Balance Sheet Details

6 Months Ended

Apr. 30, 2020

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
	April 30, 2020		October 31, 2019
	In millions
Cash and cash equivalents	$	5,131	$	3,753
Restricted cash(1)	859		323
Cash, cash equivalents and restricted cash	$	5,990	$	4,076

(1) The Company includes restricted cash in Other current assets in the accompanying Condensed Consolidated Balance Sheets.

Inventory

	As of
	April 30, 2020		October 31, 2019
	In millions
Finished goods	$	1,371	$	1,198
Purchased parts and fabricated assemblies	2,105		1,189
Total	$	3,476	$	2,387

Property, Plant and Equipment

	As of
	April 30, 2020		October 31, 2019
	In millions
Land	$	93	$	241
Buildings and leasehold improvements	1,941		2,196
Machinery and equipment, including equipment held for lease	9,515		9,464
	11,549		11,901
Accumulated depreciation	(5,961)		(5,847)
Total	$	5,588	$	6,054

Warranties

The Company's aggregate product warranty liability as of April 30, 2020, and changes were as follows:

	Six Months Ended April 30, 2020
	In millions
Balance at beginning of period	$	400
Charges	117
Adjustments related to pre-existing warranties	(2)
Settlements made	(122)
Balance at end of period	$	393

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
	April 30, 2020		October 31, 2019
	In millions
Accounts receivable, net
Accounts receivable	$	2,438	$	2,782
Unbilled receivables	210		206
Allowance for doubtful accounts	(38)		(31)
Total	$	2,610	$	2,957

Contract Liabilities

Contract liabilities consist of deferred revenue. The aggregate balance of current and non-current deferred revenue was $6.0 billion as of both April 30, 2020 and October 31, 2019. During the six months ended April 30, 2020, approximately $2.1 billion of the deferred revenue as of October 31, 2019 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 April 30, 2020, the aggregate amount of remaining performance obligations was $6.0 billion. The Company expects to recognize approximately 34% of this amount as revenue over the remaining fiscal year.

Costs to Obtain a Contract

As of April 30, 2020, the current and non-current portions of the capitalized costs to obtain a contract were $51 million and $74 million, which were included in Other current assets and Long-term financing receivables and other assets, respectively, in the Condensed Consolidated Balance Sheet. As of October 31, 2019, the current and non-current portions of the capitalized costs to obtain a contract were $49 million and $74 million. For the three and six months ended April 30, 2020, the Company amortized $14 million and $28 million, respectively, of capitalized costs to obtain a contract which are included in Selling, general and administrative expense. For the three and six months ended April 30, 2019, the Company amortized $12 million and $22 million, respectively, of capitalized costs to obtain a contract.