HEWLETT PACKARD CO | 2013 | FY | 3

Note 4: Balance Sheet Details

        Balance sheet details were as follows for the following fiscal years ended October 31:

 
   2013   2012   2011  
 
   In millions
  

Accounts receivable, gross

   $ 16,208   $ 16,871   $ 18,694  
               

Less: Allowance for doubtful accounts

                    

Balance at beginning of year

     464     470     525  

Increase in allowance from acquisitions

     —     —     27  

Provision for doubtful accounts

     23     100     23  

Deductions, net of recoveries

     (155 )   (106 )   (105 )
               

Balance at end of year

     332     464     470  
               

Accounts receivable, net

   $ 15,876   $ 16,407   $ 18,224  
               

        HP has third-party financing arrangements consisting of revolving short-term financing intended to facilitate the working capital requirements of certain customers. These financing arrangements, which in one case provides for partial recourse, result in a transfer of HP's trade receivables and risk to the third party. As these transfers qualify for sales accounting treatment, the trade receivables are derecognized from the Consolidated Balance Sheets upon transfer, and HP receives a payment for the trade receivables from the third party within a mutually agreed upon time period. For the arrangement involving an element of recourse, the recourse obligation is measured using market data from similar transactions and reported as a current liability in the Consolidated Balance Sheets. The recourse obligations as of October 31, 2013 and October 31, 2012 were not material.

        For fiscal 2013 and 2012, trade receivables sold under these facilities were $4.9 billion and $4.3 billion, respectively. The amount of trade receivables sold approximates the amount of cash received. The resulting costs associated with the sales of trade accounts receivable for the year ended October 31, 2013 and 2012 were not material. The maximum program capacity and available program capacity under these arrangements were as follows for the following fiscal years ended October 31:

 
   2013   2012  
 
   In millions
  

Non-recourse arrangements

              

Aggregate maximum program capacity

   $ 764   $ 636  

Aggregate available capacity

   $ 450   $ 434  

Aggregate utilized capacity

   $ 314   $ 202  

Partial-recourse arrangement

              

Maximum program capacity

   $ 631   $ 876  

Available capacity

   $ 177   $ 413  

Utilized capacity

   $ 454   $ 463  

Total arrangements

              

Aggregate maximum program capacity

   $ 1,395   $ 1,512  

Aggregate available capacity

   $ 627   $ 847  

Aggregate utilized capacity

   $ 768   $ 665  

 
   2013   2012  
 
   In millions
  

Finished goods

   $ 3,847   $ 4,094  

Purchased parts and fabricated assemblies

     2,199     2,223  
           

 

   $ 6,046   $ 6,317  
           

 
   2013   2012  
 
   In millions
  

Deferred tax assets—short-term

   $ 3,893   $ 3,783  

Value-added taxes receivable from various governments

     2,425     3,298  

Supplier and other receivables

     2,579     2,549  

Prepaid and other current assets

     4,238     3,730  
           

 

   $ 13,135   $ 13,360  
           

 
   2013   2012  
 
   In millions
  

Land

   $ 626   $ 636  

Buildings and leasehold improvements

     8,942     8,744  

Machinery and equipment, including equipment held for lease

     16,565     16,503  
           

 

     26,133     25,883  
           

Accumulated depreciation

     (14,670 )   (13,929 )
           

 

   $ 11,463   $ 11,954  
           

        Depreciation expense was $3.2 billion, $3.3 billion and $3.4 billion in fiscal 2013, 2012 and 2011, respectively. For the twelve months ended October 31, 2013, the change in gross property, plant and equipment was due primarily to investments of $3.2 billion, which were partially offset by sales and retirements totaling $3.0 billion. Accumulated depreciation associated with the assets sold and retired was $2.5 billion.

 
   2013   2012  
 
   In millions
  

Financing receivables, net

   $ 3,878   $ 4,292  

Deferred tax assets—long-term

     1,346     1,581  

Deferred costs—long-term

     999     1,301  

Other

     3,333     3,419  
           

 

   $ 9,556   $ 10,593  
           

 
   2013   2012  
 
   In millions
  

Other accrued taxes

   $ 2,703   $ 3,264  

Warranty

     1,390     1,496  

Sales and marketing programs

     2,823     2,900  

Other

     5,590     5,840  
           

 

   $ 12,506   $ 13,500  
           

 
   2013   2012  
 
   In millions
  

Pension, post-retirement, and post-employment liabilities

   $ 5,098   $ 7,780  

Deferred tax liability—long-term

     2,668     2,948  

Long-term deferred revenue

     3,907     3,371  

Other long-term liabilities

     4,218     3,381  
           

 

   $ 15,891   $ 17,480  
           

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