Compensation and Retirement Disclosure [Abstract] | Period [Axis] |
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2015-11-01 - 2016-10-31 |
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Compensation and Retirement Disclosure [Abstract] | |
Components of Pension and Post-Retirement Benefit (Credit) Cost Recognized | The components of HP’s pension and post-retirement benefit cost (credit) recognized in the Consolidated Statements of Earnings were as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | For the fiscal years ended October 31 | | 2016 | | 2015 | | 2014 | | 2016 | | 2015 | | 2014 | | 2016 | | 2015 | | 2014 | | U.S. Defined Benefit Plans | | Non-U.S. Defined Benefit Plans | | Post-Retirement Benefit Plans | | In millions | Service cost | $ | — |
| | $ | 1 |
| | $ | 1 |
| | $ | 47 |
| | $ | 208 |
| | $ | 234 |
| | $ | 1 |
| | $ | 5 |
| | $ | 5 |
| Interest cost | 543 |
| | 556 |
| | 554 |
| | 20 |
| | 289 |
| | 454 |
| | 20 |
| | 28 |
| | 32 |
| Expected return on plan assets | (732 | ) | | (849 | ) | | (811 | ) | | (36 | ) | | (601 | ) | | (776 | ) | | (33 | ) | | (39 | ) | | (34 | ) | Amortization and deferrals: | | | |
| | |
| | | | |
| | |
| | | | |
| | |
| Actuarial loss (gain) | 55 |
| | 52 |
| | 13 |
| | 28 |
| | 213 |
| | 236 |
| | (12 | ) | | (11 | ) | | (10 | ) | Prior service benefit (credit) | — |
| | — |
| | — |
| | (3 | ) | | (15 | ) | | (21 | ) | | (17 | ) | | (19 | ) | | (41 | ) | Net periodic benefit (credit) cost | (134 | ) | | (240 | ) | | (243 | ) | | 56 |
| | 94 |
| | 127 |
| | (41 | ) | | (36 | ) | | (48 | ) | Curtailment gain | — |
| | — |
| | — |
| | (1 | ) | | — |
| | (6 | ) | | — |
| | — |
| | — |
| Settlement loss (gain) | 180 |
| | (79 | ) | | 1 |
| | 3 |
| | — |
| | 4 |
| | — |
| | — |
| | — |
| Special termination benefits | — |
| | — |
| | — |
| | — |
| | 7 |
| | 11 |
| | 4 |
| | 1 |
| | 32 |
| Plan expense (credit) allocation(1) | — |
| | — |
| | — |
| | — |
| | 25 |
| | (6 | ) | | — |
| | 28 |
| | 18 |
| Total benefit cost (credit) from continuing operations | $ | 46 |
| | $ | (319 | ) | | $ | (242 | ) | | $ | 58 |
| | $ | 126 |
| | $ | 130 |
| | $ | (37 | ) | | $ | (7 | ) | | $ | 2 |
| Summary of total benefit (credit) cost: | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| Continuing operations | $ | 46 |
| | $ | (319 | ) | | $ | (242 | ) | | $ | 58 |
| | $ | 126 |
| | $ | 130 |
| | $ | (37 | ) | | $ | (7 | ) | | $ | 2 |
| Discontinued operations | — |
| | 236 |
| | 17 |
| | — |
| | 105 |
| | 125 |
| | — |
| | (28 | ) | | (18 | ) | Total benefit cost (credit) | $ | 46 |
| | $ | (83 | ) | | $ | (225 | ) | | $ | 58 |
| | $ | 231 |
| | $ | 255 |
| | $ | (37 | ) | | $ | (35 | ) | | $ | (16 | ) |
| | (1) | Plan expense (credit) allocation relates to the employees of HP covered under Hewlett Packard Enterprise plans or employees of Hewlett Packard Enterprise covered under HP plans. |
|
Weighted-Average Assumptions Used to Calculate Total Periodic Benefit (Credit) Cost | The weighted-average assumptions used to calculate the total periodic benefit (credit) cost were as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | For the fiscal years ended October 31 | | 2016 | | 2015 | | 2014 | | 2016 | | 2015 | | 2014 | | 2016 | | 2015 | | 2014 | | U.S. Defined Benefit Plans | | Non-U.S. Defined Benefit Plans | | Post-Retirement Benefit Plans | Discount rate | 4.4 | % | | 4.4 | % | | 4.9 | % | | 2.3 | % | | 3.0 | % | | 3.9 | % | | 3.6 | % | | 3.6 | % | | 3.9 | % | Expected increase in compensation levels | 2.0 | % | | 2.0 | % | | 2.0 | % | | 2.5 | % | | 2.4 | % | | 2.4 | % | | — |
