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Restructuring and Other Charges

6 Months Ended

Apr. 30, 2021

Restructuring and Related Activities [Abstract]

Restructuring and Other Charges

Restructuring and Other Charges

Summary of Restructuring Plans

HP’s restructuring activities for the six months ended April 30, 2021 and 2020 summarized by plan were as follows:

			Fiscal 2020 Plan
			Severance and EER						Non-labor						Other prior-year Plans						Total
			In millions
Accrued balance as of October 31, 2020			$	55					$	—					$	12					$	67
Charges			136						15						—						151
Cash payments			(92)						(3)						(10)						(105)
Non-cash and other adjustments			1						(12)						—						(11)
Accrued balance as of April 30, 2021			$	100					$	—					$	2					$	102
Total costs incurred to date as of April 30, 2021			$	564					$	25					$	1,817					$	2,406
Reflected in Consolidated Condensed Balance Sheets
Other current liabilities			$	100					$	—					$	2					$	102
Accrued balance as of October 31, 2019			$	76					$	—					$	66					$	142
Charges			282						2						1						285
Cash payments			(205)						(2)						(40)						(247)
Non-cash and other adjustments			(49)			(1)			—						(3)						(52)
Accrued balance as of April 30, 2020			$	104					$	—					$	24					$	128

(1)Includes reclassification of liability related to the Enhanced Early Retirement (“EER”) plan of $44 million for certain healthcare and medical savings account benefits to pension and post-retirement plans.

HP’s restructuring charges for the three months ended April 30, 2021 summarized by the plans outlined below were as follows:

			Fiscal 2020 Plan
			Severance and EER						Non-labor												Total
			In millions
For the three months ended April 30, 2021			$	30					$	4											$	34

Fiscal 2020 Plan

On September 30, 2019, HP’s Board of Directors approved the Fiscal 2020 Plan intended to optimize and simplify its operating model and cost structure that HP expects will be implemented through fiscal 2022. HP expects to reduce global headcount by approximately 7,000 to 9,000 employees through a combination of employee exits and voluntary EER. HP estimates that it will incur pre-tax charges of approximately $1.0 billion relating to labor and non-labor actions. HP now expects to incur approximately $0.8 billion primarily in labor costs related to workforce reductions and the remaining costs will relate to non-labor actions and other charges.

Other charges

Other charges include non-recurring costs, including those as a result of information technology rationalization efforts and proxy contest activities, and are distinct from ongoing operational costs. These costs primarily relate to third-party legal, professional services and other non-recurring costs. For the three and six months ended April 30, 2021, HP incurred $5 million and $9 million of other charges, respectively. For the three and six months ended April 30, 2020, HP incurred $53 million and $87 million of other charges, respectively.

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- References

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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://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 420
-URI http://asc.fasb.org/topic&trid=2175745

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