Document And Entity Information
Document And Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Oct. 31, 2017 | Dec. 01, 2017 | Apr. 30, 2017 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | AGILENT TECHNOLOGIES INC | ||
Entity Central Index Key | 1,090,872 | ||
Current Fiscal Year End Date | --10-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 12.6 | ||
Entity Common Stock, Shares Outstanding | 323,018,027 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Oct. 31, 2017 |
CONSOLIDATED STATEMENT OF OPERA
CONSOLIDATED STATEMENT OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2015 | |
Net revenue: | |||
Products | $ 3,410 | $ 3,227 | $ 3,146 |
Services and other | 1,062 | 975 | 892 |
Total net revenue | 4,472 | 4,202 | 4,038 |
Costs and expenses: | |||
Cost of products | 1,469 | 1,464 | 1,496 |
Cost of services and other | 594 | 541 | 501 |
Total costs | 2,063 | 2,005 | 1,997 |
Research and development | 339 | 329 | 330 |
Selling, general and administrative | 1,229 | 1,253 | 1,189 |
Total costs and expenses | 3,631 | 3,587 | 3,516 |
Income from operations | 841 | 615 | 522 |
Interest income | 22 | 11 | 7 |
Interest expense | (79) | (72) | (66) |
Other income (expense), net | 19 | (10) | 17 |
Income from continuing operations before taxes | 803 | 544 | 480 |
Provision for income taxes | 119 | 82 | 42 |
Income from continuing operations | 684 | 462 | 438 |
Loss from discontinued operations, net of tax benefit of $0, $0 and $(2) | 0 | 0 | (37) |
Net income | $ 684 | $ 462 | $ 401 |
Net income per share - basic: | |||
Income from continuing operations | $ 2.12 | $ 1.42 | $ 1.32 |
Loss from discontinued operations | 0 | 0 | (0.12) |
Net income per share - basic | 2.12 | 1.42 | 1.20 |
Net income per share - diluted: | |||
Income from continuing operations | 2.10 | 1.40 | 1.31 |
Loss from discontinued operations | 0 | 0 | (0.11) |
Net income per share - diluted | $ 2.10 | $ 1.40 | $ 1.20 |
Weighted Averge Shares Used In Computing Net Income Per Share | |||
Basic (in shares) | 322 | 326 | 333 |
Diluted (in shares) | 326 | 329 | 335 |
Cash dividends declared per common share | $ 0.528 | $ 0.460 | $ 0.400 |
CONSOLIDATED STATEMENT OF OPER3
CONSOLIDATED STATEMENT OF OPERATIONS (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2015 | |
Income tax (benefit) from discontinued operations | $ 0 | $ 0 | $ (2) |
CONSOLIDATED STATEMENT OF COMPR
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 684 | $ 462 | $ 401 |
Other comprehensive income (loss): | |||
Gain (loss) on derivative instruments, net of tax expense (benefit) of $0, $(4) and $3 | 0 | (6) | 8 |
Amounts reclassified into earnings related to derivative instruments, net of tax expense (benefit) of $0, $0 and $(6) | (1) | 3 | (12) |
Foreign currency translation, net of tax expense (benefit) of $3, $3 and $(24) | 41 | (8) | (336) |
Net defined benefit pension cost and post retirement plan costs: | |||
Change in actuarial net loss, net of tax expense (benefit) of $52, $(42), and $(17) | 123 | (86) | (38) |
Change in net prior service benefit, net of tax benefit of $(3), $(8) and $(6) | (6) | (15) | (11) |
Other comprehensive income (loss) | 157 | (112) | (389) |
Total comprehensive income | $ 841 | $ 350 | $ 12 |
CONSOLIDATED STATEMENT OF COMP5
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2015 | |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract] | |||
Gain (loss) on derivative instruments, tax expense (benefit) | $ 0 | $ (4) | $ 3 |
Amounts reclassified into earnings related to derivative instruments, tax expense (benefit) | 0 | 0 | (6) |
Foreign currency translation, tax expense (benefit) | 3 | 3 | (24) |
Change in actuarial net loss, tax expense (benefit) | 52 | (42) | (17) |
Change in net prior service benefit, tax (benefit) | $ (3) | $ (8) | $ (6) |
CONSOLIDATED BALANCE SHEET
CONSOLIDATED BALANCE SHEET - USD ($) $ in Millions | Oct. 31, 2017 | Oct. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 2,678 | $ 2,289 |
Accounts receivable, net | 724 | 631 |
Inventory | 575 | 533 |
Other current assets | 192 | 182 |
Total current assets | 4,169 | 3,635 |
Property, plant and equipment, net | 757 | 639 |
Goodwill | 2,607 | 2,517 |
Other intangible assets, net | 361 | 416 |
Long-term investments | 138 | 135 |
Other assets | 394 | 452 |
Total assets | 8,426 | 7,794 |
Current liabilities: | ||
Accounts payable | 305 | 257 |
Employee compensation and benefits | 276 | 235 |
Deferred revenue | 291 | 269 |
Short-term debt | 210 | 0 |
Other accrued liabilities | 181 | 184 |
Total current liabilities | 1,263 | 945 |
Long-term debt | 1,801 | 1,904 |
Retirement and post-retirement benefits | 234 | 360 |
Other long-term liabilities | 293 | 339 |
Total liabilities | 3,591 | 3,548 |
Commitments and contingencies (Note 15) | ||
Stockholders' equity: | ||
Preferred stock; $0.01 par value; 125 million shares authorized; none issued and outstanding | 0 | 0 |
Common stock; $0.01 par value; 2 billion shares authorized; 322 million shares at October 31, 2017 and 614 million shares at October 31, 2016 issued | 3 | 6 |
Treasury stock at cost; zero shares at October 31, 2017 and 290 million shares at October 31, 2016 | 0 | (10,508) |
Additional paid-in-capital | 5,300 | 9,159 |
Retained earnings (accumulated deficit) | (126) | 6,089 |
Accumulated other comprehensive loss | (346) | (503) |
Total stockholders' equity | 4,831 | 4,243 |
Non-controlling interest | 4 | 3 |
Total equity | 4,835 | 4,246 |
Total liabilities and equity | $ 8,426 | $ 7,794 |
CONSOLIDATED BALANCE SHEET (Par
CONSOLIDATED BALANCE SHEET (Parenthetical) - $ / shares shares in Millions | Oct. 31, 2017 | Oct. 31, 2016 |
Stockholders' equity: | ||
Preferred stock par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock shares authorized (in shares) | 125 | 125 |
Preferred Stock, Shares Issued (in shares) | 0 | 0 |
Preferred Stock, Shares Outstanding (in shares) | 0 | 0 |
Common stock par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock shares authorized (in shares) | 2,000 | 2,000 |
Common stock issued (in shares) | 322 | 614 |
Treasury stock, at cost (in shares) | 0 | 290 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2015 | |
Cash flows from operating activities: | |||
Net income | $ 684 | $ 462 | $ 401 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 212 | 246 | 253 |
Share-based compensation | 60 | 58 | 54 |
Deferred taxes | 102 | 3 | 70 |
Excess and obsolete inventory related charges | 24 | 20 | 30 |
Asset impairment charges | 0 | 4 | 3 |
Impairment of equity method investments and loans | 0 | 25 | 0 |
Other | 7 | 15 | 16 |
Changes in assets and liabilities: | |||
Accounts receivable, net | (81) | (33) | (24) |
Inventory | (61) | (7) | (24) |
Accounts payable | 2 | (15) | (26) |
Employee compensation and benefits | 38 | 15 | 8 |
Interest rate swap payments | 0 | (10) | 0 |
Other assets and liabilities | (98) | 10 | (249) |
Net cash provided by operating activities | 889 | 793 | 512 |
Cash flows from investing activities: | |||
Investments in property, plant and equipment | (176) | (139) | (98) |
Proceeds from the sale of property, plant and equipment | 0 | 0 | 12 |
Proceeds from the sale of investment securities | 0 | 1 | 0 |
Proceeds from divestitures | 2 | 0 | 3 |
Payment to acquire cost method investment | (1) | (80) | 0 |
Payment to acquire equity method investment | 0 | 0 | (1) |
Payment in exchange for convertible note | (1) | (1) | (2) |
Loan to equity method investment | 0 | (3) | 0 |
Change in restricted cash, cash equivalents and investments, net | (1) | 245 | (240) |
Acquisitions of businesses and intangible assets, net of cash acquired | (128) | (261) | (74) |
Net cash used in investing activities | (305) | (238) | (400) |
Cash flows from financing activities: | |||
Issuance of common stock under employee stock plans | 66 | 62 | 58 |
Payment of taxes related to net share settlement of equity awards | (14) | (6) | (13) |
Treasury stock repurchases | (194) | (434) | (267) |
Payment of dividends | (170) | (150) | (133) |
Issuance of senior notes | 0 | 299 | 0 |
Debt issuance costs | 0 | (2) | 0 |
Proceeds from debts and credit facility | 400 | 255 | 0 |
Repayments of debt and credit facility | (290) | (292) | 0 |
Net transfer of cash and cash equivalents to Keysight | 0 | 0 | (734) |
Net cash used in financing activities | (202) | (268) | (1,089) |
Effect of exchange rate movements | 7 | (1) | (48) |
Net increase (decrease) in cash and cash equivalents | 389 | 286 | (1,025) |
Cash and cash equivalents at beginning of year | 2,289 | 2,003 | |
Cash and cash equivalents at end of year | 2,678 | 2,289 | 2,003 |
Supplemental Cash Flow Information [Abstract] | |||
Income tax payments, net | 63 | 67 | 129 |
Interest payments | $ 82 | $ 73 | 71 |
Continuing Operations | |||
Cash flows from financing activities: | |||
Cash and cash equivalents at beginning of year | 2,218 | ||
Discontinued Operations | |||
Cash flows from financing activities: | |||
Cash and cash equivalents at beginning of year | $ 810 |
CONSOLIDATED STATEMENT OF EQUIT
CONSOLIDATED STATEMENT OF EQUITY - USD ($) shares in Thousands, $ in Millions | Total | Common Stock | Additional Paid-in Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total Stockholders Equity | Non-controlling Interest |
Treasury Stock, Number of shares | 272,924 | |||||||
Treasury Stock, Value | $ 9,807 | |||||||
Balance (in shares) at Oct. 31, 2014 | 607,890 | |||||||
Balance at Oct. 31, 2014 | $ 5,304 | $ 6 | $ 8,967 | $ 6,469 | $ (334) | $ 5,301 | $ 3 | |
Components of comprehensive income, net of tax: | ||||||||
Net income | 401 | 401 | 401 | |||||
Other comprehensive loss | (389) | (389) | (389) | |||||
Total comprehensive income | 12 | 12 | ||||||
Cash dividends declared | (133) | (133) | (133) | |||||
Share-based awards issued (in shares) | 2,964 | |||||||
Share-based awards issued | 44 | 44 | 44 | |||||
Repurchase of common stock (in shares) | (6,471) | |||||||
Repurchase of common stock | (267) | $ (267) | (267) | |||||
Share-based compensation | 54 | 54 | 54 | |||||
Tax benefit from share based awards issued | 8 | 8 | 8 | |||||
Distribution of Keysight | (852) | (28) | (1,156) | 332 | (852) | |||
Balance at Oct. 31, 2015 | 4,170 | $ 6 | 9,045 | 5,581 | (391) | 4,167 | 3 | |
Balance (in shares) at Oct. 31, 2015 | 610,854 | |||||||
Treasury Stock, Number of shares | 279,395 | |||||||
Treasury Stock, Value | $ 10,074 | |||||||
Components of comprehensive income, net of tax: | ||||||||
Net income | 462 | 462 | 462 | |||||
Other comprehensive loss | (112) | (112) | (112) | |||||
Total comprehensive income | 350 | 350 | ||||||
Cash dividends declared | (150) | (150) | (150) | |||||
Share-based awards issued (in shares) | 2,682 | |||||||
Share-based awards issued | 56 | 56 | 56 | |||||
Repurchase of common stock (in shares) | (10,680) | |||||||
Repurchase of common stock | (434) | $ (434) | (434) | |||||
Share-based compensation | 58 | 58 | 58 | |||||
Balance at Oct. 31, 2016 | $ 4,246 | $ 6 | 9,159 | 6,089 | (503) | 4,243 | 3 | |
Balance (in shares) at Oct. 31, 2016 | 613,536 | |||||||
Treasury Stock, Number of shares | 290,000 | 290,075 | ||||||
Treasury Stock, Value | $ 10,508 | $ 10,508 | ||||||
Components of comprehensive income, net of tax: | ||||||||
Adjustment due to adoption of ASU 2019-09 | 196 | 196 | 196 | |||||
Net income | 684 | 684 | 684 | |||||
Other comprehensive loss | 157 | 157 | 157 | |||||
Total comprehensive income | 841 | 841 | ||||||
Non-controlling interest | 1 | 1 | ||||||
Cash dividends declared | (170) | (170) | (170) | |||||
Share-based awards issued (in shares) | 2,621 | |||||||
Share-based awards issued | 51 | 51 | 51 | |||||
Repurchase of common stock (in shares) | (4,107) | |||||||
Repurchase of common stock | $ (194) | $ (194) | (194) | |||||
Retirement of treasury stock (shares) | (294,200) | (294,182) | (294,182) | |||||
Retirement of treasury stock, cost method | $ (10,700) | $ (3) | (3,970) | $ (10,702) | (6,729) | |||
Share-based compensation | 60 | 60 | 60 | |||||
Balance at Oct. 31, 2017 | $ 4,835 | $ 3 | $ 5,300 | $ (126) | $ (346) | $ 4,831 | $ 4 | |
Balance (in shares) at Oct. 31, 2017 | 321,975 | |||||||
Treasury Stock, Number of shares | 0 | 0 | ||||||
Treasury Stock, Value | $ 0 | $ 0 |
CONSOLIDATED STATEMENT OF EQU10
CONSOLIDATED STATEMENT OF EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2015 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash Dividends Declared (per common share) | $ 0.528 | $ 0.460 | $ 0.400 |
OVERVIEW AND SUMMARY OF SIGNIFI
OVERVIEW AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Oct. 31, 2017 | |
Accounting Policies [Abstract] | |
OVERVIEW AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 1. OVERVIEW AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Overview. Agilent Technologies Inc. ("we", "Agilent" or the "company"), incorporated in Delaware in May 1999, is a global leader in life sciences, diagnostics and applied chemical markets, providing application focused solutions that includes instruments, software, services and consumables for the entire laboratory workflow. Keysight Separation. On November 1, 2014, we completed the distribution of 100% of the outstanding common shares of Keysight Technologies, Inc. ("Keysight") to Agilent stockholders who received one share of Keysight common stock for every two shares of Agilent held as of the close of business on the record date, October 22, 2014. For fiscal year 2015, discontinued operations includes costs incurred to effect the separation of Keysight and certain costs associated with transition services provided by Agilent to Keysight. No income or expense has been recorded for the Keysight business after separation from Agilent on November 1, 2014. Exit of Nuclear Magnetic Resonance Business. Beginning the fourth quarter of fiscal year 2014, we ceased the manufacture and sale of our nuclear magnetic resonance (“NMR”) product line within our life sciences and applied markets segment. In connection with the exit from this business, we recorded approximately $6 million in restructuring and other related costs in 2015. The exit of the NMR business was completed in fiscal year 2016. Basis of Presentation. The accompanying financial data has been prepared by us pursuant to the rules and regulations of the U.S. Securities and Exchange Commission ("SEC") and is in conformity with U.S. generally accepted accounting principles ("GAAP"). Our fiscal year end is October 31. Unless otherwise stated, all years and dates refer to our fiscal year. Principles of Consolidation. The consolidated financial statements include the accounts of the company and our wholly- and majority-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. Reclassification. Certain reclassifications to our prior period consolidated balance sheet have been made to conform with our current reporting. The October 31, 2016 consolidated balance sheet reflects the reclassification of $8 million of intangible assets related to purchased technology and licenses from third parties that were not associated with a business combination from other assets to other intangible assets. Use of Estimates. The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in our consolidated financial statements and accompanying notes. Management bases its estimates on historical experience and various other assumptions believed to be reasonable. Although these estimates are based on management's best knowledge of current events and actions that may impact the company in the future, actual results may be different from the estimates. Our critical accounting policies are those that affect our financial statements materially and involve difficult, subjective or complex judgments by management. Those policies are revenue recognition, valuation of goodwill and purchased intangible assets, inventory valuation, share-based compensation, retirement and post-retirement plan assumptions and accounting for income taxes. Retirement of Treasury Shares. Upon the formal retirement of treasury shares, we deduct the par value of the retired treasury shares from common stock and allocate the excess of cost over par as a deduction to additional paid-in capital, based on the pro-rata portion of additional paid-in-capital, and the remaining excess as a deduction to retained earnings. All retired treasury shares revert to the status of authorized but unissued shares. Revenue Recognition. We enter into agreements to sell products (hardware and/or software), services and other arrangements (multiple element arrangements) that include combinations of products and services. We recognize revenue, net of trade discounts and allowances, provided that (1) persuasive evidence of an arrangement exists, (2) delivery has occurred, (3) the price is fixed or determinable and (4) collectability is reasonably assured. Delivery is considered to have occurred when title and risk of loss have transferred to the customer for products, or when the service has been provided. We consider the price to be fixed or determinable when the price is not subject to refund or adjustments. At the time of the transaction, we evaluate the creditworthiness of our customers to determine the appropriate timing of revenue recognition. Provisions for discounts, warranties, returns, extended payment terms, and other adjustments are provided for in the period the related sales are recorded. Product Revenue. Product revenue includes revenue generated from the sales of our analytical instrumentation, software and consumables. Our product revenue is generated predominantly from the sales of various types of analytical instrumentation. Product revenue, including sales to resellers and distributors, is reduced for estimated returns when appropriate. For sales or arrangements that include customer-specified acceptance criteria, including those where acceptance is required upon achievement of performance milestones, revenue is recognized after the acceptance criteria have been met. For products that include installation, if the installation meets the criteria to be considered a separate element, product revenue is recognized upon delivery, and recognition of installation revenue is delayed until the installation is complete. Otherwise, neither the product nor the installation revenue is recognized until the installation is complete. Where software is licensed separately, revenue is recognized when the software is delivered and has been transferred to the customer or, in the case of electronic delivery of software, when the customer is given access to the licensed software programs. We also evaluate whether collection of the receivable is probable, the fee is fixed or determinable and whether any other undelivered elements of the arrangement exist on which a portion of the total fee would be allocated based on vendor-specific objective evidence. Service Revenue. Revenue from services includes extended warranty, customer and software support including, Software as a Service (SaaS), consulting including companion diagnostics and training and education. Service revenue is deferred and recognized over the contractual period or as services are rendered and accepted by the customer. For example, customer support contracts are recognized ratably over the contractual period, while training revenue is recognized as the training is provided to the customer. In addition, the four revenue recognition criteria described above must be met before service revenue is recognized. Revenue Recognition for Arrangements with Multiple Deliverables. Our multiple-element arrangements are generally comprised of a combination of measurement instruments, installation or other start-up services, and/or software and/or support or services. Hardware and software elements are typically delivered at the same time and revenue is recognized upon delivery once title and risk of loss pass to the customer. Delivery of installation, start-up services and other services varies based on the complexity of the equipment, staffing levels in a geographic location and customer preferences, and can range from a few days to a few months. Service revenue is deferred and recognized over the contractual period or as services are rendered and accepted by the customer. Revenue from the sale of software products that are not required to deliver the tangible product's essential functionality are accounted for under software revenue recognition rules which require vendor specific objective evidence (VSOE) of fair value to allocate revenue in a multiple element arrangement. Our arrangements generally do not include any provisions for cancellation, termination, or refunds that would significantly impact recognized revenue. We have evaluated the deliverables in our multiple-element arrangements and concluded that they are separate units of accounting if the delivered item or items have value to the customer on a standalone basis and for an arrangement that includes a general right of return relative to the delivered item(s), delivery or performance of the undelivered item(s) is considered probable and substantially in our control. We allocate revenue to each element in our multiple-element arrangements based upon their relative selling prices. We determine the selling price for each deliverable based on a selling price hierarchy. The selling price for a deliverable is based on VSOE if available, third-party evidence (TPE) if VSOE is not available, or estimated selling price (ESP) if neither VSOE nor TPE is available. Revenue allocated to each element is then recognized when the basic revenue recognition criteria for that element have been met. We use VSOE of selling price in the selling price allocation in all instances where it exists. VSOE of selling price for products and services is determined when a substantial majority of the selling prices fall within a reasonable range when sold separately. TPE of selling price can be established by evaluating largely interchangeable competitor products or services in standalone sales to similarly situated customers. As our products contain a significant element of proprietary technology and the solution offered differs substantially from that of competitors, it is difficult to obtain the reliable standalone competitive pricing necessary to establish TPE. ESP represents the best estimate of the price at which we would transact a sale if the product or service were sold on a standalone basis. We determine ESP for a product or service by using historical selling prices which reflect multiple factors including, but not limited to customer type, geography, market conditions, competitive landscape, gross margin objectives and pricing practices. The determination of ESP is made through consultation with and approval by management. We may modify or develop new pricing practices and strategies in the future. As these pricing strategies evolve changes may occur in ESP. The aforementioned factors may result in a different allocation of revenue to the deliverables in multiple element arrangements, which may change the pattern and timing of revenue recognition for these elements but will not change the total revenue recognized for the arrangement. For sales arrangements that include equipment lease along with other products or services, revenue is allocated to the different elements based on the Revenue Recognition for Multiple Element Arrangements. Each of these contracts is evaluated as a lease arrangement, either as an operating lease or a capital (sales-type) lease using lease classification guidance. Deferred Revenue. Deferred revenue represents the amount that is allocated to undelivered elements in multiple element arrangements. We limit the revenue recognized to the amount that is not contingent on the future delivery of products or services or meeting other specified performance conditions. Accounts Receivable, net. Trade accounts receivable are recorded at the invoiced amount and do not bear interest. Such accounts receivable has been reduced by an allowance for doubtful accounts, which is our best estimate of the amount of probable credit losses in our existing accounts receivable. We determine the allowance based on customer specific experience and the aging of such receivables, among other factors. The allowance for doubtful accounts as of October 31, 2017 and 2016 was not material. We do not have any off-balance-sheet credit exposure related to our customers. Accounts receivable are also recorded net of product returns. Shipping and Handling Costs. Our shipping and handling costs charged to customers are included in net revenue, and the associated expense is recorded in cost of products for all periods presented. Inventory. Inventory is valued at standard cost, which approximates actual cost computed on a first-in, first-out basis, not in excess of market value. We assess the valuation of our inventory on a periodic basis and make adjustments to the value for estimated excess and obsolete inventory based on estimates about future demand. The excess balance determined by this analysis becomes the basis for our excess inventory charge. Our excess inventory review process includes analysis of sales forecasts, managing product rollovers and working with manufacturing to maximize recovery of excess inventory. Goodwill and Purchased Intangible Assets. Under the authoritative guidance we have the option to perform a qualitative assessment to determine whether further impairment testing is necessary. The accounting standard gives an entity the option to first assess qualitative factors to determine whether performing the two-step test is necessary. If an entity believes, as a result of its qualitative assessment, that it is more-likely-than-not (i.e. greater than 50% chance) that the fair value of a reporting unit is less than its carrying amount, the quantitative impairment test will be required. Otherwise, no further testing will be required. The guidance includes examples of events and circumstances that might indicate that a reporting unit's fair value is less than its carrying amount. These include macro-economic conditions such as deterioration in the entity's operating environment or industry or market considerations; entity-specific events such as increasing costs, declining financial performance, or loss of key personnel; or other events such as an expectation that a reporting unit will be sold or a sustained decrease in the stock price on either an absolute basis or relative to peers. If it is determined, as a result of the qualitative assessment, that it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount, the provisions of authoritative guidance require that we perform a two-step impairment test on goodwill. In the first step, we compare the fair value of each reporting unit to its carrying value. The second step (if necessary) measures the amount of impairment by applying fair-value-based tests to the individual assets and liabilities within each reporting unit. As defined in the authoritative guidance, a reporting unit is an operating segment, or one level below an operating segment. We aggregate components of an operating segment that have similar economic characteristics into our reporting units. In fiscal year 2017 , we assessed goodwill impairment for our three reporting units which consisted of three segments: life sciences and applied markets, diagnostics and genomics and Agilent CrossLab. We performed a qualitative test for goodwill impairment of the three reporting units, as of September 30, 2017 . Based on the results of our qualitative testing, we believe that it is more-likely-than-not- that the fair value of these reporting units are greater than their respective carrying values. Each quarter we review the events and circumstances to determine if goodwill impairment is indicated. There was no impairment of goodwill during the years ended October 31, 2017 , 2016 and 2015 . Purchased intangible assets consist primarily of acquired developed technologies, proprietary know-how, trademarks, and customer relationships and are amortized using the best estimate of the asset's useful life that reflect the pattern in which the economic benefits are consumed or used up or a straight-line method ranging from 6 months to 15 years. In-process research and development ("IPR&D") is initially capitalized at fair value as an intangible asset with an indefinite life and assessed for impairment thereafter. When the IPR&D project is complete, it is reclassified as an amortizable purchased intangible asset and is amortized over its estimated useful life. If an IPR&D project is abandoned, Agilent will record a charge for the value of the related intangible asset to Agilent's consolidated statement of operations in the period it is abandoned. Agilent's indefinite-lived intangible assets are IPR&D intangible assets. The accounting guidance allows a qualitative approach for testing indefinite-lived intangible assets for impairment, similar to the issued impairment testing guidance for goodwill and allows the option to first assess qualitative factors (events and circumstances) that could have affected the significant inputs used in determining the fair value of the indefinite-lived intangible asset to determine whether it is more-likely-than-not (i.e. greater than 50% chance) that the indefinite-lived intangible asset is impaired. An organization may choose to bypass the qualitative assessment for any indefinite-lived intangible asset in any period and proceed directly to calculating its fair value. We performed a qualitative test for impairment of indefinite-lived intangible assets as of September 30, 2017 . Based on the results of our qualitative testing, we believe that it is more-likely-than-not that the fair value of these indefinite-lived intangible assets is greater than their respective carrying values. Each quarter we review the events and circumstances to determine if impairment of indefinite-lived intangible asset is indicated. During the year ended October 31, 2017 , there were no impairments of indefinite-lived intangible assets. Based on triggering events in the years ended October 31, 2016 and 2015 , we recorded an impairment of $4 million and $3 million , respectively due to the cancellation of certain IPR&D projects. Share-Based Compensation. For the years ended 2017 , 2016 and 2015 , we accounted for share-based awards made to our employees and directors including employee stock option awards, restricted stock units, employee stock purchases made under our Employee Stock Purchase Plan ("ESPP") and performance share awards under Agilent Technologies, Inc. Long-Term Performance Program ("LTPP") using the estimated grant date fair value method of accounting. Under the fair value method, we recorded compensation expense, in continuing operations, for all share-based awards of $61 million in 2017 , $60 million in 2016 and $55 million in 2015 . See Note 4, "Share-based Compensation" for additional information. Retirement and Post-Retirement Plans. Substantially all of our employees are covered under various defined benefit and/or defined contribution retirement plans. Additionally, we sponsor post-retirement health care benefits for our eligible U.S. employees. Assumptions used to determine the benefit obligations and the expense for these plans are derived annually. See Note 13, “Retirement plans and post-retirement pension plans” for additional information. Taxes on Income. Income tax expense or benefit is based on income or loss before taxes. Deferred tax assets and liabilities are recognized principally for the expected tax consequences of temporary differences between the tax bases of assets and liabilities and their reported amounts. See Note 5, "Income Taxes" for more information. Warranty. Our standard warranty terms typically extend for one year from the date of delivery. We accrue for standard warranty costs based on historical trends in warranty charges as a percentage of net product revenue. 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 products are sold. See Note 14, "Guarantees". Advertising. Advertising costs are generally expensed as incurred and amounted to $38 million in 2017 , $30 million in 2016 and $25 million in 2015 . Research and Development. Costs related to research, design and development of our products are charged to research and development expense as they are incurred. Sales Taxes. Sales taxes collected from customers and remitted to governmental authorities are not included in our revenue. Net Income Per Share. Basic net income per share is computed by dividing net income - the numerator - by the weighted average number of common shares outstanding - the denominator - during the period excluding the dilutive effect of stock options and other employee stock plans. Diluted net income per share gives effect to all potential common shares outstanding during the period unless the effect is anti-dilutive. The dilutive effect of share-based awards is reflected in diluted net income per share by application of the treasury stock method, which includes consideration of unamortized share-based compensation expense and the dilutive effect of in-the-money options and non-vested restricted stock units. Under the treasury stock method, the amount the employee must pay for exercising stock options and unamortized share-based compensation expense are assumed proceeds to be used to repurchase hypothetical shares. See Note 6, "Net Income Per Share". Cash, Cash Equivalents and Short Term Investments. We classify investments as cash equivalents if their original or remaining maturity is three months or less at the date of purchase. Cash equivalents are stated at cost, which approximates fair value. As of October 31, 2017 , approximately $2,600 million of our cash and cash equivalents is held outside of the U.S. by our foreign subsidiaries. Under current tax laws, the cash could be repatriated to the U.S. but most of it would be subject to U.S. federal and state income taxes, less applicable tax credits. Our cash and cash equivalents mainly consist of short term deposits held at major global financial institutions, institutional money market funds, and similar short duration instruments with original maturities of 90 days or less. We continuously monitor the creditworthiness of the financial institutions and institutional money market funds in which we invest our funds. We classify investments as short-term investments if their original maturities are greater than three months and their remaining maturities are one year or less. Currently, we have no short-term investments. Variable Interest Entities. We make a determination upon entering into an arrangement whether an entity in which we have made an investment is considered a Variable Interest Entity (“VIE”). The company evaluates its investments in privately held companies on an ongoing basis. We have determined that as of October 31, 2017 and 2016, there were no VIE’s required to be consolidated in the company’s consolidated financial statements because we do not have a controlling financial interest in any of the VIE’s that we have invested in nor are we the primary beneficiary. We account for these investments under either the equity or cost method, depending on the circumstances. We periodically reassess whether we are the primary beneficiary of a VIE. The reassessment process considers whether we have acquired the power to direct the most significant activities of the VIE through changes in governing documents or other circumstances. We also reconsider whether entities previously determined not to be VIEs have become VIEs, based on changes in facts and circumstances including changes in contractual arrangements and capital structure. During 2016, we wrote down an equity method investment to its fair value of zero , resulting in an impairment charge of $18 million . In addition, we recorded an impairment of $7 million of uncollectible loans related to this equity method investment. During the year ended October 31, 2016, Agilent made a preferred stock investment in Lasergen for $80 million . Agilent’s initial ownership stake was 48 percent and we have also joined the board of Lasergen and signed a collaboration agreement. We have the option to acquire all of the remaining shares of Lasergen until March 2, 2018, for additional consideration of $105 million . Lasergen is a VIE, however, we do not consolidate the entity in our financial statements because we do not have the power to direct the activities of the VIE that most significantly impact the VIE's economic performance. Because of the nature of the preferred stock of Lasergen that we own, we account for this investment under the cost method. As of October 31, 2017 and 2016, the carrying value of our investments in VIE’s was $80 million with a maximum exposure of $80 million . The maximum exposure is equal to the carrying value because we do not have future funding commitments. The investment is included on the long term investments line of the consolidated balance sheet. Fair Value of Financial Instruments. The carrying values of certain of our financial instruments including cash and cash equivalents, accounts receivable, accounts payable, accrued compensation and other accrued liabilities approximate fair value because of their short maturities. The fair value of long-term equity investments is determined using quoted market prices for those securities when available. For those long-term equity investments accounted for under the cost or equity method, their carrying value approximates their estimated fair value. Equity method investments are reported at the amount of the company’s initial investment and adjusted each period for the company’s share of the investee’s income or loss and dividend paid. There are no equity method investments as of October 31, 2017 . The fair value of our senior notes, calculated from quoted prices which are primarily Level 1 inputs under the accounting guidance fair value hierarchy, exceeds the carrying value by approximately $58 million and $104 million as of October 31, 2017 and 2016 , respectively. The change in the excess of fair value over carrying value in the year ended October 31, 2017 is primarily due to fluctuations in market interest rates. The carrying value as of October 31, 2016 reflects the new accounting guidance related to the presentation of debt issuance costs which we adopted on November 1, 2016. The fair value of foreign currency contracts used for hedging purposes is estimated internally by using inputs tied to active markets. These inputs, for example, interest rate yield curves, foreign exchange rates, and forward and spot prices for currencies are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. See also Note 11, "Fair Value Measurements" for additional information on the fair value of financial instruments. Investments. Cost method investments consisting of non-marketable equity securities and are accounted for at historical cost. Trading securities are reported at fair value, with gains or losses resulting from changes in fair value recognized currently in earnings. Equity method investments are reported at the amount of the company’s initial investment and adjusted each period for the company’s share of the investee’s income or loss and dividend paid. The company assesses investments for impairment whenever events or changes in circumstances indicate that the carrying value of an investment may not be recoverable. Concentration of Credit Risk. Financial instruments that potentially subject Agilent to significant concentration of credit risk include money market fund investments, time deposits and demand deposit balances. These investments are categorized as cash and cash equivalents. In addition, Agilent has credit risk from derivative financial instruments used in hedging activities and accounts receivable. We invest in a variety of financial instruments and limit the amount of credit exposure with any one financial institution. We have a comprehensive credit policy in place and credit exposure is monitored on an ongoing basis. Credit risk with respect to our accounts receivable is diversified due to the large number of entities comprising our customer base and their dispersion across many different industries and geographies. Credit evaluations are performed on customers requiring credit over a certain amount and we sell the majority of our products through our direct sales force. Credit risk is mitigated through collateral such as letter of credit, bank guarantees or payment terms like cash in advance. No single customer accounted for more than 10 percent of combined accounts receivable as of October 31, 2017 , or 2016 . Derivative Instruments. Agilent is exposed to global foreign currency exchange rate and interest rate risks in the normal course of business. We enter into foreign exchange hedging contracts, primarily forward contracts and purchased options and, in the past, interest rate swaps to manage financial exposures resulting from changes in foreign currency exchange rates and interest rates. In the vast majority of cases, these contracts are designated at inception as hedges of the related foreign currency or interest exposures. Foreign currency exposures include committed and anticipated revenue and expense transactions and assets and liabilities that are denominated in currencies other than the functional currency of the subsidiary. Interest rate exposures are associated with the company's fixed-rate debt. For option contracts, we exclude time value from the measurement of effectiveness. To qualify for hedge accounting, contracts must reduce the foreign currency exchange rate and interest rate risk otherwise inherent in the amount and duration of the hedged exposures and comply with established risk management policies; foreign exchange hedging contracts generally mature within twelve months and interest rate swaps, if any, mature at the same time as the maturity of the debt. In order to manage foreign currency exposures in a few limited jurisdictions we may enter into foreign exchange contracts that do not qualify for hedge accounting. In such circumstances, the local foreign currency exposure is offset by contracts owned by the parent company. We do not use derivative financial instruments for speculative trading purposes. All derivatives are recognized on the balance sheet at their fair values. For derivative instruments that are designated and qualify as a fair value hedge, changes in value of the derivative are recognized in the consolidated statement of operations in the current period, along with the offsetting gain or loss on the hedged item attributable to the hedged risk. For derivative instruments that are designated and qualify as a cash flow hedges, changes in the value of the effective portion of the derivative instrument is recognized in comprehensive income (loss), a component of stockholders' equity. Amounts associated with cash flow hedges are reclassified and recognized in income when either the forecasted transaction occurs or it becomes probable the forecasted transaction will not occur. Derivatives not designated as hedging instruments are recorded on the balance sheet at their fair value and changes in the fair values are recorded in the income statement in the current period. Derivative instruments are subject to master netting arrangements and are disclosed gross in the balance sheet. Changes in the fair value of the ineffective portion of derivative instruments are recognized in earnings in the current period. Ineffectiveness in 2017 , 2016 and 2015 was not material. Cash flows from derivative instruments are classified in the statement of cash flows in the same category as the cash flows from the hedged or economically hedged item, primarily in operating activities. Property, Plant and Equipment. Property, plant and equipment are stated at cost less accumulated depreciation. Additions, improvements and major renewals are capitalized; maintenance, repairs and minor renewals are expensed as incurred. When assets are retired or disposed of, the assets and related accumulated depreciation and amortization are removed from our general ledger, and the resulting gain or loss is reflected in the consolidated statement of operations. Buildings and improvements are depreciated over the lesser of their useful lives or the remaining term of the lease and machinery and equipment over three to ten years. We use the straight-line method to depreciate assets. Leases. We lease buildings, machinery and equipment under operating leases for original terms ranging generally from one year to twenty years. Certain leases contain renewal options for periods up to six years. In addition, we lease equipment to customers in connection with our diagnostics business using both capital and operating leases. As of October 31, |
