Stockholders' Deficit

9 Months Ended

Jul. 31, 2020

Stockholders' Equity Note [Abstract]

Stockholders’ Deficit

Share Repurchase Program

HP’s share repurchase program authorizes both open market and private repurchase transactions. During the three and nine months ended July 31, 2020, HP executed share repurchases of 59 million shares and 97 million shares and settled total shares for $1.0 billion and $1.8 billion, respectively. During the three and nine months ended July 31, 2019, HP executed share repurchases of 26 million and 92 million shares and settled total shares for $0.5 billion and $1.9 billion, respectively. Share repurchases executed during the three and nine months ended July 31, 2020 and 2019 included 2.8 million and 0.7 million shares settled in August 2020 and August 2019, respectively.

The shares repurchased during the nine months ended July 31, 2020 and 2019 were all open market repurchase transactions. On February 22, 2020, HP’s Board of Directors increased HP’s share repurchase authorization to $15.0 billion in total. As of July 31, 2020, HP had approximately $14.0 billion remaining under the share repurchase authorizations approved by HP’s Board of Directors.

Shareholder Rights Plan

On February 20, 2020, HP’s Board of Directors adopted a shareholder rights plan and declared a dividend of one preferred share purchase right for each outstanding share of HP’s common stock to shareholders of record on March 2, 2020. The dividend distribution was made on March 2, 2020. The rights were set to expire on February 20, 2021, unless terminated earlier

by HP’s Board of Directors. The Board of Directors terminated the shareholder rights plan, effective June 25, 2020, and at the time of the termination, all rights distributed to holders of HP’s common stock under the shareholder rights plan expired.

Tax effects related to Other Comprehensive Income (Loss)


	Three months ended July 31						Nine months ended July 31
	2020		2019		2020		2019
	In millions



Tax effect on change in unrealized components of cash flow hedges:
Tax benefit (provision) on unrealized (losses) gains arising during the period	$	83	$	(7)	$	34	$	(23)
Tax provision on gains reclassified into earnings	25		14		51		34
	108		7		85		11
Tax effect on change in unrealized components of defined benefit plans:
Tax benefit on losses arising during the period	1		4		1		5
Tax provision on amortization of actuarial loss and prior service benefit	(5)		(3)		(15)		(9)
Tax provision on curtailments, settlements and other	—		(79)		—		(78)
	(4)		(78)		(14)		(82)
Tax effect on change in cumulative translation adjustment	—		8		—		6
Tax benefit (provision) on other comprehensive (loss) income	$	104	$	(63)	$	71	$	(65)

Changes and reclassifications related to Other Comprehensive Income (Loss), net of taxes


	Three months ended July 31						Nine months ended July 31
	2020		2019		2020		2019
	In millions
Other comprehensive income (loss), net of taxes:
Change in unrealized components of available-for-sale debt securities:
Unrealized gains arising during the period	$	2	$	—	$	1	$	—
Losses reclassified into earnings	—		—		—		3
	2		—		1		3
Change in unrealized components of cash flow hedges:
Unrealized (losses) gains arising during the period	(480)		173		(238)		248
Gains reclassified into earnings	(105)		(72)		(191)		(225)
	(585)		101		(429)		23
Change in unrealized components of defined benefit plans:
Losses arising during the period	(4)		(12)		(5)		(15)
Amortization of actuarial loss and prior service benefit⁽¹⁾	15		8		46		25
Curtailments, settlements and other	2		(38)		3		(38)
	13		(42)		44		(28)
Change in cumulative translation adjustment	15		(22)		4		(16)
Other comprehensive (loss) income, net of taxes	$	(555)	$	37	$	(380)	$	(18)

⁽¹⁾These components are included in the computation of net pension and post-retirement benefit (credit) charges in Note 4, “Retirement and Post-Retirement Benefit Plans”.

The components of AOCI, net of taxes and changes were as follows:


	Nine months ended July 31, 2020
	Net unrealized gains on available-for-sale debt securities		Net unrealized gains (losses) on cash flow hedges		Unrealized components of defined benefit plans		Change in cumulative translation adjustment		Accumulated other comprehensive loss
	In millions
Balance at beginning of period	$	9	$	172	$	(1,410)	$	4	$	(1,225)
Other comprehensive income (loss) before reclassifications	1		(238)		(5)		4		(238)
Reclassifications of (gains) losses into earnings	—		(191)		46		—		(145)
Reclassifications of settlements into earnings	—		—		3		—		3
Balance at end of period	$	10	$	(257)	$	(1,366)	$	8	$	(1,605)