Goodwill and Intangible Assets

12 Months Ended

Oct. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

Goodwill allocated to HP’s reportable segments and changes in the carrying amount of goodwill were as follows:



	Personal Systems		Printing		Total
	In millions
Balance at October 31, 2017⁽¹⁾	$	2,593	$	3,029	$	5,622
Acquisitions	7		339		346
Balance at October 31, 2018⁽¹⁾	2,600		3,368		5,968
Acquisitions	13		386		399
Foreign currency translation	—		5		5
Balance at October 31, 2019⁽¹⁾	$	2,613	$	3,759	$	6,372


⁽¹⁾	Goodwill is net of accumulated impairment losses of $0.8 billion related to Corporate Investments.

Goodwill is tested for impairment at the reporting unit level. As of October 31, 2019, our reporting units are consistent with the reportable segments identified in Note 2, “Segment Information”. There were no goodwill impairments in fiscal years 2019, 2018 and 2017. Personal Systems had a negative carrying amount of net assets as of October 31, 2019 and 2018, primarily as a result of a favorable cash conversion cycle.

Intangible Assets

HP’s acquired intangible assets were composed of:



	As of October 31, 2019						As of October 31, 2018
	Gross		Accumulated Amortization		Net		Gross		Accumulated Amortization		Net
	In millions
Customer contracts, customer lists and distribution agreements	$	385	$	122	$	263	$	112	$	88	$	24
Technology, patents and trade name	652		254		398		601		172		429
Total intangible assets	$	1,037	$	376	$	661	$	713	$	260	$	453

For fiscal year 2019, the increase in gross intangible assets was primarily due to intangible assets resulting from the acquisition of the Apogee group.

The weighted-average useful lives of intangible assets acquired during the period are as follows:



	Weighted-Average Useful Life
Customer contracts, customer lists and distribution agreements	10
Technology, patents and trade name	7

As of October 31, 2019, estimated future amortization expense related to intangible assets was as follows



Fiscal year	In millions
2020	$	114
2021	116
2022	116
2023	114
2024	80
Thereafter	121
Total	$	661