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DERIVATIVES
 9 Months Ended
Jul. 31, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVES
9.    DERIVATIVES
We are exposed to foreign currency exchange rate fluctuations and interest rate changes in the normal course of our business. As part of our risk management strategy, we use derivative instruments, primarily forward contracts, cross-currency swaps, and interest rate swaps, to hedge economic and/or accounting exposures resulting from changes in foreign currency exchange rates and interest rates.
Fair Value Hedges
We enter into interest rate swap contracts to mitigate the interest rate exposure on our senior notes due to changes in the benchmark interest rate. These derivative instruments are designated and qualify as fair value hedges under the criteria prescribed in the authoritative accounting guidance. For fair value hedges, the changes in the fair value of both the hedging instruments and the underlying debt obligations are immediately recognized in earnings.
In the first quarter of fiscal year 2026, we entered into fixed-to-floating interest rate swap contracts with an aggregate notional amount of $600 million in connection with our 2034 Senior Notes. The change in the fair value of these contracts is recognized within “other long-term liabilities” in the condensed consolidated balance sheet with an offset to the carrying value of the related long-term debt.
Cash Flow Hedges
We enter into foreign exchange contracts to hedge our forecasted operational cash flow exposures resulting from changes in foreign currency exchange rates. These foreign exchange contracts, carried at fair value, have maturities based on a rolling period of up to twelve months. These derivative instruments are designated and qualify as cash flow hedges under the criteria prescribed in the authoritative guidance.
In 2020, we entered into forward-starting interest rate swaps with an aggregate notional amount of $600 million in connection with future interest payments on the $600 million in unsecured senior notes (“2034 Senior Notes”). In 2023, we terminated the interest rate swap agreements, resulting in a deferred gain of $107 million recognized in “accumulated other comprehensive income (loss)” that is being amortized to interest expense over the term of the 2034 Senior Notes. The remaining unamortized gain related to the interest rate swap agreements was $87 million as of July 31, 2026.
Net Investment Hedges
We hedge certain net investment positions in foreign subsidiaries. Changes in the fair value of derivative instruments designated as net investment hedges are recognized in accumulated other comprehensive income.
In the first quarter of fiscal year 2026, we entered into cross-currency swaps with an aggregate notional amount of $300 million to mitigate foreign currency exposure related to a portion of our Japanese Yen net investment in certain foreign subsidiaries. These hedges are designated as net investment hedges under the criteria prescribed in the authoritative accounting guidance. The change in the value of the derivative instrument included in the assessment of effectiveness is recognized in foreign currency translation within “accumulated other comprehensive income (loss)” in the condensed consolidated balance sheet, with an offset to “other assets.” Amounts representing hedge components excluded from the assessment of effectiveness are recognized in “interest expense” in the condensed consolidated statement of operations.
Other Hedges
We periodically enter into foreign exchange contracts to hedge monetary assets and liabilities that are denominated in currencies other than the functional currency of our subsidiaries.
Additionally, in connection with the acquisition of Spirent, we entered into foreign exchange forward contracts to mitigate the currency exchange risk associated with the payment of the purchase price in pounds sterling. The aggregate notional amount of the currencies hedged was 1.2 billion pounds sterling. These foreign exchange contracts did not qualify for hedge accounting treatment and were not designated as hedging instruments. During the nine months ended July 31, 2025, the settlement of these contracts provided $60 million in cash. In April 2025, we entered into new foreign exchange contracts with the same aggregate notional amount, which were subsequently settled in the fourth quarter of fiscal year 2025. For the three and nine months ended July 31, 2025, the aggregate net result on all these foreign exchange contracts was a loss of $14 million and a gain of $33 million, respectively, recorded in “other income (expense), net” in the condensed consolidated statement of operations.
The number of open foreign exchange forward contracts designated as “cash flow hedges” and “not designated as hedging instruments” were 180 and 86, respectively, as of July 31, 2026. The aggregated notional amounts by currency and designation as of July 31, 2026 were as follows:
Derivatives in Cash Flow Hedging RelationshipsDerivatives Not Designated as Hedging Instruments
Forward
Contracts		Forward
Contracts
CurrencyBuy/(Sell)Buy/(Sell)
(in millions)
Euro$4 $62 
Pounds Sterling5 66 
Singapore Dollar32 4 
Malaysian Ringgit140 17 
Japanese Yen(158)(77)
Other currencies(28)40 
Total$(5)$112 
Derivative instruments are subject to master netting arrangements and are disclosed at their gross fair value in the condensed consolidated balance sheet. The gross fair values and balance sheet presentation of derivative instruments held as of July 31, 2026 and October 31, 2025 were as follows:
Fair Values of Derivative Instruments
Assets DerivativesLiabilities Derivatives
Fair ValueFair Value
Balance Sheet LocationJuly 31, 2026October 31, 2025Balance Sheet LocationJuly 31, 2026October 31, 2025
(in millions)
Derivatives designated as hedging instruments:
Fair value hedges
Interest rate swap contracts
Other assets$— $— Other long-term liabilities$20 $— 
Cash flow hedges
Foreign exchange contracts
Other current assets3 9 Other accrued liabilities5 2 
Net investment hedges
Cross-currency swap contracts
Other assets1 — Other long-term liabilities— — 
Derivatives not designated as hedging instruments:
Foreign exchange contracts
Other current assets3 5 Other accrued liabilities2 6 
Total derivatives$7 $14 $27 $8 
The effect of derivative instruments for contracts designated as hedging instruments and not designated as hedging instruments in the condensed consolidated statement of operations was as follows:
Three Months EndedNine Months Ended
July 31,July 31,
2026202520262025
(in millions)
Derivatives designated as hedging instruments:
Cash flow hedges
Gain (loss) recognized in accumulated other comprehensive income (loss)$(2)$5 $5 $2 
Gain (loss) reclassified from accumulated other comprehensive income (loss) into earnings:
Cost of sales$2 $(3)$10 $1 
Selling, general and administrative$— $2 $3 $2 
Interest expense$3 $3 $8 $8 
Gain (loss) excluded from effectiveness testing recognized in earnings based on amortization approach:
Cost of sales$1 $1 $3 $3 
Selling, general and administrative$— $(1)$— $(1)
Net investment hedges
Gain (loss) recognized in accumulated other comprehensive income (loss)$10 $— $1 $— 
Gain (loss) excluded from effectiveness testing recognized in earnings:
Interest expense$1 $— $3 $— 
Derivatives not designated as hedging instruments:
Gain (loss) recognized in other income (expense), net$(4)$(12)$3 $43 
As of July 31, 2026, the estimated amount expected to be reclassified from accumulated other comprehensive income (loss) to earnings within the next twelve months is a net gain of $8 million.