NEW ACCOUNTING PRONOUNCEMENTS
NEW ACCOUNTING PRONOUNCEMENTS | 12 Months Ended |
Oct. 31, 2017 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
NEW ACCOUNTING PRONOUNCEMENTS | 2. NEW ACCOUNTING PRONOUNCEMENTS Recently Adopted Accounting Pronouncements In April 2015, the Financial Accounting Standards Board ("FASB") issued amendments to simplify the presentation of debt issuance costs. The amendments require that debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs remain unchanged. The amendments were effective for us beginning November 1, 2016. The impact of adoption to our consolidated balance sheet was a decrease of $8 million in other assets and long-term debt. The October 31, 2016 consolidated balance sheet has been revised to reflect the new disclosure requirement. New Accounting Pronouncements Not Yet Adopted In May 2014, the FASB issued new revenue recognition guidance, Accounting Standard Codification Topic 606, Revenue from contract with customers, which provides a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and will supersede most current revenue recognition guidance. The objective of the new revenue standard is to significantly enhance comparability and clarify principles of revenue recognition practices across entities, industries, jurisdictions and capital markets. The guidance is effective for us at the beginning in November 1, 2018. We expect to adopt this standard on November 1, 2018 through application of the modified retrospective method reflecting the cumulative effect of initially applying the new guidance to revenue recognition in the first quarter of fiscal 2019. Under the new guidance, there are specific criteria to determine if a performance obligation should be recognized over time or at a point in time. We expect that in some cases the revenue recognition timing under the new guidance will change from current practice. We are currently evaluating the impact the adoption of this standard will have on our consolidated financial statements and disclosures. In September 2015, the FASB issued guidance intended to simplify accounting for adjustments to provisional amounts recorded in connection with business combinations. Beginning in November 1, 2017 and in the interim periods from November 1, 2018, adjustments will be recorded in the period that they are determined rather than applied retrospectively via revision to the period of acquisition and each period thereafter. We currently do not expect this guidance to have a material impact on our consolidated financial statements and disclosures. In January 2016, the FASB issued amendments to address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The standard requires entities to measure equity investments that do not result in consolidation and are not accounted for under the equity method at fair value and recognize any changes in fair value in net income. The provisions under this amendment are effective for us beginning November 1, 2018, and for interim periods within that year. Early adoption is not permitted. We currently do not expect this guidance to have a material impact on our consolidated financial statements and disclosures. In February 2016, the FASB issued guidance which amends the existing accounting standards for leases. Consistent with existing guidance, the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification. Under the new guidance, a lessee will be required to recognize right-of-use assets and lease liabilities on the balance sheet. The new guidance is effective for us beginning November 1, 2019, and for interim periods within that year. Early adoption is permitted and we will be required to adopt using a modified retrospective approach. We are evaluating the timing of adoption and the impact of this guidance on our consolidated financial statements and disclosures. In March 2016, the FASB issued amendments to simplify the transition to the equity method of accounting. The amendments require that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor’s previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting. The amendments are effective for us beginning November 1, 2017, and for interim periods within that year. We currently do not expect material impact of this amendment on our consolidated financial statements and disclosures. In August 2016, the FASB issued amendments to address eight specific cash flow issues with the objective of reducing the existing diversity in practice. The amendments are effective for us beginning November 1, 2018, and for interim periods within that year. Early adoption is permitted. If we decide to early adopt the amendments, we will be required to adopt all of the amendments in the same period. We do not expect to early adopt and we are evaluating the impact of the amendments on our consolidated statement of cash flows and disclosures. In October 2016, the FASB issued amendments to improve the accounting for the income tax consequences of intra-entity transfers of assets other than inventory. The amendments are effective for us beginning November 1, 2018, and for interim periods within that year. Early adoption is permitted and should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. We are evaluating the timing of our adoption and the impact of the amendments on our consolidated financial statements and disclosures. In November 2016, the FASB issued amendments to require amounts generally described as restricted cash and restricted cash equivalents be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The amendments are effective for us beginning November 1, 2018, and for interim periods within that year. Early adoption is permitted. We do not expect to early adopt and we are evaluating the impact of the amendments on our consolidated statement of cash flows and disclosures. In January 2017, the FASB issued guidance intended to clarify the definition of a business in connection with business combinations with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. This guidance is effective for us beginning November 1, 2018, and for interim periods within that year. Adjustments will be recorded in the period that they are determined rather than applied retrospectively via revision to the period of acquisition and each period thereafter. We do not expect to early adopt this guidance nor do we expect this guidance to have a material impact on our consolidated financial statements and disclosures. In January 2017, the FASB issued an amendment to modify the concept of impairment from the condition that exists when the carrying amount of goodwill exceeds its implied fair value to the condition that exists when the carrying amount of a reporting unit exceeds its fair value. The amendment also simplifies the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. The amendments are effective for us beginning November 1, 2020. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. We do not expect to early adopt nor do we expect this guidance to have a material impact on our consolidated financial statements and disclosures. In March 2017, the FASB issued guidance on the presentation of the net periodic pension and postretirement benefit cost. This guidance also specifies that only the service cost component of net benefit cost is eligible for capitalization. The standard requires employers to report the service cost component in the same line item as other compensation costs and to report the other components of net periodic benefit costs (which include interest costs, expected return on plan assets, amortization of prior service cost or credits and actuarial gains and losses) separately and below operating income in the statement of operations. The amendments are effective for us beginning November 1, 2018, including interim periods within those annual periods. We are evaluating the impact of adopting this guidance to our consolidated financial statements. In May 2017, the FASB issued an update to clarify when to account for a change to the terms or conditions of a share-based payment award as a modification. Under the new guidance, modification accounting is required only if the fair value, the vesting conditions, or the classification of the award (as equity or liability) changes as a result of the change in terms or conditions. The amendments are effective for us beginning November 1, 2018. We do not expect this guidance to have a material impact on our consolidated financial statements and disclosures. In August 2017, the FASB issued amendments to hedge accounting intended to better align a company's risk management strategies and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and presentation of hedge results. The amendments expand and refine accounting for both nonfinancial and financial risk components and align the recognition and presentation of the effects of the hedging instrument and hedged item in the financial statements. The amendments are effective for us beginning November 1, 2019, including the interim periods within those annual periods. We are currently evaluating the timing of our adoption and the impact the adoption of this guidance will have on our consolidated financial statements and disclosures. Other amendments to GAAP in the U.S. that have been issued by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on our consolidated financial statements upon adoption. |
DISCONTINUED OPERATIONS (Notes)
DISCONTINUED OPERATIONS (Notes) | 12 Months Ended |
Oct. 31, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations Disclosure | 3. DISCONTINUED OPERATIONS On September 19, 2013, Agilent announced its intention to separate its electronic measurement business, Keysight, which was previously a separate reportable segment, into a stand-alone publicly traded company. Keysight was incorporated in Delaware as a wholly-owned subsidiary of Agilent on December 6, 2013. On November 1, 2014, we completed the distribution of 100% of the outstanding common stock of Keysight to Agilent stockholders, who received one share of Keysight common stock for every two shares of Agilent common stock held as of the close of business on the record date, October 22, 2014. The separation agreement ensured that Keysight had approximately $700 million of total cash and cash equivalents immediately following distribution. For the year ended October 31, 2015, we transferred a total amount of cash and cash equivalents of $734 million to Keysight. The following table summarizes results from discontinued operations of Keysight included in the consolidated statement of operations: Year Ended October 31, 2015 (in millions) Net revenue $ — Costs and expenses 39 Operating loss (39 ) Other income (expense), net — Loss from discontinued operations before tax (39 ) Benefit for income taxes (2 ) Net loss from discontinued operations $ (37 ) For the year ended October 31, 2015, net income (loss) from discontinued operations includes transaction, information systems and other costs to effect the separation of $39 million . In the year ended October 31, 2015 only those costs incurred to effect the separation of Keysight have been included. No income or expense has been recorded for the Keysight business after separation from Agilent on November 1, 2014. In addition, $332 million of accumulated other comprehensive loss, net of income taxes, primarily related to pension and other post-retirement benefits plans and currency translation was also transferred to Keysight together with $28 million of additional paid in capital related to share based compensation windfall tax benefits. The removal of Keysight net assets and equity related adjustments is presented as a reduction in Agilent's retained earnings and represents a non cash financing activity excluding cash transferred. Under the terms of the Transition Services Agreement, we recorded income for all services provided to Keysight of approximately $12 million in fiscal year 2015. In addition, Agilent expects to receive lease income together with site service income from Keysight over the next 2-3 years of approximately $12 million per year. In the years ended October 31, 2017, 2016 and 2015 other income (expense), net includes $12 million , $12 million and $25 million of income related to the provision of services to, and lease income from Keysight. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Oct. 31, 2017 | |
Share-based Compensation [Abstract] | |
SHARE-BASED COMPENSATION | 4. SHARE-BASED COMPENSATION Agilent accounts for share-based awards in accordance with the provisions of the accounting guidance which requires the measurement and recognition of compensation expense for all share-based payment awards made to our employees and directors including employee stock option awards, restricted stock units, employee stock purchases made under our ESPP and performance share awards granted to selected members of our senior management under the LTPP based on estimated fair values. Description of Share-Based Plans Employee Stock Purchase Plan. Effective November 1, 2000, we adopted the ESPP. The ESPP allows eligible employees to contribute up to ten percent of their base compensation to purchase shares of our common stock at 85 percent of the closing market price at purchase date. Shares authorized for issuance in connection with the ESPP are subject to an automatic annual increase of the lesser of one percent of the outstanding shares of common stock of Agilent on November 1, or an amount determined by the Compensation Committee of our Board of Directors. Under the terms of the ESPP, in no event shall the number of shares issued under the ESPP exceed 75 million shares. Under our ESPP, employees purchased 618,270 shares for $26 million in 2017 , 696,178 shares for $23 million in 2016 and 346,472 shares for $12 million in 2015 . As of October 31, 2017 , the number of shares of common stock authorized and available for issuance under our ESPP was 27,556,310 . This excludes the number of shares of common stock to be issued to participants in consideration of the aggregate participants contributions totaling $15 million as of October 31, 2017 . Incentive Compensation Plans. On November 19, 2008 and March 11, 2009, the Compensation Committee of Board of Directors and the stockholders, respectively, approved the Agilent Technologies, Inc. 2009 Stock Plan (the "2009 Stock Plan") to replace the Company's 1999 Stock Plan and 1999 Stock Non-Employee Director Stock Plan and subsequently reserved 25 million shares of Company common stock that may be issued under the 2009 Plan, plus any shares forfeited or cancelled under the 1999 Stock Plan. The 2009 Stock Plan provides for the grant of awards in the form of stock options, stock appreciation rights ("SARs"), restricted stock, restricted stock units ("RSUs"), performance shares and performance units with performance-based conditions on vesting or exercisability, and cash awards. The 2009 Plan has a term of ten years . As of October 31, 2017 , 8,140,709 shares were available for future awards under the 2009 Stock Plan. Stock options under the 2009 Stock Plans may be either "incentive stock options", as defined in Section 422 of the Internal Revenue Code, or non-statutory. Options were granted prior to November 1, 2015 and generally vest at a rate of 25 percent per year over a period of four years from the date of grant with a maximum contractual term of ten years . The exercise price for stock options is generally not less than 100 percent of the fair market value of our common stock on the date the stock award is granted. Stock options were granted in years prior to fiscal year 2016. Agilent issues new shares of common stock when employee stock options are exercised. Effective November 1, 2003, the Compensation Committee of the Board of Directors approved the LTPP, which is a performance stock award program administered under the 2009 Stock Plan, for the company's executive officers and other key employees. Participants in this program are entitled to receive unrestricted shares of the company's stock after the end of a three-year period, if specified performance targets are met. Certain LTPP awards are generally designed to meet the criteria of a performance award with the performance metrics and peer group comparison based on the Total Stockholders’ Return (“TSR”) set at the beginning of the performance period. Effective November 1, 2015, the Compensation Committee of the Board of Directors approved another type of performance stock award, for the company's executive officers and other key employees. Participants in this program are also entitled to receive unrestricted shares of the company's stock after the end of a three-year period, if specified performance targets over the three-year period are met. The performance target for grants made in 2016 and 2017 were based on Operating Margin (“OM”) and Earnings Per Share ("EPS"), respectively. In the case of LTPP-OM, the performance targets for all the three years of performance period is set at the time of grant. The performance targets for LTPP-EPS grants for year 2 and year 3 of the performance period will be set in the first quarter of year 2 and year 3, respectively. All LTPP awards granted after November 1, 2015, are subject to a one-year post-vest holding period. Based on the performance metrics the final LTPP award may vary from zero to 200 percent of the target award. The maximum contractual term for awards under the LTPP program is three years and the maximum award value for awards granted in 2017 and 2016 cannot exceed 300 percent of the grant date target value. We consider the dilutive impact of these programs in our diluted net income per share calculation only to the extent that the performance conditions are expected to be met. We also issue restricted stock units under our share-based plans. The estimated fair value of the restricted stock unit awards granted under the Stock Plans is determined based on the market price of Agilent's common stock on the date of grant adjusted for expected dividend yield. Restricted stock units generally vest, with some exceptions, at a rate of 25 percent per year over a period of four years from the date of grant. All restricted stock units granted to our executives after November 1, 2015, are subject to a one-year post-vest holding period. Impact of Share-based Compensation Awards We have recognized compensation expense based on the estimated grant date fair value method under the authoritative guidance. For all share-based awards we have recognized compensation expense using a straight-line amortization method. As the guidance requires that share-based compensation expense be based on awards that are ultimately expected to vest, estimated share-based compensation has been reduced for estimated forfeitures. The impact on our results for share-based compensation was as follows: Years Ended October 31, 2017 2016 2015 (in millions) Cost of products and services $ 15 $ 14 $ 11 Research and development 6 6 5 Selling, general and administrative 40 40 39 Total share-based compensation expense $ 61 $ 60 $ 55 At October 31, 2017 and 2016 there was no share-based compensation capitalized within inventory. The weighted average grant date fair value of options, granted in 2015 was $10.58 per share. Stock options were granted in years prior to fiscal year 2016. Included in the 2015 expense is an incremental expense for the acceleration of share-based compensation related to the announced workforce reduction plan of $2 million . No such expense was recorded for 2017 or 2016 . Upon termination of the employees impacted by the workforce reduction, the non-vested Agilent awards held by these employees immediately vests. Employees have a period of up to three months in which to exercise the Agilent options before such options are cancelled. Valuation Assumptions For all periods presented, the fair value of share based awards for employee stock option awards was estimated using the Black-Scholes option pricing model. For all periods presented, shares granted under the LTPP (TSR) were valued using a Monte Carlo simulation. The ESPP allows eligible employees to purchase shares of our common stock at 85 percent of the fair market value at the purchase date. The estimated fair value of restricted stock unit awards, LTPP (OM) and LTPP (EPS) was determined based on the market price of Agilent's common stock on the date of grant adjusted for expected dividend yield and as appropriate, a discount related to the one-year post vesting. The compensation cost for LTPP (OM) and LTPP (EPS) awards reflect the cost of awards that are probable to vest at the end of the performance period. The following assumptions were used to estimate the fair value of employee stock options and LTPP grants. Years Ended October 31, 2017 2016 2015 Stock Option Plans: Weighted average risk-free interest rate — — 1.75% Dividend yield — — 1% Weighted average volatility — — 28% Expected life — — 5.5 years LTPP: Volatility of Agilent shares 23% 24% 25% Volatility of selected peer-company shares 15%-63% 14%-50% 12%-57% Price-wise correlation with selected peers 36% 35% 37% Post-vest restriction discount for all executive awards 5.3% 5.5% — Both the Black-Scholes and Monte Carlo simulation fair value models require the use of highly subjective and complex assumptions, including the option’s expected life and the price volatility of the underlying stock. For the stock option grants in 2015 and LTPP (TSR) grants in 2015 and 2016, we used the 3-year average historical stock price volatility of a group of our peer companies. We believed our historical volatility prior to the separation of Keysight in 2015 was no longer relevant to use. For LTPP (TSR) grants in 2017, we used our own historical stock price volatility. All LTPP awards granted in 2017 and 2016 to our executives have a one-year post-vest holding restriction. The estimated discount associated with post-vest holding restrictions is calculated using the Finnerty model. The model calculates the potential lost value if the employee were able to sell the shares during the lack of marketability period, instead of being required to hold the shares. For 2016, the model used the 3-year average historical stock price volatility of a group of our peer companies and an expected dividend yield to compute the discount. For 2017, the model used Agilent's own post-separation historical stock price volatility. The grants made during 2017 and 2016 have a discount of 5.3 percent and 5.5 percent , respectively, while computing the fair values. Share-Based Payment Award Activity Employee Stock Options The following table summarizes employee stock option award activity of our employees and directors for 2017 . Options Outstanding Weighted Average Exercise Price (in thousands) Outstanding at October 31, 2016 4,106 $ 33 Granted — $ — Exercised (1,343 ) $ 30 Cancelled/Forfeited/Expired (2 ) $ 41 Outstanding at October 31, 2017 2,761 $ 34 Forfeited and expired options from total cancellations in 2017 were as follows: Options Cancelled Weighted Average Exercise Price (in thousands) Forfeited 2 $ 41 Expired — $ — Total options cancelled during 2017 2 $ 41 The options outstanding and exercisable for equity share-based payment awards at October 31, 2017 were as follows: Options Outstanding Options Exercisable Range of Exercise Prices Number Outstanding Weighted Average Remaining Contractual Life Weighted Average Exercise Price Aggregate Intrinsic Value Number Exercisable Weighted Average Remaining Contractual Life Weighted Average Exercise Price Aggregate Intrinsic Value (in thousands) (in years) (in thousands) (in thousands) (in years) (in thousands) $0 - 25 170 1.6 $ 18 $ 8,561 170 1.6 $ 18 $ 8,561 $25.01 - 30 957 4.3 $ 26 39,804 957 4.3 $ 26 39,804 $30.01 - 40 528 6.1 $ 39 15,258 296 6.1 $ 39 8,566 $40.01 - over 1,106 7.0 $ 41 30,035 493 7.0 $ 41 13,396 2,761 5.6 $ 34 $ 93,658 1,916 5.0 $ 31 $ 70,327 The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value, based on the company's closing stock price of $68.03 at October 31, 2017 , which would have been received by award holders had all award holders exercised their awards that were in-the-money as of that date. The total number of in-the-money awards exercisable at October 31, 2017 was approximately 1.9 million . The following table summarizes the aggregate intrinsic value of options exercised in 2017 , 2016 and 2015 and the fair value of options granted in 2015 : Aggregate Intrinsic Value Weighted Average Exercise Price Per Share Value Using Black-Scholes Model (in thousands) Options exercised in fiscal 2015 $ 33,258 $ 24 Black-Scholes per share value of options granted during fiscal 2015 $ 11 Options exercised in fiscal 2016 $ 26,913 $ 25 Options exercised in fiscal 2017 $ 36,175 $ 30 As of October 31, 2017 , the unrecognized share-based compensation costs for outstanding stock option awards, net of expected forfeitures, was approximately $0.7 million which is expected to be amortized over a weighted average period of 1 year. The amount of cash received from the exercise of share-based awards granted was $66 million in 2017 , $62 million in 2016 and $58 million in 2015 . Non-Vested Awards The following table summarizes non-vested award activity in 2017 primarily for our LTPP and restricted stock unit awards. Shares Weighted Average Grant Price (in thousands) Non-vested at October 31, 2016 3,062 $ 40 Granted 1,405 $ 47 Vested (1,068 ) $ 39 Forfeited (84 ) $ 42 Change in LTPP shares in the year due to not meeting performance conditions (13 ) $ — Non-vested at October 31, 2017 3,302 $ 43 As of October 31, 2017 , the unrecognized share-based compensation costs for non-vested restricted stock awards, net of expected forfeitures, was approximately $58 million which is expected to be amortized over a weighted average period of 2.2 years. The total fair value of restricted stock awards vested was $42 million for 2017 , $21 million for 2016 and $31 million for 2015 . |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Oct. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 5. INCOME TAXES The domestic and foreign components of income from continuing operations before taxes are: Years Ended October 31, 2017 2016 2015 (in millions) U.S. operations $ 116 $ 27 $ 77 Non-U.S. operations 687 517 403 Total income from continuing operations before taxes $ 803 $ 544 $ 480 The provision for income taxes is comprised of: Years Ended October 31, 2017 2016 2015 (in millions) U.S. federal taxes: Current $ 15 $ (1 ) $ (91 ) Deferred 110 19 97 Non-U.S. taxes: Current 1 77 62 Deferred (7 ) (14 ) (27 ) State taxes, net of federal benefit: Current 1 3 1 Deferred (1 ) (2 ) — Total provision $ 119 $ 82 $ 42 The income tax provision does not reflect potential future tax savings resulting from excess deductions associated with our various share-based award plans. The significant components of deferred tax assets and deferred tax liabilities included on the consolidated balance sheet are: October 31, 2017 2016 Deferred Tax Assets Deferred Tax Liabilities Deferred Tax Assets Deferred Tax Liabilities (in millions) Inventory $ 16 $ — $ 13 $ — Intangibles — 93 — 92 Property, plant and equipment 12 — 16 — Warranty reserves 12 — 14 — Pension benefits and retiree medical benefits 70 — 136 — Employee benefits, other than retirement 28 — 28 — Net operating loss, capital loss, and credit carryforwards 328 — 293 — Unremitted earnings of foreign subsidiaries — 163 — 53 Share-based compensation 45 — 41 — Deferred revenue 45 — 42 — Other 1 — 12 — Subtotal 557 256 595 145 Tax valuation allowance (138 ) — (129 ) — Total deferred tax assets or deferred tax liabilities $ 419 $ 256 $ 466 $ 145 The decrease in 2017 as compared to 2016 for the deferred tax asset relating to pension benefits is due mainly to the tax effect of changes in pension plans recognized in other comprehensive income (loss). During the third quarter of 2017, the company determined a portion of current year foreign earnings from its low tax jurisdictions would not be considered as indefinitely reinvested. As such, a liability for that portion of unremitted foreign earnings was accrued causing an increase in ending deferred tax liability. Agilent records U.S. income taxes on the undistributed earnings of foreign subsidiaries unless the subsidiaries' earnings are considered indefinitely reinvested outside the U.S. As of October 31, 2017 the company recognized a $163 million deferred tax liability for the overall residual tax expected to be imposed upon the repatriation of unremitted foreign earnings not considered permanently reinvested. As of October 31, 2017 , the cumulative amount of undistributed earnings considered indefinitely reinvested was $5.8 billion . No deferred tax liability has been recognized on the basis difference created by such earnings since it is our intention to utilize those earnings in the company’s foreign operations. Due to the availability of U.S. foreign tax credits, the determination of the unrecognized deferred tax liability on these earnings is not practicable. The breakdown between long-term deferred tax assets and deferred tax liabilities was as follows for the years 2017 and 2016 : October 31, 2017 2016 (in millions) Long-term deferred tax assets (included within other assets) $ 240 $ 386 Long-term deferred tax liabilities (included within other long-term liabilities) (77 ) (65 ) Total $ 163 $ 321 Valuation allowances require an assessment of both positive and negative evidence when determining whether it is more likely than not that deferred tax assets are recoverable. Such assessment is required on a jurisdiction by jurisdiction basis. As of October 31, 2017 , we continued to maintain a valuation allowance of $138 million until sufficient positive evidence exists to support reversal. The valuation allowance is mainly related to deferred tax assets for California R&D credits, net operating losses in the state of Colorado and the Netherlands and capital losses in the U.S. and foreign jurisdictions. At October 31, 2017 , we had federal, state and foreign net operating loss carryforwards of approximately $10 million , $670 million and $310 million , respectively. The federal and state net operating loss carryforwards are subject to various limitations under Section 382 of the Internal Revenue Code and applicable state tax laws. If not utilized, the federal and state net operating loss carryforwards will both begin to expire in 2018. If not utilized, $124 million of the foreign net operating loss carryforwards will begin to expire in 2018. The remaining $186 million of the foreign net operating losses carry forward indefinitely. At October 31, 2017 , we had federal and foreign capital loss carryforwards of $48 million and $129 million , respectively. If not utilized, the federal capital loss carryforwards will begin to expire in 2022. The foreign capital losses carry forward indefinitely. At October 31, 2017 , we had federal and state tax credit carryforwards, net of reserves. of approximately $144 million and $55 million , respectively. If not utilized, the federal tax credit carryforwards will begin to expire in 2018. The state tax credits carry forward indefinitely. The differences between the U.S. federal statutory income tax rate and our effective tax rate are: Years Ended October 31, 2017 2016 2015 (in millions) Profit before tax times statutory rate $ 281 $ 190 $ 167 State income taxes, net of federal benefit 2 2 (8 ) Non-U.S. income taxed at different rates (43 ) (68 ) (72 ) Change in unrecognized tax benefits (110 ) (27 ) (116 ) Repatriation of foreign earnings — — 68 Valuation allowances 1 18 (2 ) Adjustments to earnings of foreign subsidiaries — (11 ) — Other, net (12 ) (22 ) 5 Provision for income taxes $ 119 $ 82 $ 42 Effective tax rate 14.8 % 15.1 % 8.7 % Agilent enjoys tax holidays in several different jurisdictions, most significantly in Singapore. The tax holidays provide lower rates of taxation on certain classes of income and require various thresholds of investments and employment or specific types of income in those jurisdictions. The tax holidays are due for renewal between 2018 and 2023. As a result of the incentives, the impact of the tax holidays decreased income taxes by $93 million , $86 million , and $65 million in 2017 , 2016 , and 2015 , respectively. The benefit of the tax holidays on net income per share (diluted) was approximately $0.29 , $0.26 , and $0.19 in 2017 , 2016 and 2015 , respectively. For 2017, the company's income tax expense was $119 million with an effective tax rate of 14.8 percent . Our effective tax rate is impacted by earnings realized in foreign jurisdictions with statutory tax rates lower than the federal statutory tax rate. During the year, the company determined a portion of current year foreign earnings from its low tax jurisdictions would not be considered as indefinitely reinvested. As such, a deferred tax liability for that portion of unremitted foreign earnings was accrued causing an increase in the annual tax expense. Our annual effective tax rate also included tax benefits due to the settlement of an audit in Germany for the years 2005 through 2008 and the lapse of U.S. statute of limitation for the fiscal years 2012 and 2013. This benefit was offset by a deferred tax liability required for the tax expected upon repatriation of related unremitted foreign earnings that were not asserted as indefinitely invested outside the U.S. For 2016, the company's income tax expense was $82 million with an effective tax rate of 15.1 percent . The income tax provision from continuing operations for the year ended October 31, 2016 included net discrete tax expense of $17 million primarily due to tax expense related to the establishment of a valuation allowance on an equity method impairment that would generate a capital loss when realized. For 2015, the company’s income tax expense was $42 million with an effective tax rate of 8.7 percent . The income tax expense from continuing operations for the year ended October 31, 2015 included a net discrete tax benefit of $55 million primarily due to the settlement of an Internal Revenue Service (“IRS) audit in the U.S. and the recognition of tax expense related to the repatriation of dividends. The breakdown between current and long-term income tax assets and liabilities, excluding deferred tax assets and liabilities, was as follows for the years 2017 and 2016 : October 31, 2017 2016 (in millions) Current income tax assets (included within other current assets) $ 77 $ 83 Long-term income tax assets (included within other assets) 18 19 Current income tax liabilities (included within other accrued liabilities) (55 ) (49 ) Long-term income tax liabilities (included within other long-term liabilities) (131 ) (190 ) Total $ (91 ) $ (137 ) The calculation of our tax liabilities involves dealing with uncertainties in the application of complex tax law and regulations in a multitude of jurisdictions. Although the guidance on the accounting for uncertainty in income taxes prescribes the use of a recognition and measurement model, the determination of whether an uncertain tax position has met those thresholds will continue to require significant judgment by management. In accordance with the guidance on the accounting for uncertainty in income taxes, for all U.S. and other tax jurisdictions, we recognize potential liabilities for anticipated tax audit issues based on our estimate of whether, and the extent to which, additional taxes and interest will be due. The ultimate resolution of tax uncertainties may differ from what is currently estimated, which could result in a material impact on income tax expense. If our estimate of income tax liabilities proves to be less than the ultimate assessment, a further charge to expense would be required. If events occur and the payment of these amounts ultimately proves to be unnecessary, the reversal of the liabilities would result in tax benefits being recognized in the period when we determine the liabilities are no longer necessary. The aggregate changes in the balances of our unrecognized tax benefits including all federal, state and foreign tax jurisdictions are as follows: 2017 2016 2015 (in millions) Balance, beginning of year $ 293 $ 289 $ 417 Additions for tax positions related to the current year 32 31 33 Additions for tax positions from prior years 1 1 3 Reductions for tax positions from prior years (3 ) (27 ) (156 ) Settlements with taxing authorities (52 ) — (4 ) Statute of limitations expirations (47 ) (1 ) (4 ) Balance, end of year $ 224 $ 293 $ 289 As of October 31, 2017 , we had $224 million of unrecognized tax benefits of which $202 million , if recognized, would affect our effective tax rate. We recognized a tax benefit of $9 million , a tax expense of $2 million and a tax benefit of $2 million of interest and penalties related to unrecognized tax benefits in 2017 , 2016 and 2015 , respectively. Interest and penalties accrued as of October 31, 2017 and 2016 were $16 million and $25 million , respectively. In the U.S., tax years remain open back to the year 2014 for federal income tax purposes and the year 2000 for significant states. There were no substantial changes to the status of these open tax years during 2017. The U.S. statute of limitation for audit of tax returns for the fiscal years 2012 and 2013 expired in July, 2017. The statute expiration resulted in the recognition, within the continuing operations, of previously unrecognized tax benefits of $40 million . This discrete tax benefit was offset by a deferred tax liability required for the tax expected upon repatriation of related unremitted foreign earnings that were not asserted as indefinitely invested outside the U.S. On September 22, 2015, we reached an agreement with the Internal Revenue Service ("IRS") for the tax years 2008 through 2011. The settlement resulted in the recognition, within the continuing operations, of previously unrecognized tax benefits of $119 million , offset by a tax liability on foreign distributions of approximately $99 million principally related to the repatriation of foreign earnings. In other major jurisdictions where the company conducts business, the tax years generally remain open back to the year 2001. During the first quarter of fiscal year 2017, the company settled its ongoing tax audit in Italy for the years 2011 to 2013 resulting in a net tax expense of $7 million . The settlement resulted in the recognition of previously unrecognized tax benefits of approximately $14 million . During the third quarter of fiscal year 2017, the company settled its ongoing tax audit in Germany for the years 2005 to 2008, which resulted in the recognition of previously unrecognized tax benefits of approximately $51 million . With these jurisdictions and the U.S., it is reasonably possible that there could be significant changes to our unrecognized tax benefits in the next twelve months due to either the expiration of a statute of limitation or a tax audit settlement which will be partially offset by an anticipated tax liability related to unremitted foreign earnings, where applicable. Given the number of years and numerous matters that remain subject to examination in various tax jurisdictions, management is unable to estimate the range of possible changes to the balance of our unrecognized tax benefits. On July 27, 2015, the U.S. Tax Court issued an opinion in Altera Corp. v. Commissioner related to the treatment of stock-based compensation expense in an intercompany cost-sharing arrangement. A final decision was entered by the U.S. Tax Court on December 1, 2015. At this time, the U.S. Department of the Treasury has not withdrawn the requirement from its regulations to include stock-based compensation. The IRS appealed the decision and filed its arguments opposing the Tax Court decision in June 2016. The case is currently in the appeals process in the Ninth Circuit. Due to the uncertainty surrounding the Court’s decision, we concluded that no adjustment to our consolidated financial statements is appropriate at this time. |
