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REVENUE (Notes) | 3 Months Ended
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Jan. 31, 2023
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 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, CSG and EISG.
| Three Months Ended
| January 31,
| 2024 |  | 2023
| CSG |  | EISG |  | Total |  | CSG |  | EISG |  | Total
| (in millions)
Region |  |  |  |  |  |  |  |  |  |  |
Americas | $ | 417 |  |  | $ | 97 |  |  | $ | 514 |  |  | $ | 452 |  |  | $ | 109 |  |  | $ | 561 |
Europe | 132 |  |  | 123 |  |  | 255 |  |  | 147 |  |  | 110 |  |  | 257 |
Asia Pacific | 290 |  |  | 200 |  |  | 490 |  |  | 340 |  |  | 223 |  |  | 563 |
Total revenue | $ | 839 |  |  | $ | 420 |  |  | $ | 1,259 |  |  | $ | 939 |  |  | $ | 442 |  |  | $ | 1,381 |
End Market |  |  |  |  |  |  |  |  |  |  |
Aerospace, Defense & Government | $ | 295 |  |  | $ | — |  |  | $ | 295 |  |  | $ | 310 |  |  | $ | — |  |  | $ | 310 |
Commercial Communications | 544 |  |  | — |  |  | 544 |  |  | 629 |  |  | — |  |  | 629 |
Electronic Industrial | — |  |  | 420 |  |  | 420 |  |  | — |  |  | 442 |  |  | 442 |
Total revenue | $ | 839 |  |  | $ | 420 |  |  | $ | 1,259 |  |  | $ | 939 |  |  | $ | 442 |  |  | $ | 1,381 |
Timing of Revenue Recognition |  |  |  |  |  |  |  |  |  |  |
Revenue recognized at a point in time | $ | 654 |  |  | $ | 346 |  |  | $ | 1,000 |  |  | $ | 777 |  |  | $ | 380 |  |  | $ | 1,157 |
Revenue recognized over time | 185 |  |  | 74 |  |  | 259 |  |  | 162 |  |  | 62 |  |  | 224 |
Total revenue | $ | 839 |  |  | $ | 420 |  |  | $ | 1,259 |  |  | $ | 939 |  |  | $ | 442 |  |  | $ | 1,381 |
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 upfront 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 $53 million and $58 million as of January 31, 2024 and October 31, 2023, 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 $40 million and $43 million as of January 31, 2024 and October 31, 2023, respectively, and are included in “other current assets” and “other assets” in the condensed consolidated balance sheet. The amortization expense associated with these capitalized costs was $16 million and $19 million for the three months ended January 31, 2024 and 2023, 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 products are shipped or 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,
| 2024
| (in millions)
Balance at October 31, 2023 | $ | 757 |
Deferral of revenue billed in current period, net of recognition | 250 |
Deferred revenue arising out of acquisitions | 15 |
Revenue recognized that was deferred as of the beginning of the period | (224) |
Foreign currency translation impact | 7 |
Balance at January 31, 2024 | $ | 805 |
Remaining Performance Obligations Our remaining performance obligations, excluding contracts that have an original expected duration of one year or less, was approximately $604 million as of January 31, 2024, and represents the company’s obligation to deliver products and services and obtain customer acceptance on delivered products. As of January 31, 2024, we expect to fulfill 42 percent of these remaining performance obligations during the remainder of 2024, 38 percent during 2025, and 20 percent thereafter.

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-9 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-10 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-15 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-13 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 606 -Publisher FASB -URI https://asc.fasb.org//606/tableOfContent + Details
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