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(Mark One)
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x
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the fiscal year ended October 31, 2017
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Or
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o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the transition period from to
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Commission file number 1-4423
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Delaware
(State or other jurisdiction of
incorporation or organization)
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94-1081436
(I.R.S. employer
identification no.)
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1501 Page Mill Road, Palo Alto, California
(Address of principal executive offices)
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94304
(Zip code)
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Registrant’s telephone number, including area code:
(650) 857-1501
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Securities registered pursuant to Section 12(b) of the Act:
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Title of each class
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Name of each exchange on which registered
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Common stock, par value $0.01 per share
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New York Stock Exchange
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Securities registered pursuant to Section 12(g) of the Act:
None
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Large accelerated filer
x
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Accelerated filer
o
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Non-accelerated filer
o
(Do not check if a smaller reporting company)
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Smaller reporting company
o
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Emerging growth company
o
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DOCUMENTS INCORPORATED BY REFERENCE
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DOCUMENT DESCRIPTION
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10-K PART
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Portions of the Registrant’s proxy statement related to its 2017 Annual Meeting of Stockholders to be filed pursuant to Regulation 14A within 120 days after Registrant’s fiscal year end of October 31, 2017 are incorporated by reference into Part III of this Report.
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III
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101.INS
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XBRL Instance Document
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101.SCH
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XBRL Taxonomy Extension Schema Document
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101.CAL
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XBRL Taxonomy Calculation Linkbase Document
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101.DEF
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XBRL Taxonomy Extension Definition Linkbase Document
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101.LAB
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XBRL Taxonomy Extension Labels Linkbase Document
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101.PRE
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XBRL Taxonomy Extension Presentation Linkbase Document
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Page
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PART I
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Item 1.
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Item 1A.
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Item 1B.
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Item 2.
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Item 3.
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Item 4.
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PART II
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Item 5.
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Item 6.
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Item 7.
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Item 7A.
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Item 8.
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Item 9.
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Item 9A.
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Item 9B.
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PART III
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Item 10.
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Item 11.
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Item 12.
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Item 13.
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Item 14.
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PART IV
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Item 15.
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Item 16.
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•
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Commercial Hardware
consists of Office Printing Solutions, Graphics Solutions and 3D Printing, excluding supplies;
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•
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Consumer Hardware
includes Home Printing Solutions, excluding supplies; and
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•
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Supplies
comprises a set of highly innovative advanced consumable products, ranging from Ink and Laser print cartridges; and media to graphics supplies and 3D printing supplies, for recurring use in Consumer and Commercial Hardware.
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•
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retailers that sell our products to the public through their own physical or Internet stores;
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•
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resellers that sell our products and services, frequently with their own value-added products or services, to targeted customer groups;
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•
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distribution partners that supply our solutions to resellers; and
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•
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system integrators and other advisory firms that provide various levels of management and IT consulting, including some systems integration work, and typically partner with us on client solutions that require our unique products and services.
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•
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Use 100% renewable electricity in our global operations, with an interim goal of 40% by 2020;
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•
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Consistent with a science-based reduction target, reduce Scope 1 and Scope 2 greenhouse gas (“GHG”) emissions in our global operations by 25% by 2025, compared to 2015;
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•
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Reduce first-tier production supplier and product transport-related GHG emissions intensity (which refers to the portion of first-tier production and product transportation suppliers’ reported GHG emissions attributable to HP divided by HP’s annual net revenue) by 10% by 2025, compared to 2015;
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•
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Reduce the GHG intensity of HP’s product portfolio (which refers to tonnes CO
2
e/net revenue arising from the use of more than 95% of HP product units shipped each year) by 25% by 2020, compared to 2010.
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•
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Achieve zero deforestation associated with HP brand paper and paper-based product packaging (which includes the box that comes with the product and all paper inside the box) by 2020;
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•
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Recycle 1.2 million tonnes of hardware and supplies by 2025, since the beginning of 2016; and
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•
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Reduce potable water consumption in global operations by 15% by 2025, compared to 2015;
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•
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Develop skills and improve well-being of 500,000 factory workers by 2025, since the beginning of 2015;
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•
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Double factory participation in our supply chain sustainability programs by 2025, compared to 2015;and
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•
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Enable better learning outcomes for 100 million people by 2025, since the beginning of 2015.
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•
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Maintain greater than 99% completion rate of Standards of Business Conduct training among active HP employees and the Board of Directors.
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•
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Component shortages.
We may experience a shortage of, or a delay in receiving, certain components as a result of strong demand, capacity constraints, supplier financial weaknesses, the inability of suppliers to borrow funds in the credit markets, disputes with suppliers (some of whom are also our customers), disruptions in the operations of component suppliers, other problems experienced by suppliers or problems faced during the transition to new suppliers. For example, our PC business relies heavily upon OMs to manufacture its products and is therefore dependent upon the continuing operations of those OMs to fulfill demand for our PC products. We represent a substantial portion of the business of some of these OMs, and any changes to the nature or volume of our business transactions with a particular OM could adversely affect the operations and financial condition of the OM and lead to shortages or delays in receiving products from that OM. If shortages or delays persist, the price of certain components may increase, we may be exposed to quality issues or the components may not be available at all. We may not be able to secure enough components at reasonable prices or of acceptable quality to build products or provide services in a timely manner in the quantities needed or according to our specifications. Accordingly, our business and financial performance could suffer if we lose time-sensitive sales, incur additional freight costs or are unable to pass on price increases to our customers. If we cannot adequately address supply issues, we might have to re-engineer some product or service offerings, which could result in further costs and delays.
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•
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Excess supply.
In order to secure components for our products or services, at times we may make advance payments to suppliers or enter into non-cancelable commitments with vendors. In addition, we may purchase components strategically in advance of demand to take advantage of favorable pricing or to address concerns about the availability of future components. If we fail to anticipate customer demand properly, a temporary oversupply could result in excess or obsolete components, which could adversely affect our business and financial performance.
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•
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Contractual terms.
As a result of binding long-term price or purchase commitments with vendors, we may be obligated to purchase components or services at prices that are higher than those available in the current market and be limited in our ability to respond to changing market conditions. If we commit to purchasing components or services for prices in excess of the then-current market price, we may be at a disadvantage to competitors who have access to components or services at lower prices, our gross margin could suffer, and we could incur additional charges relating to inventory obsolescence. In addition, many of our competitors obtain products or components from the same OMs and suppliers that we utilize. Our competitors may obtain better pricing, more favorable contractual terms and conditions, and more favorable allocations of products and components during periods of limited supply, and our ability to engage in relationships with certain OMs and suppliers could be limited. The practice employed by our PC business of purchasing product components and transferring those components to its OMs may create large supplier receivables with the OMs that, depending on the financial condition of the OMs, may create collectability risks. In addition, certain of our OMs and suppliers may decide to discontinue conducting business with us. Any of these developments could adversely affect our future results of operations and financial condition.
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•
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Contingent workers.
We also rely on third-party suppliers for the provision of contingent workers, and our failure to manage our use of such workers effectively could adversely affect our results of operations. We have been exposed to various legal claims relating to the status of contingent workers in the past and could face similar claims in the future. We may be subject to shortages, oversupply or fixed contractual terms relating to contingent workers. Our ability to manage the size of, and costs associated with, the contingent workforce may be subject to additional constraints imposed by local laws.
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•
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Working conditions and materials sourcing.
We work with our suppliers to improve their labor practices and working conditions, such as by including requirements in our agreements with our suppliers that working conditions in our supply chain must be safe, that workers receive fair treatment, safe working conditions and freely chosen employment, that materials are responsibly sourced and that business operations are conducted in an environmentally responsible and ethical way. Brand perception and customer loyalty could be adversely impacted by a supplier’s improper practices or failure to comply with the above-mentioned requirements or those included in our Supplier Code of Conduct, General Specification for the Environment and other related provisions and requirements of our procurement contracts, including supplier audits, reporting of smelters, wood fiber certification (for HP brand paper and product packaging) and GHG emissions, water and waste data.
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•
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Single-source suppliers.
We obtain a significant number of components from single sources due to technology, availability, price, quality or other considerations. For example, we rely on Canon for certain laser printer engines and laser toner cartridges. We also rely on Intel to provide us with a sufficient supply of processors for many of our PCs and workstations, and we rely on AMD to provide us with a sufficient supply of processors for other
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•
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ongoing instability or changes in a country’s or region’s economic, regulatory or political conditions, including inflation, recession, interest rate fluctuations and actual or anticipated military or political conflicts or any other change resulting from Brexit;
|
•
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longer collection cycles and financial instability among customers, the imposition by governments of additional taxes, tariffs or other restrictions on foreign trade or changes in restrictions on trade between the United States and other countries;
|
•
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trade regulations and procedures and actions affecting production, shipping, pricing and marketing of products, including policies adopted by the United States or other countries that may champion or otherwise favor domestic companies and technologies over foreign competitors;
|
•
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local labor conditions and regulations, including local labor issues faced by specific suppliers and OEMs;
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•
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managing a geographically dispersed workforce;
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•
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changes or uncertainty in the international, national or local regulatory and legal environments;
|
•
|
differing technology standards or customer requirements;
|
•
|
import, export or other business licensing requirements or requirements relating to making foreign direct investments, which could increase our cost of doing business in certain jurisdictions, prevent us from shipping products to particular countries or markets, affect our ability to obtain favorable terms for components, increase our operating costs or lead to penalties or restrictions;
|
•
|
stringent privacy and data protection policies in some foreign countries;
|
•
|
difficulties associated with repatriating earnings generated or held abroad in a tax-efficient manner and changes in tax laws; and
|
•
|
fluctuations in freight costs, limitations on shipping and receiving capacity, and other disruptions in the transportation and shipping infrastructure at important geographic points of exit and entry for our products and shipments.
|
•
|
Managing business combination and investment transactions requires varying levels of management resources, which may divert our attention from other business operations.
|
•
|
We may not fully realize all of the anticipated benefits of any particular business combination and investment transaction, and the timeframe for realizing the benefits of a particular business combination and investment transaction may depend partially upon the actions of employees, advisors, suppliers, other third-parties or market trends.
|
•
|
Certain prior business combination and investment transactions entered into by Hewlett-Packard Company resulted, and in the future any such transactions by us may result, in significant costs and expenses, including
|
•
|
Any increased or unexpected costs, unanticipated delays or failure to meet contractual obligations could make business combination and investment transactions less profitable or unprofitable.
|
•
|
Our ability to conduct due diligence with respect to business combination and investment transactions, and our ability to evaluate the results of such due diligence, is dependent upon the veracity and completeness of statements and disclosures made or actions taken by third-parties or their representatives.
|
•
|
The pricing and other terms of our contracts for business combination and investment transactions require us to make estimates and assumptions at the time we enter into these contracts, and, during the course of our due diligence, we may not identify all of the factors necessary to estimate accurately our costs, timing and other matters or we may incur costs if a business combination is not consummated.
|
•
|
In order to complete a business combination and investment transaction, we may issue common stock, potentially creating dilution for our existing stockholders.
|
•
|
We may borrow to finance business combination and investment transactions, and the amount and terms of any potential future acquisition-related or other borrowings, as well as other factors, could affect our liquidity and financial condition.
|
•
|
Our effective tax rate on an ongoing basis is uncertain, and business combination and investment transactions could adversely impact our effective tax rate.
|
•
|
Any announced business combination and investment transaction may not close on the expected timeframe or at all, which may cause our financial results to differ from expectations in a given quarter.
|
•
|
Business combination and investment transactions may lead to litigation, which could impact our financial condition and results of operations.
|
•
|
If we fail to identify and successfully complete and integrate business combination and investment transactions that further our strategic objectives, we may be required to expend resources to develop products, services and technology internally, which may put us at a competitive disadvantage.
|
•
|
successfully combining product and service offerings and entering or expanding into markets in which we are not experienced or are developing expertise;
|
•
|
convincing both our customers and distributors and those of the acquired business that the transaction will not diminish client service standards or business focus;
|
•
|
persuading both our customers and distributors and those of the acquired business not to defer purchasing decisions or switch to other suppliers (which could result in our incurring additional obligations in order to address customer uncertainty), minimizing sales force attrition and expanding and coordinating sales, marketing and distribution efforts;
|
•
|
consolidating and rationalizing corporate IT infrastructure, which may include multiple legacy systems from various acquisitions and integrating software code and business processes;
|
•
|
minimizing the diversion of management attention from ongoing business concerns;
|
•
|
persuading employees that business cultures are compatible, maintaining employee morale and retaining key employees, engaging with employee works councils representing an acquired company’s non-U.S. employees, integrating employees, correctly estimating employee benefit costs and implementing restructuring programs;
|
•
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coordinating and combining administrative, manufacturing, research and development and other operations, subsidiaries, facilities and relationships with third-parties in accordance with local laws and other obligations while maintaining adequate standards, controls and procedures;
|
•
|
achieving savings from supply chain integration; and
|
•
|
managing integration issues shortly after or pending the completion of other independent transactions.
|
•
|
speculation, coverage or sentiment in the media or the investment community about, or actual changes in, our business, strategic position, market share, organizational structure, operations, financial condition, financial reporting and results, effectiveness of cost-cutting efforts, value or liquidity of our investments, exposure to market volatility, prospects, business combination or investment transactions, future stock price performance, board of directors, executive team, our competitors or our industry in general;
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•
|
the announcement of new, planned or contemplated products, services, technological innovations, acquisitions, divestitures or other significant transactions by us or our competitors;
|
•
|
quarterly increases or decreases in net revenue, gross margin, earnings or cash flows, changes in estimates by the investment community or our financial outlook and variations between actual and estimated financial results;
|
•
|
announcements of actual and anticipated financial results by our competitors and other companies in the IT industry;
|
•
|
developments relating to pending investigations, claims and disputes; and
|
•
|
the timing and amount of our share repurchases.
|
•
|
authorizing blank check preferred stock, which we could issue with voting, liquidation, dividend and other rights superior to our common stock;
|
•
|
limiting the liability of, and providing indemnification to, our directors and officers;
|
•
|
specifying that our stockholders may take action only at a duly called annual or special meeting of stockholders and otherwise in accordance with our bylaws and limiting the ability of our stockholders to call special meetings;
|
•
|
requiring advance notice of proposals by our stockholders for business to be conducted at stockholder meetings and for nominations of candidates for election to our Board of Directors; and
|
•
|
controlling the procedures for conduct of our Board of Directors and stockholder meetings and election, appointment and removal of our directors.
|
|
Fiscal year ended October 31, 2017
|
|||||||
|
Owned
|
|
Leased
|
|
Total
|
|||
|
(square feet in millions)
|
|||||||
Administration and support
|
3.6
|
|
|
5.2
|
|
|
8.8
|
|
(Percentage)
|
40
|
%
|
|
60
|
%
|
|
100
|
%
|
Core data centers, manufacturing plants, research and development facilities and warehouse operations
|
2.0
|
|
|
6.0
|
|
|
8.0
|
|
(Percentage)
|
25
|
%
|
|
75
|
%
|
|
100
|
%
|
Total
(1)
|
5.6
|
|
|
11.2
|
|
|
16.8
|
|
(Percentage)
|
33
|
%
|
|
67
|
%
|
|
100
|
%
|
(1)
|
Excludes 3.5 million square feet of vacated space, of which 1.9 million square feet is leased to third parties.
|
Americas
|
|
Europe, Middle East, Africa
|
|
Asia Pacific
|
Palo Alto, United States
|
|
Geneva, Switzerland
|
|
Singapore
|
Americas
United States
—Corvallis, San Diego, Boise, Vancouver
|
|
Europe, Middle East, Africa
Israel—
Kiryat-Gat, Rehovot, Netanya
Spain—
Barcelona
|
Asia Pacific
China—
Shanghai
Malaysia—
Penang
Singapore—
Singapore
|
|
Technology office (HP Labs)
United Kingdom—
Bristol
United States—
Palo Alto
|
|
Total Number of Shares Purchased
|
|
Average
Price Paid
per Share
|
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
|
|
Approximate Dollar Value of Shares that May Yet Be Purchased under the Plans or Programs
|
||||||
|
In thousands, except per share amounts
|
|||||||||||
Period
|
|
|
|
|
|
|
||||||
August 2017
|
2,443
|
|
|
$
|
19.10
|
|
2,443
|
|
|
$
|
2,914,759
|
|
September 2017
|
5,871
|
|
|
$
|
19.50
|
|
5,871
|
|
|
$
|
2,800,269
|
|
October 2017
|
16,110
|
|
|
$
|
21.09
|
|
16,110
|
|
|
$
|
2,460,466
|
|
Total
|
24,424
|
|
|
|
24,424
|
|
|
|
|
10/12
|
|
10/13
|
|
10/14
|
|
10/15
|
|
10/16
|
|
10/17
|
||||||||||||
HP Inc.
(1)
|
$
|
100.00
|
|
|
$
|
180.94
|
|
|
$
|
271.55
|
|
|
$
|
208.35
|
|
|
$
|
256.47
|
|
|
$
|
393.13
|
|
S&P 500 Index
|
$
|
100.00
|
|
|
$
|
127.17
|
|
|
$
|
149.11
|
|
|
$
|
156.86
|
|
|
$
|
163.91
|
|
|
$
|
202.64
|
|
S&P Information Technology Index
|
$
|
100.00
|
|
|
$
|
119.90
|
|
|
$
|
150.71
|
|
|
$
|
167.58
|
|
|
$
|
185.72
|
|
|
$
|
258.08
|
|
|
For the fiscal years ended October 31
|
||||||||||||||||||
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
||||||||||
|
In millions, except per share amounts
|
||||||||||||||||||
Net revenue
|
$
|
52,056
|
|
|
$
|
48,238
|
|
|
$
|
51,463
|
|
|
$
|
56,651
|
|
|
$
|
55,273
|
|
Earnings from continuing operations
(1)
|
$
|
3,519
|
|
|
$
|
3,549
|
|
|
$
|
3,920
|
|
|
$
|
4,256
|
|
|
$
|
3,516
|
|
Net (loss) earnings from discontinued operations net of taxes
|
$
|
—
|
|
|
$
|
(170
|
)
|
|
$
|
836
|
|
|
$
|
2,089
|
|
|
$
|
2,653
|
|
Net earnings
(1)
|
$
|
2,526
|
|
|
$
|
2,496
|
|
|
$
|
4,554
|
|
|
$
|
5,013
|
|
|
$
|
5,113
|
|
Net earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Basic
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Continuing operations
|
$
|
1.50
|
|
|
$
|
1.54
|
|
|
$
|
2.05
|
|
|
$
|
1.55
|
|
|
$
|
1.27
|
|
Discontinued operations
|
—
|
|
|
(0.10
|
)
|
|
0.46
|
|
|
1.11
|
|
|
1.37
|
|
|||||
Total basic net earnings per share
|
$
|
1.50
|
|
|
$
|
1.44
|
|
|
$
|
2.51
|
|
|
$
|
2.66
|
|
|
$
|
2.64
|
|
Diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Continuing operations
|
$
|
1.48
|
|
|
$
|
1.53
|
|
|
$
|
2.02
|
|
|
$
|
1.53
|
|
|
$
|
1.26
|
|
Discontinued operations
|
—
|
|
|
(0.10
|
)
|
|
0.46
|
|
|
1.09
|
|
|
1.36
|
|
|||||
Total diluted net earnings per share
|
$
|
1.48
|
|
|
$
|
1.43
|
|
|
$
|
2.48
|
|
|
$
|
2.62
|
|
|
$
|
2.62
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Cash dividends declared per share
|
$
|
0.53
|
|
|
$
|
0.50
|
|
|
$
|
0.67
|
|
|
$
|
0.61
|
|
|
$
|
0.55
|
|
At year-end:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Total assets
(2)(4)
|
$
|
32,913
|
|
|
$
|
28,987
|
|
|
$
|
106,853
|
|
|
$
|
103,158
|
|
|
$
|
105,629
|
|
Long-term debt
(3)(4)
|
$
|
6,747
|
|
|
$
|
6,735
|
|
|
$
|
6,648
|
|
|
$
|
15,515
|
|
|
$
|
15,949
|
|
Total debt
(3)(4)
|
$
|
7,819
|
|
|
$
|
6,813
|
|
|
$
|
8,842
|
|
|
$
|
18,109
|
|
|
$
|
20,884
|
|
(1)
|
Earnings from continuing operations and net earnings include the following items:
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
||||||||||
|
In millions
|
||||||||||||||||||
Restructuring and other charges
|
$
|
362
|
|
|
$
|
205
|
|
|
$
|
63
|
|
|
$
|
176
|
|
|
$
|
168
|
|
Acquisition-related charges
|
125
|
|
|
7
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|||||
Amortization of intangible assets
|
1
|
|
|
16
|
|
|
102
|
|
|
129
|
|
|
198
|
|
|||||
Defined benefit plan settlement charges (credits)
|
5
|
|
|
179
|
|
|
(57
|
)
|
|
—
|
|
|
—
|
|
|||||
Total charges before taxes
|
$
|
493
|
|
|
$
|
407
|
|
|
$
|
109
|
|
|
$
|
305
|
|
|
$
|
366
|
|
Total charges, net of taxes
|
$
|
367
|
|
|
$
|
293
|
|
|
$
|
113
|
|
|
$
|
238
|
|
|
$
|
260
|
|
(2)
|
Total assets, for all periods prior to fiscal year 2016, include the total assets of Hewlett Packard Enterprise. For further information on discontinued operations, see Note 17, “Discontinued Operations” in the Consolidated Financial Statements and notes thereto included in Item 8, “Financial Statements and Supplementary Data” of this Annual Report on Form 10-K.
|
(3)
|
The decrease in Long-term debt and Total debt in fiscal year 2015 was due to the early extinguishment of debt as a result of the Separation of Hewlett Packard Enterprise. For further information on HP Inc. separation transaction, see “HP Inc. Separation Transaction” in Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of this Annual Report on Form 10-K.
|
(4)
|
Effective November 1, 2016, HP adopted ASU 2015-03, “Simplifying the Presentation of Debt Issuance Costs”, which amended the presentation of debt issuance costs as a direct deduction from the carrying amount of debt liability re-classed from other non-current assets. The change has been adopted including the prior periods for consistency with the current period. For further information, see Note 11, “Borrowings” in the Consolidated Financial Statements and notes thereto included in Item 8, “Financial Statements and Supplementary Data” of this Annual Report on Form 10-K.
|
•
|
HP Inc. Separation Transaction.
