REVENUE (Notes)

6 Months Ended

Apr. 30, 2021

Revenue from Contract with Customer [Abstract]

Revenue from Contract with Customer

REVENUE

The following table presents the company’s total revenue and segment revenue disaggregated by geographical region:

	Three Months Ended April 30,
	2021								2020
	Life Sciences and Applied Markets		Agilent CrossLab		Diagnostics and Genomics		Total		Life Sciences and Applied Markets		Agilent CrossLab		Diagnostics and Genomics		Total
	(in millions)
Revenue by Region
Americas	$	231	$	187	$	163	$	581	$	170	$	161	$	126	$	457
Europe	155		154		106		415		111		131		92		334
Asia Pacific	288		195		46		529		245		157		45		447
Total	$	674	$	536	$	315	$	1,525	$	526	$	449	$	263	$	1,238

	Six Months Ended April 30,
	2021								2020
	Life Sciences and Applied Markets		Agilent CrossLab		Diagnostics and Genomics		Total		Life Sciences and Applied Markets		Agilent CrossLab		Diagnostics and Genomics		Total
	(in millions)
Revenue by Region
Americas	$	455	$	366	$	315	$	1,136	$	379	$	328	$	244	$	951
Europe	345		301		206		852		278		264		184		726
Asia Pacific	596		401		88		1,085		507		327		84		918
Total	$	1,396	$	1,068	$	609	$	3,073	$	1,164	$	919	$	512	$	2,595

The following table presents the company’s total revenue disaggregated by end markets and by revenue type:

	Three Months Ended				Six Months Ended
	April 30,				April 30,
	2021		2020		2021		2020
	(in millions)
Revenue by End Markets
Pharmaceutical and Biopharmaceutical	$	531	$	400	$	1,052	$	823
Chemical and Energy	314		267		642		579
Diagnostics and Clinical	233		200		449		394
Food	144		114		306		244
Academia and Government	143		115		285		256
Environmental and Forensics	160		142		339		299
Total	$	1,525	$	1,238	$	3,073	$	2,595
Revenue by Type
Instrumentation	$	632	$	491	$	1,313	$	1,084
Non-instrumentation and other	893		747		1,760		1,511
Total	$	1,525	$	1,238	$	3,073	$	2,595

Revenue by region is based on the ship to location of the customer. Revenue by end market is determined by the market indicator of the customer and by customer type. Instrumentation revenue includes sales from instruments, remarketed instruments and third-party products. Non-instrumentation and other revenue include sales from contract and per incident services, our companion diagnostics and our nucleic acid solutions businesses as well as sales from spare parts, consumables, reagents, vacuum pumps, subscriptions, software licenses and associated services.

Contract Balances

Contract Assets

Contract assets (unbilled accounts receivable) primarily relate to the company's right to consideration for work completed but not billed at the reporting date. The unbilled receivables are reclassified to trade receivables when billed to customers. Contract assets are generally classified as current assets and are included in "Accounts receivable, net" in the condensed consolidated balance sheet. The balances of contract assets as of April 30, 2021 and October 31, 2020 were $165 million and $153 million, respectively. The increase in unbilled receivables during the six months ended April 30, 2021 is a result of recognition of revenue upon the transfer of the control to the customer.

Contract Liabilities

The following table provides information about contract liabilities (deferred revenue) and the significant changes in the balances during the six months ended April 30, 2021:

	Contract Liabilities
	(in millions)
Ending balance as of October 31, 2020	$	446
Net revenue deferred in the period	304
Revenue recognized that was included in the contract liability balance at the beginning of the period	(267)
Change in deferrals from customer cash advances, net of revenue recognized	7
Currency translation and other adjustments	7
Ending balance as of April 30, 2021	$	497

During the six months ended April 30, 2020 revenue recognized that was included in the contract liability balance at October 31, 2019 was $226 million.

Contract liabilities primarily relate to multiple element arrangements for which billing has occurred but transfer of control of all elements to the customer has either partially or not occurred at the balance sheet date. This includes cash received from customers for products and related installation and services in advance of the transfer of control. Contract liabilities are classified as either current in deferred revenue or long-term in other long-term liabilities in the condensed consolidated balance sheet based on the timing of when we expect to complete our performance obligation.

Contract Costs

Incremental costs of obtaining a contract with a customer are recognized as an asset if we expect the benefit of those costs to be longer than one year. We have determined that certain sales incentive programs meet the requirements to be capitalized. The change in total capitalized costs to obtain a contract was immaterial during the three and six months ended April 30, 2021 and was included in other current and long-term assets on the condensed consolidated balance sheet. We have applied the practical expedient to expense costs as incurred for costs to obtain a contract with a customer when the amortization period would have been one year or less. These costs include the company's internal sales force compensation program, as we have determined that annual compensation is commensurate with annual sales activities.

Transaction Price Allocated to the Remaining Performance Obligations

We have applied the practical expedient in ASC 606-10-50-14 and have not disclosed information about transaction price allocated to remaining performance obligations that have original expected durations of one year or less.

The estimated revenue expected to be recognized for remaining performance obligations that have an original term of more than one year, as of April 30, 2021, was $228 million, the majority of which is expected to be recognized over the next 12 months. Remaining performance obligations primarily include extended warranty, customer manufacturing contracts, and software maintenance contracts and revenue associated with lease arrangements.