Quarterly Report (10-q)

Date : 08/29/2019 @ 8:08PM
Source : Edgar (US Regulatory)
Stock : HP Inc (HPQ)
Quote : 19.7059  0.1859 (0.95%) @ 8:02PM

Quarterly Report (10-q)

false--10-31Q32019000004721714819136390.999540.998270.997990.998160.998630.997070.99771P2DP2D750000001100000000764000000P40YP2Y0.320.640.280.560.010.019600000000960000000015600000001482000000156000000014820000000.00947500000001250000000135000000012500000001000000000120000000015000000005000000000.02750.08440.00510.03750.0430.043750.060.04650.0405620000001800000009800000010000000000.010.0130000000030000000000353000000P12M 0000047217 2018-11-01 2019-07-31 0000047217 2019-07-31 0000047217 2018-05-01 2018-07-31 0000047217 2019-05-01 2019-07-31 0000047217 2017-11-01 2018-07-31 0000047217 2018-10-31 0000047217 2017-10-31 0000047217 2018-07-31 0000047217 us-gaap:CommonStockMember 2018-10-31 0000047217 us-gaap:RetainedEarningsMember 2018-10-31 0000047217 us-gaap:CommonStockMember 2018-07-31 0000047217 us-gaap:CommonStockMember 2017-10-31 0000047217 us-gaap:AdditionalPaidInCapitalMember 2018-07-31 0000047217 us-gaap:AdditionalPaidInCapitalMember 2018-11-01 2019-07-31 0000047217 us-gaap:CommonStockMember 2019-07-31 0000047217 us-gaap:CommonStockMember 2017-11-01 2018-07-31 0000047217 us-gaap:AdditionalPaidInCapitalMember 2019-07-31 0000047217 us-gaap:CommonStockMember 2018-11-01 2019-07-31 0000047217 us-gaap:RetainedEarningsMember 2018-11-01 2019-07-31 0000047217 us-gaap:RetainedEarningsMember 2017-11-01 2018-07-31 0000047217 us-gaap:RetainedEarningsMember 2018-11-01 0000047217 us-gaap:RetainedEarningsMember 2018-07-31 0000047217 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-10-31 0000047217 us-gaap:RetainedEarningsMember 2017-10-31 0000047217 us-gaap:AdditionalPaidInCapitalMember 2018-10-31 0000047217 us-gaap:AdditionalPaidInCapitalMember 2017-11-01 2018-07-31 0000047217 2018-11-01 0000047217 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2017-11-01 2018-07-31 0000047217 us-gaap:RetainedEarningsMember 2019-07-31 0000047217 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-11-01 2019-07-31 0000047217 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-07-31 0000047217 us-gaap:AdditionalPaidInCapitalMember 2017-10-31 0000047217 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-07-31 0000047217 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2017-10-31 0000047217 us-gaap:RetainedEarningsMember 2019-05-01 0000047217 us-gaap:CommonStockMember 2018-04-30 0000047217 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-04-30 0000047217 us-gaap:CommonStockMember 2019-04-30 0000047217 us-gaap:CommonStockMember 2019-05-01 2019-07-31 0000047217 2018-04-30 0000047217 us-gaap:RetainedEarningsMember 2018-05-01 2018-07-31 0000047217 2019-04-30 0000047217 us-gaap:AdditionalPaidInCapitalMember 2019-05-01 2019-07-31 0000047217 us-gaap:AdditionalPaidInCapitalMember 2018-04-30 0000047217 us-gaap:CommonStockMember 2018-05-01 2018-07-31 0000047217 2019-05-01 0000047217 us-gaap:RetainedEarningsMember 2019-04-30 0000047217 us-gaap:AdditionalPaidInCapitalMember 2018-05-01 2018-07-31 0000047217 us-gaap:RetainedEarningsMember 2019-05-01 2019-07-31 0000047217 us-gaap:AdditionalPaidInCapitalMember 2019-04-30 0000047217 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-05-01 2019-07-31 0000047217 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-04-30 0000047217 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-05-01 2018-07-31 0000047217 us-gaap:RetainedEarningsMember 2018-04-30 0000047217 us-gaap:CalculatedUnderRevenueGuidanceInEffectBeforeTopic606Member 2018-11-01 2019-07-31 0000047217 us-gaap:CalculatedUnderRevenueGuidanceInEffectBeforeTopic606Member 2019-05-01 2019-07-31 0000047217 us-gaap:AccountingStandardsUpdate201409Member us-gaap:DifferenceBetweenRevenueGuidanceInEffectBeforeAndAfterTopic606Member 2018-11-01 2019-07-31 0000047217 us-gaap:AccountingStandardsUpdate201409Member us-gaap:DifferenceBetweenRevenueGuidanceInEffectBeforeAndAfterTopic606Member 2019-05-01 2019-07-31 0000047217 us-gaap:CalculatedUnderRevenueGuidanceInEffectBeforeTopic606Member 2019-07-31 0000047217 us-gaap:AccountingStandardsUpdate201409Member us-gaap:DifferenceBetweenRevenueGuidanceInEffectBeforeAndAfterTopic606Member 2019-07-31 0000047217 us-gaap:AccountingStandardsUpdate201707Member us-gaap:SellingGeneralAndAdministrativeExpensesMember 2017-11-01 2018-07-31 0000047217 us-gaap:AccountingStandardsUpdate201802Member us-gaap:NewAccountingPronouncementEarlyAdoptionEffectMember 2019-05-01 2019-07-31 0000047217 us-gaap:AccountingStandardsUpdate201616Member 2018-11-01 0000047217 us-gaap:AccountingStandardsUpdate201707Member us-gaap:SellingGeneralAndAdministrativeExpensesMember 2018-05-01 2018-07-31 0000047217 srt:RestatementAdjustmentMember us-gaap:AccountingStandardsUpdate201616Member 2018-11-01 0000047217 us-gaap:AccountingStandardsUpdate201409Member 2018-11-01 2018-11-01 0000047217 srt:ScenarioPreviouslyReportedMember 2018-10-31 0000047217 srt:RestatementAdjustmentMember us-gaap:AccountingStandardsUpdate201409Member 2018-11-01 0000047217 srt:RestatementAdjustmentMember us-gaap:NewAccountingPronouncementMember 2018-11-01 0000047217 us-gaap:AccountingStandardsUpdate201707Member hpq:InterestandOtherMember 2018-05-01 2018-07-31 0000047217 us-gaap:AccountingStandardsUpdate201707Member hpq:InterestandOtherMember 2017-11-01 2018-07-31 0000047217 us-gaap:OperatingSegmentsMember hpq:PersonalSystemsMember hpq:WorkstationsMember 2019-05-01 2019-07-31 0000047217 us-gaap:OperatingSegmentsMember hpq:PersonalSystemsMember hpq:WorkstationsMember 2018-05-01 2018-07-31 0000047217 us-gaap:OperatingSegmentsMember hpq:PrintingMember hpq:ConsumerHardwareMember 2018-11-01 2019-07-31 0000047217 us-gaap:OperatingSegmentsMember 2018-11-01 2019-07-31 0000047217 us-gaap:OperatingSegmentsMember hpq:PersonalSystemsMember hpq:NotebooksMember 2018-11-01 2019-07-31 0000047217 us-gaap:MaterialReconcilingItemsMember 2018-05-01 2018-07-31 0000047217 us-gaap:OperatingSegmentsMember hpq:CorporateInvestmentsMember 2019-05-01 2019-07-31 0000047217 us-gaap:OperatingSegmentsMember hpq:PersonalSystemsMember hpq:NotebooksMember 2017-11-01 2018-07-31 0000047217 us-gaap:OperatingSegmentsMember hpq:PersonalSystemsMember hpq:OtherPersonalSystemsMember 2019-05-01 2019-07-31 0000047217 us-gaap:OperatingSegmentsMember hpq:PrintingMember hpq:ConsumerHardwareMember 2017-11-01 2018-07-31 0000047217 us-gaap:OperatingSegmentsMember hpq:PersonalSystemsMember hpq:NotebooksMember 2018-05-01 2018-07-31 0000047217 us-gaap:OperatingSegmentsMember hpq:PersonalSystemsMember 2017-11-01 2018-07-31 0000047217 us-gaap:OperatingSegmentsMember hpq:PersonalSystemsMember hpq:DesktopsMember 2018-11-01 2019-07-31 0000047217 us-gaap:MaterialReconcilingItemsMember 2018-11-01 2019-07-31 0000047217 us-gaap:OperatingSegmentsMember hpq:CorporateInvestmentsMember 2018-11-01 2019-07-31 0000047217 us-gaap:OperatingSegmentsMember hpq:PrintingMember hpq:CommercialHardwareMember 2019-05-01 2019-07-31 0000047217 us-gaap:OperatingSegmentsMember hpq:PersonalSystemsMember 2018-05-01 2018-07-31 0000047217 us-gaap:OperatingSegmentsMember hpq:PrintingMember 2017-11-01 2018-07-31 0000047217 us-gaap:OperatingSegmentsMember hpq:PrintingMember hpq:SuppliesMember 2017-11-01 2018-07-31 0000047217 us-gaap:OperatingSegmentsMember 2017-11-01 2018-07-31 0000047217 us-gaap:OperatingSegmentsMember hpq:PrintingMember hpq:CommercialHardwareMember 2018-11-01 2019-07-31 0000047217 us-gaap:OperatingSegmentsMember hpq:PersonalSystemsMember hpq:WorkstationsMember 2017-11-01 2018-07-31 0000047217 us-gaap:OperatingSegmentsMember hpq:PrintingMember 2018-11-01 2019-07-31 0000047217 us-gaap:OperatingSegmentsMember 2019-05-01 2019-07-31 0000047217 us-gaap:OperatingSegmentsMember 2018-05-01 2018-07-31 0000047217 us-gaap:MaterialReconcilingItemsMember 2017-11-01 2018-07-31 0000047217 us-gaap:OperatingSegmentsMember hpq:CorporateInvestmentsMember 2018-05-01 2018-07-31 0000047217 us-gaap:OperatingSegmentsMember hpq:PrintingMember 2019-05-01 2019-07-31 0000047217 us-gaap:OperatingSegmentsMember hpq:PersonalSystemsMember hpq:DesktopsMember 2019-05-01 2019-07-31 0000047217 us-gaap:OperatingSegmentsMember hpq:PrintingMember hpq:CommercialHardwareMember 2018-05-01 2018-07-31 0000047217 us-gaap:OperatingSegmentsMember hpq:PrintingMember hpq:ConsumerHardwareMember 2018-05-01 2018-07-31 0000047217 us-gaap:OperatingSegmentsMember hpq:PersonalSystemsMember hpq:DesktopsMember 2018-05-01 2018-07-31 0000047217 us-gaap:OperatingSegmentsMember hpq:PrintingMember hpq:SuppliesMember 2019-05-01 2019-07-31 0000047217 us-gaap:OperatingSegmentsMember hpq:PersonalSystemsMember hpq:OtherPersonalSystemsMember 2018-05-01 2018-07-31 0000047217 us-gaap:OperatingSegmentsMember hpq:PersonalSystemsMember hpq:OtherPersonalSystemsMember 2017-11-01 2018-07-31 0000047217 us-gaap:OperatingSegmentsMember hpq:CorporateInvestmentsMember 2017-11-01 2018-07-31 0000047217 us-gaap:OperatingSegmentsMember hpq:PrintingMember 2018-05-01 2018-07-31 0000047217 us-gaap:MaterialReconcilingItemsMember 2019-05-01 2019-07-31 0000047217 us-gaap:OperatingSegmentsMember hpq:PersonalSystemsMember 2019-05-01 2019-07-31 0000047217 us-gaap:OperatingSegmentsMember hpq:PersonalSystemsMember 2018-11-01 2019-07-31 0000047217 us-gaap:OperatingSegmentsMember hpq:PersonalSystemsMember hpq:WorkstationsMember 2018-11-01 2019-07-31 0000047217 us-gaap:OperatingSegmentsMember hpq:PrintingMember hpq:SuppliesMember 2018-05-01 2018-07-31 0000047217 us-gaap:OperatingSegmentsMember hpq:PrintingMember hpq:SuppliesMember 2018-11-01 2019-07-31 0000047217 us-gaap:OperatingSegmentsMember hpq:PersonalSystemsMember hpq:OtherPersonalSystemsMember 2018-11-01 2019-07-31 0000047217 us-gaap:OperatingSegmentsMember hpq:PrintingMember hpq:ConsumerHardwareMember 2019-05-01 2019-07-31 0000047217 us-gaap:OperatingSegmentsMember hpq:PersonalSystemsMember hpq:NotebooksMember 2019-05-01 2019-07-31 0000047217 us-gaap:OperatingSegmentsMember hpq:PersonalSystemsMember hpq:DesktopsMember 2017-11-01 2018-07-31 0000047217 us-gaap:OperatingSegmentsMember hpq:PrintingMember hpq:CommercialHardwareMember 2017-11-01 2018-07-31 0000047217 hpq:InfrastructureAndOtherRestructuringItemsMember hpq:Fiscal2017RestructuringPlanMember 2019-05-01 2019-07-31 0000047217 us-gaap:EmployeeSeveranceMember hpq:Fiscal2017RestructuringPlanMember 2019-05-01 2019-07-31 0000047217 hpq:OtherPlanMember 2019-05-01 2019-07-31 0000047217 us-gaap:EmployeeSeveranceMember hpq:Fiscal2017RestructuringPlanMember 2017-11-01 2018-07-31 0000047217 hpq:OtherPlanMember 2019-07-31 0000047217 hpq:OtherPlanMember 2017-11-01 2018-07-31 0000047217 hpq:InfrastructureAndOtherRestructuringItemsMember hpq:Fiscal2017RestructuringPlanMember 2017-11-01 2018-07-31 0000047217 hpq:OtherPlanMember 2018-10-31 0000047217 us-gaap:EmployeeSeveranceMember hpq:Fiscal2017RestructuringPlanMember 2018-11-01 2019-07-31 0000047217 hpq:InfrastructureAndOtherRestructuringItemsMember hpq:Fiscal2017RestructuringPlanMember 2019-07-31 0000047217 hpq:OtherPlanMember 2018-11-01 2019-07-31 0000047217 hpq:InfrastructureAndOtherRestructuringItemsMember hpq:Fiscal2017RestructuringPlanMember 2018-11-01 2019-07-31 0000047217 us-gaap:EmployeeSeveranceMember hpq:Fiscal2017RestructuringPlanMember 2017-10-31 0000047217 hpq:InfrastructureAndOtherRestructuringItemsMember hpq:Fiscal2017RestructuringPlanMember 2017-10-31 0000047217 hpq:OtherPlanMember 2018-07-31 0000047217 hpq:InfrastructureAndOtherRestructuringItemsMember hpq:Fiscal2017RestructuringPlanMember 2018-10-31 0000047217 hpq:OtherPlanMember 2017-10-31 0000047217 us-gaap:EmployeeSeveranceMember hpq:Fiscal2017RestructuringPlanMember 2019-07-31 0000047217 us-gaap:EmployeeSeveranceMember hpq:Fiscal2017RestructuringPlanMember 2018-07-31 0000047217 us-gaap:EmployeeSeveranceMember hpq:Fiscal2017RestructuringPlanMember 2018-10-31 0000047217 hpq:InfrastructureAndOtherRestructuringItemsMember hpq:Fiscal2017RestructuringPlanMember 2018-07-31 0000047217 hpq:Fiscal2017RestructuringPlanMember 2018-05-26 0000047217 srt:MaximumMember hpq:Fiscal2017RestructuringPlanMember 2018-05-26 2018-05-26 0000047217 srt:MinimumMember hpq:Fiscal2017RestructuringPlanMember 2018-05-26 2018-05-26 0000047217 us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember 2019-05-01 2019-07-31 0000047217 country:US us-gaap:PensionPlansDefinedBenefitMember 2018-05-01 2018-07-31 0000047217 us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember 2018-05-01 2018-07-31 0000047217 country:US us-gaap:PensionPlansDefinedBenefitMember 2019-05-01 2019-07-31 0000047217 us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2018-05-01 2018-07-31 0000047217 us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2019-05-01 2019-07-31 0000047217 us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember 2018-11-01 2019-07-31 0000047217 country:US us-gaap:PensionPlansDefinedBenefitMember 2017-11-01 2018-07-31 0000047217 us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember 2017-11-01 2018-07-31 0000047217 us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2017-11-01 2018-07-31 0000047217 country:US us-gaap:PensionPlansDefinedBenefitMember 2018-11-01 2019-07-31 0000047217 us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2018-11-01 2019-07-31 0000047217 country:US us-gaap:NonqualifiedPlanMember 2018-11-01 2019-07-31 0000047217 us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2019-07-31 0000047217 country:US us-gaap:NonqualifiedPlanMember 2019-07-31 0000047217 us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember 2019-07-31 0000047217 srt:AmericasMember 2018-05-01 2018-07-31 0000047217 srt:AsiaPacificMember 2018-11-01 2019-07-31 0000047217 srt:AmericasMember 2018-11-01 2019-07-31 0000047217 srt:AmericasMember 2017-11-01 2018-07-31 0000047217 srt:AmericasMember 2019-05-01 2019-07-31 0000047217 us-gaap:EMEAMember 2018-05-01 2018-07-31 0000047217 srt:AsiaPacificMember 2017-11-01 2018-07-31 0000047217 srt:AsiaPacificMember 2018-05-01 2018-07-31 0000047217 us-gaap:EMEAMember 2018-11-01 2019-07-31 0000047217 us-gaap:EMEAMember 2019-05-01 2019-07-31 0000047217 us-gaap:EMEAMember 2017-11-01 2018-07-31 0000047217 srt:AsiaPacificMember 2019-05-01 2019-07-31 0000047217 