A discussion of the separation of Hewlett Packard Enterprise Company, HP Inc.’s former enterprise technology infrastructure, software, services and financing businesses.
|
•
|
Overview.
A discussion of our business and other highlights affecting the company to provide context for the remainder of this MD&A.
|
•
|
Critical Accounting Policies and Estimates.
A discussion of accounting policies and estimates that we believe are important to understanding the assumptions and judgments incorporated in our reported financial results.
|
•
|
Results of Operations.
An analysis of our continuing financial results comparing fiscal year 2017 to fiscal year 2016 and fiscal year 2016 to fiscal year 2015. A discussion of the results of continuing operations is followed by a more detailed discussion of the results of operations by segment.
|
•
|
Liquidity and Capital Resources.
An analysis of changes in our cash flows and a discussion of our liquidity and continuing financial condition.
|
•
|
Contractual and Other Obligations.
An overview of contractual obligations, retirement and post-retirement benefit plan contributions, cost-saving plans, uncertain tax positions and off-balance sheet arrangements of our continuing operations.
|
•
|
In Personal Systems, our strategic focus is on profitable growth through hyper market segmentation with respect to enhanced innovation in multi-operating systems, multi-architecture, geography, customer segments and other key attributes. Additionally, we are investing in premium and mobility form factors such as convertible notebooks, detachable notebooks and mobility devices in order to meet customer preference for mobile, thinner and lighter devices. The beginning of a market shift to contractual solutions includes an increased focus on Device as a Service. We believe that we are well positioned due to our competitive product lineup.
|
•
|
In Printing, our strategic focus is on business printing, a shift to contractual solutions and Graphics, as well as expanding our footprint in the 3D printing marketplace. Business printing includes delivering solutions to SMBs and enterprise customers, such as multi-function and PageWide printers, including our JetIntelligence lineup of LaserJet printers. The shift to contractual solutions includes an increased focus on Managed Print Services and Instant Ink, which presents strong after-market supplies opportunities. In the Graphics space, we are focused on innovations such as our Indigo and Latex product offerings. We plan to continue to focus on shifting the mix in the installed base to higher value units and expanding our innovative Ink, Laser, Graphics and 3D printing programs. We continue to execute on our key initiatives of focusing on high-value products targeted at high usage categories and introducing new revenue delivery models. Our focus is on placing higher value printer units which offer strong annuity of toner and ink, the design and deployment of A3 products and solutions, accelerating growth in Graphic solutions and 3D printing.
|
•
|
In Personal Systems, we face challenges with continued increases in commodity costs, especially in memory, and the uncertainty of the PC market’s ability to absorb price increases driven by higher commodity costs.
|
•
|
In Printing, we are seeing signs of stabilization of demand in consumer and commercial markets, but are still experiencing an overall competitive pricing environment. We obtained a number of components from single sources due to technology, availability, price, quality or other considerations. For instance, we source majority of our A4 and a portion of A3 portfolio of laser printer engines and laser toner cartridges from Canon. Any decision by either party to not renew our agreement with Canon or to limit or reduce the scope of the agreement could adversely affect our net revenue from LaserJet products; however, we have a long-standing business relationship with Canon and anticipate renewal of this agreement.
|
|
Change in Net Periodic
Benefit Cost
in millions
|
||
Assumptions:
|
|
|
|
Discount rate
|
$
|
7
|
|
Expected increase in compensation levels
|
$
|
2
|
|
Expected long-term return on plan assets
|
$
|
28
|
|
|
For the fiscal years ended October 31
|
|||||||||||||||||||
|
2017
|
|
2016
|
|
2015
|
|||||||||||||||
|
Dollars in millions
|
|||||||||||||||||||
Net revenue
|
$
|
52,056
|
|
|
100.0
|
%
|
|
$
|
48,238
|
|
|
100.0
|
%
|
|
$
|
51,463
|
|
|
100.0
|
%
|
Cost of revenue
|
42,478
|
|
|
81.6
|
%
|
|
39,240
|
|
|
81.3
|
%
|
|
41,524
|
|
|
80.7
|
%
|
|||
Gross profit
|
9,578
|
|
|
18.4
|
%
|
|
8,998
|
|
|
18.7
|
%
|
|
9,939
|
|
|
19.3
|
%
|
|||
Research and development
|
1,190
|
|
|
2.3
|
%
|
|
1,209
|
|
|
2.5
|
%
|
|
1,191
|
|
|
2.3
|
%
|
|||
Selling, general and administrative
|
4,376
|
|
|
8.4
|
%
|
|
3,833
|
|
|
8.0
|
%
|
|
4,719
|
|
|
9.2
|
%
|
|||
Restructuring and other charges
|
362
|
|
|
0.7
|
%
|
|
205
|
|
|
0.4
|
%
|
|
63
|
|
|
0.1
|
%
|
|||
Acquisition-related charges
|
125
|
|
|
0.2
|
%
|
|
7
|
|
|
0.0%
|
|
|
1
|
|
|
0.0%
|
|
|||
Amortization of intangible assets
|
1
|
|
|
0.0%
|
|
|
16
|
|
|
0.0%
|
|
|
102
|
|
|
0.2
|
%
|
|||
Defined benefit plan settlement charges (credits)
|
5
|
|
|
0.0%
|
|
|
179
|
|
|
0.4
|
%
|
|
(57
|
)
|
|
(0.1
|
)%
|
|||
Earnings from continuing operations
|
3,519
|
|
|
6.8
|
%
|
|
3,549
|
|
|
7.4
|
%
|
|
3,920
|
|
|
7.6
|
%
|
|||
Interest and other, net
|
(243
|
)
|
|
(0.5
|
)%
|
|
212
|
|
|
0.4
|
%
|
|
(388
|
)
|
|
(0.7
|
)%
|
|||
Earnings from continuing operations before taxes
|
3,276
|
|
|
6.3
|
%
|
|
3,761
|
|
|
7.8
|
%
|
|
3,532
|
|
|
6.9
|
%
|
|||
(Provision for) benefit from taxes
|
(750
|
)
|
|
(1.4
|
)%
|
|
(1,095
|
)
|
|
(2.3
|
)%
|
|
186
|
|
|
0.3
|
%
|
|||
Net earnings from continuing operations
|
2,526
|
|
|
4.9
|
%
|
|
2,666
|
|
|
5.5
|
%
|
|
3,718
|
|
|
7.2
|
%
|
|||
Net (loss) earnings from discontinued operations, net of taxes
|
—
|
|
|
|
|
|
(170
|
)
|
|
|
|
|
836
|
|
|
|
|
|||
Net earnings
|
$
|
2,526
|
|
|
|
|
|
$
|
2,496
|
|
|
|
|
|
$
|
4,554
|
|
|
|
|
|
For the fiscal years ended October 31
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
|
Dollars in millions
|
||||||||||
Net revenue
|
$
|
33,374
|
|
|
$
|
29,987
|
|
|
$
|
31,520
|
|
Earnings from operations
|
$
|
1,213
|
|
|
$
|
1,150
|
|
|
$
|
1,022
|
|
Earnings from operations as a % of net revenue
|
3.6
|
%
|
|
3.8
|
%
|
|
3.2
|
%
|
|
For the fiscal years ended October 31
|
|||||||||
|
Net Revenue
|
|
Weighted
Net Revenue Change Percentage Points |
|||||||
|
2017
|
|
2016
|
|
||||||
|
Dollars in millions
|
|
|
|||||||
Notebooks
|
$
|
19,782
|
|
|
$
|
16,982
|
|
|
9.4
|
|
Desktops
|
10,298
|
|
|
9,956
|
|
|
1.1
|
|
||
Workstations
|
2,042
|
|
|
1,870
|
|
|
0.6
|
|
||
Other
|
1,252
|
|
|
1,179
|
|
|
0.2
|
|
||
Total Personal Systems
|
$
|
33,374
|
|
|
$
|
29,987
|
|
|
11.3
|
|
|
For the fiscal years ended October 31
|
|||||||||
|
Net Revenue
|
|
Weighted
Net Revenue Change Percentage Points |
|||||||
|
2016
|
|
2015
|
|
||||||
|
Dollars in millions
|
|
|
|||||||
Notebooks
|
$
|
16,982
|
|
|
$
|
17,271
|
|
|
(0.9
|
)
|
Desktops
|
9,956
|
|
|
10,941
|
|
|
(3.1
|
)
|
||
Workstations
|
1,870
|
|
|
2,018
|
|
|
(0.5
|
)
|
||
Other
|
1,179
|
|
|
1,290
|
|
|
(0.4
|
)
|
||
Total Personal Systems
|
$
|
29,987
|
|
|
$
|
31,520
|
|
|
(4.9
|
)
|
|
For the fiscal years ended October 31
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
|
Dollars in millions
|
||||||||||
Net revenue
|
$
|
18,801
|
|
|
$
|
18,260
|
|
|
$
|
21,232
|
|
Earnings from operations
|
$
|
3,161
|
|
|
$
|
3,128
|
|
|
$
|
3,765
|
|
Earnings from operations as a % of net revenue
|
16.8
|
%
|
|
17.1
|
%
|
|
17.7
|
%
|
|
For the fiscal years ended October 31
|
|||||||||
|
Net Revenue
|
|
Weighted
Net Revenue Change Percentage Points |
|||||||
|
2017
|
|
2016
|
|
||||||
|
Dollars in millions
|
|
|
|||||||
Supplies
|
$
|
12,416
|
|
|
$
|
11,875
|
|
|
3.0
|
|
Commercial Hardware
|
3,973
|
|
|
4,035
|
|
|
(0.3
|
)
|
||
Consumer Hardware
|
2,412
|
|
|
2,350
|
|
|
0.3
|
|
||
Total Printing
|
$
|
18,801
|
|
|
$
|
18,260
|
|
|
3.0
|
|
|
For the fiscal years ended October 31
|
|||||||||
|
Net Revenue
|
|
Weighted
Net Revenue Change Percentage Points |
|||||||
|
2016
|
|
2015
|
|
||||||
|
Dollars in millions
|
|
|
|||||||
Supplies
|
$
|
11,875
|
|
|
$
|
13,979
|
|
|
(9.9
|
)
|
Commercial Hardware
|
4,035
|
|
|
4,350
|
|
|
(1.5
|
)
|
||
Consumer Hardware
|
2,350
|
|
|
2,903
|
|
|
(2.6
|
)
|
||
Total Printing
|
$
|
18,260
|
|
|
$
|
21,232
|
|
|
(14.0
|
)
|
|
As of October 31
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
|
In billions
|
||||||||||
Cash and cash equivalents
|
$
|
7.0
|
|
|
$
|
6.3
|
|
|
$
|
7.6
|
|
Marketable debt securities
(1)
|
$
|
1.1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Total debt
|
$
|
7.8
|
|
|
$
|
6.8
|
|
|
$
|
8.8
|
|
(1)
|
Includes highly liquid U.S. treasury notes, U.S. agency securities, non-U.S. government bonds, corporate debt securities, money market and other funds. We classify these investments within Other current assets in Consolidated Balance Sheets, including those with maturity dates beyond one year, based on their highly liquid nature and availability for use in current operations.
|
|
For the fiscal years ended October 31
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
|
|
|
In millions
|
|
|
||||||
Net cash provided by operating activities
|
$
|
3,677
|
|
|
$
|
3,252
|
|
|
$
|
7,026
|
|
Net cash (used in) provided by investing activities
|
(1,717
|
)
|
|
48
|
|
|
(5,534
|
)
|
|||
Net cash (used in) provided by financing activities
|
(1,251
|
)
|
|
(14,445
|
)
|
|
808
|
|
|||
Net increase (decrease) in cash and cash equivalents
|
$
|
709
|
|
|
$
|
(11,145
|
)
|
|
$
|
2,300
|
|
|
As of October 31
|
|||||||
|
2017
|
|
2016
|
|
2015
|
|||
Days of sales outstanding in accounts receivable (“DSO”)
|
29
|
|
|
30
|
|
|
35
|
|
Days of supply in inventory (“DOS”)
|
46
|
|
|
39
|
|
|
39
|
|
Days of purchases outstanding in accounts payable (“DPO”)
|
(105
|
)
|
|
(98
|
)
|
|
(93
|
)
|
Cash conversion cycle
|
(30
|
)
|
|
(29
|
)
|
|
(19
|
)
|
|
As of October 31
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
|
Dollars in millions
|
||||||||||
Short-term debt
|
$
|
1,072
|
|
|
$
|
78
|
|
|
$
|
2,194
|
|
Long-term debt
|
$
|
6,747
|
|
|
$
|
6,735
|
|
|
$
|
6,648
|
|
Debt-to-equity ratio
|
(2.29)x
|
|
|
(1.75)x
|
|
|
0.31x
|
|
|||
Weighted-average interest rate
|
4.0
|
%
|
|
4.2
|
%
|
|
3.7
|
%
|
|
As of October 31, 2017
|
||
|
In millions
|
||
2016 Shelf Registration Statement
|
Unspecified
|
|
|
Uncommitted lines of credit
|
$
|
846
|
|
|
|
|
Payments Due by Period
|
||||||||||||||||
|
Total
|
|
1 Year or
Less
|
|
1-3 Years
|
|
3-5 Years
|
|
More than 5 Years
|
||||||||||
|
In millions
|
||||||||||||||||||
Principal payments on debt
(1)
|
$
|
7,507
|
|
|
$
|
984
|
|
|
$
|
414
|
|
|
$
|
4,899
|
|
|
$
|
1,210
|
|
Interest payments on debt
(2)
|
2,518
|
|
|
286
|
|
|
549
|
|
|
323
|
|
|
1,360
|
|
|||||
Purchase obligations
(3)
|
1,208
|
|
|
728
|
|
|
405
|
|
|
73
|
|
|
2
|
|
|||||
Operating lease obligations
(4)
|
1,057
|
|
|
248
|
|
|
301
|
|
|
156
|
|
|
352
|
|
|||||
Capital lease obligations
(5)
|
374
|
|
|
102
|
|
|
190
|
|
|
73
|
|
|
9
|
|
|||||
Total
(6)(7)(8)
|
$
|
12,664
|
|
|
$
|
2,348
|
|
|
$
|
1,859
|
|
|
$
|
5,524
|
|
|
$
|
2,933
|
|
(1)
|
Amounts represent the principal cash payments relating to our short-term and long-term debt and do not include any fair value adjustments, discounts or premiums.
|
(2)
|
Amounts represent the expected interest payments relating to our short-term and long-term debt. We have outstanding interest rate swap agreements accounted for as fair value hedges that have the economic effect of changing fixed interest rates associated with some of our U.S. Dollar Global Notes to variable interest rates. The impact of our outstanding interest rate swaps at
October 31, 2017
was factored into the calculation of the future interest payments on debt.
|
(3)
|
Purchase obligations include agreements to purchase goods or services that are enforceable and legally binding on us and that specify all significant terms, including fixed or minimum quantities to be purchased; fixed, minimum or variable price provisions; and the approximate timing of the transaction. These purchase obligations are related principally to inventory and other items. Purchase obligations exclude agreements that are cancelable without penalty. Purchase obligations also exclude open purchase orders that are routine arrangements entered into in the ordinary course of business as they are difficult to quantify in a meaningful way. Even though open purchase orders are considered enforceable and legally binding, the terms generally allow us the option to cancel, reschedule, and adjust terms based on our business needs prior to the delivery of goods or performance of services.
|
(4)
|
Amounts represent the operating lease obligations, net of total sublease income of
$174 million
.
|
(5)
|
Amounts represent the capital lease obligations, including total capital lease interest obligations of
$45 million
.
|
(6)
|
Retirement and Post-Retirement Benefit Plan Contributions.
In fiscal year
2018
, we anticipate making contributions of approximately
$24 million
to non-U.S. pension plans,
$33 million
to cover benefit payments to U.S. non-qualified pension plan participants and
$7 million
to cover benefit claims for our post-retirement benefit plans. Our policy is to fund our pension plans so that we meet at least the minimum contribution requirements, as established by local government, funding and taxing authorities. Expected contributions and payments to our pension and post-retirement benefit plans are excluded from the contractual obligations table because they do not represent contractual cash outflows as they are dependent on numerous factors which may result in a wide range of outcomes. For more information on our retirement and post-retirement benefit plans, see Note 4, “Retirement and Post-Retirement Benefit Plans”, to the Consolidated Financial Statements in Item 8, which is incorporated herein by reference.
|
(7)
|
Cost Savings Plans.
We expect to make future cash payments of between
$173 million
and
$323 million
in connection with our cost savings plans through fiscal year 2021. These payments have been excluded from the contractual obligations table, because they do not represent contractual cash outflows and there is uncertainty as to the timing of these payments. For more information on our restructuring activities that are part of our cost improvements, see Note 3, “Restructuring and Other Charges”, to the Consolidated Financial Statements in Item 8, which is incorporated herein by reference.
|
(8)
|
Uncertain Tax Positions.