| | — |
| | — |
| Expected long-term return on plan assets | 6.9 | % | | 7.2 | % | | 7.7 | % | | 5.6 | % | | 6.9 | % | | 7.0 | % | | 8.0 | % | | 9.0 | % | | 8.9 | % |
|
Schedule of Funded Status of Defined Benefit and Post-Retirement Benefit Plans | The funded status of the defined benefit and post-retirement benefit plans was as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | As of October 31 | | | 2016 | | 2015 | | 2016 | | 2015 | | 2016 | | 2015 | | | 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 | $ | 11,077 |
| | $ | 11,979 |
| | $ | 853 |
| | $ | 12,472 |
| | $ | 434 |
| | $ | 458 |
| | Acquisition/addition of plans | — |
| | (1 | ) | | — |
| | 9 |
| | — |
| | — |
| | Actual return on plan assets | 736 |
| | 506 |
| | (14 | ) | | 547 |
| | 11 |
| | 45 |
| | Employer contributions | 32 |
| | 8 |
| | 20 |
| | 487 |
| | 18 |
| | 38 |
| | Participant contributions | — |
| | — |
| | 10 |
| | 48 |
| | 48 |
| | 57 |
| | Benefits paid | (339 | ) | | (301 | ) | | (15 | ) | | (297 | ) | | (121 | ) | | (124 | ) | | Settlement | (1,330 | ) | | (1,114 | ) | | (9 | ) | | (9 | ) | | — |
| | — |
| | Currency impact | — |
| | — |
| | 4 |
| | (737 | ) | | — |
| | — |
| | Transfers to Hewlett Packard Enterprise | — |
| | — |
| | (157 | ) | | (11,667 | ) | (1) | — |
| | (40 | ) | (1) | Fair value of assets — end of year | $ | 10,176 |
| | $ | 11,077 |
| | $ | 692 |
| | $ | 853 |
| | $ | 390 |
| | $ | 434 |
| | Change in benefits obligation | |
| | |
| | |
| | |
| | |
| | |
| | Projected benefit obligation — beginning of year | $ | 12,709 |
| | $ | 13,386 |
| | $ | 1,082 |
| | $ | 13,885 |
| | $ | 597 |
| | $ | 840 |
| | Acquisition/addition of plans | — |
| | (1 | ) | | (2 | ) | | 4 |
| | — |
| | — |
| | Service cost | — |
| | 1 |
| | 47 |
| | 208 |
| | 1 |
| | 5 |
| | Interest cost | 543 |
| | 556 |
| | 20 |
| | 289 |
| | 20 |
| | 28 |
| | Participant contributions | — |
| | — |
| | 10 |
| | 48 |
| | 48 |
| | 57 |
| | Actuarial loss (gain) | 561 |
| | (170 | ) | | 120 |
| | 48 |
| | 16 |
| | (49 | ) | | Benefits paid | (339 | ) | | (301 | ) | | (15 | ) | | (297 | ) | | (121 | ) | | (126 | ) | | Plan amendments | — |
| | — |
| | — |
| | (7 | ) | | (30 | ) | | — |
| | Curtailment | — |
| | — |
| | (1 | ) | | — |
| | — |
| | — |
| | Settlement | (1,330 | ) | | (1,114 | ) | | (9 | ) | | (9 | ) | | — |
| | — |
| | Special termination benefits | — |
| | — |
| | — |
| | 7 |
| | 4 |
| | 1 |
| | Currency impact | — |
| | — |
| | (4 | ) | | (825 | ) | | — |
| | (9 | ) | | Transfers from Hewlett Packard Enterprise | — |
| | 365 |
| (2) | — |
| | — |
| | — |
| | — |
| | Transfers to Hewlett Packard Enterprise | — |
| | (13 | ) | (1) | (128 | ) | | (12,269 | ) | (1) | — |
| | (150 | ) | (1) | Projected benefit obligation — end of year | $ | 12,144 |
| | $ | 12,709 |
| | $ | 1,120 |
| | $ | 1,082 |
| | $ | 535 |
| | $ | 597 |
| | Funded status at end of year | $ | (1,968 | ) | | $ | (1,632 | ) | | $ | (428 | ) | | $ | (229 | ) | | $ | (145 | ) | | $ | (163 | ) | | Accumulated benefit obligation | $ | 12,144 |
| | $ | 12,708 |
| | $ | 1,013 |
| | $ | 989 |
| | — |
| | — |
| |
