HP 2009 Annual Report Download - page 113

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HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
Notes to Consolidated Financial Statements (Continued)
Note 4: Balance Sheet Details (Continued)
Other Liabilities
2009 2008
In millions
Pension, post-retirement, and post-employment liabilities .................... $ 6,427 $ 3,712
Deferred tax liability — long-term .................................... 4,230 3,162
Long-term deferred revenue ........................................ 3,249 3,152
Other long-term liabilities .......................................... 3,393 3,748
$17,299 $13,774
Long-term deferred revenue represents service and product deferred revenue to be recognized
after one year from the balance sheet date. Deferred revenue represents amounts received or billed in
advance for fixed-price support or maintenance contracts, software customer support contracts,
outsourcing services start-up or transition work, consulting and integration projects, product sales and
leasing income. The fixed-price support or maintenance contracts include stand-alone product support
packages, routine maintenance service contracts, upgrades or extensions to standard product warranty,
as well as high availability services for complex, global, networked, multi-vendor environments. HP
defers these service amounts at the time HP bills the customer, and HP then recognizes the amounts
ratably over the contract life or as HP renders the services. HP also defers and subsequently amortizes
certain set-up costs related to activities that enable the performance of the customer contract. Deferred
contract costs, including set-up and other unbilled costs, are amortized on a straight-line basis over the
remaining original contract term unless billing patterns indicate a more accelerated method is
appropriate.
Note 5: Supplemental Cash Flow Information
Supplemental cash flow information to the Consolidated Statements of Cash Flows for the fiscal
years ended October 31 2009, October 31, 2008 and October 31, 2007 was as follows:
2009 2008 2007
In millions
Cash paid for income taxes, net ................................... $643 $1,136 $956
Cash paid for interest ........................................... $572 $ 426 $489
Non-cash investing and financing activities:
Issuance of common stock and stock awards assumed in business acquisitions . $ — $ 316 $ 41
Purchase of assets under financing arrangements ..................... $283 $ — $ 57
Purchase of assets under capital leases ............................. $131 $ 30 $ —
Note 6: Acquisitions
Acquisitions in fiscal 2009
In fiscal 2009, HP completed two acquisitions. Total consideration for the acquisitions was
$390 million, which includes direct transaction costs and the assumption of certain liabilities in
connection with the transactions. HP recorded $315 million of goodwill, $105 million of purchased
intangibles and $7 million of in-process research and development charges (‘‘IPR&D’’) related to these
transactions. Projects that qualify for treatment as IPR&D have not yet reached technical feasibility
106