As of
October 31, 2017
, we had approximately
$2.1 billion
of recorded liabilities and related interest and penalties pertaining to uncertain tax positions. We are unable to make a reasonable estimate as to when cash settlement with the tax authorities might occur due to the uncertainties related to these tax matters. Payments of these obligations would result from settlements with taxing authorities. For more information on our uncertain tax positions,
|
|
|
|
Page
|
/s/ DION J. WEISLER
|
|
/s/ CATHERINE A. LESJAK
|
Dion J. Weisler
President and Chief Executive Officer
December 14, 2017
|
|
Catherine A. Lesjak
Chief Financial Officer
December 14, 2017
|
|
For the fiscal years ended October 31
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
|
In millions, except per share amounts
|
||||||||||
Net revenue
|
$
|
52,056
|
|
|
$
|
48,238
|
|
|
$
|
51,463
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|||
Cost of revenue
|
42,478
|
|
|
39,240
|
|
|
41,524
|
|
|||
Research and development
|
1,190
|
|
|
1,209
|
|
|
1,191
|
|
|||
Selling, general and administrative
|
4,376
|
|
|
3,833
|
|
|
4,719
|
|
|||
Restructuring and other charges
|
362
|
|
|
205
|
|
|
63
|
|
|||
Acquisition-related charges
|
125
|
|
|
7
|
|
|
1
|
|
|||
Amortization of intangible assets
|
1
|
|
|
16
|
|
|
102
|
|
|||
Defined benefit plan settlement charges (credits)
|
5
|
|
|
179
|
|
|
(57
|
)
|
|||
Total costs and expenses
|
48,537
|
|
|
44,689
|
|
|
47,543
|
|
|||
Earnings from continuing operations
|
3,519
|
|
|
3,549
|
|
|
3,920
|
|
|||
Interest and other, net
|
(243
|
)
|
|
212
|
|
|
(388
|
)
|
|||
Earnings from continuing operations before taxes
|
3,276
|
|
|
3,761
|
|
|
3,532
|
|
|||
(Provision for) benefit from taxes
|
(750
|
)
|
|
(1,095
|
)
|
|
186
|
|
|||
Net earnings from continuing operations
|
2,526
|
|
|
2,666
|
|
|
3,718
|
|
|||
Net (loss) earnings from discontinued operations
|
—
|
|
|
(170
|
)
|
|
836
|
|
|||
Net earnings
|
$
|
2,526
|
|
|
$
|
2,496
|
|
|
$
|
4,554
|
|
Net earnings per share:
|
|
|
|
|
|
|
|
|
|||
Basic
|
|
|
|
|
|
|
|
|
|||
Continuing operations
|
$
|
1.50
|
|
|
$
|
1.54
|
|
|
$
|
2.05
|
|
Discontinued operations
|
—
|
|
|
(0.10
|
)
|
|
0.46
|
|
|||
Total basic net earnings per share
|
$
|
1.50
|
|
|
$
|
1.44
|
|
|
$
|
2.51
|
|
Diluted
|
|
|
|
|
|
|
|
|
|||
Continuing operations
|
$
|
1.48
|
|
|
$
|
1.53
|
|
|
$
|
2.02
|
|
Discontinued operations
|
—
|
|
|
(0.10
|
)
|
|
0.46
|
|
|||
Total diluted net earnings per share
|
$
|
1.48
|
|
|
$
|
1.43
|
|
|
$
|
2.48
|
|
Weighted-average shares used to compute net earnings per share:
|
|
|
|
|
|
|
|
|
|||
Basic
|
1,688
|
|
|
1,730
|
|
|
1,814
|
|
|||
Diluted
|
1,702
|
|
|
1,743
|
|
|
1,836
|
|
|
For the fiscal years ended October 31
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
|
In millions
|
||||||||||
Net earnings
|
$
|
2,526
|
|
|
$
|
2,496
|
|
|
$
|
4,554
|
|
Other comprehensive income (loss) before taxes:
|
|
|
|
|
|
|
|
|
|||
Change in unrealized components of available-for-sale securities:
|
|
|
|
|
|
|
|
|
|||
Unrealized gains (losses) arising during the period
|
4
|
|
|
1
|
|
|
(17
|
)
|
|||
|
|
|
|
|
|
|
|
|
|||
Change in unrealized components of cash flow hedges:
|
|
|
|
|
|
|
|
|
|||
Unrealized (losses) gains arising during the period
|
(651
|
)
|
|
199
|
|
|
1,091
|
|
|||
Losses (gains) reclassified into earnings
|
199
|
|
|
63
|
|
|
(1,312
|
)
|
|||
|
(452
|
)
|
|
262
|
|
|
(221
|
)
|
|||
Change in unrealized components of defined benefit plans:
|
|
|
|
|
|
|
|
|
|||
Gains (losses) arising during the period
|
455
|
|
|
(759
|
)
|
|
(548
|
)
|
|||
Amortization of actuarial loss and prior service benefit
|
74
|
|
|
51
|
|
|
443
|
|
|||
Curtailments, settlements and other
|
3
|
|
|
183
|
|
|
115
|
|
|||
|
532
|
|
|
(525
|
)
|
|
10
|
|
|||
Change in cumulative translation adjustment
|
—
|
|
|
—
|
|
|
(207
|
)
|
|||
Other comprehensive income (loss) before taxes
|
84
|
|
|
(262
|
)
|
|
(435
|
)
|
|||
(Provision for) benefit from taxes
|
(64
|
)
|
|
45
|
|
|
14
|
|
|||
Other comprehensive income (loss), net of taxes
|
20
|
|
|
(217
|
)
|
|
(421
|
)
|
|||
Comprehensive income
|
$
|
2,546
|
|
|
$
|
2,279
|
|
|
$
|
4,133
|
|
|
As of October 31
|
||||||
|
2017
|
|
2016
|
||||
|
In millions, except par value
|
||||||
ASSETS
|
|
|
|
|
|
||
Current assets:
|
|
|
|
|
|
||
Cash and cash equivalents
|
$
|
6,997
|
|
|
$
|
6,288
|
|
Accounts receivable
|
4,414
|
|
|
4,114
|
|
||
Inventory
|
5,786
|
|
|
4,484
|
|
||
Other current assets
|
5,121
|
|
|
3,582
|
|
||
Total current assets
|
22,318
|
|
|
18,468
|
|
||
Property, plant and equipment
|
1,878
|
|
|
1,736
|
|
||
Goodwill
|
5,622
|
|
|
5,622
|
|
||
Other non-current assets
|
3,095
|
|
|
3,161
|
|
||
Total assets
|
$
|
32,913
|
|
|
$
|
28,987
|
|
LIABILITIES AND STOCKHOLDERS’ DEFICIT
|
|
|
|
|
|
||
Current liabilities:
|
|
|
|
|
|
||
Notes payable and short-term borrowings
|
$
|
1,072
|
|
|
$
|
78
|
|
Accounts payable
|
13,279
|
|
|
11,103
|
|
||
Employee compensation and benefits
|
894
|
|
|
759
|
|
||
Taxes on earnings
|
214
|
|
|
231
|
|
||
Deferred revenue
|
1,012
|
|
|
919
|
|
||
Other accrued liabilities
|
5,941
|
|
|
5,718
|
|
||
Total current liabilities
|
22,412
|
|
|
18,808
|
|
||
Long-term debt
|
6,747
|
|
|
6,735
|
|
||
Other non-current liabilities
|
7,162
|
|
|
7,333
|
|
||
Commitments and contingencies
|
|
|
|
|
|
||
Stockholders’ deficit:
|
|
|
|
|
|
||
Preferred stock, $0.01 par value (300 shares authorized; none issued)
|
—
|
|
|
—
|
|
||
Common stock, $0.01 par value (9,600 shares authorized; 1,650 and 1,712 shares issued and outstanding at October 31, 2017, and 2016 respectively)
|
16
|
|
|
17
|
|
||
Additional paid in capital
|
380
|
|
|
1,030
|
|
||
Retained deficit
|
(2,386
|
)
|
|
(3,498
|
)
|
||
Accumulated other comprehensive loss
|
(1,418
|
)
|
|
(1,438
|
)
|
||
Total stockholders’ deficit
|
(3,408
|
)
|
|
(3,889
|
)
|
||
Total liabilities and stockholders’ deficit
|
$
|
32,913
|
|
|
$
|
28,987
|
|
|
For the fiscal years ended October 31
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
|
In millions
|
||||||||||
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|||
Net earnings
|
$
|
2,526
|
|
|
$
|
2,496
|
|
|
$
|
4,554
|
|
Adjustments to reconcile net earnings to net cash provided by operating activities:
|
|
|
|
|
|
|
|
|
|||
Depreciation and amortization
|
354
|
|
|
332
|
|
|
4,061
|
|
|||
Stock-based compensation expense
|
224
|
|
|
182
|
|
|
709
|
|
|||
Restructuring and other charges
|
362
|
|
|
200
|
|
|
1,017
|
|
|||
Deferred taxes on earnings
|
238
|
|
|
401
|
|
|
(700
|
)
|
|||
Other, net
|
134
|
|
|
(32
|
)
|
|
1,426
|
|
|||
Changes in operating assets and liabilities, net of acquisitions:
|
|
|
|
|
|
|
|
|
|||
Accounts receivable
|
(453
|
)
|
|
565
|
|
|
572
|
|
|||
Inventory
|
(1,346
|
)
|
|
(291
|
)
|
|
(330
|
)
|
|||
Accounts payable
|
2,161
|
|
|
928
|
|
|
31
|
|
|||
Taxes on earnings
|
73
|
|
|
106
|
|
|
(137
|
)
|
|||
Restructuring and other
|
(233
|
)
|
|
(157
|
)
|
|
(1,243
|
)
|
|||
Other assets and liabilities
|
(363
|
)
|
|
(1,478
|
)
|
|
(2,934
|
)
|
|||
Net cash provided by operating activities
|
3,677
|
|
|
3,252
|
|
|
7,026
|
|
|||
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|||
Investment in property, plant and equipment
|
(402
|
)
|
|
(433
|
)
|
|
(3,603
|
)
|
|||
Proceeds from sale of property, plant and equipment
|
69
|
|
|
6
|
|
|
424
|
|
|||
Purchases of available-for-sale securities and other investments
|
(1,919
|
)
|
|
(126
|
)
|
|
(259
|
)
|
|||
Maturities and sales of available-for-sale securities and other investments
|
535
|
|
|
133
|
|
|
302
|
|
|||
Payments made in connection with business acquisitions, net of cash acquired
|
—
|
|
|
(7
|
)
|
|
(2,644
|
)
|
|||
Proceeds from business divestitures, net
|
—
|
|
|
475
|
|
|
246
|
|
|||
Net cash (used in) provided by investing activities
|
(1,717
|
)
|
|
48
|
|
|
(5,534
|
)
|
|||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|||
Proceeds from short-term borrowings with original maturities less than 90 days, net
|
202
|
|
|
97
|
|
|
74
|
|
|||
Proceeds from short-term borrowings with original maturities greater than 90 days
|
887
|
|
|
—
|
|
|
6,023
|
|
|||
Proceeds from debt, net of issuance costs
|
5
|
|
|
4
|
|
|
14,735
|
|
|||
Payment of short term borrowings with original maturities greater than 90 days
|
(3
|
)
|
|
—
|
|
|
(6,296
|
)
|
|||
Payment of debt
|
(84
|
)
|
|
(2,188
|
)
|
|
(9,571
|
)
|
|||
Settlement of cash flow hedges
|
(9
|
)
|
|
4
|
|
|
(4
|
)
|
|||
Net transfer of cash and cash equivalents to Hewlett Packard Enterprise Company
|
—
|
|
|
(10,375
|
)
|
|
—
|
|
|||
Net proceeds (payments) related to stock-based award activities
|
57
|
|
|
32
|
|
|
(20
|
)
|
|||
Repurchase of common stock
|
(1,412
|
)
|
|
(1,161
|
)
|
|
(2,883
|
)
|
|||
Cash dividends paid
|
(894
|
)
|
|
(858
|
)
|
|
(1,250
|
)
|
|||
Net cash (used in) provided by financing activities
|
(1,251
|
)
|
|
(14,445
|
)
|
|
808
|
|
|||
Increase (decrease) in cash and cash equivalents
|
709
|
|
|
(11,145
|
)
|
|
2,300
|
|
|||
Cash and cash equivalents at beginning of period
|
6,288
|
|
|
17,433
|
|
|
15,133
|
|
|||
Cash and cash equivalents at end of period
|
$
|
6,997
|
|
|
$
|
6,288
|
|
|
$
|
17,433
|
|
Supplemental cash flow disclosures:
|
|
|
|
|
|
|
|
|
|||
Income taxes paid, net of refunds
|
$
|
438
|
|
|
$
|
587
|
|
|
$
|
1,012
|
|
Interest expense paid
|
$
|
322
|
|
|
$
|
318
|
|
|
$
|
532
|
|
Supplemental schedule of non-cash activities:
|
|
|
|
|
|
|
|
|
|||
Net assets transferred to Hewlett Packard Enterprise Company
|
$
|
—
|
|
|
$
|
22,144
|
|
|
$
|
—
|
|
Purchase of assets under capital leases
|
$
|
200
|
|
|
$
|
185
|
|
|
$
|
70
|
|
|
Common Stock
|
|
Additional
Paid-in Capital |
|
|
|
Accumulated
Other Comprehensive Loss |
|
Total HP
Stockholders’ Equity (Deficit) |
|
Non- controlling
Interests of Discontinued Operations |
|
Total Stockholders' Equity (Deficit)
|
||||||||||||||||||
|
Number of Shares
|
|
Par Value
|
|
|
Retained Earnings (Deficit)
|
|
|
|
|
|||||||||||||||||||||
|
In millions, except number of shares in thousands
|
||||||||||||||||||||||||||||||
Balance October 31, 2014
|
1,839,288
|
|
|
$
|
18
|
|
|
$
|
3,430
|
|
|
$
|
29,164
|
|
|
$
|
(5,881
|
)
|
|
$
|
26,731
|
|
|
$
|
396
|
|
|
$
|
27,127
|
|
|
Net earnings
|
|
|
|
|
|
|
|
|
|
4,554
|
|
|
|
|
|
4,554
|
|
|
|
|
|
4,554
|
|
||||||||
Other comprehensive loss, net of taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
(421
|
)
|
|
(421
|
)
|
|
|
|
|
(421
|
)
|
||||||||
Comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,133
|
|
|
|
|
|
4,133
|
|
||||||||
Issuance of common stock in connection with employee stock plans and other
|
39,834
|
|
|
|
|
|
(34
|
)
|
|
1
|
|
|
|
|
|
(33
|
)
|
|
|
|
|
(33
|
)
|
||||||||
Repurchases of common stock
|
(75,403
|
)
|
|
|
|
|
(2,237
|
)
|
|
(411
|
)
|
|
|
|
|
(2,648
|
)
|
|
|
|
|
(2,648
|
)
|
||||||||
Assumption of equity awards in connection with acquisitions
|
|
|
|
|
|
|
31
|
|
|
|
|
|
|
|
|
31
|
|
|
|
|
|
31
|
|
||||||||
Tax benefit from employee stock plans
|
|
|
|
|
|
|
64
|
|
|
|
|
|
|
|
|
64
|
|
|
|
|
|
64
|
|
||||||||
Cash dividends declared
|
|
|
|
|
|
|
|
|
|
(1,219
|
)
|
|
|
|
|
(1,219
|
)
|
|
|
|
|
(1,219
|
)
|
||||||||
Stock-based compensation expense
|
|
|
|
|
|
|
709
|
|
|
|
|
|
|
|
|
709
|
|
|
|
|
|
709
|
|
||||||||
Changes in non-controlling interest
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(13
|
)
|
|
(13
|
)
|
||||||||
Balance October 31, 2015
|
1,803,719
|
|
|
$
|
18
|
|
|
$
|
1,963
|
|
|
$
|
32,089
|
|
|
$
|
(6,302
|
)
|
|
$
|
27,768
|
|
|
$
|
383
|
|
|
$
|
28,151
|
|
|
Separation of Hewlett Packard Enterprise
|
|
|
|
|
|
|
|
|
|
(37,225
|
)
|
|
5,081
|
|
|
(32,144
|
)
|
|
(383
|
)
|
|
(32,527
|
)
|
||||||||
Net earnings
|
|
|
|
|
|
|
|
|
|
2,496
|
|
|
|
|
|
2,496
|
|
|
|
|
|
2,496
|
|
||||||||
Other comprehensive loss, net of taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
(217
|
)
|
|
(217
|
)
|
|
|
|
|
(217
|
)
|
||||||||
Comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,279
|
|
|
|
|
|
2,279
|
|
||||||||
Issuance of common stock in connection with employee stock plans and other
|
8,227
|
|
|
|
|
|
29
|
|
|
|
|
|
|
|
|
29
|
|
|
|
|
|
29
|
|
||||||||
Repurchases of common stock
|
(99,855
|
)
|
|
(1
|
)
|
|
(1,144
|
)
|
|
|
|
|
|
|
|
(1,145
|
)
|
|
|
|
|
(1,145
|
)
|
||||||||
Cash dividends declared
|
|
|
|
|
|
|
|
|
|
(858
|
)
|
|
|
|
|
(858
|
)
|
|
|
|
|
(858
|
)
|
||||||||
Stock-based compensation expense
|
|
|
|
|
|
|
182
|
|
|
|
|
|
|
|
|
182
|
|
|
|
|
|
182
|
|
||||||||
Balance October 31, 2016
|
1,712,091
|
|
|
$
|
17
|
|
|
$
|
1,030
|
|
|
$
|
(3,498
|
)
|
|
$
|
(1,438
|
)
|
|
$
|
(3,889
|
)
|
|
$
|
—
|
|
|
$
|
(3,889
|
)
|
|
Net earnings
|
|
|
|
|
|
|
|
|
|
2,526
|
|
|
|
|
|
2,526
|
|
|
|
|
|
2,526
|
|
||||||||
Other comprehensive income, net of taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
20
|
|
|
20
|
|
|
|
|
|
20
|
|
||||||||
Comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,546
|
|
|
|
|
|
2,546
|
|
||||||||
Issuance of common stock in connection with employee stock plans and other
|
18,532
|
|
|
|
|
|
52
|
|
|
|
|
|
|
|
|
52
|
|
|
|
|
|
52
|
|
||||||||
Repurchases of common stock
|
(81,043
|
)
|
|
(1
|
)
|
|
(926
|
)
|
|
(520
|
)
|
|
|
|
|
(1,447
|
)
|
|
|
|
|
(1,447
|
)
|
||||||||
Cash dividends declared
|
|
|
|
|
|
|
|
|
|
(894
|
)
|
|
|
|
|
(894
|
)
|
|
|
|
|
(894
|
)
|
||||||||
Stock-based compensation expense
|
|
|
|
|
|
|
224
|
|
|
|
|
|
|
|
|
224
|
|
|
|
|
|
224
|
|
||||||||
Balance October 31, 2017
|
$
|
1,649,580
|
|
|
$
|
16
|
|
|
$
|
380
|
|
|
$
|
(2,386
|
)
|
|
$
|
(1,418
|
)
|
|
$
|
(3,408
|
)
|
|
$
|
—
|
|
|
$
|
(3,408
|
)
|
•
|
Commercial PCs
are optimized for use by customers, including enterprise and SMBs, with a focus on robust designs, security, serviceability, connectivity, reliability and manageability in networked environments. Additionally, HP offers a range of services and solutions to enterprise and SMBs to help them manage the lifecycle of their PC and mobility installed base.
|
•
|
Consumer PCs
are Notebooks, Desktops, and hybrids that are optimized for consumer usage, focusing on multi-media consumption, online browsing, gaming and light productivity.
|
•
|
Office Printing Solutions
delivers HP’s office printers, supplies, services and solutions to SMBs and large enterprises. HP goes to market through its extensive channel network and directly with HP sales. Ongoing key initiatives include design and deployment of A3 products and solutions for the copier and multifunction printer market, printer security solutions, PageWide solutions and award-winning JetIntelligence Laserjet products.
|
•
|
Home Printing Solutions
delivers innovative printing products and solutions for the home and home business or small office customers utilizing both HP’s Ink and Laser technologies. Initiatives such as Instant Ink and Continuous Ink Supply System provide business model innovation to benefit and expand HP’s existing customer base, while new innovations like Sprocket drive print relevance for a mobile generation.
|
•
|
Graphics Solutions
offers large-format, commercial and industrial solutions to print service providers and packaging converters through the largest portfolio of printers and presses (HP DesignJet, HP Latex, HP Scitex, HP Indigo and HP PageWide Web Presses).
|
•
|
3D Printing
delivers HP’s 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.
|
•
|
Commercial Hardware
consists of Office Printing Solutions, Graphics Solutions and 3D Printing, excluding supplies;
|
•
|
Consumer Hardware
includes Home Printing Solutions, excluding supplies; and
|
•
|
Supplies
comprises a set of highly innovative consumable products, ranging from Ink and Laser print cartridges; and media to graphics supplies and 3D printing supplies, for recurring use in Consumer and Commercial Hardware.
