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Acquisitions, Goodwill and Intangible Assets (Tables)
12 Months Ended
Oct. 31, 2014
Acquisitions, Goodwill and Intangible Assets  
Goodwill

 

                                                                                                                                                                                    

 

 

Personal
Systems

 

Printing

 

Enterprise
Group

 

Enterprise
Services(3) 

 

Software

 

HP
Financial
Services

 

Corporate
Investments

 

Total

 

 

 

In millions

 

Balance at October 31, 2012(1)(2)

 

$

2,588

 

$

2,591

 

$

16,825

 

$

 

$

8,921

 

$

144

 

$

 

$

31,069

 

Goodwill acquired during the period

 

 

 

 

 

 

 

 

112

 

 

 

 

 

 

 

 

112

 

Goodwill adjustments

 

 

 

 

 

 

39

 

 

(15

)

 

(81

)

 

 

 

 

 

(57

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at October 31, 2013(1)(2)

 

$

2,588

 

$

2,591

 

$

16,864

 

$

97

 

$

8,840

 

$

144

 

$

 

$

31,124

 

Goodwill acquired during the period

 

 

 

 

 

 

 

 

 

 

12

 

 

 

 

 

 

12

 

Goodwill adjustments

 

 

 

 

 

 

3

 

 

 

 

 

 

 

 

 

 

3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at October 31, 2014(1)

 

$

2,588

 

$

2,591

 

$

16,867

 

$

97

 

$

8,852

 

$

144

 

$

 

$

31,139

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


(1)

Goodwill is net of accumulated impairment losses of $14.5 billion. Of that amount, $8.0 billion relates to the ES segment, $5.7 billion relates to Software, and the remaining $0.8 billion relates to Corporate Investments.

(2)

Effective at the beginning of its first quarter of fiscal 2014, HP implemented certain organizational changes to align its segment financial reporting more closely with its current business structure. As a result of these organizational realignments, HP transferred $126 million of goodwill related to the transfer of the Printing spare and replacement parts business from the EG segment to the Printing segment, $48 million of goodwill related to the transfer of the Personal Systems spare and replacement parts business from the EG segment to the Personal Systems segment, $42 million of goodwill related to the transfer of the Personal Systems trade and warranty support business from the EG segment to the Personal Systems segment and $22 million of goodwill related to the transfer of the HP Exstream business from the Printing segment to the Software segment. See Note 2 for a full description of the segment realignments.

(3)

Goodwill relates to the MphasiS Limited reporting unit.

 

Intangible Assets

 

                                                                                                                                                                                    

 

 

As of October 31, 2014

 

As of October 31, 2013

 

 

 

Gross

 

Accumulated
Amortization

 

Accumulated
Impairment
Loss

 

Net

 

Gross

 

Accumulated
Amortization

 

Accumulated
Impairment
Loss

 

Net

 

 

 

In millions

 

Customer contracts, customer lists and distribution agreements

 

$

5,289

 

$

(3,228

)

$

(856

)

$

1,205

 

$

5,321

 

$

(2,709

)

$

(856

)

$

1,756

 

Developed and core technology and patents

 

 

4,266

 

 

(1,301

)

 

(2,138

)

 

827

 

 

5,331

 

 

(1,966

)

 

(2,138

)

 

1,227

 

Trade name and trade marks

 

 

1,693

 

 

(261

)

 

(1,336

)

 

96

 

 

1,730

 

 

(211

)

 

(1,336

)

 

183

 

In-process research and development

 

 

 

 

 

 

 

 

 

 

3

 

 

 

 

 

 

3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total intangible assets

 

$

11,248

 

$

(4,790

)

$

(4,330

)

$

2,128

 

$

12,385

 

$

(4,886

)

$

(4,330

)

$

3,169

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Schedule of weighted-average useful lives of intangible assets at the time of acquisition

 

                                                                                                                                                                                    

 

 

As of
October 31, 2014

 

Finite-Lived Intangible Assets

 

Weighted-Average
Useful Lives

 

 

 

In years

 

Customer contracts, customer lists and distribution agreements

 

 

 

Developed and core technology and patents

 

 

 

Trade name and trade marks

 

 

 

 

Estimated future amortization expense related to finite-lived purchased intangible assets

        As of October 31, 2014, estimated future amortization expense related to finite-lived intangible assets was as follows:

                                                                                                                                                                                    

Fiscal year

 

In millions

 

2015

 

$

872 

 

2016

 

 

653 

 

2017

 

 

244 

 

2018

 

 

147 

 

2019

 

 

110 

 

Thereafter

 

 

102 

 

 

 

 

 

Total

 

$

2,128