2019-05-01 2019-07-31 0000047217 hpq:DeferredContractFulfillmentMember 2019-07-31 0000047217 hpq:ContractAcquisitionCostsMember 2019-07-31 0000047217 2020-05-01 2019-07-31 0000047217 us-gaap:LandBuildingsAndImprovementsMember 2018-10-31 0000047217 us-gaap:LandBuildingsAndImprovementsMember 2019-07-31 0000047217 us-gaap:MachineryAndEquipmentMember 2018-10-31 0000047217 us-gaap:MachineryAndEquipmentMember 2019-07-31 0000047217 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:EquitySecuritiesMember 2019-07-31 0000047217 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateDebtSecuritiesMember 2019-07-31 0000047217 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateDebtSecuritiesMember 2019-07-31 0000047217 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember hpq:FinancialInstitutionInstrumentsMember 2019-07-31 0000047217 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateDebtSecuritiesMember 2018-10-31 0000047217 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2018-10-31 0000047217 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:ForeignExchangeContractMember 2019-07-31 0000047217 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:EquitySecuritiesMember 2018-10-31 0000047217 us-gaap:FairValueMeasurementsRecurringMember us-gaap:USTreasuryAndGovernmentMember 2018-10-31 0000047217 us-gaap:FairValueMeasurementsRecurringMember us-gaap:ForeignExchangeContractMember 2019-07-31 0000047217 us-gaap:FairValueMeasurementsRecurringMember 2019-07-31 0000047217 us-gaap:FairValueMeasurementsRecurringMember us-gaap:OtherContractMember 2018-10-31 0000047217 us-gaap:FairValueMeasurementsRecurringMember us-gaap:OtherContractMember 2019-07-31 0000047217 us-gaap:FairValueMeasurementsRecurringMember us-gaap:InterestRateContractMember 2019-07-31 0000047217 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember hpq:FinancialInstitutionInstrumentsMember 2018-10-31 0000047217 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:MutualFundMember 2019-07-31 0000047217 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:USTreasuryAndGovernmentMember 2019-07-31 0000047217 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember hpq:FinancialInstitutionInstrumentsMember 2018-10-31 0000047217 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember hpq:FinancialInstitutionInstrumentsMember 2019-07-31 0000047217 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:USTreasuryAndGovernmentMember 2018-10-31 0000047217 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:ForeignExchangeContractMember 2019-07-31 0000047217 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:MutualFundMember 2018-10-31 0000047217 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:MutualFundMember 2018-10-31 0000047217 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2019-07-31 0000047217 us-gaap:FairValueMeasurementsRecurringMember us-gaap:USTreasuryAndGovernmentMember 2019-07-31 0000047217 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:ForeignExchangeContractMember 2018-10-31 0000047217 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:OtherContractMember 2018-10-31 0000047217 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:OtherContractMember 2019-07-31 0000047217 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:EquitySecuritiesMember 2018-10-31 0000047217 us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateDebtSecuritiesMember 2019-07-31 0000047217 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2018-10-31 0000047217 us-gaap:FairValueMeasurementsRecurringMember us-gaap:MutualFundMember 2018-10-31 0000047217 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:USTreasuryAndGovernmentMember 2019-07-31 0000047217 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember hpq:FinancialInstitutionInstrumentsMember 2019-07-31 0000047217 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember hpq:FinancialInstitutionInstrumentsMember 2018-10-31 0000047217 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2018-10-31 0000047217 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateDebtSecuritiesMember 2018-10-31 0000047217 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:EquitySecuritiesMember 2018-10-31 0000047217 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateDebtSecuritiesMember 2018-10-31 0000047217 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:EquitySecuritiesMember 2019-07-31 0000047217 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2019-07-31 0000047217 us-gaap:FairValueMeasurementsRecurringMember 2018-10-31 0000047217 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2019-07-31 0000047217 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:USTreasuryAndGovernmentMember 2018-10-31 0000047217 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:OtherContractMember 2018-10-31 0000047217 us-gaap:FairValueMeasurementsRecurringMember hpq:FinancialInstitutionInstrumentsMember 2019-07-31 0000047217 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:EquitySecuritiesMember 2019-07-31 0000047217 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:OtherContractMember 2019-07-31 0000047217 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:InterestRateContractMember 2018-10-31 0000047217 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:MutualFundMember 2018-10-31 0000047217 us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateDebtSecuritiesMember 2018-10-31 0000047217 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:InterestRateContractMember 2019-07-31 0000047217 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:InterestRateContractMember 2018-10-31 0000047217 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:ForeignExchangeContractMember 2019-07-31 0000047217 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateDebtSecuritiesMember 2019-07-31 0000047217 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:ForeignExchangeContractMember 2018-10-31 0000047217 us-gaap:FairValueMeasurementsRecurringMember us-gaap:EquitySecuritiesMember 2019-07-31 0000047217 us-gaap:FairValueMeasurementsRecurringMember hpq:FinancialInstitutionInstrumentsMember 2018-10-31 0000047217 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:USTreasuryAndGovernmentMember 2018-10-31 0000047217 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:OtherContractMember 2018-10-31 0000047217 us-gaap:FairValueMeasurementsRecurringMember us-gaap:ForeignExchangeContractMember 2018-10-31 0000047217 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:USTreasuryAndGovernmentMember 2019-07-31 0000047217 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:MutualFundMember 2019-07-31 0000047217 us-gaap:FairValueMeasurementsRecurringMember us-gaap:InterestRateContractMember 2018-10-31 0000047217 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:OtherContractMember 2019-07-31 0000047217 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:InterestRateContractMember 2019-07-31 0000047217 us-gaap:FairValueMeasurementsRecurringMember us-gaap:MutualFundMember 2019-07-31 0000047217 us-gaap:FairValueMeasurementsRecurringMember us-gaap:EquitySecuritiesMember 2018-10-31 0000047217 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:MutualFundMember 2019-07-31 0000047217 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:ForeignExchangeContractMember 2018-10-31 0000047217 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:InterestRateContractMember 2018-10-31 0000047217 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:InterestRateContractMember 2019-07-31 0000047217 us-gaap:OtherContractMember hpq:InterestAndOtherIncomeExpenseMember 2018-05-01 2018-07-31 0000047217 us-gaap:OtherContractMember hpq:InterestAndOtherIncomeExpenseMember 2019-05-01 2019-07-31 0000047217 us-gaap:ForeignExchangeContractMember hpq:InterestAndOtherIncomeExpenseMember 2019-05-01 2019-07-31 0000047217 us-gaap:OtherContractMember hpq:InterestAndOtherIncomeExpenseMember 2018-11-01 2019-07-31 0000047217 us-gaap:ForeignExchangeContractMember hpq:InterestAndOtherIncomeExpenseMember 2018-11-01 2019-07-31 0000047217 us-gaap:ForeignExchangeContractMember hpq:InterestAndOtherIncomeExpenseMember 2017-11-01 2018-07-31 0000047217 us-gaap:OtherContractMember hpq:InterestAndOtherIncomeExpenseMember 2017-11-01 2018-07-31 0000047217 us-gaap:ForeignExchangeContractMember hpq:InterestAndOtherIncomeExpenseMember 2018-05-01 2018-07-31 0000047217 us-gaap:ForeignExchangeContractMember us-gaap:CashFlowHedgingMember 2019-05-01 2019-07-31 0000047217 us-gaap:ForeignExchangeContractMember us-gaap:CashFlowHedgingMember 2018-11-01 2019-07-31 0000047217 us-gaap:ForeignExchangeContractMember us-gaap:CashFlowHedgingMember us-gaap:CostOfSalesMember 2019-05-01 2019-07-31 0000047217 us-gaap:ForeignExchangeContractMember us-gaap:CashFlowHedgingMember us-gaap:SalesMember 2019-05-01 2019-07-31 0000047217 us-gaap:ForeignExchangeContractMember us-gaap:CashFlowHedgingMember us-gaap:CostOfSalesMember 2018-11-01 2019-07-31 0000047217 us-gaap:ForeignExchangeContractMember us-gaap:CashFlowHedgingMember us-gaap:OperatingExpenseMember 2019-05-01 2019-07-31 0000047217 us-gaap:ForeignExchangeContractMember us-gaap:CashFlowHedgingMember us-gaap:OperatingExpenseMember 2018-11-01 2019-07-31 0000047217 us-gaap:ForeignExchangeContractMember us-gaap:CashFlowHedgingMember us-gaap:SalesMember 2018-11-01 2019-07-31 0000047217 us-gaap:CashFlowHedgingMember 2018-11-01 2019-07-31 0000047217 srt:MaximumMember us-gaap:CashFlowHedgingMember 2018-11-01 2019-07-31 0000047217 us-gaap:InterestRateSwapMember 2017-11-01 2018-07-31 0000047217 us-gaap:InterestRateSwapMember 2018-11-01 2019-07-31 0000047217 us-gaap:InterestRateSwapMember 2018-05-01 2018-07-31 0000047217 us-gaap:OtherNoncurrentAssetsMember hpq:EquitySecuritiesInPrivatelyHeldCompaniesMember 2019-07-31 0000047217 us-gaap:InterestRateSwapMember 2019-05-01 2019-07-31 0000047217 us-gaap:OtherNoncurrentAssetsMember hpq:EquitySecuritiesInPrivatelyHeldCompaniesMember 2018-10-31 0000047217 us-gaap:ForeignExchangeContractMember us-gaap:CashFlowHedgingMember 2017-11-01 2018-07-31 0000047217 us-gaap:ForeignExchangeContractMember us-gaap:CashFlowHedgingMember us-gaap:SalesMember 2018-05-01 2018-07-31 0000047217 us-gaap:ForeignExchangeContractMember us-gaap:CashFlowHedgingMember 2018-05-01 2018-07-31 0000047217 us-gaap:ForeignExchangeContractMember us-gaap:CashFlowHedgingMember us-gaap:OperatingExpenseMember 2017-11-01 2018-07-31 0000047217 us-gaap:ForeignExchangeContractMember us-gaap:CashFlowHedgingMember us-gaap:OperatingExpenseMember 2018-05-01 2018-07-31 0000047217 us-gaap:ForeignExchangeContractMember us-gaap:CashFlowHedgingMember us-gaap:SalesMember 2017-11-01 2018-07-31 0000047217 us-gaap:ForeignExchangeContractMember us-gaap:CashFlowHedgingMember us-gaap:CostOfSalesMember 2018-05-01 2018-07-31 0000047217 us-gaap:ForeignExchangeContractMember us-gaap:CashFlowHedgingMember us-gaap:CostOfSalesMember 2017-11-01 2018-07-31 0000047217 us-gaap:OtherCurrentAssetsMember us-gaap:NondesignatedMember 2018-10-31 0000047217 us-gaap:OtherContractMember us-gaap:NondesignatedMember 2019-07-31 0000047217 us-gaap:OtherNoncurrentAssetsMember us-gaap:ForeignExchangeContractMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-07-31 0000047217 us-gaap:OtherCurrentLiabilitiesMember 2018-10-31 0000047217 us-gaap:OtherContractMember us-gaap:NondesignatedMember 2018-10-31 0000047217 us-gaap:DesignatedAsHedgingInstrumentMember 2019-07-31 0000047217 us-gaap:OtherCurrentAssetsMember us-gaap:InterestRateContractMember us-gaap:FairValueHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-10-31 0000047217 us-gaap:OtherNoncurrentAssetsMember us-gaap:ForeignExchangeContractMember us-gaap:NondesignatedMember 2019-07-31 0000047217 us-gaap:OtherNoncurrentLiabilitiesMember us-gaap:OtherContractMember us-gaap:NondesignatedMember 2019-07-31 0000047217 us-gaap:ForeignExchangeContractMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-10-31 0000047217 us-gaap:OtherNoncurrentLiabilitiesMember us-gaap:ForeignExchangeContractMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-10-31 0000047217 us-gaap:OtherCurrentLiabilitiesMember 2019-07-31 0000047217 us-gaap:OtherCurrentAssetsMember us-gaap:ForeignExchangeContractMember us-gaap:NondesignatedMember 2019-07-31 0000047217 us-gaap:OtherNoncurrentLiabilitiesMember us-gaap:NondesignatedMember 2018-10-31 0000047217 us-gaap:OtherCurrentLiabilitiesMember us-gaap:NondesignatedMember 2019-07-31 0000047217 us-gaap:OtherNoncurrentLiabilitiesMember us-gaap:ForeignExchangeContractMember us-gaap:NondesignatedMember 2019-07-31 0000047217 us-gaap:OtherCurrentAssetsMember us-gaap:ForeignExchangeContractMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-07-31 0000047217 us-gaap:OtherCurrentLiabilitiesMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-07-31 0000047217 us-gaap:OtherNoncurrentLiabilitiesMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-07-31 0000047217 us-gaap:OtherCurrentAssetsMember us-gaap:ForeignExchangeContractMember us-gaap:NondesignatedMember 2018-10-31 0000047217 us-gaap:OtherNoncurrentAssetsMember us-gaap:OtherContractMember us-gaap:NondesignatedMember 2018-10-31 0000047217 us-gaap:OtherNoncurrentAssetsMember us-gaap:NondesignatedMember 2018-10-31 0000047217 us-gaap:ForeignExchangeContractMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-07-31 0000047217 us-gaap:OtherCurrentLiabilitiesMember us-gaap:InterestRateContractMember us-gaap:FairValueHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-07-31 0000047217 us-gaap:OtherNoncurrentAssetsMember us-gaap:InterestRateContractMember us-gaap:FairValueHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-07-31 0000047217 us-gaap:OtherNoncurrentLiabilitiesMember us-gaap:ForeignExchangeContractMember us-gaap:NondesignatedMember 2018-10-31 0000047217 us-gaap:OtherCurrentAssetsMember us-gaap:ForeignExchangeContractMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-10-31 0000047217 us-gaap:OtherNoncurrentLiabilitiesMember 2019-07-31 0000047217 us-gaap:OtherCurrentLiabilitiesMember us-gaap:ForeignExchangeContractMember us-gaap:NondesignatedMember 2019-07-31 0000047217 us-gaap:OtherCurrentAssetsMember us-gaap:InterestRateContractMember