|
|
Personal
Systems |
|
Printing
|
|
Corporate
Investments |
|
Total
Segments |
|
Eliminations and Other |
|
Total
|
||||||||||||
|
In millions
|
||||||||||||||||||||||
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net revenue
|
$
|
33,374
|
|
|
$
|
18,801
|
|
|
$
|
8
|
|
|
$
|
52,183
|
|
|
$
|
(127
|
)
|
|
$
|
52,056
|
|
Earnings (loss) from continuing operations
|
$
|
1,213
|
|
|
$
|
3,161
|
|
|
$
|
(87
|
)
|
|
$
|
4,287
|
|
|
|
|
|
|
|
||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net revenue
|
$
|
29,987
|
|
|
$
|
18,260
|
|
|
$
|
7
|
|
|
$
|
48,254
|
|
|
$
|
(16
|
)
|
(1)
|
$
|
48,238
|
|
Earnings (loss) from continuing operations
|
$
|
1,150
|
|
|
$
|
3,128
|
|
|
$
|
(98
|
)
|
|
$
|
4,180
|
|
|
|
|
|
|
|
||
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net revenue
|
$
|
31,520
|
|
|
$
|
21,232
|
|
|
$
|
20
|
|
|
$
|
52,772
|
|
|
$
|
(1,309
|
)
|
|
$
|
51,463
|
|
Earnings (loss) from continuing operations
|
$
|
1,022
|
|
|
$
|
3,765
|
|
|
$
|
(43
|
)
|
|
$
|
4,744
|
|
|
|
|
|
|
|
|
For the fiscal years ended October 31
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
|
|
|
In millions
|
|
|
||||||
Net revenue:
|
|
|
|
|
|
|
|
|
|||
Total segments
|
$
|
52,183
|
|
|
$
|
48,254
|
|
|
$
|
52,772
|
|
Net revenue eliminations and other
|
(127
|
)
|
|
(16
|
)
|
|
(1,309
|
)
|
|||
Total net revenue
|
$
|
52,056
|
|
|
$
|
48,238
|
|
|
$
|
51,463
|
|
Earnings from continuing operations before taxes:
|
|
|
|
|
|
|
|
|
|||
Total segment earnings from operations
|
$
|
4,287
|
|
|
$
|
4,180
|
|
|
$
|
4,744
|
|
Corporate and unallocated costs and eliminations
|
(51
|
)
|
|
(42
|
)
|
|
(503
|
)
|
|||
Stock-based compensation expense
|
(224
|
)
|
|
(182
|
)
|
|
(212
|
)
|
|||
Restructuring and other charges
|
(362
|
)
|
|
(205
|
)
|
|
(63
|
)
|
|||
Acquisition-related charges
|
(125
|
)
|
|
(7
|
)
|
|
(1
|
)
|
|||
Amortization of intangible assets
|
(1
|
)
|
|
(16
|
)
|
|
(102
|
)
|
|||
Defined benefit plan settlement (charges) credits
|
(5
|
)
|
|
(179
|
)
|
|
57
|
|
|||
Interest and other, net
|
(243
|
)
|
|
212
|
|
|
(388
|
)
|
|||
Total earnings from continuing operations before taxes
|
$
|
3,276
|
|
|
$
|
3,761
|
|
|
$
|
3,532
|
|
|
As of October 31
|
||||||
|
2017
|
|
2016
|
||||
|
In millions
|
||||||
Personal Systems
|
$
|
12,156
|
|
|
$
|
10,686
|
|
Printing
|
10,548
|
|
|
9,959
|
|
||
Corporate Investments
|
3
|
|
|
1
|
|
||
Corporate and unallocated assets
|
10,206
|
|
|
8,341
|
|
||
Total assets
|
$
|
32,913
|
|
|
$
|
28,987
|
|
|
For the fiscal years ended October 31
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
|
|
|
In millions
|
|
|
||||||
United States
|
$
|
19,321
|
|
|
$
|
18,042
|
|
|
$
|
17,746
|
|
Other countries
|
32,735
|
|
|
30,196
|
|
|
33,717
|
|
|||
Total net revenue
|
$
|
52,056
|
|
|
$
|
48,238
|
|
|
$
|
51,463
|
|
|
As of October 31
|
||||||
|
2017
|
|
2016
|
||||
|
In millions
|
||||||
United States
|
$
|
866
|
|
|
$
|
737
|
|
Singapore
|
372
|
|
|
314
|
|
||
Other countries
|
640
|
|
|
685
|
|
||
Total net property, plant and equipment
|
$
|
1,878
|
|
|
$
|
1,736
|
|
|
For the fiscal years ended October 31
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
|
|
|
In millions
|
|
|
||||||
Notebooks
|
$
|
19,782
|
|
|
$
|
16,982
|
|
|
$
|
17,271
|
|
Desktops
|
10,298
|
|
|
9,956
|
|
|
10,941
|
|
|||
Workstations
|
2,042
|
|
|
1,870
|
|
|
2,018
|
|
|||
Other
|
1,252
|
|
|
1,179
|
|
|
1,290
|
|
|||
Personal Systems
|
33,374
|
|
|
29,987
|
|
|
31,520
|
|
|||
Supplies
|
12,416
|
|
|
11,875
|
|
|
13,979
|
|
|||
Commercial Hardware
|
3,973
|
|
|
4,035
|
|
|
4,350
|
|
|||
Consumer Hardware
|
2,412
|
|
|
2,350
|
|
|
2,903
|
|
|||
Printing
|
18,801
|
|
|
18,260
|
|
|
21,232
|
|
|||
Corporate Investments
|
8
|
|
|
7
|
|
|
20
|
|
|||
Total segment net revenue
|
52,183
|
|
|
48,254
|
|
|
52,772
|
|
|||
Net revenue eliminations and other
|
(127
|
)
|
|
(16
|
)
|
|
(1,309
|
)
|
|||
Total net revenue
|
$
|
52,056
|
|
|
$
|
48,238
|
|
|
$
|
51,463
|
|
|
Fiscal 2017 Plan
|
|
Fiscal 2015 Plan
|
|
Fiscal 2012 Plan
|
|
|
||||||||||||||||||||
|
Severance
|
|
Infrastructure and other
(1)
|
|
Severance and PRP
(2)
|
|
Infrastructure and other
|
|
Severance and EER
(3)
|
|
Infrastructure and other
|
|
Total
|
||||||||||||||
|
In millions
|
||||||||||||||||||||||||||
Accrued balance as of October 31, 2014
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
218
|
|
|
$
|
7
|
|
|
$
|
225
|
|
Charges
|
—
|
|
|
—
|
|
|
39
|
|
|
—
|
|
|
23
|
|
|
1
|
|
|
63
|
|
|||||||
Cash payments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(216
|
)
|
|
(4
|
)
|
|
(220
|
)
|
|||||||
Non-cash and other adjustments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
(1
|
)
|
|
(5
|
)
|
|||||||
Accrued balance as of October 31, 2015
|
—
|
|
|
—
|
|
|
39
|
|
|
—
|
|
|
21
|
|
|
3
|
|
|
63
|
|
|||||||
Charges
|
24
|
|
|
—
|
|
|
117
|
|
|
27
|
|
|
7
|
|
|
—
|
|
|
175
|
|
|||||||
Cash payments
|
—
|
|
|
—
|
|
|
(122
|
)
|
|
(4
|
)
|
|
(30
|
)
|
|
(1
|
)
|
|
(157
|
)
|
|||||||
Non-cash and other adjustments
|
—
|
|
|
—
|
|
|
(13
|
)
|
|
(19
|
)
|
|
9
|
|
|
—
|
|
|
(23
|
)
|
|||||||
Accrued balance as of October 31, 2016
|
24
|
|
|
—
|
|
|
21
|
|
|
4
|
|
|
7
|
|
|
2
|
|
|
58
|
|
|||||||
Charges
|
117
|
|
|
94
|
|
|
15
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
227
|
|
|||||||
Cash payments
|
(68
|
)
|
|
(23
|
)
|
|
(36
|
)
|
|
(2
|
)
|
|
(5
|
)
|
|
—
|
|
|
(134
|
)
|
|||||||
Non-cash and other adjustments
|
3
|
|
|
(52
|
)
|
|
6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(43
|
)
|
|||||||
Accrued balance as of October 31, 2017
|
$
|
76
|
|
|
$
|
19
|
|
|
$
|
6
|
|
|
$
|
2
|
|
|
$
|
3
|
|
|
$
|
2
|
|
|
$
|
108
|
|
Total costs incurred to date as of October 31, 2017
|
$
|
141
|
|
|
$
|
94
|
|
|
$
|
171
|
|
|
$
|
27
|
|
|
$
|
1,075
|
|
|
$
|
44
|
|
|
$
|
1,552
|
|
Reflected in Consolidated Balance Sheets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Other accrued liabilities
|
$
|
76
|
|
|
$
|
19
|
|
|
$
|
6
|
|
|
$
|
2
|
|
|
$
|
3
|
|
|
$
|
1
|
|
|
$
|
107
|
|
Other non-current liabilities
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
1
|
|
(1)
|
Infrastructure and other includes asset impairment charges of
$52 million
in fiscal year 2017 associated with the consolidation of manufacturing into global hubs.
|
(2)
|
PRP represents Phased Retirement Program.
|
(3)
|
EER represents Enhanced Early Retirement.
|
|
For the fiscal years ended October 31
|
||||||||||||||||||||||||||||||||||
|
2017
|
|
2016
|
|
2015
|
|
2017
|
|
2016
|
|
2015
|
|
2017
|
|
2016
|
|
2015
|
||||||||||||||||||
|
U.S. Defined
Benefit Plans |
|
Non-U.S. Defined
Benefit Plans |
|
Post-Retirement
Benefit Plans |
||||||||||||||||||||||||||||||
|
In millions
|
||||||||||||||||||||||||||||||||||
Service cost
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
48
|
|
|
$
|
47
|
|
|
$
|
208
|
|
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
5
|
|
Interest cost
|
469
|
|
|
543
|
|
|
556
|
|
|
18
|
|
|
20
|
|
|
289
|
|
|
18
|
|
|
20
|
|
|
28
|
|
|||||||||
Expected return on plan assets
|
(677
|
)
|
|
(732
|
)
|
|
(849
|
)
|
|
(31
|
)
|
|
(36
|
)
|
|
(601
|
)
|
|
(26
|
)
|
|
(33
|
)
|
|
(39
|
)
|
|||||||||
Amortization and deferrals:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Actuarial loss (gain)
|
73
|
|
|
55
|
|
|
52
|
|
|
40
|
|
|
28
|
|
|
213
|
|
|
(17
|
)
|
|
(12
|
)
|
|
(11
|
)
|
|||||||||
Prior service credit
|
—
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
(3
|
)
|
|
(15
|
)
|
|
(19
|
)
|
|
(17
|
)
|
|
(19
|
)
|
|||||||||
Net periodic benefit (credit) cost
|
(135
|
)
|
|
(134
|
)
|
|
(240
|
)
|
|
72
|
|
|
56
|
|
|
94
|
|
|
(43
|
)
|
|
(41
|
)
|
|
(36
|
)
|
|||||||||
Curtailment gain
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Settlement loss (gain)
|
3
|
|
|
180
|
|
|
(79
|
)
|
|
2
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Special termination benefits
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|
4
|
|
|
1
|
|
|||||||||
Plan expense allocation
(1)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
25
|
|
|
—
|
|
|
—
|
|
|
28
|
|
|||||||||
Total benefit (credit) cost from continuing operations
|
$
|
(132
|
)
|
|
$
|
46
|
|
|
$
|
(319
|
)
|
|
$
|
74
|
|
|
$
|
58
|
|
|
$
|
126
|
|
|
$
|
(43
|
)
|
|
$
|
(37
|
)
|
|
$
|
(7
|
)
|
Summary of total benefit (credit) cost:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Continuing operations
|
$
|
(132
|
)
|
|
$
|
46
|
|
|
$
|
(319
|
)
|
|
$
|
74
|
|
|
$
|
58
|
|
|
$
|
126
|
|
|
$
|
(43
|
)
|
|
$
|
(37
|
)
|
|
$
|
(7
|
)
|
Discontinued operations
|
—
|
|
|
—
|
|
|
236
|
|
|
—
|
|
|
—
|
|
|
105
|
|
|
—
|
|
|
—
|
|
|
(28
|
)
|
|||||||||
Total benefit (credit) cost
|
$
|
(132
|
)
|
|
$
|
46
|
|
|
$
|
(83
|
)
|
|
$
|
74
|
|
|
$
|
58
|
|
|
$
|
231
|
|
|
$
|
(43
|
)
|
|
$
|
(37
|
)
|
|
$
|
(35
|
)
|
(1)
|
Plan expense allocation relates to the employees of HP covered under Hewlett Packard Enterprise plans or employees of Hewlett Packard Enterprise covered under HP plans.
|
|
For the fiscal years ended October 31
|
|||||||||||||||||||||||||
|
2017
|
|
2016
|
|
2015
|
|
2017
|
|
2016
|
|
2015
|
|
2017
|
|
2016
|
|
2015
|
|||||||||
|
U.S. Defined
Benefit Plans |
|
Non-U.S. Defined
Benefit Plans |
|
Post-Retirement
Benefit Plans |
|||||||||||||||||||||
Discount rate
|
4.0
|
%
|
|
4.4
|
%
|
|
4.4
|
%
|
|
1.6
|
%
|
|
2.3
|
%
|
|
3.0
|
%
|
|
3.4
|
%
|
|
3.6
|
%
|
|
3.6
|
%
|
Expected increase in compensation levels
|
2.0
|
%
|
|
2.0
|
%
|
|
2.0
|
%
|
|
2.7
|
%
|
|
2.5
|
%
|
|
2.4
|
%
|
|
—
|
|
|
—
|
|
|
—
|
|
Expected long-term return on plan assets
|
6.9
|
%
|
|
6.9
|
%
|
|
7.2
|
%
|
|
4.4
|
%
|
|
5.6
|
%
|
|
6.9
|
%
|
|
7.3
|
%
|
|
8.0
|
%
|
|
9.0
|
%
|
|
As of October 31
|
||||||||||||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||||||
|
U.S. Defined
Benefit Plans |
|
Non-U.S. Defined
Benefit Plans |
|
Post-Retirement
Benefit Plans |
||||||||||||||||||
|
In millions
|
||||||||||||||||||||||
Change in fair value of plan assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Fair value of assets — beginning of year
|
$
|
10,176
|
|
|
$
|
11,077
|
|
|
$
|
692
|
|
|
$
|
853
|
|
|
$
|
390
|
|
|
$
|
434
|
|
Actual return on plan assets
|
1,223
|
|
|
736
|
|
|
86
|
|
|
(14
|
)
|
|
26
|
|
|
11
|
|
||||||
Employer contributions
|
33
|
|
|
32
|
|
|
27
|
|
|
20
|
|
|
9
|
|
|
18
|
|
||||||
Participant contributions
|
—
|
|
|
—
|
|
|
10
|
|
|
10
|
|
|
53
|
|
|
48
|
|
||||||
Benefits paid
|
(583
|
)
|
|
(339
|
)
|
|
(14
|
)
|
|
(15
|
)
|
|
(127
|
)
|
|
(121
|
)
|
||||||
Settlement
|
(11
|
)
|
|
(1,330
|
)
|
|
(6
|
)
|
|
(9
|
)
|
|
—
|
|
|
—
|
|
||||||
Currency impact
|
—
|
|
|
—
|
|
|
20
|
|
|
4
|
|
|
—
|
|
|
—
|
|
||||||
Transfers to Hewlett Packard Enterprise
|
—
|
|
|
—
|
|
|
—
|
|
|
(157
|
)
|
|
—
|
|
|
—
|
|
||||||
Fair value of assets — end of year
|
$
|
10,838
|
|
|
$
|
10,176
|
|
|
$
|
815
|
|
|
$
|
692
|
|
|
$
|
351
|
|
|
$
|
390
|
|
Change in benefits obligation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Projected benefit obligation — beginning of year
|
$
|
12,144
|
|
|
$
|
12,709
|
|
|
$
|
1,120
|
|
|
$
|
1,082
|
|
|
$
|
535
|
|
|
$
|
597
|
|
Acquisition/addition of plans
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
||||||
Service cost
|
—
|
|
|
—
|
|
|
48
|
|
|
47
|
|
|
1
|
|
|
1
|
|
||||||
Interest cost
|
469
|
|
|
543
|
|
|
18
|
|
|
20
|
|
|
18
|
|
|
20
|
|
||||||
Participant contributions
|
—
|
|
|
—
|
|
|
10
|
|
|
10
|
|
|
53
|
|
|
48
|
|
||||||
Actuarial loss (gain)
|
247
|
|
|
561
|
|
|
(77
|
)
|
|
120
|
|
|
(17
|
)
|
|
16
|
|
||||||
Benefits paid
|
(583
|
)
|
|
(339
|
)
|
|
(14
|
)
|
|
(15
|
)
|
|
(127
|
)
|
|
(121
|
)
|
||||||
Plan amendments
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
(30
|
)
|
||||||
Curtailment
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
||||||
Settlement
|
(11
|
)
|
|
(1,330
|
)
|
|
(6
|
)
|
|
(9
|
)
|
|
—
|
|
|
—
|
|
||||||
Special termination benefits
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
||||||
Currency impact
|
—
|
|
|
—
|
|
|
36
|
|
|
(4
|
)
|
|
—
|
|
|
—
|
|
||||||
Transfers to Hewlett Packard Enterprise
|
—
|
|
|
—
|
|
|
—
|
|
|
(128
|
)
|
|
—
|
|
|
—
|
|
||||||
Projected benefit obligation — end of year
|
$
|
12,266
|
|
|
$
|
12,144
|
|
|
$
|
1,132
|
|
|
$
|
1,120
|
|
|
$
|
463
|
|
|
$
|
535
|
|
Funded status at end of year
|
$
|
(1,428
|
)
|
|
$
|
(1,968
|
)
|
|
$
|
(317
|
)
|
|
$
|
(428
|
)
|
|
$
|
(112
|
)
|
|
$
|
(145
|
)
|
Accumulated benefit obligation
|
$
|
12,266
|
|
|
$
|
12,144
|
|
|
$
|
1,014
|
|
|
$
|
1,013
|
|
|
—
|
|
|
—
|
|
|
For the fiscal years ended October 31
|
||||||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||
|
U.S. Defined
Benefit Plans |
|
Non-U.S. Defined
Benefit Plans |
|
Post-Retirement
Benefit Plans |
||||||||||||
Discount rate
|
3.8
|
%
|
|
4.0
|
%
|
|
2.0
|
%
|
|
1.6
|
%
|
|
3.5
|
%
|
|
3.4
|
%
|
Expected increase in compensation levels
|
2.0
|
%
|
|
2.0
|
%
|
|
2.4
|
%
|
|
2.7
|
%
|
|
—
|
|
|
—
|
|
|
As of October 31
|
||||||||||||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||||||
|
U.S. Defined
Benefit Plans |
|
Non-U.S. Defined
Benefit Plans |
|
Post-Retirement
Benefit Plans |
||||||||||||||||||
|
|
|
|
|
In millions
|
|
|
|
|
|
|
||||||||||||
Non-current assets
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
18
|
|
|
$
|
17
|
|
|
$
|
7
|
|
|
$
|
—
|
|
Current liabilities
|
(33
|
)
|
|
(33
|
)
|
|
(5
|
)
|
|
(5
|
)
|
|
(7
|
)
|
|
(9
|
)
|
||||||
Non-current liabilities
|
(1,395
|
)
|
|
(1,935
|
)
|
|
(330
|
)
|
|
(440
|
)
|
|
(112
|
)
|
|
(136
|
)
|
||||||
Funded status at end of year
|
$
|
(1,428
|
)
|
|
$
|
(1,968
|
)
|
|
$
|
(317
|
)
|
|
$
|
(428
|
)
|
|
$
|
(112
|
)
|
|
$
|
(145
|
)
|
|
As of October 31, 2017
|
||||||||||
|
U.S. Defined
Benefit Plans |
|
Non-U.S. Defined
Benefit Plans |
|
Post-Retirement
Benefit Plans |
||||||
|
|
|
In millions
|
|
|
||||||
Net actuarial loss (gain)
|
$
|
1,327
|
|
|
$
|
279
|
|
|
$
|
(106
|
)
|
Prior service benefit
|
—
|
|
|
(20
|
)
|
|
(93
|
)
|
|||
Total recognized in Accumulated other comprehensive loss
|
$
|
1,327
|
|
|
$
|
259
|
|
|
$
|
(199
|
)
|
|
U.S. Defined
Benefit Plans |
|
Non-U.S. Defined
Benefit Plans |
|
Post-Retirement
Benefit Plans |
||||||
|
|
|
In millions
|
|
|
||||||
Net actuarial loss (gain)
|
$
|
59
|
|
|
$
|
27
|
|
|
$
|
(17
|
)
|
Prior service benefit
|
—
|
|
|
(5
|
)
|
|
(18
|
)
|
|||
Total expected to be recognized in net periodic benefit cost (credit)
|
$
|
59
|
|
|
$
|
22
|
|
|
$
|
(35
|
)
|
|
As of October 31, 2017
|
||||||||||||||||||||||||||||||||||||||||||||||
|
U.S. Defined Benefit Plans
|
|
Non-U.S. Defined Benefit Plans
|
|
Post-Retirement Benefit Plans
|
||||||||||||||||||||||||||||||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||||||||||||||||||
|
In millions
|
||||||||||||||||||||||||||||||||||||||||||||||
Asset Category:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Equity securities
(1)
|
$
|
3,174
|
|
|
$
|
40
|
|
|
$
|
—
|
|
|
$
|
3,214
|
|
|
$
|
124
|
|
|
$
|
6
|
|
|
$
|
—
|
|
|
$
|
130
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Debt securities
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Corporate
|
—
|
|
|
3,379
|
|
|
—
|
|
|
3,379
|
|
|
—
|
|
|
152
|
|
|
—
|
|
|
152
|
|
|
—
|
|
|
25
|
|
|
—
|
|
|
25
|
|
||||||||||||
Government
|
—
|
|
|
2,513
|
|
|
—
|
|
|
2,513
|
|
|
—
|
|
|
84
|
|
|
—
|
|
|
84
|
|
|
—
|
|
|
41
|
|
|
—
|
|
|
41
|
|
||||||||||||
Real Estate Funds
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
51
|
|
|
—
|
|
|
53
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||||
Insurance Group Annuity Contracts
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||||
Common Collective Trusts + 103-12s
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||||
Registered Investment Companies
(3)
|
89
|
|
|
—
|
|
|
—
|
|
|
89
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
54
|
|
|
—
|
|
|
—
|
|
|
54
|
|
||||||||||||
Cash and Cash Equivalents
(4)
|
8
|
|
|
64
|
|
|
—
|
|
|
72
|
|
|
33
|
|
|
—
|
|
|
—
|
|
|
33
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
2
|
|
||||||||||||
Other
(5)
|
(172
|
)
|
|
(561
|
)
|
|
—
|
|
|
(733
|
)
|
|
5
|
|
|
9
|
|
|
1
|
|
|
15
|
|
|
(12
|
)
|
|
—
|
|
|
—
|
|
|
(12
|
)
|
||||||||||||
Net plan assets subject to leveling
|
$
|
3,099
|
|
|
$
|
5,435
|
|
|
$
|
—
|
|
|
$
|
8,534
|
|
|
$
|
164
|
|
|
$
|
316
|
|
|
$
|
1
|
|
|
$
|
481
|
|
|
$
|
42
|
|
|
$
|
68
|
|
|
$
|
—
|
|
|
$
|
110
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Investments using NAV as a Practical Expedient:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Alternative Investments
(6)
|
|
|
|
|
|
|
|
|
|
1,444
|
|
|
|
|
|
|
|
|
|
|
|
13
|
|
|
|
|
|
|
|
|
|
|
|
198
|
|
||||||||||||
Common Contractual Funds
(7)
|
|
|
|
|
|
|
13
|
|
|
|
|
|
|
|
|
286
|
|
|
|
|
|
|
|
|
—
|
|
|||||||||||||||||||||
Common Collective Trusts and 103-12 Investment Entities
(8)
|
|
|
|
|
|
|
|
|
|
732
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
39
|
|
||||||||||||
Registered Investment Companies
(3)
|
|
|
|
|
|
|
115
|
|
|
|
|
|
|
|
|
35
|
|
|
|
|
|
|
|
|
4
|
|
|||||||||||||||||||||
Investments at Fair Value
|
|
|
|
|
|
|
$
|
10,838
|
|
|
|
|
|
|
|
|
$
|
815
|
|
|
|
|
|
|
|
|
$
|
351
|
|
|
As of October 31, 2016
|
||||||||||||||||||||||||||||||||||||||||||||||
|
U.S. Defined Benefit Plans
|
|
Non-U.S. Defined Benefit Plans
|
|
Post-Retirement Benefit Plans
|
||||||||||||||||||||||||||||||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||||||||||||||||||
|
In millions
|
||||||||||||||||||||||||||||||||||||||||||||||
Asset Category:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Equity securities
(1)
|
$
|
1,716
|
|
|
$
|
59
|
|
|
$
|
—
|
|
|
$
|
1,775
|
|
|
$
|
106
|
|
|
$
|
15
|
|
|
$
|
—
|
|
|
$
|
121
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
1
|
|
Debt securities
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Corporate
|
—
|
|
|
3,132
|
|
|
—
|
|
|
3,132
|
|
|
—
|
|
|
125
|
|
|
—
|
|
|
125
|
|
|
—
|
|
|
26
|
|
|
—
|
|
|
26
|
|
||||||||||||
Government
|
—
|
|
|
1,782
|
|
|
—
|
|
|
1,782
|
|
|
—
|
|
|
63
|
|
|
—
|
|
|
63
|
|
|
—
|
|
|
42
|
|
|
—
|
|
|
42
|
|
||||||||||||
Real Estate Funds
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
43
|
|
|
—
|
|
|
44
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||||
Insurance Group Annuity Contracts
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
1
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||||
Common Collective Trusts and 103-12 Investments Entities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||||
Registered Investment Companies
(3)
|
20
|
|
|
—
|
|
|
—
|
|
|
20
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
54
|
|
|
—
|
|
|
—
|
|
|
54
|
|
||||||||||||
Cash and Cash Equivalents
(4)
|
4
|
|
|
52
|
|
|
—
|
|
|
56
|
|
|
18
|
|
|
—
|
|
|
—
|
|
|
18
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
5
|
|
||||||||||||
Other
(5)
|
(169
|
)
|
|
(23
|
)
|
|
—
|
|
|
(192
|
)
|
|
7
|
|
|
16
|
|
|
—
|
|
|
23
|
|
|
(12
|
)
|
|
—
|
|
|
—
|
|
|
(12
|
)
|
||||||||||||
Net plan assets subject to leveling
|
$
|
1,571
|
|
|
$
|
5,002
|
|
|
$
|
—
|
|
|
$
|
6,573
|
|
|
$
|
132
|
|
|
$
|
275
|
|
|
$
|
1
|
|
|
$
|
408
|
|
|
$
|
42
|
|
|
$
|
74
|
|
|
$
|
—
|
|
|
$
|
116
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Investments using NAV as a Practical Expedient:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Alternative Investments
(6)
|
|
|
|
|
|
|
|
|
|
1,027
|
|
|
|
|
|
|
|
|
|
|
|
13
|
|
|
|
|
|
|
|
|
|
|
|
219
|
|
||||||||||||
Common Contractual Funds
(7)
|
|
|
|
|
|
|
|
|
|
1,834
|
|
|
|
|
|
|
|
|
|
|
|
241
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
||||||||||||
Common Collective Trusts and 103-12 Investment Entities
(8)
|
|
|
|
|
|
|
|
|
|
639
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
51
|
|
||||||||||||
Registered Investment Companies
(3)
|
|
|
|
|
|
|
|
|
|
103
|
|
|
|
|
|
|
|
|
|
|
|
30
|
|
|
|
|
|
|
|
|
|
|
|
4
|
|
||||||||||||
Investments at Fair Value
|
|
|
|
|
|
|
|
|
|
$
|
10,176
|
|
|
|
|
|
|
|
|
|
|
|
$
|
692
|
|
|
|
|
|
|
|
|
|
|
|
$
|
390
|
|
(1)
|
Investments in publicly-traded equity securities are valued using the closing price on the measurement date as reported on the stock exchange on which the individual securities are traded.
