Goodwill and Intangible Assets

12 Months Ended

Oct. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Goodwill and Intangible Assets

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, 2018(1)	$	2,600	$	3,368	$	5,968
Acquisitions/adjustments	13		386		399
Foreign currency translation	—		5		5
Balance at October 31, 2019(1)	2,613		3,759		6,372
Acquisitions/adjustments	8		—		8
Foreign currency translation	—		—		—
Balance at October 31, 2020(1)	$	2,621	$	3,759	$	6,380

(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, 2020, our reporting units are consistent with the reportable segments identified in Note 2, “Segment Information”. There were no goodwill impairments in fiscal years 2020, 2019 and 2018. Personal Systems had a negative carrying amount of net assets as of October 31, 2020 and 2019, primarily as a result of a favorable cash conversion cycle.

Intangible Assets

HP’s acquired intangible assets were composed of:

	As of October 31, 2020						As of October 31, 2019
	Gross		Accumulated Amortization		Net		Gross		Accumulated Amortization		Net
	In millions
Customer contracts, customer lists and distribution agreements	$	382	$	149	$	233	$	385	$	122	$	263
Technology, patents and trade name	647		340		307		652		254		398
Total intangible assets	$	1,029	$	489	$	540	$	1,037	$	376	$	661

As of October 31, 2020, estimated future amortization expense related to intangible assets was as follows:

Fiscal year	In millions
2021	$	115
2022	115
2023	113
2024	79
2025	36
Thereafter	82
Total	$	540