Financial Instruments (Tables)
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12 Months Ended |
Oct. 31, 2020 |
Investments, All Other Investments [Abstract] |
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Schedule of Cash Equivalents and Available-for-Sale Investments |
Cash Equivalents and Available-for-Sale Investments | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | As of October 31, 2020 | | As of October 31, 2019 | | Cost | | Gross Unrealized Gain | | Gross Unrealized Loss | | Fair Value | | Cost | | Gross Unrealized Gain | | Gross Unrealized Loss | | Fair Value | | In millions | Cash Equivalents: | | | | | | | | | | | | | | | | Corporate debt | $ | 1,700 | | | $ | — | | | $ | — | | | $ | 1,700 | | | $ | 1,283 | | | $ | — | | | $ | — | | | $ | 1,283 | | Financial institution instruments | 59 | | | — | | | — | | | 59 | | | — | | | — | | | — | | | — | | Government debt | 2,173 | | | — | | | — | | | 2,173 | | | 2,422 | | | — | | | — | | | 2,422 | | Total cash equivalents | 3,932 | | | — | | | — | | | 3,932 | | | 3,705 | | | — | | | — | | | 3,705 | | Available-for-Sale Investments: | | | | | | | | | | | | | | | | Corporate debt(1) | 169 | | | — | | | — | | | 169 | | | — | | | — | | | — | | | — | | Financial institution instruments(1) | 32 | | | — | | | — | | | 32 | | | — | | | — | | | — | | | — | | Government debt(1) | 73 | | | — | | | — | | | 73 | | | — | | | — | | | — | | | — | | Marketable equity securities and Mutual funds | 42 | | | 16 | | | — | | | 58 | | | 40 | | | 16 | | | — | | | 56 | | Total available-for-sale investments | 316 | | | 16 | | | — | | | 332 | | | 40 | | | 16 | | | — | | | 56 | | Total cash equivalents and available-for-sale investments | $ | 4,248 | | | $ | 16 | | | $ | — | | | $ | 4,264 | | | $ | 3,745 | | | $ | 16 | | | $ | — | | | $ | 3,761 | |
(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.
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Schedule of Contractual Maturities |
Contractual maturities of investments in available-for-sale debt securities were as follows: | | | | | | | | | | | | | As of October 31, 2020 | | Amortized Cost | | Fair Value | | In millions | Due in one year | $ | 274 | | | $ | 274 | | | | | | | | | | | | | |
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Schedule of Fair Value of Derivative Instruments in the Consolidated Balance Sheets |
The gross notional and fair value of derivative instruments in the Consolidated Balance Sheets were as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | As of October 31, 2020 | | As of October 31, 2019 | | Outstanding Gross Notional | | Other Current Assets | | Other Non-Current Assets | | Other Current Liabilities | | Other Non-Current Liabilities | | Outstanding Gross Notional | | Other Current Assets | | Other Non-Current Assets | | Other Current Liabilities | | Other Non-Current Liabilities | | In millions | Derivatives designated as hedging instruments | | | | | | | | | | | | | | | | | | | | Fair value hedges: | | | | | | | | | | | | | | | | | | | | Interest rate contracts | $ | 875 | | | $ | 4 | | | $ | — | | | $ | — | | | $ | 3 | | | $ | 750 | | | $ | — | | | $ | 4 | | | $ | — | | | $ | — | | Cash flow hedges: | | | | | | | | | | | | | | | | | | | | Foreign currency contracts | 15,661 | | | 148 | | | 30 | | | 199 | | | 37 | | | 15,639 | | | 260 | | | 111 | | | 123 | | | 28 | | Total derivatives designated as hedging instruments | 16,536 | | | 152 | | | 30 | | | 199 | | | 40 | | | 16,389 | | | 260 | | | 115 | | | 123 | | | 28 | | Derivatives not designated as hedging instruments | | | | | | | | | | | | | | | | | | | | Foreign currency contracts | 5,319 | | | 13 | | | — | | | 20 | | | — | | | 7,146 | | | 10 | | | — | | | 14 | | | — | | Other derivatives | 142 | | | — | | | — | | | 3 | | | — | | | 134 | | | 7 | | | — | | | 1 | | | — | | Total derivatives not designated as hedging instruments | 5,461 | | | 13 | | | — | | | 23 | | | — | | | 7,280 | | | 17 | | | — | | | 15 | | | — | | Total derivatives | $ | 21,997 | | | $ | 165 | | | $ | 30 | | | $ | 222 | | | $ | 40 | | | $ | 23,669 | | | $ | 277 | | | $ | 115 | | | $ | 138 | | | $ | 28 | |
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Schedule of Offsetting Derivative Liabilities |
As of October 31, 2020 and 2019, information related to the potential effect of HP’s master netting agreements and collateral security agreements was as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 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, 2020 | | | | | | | | | | | | | | Derivative assets | $ | 195 | | | $ | — | | | $ | 195 | | | $ | 156 | | | $ | 4 | | | (1) | | $ | 35 | | Derivative liabilities | $ | 262 | | | $ | — | | | $ | 262 | | | $ | 156 | | | $ | 130 | | | (2) | | $ | (24) | | As of October 31, 2019 | | | | | | | | | | | | | | Derivative assets | $ | 392 | | | $ | — | | | $ | 392 | | | $ | 113 | | | $ | 259 | | | (1) | | $ | 20 | | Derivative liabilities | $ | 166 | | | $ | — | | | $ | 166 | | | $ | 113 | | | $ | 43 | | | (2) | | $ | 10 | |
(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.
