Balance Sheet Details

6 Months Ended

Apr. 30, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Balance sheet details were as follows:

Cash, cash equivalents and restricted cash


	As of
	April 30, 2021		October 31, 2020
	In millions
Cash and cash equivalents	$	4,625	$	4,233
Restricted cash(1)	131		388
Total	$	4,756	$	4,621

(1) The Company includes restricted cash in Other current assets in the accompanying Condensed Consolidated Balance Sheets.

Inventory


	As of
	April 30, 2021		October 31, 2020
	In millions
Finished goods	$	1,296	$	1,197
Purchased parts and fabricated assemblies	1,821		1,477
Total	$	3,117	$	2,674

Property, Plant and Equipment


	As of
	April 30, 2021		October 31, 2020
	In millions
Land	$	75	$	89
Buildings and leasehold improvements	1,662		1,886
Machinery and equipment, including equipment held for lease	9,848		9,624

	11,585		11,599
Accumulated depreciation	(6,105)		(5,974)
Total	$	5,480	$	5,625

Warranties

The Company's aggregate product warranty liability as of April 30, 2021, and changes were as follows:


	Six Months Ended April 30, 2021
	In millions
Balance at beginning of period	$	385
Charges	102
Adjustments related to pre-existing warranties	(26)
Settlements made	(117)
Balance at end of period	$	344

Contract balances

The Company’s contract balances consist of contract assets, contract liabilities, and costs to obtain a contract with a customer.

Contract Assets

A summary of accounts receivable, net, including unbilled receivables was as follows:


	As of
	April 30, 2021		October 31, 2020
	In millions
Accounts receivable, net
Accounts receivable	$	2,788	$	3,227
Unbilled receivables	194		205
Allowances	(46)		(46)
Total	$	2,936	$	3,386

The allowances for credit losses related to accounts receivable and changes therein were as follows:


	As of
	April 30, 2021		October 31, 2020
	In millions
Balance at beginning of the period	$	46	$	31
Provision for credit losses	5		29
Write off's, net of recoveries	(5)		(14)
Balance at end of the period	$	46	$	46

Sale of Trade Receivables

The Company has third-party revolving short-term financing arrangements intended to facilitate the working capital requirements of certain customers. During the three and six months ended April 30, 2021, the Company sold $1.0 billion and $2.1 billion of trade receivables, respectively. During the fiscal year ended October 31, 2020, the Company sold $3.9 billion of trade receivables. The Company recorded an obligation of $71 million and $75 million in Notes payable and short-term borrowings in its Condensed Consolidated Balance Sheets as of April 30, 2021 and October 31, 2020 respectively, related to the trade receivables sold and collected from the third-party for which the revenue recognition was deferred.

Contract Liabilities

Contract liabilities consist of deferred revenue. The aggregate balance of current and non-current deferred revenue was $6.3 billion and $6.2 billion as of April 30, 2021 and October 31, 2020, respectively. During the six months ended April 30, 2021, approximately $2.1 billion of the deferred revenue as of October 31, 2020 was recognized as revenue.

Remaining Performance Obligations

Revenue allocated to remaining performance obligations represents contract work that has not yet been performed and does not include contracts where the customer is not committed. Remaining performance obligations estimates are subject to change and are affected by several factors, including contract terminations, changes in the scope of contracts, adjustments for revenue that has not materialized and adjustments for currency.

Remaining performance obligations consist of deferred revenue. As of April 30, 2021, the aggregate amount of remaining performance obligations was $6.3 billion. The Company expects to recognize approximately 34% of this amount as revenue over the remainder of the fiscal year.

Costs to Obtain a Contract

As of April 30, 2021, the current and non-current portions of the capitalized costs to obtain a contract were $57 million and $82 million, respectively. As of October 31, 2020, the current and non-current portions of the capitalized costs to obtain a contract were $54 million and $76 million, respectively. The current and non-current portions of the capitalized costs to obtain a contract were included in Other current assets, and Long-term financing receivables and other assets, respectively, in the Condensed Consolidated Balance Sheet. For the three and six months ended April 30, 2021, the Company amortized $16 million and $32 million respectively, of capitalized costs to obtain a contract. For the three and six months ended April 30, 2020, the Company amortized $14 million and $28 million respectively, of capitalized costs to obtain a contract. The amortized capitalized costs to obtain a contract are included in Selling, general and administrative expense in the Condensed Consolidated Statement of Earnings.