Supplementary Financial Information

Accounts Receivable, net



	As of
	January 31, 2019			October 31, 2018
	In millions
Accounts receivable	$	5,222		$	5,242
Allowance for doubtful accounts	(109		)	(129		)
	$	5,113		$	5,113

The allowance for doubtful accounts related to accounts receivable and changes were as follows:



	Three months ended January 31, 2019
	In millions
Balance at beginning of period	$	129
Provision for doubtful accounts	8
Deductions, net of recoveries	(28		)
Balance at end of period	$	109

HP has third-party arrangements, consisting of revolving short-term financing, which provide liquidity to certain partners in order to facilitate their working capital requirements. These financing arrangements, which in certain circumstances may contain partial recourse, result in a transfer of HP’s receivables and risk to the third party. As these transfers qualify as true sales under the applicable accounting guidance, the receivables are derecognized from the Consolidated Condensed Balance Sheets upon transfer, and HP receives a payment for the receivables from the third party within a mutually agreed upon time period. For arrangements involving an element of recourse, the recourse obligation is measured using market data from the similar transactions and reported as a current liability in the Consolidated Condensed Balance Sheets. The recourse obligations as of January 31, 2019 and October 31, 2018 were not material. The costs associated with the sales of trade receivables for the three months ended January 31, 2019 and 2018 were not material.

The following is a summary of the activity under these arrangements:



	Three months ended January 31
	2019			2018
	In millions
Balance at beginning of period⁽¹⁾	$	165		$	147
Trade receivables sold	3,036			2,936
Cash receipts	(3,010		)	(2,921		)
Foreign currency and other	3			10
Balance at end of period⁽¹⁾	$	194		$	172


⁽¹⁾	Amounts outstanding from third parties reported in Accounts Receivable in the Consolidated Condensed Balance Sheets.

Inventory



	As of
	January 31, 2019		October 31, 2018
	In millions
Finished goods	$	3,797	$	4,019
Purchased parts and fabricated assemblies	1,852		2,043
	$	5,649	$	6,062

Other Current Assets



	As of
	January 31, 2019		October 31, 2018
	In millions
Value-added taxes receivable	$	881	$	865
Available-for-sale investments⁽¹⁾	425		711
Supplier and other receivables	2,217		2,025
Prepaid and other current assets⁽²⁾	1,284		1,445
	$	4,807	$	5,046


⁽¹⁾	See Note 8, “Financial Instruments” for detailed information.


⁽²⁾	As of January 31, 2019, deferred contract fulfillment and acquisition costs balances were $38 million and $36 million, respectively. For the three months ended January 31, 2019, HP amortized $21 million of these costs.

See note below “Other Non-Current Assets” for deferred contract fulfillment and acquisition costs.

Property, Plant and Equipment, net



	As of
	January 31, 2019			October 31, 2018
	In millions
Land, buildings and leasehold improvements	$	1,888		$	1,893
Machinery and equipment, including equipment held for lease	4,402			4,216
	6,290			6,109
Accumulated depreciation	(3,978		)	(3,911		)
	$	2,312		$	2,198

Other Non-Current Assets



	As of
	January 31, 2019		October 31, 2018
	In millions
Tax indemnifications receivable	$	866	$	953
Deferred tax assets	2,329		2,431
Intangible assets⁽¹⁾	724		453
Other⁽²⁾⁽³⁾	980		1,232
	$	4,899	$	5,069


⁽¹⁾	See Note 15, “Intangible Assets” for detailed information.


⁽²⁾	Includes marketable equity securities and mutual funds classified as available-for-sale investments of $54 million and $53 million as of January 31, 2019 and October 31, 2018, respectively.


⁽³⁾	See note (2) on deferred contract fulfillment and acquisition costs under “Other Current Assets” table above.

Other Accrued Liabilities



	As of
	January 31, 2019		October 31, 2018
	In millions
Other accrued taxes	$	919	$	982
Warranty	675		673
Deferred revenue⁽¹⁾	1,180		1,095
Sales and marketing programs	3,020		2,758
Other	2,603		1,868
	$	8,397	$	7,376

⁽¹⁾

As of January 31, 2019 and October 31, 2018, HP’s contract liabilities balances were $2.0 billion and $1.9 billion, respectively. The increase in the contract liabilities balance for the three months ended January 31, 2019 is primarily driven by sales of fixed price support and maintenance services, partially offset by $308 million of revenue recognized that were included in the opening contract liabilities balance as of November 1, 2018.

Other Non-Current Liabilities



	As of
	January 31, 2019		October 31, 2018
	In millions
Pension, post-retirement, and post-employment liabilities	$	1,619	$	1,645
Deferred tax liability	64		100
Tax liability	1,977		2,063
Deferred revenue⁽¹⁾	986		1,005
Other	776		793
	$	5,422	$	5,606


⁽¹⁾	See note (1) on contract liabilities under “Other Accrued Liabilities” table above.

Interest and Other, net



	Three months ended January 31
	2019			2018
	In millions
Interest expense on borrowings	$	(64	)	$	(87	)
Other, net	38			79
	$	(26	)	$	(8	)

Net revenue by region



	Three months ended January 31
	2019		2018
	In millions
Americas	$	6,032	$	6,235
Europe, Middle East and Africa	5,358		5,221
Asia-Pacific and Japan	3,320		3,061
Total net revenue	$	14,710	$	14,517

Value of Remaining Performance Obligations

As of January 31, 2019, the estimated value of transaction price allocated to remaining performance obligations was $4.5 billion. HP expects to recognize approximately $1.8 billion of the unearned amount in next 12 months and $2.7 billion thereafter.

HP has elected the practical expedients and accordingly does not disclose the aggregate amount of the transaction price allocated to remaining performance obligations if:


•	the contract has an original expected duration of one year or less; or


•	the revenue from the performance obligation is recognized over time on an as-invoiced basis when the amount corresponds directly with the value to the customer; or


•	the portion of the transaction price that is variable in nature is allocated entirely to a wholly unsatisfied performance obligation.

The remaining performance obligations are subject to change and may be affected by various factors, such as termination of contracts, contract modifications and adjustment for currency.