NET INCOME (LOSS) PER SHARE
NET INCOME (LOSS) PER SHARE | 12 Months Ended |
Oct. 31, 2017 | |
Earnings Per Share [Abstract] | |
NET INCOME (LOSS) PER SHARE | 6. NET INCOME PER SHARE The following is a reconciliation of the numerators and denominators of the basic and diluted net income per share computations for the periods presented below. Years Ended October 31, 2017 2016 2015 (in millions) Numerator: Income from continuing operations $ 684 $ 462 $ 438 Loss from discontinued operations $ — $ — $ (37 ) Net income 684 462 401 Denominators: Basic weighted average shares 322 326 333 Potential common shares — stock options and other employee stock plans 4 3 2 Diluted weighted average shares 326 329 335 The dilutive effect of share-based awards is reflected in diluted net income per share by application of the treasury stock method, which includes consideration of unamortized share-based compensation expense and the dilutive effect of in-the-money options and non-vested restricted stock units. Under the treasury stock method, the amount the employee must pay for exercising stock options and unamortized share-based compensation expense collectively are assumed proceeds to be used to repurchase hypothetical shares. An increase in the fair market value of the company's common stock can result in a greater dilutive effect from potentially dilutive awards. We issued a total of 3 million share-based awards in each year of 2017 , 2016 and 2015 . We exclude stock options with exercise prices greater than the average market price of our common stock from the calculation of diluted earnings per share because their effect would be anti-dilutive. For 2017 , 2016 and 2015 , options to purchase zero , 842,200 and 1.2 million shares respectively were excluded from the calculation of diluted earnings per share. In addition, we also exclude from the calculation of diluted earnings per share, stock options, ESPP, LTPP and restricted stock awards whose combined exercise price and unamortized fair value collectively were greater than the average market price of our common stock because their effect would also be anti-dilutive. For the year ended 2017 , 2016 and 2015 , options to purchase 200 shares, 229,600 shares and 368,900 shares, respectively, were excluded from the calculation of diluted earnings per share. |
INVENTORY
INVENTORY | 12 Months Ended |
Oct. 31, 2017 | |
Inventory Disclosure [Abstract] | |
INVENTORY | 7. INVENTORY October 31, 2017 2016 (in millions) Finished goods $ 363 $ 339 Purchased parts and fabricated assemblies 212 194 Inventory $ 575 $ 533 Inventory-related excess and obsolescence charges, included in continuing operations, of $24 million were recorded in total cost of products in 2017 , $20 million in 2016 and $30 million in 2015 , respectively. We record excess and obsolete inventory charges for both inventory on our site as well as inventory at our contract manufacturers and suppliers where we have non-cancellable purchase commitments. |
PROPERTY, PLANT AND EQUIPMENT,
PROPERTY, PLANT AND EQUIPMENT, NET | 12 Months Ended |
Oct. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT, NET | 8. PROPERTY, PLANT AND EQUIPMENT, NET October 31, 2017 2016 (in millions) Land $ 56 $ 53 Buildings and leasehold improvements 886 757 Machinery and equipment 470 420 Software 188 176 Total property, plant and equipment 1,600 1,406 Accumulated depreciation and amortization (843 ) (767 ) Property, plant and equipment, net $ 757 $ 639 There were no asset impairments in 2017 , 2016 and 2015 . Depreciation expenses were $94 million in 2017 , $95 million in 2016 and $98 million in 2015 . |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended |
Oct. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | 9. GOODWILL AND OTHER INTANGIBLE ASSETS The goodwill balances at October 31, 2017 , 2016 and 2015 and the movements in 2017 and 2016 for each of our reportable segments are shown in the table below: Life Sciences and Applied Markets Diagnostics and Genomics Agilent CrossLab Total (in millions) Goodwill as of October 31, 2015 $ 650 $ 1,234 $ 482 $ 2,366 Foreign currency translation impact 3 (11 ) 3 (5 ) Goodwill arising from acquisitions 137 — 19 156 Goodwill as of October 31, 2016 $ 790 $ 1,223 $ 504 $ 2,517 Foreign currency translation impact 2 10 — 12 Goodwill arising from acquisitions 26 52 — 78 Goodwill as of October 31, 2017 $ 818 $ 1,285 $ 504 $ 2,607 As of September 30, 2017, we assessed goodwill impairment for our reporting units and no impairment was indicated. The component parts of other intangible assets at October 31, 2017 and 2016 are shown in the table below: Other Intangible Assets (1) Gross Carrying Amount Accumulated Amortization and Impairments Net Book Value (in millions) As of October 31, 2016: Purchased technology $ 823 $ 572 $ 251 Backlog 1 1 — Trademark/Tradename 149 61 88 Customer relationships 263 211 52 Total amortizable intangible assets $ 1,236 $ 845 $ 391 In-Process R&D 17 — 17 Total $ 1,253 $ 845 $ 408 As of October 31, 2017: Purchased technology $ 855 $ 646 $ 209 Trademark/Tradename 149 73 76 Customer relationships 151 112 39 Total amortizable intangible assets $ 1,155 $ 831 $ 324 In-Process R&D 24 — 24 Total $ 1,179 $ 831 $ 348 (1) We also purchase technology and licenses from third parties, separately from business combinations. As of October 31, 2017 and 2016, the net balance of these intangibles not included in this table was $13 million and $8 million , respectively. In 2017, we acquired Cobalt Light Systems (“Cobalt”), an Oxfordshire, U.K. based provider of differentiated Raman spectroscopic instruments for the pharmaceutical industry, applied markets and public safety, for approximately $53 million in cash and Multiplicom NV (“Multiplicom”), a leading European diagnostics company with state-of-the-art genetic testing technology and products, for approximately $72 million in cash. We have not included the pro forma impact of these acquisitions since they are not material to our current or prior period results. During 2017, w e recorded additions to goodwill of $78 million and to other intangible assets of $52 million related to these acquisitions. During 2017, other intangible assets increased $5 million , due to the impact of foreign exchange translation. During 2017, we also wrote-off the gross carrying amount of $132 million and the related accumulated amortization of fully amortized intangible assets which were no longer being used. In 2016, we acquired Seahorse Bioscience, a leader in providing instruments and assay kits for measuring cell metabolism and bioenergetics, for $242 million and iLab Solutions LLC ("iLab"), a cloud-based solutions provider for core laboratory management for $26 million . In 2016, we recorded additions to goodwill of $156 million and to intangible assets of $121 million related to these acquisitions. During the year other intangible assets decreased $2 million , due to the impact of foreign exchange translation. There were no impairments of other intangible assets recorded during 2017 . In addition, we recorded impairments of other intangibles related to the cancellation of in-process research and development projects of $4 million and $3 million during 2016 and 2015 , respectively. Amortization expense of intangible assets was $120 million in 2017 , $154 million in 2016 , and $158 million in 2015 . Future amortization expense related to existing finite-lived purchased intangible assets associated with business combinations for the next five fiscal years and thereafter is estimated below: Estimated future amortization expense: (in millions) 2018 $ 94 2019 $ 69 2020 $ 57 2021 $ 43 2022 $ 32 Thereafter $ 42 |
INVESTMENTS
INVESTMENTS | 12 Months Ended |
Oct. 31, 2017 | |
Schedule of Investments [Abstract] | |
INVESTMENTS | 10. INVESTMENTS The following table summarizes the company's equity investments as of October 31, 2017 and 2016 (net book value): October 31, 2017 2016 (in millions) Long-Term Cost method investments $ 106 $ 104 Trading securities 32 31 Total $ 138 $ 135 Cost method investments consist of non-marketable equity securities and a fund and are accounted for at historical cost. Approximately $80 million relates to our variable interest entity investment, see Note 1, " Overview and Summary of Significant Accounting Policies ". Trading securities are reported at fair value, with gains or losses resulting from changes in fair value recognized currently in earnings. All of our investments, excluding trading securities, are subject to periodic impairment review. The impairment analysis requires significant judgment to identify events or circumstances that would likely have significant adverse effect on the future value of the investment. We consider various factors in determining whether an impairment is other-than-temporary, including the severity and duration of the impairment, forecasted recovery, the financial condition and near-term prospects of the investee, and our ability and intent to hold the investment for a period of time sufficient to allow for any anticipated recovery in market value. During the year ended October 31, 2016, we identified certain events and circumstances that indicated the decline in value of an equity method investment was other-than-temporary. As a result, we wrote down the investment to its fair value of zero , resulting in an impairment charge of approximately $18 million . Amounts included in other income (expense), net for the appropriate share of loss on equity method investments and other than temporary impairments were as follows: Years Ended October 31, 2017 2016 2015 (in millions) Equity method investments - share of losses $ — $ (10 ) $ (9 ) Equity method investments - other than temporary impairments — (18 ) — Total $ — $ (28 ) $ (9 ) Net unrealized gains on our trading securities portfolio were $4 million in 2017 , $1 million in 2016 and $2 million in 2015 . |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Oct. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | 11. FAIR VALUE MEASUREMENTS The authoritative guidance defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, we consider the principal or most advantageous market and assumptions that market participants would use when pricing the asset or liability. Fair Value Hierarchy The guidance establishes a fair value hierarchy that prioritizes the use of inputs used in valuation techniques into three levels. A financial instrument's categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. There are three levels of inputs that may be used to measure fair value: Level 1 — applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2 — applies to assets or liabilities for which there are inputs other than quoted prices included within level 1 that are observable, either directly or indirectly, for the asset or liability such as: quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in less active markets; or other inputs that can be derived principally from, or corroborated by, observable market data. Level 3 — applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis Financial assets and liabilities measured at fair value on a recurring basis as of October 31, 2017 were as follows: Fair Value Measurement at October 31, Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (in millions) Assets: Short-term Cash equivalents (money market funds) $ 1,659 $ 1,659 $ — $ — Derivative instruments (foreign exchange contracts) 4 — 4 — Long-term Trading securities 32 32 — — Total assets measured at fair value $ 1,695 $ 1,691 $ 4 $ — Liabilities: Short-term Derivative instruments (foreign exchange contracts) $ 6 $ — $ 6 $ — Long-term Deferred compensation liability 32 — 32 — Total liabilities measured at fair value $ 38 $ — $ 38 $ — Financial assets and liabilities measured at fair value on a recurring basis as of October 31, 2016 were as follows: Fair Value Measurement at October 31, Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (in millions) Assets: Short-term Cash equivalents (money market funds) $ 1,482 $ 1,482 $ — $ — Derivative instruments (foreign exchange contracts) 9 — 9 — Long-term Trading securities 31 31 — — Total assets measured at fair value $ 1,522 $ 1,513 $ 9 $ — Liabilities: Short-term Derivative instruments (foreign exchange contracts) $ 8 $ — $ 8 $ — Long-term Deferred compensation liability 31 — 31 — Total liabilities measured at fair value $ 39 $ — $ 39 $ — Our money market funds and trading securities are generally valued using quoted market prices and therefore are classified within level 1 of the fair value hierarchy. Our derivative financial instruments are classified within level 2, as there is not an active market for each hedge contract, but the inputs used to calculate the value of the instruments are tied to active markets. Our deferred compensation liability is classified as level 2 because although the values are not directly based on quoted market prices, the inputs used in the calculations are observable. Trading securities, which is comprised of mutual funds, bonds and other similar instruments, and deferred compensation liability are reported at fair value, with gains or losses resulting from changes in fair value recognized currently in net income. Certain derivative instruments are reported at fair value, with unrealized gains and losses, net of tax, included in accumulated other comprehensive loss within stockholders' equity. Realized gains and losses from the sale of these instruments are recorded in net income. Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis Long-Lived Assets For assets measured at fair value on a non-recurring basis, the following table summarizes the impairments included in net income for the years ended October 31, 2017 , 2016 and 2015 : Years Ended October 31, 2017 2016 2015 (in millions) Long-lived assets held and used $ — $ 4 $ 3 Long-lived assets held for sale $ — $ — $ — For 2017 , there were no impairments of long-lived assets held and used. Long-lived assets held and used with a carrying amount of $4 million were written down to their fair value of zero , resulting in an impairment charge of $4 million , which was included in net income for 2016 . Long-lived assets held and used with a carrying amount of $3 million were written down to their fair value of zero , resulting in an impairment charge of $3 million , which was included in net income for 2015 . The impairment charge in 2016 and 2015 of $4 million and $3 million , respectively, relates to IPR&D projects that were abandoned and written down to their fair value of zero. There were no impairments of long-lived assets held for sale in 2017 , 2016 and 2015 . Fair values for the impaired long-lived assets were measured using level 2 inputs. |
DERIVATIVES
DERIVATIVES | 12 Months Ended |
Oct. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES | 12. DERIVATIVES We are exposed to foreign currency exchange rate fluctuations and interest rate changes in the normal course of our business. As part of risk management strategy, we use derivative instruments, primarily forward contracts, purchased options, 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 are exposed to interest rate risk due to the mismatch between the interest expense we pay on our loans at fixed rates and the variable rates of interest we receive from cash, cash equivalents and other short-term investments. We have issued long-term debt in U.S. dollars at fixed interest rates based on the market conditions at the time of financing. The fair value of our fixed rate debt changes when the underlying market rates of interest change, and, in the past, we have used interest rate swaps to change our fixed interest rate payments to U.S. dollar LIBOR-based variable interest expense to match the floating interest income from our cash, cash equivalents and other short term investments. As of October 31, 2017 , all interest rate swap contracts had either been terminated or had expired. On August 9, 2011, we terminated five interest rate swap contracts related to our 2020 senior notes that represented the notional amount of $500 million . The gain to be amortized at October 31, 2017 was $11 million . All deferred gains from terminated interest rate swaps are being amortized over the remaining life of the respective senior notes. 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 between one and twelve months. These derivative instruments are designated and qualify as cash flow hedges under the criteria prescribed in the authoritative guidance. The changes in the fair value of the effective portion of the derivative instrument are recognized in accumulated other comprehensive income. Amounts associated with cash flow hedges are reclassified to cost of sales in the consolidated statement of operations when the forecasted transaction occurs. If it becomes probable that the forecasted transaction will not occur, the hedge relationship will be de-designated and amounts accumulated in other comprehensive income will be reclassified to other income (expense) in the current period. Changes in the fair value of the ineffective portion of derivative instruments are recognized in other income (expense) in the consolidated statement of operations in the current period. We record the premium paid (time value) of an option on the date of purchase as an asset. For options designated as cash flow hedges, changes in the time value are excluded from the assessment of hedge effectiveness and are recognized in other income (expense) over the life of the option contract. For the years ended October 31, 2017 , 2016 and 2015 , ineffectiveness and gains and losses recognized in earnings due to de-designation of cash flow hedge contracts were not significant. In July 2012, Agilent executed treasury lock agreements for $400 million in connection with future interest payments to be made on our 2022 senior notes issued on September 10, 2012. We designated the treasury lock as a cash flow hedge. The treasury lock contracts were terminated on September 10, 2012 and we recognized a deferred gain in accumulated other comprehensive income which is being amortized to interest expense over the life of the 2022 senior notes. The remaining gain to be amortized related to the treasury lock agreements at October 31, 2017 was $2 million . In February 2016, Agilent executed three forward-starting pay fixed/receive variable interest rate swaps for the notional amount of $300 million in connection with future interest payments to be made on our 2026 senior notes issued on September 15, 2016. These derivative instruments were designated and qualified as cash flow hedges under the criteria prescribed in the authoritative guidance. The swap arrangements were terminated on September 15, 2016 with a payment of $ 10 million and we recognized this as a deferred loss in accumulated other comprehensive income which is being amortized to interest expense over the life of the 2026 senior notes. The remaining loss to be amortized related to the interest rate swap agreements at October 31, 2017 was $9 million . Other Hedges Additionally, we enter into foreign exchange contracts to hedge monetary assets and liabilities that are denominated in currencies other than the functional currency of our subsidiaries. These foreign exchange contracts are carried at fair value and do not qualify for hedge accounting treatment and are not designated as hedging instruments. Changes in value of the derivative are recognized in other income (expense) in the consolidated statement of operations, in the current period, along with the offsetting foreign currency gain or loss on the underlying assets or liabilities. Our use of derivative instruments exposes us to credit risk to the extent that the counterparties may be unable to meet the terms of the agreement. We do, however, seek to mitigate such risks by limiting our counterparties to major financial institutions which are selected based on their credit ratings and other factors. We have established policies and procedures for mitigating credit risk that include establishing counterparty credit limits, monitoring credit exposures, and continually assessing the creditworthiness of counterparties. A number of our derivative agreements contain threshold limits to the net liability position with counterparties and are dependent on our corporate credit rating determined by the major credit rating agencies. The counterparties to the derivative instruments may request collateralization, in accordance with derivative agreements, on derivative instruments in net liability positions. The aggregate fair value of all derivative instruments with credit-risk-related contingent features that were in a net liability position as of October 31, 2017 , was $4 million . The credit-risk-related contingent features underlying these agreements had not been triggered as of October 31, 2017 . There were 71 foreign exchange forward contracts open as of October 31, 2017 and designated as cash flow hedges. There were 143 foreign exchange forward contracts open as of October 31, 2017 not designated as hedging instruments. The aggregated notional amounts by currency and designation as of October 31, 2017 were as follows: Derivatives Designated as Derivatives Not Designated as Hedging Instruments Forward Forward Currency Buy/(Sell) Buy/(Sell) (in millions) Euro $ (73 ) $ 85 British Pound (42 ) 12 Canadian Dollar (28 ) 4 Australian Dollars 4 16 Malaysian Ringgit — (3 ) Japanese Yen (55 ) 5 Danish Krone — 17 Korean Won (38 ) — Singapore Dollar 11 — Swiss Franc — 34 Other — (20 ) $ (221 ) $ 150 Derivative instruments are subject to master netting arrangements and are disclosed gross in the balance sheet in accordance with the authoritative guidance. The gross fair values and balance sheet location of derivative instruments held in the consolidated balance sheet as of October 31, 2017 and 2016 were as follows: Fair Values of Derivative Instruments Asset Derivatives Liability Derivatives Fair Value Fair Value Balance Sheet Location October 31, October 31, Balance Sheet Location October 31, October 31, (in millions) Derivatives designated as hedging instruments: Cash flow hedges Foreign exchange contracts Other current assets $ 2 $ 5 Other accrued liabilities $ 2 $ 3 $ 2 $ 5 $ 2 $ 3 Derivatives not designated as hedging instruments: Foreign exchange contracts Other current assets $ 2 $ 4 Other accrued liabilities $ 4 $ 5 Total derivatives $ 4 $ 9 $ 6 $ 8 The effect of derivative instruments for foreign exchange contracts designated as hedging instruments and not designated as hedging instruments in our consolidated statement of operations were as follows: 2017 2016 2015 (in millions) Derivatives designated as hedging instruments: Cash Flow Hedges Loss on interest rate swaps recognized in other comprehensive income (loss) $ — $ (9 ) $ — Gain (loss) recognized in accumulated other comprehensive income (loss) $ — $ (1 ) $ 11 Gain (loss) reclassified from accumulated other comprehensive income (loss) into cost of sales $ 1 $ (3 ) $ 18 Derivatives not designated as hedging instruments: Gain (loss) recognized in other income (expense), net within continuing operations $ 5 $ 1 $ (21 ) At October 31, 2017 the amount expected to be reclassified from accumulated other comprehensive income to cost of sales within the next twelve months is not significant. |
RETIREMENT PLANS AND POST RETIR
RETIREMENT PLANS AND POST RETIREMENT PENSION PLANS | 12 Months Ended |
Oct. 31, 2017 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |
RETIREMENT PLANS AND POST RETIREMENT PENSION PLANS | 13. RETIREMENT PLANS AND POST RETIREMENT PENSION PLANS General. Substantially all of our employees are covered under various defined benefit and/or defined contribution retirement plans. Additionally, we sponsor post-retirement health care benefits for our eligible U.S. employees. Agilent provides U.S. employees, who meet eligibility criteria under the Agilent Technologies, Inc. Retirement Plan (the "RP"), defined benefits which are based on an employee's base or target pay during the years of employment and on length of service. For eligible service through October 31, 1993, the benefit payable under the Agilent Retirement Plans is reduced by any amounts due to the eligible employee under the Agilent defined contribution Deferred Profit-Sharing Plan (the "DPSP"), which was closed to new participants as of November 1993. Effective November 1, 2014, Agilent’s U.S. defined benefit retirement plan is closed to new entrants including new employees, new transfers to the U.S. payroll and rehires. As of April 30, 2016, benefits under the RP were frozen. See Plan Amendments below. As of October 31, 2017 and 2016 , the fair value of plan assets of the DPSP was $156 million and $157 million , respectively. Note that the projected benefit obligation for the DPSP equals the fair value of plan assets. In addition to the DPSP, in the U.S., Agilent maintains a Supplemental Benefits Retirement Plan ("SBRP"), supplemental unfunded non-qualified defined benefit plan to provide benefits that would be provided under the RP but for limitations imposed by the Internal Revenue Code. The RP and the SBRP comprise the "U.S. Plans" in the tables below. Eligible employees outside the U.S. generally receive retirement benefits under various retirement plans based upon factors such as years of service and/or employee compensation levels. Eligibility is generally determined in accordance with local statutory requirements. 401(k) Defined Contribution Plan . Eligible Agilent U.S. employees may participate in the Agilent Technologies, Inc. 401(k) Plan. Effective April 30, 2016, we began matching contributions to employees up to a maximum of 6 percent of an employee's annual eligible compensation. Effective May 1, 2016 until April 30, 2022, we will provide an additional transitional company contribution for certain eligible employees equal to 3 percent , 4 percent or 5 percent of an employee's annual eligible compensation due to the RP benefits being frozen. The maximum contribution to the 401(k) Plan is 50 percent of an employee's annual eligible compensation, subject to regulatory limitations. The 401(k) Plan employer expense included in income from operations was $33 million in 2017, $24 million in 2016 and $14 million in 2015. Post-Retirement Medical Benefit Plans. In addition to receiving retirement benefits, Agilent U.S. employees who meet eligibility requirements as of their termination date may participate in the Agilent Technologies, Inc. Health Plan for Retirees. Eligible retirees who were less than age 50 as of January 1, 2005 and who retire after age 55 with 15 or more years of service are eligible for a fixed amount which can be utilized to pay for either sponsored plans and/or individual medicare plans. Effective January 1, 2012, employees who were at least age 50 as of January 1, 2005 and who retire after age 55 with 15 or more years of service are eligible for fixed dollar subsidies and stipends. Grandfathered retirees receive a fixed monthly subsidy toward pre-65 premium costs (subsidy capped at 2011 levels) and a fixed monthly stipend post-65. The subsidy amounts will not increase. In addition, any new employee hired on or after November 1, 2014, will not be eligible to participate in the retiree medical plans upon retiring. Current eligible employees will continue to participate in the retiree medical program in place as of November 1, 2014. Retirees will maintain the retiree medical benefits they are eligible for as of November 1, 2014. As of April 30, 2016, benefits under this plan were changed - see Plan Amendments below. Plan Amendments. In 2016, we made changes to our U.S. Retirement Plan and Supplemental Benefits Retirement Plan ("U.S. Plans"). Effective April 30, 2016, benefit accruals under the U.S. Plans were frozen. Any pension benefit earned in the U.S. Plans through April 30, 2016 remained fully vested, and there were no additional benefit accruals after April 30, 2016. In addition, active employees who have not met the eligibility requirement for the Retiree Medical Account (RMA) under the U.S. Post Retirement Benefit Plan - 55 years old with at least 15 years of Agilent service - as of April 30, 2016 - will only be eligible for 50 percent of the current RMA reimbursement amount upon retirement. Due to these plan amendments, we recorded a curtailment gain of $15 million in the U.S. Plans during the year ended October 31, 2016. In addition, we recognized a settlement gain of $1 million related to the U.S. Supplemental Benefits Retirement Plan during the year ended October 31, 2016. Japanese Welfare Pension Insurance Law . In Japan, Agilent has employees' pension fund plans, which are defined benefit pension plans established under the Japanese Welfare Pension Insurance Law (JWPIL). The plans are composed of (a) a substitutional portion based on the pay-related part of the old-age pension benefits prescribed by JWPIL (similar to social security benefits in the United States) and (b) a corporate portion based on a contributory defined benefit pension arrangement established at the discretion of the company. During the year ended October 31, 2017 , Agilent received government approval and returned the substitutional portion of Japan's pension plan to the Japanese government, as allowed by the JWPIL. The initial transfer resulted in a net gain of $32 million recorded within cost of sales and operating expenses in the consolidated statement of operations. The net gain consisted of two parts - a gain of $41 million , representing the difference between the fair values of the Accumulated Benefit Obligation (ABO) settled of $65 million and the assets transferred from the pension trust to the government of Japan of $24 million , offset by a settlement loss of $9 million related to the recognition of previously unrecognized actuarial losses included in accumulated other comprehensive income. In December 2017, after the Japanese government’s final review of our initial payment, we received a $5.2 million refund. We will record a settlement gain related to the refund in fiscal 2018. Components of Net periodic cost. The company uses alternate methods of amortization as allowed by the authoritative guidance which amortizes the actuarial gains and losses on a consistent basis for the years presented. For U.S. Plans, gains and losses are amortized over the average future lifetime of participants using the corridor method. For most Non-U.S. Plans and U.S. Post-Retirement Benefit Plans, gains and losses are amortized using a separate layer for each year's gains and losses. For the years ended October 31, 2017 , 2016 and 2015 , components of net periodic benefit cost and other amounts recognized in other comprehensive income were comprised of: Pensions U.S. Post-Retirement Benefit Plans U.S. Plans Non-U.S. Plans 2017 2016 2015 2017 2016 2015 2017 2016 2015 (in millions) Net periodic benefit cost (benefit) Service cost — benefits earned during the period $ — $ 12 $ 25 $ 19 $ 19 $ 18 $ 1 $ 1 $ 2 Interest cost on benefit obligation 15 16 14 12 16 23 3 4 4 Expected return on plan assets (25 ) (25 ) (27 ) (41 ) (44 ) (42 ) (7 ) (7 ) (8 ) Amortization of net actuarial loss 3 3 3 36 27 25 11 10 6 Amortization of prior service benefit — (3 ) (5 ) — — — (9 ) (10 ) (12 ) Total periodic benefit cost (benefit) $ (7 ) $ 3 $ 10 $ 26 $ 18 $ 24 $ (1 ) $ (2 ) $ (8 ) Curtailments and settlements $ — $ (16 ) $ — $ (32 ) $ — $ — $ — $ — $ — Other changes in plan assets and benefit obligations recognized in other comprehensive (income) loss Net actuarial (gain) loss $ (19 ) $ 22 $ 44 $ (128 ) $ 149 $ 32 $ (9 ) $ 3 $ 16 Amortization of net actuarial loss (3 ) (3 ) (3 ) (36 ) (27 ) (25 ) (11 ) (10 ) (6 ) Prior service cost (benefit) — 15 — — — — 9 (7 ) — Amortization of prior service benefit — 3 5 — — — — 10 12 Gain due to settlement — — — 32 — — — — — Foreign currency — — — 2 (3 ) 10 — — — Total recognized in other comprehensive (income) loss $ (22 ) $ 37 $ 46 $ (130 ) $ 119 $ 17 $ (11 ) $ (4 ) $ 22 Total recognized in net periodic benefit cost (benefit) and other comprehensive (income) loss $ (29 ) $ 24 $ 56 $ (136 ) $ 137 $ 41 $ (12 ) $ (6 ) $ 14 Funded Status. As of October 31, 2017 and 2016 , the funded status of the defined benefit and post-retirement benefit plans was: U.S. Defined Benefit Plans Non-U.S. Defined Benefit Plans U.S. Post-Retirement Benefit Plans 2017 2016 2017 2016 2017 2016 (in millions) Change in fair value of plan assets: Fair value — beginning of year $ 341 $ 347 $ 774 $ 778 $ 88 $ 91 Actual return on plan assets 66 13 81 25 14 3 Employer contributions 25 — 21 24 — — Participants' contributions — — — 1 — — Benefits paid (18 ) (19 ) (23 ) (27 ) (7 ) (6 ) Settlements — — (26 ) — — — Currency impact — — 28 (27 ) — — Fair value — end of year $ 414 $ 341 $ 855 $ 774 $ 95 $ 88 Change in benefit obligation: Benefit obligation — beginning of year $ 434 $ 415 $ 1,002 $ 900 $ 103 $ 112 Service cost — 12 19 19 1 1 Interest cost 15 16 12 16 3 4 Participants' contributions — — — 1 — — Plan amendment — — (1 ) — — (7 ) Actuarial (gain) loss 15 41 (43 ) 130 (3 ) (1 ) Benefits paid (19 ) (20 ) (22 ) (27 ) (7 ) (6 ) Curtailments — (30 ) — — — — Settlements — — (70 ) — — — Currency impact — — 38 (37 ) — — Benefit obligation — end of year $ 445 $ 434 $ 935 $ 1,002 $ 97 $ 103 Overfunded (underfunded) status of PBO $ (31 ) $ (93 ) $ (80 ) $ (228 ) $ (2 ) $ (15 ) Amounts recognized in the consolidated balance sheet consist of: Other assets $ — $ — $ 86 $ 1 $ — $ — Employee compensation and benefits (1 ) (1 ) — — — — Retirement and post-retirement benefits (30 ) (92 ) (166 ) (229 ) (2 ) (15 ) Total net asset (liability) $ (31 ) $ (93 ) $ (80 ) $ (228 ) $ (2 ) $ (15 ) Amounts Recognized in Accumulated Other Comprehensive Income (loss): Actuarial (gains) losses $ 65 $ 93 $ 243 $ 375 $ 20 $ 41 Prior service costs (benefits) — — (1 ) — (28 ) (37 ) Total $ 65 $ 93 $ 242 $ 375 $ (8 ) $ 4 The amounts in accumulated other comprehensive income expected to be recognized by Agilent as components of net expense during 2018 are as follows: U.S. Defined Benefit Plans Non-U.S. Defined Benefit Plans U.S. Post-Retirement Benefit Plans (in millions) Amortization of net prior service cost (benefit) $ — $ — $ (8 ) Amortization of actuarial net loss (gain) $ 1 $ 29 $ 8 Investment Policies and Strategies as of October 31, 2017 and 2016 . In the U.S., target asset allocations for our retirement and post-retirement benefit plans are approximately 80 percent to equities and approximately 20 percent to fixed income investments. Our DPSP target asset allocation is approximately 60 percent to equities and approximately 40 percent to fixed income investments. Approximately, 5 percent of our U.S. equity portfolio consists of limited partnerships. The general investment objective for all our plan assets is to obtain the optimum rate of investment return on the total investment portfolio consistent with the assumption of a reasonable level of risk. Specific investment objectives for the plans' portfolios are to: maintain and enhance the purchasing power of the plans' assets; achieve investment returns consistent with the level of risk being taken; and earn performance rates of return in accordance with the benchmarks adopted for each asset class. Outside the U.S., our target asset allocation is from 37 to 60 percent to equities, from 37 to 60 percent to fixed income investments, and from zero to 25 percent to real estate investments and from zero to 7 percent to cash, depending on the plan. All plans' assets are broadly diversified. Due to fluctuations in equity markets, our actual allocations of plan assets at October 31, 2017 and 2016 differ from the target allocation. Our policy is to bring the actual allocation in line with the target allocation. Equity securities include exchange-traded common stock and preferred stock of companies from broadly diversified industries. Fixed income securities include a global portfolio of corporate bonds of companies from diversified industries, government securities, mortgage-backed securities, asset-backed securities, derivative instruments and other. Other investments include a group trust consisting primarily of private equity partnerships. Portions of the cash and cash equivalent, equity, and fixed income investments are held in commingled funds that are valued using Net Asset Value (“NAV”) as the practical expedient. In addition, some of the investments valued using NAV as the practical expedient may have limits on their redemption to weekly or monthly and/or may require prior written notice specified by each fund. Fair Value. The measurement of the fair value of pension and post-retirement plan assets uses the valuation methodologies and the inputs as described in Note 11, "Fair Value Measurements". Cash and Cash Equivalents - Cash and cash equivalents consist of short-term investment funds. The funds also invest in short-term domestic fixed income securities and other securities with debt-like characteristics emphasizing short-term maturities and quality. Some of our cash and cash equivalents are held in commingled funds. Other cash and cash equivalents are classified as Level 1 investments. Equity - Some equity securities consisting of common and preferred stock that are not traded on an active market are valued at quoted prices reported by investment dealers based on the underlying terms of the security and comparison to similar securities traded on an active market; these are classified as Level 2 investments. Securities which have quoted prices in active markets are classified as Level 1 investments. Fixed Income - Some of the fixed income securities are not actively traded and are valued at quoted prices based on the terms of the security and comparison to similar securities traded on an active market; these are classified as Level 2 investments. Securities which have quoted prices in active markets are classified as Level 1 investments. Other Investments - Other investments also includes partnership investments where, due to their private nature, pricing inputs are not readily observable. Asset valuations are developed by the general partners that manage the partnerships. These valuations are based on proprietary appraisals, application of public market multiples to private company cash flows, utilization of market transactions that provide valuation information for comparable companies and other methods. Holdings of limited partnerships are classified as Level 3. Agilent has adopted new accounting guidance related to the presentation of certain investments using the NAV practical expedient. The accounting guidance exempts investments using this practical expedient from categorization within the fair value hierarchy. Agilent applied the adoption of this standard retrospectively and removed certain investments from the fair value hierarchy in both periods. The following tables present the fair value of U.S. Defined Benefit Plans assets classified under the appropriate level of the fair value hierarchy as of October 31, 2017 and 2016 . Fair Value Measurement October 31, Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Not Subject to Leveling (1) (in millions) Cash and Cash Equivalents $ 4 $ 1 $ — $ — $ 3 Equity 327 88 — — 239 Fixed Income 76 38 — — 38 Other Investments 7 — — 7 — Total assets measured at fair value $ 414 $ 127 $ — $ 7 $ 280 (1) Investments measured at the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. Fair Value Measurement October 31, Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Not Subject to Leveling (1) (in millions) Cash and Cash Equivalents $ 4 $ — $ — $ — $ 4 Equity 248 62 — — 186 Fixed Income 80 42 — — 38 Other Investments 9 — — 9 — Total assets measured at fair value $ 341 $ 104 $ — $ 9 $ 228 (1) Investments measured at the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. For U.S. Defined Benefit Plans assets measured at fair value using significant unobservable inputs (level 3), the following table summarizes the change in balances during 2017 and 2016 : Years Ended October 31. 