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REVENUE (Notes)
 12 Months Ended
Oct. 31, 2020
Revenue from Contract with Customer [Abstract]  
Revenue from Contract with Customer [Text Block]
4.
REVENUE
Disaggregation of Revenue
We disaggregate our revenue from contracts with customers by geographic region, end market, and timing of transfer of products and services to customers, as we believe these categories best depict how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. Disaggregated revenue is presented for each of our reportable segments. Prior period amounts have been reclassified to conform to our organizational change as described in Note 21, "Segment Information."
 
Year Ended October 31, 2020
 
Year Ended October 31, 2019
 
Communications Solutions Group
 
Electronic Industrial Solutions Group
 
Total
 
Communications Solutions Group
 
Electronic Industrial Solutions Group
 
Total
 
(in millions)
 
(in millions)
Region
 
 
 
 
 
 
 
 
 
 
 
Americas
$
1,424

 
$
217

 
$
1,641

 
$
1,474

 
$
250

 
$
1,724

Europe
421

 
255

 
676

 
456

 
257

 
713

Asia Pacific
1,287

 
617

 
1,904

 
1,238

 
628

 
1,866

Total revenue
$
3,132

 
$
1,089

 
$
4,221

 
$
3,168

 
$
1,135

 
$
4,303

 
 
 
 
 
 
 
 
 
 
 
 
End Market
 
 
 
 
 
 
 
 
 
 
 
Aerospace, Defense & Government
$
928

 
$
—

 
$
928

 
$
975

 
$
—

 
$
975

Commercial Communications
2,204

 
—

 
2,204

 
2,193

 
—

 
2,193

Electronic Industrial
—

 
1,089

 
1,089

 
—

 
1,135

 
1,135

Total revenue
$
3,132

 
$
1,089

 
$
4,221

 
$
3,168

 
$
1,135

 
$
4,303

 
 
 
 
 
 
 
 
 
 
 
 
Timing of Revenue Recognition
 
 
 
 
 
 
 
 
 
 
 
Revenue recognized at a point in time
$
2,598

 
$
946

 
$
3,544

 
$
2,748

 
$
1,037

 
$
3,785

Revenue recognized over time
534

 
143

 
677

 
420

 
98

 
518

Total revenue
$
3,132

 
$
1,089

 
$
4,221

 
$
3,168

 
$
1,135

 
$
4,303


Contract Balances
The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables (contract assets) and deferred revenue (contract liabilities) on our consolidated balance sheet. In addition, we defer and capitalize certain costs incurred to obtain a contract (contract costs).
Contract assets. Contract assets represent unbilled amounts from arrangements for which we have performed by transferring goods or services to the customer in advance of receiving all or partial consideration for such goods and services from the customer. Contract assets arise primarily from service agreements and products delivered pending a formal customer acceptance, which generally occurs within 30 days. The contract assets balance was $61 million and $34 million at October 31, 2020 and October 31, 2019, respectively, and is included in "accounts receivables, net" in our consolidated balance sheet.
Contract costs. We recognize an asset for the incremental costs of obtaining a contract with a customer. We have determined that certain employee and third-party representative commissions programs meet the requirements to be capitalized. Employee commissions are based on the achievement of order volume compared to a sales target. Third-party representative commission costs relate directly to a customer contract as the commission is tied to orders contracted through and contracts arranged by our third-party representatives. Without obtaining the contracts, the commissions would not be paid and, as such, are determined to be an incremental cost to obtaining a contract. We only defer these costs when we have determined the commissions are, in fact, incremental and would not have been incurred absent the customer contract.
Capitalized incremental costs are allocated to the individual performance obligations in proportion to the transaction price allocated to each performance obligation and amortized based on the pattern of performance for the underlying performance obligation. Contract costs related to initial contracts and renewals are amortized over the same period because the commissions paid on both the initial contract and renewals are commensurate with one another.
The following table provides a roll-forward of our capitalized contract costs, current and non-current:
 
Year Ended October 31,
 
2020
 
2019
 
(in millions)
Balance at beginning of period
$
28

 
$
—

Costs capitalized on November 1, 2018 due to ASC 606 adoption
—

 
29

Costs capitalized during the period
86

 
63

Costs amortized during the period
(83
)
 
(64
)
Balance at end of period
$
31

 
$
28


Contract liabilities. Our contract liabilities consist of deferred revenue that arises when we receive consideration in advance of providing the goods or services promised in the contract. Contract liabilities are primarily generated from customer deposits received in advance of shipments for products or rendering of services and are recognized as revenue when services are provided to the customer. We classify deferred revenue as current or non-current based on the timing of when we expect to recognize revenue. Contract liabilities are recognized as revenue when services are provided to the customer.
Changes in contract liabilities, current and non-current, during 2020 were as follows:
 
Year Ended
 
October 31, 2020
 
(in millions)
Balance at October 31, 2019
$
510

Deferral of revenue billed in current period, net of recognition
377

Deferred revenue arising out of acquisitions
10

Revenue recognized that was deferred as of the beginning of the period
(336
)
Foreign currency translation impact
5

Balance at October 31, 2020
$
566


Remaining Performance Obligations
Revenue expected to be recognized in any future period related to remaining performance obligations, excluding revenue pertaining to contracts that have an original expected duration of one year or less, was approximately $347 million as of October 31, 2020, and represents the company’s obligation to deliver products and services and obtain customer acceptance on delivered products. Since we typically invoice customers at contract inception, this amount is included in our current and long-term deferred revenue balances. As of October 31, 2020, we expect to recognize approximately 50 percent of the revenue related to these unsatisfied performance obligations during 2021, 30 percent in 2022 and 20 percent thereafter.