Balance Sheet Details

12 Months Ended

Oct. 31, 2021

Balance Sheet Related Disclosures [Abstract]

Balance sheet details were as follows:

Cash, Cash Equivalents and Restricted Cash


	As of October 31,
	2021		2020
	In millions
Cash and cash equivalents	$	3,996	$	4,233
Restricted cash	336		388
Total	$	4,332	$	4,621

Accounts Receivable, Net


	As of October 31,
	2021		2020
	In millions
Unbilled receivable	$	206	$	205
Accounts receivable	3,796		3,227
Allowances	(23)		(46)
Total	$	3,979	$	3,386

The allowance for doubtful accounts related to accounts receivable and changes therein were as follows:


	As of October 31,
	2021		2020		2019
	In millions
Balance at beginning of year	$	46	$	31	$	39
Provision for credit losses	11		29		9
Write offs, net of recoveries	(34)		(14)		(17)
Balance at end of year	$	23	$	46	$	31

The Company has third-party revolving short-term financing arrangements intended to facilitate the working capital requirements of certain customers. The Company recorded an obligation of $65 million, $75 million and $80 million in Notes payable and short-term borrowings in its Consolidated Balance Sheets as of October 31, 2021, 2020 and 2019, respectively, related to the trade receivables sold and collected from the third-party for which the revenue recognition was deferred. For arrangements involving an element of recourse, the fair value of the recourse obligation is measured using market data from similar transactions and reported as a current liability in Other accrued liabilities in the Consolidated Balance Sheets.

The activity related to Hewlett Packard Enterprise's revolving short-term financing arrangements was as follows:


	As of October 31,
	2021		2020		2019
	In millions
Balance at beginning of period(1)	$	122	$	(10)	$	166
Trade receivables sold	4,190		3,897		4,533
Cash receipts	(3,975)		(3,768)		(4,710)
Foreign currency and other	(1)		3		1
Balance at end of period(1)	$	336	$	122	$	(10)

(1)Beginning and ending balances represent amounts for trade receivables sold but not yet collected. The ending credit balance as of October 31, 2019 represents credit memos issued but not applied to trade receivables prior to cash remittance.

Inventory


	As of October 31,
	2021		2020
	In millions
Finished goods	$	1,684	$	1,197
Purchased parts and fabricated assemblies	2,827		1,477
Total	$	4,511	$	2,674

Property, Plant and Equipment


	As of October 31,
	2021		2020
	In millions
Land	$	76	$	89
Buildings and leasehold improvements	1,751		1,886
Machinery and equipment, including equipment held for lease	9,735		9,624
	11,562		11,599
Accumulated depreciation	(5,949)		(5,974)
Total	$	5,613	$	5,625

Depreciation expense was $2.2 billion, $2.2 billion and $2.3 billion in fiscal 2021, 2020 and 2019, respectively.

Long-Term Financing Receivables and Other Assets


	As of October 31,
	2021		2020
	In millions
Financing receivables, net	$	5,038	$	5,110
ROU assets	884		930
Deferred tax assets	2,023		1,778
Prepaid pension	1,898		1,046
Other	1,827		1,680
Total	$	11,670	$	10,544

Other Accrued Liabilities


	As of October 31,
	2021		2020
	In millions
Value-added and property taxes	$	782	$	842
Warranty	163		192
Sales and marketing programs	977		1,022
Operating lease liabilities	192		188
Contract manufacturer liabilities	709		383
Other	1,663		1,638
Total	$	4,486	$	4,265

Other Non-Current Liabilities


	As of October 31,
	2021		2020
	In millions
Pension, post-retirement, and post-employment	$	1,496	$	1,856
Deferred revenue	2,972		2,785
Taxes on earnings	365		447
Operating lease liabilities	938		898
Other	1,328		1,009
Total	$	7,099	$	6,995

Contract Liabilities and Remaining Performance Obligations

Contract liabilities consist of deferred revenue. The aggregate balance of current and non-current deferred revenue was $6.4 billion and $6.2 billion as of October 31, 2021 and 2020, respectively. During fiscal 2021, approximately $3.2 billion of deferred revenue as of October 31, 2020 was recognized as revenue.

Revenue allocated to remaining performance obligations represents contract work that has not yet been performed and does not include contracts where the customer is not committed. Remaining performance obligations estimates are subject to change and are affected by several factors, including contract terminations, changes in the scope of contracts, adjustments for revenue that has not materialized and adjustments for currency.

Remaining performance obligations consist of deferred revenue. As of October 31, 2021, the aggregate amount of remaining performance obligations was $6.4 billion. The Company expect to recognize approximately 53% of this amount as revenue over the next twelve months with the remainder to be recognized thereafter.

Costs to obtain a Contract

As of October 31, 2021, the current and non-current portions of the capitalized costs to obtain a contract were $64 million and $95 million, respectively. As of October 31, 2020, the current and non-current portions of the capitalized costs to obtain a contract were $54 million and $76 million, respectively. The current and non-current portions of the capitalized costs to obtain a contract were included in Other current assets, and Long-term financing receivables and other assets, respectively, in the Consolidated Balance Sheets. In fiscal 2021 and 2020, the Company amortized $73 million and $58 million, respectively, of the capitalized costs to obtain a contract which are included in Selling, general and administrative expense in the Consolidated Statements of Earnings.