HP 2015 Annual Report Download - page 149

Table of Contents
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Goodwill allocated to HP's reportable segments and changes in the carrying amount of goodwill were as follows:
In fiscal 2015, HP recorded approximately $2.0 billion of goodwill related to acquisitions based on its preliminary fair value estimates of the assets
acquired. Goodwill adjustments primarily relate to the allocation of goodwill to the LiveVault, Snapfish and iManage businesses, which were sold during the
period.
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Goodwill is tested for impairment at the reporting unit level. As of October 31, 2015, our reporting units are consistent with the reportable segments
identified in Note 2, except for ES, which includes two reporting units: MphasiS Limited; and the remainder of ES. Based on the results of its annual
impairment tests, HP determined that no impairment of goodwill existed as of August 1, 2015. There were no goodwill impairments in fiscal 2014 and 2013.
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  
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Balance at October 31,
2013(1)(2) $ 2,588 $ 3,103 $ 16,864 $ 97 $ 8,328 $ 144 $ — $ 31,124
Goodwill acquired during
the period — — — — 12 — — 12
Goodwill adjustments — — 3 — — — — 3
Balance at October 31,
2014(1)(2) $ 2,588 $ 3,103 $ 16,867 $ 97 $ 8,340 $ 144 $ — $ 31,139
Goodwill acquired during
the period — — 1,891 — 96 — — 1,987
Goodwill adjustments — (11) (46) (5) (123) — — (185)
Balance at October 31,
2015(1) $ 2,588 $ 3,092 $ 18,712 $ 92 $ 8,313 $ 144 $ — $ 32,941
(1) Goodwill is net of accumulated impairment losses of $14.5 billion. Of that amount, $8.0 billion relates to the ES segment, $5.7 billion
relates to Software, and the remaining $0.8 billion relates to Corporate Investments.
(2) In connection with the Separation, effective at the beginning of its fourth quarter of fiscal 2015, HP implemented an organizational
change which resulted in the transfer of the marketing optimization solutions business from the Software segment to the Commercial
Hardware business unit within the Printing segment. As a result, HP reclassified $512 million of goodwill related to the marketing
optimization solutions business from the Software segment to the Printing segment. The reclassification has been reflected
retrospectively for all periods presented above.
(3) Goodwill relates to the MphasiS Limited reporting unit.
Source: HP INC, 10-K, December 16, 2015 Powered by Morningstar® Document Research℠
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