Supplementary Financial Information

Accounts Receivable, net



	As of October 31
	2018			2017
	In millions
Accounts receivable	$	5,242		$	4,515
Allowance for doubtful accounts	(129		)	(101		)
	$	5,113		$	4,414

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



	As of October 31
	2018			2017			2016
	In millions
Balance at beginning of year	$	101		$	107		$	80
Provision for doubtful accounts	57			30			65
Deductions, net of recoveries	(29		)	(36		)	(38		)
Balance at end of year	$	129		$	101		$	107

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 derecognized from the Consolidated 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 the similar transactions and reported as a current liability in the Consolidated Balance Sheets. The recourse obligations as of October 31, 2018 and 2017 were not material. The costs associated with the sales of trade receivables for fiscal year 2018, 2017 and 2016 were not material.

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



	As of October 31
	2018			2017			2016
	In millions
Balance at beginning of year ⁽¹⁾	$	147		$	149		$	93
Trade receivables sold	10,224			9,553			8,222
Cash receipts	(10,202		)	(9,562		)	(8,160		)
Foreign currency and other	(4		)	7			(6		)
Balance at end of year ⁽¹⁾	$	165		$	147		$	149

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

Inventory



	As of October 31
	2018		2017
	In millions
Finished goods	$	4,019	$	3,857
Purchased parts and fabricated assemblies	2,043		1,929
	$	6,062	$	5,786

Other Current Assets



	As of October 31
	2018		2017
	In millions
Value-added taxes receivable	$	865	$	857
Available-for-sale investments⁽¹⁾	711		1,149
Supplier and other receivables	2,025		1,891
Prepaid and other current assets	1,445		1,224
	$	5,046	$	5,121


⁽¹⁾	See Note 9, “Fair Value” and Note 10, “Financial Instruments” for detailed information.

Property, Plant and Equipment, Net



	As of October 31
	2018			2017
	In millions
Land, buildings and leasehold improvements	$	1,893		$	2,082
Machinery and equipment, including equipment held for lease	4,216			3,876
	6,109			5,958
Accumulated depreciation	(3,911		)	(4,080		)
	$	2,198		$	1,878

Depreciation expense was $448 million, $353 million and $316 million in fiscal years 2018, 2017 and 2016, respectively.

Other Non-Current Assets



	As of October 31
	2018		2017
	In millions
Tax indemnifications receivable⁽¹⁾	$	953	$	1,695
Deferred tax assets⁽²⁾	2,431		342
Other⁽³⁾⁽⁴⁾	1,685		1,058
	$	5,069	$	3,095


⁽¹⁾	During the twelve months ended October 31, 2018, HP adjusted $676 million of indemnification receivable, pursuant to resolution of various income tax audit settlements. See Note 15, “Guarantees, Indemnifications and Warranties” for further information.


(2)	See Note 6, “Taxes on Earnings” for detailed information.


(3)	Includes Intangible assets of $453 million as at October 31, 2018, primarily from the acquisition of Samsung’s printer business, see Note 8, “Goodwill and Intangible Assets” for further information.


(4)	Includes marketable equity securities and mutual funds classified as available-for-sale investments of $53 million and $61 million at October 31, 2018 and 2017, respectively.

Other Accrued Liabilities



	As of October 31
	2018		2017
	In millions
Other accrued taxes	$	982	$	895
Warranty	673		660
Deferred revenue	1,095		1,012
Sales and marketing programs	2,758		2,441
Other	1,868		1,945
	$	7,376	$	6,953

Other Non-Current Liabilities



	As of October 31
	2018		2017
	In millions
Pension, post-retirement, and post-employment liabilities	$	1,645	$	1,999
Deferred tax liability⁽¹⁾	100		1,410
Tax liability⁽¹⁾	2,063		2,005
Deferred revenue	1,005		921
Other	793		827
	$	5,606	$	7,162


⁽¹⁾	See Note 6, “Taxes on Earnings” for detailed information.

Interest and other, net



	For the fiscal years ended October 31
	2018			2017			2016
	In millions
Interest expense on borrowings	$	(312	)	$	(309	)	$	(273	)
Loss on extinguishment of debt	(126		)	—			—
Tax indemnifications⁽¹⁾	(662		)	47			472
Other, net	49			19			13
	$	(1,051	)	$	(243	)	$	212


⁽¹⁾	For the fiscal year ended October 31, 2018, includes an adjustment of $676 million of indemnification receivable, pursuant to resolution of various income tax audit settlements. See Note 15, “Guarantees, Indemnifications and Warranties” for further information.