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Schedule of Offsetting Derivative Assets |
As of October 31, 2020 and 2019, information related to the potential effect of HP’s master netting agreements and collateral security agreements was as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 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, 2020 | | | | | | | | | | | | | | Derivative assets | $ | 195 | | | $ | — | | | $ | 195 | | | $ | 156 | | | $ | 4 | | | (1) | | $ | 35 | | Derivative liabilities | $ | 262 | | | $ | — | | | $ | 262 | | | $ | 156 | | | $ | 130 | | | (2) | | $ | (24) | | As of October 31, 2019 | | | | | | | | | | | | | | Derivative assets | $ | 392 | | | $ | — | | | $ | 392 | | | $ | 113 | | | $ | 259 | | | (1) | | $ | 20 | | Derivative liabilities | $ | 166 | | | $ | — | | | $ | 166 | | | $ | 113 | | | $ | 43 | | | (2) | | $ | 10 | |
(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.
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Schedule of Pre-tax Effect of Derivative Instruments and Related Hedged Items |
The pre-tax effect of derivative instruments and related hedged items in a fair value hedging relationship was as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Derivative Instrument | | Hedged Item | | Location | | For the fiscal years ended October 31 | | Total amounts of income/ (expense) line items in the statement of financial performance in which the effects of fair value hedges are recorded | | Gain/ (loss) recognized in earnings on derivative instrument | | (Loss)/ gain recognized in earnings on hedged item | | | | | | | | | In millions | Interest rate contracts | | Fixed-rate debt | | Interest and other, net | | 2020 | | $ | (231) | | | $ | 6 | | | $ | (6) | | | | | | | | 2019 | | (1,354) | | | 27 | | | (27) | | | | | | | | 2018 | | (818) | | | (11) | | | 11 | |
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Schedule of Pre-tax Effect of Derivative Instruments in Cash Flow and Net Investment Hedging Relationships |
The pre-tax effect of derivative instruments in cash flow hedging relationships included in Accumulated other comprehensive loss was as follows: | | | | | | | | | | | | | | | | | | | For the fiscal years ended October 31 | | 2020 | | 2019 | | 2018 | | In millions | (Loss)/ gain recognized in Accumulated other comprehensive loss on derivatives: | | | | | | Foreign currency contracts | $ | (197) | | | $ | 252 | | | $ | 341 | | Interest rate contracts | $ | (4) | | | $ | — | | | $ | — | |
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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 included in earnings were as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total amounts of income/ (expense) line items in the statement of financial performance in which the effects of cash flow hedges are recorded | | Gain/ (loss) reclassified from Accumulated other comprehensive loss into earnings | | For the fiscal years ended October 31 | | For the fiscal years ended October 31 | | 2020 | | 2019 | | 2018 | | 2020 | | 2019 | | 2018 | | In millions | | In millions | Net revenue | $ | 56,639 | | | $ | 58,756 | | | $ | 58,472 | | | $ | 108 | | | $ | 425 | | | $ | (239) | | Cost of revenue | (46,202) | | | (47,586) | | | (47,803) | | | (25) | | | (43) | | | (18) | | Operating expenses | (6,975) | | | (7,293) | | | (6,838) | | | 2 | | | (2) | | | (1) | | Total | $ | 3,462 | | | $ | 3,877 | | | $ | 3,831 | | | $ | 85 | | | $ | 380 | | | $ | (258) | |
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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 recognized in Interest and other, net in the Consolidated Statements of Earnings for fiscal years 2020, 2019 and 2018 was as follows: | | | | | | | | | | | | | | | | | | | | | | | | | Gain/ (loss) recognized in earnings on derivative instrument | | Location | | 2020 | | 2019 | | 2018 | | | | In millions | Foreign currency contracts | Interest and other, net | | $ | 40 | | | $ | (119) | | | $ | 35 | | Other derivatives | Interest and other, net | | (9) | | | 14 | | | (9) | | Total | | | $ | 31 | | | $ | (105) | | | $ | 26 | |
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