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REVENUE (Notes)
9 Months Ended
Jul. 31, 2022
Revenue from Contract with Customer [Abstract]  
Revenue from Contract with Customer REVENUE
The following table presents the company’s total revenue and segment revenue disaggregated by geographical region:
Three Months Ended July 31,
20222021
Life Sciences and Applied MarketsAgilent CrossLab
Diagnostics and Genomics
TotalLife Sciences and Applied MarketsAgilent CrossLab
Diagnostics and Genomics
Total
(in millions)
Revenue by Region
Americas$336 $147 $188 $671 $289 $130 $187 $606 
Europe210 94 103 407 218 94 111 423 
Asia Pacific473 118 49 640 390 119 48 557 
Total$1,019 $359 $340 $1,718 $897 $343 $346 $1,586 
Nine Months Ended July 31,
20222021
Life Sciences and Applied MarketsAgilent CrossLab
Diagnostics and Genomics
TotalLife Sciences and Applied MarketsAgilent CrossLab
Diagnostics and Genomics
Total
(in millions)
Revenue by Region
Americas$974 $416 $577 $1,967 $864 $376 $502 $1,742 
Europe678 289 314 1,281 677 281 317 1,275 
Asia Pacific1,239 366 146 1,751 1,160 346 136 1,642 
Total$2,891 $1,071 $1,037 $4,999 $2,701 $1,003 $955 $4,659 
The following table presents the company’s total revenue disaggregated by end markets and by revenue type:
Three Months EndedNine Months Ended
July 31,July 31,
2022202120222021
(in millions)
Revenue by End Markets
Pharmaceutical and Biopharmaceutical$643 $576 $1,834 $1,628 
Chemical and Energy389 334 1,097 976 
Diagnostics and Clinical234 242 718 691 
Food151 143 446 449 
Academia and Government139 138 426 423 
Environmental and Forensics162 153 478 492 
Total$1,718 $1,586 $4,999 $4,659 
Revenue by Type
Instrumentation$737 $640 $2,074 $1,953 
Non-instrumentation and other981 946 2,925 2,706 
Total$1,718 $1,586 $4,999 $4,659 

Revenue by region is based on the ship to location of the customer. Revenue by end market is determined by the market indicator of the customer and by customer type. Instrumentation revenue includes sales from instruments, remarketed instruments and third-party products. Non-instrumentation and other revenue include sales from contract and per incident services, our companion diagnostics and our nucleic acid solutions businesses as well as sales from spare parts, consumables, reagents, vacuum pumps, subscriptions, software licenses and associated services.

Contract Balances

Contract Assets

Contract assets (unbilled accounts receivable) primarily relate to the company's right to consideration for work completed but not billed at the reporting date. The unbilled receivables are reclassified to trade receivables when billed to customers. Contract assets are generally classified as current assets and are included in "Accounts receivable, net" in the condensed consolidated balance sheet. The balances of contract assets as of July 31, 2022 and October 31, 2021 were $273 million and $197 million, respectively.

Contract Liabilities

The following table provides information about contract liabilities (deferred revenue) and the significant changes in the balances during the nine months ended July 31, 2022:
Contract
Liabilities
(in millions)
Ending balance as of October 31, 2021$519 
Net revenue deferred in the period391 
Revenue recognized that was included in the contract liability balance at the beginning of the period(336)
Change in deferrals from customer cash advances, net of revenue recognized39 
Currency translation and other adjustments(25)
Ending balance as of July 31, 2022$588 

During the nine months ended July 31, 2021 revenue recognized that was included in the contract liability balance at October 31, 2020 was $322 million.
Contract liabilities primarily relate to multiple element arrangements for which billing has occurred but transfer of control of all elements to the customer has either partially or not occurred at the balance sheet date. This includes cash received from customers for products and related installation and services in advance of the transfer of control. Contract liabilities are classified as either current in deferred revenue or long-term in other long-term liabilities in the condensed consolidated balance sheet based on the timing of when we expect to complete our performance obligation.

Contract Costs

Incremental costs of obtaining a contract with a customer are recognized as an asset if we expect the benefit of those costs to be longer than one year. We have determined that certain sales incentive programs meet the requirements to be capitalized. The change in total capitalized costs to obtain a contract was immaterial during the three and nine months ended July 31, 2022 and was included in other current and long-term assets on the condensed consolidated balance sheet. We have applied the practical expedient to expense costs as incurred for costs to obtain a contract with a customer when the amortization period would have been one year or less. These costs include the company's internal sales force compensation program, as we have determined that annual compensation is commensurate with annual sales activities.

Transaction Price Allocated to the Remaining Performance Obligations

We have applied the practical expedient in ASC 606-10-50-14 and have not disclosed information about transaction price allocated to remaining performance obligations that have original expected durations of one year or less.
The estimated revenue expected to be recognized for remaining performance obligations that have an original term of more than one year, as of July 31, 2022, was $382 million, the majority of which is expected to be recognized over the next 12 months. Remaining performance obligations primarily include extended warranty, customer manufacturing contracts, software maintenance contracts and revenue associated with lease arrangements.