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Supplementary Financial Information | 9 Months Ended
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Jul. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Supplementary Financial Information | Supplementary Financial Information Accounts Receivable, net
| As of |  |
| July 31, 2020 |  | October 31, 2019
| In millions |  |
Accounts receivable | $ | 5,401 |  |  | $ | 6,142 |
Allowance for doubtful accounts | (132) |  |  | (111) |
| $ | 5,269 |  |  | $ | 6,031 |
The allowance for doubtful accounts related to accounts receivable and changes were as follows:
| Nine months ended July 31, 2020
| In millions
Balance at beginning of period | $ | 111 |
Provision for doubtful accounts | 53 |
Deductions, net of recoveries | (32) |
Balance at end of period | $ | 132 |
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 de-recognized from the Consolidated Condensed 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 similar transactions and reported as a current liability in the Consolidated Condensed Balance Sheets. The recourse obligations as of July 31, 2020 and October 31, 2019 were not material. The costs associated with the sale of trade receivables for the three and nine months ended July 31, 2020 and 2019 were not material. The following is a summary of the activity under these arrangements:
| Three months ended July 31 |  |  |  | Nine months ended July 31 |  |
| 2020 |  | 2019 |  | 2020 |  | 2019
| In millions |  |  |  |  |  |
Balance at beginning of period(1) | $ | 124 |  |  | $ | 182 |  |  | $ | 235 |  |  | $ | 165 |
Trade receivables sold | 2,231 |  |  | 2,311 |  |  | 7,411 |  |  | 7,836 |
Cash receipts | (2,254) |  |  | (2,330) |  |  | (7,544) |  |  | (7,838) |
Foreign currency and other | 8 |  |  | (4) |  |  | 7 |  |  | (4) |
Balance at end of period(1) | $ | 109 |  |  | $ | 159 |  |  | $ | 109 |  |  | $ | 159 |
(1) Amounts outstanding from third parties reported in Accounts Receivable in the Consolidated Condensed Balance Sheets. Inventory
| As of |  |
| July 31, 2020 |  | October 31, 2019
| In millions |  |
Finished goods | $ | 3,937 |  |  | $ | 3,855 |
Purchased parts and fabricated assemblies | 1,959 |  |  | 1,879 |
| $ | 5,896 |  |  | $ | 5,734 |
Other Current Assets
| As of |  |
| July 31, 2020 |  | October 31, 2019
| In millions |  |
Supplier and other receivables | $ | 2,028 |  |  | $ | 1,951 |
Prepaid and other current assets | 1,472 |  |  | 967 |
Value-added taxes receivable | 925 |  |  | 957 |
| $ | 4,425 |  |  | $ | 3,875 |
Property, Plant and Equipment, net
| As of |  |
| July 31, 2020 |  | October 31, 2019
| In millions |  |
Land, buildings and leasehold improvements | $ | 2,069 |  |  | $ | 1,977 |
Machinery and equipment, including equipment held for lease | 5,234 |  |  | 5,060 |
| 7,303 |  |  | 7,037 |
Accumulated depreciation | (4,645) |  |  | (4,243) |
| $ | 2,658 |  |  | $ | 2,794 |
Other Non-Current Assets
| As of |  |
| July 31, 2020 |  | October 31, 2019
| In millions |  |
Deferred tax assets | $ | 2,506 |  |  | $ | 2,620 |
Right-of-use assets from operating leases, net(1) | 1,099 |  |  | — |
Intangible assets | 572 |  |  | 661 |
Other(2) | 754 |  |  | 843 |
| $ | 4,931 |  |  | $ | 4,124 |
(1) See Note 1, “Basis of Presentation” and Note 14, “Leases” for detailed information. (2) Includes marketable equity securities and mutual funds classified as available-for-sale investments of $57 million and $56 million as of July 31, 2020 and October 31, 2019, respectively. See Note 8, “Financial Instruments” for detailed information. Other Current Liabilities
| As of |  |
| July 31, 2020 |  | October 31, 2019
| In millions |  |
Sales and marketing programs | $ | 3,070 |  |  | $ | 3,361 |
Deferred revenue | 1,190 |  |  | 1,178 |
Other accrued taxes | 943 |  |  | 1,060 |
Employee compensation and benefit | 961 |  |  | 1,103 |
Warranty | 640 |  |  | 663 |
