Supplementary Financial Information

3 Months Ended

Jan. 31, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Cash, cash equivalents and restricted cash


	As of
	January 31, 2023		October 31, 2022
	In millions
Cash and cash equivalents	$	1,405	$	3,145
Restricted cash (1)	364		—
	$	1,769	$	3,145

(1) Restricted Cash is related to amounts collected and held on behalf of a third party for trade receivables previously sold.

Accounts Receivable

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


	Three months ended January 31, 2023
	In millions
Balance at beginning of period	$	107
Benefit of allowance for credit losses	(16)
Deductions, net of recoveries	(2)
Balance at end of period	$	89

HP utilizes certain third-party arrangements in the normal course of business as part of HPs cash and liquidity management and also to 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, 2023 and October 31, 2022 and the costs associated with the sale of trade receivables for the three months ended January 31, 2023 and 2022 were not material.

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


	Three months ended January 31
	2023		2022
	In millions
Balance at beginning of period(1)	$	185	$	131
Trade receivables sold	3,679		2,967
Cash receipts	(3,753)		(2,973)
Foreign currency and other	17		(4)
Balance at end of period(1)	$	128	$	121

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

Inventory


	As of
	January 31, 2023		October 31, 2022
	In millions
Finished goods	$	4,146	$	4,885
Purchased parts and fabricated assemblies	3,198		2,710
	$	7,344	$	7,595

Other Current Assets


	As of
	January 31, 2023		October 31, 2022
	In millions
Prepaid and other current assets	$	1,685	$	2,170
Supplier and other receivables	1,279		1,377
Value-added taxes receivable	916		968

	$	3,880	$	4,515

Property, Plant and Equipment, net


	As of
	January 31, 2023		October 31, 2022
	In millions
Land, buildings and leasehold improvements	$	2,259	$	2,255
Machinery and equipment, including equipment held for lease	5,381		5,337
	7,640		7,592
Accumulated depreciation	(4,876)		(4,818)
	$	2,764	$	2,774

Other Non-Current Assets


	As of
	January 31, 2023		October 31, 2022
	In millions
Deferred tax assets	$	2,453	$	2,159
Intangible assets	1,858		1,933
Right-of-use assets	1,242		1,236
Deposits and prepaid	564		588
Prepaid pension asset	548		565
Other	822		990
	$	7,487	$	7,471

Other Current Liabilities


	As of
	January 31, 2023		October 31, 2022
	In millions
Sales and marketing programs	$	3,022	$	2,967
Deferred revenue	1,379		1,393
Other accrued taxes	1,059		1,064
Employee compensation and benefit	803		954
Warranty	609		619
Operating lease liabilities	431		405
Tax liability	270		286
Other	3,546		2,963
	$	11,119	$	10,651

Other Non-Current Liabilities


	As of
	January 31, 2023		October 31, 2022
	In millions
Deferred revenue	$	1,187	$	1,171
Tax liability	925		931
Operating lease liabilities	903		875
Pension, post-retirement, and post-employment liabilities	602		600
Deferred tax liability	52		121
Other	819		858
	$	4,488	$	4,556

Interest and other, net


	Three months ended January 31
	2023		2022
	In millions
Interest expense on borrowings	$	(143)	$	(61)
Loss on extinguishment of debt	(8)		—
Non-operating retirement-related credits	11		36
Other, net	(41)		(7)
	$	(181)	$	(32)

Net revenue by region


	Three months ended January 31
	2023		2022
	In millions
Americas	$	5,773	$	6,859
Europe, Middle East and Africa	4,640		5,936
Asia-Pacific and Japan	3,415		4,233
Total net revenue	$	13,828	$	17,028

Value of Remaining Performance Obligations

As of January 31, 2023, the estimated value of transaction price allocated to remaining performance obligations was $3.6 billion. HP expects to recognize approximately $1.7 billion of the unearned amount in next 12 months and $1.9 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, 2023 and October 31, 2022, HP’s contract liabilities balances were $2.5 billion respectively, and 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, 2023, driven by sales of fixed-price support and maintenance services, partially offset by $0.5 billion of revenue recognized that was included in the contract liabilities balance as of October 31, 2022.