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REVENUE (Notes)
 3 Months Ended
Jan. 31, 2022
Revenue from Contract with Customer [Abstract]  
Revenue from Contract with Customer [Text Block]
2.    REVENUE
Disaggregation of Revenue
We disaggregate our revenue from contracts with customers by geographic region, end market, and timing of revenue recognition, 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, Communications Solutions Group ("CSG") and Electronics Industrial Solutions Group ("EISG").
Three Months Ended
January 31,
20232022
CSGEISGTotalCSGEISGTotal
 (in millions)
Region
Americas$452 $109 $561 $404 $79 $483 
Europe147 110 257 143 83 226 
Asia Pacific340 223 563 331 210 541 
Total revenue$939 $442 $1,381 $878 $372 $1,250 
End Market
Aerospace, Defense & Government$310 $— $310 $294 $— $294 
Commercial Communications629 — 629 584 — 584 
Electronic Industrial— 442 442 — 372 372 
Total revenue$939 $442 $1,381 $878 $372 $1,250 
Timing of Revenue Recognition
Revenue recognized at a point in time$777 $380 $1,157 $730 $322 $1,052 
Revenue recognized over time162 62 224 148 50 198 
Total revenue$939 $442 $1,381 $878 $372 $1,250 
Our point-in-time revenues are generated predominantly from the sale of various types of design and test software and hardware, and per-incident repair and calibration services. Perpetual software and the portion of term software subscription revenue in this category represents revenue recognized up front upon transfer of control at the time of electronic delivery. Revenue on per-incident repair and calibration services is recognized when services are performed. Over-time revenues are generated predominantly from the repair and calibration contracts, extended warranties, technical support for hardware and software, certain software subscription and Software as a Service ("SaaS") product offerings, and professional services. Technical support for software and when-and-if available software updates and upgrades are sold either together with our software licenses and software subscriptions, including SaaS, or separately as part of our customer support programs.
Additionally, we provide custom solutions that include combinations of hardware, software, software subscriptions, installation, professional services, and other support services, and revenue may be recognized either up front on delivery or over time depending upon the terms of the contract.
Contract Balances
Contract assets
Contract assets consist of unbilled receivables and are recorded when revenue is recognized in advance of scheduled billings to our customers. These amounts are primarily related to solutions and support arrangements when transfer of control has occurred but we have not yet invoiced. The contract assets balance was $72 million and $88 million as of January 31, 2023 and October 31, 2022, respectively, and is included in "accounts receivables, net" and "other assets" in our condensed consolidated balance sheet.
Contract costs
We capitalize direct and incremental costs incurred to acquire contracts for which the associated revenue is expected to be recognized in future periods. We have determined that certain employee and third-party representative commission programs meet the requirements to be capitalized. These costs are initially deferred and typically amortized over the term of the customer contract which corresponds to the period of benefit. Capitalized contract costs were $39 million and $38 million as of January
31, 2023 and October 31, 2022, respectively, and are included in “other current assets” and “other assets” in the condensed consolidated balance sheet. The amortization expense associated with these costs was $19 million and $22 million for the three months ended January 31, 2023 and 2022, respectively.
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.
The following table provides a roll-forward of our contract liabilities, current and non-current:
Three Months Ended
January 31,
2023
(in millions)
Balance at October 31, 2022$692 
Deferral of revenue billed in current period, net of recognition279 
Revenue recognized that was deferred as of the beginning of the period(217)
Foreign currency translation impact17 
Balance at January 31, 2023$771 
Remaining Performance Obligations
Our remaining performance obligations, excluding contracts that have an original expected duration of one year or less, was approximately $479 million as of January 31, 2023, and represents the company’s obligation to deliver products and services and obtain customer acceptance on delivered products. As of January 31, 2023, we expect to fulfill 38 percent of these unsatisfied performance obligations during the remainder of 2023, 37 percent during 2024, and 25 percent thereafter.