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Financial Instruments (Tables)

6 Months Ended

Apr. 30, 2017

Investments, All Other Investments [Abstract]

Schedule of Cash Equivalents and Available-for-Sale Investments

Cash Equivalents and Available-for-Sale Investments



	As of April 30, 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:
Time deposits	$	2,790	$	—	$	—	$	2,790	$	2,092	$	—	$	—	$	2,092
Money market funds	2,033		—		—		2,033		2,568		—		—		2,568
Total cash equivalents	4,823		—		—		4,823		4,660		—		—		4,660
Available-for-Sale Investments:
Marketable equity securities	1		7		—		8		1		3		—		4
Mutual funds	36		9		—		45		35		9		—		44
Other debt securities	—		—		—		—		2		—		—		2
Total available-for-sale investments	37		16		—		53		38		12		—		50
Total cash equivalents and available-for-sale investments	$	4,860	$	16	$	—	$	4,876	$	4,698	$	12	$	—	$	4,710

Schedule of Gross Notional and Fair Value of Derivative Financial Instruments in the Consolidated Condensed Balance Sheets

The gross notional and fair value of derivative instruments in the Consolidated Condensed Balance Sheets were as follows:



	As of April 30, 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	$	—	$	3	$	—	$	3	$	2,000	$	—	$	48	$	—	$	—
Cash flow hedges:
Foreign currency contracts	13,774		89		16		193		34		11,852		203		63		52		12
Total derivatives designated as hedging instruments	16,274		89		19		193		37		13,852		203		111		52		12
Derivatives not designated as hedging instruments
Foreign currency contracts	4,881		23		1		47		1		3,934		11		—		31		—
Other derivatives	117		2		—		—		—		150		—		—		2		—
Total derivatives not designated as hedging instruments	4,998		25		1		47		1		4,084		11		—		33		—
Total derivatives	$	21,272	$	114	$	20	$	240	$	38	$	17,936	$	214	$	111	$	85	$	12

Schedule of Offsetting Assets

As of April 30, 2017 and October 31, 2016, information related to the potential effect of HP’s master netting agreements and collateral security agreements was as follows:



	In the Consolidated Condensed Balance Sheets
							Gross Amounts Not Offset
	Gross Amount Recognized (i)		Gross Amount Offset (ii)		Net Amount Presented (iii) = (i)–(ii)		Derivatives (iv)		Financial Collateral (v)			Net Amount (vi) = (iii)–(iv)–(v)
	In millions
As of April 30, 2017
Derivative assets	$	134	$	—	$	134	$	127	$	—	⁽¹⁾	$	7
Derivative liabilities	$	278	$	—	$	278	$	127	$	133	⁽²⁾	$	18
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.

Schedule of Offsetting Liabilities

As of April 30, 2017 and October 31, 2016, information related to the potential effect of HP’s master netting agreements and collateral security agreements was as follows:



	In the Consolidated Condensed Balance Sheets
							Gross Amounts Not Offset
	Gross Amount Recognized (i)		Gross Amount Offset (ii)		Net Amount Presented (iii) = (i)–(ii)		Derivatives (iv)		Financial Collateral (v)			Net Amount (vi) = (iii)–(iv)–(v)
	In millions
As of April 30, 2017
Derivative assets	$	134	$	—	$	134	$	127	$	—	⁽¹⁾	$	7
Derivative liabilities	$	278	$	—	$	278	$	127	$	133	⁽²⁾	$	18
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.

Schedule of Pre-Tax Effect of Derivative Instruments and Related Hedged Items in a Fair Value Hedging Relationship

The pre-tax effect of derivative instruments and related hedged items in a fair value hedging relationship for the three and six months ended April 30, 2017 and 2016 were as follows:



	Gain (Loss) Recognized in Earnings on Derivative and Related Hedged Item
Derivative Instrument	Location	Three months ended April 30, 2017		Six months ended April 30, 2017			Hedged Item	Location	Three months ended April 30, 2017			Six months ended April 30, 2017
		In millions							In millions
Interest rate contracts	Interest and other, net	$	4	$	(48	)	Fixed-rate debt	Interest and other, net	$	(4	)	$	48



	Gain (Loss) Recognized in Earnings on Derivative and Related Hedged Item
Derivative Instrument	Location	Three months ended April 30, 2016		Six months ended April 30, 2016		Hedged Item	Location	Three months ended April 30, 2016			Six months ended April 30, 2016
		In millions						In millions
Interest rate contracts	Interest and other, net	$	4	$	18	Fixed-rate debt	Interest and other, net	$	(4	)	$	(18	)

Schedule of Pre-Tax Effect of Derivative Instruments in Cash Flow Hedging Relationships

The pre-tax effect of derivative instruments in cash flow hedging relationships for the three and six months ended April 30, 2017 was as follows:



	Loss Recognized in Other Comprehensive Income (“OCI”) on Derivatives (Effective Portion)						Gain (Loss) Reclassified from Accumulated OCI Into Earnings (Effective Portion)
	Three months ended April 30, 2017			Six months ended April 30, 2017			Location	Three months ended April 30, 2017			Six months ended April 30, 2017
	In millions							In millions
Cash flow hedges:
Foreign currency contracts	$	(70	)	$	(239	)	Net revenue	$	39		$	115
							Cost of revenue	(19		)	(19		)
							Interest and other, net	(4		)	(9		)
Total	$	(70	)	$	(239	)		$	16		$	87

The pre-tax effect of derivative instruments in cash flow hedging relationships for the three and six months ended April 30, 2016 was as follows:



	Loss Recognized in Other Comprehensive Income ("OCI") on Derivatives (Effective Portion)						Gain (Loss) Reclassified from Accumulated OCI Into Earnings (Effective Portion)
	Three months ended April 30, 2016			Six months ended April 30, 2016			Location	Three months ended April 30, 2016			Six months ended April 30, 2016
	In millions							In millions

Cash flow hedges: Foreign currency contracts	$	(145	)	$	(40	)	Net revenue	$	88		$	166
							Cost of revenue	(32		)	(72		)
							Interest and other, net	6			2
Total	$	(145	)	$	(40	)	Total	$	62		$	96

Schedule of Pre-Tax Effect of Derivative Instruments not Designated as Hedging Instruments on the Consolidated Condensed Statements of Earnings

The pre-tax effect of derivative instruments not designated as hedging instruments in the Consolidated Condensed Statements of Earnings for the three and six months ended April 30, 2017 and 2016 was as follows:



	(Loss) Gain Recognized in Earnings on Derivatives
	Location	Three months ended April 30, 2017			Three months ended April 30, 2016			Six months ended April 30, 2017			Six months ended April 30, 2016
		In millions
Foreign currency contracts	Interest and other, net	$	(47	)	$	(29	)	$	(49	)	$	(8	)
Other derivatives	Interest and other, net	1			7			4			(1		)
Total		$	(46	)	$	(22	)	$	(45	)	$	(9	)