REVENUE (Notes)

3 Months Ended

Jan. 31, 2024

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 January 31,
	2024								2023
	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	$	244	$	164	$	222	$	630	$	286	$	154	$	247	$	687
Europe	224		111		123		458		239		98		119		456
Asia Pacific	378		130		62		570		418		129		66		613
Total	$	846	$	405	$	407	$	1,658	$	943	$	381	$	432	$	1,756

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

		Three Months Ended
		January 31,
		2024		2023
	(in millions)
Revenue by End Markets
Pharmaceutical and Biopharmaceutical		$	565	$	639
Chemicals and Advanced Materials		392		406
Diagnostics and Clinical		228		239
Food		157		160
Academia and Government		150		146
Environmental and Forensics		166		166
Total		$	1,658	$	1,756
Revenue by Type
Instrumentation		$	630	$	759
Non-instrumentation and other		1,028		997
Total		$	1,658	$	1,756

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 January 31, 2024, and October 31, 2023, were $239 million and $252 million, respectively.

Contract Liabilities

The following table provides information about contract liabilities (deferred revenue) and the significant changes in the balances during the three months ended January 31, 2024:

	Contract Liabilities
	(in millions)
Ending balance as of October 31, 2023	$	616
Net revenue deferred in the period	254
Revenue recognized that was included in the contract liability balance at the beginning of the period	(229)
Change in deferrals from customer cash advances, net of revenue recognized	(5)
Currency translation and other adjustments	8
Ending balance as of January 31, 2024	$	644

During the three months ended January 31, 2023 revenue recognized that was included in the contract liability balance at October 31, 2022 was $196 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 months ended January 31, 2024, 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 January 31, 2024, was $344 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, software maintenance contracts and revenue associated with lease arrangements.