2017 2016 Balance, beginning of year $ 9 $ 9 Realized gains/(losses) (3 ) — Unrealized gains/(losses) 3 3 Purchases, sales, issuances, and settlements (2 ) (3 ) Transfers in (out) — — Balance, end of year $ 7 $ 9 The following tables present the fair value of U.S. Post-Retirement Benefit Plans assets classified under the appropriate level of the fair value hierarchy as of October 31, 2017 and 2016 . Fair Value Measurement at October 31, Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Not Subject to Leveling (1) (in millions) Cash and Cash Equivalents $ 6 $ 5 $ — $ — $ 1 Equity 68 18 — — 50 Fixed Income 17 9 — — 8 Other Investments 4 — — 4 — Total assets measured at fair value $ 95 $ 32 $ — $ 4 $ 59 (1) Investments measured at the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. Fair Value Measurement October 31, Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Not Subject to Leveling (1) (in millions) Cash and Cash Equivalents $ 3 $ 2 $ — $ — $ 1 Equity 59 15 — — 44 Fixed Income 21 11 — — 10 Other Investments 5 — — 5 — Total assets measured at fair value $ 88 $ 28 $ — $ 5 $ 55 (1) Investments measured at the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. For U.S. Post-Retirement Benefit Plans assets measured at fair value using significant unobservable inputs (level 3), the following table summarizes the change in balances during 2017 and 2016 : Years Ended October 31, 2017 2016 Balance, beginning of year $ 5 $ 6 Realized gains/(losses) (2 ) — Unrealized gains/(losses) 2 1 Purchases, sales, issuances, and settlements (1 ) (2 ) Transfers in (out) — — Balance, end of year $ 4 $ 5 The following tables present the fair value of non-U.S. Defined Benefit Plans assets classified under the appropriate level of the fair value hierarchy as of October 31, 2017 and 2016 : Fair Value Measurement at October 31, Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Not Subject to Leveling (1) (in millions) Cash and Cash Equivalents $ 8 $ — $ 8 $ — $ — Equity 539 326 28 — 185 Fixed Income 307 60 229 — 18 Other Investments 1 — 1 — — Total assets measured at fair value $ 855 $ 386 $ 266 $ — $ 203 (1) Investments measured at the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. Fair Value Measurement October 31, Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Not Subject to Leveling (1) (in millions) Cash and Cash Equivalents $ 26 $ 18 $ 8 $ — $ — Equity 422 239 23 — 160 Fixed Income 325 83 222 — 20 Other Investments 1 — 1 — — Total assets measured at fair value $ 774 $ 340 $ 254 $ — $ 180 (1) Investments measured at the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The table below presents the combined projected benefit obligation ("PBO"), accumulated benefit obligation ("ABO") and fair value of plan assets, grouping plans using comparisons of the PBO and ABO relative to the plan assets as of October 31, 2017 or 2016 . 2017 2016 Benefit Obligation Benefit Obligation Fair Value of Plan Assets Fair Value of Plan Assets PBO PBO (in millions) U.S. defined benefit plans where PBO exceeds the fair value of plan assets $ 445 $ 414 $ 434 $ 341 U.S. defined benefit plans where fair value of plan assets exceeds PBO — — — — Total $ 445 $ 414 $ 434 $ 341 Non-U.S. defined benefit plans where PBO exceeds or is equal to the fair value of plan assets $ 563 $ 397 $ 970 $ 741 Non-U.S. defined benefit plans where fair value of plan assets exceeds PBO 372 458 32 33 Total $ 935 $ 855 $ 1,002 $ 774 ABO ABO U.S. defined benefit plans where ABO exceeds the fair value of plan assets $ 445 $ 414 $ 434 $ 341 U.S. defined benefit plans where the fair value of plan assets exceeds ABO — — — — Total $ 445 $ 414 $ 434 $ 341 Non-U.S. defined benefit plans where ABO exceeds or is equal to the fair value of plan assets $ 539 $ 397 $ 737 $ 542 Non-U.S. defined benefit plans where fair value of plan assets exceeds ABO 365 458 226 232 Total $ 904 $ 855 $ 963 $ 774 Contributions and Estimated Future Benefit Payments. During fiscal year 2018 , we do not expect to contribute to the U.S. defined benefit plans nor to the Post-Retirement Medical Plans and we expect to contribute $22 million to plans outside the U.S. The following table presents expected future benefit payments for the next 10 years: U.S. Defined Benefit Plans Non-U.S. Defined Benefit Plans U.S. Post-Retirement Benefit Plans (in millions) 2018 $ 29 $ 23 $ 8 2019 $ 28 $ 25 $ 8 2020 $ 31 $ 26 $ 8 2021 $ 29 $ 29 $ 7 2022 $ 30 $ 32 $ 7 2023 - 2027 $ 145 $ 176 $ 34 Assumptions. The assumptions used to determine the benefit obligations and expense for our defined benefit and post-retirement benefit plans are presented in the tables below. The expected long-term return on assets below represents an estimate of long-term returns on investment portfolios consisting of a mixture of equities, fixed income and alternative investments in proportion to the asset allocations of each of our plans. We consider long-term rates of return, which are weighted based on the asset classes (both historical and forecasted) in which we expect our pension and post-retirement funds to be invested. Discount rates reflect the current rate at which pension and post-retirement obligations could be settled based on the measurement dates of the plans - October 31. The U.S. discount rates at October 31, 2017 and 2016 , were determined based on the results of matching expected plan benefit payments with cash flows from a hypothetically constructed bond portfolio. The non-U.S. rates were generally based on published rates for high-quality corporate bonds. The range of assumptions that were used for the non-U.S. defined benefit plans reflects the different economic environments within various countries. Assumptions used to calculate the net periodic cost in each year were as follows: For years ended October 31, 2017 2016 2015 U.S. defined benefit plans: Discount rate 3.75% 4.20% 4.00% Average increase in compensation levels n/a 3.50% 3.50% Expected long-term return on assets 7.25% 7.50% 8.00% Non-U.S. defined benefit plans: Discount rate 0.22-2.66% 0.77-3.76% 1.50-4.00% Average increase in compensation levels 2.00-4.25% 2.25-4.00% 2.50-3.25% Expected long-term return on assets 4.00-6.25% 4.25-6.50% 4.00-6.50% U.S. post-retirement benefits plans: Discount rate 3.50% 4.00% 4.00% Expected long-term return on assets 7.25% 7.50% 8.00% Current medical cost trend rate 6.00% 7.00% 8.00% Ultimate medical cost trend rate 3.50% 3.50% 3.50% Medical cost trend rate decreases to ultimate rate in year 2029 2029 2028 Assumptions used to calculate the benefit obligation were as follows: As of the Years Ending October 31, 2017 2016 U.S. defined benefit plans: Discount rate 3.75% 3.75% Non-U.S. defined benefit plans: Discount rate 0.67-2.52% 0.40-2.62% Average increase in compensation levels 2.00-3.25% 2.00-4.25% U.S. post-retirement benefits plans: Discount rate 3.50% 3.50% Current medical cost trend rate 6.00% 6.00% Ultimate medical cost trend rate 3.50% 3.50% Medical cost trend rate decreases to ultimate rate in year 2029 2029 Health care trend rates do not have a significant effect on the total service and interest cost components or on the post-retirement benefit obligation amounts reported for the U.S. Post-Retirement Benefit Plan for the year ended October 31, 2017 . |
GUARANTEES
GUARANTEES | 12 Months Ended |
Oct. 31, 2017 | |
Guarantees [Abstract] | |
GUARANTEES | 14. GUARANTEES Standard Warranty We accrue for standard warranty costs based on historical trends in warranty charges as a percentage of net product shipments. 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 products are sold. The standard warranty accrual balances are held in other accrued and other long-term liabilities on our consolidated balance sheet. Our standard warranty terms typically extend to one years from the date of delivery, depending on the product. A summary of the standard warranty accrual activity is shown in the table below. The standard warranty accrual balances are held in other accrued and other long-term liabilities. October 31, 2017 2016 (in millions) Balance as of October 31, 2016 and 2015 $ 35 $ 31 Accruals for warranties including change in estimates 53 53 Settlements made during the period (54 ) (49 ) Balance as of October 31, 2017 and 2016 $ 34 $ 35 Accruals for warranties due within one year 33 34 Accruals for warranties due after one year 1 1 Balance as of October 31, 2017 and 2016 $ 34 $ 35 Indemnifications in Connection with Transactions In connection with various divestitures, acquisitions, spin-offs and other transactions, we have agreed to indemnify certain parties, their affiliates and/or other related parties against certain damages and expenses that might occur in the future. These indemnifications may cover a variety of liabilities, including, but not limited to, employee, tax, environmental, intellectual property, litigation and other liabilities related to the business conducted prior to the date of the transaction. In our opinion, the fair value of these indemnification obligations was not material as of October 31, 2017 . Indemnifications to Officers and Directors Our corporate by-laws require that we indemnify our officers and directors, as well as those who act as directors and officers of other entities at our request, against expenses, judgments, fines, settlements and other amounts actually and reasonably incurred in connection with any proceedings arising out of their services to Agilent and such other entities, including service with respect to employee benefit plans. In addition, we have entered into separate indemnification agreements with each director and each board-appointed officer of Agilent which provide for indemnification of these directors and officers under similar circumstances and under additional circumstances. The indemnification obligations are more fully described in the by-laws and the indemnification agreements. We purchase standard insurance to cover claims or a portion of the claims made against our directors and officers. Since a maximum obligation is not explicitly stated in our by-laws or in our indemnification agreements and will depend on the facts and circumstances that arise out of any future claims, the overall maximum amount of the obligations cannot be reasonably estimated. Historically, we have not made payments related to these obligations, and the fair value for these indemnification obligations was not material as of October 31, 2017 . Other Indemnifications As is customary in our industry and as provided for in local law in the U.S. and other jurisdictions, many of our standard contracts provide remedies to our customers and others with whom we enter into contracts, such as defense, settlement, or payment of judgment for intellectual property claims related to the use of our products. From time to time, we indemnify customers, as well as our suppliers, contractors, lessors, lessees, companies that purchase our businesses or assets and others with whom we enter into contracts, against combinations of loss, expense, or liability arising from various triggering events related to the sale and the use of our products and services, the use of their goods and services, the use of facilities and state of our owned facilities, the state of the assets and businesses that we sell and other matters covered by such contracts, usually up to a specified maximum amount. In addition, from time to time we also provide protection to these parties against claims related to undiscovered liabilities, additional product liability or environmental obligations. In our experience, claims made under such indemnifications are rare and the associated estimated fair value of the liability was not material as of October 31, 2017 . In connection with the sale of several of our businesses, we have agreed to indemnify the buyers of such business, their respective affiliates and other related parties against certain damages that they might incur in the future. The continuing indemnifications primarily cover damages relating to liabilities of the businesses that Agilent retained and did not transfer to the buyers, as well as other specified items. In our opinion, the fair value of these indemnification obligations was not material as of October 31, 2017 . |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Oct. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 15. COMMITMENTS AND CONTINGENCIES Operating Lease Commitments: We lease certain real and personal property from unrelated third parties under non-cancelable operating leases. Future minimum lease payments under operating leases at October 31, 2017 were $42 million for 2018 , $33 million for 2019 , $19 million for 2020 , $10 million for 2021 , $6 million for 2022 and $26 million thereafter. Future minimum lease income under leases at October 31, 2017 was $9 million for 2018 , $9 million for 2019 , $8 million for 2020 , and $10 million thereafter. Certain leases require us to pay property taxes, insurance and routine maintenance, and include escalation clauses. Total rent expense was $57 million in 2017 , $61 million in 2016 and $65 million in 2015 . Contingencies: We are involved in lawsuits, claims, investigations and proceedings, including, but not limited to, patent, commercial and environmental matters, which arise in the ordinary course of business. There are no matters pending that we currently believe are reasonably possible of having a material impact to our business, consolidated financial condition, results of operations or cash flows. |
SHORT-TERM DEBT
SHORT-TERM DEBT | 12 Months Ended |
Oct. 31, 2017 | |
Short-term Debt [Abstract] | |
SHORT-TERM DEBT | 16. SHORT-TERM DEBT Credit Facilities On September 15, 2014 , Agilent entered into a credit agreement with a financial institution which provides for a $400 million five -year unsecured credit facility that will expire on September 15, 2019 . On June 9, 2015, the commitments under the existing credit facility were increased by $300 million and on July 14, 2017, the commitments under the existing credit facility were increased by an additional $300 million so that the aggregate commitments under the facility now total $1 billion . As of October 31, 2017 , the company had borrowings of $110 million outstanding under the facility. We were in compliance with the covenants for the credit facility during the years ended October 31, 2017 and 2016 . 2017 Senior Notes In October 2007 , the company issued an aggregate principal amount of $600 million in senior notes ("2017 senior notes"). On October 20, 2014, we settled the redemption of $500 million of the $600 million outstanding aggregate principal amount of our 2017 senior notes. The 2017 senior notes are repayable within one year as of October 31, 2017 and have been reclassified to short-term debt. The remaining $100 million in senior notes matured and were paid in full on November 1, 2017. |
LONG-TERM DEBT
LONG-TERM DEBT | 12 Months Ended |
Oct. 31, 2017 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | 17. LONG-TERM DEBT Senior Notes The following table summarizes the company's long-term senior notes and the related interest rate swaps: October 31, 2017 October 31, 2016 Amortized Principal Swap Total Amortized Principal Swap Total (in millions) 2017 Senior Notes $ — $ — $ — $ 100 $ 1 101 2020 Senior Notes 499 11 510 498 15 513 2022 Senior Notes 398 — 398 398 — 398 2023 Senior Notes 596 — 596 595 — 595 2026 Senior Notes 297 — 297 297 — 297 Total $ 1,790 $ 11 $ 1,801 $ 1,888 $ 16 $ 1,904 On November 1, 2016, we adopted new guidance related to the presentation of debt issuance costs in the balance sheet. As a result, the amortized principal of long-term debt decreased by $8 million . The table above for October 31, 2016 reflects the new disclosure requirement. Please refer to Note 2, "New Accounting Pronouncements" for additional information. 2020 Senior Notes In July 2010 , the company issued an aggregate principal amount of $500 million in senior notes ("2020 senior notes"). The 2020 senior notes were issued at 99.54% of their principal amount. The notes will mature on July 15, 2020 , and bear interest at a fixed rate of 5.00% per annum. The interest is payable semi-annually on January 15th and July 15th of each year, payments commenced on January 15, 2011 . On August 9, 2011 , we terminated our interest rate swap contracts related to our 2020 senior notes that represented the notional amount of $500 million . The asset value, including interest receivable, upon termination for these contracts was approximately $34 million and the amount to be amortized at October 31, 2017 was $11 million . The gain is being deferred and amortized to interest expense over the remaining life of the 2020 senior notes. 2022 Senior Notes In September 2012 , the company issued an aggregate principal amount of $400 million in senior notes ("2022 senior notes"). The 2022 senior notes were issued at 99.80% of their principal amount. The notes will mature on October 1, 2022 , and bear interest at a fixed rate of 3.20% per annum. The interest is payable semi-annually on April 1st and October 1st of each year, payments commenced on April 1, 2013 . 2023 Senior Notes In June 2013 , the company issued aggregate principal amount of $600 million in senior notes ("2023 senior notes"). The 2023 senior notes were issued at 99.544% of their principal amount. The notes will mature on July 15, 2023 and bear interest at a fixed rate of 3.875% per annum. The interest is payable semi-annually on January 15th and July 15th of each year and payments commenced January 15, 2014 . 2026 Senior Notes On September 15, 2016 , the company issued aggregate principal amount of $300 million in senior notes ("2026 senior notes"). The 2026 senior notes were issued at 99.624% % of their principal amount. The notes will mature on September 22, 2026 and bear interest at a fixed rate of 3.050% per annum. The interest is payable semi-annually on March 22nd and September 22nd of each year and payments commenced March 22, 2017 . In February 2016, Agilent executed three forward-starting pay fixed/receive variable interest rate swaps for the notional amount of $300 million in connection with future interest payments to be made on our 2026 senior notes issued on September 15, 2016. The swap arrangements were terminated on September 15, 2016 with a payment of $10 million and we recognized this as a deferred loss in accumulated other comprehensive income which is being amortized to interest expense over the life of the 2026 senior notes.The remaining loss to be amortized related to the interest rate swap agreements at October 31, 2017 was $9 million . Other Debt In 2016, we paid approximately $37 million of our mortgage debt, secured on buildings in Denmark, to a Danish financial institution. The gain recognized upon early payment was not material. No balance exists on this debt as of October 31. 2016. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Oct. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
STOCKHOLDERS EQUITY | 18. STOCKHOLDERS' EQUITY Stock Repurchase Program On November 22, 2013 we announced that our board of directors had authorized a share repurchase program. The program was designed to reduce or eliminate dilution resulting from issuance of stock under the company's employee equity incentive programs to target maintaining a weighted average share count of approximately 335 million diluted shares. For the year ended October 31, 2015 we repurchased 6 million shares for $267 million . For the year ended October 31, 2016 we repurchased approximately 2.4 million shares for $98 million which completed the purchases under this authorization. On May 28, 2015 we announced that our board of directors had approved a new share repurchase program (the "2015 repurchase program"). The 2015 share repurchase program authorizes the purchase of up to $1.14 billion of our common stock at the company's discretion through and including November 1, 2018. The 2015 repurchase program does not require the company to acquire a specific number of shares and may be suspended or discontinued at any time. During the year ended October 31, 2016 , upon the completion of our previous repurchase program, we repurchased approximately 8.3 million shares for $336 million under this authorization. During the year ended October 31, 2017 we repurchased approximately 4.1 million shares for $194 million under this authorization. As of October 31, 2017 , we had remaining authorization to repurchase up to $610 million of our common stock under this program. During fiscal year 2017, we retired 294.2 million treasury shares at an aggregate cost of $10.7 billion , the amount of which represents all of our previously repurchased shares over the past 12 years including repurchases made in fiscal year 2017. The retirement of these treasury shares resulted in a decrease of $6.7 billion to retained earnings and a decrease of $4.0 billion to additional paid-in-capital. Cash Dividends on Shares of Common Stock During the year ended October 31, 2017 , cash dividends of $0.528 per share, or $170 million were declared and paid on the company's outstanding common stock. During the year ended October 31, 2016 , cash dividends of $0.460 per share, or $150 million were declared and paid on the company's outstanding common stock. During the year ended October 31, 2015 , cash dividends of $0.400 per share, or $133 million were declared and paid on the company's outstanding common stock. On November 15, 2017 we declared a quarterly dividend of $0.149 per share of common stock, or approximately $48 million which will be paid on January 24, 2018 to shareholders of record as of the close of business on January 2, 2018 . The timing and amounts of any future dividends are subject to determination and approval by our board of directors. Accumulated Other Comprehensive Income (Loss) The following table summarizes the components of our accumulated other comprehensive income (loss) as of October 31, 2017 and 2016 , net of tax effect: October 31, 2017 2016 (in millions) Foreign currency translation, net of tax expense of $(8) and $(5) for 2017 and 2016, respectively $ (156 ) (197 ) Unrealized losses (including prior service benefit) on defined benefit plans, net of tax benefit of $127 and $176 for 2017 and 2016, respectively (188 ) (305 ) Unrealized gains (losses) on derivative instruments, net of tax benefit of $2 and $2 for 2017 and 2016, respectively (2 ) (1 ) Total accumulated other comprehensive loss $ (346 ) $ (503 ) Changes in accumulated other comprehensive income (loss) by component and related tax effects for the years ended October 31, 2017 and 2016 were as follows (in millions): Net defined benefit pension cost and post retirement plan costs Foreign currency translation Prior service credits Actuarial Losses Unrealized gains (losses) on derivatives Total (in millions) As of October 31, 2015 $ (189 ) $ 161 $ (365 ) $ 2 $ (391 ) Other comprehensive income (loss) before reclassifications (5 ) 6 (171 ) (10 ) (180 ) Amounts reclassified out of accumulated other comprehensive income — (29 ) 43 3 17 Tax benefit (3 ) 8 42 4 51 Other comprehensive loss (8 ) (15 ) (86 ) (3 ) (112 ) As of October 31, 2016 $ (197 ) $ 146 $ (451 ) $ (1 ) $ (503 ) Other comprehensive income (loss) before reclassifications 44 — 116 — 160 Amounts reclassified out of accumulated other comprehensive income — (9 ) 59 (1 ) 49 Tax (expense) benefit (3 ) 3 (52 ) — (52 ) Other comprehensive income (loss) 41 (6 ) 123 (1 ) 157 As of October 31, 2017 $ (156 ) $ 140 $ (328 ) $ (2 ) $ (346 ) Reclassifications out of accumulated other comprehensive income (loss) for the years ended October 31, 2017 and 2016 were as follows (in millions): Details about accumulated other Amounts Reclassified Affected line item in comprehensive income components from other comprehensive income statement of operations 2017 2016 Unrealized gains and (losses) on derivatives $ 1 $ (3 ) Cost of products 1 (3 ) Total before income tax — — (Provision)/benefit for income tax 1 (3 ) Total net of income tax Net defined benefit pension cost and post retirement plan costs: Actuarial net loss (59 ) (43 ) Cost of sales and operating expenses Prior service benefit 9 29 Cost of sales and operating expenses (50 ) (14 ) Total before income tax 14 4 (Provision)/benefit for income tax (36 ) (10 ) Total net of income tax Total reclassifications for the period $ (35 ) $ (13 ) Amounts in parentheses indicate reductions to income and increases to other comprehensive income. Reclassifications of prior service benefit and actuarial net loss in respect of retirement plans and post retirement pension plans are included in the computation of net periodic cost (see Note 13 "Retirement Plans and Post Retirement Pension Plans"). |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Oct. 31, 2017 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | 19. SEGMENT INFORMATION Description of Segments. We are a global leader in life sciences, diagnostics and applied chemical markets, providing application focused solutions that include instruments, software, services and consumables for the entire laboratory workflow. Agilent has three business segments comprised of the life sciences and applied markets business, diagnostics and genomics business and the Agilent CrossLab business each of which comprises a reportable segment. The three operating segments were determined based primarily on how the chief operating decision maker views and evaluates our operations. Operating results are regularly reviewed by the chief operating decision maker to make decisions about resources to be allocated to the segment and to assess its performance. Other factors, including market separation and customer specific applications, go-to-market channels, products and services and manufacturing are considered in determining the formation of these operating segments. A description of our three reportable segments is as follows: Our life sciences and applied markets business provides application-focused solutions that include instruments and software that enable customers to identify, quantify and analyze the physical and biological properties of substances and products, as well as enable customers in the clinical and life sciences research areas to interrogate samples at the molecular and cellular level. Key product categories include: liquid chromatography ("LC") systems and components; liquid chromatography mass spectrometry ("LCMS") systems; gas chromatography ("GC") systems and components; gas chromatography mass spectrometry ("GCMS") systems; inductively coupled plasma mass spectrometry ("ICP-MS") instruments; atomic absorption ("AA") instruments; microwave plasma-atomic emission spectrometry (“MP-AES”) instruments; inductively coupled plasma optical emission spectrometry ("ICP-OES") instruments; raman spectroscopy; cell analysis plate based assays; laboratory software and informatics systems; laboratory automation; dissolution testing; vacuum pumps and measurement technologies. Our diagnostics and genomics business is comprised of five areas of activity providing active pharmaceutical ngredients ("APIs") for oligo-based therapeutics as well as solutions that include reagents, instruments, software and consumables, which enable customers in the clinical and life sciences research areas to interrogate samples at the cellular and molecular level. First, our genomics business includes arrays for DNA mutation detection, genotyping, gene copy number determination, identification of gene rearrangements, DNA methylation profiling, gene expression profiling, as well as next generation sequencing ("NGS") target enrichment and genetic data management and interpretation support software. This business also includes our new acquisition “Multiplicom” a leading European diagnostics company with state-of-the-art genetic testing technology and products. Multiplicom’s solutions enable clinical labs to identify DNA variants associated with genetic disease and help direct cancer therapy. Second, our nucleic acid solutions business provides equipment and expertise focused on production of synthesized oligonucleotides under pharmaceutical good manufacturing practices ("GMP") conditions for use as active pharmaceutical ingredients ("API") in an emerging class of drugs that utilize nucleic acid molecules for disease therapy. Next, our pathology solutions business is focused on product offerings to cancer diagnostics and anatomic pathology workflows. The broad portfolio of offerings includes immunohistochemistry (“IHC”), in situ hybridization (“ISH”), hematoxylin and eosin (“H&E”) staining and special staining. We also collaborate with a number of major pharmaceutical companies to develop new potential pharmacodiagnostics, also known as companion diagnostics, which may be used to identify patients most likely to benefit from a specific targeted therapy. Finally, the reagent partnership business is a provider of reagents used for turbidimetry and flow cytometry. The Agilent CrossLab business spans the entire lab with its extensive consumables and services portfolio, which is designed to improve customer outcomes. The majority of the portfolio is vendor neutral, meaning Agilent can serve and supply customers regardless of their instrument purchase choices. Solutions range from chemistries and supplies to services and software helping to connect the entire lab. Key product categories in consumables include GC and LC columns, sample preparation products, custom chemistries, and a large selection of laboratory instrument supplies. Services include startup, operational, training and compliance support, software as a service, as well as asset management and consultative services that help increase customer productivity. Custom service and consumable bundles are tailored to meet the specific application needs of various industries and to keep instruments fully operational and compliant with the respective industry requirements A significant portion of the segments' expenses arise from shared services and infrastructure that we have historically provided to the segments in order to realize economies of scale and to efficiently use resources. These expenses, collectively called corporate charges, include legal, accounting, real estate, insurance services, information technology services, treasury, other corporate infrastructure expenses and costs of centralized research and development. Charges are allocated to the segments, and the allocations have been determined on a basis that we consider to be a reasonable reflection of the utilization of services provided to or benefits received by the segments. In addition, we do not allocate amortization and impairment of acquisition-related intangible assets, restructuring and transformational expenses, acquisition and integration costs and certain other charges to the operating margin for each segment because management does not include this information in its measurement of the performance of the operating segments. The following tables reflect the results of our reportable segments under our management reporting system. The performance of each segment is measured based on several metrics, including segment income from operations. These results are used, in part, by the chief operating decision maker in evaluating the performance of, and in allocating resources to, each of the segments. The profitability of each of the segments is measured after excluding restructuring and asset impairment charges, investment gains and losses, interest income, interest expense, acquisition and integration costs, non-cash amortization and other items as noted in the reconciliations below. Life Sciences and Applied Markets Diagnostics and Genomics Agilent CrossLab Total Segments (in millions) Year ended October 31, 2017: Total net revenue $ 2,169 $ 772 $ 1,531 $ 4,472 Income from operations $ 487 $ 149 $ 338 $ 974 Depreciation expense $ 35 $ 30 $ 29 $ 94 Share-based compensation expense $ 30 $ 10 $ 21 $ 61 Year ended October 31, 2016: Total net revenue $ 2,073 $ 709 $ 1,420 $ 4,202 Income from operations $ 429 $ 114 $ 316 $ 859 Depreciation expense $ 36 $ 31 $ 28 $ 95 Share-based compensation expense $ 29 $ 10 $ 21 $ 60 Year ended October 31, 2015: Total net revenue $ 2,046 $ 662 $ 1,330 $ 4,038 Income from operations $ 380 $ 88 $ 299 $ 767 Depreciation expense $ 27 $ 37 $ 34 $ 98 Share-based compensation expense $ 27 $ 9 $ 18 $ 54 The following table reconciles reportable segments' income from operations to Agilent's total enterprise income before taxes: Years Ended October 31, 2017 2016 2015 (in millions) Total reportable segments' income from operations $ 974 $ 859 $ 767 Business exit and divestiture costs ( primarily our NMR business) — (11 ) (12 ) Asset Impairments — (4 ) (3 ) Transformational initiatives (12 ) (38 ) (56 ) Amortization of intangible assets related to business combinations (117 ) (152 ) (156 ) Acquisition and integration costs (30 ) (41 ) (13 ) Acceleration of share-based compensation expense related to workforce reduction — — (2 ) Pension curtailment gain — 15 — Pension settlement gain 32 1 — Impairment of loans — (7 ) — Other (6 ) (7 ) (3 ) Interest Income 22 11 7 Interest Expense (79 ) (72 ) (66 ) Other income (expense), net 19 (10 ) 17 Income from continuing operations before taxes, as reported $ 803 $ 544 $ 480 Major Customers. No customer represented 10 percent or more of our total net revenue in 2017 , 2016 or 2015 . The following table presents assets and capital expenditures attributed to each segment. Unallocated assets primarily consist of cash, cash equivalents, accumulated amortization of other intangibles and other assets. Life Sciences and Applied Markets Diagnostics and Genomics Agilent CrossLab Total Segments (in millions) As of October 31, 2017: Assets $ 1,753 $ 2,119 $ 1,138 $ 5,010 Capital expenditures $ 39 $ 111 $ 26 $ 176 As of October 31, 2016: Assets $ 1,687 $ 1,960 $ 1,082 $ 4,729 Capital expenditures $ 53 $ 41 $ 45 $ 139 The following table reconciles segment assets to Agilent's total assets: October 31, 2017 2016 (in millions) Total reportable segments' assets $ 5,010 $ 4,729 Cash, cash equivalents 2,678 2,289 Prepaid expenses 92 92 Investments 138 135 Long-term and other receivables 105 92 Other 403 457 Total assets $ 8,426 $ 7,794 The other category primarily includes deferred tax assets which are not allocated to the segments. The following table represents total revenue by product category: Years Ended October 31, 2017 2016 2015 (in millions) Instrumentation $ 1,946 $ 1,871 $ 1,827 Analytical lab services 991 910 843 Analytical lab consumables 540 510 489 Diagnostics and genomics solutions 772 709 662 Informatics and other 223 202 217 Total $ 4,472 $ 4,202 $ 4,038 The following table presents summarized information for net revenue and long-lived assets by geographic region. Revenues from external customers are generally attributed to countries based upon the customer's location. Long lived assets consist of property, plant, and equipment, long-term receivables and other long-term assets excluding intangible assets. The rest of the world primarily consists of rest of Asia and Europe. United States China (1) Rest of the World Total (in millions) Net revenue: Year ended October 31, 2017 $ 1,314 $ 900 $ 2,258 $ 4,472 Year ended October 31, 2016 $ 1,251 $ 839 $ 2,112 $ 4,202 Year ended October 31, 2015 $ 1,214 $ 693 $ 2,131 $ 4,038 1. China also includes Hong Kong net revenue. Prior periods have been revised to conform with current year presentation. United States Germany Rest of the World Total (in millions) Long-lived assets: October 31, 2017 $ 556 $ 118 $ 358 $ 1,032 October 31, 2016 $ 449 $ 89 $ 266 $ 804 |
Schedule II Valuation and Quali
Schedule II Valuation and Qualifying Accounts | 12 Months Ended |
Oct. 31, 2017 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS Column A Column B Column C Column D Column E Description Balance at Additions Charged to Deductions Credited to Expenses or Other Accounts** Balance at (in millions) 2017 Tax valuation allowance $ 129 $ 14 $ (5 ) $ 138 2016 Tax valuation allowance $ 131 $ 22 $ (24 ) $ 129 2015 Tax valuation allowance $ 134 $ 6 $ (9 ) $ 131 * Additions include current year additions charged to expenses and current year build due to increases in net deferred tax assets, return to provision true-ups, other adjustments and OCI impact to deferred taxes. ** Deductions include current year releases credited to expenses and current year reductions due to decreases in net deferred tax assets, return to provision true-ups, other adjustments and OCI impact to deferred taxes. |
OVERVIEW AND SUMMARY OF SIGNI31
OVERVIEW AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Oct. 31, 2017 | |
Accounting Policies [Abstract] | |
Business description and basis of presentation | Overview. Agilent Technologies Inc. ("we", "Agilent" or the "company"), incorporated in Delaware in May 1999, is a global leader in life sciences, diagnostics and applied chemical markets, providing application focused solutions that includes instruments, software, services and consumables for the entire laboratory workflow. Keysight Separation. On November 1, 2014, we completed the distribution of 100% of the outstanding common shares of Keysight Technologies, Inc. ("Keysight") to Agilent stockholders who received one share of Keysight common stock for every two shares of Agilent held as of the close of business on the record date, October 22, 2014. For fiscal year 2015, discontinued operations includes costs incurred to effect the separation of Keysight and certain costs associated with transition services provided by Agilent to Keysight. No income or expense has been recorded for the Keysight business after separation from Agilent on November 1, 2014. Exit of Nuclear Magnetic Resonance Business. Beginning the fourth quarter of fiscal year 2014, we ceased the manufacture and sale of our nuclear magnetic resonance (“NMR”) product line within our life sciences and applied markets segment. In connection with the exit from this business, we recorded approximately $6 million in restructuring and other related costs in 2015. The exit of the NMR business was completed in fiscal year 2016. Basis of Presentation. The accompanying financial data has been prepared by us pursuant to the rules and regulations of the U.S. Securities and Exchange Commission ("SEC") and is in conformity with U.S. generally accepted accounting principles ("GAAP"). Our fiscal year end is October 31. Unless otherwise stated, all years and dates refer to our fiscal year. |
Principles of consolidation | Principles of Consolidation. The consolidated financial statements include the accounts of the company and our wholly- and majority-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. Reclassification. Certain reclassifications to our prior period consolidated balance sheet have been made to conform with our current reporting. The October 31, 2016 consolidated balance sheet reflects the reclassification of $8 million of intangible assets related to purchased technology and licenses from third parties that were not associated with a business combination from other assets to other intangible assets. |
Reclassification | Reclassification. Certain reclassifications to our prior period consolidated balance sheet have been made to conform with our current reporting. The October 31, 2016 consolidated balance sheet reflects the reclassification of $8 million of intangible assets related to purchased technology and licenses from third parties that were not associated with a business combination from other assets to other intangible assets. |