us-gaap:FairValueHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-07-31 0000047217 us-gaap:OtherCurrentLiabilitiesMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-10-31 0000047217 us-gaap:OtherNoncurrentLiabilitiesMember us-gaap:InterestRateContractMember us-gaap:FairValueHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-10-31 0000047217 us-gaap:OtherCurrentAssetsMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-07-31 0000047217 us-gaap:OtherNoncurrentLiabilitiesMember 2018-10-31 0000047217 us-gaap:OtherCurrentAssetsMember 2018-10-31 0000047217 us-gaap:DesignatedAsHedgingInstrumentMember 2018-10-31 0000047217 us-gaap:OtherCurrentLiabilitiesMember us-gaap:NondesignatedMember 2018-10-31 0000047217 us-gaap:OtherCurrentAssetsMember us-gaap:OtherContractMember us-gaap:NondesignatedMember 2018-10-31 0000047217 us-gaap:OtherNoncurrentAssetsMember us-gaap:OtherContractMember us-gaap:NondesignatedMember 2019-07-31 0000047217 us-gaap:NondesignatedMember 2019-07-31 0000047217 us-gaap:OtherNoncurrentLiabilitiesMember us-gaap:NondesignatedMember 2019-07-31 0000047217 us-gaap:OtherNoncurrentAssetsMember us-gaap:NondesignatedMember 2019-07-31 0000047217 us-gaap:OtherCurrentLiabilitiesMember us-gaap:InterestRateContractMember us-gaap:FairValueHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-10-31 0000047217 us-gaap:OtherNoncurrentLiabilitiesMember us-gaap:InterestRateContractMember us-gaap:FairValueHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-07-31 0000047217 us-gaap:OtherNoncurrentAssetsMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-07-31 0000047217 us-gaap:OtherNoncurrentAssetsMember us-gaap:ForeignExchangeContractMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-10-31 0000047217 us-gaap:OtherCurrentLiabilitiesMember us-gaap:ForeignExchangeContractMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-07-31 0000047217 us-gaap:OtherCurrentAssetsMember us-gaap:NondesignatedMember 2019-07-31 0000047217 us-gaap:OtherCurrentLiabilitiesMember us-gaap:ForeignExchangeContractMember us-gaap:NondesignatedMember 2018-10-31 0000047217 us-gaap:OtherNoncurrentAssetsMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-10-31 0000047217 us-gaap:ForeignExchangeContractMember us-gaap:NondesignatedMember 2018-10-31 0000047217 us-gaap:NondesignatedMember 2018-10-31 0000047217 us-gaap:OtherCurrentLiabilitiesMember us-gaap:OtherContractMember us-gaap:NondesignatedMember 2019-07-31 0000047217 us-gaap:OtherNoncurrentLiabilitiesMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-10-31 0000047217 us-gaap:InterestRateContractMember us-gaap:FairValueHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-07-31 0000047217 us-gaap:OtherNoncurrentAssetsMember us-gaap:ForeignExchangeContractMember us-gaap:NondesignatedMember 2018-10-31 0000047217 us-gaap:OtherNoncurrentAssetsMember us-gaap:InterestRateContractMember us-gaap:FairValueHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-10-31 0000047217 us-gaap:OtherCurrentLiabilitiesMember us-gaap:OtherContractMember us-gaap:NondesignatedMember 2018-10-31 0000047217 us-gaap:OtherCurrentAssetsMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-10-31 0000047217 us-gaap:OtherNoncurrentLiabilitiesMember us-gaap:OtherContractMember us-gaap:NondesignatedMember 2018-10-31 0000047217 us-gaap:OtherCurrentLiabilitiesMember us-gaap:ForeignExchangeContractMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-10-31 0000047217 us-gaap:OtherNoncurrentLiabilitiesMember us-gaap:ForeignExchangeContractMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-07-31 0000047217 us-gaap:OtherNoncurrentAssetsMember 2019-07-31 0000047217 us-gaap:OtherCurrentAssetsMember 2019-07-31 0000047217 us-gaap:ForeignExchangeContractMember us-gaap:NondesignatedMember 2019-07-31 0000047217 us-gaap:InterestRateContractMember us-gaap:FairValueHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-10-31 0000047217 us-gaap:OtherCurrentAssetsMember us-gaap:OtherContractMember us-gaap:NondesignatedMember 2019-07-31 0000047217 us-gaap:OtherNoncurrentAssetsMember 2018-10-31 0000047217 us-gaap:CorporateDebtSecuritiesMember 2019-07-31 0000047217 us-gaap:USTreasuryAndGovernmentMember 2019-07-31 0000047217 us-gaap:USTreasuryAndGovernmentMember 2018-10-31 0000047217 us-gaap:EquitySecuritiesMember 2018-10-31 0000047217 hpq:FinancialInstitutionInstrumentsMember 2019-07-31 0000047217 us-gaap:MutualFundMember 2019-07-31 0000047217 hpq:FinancialInstitutionInstrumentsMember 2018-10-31 0000047217 us-gaap:CorporateDebtSecuritiesMember 2018-10-31 0000047217 us-gaap:EquitySecuritiesMember 2019-07-31 0000047217 us-gaap:MutualFundMember 2018-10-31 0000047217 2017-11-01 2018-10-31 0000047217 srt:MinimumMember us-gaap:CashFlowHedgingMember 2018-11-01 2019-07-31 0000047217 hpq:NotesPayableToBanksLinesOfCreditAndOtherNotesPayablesMember 2018-10-31 0000047217 us-gaap:CommercialPaperMember 2018-10-31 0000047217 hpq:NotesPayableToBanksLinesOfCreditAndOtherNotesPayablesMember 2019-07-31 0000047217 us-gaap:CommercialPaperMember 2019-07-31 0000047217 hpq:ShelfRegistration2009CorporateDebtSecuritiesIssuedAtDiscountToParDueSeptember2041Member 2018-10-31 0000047217 hpq:ShelfRegistration2009CorporateDebtSecuritiesIssuedAtDiscountToParDueJune2021Member 2018-10-31 0000047217 hpq:ShelfRegistration2009CorporateDebtSecuritiesIssuedAtDiscountToParDueSeptember2022Member 2019-07-31 0000047217 hpq:USDollarGlobalNotesMember 2019-07-31 0000047217 hpq:ShelfRegistration2009CorporateDebtSecuritiesIssuedAtDiscountToParDueJune2021Member 2019-07-31 0000047217 hpq:ShelfRegistration2009CorporateDebtSecuritiesIssuedAtDiscountToParDueDecember2021Member 2019-07-31 0000047217 hpq:ShelfRegistration2009CorporateDebtSecuritiesDueDecember2020Member 2018-10-31 0000047217 hpq:ShelfRegistration2009CorporateDebtSecuritiesIssuedAtDiscountToParDueSeptember2022Member 2018-10-31 0000047217 hpq:ShelfRegistration2009CorporateDebtSecuritiesIssuedAtDiscountToParDueSeptember2041Member 2019-07-31 0000047217 hpq:ShelfRegistration2009CorporateDebtSecuritiesIssuedAtDiscountToParDueSeptember2021Member 2018-10-31 0000047217 hpq:USDollarGlobalNotesMember 2018-10-31 0000047217 hpq:ShelfRegistration2009CorporateDebtSecuritiesIssuedAtDiscountToParDueSeptember2021Member 2019-07-31 0000047217 hpq:ShelfRegistration2012CorporateDebtSecuritiesIssuedAtDiscountToParDueJanuary2019Member 2018-10-31 0000047217 hpq:ShelfRegistration2012CorporateDebtSecuritiesDueJanuary2019Member 2019-07-31 0000047217 hpq:ShelfRegistration2009CorporateDebtSecuritiesDueDecember2020Member 2019-07-31 0000047217 hpq:ShelfRegistration2012CorporateDebtSecuritiesDueJanuary2019Member 2018-10-31 0000047217 hpq:OtherLongTermDebtAndCapitalLeaseObligationsMember 2018-10-31 0000047217 hpq:ShelfRegistration2009CorporateDebtSecuritiesIssuedAtDiscountToParDueDecember2021Member 2018-10-31 0000047217 hpq:OtherLongTermDebtAndCapitalLeaseObligationsMember 2019-07-31 0000047217 hpq:ShelfRegistration2012CorporateDebtSecuritiesIssuedAtDiscountToParDueJanuary2019Member 2019-07-31 0000047217 us-gaap:RevolvingCreditFacilityMember 2019-07-31 0000047217 us-gaap:CommercialPaperMember 2019-07-31 0000047217 us-gaap:LineOfCreditMember 2019-07-31 0000047217 hpq:ShelfRegistration2009CorporateDebtSecuritiesDueDecember2020Member 2010-12-31 0000047217 hpq:ShelfRegistration2009CorporateDebtSecuritiesIssuedAtDiscountToParDueSeptember2041Member 2011-09-30 0000047217 hpq:ShelfRegistration2012CorporateDebtSecuritiesIssuedAtDiscountToParDueJanuary2019Member 2014-01-31 0000047217 hpq:ShelfRegistration2009CorporateDebtSecuritiesIssuedAtDiscountToParDueSeptember2022Member 2012-03-31 0000047217 srt:MinimumMember hpq:OtherLongTermDebtAndCapitalLeaseObligationsMember 2019-07-31 0000047217 hpq:ShelfRegistration2009CorporateDebtSecuritiesIssuedAtDiscountToParDueJune2021Member 2011-05-31 0000047217 hpq:ShelfRegistration2009CorporateDebtSecuritiesIssuedAtDiscountToParDueDecember2021Member 2011-12-31 0000047217 hpq:ShelfRegistration2012CorporateDebtSecuritiesDueJanuary2019Member 2014-01-31 0000047217 hpq:ShelfRegistration2009CorporateDebtSecuritiesIssuedAtDiscountToParDueSeptember2021Member 2011-09-30 0000047217 hpq:ShelfRegistration2012CorporateDebtSecuritiesDueJanuary2019Member 2014-01-01 2014-01-31 0000047217 srt:MaximumMember hpq:OtherLongTermDebtAndCapitalLeaseObligationsMember 2019-07-31 0000047217 us-gaap:AccumulatedTranslationAdjustmentMember 2018-11-01 2019-07-31 0000047217 us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2018-05-01 2018-07-31 0000047217 us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2018-11-01 2019-07-31 0000047217 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2018-05-01 2018-07-31 0000047217 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember 2019-05-01 2019-07-31 0000047217 us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2019-05-01 2019-07-31 0000047217 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2018-11-01 2019-07-31 0000047217 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2019-05-01 2019-07-31 0000047217 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2017-11-01 2018-07-31 0000047217 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-11-01 2019-07-31 0000047217 us-gaap:AccumulatedTranslationAdjustmentMember 2017-11-01 2018-07-31 0000047217 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-05-01 2018-07-31 0000047217 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember 2018-11-01 2019-07-31 0000047217 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-05-01 2019-07-31 0000047217 us-gaap:AccumulatedTranslationAdjustmentMember 2019-05-01 2019-07-31 0000047217 us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2017-11-01 2018-07-31 0000047217 hpq:AccumulatedDefinedBenefitPlansAdjustmentActuarialGainLossAndNetPriorServiceCostCreditMember 2017-11-01 2018-07-31 0000047217 hpq:AccumulatedDefinedBenefitPlansAdjustmentCurtailmentsSettlementsAndOtherMember 2017-11-01 2018-07-31 0000047217 hpq:AccumulatedDefinedBenefitPlansAdjustmentActuarialGainLossAndNetPriorServiceCostCreditMember 2018-05-01 2018-07-31 0000047217 us-gaap:AccumulatedTranslationAdjustmentMember 2018-05-01 2018-07-31 0000047217 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember 2017-11-01 2018-07-31 0000047217 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2017-11-01 2018-07-31 0000047217 hpq:AccumulatedDefinedBenefitPlansAdjustmentCurtailmentsSettlementsAndOtherMember 2018-11-01 2019-07-31 0000047217 hpq:AccumulatedDefinedBenefitPlansAdjustmentActuarialGainLossAndNetPriorServiceCostCreditMember 2019-05-01 2019-07-31 0000047217 hpq:AccumulatedDefinedBenefitPlansAdjustmentActuarialGainLossAndNetPriorServiceCostCreditMember 2018-11-01 2019-07-31 0000047217 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember 2018-05-01 2018-07-31 0000047217 hpq:AccumulatedDefinedBenefitPlansAdjustmentCurtailmentsSettlementsAndOtherMember 2018-05-01 2018-07-31 0000047217 hpq:AccumulatedDefinedBenefitPlansAdjustmentCurtailmentsSettlementsAndOtherMember 2019-05-01 2019-07-31 0000047217 2018-06-19 2018-06-19 0000047217 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2018-10-31 0000047217 us-gaap:AccumulatedTranslationAdjustmentMember 2019-07-31 0000047217 us-gaap:AccumulatedTranslationAdjustmentMember 2018-10-31 0000047217 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-07-31 0000047217 us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2019-07-31 0000047217 us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2018-10-31 0000047217 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-10-31 0000047217 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2019-07-31 0000047217 hpq:ConsumerClassActionSuppliesAuthenticationProtocolMember 2019-07-31 0000047217 us-gaap:SettledLitigationMember hpq:Forsythetal.vs.HPInc.andHewlettPackardEnterpriseMember 2018-11-01 2019-07-31 0000047217 hpq:IndiaDirectorateOfRevenueIntelligenceProceedingsMember 2013-01-24 2013-01-24 0000047217 hpq:AcquisitionOfAutonomyMember hpq:AutonomyRelatedLegalMattersMember 2015-04-17 2015-04-17 0000047217 hpq:IndiaDirectorateOfRevenueIntelligenceProceedingsMember 2010-04-30 2010-05-10 0000047217 hpq:MessrsLynchMember hpq:AcquisitionOfAutonomyMember hpq:AutonomyRelatedLegalMattersMember 2015-10-01 2015-10-01 0000047217 hpq:IndiaDirectorateOfRevenueIntelligenceProceedingsMember 2012-04-21 2012-04-21 0000047217 hpq:IndiaDirectorateOfRevenueIntelligenceProceedingsMember 2012-04-11 0000047217 hpq:Forsythetal.vs.HPInc.andHewlettPackardEnterpriseMember 2012-05-23 2012-05-23 0000047217 hpq:Forsythetal.vs.HPInc.andHewlettPackardEnterpriseMember 2017-11-30 2017-11-30 0000047217 hpq:ConsumerClassActionSuppliesAuthenticationProtocolMember 2019-06-28 2019-06-28 0000047217 hpq:OracleCorporationv.HPMember hpq:DamagesAwardedFutureLostProfitsMember 2016-06-30 2016-06-30 0000047217 hpq:ConsumerClassActionSuppliesAuthenticationProtocolMember 2017-11-01 2018-10-31 0000047217 hpq:ConsumerClassActionSuppliesAuthenticationProtocolMember 2018-09-18 2018-09-18 0000047217 hpq:OracleCorporationv.HPMember hpq:DamagesAwardedPastLostProfitsMember 2016-06-30 2016-06-30 0000047217 us-gaap:SettledLitigationMember hpq:Forsythetal.vs.HPInc.andHewlettPackardEnterpriseMember 2018-10-04 2018-10-05 0000047217 hpq:IndiaDirectorateOfRevenueIntelligenceProceedingsMember 2012-04-20 0000047217 hpq:OracleCorporationv.HPMember 2016-06-30 2016-06-30 0000047217 hpq:IndiaDirectorateOfRevenueIntelligenceProceedingsMember 2012-12-11 2012-12-11 0000047217 hpq:Jacksonetal.v.HPInc.andHewlettPackardEnterpriseMember 2017-07-24 2017-07-24 0000047217 2018-11-01 2018-11-01 0000047217 us-gaap:CustomerRelatedIntangibleAssetsMember 2018-11-01 2019-07-31 0000047217 us-gaap:TechnologyBasedIntangibleAssetsMember 2018-11-01 2019-07-31 0000047217 us-gaap:CustomerRelatedIntangibleAssetsMember 2019-07-31 0000047217 us-gaap:TechnologyBasedIntangibleAssetsMember 2018-10-31 0000047217 us-gaap:TechnologyBasedIntangibleAssetsMember 2019-07-31 0000047217 us-gaap:CustomerRelatedIntangibleAssetsMember 2018-10-31 xbrli:shares iso4217:USD hpq:employee hpq:segment iso4217:USD xbrli:shares xbrli:pure hpq:country hpq:commercial_paper_program hpq:case hpq:plaintiff hpq:subsidiary
Use these links to rapidly review the document


