Balance Sheet Details

6 Months Ended

Apr. 30, 2025

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Cash, Cash Equivalents and Restricted Cash


	As of
	April 30, 2025		October 31, 2024
	In millions
Cash and cash equivalents	$	11,667	$	14,846
Restricted cash(1)	121		259
Total	$	11,788	$	15,105

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

Inventory


	As of
	April 30, 2025		October 31, 2024
	In millions
Purchased parts and fabricated assemblies	$	5,108	$	5,441
Finished goods	2,988		2,369
Total	$	8,096	$	7,810

The Company values inventory at the lower of cost or net realizable value. Cost is computed using standard cost which approximates actual cost on a first-in, first-out basis. At each reporting period, the Company assesses the value of its inventory and writes down the cost of inventory to its net realizable value if required, for estimated excess or obsolescence. Factors influencing these adjustments include changes in future demand forecasts, market conditions, technological changes, product life-cycle and development plans, component cost trends, product pricing, physical deterioration, and quality issues. If in any period the Company anticipates a change in those factors to be less favorable than its previous estimates, additional inventory write-downs may be required and could materially impact gross margin. The write down for excess or obsolescence is charged to the provision of inventory, which is a component of cost of sales in the Condensed Consolidated Statements of Earnings. At the point of the loss recognition, a new, lower cost basis for that inventory is established, and subsequent changes in facts and circumstances do not result in the restoration or increase in that newly established cost basis. The Company recorded a net provision for excess or obsolete inventory to cost of sales totaling $105 million and $149 million for the three and six months ended April 30, 2025, respectively. For the fiscal year ended October 31, 2024, the Company recorded a net provision for excess or obsolete inventory to cost of sales totaling $89 million.

Property, Plant and Equipment, net


	As of
	April 30, 2025		October 31, 2024
	In millions
Land	$	66	$	66
Buildings and leasehold improvements	1,717		1,696
Machinery and equipment, including equipment held for lease	10,505		10,392

Gross property, plant and equipment	12,288		12,154
Accumulated depreciation	(6,881)		(6,490)
Property, plant and equipment, net	$	5,407	$	5,664

Supplier Financing Arrangements

The Company enters into supplier financing arrangements with external financial institutions. Under these arrangements, suppliers can choose to settle outstanding payment obligations at a discount. The Company holds no economic interest in suppliers' participation, nor does it provide guarantees or pledge assets under these arrangements. Invoices are settled with the financial institutions based on the original supplier payment terms. These arrangements do not alter the Company's rights and obligations towards suppliers, including scheduled payment terms. Liabilities associated with the funded participation in these arrangements, are presented within Accounts Payable on the Consolidated Balance Sheets, amounted to $490 million, and $466 million as of April 30, 2025 and October 31, 2024, respectively.

Warranties

The Company's aggregate product warranty liabilities and changes for the six months ended April 30, 2025, and the fiscal year ended October 31, 2024 were as follows:


	As of
	April 30, 2025		October 31, 2024
	In millions
Balance at beginning of period	$	301	$	318
Charges	85		173
Adjustments related to pre-existing warranties	(52)		(5)
Settlements made	(89)		(185)
Balance at end of period(1)	$	245	$	301

(1)The Company included the current portion in Other accrued liabilities, and amounts due after one year in Other non-current liabilities in the accompanying Consolidated Balance Sheets.

Severance Charges

The Company incurs costs related to employee severance and records a liability for these costs when it is probable that employees will be entitled to termination benefits and the amounts can be reasonably estimated. As of April 30, 2025, $197 million and $42 million was recorded in Other Accrued Liabilities and Other Non-current liabilities, respectively.

The following table presents the activity related to the Company’s severance liability for the period indicated:


	As of
	April 30, 2025
	In millions
Balance at beginning of period	$	49
Severance charges	241
Cash paid and other	(51)
Balance at end of period	$	239

The following table presents severance charges as included in the Condensed Consolidated Statements of Earnings for the periods indicated:


	For the three months ended April 30, 2025		For the six months ended April 30, 2025

	In millions
Cost of sales	$	62	$	63
Research and development	23		31
Selling, general and administrative	79		147
Total severance charges	$	164	$	241

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, 2025		October 31, 2024
	In millions
Accounts receivable	$	3,574	$	3,236
Unbilled receivables	335		324
Allowances	(10)		(10)
Total	$	3,899	$	3,550

The allowances for credit losses related to accounts receivable and changes for the six months ended April 30, 2025, and the fiscal year ended October 31, 2024 were as follows:


	As of
	April 30, 2025		October 31, 2024
	In millions
Balance at beginning of period	$	10	$	37
Provision for credit losses	7		41
Adjustments to existing allowances, including write offs	(7)		(68)
Balance at end of period	$	10	$	10

Sale of Trade Receivables

The Company has third-party revolving short-term financing arrangements intended to facilitate the working capital requirements of certain customers. For the three and six months ended April 30, 2025, the Company sold $0.9 billion and $1.8 billion of trade receivables, respectively. For the fiscal year ended October 31, 2024, the Company sold $3.1 billion of trade receivables. The Company recorded an obligation of $59 million and $62 million within Notes payable and short-term borrowings in its Condensed Consolidated Balance Sheets as of April 30, 2025 and October 31, 2024, respectively, related to the trade receivables sold and collected from the third-party for which the revenue recognition was deferred.

Contract Liabilities and Remaining Performance Obligations

Contract liabilities consist of deferred revenue and customer deposits. A summary of contract liabilities were as follows:


		As of
		April 30, 2025		October 31, 2024
	Location	In millions
Customer deposits	Other accrued liabilities	$	601	$	289
Customer deposits - non-current	Other non-current liabilities	69		7
Total customer deposits		$	670	$	296

Deferred revenue	Deferred revenue	$	4,172	$	3,904
Deferred revenue - non-current	Other non-current liabilities	3,630		3,578
Total deferred revenue		$	7,802	$	7,482

For the six months ended April 30, 2025, approximately $1.8 billion of revenue was recognized relating to contract liabilities recorded as of October 31, 2024.

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. As of April 30, 2025, the aggregate amount of deferred revenue, was $7.8 billion. The Company expects to recognize approximately 35% of this balance over fiscal 2025 with the remainder to be recognized thereafter. The Company receives payments in advance of completion of its contractual obligations, these payments are considered customer deposits. As customer acceptance milestones are met, the Company will recognize revenue and reduce the amount of contract liabilities. As of April 30, 2025, the aggregate amount of customer deposits was $670 million. The Company expects to recognize $601 million over the next twelve months and the remaining balance thereafter.

Costs to Obtain a Contract

As of April 30, 2025, the current and non-current portions of the capitalized costs to obtain a contract were $86 million and $132 million, respectively. As of October 31, 2024, the current and non-current portions of the capitalized costs to obtain a contract were $88 million and $136 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 Sheets. For the three and six months ended April 30, 2025, the Company amortized $27 million and $54 million, of capitalized costs to obtain a contract. For the three and six months ended April 30, 2024 the Company amortized $26 million and $52 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 Statements of Earnings.