
	As of April 30, 2021								As of October 31, 2020
	Cost		Gross Unrealized Gain		Gross Unrealized Loss		Fair Value		Cost		Gross Unrealized Gain		Gross Unrealized Loss		Fair Value
	In millions
Cash Equivalents:
Corporate debt	$	1,374	$	—	$	—	$	1,374	$	1,700	$	—	$	—	$	1,700
Financial institution instruments	—		—		—		—		59		—		—		59
Government debt	931		—		—		931		2,173		—		—		2,173
Total cash equivalents	2,305		—		—		2,305		3,932		—		—		3,932
Available-for-Sale Investments:
Corporate debt(1)	—		—		—		—		169		—		—		169
Financial institution instruments(1)	12		—		—		12		32		—		—		32
Government debt(1)	—		—		—		—		73		—		—		73
Mutual funds	44		19		—		63		42		16		—		58
Total available-for-sale investments	56		19		—		75		316		16		—		332
Total cash equivalents and available-for-sale investments	$	2,361	$	19	$	—	$	2,380	$	4,248	$	16	$	—	$	4,264

(1) HP classifies its marketable debt securities as Available-for-sale investments within Other current assets on the Consolidated Condensed Balance Sheets, including those with maturity dates beyond one year, based on their highly liquid nature and availability for use in current operations.

All highly liquid investments with original maturities of three months or less at the date of acquisition are considered cash equivalents. As of April 30, 2021 and October 31, 2020, the carrying amount of cash equivalents approximated fair value due to the short period of time to maturity. The estimated fair value of the available-for-sale investments may not be representative of values that will be realized in the future.

Non-marketable equity securities in privately held companies are included in Other non-current assets in the Consolidated Condensed Balance Sheets. These amounted to $48 million and $44 million as of April 30, 2021 and October 31, 2020, respectively.

HP determines credit losses on cash equivalents and available-for-sale debt securities at the individual security level. All instruments are considered investment grade. No credit-related or noncredit-related impairment losses were recorded for the three and six months ended April 30, 2021.

HP uses derivatives to offset business exposure to foreign currency and interest rate risk on expected future cash flows and on certain existing assets and liabilities. As part of its risk management strategy, HP uses derivative instruments, primarily forward contracts, interest rate swaps, total return swaps, treasury rate locks, forward starting swaps and, at times, option

contracts to hedge certain foreign currency, interest rate and, return on certain investment exposures. HP may designate its derivative contracts as fair value hedges or cash flow hedges and classifies the cash flows with the activities that correspond to the underlying hedged items. Additionally, for derivatives not designated as hedging instruments, HP categorizes those economic hedges as other derivatives. HP recognizes all derivative instruments at fair value in the Consolidated Condensed Balance Sheets.

As a result of its use of derivative instruments, HP is exposed to the risk that its counterparties will fail to meet their contractual obligations. Master netting agreements mitigate credit exposure to counterparties by permitting HP to net amounts due from HP to counterparty against amounts due to HP from the same counterparty under certain conditions. To further limit credit risk, HP has collateral security agreements that allow HP’s custodian to hold collateral from, or require HP to post collateral to, counterparties when aggregate derivative fair values exceed contractually established thresholds which are generally based on the credit ratings of HP and its counterparties. If HP’s or the counterparty’s credit rating falls below a specified credit rating, either party has the right to request full collateralization of the derivatives’ net liability position. The fair value of derivatives with credit contingent features in a net liability position was $258 million and $90 million as of April 30, 2021 and as of October 31, 2020, respectively, all of which were fully collateralized within two business days.

Under HP’s derivative contracts, the counterparty can terminate all outstanding trades following a covered change of control event affecting HP that results in the surviving entity being rated below a specified credit rating. This credit contingent provision did not affect HP’s financial position or cash flows as of April 30, 2021 and October 31, 2020.

