XML 49 R32.htm IDEA: XBRL DOCUMENT v3.10.0.1

Taxes on Earnings (Tables)

12 Months Ended

Oct. 31, 2018

Income Tax Disclosure [Abstract]

Schedule of Domestic and Foreign Components of Earnings

The domestic and foreign components of earnings from continuing operations before taxes were as follows:

	For the fiscal years ended October 31
	2018				2017				2016
	In millions
U.S.	$	242			$	(14	)		$	468
Non-U.S.	2,771				3,290				3,293
	$	3,013			$	3,276			$	3,761

Schedule of (Benefit from) Provision for Taxes on Earnings

The (benefit from) provision for taxes on earnings from continuing operations was as follows:

	For the fiscal years ended October 31
	2018				2017				2016
	In millions
U.S. federal taxes:
Current	$	751			$	189			$	439
Deferred	(3,132		)		197				470
Non-U.S. taxes:
Current	528				302				288
Deferred	(563		)		4				(123		)
State taxes:
Current	61				20				(35		)
Deferred	41				38				56
	$	(2,314	)		$	750			$	1,095

Schedule of Differences Between U.S. Federal Statutory Income Tax Rate and HP's Effective Tax Rate

The differences between the U.S. federal statutory income tax rate and HP’s effective tax rate were as follows:

	For the fiscal years ended October 31
	2018			2017			2016
U.S. federal statutory income tax rate from continuing operations	23.3	%		35.0	%		35.0	%
State income taxes from continuing operations, net of federal tax benefit	0.5	%		1.4	%		1.1	%
Lower rates in other jurisdictions, net	(10.9	)%		(13.2	)%		(9.3	)%
U.S. Tax Reform impacts	(35.8	)%		—	%		—	%
Research and development (“R&D”) credit	(0.7	)%		(0.5	)%		(2.4	)%
Valuation allowances	(9.3	)%		(1.9	)%		(1.2	)%
Uncertain tax positions and audit settlements	(50.3	)%		0.4	%		11.7	%
Indemnification related items	5.2	%		(0.3	)%		(4.1	)%
Other, net	1.2	%		2.0	%		(1.7	)%
	(76.8	)%		22.9	%		29.1	%

Reconciliation of Unrecognized Tax Benefits

A reconciliation of unrecognized tax benefits is as follows:

	As of October 31
	2018				2017				2016
	In millions
Balance at beginning of year	$	10,808			$	10,858			$	6,546
Increases:
For current year’s tax positions	66				52				468
For prior years’ tax positions	101				85				4,004
Decreases:
For prior years’ tax positions	(248		)		(181		)		(62		)
Statute of limitations expirations	(3		)		(1		)		—
Settlements with taxing authorities	(2,953		)		(5		)		(98		)
Balance at end of year	$	7,771			$	10,808			$	10,858

Schedule of Significant Components of Deferred Tax Assets and Deferred Tax Liabilities

The significant components of deferred tax assets and deferred tax liabilities were as follows:

	As of October 31
	2018				2017
	In millions
Deferred Tax Assets
Loss and credit carryforwards	$	8,204			$	9,914
Intercompany transactions—excluding inventory	994				1,901
Fixed assets	151				256
Warranty	194				219
Employee and retiree benefits	401				519
Deferred Revenue	164				231
Other	422				511
Gross Deferred Tax Assets	10,530				13,551
Valuation allowances	(7,906		)		(8,807		)
Net Deferred Tax Assets	2,624				4,744
Deferred Tax Liabilities
Unremitted earnings of foreign subsidiaries	(31		)		(5,554		)
Intangible assets	(229		)		(209		)
Other	(33		)		(49		)
Total Deferred Tax Liabilities	(293		)		(5,812		)
Net Deferred Tax Assets (Liabilities)	$	2,331			$	(1,068	)

 Long-term deferred tax assets and liabilities included in the Consolidated Balance Sheets as follows:

	As of October 31
	2018				2017
	In millions
Long-term deferred tax assets	$	2,431			$	342
Long-term deferred tax liabilities	(100		)		(1,410		)
Total	$	2,331			$	(1,068	)

Schedule of Deferred Tax Assets for Net Operating Loss Carryforwards

 As of October 31, 2018, HP had recorded deferred tax assets for net operating loss carryforwards as follows:

	Gross NOLs				Deferred Taxes on NOLs				Valuation allowance			Initial Year of Expiration
	In millions
Federal	$	456			$	96			—			2023
State	2,644				163				(71		)	2018
Foreign	26,438				7,743				(7,247		)	2020
Balance at end of year	$	29,538			$	8,002			$	(7,318	)

Schedule of Deferred Tax Assets for Various Tax Credit Carryforwards

	Gross NOLs				Deferred Taxes on NOLs				Valuation allowance			Initial Year of Expiration
	In millions
Federal	$	456			$	96			—			2023
State	2,644				163				(71		)	2018
Foreign	26,438				7,743				(7,247		)	2020
Balance at end of year	$	29,538			$	8,002			$	(7,318	)

As of October 31, 2018, HP had recorded deferred tax assets for various tax credit carryforwards as follows:

	Carryforward				Valuation Allowance				Initial Year of Expiration
	In millions
U.S. foreign tax credits	$	7			$	—			2027
U.S. R&D and other credits	3				—				2020
Tax credits in state and foreign jurisdictions	313				(94		)		2021
Balance at end of year	$	323			$	(94	)

Schedule of Deferred Tax Asset Valuation Allowance and Changes

The deferred tax asset valuation allowance and changes were as follows:

	As of October 31
	2018				2017				2016
	In millions
Balance at beginning of year	$	8,807			$	8,520			$	7,114
Income tax (benefit) expense	(897		)		297				1,421
Other comprehensive income, currency translation and charges to other accounts	(4		)		(10		)		(15		)
Balance at end of year	$	7,906			$	8,807			$	8,520

X

- References

No definition available.

+ Details

Name:	us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32639-109319

+ Details

Name:	us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32537-109319

+ Details

Name:	us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32687-109319

+ Details

Name:	us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of income before income tax between domestic and foreign jurisdictions.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(h)(1)(i))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

+ Details

Name:	us-gaap_ScheduleOfIncomeBeforeIncomeTaxDomesticAndForeignTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the change in unrecognized tax benefits.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 55
-Paragraph 217
-URI http://asc.fasb.org/extlink&oid=109238393&loc=d3e36027-109320

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 15A
-URI http://asc.fasb.org/extlink&oid=84230637&loc=SL6600010-109319

+ Details

Name:	us-gaap_ScheduleOfUnrecognizedTaxBenefitsRollForwardTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of pertinent information, such as tax authority, amounts, and expiration dates, of net operating loss carryforwards, including an assessment of the likelihood of utilization.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32559-109319

+ Details

Name:	us-gaap_SummaryOfOperatingLossCarryforwardsTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of tax credit carryforwards available to reduce future taxable income, including amounts, expiration dates, limitations on use and the related deferred tax assets and valuation allowances.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32559-109319

+ Details

Name:	us-gaap_SummaryOfTaxCreditCarryforwardsTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of valuation allowances to reduce deferred tax assets to net realizable value, including identification of the deferred tax asset more likely than not will not be fully realized and the corresponding amount of the valuation allowance.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32537-109319

+ Details

Name:	us-gaap_SummaryOfValuationAllowanceTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration