Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Jul. 31, 2022 | Aug. 24, 2022 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | AGILENT TECHNOLOGIES, INC. | |
Document Type | 10-Q | |
Document Fiscal Period Focus | Q3 | |
Document Period End Date | Jul. 31, 2022 | |
Current Fiscal Year End Date | --10-31 | |
Document Fiscal Year Focus | 2022 | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Central Index Key | 0001090872 | |
Entity File Number | 001-15405 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 77-0518772 | |
Entity Address, Address Line One | 5301 Stevens Creek Blvd., | |
Entity Address, City or Town | Santa Clara, | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 95051 | |
City Area Code | (800) | |
Local Phone Number | 227-9770 | |
Title of 12(b) Security | Common Stock, $0.01 par value | |
Trading Symbol | A | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 296,040,570 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2022 | Jul. 31, 2021 | |
Net revenue: | ||||
Net revenue | $ 1,718 | $ 1,586 | $ 4,999 | $ 4,659 |
Costs and expenses: | ||||
Cost of revenue | 779 | 734 | 2,289 | 2,152 |
Research and development | 116 | 113 | 348 | 325 |
Selling, general and administrative | 412 | 403 | 1,215 | 1,230 |
Total costs and expenses | 1,307 | 1,250 | 3,852 | 3,707 |
Income from operations | 411 | 336 | 1,147 | 952 |
Interest income | 2 | 0 | 4 | 1 |
Interest expense | (19) | (21) | (61) | (60) |
Other income (expense), net | 3 | 12 | (41) | 19 |
Income before taxes | 397 | 327 | 1,049 | 912 |
Provision for income taxes | 68 | 63 | 163 | 144 |
Net income | $ 329 | $ 264 | $ 886 | $ 768 |
Net income per share | ||||
Basic | $ 1.10 | $ 0.87 | $ 2.95 | $ 2.52 |
Diluted | $ 1.10 | $ 0.86 | $ 2.94 | $ 2.50 |
Weighted average shares used in computing net income per share: | ||||
Basic | 298 | 303 | 300 | 305 |
Diluted | 299 | 306 | 301 | 307 |
Product | ||||
Net revenue: | ||||
Net revenue | $ 1,306 | $ 1,188 | $ 3,773 | $ 3,510 |
Costs and expenses: | ||||
Cost of revenue | 558 | 521 | 1,633 | 1,534 |
Service and Other | ||||
Net revenue: | ||||
Net revenue | 412 | 398 | 1,226 | 1,149 |
Costs and expenses: | ||||
Cost of revenue | $ 221 | $ 213 | $ 656 | $ 618 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2022 | Jul. 31, 2021 | |
Net income | $ 329 | $ 264 | $ 886 | $ 768 |
Other comprehensive income (loss): | ||||
Unrealized gain (loss) on derivative instruments, net of tax expense (benefit) of $1, $1, $8 and $(1) | 4 | 0 | 26 | (4) |
Amount reclassified into earnings related to derivative instruments, net of tax expense (benefit) of $(3), $1, $(5) and $5 | (8) | 4 | (14) | 14 |
Foreign currency translation, net of tax expense of $0, $0, $0 and $0 | (29) | (17) | (110) | 27 |
Net defined benefit pension cost and post retirement plan costs: | ||||
Change in actuarial net loss, net of tax expense of $2, $3, $7 and $11 | 5 | 11 | 19 | 32 |
Change in net prior service benefit, net of tax expense of $0, $0, $0 and $0 | (1) | 0 | (1) | (1) |
Other comprehensive income (loss) | (29) | (2) | (80) | 68 |
Total comprehensive income | $ 300 | $ 262 | $ 806 | $ 836 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS) (Unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2022 | Jul. 31, 2021 | |
Other comprehensive income (loss), tax, parenthetical disclosures | ||||
Unrealized gain (loss) on derivative instruments, tax | $ 1 | $ 1 | $ 8 | $ (1) |
Amounts reclassified into earnings related to derivative instruments, tax | (3) | 1 | (5) | 5 |
Foreign currency translation, tax | 0 | 0 | 0 | 0 |
Net defined benefit pension cost and post retirement plan costs, tax | ||||
Change in actuarial net loss, tax | 2 | 3 | 7 | 11 |
Change in net prior service benefit, tax | $ 0 | $ 0 | $ 0 | $ 0 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited) - USD ($) $ in Millions | Jul. 31, 2022 | Oct. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 1,071 | $ 1,484 |
Short term investments | 6 | 91 |
Accounts receivable, net | 1,345 | 1,172 |
Inventory | 1,010 | 830 |
Other current assets | 258 | 222 |
Total current assets | 3,690 | 3,799 |
Property, plant and equipment, net | 1,054 | 945 |
Goodwill | 3,948 | 3,975 |
Other intangible assets, net | 849 | 981 |
Long-term investments | 194 | 185 |
Other assets | 749 | 820 |
Total assets | 10,484 | 10,705 |
Current liabilities: | ||
Accounts payable | 558 | 446 |
Employee compensation and benefits | 389 | 493 |
Deferred revenue | 498 | 441 |
Short-term debt | 180 | 0 |
Other accrued liabilities | 277 | 328 |
Total current liabilities | 1,902 | 1,708 |
Long-term debt | 2,732 | 2,729 |
Retirement and post-retirement benefits | 176 | 220 |
Other long-term liabilities | 583 | 659 |
Total liabilities | 5,393 | 5,316 |
Commitments and Contingencies (Note 9 and 12) | ||
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; 296 million shares at July 31, 2022 and 302 million shares at October 31, 2021, issued and outstanding | 3 | 3 |
Additional paid-in-capital | 5,311 | 5,320 |
Retained earnings | 139 | 348 |
Accumulated other comprehensive loss | (362) | (282) |
Total stockholder's equity | 5,091 | 5,389 |
Total liabilities and equity | $ 10,484 | $ 10,705 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited) (Parenthetical) - $ / shares shares in Thousands | Jul. 31, 2022 | Oct. 31, 2021 |
Stockholders' equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 125,000 | 125,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 2,000,000 | 2,000,000 |
Common Stock, Shares, Issued | 296,000 | 302,000 |
Common Stock, Shares, Outstanding | 296,000 | 302,000 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
Cash flows from operating activities | ||
Net income | $ 886 | $ 768 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 244 | 237 |
Share-based compensation | 99 | 88 |
Deferred taxes | 25 | 41 |
Excess and obsolete inventory related charges | 16 | 21 |
Loss on extinguishment of debt | 9 | 17 |
Net (gain) loss on equity securities | 60 | (24) |
Asset Impairment Charges | 0 | 2 |
Change in fair value of contingent consideration | (25) | 0 |
Other non-cash expense, net | 10 | 1 |
Changes in assets and liabilities: | ||
Accounts receivable,net | (233) | (69) |
Inventory | (206) | (115) |
Accounts payable | 110 | 46 |
Employee compensation and benefits | (98) | 38 |
Other assets and liabilities | (33) | (7) |
Net cash provided by operating activities | 864 | 1,044 |
Cash flows from Investing activities: | ||
Investments in property, plant and equipment | (221) | (126) |
Payments to acquire equity securities | (10) | (15) |
Payment in exchange for convertible note | (1) | (2) |
Proceeds from sale of equity securities | 22 | 0 |
Acquisitions of businesses and intangible assets, net of cash acquired | (18) | (547) |
Net cash used in investing activities | (228) | (690) |
Cash flows from financing activities: | ||
Issuance of common stock under employee stock plans | 55 | 52 |
Payment of taxes related to net share settlement of equity awards | (65) | (74) |
Payment of dividends | (188) | (177) |
Proceeds from Issuance of Long-Term Loan | 600 | 848 |
Debt Issuance Costs | 0 | 7 |
Repayment of senior notes | (609) | (417) |
Proceeds from Commercial Paper | 940 | 1,492 |
Repayments of commercial paper | (760) | (1,437) |
Treasury stock repurchases | (1,004) | (652) |
Net cash used in financing activities | (1,031) | (372) |
Effect of Exchange Rate Movements | (22) | 6 |
Net decrease in cash, cash equivalents and restricted cash | (417) | (12) |
Cash, cash equivalents and restricted cash at beginning of period | 1,490 | 1,447 |
Cash, cash equivalents and restricted cash at end of period | 1,073 | 1,435 |
Supplemental cash flow information: | ||
Income tax paid, net | 217 | 164 |
Interest payments | 56 | 53 |
Property, Plant and Equipment | ||
Supplemental cash flow information: | ||
Net change in property, plant and equipment included in Accounts Payable and Accrued Liabilities increase (decrease) | $ 1 | $ 1 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENT OF EQUITY - USD ($) shares in Thousands, $ in Millions | Total | Common Stock | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Loss | Total Stockholder's Equity |
Beginning Balance (in Shares) at Oct. 31, 2020 | 306,198 | |||||
Beginning Balance at Oct. 31, 2020 | $ 3 | $ 5,311 | $ 81 | $ (522) | $ 4,873 | |
Components of comprehensive income, net of tax | ||||||
Net income | $ 768 | 768 | 768 | |||
Other comprehensive income (loss) | 68 | 68 | 68 | |||
Total comprehensive income, net of tax | 836 | |||||
Cash dividends declared | (177) | (177) | ||||
Share-based awards issued, net of tax (in shares) | 1,939 | |||||
Share-based awards issued | (22) | (22) | ||||
Stock Repurchased and Retired During Period, Shares | (5,242) | |||||
Stock Repurchased and Retired During Period, Value | (70) | (582) | (652) | |||
Share-based compensation | 88 | 88 | ||||
Ending Balance (in Shares) at Jul. 31, 2021 | 302,895 | |||||
Ending Balance at Jul. 31, 2021 | $ 3 | 5,307 | 90 | (454) | 4,946 | |
Beginning Balance (in Shares) at Apr. 30, 2021 | 303,403 | |||||
Beginning Balance at Apr. 30, 2021 | $ 3 | 5,271 | (12) | (452) | 4,810 | |