| | (1) | In fiscal year 2015, in connection with the Separation, HP transferred plan assets and liabilities from HP’s plans to establish the Hewlett Packard Enterprise plans. |
| | (2) | In October 2015, in connection with the Separation, Hewlett Packard Enterprise transferred to HP three unfunded non-qualified U.S. defined benefit plans. |
|
Weighted-Average Assumptions Used to Calculate Projected Benefit Obligations | The weighted-average assumptions used to calculate the projected benefit obligations for the fiscal years ended October 31, 2016 and 2015 were as follows: | | | | | | | | | | | | | | | | | | | | For the fiscal years ended October 31 | | 2016 | | 2015 | | 2016 | | 2015 | | 2016 | | 2015 | | U.S. Defined Benefit Plans | | Non-U.S. Defined Benefit Plans | | Post-Retirement Benefit Plans | Discount rate | 4.0 | % | | 4.4 | % | | 1.6 | % | | 2.3 | % | | 3.4 | % | | 3.6 | % | Expected increase in compensation levels | 2.0 | % | | 2.0 | % | | 2.7 | % | | 2.5 | % | | — |
| | — |
|
|
Schedule of Net Amounts of Noncurrent Assets and Current and Noncurrent Liabilities for Defined Benefit and Post-Retirement Benefit Plans | The net amounts of non-current assets and current and non-current liabilities for HP’s defined benefit and post-retirement benefit plans recognized on HP’s Consolidated Balance Sheet were as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | As of October 31 | | 2016 | | 2015 | | 2016 | | 2015 | | 2016 | | 2015 | | U.S. Defined Benefit Plans | | Non-U.S. Defined Benefit Plans | | Post-Retirement Benefit Plans | | | | | | In millions | | | | | | | Non-current assets | $ | — |
| | $ | — |
| | $ | 17 |
| | $ | 37 |
| | $ | — |
| | $ | — |
| Current liabilities | (33 | ) | | (35 | ) | | (5 | ) | | (4 | ) | | (9 | ) | | (43 | ) | Non-current liabilities | (1,935 | ) | | (1,597 | ) | | (440 | ) | | (262 | ) | | (136 | ) | | (120 | ) | Funded status at end of year | $ | (1,968 | ) | | $ | (1,632 | ) | | $ | (428 | ) | | $ | (229 | ) | | $ | (145 | ) | | $ | (163 | ) |
|
Summary of Pre-Tax Net Actuarial Loss (Gain) and Prior Service Benefit Recognized in Accumulated Other Comprehensive Loss for Defined Benefit and Post-Retirement Benefit Plans | The following table summarizes the pre-tax net actuarial loss (gain) and prior service benefit recognized in Accumulated other comprehensive loss for the defined benefit and post-retirement benefit plans. | | | | | | | | | | | | | | As of October 31, 2016 | | U.S. Defined Benefit Plans | | Non U.S. Defined Benefit Plans | | Post-Retirement Benefit Plans | | | | In millions | | | Net actuarial loss (gain) | $ | 1,702 |
| | $ | 456 |
| | $ | (105 | ) | Prior service benefit | — |
| | (21 | ) | | (112 | ) | Total recognized in Accumulated other comprehensive loss (gain) | $ | 1,702 |
| | $ | 435 |
| | $ | (217 | ) |
|
Summary of Net Actuarial Loss (Gain) and Prior Service Benefit Expected to be Amortized | The following table summarizes HP’s pre-tax net actuarial loss (gain) and prior service benefit that are expected to be amortized from Accumulated other comprehensive loss (income) and recognized as components of net periodic benefit cost (credit) during the next fiscal year. | | | | | | | | | | | | | | U.S. Defined Benefit Plans | | Non-U.S. Defined Benefit Plans | | Post-Retirement Benefit Plans | | | | In millions | | | Net actuarial loss (gain) | $ | 73 |
| | $ | 39 |
| | $ | (10 | ) | Prior service benefit | — |
