | (8 | ) | | 3 |
| Change in net unrealized (losses) gains on cash flow hedges: | |
| | |
| | |
| Net unrealized gains arising during the period | 212 |
| | 412 |
| | 79 |
| Net (gains) losses reclassified into earnings(1) | (245 | ) | | (404 | ) | | 61 |
| | (33 | ) | | 8 |
| | 140 |
| Change in unrealized components of defined benefit plans: | |
| | |
| | |
| Losses arising during the period | (1,714 | ) | | (352 | ) | | (736 | ) | Amortization of actuarial loss and prior service benefit(2) | 264 |
| | 204 |
| | 76 |
| Curtailments, settlements and other | (19 | ) | | 4 |
| | 15 |
| Plans transferred from former Parent during the period | — |
| | (2,352 | ) | | — |
| Merged into former Parent's Shared plan during the period | — |
| | — |
| | 61 |
| | (1,469 | ) | | (2,496 | ) | | (584 | ) | Change in cumulative translation adjustment: | | | | | | Cumulative translation adjustment arising during the period | (134 | ) | | (271 | ) | | (112 | ) | Release of cumulative translation adjustment as a result of H3C and MphasiS divestitures | 53 |
| | — |
| | — |
| | (81 | ) | | (271 | ) | | (112 | ) | Other comprehensive loss, net of taxes | $ | (1,584 | ) | | $ | (2,767 | ) | | $ | (553 | ) |
_______________________________________________________________________________ | | (1) | Reclassification of pre-tax (gains) losses on cash flow hedges into the Consolidated and Combined Statements of Earnings was as follows: |
| | | | | | | | | | | | | | 2016 | | 2015 | | 2014 | | In millions | Net revenue | $ | (19 | ) | | $ | (276 | ) | | $ | 4 |
| Cost of products | — |
| | (6 | ) | | (3 | ) | Other operating expenses | — |
| | 4 |
| | 9 |
| Gain on MphasiS divestiture | (8 | ) | | — |
| | — |
| Interest and other, net | (243 | ) | | (202 | ) | | 50 |
| | $ | (270 | ) |
| $ | (480 | ) |
| $ | 60 |
|
| | (2) | These components are included in the computation of net pension and post-retirement benefit (credit) cost in Note 4, "Retirement and Post-Retirement Benefit Plans". |
The components of accumulated other comprehensive loss, net of taxes as of October 31, 2016 and changes during fiscal 2016 were as follows: | | | | | | | | | | | | | | | | | | | | | | 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 | $ | 55 |
| | $ | 68 |
| | $ | (4,173 | ) | | $ | (965 | ) | | $ | (5,015 | ) | Other comprehensive (loss) income before reclassifications | (2 | ) | | 212 |
| | (1,733 | ) | | (134 | ) | | (1,657 | ) | Reclassifications of (gains) losses into earnings | 1 |
| | (245 | ) | | 264 |
| | 53 |
| | 73 |
| Balance at end of period | $ | 54 |
|
| $ | 35 |
|
| $ | (5,642 | ) |
| $ | (1,046 | ) |
| $ | (6,599 | ) |
Dividends On November 11, 2015, the Board of Directors of the Company authorized a regular quarterly cash dividend for its common stock. The stockholders of HPE common stock are entitled to receive dividends when and as declared by HPE's Board of Directors. Dividends declared were $0.22 per common share in fiscal 2016. Share Repurchase Program On October 13, 2015, the Board of Directors of the Company announced the authorization of a $3.0 billion share repurchase program. On May 24, 2016, the Board of Directors announced the authorization of an additional $3.0 billion under the share repurchase program. The Company's share repurchase program authorizes both open market and private repurchase transactions and does not have a specific expiration date. The Company may choose to repurchase shares when sufficient liquidity exists and the shares are trading at a discount relative to estimated intrinsic value. The Company entered into two separate accelerated share repurchase agreements ("ASR Agreements") with financial institutions in November 2015 and May 2016. Under the ASR agreements, the Company paid upfront amounts of $1,075 million and $1,450 million, respectively. For fiscal 2016, the Company retired a total of 158 million shares as a result of its share repurchase program, which included purchases of 148 million shares under the ASR Agreements with the remainder under open market repurchases. The 158 million shares were retired and recorded as a $2.7 billion reduction to stockholder's equity. The 148 million shares repurchased under the ASR agreements were repurchased based on the daily volume weighted-average stock price of the Company's common stock during the term of the transaction, plus transaction fees. As of October 31, 2016, the Company had remaining authorization of $3.3 billion for future share repurchases. |