Components of comprehensive income, net of tax | ||||||
Net income | 264 | 264 | 264 | |||
Other comprehensive income (loss) | (2) | (2) | (2) | |||
Total comprehensive income, net of tax | 262 | |||||
Cash dividends declared | (59) | (59) | ||||
Share-based awards issued, net of tax (in shares) | 296 | |||||
Share-based awards issued | 24 | 24 | ||||
Stock Repurchased and Retired During Period, Shares | (804) | |||||
Stock Repurchased and Retired During Period, Value | (10) | (103) | (113) | |||
Share-based compensation | 22 | 22 | ||||
Ending Balance (in Shares) at Jul. 31, 2021 | 302,895 | |||||
Ending Balance at Jul. 31, 2021 | $ 3 | 5,307 | 90 | (454) | 4,946 | |
Beginning Balance (in Shares) at Oct. 31, 2021 | 302,208 | |||||
Beginning Balance at Oct. 31, 2021 | $ 3 | 5,320 | 348 | (282) | 5,389 | |
Components of comprehensive income, net of tax | ||||||
Net income | 886 | 886 | 886 | |||
Other comprehensive income (loss) | (80) | (80) | (80) | |||
Total comprehensive income, net of tax | 806 | |||||
Cash dividends declared | (188) | (188) | ||||
Share-based awards issued, net of tax (in shares) | 1,323 | |||||
Share-based awards issued | (11) | (11) | ||||
Stock Repurchased and Retired During Period, Shares | (7,331) | |||||
Stock Repurchased and Retired During Period, Value | (97) | (907) | (1,004) | |||
Share-based compensation | 99 | 99 | ||||
Ending Balance (in Shares) at Jul. 31, 2022 | 296,200 | |||||
Ending Balance at Jul. 31, 2022 | $ 3 | 5,311 | 139 | (362) | 5,091 | |
Beginning Balance (in Shares) at Apr. 30, 2022 | 298,565 | |||||
Beginning Balance at Apr. 30, 2022 | $ 3 | 5,292 | 160 | (333) | 5,122 | |
Components of comprehensive income, net of tax | ||||||
Net income | 329 | 329 | 329 | |||
Other comprehensive income (loss) | $ (29) | (29) | (29) | |||
Total comprehensive income, net of tax | 300 | |||||
Cash dividends declared | (62) | (62) | ||||
Share-based awards issued, net of tax (in shares) | 308 | |||||
Share-based awards issued | 26 | 26 | ||||
Stock Repurchased and Retired During Period, Shares | (2,673) | |||||
Stock Repurchased and Retired During Period, Value | (35) | (288) | (323) | |||
Share-based compensation | 28 | 28 | ||||
Ending Balance (in Shares) at Jul. 31, 2022 | 296,200 | |||||
Ending Balance at Jul. 31, 2022 | $ 3 | $ 5,311 | $ 139 | $ (362) | $ 5,091 |
CONDENSED CONSOLIDATE STATEMENT
CONDENSED CONSOLIDATE STATEMENT OF EQUITY - (PARENTHETICAL) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2022 | Jul. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends Declared per share | $ 0.210 | $ 0.194 | $ 0.630 | $ 0.582 |
Share-based Award, Tax | $ 1 | $ 1 | $ 65 | $ 74 |
OVERVIEW, BASIS OF PRESENTATION
OVERVIEW, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Notes) | 9 Months Ended |
Jul. 31, 2022 | |
Accounting Policies [Abstract] | |
OVERVIEW AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | OVERVIEW, BASIS OF PRESENTATION 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 include instruments, software, services and consumables for the entire laboratory workflow. Our fiscal year-end is October 31, and our fiscal quarters end on January 31, April 30 and July 31. Unless otherwise stated, these dates refer to our fiscal year and fiscal quarters. New Segment Structure. In the first quarter of fiscal year 2022, we announced a change in organizational structure designed to enable our growth strategies and strengthen our focus on customers. Our chemistries and supplies business and our remarketed instruments business moved from our Agilent CrossLab business segment to our life sciences and applied markets business segment. Service revenue and cost of sales related to the previous acquisition of BioTek moved from our life sciences and applied markets business segment to our Agilent CrossLab business segment. Following this reorganization, we continue to have three business segments (life sciences and applied markets, diagnostics and genomics and Agilent CrossLab), each of which continues to comprise a reportable segment. We began reporting under this new structure with the Quarterly Report on Form 10-Q for the period ended January 31, 2022. Historical financial segment information has been recast to conform to this new presentation in our financial statements and accompanying notes. There was no change to our diagnostics and genomics business segment. Basis of Presentation . We have prepared the accompanying financial data for the three and nine months ended July 31, 2022 and 2021 pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles (“GAAP”) in