Use of estimates | Use of Estimates. The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in our consolidated financial statements and accompanying notes. Management bases its estimates on historical experience and various other assumptions believed to be reasonable. Although these estimates are based on management's best knowledge of current events and actions that may impact the company in the future, actual results may be different from the estimates. Our critical accounting policies are those that affect our financial statements materially and involve difficult, subjective or complex judgments by management. Those policies are revenue recognition, valuation of goodwill and purchased intangible assets, inventory valuation, share-based compensation, retirement and post-retirement plan assumptions and accounting for income taxes. |
Retirement of treasury shares | Retirement of Treasury Shares. Upon the formal retirement of treasury shares, we deduct the par value of the retired treasury shares from common stock and allocate the excess of cost over par as a deduction to additional paid-in capital, based on the pro-rata portion of additional paid-in-capital, and the remaining excess as a deduction to retained earnings. All retired treasury shares revert to the status of authorized but unissued shares. |
Revenue recognition | Revenue Recognition. We enter into agreements to sell products (hardware and/or software), services and other arrangements (multiple element arrangements) that include combinations of products and services. We recognize revenue, net of trade discounts and allowances, provided that (1) persuasive evidence of an arrangement exists, (2) delivery has occurred, (3) the price is fixed or determinable and (4) collectability is reasonably assured. Delivery is considered to have occurred when title and risk of loss have transferred to the customer for products, or when the service has been provided. We consider the price to be fixed or determinable when the price is not subject to refund or adjustments. At the time of the transaction, we evaluate the creditworthiness of our customers to determine the appropriate timing of revenue recognition. Provisions for discounts, warranties, returns, extended payment terms, and other adjustments are provided for in the period the related sales are recorded. Product Revenue. Product revenue includes revenue generated from the sales of our analytical instrumentation, software and consumables. Our product revenue is generated predominantly from the sales of various types of analytical instrumentation. Product revenue, including sales to resellers and distributors, is reduced for estimated returns when appropriate. For sales or arrangements that include customer-specified acceptance criteria, including those where acceptance is required upon achievement of performance milestones, revenue is recognized after the acceptance criteria have been met. For products that include installation, if the installation meets the criteria to be considered a separate element, product revenue is recognized upon delivery, and recognition of installation revenue is delayed until the installation is complete. Otherwise, neither the product nor the installation revenue is recognized until the installation is complete. Where software is licensed separately, revenue is recognized when the software is delivered and has been transferred to the customer or, in the case of electronic delivery of software, when the customer is given access to the licensed software programs. We also evaluate whether collection of the receivable is probable, the fee is fixed or determinable and whether any other undelivered elements of the arrangement exist on which a portion of the total fee would be allocated based on vendor-specific objective evidence. Service Revenue. Revenue from services includes extended warranty, customer and software support including, Software as a Service (SaaS), consulting including companion diagnostics and training and education. Service revenue is deferred and recognized over the contractual period or as services are rendered and accepted by the customer. For example, customer support contracts are recognized ratably over the contractual period, while training revenue is recognized as the training is provided to the customer. In addition, the four revenue recognition criteria described above must be met before service revenue is recognized. Revenue Recognition for Arrangements with Multiple Deliverables. Our multiple-element arrangements are generally comprised of a combination of measurement instruments, installation or other start-up services, and/or software and/or support or services. Hardware and software elements are typically delivered at the same time and revenue is recognized upon delivery once title and risk of loss pass to the customer. Delivery of installation, start-up services and other services varies based on the complexity of the equipment, staffing levels in a geographic location and customer preferences, and can range from a few days to a few months. Service revenue is deferred and recognized over the contractual period or as services are rendered and accepted by the customer. Revenue from the sale of software products that are not required to deliver the tangible product's essential functionality are accounted for under software revenue recognition rules which require vendor specific objective evidence (VSOE) of fair value to allocate revenue in a multiple element arrangement. Our arrangements generally do not include any provisions for cancellation, termination, or refunds that would significantly impact recognized revenue. We have evaluated the deliverables in our multiple-element arrangements and concluded that they are separate units of accounting if the delivered item or items have value to the customer on a standalone basis and for an arrangement that includes a general right of return relative to the delivered item(s), delivery or performance of the undelivered item(s) is considered probable and substantially in our control. We allocate revenue to each element in our multiple-element arrangements based upon their relative selling prices. We determine the selling price for each deliverable based on a selling price hierarchy. The selling price for a deliverable is based on VSOE if available, third-party evidence (TPE) if VSOE is not available, or estimated selling price (ESP) if neither VSOE nor TPE is available. Revenue allocated to each element is then recognized when the basic revenue recognition criteria for that element have been met. We use VSOE of selling price in the selling price allocation in all instances where it exists. VSOE of selling price for products and services is determined when a substantial majority of the selling prices fall within a reasonable range when sold separately. TPE of selling price can be established by evaluating largely interchangeable competitor products or services in standalone sales to similarly situated customers. As our products contain a significant element of proprietary technology and the solution offered differs substantially from that of competitors, it is difficult to obtain the reliable standalone competitive pricing necessary to establish TPE. ESP represents the best estimate of the price at which we would transact a sale if the product or service were sold on a standalone basis. We determine ESP for a product or service by using historical selling prices which reflect multiple factors including, but not limited to customer type, geography, market conditions, competitive landscape, gross margin objectives and pricing practices. The determination of ESP is made through consultation with and approval by management. We may modify or develop new pricing practices and strategies in the future. As these pricing strategies evolve changes may occur in ESP. The aforementioned factors may result in a different allocation of revenue to the deliverables in multiple element arrangements, which may change the pattern and timing of revenue recognition for these elements but will not change the total revenue recognized for the arrangement. For sales arrangements that include equipment lease along with other products or services, revenue is allocated to the different elements based on the Revenue Recognition for Multiple Element Arrangements. Each of these contracts is evaluated as a lease arrangement, either as an operating lease or a capital (sales-type) lease using lease classification guidance. Deferred Revenue. Deferred revenue represents the amount that is allocated to undelivered elements in multiple element arrangements. We limit the revenue recognized to the amount that is not contingent on the future delivery of products or services or meeting other specified performance conditions. |
Accounts receivable, net | Accounts Receivable, net. Trade accounts receivable are recorded at the invoiced amount and do not bear interest. Such accounts receivable has been reduced by an allowance for doubtful accounts, which is our best estimate of the amount of probable credit losses in our existing accounts receivable. We determine the allowance based on customer specific experience and the aging of such receivables, among other factors. The allowance for doubtful accounts as of October 31, 2017 and 2016 was not material. We do not have any off-balance-sheet credit exposure related to our customers. Accounts receivable are also recorded net of product returns. |
Shipping and handling costs | Shipping and Handling Costs. Our shipping and handling costs charged to customers are included in net revenue, and the associated expense is recorded in cost of products for all periods presented. |
Inventory | Inventory. Inventory is valued at standard cost, which approximates actual cost computed on a first-in, first-out basis, not in excess of market value. We assess the valuation of our inventory on a periodic basis and make adjustments to the value for estimated excess and obsolete inventory based on estimates about future demand. The excess balance determined by this analysis becomes the basis for our excess inventory charge. Our excess inventory review process includes analysis of sales forecasts, managing product rollovers and working with manufacturing to maximize recovery of excess inventory. |
Goodwill and purchased intangible assets | Goodwill and Purchased Intangible Assets. Under the authoritative guidance we have the option to perform a qualitative assessment to determine whether further impairment testing is necessary. The accounting standard gives an entity the option to first assess qualitative factors to determine whether performing the two-step test is necessary. If an entity believes, as a result of its qualitative assessment, that it is more-likely-than-not (i.e. greater than 50% chance) that the fair value of a reporting unit is less than its carrying amount, the quantitative impairment test will be required. Otherwise, no further testing will be required. The guidance includes examples of events and circumstances that might indicate that a reporting unit's fair value is less than its carrying amount. These include macro-economic conditions such as deterioration in the entity's operating environment or industry or market considerations; entity-specific events such as increasing costs, declining financial performance, or loss of key personnel; or other events such as an expectation that a reporting unit will be sold or a sustained decrease in the stock price on either an absolute basis or relative to peers. If it is determined, as a result of the qualitative assessment, that it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount, the provisions of authoritative guidance require that we perform a two-step impairment test on goodwill. In the first step, we compare the fair value of each reporting unit to its carrying value. The second step (if necessary) measures the amount of impairment by applying fair-value-based tests to the individual assets and liabilities within each reporting unit. As defined in the authoritative guidance, a reporting unit is an operating segment, or one level below an operating segment. We aggregate components of an operating segment that have similar economic characteristics into our reporting units. In fiscal year 2017 , we assessed goodwill impairment for our three reporting units which consisted of three segments: life sciences and applied markets, diagnostics and genomics and Agilent CrossLab. We performed a qualitative test for goodwill impairment of the three reporting units, as of September 30, 2017 . Based on the results of our qualitative testing, we believe that it is more-likely-than-not- that the fair value of these reporting units are greater than their respective carrying values. Each quarter we review the events and circumstances to determine if goodwill impairment is indicated. There was no impairment of goodwill during the years ended October 31, 2017 , 2016 and 2015 . Purchased intangible assets consist primarily of acquired developed technologies, proprietary know-how, trademarks, and customer relationships and are amortized using the best estimate of the asset's useful life that reflect the pattern in which the economic benefits are consumed or used up or a straight-line method ranging from 6 months to 15 years. In-process research and development ("IPR&D") is initially capitalized at fair value as an intangible asset with an indefinite life and assessed for impairment thereafter. When the IPR&D project is complete, it is reclassified as an amortizable purchased intangible asset and is amortized over its estimated useful life. If an IPR&D project is abandoned, Agilent will record a charge for the value of the related intangible asset to Agilent's consolidated statement of operations in the period it is abandoned. Agilent's indefinite-lived intangible assets are IPR&D intangible assets. The accounting guidance allows a qualitative approach for testing indefinite-lived intangible assets for impairment, similar to the issued impairment testing guidance for goodwill and allows the option to first assess qualitative factors (events and circumstances) that could have affected the significant inputs used in determining the fair value of the indefinite-lived intangible asset to determine whether it is more-likely-than-not (i.e. greater than 50% chance) that the indefinite-lived intangible asset is impaired. An organization may choose to bypass the qualitative assessment for any indefinite-lived intangible asset in any period and proceed directly to calculating its fair value. We performed a qualitative test for impairment of indefinite-lived intangible assets as of September 30, 2017 . Based on the results of our qualitative testing, we believe that it is more-likely-than-not that the fair value of these indefinite-lived intangible assets is greater than their respective carrying values. Each quarter we review the events and circumstances to determine if impairment of indefinite-lived intangible asset is indicated. During the year ended October 31, 2017 , there were no impairments of indefinite-lived intangible assets. Based on triggering events in the years ended October 31, 2016 and 2015 , we recorded an impairment of $4 million and $3 million , respectively due to the cancellation of certain IPR&D projects. |
Share-based compensation | Share-Based Compensation. For the years ended 2017 , 2016 and 2015 , we accounted for share-based awards made to our employees and directors including employee stock option awards, restricted stock units, employee stock purchases made under our Employee Stock Purchase Plan ("ESPP") and performance share awards under Agilent Technologies, Inc. Long-Term Performance Program ("LTPP") using the estimated grant date fair value method of accounting. Under the fair value method, we recorded compensation expense, in continuing operations, for all share-based awards of $61 million in 2017 , $60 million in 2016 and $55 million in 2015 . See Note 4, "Share-based Compensation" for additional information. |
Retirement and post-retirement plans | Retirement and Post-Retirement Plans. Substantially all of our employees are covered under various defined benefit and/or defined contribution retirement plans. Additionally, we sponsor post-retirement health care benefits for our eligible U.S. employees. Assumptions used to determine the benefit obligations and the expense for these plans are derived annually. See Note 13, “Retirement plans and post-retirement pension plans” for additional information. |
Taxes on income | Taxes on Income. Income tax expense or benefit is based on income or loss before taxes. Deferred tax assets and liabilities are recognized principally for the expected tax consequences of temporary differences between the tax bases of assets and liabilities and their reported amounts. See Note 5, "Income Taxes" for more information |
Warranty | Warranty. Our standard warranty terms typically extend for one year from the date of delivery. We accrue for standard warranty costs based on historical trends in warranty charges as a percentage of net product revenue. 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 products are sold. See Note 14, "Guarantees". |
Advertising | Advertising. Advertising costs are generally expensed as incurred and amounted to $38 million in 2017 , $30 million in 2016 and $25 million in 2015 . |
Research and development | Research and Development. Costs related to research, design and development of our products are charged to research and development expense as they are incurred. |
Sales taxes | Sales Taxes. Sales taxes collected from customers and remitted to governmental authorities are not included in our revenue. |
Net income (loss) per share | Net Income Per Share. Basic net income per share is computed by dividing net income - the numerator - by the weighted average number of common shares outstanding - the denominator - during the period excluding the dilutive effect of stock options and other employee stock plans. Diluted net income per share gives effect to all potential common shares outstanding during the period unless the effect is anti-dilutive. The dilutive effect of share-based awards is reflected in diluted net income per share by application of the treasury stock method, which includes consideration of unamortized share-based compensation expense and the dilutive effect of in-the-money options and non-vested restricted stock units. Under the treasury stock method, the amount the employee must pay for exercising stock options and unamortized share-based compensation expense are assumed proceeds to be used to repurchase hypothetical shares. See Note 6, "Net Income Per Share". |
Cash, cash equivalents and short term investments | Cash, Cash Equivalents and Short Term Investments. We classify investments as cash equivalents if their original or remaining maturity is three months or less at the date of purchase. Cash equivalents are stated at cost, which approximates fair value. As of October 31, 2017 , approximately $2,600 million of our cash and cash equivalents is held outside of the U.S. by our foreign subsidiaries. Under current tax laws, the cash could be repatriated to the U.S. but most of it would be subject to U.S. federal and state income taxes, less applicable tax credits. Our cash and cash equivalents mainly consist of short term deposits held at major global financial institutions, institutional money market funds, and similar short duration instruments with original maturities of 90 days or less. We continuously monitor the creditworthiness of the financial institutions and institutional money market funds in which we invest our funds. We classify investments as short-term investments if their original maturities are greater than three months and their remaining maturities are one year or less. Currently, we have no short-term investments. |
Variable interest entity | Variable Interest Entities. We make a determination upon entering into an arrangement whether an entity in which we have made an investment is considered a Variable Interest Entity (“VIE”). The company evaluates its investments in privately held companies on an ongoing basis. We have determined that as of October 31, 2017 and 2016, there were no VIE’s required to be consolidated in the company’s consolidated financial statements because we do not have a controlling financial interest in any of the VIE’s that we have invested in nor are we the primary beneficiary. We account for these investments under either the equity or cost method, depending on the circumstances. We periodically reassess whether we are the primary beneficiary of a VIE. The reassessment process considers whether we have acquired the power to direct the most significant activities of the VIE through changes in governing documents or other circumstances. We also reconsider whether entities previously determined not to be VIEs have become VIEs, based on changes in facts and circumstances including changes in contractual arrangements and capital structure. During 2016, we wrote down an equity method investment to its fair value of zero , resulting in an impairment charge of $18 million . In addition, we recorded an impairment of $7 million of uncollectible loans related to this equity method investment. During the year ended October 31, 2016, Agilent made a preferred stock investment in Lasergen for $80 million . Agilent’s initial ownership stake was 48 percent and we have also joined the board of Lasergen and signed a collaboration agreement. We have the option to acquire all of the remaining shares of Lasergen until March 2, 2018, for additional consideration of $105 million . Lasergen is a VIE, however, we do not consolidate the entity in our financial statements because we do not have the power to direct the activities of the VIE that most significantly impact the VIE's economic performance. Because of the nature of the preferred stock of Lasergen that we own, we account for this investment under the cost method. As of October 31, 2017 and 2016, the carrying value of our investments in VIE’s was $80 million with a maximum exposure of $80 million . The maximum exposure is equal to the carrying value because we do not have future funding commitments. The investment is included on the long term investments line of the consolidated balance sheet. |
Fair value of financial instruments | Fair Value of Financial Instruments. The carrying values of certain of our financial instruments including cash and cash equivalents, accounts receivable, accounts payable, accrued compensation and other accrued liabilities approximate fair value because of their short maturities. The fair value of long-term equity investments is determined using quoted market prices for those securities when available. For those long-term equity investments accounted for under the cost or equity method, their carrying value approximates their estimated fair value. Equity method investments are reported at the amount of the company’s initial investment and adjusted each period for the company’s share of the investee’s income or loss and dividend paid. There are no equity method investments as of October 31, 2017 . The fair value of our senior notes, calculated from quoted prices which are primarily Level 1 inputs under the accounting guidance fair value hierarchy, exceeds the carrying value by approximately $58 million and $104 million as of October 31, 2017 and 2016 , respectively. The change in the excess of fair value over carrying value in the year ended October 31, 2017 is primarily due to fluctuations in market interest rates. The carrying value as of October 31, 2016 reflects the new accounting guidance related to the presentation of debt issuance costs which we adopted on November 1, 2016. The fair value of foreign currency contracts used for hedging purposes is estimated internally by using inputs tied to active markets. These inputs, for example, interest rate yield curves, foreign exchange rates, and forward and spot prices for currencies are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. See also Note 11, "Fair Value Measurements" for additional information on the fair value of financial instruments. |
Investments | Investments. Cost method investments consisting of non-marketable equity securities and are accounted for at historical cost. Trading securities are reported at fair value, with gains or losses resulting from changes in fair value recognized currently in earnings. Equity method investments are reported at the amount of the company’s initial investment and adjusted each period for the company’s share of the investee’s income or loss and dividend paid. The company assesses investments for impairment whenever events or changes in circumstances indicate that the carrying value of an investment may not be recoverable. |
Concentration of credit risk | Concentration of Credit Risk. Financial instruments that potentially subject Agilent to significant concentration of credit risk include money market fund investments, time deposits and demand deposit balances. These investments are categorized as cash and cash equivalents. In addition, Agilent has credit risk from derivative financial instruments used in hedging activities and accounts receivable. We invest in a variety of financial instruments and limit the amount of credit exposure with any one financial institution. We have a comprehensive credit policy in place and credit exposure is monitored on an ongoing basis. Credit risk with respect to our accounts receivable is diversified due to the large number of entities comprising our customer base and their dispersion across many different industries and geographies. Credit evaluations are performed on customers requiring credit over a certain amount and we sell the majority of our products through our direct sales force. Credit risk is mitigated through collateral such as letter of credit, bank guarantees or payment terms like cash in advance. No single customer accounted for more than 10 percent of combined accounts receivable as of October 31, 2017 , or 2016 . |
Derivative instruments | Derivative Instruments. Agilent is exposed to global foreign currency exchange rate and interest rate risks in the normal course of business. We enter into foreign exchange hedging contracts, primarily forward contracts and purchased options and, in the past, interest rate swaps to manage financial exposures resulting from changes in foreign currency exchange rates and interest rates. In the vast majority of cases, these contracts are designated at inception as hedges of the related foreign currency or interest exposures. Foreign currency exposures include committed and anticipated revenue and expense transactions and assets and liabilities that are denominated in currencies other than the functional currency of the subsidiary. Interest rate exposures are associated with the company's fixed-rate debt. For option contracts, we exclude time value from the measurement of effectiveness. To qualify for hedge accounting, contracts must reduce the foreign currency exchange rate and interest rate risk otherwise inherent in the amount and duration of the hedged exposures and comply with established risk management policies; foreign exchange hedging contracts generally mature within twelve months and interest rate swaps, if any, mature at the same time as the maturity of the debt. In order to manage foreign currency exposures in a few limited jurisdictions we may enter into foreign exchange contracts that do not qualify for hedge accounting. In such circumstances, the local foreign currency exposure is offset by contracts owned by the parent company. We do not use derivative financial instruments for speculative trading purposes. All derivatives are recognized on the balance sheet at their fair values. For derivative instruments that are designated and qualify as a fair value hedge, changes in value of the derivative are recognized in the consolidated statement of operations in the current period, along with the offsetting gain or loss on the hedged item attributable to the hedged risk. For derivative instruments that are designated and qualify as a cash flow hedges, changes in the value of the effective portion of the derivative instrument is recognized in comprehensive income (loss), a component of stockholders' equity. Amounts associated with cash flow hedges are reclassified and recognized in income when either the forecasted transaction occurs or it becomes probable the forecasted transaction will not occur. Derivatives not designated as hedging instruments are recorded on the balance sheet at their fair value and changes in the fair values are recorded in the income statement in the current period. Derivative instruments are subject to master netting arrangements and are disclosed gross in the balance sheet. Changes in the fair value of the ineffective portion of derivative instruments are recognized in earnings in the current period. Ineffectiveness in 2017 , 2016 and 2015 was not material. Cash flows from derivative instruments are classified in the statement of cash flows in the same category as the cash flows from the hedged or economically hedged item, primarily in operating activities. |
Property, plant and equipment | Property, Plant and Equipment. Property, plant and equipment are stated at cost less accumulated depreciation. Additions, improvements and major renewals are capitalized; maintenance, repairs and minor renewals are expensed as incurred. When assets are retired or disposed of, the assets and related accumulated depreciation and amortization are removed from our general ledger, and the resulting gain or loss is reflected in the consolidated statement of operations. Buildings and improvements are depreciated over the lesser of their useful lives or the remaining term of the lease and machinery and equipment over three to ten years. We use the straight-line method to depreciate assets. |
Leases | Leases. We lease buildings, machinery and equipment under operating leases for original terms ranging generally from one year to twenty years. Certain leases contain renewal options for periods up to six years. In addition, we lease equipment to customers in connection with our diagnostics business using both capital and operating leases. As of October 31, 2017 and 2016 our diagnostics and genomics segment has approximately $27 million and $15 million , respectively, of lease receivables related to capital leases and approximately $22 million and $23 million , respectively, of net assets for operating leases. We depreciate the assets related to the operating leases over their estimated useful lives, typically five years. |
Capitalized software | Capitalized Software. We capitalize certain internal and external costs incurred to acquire or create internal use software. Capitalized software is included in property, plant and equipment and is depreciated over three to five years once development is complete. |
Impairment of long-lived assets | Impairment of Long-Lived Assets. We continually monitor events and changes in circumstances that could indicate carrying amounts of long-lived assets, including intangible assets, may not be recoverable. When such events or changes in circumstances occur, we assess the recoverability of long-lived assets by determining whether the carrying value of such assets will be recovered through undiscounted expected future cash flows. If the total of the undiscounted future cash flows is less than the carrying amount of those assets, we recognize an impairment loss based on the excess of the carrying amount over the fair value of the assets. |
Employee compensation and benefits | Employee Compensation and Benefits. Amounts owed to employees, such as accrued salary, bonuses and vacation benefits are accounted for within employee compensation and benefits. The total amount of accrued vacation benefit was $101 million and $92 million as of October 31, 2017 , and 2016 , respectively. |
Foreign currency translation | Foreign Currency Translation. We translate and remeasure balance sheet and income statement items into U.S. dollars. For those subsidiaries that operate in a local currency functional environment, all assets and liabilities are translated into U.S. dollars using current exchange rates at the balance sheet date; revenue and expenses are translated using monthly exchange rates which approximate to average exchange rates in effect during each period. Resulting translation adjustments are reported as a separate component of accumulated other comprehensive income (loss) in stockholders' equity. For those subsidiaries that operate in a U.S. dollar functional environment, foreign currency assets and liabilities are remeasured into U.S. dollars at current exchange rates except for non-monetary assets and capital accounts which are remeasured at historical exchange rates. Revenue and expenses are generally remeasured at monthly exchange rates which approximate average exchange rates in effect during each period. Gains or losses from foreign currency remeasurement are included in consolidated net income. Net gains or losses resulting from foreign currency transactions, including hedging gains and losses, are reported in other income (expense), net and was $2 million loss for fiscal year 2017 , $5 million loss for 2016 and $9 million loss for 2015 , respectively. |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 12 Months Ended |
Oct. 31, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of income (loss) from discontinued operations | The following table summarizes results from discontinued operations of Keysight included in the consolidated statement of operations: Year Ended October 31, 2015 (in millions) Net revenue $ — Costs and expenses 39 Operating loss (39 ) Other income (expense), net — Loss from discontinued operations before tax (39 ) Benefit for income taxes (2 ) Net loss from discontinued operations $ (37 ) |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Oct. 31, 2017 | |
Share-based Compensation [Abstract] | |
Allocated Share-based compensation expense disclosure | The impact on our results for share-based compensation was as follows: Years Ended October 31, 2017 2016 2015 (in millions) Cost of products and services $ 15 $ 14 $ 11 Research and development 6 6 5 Selling, general and administrative 40 40 39 Total share-based compensation expense $ 61 $ 60 $ 55 |
Share-based compensation arrangement by share-based payment award fair value assumptions and methodology schedule | The following assumptions were used to estimate the fair value of employee stock options and LTPP grants. Years Ended October 31, 2017 2016 2015 Stock Option Plans: Weighted average risk-free interest rate — — 1.75% Dividend yield — — 1% Weighted average volatility — — 28% Expected life — — 5.5 years LTPP: Volatility of Agilent shares 23% 24% 25% Volatility of selected peer-company shares 15%-63% 14%-50% 12%-57% Price-wise correlation with selected peers 36% 35% 37% Post-vest restriction discount for all executive awards 5.3% 5.5% — |
Summary of stock option award activity | The following table summarizes employee stock option award activity of our employees and directors for 2017 . Options Outstanding Weighted Average Exercise Price (in thousands) Outstanding at October 31, 2016 4,106 $ 33 Granted — $ — Exercised (1,343 ) $ 30 Cancelled/Forfeited/Expired (2 ) $ 41 Outstanding at October 31, 2017 2,761 $ 34 Forfeited and expired options from total cancellations in 2017 were as follows: Options Cancelled Weighted Average Exercise Price (in thousands) Forfeited 2 $ 41 Expired — $ — Total options cancelled during 2017 2 $ 41 |
Schedule of share-based compensation, shares authorized under stock option plans, by exercise price range | The options outstanding and exercisable for equity share-based payment awards at October 31, 2017 were as follows: Options Outstanding Options Exercisable Range of Exercise Prices Number Outstanding Weighted Average Remaining Contractual Life Weighted Average Exercise Price Aggregate Intrinsic Value Number Exercisable Weighted Average Remaining Contractual Life Weighted Average Exercise Price Aggregate Intrinsic Value (in thousands) (in years) (in thousands) (in thousands) (in years) (in thousands) $0 - 25 170 1.6 $ 18 $ 8,561 170 1.6 $ 18 $ 8,561 $25.01 - 30 957 4.3 $ 26 39,804 957 4.3 $ 26 39,804 $30.01 - 40 528 6.1 $ 39 15,258 296 6.1 $ 39 8,566 $40.01 - over 1,106 7.0 $ 41 30,035 493 7.0 $ 41 13,396 2,761 5.6 $ 34 $ 93,658 1,916 5.0 $ 31 $ 70,327 |
Schedule of intrinsic value of options exercised and the fair value of options granted | The following table summarizes the aggregate intrinsic value of options exercised in 2017 , 2016 and 2015 and the fair value of options granted in 2015 : Aggregate Intrinsic Value Weighted Average Exercise Price Per Share Value Using Black-Scholes Model (in thousands) Options exercised in fiscal 2015 $ 33,258 $ 24 Black-Scholes per share value of options granted during fiscal 2015 $ 11 Options exercised in fiscal 2016 $ 26,913 $ 25 Options exercised in fiscal 2017 $ 36,175 $ 30 |
Non-vested award activity disclosure | The following table summarizes non-vested award activity in 2017 primarily for our LTPP and restricted stock unit awards. Shares Weighted Average Grant Price (in thousands) Non-vested at October 31, 2016 3,062 $ 40 Granted 1,405 $ 47 Vested (1,068 ) $ 39 Forfeited (84 ) $ 42 Change in LTPP shares in the year due to not meeting performance conditions (13 ) $ — Non-vested at October 31, 2017 3,302 $ 43 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Oct. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income before income taxes domestic and foreign | The domestic and foreign components of income from continuing operations before taxes are: Years Ended October 31, 2017 2016 2015 (in millions) U.S. operations $ 116 $ 27 $ 77 Non-U.S. operations 687 517 403 Total income from continuing operations before taxes $ 803 $ 544 $ 480 |
Provision for income taxes from operations | The provision for income taxes is comprised of: Years Ended October 31, 2017 2016 2015 (in millions) U.S. federal taxes: Current $ 15 $ (1 ) $ (91 ) Deferred 110 19 97 Non-U.S. taxes: Current 1 77 62 Deferred (7 ) (14 ) (27 ) State taxes, net of federal benefit: Current 1 3 1 Deferred (1 ) (2 ) — Total provision $ 119 $ 82 $ 42 |
Significant components of deferred tax assets and deferred tax liabilities | The significant components of deferred tax assets and deferred tax liabilities included on the consolidated balance sheet are: October 31, 2017 2016 Deferred Tax Assets Deferred Tax Liabilities Deferred Tax Assets Deferred Tax Liabilities (in millions) Inventory $ 16 $ — $ 13 $ — Intangibles — 93 — 92 Property, plant and equipment 12 — 16 — Warranty reserves 12 — 14 — Pension benefits and retiree medical benefits 70 — 136 — Employee benefits, other than retirement 28 — 28 — Net operating loss, capital loss, and credit carryforwards 328 — 293 — Unremitted earnings of foreign subsidiaries — 163 — 53 Share-based compensation 45 — 41 — Deferred revenue 45 — 42 — Other 1 — 12 — Subtotal 557 256 595 145 Tax valuation allowance (138 ) — (129 ) — Total deferred tax assets or deferred tax liabilities $ 419 $ 256 $ 466 $ 145 |
Current and long-term deferred tax assets and deferred tax liabilities | The breakdown between long-term deferred tax assets and deferred tax liabilities was as follows for the years 2017 and 2016 : October 31, 2017 2016 (in millions) Long-term deferred tax assets (included within other assets) $ 240 $ 386 Long-term deferred tax liabilities (included within other long-term liabilities) (77 ) (65 ) Total $ 163 $ 321 |
Tax rate reconciliation, U.S. federal statutory rate to effective tax rate from operations | The differences between the U.S. federal statutory income tax rate and our effective tax rate are: Years Ended October 31, 2017 2016 2015 (in millions) Profit before tax times statutory rate $ 281 $ 190 $ 167 State income taxes, net of federal benefit 2 2 (8 ) Non-U.S. income taxed at different rates (43 ) (68 ) (72 ) Change in unrecognized tax benefits (110 ) (27 ) (116 ) Repatriation of foreign earnings — — 68 Valuation allowances 1 18 (2 ) Adjustments to earnings of foreign subsidiaries — (11 ) — Other, net (12 ) (22 ) 5 Provision for income taxes $ 119 $ 82 $ 42 Effective tax rate 14.8 % 15.1 % 8.7 % |
Current and Long Term Tax Assets and Liabilities [Table Text Block] | The breakdown between current and long-term income tax assets and liabilities, excluding deferred tax assets and liabilities, was as follows for the years 2017 and 2016 : October 31, 2017 2016 (in millions) Current income tax assets (included within other current assets) $ 77 $ 83 Long-term income tax assets (included within other assets) 18 19 Current income tax liabilities (included within other accrued liabilities) (55 ) (49 ) Long-term income tax liabilities (included within other long-term liabilities) (131 ) (190 ) Total $ (91 ) $ (137 ) |