| | (3 | ) | | (19 | ) | Total expected to be recognized in net periodic benefit cost (credit) | $ | 73 |
| | $ | 36 |
| | $ | (29 | ) |
|
Schedule of Defined Benefit Plans with Projected Benefit Obligations Exceeding Fair Value of Plan Assets | Defined benefit plans with projected benefit obligations exceeding the fair value of plan assets were as follows: | | | | | | | | | | | | | | | | | | As of October 31 | | 2016 | | 2015 | | 2016 | | 2015 | | U.S. Defined Benefit Plans | | Non-U.S. Defined Benefit Plans | | In millions | Aggregate fair value of plan assets | $ | 10,176 |
| | $ | 11,077 |
| | $ | 626 |
| | $ | 418 |
| Aggregate projected benefit obligation | $ | 12,144 |
| | $ | 12,709 |
| | $ | 1,070 |
| | $ | 684 |
|
|
Schedule of Defined Benefit Plans with Accumulated Benefit Obligations Exceeding Fair Value of Plan Assets | Defined benefit plans with accumulated benefit obligations exceeding the fair value of plan assets were as follows: | | | | | | | | | | | | | | | | | | As of October 31 | | 2016 | | 2015 | | 2016 | | 2015 | | U.S. Defined Benefit Plans | | Non-U.S. Defined Benefit Plans | | In millions | Aggregate fair value of plan assets | $ | 10,176 |
| | $ | 11,077 |
| | $ | 619 |
| | $ | 409 |
| Aggregate accumulated benefit obligation | $ | 12,144 |
| | $ | 12,708 |
| | $ | 960 |
| | $ | 609 |
|
|
Schedule of Fair Value of Plan Assets by Asset Category | The table below sets forth the fair value of plan assets by asset category within the fair value hierarchy as of October 31, 2015. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | As of October 31, 2015 | | 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) | $ | 2,100 |
| | $ | 60 |
| | $ | — |
| | $ | 2,160 |
| | $ | 120 |
| | $ | 97 |
| | $ | 15 |
| | $ | 232 |
| | $ | — |
| | $ | 1 |
| | $ | — |
| | $ | 1 |
| Debt securities(2) | | | | | | | | | | | | | | | | | | | | | | | | Corporate | — |
| | 3,198 |
| | 31 |
| | 3,229 |
| | — |
| | 260 |
| | — |
| | 260 |
| | — |
| | 28 |
| | — |
| | 28 |
| Government | — |
| | 1,712 |
| | — |
| | 1,712 |
| | — |
| | 59 |
| | — |
| | 59 |
| | — |
| | 39 |
| | — |
| | 39 |
| Alternative Investments(3) | — |
| | — |
| | 1,291 |
| | 1,291 |
| | — |
| | 2 |
| | 16 |
| | 18 |
| | — |
| | — |
| | 253 |
| | 253 |
| Common Contractual Funds(4) | — |
| | 1,837 |
| | — |
| | 1,837 |
| | — |
| | 182 |
| | — |
| | 182 |
| | — |
| | — |
| | — |
| | — |
| Real Estate Funds | — |
| | — |
| | — |
| | — |
| | 2 |
| | 25 |
| | — |
| | 27 |
| | — |
| | — |
| | — |
| | — |
| Insurance Group Annuity Contracts | — |
| | — |
| | — |
| | — |
| | — |
| | 5 |
| | 3 |
| | 8 |
| | — |
| | — |
| | — |
| | — |
| Common Collective Trusts and 103-12 Investment Entities(5) | — |
| | 756 |
| | — |
| | 756 |
| | — |
| | 4 |
| | — |
| | 4 |
| | — |
| | 59 |
| | — |
| | 59 |
| Registered Investment Companies(6) | 38 |
| | 176 |
| | — |
| | 214 |
| | 30 |
| | — |
| | — |
| | 30 |
| | 52 |
| | 3 |
| | — |
| | 55 |
| Cash and Cash Equivalents(7) | 5 |
| | 71 |
| | — |
| | 76 |
| | 18 |
| | — |
| | — |
| | 18 |
| | 4 |
| | 3 |
| | — |
| | 7 |
| Other(8) | (153 | ) | | (45 | ) | | — |
| | (198 | ) | | 7 |
| | 1 |
| | 7 |
| | 15 |
| | (8 | ) | | — |
| | — |
| | (8 | ) | Total | $ | 1,990 |
| | $ | 7,765 |
| | $ | 1,322 |
| | $ | 11,077 |
| | $ | 177 |
| | $ | 635 |
| | $ | 41 |
| | $ | 853 |
| | $ | 48 |
| | $ | 133 |
