SUPPLEMENTAL FINANCIAL INFORMATION (Notes)

3 Months Ended

Jan. 31, 2026

Additional Financial Information Disclosure

12. SUPPLEMENTAL FINANCIAL INFORMATION

The following tables provide details of selected balance sheet items:

Cash, cash equivalents, and restricted cash


	January 31, 2026		October 31, 2025
	(in millions)
Cash and cash equivalents	$	2,178	$	1,873
Restricted cash included in other current assets	15		15
Restricted cash included in other assets	2		2
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows	$	2,195	$	1,890

Restricted cash includes deficit reduction contributions to an escrow account for one of our non-U.S. defined benefit pension plans and deposits held as collateral against bank guarantees.

Inventory


	January 31, 2026		October 31, 2025
	(in millions)
Finished goods	$	435	$	425
Purchased parts and fabricated assemblies	613		625
Total inventory	$	1,048	$	1,050

Leases

The following table summarizes the components of our lease cost:


	Three Months Ended
	January 31,
		2026		2025
		(in millions)
Operating lease cost		$	17	$	15
Variable lease cost		$	6	$	5

Supplemental information related to our operating leases was as follows:


	Three Months Ended
	January 31,
	2026		2025
	(in millions)
Cash payment for operating leases	$	17	$	14
Right-of-use assets obtained in exchange for operating lease obligations	$	6	$	6

Standard warranty

Warranties on products sold through direct sales channels are primarily for one year. Warranties for products sold through distribution channels are primarily for three years. We accrue for standard warranty costs based on historical trends in warranty charges. The accrual is reviewed regularly and periodically adjusted to reflect changes in warranty cost estimates. Estimated warranty charges are recorded within “cost of products” at the time related product revenue is recognized.

Activity related to the standard warranty accrual, which is included in “other accrued liabilities” and “other long-term liabilities” in the condensed consolidated balance sheet, was as follows:


	Three Months Ended
	January 31,
	2026		2025
	(in millions)
Beginning balance	$	30	$	31
Accruals for warranties, including change in estimates	7		5
Settlements made during the period	(7)		(6)
Ending balance	$	30	$	30

Accruals for warranties due within one year	$	19	$	18
Accruals for warranties due after one year	11		12
Ending balance	$	30	$	30

Other current assets


	January 31, 2026		October 31, 2025
	(in millions)

Prepaid assets	$	273	$	285
Tax receivables	113		35
Other current assets	175		166
Total other current assets	$	561	$	486

Prepaid assets include deposits paid in advance to contract manufacturers of $166 million and $176 million as of January 31, 2026 and October 31, 2025, respectively.

Keysight Technologies, Inc. 10-Q