Income tax contingencies rollforward | The aggregate changes in the balances of our unrecognized tax benefits including all federal, state and foreign tax jurisdictions are as follows: 2017 2016 2015 (in millions) Balance, beginning of year $ 293 $ 289 $ 417 Additions for tax positions related to the current year 32 31 33 Additions for tax positions from prior years 1 1 3 Reductions for tax positions from prior years (3 ) (27 ) (156 ) Settlements with taxing authorities (52 ) — (4 ) Statute of limitations expirations (47 ) (1 ) (4 ) Balance, end of year $ 224 $ 293 $ 289 |
NET INCOME (LOSS) PER SHARE (Ta
NET INCOME (LOSS) PER SHARE (Tables) | 12 Months Ended |
Oct. 31, 2017 | |
Earnings Per Share [Abstract] | |
Reconciliation of the numerators and denominators of the basic and diluted net income per share | The following is a reconciliation of the numerators and denominators of the basic and diluted net income per share computations for the periods presented below. Years Ended October 31, 2017 2016 2015 (in millions) Numerator: Income from continuing operations $ 684 $ 462 $ 438 Loss from discontinued operations $ — $ — $ (37 ) Net income 684 462 401 Denominators: Basic weighted average shares 322 326 333 Potential common shares — stock options and other employee stock plans 4 3 2 Diluted weighted average shares 326 329 335 |
INVENTORY (Tables)
INVENTORY (Tables) | 12 Months Ended |
Oct. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Inventory | October 31, 2017 2016 (in millions) Finished goods $ 363 $ 339 Purchased parts and fabricated assemblies 212 194 Inventory $ 575 $ 533 |
PROPERTY, PLANT AND EQUIPMENT37
PROPERTY, PLANT AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Oct. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | October 31, 2017 2016 (in millions) Land $ 56 $ 53 Buildings and leasehold improvements 886 757 Machinery and equipment 470 420 Software 188 176 Total property, plant and equipment 1,600 1,406 Accumulated depreciation and amortization (843 ) (767 ) Property, plant and equipment, net $ 757 $ 639 |
GOODWILL AND OTHER INTANGIBLE38
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Oct. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill balances and movements for each reportable segments during the period | The goodwill balances at October 31, 2017 , 2016 and 2015 and the movements in 2017 and 2016 for each of our reportable segments are shown in the table below: Life Sciences and Applied Markets Diagnostics and Genomics Agilent CrossLab Total (in millions) Goodwill as of October 31, 2015 $ 650 $ 1,234 $ 482 $ 2,366 Foreign currency translation impact 3 (11 ) 3 (5 ) Goodwill arising from acquisitions 137 — 19 156 Goodwill as of October 31, 2016 $ 790 $ 1,223 $ 504 $ 2,517 Foreign currency translation impact 2 10 — 12 Goodwill arising from acquisitions 26 52 — 78 Goodwill as of October 31, 2017 $ 818 $ 1,285 $ 504 $ 2,607 |
Components of other intangibles during the period | The component parts of other intangible assets at October 31, 2017 and 2016 are shown in the table below: Other Intangible Assets (1) Gross Carrying Amount Accumulated Amortization and Impairments Net Book Value (in millions) As of October 31, 2016: Purchased technology $ 823 $ 572 $ 251 Backlog 1 1 — Trademark/Tradename 149 61 88 Customer relationships 263 211 52 Total amortizable intangible assets $ 1,236 $ 845 $ 391 In-Process R&D 17 — 17 Total $ 1,253 $ 845 $ 408 As of October 31, 2017: Purchased technology $ 855 $ 646 $ 209 Trademark/Tradename 149 73 76 Customer relationships 151 112 39 Total amortizable intangible assets $ 1,155 $ 831 $ 324 In-Process R&D 24 — 24 Total $ 1,179 $ 831 $ 348 |
Future Amortization expense for the next five years and thereafter | Future amortization expense related to existing finite-lived purchased intangible assets associated with business combinations for the next five fiscal years and thereafter is estimated below: Estimated future amortization expense: (in millions) 2018 $ 94 2019 $ 69 2020 $ 57 2021 $ 43 2022 $ 32 Thereafter $ 42 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 12 Months Ended |
Oct. 31, 2017 | |
Schedule of Investments [Abstract] | |
Equity Investments | The following table summarizes the company's equity investments as of October 31, 2017 and 2016 (net book value): October 31, 2017 2016 (in millions) Long-Term Cost method investments $ 106 $ 104 Trading securities 32 31 Total $ 138 $ 135 |
Realized gains and losses on sale of available-for-sale securities and other than temporary impairments Included in Other income (expense) | Amounts included in other income (expense), net for the appropriate share of loss on equity method investments and other than temporary impairments were as follows: Years Ended October 31, 2017 2016 2015 (in millions) Equity method investments - share of losses $ — $ (10 ) $ (9 ) Equity method investments - other than temporary impairments — (18 ) — Total $ — $ (28 ) $ (9 ) |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Oct. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Assets And Liabilities Measured On Recurring Basis | Financial assets and liabilities measured at fair value on a recurring basis as of October 31, 2017 were as follows: Fair Value Measurement at October 31, Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (in millions) Assets: Short-term Cash equivalents (money market funds) $ 1,659 $ 1,659 $ — $ — Derivative instruments (foreign exchange contracts) 4 — 4 — Long-term Trading securities 32 32 — — Total assets measured at fair value $ 1,695 $ 1,691 $ 4 $ — Liabilities: Short-term Derivative instruments (foreign exchange contracts) $ 6 $ — $ 6 $ — Long-term Deferred compensation liability 32 — 32 — Total liabilities measured at fair value $ 38 $ — $ 38 $ — Financial assets and liabilities measured at fair value on a recurring basis as of October 31, 2016 were as follows: Fair Value Measurement at October 31, Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (in millions) Assets: Short-term Cash equivalents (money market funds) $ 1,482 $ 1,482 $ — $ — Derivative instruments (foreign exchange contracts) 9 — 9 — Long-term Trading securities 31 31 — — Total assets measured at fair value $ 1,522 $ 1,513 $ 9 $ — Liabilities: Short-term Derivative instruments (foreign exchange contracts) $ 8 $ — $ 8 $ — Long-term Deferred compensation liability 31 — 31 — Total liabilities measured at fair value $ 39 $ — $ 39 $ — |
Impairment of Long-lived assets included in net income | For assets measured at fair value on a non-recurring basis, the following table summarizes the impairments included in net income for the years ended October 31, 2017 , 2016 and 2015 : Years Ended October 31, 2017 2016 2015 (in millions) Long-lived assets held and used $ — $ 4 $ 3 Long-lived assets held for sale $ — $ — $ — |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 12 Months Ended |
Oct. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Aggregated notional amounts by currency and designation | The aggregated notional amounts by currency and designation as of October 31, 2017 were as follows: Derivatives Designated as Derivatives Not Designated as Hedging Instruments Forward Forward Currency Buy/(Sell) Buy/(Sell) (in millions) Euro $ (73 ) $ 85 British Pound (42 ) 12 Canadian Dollar (28 ) 4 Australian Dollars 4 16 Malaysian Ringgit — (3 ) Japanese Yen (55 ) 5 Danish Krone — 17 Korean Won (38 ) — Singapore Dollar 11 — Swiss Franc — 34 Other — (20 ) $ (221 ) $ 150 |
Gross fair values and balance sheet location of derivative instruments held in the consolidated balance sheet | The gross fair values and balance sheet location of derivative instruments held in the consolidated balance sheet as of October 31, 2017 and 2016 were as follows: Fair Values of Derivative Instruments Asset Derivatives Liability Derivatives Fair Value Fair Value Balance Sheet Location October 31, October 31, Balance Sheet Location October 31, October 31, (in millions) Derivatives designated as hedging instruments: Cash flow hedges Foreign exchange contracts Other current assets $ 2 $ 5 Other accrued liabilities $ 2 $ 3 $ 2 $ 5 $ 2 $ 3 Derivatives not designated as hedging instruments: Foreign exchange contracts Other current assets $ 2 $ 4 Other accrued liabilities $ 4 $ 5 Total derivatives $ 4 $ 9 $ 6 $ 8 |
Effect of derivative instruments for foreign exchange contracts in the consolidated statement of operations | The effect of derivative instruments for foreign exchange contracts designated as hedging instruments and not designated as hedging instruments in our consolidated statement of operations were as follows: 2017 2016 2015 (in millions) Derivatives designated as hedging instruments: Cash Flow Hedges Loss on interest rate swaps recognized in other comprehensive income (loss) $ — $ (9 ) $ — Gain (loss) recognized in accumulated other comprehensive income (loss) $ — $ (1 ) $ 11 Gain (loss) reclassified from accumulated other comprehensive income (loss) into cost of sales $ 1 $ (3 ) $ 18 Derivatives not designated as hedging instruments: Gain (loss) recognized in other income (expense), net within continuing operations $ 5 $ 1 $ (21 ) |
RETIREMENT PLANS AND POST RET42
RETIREMENT PLANS AND POST RETIREMENT PENSION PLANS (Tables) | 12 Months Ended |
Oct. 31, 2017 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |
Schedule of net pension and post-retirement benefit costs | For the years ended October 31, 2017 , 2016 and 2015 , components of net periodic benefit cost and other amounts recognized in other comprehensive income were comprised of: Pensions U.S. Post-Retirement Benefit Plans U.S. Plans Non-U.S. Plans 2017 2016 2015 2017 2016 2015 2017 2016 2015 (in millions) Net periodic benefit cost (benefit) Service cost — benefits earned during the period $ — $ 12 $ 25 $ 19 $ 19 $ 18 $ 1 $ 1 $ 2 Interest cost on benefit obligation 15 16 14 12 16 23 3 4 4 Expected return on plan assets (25 ) (25 ) (27 ) (41 ) (44 ) (42 ) (7 ) (7 ) (8 ) Amortization of net actuarial loss 3 3 3 36 27 25 11 10 6 Amortization of prior service benefit — (3 ) (5 ) — — — (9 ) (10 ) (12 ) Total periodic benefit cost (benefit) $ (7 ) $ 3 $ 10 $ 26 $ 18 $ 24 $ (1 ) $ (2 ) $ (8 ) Curtailments and settlements $ — $ (16 ) $ — $ (32 ) $ — $ — $ — $ — $ — Other changes in plan assets and benefit obligations recognized in other comprehensive (income) loss Net actuarial (gain) loss $ (19 ) $ 22 $ 44 $ (128 ) $ 149 $ 32 $ (9 ) $ 3 $ 16 Amortization of net actuarial loss (3 ) (3 ) (3 ) (36 ) (27 ) (25 ) (11 ) (10 ) (6 ) Prior service cost (benefit) — 15 — — — — 9 (7 ) — Amortization of prior service benefit — 3 5 — — — — 10 12 Gain due to settlement — — — 32 — — — — — Foreign currency — — — 2 (3 ) 10 — — — Total recognized in other comprehensive (income) loss $ (22 ) $ 37 $ 46 $ (130 ) $ 119 $ 17 $ (11 ) $ (4 ) $ 22 Total recognized in net periodic benefit cost (benefit) and other comprehensive (income) loss $ (29 ) $ 24 $ 56 $ (136 ) $ 137 $ 41 $ (12 ) $ (6 ) $ 14 |
Change in fair value of plan assets | Funded status. As of October 31, 2017 and 2016 , the funded status of the defined benefit and post-retirement benefit plans was: U.S. Defined Benefit Plans Non-U.S. Defined Benefit Plans U.S. Post-Retirement Benefit Plans 2017 2016 2017 2016 2017 2016 (in millions) Change in fair value of plan assets: Fair value — beginning of year $ 341 $ 347 $ 774 $ 778 $ 88 $ 91 Actual return on plan assets 66 13 81 25 14 3 Employer contributions 25 — 21 24 — — Participants' contributions — — — 1 — — Benefits paid (18 ) (19 ) (23 ) (27 ) (7 ) (6 ) Settlements — — (26 ) — — — Currency impact — — 28 (27 ) — — Fair value — end of year $ 414 $ 341 $ 855 $ 774 $ 95 $ 88 |
Change in benefit obligation | U.S. Defined Benefit Plans Non-U.S. Defined Benefit Plans U.S. Post-Retirement Benefit Plans 2017 2016 2017 2016 2017 2016 (in millions) Change in benefit obligation: Benefit obligation — beginning of year $ 434 $ 415 $ 1,002 $ 900 $ 103 $ 112 Service cost — 12 19 19 1 1 Interest cost 15 16 12 16 3 4 Participants' contributions — — — 1 — — Plan amendment — — (1 ) — — (7 ) Actuarial (gain) loss 15 41 (43 ) 130 (3 ) (1 ) Benefits paid (19 ) (20 ) (22 ) (27 ) (7 ) (6 ) Curtailments — (30 ) — — — — Settlements — — (70 ) — — — Currency impact — — 38 (37 ) — — Benefit obligation — end of year $ 445 $ 434 $ 935 $ 1,002 $ 97 $ 103 Overfunded (underfunded) status of PBO $ (31 ) $ (93 ) $ (80 ) $ (228 ) $ (2 ) $ (15 ) |
Amounts recognized in the consolidated balance sheet | U.S. Defined Benefit Plans Non-U.S. Defined Benefit Plans U.S. Post-Retirement Benefit Plans 2017 2016 2017 2016 2017 2016 (in millions) Amounts recognized in the consolidated balance sheet consist of: Other assets $ — $ — $ 86 $ 1 $ — $ — Employee compensation and benefits (1 ) (1 ) — — — — Retirement and post-retirement benefits (30 ) (92 ) (166 ) (229 ) (2 ) (15 ) Total net asset (liability) $ (31 ) $ (93 ) $ (80 ) $ (228 ) $ (2 ) $ (15 ) |
Amounts recognized in accumulated other comprehensive income (loss) | U.S. Defined Benefit Plans Non-U.S. Defined Benefit Plans U.S. Post-Retirement Benefit Plans 2017 2016 2017 2016 2017 2016 Amounts Recognized in Accumulated Other Comprehensive Income (loss): Actuarial (gains) losses $ 65 $ 93 $ 243 $ 375 $ 20 $ 41 Prior service costs (benefits) — — (1 ) — (28 ) (37 ) Total $ 65 $ 93 $ 242 $ 375 $ (8 ) $ 4 |
Amounts in accumulated other comprehensive income expected to be recognized as components of net expense during the next fiscal year | The amounts in accumulated other comprehensive income expected to be recognized by Agilent as components of net expense during 2018 are as follows: U.S. Defined Benefit Plans Non-U.S. Defined Benefit Plans U.S. Post-Retirement Benefit Plans (in millions) Amortization of net prior service cost (benefit) $ — $ — $ (8 ) Amortization of actuarial net loss (gain) $ 1 $ 29 $ 8 |
Defined benefit plan assets by fair value hierarchy | The following tables present the fair value of U.S. Defined Benefit Plans assets classified under the appropriate level of the fair value hierarchy as of October 31, 2017 and 2016 . Fair Value Measurement October 31, Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Not Subject to Leveling (1) (in millions) Cash and Cash Equivalents $ 4 $ 1 $ — $ — $ 3 Equity 327 88 — — 239 Fixed Income 76 38 — — 38 Other Investments 7 — — 7 — Total assets measured at fair value $ 414 $ 127 $ — $ 7 $ 280 (1) Investments measured at the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. Fair Value Measurement October 31, Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Not Subject to Leveling (1) (in millions) Cash and Cash Equivalents $ 4 $ — $ — $ — $ 4 Equity 248 62 — — 186 Fixed Income 80 42 — — 38 Other Investments 9 — — 9 — Total assets measured at fair value $ 341 $ 104 $ — $ 9 $ 228 (1) Investments measured at the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The following tables present the fair value of U.S. Post-Retirement Benefit Plans assets classified under the appropriate level of the fair value hierarchy as of October 31, 2017 and 2016 . . Fair Value Measurement at October 31, Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Not Subject to Leveling (1) (in millions) Cash and Cash Equivalents $ 6 $ 5 $ — $ — $ 1 Equity 68 18 — — 50 Fixed Income 17 9 — — 8 Other Investments 4 — — 4 — Total assets measured at fair value $ 95 $ 32 $ — $ 4 $ 59 (1) Investments measured at the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. Fair Value Measurement October 31, Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Not Subject to Leveling (1) (in millions) Cash and Cash Equivalents $ 3 $ 2 $ — $ — $ 1 Equity 59 15 — — 44 Fixed Income 21 11 — — 10 Other Investments 5 — — 5 — Total assets measured at fair value $ 88 $ 28 $ — $ 5 $ 55 (1) Investments measured at the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The following tables present the fair value of non-U.S. Defined Benefit Plans assets classified under the appropriate level of the fair value hierarchy as of October 31, 2017 and 2016 : Fair Value Measurement October 31, Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Not Subject to Leveling (1) (in millions) Cash and Cash Equivalents $ 8 $ — $ 8 $ — $ — Equity 539 326 28 — 185 Fixed Income 307 60 229 — 18 Other Investments 1 — 1 — — Total assets measured at fair value $ 855 $ 386 $ 266 $ — $ 203 (1) Investments measured at the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. Fair Value Measurement October 31, Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Not Subject to Leveling (1) (in millions) Cash and Cash Equivalents $ 26 $ 18 $ 8 $ — $ — Equity 422 239 23 — 160 Fixed Income 325 83 222 — 20 Other Investments 1 — 1 — — Total assets measured at fair value $ 774 $ 340 $ 254 $ — $ 180 |
Defined benefit plans assets measured at fair value using significant unobservable inputs (level 3) | For U.S. Defined Benefit Plans assets measured at fair value using significant unobservable inputs (level 3), the following table summarizes the change in balances during 2017 and 2016 : Years Ended October 31. 2017 2016 Balance, beginning of year $ 9 $ 9 Realized gains/(losses) (3 ) — Unrealized gains/(losses) 3 3 Purchases, sales, issuances, and settlements (2 ) (3 ) Transfers in (out) — — Balance, end of year $ 7 $ 9 For U.S. Post-Retirement Benefit Plans assets measured at fair value using significant unobservable inputs (level 3), the following table summarizes the change in balances during 2017 and 2016 : Years Ended October 31, 2017 2016 Balance, beginning of year $ 5 $ 6 Realized gains/(losses) (2 ) — Unrealized gains/(losses) 2 1 Purchases, sales, issuances, and settlements (1 ) (2 ) Transfers in (out) — — $ 4 $ 5 |
Combined projected benefit obligation, accumulated benefit obligations and fair value of plan assets | The table below presents the combined projected benefit obligation ("PBO"), accumulated benefit obligation ("ABO") and fair value of plan assets, grouping plans using comparisons of the PBO and ABO relative to the plan assets as of October 31, 2017 or 2016 . 2017 2016 Benefit Obligation Benefit Obligation Fair Value of Plan Assets Fair Value of Plan Assets PBO PBO (in millions) U.S. defined benefit plans where PBO exceeds the fair value of plan assets $ 445 $ 414 $ 434 $ 341 U.S. defined benefit plans where fair value of plan assets exceeds PBO — — — — Total $ 445 $ 414 $ 434 $ 341 Non-U.S. defined benefit plans where PBO exceeds or is equal to the fair value of plan assets $ 563 $ 397 $ 970 $ 741 Non-U.S. defined benefit plans where fair value of plan assets exceeds PBO 372 458 32 33 Total $ 935 $ 855 $ 1,002 $ 774 ABO ABO U.S. defined benefit plans where ABO exceeds the fair value of plan assets $ 445 $ 414 $ 434 $ 341 U.S. defined benefit plans where the fair value of plan assets exceeds ABO — — — — Total $ 445 $ 414 $ 434 $ 341 Non-U.S. defined benefit plans where ABO exceeds or is equal to the fair value of plan assets $ 539 $ 397 $ 737 $ 542 Non-U.S. defined benefit plans where fair value of plan assets exceeds ABO 365 458 226 232 Total $ 904 $ 855 $ 963 $ 774 |
Schedule of expected benefit payments | The following table presents expected future benefit payments for the next 10 years: U.S. Defined Benefit Plans Non-U.S. Defined Benefit Plans U.S. Post-Retirement Benefit Plans (in millions) 2018 $ 29 $ 23 $ 8 2019 $ 28 $ 25 $ 8 2020 $ 31 $ 26 $ 8 2021 $ 29 $ 29 $ 7 2022 $ 30 $ 32 $ 7 2023 - 2027 $ 145 $ 176 $ 34 |
Assumptions used to calculate the net periodic cost and benefit obligation | Assumptions used to calculate the net periodic cost in each year were as follows: For years ended October 31, 2017 2016 2015 U.S. defined benefit plans: Discount rate 3.75% 4.20% 4.00% Average increase in compensation levels n/a 3.50% 3.50% Expected long-term return on assets 7.25% 7.50% 8.00% Non-U.S. defined benefit plans: Discount rate 0.22-2.66% 0.77-3.76% 1.50-4.00% Average increase in compensation levels 2.00-4.25% 2.25-4.00% 2.50-3.25% Expected long-term return on assets 4.00-6.25% 4.25-6.50% 4.00-6.50% U.S. post-retirement benefits plans: Discount rate 3.50% 4.00% 4.00% Expected long-term return on assets 7.25% 7.50% 8.00% Current medical cost trend rate 6.00% 7.00% 8.00% Ultimate medical cost trend rate 3.50% 3.50% 3.50% Medical cost trend rate decreases to ultimate rate in year 2029 2029 2028 Assumptions used to calculate the benefit obligation were as follows: As of the Years Ending October 31, 2017 2016 U.S. defined benefit plans: Discount rate 3.75% 3.75% Non-U.S. defined benefit plans: Discount rate 0.67-2.52% 0.40-2.62% Average increase in compensation levels 2.00-3.25% 2.00-4.25% U.S. post-retirement benefits plans: Discount rate 3.50% 3.50% Current medical cost trend rate 6.00% 6.00% Ultimate medical cost trend rate 3.50% 3.50% Medical cost trend rate decreases to ultimate rate in year 2029 2029 |
GUARANTEES (Tables)
GUARANTEES (Tables) | 12 Months Ended |
Oct. 31, 2017 | |
Guarantees [Abstract] | |
Standard Warranty | A summary of the standard warranty accrual activity is shown in the table below. The standard warranty accrual balances are held in other accrued and other long-term liabilities. October 31, 2017 2016 (in millions) Balance as of October 31, 2016 and 2015 $ 35 $ 31 Accruals for warranties including change in estimates 53 53 Settlements made during the period (54 ) (49 ) Balance as of October 31, 2017 and 2016 $ 34 $ 35 |
Schedule of Product Warranty Liability classification | Accruals for warranties due within one year 33 34 Accruals for warranties due after one year 1 1 Balance as of October 31, 2017 and 2016 $ 34 $ 35 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 12 Months Ended |
Oct. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Interest Rate Swaps pertaining to Senior Notes offered | The following table summarizes the company's long-term senior notes and the related interest rate swaps: October 31, 2017 October 31, 2016 Amortized Principal Swap Total Amortized Principal Swap Total (in millions) 2017 Senior Notes $ — $ — $ — $ 100 $ 1 101 2020 Senior Notes 499 11 510 498 15 513 2022 Senior Notes 398 — 398 398 — 398 2023 Senior Notes 596 — 596 595 — 595 2026 Senior Notes 297 — 297 297 — 297 Total $ 1,790 $ 11 $ 1,801 $ 1,888 $ 16 $ 1,904 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 12 Months Ended |
Oct. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Accumulated other comprehensive income | The following table summarizes the components of our accumulated other comprehensive income (loss) as of October 31, 2017 and 2016 , net of tax effect: October 31, 2017 2016 (in millions) Foreign currency translation, net of tax expense of $(8) and $(5) for 2017 and 2016, respectively $ (156 ) (197 ) Unrealized losses (including prior service benefit) on defined benefit plans, net of tax benefit of $127 and $176 for 2017 and 2016, respectively (188 ) (305 ) Unrealized gains (losses) on derivative instruments, net of tax benefit of $2 and $2 for 2017 and 2016, respectively (2 ) (1 ) Total accumulated other comprehensive loss $ (346 ) $ (503 ) Changes in accumulated other comprehensive income (loss) by component and related tax effects for the years ended October 31, 2017 and 2016 were as follows (in millions): Net defined benefit pension cost and post retirement plan costs Foreign currency translation Prior service credits Actuarial Losses Unrealized gains (losses) on derivatives Total (in millions) As of October 31, 2015 $ (189 ) $ 161 $ (365 ) $ 2 $ (391 ) Other comprehensive income (loss) before reclassifications (5 ) 6 (171 ) (10 ) (180 ) Amounts reclassified out of accumulated other comprehensive income — (29 ) 43 3 17 Tax benefit (3 ) 8 42 4 51 Other comprehensive loss (8 ) (15 ) (86 ) (3 ) (112 ) As of October 31, 2016 $ (197 ) $ 146 $ (451 ) $ (1 ) $ (503 ) Other comprehensive income (loss) before reclassifications 44 — 116 — 160 Amounts reclassified out of accumulated other comprehensive income — (9 ) 59 (1 ) 49 Tax (expense) benefit (3 ) 3 (52 ) — (52 ) Other comprehensive income (loss) 41 (6 ) 123 (1 ) 157 As of October 31, 2017 $ (156 ) $ 140 $ (328 ) $ (2 ) $ (346 ) |
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | Reclassifications out of accumulated other comprehensive income (loss) for the years ended October 31, 2017 and 2016 were as follows (in millions): Details about accumulated other Amounts Reclassified Affected line item in comprehensive income components from other comprehensive income statement of operations 2017 2016 Unrealized gains and (losses) on derivatives $ 1 $ (3 ) Cost of products 1 (3 ) Total before income tax — — (Provision)/benefit for income tax 1 (3 ) Total net of income tax Net defined benefit pension cost and post retirement plan costs: Actuarial net loss (59 ) (43 ) Cost of sales and operating expenses Prior service benefit 9 29 Cost of sales and operating expenses (50 ) (14 ) Total before income tax 14 4 (Provision)/benefit for income tax (36 ) (10 ) Total net of income tax Total reclassifications for the period $ (35 ) $ (13 ) |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Oct. 31, 2017 | |
Revenue from External Customer [Line Items] | |
Segment profitability | The profitability of each of the segments is measured after excluding restructuring and asset impairment charges, investment gains and losses, interest income, interest expense, acquisition and integration costs, non-cash amortization and other items as noted in the reconciliations below. Life Sciences and Applied Markets Diagnostics and Genomics Agilent CrossLab Total Segments (in millions) Year ended October 31, 2017: Total net revenue $ 2,169 $ 772 $ 1,531 $ 4,472 Income from operations $ 487 $ 149 $ 338 $ 974 Depreciation expense $ 35 $ 30 $ 29 $ 94 Share-based compensation expense $ 30 $ 10 $ 21 $ 61 Year ended October 31, 2016: Total net revenue $ 2,073 $ 709 $ 1,420 $ 4,202 Income from operations $ 429 $ 114 $ 316 $ 859 Depreciation expense $ 36 $ 31 $ 28 $ 95 Share-based compensation expense $ 29 $ 10 $ 21 $ 60 Year ended October 31, 2015: Total net revenue $ 2,046 $ 662 $ 1,330 $ 4,038 Income from operations $ 380 $ 88 $ 299 $ 767 Depreciation expense $ 27 $ 37 $ 34 $ 98 Share-based compensation expense $ 27 $ 9 $ 18 $ 54 |
Reconciliation of segment results to total enterprise results | The following table reconciles reportable segments' income from operations to Agilent's total enterprise income before taxes: Years Ended October 31, 2017 2016 2015 (in millions) Total reportable segments' income from operations $ 974 $ 859 $ 767 Business exit and divestiture costs ( primarily our NMR business) — (11 ) (12 ) Asset Impairments — (4 ) (3 ) Transformational initiatives (12 ) (38 ) (56 ) Amortization of intangible assets related to business combinations (117 ) (152 ) (156 ) Acquisition and integration costs (30 ) (41 ) (13 ) Acceleration of share-based compensation expense related to workforce reduction — — (2 ) Pension curtailment gain — 15 — Pension settlement gain 32 1 — Impairment of loans — (7 ) — Other (6 ) (7 ) (3 ) Interest Income 22 11 7 Interest Expense (79 ) (72 ) (66 ) Other income (expense), net 19 (10 ) 17 Income from continuing operations before taxes, as reported $ 803 $ 544 $ 480 |
Assets and capital expenditures directly managed by each segment | The following table presents assets and capital expenditures attributed to each segment. Unallocated assets primarily consist of cash, cash equivalents, accumulated amortization of other intangibles and other assets. Life Sciences and Applied Markets Diagnostics and Genomics Agilent CrossLab Total Segments (in millions) As of October 31, 2017: Assets $ 1,753 $ 2,119 $ 1,138 $ 5,010 Capital expenditures $ 39 $ 111 $ 26 $ 176 As of October 31, 2016: Assets $ 1,687 $ 1,960 $ 1,082 $ 4,729 Capital expenditures $ 53 $ 41 $ 45 $ 139 The following table reconciles segment assets to Agilent's total assets: October 31, 2017 2016 (in millions) Total reportable segments' assets $ 5,010 $ 4,729 Cash, cash equivalents 2,678 2,289 Prepaid expenses 92 92 Investments 138 135 Long-term and other receivables 105 92 Other 403 457 Total assets $ 8,426 $ 7,794 |
Revenue by product category | The following table represents total revenue by product category: Years Ended October 31, 2017 2016 2015 (in millions) Instrumentation $ 1,946 $ 1,871 $ 1,827 Analytical lab services 991 910 843 Analytical lab consumables 540 510 489 Diagnostics and genomics solutions 772 709 662 Informatics and other 223 202 217 Total $ 4,472 $ 4,202 $ 4,038 |
Revenue and assets by geographic areas | The following table presents summarized information for net revenue and long-lived assets by geographic region. Revenues from external customers are generally attributed to countries based upon the customer's location. Long lived assets consist of property, plant, and equipment, long-term receivables and other long-term assets excluding intangible assets. The rest of the world primarily consists of rest of Asia and Europe. United States China (1) Rest of the World Total (in millions) Net revenue: Year ended October 31, 2017 $ 1,314 $ 900 $ 2,258 $ 4,472 Year ended October 31, 2016 $ 1,251 $ 839 $ 2,112 $ 4,202 Year ended October 31, 2015 $ 1,214 $ 693 $ 2,131 $ 4,038 1. China also includes Hong Kong net revenue. Prior periods have been revised to conform with current year presentation. United States Germany Rest of the World Total (in millions) Long-lived assets: October 31, 2017 $ 556 $ 118 $ 358 $ 1,032 October 31, 2016 $ 449 $ 89 $ 266 $ 804 |
OVERVIEW AND SUMMARY OF SIGNI47
OVERVIEW AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | Mar. 02, 2016USD ($) | Oct. 31, 2017USD ($)yrsegment | Oct. 31, 2016USD ($) | Oct. 31, 2015USD ($) |
Accounting Policies [Abstract] | ||||
Share-based compensation expense | $ 61,000,000 | $ 60,000,000 | $ 55,000,000 | |
Advertising costs expensed as incurred | 38,000,000 | $ 30,000,000 | 25,000,000 | |
Cash and cash equivalents held outside the U.S. | $ 2,600,000,000 | |||
Maximum percentage of accounts receivable a single customer accounts for | less than 10 percent | less than 10 percent | ||
Employee compensation and benefits accrued | $ 101,000,000 | $ 92,000,000 | ||
Foreign currency translation net gain (Ioss) | $ (2,000,000) | (5,000,000) | (9,000,000) | |
Hedging contracts general maturity | 12 months | |||
Goodwill and Intangible Assets | ||||
Number of operating segments | segment | 3 | |||
Goodwill impairment | $ 0 | 0 | 0 | |
Impairment of other intangibles related to cancellation of IPRD project | 0 | 4,000,000 | 3,000,000 | |
Variable Interest Entity | ||||
Fair value of equity method investment | 0 | |||
Other-than-temporary impairment of equity method investment | 0 | 18,000,000 | 0 | |
Impairment of equity method investment loans | 0 | 7,000,000 | $ 0 | |
Cost method investment carrying value | 80,000,000 | |||
Maximum Loss Exposure of cost method investment | 80,000,000 | 80,000,000 | ||
Call option amount to acquire remaining shares of business | $ 105,000,000 | |||
Ownership percentage | 48.00% | |||
Cost method investments, original cost | $ 80,000,000 | |||
Fair Value Disclosures | ||||
Fair value of long term debt in excess of carrying value | $ 58,000,000 | 104,000,000 | ||
Long -Lived Assets | ||||
Operating Lease Term Range Minimum | yr | 1 | |||
Operating Lease Term Range Maximum | yr | 20 | |||
Lease renewal options | yr | 6 | |||
Financing Receivable, Net | $ 27,000,000 | 15,000,000 | ||
operating lease net assets | $ 22,000,000 | 23,000,000 | ||
Minimum [Member] | ||||
Goodwill and Intangible Assets | ||||
Finite Lived Intangible Assets Useful Life | 6 months | |||
Minimum [Member] | Machinery and Equipment [Member] | ||||
Long -Lived Assets | ||||
Property, Plant and Equipment, Useful Life | 3 years | |||
Minimum [Member] | Software Development [Member] | ||||
Long -Lived Assets | ||||
Property, Plant and Equipment, Useful Life | 3 years | |||
Maximum [Member] | ||||
Goodwill and Intangible Assets | ||||
Finite Lived Intangible Assets Useful Life | 15 years | |||
Maximum [Member] | Machinery and Equipment [Member] | ||||
Long -Lived Assets | ||||
Property, Plant and Equipment, Useful Life | 10 years | |||
Maximum [Member] | Software Development [Member] | ||||
Long -Lived Assets | ||||
Property, Plant and Equipment, Useful Life | 5 years | |||
NMR [Member] | ||||
Long -Lived Assets | ||||
Restructuring and other related costs | 6,000,000 | |||
Purchased technology | ||||
Business Acquisition [Line Items] | ||||
Intangible assets not acquired from business combinations, net (excluding goodwill) | $ 13,000,000 | $ 8,000,000 |
NEW ACCOUNTING PRONOUNCEMENTS -
NEW ACCOUNTING PRONOUNCEMENTS - Impact of adopting new guidance (Details) - Adjustments for New Accounting Pronouncement [Member] $ in Millions | Oct. 31, 2016USD ($) |
Long-term Debt [Member] | |
Decrease related to debt issuance costs | $ 8 |
Other Assets [Member] | |
Decrease related to debt issuance costs | $ 8 |
DISCONTINUED OPERATIONS DISCONT
DISCONTINUED OPERATIONS DISCONTINUED OPERATIONS-Textual (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2015 | Nov. 01, 2014 | |
Discontinued Operations and Disposal Groups [Abstract] | ||||
Cash per separation agreement | $ 700 | |||
Net transfer of cash and cash equivalents to Keysight | $ 0 | $ 0 | $ 734 | |
Separation transaction costs | 39 | |||
Accumulated other comprehensive loss transferred to discontinued operations | 332 | |||
Additional paid in capital transferred to discontinued operations | $ 28 | |||
Transition service income | 12 | |||
Future yearly lease income | 12 | |||
Transition service and lease income | $ 12 | $ 12 | $ 25 |
DISCONTINUED OPERATIONS - State
DISCONTINUED OPERATIONS - Statement of Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |||
Net revenue | $ 0 | ||
Cost and expenses | 39 | ||
Operating loss | (39) | ||
Other income (expense), net | 0 | ||
Loss from discontinued operations before tax | (39) | ||
Benefit for income taxes | (2) | ||
Net loss from discontinued operations | $ 0 | $ 0 | $ (37) |
SHARE-BASED COMPENSATION Genera
SHARE-BASED COMPENSATION General Disclosures (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2015 | |
Employee stock purchase plan [Abstract] | |||
Compensation percentage maximum eligible contribution to purchase shares of common stock | 10.00% | ||
ESPP eligible employee common stock purchase price ratio | 85.00% | ||
Automatic annual increase in shares authorized for issuance in ESPP, without the Board of Directors determined amount, percentage (in hundredths) | 1.00% | ||
Maximum number of shares authorized for issuance under the ESPP (in shares) | 75,000,000 | ||
ESPP Employee purchased shares (in shares) | 618,270 | 696,178 | 346,472 |
ESPP employee purchases | $ 26 | $ 23 | $ 12 |
Maximum number of shares available for issuance under the ESPP | 27,556,310 | ||
Aggregate participants contributions to ESPP | $ 15 | ||
Incentive compensation plans [Abstract] | |||
Common stock issuable under the 2009 Plan (in shares) | 25,000,000 | ||
Term of the 2009 Stock Plan (in years) | ten years | ||
Common stock available for future awards under the 2009 Stock Plan (in shares) | 8,140,709 | ||
Percentage which rate options generally vest per year (in hundredths) | 25.00% | ||
Number of years from the date of grant generally vest (in years) | 4 years | ||
Maximum contractual term (in years) | 10 years | ||
Percentage market value of the common stock option exercise price is generally not less than (in hundredths) | 100.00% | ||
Minimum final share award percentage of the target award based on performance metrics (in hundredths) | 0.00% | ||
Maximum final share award percentage of the target award based on performance metrics (in hundredths) | 200.00% | ||
Time period after which participants of the performance stock award plan are entitled to receive unrestricted share of the company's stock, if specified performance targets are met | 3 years | ||
Percentage rate restricted stock units generally vest per year (in hundredths) | 25.00% | ||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Vesting Period By Year | 4 years |
SHARE-BASED COMPENSATION Alloca
SHARE-BASED COMPENSATION Allocated Share-based compensation expense (Details) - USD ($) | 12 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation expense | $ 61,000,000 | $ 60,000,000 | $ 55,000,000 |
Share-based compensation disclosures | |||
Incremental expense for the acceleration of share-based compensation related to the announced workforce reduction plan | $ 0 | $ 2,000,000 | |
Time period which employees have to exercise options related to the workforce reduction before such options are cancelled (in months) | 3 months | ||
Weighted per share average grant date fair value of options granted (per share) | $ 10.58 | ||
Cost of Sales [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation expense | $ 15,000,000 | 14,000,000 | $ 11,000,000 |
Research and Development | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation expense | 6,000,000 | 6,000,000 | 5,000,000 |
Selling, General and Administrative | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation expense | $ 40,000,000 | 40,000,000 | $ 39,000,000 |
Inventories | |||
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | |||
Share-based compensation expense | $ 0 |
SHARE-BASED COMPENSATION-Fair V
SHARE-BASED COMPENSATION-Fair Value Assumptions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 61 | $ 60 | $ 55 |
Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average risk-free interest rate (in hundredths) | 0.00% | 0.00% | 1.75% |
Dividend yield (in hundredths) | 0.00% | 0.00% | 1.00% |
Weighted average volatility (in hundredths) | 0.00% | 0.00% | 28.00% |
Expected life (in years) | 0 years | 0 years | 5 years 6 months |
LTPP [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Volatility of Agilent shares (in hundreths) | 23.00% | 24.00% | 25.00% |
Volatility of selected peer-company shares, Minimum (in hundreths) | 15.00% | 14.00% | 12.00% |
Volatility of selected peer-company shares, Maximum (in hundreths) | 63.00% | 50.00% | 57.00% |
Price-wise correlation with selected peers (in hundredths) | 36.00% | 35.00% | 37.00% |
LTPP & RSU [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Discount for Postvesting Restrictions | 5.30% | 5.50% |
SHARE-BASED COMPENSATION Stock
SHARE-BASED COMPENSATION Stock Option Activity (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Outstanding, beginning balance (in shares) | 4,106 | ||
Granted (in shares) | 0 | ||
Exercised (in shares) | (1,343) | ||
Options Cancelled/Forfeited/Expired (in shares) | (2) | ||
Outstanding, ending balance (in shares) | 2,761 | 4,106 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||
Weighted-average exercise price per share, beginning of period (in dollars per share) | $ 33 | ||
Weighted-average exercise price per share, granted (in dollars per share) | 0 | ||
Weighted-average exercise price per share, exercised (in dollars per share) | 30 | $ 25 | $ 24 |
Weighted-average exercise price per share, cancelled, expired and forfeited (in dollars per shares) | 41 | ||
Weighted-average exercise price per share, end of period (in dollars per share) | $ 34 | ||
Forfeited and expired options from total cancellations [Abstract] | |||
Forfeited (in shares) | 2 | ||
Expired (in shares) | 0 | ||
Options Cancelled/Forfeited/Expired (in shares) | 2 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options forfeited and expired, Additional Disclosures [Abstract] | |||
Weighted-average exercise price per share, forfeited (in dollars per share) | $ 41 | ||
Weighted-average exercise price per share, expired (in dollars per share) | 0 | ||
Weighted-average exercise price per share, total options cancelled (in dollars per share) | $ 41 |
SHARE-BASED COMPENSATION Shares
SHARE-BASED COMPENSATION Shares Authorized by Exercise Price Range (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2015 | |
Sharebased Compensation Arrangement By Exercise Price Range [Abstract] | |||
Number Outstanding (in shares) | 2,761 | ||
Weighted Average Remaining Contractual Life (in years) | 5 years 7 months | ||
Weighted Average Exercise Price (in dollars per share) | $ 34 | ||
Aggregate Intrinsic Value | $ 93,658 | ||
Number Exercisable (in shares) | 1,916 | ||
Weighted Average Remaining Contractual Life (in years) | 5 years | ||
Weighted Average Exercise Price (in dollars per share) | $ 31 | ||
Aggregate Intrinsic Value | $ 70,327 | ||
Closing stock price basis for aggregate intrinsic value (in dollars per share) | $ 68.03 | ||
In-the-money awards exercisable (in shares) | 1,900 | ||
Aggregate instrinsic value of options [Abstract] | |||
Options exercised in period aggregate intrinsic value | $ 36,175 | $ 26,913 | $ 33,258 |
Options exercised in period aggregate weighted average exercise price (in dollars per share) | $ 30 | $ 25 | $ 24 |
Black-Scholes valuation of options granted in the period (in dollars per share) | $ 10.58 | ||
Unrecognized share-based compensation costs for outstanding stock option awards, net of expected foreitures | $ 700 | ||
Weighted-average period unrecognized share-based compensation costs for outstanding stock option awards, expected amortization period (in years) | 1 year | ||
Amount of cash received from the exercise of share-based awards granted | $ 66,000 | $ 62,000 | $ 58,000 |
