Supplementary Financial Information

6 Months Ended

Apr. 30, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Accounts Receivable, net



	As of
	April 30, 2020			October 31, 2019
	In millions
Accounts receivable	$	5,266		$	6,142
Allowance for doubtful accounts	(120		)	(111		)
	$	5,146		$	6,031

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



	Six months ended April 30, 2020
	In millions
Balance at beginning of period	$	111
Provision for doubtful accounts	32
Deductions, net of recoveries	(23		)
Balance at end of period	$	120

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 April 30, 2020 and October 31, 2019 were not material. The costs associated with the sale of trade receivables for the three and six months ended April 30, 2020 and 2019 were not material.

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



	Three months ended April 30						Six months ended April 30
	2020			2019			2020			2019
	In millions
Balance at beginning of period⁽¹⁾	$	88		$	194		$	235		$	165
Trade receivables sold	2,323			2,490			5,181			5,525
Cash receipts	(2,286		)	(2,498		)	(5,291		)	(5,507		)
Foreign currency and other	(1		)	(4		)	(1		)	(1		)
Balance at end of period⁽¹⁾	$	124		$	182		$	124		$	182


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

Inventory



	As of
	April 30, 2020		October 31, 2019
	In millions
Finished goods	$	3,874	$	3,855
Purchased parts and fabricated assemblies	2,480		1,879
	$	6,354	$	5,734

Other Current Assets



	As of
	April 30, 2020		October 31, 2019
	In millions
Supplier and other receivables	$	2,094	$	1,951
Prepaid and other current assets	1,173		967
Value-added taxes receivable	839		957
	$	4,106	$	3,875

Property, Plant and Equipment, net



	As of
	April 30, 2020			October 31, 2019
	In millions
Land, buildings and leasehold improvements	$	2,046		$	1,977
Machinery and equipment, including equipment held for lease	5,201			5,060
	7,247			7,037
Accumulated depreciation	(4,533		)	(4,243		)
	$	2,714		$	2,794

Other Non-Current Assets



	As of
	April 30, 2020		October 31, 2019
	In millions
Deferred tax assets	$	2,452	$	2,620
Right-of-use assets from operating leases, net⁽¹⁾	1,111		—
Intangible assets	592		661
Tax indemnifications receivable	35		42
Other⁽²⁾	839		801
	$	5,029	$	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 $52 million and $56 million as of April 30, 2020 and October 31, 2019, respectively. See Note 8, “Financial Instruments” for detailed information.

Other Current Liabilities



	As of
	April 30, 2020		October 31, 2019
	In millions
Sales and marketing programs	$	3,029	$	3,361
Deferred revenue	1,208		1,178
Other accrued taxes	907		1,060
Employee compensation and benefit	795		1,103
Warranty	645		663
Operating lease liabilities⁽¹⁾	242		—
Tax liability	192		237
Other	2,512		2,541
	$	9,530	$	10,143


⁽¹⁾	See Note 1, “Basis of Presentation” and Note 14, “Leases” for detailed information.

Other Non-Current Liabilities



	As of
	April 30, 2020		October 31, 2019
	In millions
Pension, post-retirement, and post-employment liabilities	$	1,599	$	1,762
Deferred revenue	1,042		1,069
Operating lease liabilities⁽¹⁾	899		—
Tax liability	843		848
Deferred tax liability	62		60
Other	854		848
	$	5,299	$	4,587

⁽¹⁾See Note 1, “Basis of Presentation” and Note 14, “Leases” for detailed information.

Interest and other, net



	Three months ended April 30						Six months ended April 30
	2020			2019			2020			2019
	In millions
Tax indemnifications	$	1		$	5		$	1		$	15
Interest expense on borrowings	(64		)	(61		)	(122		)	(125		)
Other, net	63			11			134			39
	$	—		$	(45	)	$	13		$	(71	)

Net revenue by region



	Three months ended April 30				Six months ended April 30
	2020		2019		2020		2019
	In millions
Americas	$	5,205	$	5,785	$	11,164	$	11,817
Europe, Middle East and Africa	4,654		5,110		9,886		10,468
Asia-Pacific and Japan	2,610		3,141		6,037		6,461
Total net revenue	$	12,469	$	14,036	$	27,087	$	28,746

Value of Remaining Performance Obligations

As of April 30, 2020, the estimated value of transaction price allocated to remaining performance obligations was $4.3 billion. HP expects to recognize approximately $1.8 billion of the unearned amount in next 12 months and $2.5 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 April 30, 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 six months ended April 30, 2020 is primarily driven by sales of fixed price support and maintenance services, partially offset by $631 million of revenue recognized that were included in the contract liabilities balance as of October 31, 2019.