|
(2)
|
The fair value of corporate, government and asset-backed debt securities is based on observable inputs of comparable market transactions. For corporate and government debt securities traded on active exchanges, fair value is based on observable quoted prices. Also included in this category is debt issued by national, state and local governments and agencies.
|
(3)
|
Includes publicly and privately traded Registered Investment Entities.
|
(4)
|
Includes cash and cash equivalents such as short-term marketable securities. Cash and cash equivalents include money market funds, which are valued based on NAV. Other assets were classified in the fair value hierarchy based on the lowest level input (e.g., quoted prices and observable inputs) that is significant to the fair value measure in its entirety.
|
(5)
|
Includes reverse repurchase agreements, unsettled transactions, international insured contracts, and derivative instruments. Such unsettled transactions relate primarily to fixed income securities are settled in the first quarter of the next fiscal year. 2017 is the only year we have reverse repurchase agreements.
|
(6)
|
Alternative Investments primarily include private equities and hedge funds. The valuation of alternative investments, such as limited partnerships and joint ventures, may require significant management judgment. For alternative investments, valuation is based on NAV as reported by the Asset Manager and adjusted for cash flows, if necessary. In making such an assessment, a variety of factors are reviewed by management, including but not limited to the timeliness of NAV as reported by the asset manager and changes in general economic and market conditions subsequent to the last NAV reported by the asset manager.
|
•
|
Private equities include limited partnerships such as equity, buyout, venture capital, real estate and other similar funds
|
•
|
Hedge funds include limited partnerships that invest both long and short primarily in common stocks and credit, relative value, event-driven equity, distressed debt and macro strategies. Management of the hedge funds has the ability to shift investments from value to growth strategies, from small to large capitalization stocks and bonds, and from a net long position to a net short position.
|
(7)
|
The Common Contractual Fund is an investment arrangement in which institutional investors pool their assets. Units may be acquired in different sub-funds focused on equities, fixed income, alternative investments and emerging markets. Each sub-fund is invested in accordance with the fund’s investment objective and units are issued in relation to each sub-fund. While the sub-funds are not publicly traded, the custodian strikes a net asset value either once or twice a month, depending on the sub-fund. These assets are valued using NAV as a practical expedient.
|
(8)
|
Department of Labor 103-12 IE (Investment Entity) designation is for plan assets held by two or more unrelated employee benefit plans which includes limited partnerships and venture capital partnerships. Common collective trusts, interests in 103-12 entities and registered investment companies are valued using NAV as a practical expedient.
|
|
|
2017 Target Allocation
|
|||||||
Asset Category
|
|
U.S. Defined Benefit Plans
|
|
Non-U.S. Defined
Benefit Plans |
|
Post-Retirement
Benefit Plans |
|||
Equity-related investments
|
|
40.2
|
%
|
|
40.6
|
%
|
|
69.2
|
%
|
Debt securities
|
|
59.8
|
%
|
|
39.3
|
%
|
|
18.8
|
%
|
Real estate
|
|
—
|
|
|
6.3
|
%
|
|
2.0
|
%
|
Cash and cash equivalents
|
|
—
|
|
|
3.8
|
%
|
|
10.0
|
%
|
Other
|
|
—
|
|
|
10.0
|
%
|
|
—
|
|
Total
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
Fiscal year
|
|
U.S. Defined
Benefit Plans
|
|
Non-U.S.
Defined
Benefit Plans
|
|
Post-Retirement
Benefit Plans
|
||||||
|
|
In millions
|
||||||||||
2018
|
|
$
|
823
|
|
|
$
|
28
|
|
|
$
|
54
|
|
2019
|
|
664
|
|
|
30
|
|
|
45
|
|
|||
2020
|
|
676
|
|
|
27
|
|
|
41
|
|
|||
2021
|
|
695
|
|
|
30
|
|
|
38
|
|
|||
2022
|
|
720
|
|
|
33
|
|
|
35
|
|
|||
Next five fiscal years to October 31, 2027
|
|
3,690
|
|
|
210
|
|
|
162
|
|
|
For the fiscal years
ended October 31
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
|
In millions
|
||||||||||
Stock-based compensation expense
|
$
|
224
|
|
|
$
|
182
|
|
|
$
|
212
|
|
Income tax benefit
|
(71
|
)
|
|
(63
|
)
|
|
(62
|
)
|
|||
Stock-based compensation expense, net of tax
|
$
|
153
|
|
|
$
|
119
|
|
|
$
|
150
|
|
|
For the fiscal years ended October 31
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Weighted-average fair value
(1)
|
$
|
20
|
|
|
$
|
13
|
|
|
$
|
47
|
|
Expected volatility
(2)
|
30.5
|
%
|
|
32.5
|
%
|
|
33.6
|
%
|
|||
Risk-free interest rate
(3)
|
1.4
|
%
|
|
1.2
|
%
|
|
1.0
|
%
|
|||
Expected performance period in years
(4)
|
2.9
|
|
|
2.9
|
|
|
2.9
|
|
(1)
|
The weighted-average fair value was based on performance-adjusted restricted stock units granted during the period.
|
(2)
|
The expected volatility was estimated using the historical volatility derived from HP’s common stock.
|
(3)
|
The risk-free interest rate was estimated based on the yield on U.S. Treasury zero-coupon issues.
|
(4)
|
The expected performance period was estimated based on the length of the remaining performance period from the grant date.
|
|
As of October 31
|
|||||||||||||||||||
|
2017
|
|
2016
|
|
2015
|
|||||||||||||||
|
Shares
|
|
Weighted-
Average Grant Date Fair Value Per Share |
|
Shares
|
|
Weighted-
Average Grant Date Fair Value Per Share |
|
Shares
|
|
Weighted-
Average Grant Date Fair Value Per Share |
|||||||||
|
In thousands
|
|
|
|
In thousands
|
|
|
|
In thousands
|
|
|
|||||||||
Outstanding at beginning of year
|
28,710
|
|
|
$
|
13
|
|
|
29,717
|
|
|
$
|
32
|
|
|
40,808
|
|
|
$
|
24
|
|
Granted
|
15,858
|
|
|
$
|
16
|
|
|
29,286
|
|
|
$
|
10
|
|
|
26,991
|
|
(1)
|
$
|
35
|
|
Vested
|
(11,915
|
)
|
|
$
|
14
|
|
|
(4,161
|
)
|
|
$
|
13
|
|
|
(34,177
|
)
|
|
$
|
26
|
|
Awards canceled due to Separation
|
—
|
|
|
$
|
—
|
|
|
(23,926
|
)
|
|
$
|
32
|
|
|
—
|
|
|
$
|
—
|
|
Forfeited
|
(831
|
)
|
|
$
|
14
|
|
|
(2,206
|
)
|
|
$
|
14
|
|
|
(3,905
|
)
|
|
$
|
29
|
|
Outstanding at end of year
|
31,822
|
|
|
$
|
14
|
|
|
28,710
|
|
|
$
|
13
|
|
|
29,717
|
|
|
$
|
32
|
|
(1)
|
In fiscal year 2015, HP assumed approximately
8 million
shares of restricted stock units through acquisition with a weighted-average grant date fair value of
$33
per share.
|
|
For the fiscal years ended
October 31
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Weighted-average fair value
(1)
|
$
|
4
|
|
|
$
|
4
|
|
|
$
|
8
|
|
Expected volatility
(2)
|
28.0
|
%
|
|
36.2
|
%
|
|
26.8
|
%
|
|||
Risk-free interest rate
(3)
|
1.9
|
%
|
|
1.8
|
%
|
|
1.7
|
%
|
|||
Expected dividend yield
(4)
|
2.8
|
%
|
|
3.5
|
%
|
|
1.8
|
%
|
|||
Expected term in years
(5)
|
5.5
|
|
|
6.0
|
|
|
5.9
|
|
(1)
|
The weighted-average fair value was based on stock options granted during the period.
|
(2)
|
For all awards granted in fiscal year 2017 and 2016, expected volatility was estimated using the leverage-adjusted average of the term-matching volatilities of peer companies due to the lack of volume of forward traded options, which precluded the use of implied volatility. For all awards granted in fiscal year 2015, expected volatility was estimated using the implied volatility derived from options traded on HP’s common stock.
|
(3)
|
The risk-free interest rate was estimated based on the yield on U.S. Treasury zero-coupon issues.
|
(4)
|
The expected dividend yield represents a constant dividend yield applied for the duration of the expected term of the award.
|
(5)
|
For awards subject to service-based vesting, due to the lack of historical exercise and post-vesting termination patterns of the post-Separation employee base, the expected term was estimated using a simplified method for all awards granted in fiscal year 2017 and 2016 and the expected term was estimated using historical exercise and post-vesting termination patterns for all awards granted in fiscal year 2015; and for performance-contingent awards, the expected term represents an output from the lattice model.
|
|
As of October 31
|
|||||||||||||||||||||||||||||||||||||
|
2017
|
|
2016
|
|
2015
|
|||||||||||||||||||||||||||||||||
|
Shares
|
|
Weighted-
Average Exercise Price |
|
Weighted-
Average Remaining Contractual Term |
|
Aggregate
Intrinsic Value |
|
Shares
|
|
Weighted-
Average Exercise Price |
|
Weighted-
Average Remaining Contractual Term |
|
Aggregate
Intrinsic Value |
|
Shares
|
|
Weighted-
Average Exercise Price |
|
Weighted-
Average Remaining Contractual Term |
|
Aggregate
Intrinsic Value |
|||||||||||||||
|
In
thousands |
|
|
|
In years
|
|
In
millions |
|
In
thousands |
|
|
|
In years
|
|
In
millions |
|
In
thousands |
|
|
|
In years
|
|
In
millions |
|||||||||||||||
Outstanding at beginning of year
|
28,218
|
|
|
$
|
12
|
|
|
|
|
|
|
|
36,278
|
|
|
$
|
26
|
|
|
|
|
|
|
|
57,853
|
|
|
$
|
27
|
|
|
|
|
|
|
|||
Granted and assumed through acquisition
|
104
|
|
|
$
|
19
|
|
|
|
|
|
|
|
25,425
|
|
|
$
|
6
|
|
|
|
|
|
|
|
9,086
|
|
|
$
|
36
|
|
|
|
|
|
|
|||
Exercised
|
(9,407
|
)
|
|
$
|
11
|
|
|
|
|
|
|
|
(4,714
|
)
|
|
$
|
8
|
|
|
|
|
|
|
|
(12,845
|
)
|
|
$
|
19
|
|
|
|
|
|
|
|||
Awards canceled due to Separation
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
(26,252
|
)
|
|
$
|
26
|
|
|
|
|
|
|
—
|
|
|
$
|
—
|
|
|
|
|
|
||||||
Forfeited/canceled/expired
|
(848
|
)
|
|
$
|
17
|
|
|
|
|
|
|
|
(2,519
|
)
|
|
$
|
17
|
|
|
|
|
|
|
|
(17,816
|
)
|
|
$
|
40
|
|
|
|
|
|
|
|||
Outstanding at end of year
|
18,067
|
|
|
$
|
13
|
|
|
4.2
|
|
$
|
152
|
|
|
28,218
|
|
|
$
|
12
|
|
|
5.0
|
|
$
|
73
|
|
|
36,278
|
|
|
$
|
26
|
|
|
5.1
|
|
$
|
153
|
|
Vested and expected to vest
|
17,692
|
|
|
$
|
13
|
|
|
4.1
|
|
$
|
149
|
|
|
26,850
|
|
|
$
|
12
|
|
|
4.9
|
|
$
|
71
|
|
|
34,973
|
|
|
$
|
26
|
|
|
5.0
|
|
$
|
152
|
|
Exercisable
|
10,898
|
|
|
$
|
12
|
|
|
3.1
|
|
$
|
102
|
|
|
15,418
|
|
|
$
|
11
|
|
|
3.7
|
|
$
|
62
|
|
|
25,630
|
|
|
$
|
24
|
|
|
4.4
|
|
$
|
146
|
|
|
|
As of October 31, 2017
|
||||||||||||||
|
|
Options Outstanding
|
|
Options Exercisable
|
||||||||||||
Range of Exercise Prices
|
|
Shares
Outstanding |
|
Weighted-
Average Remaining Contractual Term |
|
Weighted-
Average Exercise Price |
|
Shares
Exercisable |
|
Weighted-
Average Exercise Price |
||||||
|
|
In thousands
|
|
In years
|
|
In thousands
|
||||||||||
$0-$9.99
|
|
1,226
|
|
|
2.4
|
|
$
|
7
|
|
|
1,226
|
|
|
$
|
7
|
|
$10-$19.99
|
|
16,634
|
|
|
4.3
|
|
$
|
14
|
|
|
9,465
|
|
|
$
|
13
|
|
$20-$29.99
|
|
207
|
|
|
1.0
|
|
$
|
23
|
|
|
207
|
|
|
$
|
23
|
|
|
|
18,067
|
|
|
4.2
|
|
$
|
13
|
|
|
10,898
|
|
|
$
|
12
|
|
|
As of October 31
|
|||||||
|
2017
|
|
2016
|
|
2015
|
|||
|
In thousands
|
|||||||
Shares available for future grant
|
419,071
|
|
|
453,865
|
|
|
215,949
|
|
Shares reserved for future issuance
|
468,531
|
|
|
510,176
|
|
|
276,481
|
|
|
For the fiscal years ended October 31
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
|
In millions
|
||||||||||
U.S.
|
$
|
(14
|
)
|
|
$
|
468
|
|
|
$
|
216
|
|
Non-U.S.
