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LEASES (Notes) | 9 Months Ended
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Jul. 31, 2020
Leases [Abstract] |
Leases of Lessee Disclosure [Text Block] | LEASES As a lessee, we have various non-cancelable operating lease agreements for office space, warehouses, distribution centers, research and development facilities, manufacturing and production locations as well as vehicles, personal computers and other equipment. Our real estate leases have remaining lease terms of one to thirty years, which represent the non-cancelable periods of the leases and include extension options that we determined are reasonably certain to be exercised. We exclude options that are not reasonably certain to be exercised from our lease terms, ranging from six months to twenty years. Our lease payments consist primarily of fixed rental payments for the right to use the underlying leased assets over the lease terms as well as payments for common area maintenance. We often receive incentives from our landlords, such as rent abatement periods, which effectively reduce the total lease payments owed for these leases. Vehicle, personal computer and other equipment operating leases have terms between three and five years. Prior to the adoption of the new lease accounting standard, future minimum lease payments as of October 31, 2019 and previously disclosed in the company’s Annual Report on Form 10-K for the fiscal year ended October 31, 2019 under non- cancelable leases with initial terms exceeding twelve months were as follows:
| Operating Leases
| (in millions)
2020 | $ | 52 |
2021 | 41 |
2022 | 29 |
2023 | 21 |
2024 | 14 |
Thereafter | 56 |
Total future minimum lease payments | $ | 213 |
The components of lease cost for operating leases were as follows:
| Three Months Ended |  | Nine Months Ended
| July 31, 2020 |  | July 31, 2020
| (in millions)
Operating lease cost | $ | 14 |  |  | $ | 45 |
Short-term lease cost | — |  |  | 1 |
Variable lease cost (a) | 4 |  |  | 11 |
Sublease income | (4 | ) |  | (11 | )
Total lease cost | $ | 14 |  |  | $ | 46 |
(a) Variable lease cost includes cancelable leases, non-fixed maintenance costs and non-recoverable transaction taxes. Supplemental cash flow information related to leases was as follows:
| Nine Months Ended
| July 31, 2020
| (in millions)
Cash paid for amounts included in the measurement of lease liabilities: |
Operating cash flow from operating leases | $ | 44 |
Non-cash right of use assets obtained in exchange for operating lease obligations | $ | 31 |
Supplemental balance sheet information related to leases was as follows:
| Financial Statement Line Item |  | July 31, 2020
|  |  | (in millions, except lease term and discount rate)
Assets: |  |  |
Operating lease: |  |  |
Right of use asset | Other assets |  | $ | 183 |
Liabilities: |  |  |
Current |  |  |
Operating lease liabilities | Other accrued liabilities |  | $ | 52 |
Long-Term |  |  |
Operating lease liabilities | Other long-term liabilities |  | $ | 133 |
Weighted average remaining lease term in years |  |  |
Operating leases |  |  | 7.9 years |
Weighted average discount rate |  |  |
Operating leases |  |  | 2.0 | %
Future minimum rents payable as of July 31, 2020 under non-cancelable leases with initial terms exceeding one year reconcile to lease liabilities included in the condensed consolidated balance sheet as follows:
|  | Operating Leases
|  | (in millions)
Remainder of 2020 |  | $ | 15 |
2021 |  | 52 |
2022 |  | 39 |
2023 |  | 26 |
2024 |  | 15 |
2025 |  | 9 |
Thereafter |  | 48 |
Total undiscounted future minimum lease payments |  | $ | 204 |
Less: amount of lease payments representing interest |  | (19 | )
Present value of future minimum lease payments |  | $ | 185 |
Less: current liabilities |  | (52 | )
Long-term lease liabilities |  | $ | 133 |
As of July 31, 2020, we had no additional significant operating or finance leases that had not yet commenced. As a lessor, we have contracts for equipment leased to customers in connection with our diagnostics business which include both operating-type lease and sales-type lease arrangements. We account for the non-lease component under the revenue recognition rules and the lease component under the leasing guidance. Equipment lease revenue for operating lease agreements is recognized as visualization kits and reagents are shipped over the life of the lease, and the cost of customer leased equipment is recorded within property, plant and equipment, net in the condensed consolidated balance sheet and depreciated over the equipment’s estimated useful life. For an arrangement that has been classified as a sales-type lease, revenue is recognized when the transfer of control of the underlying leased asset has occurred and the net investment lease recorded which is calculated at the present value of the remaining lease payments due from the lessee. Revenue allocated to the lease income for both finance/sales-type lease and operating lease rental arrangements represents less than one percent of total net revenue in the three and nine months ended July 31, 2020. As of July 31, 2020, the original cost and net book value of operating leased assets was $46 million and $13 million, respectively. As of July 31, 2020, lease receivables related to sales-type leases were $41 million.

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- Definition The entire disclosure for lessee entity's leasing arrangements including, but not limited to, all of the following: (a.) The basis on which contingent rental payments are determined, (b.) The existence and terms of renewal or purchase options and escalation clauses, (c.) Restrictions imposed by lease agreements, such as those concerning dividends, additional debt, and further leasing. + References Reference 1: http://fasb.org/us-gaap/role/ref/otherTransitionRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -URI http://asc.fasb.org/topic&trid=2208923 + Details
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