Restructuring and Other Charges

Summary of Restructuring Plans

HP’s restructuring activities in fiscal years 2018, 2017 and 2016 summarized by plan were as follows:



	Fiscal 2017 Plan						Fiscal 2015 Plan						Fiscal 2012 Plan
	Severance			Infrastructure and other⁽¹⁾			Severance and PRP⁽²⁾			Infrastructure and other			Severance			Infrastructure and other			Total
	In millions
Accrued balance as of October 31, 2015	$	—		$	—		$	39		$	—		$	21		$	3		$	63
Charges	24			—			117			27			7			—			175
Cash payments	—			—			(122		)	(4		)	(30		)	(1		)	(157		)
Non-cash and other adjustments	—			—			(13		)	(19		)	9			—			(23		)
Accrued balance as of October 31, 2016	24			—			21			4			7			2			58
Charges	117			94			15			—			1			—			227
Cash payments	(68		)	(23		)	(36		)	(2		)	(5		)	—			(134		)
Non-cash and other adjustments	3			(52		)	6			—			—			—			(43		)
Accrued balance as of October 31, 2017	76			19			6			2			3			2			108
Charges (reversals)	112			(13		)	—			—			—			—			99
Cash payments	(136		)	(35		)	(1		)	(2		)	(1		)	—			(175		)
Non-cash and other adjustments	(2		)	29			—			—			—			—			27
Accrued balance as of October 31, 2018	$	50		$	—		$	5		$	—		$	2		$	2		$	59
Total costs incurred to date as of October 31, 2018	$	253		$	81		$	171		$	27		$	1,075		$	44		$	1,651

Reflected in Consolidated Balance Sheets:
Other accrued liabilities	$	50		$	—		$	5		$	—		$	2		$	1		$	58
Other non-current liabilities	$	—		$	—		$	—		$	—		$	—		$	1		$	1


⁽¹⁾	Infrastructure and other includes adjustment of carrying amount of held for sale assets of $52 million in fiscal year 2017 and reversal of adjustments of $29 million for the fiscal year 2018 associated with the consolidation of manufacturing into global hubs.


⁽²⁾	PRP represents Phased Retirement Program.

Fiscal 2017 Plan

On October 10, 2016, HP’s Board of Directors approved a restructuring plan (the “Fiscal 2017 Plan”) which HP expected would be implemented through fiscal year 2019.

On May 26, 2018, HP’s Board of Directors approved amending the Fiscal 2017 Plan. HP expects approximately 4,500 to 5,000 employees to exit by the end of fiscal year 2019. HP estimates that it will incur aggregate pre-tax charges of approximately $700 million relating to labor and non-labor actions. HP estimates that approximately half of the expected cumulative pre-tax costs will relate to severance and the remaining costs will relate to infrastructure, non-labor actions and other charges.

Fiscal 2015 Plan

In connection with the Separation, on September 14, 2015, HP’s Board of Directors approved a cost savings plan (the “Fiscal 2015 Plan”) which included labor and non-labor actions. The Fiscal 2015 Plan was considered substantially complete as of October 31, 2016 and HP does not expect any further activity associated with this plan.

Fiscal 2012 Plan

HP initiated a restructuring plan in fiscal year 2012 (the “Fiscal 2012 Plan”), which included severance and infrastructure costs. The Fiscal 2012 Plan was considered substantially complete as of October 31, 2016 and HP does not expect any further activity associated with this plan.

Other charges

Other charges include non-recurring costs, including those as a result of the Separation, and are distinct from ongoing operational costs. These costs primarily relate to information technology costs such as advisory, consulting and non-recurring labor costs. HP incurred $33 million, $135 million and $30 million of other charges in fiscal year 2018, 2017 and 2016, respectively.