SUPPLEMENTAL FINANCIAL INFORMATION (Notes)

3 Months Ended

Jan. 31, 2023

Additional Financial Information Disclosure

11. SUPPLEMENTAL FINANCIAL INFORMATION

The following tables provide details of selected balance sheet items:

Cash, cash equivalents, and restricted cash


	January 31, 2023		October 31, 2022
	(in millions)
Cash and cash equivalents	$	2,228	$	2,042

Restricted cash included in other assets	16		15
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows	$	2,244	$	2,057

Restricted cash primarily relates to deficit reduction contributions to an escrow account for one of our non-U.S. defined benefit pension plans and deposits held as collateral against bank guarantees.

Inventory


	January 31, 2023		October 31, 2022
	(in millions)
Finished goods	$	342	$	322
Purchased parts and fabricated assemblies	567		536
Total inventory	$	909	$	858

The increase in inventory for the three months ended January 31, 2023, was primarily driven by incremental stock build-up to secure supply to support order fulfillment.

Leases

The following table summarizes the components of our lease cost:


	Three Months Ended
	January 31,
		2023		2022
	(in millions)
Operating lease cost		$	13	$	13
Variable lease cost		$	4	$	4

Supplemental cash flow information related to our operating leases was as follows:


	Three Months Ended
	January 31,
	2023		2022
	(in millions)
Cash payment for operating leases	$	14	$	13
Right-of-use assets obtained in exchange for operating lease obligations	$	9	$	5

As of January 31, 2023, we have additional operating leases, primarily for real estate, that have not yet commenced of $17 million. These operating leases will commence in the remainder of fiscal year 2023 with lease terms of up to 15 years.

Standard warranty

Our warranties on products sold through direct sales channels are primarily for one year. Warranties for products sold through distribution channels are primarily for three years. We accrue for standard warranty costs based on historical trends in warranty charges. The accrual is reviewed regularly and periodically adjusted to reflect changes in warranty cost estimates. Estimated warranty charges are recorded within cost of products at the time related product revenue is recognized.

Activity related to the standard warranty accrual, which is included in other accrued and other long-term liabilities in our condensed consolidated balance sheet, is as follows:


	Three Months Ended
	January 31,
	2023		2022
	(in millions)
Beginning balance	$	32	$	34
Accruals for warranties, including change in estimates	9		7
Settlements made during the period	(7)		(6)
Ending balance	$	34	$	35

Accruals for warranties due within one year	$	20	$	21
Accruals for warranties due after one year	14		14
Ending balance	$	34	$	35

Other current assets


	January 31, 2023		October 31, 2022
	(in millions)
Prepaid assets	$	295	$	280
Other current assets	146		149
Total other current assets	$	441	$	429

Prepaid assets include deposits paid in advance to contract manufacturers of $206 million and $199 million as of January 31, 2023 and October 31, 2022, respectively.