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Segment Information
9 Months Ended
Jul. 31, 2023
Segment Reporting [Abstract]  
Segment Information Segment Information
HP is a leading global provider of personal computing and other access devices, imaging and printing products, and related technologies, solutions and services. HP sells to individual consumers, small- and medium-sized businesses (“SMBs”) and large enterprises, including customers in the government, health and education sectors. HP goes to market through its extensive channel network and direct sales.
HP’s operations are organized into three reportable segments: Personal Systems, Printing, and Corporate Investments. HP’s organizational structure is based on many factors that the chief operating decision maker (“CODM”) uses to evaluate, view and run the business operations, which include, but are not limited to, customer base and homogeneity of products and technology. The segments are based on this organizational structure and information reviewed by HP’s CODM to evaluate segment results. The CODM uses several metrics to evaluate the performance of the overall business, including earnings from operations, and uses these results to allocate resources to each of the segments.
A summary description of each segment is as follows:
Personal Systems offers commercial and consumer customers desktops and notebooks, workstations, thin clients, commercial mobility devices, retail point-of-sale (“POS”) systems, displays, hybrid systems (includes video conferencing solutions, cameras, headsets, voice, and related software capabilities including all products and solutions acquired from Poly), software, support and services. HP groups commercial notebooks, commercial desktops, commercial services, commercial mobility devices, commercial detachables and convertibles, workstations, retail POS systems and thin clients into commercial (“Commercial PS”), and consumer notebooks, consumer desktops, consumer services and consumer detachables into consumer (“Consumer PS”) when describing performance in these markets. Commercial and Consumer services include support and deployment, configurations and extended warranty services.
Personal Systems groups its global business capabilities into the following business units when reporting business performance:
Commercial PS consist of endpoint computing devices and hybrid systems, for use by enterprise, public sector (which includes education), and SMB customers, with a focus on robust designs, security, serviceability, connectivity, reliability and manageability in the customer’s environment. Additionally, HP offers a range of services and solutions to enterprise, public sector (which includes education), and SMB customers to help them manage the lifecycle of their personal computers (“PCs”) and mobility installed base. 
Consumer PS consist of devices, accessories and services which are optimized for consumer usage, focusing on gaming, learning and working remotely, consuming multi-media for entertainment, managing personal life activities, staying connected, sharing information, getting things done for work including creating content and staying informed and secure.
Printing provides consumer and commercial printer hardware, supplies, services and solutions. Printing is also focused on imaging solutions in the commercial and industrial markets. Described below are HP’s global business capabilities within Printing.
Office Printing Solutions delivers HP’s office printers, supplies, services and solutions to SMBs and large enterprises. It also includes OEM hardware and solutions.
Home Printing Solutions delivers innovative printing products, supplies, services and solutions for the home, home business and micro business customers utilizing both HP’s Ink and Laser technologies.
Graphics Solutions delivers large-format, commercial and industrial solutions and supplies to print service providers and packaging converters through a wide portfolio of printers and presses (HP DesignJet, HP Latex, HP Indigo and HP PageWide Web Presses).
3D Printing & Digital Manufacturing offers a portfolio of additive manufacturing solutions and supplies to help customers succeed in their additive and digital manufacturing journey. HP offers complete solutions in collaboration with an ecosystem of partners.
Printing groups its global business capabilities into the following business units when reporting business performance:
Commercial Printing consists of office printing solutions, graphics solutions and 3D printing and digital manufacturing, excluding supplies;
Consumer Printing consists of home printing solutions, excluding supplies; and
Supplies comprises a set of highly innovative consumable products, ranging from ink and laser cartridges to media, graphics supplies, and 3D printing and digital manufacturing supplies, for recurring use in consumer and commercial hardware.
Corporate Investments includes certain business incubation and investment projects.
The accounting policies HP uses to derive segment results are substantially the same as those used by HP in preparing these financial statements. HP derives the results of the business segments directly from its internal management reporting system.
HP does not allocate certain operating expenses, which it manages at the corporate level, to its segments. These unallocated amounts include expenses such as certain corporate governance costs and infrastructure investments, stock-based compensation expense, restructuring and other charges, acquisition and divestiture charges, amortization of intangible assets and Russia exit charges.
Realignment
Effective the first quarter of fiscal 2023, HP realigned the Personal Systems business units reporting structure into Commercial PS and Consumer PS to align with its customer market segmentation. Additionally, in connection with certain other organizational realignments, some costs which were earlier reflected under “Corporate and unallocated cost and other” have now been reclassified to the Personal Systems and Printing segments.
HP has reflected these changes to its prior reporting periods on an as-if basis. The realignment change had no impact to previously reported segment net revenue, consolidated net revenue, net earnings or net earnings per share (“EPS”).
Segment Operating Results from Operations and the reconciliation to HP consolidated results were as follows:
 Three months ended July 31Nine months ended July 31
 2023202220232022
In millions
Net revenue:
Commercial PS$6,201 $6,956 $18,499 $22,600 
Consumer PS2,731 3,117 7,787 11,171 
Personal Systems8,932 10,073 26,286 33,771 
Supplies2,768 2,814 8,631 9,013 
Commercial Printing974 1,036 3,119 3,117 
Consumer Printing521 725 1,861 2,239 
Printing4,263 4,575 13,611 14,369 
Corporate Investments— 
Total segment net revenue13,196 14,648 39,902 48,141 
Other— — (1)(5)
Total net revenue$13,196 $14,648 $39,901 $48,136 
  
Earnings before taxes:
Personal Systems$592 $673 $1,498 $2,331 
Printing794 904 2,563 2,725 
Corporate Investments(32)(58)(103)(184)
Total segment earnings from operations1,354 1,519 3,958 4,872 
Corporate and unallocated costs and other(97)(76)(279)(373)
Stock-based compensation expense(91)(70)(353)(273)
Restructuring and other charges(75)(13)(416)(148)
Acquisition and divestiture charges(48)(31)(206)(83)
Amortization of intangible assets(91)(50)(262)(154)
Russia exit charges— (23)— (23)
Interest and other, net(16)(70)(357)(141)
Total earnings before taxes$936 $1,186 $2,085 $3,677