Goodwill and Intangible Assets

Goodwill

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



	Personal Systems		Printing		Total
	In millions
Balance at October 31, 2016⁽¹⁾	$	2,593	$	3,029	$	5,622
Acquisitions	—		—		—
Balance at October 31, 2017⁽¹⁾	2,593		3,029		5,622
Acquisitions	7		339		346
Balance at October 31, 2018⁽¹⁾	$	2,600	$	3,368	$	5,968


⁽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, 2018, our reporting units are consistent with the reportable segments identified in Note 2, “Segment Information”. There were no goodwill impairments in fiscal years 2018, 2017 and 2016. Personal Systems had a negative carrying amount of net assets as of October 31, 2018 and 2017, primarily as a result of a favorable cash conversion cycle. HP will continue to evaluate goodwill on an annual basis as of the first day of its fourth fiscal quarter and whenever events or changes in circumstances indicate there may be a potential impairment.

Intangible Assets

HP’s acquired intangible assets were composed of:



	Weighted-Average Useful Lives	As of October 31, 2018						As of October 31, 2017
	Weighted-Average Useful Lives	Gross		Accumulated Amortization		Net		Gross		Accumulated Amortization		Net
	In years	In millions
Customer contracts, customer lists and distribution agreements	8	$	112	$	88	$	24	$	85	$	84	$	1
Technology and patents	7	601		172		429		98		96		2
Total intangible assets		$	713	$	260	$	453	$	183	$	180	$	3

For fiscal year 2018, the increase in gross intangible assets was primarily due to intangible assets resulting from the acquisition of Samsung’s printer business.

As of October 31, 2018, estimated future amortization expense related to intangible assets was as follows:



Fiscal year	In millions
2019	81
2020	81
2021	80
2022	79
2023	79
Thereafter	53
Total	453