Balance Sheet Details

9 Months Ended

Jul. 31, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Balance Sheet Details

Balance Sheet Details

Balance sheet details were as follows:

Cash, cash equivalents and restricted cash

	As of
	July 31, 2021		October 31, 2020
	In millions
Cash and cash equivalents	$	5,293	$	4,233
Restricted cash(1)	359		388
Total	$	5,652	$	4,621

(1) Restricted cash is included within Other current assets in the accompanying Condensed Consolidated Balance Sheets and is primarily related to cash received under the Company's collateral securities agreements for its derivative instruments and cash restricted under the fixed-term securitization program for the issuance of asset-backed debt securities.

Inventory

	As of
	July 31, 2021		October 31, 2020
	In millions
Finished goods	$	1,373	$	1,197
Purchased parts and fabricated assemblies	2,569		1,477
Total	$	3,942	$	2,674

Property, Plant and Equipment

	As of
	July 31, 2021		October 31, 2020
	In millions
Land	$	75	$	89
Buildings and leasehold improvements	1,697		1,886
Machinery and equipment, including equipment held for lease	9,855		9,624
	11,627		11,599
Accumulated depreciation	(6,117)		(5,974)
Total	$	5,510	$	5,625

Warranties

The Company's aggregate product warranty liability as of July 31, 2021, and changes were as follows:

	Nine Months Ended July 31, 2021
	In millions
Balance at beginning of period	$	385
Charges	159
Adjustments related to pre-existing warranties	(27)
Settlements made	(180)
Balance at end of period	$	337

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
	July 31, 2021		October 31, 2020
	In millions
Accounts receivable, net
Accounts receivable	$	3,125	$	3,227
Unbilled receivables	214		205
Allowances	(42)		(46)
Total	$	3,297	$	3,386

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

	As of
	July 31, 2021		October 31, 2020
	In millions
Balance at beginning of the period	$	46	$	31
Provision for credit losses	8		29
Write off's, net of recoveries	(12)		(14)
Balance at end of the period	$	42	$	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 nine months ended July 31, 2021, the Company sold $1 billion and $3.1 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 $66 million and $75 million in Notes payable and short-term borrowings in its Condensed Consolidated Balance Sheets as of July 31, 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 $6.4 billion and $6.2 billion as of July 31, 2021 and October 31, 2020, respectively. During the nine months ended July 31, 2021, approximately $2.7 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 July 31, 2021, the aggregate amount of remaining performance obligations was $6.4 billion. The Company expects to recognize approximately 21% of this amount as revenue over the remainder of the fiscal year.

Costs to Obtain a Contract

As of July 31, 2021, the current and non-current portions of the capitalized costs to obtain a contract were $60 million and $86 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 nine months ended July 31, 2021, the Company amortized $16 million and $48 million respectively, of capitalized costs to obtain a contract. For the three and nine months ended July 31, 2020, the Company amortized $15 million and $43 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.