 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
________________________________
FORM 10-Q
(Mark One)
 
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended
July 31, 2019
Or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from            to            
Commission file number
1-4423
_________________________________________
HP INC.
(Exact name of registrant as specified in its charter)
Delaware
 
94-1081436
(State or other jurisdiction of
incorporation or organization)
 
(I.R.S. employer
identification no.)
1501 Page Mill Road
 
94304
Palo Alto,
California
 
(Zip Code)
(Address of principal executive offices)
 
 
(650) 857-1501
(Registrant’s telephone number, including area code)

____________________
Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common stock, par value $0.01 per share
HPQ
New York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 (the “Exchange Act”) during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes  No 
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes  No 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer Accelerated filer
Non-accelerated filer  Smaller reporting company
(Do not check if a smaller reporting company) Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined by Rule 12b-2 of the Exchange Act). Yes  No 
The number of shares of HP common stock outstanding as of July 31, 2019 was 1,481,913,639 shares.
 




HP INC. AND SUBSIDIARIES
Form 10-Q
For the Quarterly Period ended July 31, 2019
Table of Contents
In this report on Form 10-Q, for all periods presented, “we”, “us”, “our”, “company”, “HP” and “HP Inc.” refer to HP Inc. (formerly Hewlett-Packard Company) and its consolidated subsidiaries.


2


Forward-Looking Statements
This Quarterly Report on Form 10-Q, including “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Item 2 of Part I, contains forward-looking statements that involve risks, uncertainties and assumptions. If the risks or uncertainties ever materialize or the assumptions prove incorrect, the results of HP Inc. and its consolidated subsidiaries (“HP”) may differ materially from those expressed or implied by such forward-looking statements and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including, but not limited to, any projections of net revenue, margins, expenses, effective tax rates, net earnings, net earnings per share, cash flows, benefit plan funding, deferred taxes, share repurchases, foreign currency exchange rates or other financial items; any projections of the amount, timing or impact of cost savings or restructuring and other charges; any statements of the plans, strategies and objectives of management for future operations, including, but not limited to, our sustainability goals, our go-to-market strategy the execution of restructuring plans and any resulting cost savings, net revenue or profitability improvements; any statements concerning the expected development, performance, market share or competitive performance relating to products or services; any statements regarding current or future macroeconomic trends or events and the impact of those trends and events on HP and its financial performance; any statements regarding pending investigations, claims or disputes; any statements of expectation or belief, including with respect to the timing and expected benefits of acquisitions and other business combination and investment transactions; and any statements of assumptions underlying any of the foregoing. Risks, uncertainties and assumptions include the need to address the many challenges facing HP’s businesses; the competitive pressures faced by HP’s businesses; risks associated with executing HP’s strategy and business model changes; successfully innovating, developing and executing HP’s go-to-market strategy, including online, omnichannel and contractual sales, in an evolving distribution and reseller landscape; successfully competing and maintaining the value proposition of HP’s products, including supplies; the impact of macroeconomic and geopolitical trends and events; the need to manage third-party suppliers, manage HP’s global, multi-tier distribution network, limit potential misuse of pricing programs by HP’s channel partners, adapt to new or changing marketplaces and effectively deliver HP’s services; challenges to HP’s ability to accurately forecast inventories, demand and pricing, which may be due to HP’s multi-tiered channel, sales of HP’s products to unauthorized resellers or unauthorized resale of HP’s products; the protection of HP’s intellectual property assets, including intellectual property licensed from third parties; risks associated with HP’s international operations; the development and transition of new products and services and the enhancement of existing products and services to meet customer needs and respond to emerging technological trends; the execution and performance of contracts by HP and its suppliers, customers, clients and partners; the hiring and retention of key employees; integration and other risks associated with business combination and investment transactions; the results of the restructuring plans, including estimates and assumptions related to the cost (including any possible disruption of HP’s business) and the anticipated benefits of the restructuring plans; the impact of changes in tax laws, including uncertainties related to the interpretation and application of the Tax Cuts and Jobs Act of 2017 on HP’s tax obligations and effective tax rate; the resolution of pending investigations, claims and disputes; and other risks that are described herein, including, but not limited to, those discussed in this Quarterly Report on Form 10-Q, and in particular, the risks discussed in Part I, Item 1A “Risk Factors” in our Annual Report on Form 10-K, for the fiscal year ended October 31, 2018, and that are otherwise described or updated from time to time in HP’s other filings with the Securities and Exchange Commission (“the SEC”). HP assumes no obligation and does not intend to update these forward-looking statements.


