HP 2014 Annual Report Download - page 147

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
Notes to Consolidated Financial Statements (Continued)
Note 9: Acquisitions, Goodwill and Intangible Assets (Continued)
The weighted-average useful lives of intangible assets are as follows:
As of
October 31, 2014
Weighted-Average
Finite-Lived Intangible Assets Useful Lives
In years
Customer contracts, customer lists and distribution agreements .................. 8
Developed and core technology and patents ................................ 8
Trade name and trade marks ........................................... 7
As of October 31, 2014, estimated future amortization expense related to finite-lived intangible
assets was as follows:
Fiscal year In millions
2015 ................................................................ $ 872
2016 ................................................................ 653
2017 ................................................................ 244
2018 ................................................................ 147
2019 ................................................................ 110
Thereafter ............................................................ 102
Total ................................................................ $2,128
Note 10: Fair Value
Fair value is defined as the price that would be received to sell an asset or paid to transfer a
liability (an exit price) in an orderly transaction between market participants at the measurement date.
Fair Value Hierarchy
HP uses valuation techniques that are based upon observable and unobservable inputs. Observable
inputs are developed using market data such as publicly available information and reflect the
assumptions market participants would use, while unobservable inputs are developed using the best
information available about the assumptions market participants would use. Assets and liabilities are
classified in the fair value hierarchy based on the lowest level input that is significant to the fair value
measurement:
Level 1—Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2—Quoted prices for similar assets or liabilities in active markets, quoted prices for identical
or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are
observable for the asset or liability and market-corroborated inputs.
Level 3—Unobservable inputs for the asset or liability.
The fair value hierarchy gives the highest priority to observable inputs and lowest priority to
unobservable inputs.
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