Operating lease liabilities(1) | 257 |  |  | — |
Tax liability | 170 |  |  | 237 |
Other | 3,243 |  |  | 2,541 |
| $ | 10,474 |  |  | $ | 10,143 |
(1) See Note 1, “Basis of Presentation” and Note 14, “Leases” for detailed information. Other Non-Current Liabilities
| As of |  |
| July 31, 2020 |  | October 31, 2019
| In millions |  |
Pension, post-retirement, and post-employment liabilities | $ | 1,550 |  |  | $ | 1,762 |
Deferred revenue | 1,067 |  |  | 1,069 |
Operating lease liabilities(1) | 904 |  |  | — |
Tax liability | 774 |  |  | 848 |
Deferred tax liability | 21 |  |  | 60 |
Other | 907 |  |  | 848 |
| $ | 5,223 |  |  | $ | 4,587 |
(1) See Note 1, “Basis of Presentation” and Note 14, “Leases” for detailed information. Interest and other, net
| Three months ended July 31 |  |  |  | Nine months ended July 31 |  |
| 2020 |  | 2019 |  | 2020 |  | 2019
| In millions |  |  |  |  |  |
Tax indemnifications(1) | $ | (1) |  |  | $ | (784) |  |  | $ | — |  |  | $ | (769) |
Interest expense on borrowings | (55) |  |  | (57) |  |  | (176) |  |  | (182) |
Loss on extinguishment of debt | (40) |  |  | — |  |  | (40) |  |  | — |
Other, net | 68 |  |  | 10 |  |  | 201 |  |  | 49 |
| $ | (28) |  |  | $ | (831) |  |  | $ | (15) |  |  | $ | (902) |
(1) Includes an adjustment of $764 million for the three and nine months ended July 31, 2019, primarily related to indemnification receivables, pursuant to resolution of various tax matters. . Net revenue by region
| Three months ended July 31 |  |  |  | Nine months ended July 31 |  |
| 2020 |  | 2019 |  | 2020 |  | 2019
| In millions |  |  |  |  |  |
Americas | $ | 6,229 |  |  | $ | 6,574 |  |  | $ | 17,393 |  |  | $ | 18,391 |
Europe, Middle East and Africa | 4,725 |  |  | 4,746 |  |  | 14,611 |  |  | 15,214 |
Asia-Pacific and Japan | 3,340 |  |  | 3,283 |  |  | 9,377 |  |  | 9,744 |
Total net revenue | $ | 14,294 |  |  | $ | 14,603 |  |  | $ | 41,381 |  |  | $ | 43,349 |
Value of Remaining Performance Obligations As of July 31, 2020, the estimated value of transaction price allocated to remaining performance obligations was $4.2 billion. HP expects to recognize approximately $1.8 billion of the unearned amount in next 12 months and $2.4 billion thereafter. HP has elected the practical expedients and accordingly does not disclose the aggregate amount of the transaction price allocated to remaining performance obligations if: •the contract has an original expected duration of one year or less; or •the revenue from the performance obligation is recognized over time on an as-invoiced basis when the amount corresponds directly with the value to the customer; or •the portion of the transaction price that is variable in nature is allocated entirely to a wholly unsatisfied performance obligation. The remaining performance obligations are subject to change and may be affected by various factors, such as termination of contracts, contract modifications and adjustment for currency. Contract Liabilities As of July 31, 2020 and October 31, 2019, HP’s contract liabilities balances were $2.3 billion and $2.1 billion, respectively, included in Other Current Liabilities and Other Non-Current Liabilities in the Consolidated Condensed Balance Sheet. The increase in the contract liabilities balance for the nine months ended July 31, 2020 is primarily driven by sales of fixed price support and maintenance services, partially offset by $0.9 billion of revenue recognized that were included in the contract liabilities balance as of October 31, 2019.

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- Definition The entire disclosure for supplemental balance sheet disclosures, including descriptions and amounts for assets, liabilities, and equity. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -URI http://asc.fasb.org/topic&trid=2122208 + Details
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