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HPE Next | 9 Months Ended
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Jul. 31, 2018
Restructuring and Related Activities [Abstract] |
HPE Next | Restructuring Summary of Restructuring Plans On September 14, 2015, former Parent's Board of Directors approved a restructuring plan (the "2015 Plan") in connection with the Separation. On May 23, 2012, former Parent 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 October 31, 2017, the 2015 and 2012 Plans were complete. Restructuring Activity In connection with the 2015 and 2012 Plans, restructuring charges of $2 million and $152 million have been recorded by the Company for the three months ended July 31, 2018 and 2017, respectively, and $14 million and $304 million for the nine months ended July 31, 2018 and 2017, respectively, based on restructuring activities impacting the Company's employees and infrastructure. For details on restructuring charges related to HPE Next, see Note 5, "HPE Next". Restructuring activities related to the Company's employees and infrastructure for the 2015 and 2012 Plans are presented in the table below:
| 2015 Plan |  | 2012 Plan |  |
| Employee Severance |  | Infrastructure and other |  | Employee Severance and EER |  | Infrastructure and other |  | Total
| In millions
Liability as of October 31, 2017 | $ | 219 |  |  | $ | 17 |  |  | $ | 16 |  |  | $ | 2 |  |  | $ | 254 |
Charges | 5 |  |  | (2 | ) |  | 12 |  |  | (1 | ) |  | 14 |
Cash payments | (147 | ) |  | (8 | ) |  | (12 | ) |  | — |  |  | (167 | )
Non-cash items | (3 | ) |  | 4 |  |  | (1 | ) |  | — |  |  | — |
Liability as of July 31, 2018 | $ | 74 |  |  | $ | 11 |  |  | $ | 15 |  |  | $ | 1 |  |  | $ | 101 |
Total costs incurred to date, as of July 31, 2018 | $ | 747 |  |  | $ | 78 |  |  | $ | 1,267 |  |  | $ | 145 |  |  | $ | 2,237 |
Total costs expected to be incurred, as of July 31, 2018 | $ | 747 |  |  | $ | 78 |  |  | $ | 1,267 |  |  | $ | 145 |  |  | $ | 2,237 |
The current restructuring liabilities related to the plans in the table above, reported in Accrued restructuring in the Condensed Consolidated Balance Sheets at July 31, 2018 and October 31, 2017, were $31 million and $158 million, respectively. The non-current restructuring liabilities related to the plans in the table above, reported in Other liabilities in the Condensed Consolidated Balance Sheets at July 31, 2018 and October 31, 2017, were $70 million and $96 million, respectively. HPE Next Transformation Costs The HPE Next initiative is expected to be implemented through fiscal 2020, during which time the Company expects to incur expenses for workforce reductions, to upgrade and simplify its IT infrastructure, and for other non-labor actions. These costs will be partially offset by proceeds resulting from real estate sales. During the three and nine months ended July 31, 2018, the Company incurred $131 million and $499 million in net charges associated with the HPE Next initiative, which were recorded within Transformation costs in the Condensed Consolidated Statements of Earnings and include the following:
| Three months ended July 31, 2018 |  | Nine months ended July 31, 2018
| In millions
Program management(1) | $ | 28 |  |  | $ | 82 |
IT costs | 38 |  |  | 107 |
Restructuring charges | 129 |  |  | 385 |
Gain on real estate sales | (77 | ) |  | (114 | )
Other | 13 |  |  | 39 |
Total | $ | 131 |  |  | $ | 499 |
(1) | Primarily consists of consulting fees and other direct costs attributable to the design and execution of the HPE Next initiative.
Restructuring Plan On October 16, 2017, the Company's Board of Directors approved a restructuring plan in connection with the HPE Next initiative (the "HPE Next Plan"), which will be implemented through fiscal 2020. The changes to the workforce will vary by country, based on business needs, local legal requirements and consultations with employee work councils and other employee representatives, as appropriate, and are expected to be completed during fiscal 2019. As of July 31, 2018, the Company estimates that it will incur aggregate pre-tax restructuring charges of approximately $0.9 billion through fiscal 2020 in connection with the HPE Next Plan, of which approximately $0.7 billion relates to workforce reductions and approximately $0.2 billion relates to infrastructure, primarily real estate site exits.
| Employee Severance |  | Infrastructure and other
| In millions
Liability as of October 31, 2017 | $ | 296 |  |  | $ | — |
Charges | 347 |  |  | 38 |
Cash payments | (365 | ) |  | (8 | )
Non-cash items | (13 | ) |  | (8 | )
Liability as of July 31, 2018 | $ | 265 |  |  | $ | 22 |
Total costs incurred to date, as of July 31, 2018 | $ | 643 |  |  | $ | 38 |
Total costs expected to be incurred, as of July 31, 2018 | $ | 750 |  |  | $ | 180 |
As of July 31, 2018 and October 31, 2017, the current restructuring liability related to the HPE Next Plan, reported in Accrued restructuring in the Condensed Consolidated Balance Sheets, was $225 million and $287 million, respectively. The non-current restructuring liability related to the HPE Next Plan, reported in Other liabilities in the Condensed Consolidated Balance Sheets as of July 31, 2018 and October 31, 2017 was $62 million and $9 million, respectively.

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- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -URI http://asc.fasb.org/topic&trid=2175745 + Details
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