Revision of Prior Period Financial Statements (Tables)

9 Months Ended

Jul. 31, 2023

Accounting Changes and Error Corrections [Abstract]

Schedule of Revision of Prior Period Financial Statements

A summary of revisions to the Company’s previously reported financial statements is presented below.

Revised Consolidated Condensed Statements of Earnings

	For the three months ended January 31, 2023						For the three months ended January 31, 2022
	As reported		Adjustment		As revised		As reported		Adjustment		As revised
	In millions, except per share amounts
Net revenue	$	13,828	$	(30)	$	13,798	$	17,028	$	(15)	$	17,013
Cost of revenue	$	11,019	$	(8)	$	11,011	$	13,643	$	(21)	$	13,622
Research and development	$	403	$	—	$	403	$	418	$	60	$	478
Total costs and expenses	$	13,063	$	(8)	$	13,055	$	15,669	$	39	$	15,708
Earnings from operations	$	765	$	(22)	$	743	$	1,359	$	(54)	$	1,305
Interest and other, net	$	(181)	$	—	$	(181)	$	(32)	$	2	$	(30)
Earnings before taxes	$	584	$	(22)	$	562	$	1,327	$	(52)	$	1,275
Provision for taxes	$	(97)	$	4	$	(93)	$	(241)	$	18	$	(223)
Net earnings	$	487	$	(18)	$	469	$	1,086	$	(34)	$	1,052
Basic earnings per share	$	0.49	$	(0.02)	$	0.47	$	1.00	$	(0.03)	$	0.97
Diluted earnings per share	$	0.49	$	(0.02)	$	0.47	$	0.99	$	(0.03)	$	0.96

	For the three months ended April 30, 2023						For the six months ended April 30, 2023
	As reported		Adjustment		As revised		As reported		Adjustment		As revised
	In millions, except per share amounts
Net revenue	$	12,913	$	(6)	$	12,907	$	26,741	$	(36)	$	26,705
Cost of revenue	$	9,984	$	9	$	9,993	$	21,003	$	1	$	21,004
Total costs and expenses	$	12,151	$	9	$	12,160	$	25,214	$	1	$	25,215
Earnings from operations	$	762	$	(15)	$	747	$	1,527	$	(37)	$	1,490
Earnings before taxes	$	602	$	(15)	$	587	$	1,186	$	(37)	$	1,149
Benefit from taxes	$	464	$	3	$	467	$	367	$	7	$	374
Net earnings	$	1,066	$	(12)	$	1,054	$	1,553	$	(30)	$	1,523
Basic earnings per share	$	1.08	$	(0.02)	$	1.06	$	1.57	$	(0.03)	$	1.54
Diluted earnings per share	$	1.07	$	(0.01)	$	1.06	$	1.56	$	(0.03)	$	1.53

	For the three months ended April 30, 2022						For the six months ended April 30, 2022
	As reported		Adjustment		As revised		As reported		Adjustment		As revised
	In millions, except per share amounts
Net revenue	$	16,490	$	(15)	$	16,475	$	33,518	$	(30)	$	33,488
Cost of revenue	$	13,157	$	21	$	13,178	$	26,800	$	—	$	26,800
Research and development	$	425	$	—	$	425	$	843	$	60	$	903
Restructuring and other charges	$	82	$	(15)	$	67	$	150	$	(15)	$	135
Total costs and expenses	$	15,212	$	6	$	15,218	$	30,881	$	45	$	30,926
Earnings from operations	$	1,278	$	(21)	$	1,257	$	2,637	$	(75)	$	2,562
Interest and other, net	$	(39)	$	(2)	$	(41)	$	(71)	$	—	$	(71)
Earnings before taxes	$	1,239	$	(23)	$	1,216	$	2,566	$	(75)	$	2,491
Provision for taxes	$	(239)	$	4	$	(235)	$	(480)	$	22	$	(458)
Net earnings	$	1,000	$	(19)	$	981	$	2,086	$	(53)	$	2,033
Basic earnings per share	$	0.95	$	(0.02)	$	0.93	$	1.96	$	(0.05)	$	1.91
Diluted earnings per share	$	0.94	$	(0.02)	$	0.92	$	1.94	$	(0.05)	$	1.89

	For the three months ended July 31, 2022						For the nine months ended July 31, 2022
	As reported		Adjustment		As revised		As reported		Adjustment		As revised
	In millions, except per share amounts
Net revenue	$	14,664	$	(16)	$	14,648	$	48,182	$	(46)	$	48,136
Research and development	$	368	$	—	$	368	$	1,211	$	60	$	1,271
Restructuring and other charges	$	13	$	—	$	13	$	163	$	(15)	$	148
Total costs and expenses	$	13,392	$	—	$	13,392	$	44,273	$	45	$	44,318
Earnings from operations	$	1,272	$	(16)	$	1,256	$	3,909	$	(91)	$	3,818
Earnings before taxes	$	1,202	$	(16)	$	1,186	$	3,768	$	(91)	$	3,677
Provision for taxes	$	(83)	$	19	$	(64)	$	(563)	$	41	$	(522)
Net earnings	$	1,119	$	3	$	1,122	$	3,205	$	(50)	$	3,155
Basic earnings per share	$	1.09	$	0.01	$	1.10	$	3.05	$	(0.05)	$	3.00
Diluted earnings per share	$	1.08	$	—	$	1.08	$	3.01	$	(0.04)	$	2.97

Revised Consolidated Condensed Statements of Comprehensive Income (Loss)

	For the three months ended January 31, 2023						For the three months ended January 31, 2022
	As reported		Adjustment		As revised		As reported		Adjustment		As revised
	In millions
Net earnings	$	487	$	(18)	$	469	$	1,086	$	(34)	$	1,052
(Losses) gains on unrealized components of defined benefit plans	$	(38)	$	37	$	(1)	$	21	$	(20)	$	1
Other comprehensive (loss) income before taxes	$	(961)	$	37	$	(924)	$	270	$	(20)	$	250
Benefit from (provision for) taxes	$	192	$	(9)	$	183	$	(26)	$	6	$	(20)
Other comprehensive (loss) income, net of taxes	$	(769)	$	28	$	(741)	$	244	$	(14)	$	230
Comprehensive (loss) income	$	(282)	$	10	$	(272)	$	1,330	$	(48)	$	1,282

	For the three months ended April 30, 2023						For the six months ended April 30, 2023
	As reported		Adjustment		As revised		As reported		Adjustment		As revised
	In millions
Net earnings	$	1,066	$	(12)	$	1,054	$	1,553	$	(30)	$	1,523
Gains (losses) on unrealized components of defined benefit plans	$	6	$	—	$	6	$	(32)	$	37	$	5
Other comprehensive income (loss) before taxes	$	110	$	—	$	110	$	(851)	$	37	$	(814)
(Provision for) benefit from taxes	$	(22)	$	—	$	(22)	$	170	$	(9)	$	161
Other comprehensive income (loss), net of taxes	$	88	$	—	$	88	$	(681)	$	28	$	(653)
Comprehensive income	$	1,154	$	(12)	$	1,142	$	872	$	(2)	$	870

	For the three months ended April 30, 2022						For the six months ended April 30, 2022
	As reported		Adjustment		As revised		As reported		Adjustment		As revised
	In millions
Net earnings	$	1,000	$	(19)	$	981	$	2,086	$	(53)	$	2,033
Gains on unrealized components of defined benefit plans	$	1	$	—	$	1	$	22	$	(20)	$	2
Other comprehensive income before taxes	$	453	$	—	$	453	$	723	$	(20)	$	703
Provision for taxes	$	(90)	$	—	$	(90)	$	(116)	$	6	$	(110)
Other comprehensive income, net of taxes	$	363	$	—	$	363	$	607	$	(14)	$	593
Comprehensive income	$	1,363	$	(19)	$	1,344	$	2,693	$	(67)	$	2,626

	For the three months ended July 31, 2022						For the nine months ended July 31, 2022
	As reported		Adjustment		As revised		As reported		Adjustment		As revised
	In millions
Net earnings	$	1,119	$	3	$	1,122	$	3,205	$	(50)	$	3,155
Gains on unrealized components of defined benefit plans	$	10	$	—	$	10	$	32	$	(20)	$	12
Other comprehensive (loss) income before taxes	$	(48)	$	—	$	(48)	$	675	$	(20)	$	655
Provision for taxes	$	(62)	$	—	$	(62)	$	(178)	$	6	$	(172)
Other comprehensive (loss) income, net of taxes	$	(110)	$	—	$	(110)	$	497	$	(14)	$	483
Comprehensive income	$	1,009	$	3	$	1,012	$	3,702	$	(64)	$	3,638

Revised Consolidated Condensed Balance Sheets

	For the fiscal years ended October 31
	2022
	As reported		Adjustment		As revised
	In millions
Inventory	$	7,595	$	19	$	7,614
Other current assets	$	4,515	$	(84)	$	4,431
Total current assets	$	19,801	$	(65)	$	19,736
Other non-current assets	$	7,471	$	(28)	$	7,443
Total assets	$	38,587	$	(93)	$	38,494
Accounts payable	$	15,284	$	19	$	15,303
Other current liabilities	$	10,651	$	17	$	10,668
Total current liabilities	$	26,153	$	36	$	26,189
Other non-current liabilities	$	4,556	$	(22)	$	4,534
Accumulated deficit	$	(4,413)	$	(79)	$	(4,492)
Accumulated other comprehensive income	$	313	$	(28)	$	285
Total stockholders’ deficit	$	(2,918)	$	(107)	$	(3,025)
Total liabilities and stockholders’ deficit	$	38,587	$	(93)	$	38,494

Revised Consolidated Condensed Statements of Cash Flows

	For the three months ended January 31, 2023						For the three months ended January 31, 2022
	As reported		Adjustment		As revised		As reported		Adjustment		As revised
	In millions
Cash flows from operating activities:
Net earnings	$	487	$	(18)	$	469	$	1,086	$	(34)	$	1,052
Deferred taxes on earnings	$	(136)	$	(4)	$	(140)	$	5	$	—	$	5
Accounts receivable	$	244	$	—	$	244	$	337	$	25	$	362
Inventory	$	218	$	12	$	230	$	(1,277)	$	—	$	(1,277)
Accounts payable	$	(1,712)	$	(19)	$	(1,731)	$	2,035	$	—	$	2,035
Taxes on earnings	$	220	$	—	$	220	$	(6)	$	(17)	$	(23)
Other assets and liabilities	$	250	$	29	$	279	$	(988)	$	26	$	(962)
Net cash (used in) provided by operating activities	$	(16)	$	—	$	(16)	$	1,657	$	—	$	1,657

	For the six months ended April 30, 2023						For the six months ended April 30, 2022
	As reported		Adjustment		As revised		As reported		Adjustment		As revised
	In millions
Cash flows from operating activities:
Net earnings	$	1,553	$	(30)	$	1,523	$	2,086	$	(53)	$	2,033
Restructuring and other charges	$	341	$	—	$	341	$	150	$	(15)	$	135
Deferred taxes on earnings	$	(817)	$	(8)	$	(825)	$	(5)	$	4	$	(1)
Accounts receivable	$	426	$	—	$	426	$	91	$	25	$	116
Inventory	$	354	$	20	$	374	$	(1,270)	$	—	$	(1,270)
Accounts payable	$	(1,914)	$	(19)	$	(1,933)	$	981	$	—	$	981
Taxes on earnings	$	329	$	1	$	330	$	(23)	$	(25)	$	(48)
Other assets and liabilities	$	(153)	$	36	$	(117)	$	(555)	$	64	$	(491)
Net cash provided by operating activities	$	620	$	—	$	620	$	2,165	$	—	$	2,165

	For the nine months ended July 31, 2022
	As reported		Adjustment		As revised
	In millions
Cash flows from operating activities:
Net earnings	$	3,205	$	(50)	$	3,155
Restructuring and other charges	$	163	$	(15)	$	148
Deferred taxes on earnings	$	47	$	4	$	51
Accounts receivable	$	1,076	$	25	$	1,101
Taxes on earnings	$	(120)	$	(45)	$	(165)
Other assets and liabilities	$	(1,677)	$	81	$	(1,596)
Net cash provided by operating activities	$	2,559	$	—	$	2,559