NEW ACCOUNTING PRONOUNCEMENTS NEW REVENUE RECOGNITION (Tables)

6 Months Ended

Apr. 30, 2019

The cumulative effect of initially applying the new revenue standard to all open contracts as of November 1, 2018 was as follows:



	October 31, 2018		Adjustments Due to ASC 606			November 1, 2018
	(in millions)
Assets:
Accounts receivable, net	$	624	$	7		$	631
Other current assets	222		28			250
Long-term deferred tax assets	750		(15		)	735
Other assets	279		3			282
Liabilities:
Deferred revenue	$	334	$	(53	)	$	281
Income and other taxes payable	42		1			43
Other accrued liabilities	69		7			76
Long-term deferred revenue	127		(11		)	116
Other long-term liabilities	287		3			290
Stockholders' equity:
Retained earnings	$	1,212	$	76		$	1,288

The following tables summarize the impact of ASC 606 on our condensed consolidated financial statements:



	Three months ended
	April 30, 2019
	As Reported			Balances Without Adoption of ASC 606			Effect of Change Higher/(Lower)
	(in millions)
Net revenue:
Products	$	911		$	903		$	8
Services and other	179			184			(5		)
Total net revenue	1,090			1,087			3
Costs and expenses:
Cost of products	360			360			—
Cost of services and other	82			82			—
Total costs	442			442			—
Research and development	171			171			—
Selling, general and administrative	300			298			2
Other operating expense (income), net	(8		)	(8		)	—
Total costs and expenses	905			903			2
Income from operations	185			184			1
Interest income	6			6			—
Interest expense	(20		)	(20		)	—
Other income (expense), net	22			22			—
Income before taxes	193			192			1
Provision for income taxes	40			40			—
Net income	$	153		$	152		$	1

Net income per share:
Basic	$	0.81		$	0.81		$	—
Diluted	$	0.80		$	0.79		$	0.01



	Six months ended
	April 30, 2019
	As Reported			Balances Without Adoption of ASC 606			Effect of Change Higher/(Lower)
	(in millions)
Net revenue:
Products	$	1,748		$	1,725		$	23
Services and other	348			354			(6		)
Total net revenue	2,096			2,079			17
Costs and expenses:
Cost of products	707			706			1
Cost of services and other	163			163			—
Total costs	870			869			1
Research and development	344			344			—
Selling, general and administrative	588			585			3
Other operating expense (income), net	(12		)	(12		)	—
Total costs and expenses	1,790			1,786			4
Income from operations	306			293			13
Interest income	10			10			—
Interest expense	(40		)	(40		)	—
Other income (expense), net	37			37			—
Income before taxes	313			300			13
Provision for income taxes	46			44			2
Net income	$	267		$	256		$	11

Net income per share:
Basic	$	1.42		$	1.36		$	0.06
Diluted	$	1.40		$	1.34		$	0.06



	April 30, 2019
	As Reported		Balances Without Adoption of ASC 606		Effect of Change Higher/(Lower)
	(in millions)
Assets:
Accounts receivable, net	$	660	$	652	$	8
Inventory	660		661		(1		)
Other current assets	227		202		25
Long-term deferred tax assets	727		744		(17		)
Other assets	317		314		3
Liabilities:
Deferred revenue	$	333	$	397	$	(64	)
Income and other taxes payable	61		60		1
Other accrued liabilities	74		67		7
Long-term deferred revenue	150		166		(16		)
Other long-term liabilities	251		248		3
Stockholders' equity:
Retained earnings	$	1,555	$	1,468	$	87