3


Part I. Financial Information

ITEM 1. Financial Statements and Supplementary Data.
Index
 
Page
5
6
7
8
9
10
10
15
18
19
20
21
25
27
31
32
34
34
39
41
41


4


HP INC. AND SUBSIDIARIES
Consolidated Condensed Statements of Earnings
(Unaudited)
 
Three months ended July 31
 
Nine months ended July 31
 
2019
 
2018
 
2019
 
2018
 
In millions, except per share amounts
Net revenue
$
14,603

 
$
14,586

 
$
43,349

 
$
43,106

Costs and expenses:
 
 
 

 


 


Cost of revenue
11,698

 
11,898

 
35,103

 
35,134

Research and development
413

 
347

 
1,110

 
1,050

Selling, general and administrative
1,376

 
1,289

 
3,963

 
3,836

Restructuring and other charges
17

 
4

 
141

 
92

Acquisition-related (credits) charges
(9
)
 
10

 
12

 
97

Amortization of intangible assets
29

 
20

 
87

 
60

Total costs and expenses
13,524

 
13,568

 
40,416

 
40,269

Earnings from operations
1,079

 
1,018

 
2,933

 
2,837

Interest and other, net
(831
)
 

 
(902
)
 
(831
)
Earnings before taxes
248

 
1,018

 
2,031

 
2,006

Benefit from (provision for) taxes
931

 
(138
)
 
733

 
1,870

Net earnings
$
1,179

 
$
880

 
$
2,764

 
$
3,876

 
 
 
 
 
 
 
 
Net earnings per share:
 

 
 

 
 
 
 
Basic
$
0.79

 
$
0.55

 
$
1.81

 
$
2.38

Diluted
$
0.78

 
$
0.54

 
$
1.80

 
$
2.36

 
 
 
 
 
 
 

Weighted-average shares used to compute net earnings per share:
 

 
 

 
 
 

Basic
1,499

 
1,601

 
1,528

 
1,627

Diluted
1,508

 
1,618

 
1,537

 
1,645

The accompanying notes are an integral part of these Consolidated Condensed Financial Statements.


5


HP INC. AND SUBSIDIARIES
Consolidated Condensed Statements of Comprehensive Income
(Unaudited)
 
Three months ended July 31
 
Nine months ended July 31
 
2019
 
2018
 
2019
 
2018
 
In millions
Net earnings
$
1,179

 
$
880

 
$
2,764

 
$
3,876

Other comprehensive income (loss):
 

 
 

 
 

 
 

Change in unrealized components of available-for-sale debt securities:
 

 
 

 
 

 
 

Unrealized gains (losses) arising during the period

 
2

 

 
(3
)
Losses (gains) reclassified into earnings

 

 
3

 
(5
)
 

 
2

 
3

 
(8
)
Change in unrealized components of cash flow hedges:
 

 
 

 
 

 
 

Unrealized gains arising during the period
180

 
273

 
271

 
19

(Gains) losses reclassified into earnings
(86
)
 
17

 
(259
)
 
363


94

 
290

 
12

 
382

Change in unrealized components of defined benefit plans:
 

 
 

 
 

 
 

(Losses) gains arising during the period
(16
)
 
2

 
(20
)
 
2

Amortization of actuarial loss and prior service benefit
11

 
11

 
34

 
36

Curtailments, settlements and other
41

 
1

 
40

 
2


36

 
14

 
54

 
40

Change in cumulative translation adjustment
(30
)
 

 
(22
)
 

Other comprehensive income before taxes
100

 
306

 
47

 
414

Provision for taxes
(63
)
 
(31
)
 
(65
)
 
(35
)
Other comprehensive income (loss), net of taxes
37

 
275

 
(18
)
 
379

Comprehensive income
$
1,216

 
$
1,155

 
$
2,746

 
$
4,255

The accompanying notes are an integral part of these Consolidated Condensed Financial Statements.

6


HP INC. AND SUBSIDIARIES
Consolidated Condensed Balance Sheets
(Unaudited)
 
As of
 
July 31, 2019
 
October 31, 2018
 
In millions, except par value 
ASSETS
 

 
 

Current assets:
 

 
 

Cash and cash equivalents
$
4,919

 
$
5,166

Accounts receivable, net
5,295

 
5,113

Inventory
5,716

 
6,062

Other current assets
3,753

 
5,046

Total current assets
19,683

 
21,387

Property, plant and equipment, net
2,462

 
2,198

Goodwill
6,330

 
5,968

Other non-current assets
3,930

 
5,069

Total assets
$
32,405

 
$
34,622

LIABILITIES AND STOCKHOLDERS’ DEFICIT
 

 
 

Current liabilities:
 

 
 

Notes payable and short-term borrowings
$
328

 
$
1,463

Accounts payable
14,648

 
14,816

Employee compensation and benefits
956

 
1,136

Taxes on earnings
144

 
340

Other accrued liabilities
8,503

 
7,376

Total current liabilities
24,579

 
25,131

Long-term debt
4,730

 
4,524

Other non-current liabilities
4,227

 
5,606

Stockholders’ deficit:
 

 
 

Preferred stock, $0.01 par value (300 shares authorized; none issued)

 

Common stock, $0.01 par value (9,600 shares authorized; 1,482 and 1,560 shares issued and outstanding at July 31, 2019 and October 31, 2018, respectively)          
15

 
16

Additional paid-in capital
785

 
663

Accumulated deficit
(1,068
)
 
(473
)
Accumulated other comprehensive loss
(863
)
 
(845
)
Total stockholders’ deficit
(1,131
)
 
(639
)
Total liabilities and stockholders’ deficit
$
32,405

 
$
34,622

The accompanying notes are an integral part of these Consolidated Condensed Financial Statements.

7


HP INC. AND SUBSIDIARIES
Consolidated Condensed Statements of Cash Flows
(Unaudited)
 
Nine months ended July 31
 
2019
 
2018
 
In millions
Cash flows from operating activities:
 

 
 

Net earnings
$
2,764

 
$
3,876

Adjustments to reconcile net earnings to net cash provided by operating activities:
 

 
 

Depreciation and amortization
539

 
388

Stock-based compensation expense
233

 
203

Restructuring and other charges
141

 
92

Deferred taxes on earnings
325

 
(3,167
)
Other, net
176

 
234

Changes in operating assets and liabilities, net of acquisitions:
 

 
 

Accounts receivable
(22
)
 
23

Inventory
(24
)
 
(121
)
Accounts payable
(138
)
 
910

Taxes on earnings
(1,123
)
 
801

Restructuring and other
(122
)
 
(207
)
Other assets and liabilities
1,317

 
528

Net cash provided by operating activities
4,066

 
3,560

Cash flows from investing activities:
 

 
 

Investment in property, plant and equipment
(475
)
 
(359
)
Proceeds from sale of property, plant and equipment

 
110

Purchases of available-for-sale securities and other investments
(80
)
 
(320
)
Maturities and sales of available-for-sale securities and other investments
771

 
588

Collateral posted for derivative instruments
(32
)
 
(1,141
)
Collateral returned for derivative instruments
32

 
1,355

Payment made in connection with business acquisitions, net of cash acquired
(427
)
 
(1,036
)
Net cash used in investing activities
(211
)
 
(803
)
Cash flows from financing activities:
 

 
 

(Payments of) Proceeds from short-term borrowings with original maturities less than 90 days, net
(856
)
 
1,577

Proceeds from short-term borrowings with original maturities greater than 90 days

 
712

Proceeds from debt, net of issuance costs
94

 

Payment of short-term borrowings with original maturities greater than 90 days

 
(1,184
)
Payment of debt
(604
)
 
(2,059
)
Stock-based award activities
(58
)
 
34

Repurchase of common stock
(1,944
)
 
(1,959
)
Cash dividends paid
(734
)
 
(680
)
Net cash used in financing activities
(4,102
)
 
(3,559
)
Decrease in cash and cash equivalents
(247
)
 
(802
)
Cash and cash equivalents at beginning of period
5,166

 
6,997

Cash and cash equivalents at end of period
$
4,919

 
$
6,195

Supplemental schedule of non-cash activities:
 

 
 

Purchase of assets under capital leases
$
253

 
$
183

The accompanying notes are an integral part of these Consolidated Condensed Financial Statements.

8


HP INC. AND SUBSIDIARIES
Consolidated Condensed Statements of Stockholders’ Deficit
(Unaudited)
 
Common Stock
 
Additional
Paid-in Capital
 
 
 
Accumulated
Other
Comprehensive Loss
 
 Total Stockholders' Deficit
 
Number of Shares
 
Par Value
 
 
Accumulated Deficit
 
 
 
In millions, except number of shares in thousands
Balance April 30, 2018
1,610,512

 
$
16

 
$
510

 
$
(1,075
)
 
$
(1,314
)
 
$
(1,863
)
Net earnings
 
 
 
 
 
 
880

 
 
 
880

Other comprehensive income, net of taxes
 
 
 
 
 
 
 
 
275

 
275

Comprehensive income
 
 
 
 
 
 
 
 
 
 
1,155

Issuance of common stock in connection with employee stock plans and other
2,517

 
 
 
30

 
 
 
 
 
30

Repurchases of common stock
(30,621
)
 
 
 
(9
)
 
(692
)
 
 
 
(701
)
Cash dividends ($0.28 per common share)
 
 
 
 
 
 
(443
)
 
 
 
(443
)
Stock-based compensation expense
 
 
 
 
55

 
 
 
 
 
55

Balance July 31, 2018
1,582,408

 
$
16

 
$
586

 
$
(1,330
)
 
$
(1,039
)
 
$
(1,767
)
 
 
 
 
 
 
 
 
 
 
 
 
Balance April 30, 2019
1,506,292

 
$
15

 
$
723

 
$
(1,325
)
 
$
(900
)
 
$
(1,487
)
Net earnings


 


 


 
1,179

 


 
1,179

Other comprehensive income, net of taxes


 


 


 


 
37

 
37

Comprehensive income


 


 


 


 


 
1,216

Issuance of common stock in connection with employee stock plans and other
1,683

 


 
17

 


 


 
17

Repurchases of common stock
(26,061
)
 


 
(14
)
 
(513
)
 


 
(527
)
Cash dividends ($0.32 per common share)


 


 


 
(478
)
 


 
(478
)
Stock-based compensation expense


 


 
59

 


 


 
59

   Adjustment for adoption of accounting standards (Note 1)
 
 
 
 
 
 
69

 
 
 
69

Balance July 31, 2019
1,481,914

 
$
15

 
$
785

 
$
(1,068
)
 
$
(863
)
 
$
(1,131
)

 
Common Stock
 
Additional
Paid-in Capital
 
 
 
Accumulated
Other
Comprehensive Loss
 
 Total Stockholders' Deficit
 
Number of Shares
 
Par Value
 
 
Accumulated Deficit
 
 
 
In millions, except number of shares in thousands
Balance October 31, 2017
1,649,580

 
$
16

 
$
380

 
$
(2,386
)
 
$
(1,418
)
 
$
(3,408
)
Net earnings


 


 


 
3,876

 


 
3,876

Other comprehensive income, net of taxes


 


 


 


 
379

 
379

Comprehensive income


 


 


 


 


 
4,255

Issuance of common stock in connection with employee stock plans and other
19,198

 


 
26

 


 


 
26

Repurchases of common stock
(86,370
)
 


 
(23
)
 
(1,920
)
 


 
(1,943
)
Cash dividends ($0.56 per common share)


 


 


 
(900
)
 


 
(900
)
Stock-based compensation expense


 


 
203

 


 


 
203

Balance July 31, 2018
1,582,408

 
$
16

 
$
586

 
$
(1,330
)
 
$
(1,039
)
 
$
(1,767
)
 


 


 


 


 


 


Balance October 31, 2018
1,560,270

 
$
16

 
$
663

 
$
(473
)
 
$
(845
)
 
$
(639
)
Net earnings


 


 


 
2,764

 


 
2,764

Other comprehensive loss, net of taxes


 


 


 


 
(18
)
 
(18
)
Comprehensive income


 


 


 


 


 
2,746

Issuance of common stock in connection with employee stock plans and other
13,827

 


 
(69
)
 


 


 
(69
)
Repurchases of common stock
(92,183
)
 
(1
)
 
(41
)
 
(1,894
)
 


 
(1,936
)
Cash dividends ($0.64 per common share)


 


 


 
(971
)
 


 
(971
)
Stock-based compensation expense


 


 
232

 


 


 
232

Adjustment for adoption of accounting standards (Note 1)


 


 


 
(494
)
 


 
(494
)
Balance July 31, 2019
1,481,914

 
$
15

 
$
785

 
$
(1,068
)
 
$
(863
)
 
$
(1,131
)
The accompanying notes are an integral part of these Consolidated Condensed Financial Statements.