Range of Exercise Prices - $0 - $25 [Member] | |||
Sharebased Compensation Arrangement By Exercise Price Range [Abstract] | |||
Minimum price of options outstanding, end of the period (in dollars per share) | $ 0 | ||
Maximum price of options outstanding, end of the period (in dollars per share) | $ 25 | ||
Number Outstanding (in shares) | 170 | ||
Weighted Average Remaining Contractual Life (in years) | 1 year 7 months | ||
Weighted Average Exercise Price (in dollars per share) | $ 18 | ||
Aggregate Intrinsic Value | $ 8,561 | ||
Number Exercisable (in shares) | 170 | ||
Weighted Average Remaining Contractual Life (in years) | 1 year 7 months | ||
Weighted Average Exercise Price (in dollars per share) | $ 18 | ||
Aggregate Intrinsic Value | $ 8,561 | ||
Range of Exercise Prices - $25.01 - $30 [Member] | |||
Sharebased Compensation Arrangement By Exercise Price Range [Abstract] | |||
Minimum price of options outstanding, end of the period (in dollars per share) | $ 25.01 | ||
Maximum price of options outstanding, end of the period (in dollars per share) | $ 30 | ||
Number Outstanding (in shares) | 957 | ||
Weighted Average Remaining Contractual Life (in years) | 4 years 3 months | ||
Weighted Average Exercise Price (in dollars per share) | $ 26 | ||
Aggregate Intrinsic Value | $ 39,804 | ||
Number Exercisable (in shares) | 957 | ||
Weighted Average Remaining Contractual Life (in years) | 4 years 3 months | ||
Weighted Average Exercise Price (in dollars per share) | $ 26 | ||
Aggregate Intrinsic Value | $ 39,804 | ||
Range of Exercise Prices - $30.01 - $40 [Member] | |||
Sharebased Compensation Arrangement By Exercise Price Range [Abstract] | |||
Minimum price of options outstanding, end of the period (in dollars per share) | $ 30.01 | ||
Maximum price of options outstanding, end of the period (in dollars per share) | $ 40 | ||
Number Outstanding (in shares) | 528 | ||
Weighted Average Remaining Contractual Life (in years) | 6 years 1 month | ||
Weighted Average Exercise Price (in dollars per share) | $ 39 | ||
Aggregate Intrinsic Value | $ 15,258 | ||
Number Exercisable (in shares) | 296 | ||
Weighted Average Remaining Contractual Life (in years) | 6 years 1 month | ||
Weighted Average Exercise Price (in dollars per share) | $ 39 | ||
Aggregate Intrinsic Value | $ 8,566 | ||
Range of Exercise Prices $40.01 & Over [Member] | |||
Sharebased Compensation Arrangement By Exercise Price Range [Abstract] | |||
Minimum price of options outstanding, end of the period (in dollars per share) | $ 40.01 | ||
Number Outstanding (in shares) | 1,106 | ||
Weighted Average Remaining Contractual Life (in years) | 7 years | ||
Weighted Average Exercise Price (in dollars per share) | $ 41 | ||
Aggregate Intrinsic Value | $ 30,035 | ||
Number Exercisable (in shares) | 493 | ||
Weighted Average Remaining Contractual Life (in years) | 7 years | ||
Weighted Average Exercise Price (in dollars per share) | $ 41 | ||
Aggregate Intrinsic Value | $ 13,396 |
SHARE-BASED COMPENSATION Non-ve
SHARE-BASED COMPENSATION Non-vested award activity disclosure (Details) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Oct. 31, 2017USD ($)yr$ / sharesshares | Oct. 31, 2016USD ($)shares | Oct. 31, 2015USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Non-vested beginning (in shares) | shares | 3,062 | ||
Granted (in shares) | shares | 1,405 | ||
Vested (in shares) | shares | (1,068) | ||
Forfeited (in shares) | shares | (84) | ||
Change in LTPP shares vested in the year due to performance conditions | shares | (13) | ||
Non-vested ending (in shares) | shares | 3,302 | 3,062 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||
Non-vested at October 31, 2014 -Weighted Average Grant Price (in dollars per share) | $ / shares | $ 40 | ||
Granted - Weighted Average Grant Price (in dollars per share) | $ / shares | 47 | ||
Vested- Weighted Average Grant Price (in dollars per share) | $ / shares | 39 | ||
Foreited- Weighted Average Grant Price (in dollars per share) | $ / shares | 42 | ||
Change in LTPP shares vested in the year due to performance conditions Fair Value | $ / shares | 0 | ||
Non-vested at October 31, 2015 -Weighted Average Grant Price (in dollars per share) | $ / shares | $ 43 | ||
Unrecognized share-based compensation costs for non-vested restricted stock awards, net of expected forfeitures | $ | $ 58 | ||
Weighted-average period non-vested restricted stock awards are expected to be amortized over (in years) | yr | 2.2 | ||
Total fair value of restricted stock awards vested | $ | $ 42 | $ 21 | $ 31 |
INCOME TAXES INCOME TAXES- Prov
INCOME TAXES INCOME TAXES- Provision (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2015 | |
Income from continuing operations before income tax | |||
U.S. operations | $ 116 | $ 27 | $ 77 |
Non-U.S. operations | 687 | 517 | 403 |
Income from continuing operations before taxes | 803 | 544 | 480 |
Provision (benefit) for income taxes | |||
U.S. federal taxes - current | 15 | (1) | (91) |
U.S. federal taxes - deferred | 110 | 19 | 97 |
Non-U.S. taxes - current | 1 | 77 | 62 |
Non-U.S. taxes - deferred | (7) | (14) | (27) |
State taxes, net of federal benefit - current | 1 | 3 | 1 |
State taxes, net of federal benefit - deferred | (1) | (2) | 0 |
Income tax expense (benefit) | $ 119 | $ 82 | $ 42 |
Effective tax rate (in hundredths) | 14.80% | 15.10% | 8.70% |
Net discrete tax expense (benefit) | $ 17 | $ (55) |
INCOME TAXES INCOME TAXES - Def
INCOME TAXES INCOME TAXES - Deferred Taxes and other(Details) - USD ($) $ in Millions | Oct. 31, 2017 | Oct. 31, 2016 |
Income Tax Disclosure [Abstract] | ||
Cumulative amount of undistributed earnings | $ 5,800 | |
Components of Deferred Tax Assets | ||
Inventory | 16 | $ 13 |
Intangibles | 0 | 0 |
Property, plant and equipment | 12 | 16 |
Warranty reserves | 12 | 14 |
Pension benefits and retiree medical benefits | 70 | 136 |
Employee benefits, other than retirement | 28 | 28 |
Net operating loss, capital loss and credit carryforwards | 328 | 293 |
Unremitted earnings of foreign subsidiaries | 0 | 0 |
Share-based compensation | 45 | 41 |
Deferred revenue | 45 | 42 |
Other | 1 | 12 |
Subtotal | 557 | 595 |
Tax valuation allowance | (138) | (129) |
Total deferred tax assets | 419 | 466 |
Components of Deferred Tax Liabilities | ||
Inventory | 0 | 0 |
Intangibles | 93 | 92 |
Property, plant and equipment | 0 | 0 |
Warranty reserves | 0 | 0 |
Pension benefits and retiree medical benefits | 0 | 0 |
Employee benefits, other than retirement | 0 | 0 |
Net operating loss, capital loss and credit carryforwards | 0 | 0 |
Unremmitted earnings of foreign subsidiaries | 163 | 53 |
Share-based compensation | 0 | 0 |
Deferred revenue | 0 | 0 |
Other | 0 | 0 |
Subtotal | 256 | 145 |
Tax valuation allowance | 0 | 0 |
Total deferred tax liabilities | 256 | 145 |
Long Term Deferred Tax Assets And Liabilities [Abstract] | ||
Long-term deferred tax assets (included within other assets) | 240 | 386 |
Long-term deferred tax liabilities (included within other long-term liabilities) | (77) | (65) |
Total | $ 163 | $ 321 |
INCOME TAXES - Carryforwards (D
INCOME TAXES - Carryforwards (Details) $ in Millions | Oct. 31, 2017USD ($) |
Net Operating loss carryforwards | |
Federal net operating loss carryforwards | $ 10 |
State net operating loss carryforwards | 670 |
Foreign net operating loss carryforwards | 310 |
Foreign | |
Net Operating loss carryforwards | |
Net operating loss carryforwards, subject to expiration | 124 |
Net operating loss carryforwards, not subject to expiration | 186 |
Capital Loss Carryforward | |
Capital loss carryforwards | 129 |
Domestic | |
Capital Loss Carryforward | |
Capital loss carryforwards | 48 |
Federal | |
Tax Credit Carryforwards | |
Tax credit carryforwards | 144 |
State | |
Tax Credit Carryforwards | |
Tax credit carryforwards | $ 55 |
INCOME TAXES INCOME TAXES Effe
INCOME TAXES INCOME TAXES Effective tax rate and tax holidays (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2015 | |
Effective Income Tax Rate Reconciliation | |||
Profit before tax times statutory rate | $ 281 | $ 190 | $ 167 |
State income taxes, net of federal benefit | 2 | 2 | (8) |
Non-U.S. income taxed at different rates | (43) | (68) | (72) |
Change in unrecognized tax benefits | (110) | (27) | (116) |
Repatriation of foreign earnings | 0 | 0 | 68 |
Valuation allowances | 1 | 18 | (2) |
Adjustments to earnings of foreign subsidiaries | 0 | (11) | 0 |
Other, net | (12) | (22) | 5 |
Income tax expense (benefit) | $ 119 | $ 82 | $ 42 |
Effective tax rate (in hundredths) | 14.80% | 15.10% | 8.70% |
Tax Holidays [Abstract] | |||
Impact of the income tax holidays | $ 93 | $ 86 | $ 65 |
Benefit of income tax holidays on net income per share | $ 0.29 | $ 0.26 | $ 0.19 |
INCOME TAXES - Current and long
INCOME TAXES - Current and long-term income tax assets and liabilities (Details) - USD ($) $ in Millions | Oct. 31, 2017 | Oct. 31, 2016 |
Income Tax Disclosure [Abstract] | ||
Current income tax assets (included within other current assets) | $ 77 | $ 83 |
Long-term income tax assets (included within other assets) | 18 | 19 |
Current income tax liabilities (included within other accrued liabilities) | 55 | 49 |
Long-term income tax liabilities (included within other long-term liabilities) | 131 | 190 |
Total | $ 91 | $ 137 |
INCOME TAXES INCOME TAXES - Unc
INCOME TAXES INCOME TAXES - Uncertain Tax Positions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2015 | |
Unrecognized Tax Benefits Rollforward | |||
Balance, beginning of year | $ 293 | $ 289 | $ 417 |
Additions for tax positions related to the current year | 32 | 31 | 33 |
Additions for tax positions from prior years | 1 | 1 | 3 |
Reductions for tax positions from prior years | 3 | 27 | 156 |
Settlements with taxing authorities | (52) | 0 | (4) |
Statute of limitations expirations | (47) | (1) | (4) |
Balance, end of year | 224 | 293 | 289 |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense [Abstract] | |||
Interest and penalties accrued related to unrecognized tax benefits accrued and reported | 16 | 25 | |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 202 | ||
Income tax expense (benefit) | 119 | 82 | 42 |
Tax years 2012 and 2013 [Member] | |||
Unrecognized Tax Benefits Rollforward | |||
Statute of limitations expirations | (40) | ||
Tax Interest and Penalties [Member] | |||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense [Abstract] | |||
Income tax expense (benefit) | $ (9) | $ 2 | $ (2) |
INCOME TAXES INCOME TAXES - Tax
INCOME TAXES INCOME TAXES - Tax Examination (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2015 | |
Income Tax Examination [Line Items] | |||
Reductions for tax positions from prior years | $ 3 | $ 27 | $ 156 |
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities | 52 | 0 | 4 |
Other Tax Expense (Benefit) | 17 | $ (55) | |
Internal Revenue Service (IRS) [Member] | |||
Income Tax Examination [Line Items] | |||
Reductions for tax positions from prior years | 119 | ||
Tax liability on foreign earnings distributions | $ 99 | ||
ITALY | |||
Income Tax Examination [Line Items] | |||
Income Tax Examination, Liability (Refund) Adjustment from Settlement with Taxing Authority | 7 | ||
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities | 14 | ||
GERMANY | |||
Income Tax Examination [Line Items] | |||
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities | $ 51 |
NET INCOME (LOSS) PER SHARE (De
NET INCOME (LOSS) PER SHARE (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2015 | |
Numerator: | |||
Income from continuing operations | $ 684 | $ 462 | $ 438 |
Loss from discontinued operations | 0 | 0 | (37) |
Net income | $ 684 | $ 462 | $ 401 |
Denominator: | |||
Basic weighted average shares | 322,000,000 | 326,000,000 | 333,000,000 |
Potential common shares - stock options and other employeee stock plans | 4,000,000 | 3,000,000 | 2,000,000 |
Diluted weighted average shares | 326,000,000 | 329,000,000 | 335,000,000 |
Share-based awards issued | |||
Total number of share-based awards issued (in shares) | 3,000,000 | 3,000,000 | 3,000,000 |
Options with exercise price greater than average market price [Member] | |||
Antidilutive securities excluded from EPS computation | |||
Antidilutive shares excluded from EPS computation (in shares) | 0 | 842,200 | 1,200,000 |
Stock Options, LTPP and restricted stock combined exercise price, unamortized fair value, excess tax benefits or shortfalls greater than average market price [Member] | |||
Antidilutive securities excluded from EPS computation | |||
Antidilutive shares excluded from EPS computation (in shares) | 200 | 229,600 | 368,900 |
INVENTORY (Details)
INVENTORY (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2015 | |
Inventory [Line Items] | |||
Finished goods | $ 363 | $ 339 | |
Purchased parts and fabricated assemblies | 212 | 194 | |
Inventory | 575 | 533 | |
Inventory-related excess and obsolescence charges | $ 24 | $ 20 | $ 30 |
PROPERTY, PLANT AND EQUIPMENT66
PROPERTY, PLANT AND EQUIPMENT, NET (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2015 | |
Property, Plant and Equipment [Line Items] | |||
Land | $ 56 | $ 53 | |
Buildings and leasehold improvements | 886 | 757 | |
Machinery and equipment | 470 | 420 | |
Software | 188 | 176 | |
Total property, plant and equipment | 1,600 | 1,406 | |
Accumulated depreciation and amortization | (843) | (767) | |
Property, plant and equipment, net | 757 | 639 | |
Asset impairments | 0 | 0 | $ 0 |
Depreciation expense | $ 94 | $ 95 | $ 98 |
GOODWILL AND OTHER INTANGIBLE67
GOODWILL AND OTHER INTANGIBLE ASSETS Text (Details) - USD ($) | Jul. 07, 2017 | Jan. 20, 2017 | Aug. 01, 2016 | Nov. 02, 2015 | Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2015 |
Finite-Lived Intangible Assets [Line Items] | |||||||
Goodwill arising from acquisitions | $ 78,000,000 | $ 156,000,000 | |||||
Additions and adjustments to other intangibles | 52,000,000 | 121,000,000 | |||||
Foreign exchange translation impact to other intangible assets | 5,000,000 | (2,000,000) | |||||
Fully amortized intangible assets removed | 132,000,000 | ||||||
Impairment of other intangibles related to cancellation of IPRD project | 0 | 4,000,000 | $ 3,000,000 | ||||
Business Acquisition | |||||||
Goodwill impairment | $ 0 | $ 0 | $ 0 | ||||
Cobalt [Member] | |||||||
Business Acquisition | |||||||
Purchase price for acquisition | $ 53,000,000 | ||||||
Multiplicom NV [Member] | |||||||
Business Acquisition | |||||||
Purchase price for acquisition | $ 72,000,000 | ||||||
iLabs Solutions [Member] | |||||||
Business Acquisition | |||||||
Purchase price for acquisition | $ 26,000,000 | ||||||
Seahorse Bioscience [Member] | |||||||
Business Acquisition | |||||||
Purchase price for acquisition | $ 242,000,000 |
GOODWILL AND OTHER INTANGIBLE68
GOODWILL AND OTHER INTANGIBLE ASSETS Roll forward (Details) - USD ($) $ in Millions | 12 Months Ended | |
Oct. 31, 2017 | Oct. 31, 2016 | |
Goodwill - Rollforward | ||
Beginning Balance | $ 2,517 | $ 2,366 |
Foreign currency translation impact | 12 | (5) |
Goodwill arising from acquisitions | 78 | 156 |
Ending Balance | 2,607 | 2,517 |
Life Sciences and Applied Markets | ||
Goodwill - Rollforward | ||
Beginning Balance | 790 | 650 |
Foreign currency translation impact | 2 | 3 |
Goodwill arising from acquisitions | 26 | 137 |
Ending Balance | 818 | 790 |
Diagnostics and Genomics | ||
Goodwill - Rollforward | ||
Beginning Balance | 1,223 | 1,234 |
Foreign currency translation impact | 10 | (11) |
Goodwill arising from acquisitions | 52 | 0 |
Ending Balance | 1,285 | 1,223 |
Agilent CrossLab | ||
Goodwill - Rollforward | ||
Beginning Balance | 504 | 482 |
Foreign currency translation impact | 0 | 3 |
Goodwill arising from acquisitions | 0 | 19 |
Ending Balance | $ 504 | $ 504 |
GOODWILL AND OTHER INTANGIBLE69
GOODWILL AND OTHER INTANGIBLE ASSETS Disclosures and Components of Other Intangibles (Details) - USD ($) $ in Millions | Oct. 31, 2017 | Oct. 31, 2016 |
Schedule of Other Intangible Assets By Major Class [Abstract] | ||
Gross Carrying Amount | $ 1,155 | $ 1,236 |
Accumulated Amortization | 831 | 845 |
Intangible Assets, Net (Excluding Goodwill) | 361 | 416 |
Intangible Assets acquired in business combinations, net (Excluding Goodwill) | 348 | 408 |
Total amortizable intangible assets | 324 | 391 |
Gross Book Value | 1,179 | 1,253 |
In-Process R&D | 24 | 17 |
Purchased technology | ||
Schedule of Other Intangible Assets By Major Class [Abstract] | ||
Gross Carrying Amount | 855 | 823 |
Accumulated Amortization | 646 | 572 |
Intangible Assets, Net (Excluding Goodwill) | 209 | 251 |
Intangible Assets purchased separately from business combinations | ||
Intangible assets purchased separately from business combinations, net (excluding goodwill) | 13 | 8 |
Backlog | ||
Schedule of Other Intangible Assets By Major Class [Abstract] | ||
Gross Carrying Amount | 1 | |
Accumulated Amortization | 1 | |
Intangible Assets, Net (Excluding Goodwill) | 0 | |
Trademark/Tradename | ||
Schedule of Other Intangible Assets By Major Class [Abstract] | ||
Gross Carrying Amount | 149 | 149 |
Accumulated Amortization | 73 | 61 |
Intangible Assets, Net (Excluding Goodwill) | 76 | 88 |
Customer Relationships [Member] | ||
Schedule of Other Intangible Assets By Major Class [Abstract] | ||
Gross Carrying Amount | 151 | 263 |
Accumulated Amortization | 112 | 211 |
Intangible Assets, Net (Excluding Goodwill) | $ 39 | $ 52 |
GOODWILL AND OTHER INTANGIBLE70
GOODWILL AND OTHER INTANGIBLE ASSETS Amortization Expense and Future Amortization Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2015 | |
Amortization Expense, Maturity Schedule [Abstract] | |||
Amortization of intangible assets during the period | $ 120 | $ 154 | $ 158 |
Future amortization expense for 2018 | 94 | ||
Future amortization expense for 2019 | 69 | ||
Future amortization expense for 2020 | 57 | ||
Future amortization expense for 2021 | 43 | ||
Future amortization expense for 2022 | 32 | ||
Future amortization thereafter | $ 42 |
INVESTMENTS (Details)
INVESTMENTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2015 | |
Cost method investment, VIE | $ 80 | ||
Fair value of equity method investment | $ 0 | ||
Long-Term [Abstract] | |||
Cost method investments | 106 | 104 | |
Trading securities | 32 | 31 | |
Total | 138 | 135 | |
Amounts included in other income (expense), net [Abstract] | |||
Equity method investments - share of losses | 0 | (10) | $ (9) |
Other-than-temporary impairment of equity method investment | 0 | (18) | 0 |
Income Loss and impairment loss From Equity Method Investments | 0 | (28) | (9) |
Net unrealized gains and losses on trading securities | $ 4 | $ 1 | $ 2 |
FAIR VALUE MEASUREMENTS, Fair v
FAIR VALUE MEASUREMENTS, Fair value of assets and liabilities measured on a recurring basis (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Millions | Oct. 31, 2017 | Oct. 31, 2016 |
Assets, Short-term [Abstract] | ||
Cash equivalents (money market funds) | $ 1,659 | $ 1,482 |
Derivative instruments (foreign exchange contracts) | 4 | 9 |
Assets, Long-term [Abstract] | ||
Trading securities | 32 | 31 |
Total assets measured at fair value | 1,695 | 1,522 |
Liabilities, Short-term [Abstract] | ||
Derivative instruments (foreign exchange contracts) | 6 | 8 |
Liabilities, Long-term [Abstract] | ||
Deferred compensation liability | 32 | 31 |
Total liabilities measured at fair value | 38 | 39 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Assets, Short-term [Abstract] | ||
Cash equivalents (money market funds) | 1,659 | 1,482 |
Derivative instruments (foreign exchange contracts) | 0 | 0 |
Assets, Long-term [Abstract] | ||
Trading securities | 32 | 31 |
Total assets measured at fair value | 1,691 | 1,513 |
Liabilities, Short-term [Abstract] | ||
Derivative instruments (foreign exchange contracts) | 0 | 0 |
Liabilities, Long-term [Abstract] | ||
Deferred compensation liability | 0 | 0 |
Total liabilities measured at fair value | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Assets, Short-term [Abstract] | ||
Cash equivalents (money market funds) | 0 | 0 |
Derivative instruments (foreign exchange contracts) | 4 | 9 |
Assets, Long-term [Abstract] | ||
Trading securities | 0 | 0 |
Total assets measured at fair value | 4 | 9 |
Liabilities, Short-term [Abstract] | ||
Derivative instruments (foreign exchange contracts) | 6 | 8 |
Liabilities, Long-term [Abstract] | ||
Deferred compensation liability | 32 | 31 |
Total liabilities measured at fair value | 38 | 39 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Assets, Short-term [Abstract] | ||
Cash equivalents (money market funds) | 0 | 0 |
Derivative instruments (foreign exchange contracts) | 0 | 0 |
Assets, Long-term [Abstract] | ||
Trading securities | 0 | 0 |
Total assets measured at fair value | 0 | 0 |
Liabilities, Short-term [Abstract] | ||
Derivative instruments (foreign exchange contracts) | 0 | 0 |
Liabilities, Long-term [Abstract] | ||
Deferred compensation liability | 0 | 0 |
Total liabilities measured at fair value | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS FAIR VA
FAIR VALUE MEASUREMENTS FAIR VALUE MEASURMENTS - Fair value of assets and liabilities measured on non recurring (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Carrying value of long-lived asset | $ 4 | $ 3 | |
Long lived assets held for use impairment | $ 0 | 4 | 3 |
Fair value of assets, nonrecurring | 0 | 0 | |
Long lived assets held for sale Impairment | $ 0 | 0 | 0 |
In Process Research and Development [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Long lived assets held for use impairment | $ 4 | $ 3 |
DERIVATIVES (Details)
DERIVATIVES (Details) $ in Millions | Oct. 20, 2014USD ($) | Oct. 31, 2017USD ($)contracts | Oct. 31, 2016USD ($) | Oct. 31, 2015USD ($) | Sep. 15, 2016USD ($) | Feb. 01, 2016USD ($) | Jul. 01, 2012USD ($) | Aug. 09, 2011USD ($)contracts | Jul. 13, 2010USD ($) | Oct. 24, 2007USD ($) |
Terminated Interest Rate Swaps | ||||||||||
Notional Amount of Terminated Interest Rate Swaps | $ 10 | |||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||
interest rate swap payments | $ 0 | $ 10 | $ 0 | |||||||
Derivative, Net Liability Position, Aggregate Fair Value | $ 4 | |||||||||
Derivative Contracts [Abstract] | ||||||||||
Number Of Foreign Exchange Forward Contracts Designated As Cash Flow Hedge | contracts | 71 | |||||||||
Number Of Foreign Exchange Forward Contracts Not Designated As Hedges | contracts | 143 | |||||||||
Senior Notes 2022 [Member] | Treasury Lock [Member] | Cash Flow Hedges | ||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||
Derivative, Notional Amount | $ 400 | |||||||||
Remaining gain loss to be amortized on derivative | $ 2 | |||||||||
Senior Notes 2020 [Member] | ||||||||||
Terminated Interest Rate Swaps | ||||||||||
Notional Amount of Terminated Interest Rate Swaps | $ 500 | |||||||||
Asset value of terminated interest rate swaps | $ 34 | |||||||||
Terminated Interest Rate Fair Value Hedge Asset Unamortized Amount | 11 | |||||||||
Senior Notes 2026 [Member] | Treasury Lock [Member] | Cash Flow Hedges | ||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||
Derivative, Notional Amount | $ 300 | |||||||||
Remaining gain loss to be amortized on derivative | 9 | |||||||||
Senior Notes 2020 [Member] | ||||||||||
Terminated Interest Rate Swaps | ||||||||||
Number of Interest Rate Swap Contracts Designated as Fair Value Hedges Terminated | contracts | 5 | |||||||||
Terminated Interest Rate Fair Value Hedge Asset Unamortized Amount | $ 11 | |||||||||
Debt Instrument, Face Amount | $ 500 | $ 500 | ||||||||
Senior Notes 2017 [Member] | ||||||||||
Terminated Interest Rate Swaps | ||||||||||
Extinguishment of Debt, Amount | $ 500 | |||||||||
Debt Instrument, Face Amount | $ 600 |
DERIVATIVES, Disclosures and de
DERIVATIVES, Disclosures and derivative instrument aggregated notional amounts by currency and designations (Details) - Forward Contracts Buy/(Sell) [Member] $ in Millions | Oct. 31, 2017USD ($) |
Designated as Hedging Instrument | Cash Flow Hedges | Buy | Australian Dollars | |
Derivative [Line Items] | |
Derivative, Notional Amount | $ 4 |
Designated as Hedging Instrument | Cash Flow Hedges | Buy | Singapore, Dollars | |
Derivative [Line Items] | |
Derivative, Notional Amount | 11 |
Designated as Hedging Instrument | Cash Flow Hedges | Sell | |
Derivative [Line Items] | |
Derivative, Notional Amount | 221 |
Designated as Hedging Instrument | Cash Flow Hedges | Sell | Euro | |
Derivative [Line Items] | |
Derivative, Notional Amount | 73 |
Designated as Hedging Instrument | Cash Flow Hedges | Sell | British Pounds | |
Derivative [Line Items] | |
Derivative, Notional Amount | 42 |
Designated as Hedging Instrument | Cash Flow Hedges | Sell | Canadian Dollars | |
Derivative [Line Items] | |
Derivative, Notional Amount | 28 |
Designated as Hedging Instrument | Cash Flow Hedges | Sell | Japanese Yen | |
Derivative [Line Items] | |
Derivative, Notional Amount | 55 |
Designated as Hedging Instrument | Cash Flow Hedges | Sell | Korean Won | |
Derivative [Line Items] | |
Derivative, Notional Amount | 38 |
Derivatives Not Designated as Hedging Instruments | Buy | |
Derivative [Line Items] | |
Derivative, Notional Amount | 150 |
Derivatives Not Designated as Hedging Instruments | Buy | Euro | |
Derivative [Line Items] | |
Derivative, Notional Amount | 85 |
Derivatives Not Designated as Hedging Instruments | Buy | British Pounds | |
Derivative [Line Items] | |
Derivative, Notional Amount | 12 |
Derivatives Not Designated as Hedging Instruments | Buy | Canadian Dollars | |
Derivative [Line Items] | |
Derivative, Notional Amount | 4 |
Derivatives Not Designated as Hedging Instruments | Buy | Australian Dollars | |
Derivative [Line Items] | |
Derivative, Notional Amount | 16 |
Derivatives Not Designated as Hedging Instruments | Buy | Japanese Yen | |
Derivative [Line Items] | |
Derivative, Notional Amount | 5 |
Derivatives Not Designated as Hedging Instruments | Buy | Danish Krone | |
Derivative [Line Items] | |
Derivative, Notional Amount | 17 |
Derivatives Not Designated as Hedging Instruments | Buy | Swiss Franc | |
Derivative [Line Items] | |
Derivative, Notional Amount | 34 |
Derivatives Not Designated as Hedging Instruments | Sell | Malaysian Ringgit | |
Derivative [Line Items] | |
Derivative, Notional Amount | 3 |
Derivatives Not Designated as Hedging Instruments | Sell | Other Currency | |
Derivative [Line Items] | |
Derivative, Notional Amount | $ 20 |
DERIVATIVES, Fair value of deri
DERIVATIVES, Fair value of derivative instruments and Consolidated Balance Sheet location (Details) - USD ($) $ in Millions | Oct. 31, 2017 | Oct. 31, 2016 |
Derivative, Fair Value, Net [Abstract] | ||
Derivative Asset, Fair Value | $ 4 | $ 9 |
Derivative Liability, Fair Value | 6 | 8 |
Derivatives Designated as Hedging Instrument | ||
Derivative, Fair Value, Net [Abstract] | ||
Derivative Asset, Fair Value | 2 | 5 |
Derivative Liability, Fair Value | 2 | 3 |
Derivatives Not Designated as Hedging Instruments | Foreign Exchange Contracts [Member] | Other Current Assets [Member] | ||
Derivative, Fair Value, Net [Abstract] | ||
Derivative Asset, Fair Value | 2 | 4 |
Derivatives Not Designated as Hedging Instruments | Foreign Exchange Contracts [Member] | Other Accrued Liabilities [Member] | ||
Derivative, Fair Value, Net [Abstract] | ||
Derivative Liability, Fair Value | 4 | 5 |
Cash Flow Hedges | Derivatives Designated as Hedging Instrument | Foreign Exchange Contracts [Member] | Other Current Assets [Member] | ||
Derivative, Fair Value, Net [Abstract] | ||
Derivative Asset, Fair Value | 2 | 5 |
Cash Flow Hedges | Derivatives Designated as Hedging Instrument | Foreign Exchange Contracts [Member] | Other Accrued Liabilities [Member] | ||
Derivative, Fair Value, Net [Abstract] | ||
Derivative Liability, Fair Value | $ 2 | $ 3 |
DERIVATIVES, Effect of derivati
DERIVATIVES, Effect of derivative instruments on Consolidated Statement of Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2015 | |
Derivative [Line Items] | |||
Gain (loss) recognized in accumulated other comprehensive income(loss) | $ 0 | $ (10) | |
Foreign Currency Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months | 0 | ||
Derivatives Not Designated as Hedging Instruments | Other income (expense) [Member] | |||
Derivative [Line Items] | |||
Gain (loss) recognized in other income (expense), net within continuing operations | 5 | 1 | $ (21) |
Cash Flow Hedges | Derivatives Designated as Hedging Instrument | Foreign Exchange Contracts [Member] | Other Comprehensive Income (Loss) [Member] | |||
Derivative [Line Items] | |||
Loss on interest rate swaps recognized in other comprehensive income | 0 | (9) | 0 |
Cash Flow Hedges | Derivatives Designated as Hedging Instrument | Foreign Exchange Contracts [Member] | Accumulated Other Comprehensive Income (Loss) | |||
Derivative [Line Items] | |||
Gain (loss) recognized in accumulated other comprehensive income(loss) | 0 | (1) | 11 |
Cash Flow Hedges | Derivatives Designated as Hedging Instrument | Foreign Exchange Contracts [Member] | Cost of Sales [Member] | |||
Derivative [Line Items] | |||
Gain(loss reclassified from accumulated other comprehensive income (loss) into cost of sales | $ 1 | $ (3) | $ 18 |
RETIREMENT PLANS AND POST RET78
RETIREMENT PLANS AND POST RETIREMENT PENSION PLANS Defined Contribution (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2015 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Employer matching contribution in the 401(k) plan (in hundredths) | 6.00% | ||
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 50.00% | ||
Defined Contribution Plan, Cost Recognized | $ 33 | $ 24 | $ 14 |
401(k) additional company contribution | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Employer matching contribution in the 401(k) plan (in hundredths) | 4.00% | ||
Minimum [Member] | 401(k) additional company contribution | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Employer matching contribution in the 401(k) plan (in hundredths) | 3.00% | ||
Maximum [Member] | 401(k) additional company contribution | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Employer matching contribution in the 401(k) plan (in hundredths) | 5.00% | ||
Deferred Profit Sharing [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | $ 156 | $ 157 |
RETIREMENT PLANS AND POST RET79
RETIREMENT PLANS AND POST RETIREMENT PENSION PLANS, JWPIL (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Settlement gain | $ 32 | $ 1 | $ 0 |
Non-U.S. Defined Benefit Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Settlement gain | (32) | 0 | 0 |
Benefit Obligation | 935 | 1,002 | 900 |
Fair Value of Plan Assets | 855 | $ 774 | $ 778 |
JAPAN | Non-U.S. Defined Benefit Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Settlement gain | 32 | ||
Benefit Obligation | 65 | ||
Fair Value of Plan Assets | 24 | ||
JAPAN | Non-U.S. Defined Benefit Plans | Difference Between Fair Values of the Obligation Settled and Assets Transferred [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Settlement gain | 41 | ||
JAPAN | Accumulated Other Comprehensive Income (Loss) | Non-U.S. Defined Benefit Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Settlement gain | 9 | ||
Future net gain due to settlements related to refund amount from JWPIL | $ 5.2 |
RETIREMENT PLANS AND POST RET80
RETIREMENT PLANS AND POST RETIREMENT PENSION PLANS, Components of Net Periodic Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Pension curtailment gain | $ 0 | $ 15 | $ 0 |
Pension settlement gain related to U.S Supplemental Benefit Plan | 1 | ||
Other changes in plan assets and benefit obligations recognized in other comprehensive (income) loss [Abstract] | |||
Net actuarial (gain) loss | (116) | 171 | |
Amortization of net actuarial loss | (59) | (43) | |
Prior service cost (benefit) | 0 | 6 | |
Amortization of prior service benefit | (9) | (29) | |
Gain due to settlement | (32) | (1) | 0 |
United States Defined Benefit Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension curtailment gain | 15 | ||
Net periodic benefit cost (benefit) [Abstract] | |||
Service cost - benefits earned during the period | 0 | 12 | 25 |
Interest cost on benefit obligation | 15 | 16 | 14 |
Expected return on plan assets | (25) | (25) | (27) |
Amortization of net actuarial loss | 3 | 3 | 3 |
Amortization of prior service benefit | 0 | (3) | (5) |
Total periodic benefit cost (benefit) | (7) | 3 | 10 |
Curtaliment and settlement gain | 0 | 16 | 0 |
Other changes in plan assets and benefit obligations recognized in other comprehensive (income) loss [Abstract] | |||
Net actuarial (gain) loss | (19) | 22 | 44 |
Amortization of net actuarial loss | (3) | (3) | (3) |
Prior service cost (benefit) | 0 | 15 | 0 |
Amortization of prior service benefit | 0 | 3 | 5 |
Gain due to settlement | 0 | 0 | 0 |
Foreign currency | 0 | 0 | 0 |
Total recognized in other comprehensive (income) loss | (22) | 37 | 46 |
Total recognized in net periodic benefit cost (benefit) and other comprehensive (income) loss | (29) | 24 | 56 |
Non-U.S. Defined Benefit Plans | |||
Net periodic benefit cost (benefit) [Abstract] | |||
Service cost - benefits earned during the period | 19 | 19 | 18 |
Interest cost on benefit obligation | 12 | 16 | 23 |
Expected return on plan assets | (41) | (44) | (42) |
Amortization of net actuarial loss | 36 | 27 | 25 |
Amortization of prior service benefit | 0 | 0 | 0 |
Total periodic benefit cost (benefit) | 26 | 18 | 24 |
Curtaliment and settlement gain | 32 | 0 | 0 |
Other changes in plan assets and benefit obligations recognized in other comprehensive (income) loss [Abstract] | |||
Net actuarial (gain) loss | (128) | 149 | 32 |
Amortization of net actuarial loss | (36) | (27) | (25) |
Prior service cost (benefit) | 0 | 0 | 0 |
Amortization of prior service benefit | 0 | 0 | 0 |
Gain due to settlement | 32 | 0 | 0 |
Foreign currency | 2 | (3) | 10 |
Total recognized in other comprehensive (income) loss | (130) | 119 | 17 |
Total recognized in net periodic benefit cost (benefit) and other comprehensive (income) loss | (136) | 137 | 41 |
United States Postretirement Benefit Plans | |||
Net periodic benefit cost (benefit) [Abstract] | |||
Service cost - benefits earned during the period | 1 | 1 | 2 |
Interest cost on benefit obligation | 3 | 4 | 4 |
Expected return on plan assets | (7) | (7) | (8) |
Amortization of net actuarial loss | 11 | 10 | 6 |
Amortization of prior service benefit | (9) | (10) | (12) |
Total periodic benefit cost (benefit) | (1) | (2) | (8) |
Curtaliment and settlement gain | 0 | 0 | 0 |
Other changes in plan assets and benefit obligations recognized in other comprehensive (income) loss [Abstract] | |||
Net actuarial (gain) loss | (9) | 3 | 16 |
Amortization of net actuarial loss | (11) | (10) | (6) |
Prior service cost (benefit) | 9 | (7) | 0 |
Amortization of prior service benefit | 0 | 10 | 12 |
Gain due to settlement | 0 | 0 | 0 |
Foreign currency | 0 | 0 | 0 |
Total recognized in other comprehensive (income) loss | (11) | (4) | 22 |
Total recognized in net periodic benefit cost (benefit) and other comprehensive (income) loss | $ (12) | $ (6) | $ 14 |
RETIREMENT PLANS AND POST RET81
RETIREMENT PLANS AND POST RETIREMENT PENSION PLANS, Funded Status (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2015 | |
United States Defined Benefit Plans | |||
Change in fair value of plan assets: [Roll Forward] | |||
Balance, beginning of year | $ 341 | $ 347 | |
Actual return on plan assets | 66 | 13 | |
Employer contributions | 25 | 0 | |
Participants' contributions | 0 | 0 | |
Benefits paid | (18) | (19) | |
Settlements | 0 | 0 | |
Currency impact | 0 | 0 | |
Balance, end of year | 414 | 341 | $ 347 |
Change in benefit obligation: [Roll Forward] | |||
Balance, Beginning of year | 434 | 415 | |
Service cost | 0 | 12 | 25 |
Interest cost | 15 | 16 | 14 |
Plan amendment | 0 | 0 | |
Actuarial (gain) loss | 15 | 41 | |
Benefits paid | 19 | 20 | |
Curtailments | 0 | 30 | |
Settlements | 0 | 0 | |
Currency impact | 0 | 0 | |
Balance, end of year | 445 | 434 | 415 |
Funded status of plan [Abstract] | |||
Funded status of plan | (31) | (93) | |
Non-U.S. Defined Benefit Plans | |||
Change in fair value of plan assets: [Roll Forward] | |||
Balance, beginning of year | 774 | 778 | |
Actual return on plan assets | 81 | 25 | |
Employer contributions | 21 | 24 | |
Participants' contributions | 0 | 1 | |
Benefits paid | (23) | (27) | |
Settlements | (26) | 0 | |
Currency impact | 28 | (27) | |
Balance, end of year | 855 | 774 | 778 |
Change in benefit obligation: [Roll Forward] | |||
Balance, Beginning of year | 1,002 | 900 | |
Service cost | 19 | 19 | 18 |
Interest cost | 12 | 16 | 23 |
Plan amendment | (1) | 0 | |
Actuarial (gain) loss | (43) | 130 | |
Benefits paid | 22 | 27 | |
Curtailments | 0 | 0 | |
Settlements | 70 | 0 | |
Currency impact | 38 | (37) | |
Balance, end of year | 935 | 1,002 | 900 |
Funded status of plan [Abstract] | |||
Funded status of plan | (80) | (228) | |
United States Postretirement Benefit Plans | |||
Change in fair value of plan assets: [Roll Forward] | |||
Balance, beginning of year | 88 | 91 | |
Actual return on plan assets | 14 | 3 | |
Employer contributions | 0 | 0 | |
Participants' contributions | 0 | 0 | |
Benefits paid | (7) | (6) | |
Settlements | 0 | 0 | |
Currency impact | 0 | 0 | |
Balance, end of year | 95 | 88 | 91 |
Change in benefit obligation: [Roll Forward] | |||
Balance, Beginning of year | 103 | 112 | |
Service cost | 1 | 1 | 2 |
Interest cost | 3 | 4 | 4 |
Plan amendment | 0 | (7) | |
Actuarial (gain) loss | (3) | (1) | |
Benefits paid | 7 | 6 | |
Curtailments | 0 | 0 | |
Settlements | 0 | 0 | |
Currency impact | 0 | 0 | |
Balance, end of year | 97 | 103 | $ 112 |
Funded status of plan [Abstract] | |||
Funded status of plan | $ (2) | $ (15) |
RETIREMENT PLANS AND POST RET82
RETIREMENT PLANS AND POST RETIREMENT PENSION PLANS, Financial Statement Location (Details) - USD ($) $ in Millions | 12 Months Ended | |
Oct. 31, 2017 | Oct. 31, 2016 | |
United States Defined Benefit Plans | ||
Amounts recognized in the consolidated balance sheet | ||
Other assets | $ 0 | $ 0 |
Employee compensation and benefits | (1) | (1) |
Retirement and post-retirement benefits | (30) | (92) |
Net asset (liability) | (31) | (93) |
Amounts Recognized in Accumulated Other Comprehensive Income (loss): [Abstract] | ||
Actuarial (gains) losses | (65) | (93) |
Prior service costs (benefits) | 0 | 0 |
Total | 65 | 93 |
Accumulated other comprehensive income expected to be recognized as components of net expense during the next fiscal year [Abstract] | ||
Amortization of net prior service cost (benefit) | 0 | |
Amortization of actuarial net loss (gain) | 1 | |
Non-U.S. Defined Benefit Plans | ||
Amounts recognized in the consolidated balance sheet | ||
Other assets | 86 | 1 |
Employee compensation and benefits | 0 | 0 |
Retirement and post-retirement benefits | (166) | (229) |
Net asset (liability) | (80) | (228) |
Amounts Recognized in Accumulated Other Comprehensive Income (loss): [Abstract] | ||
Actuarial (gains) losses | (243) | (375) |
Prior service costs (benefits) | (1) | 0 |
Total | 242 | 375 |
Accumulated other comprehensive income expected to be recognized as components of net expense during the next fiscal year [Abstract] | ||
Amortization of net prior service cost (benefit) | 0 | |
Amortization of actuarial net loss (gain) | 29 | |
United States Postretirement Benefit Plans | ||
Amounts recognized in the consolidated balance sheet | ||
Other assets | 0 | 0 |
Employee compensation and benefits | 0 | 0 |
Retirement and post-retirement benefits | (2) | (15) |
Net asset (liability) | (2) | (15) |
Amounts Recognized in Accumulated Other Comprehensive Income (loss): [Abstract] | ||
Actuarial (gains) losses | (20) | (41) |
Prior service costs (benefits) | (28) | (37) |
Total | (8) | $ 4 |
Accumulated other comprehensive income expected to be recognized as components of net expense during the next fiscal year [Abstract] | ||
Amortization of net prior service cost (benefit) | (8) | |
Amortization of actuarial net loss (gain) | $ 8 |
RETIREMENT PLANS AND POST RET83
RETIREMENT PLANS AND POST RETIREMENT PENSION PLANS RETIREMENT PLANS AND POST RETIREMENT PENSION PLANS, Target Allocations (Details) | 12 Months Ended | |
Oct. 31, 2017 | Oct. 31, 2016 | |
Non-U.S. Defined Benefit Plans | Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation Percentage of Plan Assets, minimum range | 37.00% | |
Target Allocation Percentage of Plan Assets, maximum range | 60.00% | |
Non-U.S. Defined Benefit Plans | Fixed Income Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation Percentage of Plan Assets, minimum range | 37.00% | |
Target Allocation Percentage of Plan Assets, maximum range | 60.00% | |
Non-U.S. Defined Benefit Plans | Real Estate Investment [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation Percentage of Plan Assets, minimum range | 0.00% | |
Target Allocation Percentage of Plan Assets, maximum range | 25.00% | |
Non-U.S. Defined Benefit Plans | Cash [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation Percentage of Plan Assets, minimum range | 0.00% | |
Target Allocation Percentage of Plan Assets, maximum range | 7.00% | |