| | $ | 253 |
| | $ | 434 |
|
| | (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 for 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) | 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. Depending on the amount of management judgment, the lack of near-term liquidity, and the absence of quoted market prices, these assets are classified in Level 2 or Level 3 of the fair value hierarchy. Further, depending on how quickly HP can redeem its hedge fund investments, and the extent of any adjustments to NAV, hedge funds are classified in either Level 2 or Level 3 of the fair value hierarchy. |
| | • | Private equities include limited partnerships such as equity, buyout, venture capital, real estate and other similar funds that invest in the United States and internationally where foreign currencies are hedged. |
| | • | 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. |
| | (4) | The Common Contractual Fund is an investment arrangement in which institutional investors pool their assets. Units may be acquired in six 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 at NAV and classified in Level 2 of the fair value hierarchy. |
| | (5) | 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 at NAV. The valuation for some of these assets requires judgment due to the absence of quoted market prices, and these assets are generally classified in Level 2 of the fair value hierarchy. |
| | (6) | Includes publicly and privately traded Registered Investment Entities. |
| | (7) | 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. |
| | (8) | Includes primarily unsettled transactions, international insured contracts, and derivative instruments. Such unsettled transactions relate primarily to fixed income securities settled in the first quarter of fiscal year 2016. |
The table below sets forth the fair value of plan assets by asset category within the fair value hierarchy as of October 31, 2016. Refer to Note 10, “Fair Value” for details on fair value hierarchy. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 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 |
| | $ | 122 |
| | $ | 4 |
| | $ | 7 |
| | $ | 133 |
| | $ | — |
| | $ | 1 |
| | $ | — |
| | $ | 1 |
| Debt securities(2) |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| Corporate | — |
| | 3,132 |
| | — |
| | 3,132 |
| | — |
| | 124 |
| | — |
| | 124 |
| | — |
| | 26 |
| | — |
| | 26 |
| Government | — |
| | 1,782 |
| | — |
| | 1,782 |
| | — |
| | 26 |
| | — |
| | 26 |
| | — |
| | 42 |
| | — |
| | 42 |
| Alternative Investments(3) | — |
| | — |
| | 1,027 |
| | 1,027 |
| | — |
| | 2 |
| | 11 |
| | 13 |
| | — |
| | — |
| | 219 |
| | 219 |
| Common Contractual Funds (4) | — |
| | 1,834 |
| | — |
| | 1,834 |
| | — |
| | 277 |
| | — |
| | 277 |
| | — |
| | — |
| | — |
| | — |
| Real Estate Funds | — |
| | — |
| | — |
| | — |
| | 1 |
| | 24 |
| | — |
| | 25 |
| | — |
| | — |
| | — |
| | — |
| Insurance Group Annuity Contracts | — |
| | — |
| | — |
| | — |
| | — |
| | 2 |
| | 1 |
| | 3 |
| | — |
| | — |
| | — |
| | — |
| Common Collective Trusts and 103-12 Investment Entities(5) | — |
| | 639 |
| | — |
| | 639 |
| | — |
| | 11 |
| | — |
| | 11 |
| | — |
| | 51 |
| | — |
| | 51 |
| Registered Investment Companies(6) | 20 |
| | 103 |
| | — |
| | 123 |
| | 30 |
| | — |
| | — |
| | 30 |
| | 54 |
| | 4 |
| | — |
| | 58 |
| Cash and Cash Equivalents(7) | 4 |