9

HP INC. AND SUBSIDIARIES
Notes to Consolidated Condensed Financial Statements
(Unaudited)


Note 1: Basis of Presentation
Basis of Presentation
The accompanying Consolidated Condensed Financial Statements of HP and its wholly-owned subsidiaries are prepared in conformity with United States (“U.S.”) generally accepted accounting principles (“GAAP”). The interim financial information is unaudited but reflects all normal adjustments that are necessary to provide a fair statement of results for the interim periods presented. This interim information should be read in conjunction with the Consolidated Financial Statements for the fiscal year ended October 31, 2018 in the Annual Report on Form 10-K, filed on December 13, 2018. The Consolidated Condensed Balance Sheet for October 31, 2018 was derived from audited financial statements.
Principles of Consolidation
The Consolidated Condensed Financial Statements include the accounts of HP and its subsidiaries and affiliates in which HP has a controlling financial interest or is the primary beneficiary. All intercompany balances and transactions have been eliminated.
Reclassifications
Effective at the beginning of its first quarter of fiscal year 2019, HP implemented an organizational change to align its business unit financial reporting more closely with its current business structure. HP reflected this change to its business unit information in prior reporting periods on an as-if basis. The reporting change had no impact to previously reported segment net revenue, consolidated net revenue, earnings from operations, net earnings or net earnings per share (“EPS”).
HP has reclassified certain prior-year amounts to conform to the current-year presentation as a result of the adoption of Accounting Standards Update (“ASU”) 2017-07, “Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost”. This adoption had no impact on previously reported consolidated net revenue, net earnings or net EPS.
For detailed discussion, see Note 2, “Segment Information”.
Use of Estimates
The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in HP’s Consolidated Condensed Financial Statements and accompanying notes. Actual results could differ materially from those estimates. 
Separation Transaction
On November 1, 2015, Hewlett-Packard Company completed the separation of Hewlett Packard Enterprise Company (“Hewlett Packard Enterprise”), Hewlett-Packard Company’s former enterprise technology infrastructure, software, services and financing businesses (the “Separation”). In connection with the Separation, HP entered into a separation and distribution agreement, a tax matters agreement, an employee matters agreement and various other agreements with Hewlett Packard Enterprise that provide a framework for the relationships between the parties. For more information on the impacts of these agreements, see Note 6, “Supplementary Financial Information”, Note 12, “Litigation and Contingencies” and Note 13, “Guarantees, Indemnifications and Warranties”.
Recently Adopted Accounting Pronouncements
In February 2018, the FASB issued guidance, which eliminates the stranded tax effects in other comprehensive income resulting from the Tax Cuts and Jobs Act (the “TCJA”). Because the amendments only relate to the reclassification of the income tax effects of the TCJA, the underlying guidance that requires that the effect of a change in tax laws or rates be included in income from operations is not affected. HP early adopted this guidance in the third quarter of fiscal year 2019. The implementation of this guidance resulted in a $69 million reclassification from accumulated other comprehensive loss to accumulated deficit.

10

HP INC. AND SUBSIDIARIES
Notes to Consolidated Condensed Financial Statements (Continued)
(Unaudited)
Note 1: Basis of Presentation (Continued)

In March 2017, the Financial Accounting Standards Board (“FASB”) issued guidance, which addresses the improvement of the presentation of net periodic pension and net periodic post-retirement benefit cost. The guidance requires entities to present the service cost component of net periodic benefit cost in the same income statement line item as other compensation costs arising from services rendered during the period. Additionally, the guidance requires that companies present the other components of the net periodic benefit cost separately from the line item that includes service cost and any other subtotal of income from operations. The amendments in this guidance are to be applied retrospectively for presentation in the Consolidated Condensed Statements of Earnings. A practical expedient allows companies to use the amount disclosed in its pension and other post-retirement plan note for the prior comparative periods as the estimation basis for applying the retrospective presentation requirements. HP adopted this guidance in the first quarter of fiscal year 2019 and elected to use the practical expedient. The adoption of this guidance has no impact on net earnings. The reclassification resulted in an increase in Selling, general and administrative expenses and a reduction in interest and other, net of $62 million and $180 million for the three and nine months ended July 31, 2018, respectively.
In November 2016, the FASB issued guidance, which addresses the presentation of restricted cash in the statement of cash flows.  The guidance requires entities to present the changes in the total of cash, cash equivalents, restricted cash, and restricted cash equivalents in the statement of cash flows. As a result, entities will no longer present transfers between cash and cash equivalents and restricted cash and restricted cash equivalents in the statement of cash flows. HP adopted this guidance in the first quarter of fiscal year 2019. The implementation of this guidance did not have any impact on its Consolidated Condensed Financial Statements.
In October 2016, the FASB issued guidance, which amends the existing accounting for Intra-Entity Transfers of Assets Other Than Inventory. The guidance (Topic 740) requires an entity to recognize the income tax consequences of intra-entity transfers, other than inventory, when the transfer occurs. It also requires modified retrospective transition with a cumulative catch-up adjustment to opening retained earnings in the period of adoption. HP adopted this guidance in the first quarter of fiscal year 2019. The implementation of this guidance resulted in $353 million of net reduction to its prepaid tax asset adjusted through accumulated deficit.
In August 2016, the FASB issued guidance, which amends the existing accounting standards for the classification of certain cash receipts and cash payments on the statement of cash flows. HP adopted this guidance in the first quarter of fiscal year 2019. The implementation of this guidance did not have any impact on its Consolidated Condensed Financial Statements.
In January 2016, the FASB issued guidance, which amends the existing accounting standards for the recognition and measurement of financial assets and financial liabilities. The guidance (Topic 825-10) primarily addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The amendments should be applied by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption, with other amendments related specifically to equity securities without readily determinable fair values applied prospectively. HP adopted this guidance in the first quarter of fiscal year 2019. The implementation of this guidance did not have a material impact on its Consolidated Condensed Financial Statements.
In May 2014, the FASB issued guidance, which amends the existing accounting standards for revenue recognition. The amendments (Topic 606) are based on the principle that revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. HP adopted the new revenue standard in the first quarter of fiscal year 2019 using the modified retrospective method applied to contracts that were not completed as of November 1, 2018. HP recognized the net impact of adoption as an increase to accumulated deficit by $212 million, net of tax on November 1, 2018.
The primary changes that impact the Consolidated Condensed Financial Statements are as below:
Variable consideration - HP estimates the transaction price for elements of consideration which are variable in nature. Certain distributor programs and incentive offerings which were recorded at the date the sales incentives were offered, will now be recorded at the time of revenue recognition based on estimates.
Costs to obtain a contract - The incremental costs to obtain a contract are primarily comprised of eligible sales commissions which were previously expensed as incurred. HP will capitalize the eligible sales commission costs for contracts with terms of more than one year and will amortize these costs over the expected period of the benefit.
The adoption has led to certain balance sheet reclassifications pertaining to return asset and liability and repurchase reserves which impacts accounts receivable, net, inventory, other current assets and other accrued liabilities balances.
Revenue Recognition
General

11

HP INC. AND SUBSIDIARIES
Notes to Consolidated Condensed Financial Statements (Continued)
(Unaudited)
Note 1: Basis of Presentation (Continued)

HP recognizes revenues at a point in time or over time depicting the transfer of promised goods or services to customers in an amount that reflects the consideration to which HP expects to be entitled in exchange for those goods or services. HP follows the five-step model for revenue recognition as summarized below:
1.
Identify the contract with a customer - A contract with customer exists when (i) it is approved and signed by all parties, (ii) each party’s rights and obligations can be identified, (iii) payment terms are defined, (iv) it has commercial substance and (v) the customer has the ability and intent to pay. HP evaluates customers’ ability to pay based on various factors like historical payment experience, financial metrics and customer credit scores.
2.
Identify the performance obligations in the contract - HP evaluates each performance obligation in an arrangement to determine whether it represents a separate unit of accounting, such as hardware and/or service. A performance obligation constitutes a separate unit of accounting when the customer can benefit from the goods or services either on its own or together with other resources that are readily available to the customer and the performance obligation is distinct within the context of the contract.
3.
Determine the transaction price - Transaction price is the amount of consideration to which HP expects to be entitled in exchange for transferring goods or services to the customer. If the transaction price includes a variable amount, HP estimates the amount it expects to be entitled to using either the expected value or most likely amount method.
HP reduces the transaction price at the time of revenue recognition for customer and distributor programs and incentive offerings, rebates, promotions, other volume-based incentives and expected returns. HP uses estimates to determine the expected variable consideration for such programs based on factors like historical experience, expected consumer behavior and market conditions.
HP has elected the practical expedient of not accounting for significant financing components if the period between revenue recognition and when the customer pays for the product or service is one year or less.
4.
Allocate the transaction price to performance obligations in the contract - When a sales arrangement contains multiple performance obligations, such as hardware and/or services, HP allocates revenue to each performance obligation in proportion to their selling price. The selling price for each performance obligation is based on its standalone selling price (“SSP”). HP establishes SSP using the price charged for a performance obligation when sold separately (“observable price”) and, in some instances, using the price established by management having the relevant authority. When observable price is not available, HP establishes SSP based on management judgment considering internal factors such as margin objectives, pricing practices and controls, customer segment pricing strategies and the product life-cycle. Consideration is also given to market conditions such as competitor pricing strategies and technology industry life cycles.
5.
Recognize revenue when (or as) the performance obligation is satisfied - Revenue is recognized when, or as, a performance obligation is satisfied by transferring control of a promised good or service to a customer. HP generally invoices the customer upon delivery of the goods or services and the payments are due as per contract terms. For fixed price support or maintenance contracts that are in the nature of stand-ready obligations, payments are generally received in advance from customers and revenue is recognized on a straight-line basis over time for the duration of the contract.
HP reports revenue net of any taxes collected from customers and remitted to government authorities, and the collected taxes are recorded as other accrued liabilities until remitted to the relevant government authority. HP includes costs related to shipping and handling in cost of revenue.
HP records revenue on a gross basis when HP is a principal in the transaction and on a net basis when HP is acting as an agent between the customer and the vendor. HP considers several factors to determine whether it is acting as a principal or an agent, most notably whether HP is the primary obligor to the customer, has established its own pricing and has inventory and credit risks.
Hardware
HP transfers control of the products to the customer at the time the product is delivered to the customer and recognizes revenue accordingly, unless customer acceptance is uncertain or significant obligations to the customer remain unfulfilled.
Services
HP recognizes revenue from fixed-price support, maintenance and other service contracts over time depicting the pattern of service delivery and recognizes the costs associated with these contracts as incurred.
Contract Assets and Liabilities
Contract assets are rights to consideration in exchange for goods or services that HP has transferred to a customer when such right is conditional on something other than the passage of time. Such contract assets are insignificant to HP’s Consolidated Condensed Financial Statements.

12

HP INC. AND SUBSIDIARIES
Notes to Consolidated Condensed Financial Statements (Continued)
(Unaudited)
Note 1: Basis of Presentation (Continued)

Contract liabilities are recorded as deferred revenues when amounts invoiced to customers are more than the revenues recognized or when payments are received in advance for fixed price support or maintenance contracts. The short-term and long-term deferred revenues are reported within the other accrued liabilities and other non-current liabilities respectively.
Cost to obtain a contract and fulfillment cost
Incremental direct costs of obtaining a contract primarily consist of sales commissions. HP has elected the practical expedient to expense as incurred the costs to obtain a contract with a benefit period equal to or less than one year. For contracts with a period of benefit greater than one year, HP capitalizes incremental costs of obtaining a contract with a customer and amortizes these costs over their expected period of benefit provided such costs are recoverable.
Fulfillment costs consist of set-up and transition costs related to other service contracts. These costs generate or enhance resources of HP that will be used in satisfying the performance obligation in the future and are capitalized and amortized over the expected period of the benefit, provided such costs are recoverable.
See Note 6, “Supplementary Financial Information” for details on net revenue by region, cost to obtain a contract and fulfillment cost, contract liabilities and value of remaining performance obligations.

Transition disclosure
In accordance with the modified retrospective method transition requirements, HP has presented the financial statement line items impacted and adjusted to compare to presentation under the prior GAAP for the Consolidated Condensed Balance Sheet as of July 31, 2019 and for Consolidated Condensed Statement of Earnings for three months and nine months ended July 31, 2019.
 