For derivative instruments that are designated and qualify as fair value hedges, HP recognizes the change in fair value of the derivative instrument, as well as the offsetting change in the fair value of the hedged item, in Interest and other, net in the Consolidated Condensed Statements of Earnings in the period of change.

During the six months ended April 30, 2021, HP entered into an additional $125 million notional amount interest rate swap designated as fair value hedges, to convert a portion of its previously issued $1.15 billion fixed-rate debt to floating and terminated a previously issued interest rate swap with a notional amount of $250 million that were de-designated as fair value hedges of certain fixed-rate debt securities.

HP uses forward contracts, treasury rate locks, forward starting swaps and, at times, option contracts designated as cash flow hedges to protect against the foreign currency exchange and interest rate risks inherent in its forecasted net revenue, cost of revenue, operating expenses and debt issuance. HP’s foreign currency cash flow hedges mature predominantly within twelve months; however, hedges related to long-term procurement arrangements extend several years.

For derivative instruments that are designated and qualify as cash flow hedges, HP initially records changes in fair value of the derivative instrument in Accumulated other comprehensive loss as a separate component of stockholders’ deficit in the Consolidated Condensed Balance Sheets and subsequently reclassifies these amounts into earnings in the period during which the hedged transaction is recognized in earnings. HP reports the changes in the fair value of the derivative instrument in the same financial statement line item as changes in the fair value of the hedged item.

During the six months ended April 30, 2021, HP entered into a series of forward starting swap agreements with notional amounts totaling $750 million to hedge the exposure to variability in future cash flows resulting from changes in interest rates related to the anticipated issuance of long-term debt. These agreements were designated as cash flow hedges.

Other derivatives not designated as hedging instruments consist primarily of forward contracts used to hedge foreign currency-denominated balance sheet exposures. HP uses total return swaps to hedge its executive deferred compensation plan liability.

For derivative instruments not designated as hedging instruments, HP recognizes changes in fair value of the derivative instrument, as well as the offsetting change in the fair value of the hedged item, in Interest and other, net in the Consolidated Condensed Statements of Earnings in the period of change.

For interest rate swaps designated as fair value hedges, HP measures hedge effectiveness by offsetting the change in fair value of the hedged item with the change in fair value of the derivative. For foreign currency options, forward contracts and forward starting swaps designated as cash flow hedges, HP measures hedge effectiveness by comparing the cumulative change in fair value of the hedge contract with the cumulative change in fair value of the hedged item, both of which are based on forward rates.


	As of April 30, 2021										As of October 31, 2020
	Outstanding Gross Notional		Other Current Assets		Other Non-Current Assets		Other Current Liabilities		Other Non-Current Liabilities		Outstanding Gross Notional		Other Current Assets		Other Non-Current Assets		Other Current Liabilities		Other Non-Current Liabilities
	In millions
Derivatives designated as hedging instruments
Fair value hedges:
Interest rate contracts	$	750	$	2	$	—	$	—	$	9	$	875	$	4	$	—	$	—	$	3
Cash flow hedges:
Foreign currency contracts	16,783		72		9		242		82		15,661		148		30		199		37
Interest rate contracts	750		—		—		—		—		—		—		—		—		—
Total derivatives designated as hedging instruments	18,283		74		9		242		91		16,536		152		30		199		40
Derivatives not designated as hedging instruments
Foreign currency contracts	5,399		12		—		19		—		5,319		13		—		20		—
Other derivatives	150		2		—		—		—		142		—		—		3		—
Total derivatives not designated as hedging instruments	5,549		14		—		19		—		5,461		13		—		23		—
Total derivatives	$	23,832	$	88	$	9	$	261	$	91	$	21,997	$	165	$	30	$	222	$	40

HP recognizes all derivative instruments on a gross basis in the Consolidated Condensed Balance Sheets. HP does not offset the fair value of its derivative instruments against the fair value of cash collateral posted under its collateral security agreements. As of April 30, 2021 and October 31, 2020, information related to the potential effect of HP’s master netting agreements and collateral security agreements was as follows:


