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REVENUE (Notes)
 9 Months Ended
Jul. 31, 2020
Revenue from Contract with Customer [Abstract]  
Revenue from Contract with Customer [Text Block]
3.
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 17, "Segment Information."
 
Three Months Ended July 31, 2020
 
Three Months Ended July 31, 2019
 
Communications Solutions Group
 
Electronic Industrial Solutions Group
 
Total
 
Communications Solutions Group
 
Electronic Industrial Solutions Group
 
Total
 
(in millions)
 
(in millions)
Region
 
 
 
 
 
 
 
 
 
 
 
Americas
$
321

 
$
44

 
$
365

 
$
375

 
$
68

 
$
443

Europe
94

 
65

 
159

 
120

 
62

 
182

Asia Pacific
345

 
142

 
487

 
297

 
165

 
462

Total net revenue
$
760

 
$
251

 
$
1,011

 
$
792

 
$
295

 
$
1,087

 
 
 
 
 
 
 
 
 
 
 
 
End Market
 
 
 
 
 
 
 
 
 
 
 
Aerospace, Defense & Government
$
202

 
$
—

 
$
202

 
$
243

 
$
—

 
$
243

Commercial Communications
558

 
—

 
558

 
549

 
—

 
549

Electronic Industrial
—

 
251

 
251

 
—

 
295

 
295

Total net revenue
$
760

 
$
251

 
$
1,011

 
$
792

 
$
295

 
$
1,087

 
 
 
 
 
 
 
 
 
 
 
 
Timing of Revenue Recognition
 
 
 
 
 
 
 
 
 
 
 
Revenue recognized at a point in time
$
624

 
$
216

 
$
840

 
$
687

 
$
269

 
$
956

Revenue recognized over time
136

 
35

 
171

 
105

 
26

 
131

Total net revenue
$
760

 
$
251

 
$
1,011

 
$
792

 
$
295

 
$
1,087


 
Nine Months Ended July 31, 2020
 
Nine Months Ended July 31, 2019
 
Communications Solutions Group
 
Electronic Industrial Solutions Group
 
Total
 
Communications Solutions Group
 
Electronic Industrial Solutions Group
 
Total
 
(in millions)
 
(in millions)
Region
 
 
 
 
 
 
 
 
 
 
 
Americas
$
993

 
$
149

 
$
1,142

 
$
1,080

 
$
191

 
$
1,271

Europe
301

 
190

 
491

 
344

 
196

 
540

Asia Pacific
937

 
431

 
1,368

 
908

 
464

 
1,372

Total net revenue
$
2,231

 
$
770

 
$
3,001

 
$
2,332

 
$
851

 
$
3,183

 
 
 
 
 
 
 
 
 
 
 
 
End Market
 
 
 
 
 
 
 
 
 
 
 
Aerospace, Defense & Government
$
632

 
$
—

 
$
632

 
$
712

 
$
—

 
$
712

Commercial Communications
1,599

 
—

 
1,599

 
1,620

 
—

 
1,620

Electronic Industrial
—

 
770

 
770

 
—

 
851

 
851

Total net revenue
$
2,231

 
$
770

 
$
3,001

 
$
2,332

 
$
851

 
$
3,183

 
 
 
 
 
 
 
 
 
 
 
 
Timing of Revenue Recognition
 
 
 
 
 
 
 
 
 
 
 
Revenue recognized at a point in time
$
1,832

 
$
666

 
$
2,498

 
$
2,026

 
$
778

 
$
2,804

Revenue recognized over time
399

 
104

 
503

 
306

 
73

 
379

Total net revenue
$
2,231

 
$
770

 
$
3,001

 
$
2,332

 
$
851

 
$
3,183


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 condensed 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 $56 million and $34 million at July 31, 2020 and October 31, 2019, respectively, and is included in "accounts receivables, net" in our condensed 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:
 
Nine Months Ended
 
July 31, 2020
 
July 31, 2019
 
(in millions)
Beginning balance
$
28

 
$
—

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

 
29

Costs capitalized during the period
49

 
47

Costs amortized during the period
(50
)
 
(50
)
Ending balance
$
27

 
$
26


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.
The following table provides a roll-forward of our contract liabilities, current and non-current:
 
Nine Months Ended
 
July 31, 2020
 
(in millions)
Balance at October 31
$
510

Deferral of revenue billed in current period, net of recognition
322

Deferred revenue arising out of acquisitions
10

Revenue recognized that was deferred as of the beginning of the period
(287
)
Foreign currency translation impact
4

Balance at July 31
$
559


Of the $287 million of revenue recognized in the nine months ended July 31, 2020 that was deferred as of the beginning of the period, approximately $64 million was recognized in the three months ended July 31, 2020.
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 $332 million as of July 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 July 31, 2020, we expect to recognize 14% of the revenue related to these unsatisfied performance obligations during the remainder of 2020, 44% during 2021, and 42% thereafter.