| | 52 |
| | — |
| | 56 |
| | 18 |
| | — |
| | — |
| | 18 |
| | — |
| | 5 |
| | — |
| | 5 |
| Other(8) | (169 | ) | | (23 | ) | | — |
| | (192 | ) | | 7 |
| | 16 |
| | 9 |
| | 32 |
| | (12 | ) | | — |
| | — |
| | (12 | ) | Total | $ | 1,571 |
| | $ | 7,578 |
| | $ | 1,027 |
| | $ | 10,176 |
| | $ | 178 |
| | $ | 486 |
| | $ | 28 |
| | $ | 692 |
| | $ | 42 |
| | $ | 129 |
| | $ | 219 |
| | $ | 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 for 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) | 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 net asset value (“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. Depending on the amount of management judgment, the lack of near-term liquidity, and the absence of quoted market prices, these assets are classified in Level 2 or Level 3 of the fair value hierarchy. Further, depending on how quickly HP can redeem its hedge fund investments, and the extent of any adjustments to NAV, hedge funds are classified in either Level 2 or Level 3 of the fair value hierarchy. |
| | • | Private equities include limited partnerships such as equity, buyout, venture capital, real estate and other similar funds that invest in the United States and internationally where foreign currencies are hedged. |
| | • | 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. |
| | (4) | The Common Contractual Fund is an investment arrangement in which institutional investors pool their assets. Units may be acquired in six 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 at NAV and classified in Level 2 of the fair value hierarchy. |
| | (5) | 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 at NAV. The valuation for some of these assets requires judgment due to the absence of quoted market prices, and these assets are generally classified in Level 2 of the fair value hierarchy. |
| | (6) | Includes publicly and privately traded Registered Investment Entities. |
| | (7) | 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. |
| | (8) | Includes primarily unsettled transactions, international insured contracts, and derivative instruments. Such unsettled transactions relate primarily to fixed income securities settled in the first quarter of fiscal year 2017. |
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Schedule of Changes in Fair Value Measurements of Level 3 Investments | Changes in fair value measurements of Level 3 investments were as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | For the fiscal year ended October 31, 2015 | | U.S. Defined Benefit Plans | | Non-U.S. Defined Benefit Plans | | Post-Retirement Benefit Plans | | Corporate Debt | | Alternative Investments | | Total | | Non U.S. Equities | | Alternative Investments | | Insurance Group Annuities | | Other | | Total | | Alternative Investments | | In millions | Beginning balance at October 31, 2014 | $ | 7 |
| | $ | 1,409 |
| | $ | 1,416 |
| | $ | 80 |
| | $ | 160 |
| | $ | 35 |
| | $ | — |
| | $ | 275 |
| | $ | 272 |
| Actual return on plan assets: | |
| | |
| | |
| | |
| | |
| | | | | | |
| | | Relating to assets still held at the reporting date | — |
| | (26 | ) | | (26 | ) | | (13 | ) | | (6 | ) | | (7 | ) | | — |
| | (26 | ) | | (2 | ) | Relating to assets sold during the period | — |
| | 144 |
| | 144 |
| | — |
| | (21 | ) | | — |
| | — |
| | (21 | ) | | 46 |