|
3,290
|
|
|
3,293
|
|
|
3,316
|
|
|||
|
$
|
3,276
|
|
|
$
|
3,761
|
|
|
$
|
3,532
|
|
|
For the fiscal years ended October 31
|
|||||||
|
2017
|
|
2016
|
|
2015
|
|||
U.S. federal statutory income tax rate from continuing operations
|
35.0
|
%
|
|
35.0
|
%
|
|
35.0
|
%
|
State income taxes from continuing operations, net of federal tax benefit
|
1.4
|
%
|
|
1.1
|
%
|
|
(6.1
|
)%
|
Lower rates in other jurisdictions, net
|
(13.2
|
)%
|
|
(9.3
|
)%
|
|
(1.2
|
)%
|
Research and development (“R&D”) credit
|
(0.5
|
)%
|
|
(2.4
|
)%
|
|
(0.2
|
)%
|
Valuation allowances
|
(1.9
|
)%
|
|
(1.2
|
)%
|
|
(48.0
|
)%
|
Uncertain tax positions
|
0.4
|
%
|
|
11.7
|
%
|
|
11.1
|
%
|
Indemnification related items
|
(0.3
|
)%
|
|
(4.1
|
)%
|
|
—
|
%
|
Other, net
|
2.0
|
%
|
|
(1.7
|
)%
|
|
4.1
|
%
|
|
22.9
|
%
|
|
29.1
|
%
|
|
(5.3
|
)%
|
|
As of October 31
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
|
In millions
|
||||||||||
Balance at beginning of year
|
$
|
10,858
|
|
|
$
|
6,546
|
|
|
$
|
1,545
|
|
Increases:
|
|
|
|
|
|
|
|
||||
For current year’s tax positions
|
52
|
|
|
468
|
|
|
2,102
|
|
|||
For prior years’ tax positions
|
85
|
|
|
4,004
|
|
|
5,208
|
|
|||
Decreases:
|
|
|
|
|
|
|
|
||||
For prior years’ tax positions
|
(181
|
)
|
|
(62
|
)
|
|
(2,063
|
)
|
|||
Statute of limitations expirations
|
(1
|
)
|
|
—
|
|
|
(46
|
)
|
|||
Settlements with taxing authorities
|
(5
|
)
|
|
(98
|
)
|
|
(200
|
)
|
|||
Balance at end of year
|
$
|
10,808
|
|
|
$
|
10,858
|
|
|
$
|
6,546
|
|
|
As of October 31
|
||||||||||||||
|
2017
|
|
2016
|
||||||||||||
|
Deferred
Tax Assets |
|
Deferred
Tax Liabilities |
|
Deferred
Tax Assets |
|
Deferred
Tax Liabilities |
||||||||
|
In millions
|
||||||||||||||
Loss and credit carryforwards
|
$
|
9,914
|
|
|
$
|
—
|
|
|
$
|
8,725
|
|
|
$
|
—
|
|
Unremitted earnings of foreign subsidiaries
|
—
|
|
|
(5,554
|
)
|
|
—
|
|
|
(5,179
|
)
|
||||
Inventory valuation
|
7
|
|
|
(34
|
)
|
|
—
|
|
|
(12
|
)
|
||||
Intercompany transactions—excluding inventory
|
1,901
|
|
|
—
|
|
|
2,560
|
|
|
—
|
|
||||
Fixed assets
|
256
|
|
|
(8
|
)
|
|
274
|
|
|
—
|
|
||||
Warranty
|
219
|
|
|
—
|
|
|
248
|
|
|
—
|
|
||||
Employee and retiree benefits
|
519
|
|
|
(3
|
)
|
|
592
|
|
|
—
|
|
||||
Accounts receivable allowance
|
103
|
|
|
—
|
|
|
117
|
|
|
—
|
|
||||
Intangible assets
|
16
|
|
|
(209
|
)
|
|
23
|
|
|
(213
|
)
|
||||
Restructuring and other
|
13
|
|
|
—
|
|
|
17
|
|
|
—
|
|
||||
Deferred revenue
|
231
|
|
|
—
|
|
|
206
|
|
|
—
|
|
||||
Other
|
372
|
|
|
(4
|
)
|
|
399
|
|
|
(99
|
)
|
||||
Gross deferred tax assets and liabilities
|
13,551
|
|
|
(5,812
|
)
|
|
13,161
|
|
|
(5,503
|
)
|
||||
Valuation allowances
|
(8,807
|
)
|
|
—
|
|
|
(8,520
|
)
|
|
—
|
|
||||
Net deferred tax assets and liabilities
|
$
|
4,744
|
|
|
$
|
(5,812
|
)
|
|
$
|
4,641
|
|
|
$
|
(5,503
|
)
|
|
As of October 31
|
||||||
|
2017
|
|
2016
|
||||
|
In millions
|
||||||
Long-term deferred tax assets
|
$
|
342
|
|
|
$
|
254
|
|
Long-term deferred tax liabilities
|
(1,410
|
)
|
|
(1,116
|
)
|
||
Total
|
$
|
(1,068
|
)
|
|
$
|
(862
|
)
|
|
Carryforward
|
|
Valuation
Allowance |
|
Initial
Year of Expiration |
||||
|
In millions
|
||||||||
U.S. foreign tax credits
|
$
|
1,050
|
|
|
$
|
—
|
|
|
2022
|
U.S. R&D and other credits
|
920
|
|
|
—
|
|
|
2018
|
||
Tax credits in state and foreign jurisdictions
|
288
|
|
|
(115
|
)
|
|
2021
|
||
Balance at end of year
|
$
|
2,258
|
|
|
$
|
(115
|
)
|
|
|
|
As of October 31
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
|
In millions
|
||||||||||
Balance at beginning of year
|
$
|
8,520
|
|
|
$
|
7,114
|
|
|
$
|
8,231
|
|
Income tax expense (benefit)
|
297
|
|
|
1,421
|
|
|
(2,183
|
)
|
|||
Other comprehensive income, currency translation and charges to other accounts
|
(10
|
)
|
|
(15
|
)
|
|
1,066
|
|
|||
Balance at end of year
|
$
|
8,807
|
|
|
$
|
8,520
|
|
|
$
|
7,114
|
|
|
As of October 31
|
||||||
|
2017
|
|
2016
|
||||
|
In millions
|
||||||
Accounts receivable
|
$
|
4,515
|
|
|
$
|
4,221
|
|
Allowance for doubtful accounts
|
(101
|
)
|
|
(107
|
)
|
||
|
$
|
4,414
|
|
|
$
|
4,114
|
|
|
As of October 31
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
|
In millions
|
||||||||||
Balance at beginning of year
|
$
|
107
|
|
|
$
|
80
|
|
|
$
|
106
|
|
Provision for doubtful accounts
|
30
|
|
|
65
|
|
|
19
|
|
|||
Deductions, net of recoveries
|
(36
|
)
|
|
(38
|
)
|
|
(45
|
)
|
|||
Balance at end of year
|
$
|
101
|
|
|
$
|
107
|
|
|
$
|
80
|
|
|
As of October 31
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
|
In millions
|
||||||||||
Balance at beginning of year
(1)
|
$
|
149
|
|
|
$
|
93
|
|
|
$
|
271
|
|
Trade receivables sold
|
9,553
|
|
|
8,222
|
|
|
6,512
|
|
|||
Cash receipts
|
(9,562
|
)
|
|
(8,160
|
)
|
|
(6,671
|
)
|
|||
Foreign currency and other
|
7
|
|
|
(6
|
)
|
|
(19
|
)
|
|||
Balance at end of year
(1)
|
$
|
147
|
|
|
$
|
149
|
|
|
$
|
93
|
|
|
As of October 31
|
||||||
|
2017
|
|
2016
|
||||
|
In millions
|
||||||
Finished goods
|
$
|
3,857
|
|
|
$
|
3,103
|
|
Purchased parts and fabricated assemblies
|
1,929
|
|
|
1,381
|
|
||
|
$
|
5,786
|
|
|
$
|
4,484
|
|
|
As of October 31
|
||||||
|
2017
|
|
2016
|
||||
|
In millions
|
||||||
Value-added taxes receivable
|
$
|
857
|
|
|
$
|
795
|
|
Available-for-sale investments
(1)
|
1,149
|
|
|
—
|
|
||
Supplier and other receivables
|
1,891
|
|
|
1,700
|
|
||
Prepaid and other current assets
|
1,224
|
|
|
1,087
|
|
||
|
$
|
5,121
|
|
|
$
|
3,582
|
|
(1)
|
See Note 9, “Fair Value” and Note 10, “Financial Instruments” for detailed information.
|
|
As of October 31
|
||||||
|
2017
|
|
2016
|
||||
|
In millions
|
||||||
Land, buildings and leasehold improvements
|
$
|
2,082
|
|
|
$
|
2,421
|
|
Machinery and equipment, including equipment held for lease
|
3,876
|
|
|
3,663
|
|
||
|
5,958
|
|
|
6,084
|
|
||
Accumulated depreciation
|
(4,080
|
)
|
|
(4,348
|
)
|
||
|
$
|
1,878
|
|
|
$
|
1,736
|
|
|
As of October 31
|
||||||
|
2017
|
|
2016
|
||||
|
In millions
|
||||||
Tax indemnifications receivable
(1)
|
$
|
1,695
|
|
|
$
|
1,591
|
|
Deferred tax assets
|
342
|
|
|
254
|
|
||
Other
(2)
|
1,058
|
|
|
1,316
|
|
||
|
$
|
3,095
|
|
|
$
|
3,161
|
|
(1)
|
In connection with the TMA discussed under Note 6, “Taxes on Earnings”.
|
(2)
|
Includes available-for-sale investments of
$61
million and
$55
million at October 31, 2017 and 2016, respectively.
|
|
As of October 31
|
||||||
|
2017
|
|
2016
|
||||
|
In millions
|
||||||
Other accrued taxes
|
$
|
895
|
|
|
$
|
755
|
|
Warranty
|
660
|
|
|
729
|
|
||
Sales and marketing programs
|
2,441
|
|
|
2,312
|
|
||
Other
|
1,945
|
|
|
1,922
|
|
||
|
$
|
5,941
|
|
|
$
|
5,718
|
|
|
As of October 31
|
||||||
|
2017
|
|
2016
|
||||
|
In millions
|
||||||
Pension, post-retirement, and post-employment liabilities
|
$
|
1,999
|
|
|
$
|
2,705
|
|
Deferred tax liability
|
1,410
|
|
|
1,116
|
|
||
Tax liability
|
2,005
|
|
|
1,910
|
|
||
Deferred revenue
|
921
|
|
|
865
|
|
||
Other
|
827
|
|
|
737
|
|
||
|
$
|
7,162
|
|
|
$
|
7,333
|
|
|
For the fiscal years ended October 31
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
|
In millions
|
||||||||||
Interest expense on borrowings
|
$
|
(309
|
)
|
|
$
|
(273
|
)
|
|
$
|
(167
|
)
|
Tax indemnifications
(1)
|
47
|
|
|
472
|
|
|
—
|
|
|||
Foreign exchange loss
|
(70
|
)
|
|
(76
|
)
|
|
(304
|
)
|
|||
Other, net
|
89
|
|
|
89
|
|
|
83
|
|
|||
|
$
|
(243
|
)
|
|
$
|
212
|
|
|
$
|
(388
|
)
|
(1)
|
In connection with the TMA discussed under Note 6, “Taxes on Earnings”.
|
|
Personal
Systems |
|
Printing
|
|
Total
|
||||||
|
In millions
|
||||||||||
Balance at October 31, 2015
(1)
|
$
|
2,588
|
|
|
$
|
3,092
|
|
|
$
|
5,680
|
|
Acquisitions
|
5
|
|
|
—
|
|
|
5
|
|
|||
Dispositions
(2)
|
—
|
|
|
(63
|
)
|
|
(63
|
)
|
|||
Balance at October 31, 2016
(1)
|
2,593
|
|
|
3,029
|
|
|
5,622
|
|
|||
Acquisitions
|
—
|
|
|
—
|
|
|
—
|
|
|||
Dispositions
|
—
|
|
|
—
|
|
|
—
|
|
|||
Balance at October 31, 2017
(1)
|
$
|
2,593
|
|
|
$
|
3,029
|
|
|
$
|
5,622
|
|
(1)
|
Goodwill is net of accumulated impairment losses of
$0.8 billion
related to Corporate Investments.
|
(2)
|
Divestiture of technology assets, including licensing and distribution rights, for certain software offerings to Open Text Corporation. See Note 18, “Divestitures”.
|
|
As of October 31, 2017
|
|
As of October 31, 2016
|
||||||||||||||||||||||||||||
|
Fair Value
Measured Using
|
|
|
|
Fair Value
Measured Using
|
|
|
||||||||||||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||||||||||
|
In millions
|
||||||||||||||||||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Cash Equivalents:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Corporate debt
|
$
|
—
|
|
|
$
|
1,390
|
|
|
$
|
—
|
|
|
$
|
1,390
|
|
|
$
|
—
|
|
|
$
|
2,092
|
|
|
$
|
—
|
|
|
$
|
2,092
|
|
Financial institution instruments
|
—
|
|
|
6
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Government debt
(1)
|
3,902
|
|
|
100
|
|
|
—
|
|
|
4,002
|
|
|
2,568
|
|
|
—
|
|
|
—
|
|
|
2,568
|
|
||||||||
Available-for-Sale Investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Corporate debt
|
—
|
|
|
629
|
|
|
—
|
|
|
629
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Financial institution instruments
|
—
|
|
|
78
|
|
|
—
|
|
|
78
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
2
|
|
||||||||
Government debt
(1)
|
—
|
|
|
442
|
|
|
—
|
|
|
442
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Mutual funds
|
49
|
|
|
—
|
|
|
—
|
|
|
49
|
|
|
44
|
|
|
—
|
|
|
—
|
|
|
44
|
|
||||||||
Marketable equity securities
|
6
|
|
|
6
|
|
|
—
|
|
|
12
|
|
|
5
|
|
|
4
|
|
|
—
|
|
|
9
|
|
||||||||
Derivative Instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest rate contracts
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
48
|
|
|
—
|
|
|
48
|
|
||||||||
Foreign currency contracts
|
—
|
|
|
110
|
|
|
10
|
|
|
120
|
|
|
—
|
|
|
266
|
|
|
11
|
|
|
277
|
|
||||||||
Other derivatives
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Total Assets
|
$
|
3,957
|
|
|
$
|
2,762
|
|
|
$
|
10
|
|
|
$
|
6,729
|
|
|
$
|
2,617
|
|
|
$
|
2,412
|
|
|
$
|
11
|
|
|
$
|
5,040
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Derivative Instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest rate contracts
|
$
|
—
|
|
|
$
|
12
|
|
|
$
|
—
|
|
|
$
|
12
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Foreign currency contracts
|
—
|
|
|
358
|
|
|
2
|
|
|
360
|
|
|
—
|
|
|
94
|
|
|
1
|
|
|
95
|
|
||||||||
Other derivatives
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
2
|
|
||||||||
Total Liabilities
|
$
|
—
|
|
|
$
|
370
|
|
|
$
|
2
|
|
|
$
|
372
|
|
|
$
|
—
|
|
|
$
|
96
|
|
|
$
|
1
|
|
|
$
|
97
|
|
|
As of October 31, 2017
|
|
As of October 31, 2016
|
||||||||||||||||||||||||||||
|
Cost
|
|
Gross
Unrealized
Gain
|
|
Gross
Unrealized
Loss
|
|
Fair
Value
|
|
Cost
|
|
Gross
Unrealized
Gain
|
|
Gross
Unrealized
Loss
|
|
Fair
Value
|
||||||||||||||||
|
In millions
|
||||||||||||||||||||||||||||||
Cash Equivalents:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Corporate debt
|
$
|
1,390
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,390
|
|
|
$
|
2,092
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,092
|
|
Financial institution instruments
|
6
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Government debt
|
4,002
|
|
|
—
|
|
|
—
|
|
|
4,002
|
|
|
2,568
|
|
|
—
|
|
|
—
|
|
|
2,568
|
|
||||||||
Total cash equivalents
|
5,398
|
|
|
—
|
|
|
—
|
|
|
5,398
|
|
|
4,660
|
|
|
—
|
|
|
—
|
|
|
4,660
|
|
||||||||
Available-for-Sale Investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Corporate debt
(1)
|
629
|
|
|
—
|
|
|
—
|
|
|
629
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Financial institution instruments
(1)
|
78
|
|
|
—
|
|
|
—
|
|
|
78
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
2
|
|
||||||||
Government debt
(1)
|
443
|
|
|
—
|
|
|
(1
|
)
|
|
442
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Marketable equity securities
|
5
|
|
|
7
|
|
|
—
|
|
|
12
|
|
|
6
|
|
|
3
|
|
|
—
|
|
|
9
|
|
||||||||
Mutual funds
|
39
|
|
|
10
|
|
|
—
|
|
|
49
|
|
|
35
|
|
|
9
|
|
|
—
|
|
|
44
|
|
||||||||
Total available-for-sale investments
|
1,194
|
|
|
17
|
|
|
(1
|
)
|
|
1,210
|
|
|
43
|
|
|
12
|
|
|
—
|
|
|
55
|
|
||||||||
Total cash equivalents and available-for-sale investments
|
$
|
6,592
|
|
|
$
|
17
|
|
|
$
|
(1
|
)
|
|
$
|
6,608
|
|
|
$
|
4,703
|
|
|
$
|
12
|
|
|
$
|
—
|
|
|
$
|
4,715
|
|
(1)
|
HP classifies its marketable debt securities as available-for-sale investments within Other current assets on the Consolidated Balance Sheets, including those with maturity dates beyond one year, based on their highly liquid nature and availability for use in current operations.
|
|
As of October 31, 2017
|
||||||
|
Amortized
Cost
|
|
Fair Value
|
||||
|
In millions
|
||||||
Due in one year or less
|
$
|
538
|
|
|
$
|
538
|
|
Due in one to five years
|
612
|
|
|
611
|
|
||
|
$
|
1,150
|
|
|
$
|
1,149
|
|
|
As of October 31, 2017
|
|
As of October 31, 2016
|
||||||||||||||||||||||||||||||||||||
|
Outstanding
Gross
Notional
|
|
Other
Current
Assets
|
|
Other
Non-Current
Assets
|
|
Other
Accrued
Liabilities
|
|
Other
Non-Current
Liabilities
|
|
Outstanding
Gross
Notional
|
|
Other
Current
Assets
|
|
Other
Non-Current
Assets
|
|
Other
Accrued
Liabilities
|
|
Other
Non-Current
Liabilities
|
||||||||||||||||||||
|
In millions
|
||||||||||||||||||||||||||||||||||||||
Derivatives designated as hedging instruments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Fair value hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest rate contracts
|
$
|
2,500
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
12
|
|
|
$
|
2,000
|
|
|
$
|
—
|
|
|
$
|
48
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Cash flow hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Foreign currency contracts
|
16,149
|
|
|
92
|
|
|
12
|
|
|
245
|
|
|
100
|
|
|
11,852
|
|
|
203
|
|
|
63
|
|
|
52
|
|
|
12
|
|
||||||||||
Total derivatives designated as hedging instruments
|
18,649
|
|
|
92
|
|
|
12
|
|
|
245
|
|
|
112
|
|
|
13,852
|
|
|
203
|
|
|
111
|
|
|
52
|
|
|
12
|
|
||||||||||
Derivatives not designated as hedging instruments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign currency contracts
|
5,801
|
|
|
16
|
|
|
—
|
|
|
15
|
|
|
—
|
|
|
3,934
|
|
|
11
|
|
|
—
|
|
|
31
|
|
|
—
|
|
||||||||||
Other derivatives
|
123
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
150
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
||||||||||
Total derivatives not designated as hedging instruments
|
5,924
|
|
|
17
|
|
|
—
|
|
|
15
|
|
|
—
|
|
|
4,084
|
|
|
11
|
|
|
—
|
|
|
33
|
|
|
—
|
|
||||||||||
Total derivatives
|
$
|
24,573
|
|
|
$
|
109
|
|
|
$
|
12
|
|
|
$
|
260
|
|
|
$
|
112
|
|
|
$
|
17,936
|
|
|
$
|
214
|
|
|
$
|
111
|
|
|
$
|
85
|
|
|
$
|
12
|
|
|
In the Consolidated Balance Sheets
|
|
|
|
|
||||||||||||||||||||
|
(i)
|
|
(ii)
|
|
(iii) = (i)–(ii)
|
|
(iv)
|
|
(v)
|
|
|
|
(vi) = (iii)–(iv)–(v)
|
||||||||||||
|
Gross Amount
Recognized
|
|
Gross Amount
Offset
|
|
Net Amount
Presented
|
|
Gross Amounts
Not Offset
|
|
|
|
|
||||||||||||||
|
|
|
|
Derivatives
|
|
Financial
Collateral
|
|
|
|
Net Amount
|
|||||||||||||||
|
In millions
|
||||||||||||||||||||||||
As of October 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Derivative assets
|
$
|
121
|
|
|
$
|
—
|
|
|
$
|
121
|
|
|
$
|
108
|
|
|
$
|
4
|
|
|
(1)
|
|
$
|
9
|
|
Derivative liabilities
|
$
|
372
|
|
|
$
|
—
|
|
|
$
|
372
|
|
|
$
|
108
|
|
|
$
|
219
|
|
|
(2)
|
|
$
|
45
|
|
As of October 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Derivative assets
|
$
|
325
|
|
|
$
|
—
|
|
|
$
|
325
|
|
|
$
|
88
|
|
|
$
|
189
|
|
|
(1)
|
|
$
|
48
|
|
Derivative liabilities
|
$
|
97
|
|
|
$
|
—
|
|
|
$
|
97
|
|
|
$
|
88
|
|
|
$
|
2
|
|
|
(2)
|
|
$
|
7
|
|
(1)
|
Represents the cash collateral posted by counterparties as of the respective reporting date for HP’s asset position, net of derivative amounts that could be offset, as of, generally,
two
business days prior to the respective reporting date.
|
(2)
|
Represents the collateral posted by HP through re-use of counterparty cash collateral as of the respective reporting date for HP’s liability position, net of derivative amounts that could be offset, as of, generally,
two
business days prior to the respective reporting date.