As of July 31, 2019
CONSOLIDATED CONDENSED BALANCE SHEET ITEMS
As Reported
 
Effect of Adoption
 
Balances Without Adoption of Topic 606
 
In millions
ASSETS


 


 


Accounts receivable, net
$
5,295

 
$
(212
)
 
$
5,083

Inventory
5,716

 
186

 
5,902

Other current assets
3,753

 
(186
)
 
3,567

Other non-current assets
$
3,930

 
$
(31
)
 
$
3,899

LIABILITIES AND STOCKHOLDERS' DEFICIT

 

 

Taxes on earnings
$
144

 
$
35

 
$
179

Other accrued liabilities
8,503

 
(465
)
 
8,038

Accumulated deficit
$
(1,068
)
 
$
187

 
$
(881
)
 
Three months ended July 31, 2019
 
Nine months ended July 31, 2019
CONSOLIDATED CONDENSED STATEMENT OF EARNINGS ITEMS
As Reported
 
Effect of Adoption
 
Balances Without Adoption of Topic 606
 
As Reported
 
Effect of Adoption
 
Balances Without Adoption of Topic 606
 
In millions
Net revenue
$
14,603

 
$
17

 
$
14,620

 
$
43,349

 
$
(31
)
 
$
43,318

Earnings from operations
1,079

 
17

 
1,096

 
2,933

 
(31
)
 
2,902

Earnings before taxes
248

 
17

 
265

 
2,031

 
(31
)
 
2,000

Benefit from (provision for) taxes
931

 
(3
)
 
928

 
733

 
6

 
739

Net earnings
$
1,179

 
$
14

 
$
1,193

 
$
2,764

 
$
(25
)
 
$
2,739

Opening Balance Sheet Adjustments:
The following table presents the adoption impact of the new accounting standards to HP’s previously reported financial statements:

13

HP INC. AND SUBSIDIARIES
Notes to Consolidated Condensed Financial Statements (Continued)
(Unaudited)
Note 1: Basis of Presentation (Continued)

 
As Reported on
October 31, 2018
 
Adjustments under Topic 606
 
Other (1)
 
As Restated on
November 1, 2018
 
In millions
ASSETS


 


 

 


Accounts receivable, net
$
5,113

 
$
213

 
$

 
$
5,326

Inventory
6,062

 
(203
)
 

 
5,859

Other current assets
5,046

 
203

 
(90
)
 
5,159

Other non-current assets
$
5,069

 
$
33

 
$
(263
)
 
$
4,839

LIABILITIES AND STOCKHOLDERS' DEFICIT

 

 

 

Taxes on earnings
$
340

 
$
(39
)
 
$

 
$
301

Other accrued liabilities
7,376

 
497

 

 
7,873

Accumulated other comprehensive loss
(845
)
 

 
(2
)
 
(847
)
Accumulated deficit
$
(473
)
 
$
(212
)
 
$
(351
)
 
$
(1,036
)
(1)     Other includes $353 million adjustment related to Topic 740.
Recently Issued Accounting Pronouncements Not Yet Adopted
In August 2017, the FASB issued guidance, which amends the existing accounting standards for derivatives and hedging. The amendment improves the financial reporting of hedging relationships to better represent the economic results of an entity’s risk management activities in its financial statements and made certain targeted improvements to simplify the application of the hedge accounting guidance in current U.S. GAAP. HP is required to adopt the guidance in the first quarter of fiscal year 2020. Earlier adoption is permitted. Based on the current assessment, HP expects that the implementation of this guidance will not have a material impact on its Consolidated Condensed Financial Statements.
In June 2016, the FASB issued guidance, which requires credit losses on financial assets measured at amortized cost basis to be presented at the net amount expected to be collected, not based on incurred losses. Further, credit losses on available-for-sale debt securities should be recorded through an allowance for credit losses limited to the amount by which fair value is below amortized cost. HP is required to adopt the guidance in the first quarter of fiscal year 2021. Earlier adoption is permitted. HP is currently evaluating the timing and the impact of this guidance on the Consolidated Condensed Financial Statements.
In February 2016, the FASB issued guidance, which amends the existing accounting standards for leases. Consistent with current guidance, the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification. Under the new guidance, a lessee will be required to recognize assets and liabilities for all leases with lease terms of more than twelve months. HP will adopt this guidance in the first quarter of fiscal year 2020 and will apply the modified retrospective transition option made available in July 2018 by the FASB, whereby comparative periods will not be retrospectively presented in the Consolidated Condensed Financial Statements. There are certain practical expedients that can be elected which the company is currently evaluating for application. HP has established a cross-functional implementation team to assist in determining the scope of impact, identifying changes to its business processes, implementing a new system solution and evaluating changes to internal controls to support adoption of the new standard. HP is in the process of completing the evaluation of the impacts from the new lease accounting standard. Based on the current assessment, HP expects the adoption of this standard to have a material impact on the Consolidated Condensed Balance Sheet.


14

HP INC. AND SUBSIDIARIES
Notes to Consolidated Condensed Financial Statements (Continued)
(Unaudited)


Note 2. Segment Information
HP is a leading global provider of personal computing and other access devices, imaging and printing products, and related technologies, solutions and services. HP sells to individual consumers, small- and medium-sized businesses (“SMBs”) and large enterprises, including customers in the government, health and education sectors.
HP’s operations are organized into three reportable segments: Personal Systems, Printing and Corporate Investments. HP’s organizational structure is based on many factors that the chief operating decision maker (“CODM”) uses to evaluate, view and run its business operations, which include, but are not limited to, customer base and homogeneity of products and technology. The segments are based on this organizational structure and information reviewed by HP’s CODM to evaluate segment results. The CODM uses several metrics to evaluate the performance of the overall business, including earnings from operations, and uses these results to allocate resources to each of the segments.
A summary description of each segment is as follows:
Personal Systems offers Commercial and Consumer desktop and notebook personal computers (“PCs”), Workstations, thin clients, Commercial mobility devices, retail point-of-sale (“POS”) systems, displays and other related accessories, software, support and services. HP groups Commercial notebooks, Commercial desktops, Commercial services, Commercial mobility devices, Commercial detachables and convertibles, Workstations, retail POS systems and thin clients into Commercial PCs and Consumer notebooks, Consumer desktops, Consumer services and Consumer detachables into Consumer PCs when describing performance in these markets. Described below are HP’s global business capabilities within Personal Systems:
Commercial PCs are optimized for use by customers, including enterprise, public sector and SMB customers, with a focus on robust designs, security, serviceability, connectivity, reliability and manageability in networked and cloud-based environments. Additionally, HP offers a range of services and solutions to enterprise, public sector and SMB customers to help them manage the lifecycle of their PC and mobility installed base. 
Consumer PCs are optimized for consumer usage, focusing on gaming, consuming multi-media for entertainment, personal life activities, staying connected, sharing information, getting things done for work including creating content, staying informed and security.
Personal Systems groups its global business capabilities into the following business units when reporting business performance:
Notebooks consists of Consumer notebooks, Commercial notebooks, Mobile workstations and Commercial mobility devices;
Desktops includes Consumer desktops, Commercial desktops, thin clients, and retail POS systems;
Workstations consists of desktop workstations and accessories; and
Other consists of Consumer and Commercial services as well as other Personal Systems capabilities.
Printing provides Consumer and Commercial printer hardware, Supplies, solutions and services, as well as scanning devices. Printing is also focused on imaging solutions in the commercial and industrial markets. Described below are HP’s global business capabilities within Printing.
Office Printing Solutions delivers HP’s office printers, services and solutions to SMBs and large enterprises. It also includes some Samsung-branded and OEM hardware and solutions. HP goes to market through its extensive channel network and directly with HP sales. Ongoing key initiatives include the shift to contractual through our Managed Print Service (“MPS”) and solutions offerings for the A3 copier and multifunction printer market, printer security solutions, PageWide solutions and award-winning JetIntelligence LaserJet products.
Home Printing Solutions delivers innovative printing products, services and solutions for the home, home business and micro business customers utilizing both HP’s Ink and Laser technologies (including laser technology from some Samsung-branded products). Initiatives such as Instant Ink subscription services and Continuous Ink and Toner Supply Systems provide business model innovation to benefit and expand HP’s existing customer base, while technologies like Photo Lifestyle, HP Smart App and HP SmartTasks drive print relevance for a mobile generation.
Graphics Solutions delivers large-format, commercial and industrial solutions to print service providers and packaging converters through a wide portfolio of printers and presses (HP DesignJet, HP Latex, HP Stitch, HP Scitex, HP Indigo and HP PageWide Web Presses). Ongoing key initiatives include accelerating the transformation of industrial prints from analog to digital.

15

HP INC. AND SUBSIDIARIES
Notes to Consolidated Condensed Financial Statements (Continued)
(Unaudited)
Note 2: Segment Information (Continued)

3D Printing delivers the HP Multi-Jet Fusion 3D Printing Solution designed for prototyping and production of functional parts and functioning on an open platform facilitating the development of new 3D printing materials.
Printing groups its global business capabilities into the following business units when reporting business performance:
Commercial Hardware consists of Office Printing Solutions, Graphics Solutions and 3D Printing, excluding Supplies;
Consumer Hardware consists of Home Printing Solutions, excluding Supplies; and
Supplies comprises a set of highly innovative consumable products, ranging from Ink and Laser cartridges to media, graphics supplies and 3D printing supplies, for recurring use in Consumer and Commercial Hardware.
Corporate Investments includes HP Labs and certain business incubation projects.
The accounting policies HP uses to derive segment results are substantially the same as those used by HP in preparing these financial statements. HP derives the results of the business segments directly from its internal management reporting system.
HP does not allocate certain operating expenses, which it manages at the corporate level, to its segments. These unallocated amounts include certain corporate governance costs and infrastructure investments, stock-based compensation expense, restructuring and other charges, acquisition-related charges and amortization of intangible assets. Pursuant to the adoption of ASU 2017-07 in the first quarter of fiscal year 2019, HP now reclassifies market-related retirement credits and all other components (excluding the service cost component) of net periodic benefit cost to Interest and other, net in Consolidated Condensed Statement of Earnings. HP reflected this change in prior reporting periods on an as-if basis. This adoption did not have a material impact to previously reported segment earnings from operations.
Realignment
Effective at the beginning of its first quarter of fiscal year 2019, HP implemented an organizational change to align its business unit financial reporting more closely with its current business structure. The organizational change resulted in the transfer of certain Samsung-branded product categories from Commercial to Consumer within the Printing segment. HP reflected this change to its business unit information in prior reporting periods on an as-if basis. The reporting change had no impact to previously reported segment net revenue, consolidated net revenue, earnings from operations, net earnings or net EPS.

16

HP INC. AND SUBSIDIARIES
Notes to Consolidated Condensed Financial Statements (Continued)
(Unaudited)
Note 2: Segment Information (Continued)

Segment Operating Results from Operations and the reconciliation to HP consolidated results were as follows:
 
Three months ended July 31
 
Nine months ended July 31
 
2019
 
2018
 
2019
 
2018
 
In millions
Net Revenue:
 
 
 
 
Personal Systems
$
9,690

 
$
9,395

 
$
28,268

 
$
27,597

Printing
4,912

 
5,188

 
15,084

 
15,505

Corporate Investments
1

 
1

 
2

 
3

Total segments
$
14,603

 
$
14,584

 
$
43,354

 
$
43,105

Other

 
2

 
(5
)
 
1

Total net revenue
$
14,603

 
$
14,586

 
$
43,349

 
$
43,106

Earnings before taxes:
 

 
 

 
 

 
 

Personal Systems
$
547

 
$
362

 
$
1,342

 
$
1,026

Printing
765

 
829

 
2,425

 
2,465

Corporate Investments
(23
)
 
(22
)
 
(71
)
 
(62
)
Total segment earnings from operations
$
1,289

 
$
1,169

 
$
3,696

 
$
3,429

Corporate and unallocated costs and other
(113
)
 
(62
)
 
(290
)
 
(140
)
Stock-based compensation expense
(60
)
 
(55
)
 
(233
)
 
(203
)
Restructuring and other charges
(17
)
 
(4
)
 
(141
)
 
(92
)
Acquisition-related credits (charges)
9

 
(10
)
 
(12
)
 
(97
)
Amortization of intangible assets
(29
)
 
(20
)
 
(87
)
 
(60
)
Interest and other, net
(831
)
 

 
(902
)
 
(831
)
Total earnings before taxes          
$
248

 
$
1,018

 
$
2,031

 
$
2,006


Net revenue by segment and business unit was as follows:
 
Three months ended July 31
 
Nine months ended July 31
 
2019
 
2018
 
2019
 
2018
 
In millions
Notebooks
$
5,630

 
$
5,634

 
$
16,648

 
$
16,382

Desktops
3,111

 
2,869

 
8,908

 
8,576

Workstations
609

 
588

 
1,740

 
1,669

Other
340

 
304

 
972

 
970

Personal Systems
9,690

 
9,395

 
28,268

 
27,597

Supplies
3,164

 
3,405

 
9,762

 
10,190

Commercial Hardware
1,160

 
1,129

 
3,429

 
3,311

Consumer Hardware
588

 
654

 
1,893

 
2,004

Printing
4,912

 
5,188

 
15,084

 
15,505

Corporate Investments
1

 
1

 
2

 
3

Total segment net revenue
14,603

 
14,584

 
43,354

 
43,105

Other

 
2

 
(5
)
 
