Supplementary Financial Information

3 Months Ended

Jan. 31, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Accounts Receivable, net



	As of
	January 31, 2020			October 31, 2019
	In millions
Accounts receivable	$	4,955		$	6,142
Allowance for doubtful accounts	(98		)	(111		)
	$	4,857		$	6,031

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



	Three months ended January 31, 2020
	In millions
Balance at beginning of period	$	111
Provision for doubtful accounts	(2		)
Deductions, net of recoveries	(11		)
Balance at end of period	$	98

HP has third-party arrangements, consisting of revolving short-term financing, which provide liquidity to certain partners 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 de-recognized 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, 2020 and October 31, 2019 were not material. The costs associated with the sales of trade receivables for the three months ended January 31, 2020 and 2019 were not material.

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



	Three months ended January 31
	2020			2019
	In millions
Balance at beginning of period⁽¹⁾	$	235		$	165
Trade receivables sold	2,857			3,036
Cash receipts	(3,004		)	(3,010		)
Foreign currency and other	—			3
Balance at end of period⁽¹⁾	$	88		$	194


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

Inventory



	As of
	January 31, 2020		October 31, 2019
	In millions
Finished goods	$	3,061	$	3,855
Purchased parts and fabricated assemblies	1,885		1,879
	$	4,946	$	5,734

Other Current Assets



	As of
	January 31, 2020		October 31, 2019
	In millions
Supplier and other receivables	$	1,272	$	1,951
Prepaid and other current assets	1,022		967
Value-added taxes receivable	887		957
Available-for-sale investments⁽¹⁾	288		—
	$	3,469	$	3,875


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

Property, Plant and Equipment, net



	As of
	January 31, 2020			October 31, 2019
	In millions
Land, buildings and leasehold improvements	$	1,988		$	1,977
Machinery and equipment, including equipment held for lease	5,161			5,060
	7,149			7,037
Accumulated depreciation	(4,393		)	(4,243		)
	$	2,756		$	2,794

Other Non-Current Assets



	As of
	January 31, 2020		October 31, 2019
	In millions
Deferred tax assets	$	2,477	$	2,620
Right-of-use assets from operating leases, net⁽¹⁾	1,112		—
Intangible assets	632		661
Tax indemnifications receivable	40		42
Other⁽²⁾	775		801
	$	5,036	$	4,124


⁽¹⁾	See Note 1, “Basis of Presentation” and Note 14, “Leases” for detailed information.


⁽²⁾	Includes marketable equity securities and mutual funds classified as available-for-sale investments of $60 million and $56 million as of January 31, 2020 and October 31, 2019, respectively. See Note 8, “Financial Instruments” for detailed information.

Other Current Liabilities



	As of
	January 31, 2020		October 31, 2019
	In millions
Sales and marketing programs	$	3,215	$	3,361
Deferred revenue	1,148		1,178
Other accrued taxes	829		1,060
Employee compensation and benefit	739		1,103
Warranty	655		663
Operating lease liabilities⁽¹⁾	255		—
Tax liability	241		237
Other	3,054		2,541
	$	10,136	$	10,143


⁽¹⁾	See Note 1, “Basis of Presentation” and Note 14, “Leases” for detailed information.

Other Non-Current Liabilities



	As of
	January 31, 2020		October 31, 2019
	In millions
Pension, post-retirement, and post-employment liabilities	$	1,682	$	1,762
Operating lease liabilities⁽¹⁾	920		—
Deferred revenue	1,058		1,069
Tax liability	853		848
Deferred tax liability	59		60
Other	919		848
	$	5,491	$	4,587

⁽¹⁾See Note 1, “Basis of Presentation” and Note 14, “Leases” for detailed information.

Interest and other, net



	Three months ended January 31
	2020			2019
	In millions
Interest expense on borrowings	$	(58	)	$	(64	)
Other, net	71			38
	$	13		$	(26	)

Net revenue by region



	Three months ended January 31
	2020		2019
	In millions
Americas	$	5,959	$	6,032
Europe, Middle East and Africa	5,232		5,358
Asia-Pacific and Japan	3,427		3,320
Total net revenue	$	14,618	$	14,710

Value of Remaining Performance Obligations

As of January 31, 2020, the estimated value of transaction price allocated to remaining performance obligations was $4.5 billion. HP expects to recognize approximately $1.9 billion of the unearned amount in next 12 months and $2.6 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.

Costs of Obtaining Contracts

As of January 31, 2020, deferred contract fulfillment and acquisition costs balances were $51 million and $32 million, respectively, included in Other Current Assets and Other Non-Current Assets in the Consolidated Condensed Balance Sheet. During the three months ended January 31, 2020, the Company amortized $24 million of these costs.

Contract Liabilities

As of January 31, 2020 and October 31, 2019, HP’s contract liabilities balances were $2.2 billion and $2.1 billion, respectively, included in Other Current Liabilities and Other Non-Current Liabilities in the Consolidated Condensed Balance Sheet.

The increase in the contract liabilities balance for the three months ended January 31, 2020 is primarily driven by sales of fixed price support and maintenance services, partially offset by $361 million of revenue recognized that were included in the opening contract liabilities balance as of October 31, 2019.