Supplementary Financial Information

3 Months Ended

Jan. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Accounts Receivable

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


	Three months ended January 31, 2022
	In millions
Balance at beginning of period	$	111
Benefit of allowance for credit losses	(7)
Deductions, net of recoveries	(1)
Balance at end of period	$	103

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 similar transactions and reported as a current liability in the Consolidated Condensed Balance Sheets. The recourse obligations as of January 31, 2022 and October 31, 2021 and the costs associated with the sale of trade receivables for the three months ended January 31, 2022 and 2021 were not material.

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


	Three months ended January 31
	2022		2021
	In millions
Balance at beginning of period(1)	$	131	$	188
Trade receivables sold	2,967		3,544
Cash receipts	(2,973)		(3,534)
Foreign currency and other	(4)		9
Balance at end of period(1)	$	121	$	207

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

Inventory


	As of
	January 31, 2022		October 31, 2021
	In millions
Finished goods	$	5,695	$	4,532
Purchased parts and fabricated assemblies	3,323		3,398
	$	9,018	$	7,930

Other Current Assets


	As of
	January 31, 2022		October 31, 2021
	In millions
Supplier and other receivables	$	2,441	$	2,333
Prepaid and other current assets	1,340		1,087
Value-added taxes receivable	1,054		1,005
Available-for-sale investments	5		5
	$	4,840	$	4,430

Property, Plant and Equipment, net


	As of
	January 31, 2022		October 31, 2021
	In millions
Land, buildings and leasehold improvements	$	2,169	$	2,166
Machinery and equipment, including equipment held for lease	5,411		5,307
	7,580		7,473
Accumulated depreciation	(4,961)		(4,927)
	$	2,619	$	2,546

Other Non-Current Assets


	As of
	January 31, 2022		October 31, 2021
	In millions
Deferred tax assets	$	2,886	$	2,917
Right-of-use assets from operating leases, net	1,174		1,192
Prepaid pension asset	804		766
Intangible assets	716		784
Deposits and prepaid	690		734
Other	770		698
	$	7,040	$	7,091

Other Current Liabilities


	As of
	January 31, 2022		October 31, 2021
	In millions
Sales and marketing programs	$	3,187	$	3,179
Other accrued taxes	1,244		1,227
Deferred revenue	1,234		1,277
Employee compensation and benefit	1,103		1,627
Warranty	677		731
Operating lease liabilities	358		350
Tax liability	277		296
Other	3,360		3,228
	$	11,440	$	11,915

Other Non-Current Liabilities


	As of
	January 31, 2022		October 31, 2021
	In millions
Deferred revenue	$	1,119	$	1,099
Pension, post-retirement, and post-employment liabilities	993		1,041
Operating lease liabilities	911		936
Tax liability	790		830
Deferred tax liability	64		57
Other	796		815
	$	4,673	$	4,778

Interest and other, net


	Three months ended January 31
	2022		2021
	In millions
Interest expense on borrowings	$	(61)	$	(63)
Other, net	29		38
	$	(32)	$	(25)

Net revenue by region


	Three months ended January 31
	2022		2021
	In millions
Americas	$	6,859	$	6,894
Europe, Middle East and Africa	5,936		5,497
Asia-Pacific and Japan	4,233		3,255
Total net revenue	$	17,028	$	15,646

Value of Remaining Performance Obligations

As of January 31, 2022, the estimated value of transaction price allocated to remaining performance obligations was $3.7 billion. HP expects to recognize approximately $1.7 billion of the unearned amount in next 12 months and $2.0 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.

Contract Liabilities

As of January 31, 2022 and October 31, 2021, HP’s contract liabilities balances were $2.3 billion, respectively, included in Other current liabilities and Other non-current liabilities in the Consolidated Condensed Balance Sheets.

The contract liabilities balance remained flat as of January 31, 2022, driven by sales of fixed-price support and maintenance services, partially offset by $0.4 billion of revenue recognized that was included in the contract liabilities balance as of October 31, 2021.