Taxes on Earnings (Tables)

12 Months Ended

Oct. 31, 2019

Income Tax Disclosure [Abstract]

Schedule of Domestic and Foreign Components of Earnings

The domestic and foreign components of earnings before taxes were as follows:

	For the fiscal years ended October 31
	2019			2018		2017
	In millions
U.S.	$	(1,021	)	$	242	$	(14	)
Non-U.S.	3,544			2,771		3,290
	$	2,523		$	3,013	$	3,276

Schedule of (Benefit from) Provision for Taxes on Earnings

The (benefit from) provision for taxes on earnings was as follows:

	For the fiscal years ended October 31
	2019			2018			2017
	In millions
U.S. federal taxes:
Current	$	(987	)	$	751		$	189
Deferred	149			(3,132		)	197
Non-U.S. taxes:
Current	386			528			302
Deferred	(3		)	(563		)	4
State taxes:
Current	(160		)	61			20
Deferred	(14		)	41			38
	$	(629	)	$	(2,314	)	$	750

Schedule of Differences Between U.S. Federal Statutory Income Tax Rate and HP's Effective Tax Rate

The differences between the U.S. federal statutory income tax rate and HP’s effective tax rate were as follows:

	For the fiscal years ended October 31
	2019		2018		2017
U.S. federal statutory income tax rate from operations	21.0	%	23.3	%	35.0	%
State income taxes from operations, net of federal tax benefit	1.5	%	0.5	%	1.4	%
Impact of foreign earnings, net	(6.4	)%	(10.9	)%	(13.2	)%
Foreign-derived intangible income deduction	(2.3	)%	—	%	—	%
Global Minimum Tax	4.3	%	—	%	—	%
U.S. Tax Reform impacts	(2.6	)%	(35.8	)%	—	%
Research and development (“R&D”) credit	(1.1	)%	(0.7	)%	(0.5	)%
Valuation allowances	(3.7	)%	(9.3	)%	(1.9	)%
Uncertain tax positions and audit settlements	(41.1	)%	(50.3	)%	0.4	%
Indemnification related items	6.8	%	5.2	%	(0.3	)%
Other, net	(1.3	)%	1.2	%	2.0	%
	(24.9	)%	(76.8	)%	22.9	%

Reconciliation of Unrecognized Tax Benefits

A reconciliation of unrecognized tax benefits is as follows:

	For the fiscal years ended October 31
	2019			2018			2017
	In millions
Balance at beginning of year	$	7,771		$	10,808		$	10,858
Increases:
For current year’s tax positions	79			66			52
For prior years’ tax positions	172			101			85
Decreases:
For prior years’ tax positions	(37		)	(248		)	(181		)
Statute of limitations expirations	(15		)	(3		)	(1		)
Settlements with taxing authorities	(7,041		)	(2,953		)	(5		)
Balance at end of year	$	929		$	7,771		$	10,808

Schedule of Significant Components of Deferred Tax Assets and Deferred Tax Liabilities

The significant components of deferred tax assets and deferred tax liabilities were as follows:

	As of October 31
	2019			2018
	In millions
Deferred Tax Assets
Loss and credit carryforwards	$	7,856		$	8,204
Intercompany transactions—excluding inventory	714			994
Fixed assets	115			151
Warranty	195			194
Employee and retiree benefits	396			401
Deferred Revenue	145			164
Capitalized research and development	193			—
Intangible assets	420			—
Other	556			422
Gross Deferred Tax Assets	10,590			10,530
Valuation allowances	(7,930		)	(7,906		)
Total Deferred Tax Assets	2,660			2,624
Deferred Tax Liabilities
Unremitted earnings of foreign subsidiaries	(27		)	(31		)
Intangible assets	—			(229		)
Other	(73		)	(33		)
Total Deferred Tax Liabilities	(100		)	(293		)
Net Deferred Tax Assets	$	2,560		$	2,331

Deferred tax assets and liabilities included in the Consolidated Balance Sheets as follows:

	As of October 31
	2019			2018
	In millions
Deferred tax assets	$	2,620		$	2,431
Deferred tax liabilities	(60		)	(100		)
Total	$	2,560		$	2,331

Schedule of Deferred Tax Assets for Net Operating Loss Carryforwards

 As of October 31, 2019, HP had recorded deferred tax assets for net operating loss carryforwards as follows:

	Gross NOLs		Deferred Taxes on NOLs		Valuation allowance			Initial Year of Expiration
	In millions
Federal	$	372	$	78	$	(19	)	2023
State	2,634		167		(62		)	2019
Foreign	26,317		7,434		(7,357		)	2021
Balance at end of year	$	29,323	$	7,679	$	(7,438	)

Schedule of Deferred Tax Assets for Various Tax Credit Carryforwards

 As of October 31, 2019, HP had recorded deferred tax assets for net operating loss carryforwards as follows:

	Gross NOLs		Deferred Taxes on NOLs		Valuation allowance			Initial Year of Expiration
	In millions
Federal	$	372	$	78	$	(19	)	2023
State	2,634		167		(62		)	2019
Foreign	26,317		7,434		(7,357		)	2021
Balance at end of year	$	29,323	$	7,679	$	(7,438	)

As of October 31, 2019, HP had recorded deferred tax assets for various tax credit carryforwards as follows:

	Carryforward		Valuation Allowance			Initial Year of Expiration
	In millions
Tax credits in state and foreign jurisdictions	$	307	$	(42	)	2021
Balance at end of year	$	307	$	(42	)

Schedule of Deferred Tax Asset Valuation Allowance and Changes

The deferred tax asset valuation allowance and changes were as follows:

	For the fiscal years ended October 31
	2019			2018			2017
	In millions
Balance at beginning of year	$	7,906		$	8,807		$	8,520
Income tax (benefit) expense	(339		)	(897		)	297
Other comprehensive income, currency translation and charges to other accounts	363			(4		)	(10		)
Balance at end of year	$	7,930		$	7,906		$	8,807