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HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
Notes to Consolidated Financial Statements (Continued)
Note 6: Goodwill and Intangible Assets
Goodwill
Goodwill allocated to HP’s reportable segments as of October 31, 2013 and 2012 and changes in
the carrying amount of goodwill during the fiscal years ended October 31, 2013 and 2012 are as
follows:
HP
Personal Enterprise Enterprise Financial Corporate
Systems Printing Group Services Software Services Investments Total
In millions
Net balance at October 31,
2011(1) ............... $2,498 $2,471 $17,349 $ 8,001 $14,063 $144 $ 25 $ 44,551
Goodwill acquired during the
period ............... — 16 — — — — — 16
Goodwill adjustments/
reclassifications ......... — — (308) (40) 580 — (25) 207
Impairment loss .......... — — — (7,961) (5,744) — — (13,705)
Net balance at October 31,
2012(2) ............... $2,498 $2,487 $17,041 $ — $ 8,899 $144 $ — $ 31,069
Goodwill acquired during the
period ............... — — — 112 — — — 112
Goodwill adjustments/
reclassifications ......... — — 39 (15) (81) — — (57)
Impairment loss .......... — — — — — — — —
Net balance at October 31,
2013(2) ............... $2,498 $2,487 $17,080(3) $97
(4)$ 8,818 $144 $ — $ 31,124
(1) Goodwill at October 31, 2011 is net of accumulated impairment losses of $813 million related to
the Corporate Investments segment.
(2) Goodwill at October 31, 2013 and October 31, 2012 is net of accumulated impairment losses of
$14,518 million. Of that amount, $7,961 million relates to ES, $5,744 million relates to Software,
and the remaining $813 million relates to Corporate Investments.
(3) Goodwill at October 31, 2013 includes $9,280 million and $7,800 million related to the TS
reporting unit and the ESSN reporting unit, respectively.
(4) All goodwill at October 31, 2013 relates to the MphasiS reporting unit.
In the first quarter of fiscal 2013, HP implemented certain organizational realignments. As a result
of these realignments, HP has re-evaluated its reportable segment structure and, effective in the first
quarter of fiscal 2013, created two new reportable segments, the EG segment and the ES segment, and
eliminated two other reportable segments, the ESSN segment and the Services segment. The EG
segment consists of the business units within the former ESSN segment and most of the services
offerings of the TS business unit, which was previously a part of the former Services segment. The ES
segment consists of the Applications and Business Services (‘‘ABS’’) and Infrastructure Technology
Outsourcing (‘‘ITO’’) business units from the former Services segment, along with the end-user
workplace support services business that was previously part of TS. As a result of the reportable
105