Change in deferrals from customer cash advances, net of revenue recognized

AGILENT TECHNOLOGIES, INC.NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - (Continued)   
  
  
  
The following table presents the company’s total revenue disaggregated by end markets and by revenue type: 

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Three Months Ended |  | Nine Months Ended  |
|  | July 31, |  | July 31, |
|  | 2022 |  | 2021 |  | 2022 |  | 2021 |
|  | (in millions) |
| Revenue by End Markets |  |  |  |  |  |  |  |
| Pharmaceutical and Biopharmaceutical | $ | 643  |  |  | $ | 576  |  |  | $ | 1,834  |  |  | $ | 1,628  |  |
| Chemical and Energy | 389  |  |  | 334  |  |  | 1,097  |  |  | 976  |  |
| Diagnostics and Clinical | 234  |  |  | 242  |  |  | 718  |  |  | 691  |  |
| Food | 151  |  |  | 143  |  |  | 446  |  |  | 449  |  |
| Academia and Government | 139  |  |  | 138  |  |  | 426  |  |  | 423  |  |
| Environmental and Forensics | 162  |  |  | 153  |  |  | 478  |  |  | 492  |  |
| Total | $ | 1,718  |  |  | $ | 1,586  |  |  | $ | 4,999  |  |  | $ | 4,659  |  |
|  |  |  |  |  |  |  |  |
| Revenue by Type |  |  |  |  |  |  |  |
| Instrumentation | $ | 737  |  |  | $ | 640  |  |  | $ | 2,074  |  |  | $ | 1,953  |  |
| Non-instrumentation and other | 981  |  |  | 946  |  |  | 2,925  |  |  | 2,706  |  |
| Total | $ | 1,718  |  |  | $ | 1,586  |  |  | $ | 4,999  |  |  | $ | 4,659  |  |

  
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 July 31, 2022 and October 31, 2021 were $273 million and $197 million, respectively.   
Contract Liabilities  
The following table provides information about contract liabilities (deferred revenue) and the significant changes in the balances during the nine months ended July 31, 2022: 

|  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |
|  |  | Contract Liabilities |
|  |  | (in millions) |
|  |  |  |
| Ending balance as of October 31, 2021 |  | $ | 519  |  |
| Net revenue deferred in the period |  | 391  |  |
| Revenue recognized that was included in the contract liability balance at the beginning of the period |  | (336) |  |
| Change in deferrals from customer cash advances, net of revenue recognized |  | 39  |  |
|  |  |  |
| Currency translation and other adjustments |  | (25) |  |
| Ending balance as of July 31, 2022 |  | $ | 588  |  |

  
During the nine months ended July 31, 2021 revenue recognized that was included in the contract liability balance at October 31, 2020 was $322 million.  
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