United States Defined Benefit Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan Us Portfolio Equity Securities Percentage Of Alternative Investments | 5.00% | 5.00% |
United States Defined Benefit Plans | Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation Percentage of Plan Assets | 80.00% | 80.00% |
United States Defined Benefit Plans | Fixed Income Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation Percentage of Plan Assets | 20.00% | 20.00% |
United States Postretirement Benefit Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan Us Portfolio Equity Securities Percentage Of Alternative Investments | 5.00% | 5.00% |
United States Postretirement Benefit Plans | Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation Percentage of Plan Assets | 80.00% | 80.00% |
United States Postretirement Benefit Plans | Fixed Income Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation Percentage of Plan Assets | 20.00% | 20.00% |
Deferred Profit Sharing [Member] | Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation Percentage of Plan Assets | 60.00% | 60.00% |
Deferred Profit Sharing [Member] | Fixed Income Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation Percentage of Plan Assets | 40.00% | 40.00% |
RETIREMENT PLANS AND POST RET84
RETIREMENT PLANS AND POST RETIREMENT PENSION PLANS, Fair Value of Plan Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Oct. 31, 2017 | Oct. 31, 2016 | |
United States Defined Benefit Plans | ||
Fair value of plan assets [Abstract] | ||
Defined Benefit Plan, Assets for Plan Benefits | $ 414 | $ 341 |
Net asset value excluded from fair value by input | 280 | 228 |
Defined Benefit plan, change in fair value of plan assets, significant unobservable inputs (Level 3) (Roll Forward] | ||
Balance, beginning of year | 9 | 9 |
Realized gains/(losses) | (3) | 0 |
Unrealized gains/(losses) | (3) | 3 |
Purchases, sales, issuances, and settlements | (2) | (3) |
Balance, end of year | 7 | 9 |
Projected benefit obligation and fair value of plan assets [Abstract] | ||
Fair value of plan assets in excess of projected benefit obligation - aggregate benefit obligation | 0 | 0 |
Total projected benefit obligation - aggregate benefit obligation | 445 | 434 |
Fair value of plan assets in excess of benefit obligation - aggregate fair value of plan assets | 0 | 0 |
Total projected benefit obligation - aggregate fair value of plan assets | 414 | 341 |
Accumulated benefit obligation and fair value of plan assets | ||
Total accumulated benefit obligation - aggregate benefit obligation | 445 | 434 |
Fair value of plan assets in excess of accumulated benefit obligation - aggregate fair value of plan assets | 0 | |
Total accumulated benefit obligation - aggregate fair value of plan assets | 414 | 341 |
United States Defined Benefit Plans | Cash and Cash Equivalents [Member] | ||
Fair value of plan assets [Abstract] | ||
Defined Benefit Plan, Assets for Plan Benefits | 4 | 4 |
Net asset value excluded from fair value by input | 3 | 4 |
United States Defined Benefit Plans | Equity Securities [Member] | ||
Fair value of plan assets [Abstract] | ||
Defined Benefit Plan, Assets for Plan Benefits | 327 | 248 |
Net asset value excluded from fair value by input | 239 | 186 |
United States Defined Benefit Plans | Fixed Income Funds [Member] | ||
Fair value of plan assets [Abstract] | ||
Defined Benefit Plan, Assets for Plan Benefits | 76 | 80 |
Net asset value excluded from fair value by input | 38 | 38 |
United States Defined Benefit Plans | Other Plan Assets [Member] | ||
Fair value of plan assets [Abstract] | ||
Defined Benefit Plan, Assets for Plan Benefits | 7 | 9 |
Net asset value excluded from fair value by input | 0 | 0 |
United States Defined Benefit Plans | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair value of plan assets [Abstract] | ||
Defined Benefit Plan, Assets for Plan Benefits | 127 | 104 |
United States Defined Benefit Plans | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Cash and Cash Equivalents [Member] | ||
Fair value of plan assets [Abstract] | ||
Defined Benefit Plan, Assets for Plan Benefits | 1 | 0 |
United States Defined Benefit Plans | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Equity Securities [Member] | ||
Fair value of plan assets [Abstract] | ||
Defined Benefit Plan, Assets for Plan Benefits | 88 | 62 |
United States Defined Benefit Plans | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fixed Income Funds [Member] | ||
Fair value of plan assets [Abstract] | ||
Defined Benefit Plan, Assets for Plan Benefits | 38 | 42 |
United States Defined Benefit Plans | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Other Plan Assets [Member] | ||
Fair value of plan assets [Abstract] | ||
Defined Benefit Plan, Assets for Plan Benefits | 0 | 0 |
United States Defined Benefit Plans | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair value of plan assets [Abstract] | ||
Defined Benefit Plan, Assets for Plan Benefits | 0 | 0 |
United States Defined Benefit Plans | Significant Other Observable Inputs (Level 2) [Member] | Cash and Cash Equivalents [Member] | ||
Fair value of plan assets [Abstract] | ||
Defined Benefit Plan, Assets for Plan Benefits | 0 | 0 |
United States Defined Benefit Plans | Significant Other Observable Inputs (Level 2) [Member] | Equity Securities [Member] | ||
Fair value of plan assets [Abstract] | ||
Defined Benefit Plan, Assets for Plan Benefits | 0 | 0 |
United States Defined Benefit Plans | Significant Other Observable Inputs (Level 2) [Member] | Fixed Income Funds [Member] | ||
Fair value of plan assets [Abstract] | ||
Defined Benefit Plan, Assets for Plan Benefits | 0 | 0 |
United States Defined Benefit Plans | Significant Other Observable Inputs (Level 2) [Member] | Other Plan Assets [Member] | ||
Fair value of plan assets [Abstract] | ||
Defined Benefit Plan, Assets for Plan Benefits | 0 | 0 |
United States Defined Benefit Plans | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair value of plan assets [Abstract] | ||
Defined Benefit Plan, Assets for Plan Benefits | 7 | 9 |
Defined Benefit plan, change in fair value of plan assets, significant unobservable inputs (Level 3) (Roll Forward] | ||
Transfers in (out) | 0 | 0 |
United States Defined Benefit Plans | Significant Unobservable Inputs (Level 3) [Member] | Cash and Cash Equivalents [Member] | ||
Fair value of plan assets [Abstract] | ||
Defined Benefit Plan, Assets for Plan Benefits | 0 | 0 |
United States Defined Benefit Plans | Significant Unobservable Inputs (Level 3) [Member] | Equity Securities [Member] | ||
Fair value of plan assets [Abstract] | ||
Defined Benefit Plan, Assets for Plan Benefits | 0 | 0 |
United States Defined Benefit Plans | Significant Unobservable Inputs (Level 3) [Member] | Fixed Income Funds [Member] | ||
Fair value of plan assets [Abstract] | ||
Defined Benefit Plan, Assets for Plan Benefits | 0 | 0 |
United States Defined Benefit Plans | Significant Unobservable Inputs (Level 3) [Member] | Other Plan Assets [Member] | ||
Fair value of plan assets [Abstract] | ||
Defined Benefit Plan, Assets for Plan Benefits | 7 | 9 |
United States Postretirement Benefit Plans | ||
Fair value of plan assets [Abstract] | ||
Defined Benefit Plan, Assets for Plan Benefits | 95 | 88 |
Net asset value excluded from fair value by input | 59 | 55 |
Defined Benefit plan, change in fair value of plan assets, significant unobservable inputs (Level 3) (Roll Forward] | ||
Balance, beginning of year | 5 | 6 |
Realized gains/(losses) | (2) | 0 |
Unrealized gains/(losses) | (2) | 1 |
Purchases, sales, issuances, and settlements | (1) | (2) |
Balance, end of year | 4 | 5 |
United States Postretirement Benefit Plans | Cash and Cash Equivalents [Member] | ||
Fair value of plan assets [Abstract] | ||
Defined Benefit Plan, Assets for Plan Benefits | 6 | 3 |
Net asset value excluded from fair value by input | 1 | 1 |
United States Postretirement Benefit Plans | Equity Securities [Member] | ||
Fair value of plan assets [Abstract] | ||
Defined Benefit Plan, Assets for Plan Benefits | 68 | 59 |
Net asset value excluded from fair value by input | 50 | 44 |
United States Postretirement Benefit Plans | Fixed Income Funds [Member] | ||
Fair value of plan assets [Abstract] | ||
Defined Benefit Plan, Assets for Plan Benefits | 17 | 21 |
Net asset value excluded from fair value by input | 8 | 10 |
United States Postretirement Benefit Plans | Other Plan Assets [Member] | ||
Fair value of plan assets [Abstract] | ||
Defined Benefit Plan, Assets for Plan Benefits | 4 | 5 |
Net asset value excluded from fair value by input | 0 | 0 |
United States Postretirement Benefit Plans | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair value of plan assets [Abstract] | ||
Defined Benefit Plan, Assets for Plan Benefits | 32 | 28 |
United States Postretirement Benefit Plans | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Cash and Cash Equivalents [Member] | ||
Fair value of plan assets [Abstract] | ||
Defined Benefit Plan, Assets for Plan Benefits | 5 | 2 |
United States Postretirement Benefit Plans | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Equity Securities [Member] | ||
Fair value of plan assets [Abstract] | ||
Defined Benefit Plan, Assets for Plan Benefits | 18 | 15 |
United States Postretirement Benefit Plans | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fixed Income Funds [Member] | ||
Fair value of plan assets [Abstract] | ||
Defined Benefit Plan, Assets for Plan Benefits | 9 | 11 |
United States Postretirement Benefit Plans | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Other Plan Assets [Member] | ||
Fair value of plan assets [Abstract] | ||
Defined Benefit Plan, Assets for Plan Benefits | 0 | 0 |
United States Postretirement Benefit Plans | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair value of plan assets [Abstract] | ||
Defined Benefit Plan, Assets for Plan Benefits | 0 | 0 |
United States Postretirement Benefit Plans | Significant Other Observable Inputs (Level 2) [Member] | Cash and Cash Equivalents [Member] | ||
Fair value of plan assets [Abstract] | ||
Defined Benefit Plan, Assets for Plan Benefits | 0 | 0 |
United States Postretirement Benefit Plans | Significant Other Observable Inputs (Level 2) [Member] | Equity Securities [Member] | ||
Fair value of plan assets [Abstract] | ||
Defined Benefit Plan, Assets for Plan Benefits | 0 | 0 |
United States Postretirement Benefit Plans | Significant Other Observable Inputs (Level 2) [Member] | Fixed Income Funds [Member] | ||
Fair value of plan assets [Abstract] | ||
Defined Benefit Plan, Assets for Plan Benefits | 0 | 0 |
United States Postretirement Benefit Plans | Significant Other Observable Inputs (Level 2) [Member] | Other Plan Assets [Member] | ||
Fair value of plan assets [Abstract] | ||
Defined Benefit Plan, Assets for Plan Benefits | 0 | 0 |
United States Postretirement Benefit Plans | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair value of plan assets [Abstract] | ||
Defined Benefit Plan, Assets for Plan Benefits | 4 | 5 |
Defined Benefit plan, change in fair value of plan assets, significant unobservable inputs (Level 3) (Roll Forward] | ||
Transfers in (out) | 0 | 0 |
United States Postretirement Benefit Plans | Significant Unobservable Inputs (Level 3) [Member] | Cash and Cash Equivalents [Member] | ||
Fair value of plan assets [Abstract] | ||
Defined Benefit Plan, Assets for Plan Benefits | 0 | 0 |
United States Postretirement Benefit Plans | Significant Unobservable Inputs (Level 3) [Member] | Equity Securities [Member] | ||
Fair value of plan assets [Abstract] | ||
Defined Benefit Plan, Assets for Plan Benefits | 0 | 0 |
United States Postretirement Benefit Plans | Significant Unobservable Inputs (Level 3) [Member] | Fixed Income Funds [Member] | ||
Fair value of plan assets [Abstract] | ||
Defined Benefit Plan, Assets for Plan Benefits | 0 | 0 |
United States Postretirement Benefit Plans | Significant Unobservable Inputs (Level 3) [Member] | Other Plan Assets [Member] | ||
Fair value of plan assets [Abstract] | ||
Defined Benefit Plan, Assets for Plan Benefits | 4 | 5 |
Non-U.S. Defined Benefit Plans | ||
Fair value of plan assets [Abstract] | ||
Defined Benefit Plan, Assets for Plan Benefits | 855 | 774 |
Net asset value excluded from fair value by input | 203 | 180 |
Projected benefit obligation and fair value of plan assets [Abstract] | ||
Total projected benefit obligation - aggregate benefit obligation | 935 | 1,002 |
Total projected benefit obligation - aggregate fair value of plan assets | 855 | 774 |
Accumulated benefit obligation and fair value of plan assets | ||
Total accumulated benefit obligation - aggregate benefit obligation | 904 | 963 |
Total accumulated benefit obligation - aggregate fair value of plan assets | 855 | 774 |
Non-U.S. Defined Benefit Plans | Cash and Cash Equivalents [Member] | ||
Fair value of plan assets [Abstract] | ||
Defined Benefit Plan, Assets for Plan Benefits | 8 | 26 |
Net asset value excluded from fair value by input | 0 | 0 |
Non-U.S. Defined Benefit Plans | Equity Securities [Member] | ||
Fair value of plan assets [Abstract] | ||
Defined Benefit Plan, Assets for Plan Benefits | 539 | 422 |
Net asset value excluded from fair value by input | 185 | 160 |
Non-U.S. Defined Benefit Plans | Fixed Income Funds [Member] | ||
Fair value of plan assets [Abstract] | ||
Defined Benefit Plan, Assets for Plan Benefits | 307 | 325 |
Net asset value excluded from fair value by input | 18 | 20 |
Non-U.S. Defined Benefit Plans | Other Plan Assets [Member] | ||
Fair value of plan assets [Abstract] | ||
Defined Benefit Plan, Assets for Plan Benefits | 1 | 1 |
Net asset value excluded from fair value by input | 0 | 0 |
Non-U.S. Defined Benefit Plans | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair value of plan assets [Abstract] | ||
Defined Benefit Plan, Assets for Plan Benefits | 386 | 340 |
Non-U.S. Defined Benefit Plans | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Cash and Cash Equivalents [Member] | ||
Fair value of plan assets [Abstract] | ||
Defined Benefit Plan, Assets for Plan Benefits | 0 | 18 |
Non-U.S. Defined Benefit Plans | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Equity Securities [Member] | ||
Fair value of plan assets [Abstract] | ||
Defined Benefit Plan, Assets for Plan Benefits | 326 | 239 |
Non-U.S. Defined Benefit Plans | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fixed Income Funds [Member] | ||
Fair value of plan assets [Abstract] | ||
Defined Benefit Plan, Assets for Plan Benefits | 60 | 83 |
Non-U.S. Defined Benefit Plans | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Other Plan Assets [Member] | ||
Fair value of plan assets [Abstract] | ||
Defined Benefit Plan, Assets for Plan Benefits | 0 | 0 |
Non-U.S. Defined Benefit Plans | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair value of plan assets [Abstract] | ||
Defined Benefit Plan, Assets for Plan Benefits | 266 | 254 |
Non-U.S. Defined Benefit Plans | Significant Other Observable Inputs (Level 2) [Member] | Cash and Cash Equivalents [Member] | ||
Fair value of plan assets [Abstract] | ||
Defined Benefit Plan, Assets for Plan Benefits | 8 | 8 |
Non-U.S. Defined Benefit Plans | Significant Other Observable Inputs (Level 2) [Member] | Equity Securities [Member] | ||
Fair value of plan assets [Abstract] | ||
Defined Benefit Plan, Assets for Plan Benefits | 28 | 23 |
Non-U.S. Defined Benefit Plans | Significant Other Observable Inputs (Level 2) [Member] | Fixed Income Funds [Member] | ||
Fair value of plan assets [Abstract] | ||
Defined Benefit Plan, Assets for Plan Benefits | 229 | 222 |
Non-U.S. Defined Benefit Plans | Significant Other Observable Inputs (Level 2) [Member] | Other Plan Assets [Member] | ||
Fair value of plan assets [Abstract] | ||
Defined Benefit Plan, Assets for Plan Benefits | 1 | 1 |
Non-U.S. Defined Benefit Plans | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair value of plan assets [Abstract] | ||
Defined Benefit Plan, Assets for Plan Benefits | 0 | 0 |
Non-U.S. Defined Benefit Plans | Significant Unobservable Inputs (Level 3) [Member] | Cash and Cash Equivalents [Member] | ||
Fair value of plan assets [Abstract] | ||
Defined Benefit Plan, Assets for Plan Benefits | 0 | 0 |
Non-U.S. Defined Benefit Plans | Significant Unobservable Inputs (Level 3) [Member] | Equity Securities [Member] | ||
Fair value of plan assets [Abstract] | ||
Defined Benefit Plan, Assets for Plan Benefits | 0 | 0 |
Non-U.S. Defined Benefit Plans | Significant Unobservable Inputs (Level 3) [Member] | Fixed Income Funds [Member] | ||
Fair value of plan assets [Abstract] | ||
Defined Benefit Plan, Assets for Plan Benefits | 0 | 0 |
Non-U.S. Defined Benefit Plans | Significant Unobservable Inputs (Level 3) [Member] | Other Plan Assets [Member] | ||
Fair value of plan assets [Abstract] | ||
Defined Benefit Plan, Assets for Plan Benefits | 0 | 0 |
Continuing Operations | United States Defined Benefit Plans | ||
Projected benefit obligation and fair value of plan assets [Abstract] | ||
Projected benefit obligation in excess of plan assets - aggregate benefit obligation | 445 | 434 |
Projected benefit obligation in excess of fair value of plan assets - aggregate fair value of plan assets | 414 | 341 |
Accumulated benefit obligation and fair value of plan assets | ||
Accumulated benefit obligation in excess of fair value of plan assets - aggregate benefit obligation | 445 | 434 |
Fair value of plan assets in excess of accumulated benefit obligation - aggregate benefit obligation | 0 | 0 |
Accumulated benefit obligation in excess of accumulated benefit obligation - aggregate fair value of plan assets | 414 | 341 |
Fair value of plan assets in excess of accumulated benefit obligation - aggregate fair value of plan assets | 0 | |
Continuing Operations | Non-U.S. Defined Benefit Plans | ||
Projected benefit obligation and fair value of plan assets [Abstract] | ||
Projected benefit obligation in excess of plan assets - aggregate benefit obligation | 563 | 970 |
Fair value of plan assets in excess of projected benefit obligation - aggregate benefit obligation | 372 | 32 |
Projected benefit obligation in excess of fair value of plan assets - aggregate fair value of plan assets | 397 | 741 |
Fair value of plan assets in excess of benefit obligation - aggregate fair value of plan assets | 458 | 33 |
Accumulated benefit obligation and fair value of plan assets | ||
Accumulated benefit obligation in excess of fair value of plan assets - aggregate benefit obligation | 539 | 737 |
Fair value of plan assets in excess of accumulated benefit obligation - aggregate benefit obligation | 365 | 226 |
Accumulated benefit obligation in excess of accumulated benefit obligation - aggregate fair value of plan assets | 397 | 542 |
Fair value of plan assets in excess of accumulated benefit obligation - aggregate fair value of plan assets | $ 458 | $ 232 |
RETIREMENT PLANS AND POST RET85
RETIREMENT PLANS AND POST RETIREMENT PENSION PLANS, Expected Benefit Payments (Details) $ in Millions | 12 Months Ended |
Oct. 31, 2017USD ($) | |
United States Defined Benefit Plans | |
Future benefit payments [Abstract] | |
2,018 | $ 29 |
2,019 | 28 |
2,020 | 31 |
2,021 | 29 |
2,022 | 30 |
2023 - 2027 | 145 |
Non-U.S. Defined Benefit Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year | 22 |
Future benefit payments [Abstract] | |
2,018 | 23 |
2,019 | 25 |
2,020 | 26 |
2,021 | 29 |
2,022 | 32 |
2023 - 2027 | 176 |
United States Postretirement Benefit Plans | |
Future benefit payments [Abstract] | |
2,018 | 8 |
2,019 | 8 |
2,020 | 8 |
2,021 | 7 |
2,022 | 7 |
2023 - 2027 | $ 34 |
RETIREMENT PLANS AND POST RET86
RETIREMENT PLANS AND POST RETIREMENT PENSION PLANS, Assumptions (Details) | 12 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2015 | |
United States Defined Benefit Plans | |||
Assumptions used to calculate the net periodic cost | |||
Discount rate (in hundredths) | 3.75% | 4.20% | 4.00% |
Average increase in compensation levels (in hundredths) | 0.00% | 3.50% | 3.50% |
Expected long-term return on assets (in hundredths) | 7.25% | 7.50% | 8.00% |
Assumptions used to calculate the benefit obligation | |||
Discount rate (in hundredths) | 3.75% | 3.75% | |
United States Postretirement Benefit Plans | |||
Assumptions used to calculate the net periodic cost | |||
Discount rate (in hundredths) | 3.50% | 4.00% | 4.00% |
Expected long-term return on assets (in hundredths) | 7.25% | 7.50% | 8.00% |
Current medical cost trend rate (in hundredths) | 6.00% | 7.00% | 8.00% |
Ultimate medical cost trend rate (in hundredths) | 3.50% | 3.50% | 3.50% |
Medical cost trend rate decreases to ultimate rate in year | 2,029 | 2,029 | 2,028 |
Assumptions used to calculate the benefit obligation | |||
Discount rate (in hundredths) | 3.50% | 3.50% | |
Current medical cost trend rate - benefit obligation (in hundredths) | 6.00% | 6.00% | |
Ultimate medical cost trend rate - benefit obligation (in hundredths) | 3.50% | 3.50% | |
Medical cost trend rate decreases to ultimate rate in year - benefit obligation | 2,029 | 2,029 | |
Minimum [Member] | Non-U.S. Defined Benefit Plans | |||
Assumptions used to calculate the net periodic cost | |||
Discount rate (in hundredths) | 0.22% | 0.77% | 1.50% |
Average increase in compensation levels (in hundredths) | 2.00% | 2.25% | 2.50% |
Expected long-term return on assets (in hundredths) | 4.00% | 4.25% | 4.00% |
Assumptions used to calculate the benefit obligation | |||
Discount rate (in hundredths) | 0.67% | 0.40% | |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase | 2.00% | 2.00% | |
Maximum [Member] | Non-U.S. Defined Benefit Plans | |||
Assumptions used to calculate the net periodic cost | |||
Discount rate (in hundredths) | 2.66% | 3.76% | 4.00% |
Average increase in compensation levels (in hundredths) | 4.25% | 4.00% | 3.25% |
Expected long-term return on assets (in hundredths) | 6.25% | 6.50% | 6.50% |
Assumptions used to calculate the benefit obligation | |||
Discount rate (in hundredths) | 2.52% | 2.62% | |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase | 3.25% | 4.25% |
GUARANTEES (Details)
GUARANTEES (Details) - USD ($) $ in Millions | 12 Months Ended | |
Oct. 31, 2017 | Oct. 31, 2016 | |
Summary of standard warranty accrual activity | ||
Beginning balance | $ 35 | $ 31 |
Accruals for warranties including change in estimates | 53 | 53 |
Settlements made during the period | (54) | (49) |
Ending balance | 34 | 35 |
Standard Product Warranty Accrual, Balance Sheet Classification [Abstract] | ||
Accruals for warranties due within one year | 33 | 34 |
Accruals for warranties due after one year | $ 1 | $ 1 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2015 | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
Future minimum lease payments 2018 | $ 42 | ||
Future minimum lease payments 2019 | 33 | ||
Future minimum lease payments 2020 | 19 | ||
Future minimum lease payments 2021 | 10 | ||
Future minimum lease payments 2022 | 6 | ||
Future minimum lease payments thereafter | 26 | ||
Operating Leases, Future Minimum Payments Receivable [Abstract] | |||
Future minimum lease income 2018 | 9 | ||
Future minimum lease income 2019 | 9 | ||
Future minimum lease income 2020 | 8 | ||
Future minimum lease income thereafter | 10 | ||
Total rent expense | $ 57 | $ 61 | $ 65 |
SHORT-TERM DEBT - Credit Facili
SHORT-TERM DEBT - Credit Facility and Senior Notes(Details) - USD ($) $ in Millions | Nov. 01, 2017 | Oct. 20, 2014 | Sep. 15, 2014 | Oct. 24, 2007 | Oct. 31, 2017 | Jul. 14, 2017 | Jun. 09, 2015 |
Line of Credit Facility [Abstract] | |||||||
Credit facility initiation date | Sep. 15, 2014 | ||||||
Initial maximum borrowing capacity - credit facility | $ 400 | ||||||
Line of credit facility expiration date | Sep. 15, 2019 | ||||||
Credit facility limit increase | $ 300 | $ 300 | |||||
Maximum borrowing capacity after increase | $ 1,000 | ||||||
Line of credit outstanding balance | $ 110 | ||||||
Line of Credit [Member] | |||||||
Line of Credit Facility [Abstract] | |||||||
Short-term debt terms (years) | five | ||||||
Senior Notes 2017 [Member] | |||||||
2017 Senior Notes [Abstract] | |||||||
Issuance date of debt | Oct. 24, 2007 | ||||||
Debt Instrument, Face Amount | $ 600 | ||||||
Extinguishment of Debt, Amount | $ 500 | ||||||
Subsequent Event [Member] | Senior Notes 2017 [Member] | |||||||
2017 Senior Notes [Abstract] | |||||||
Repayments of senior debt | $ 100 |
LONG-TERM DEBT - Carrying Value
LONG-TERM DEBT - Carrying Value (Details) - USD ($) $ in Millions | Oct. 31, 2017 | Oct. 31, 2016 | Feb. 01, 2016 |
Debt Instrument [Line Items] | |||
Debt Instrument Net Discount Premium Amount | $ 1,790 | $ 1,888 | |
Interest Rate Swap | 11 | 16 | $ 300 |
Long-term Debt, Gross | 1,801 | 1,904 | |
Senior Notes 2017 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument Net Discount Premium Amount | 0 | 100 | |
Interest Rate Swap | 0 | 1 | |
Long-term Debt, Gross | 0 | 101 | |
Senior Notes 2020 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument Net Discount Premium Amount | 499 | 498 | |
Interest Rate Swap | 11 | 15 | |
Long-term Debt, Gross | 510 | 513 | |
Senior Notes 2022 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument Net Discount Premium Amount | 398 | 398 | |
Interest Rate Swap | 0 | 0 | |
Long-term Debt, Gross | 398 | 398 | |
Senior Notes 2023 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument Net Discount Premium Amount | 596 | 595 | |
Interest Rate Swap | 0 | 0 | |
Long-term Debt, Gross | 596 | 595 | |
Senior Notes 2026 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument Net Discount Premium Amount | 297 | 297 | |
Interest Rate Swap | 0 | 0 | |
Long-term Debt, Gross | $ 297 | 297 | |
Adjustments for New Accounting Pronouncement [Member] | Long-term Debt [Member] | |||
Debt Instrument [Line Items] | |||
Decrease related to debt issuance costs | $ 8 |
LONG-TERM DEBT - Senior Notes a
LONG-TERM DEBT - Senior Notes and Mortgage(Details) - USD ($) $ in Millions | Sep. 15, 2016 | Jun. 18, 2013 | Sep. 10, 2012 | Jul. 13, 2010 | Oct. 24, 2007 | Oct. 31, 2017 | Aug. 09, 2011 |
Senior Notes 2017 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Issuance date of debt | Oct. 24, 2007 | ||||||
Aggregate face amount of debt | $ 600 | ||||||
Senior Notes 2020 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Issuance date of debt | Jul. 13, 2010 | ||||||
Aggregate face amount of debt | $ 500 | $ 500 | |||||
Issue rate percentage of principal amount | 99.54% | ||||||
Maturity date | Jul. 15, 2020 | ||||||
Fixed interest rate per annum (in hundredths) | 5.00% | ||||||
Interest payment frequency | semi-annually | ||||||
Date payments commenced | Jan. 15, 2011 | ||||||
Senior Notes 2022 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Issuance date of debt | Sep. 10, 2012 | ||||||
Aggregate face amount of debt | $ 400 | ||||||
Issue rate percentage of principal amount | 99.80% | ||||||
Maturity date | Oct. 1, 2022 | ||||||
Fixed interest rate per annum (in hundredths) | 3.20% | ||||||
Interest payment frequency | semi-annually | ||||||
Date payments commenced | Apr. 1, 2013 | ||||||
Senior Notes 2023 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Issuance date of debt | Jun. 18, 2013 | ||||||
Aggregate face amount of debt | $ 600 | ||||||
Issue rate percentage of principal amount | 99.544% | ||||||
Maturity date | Jul. 15, 2023 | ||||||
Fixed interest rate per annum (in hundredths) | 3.875% | ||||||
Interest payment frequency | semi-annually | ||||||
Date payments commenced | Jan. 15, 2014 | ||||||
Senior Notes 2026 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Issuance date of debt | Sep. 15, 2016 | ||||||
Aggregate face amount of debt | $ 300 | ||||||
Issue rate percentage of principal amount | 99.624% | ||||||
Maturity date | Sep. 22, 2026 | ||||||
Fixed interest rate per annum (in hundredths) | 3.05% | ||||||
Interest payment frequency | semi-annually | ||||||
Date payments commenced | Mar. 22, 2017 | ||||||
Mortgages [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Payment of mortgage debt in full | $ 37 | ||||||
Balance of Mortgage Loans on Real Estate | $ 0 |
LONG-TERM DEBT LONG-TERM DEBT -
LONG-TERM DEBT LONG-TERM DEBT - Other (Details) - USD ($) $ in Millions | Aug. 09, 2011 | Oct. 31, 2017 | Oct. 31, 2016 | Sep. 15, 2016 | Feb. 01, 2016 | Oct. 24, 2007 |
Debt Instrument [Line Items] | ||||||
Interest Rate Swap | $ 11 | $ 16 | $ 300 | |||
Notional Amount Of Terminated Interest Rate Fair Value Hedge Derivatives | $ 10 | |||||
Senior Notes 2017 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest Rate Swap | 0 | $ 1 | ||||
Debt Instrument, Face Amount | $ 600 | |||||
Senior Notes 2020 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest Rate Derivatives Terminated Date | August 9, 2011 | |||||
Notional Amount Of Terminated Interest Rate Fair Value Hedge Derivatives | $ 500 | |||||
Terminated Interest Rate Fair Value Hedge Derivative Assets At Fair Value | $ 34 | |||||
Terminated Interest Rate Fair Value Hedge Asset Unamortized Amount | 11 | |||||
Cash Flow Hedges | Treasury Lock [Member] | Senior Notes 2026 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Remaining gain loss to be amortized on derivative | $ 9 |
STOCKHOLDERS' EQUITY Stock Repu
STOCKHOLDERS' EQUITY Stock Repurchases (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2015 | May 28, 2015 | |
Share Repurchase Program [Line Items] | ||||
Cost to repurchase shares of common stock under share repurchase program | $ 194 | $ 434 | $ 267 | |
Number of treasury shares retired | 294.2 | |||
Aggregate cost of treasury shares retired. | $ 10,700 | |||
2014 Share Repurchase Program [Member] | ||||
Share Repurchase Program [Line Items] | ||||
Weighted average count of diluted shares | 335 | |||
Number of treasury shares acquired | 2.4 | 6 | ||
Cost to repurchase shares of common stock under share repurchase program | $ 98 | $ 267 | ||
2015 Repurchase Program [Member] | ||||
Share Repurchase Program [Line Items] | ||||
Stock Repurchase Program, Authorized Amount | $ 1,140 | |||
Number of treasury shares acquired | 4.1 | 8.3 | ||
Cost to repurchase shares of common stock under share repurchase program | $ 194 | $ 336 | ||
Remaining authorized repurchase amount | 610 | |||
Retained Earnings | ||||
Share Repurchase Program [Line Items] | ||||
Aggregate cost of treasury shares retired. | 6,729 | |||
Additional Paid-in Capital | ||||
Share Repurchase Program [Line Items] | ||||
Aggregate cost of treasury shares retired. | $ 3,970 |
STOCKHOLDERS' EQUITY STOCKHOLDE
STOCKHOLDERS' EQUITY STOCKHOLDERS EQUITY DIvidends (Details) - USD ($) $ / shares in Units, $ in Millions | Nov. 15, 2017 | Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2015 |
Dividends [Abstract] | ||||
Cash Dividends Declared (per common share) | $ 0.528 | $ 0.460 | $ 0.400 | |
Cash dividends declared | $ 170 | $ 150 | $ 133 | |
Aggregate cash dividends paid (per common share) | $ 0.530 | $ 0.460 | $ 0.400 | |
Aggregate cash dividends paid | $ 170 | $ 150 | $ 133 | |
Subsequent Event [Member] | ||||
Dividends [Abstract] | ||||
Cash Dividends Declared (per common share) | $ 0.149 | |||
Cash dividends declared | $ 48 | |||
Dividends Payable, Date Declared | Nov. 15, 2017 | |||
Dividends payment date | Jan. 24, 2018 | |||
Dividends date of record | Jan. 2, 2018 |
STOCKHOLDERS' EQUITY -Accumulat
STOCKHOLDERS' EQUITY -Accumulated other comprehensive income (Details) - USD ($) $ in Millions | Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2015 |
Foreign currency translation, net of $(2) and $(86) of tax expense for 2015 and 2014, respectively | $ (156) | $ (197) | $ (189) |
Unrealized losses on defined benefit plans, net of tax benefit of $126 and $145 for 2015 and 2014, respectively | (188) | (305) | |
Unrealized gains and (losses) on derivative instruments, net of tax expense of $(2) and $(7) for 2015 and 2014, respectively | (2) | (1) | 2 |
Total accumulated other comprehensive income (loss) | (346) | (503) | $ (391) |
Accumulated other Comprehensive Income (Loss), Tax [Abstract] | |||
Foreign currency translation, tax | (8) | (5) | |
Unrealized losses on defined benefit plans, tax | 127 | 176 | |
Unrealized gains (losses) on derivative instruments, tax | $ 2 | $ 2 |
STOCKHOLDERS' EQUITY - Changes
STOCKHOLDERS' EQUITY - Changes in accumulated other comprehensive income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2015 | |
Beginning Balance | $ (503) | $ (391) | |
Other Comprehensive Income (Loss), before Reclassifications | 160 | (180) | |
Amounts Reclassified out of Accumulated Other Comprehensive Income | 49 | 17 | |
Tax (expense) benefit | (52) | 51 | |
Other Comprehensive Income (Loss) | 157 | (112) | $ (389) |
Ending Balance | (346) | (503) | (391) |
Foreign Currency Translation [Abstract] | |||
Beginning Balance | (197) | (189) | |
Other Comprehensive Income (Loss), before Reclassifications | 44 | (5) | |
Amounts Reclassified out of Other Comprehensive Income | 0 | 0 | |
Tax (expense) benefit | (3) | (3) | 24 |
Other Comprehensive Income (Loss) | 41 | (8) | |
Ending Balance | (156) | (197) | (189) |
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss), Net Prior Service Cost (Credit), before Tax [Abstract] | |||
Beginning Balance | 146 | 161 | |
Other Comprehensive (Income) Loss, before Reclassifications | 0 | 6 | |
Amounts Reclassified out of Other Comprehensive Income | (9) | (29) | |
Tax (expense) benefit | 3 | 8 | 6 |
Other Comprehensive (Income) Loss | (6) | (15) | (11) |
Ending Balance | 140 | 146 | 161 |
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss), Net Actuarial Gain (Loss), before Tax [Abstract] | |||
Beginning Balance | (451) | (365) | |
Other Comprehensive Income (Loss), before Reclassifications | 116 | (171) | |
Amounts Reclassified out of Other Comprehensive Income | 59 | 43 | |
Tax (expense) benefit | (52) | 42 | |
Other Comprehensive Income (Loss) | 123 | (86) | (38) |
Ending Balance | (328) | (451) | (365) |
Unrealized Gain (Loss) on Foreign Currency Derivatives, Net, before Tax [Abstract] | |||
Beginning Balance | (1) | 2 | |
Other Comprehensive Income (Loss), before Reclassifications | 0 | (10) | |
Amounts Reclassified out of Other Comprehensive Income | (1) | 3 | |
Tax (expense) benefit | 0 | 4 | |
Other Comprehensive Income (Loss) | (1) | (3) | |
Ending Balance | $ (2) | $ (1) | $ 2 |
STOCKHOLDERS' EQUITY STOCKHOL97
STOCKHOLDERS' EQUITY STOCKHOLDERS' EQUITY - Reclassifications out of accumulated other comprehensive income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2015 | |
Derivative Instruments, Gain Reclassified from Accumulated OCI into Income, Effective Portion | $ 1 | ||
Derivative Instruments, Loss Reclassified from Accumulated OCI into Income, Effective Portion | $ (3) | ||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax | 0 | 0 | $ 6 |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | 1 | (3) | $ 12 |
Other Comprehensive Income Defined Benefit Plan Amortization Of Net Actuarial Loss | (59) | (43) | |
Amortization of prior service benefit | (9) | (29) | |
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, before Tax | (50) | (14) | |
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, Tax | 14 | 4 | |
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, Net of Tax | (36) | (10) | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | $ (35) | $ (13) |
SEGMENT INFORMATION Profitabili
SEGMENT INFORMATION Profitability (Details) $ in Millions | 12 Months Ended | ||
Oct. 31, 2017USD ($)segment | Oct. 31, 2016USD ($) | Oct. 31, 2015USD ($) | |
Segment Reporting [Abstract] | |||
Number of operating segments | segment | 3 | ||
Percentage of revenue from a single customer | Less than 10 percent | Less than 10 percent | Less than 10 percent |
Select income statement components (Loss) [Abstract] | |||
Total net revenue | $ 4,472 | $ 4,202 | $ 4,038 |
Income from operations | 841 | 615 | 522 |
Depreciation expense | 94 | 95 | 98 |
Share-based compensation | 60 | 58 | 54 |
Life Sciences and Applied Markets | |||
Select income statement components (Loss) [Abstract] | |||
Total net revenue | 2,169 | 2,073 | 2,046 |
Income from operations | 487 | 429 | 380 |
Depreciation expense | 35 | 36 | 27 |
Share-based compensation | 30 | 29 | 27 |
Diagnostics and Genomics | |||
Select income statement components (Loss) [Abstract] | |||
Total net revenue | 772 | 709 | 662 |
Income from operations | 149 | 114 | 88 |
Depreciation expense | 30 | 31 | 37 |
Share-based compensation | 10 | 10 | 9 |
Agilent CrossLab | |||
Select income statement components (Loss) [Abstract] | |||
Total net revenue | 1,531 | 1,420 | 1,330 |
Income from operations | 338 | 316 | 299 |
Depreciation expense | 29 | 28 | 34 |
Share-based compensation | 21 | 21 | 18 |
Segment Total [Member] | |||
Select income statement components (Loss) [Abstract] | |||
Total net revenue | 4,472 | 4,202 | 4,038 |
Income from operations | 974 | 859 | 767 |
Depreciation expense | 94 | 95 | 98 |
Share-based compensation | $ 61 | $ 60 | $ 54 |
SEGMENT INFORMATION Reconciliat
SEGMENT INFORMATION Reconciliation of Reportable Results (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2015 | |
Reconcilitation between statement results and enterprise results [Abstract] | |||
Total reportable segments' income from operations | $ 974 | $ 859 | $ 767 |
Business exit and divestiture costs (primarily our NMR business) | 0 | (11) | (12) |
Asset impairments | 0 | (4) | (3) |
Transformational initiatives | (12) | (38) | (56) |
Amortization of intangible assets related to business combinations | (117) | (152) | (156) |
Acquisition and integration costs | (30) | (41) | (13) |
Acceleration of sharebased compensation expense related to workforce reduction | 0 | 0 | (2) |
Pension curtailment gain | 0 | 15 | 0 |
Pension settlement gain | 32 | 1 | 0 |
Impairment of loans | 0 | (7) | 0 |
Other | (6) | (7) | (3) |
Interest income | 22 | 11 | 7 |
Interest Expense | (79) | (72) | (66) |
Other income (expense), net | 19 | (10) | 17 |
Income from continuing operations before taxes | $ 803 | $ 544 | $ 480 |
SEGMENT INFORMATION Segment Ass
SEGMENT INFORMATION Segment Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2015 | |
Segment Reporting Information [Line Items] | |||
Total reportable segments' assets | $ 5,010 | $ 4,729 | |
Cash and cash equivalents | 2,678 | 2,289 | |
Prepaid expenses | 92 | 92 | |
Investments | 138 | 135 | |
Long term and other receivables | 105 | 92 | |
Other | 403 | 457 | |
Total assets | 8,426 | 7,794 | |
Capital expenditures | 176 | 139 | $ 98 |
Life Sciences and Applied Markets | |||
Segment Reporting Information [Line Items] | |||
Total reportable segments' assets | 1,753 | 1,687 | |
Capital expenditures | 39 | 53 | |
Diagnostics and Genomics | |||
Segment Reporting Information [Line Items] | |||
Total reportable segments' assets | 2,119 | 1,960 | |
Capital expenditures | 111 | 41 | |
Agilent CrossLab | |||
Segment Reporting Information [Line Items] | |||
Total reportable segments' assets | 1,138 | 1,082 | |
Capital expenditures | 26 | 45 | |
Segment Total [Member] | |||
Segment Reporting Information [Line Items] | |||
Total reportable segments' assets | 5,010 | 4,729 | |
Capital expenditures | $ 176 | $ 139 |
SEGMENT INFORMATION Revenue by
SEGMENT INFORMATION Revenue by product category (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2015 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 4,472 | $ 4,202 | $ 4,038 |
Instrumentation [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 1,946 | 1,871 | 1,827 |
Analytical Lab Services [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 991 | 910 | 843 |
Analytical lab consumables [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 540 | 510 | 489 |
Diagnostics and genomics solutions [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 772 | 709 | 662 |
Informatics and other [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | $ 223 | $ 202 | $ 217 |
SEGMENT INFORMATION Entity-Wide
SEGMENT INFORMATION Entity-Wide Disclosures (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2015 | |
Revenue by geography | |||
Revenue, Net | $ 4,472 | $ 4,202 | $ 4,038 |
Long-lived assets by geography | |||
Long-Lived Assets | 1,032 | 804 | |
UNITED STATES | |||
Revenue by geography | |||
Revenue, Net | 1,314 | 1,251 | 1,214 |
Long-lived assets by geography | |||
Long-Lived Assets | 556 | 449 | |
CHINA | |||
Revenue by geography | |||
Revenue, Net | 900 | 839 | 693 |
GERMANY | |||
Long-lived assets by geography | |||
Long-Lived Assets | 118 | 89 | |
Rest Of World | |||
Revenue by geography | |||
Revenue, Net | 2,258 | 2,112 | $ 2,131 |
Long-lived assets by geography | |||
Long-Lived Assets | $ 358 | $ 266 |
Schedule II Valuation and Qu103
Schedule II Valuation and Qualifying Accounts (Details) - Valuation Allowance of Deferred Tax Assets [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2015 | |
Movement in valuation and qualifying accounts [Roll Forward] | |||
Balance at Beginning of Period | $ 129 | $ 131 | $ 134 |
Additions Charged to Costs, Expenses or Other Accounts | 14 | 22 | 6 |
Deductions Credited to Expenses or Other Accounts | (5) | (24) | (9) |
Balance at End of Period | $ 138 | $ 129 | $ 131 |