|
|
|
(Loss) Gain Recognized in Income on Derivative Instruments and Related Hedged Items
|
||||||||||||||||||||||||||||
Derivative Instrument
|
|
Location
|
|
2017
|
|
2016
|
|
2015
|
|
Hedged Item
|
|
Location
|
|
2017
|
|
2016
|
|
2015
|
||||||||||||
|
|
|
|
In millions
|
|
|
|
|
|
In millions
|
||||||||||||||||||||
Interest rate contracts
|
|
Interest and other, net
|
|
$
|
(60
|
)
|
|
$
|
10
|
|
|
$
|
(12
|
)
|
|
Fixed-rate debt
|
|
Interest and other, net
|
|
$
|
60
|
|
|
$
|
(10
|
)
|
|
$
|
12
|
|
(Loss) Gain Recognized in OCI
on Derivatives (Effective Portion) |
(Loss) Gain Reclassified from Accumulated OCI
Into Earnings (Effective Portion) |
||||||||||||||||||||||||
|
2017
|
|
2016
|
|
2015
|
|
|
|
2017
|
|
2016
|
|
2015
|
||||||||||||
|
In millions
|
|
|
|
In millions
|
||||||||||||||||||||
Cash flow hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Foreign currency contracts
|
$
|
(651
|
)
|
|
$
|
199
|
|
|
$
|
610
|
|
|
Net revenue
|
|
$
|
(156
|
)
|
|
$
|
20
|
|
|
$
|
995
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue
|
|
(35
|
)
|
|
(84
|
)
|
|
(156
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
Other operating expenses
|
|
1
|
|
|
1
|
|
|
(3
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
Interest and other, net
|
|
(9
|
)
|
|
—
|
|
|
(4
|
)
|
||||||
Continuing Operations
|
(651
|
)
|
|
199
|
|
|
610
|
|
|
Loss (earnings) from continuing operations
|
|
(199
|
)
|
|
(63
|
)
|
|
832
|
|
||||||
Discontinued Operations
|
—
|
|
|
—
|
|
|
481
|
|
|
Earnings from discontinued operations
|
|
—
|
|
|
—
|
|
|
480
|
|
||||||
Total
|
$
|
(651
|
)
|
|
$
|
199
|
|
|
$
|
1,091
|
|
|
Total
|
|
$
|
(199
|
)
|
|
$
|
(63
|
)
|
|
$
|
1,312
|
|
Net investment hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Foreign currency contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Continuing Operations
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Discontinued Operations
|
—
|
|
|
—
|
|
|
228
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
228
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) Gain Recognized in Income on Derivatives
|
||||||||||||
|
Location
|
|
2017
|
|
2016
|
|
2015
|
||||||
|
|
|
In millions
|
||||||||||
Foreign currency contracts
|
Interest and other, net
|
|
$
|
(32
|
)
|
|
$
|
(34
|
)
|
|
$
|
293
|
|
Other derivatives
|
Interest and other, net
|
|
3
|
|
|
(6
|
)
|
|
(1
|
)
|
|||
Total
|
|
|
$
|
(29
|
)
|
|
$
|
(40
|
)
|
|
$
|
292
|
|
|
As of October 31
|
||||||||||||
|
2017
|
|
2016
|
||||||||||
|
Amount
Outstanding
|
|
Weighted-Average
Interest Rate
|
|
Amount
Outstanding
|
|
Weighted-Average
Interest Rate
|
||||||
|
In millions
|
|
|
|
In millions
|
|
|
||||||
Commercial paper
|
$
|
943
|
|
|
1.8
|
%
|
|
$
|
—
|
|
|
—
|
%
|
Current portion of long-term debt
|
96
|
|
|
3.5
|
%
|
|
51
|
|
|
4.1
|
%
|
||
Notes payable to banks, lines of credit and other
|
33
|
|
|
1.5
|
%
|
|
27
|
|
|
2.0
|
%
|
||
|
$
|
1,072
|
|
|
|
|
|
$
|
78
|
|
|
|
|
|
As of October 31
|
||||||
|
2017
|
|
2016
|
||||
|
In millions
|
||||||
U.S. Dollar Global Notes
(1)
|
|
|
|
|
|
||
2009 Shelf Registration Statement:
|
|
|
|
|
|
||
$1,350 issued at discount to par at a price of 99.827% in December 2010 at 3.75%, due December 2020
|
$
|
648
|
|
|
$
|
648
|
|
$1,250 issued at discount to par at a price of 99.799% in May 2011 at 4.3%, due June 2021
|
1,249
|
|
|
1,248
|
|
||
$1,000 issued at discount to par at a price of 99.816% in September 2011 at 4.375%, due September 2021
|
999
|
|
|
999
|
|
||
$1,500 issued at discount to par at a price of 99.707% in December 2011 at 4.65%, due December 2021
|
1,498
|
|
|
1,498
|
|
||
$500 issued at discount to par at a price of 99.771% in March 2012 at 4.05%, due September 2022
|
499
|
|
|
499
|
|
||
$1,200 issued at discount to par at a price of 99.863% in September 2011 at 6.0%, due September 2041
|
1,199
|
|
|
1,199
|
|
||
2012 Shelf Registration Statement:
|
|
|
|
|
|
||
$750 issued at par in January 2014 at three-month USD LIBOR plus 0.94%, due January 2019
|
102
|
|
|
102
|
|
||
$1,250 issued at discount to par at a price of 99.954% in January 2014 at 2.75%, due January 2019
|
300
|
|
|
300
|
|
||
|
6,494
|
|
|
6,493
|
|
||
Other, including capital lease obligations, at 0.51%-8.49%, due in calendar years 2018-2025
|
360
|
|
|
244
|
|
||
Fair value adjustment related to hedged debt
|
8
|
|
|
72
|
|
||
Less: Unamortized debt issuance cost
(2)
|
(19
|
)
|
|
(23
|
)
|
||
Less: current portion of long-term debt
|
(96
|
)
|
|
(51
|
)
|
||
Total long-term debt
|
$
|
6,747
|
|
|
$
|
6,735
|
|
(1)
|
HP may redeem some or all of the fixed-rate U.S. Dollar Global Notes at any time in accordance with the terms thereof. The U.S. Dollar Global Notes are senior unsecured debt.
|
Fiscal year
|
In millions
|
||
2018
|
$
|
1,072
|
|
2019
|
505
|
|
|
2020
|
77
|
|
|
2021
|
2,949
|
|
|
2022
|
2,014
|
|
|
Thereafter
|
1,219
|
|
|
Total
|
$
|
7,836
|
|
|
For the fiscal years ended
October 31
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
|
In millions
|
||||||||||
Tax effect on change in unrealized components of available-for-sale securities:
|
|
|
|
|
|
|
|
|
|||
Tax (provision) benefit on unrealized gains (losses) arising during the period
|
$
|
(1
|
)
|
|
$
|
(3
|
)
|
|
$
|
2
|
|
|
|
|
|
|
|
|
|
|
|||
Tax effect on change in unrealized components of cash flow hedges:
|
|
|
|
|
|
|
|
||||
Tax benefit (provision) on unrealized (losses) gains arising during the period
|
42
|
|
|
32
|
|
|
(294
|
)
|
|||
Tax (benefit) provision benefit on losses (gains) reclassified into earnings
|
(16
|
)
|
|
(1
|
)
|
|
368
|
|
|||
|
26
|
|
|
31
|
|
|
74
|
|
|||
Tax effect on change in unrealized components of defined benefit plans:
|
|
|
|
|
|
|
|
||||
Tax (provision) benefit on gains (losses) arising during the period
|
(140
|
)
|
|
242
|
|
|
5
|
|
|||
Tax provision on amortization of actuarial loss and prior service benefit
|
(21
|
)
|
|
(12
|
)
|
|
(18
|
)
|
|||
Tax benefit (provision) on curtailments, settlements and other
|
72
|
|
|
(213
|
)
|
|
24
|
|
|||
|
(89
|
)
|
|
17
|
|
|
11
|
|
|||
Tax provision on change in cumulative translation adjustment
|
—
|
|
|
—
|
|
|
(73
|
)
|
|||
Tax (provision) benefit on other comprehensive income (loss)
|
$
|
(64
|
)
|
|
$
|
45
|
|
|
$
|
14
|
|
|
For the fiscal years ended
October 31 |
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
|
In millions
|
||||||||||
Other comprehensive income (loss), net of taxes:
|
|
|
|
|
|
|
|
|
|||
Change in unrealized components of available-for-sale securities:
|
|
|
|
|
|
|
|
|
|||
Unrealized gains (losses) arising during the period
|
$
|
3
|
|
|
$
|
(2
|
)
|
|
$
|
(15
|
)
|
|
|
|
|
|
|
|
|
|
|||
Change in unrealized components of cash flow hedges:
|
|
|
|
|
|
|
|
|
|||
Unrealized (losses) gains arising during the period
|
(609
|
)
|
|
231
|
|
|
797
|
|
|||
Losses (gains) reclassified into earnings
(1)
|
183
|
|
|
62
|
|
|
(944
|
)
|
|||
|
(426
|
)
|
|
293
|
|
|
(147
|
)
|
|||
Change in unrealized components of defined benefit plans:
|
|
|
|
|
|
|
|
|
|||
Gains (Losses) arising during the period
|
315
|
|
|
(517
|
)
|
|
(543
|
)
|
|||
Amortization of actuarial loss and prior service benefit
(2)
|
53
|
|
|
39
|
|
|
425
|
|
|||
Curtailments, settlements and other
|
75
|
|
|
(30
|
)
|
|
139
|
|
|||
|
443
|
|
|
(508
|
)
|
|
21
|
|
|||
Change in cumulative translation adjustment
|
—
|
|
|
—
|
|
|
(280
|
)
|
|||
Other comprehensive income (loss), net of taxes
|
$
|
20
|
|
|
$
|
(217
|
)
|
|
$
|
(421
|
)
|
(1)
|
Reclassification of pre-tax losses (gains) on cash flow hedges into the Consolidated Statements of Earnings was as follows:
|
|
For the fiscal years ended
October 31
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
|
In millions
|
||||||||||
Net revenue
|
$
|
156
|
|
|
$
|
(20
|
)
|
|
$
|
(995
|
)
|
Cost of revenue
|
35
|
|
|
84
|
|
|
156
|
|
|||
Other operating expenses
|
(1
|
)
|
|
(1
|
)
|
|
3
|
|
|||
Interest and other, net
|
9
|
|
|
—
|
|
|
4
|
|
|||
Loss (earnings) from continuing operations
|
199
|
|
|
63
|
|
|
(832
|
)
|
|||
Earnings from discontinued operations
|
—
|
|
|
—
|
|
|
(480
|
)
|
|||
Total
|
$
|
199
|
|
|
$
|
63
|
|
|
$
|
(1,312
|
)
|
|
Net unrealized
gain on available-for-sale securities |
|
Net unrealized
gain (loss) on cash flow hedges |
|
Unrealized
components of defined benefit plans |
|
Accumulated
other comprehensive loss |
||||||||
|
In millions
|
||||||||||||||
Balance at beginning of period
|
$
|
9
|
|
|
$
|
186
|
|
|
$
|
(1,633
|
)
|
|
$
|
(1,438
|
)
|
Other comprehensive income (loss) before reclassifications
|
3
|
|
|
(609
|
)
|
|
390
|
|
|
(216
|
)
|
||||
Reclassifications of loss into earnings
|
—
|
|
|
183
|
|
|
53
|
|
|
236
|
|
||||
Balance at end of period
|
$
|
12
|
|
|
$
|
(240
|
)
|
|
$
|
(1,190
|
)
|
|
$
|
(1,418
|
)
|
|
For the fiscal years ended
October 31
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
|
In millions, except per share amounts
|
||||||||||
Numerator:
|
|
|
|
|
|
|
|
|
|||
Net earnings from continuing operations
|
$
|
2,526
|
|
|
$
|
2,666
|
|
|
$
|
3,718
|
|
Net (loss) earnings from discontinued operations
|
—
|
|
|
(170
|
)
|
|
836
|
|
|||
Net earnings
|
$
|
2,526
|
|
|
$
|
2,496
|
|
|
$
|
4,554
|
|
Denominator:
|
|
|
|
|
|
|
|
|
|||
Weighted-average shares used to compute basic net EPS
|
1,688
|
|
|
1,730
|
|
|
1,814
|
|
|||
Dilutive effect of employee stock plans
|
14
|
|
|
13
|
|
|
22
|
|
|||
Weighted-average shares used to compute diluted net EPS
|
1,702
|
|
|
1,743
|
|
|
1,836
|
|
|||
Basic net earnings per share:
|
|
|
|
|
|
|
|
|
|||
Continuing operations
|
$
|
1.50
|
|
|
$
|
1.54
|
|
|
$
|
2.05
|
|
Discontinued operations
|
—
|
|
|
(0.10
|
)
|
|
0.46
|
|
|||
Basic net earnings per share
|
$
|
1.50
|
|
|
$
|
1.44
|
|
|
$
|
2.51
|
|
Diluted net earnings per share:
|
|
|
|
|
|
|
|
|
|||
Continuing operations
|
$
|
1.48
|
|
|
$
|
1.53
|
|
|
$
|
2.02
|
|
Discontinued operations
|
—
|
|
|
(0.10
|
)
|
|
0.46
|
|
|||
Diluted net earnings per share
|
$
|
1.48
|
|
|
$
|
1.43
|
|
|
$
|
2.48
|
|
Anti-dilutive weighted-average options
(1)
|
1
|
|
|
13
|
|
|
23
|
|
(1)
|
HP excludes stock options and restricted stock units where the assumed proceeds exceed the average market price from the calculation of diluted net EPS, because their effect would be anti-dilutive. The assumed proceeds of a stock option include the sum of its exercise price, and average unrecognized compensation cost. The assumed proceeds of a restricted stock unit represent unrecognized compensation cost.
|
|
As of October 31
|
||||||
|
2017
|
|
2016
|
||||
|
In millions
|
||||||
Balance at beginning of year
|
$
|
980
|
|
|
$
|
1,184
|
|
Accruals for warranties issued
|
925
|
|
|
966
|
|
||
Adjustments related to pre-existing warranties (including changes in estimates)
|
(8
|
)
|
|
(23
|
)
|
||
Settlements made (in cash or in kind)
|
(999
|
)
|
|
(1,147
|
)
|
||
Balance at end of year
|
$
|
898
|
|
|
$
|
980
|
|
Fiscal year
|
In millions
|
||
2018
|
$
|
288
|
|
2019
|
213
|
|
|
2020
|
147
|
|
|
2021
|
99
|
|
|
2022
|
83
|
|
|
Thereafter
|
401
|
|
|
Less: Sublease rental income
|
(174
|
)
|
|
Total
|
$
|
1,057
|
|
Fiscal year
|
In millions
|
||
2018
|
$
|
728
|
|
2019
|
289
|
|
|
2020
|
116
|
|
|
2021
|
52
|
|
|
2022
|
21
|
|
|
Thereafter
|
2
|
|
|
Total
|
$
|
1,208
|
|
|
For the fiscal years ended October 31
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
|
In millions
|
||||||||||
Net revenue
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
51,892
|
|
Cost of revenue
(1)
|
—
|
|
|
—
|
|
|
37,072
|
|
|||
Expenses
(2)
|
—
|
|
|
201
|
|
|
13,269
|
|
|||
Interest and other, net
(3)(4)
|
(47
|
)
|
|
(208
|
)
|
|
351
|
|
|||
Earnings from discontinued operations before taxes
|
$
|
47
|
|
|
$
|
7
|
|
|
$
|
1,200
|
|
Provision for taxes
(4)
|
(47
|
)
|
|
(177
|
)
|
|
(364
|
)
|
|||
Net (loss) earnings from discontinued operations
|
$
|
—
|
|
|
$
|
(170
|
)
|
|
$
|
836
|
|
(1)
|
Cost of products, cost of services and financing interest.
|
(2)
|
Expenses for fiscal year 2016 were primarily related to separation costs.
|
(3)
|
In fiscal year 2015, allocation of interest to Hewlett Packard Enterprise was based on using the average effective interest rate of the debt assumed by Hewlett Packard Enterprise and the debt repaid as part of the Separation. In fiscal year 2015, Interest and other, net also includes loss from the early extinguishment of debt in connection with the review of HP’s capital structure and the Separation.
|
(4)
|
In connection with the TMA, Interest and other, net for fiscal year 2017 and fiscal year 2016 includes changes in the tax indemnifications amounts of
$47
million and
$208
million, respectively. Provision for taxes for fiscal year 2017 and fiscal year 2016 includes the tax impact relating to the above described changes of
$47
million and
$201
million, respectively. For more information on tax indemnifications and the TMA, see Note 6, “Taxes on Earnings”.
|
c
|
For the fiscal year ended October 31, 2015
|
||
|
In millions
|
||
Depreciation and amortization
|
$
|
3,657
|
|
Purchases of property, plant and equipment
|
$
|
3,020
|
|
|
For the three-month fiscal periods
ended in fiscal year 2017 |
||||||||||||||
|
January 31
|
|
April 30
|
|
July 31
|
|
October 31
|
||||||||
Net revenue
|
$
|
12,684
|
|
|
$
|
12,385
|
|
|
$
|
13,060
|
|
|
$
|
13,927
|
|
Cost of revenue
|
10,436
|
|
|
10,002
|
|
|
10,633
|
|
|
11,407
|
|
||||
Research and development
|
296
|
|
|
314
|
|
|
289
|
|
|
291
|
|
||||
Selling, general and administrative
|
1,017
|
|
|
1,087
|
|
|
1,096
|
|
|
1,176
|
|
||||
Restructuring and other charges
|
63
|
|
|
140
|
|
|
46
|
|
|
113
|
|
||||
Acquisition-related charges
|
16
|
|
|
20
|
|
|
40
|
|
|
49
|
|
||||
Amortization of intangible assets
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
||||
Defined benefit plan settlement charges
|
—
|
|
|
3
|
|
|
1
|
|
|
1
|
|
||||
Total costs and expenses
|
11,828
|
|
|
11,567
|
|
|
12,105
|
|
|
13,037
|
|
||||
Earnings from operations
|
856
|
|
|
818
|
|
|
955
|
|
|
890
|
|
||||
Interest and other, net
|
(81
|
)
|
|
(64
|
)
|
|
(56
|
)
|
|
(42
|
)
|
||||
Earnings before taxes
|
775
|
|
|
754
|
|
|
899
|
|
|
848
|
|
||||
Provision for taxes
|
(164
|
)
|
|
(195
|
)
|
|
(203
|
)
|
|
(188
|
)
|
||||
Net earnings
|
$
|
611
|
|
|
$
|
559
|
|
|
$
|
696
|
|
|
$
|
660
|
|
Net earnings per share:
(1)
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic
|
$
|
0.36
|
|
|
$
|
0.33
|
|
|
$
|
0.41
|
|
|
$
|
0.40
|
|
Diluted
|
$
|
0.36
|
|
|
$
|
0.33
|
|
|
$
|
0.41
|
|
|
$
|
0.39
|
|
Cash dividends paid per share
|
$
|
0.13
|
|
|
$
|
0.14
|
|
|
$
|
0.13
|
|
|
$
|
0.13
|
|
Range of per share stock prices on the New York Stock Exchange
|
|
|
|
|
|
|
|
|
|
|
|
||||
Low
|
$
|
14.12
|
|
|
$
|
14.84
|
|
|
$
|
17.10
|
|
|
$
|
18.36
|
|
High
|
$
|
16.25
|
|
|
$
|
18.83
|
|
|
$
|
19.58
|
|
|
$
|
22.31
|
|
|
For the three-month fiscal periods
ended in fiscal year 2016
|
||||||||||||||
|
January 31
|
|
April 30
|
|
July 31
|
|
October 31
|
||||||||
Net revenue
|
$
|
12,246
|
|
|
$
|
11,588
|
|
|
$
|
11,892
|
|
|
$
|
12,512
|
|
Cost of revenue
|
9,961
|
|
|
9,338
|
|
|
9,720
|
|
|
10,221
|
|
||||
Research and development
|
292
|
|
|
301
|
|
|
298
|
|
|
318
|
|
||||
Selling, general and administrative
|
1,037
|
|
|
1,002
|
|
|
719
|
|
|
1,075
|
|
||||
Restructuring and other charges
|
20
|
|
|
100
|
|
|
36
|
|
|
49
|
|
||||
Acquisition-related charges
|
—
|
|
|
—
|
|
|
—
|
|
|
7
|
|
||||
Amortization of intangible assets
|
8
|
|
|
6
|
|
|
2
|
|
|
—
|
|
||||
Defined benefit plan settlement charges
|
—
|
|
|
—
|
|
|
—
|
|
|
179
|
|
||||
Total costs and expenses
|
11,318
|
|
|
10,747
|
|
|
10,775
|
|
|
11,849
|
|
||||
Earnings from continuing operations
|
928
|
|
|
841
|
|
|
1,117
|
|
|
663
|
|
||||
Interest and other, net
|
(94
|
)
|
|
(5
|
)
|
|
(36
|
)
|
|
347
|
|
||||
Earnings from continuing operations before taxes
|
834
|
|
|
836
|
|
|
1,081
|
|
|
1,010
|
|
||||
Provision for taxes
|
(184
|
)
|
|
(176
|
)
|
|
(238
|
)
|
|
(497
|
)
|
||||
Net earnings from continuing operations
|
650
|
|
|
660
|
|
|
843
|
|
|
513
|
|
||||
Net loss from discontinued operations
|
(58
|
)
|
|
(31
|
)
|
|
(60
|
)
|
|
(21
|
)
|
||||
Net earnings
|
$
|
592
|
|
|
$
|
629
|
|
|
$
|
783
|
|
|
$
|
492
|
|
Net loss per share:
(1)
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic
|
|
|
|
|
|
|
|
||||||||
Continuing operations
|
$
|
0.37
|
|
|
$
|
0.38
|
|
|
$
|
0.49
|
|
|
$
|
0.30
|
|
Discontinued operations
|
(0.04
|
)
|
|
(0.01
|
)
|
|
(0.03
|
)
|
|
(0.01
|
)
|
||||
Total basic net earnings per share
|
$
|
0.33
|
|
|
$
|
0.37
|
|
|
$
|
0.46
|
|
|
$
|
0.29
|
|
Diluted
|
|
|
|
|
|
|
|
||||||||
Continuing operations
|
$
|
0.36
|
|
|
$
|
0.38
|
|
|
$
|
0.49
|
|
|
$
|
0.30
|
|
Discontinued operations
|
(0.03
|
)
|
|
(0.02
|
)
|
|
(0.04
|
)
|
|
(0.02
|
)
|
||||
Total diluted net earnings per share
|
$
|
0.33
|
|
|
$
|
0.36
|
|
|
$
|
0.45
|
|
|
$
|
0.28
|
|
Cash dividends paid per share
|
$
|
0.12
|
|
|
$
|
0.12
|
|
|
$
|
0.12
|
|
|
$
|
0.12
|
|
Range of per share stock prices on the New York Stock Exchange
|
|
|
|
|
|
|
|
|
|
|
|
||||
Low
|
$
|
9.24
|
|
|
$
|
8.91
|
|
|
$
|
11.31
|
|
|
$
|
13.55
|
|
High
|
$
|
14.82
|
|
|
$
|
12.96
|
|
|
$
|
14.27
|
|
|
$
|
15.88
|
|
(1)
|
Net EPS for each quarter is computed using the weighted-average number of shares outstanding during that quarter, while EPS for the fiscal year is computed using the weighted-average number of shares outstanding during the year. Hence, the sum of the EPS for each of the four quarters may not equal the EPS for the fiscal year.
|
•
|
Information regarding directors of HP who are standing for reelection and any persons nominated to become directors of HP is set forth under “Corporate Governance—Management Proposal No. 1 Election of Directors.”
|
•
|
Information regarding HP’s Audit Committee and designated “audit committee financial experts” is set forth under “Corporate Governance—Management Proposal No. 1 Election of Directors—Board Committees and Committee Composition—Audit Committee.”