1

Total net revenue
$
14,603

 
$
14,586

 
$
43,349

 
$
43,106

        

17

HP INC. AND SUBSIDIARIES
Notes to Consolidated Condensed Financial Statements
(Unaudited)

Note 3: Restructuring and Other Charges
Summary of Restructuring Plans
HP’s restructuring activities for the nine months ended July 31, 2019 and 2018 summarized by plan were as follows:
 
Fiscal 2017 Plan
 
 
 
Severance
 
Infrastructure and other
 
Other prior-year plans(1)
 
Total
 
In millions
Accrued balance as of October 31, 2018
$
50

 
$

 
$
9

 
$
59

Charges
110

 
20

 

 
130

Cash payments
(100
)
 
(9
)
 
(3
)
 
(112
)
Non-cash and other adjustments
(4
)
 
(11
)
 

 
(15
)
Accrued balance as of July 31, 2019
$
56

 
$

 
$
6

 
$
62

Total costs incurred to date as of July 31, 2019
$
363

 
$
101

 
$
1,317

 
$
1,781

 
 
 
 
 
 
 
 
Reflected in Consolidated Condensed Balance Sheets
 
 
 
 
 
 
 
Other accrued liabilities
56

 

 
5

 
61

Other non-current liabilities

 

 
1

 
1

 
 
 
 
 
 
 
 
Accrued balance as of October 31, 2017
76

 
19

 
13

 
108

Charges (reversals)
72

 
(16
)
 

 
56

Cash payments
(110
)
 
(32
)
 
(4
)
 
(146
)
Non-cash and other adjustments
(2
)
 
29

 
1

 
28

Accrued balance as of July 31, 2018
$
36

 
$

 
$
10

 
$
46



HP’s restructuring charges for the three months ended July 31, 2019 summarized by the plans outlined below were as follows:

Fiscal 2017 Plan
 
 
 
 

Severance
 
Infrastructure and other
 
Other prior-year plans(1)
 
Total

In millions
For the three months ended July 31, 2019
$
13

 
$
1

 
$

 
$
14

(1) 
Includes prior-year plans which are considered substantially complete. HP does not expect any further material activity associated with these plans.

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.
Other Charges
Other charges include non-recurring costs, including those as a result of 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. For the three and nine months ended July 31, 2019, HP incurred $3 million and $11 million of other charges, respectively. For the three and nine months ended July 31, 2018, HP incurred $12 million and $36 million of other charges, respectively.

18

HP INC. AND SUBSIDIARIES
Notes to Consolidated Condensed Financial Statements (Continued)
(Unaudited)


Note 4: Retirement and Post-Retirement Benefit Plans
The components of HP’s pension and post-retirement (credit) benefit cost recognized in the Consolidated Condensed Statements of Earnings were as follows:
 
Three months ended July 31
 
U.S. Defined Benefit Plans
 
Non-U.S. Defined Benefit Plans
 
Post-Retirement Benefit Plans
 
2019
 
2018
 
2019
 
2018
 
2019
 
2018
 
In millions
Service cost
$

 
$

 
$
14

 
$
14

 
$

 
$

Interest cost
123

 
113

 
6

 
6

 
4

 
4

Expected return on plan assets
(146
)
 
(180
)
 
(9
)
 
(10
)
 
(5
)
 
(6
)
Amortization and deferrals:
 

 
 

 
 

 
 

 
 

 
 

Actuarial loss (gain)
15

 
14

 
8

 
7

 
(8
)
 
(4
)
Prior service benefit

 

 
(1
)
 
(1
)
 
(3
)
 
(5
)
Net periodic (credit) benefit cost
(8
)
 
(53
)
 
18

 
16

 
(12
)
 
(11
)
Curtailment gain

 

 
(9
)
 

 

 

Settlement loss
1

 
1

 

 

 

 

Total periodic (credit) benefit cost
$
(7
)
 
$
(52
)
 
$
9

 
$
16

 
$
(12
)
 
$
(11
)

 
Nine months ended July 31
 
U.S. Defined Benefit Plans
 
Non-U.S. Defined Benefit Plans
 
Post- Retirement Benefit Plans
 
2019
 
2018
 
2019
 
2018
 
2019
 
2018
 
In millions
Service cost
$

 
$

 
$
43

 
$
42

 
$

 
$

Interest cost
369

 
339

 
18

 
18

 
12

 
12

Expected return on plan assets
(437
)
 
(540
)
 
(28
)
 
(30
)
 
(15
)
 
(18
)
Amortization and deferrals:
 
 
 
 
 
 
 
 
 
 
 
Actuarial loss (gain)
45

 
45

 
24

 
21

 
(24
)
 
(12
)
Prior service benefit

 

 
(2
)
 
(3
)
 
(9
)
 
(15
)
Net periodic (credit) benefit cost
(23
)
 
(156
)
 
55

 
48

 
(36
)
 
(33
)
Curtailment gain

 

 
(9
)
 

 

 

Settlement loss
2

 
2

 

 

 

 

Total periodic (credit) benefit cost
$
(21
)
 
$
(154
)
 
$
46

 
$
48

 
$
(36
)
 
$
(33
)

Employer Contributions and Funding Policy
HP’s policy is to fund its pension plans so that it makes at least the minimum contribution required by local government, funding and taxing authorities.
During fiscal year 2019, HP anticipates making contributions of approximately $46 million to its non-U.S. pension plans, approximately $32 million to its U.S. non-qualified plan participants and approximately $6 million to cover benefit claims under HP’s post-retirement benefit plans. During the nine months ended July 31, 2019, HP contributed $19 million to its non-U.S. pension plans, paid $24 million to cover benefit payments to U.S. non-qualified plan participants and paid $2 million to cover benefit claims under HP’s post-retirement benefit plans.
HP’s pension and other post-retirement benefit costs and obligations depend on various assumptions. Differences between expected and actual returns on investments and changes in discount rates and other actuarial assumptions are reflected as unrecognized gains or losses, and such gains or losses are amortized to earnings in future periods. A deterioration in the funded status of a plan could result in a need for additional company contributions or an increase in net pension and post-retirement benefit costs in future periods. Actuarial gains or losses are determined at the measurement date and amortized over the remaining service life for active plans or the life expectancy of plan participants for frozen plans.

19

HP INC. AND SUBSIDIARIES
Notes to Consolidated Condensed Financial Statements (Continued)
(Unaudited)


Note 5: Taxes on Earnings
Provision for Taxes
On December 22, 2017, the TCJA was enacted into law. Given the significance of the legislation, the SEC staff issued Staff Accounting Bulletin No. 118 (SAB 118) in December 2017, which allows registrants to record provisional amounts during a one year “measurement period”.
As of January 31, 2019, HP completed its accounting for the tax effects of the TCJA with no material changes to the provisional amounts recorded during the measurement period.
In January 2018, the FASB released guidance on the accounting for tax on the Global Minimum Tax provisions of TCJA. The Global Minimum Tax provisions impose a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations. The guidance indicates that either accounting for deferred taxes related to Global Minimum Tax inclusions or to treat any taxes on Global Minimum Tax inclusions as period cost are both acceptable methods subject to an accounting policy election. HP has elected to treat the Global Minimum Tax inclusions as period costs.
HP’s effective tax rate was (375.4)% and 13.6% for the three months ended July 31, 2019 and 2018, respectively, and (36.1)% and (93.2)% for the nine months ended July 31, 2019 and 2018, respectively. The difference between the U.S. federal statutory tax rate of 21% and HP’s effective tax rate for the three and nine months ended July 31, 2019 is primarily due to the resolution of various audits, transitional impacts of U.S. tax reform, and favorable tax rates associated with certain earnings from HP’s operations in lower-tax jurisdictions throughout the world. For the three and nine months ended July 31, 2018 HP’s effective tax rate generally differs from the U.S. federal statutory rate of 23% due to the transitional impacts of U.S. tax reform and resolution of various audits and tax litigation, partially offset by favorable tax rates associated with certain earnings from HP’s operations in lower-tax jurisdictions throughout the world.
During the three and nine months ended July 31, 2019, HP recorded $1.1 billion of net tax benefits related to discrete items in the provision for taxes. This amount included tax benefits of $1.0 billion related to various audit settlements, $75 million due to ability to utilize tax attributes, along with $57 million and $78 million for the three and nine months ended July 31, 2019, respectively, related to U.S. tax reform as a result of new guidance issued by the U.S. Internal Revenue Service (“IRS”). These benefits were partially offset by valuation allowance charges of $98 million for the three and nine months ended July 31, 2019. In addition to the discrete items mentioned above, HP recorded excess tax benefits of $21 million associated with stock options, restricted stock units and performance-adjusted restricted stock units for the nine months ended July 31, 2019.
During the three and nine months ended July 31, 2018, HP recorded $7 million and $2.2 billion, respectively, of net tax benefits related to discrete items in the provision for taxes. As of July 31, 2018, HP had not yet completed its analysis of the full impact of TCJA. For the three months ended July 31, 2018, HP recorded net tax benefits of $12 million related to acquisition costs offset by other charges of $5 million. For the nine months ended July 31, 2018, HP recorded $5.5 billion net benefit for the decrease in deferred tax liability on unremitted foreign earnings and $1.5 billion net tax benefit related to audit settlements. These benefits are partially offset by $3.2 billion net expense for the deemed repatriation tax, $1.2 billion net expense for remeasurement of its deferred tax assets and liabilities to the new U.S. statutory tax rate and $379 million related to remeasurement of its U.S. deferred tax assets that were expected to be realized at a lower rate. In addition to the discrete items mentioned above, HP recorded excess tax benefits of $2 million and $36 million, respectively, on stock options, restricted stock units and performance-adjusted restricted stock units for the three and nine months ended July 31, 2018.
Uncertain Tax Positions
As of July 31, 2019, the amount of gross unrecognized tax benefits was $896 million, of which up to $780 million would affect HP’s effective tax rate if and when realized. Total gross unrecognized tax benefits decreased by $6.9 billion for the nine months ended July 31, 2019, primarily related to the resolution of various audits. HP recognizes interest income from favorable settlements and interest expense and penalties accrued on unrecognized tax benefits in the provision for taxes in the Consolidated Condensed Statements of Earnings. As of July 31, 2019 and 2018, HP had accrued $75 million and $149 million, respectively, for interest and penalties.
HP engages in continuous discussions and negotiations with taxing authorities regarding tax matters in various jurisdictions. HP does not expect complete resolution of any IRS audit cycle within the next 12 months. However, it is reasonably possible that certain federal, foreign and state tax issues may be concluded in the next 12 months. Accordingly, HP believes it is reasonably possible that its existing gross unrecognized tax benefits may be reduced by an amount up to $28 million within the next 12 months.
HP is subject to income tax in the United States and approximately 60 other countries and is subject to routine corporate income tax audits in many of these jurisdictions. In addition, HP is subject to numerous ongoing audits by federal, state and foreign tax authorities. The U.S. Internal Revenue Service is conducting an audit of HP’s 2016 income tax return.

20

HP INC. AND SUBSIDIARIES
Consolidated Condensed Statements of Earnings (Continued)
(Unaudited)

Note 6: Supplementary Financial Information
Accounts Receivable, net
 
As of
 
July 31, 2019
 
October 31, 2018
 
In millions
Accounts receivable
$
5,410

 
$
5,242

Allowance for doubtful accounts
(115
)
 
(129
)
 
$
5,295

 
$
5,113


The allowance for doubtful accounts related to accounts receivable and changes were as follows:
 
Nine months ended July 31, 2019
 
In millions
Balance at beginning of period
$
129

Provision for doubtful accounts
47

Deductions, net of recoveries
(61
)
Balance at end of period
$
115


HP has third-party arrangements, consisting of revolving short-term financing, which provide liquidity to certain partners in order to facilitate their working capital requirements. These financing arrangements, which in certain circumstances may contain partial recourse, result in a transfer of HP’s receivables and risk to the third party. As these transfers qualify as true sales under the applicable accounting guidance, the receivables are de-recognized from the Consolidated Condensed Balance Sheets upon transfer, and HP receives a payment for the receivables from the third party within a mutually agreed upon time period. For arrangements involving an element of recourse, the recourse obligation is measured using market data from the similar transactions and reported as a current liability in the Consolidated Condensed Balance Sheets. The recourse obligations as of July 31, 2019 and October 31, 2018 were not material. The costs associated with the sales of trade receivables for the three months ended July 31, 2019 and 2018 were not material.
The following is a summary of the activity under these arrangements:
 
Three months ended July 31
 
Nine months ended July 31
 
2019
 
2018
 
2019
 
2018
 
In millions
Balance at beginning of period(1)
$
182

 
$
171

 
$
165

 
$
147

Trade receivables so