HP 2013 Annual Report Download - page 118

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
Notes to Consolidated Financial Statements (Continued)
Note 7: Restructuring
Summary of Restructuring Plans
HP’s restructuring activities summarized by plan for the twelve months ended October 31, 2013
were as follows:
As of October 31, 2013
Fiscal Other Total Total
Balance, Year Adjustments Balance, Costs Expected
October 31, 2013 Cash and Non-Cash October 31, Incurred Costs to Be
2012 Charges Payments Settlements 2013 to Date Incurred
In millions
Fiscal 2012 Plan
Severance and EER ....... $ 597 $1,053 $(701) $(4) $ 945 $3,036 $3,500
Infrastructure and other .... 11 141 (112) — 40 247 600
Total 2012 Plan .......... 608 1,194 (813) (4) 985 3,283 4,100
Fiscal 2010 acquisitions ...... 10 (10) — — — 91 91
Fiscal 2010 ES Plan:
Severance .............. 227 (189) (36) 8 10 434 434
Infrastructure ........... 1 — — — 1 369 369
Total ES Plan ........... 228 (189) (36) 8 11 803 803
Fiscal 2008 HP/EDS Plan:
Severance .............. — — — — — 2,195 2,195
Infrastructure ........... 181 (5) (55) — 121 1,070 1,074
Total HP/EDS Plan ....... 181 (5) (55) — 121 3,265 3,269
Total restructuring plans ..... $1,027 $ 990 $(904) $ 4 $1,117 $7,442 $8,263
At October 31, 2013 and 2012, HP included the short-term portion of the restructuring liability of
$901 million and $771 million, respectively, in Accrued restructuring, and the long-term portion of
$216 million and $256 million, respectively, in Other liabilities in the accompanying Consolidated
Balance Sheets. The timing of associated cash payments is dependent upon the type of restructuring
charge and can extend over a multi-year period.
Fiscal 2012 Restructuring Plan
On May 23, 2012, HP adopted a multi-year restructuring plan (the ‘‘2012 Plan’’) designed to
simplify business processes, accelerate innovation and deliver better results for customers, employees
and stockholders. As of July 31, 2013, HP estimated that it would eliminate approximately 29,000
positions in connection with the 2012 Plan through fiscal year 2014, with a portion of those employees
exiting the company as part of voluntary enhanced early retirement (‘‘EER’’) programs in the United
States and in certain other countries. The majority of the U.S. EER program was funded through the
HP Pension Plan. As of that same date, HP estimated it would recognize approximately $3.6 billion of
total costs in connection with the 2012 Plan. HP also estimated that the number of positions ultimately
eliminated and the total expense of the 2012 Plan could vary by as much as 15% from these estimates.
Due to continued market and business pressures, as of October 31, 2013, HP expects to eliminate an
additional 15% of those 29,000 positions, or a total of approximately 34,000 positions, and to record an
additional 15% of that $3.6 billion in total costs, or approximately $4.1 billion in aggregate charges. HP
expects to record these charges through the end of HP’s 2014 fiscal year as the accounting recognition
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