WARRANTY, COMMITMENTS AND CONTINGENCIES

9 Months Ended

Jul. 31, 2016

Commitments and Contingencies Disclosure [Abstract]

Standard Warranty

Our standard warranty term for most of our products from the date of delivery is typically three years. We accrue for standard warranty costs based on historical trends in warranty charges as a percentage of net product shipments. The accrual is reviewed regularly and periodically adjusted to reflect changes in warranty cost estimates. Estimated warranty charges are recorded within cost of products at the time related product revenue is recognized.

Activity related to the standard warranty accrual, which is included in other accrued and other long-term liabilities in our condensed consolidated balance sheet, is as follows:



	Nine Months Ended
	July 31,
	2016			2015
	(in millions)
Beginning balance	$	53		$	51
Accruals for warranties including change in estimate	16			26
Settlements made during the period	(24		)	(23		)
Ending balance	$	45		$	54

Accruals for warranties due within one year	$	23		$	42
Accruals for warranties due after one year	22			12
Ending balance	$	45		$	54

During the nine months ended July 31 2016, we reduced the standard warranty accrual by $5 million as a result of lower than expected historical warranty charges. This benefit was recognized in the three and nine months ended July 31, 2016 in the condensed consolidated statement of operations.

Commitments

There were no material changes during the nine months ended July 31, 2016 to the operating lease commitments reported in the company’s 2015 Annual Report on Form 10-K.

Contingencies

We are involved in lawsuits, claims, investigations and proceedings, including, but not limited to, patent, commercial and environmental matters, which arise in the ordinary course of business. There are no matters pending that we currently believe are reasonably possible of having a material impact to our business, consolidated financial condition, results of operations or cash flows.