HP 2015 Annual Report Download - page 181

Table of Contents
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HP's aggregate product warranty liabilities and changes were as follows:
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HP leases certain real and personal property under non-cancelable operating leases. Certain leases require HP to pay property taxes, insurance and routine
maintenance and include renewal options and escalation clauses. Rent expense was approximately $1.0 billion in fiscal 2015, 2014 and 2013.
Property under capital leases was comprised primarily of equipment and furniture. Capital lease assets included in Property, plant and equipment in the
Consolidated Balance Sheets were $207 million and $229 million as of October 31, 2015 and 2014, respectively. Accumulated depreciation on the property
under capital leases was $187 million and $207 million as of October 31, 2015 and 2014, respectively.
As of October 31, 2015, future minimum operating lease commitments were as follows:
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As of October 31, 2015, HP had unconditional purchase obligations of approximately $2.7 billion. These unconditional purchase obligations include
agreements to purchase goods or services that are enforceable and legally binding on HP and that specify all significant terms, including fixed or minimum
quantities to be purchased, fixed, minimum or variable price provisions and the approximate
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    
   
Balance at beginning of year $ 1,956 $ 2,031
Accruals for warranties issued 1,507 1,840
Adjustments related to pre-existing warranties (including changes in estimates) (32) 12
Settlements made (in cash or in kind) (1,723) (1,927)
Balance at end of year $ 1,708 $ 1,956
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2016 $ 624
2017 517
2018 379
2019 310
2020 237
Thereafter 801
Less: Sublease rental income (77)
Total(1) $ 2,791
(1) Subsequent to the Separation, HP expects the total remaining future minimum operating lease commitments to be approximately
$367 million.
Source: HP INC, 10-K, December 16, 2015 Powered by Morningstar® Document Research℠
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