|
•
|
Information on HP’s code of business conduct and ethics for directors, officers and employees, also known as the “Standards of Business Conduct”, is set forth under “Corporate Governance—Management Proposal No. 1 Election of Directors—Code of Conduct” and information on HP’s Corporate Governance Guidelines is set forth under “—Corporate Governance Highlights”, “—Director Nominees and Director Nominees’ Experience and Qualifications” and “—Director Independence.”
|
•
|
Information regarding Section 16(a) beneficial ownership reporting compliance is set forth under “Ownership of Our Stock—Section 16(a) Beneficial Ownership Reporting Compliance.”
|
•
|
Information regarding HP’s compensation of its named executive officers is set forth under “Executive Compensation.”
|
•
|
Information regarding HP’s compensation of its directors is set forth under “Corporate Governance—Management Proposal No. 1 Election of Directors—Director Compensation and Stock Ownership Guidelines.”
|
•
|
The report of HP’s HR and Compensation Committee is set forth under “Executive Compensation—Management Proposal No. 3 Advisory Vote to Approve Executive Compensation—HR and Compensation Committee Report on Executive Compensation.”
|
•
|
Information regarding security ownership of certain beneficial owners, directors and executive officers is set forth under “Ownership of Our Stock—Common Stock Ownership of Certain Beneficial Owners and Management.”
|
•
|
Information regarding HP’s equity compensation plans, including both stockholder approved plans and non-stockholder approved plans, is set forth in the section entitled “Executive Compensation—Management Proposal No. 3 Advisory Vote to Approve Executive Compensation—Equity Compensation Plan Information.”
|
•
|
Information regarding transactions with related persons is set forth under “Corporate Governance—Management Proposal No. 1 Election of Directors—Fiscal 2016 Related Person Transactions.”
|
•
|
Information regarding director independence is set forth under “Corporate Governance—Management Proposal No. 1 Election of Directors—Director Independence.”
|
(a)
|
The following documents are filed as part of this report:
|
|
|
2.
|
Financial Statement Schedules:
|
Exhibit
Number
|
|
Exhibit Description
|
|
Form
|
|
File No.
|
|
Exhibit(s)
|
|
|
Filing Date
|
2(a)
|
|
|
8-K
|
|
001-04423
|
|
2.1
|
|
|
November 5, 2015
|
|
2(b)
|
|
|
8-K
|
|
001-04423
|
|
2.2
|
|
|
November 5, 2015
|
|
2(c)
|
|
|
8-K
|
|
001-04423
|
|
2.3
|
|
|
November 5, 2015
|
|
2(d)
|
|
|
8-K
|
|
001-04423
|
|
2.4
|
|
|
November 5, 2015
|
|
2(e)
|
|
|
8-K
|
|
001-04423
|
|
2.5
|
|
|
November 5, 2015
|
|
2(f)
|
|
|
8-K
|
|
001-04423
|
|
2.6
|
|
|
November 5, 2015
|
|
2(g)
|
|
|
8-K
|
|
001-04423
|
|
2.7
|
|
|
November 5, 2015
|
|
3(a)
|
|
|
10-Q
|
|
001-04423
|
|
3(a)
|
|
|
June 12, 1998
|
|
3(b)
|
|
|
10-Q
|
|
001-04423
|
|
3(b)
|
|
|
March 16, 2001
|
|
3(c)
|
|
|
8-K
|
|
001-04423
|
|
3.2
|
|
|
October 22, 2015
|
|
3(d)
|
|
|
8-K
|
|
001-04423
|
|
3.1
|
|
|
April 7, 2016
|
|
3(e)
|
|
|
8-K
|
|
001-04423
|
|
3.2
|
|
|
July 26, 2017
|
|
4(a)
|
|
|
S-3
|
|
333-134327
|
|
4.1
|
|
|
December 15, 2016
|
|
4(b)
|
|
|
S-3
|
|
333-30786
|
|
4.2
|
|
|
December 15, 2016
|
|
4(c)
|
|
Form of Registrant’s 3.750% Global Note due December 1, 2020 and form of related Officers’ Certificate.
|
|
8-K
|
|
001-04423
|
|
|
|
December 2, 2010
|
|
4(d)
|
|
Form of Registrant’s 4.300% Global Note due June 1, 2021 and form of related Officers’ Certificate.
|
|
8-K
|
|
001-04423
|
|
|
|
June 1, 2011
|
|
4(e)
|
|
Form of Registrant’s 4.375% Global Note due September 15, 2021 and 6.000% Global Note due September 15, 2041 and form of related Officers’ Certificate.
|
|
8-K
|
|
001-04423
|
|
|
|
September 19, 2011
|
|
4(f)
|
|
Form of Registrant’s 4.650% Global Note due December 9, 2021 and related Officers’ Certificate.
|
|
8-K
|
|
001-04423
|
|
|
|
December 12, 2011
|
|
4(g)
|
|
Form of Registrant’s 4.050% Global Note due September 15, 2022 and related Officers’ Certificate.
|
|
8-K
|
|
001-04423
|
|
|
|
March 12, 2012
|
|
4(h)
|
|
Form of Registrant’s 2.750% Global Note due January 14, 2019 and Floating Rate Global Note due January 14, 2019 and related Officers’ Certificate.
|
|
8-K
|
|
001-04423
|
|
|
|
January 14, 2014
|
|
4(i)
|
|
|
8-A/A
|
|
001-04423
|
|
4.1
|
|
|
June 23, 2006
|
|
9
|
|
None.
|
|
|
|
|
|
|
|
|
|
10(a)
|
|
|
S-8
|
|
333-114253
|
|
4.1
|
|
|
April 7, 2004
|
|
10(b)
|
|
|
8-K
|
|
001-04423
|
|
10.2
|
|
|
September 21, 2006
|
|
10(c)
|
|
|
8-K
|
|
001-04423
|
|
99.3
|
|
|
November 23, 2005
|
Exhibit
Number
|
|
Exhibit Description
|
|
Form
|
|
File No.
|
|
Exhibit(s)
|
|
|
Filing Date
|
10(d)
|
|
|
10-K
|
|
001-04423
|
|
10(h)
|
|
|
December 14, 2011
|
|
10(e)
|
|
|
10-Q
|
|
001-04423
|
|
10(u)(u)
|
|
|
June 13, 2002
|
|
10(f)
|
|
|
10-Q
|
|
001-04423
|
|
10(v)(v)
|
|
|
June 13, 2002
|
|
10(g)
|
|
|
8-K
|
|
001-04423
|
|
10.2
|
|
|
March 22, 2005
|
|
10(h)
|
|
|
8-K
|
|
001-04423
|
|
10.2
|
|
|
January 24, 2008
|
|
10(i)
|
|
|
10-Q
|
|
001-04423
|
|
10(o)(o)
|
|
|
March 10, 2008
|
|
10(j)
|
|
|
10-Q
|
|
001-04423
|
|
10(p)(p)
|
|
|
March 10, 2008
|
|
10(k)
|
|
|
10-Q
|
|
001-04423
|
|
10(t)(t)
|
|
|
June 6, 2008
|
|
10(l)
|
|
|
10-Q
|
|
001-04423
|
|
10(u)(u)
|
|
|
June 6, 2008
|
|
10(m)
|
|
|
10-K
|
|
001-04423
|
|
10(y)(y)
|
|
|
December 18, 2008
|
|
10(n)
|
|
|
10-Q
|
|
001-04423
|
|
10(b)(b)(b)
|
|
|
March 10, 2009
|
|
10(o)
|
|
|
10-K
|
|
001-04423
|
|
10(i)(i)(i)
|
|
|
December 15, 2010
|
|
10(p)
|
|
|
10-K
|
|
001-04423
|
|
10(j)(j)(j)
|
|
|
December 15, 2010
|
|
10(q)
|
|
|
10-K
|
|
001-04423
|
|
10(k)(k)(k)
|
|
|
December 15, 2010
|
|
10(r)
|
|
|
8-K
|
|
001-04423
|
|
10.2
|
|
|
March 21, 2013
|
|
10(s)
|
|
|
10-Q
|
|
001-04423
|
|
10(u)(u)
|
|
|
March 11, 2014
|
|
10(t)
|
|
|
10-Q
|
|
001-04423
|
|
10(v)(v)
|
|
|
March 11, 2014
|
|
10(u)
|
|
|
10-Q
|
|
001-04423
|
|
10(w)(w)
|
|
|
March 11, 2014
|
|
10(v)
|
|
|
10-Q
|
|
001-04423
|
|
10(x)(x)
|
|
|
March 11, 2014
|
|
10(w)
|
|
|
10-Q
|
|
001-04423
|
|
10(y)(y)
|
|
|
March 11, 2014
|
|
10(x)
|
|
|
10-Q
|
|
001-04423
|
|
10(z)(z)
|
|
|
March 11, 2014
|
|
10(y)
|
|
|
10-Q
|
|
001-04423
|
|
10(a)(a)(a)
|
|
|
March 11, 2014
|
|
10(z)
|
|
|
10-Q
|
|
001-04423
|
|
10(b)(b)(b)
|
|
|
March 11, 2014
|
|
10(a)(a)
|
|
|
10-Q
|
|
001-04423
|
|
10(c)(c)(c)
|
|
|
March 11, 2015
|
|
10(b)(b)
|
|
|
10-Q
|
|
001-04423
|
|
10(d)(d)(d)
|
|
|
March 11, 2015
|
|
10(c)(c)
|
|
|
10-Q
|
|
001-04423
|
|
10(e)(e)(e)
|
|
|
March 11, 2015
|
|
10(d)(d)
|
|
|
10-Q
|
|
001-04423
|
|
10(f)(f)(f)
|
|
|
March 11, 2015
|
|
10(e)(e)
|
|
|
10-Q
|
|
001-04423
|
|
10(g)(g)(g)
|
|
|
March 11, 2015
|
|
10(f)(f)
|
|
|
10-Q
|
|
001-04423
|
|
10(h)(h)(h)
|
|
|
March 11, 2015
|
|
10(g)(g)
|
|
|
10-Q
|
|
001-04423
|
|
10(i)(i)(i)
|
|
|
March 11, 2015
|
|
10(h)(h)
|
|
10-Q
|
|
001-04423
|
|
10(b)(b)(b)
|
|
|
June 8, 2015
|
Exhibit
Number
|
|
Exhibit Description
|
|
Form
|
|
File No.
|
|
Exhibit(s)
|
|
|
Filing Date
|
10(i)(i)
|
|
10-Q
|
|
001-04423
|
|
10(c)(c)(c)
|
|
|
June 8, 2015
|
||
10(j)(j)
|
|
8-K
|
|
001-04423
|
|
10.1
|
|
|
November 5, 2015
|
||
10(k)(k)
|
|
|
10-K
|
|
001-04423
|
|
10(e)(e)(e)
|
|
|
December 16, 2015
|
|
10(l)(l)
|
|
|
10-K
|
|
001-04423
|
|
10(f)(f)(f)
|
|
|
December 16, 2015
|
|
10(m)(m)
|
|
|
10-K
|
|
001-04423
|
|
10(g)(g)(g)
|
|
|
December 16, 2015
|
|
10(n)(n)
|
|
|
|
|
|
|
|
|
|||
10(o)(o)
|
|
|
10-Q
|
|
001-04423
|
|
10(o)(o)
|
|
|
March 3, 2016
|
|
10(p)(p)
|
|
|
10-Q
|
|
001-04423
|
|
10(p)(p)
|
|
|
March 3, 2016
|
|
10(q)(q)
|
|
|
10-Q
|
|
001-04423
|
|
10(q)(q)
|
|
|
March 3, 2016
|
|
10(r)(r)
|
|
|
10-Q
|
|
001-04423
|
|
10(r)(r)
|
|
|
March 3, 2016
|
|
10(s)(s)
|
|
|
10-Q
|
|
001-04423
|
|
10(s)(s)
|
|
|
March 3, 2016
|
|
10(t)(t)
|
|
|
10-Q
|
|
001-04423
|
|
10(t)(t)
|
|
|
March 3, 2016
|
|
10(u)(u)
|
|
|
10-K
|
|
001-04423
|
|
10(u)(u)
|
|
|
December 15, 2016
|
|
10(v)(v)
|
|
|
10-Q
|
|
001-04423
|
|
10(v)(v)
|
|
|
March 2, 2017
|
|
10(w)(w)
|
|
|
10-Q
|
|
001-04423
|
|
10(w)(w)
|
|
|
March 2, 2017
|
|
10(x)(x)
|
|
|
10-Q
|
|
001-04423
|
|
10(x)(x)
|
|
|
March 2, 2017
|
|
10(y)(y)
|
|
|
10-Q
|
|
001-04423
|
|
10(y)(y)
|
|
|
March 2, 2017
|
|
10(z)(z)
|
|
|
10-Q
|
|
001-04423
|
|
10(z)(z)
|
|
|
March 2, 2017
|
|
10(a)(a)(a)
|
|
|
10-Q
|
|
001-04423
|
|
10(a)(a)(a)
|
|
|
March 2, 2017
|
|
11
|
|
None.
|
|
|
|
|
|
|
|
|
|
12
|
|
|
|
|
|
|
|
|
|
|
|
13
|
|
None.
|
|
|
|
|
|
|
|
|
|
14
|
|
None.
|
|
|
|
|
|
|
|
|
|
15
|
|
None.
|
|
|
|
|
|
|
|
|
|
18
|
|
None.
|
|
|
|
|
|
|
|
|
|
21
|
|
|
|
|
|
|
|
|
|
|
|
22
|
|
None.
|
|
|
|
|
|
|
|
|
|
23
|
|
|
|
|
|
|
|
|
|
|
|
24
|
|
Power of Attorney (included on the signature page).
|
|
|
|
|
|
|
|
|
|
Exhibit
Number
|
|
Exhibit Description
|
|
Form
|
|
File No.
|
|
Exhibit(s)
|
|
|
Filing Date
|
31.1
|
|
|
|
|
|
|
|
|
|
|
|
31.2
|
|
|
|
|
|
|
|
|
|
|
|
32
|
|
|
|
|
|
|
|
|
|
|
|
101.INS
|
|
XBRL Instance Document.†
|
|
|
|
|
|
|
|
|
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document.†
|
|
|
|
|
|
|
|
|
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document.†
|
|
|
|
|
|
|
|
|
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document.†
|
|
|
|
|
|
|
|
|
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document.†
|
|
|
|
|
|
|
|
|
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document.†
|
|
|
|
|
|
|
|
|
|
Signature
|
|
Title(s)
|
|
Date
|
|
|
|
|
|
*
|
|
President and Chief Executive Officer
(Principal Executive Officer)
|
|
December 14, 2017
|
Dion J. Weisler
|
|
|
|
|
|
|
|
|
|
*
|
|
Chief Financial Officer
(Principal Financial Officer)
|
|
December 14, 2017
|
Catherine A. Lesjak
|
|
|
|
|
|
|
|
|
|
*
|
|
Global Controller and Head of
Finance Services
(Principal Accounting Officer)
|
|
December 14, 2017
|
Marie E. Myers
|
|
|
|
|
|
|
|
|
|
*
|
|
Director
|
|
December 14, 2017
|
Aida Alvarez
|
|
|
|
|
|
|
|
|
|
*
|
|
Director
|
|
December 14, 2017
|
Shumeet Banerji
|
|
|
|
|
|
|
|
|
|
*
|
|
Director
|
|
December 14, 2017
|
Robert R. Bennett
|
|
|
|
|
|
|
|
|
|
*
|
|
Director
|
|
December 14, 2017
|
Charles V. Bergh
|
|
|
|
|
|
|
|
|
|
*
|
|
Director
|
|
December 14, 2017
|
Stacy Brown-Philpot
|
|
|
|
|
|
|
|
|
|
*
|
|
Director
|
|
December 14, 2017
|
Stephanie Burns
|
|
|
|
|
|
|
|
|
|
*
|
|
Director
|
|
December 14, 2017
|
Mary Anne Citrino
|
|
|
|
|
|
|
|
|
|
*
|
|
Director
|
|
December 14, 2017
|
Stacey Mobley
|
|
|
|
|
|
|
|
|
|
*
|
|
Director
|
|
December 14, 2017
|
Subra Suresh
|
|
|
|
|
|
|
|
|
|
/s/ David Deitchman
|
|
|
|
|
Deputy General Counsel and Assistant Secretary
|
|
For the fiscal years ended October 31
|
||||||||||||||||||
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
||||||||||
|
In millions, except ratios
|
||||||||||||||||||
Earnings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Earnings before taxes
|
$
|
3,276
|
|
|
$
|
3,761
|
|
|
$
|
3,532
|
|
|
$
|
3,863
|
|
|
$
|
3,055
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Undistributed loss (earnings) of equity method investees
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|||||
Fixed charges
|
331
|
|
|
268
|
|
|
648
|
|
|
745
|
|
|
885
|
|
|||||
|
$
|
3,607
|
|
|
$
|
4,029
|
|
|
$
|
4,180
|
|
|
$
|
4,607
|
|
|
$
|
3,940
|
|
Fixed charges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Total interest expense, including interest expense on borrowings, amortization of debt discount and premium on all indebtedness and other
|
$
|
311
|
|
|
$
|
219
|
|
|
$
|
592
|
|
|
$
|
665
|
|
|
$
|
769
|
|
Interest included in rent
|
20
|
|
|
49
|
|
|
56
|
|
|
80
|
|
|
116
|
|
|||||
Total fixed charges
|
$
|
331
|
|
|
$
|
268
|
|
|
$
|
648
|
|
|
$
|
745
|
|
|
$
|
885
|
|
Ratio of earnings to fixed charges (excess of fixed charges over earnings)
|
10.9x
|
|
|
15x
|
|
|
6.5x
|
|
|
6.2x
|
|
|
4.5x
|
|
(1)
|
HP computed the ratio of earnings to fixed charges by dividing earnings (earnings before taxes, undistributed loss (earnings) of equity method investees, and fixed charges) by fixed charges for the periods indicated. Fixed charges include (i) interest expense on borrowings, amortization of debt discount, premium on all indebtedness and other, and (ii) a reasonable approximation of the interest factor deemed to be included in rent expense.
|
(1)
|
Registration Statement (Form S-8 No. 333-124281) pertaining to the Executive Deferred Compensation Plan,
|
(2)
|
Registration Statement (Form S-8 No. 333-114253) pertaining to the 2004 Stock Incentive Plan,
|
(3)
|
Registration Statement (Form S-8 No. 333-35836) pertaining to the 2000 Stock Plan,
|
(4)
|
Registration Statement (Form S-8 No. 333-124282) pertaining to the 2005 Executive Deferred Compensation Plan,
|
(5)
|
Registration Statement (Form S-8 No. 002-92331) pertaining to the Hewlett-Packard Company 401(k) Plan,
|
(6)
|
Registration Statement (Form S-8 No. 033-31496) pertaining to the Employee Stock Purchase Plan and Service Anniversary Stock Plan,
|
(7)
|
Registration Statement (Form S-8 No. 333-142175) pertaining to the PolyServe, Inc. 2000 Stock Plan,
|
(8)
|
Registration Statement (Form S-8 No. 333-153302) pertaining to the Amended and Restated 2003 Incentive Plan of Electronic Data Systems Corporation and the 1997 Nonqualified Stock Option Plan of Electronic Data Systems Corporation,
|
(9)
|
Registration Statement (Form S-8 No. 333-166270) pertaining to the Amended and Restated Hewlett-Packard Company 2004 Stock Incentive Plan,
|
(10)
|
Registration Statement (Form S-8 No. 333-168101) pertaining to the Palm, Inc. 2009 Stock Plan, as amended, and the Amended and Restated Palm, Inc. 1999 Stock Plan,
|
(11)
|
Registration Statement (Form S-8 No. 333-169854) pertaining to the Amended and Restated 3PAR Inc. 2007 Equity Incentive Plan, the 3PARDATA, Inc. 2000 Management Stock Option Plan, as amended, and the 3PARDATA, Inc. 1999 Stock Plan, as amended,
|
(12)
|
Registration Statement (Form S-8 No. 333-173784) pertaining to the Hewlett-Packard Company 2011 Employee Stock Purchase Plan,
|
(13)
|
Registration Statement (Form S-8 No. 333-188108) pertaining to the Second Amended and Restated Hewlett-Packard Company 2004 Stock Incentive Plan,
|
(14)
|
Registration Statement (Form S-3ASR No. 333-215116) pertaining to an unspecified amount of debt securities, common stock, preferred stock, depositary shares and warrants;
|
1.
|
I have reviewed this Annual Report on Form 10-K of HP Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
|
/s/ DION J. WEISLER
|
|
|
Dion J. Weisler
President and Chief Executive Officer
(Principal Executive Officer)
|
|
1.
|
I have reviewed this Annual Report on Form 10-K of HP Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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4.
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The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
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a)
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Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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b)
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Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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c)
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Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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d)
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Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
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5.
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The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
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a)
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All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
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b)
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Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
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/s/ CATHERINE A. LESJAK
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Catherine A. Lesjak
Chief Financial Officer
(Principal Financial Officer)
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/s/ DION J. WEISLER
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Dion J. Weisler
President and Chief Executive Officer
(Principal Executive Officer)
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/s/ CATHERINE A. LESJAK
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Catherine A. Lesjak
Chief Financial Officer
(Principal Financial Officer)
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