| Purchases, sales, and settlements (net) | 24 |
| | (236 | ) | | (212 | ) | | — |
| | (77 | ) | | — |
| | — |
| | (77 | ) | | (63 | ) | Transfers in and/or out of Level 3 | — |
| | — |
| | — |
| | (52 | ) | | (40 | ) | | (25 | ) | | 7 |
| | (110 | ) | | — |
| Ending balance at October 31, 2015 | $ | 31 |
| | $ | 1,291 |
| | $ | 1,322 |
| | $ | 15 |
| | $ | 16 |
| | $ | 3 |
| | $ | 7 |
| | $ | 41 |
| | $ | 253 |
|
Changes in fair value measurements of Level 3 investments were as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | For the fiscal year ended October 31, 2016 | | U.S. Defined Benefit Plans | | Non-U.S. Defined Benefit Plans | | Post-Retirement Benefit Plans | | Corporate Debt | | Alternative Investments | | Total | | Non U.S. Equities | | Alternative Investments | | Insurance Group Annuities | | Other | | Total | | Alternative Investments | | In millions | Beginning balance at October 31, 2015 | $ | 31 |
| | $ | 1,291 |
| | $ | 1,322 |
| | $ | 15 |
| | $ | 16 |
| | $ | 3 |
| | $ | 7 |
| | $ | 41 |
| | $ | 253 |
| Actual return on plan assets: | |
| | |
| | |
| | |
| | |
| | | | | | |
| | | Relating to assets still held at the reporting date | — |
| | (128 | ) | | (128 | ) | | — |
| | — |
| | — |
| | — |
| | — |
| | (9 | ) | Relating to assets sold during the period | — |
| | 131 |
| | 131 |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 14 |
| Purchases, sales, and settlements (net) | (9 | ) | | (267 | ) | | (276 | ) | | — |
| | — |
| | — |
| | — |
| | — |
| | (39 | ) | Transfers in and/or out of Level 3 | (22 | ) | | — |
| | (22 | ) | | (8 | ) | | (5 | ) | | (2 | ) | | 2 |
| | (13 | ) | | — |
| Ending balance at October 31, 2016 | $ | — |
| | $ | 1,027 |
| | $ | 1,027 |
| | $ | 7 |
| | $ | 11 |
| | $ | 1 |
| | $ | 9 |
| | $ | 28 |
| | $ | 219 |
|
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Schedule of Weighted-Average Target Asset Allocations Across Benefit Plans | Refer to the fair value hierarchy table above for actual assets allocations across the benefit plans. The weighted-average target asset allocations across the benefit plans represented in the fair value tables above were as follows: | | | | | | | | | | |
| | 2016 Target Allocation | Asset Category | | U.S. Defined Benefit Plans | | Non-U.S. Defined Benefit Plans | | Post-Retirement Benefit Plans | Equity-related investments | | 53.9 | % | | 44.3 | % | | 67.7 | % | Debt securities | | 46.1 | % | | 38.8 | % | | 29.2 | % | Real estate | | — |
| | 6.2 | % | | 2.0 | % | Cash and cash equivalents | | — |
| | 2.7 | % | | 1.1 | % | Other | | — |
| | 8.0 | % | | — |
| Total | | 100.0 | % | | 100.0 | % | | 100.0 | % |
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Schedule of Estimated Future Benefits Payments for Retirement and Post-Retirement Plans | As of October 31, 2016, HP estimates that the future benefits payments for the retirement and post-retirement plans are as follows: | | | | | | | | | | | | | | Fiscal year | | U.S. Defined Benefit Plans | | Non-U.S. Defined Benefit Plans | | Post-Retirement Benefit Plans | | | In millions | 2017 | | $ | 687 |
| | $ | 27 |
| | $ | 80 |
| 2018 | | 635 |
| | 24 |
| | 61 |
| 2019 | | 648 |
| | 28 |
| | 51 |
| 2020 | | 674 |
| | 29 |
| | 47 |
| 2021 | | 702 |
| | 28 |
| | 44 |
| Next five fiscal years to October 31, 2026 | | 3,685 |
| | 188 |
| | 167 |
|
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