	In the Consolidated Condensed Balance Sheets
							Gross Amounts Not Offset
	Gross Amount Recognized (i)		Gross Amount Offset (ii)		Net Amount Presented (iii) = (i)–(ii)		Derivatives (iv)		Financial Collateral (v)			Net Amount (vi) = (iii)–(iv)–(v)
	In millions
As of April 30, 2021
Derivative assets	$	97	$	—	$	97	$	89	$	—	(1)	$	8
Derivative liabilities	$	352	$	—	$	352	$	89	$	316	(2)	$	(53)
As of October 31, 2020
Derivative assets	$	195	$	—	$	195	$	156	$	4	(1)	$	35
Derivative liabilities	$	262	$	—	$	262	$	156	$	130	(2)	$	(24)

(1)Represents the cash collateral posted by counterparties as of the respective reporting date for HP’s asset position, net of derivative amounts that could be offset, as of, generally, two business days prior to the respective reporting date.

(2)Represents the collateral posted by HP including any re-use of counterparty cash collateral as of the respective reporting date for HP’s liability position, net of derivative amounts that could be offset, as of, generally, two business days prior to the respective reporting date.


Derivative Instrument	Hedged Item	Location	Year	Total amounts of income/(expense) line items in the statement of financial performance in which the effects of fair value hedges are recorded		Gain/(loss) recognized in earnings on derivative instruments		Gain/(loss) recognized in earnings on hedged item
				In millions
Three months ended April 30
Interest rate contract	Fixed-rate debt	Interest and other, net	2021	$	(26)	$	(7)	$	7
			2020	$	—	$	10	$	(10)
Six months ended April 30
Interest rate contract	Fixed-rate debt	Interest and other, net	2021	$	(51)	$	(10)	$	10
			2020	$	13	$	10	$	(10)


	Three months ended April 30				Six months ended April 30
	2021		2020		2021		2020
	In millions
Gain/(loss) recognized in Accumulated other comprehensive loss on derivatives:
Foreign currency contracts	$	(21)	$	239	$	(387)	$	299
Interest rate contracts	$	—	$	(8)	$	—	$	(8)


	Total amounts of income/(expense) line items in the statement of financial performance in which the effects of cash flow hedges are recorded								Gain/(loss) reclassified from Accumulated other comprehensive loss into earnings
	Three months ended April 30				Six months ended April 30				Three months ended April 30				Six months ended April 30
	2021		2020		2021		2020		2021		2020		2021		2020
	In millions
Net revenue	$	15,877	$	12,469	$	31,523	$	27,087	$	(146)	$	62	$	(189)	$	123
Cost of revenue	(12,437)		(9,976)		(24,759)		(21,722)		(4)		(10)		(10)		(11)
Other operating expenses	(2,078)		(1,667)		(4,081)		(3,674)		1		1		1		—
Total	$	1,362	$	826	$	2,683	$	1,691	$	(149)	$	53	$	(198)	$	112

As of April 30, 2021, HP expects to reclassify an estimated accumulated other comprehensive loss of $165 million, net of taxes, to earnings within the next twelve months associated with cash flow hedges along with the earnings effects of the related forecasted transactions. The amounts ultimately reclassified into earnings could be different from the amounts previously included in Accumulated other comprehensive loss based on the change of market rate, and therefore could have different impact on earnings.

The pre-tax effect of derivative instruments not designated as hedging instruments recognized in Interest and other, net in the Consolidated Condensed Statements of Earnings for the three and six months ended April 30, 2021 and 2020 was as follows:


	Gain/(loss) recognized in earnings on derivative instrument
		Three months ended April 30				Six months ended April 30
	Location	2021		2020		2021		2020
		In millions
Foreign currency contracts	Interest and other, net	$	(23)	$	25	$	(9)	$	17
Other derivatives	Interest and other, net	2		—		5		5
Total		$	(21)	$	25	$	(4)	$	22