Goodwill and Intangible Assets

12 Months Ended

Oct. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Goodwill and Intangible Assets

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

	Personal Systems		Printing		Corporate Investments		Total
	In millions
Balance at October 31, 2020(1)	$	2,621	$	3,759	$	—	$	6,380
Acquisitions/adjustments	284		14		102		400
Foreign currency translation	—		23		—		23
Balance at October 31, 2021(1)	2,905		3,796		102		6,803
Acquisitions/adjustments	1,790		—		16		1,806
Foreign currency translation	—		(68)		—		(68)
Balance at October 31, 2022(1)	$	4,695	$	3,728	$	118	$	8,541

(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, 2022, our reporting units are consistent with the reportable segments identified in Note 2, “Segment Information”. There were no goodwill impairments in fiscal years 2022, 2021 and 2020. Personal Systems had a negative carrying amount of net assets as of October 31, 2022, 2021 and 2020 primarily as a result of a favorable cash conversion cycle.

Intangible Assets

HP’s acquired intangible assets were composed of:

	As of October 31, 2022						As of October 31, 2021
	Gross		Accumulated Amortization		Net		Gross		Accumulated Amortization		Net
	In millions
Customer contracts, customer lists and distribution agreements	$	815	$	283	$	532	$	526	$	212	$	314
Technology and patents	1,763		551		1,212		814		425		389
Trade name and trademarks	214		25		189		95		14		81
Total intangible assets	$	2,792	$	859	$	1,933	$	1,435	$	651	$	784

For the fiscal year 2022, the increase in gross intangible assets was primarily due to intangible assets resulting from recent acquisitions. See Note 18, “Acquisitions” for detailed information.

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

	Weighted-Average Useful Life (in years)
Customer contracts and customer lists	13
Technology and patents	7
Trade name and trademarks	5

As of October 31, 2022, estimated future amortization expense related to intangible assets was as follows:

Fiscal year	In millions
2023	$	351
2024	318
2025	248
2026	239
2027	234
Thereafter	543
Total	$	1,933