the U.S. have been condensed or omitted pursuant to such rules and regulations. The October 31, 2021 condensed balance sheet data was derived from audited financial statements but does not include all the disclosures required in audited financial statements by U.S. GAAP. The accompanying financial data and information should be read in conjunction with our Annual Report on Form 10-K for the fiscal year ended October 31, 2021. In the opinion of management, the accompanying condensed consolidated financial statements contain all normal and recurring adjustments necessary for a fair statement of our condensed consolidated balance sheet as of July 31, 2022 and October 31, 2021, condensed consolidated statement of comprehensive income (loss) for the three and nine months ended July 31, 2022 and 2021, condensed consolidated statement of operations for the three and nine months ended July 31, 2022 and 2021, condensed consolidated statement of cash flows for the nine months ended July 31, 2022 and 2021 and condensed consolidated statement of equity for the three and nine months ended July 31, 2022 and 2021. Use of Estimates. The preparation of condensed consolidated financial statements in accordance with GAAP in the U.S. requires management to make estimates and assumptions that affect the amounts reported in our condensed 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, inventory valuation, retirement and post-retirement benefit plan assumptions, valuation of goodwill and purchased intangible assets and accounting for income taxes. Restricted Cash and Restricted Cash Equivalents. Restricted cash and restricted cash equivalents are 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. A reconciliation of cash, cash equivalents and restricted cash to the condensed consolidated balance sheet follows: July 31, October 31, 2022 2021 (in millions) Cash and cash equivalents $ 1,071 $ 1,484 Restricted cash included in other assets 2 6 Total cash, cash equivalents and restricted cash $ 1,073 $ 1,490 Leases. As of July 31, 2022 and October 31, 2021, operating lease right-of-use assets where we are the lessee were $ 158 million 178 million 161 million 182 million 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”). We evaluate our investments in privately held companies on an ongoing basis. We have determined that as of July 31, 2022 and October 31, 2021, there were no VIEs required to be consolidated in our consolidated financial statements because we do not have a controlling financial interest in any of the VIEs in which we have invested nor are we the primary beneficiary. We account for these investments under either the equity method or as equity investments without readily determinable fair value ("RDFV"), 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 and vice-versa, based on changes in facts and circumstances including changes in contractual arrangements and capital structure. As of July 31, 2022 and October 31, 2021, the total carrying value of investments and loans in privately held companies considered as VIEs was $82 million and $76 million respectively. The maximum exposure is equal to the carrying value because we do not have future funding commitments. The investments are included on the long-term investments line and the loans on the other current assets and other assets lines (depending upon tenure of loan) on the condensed 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 short-term and long-term equity investments which are readily determinable, and which are not accounted under the equity method are reported at fair value using quoted market prices for those securities when available with gains and losses included in net income. The fair value of long-term equity investments which are not readily determinable, and which are not accounted under the equity method are reported at cost with adjustments for observable changes in prices or impairments included in net income. The fair value of the term loans approximates its carrying value, and the fair value of our senior notes was $1,870 million with a carrying value of $2,132 million as of July 31, 2022. This compares to the fair value of our senior notes of $2,806 million with a carrying value of $2,729 million as of October 31, 2021. The change in the fair value over carrying value in the nine months ended July 31, 2022 is primarily due to increased market interest rates. The fair value was calculated from quoted prices which are primarily Level 1 inputs under the accounting guidance. 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 9, "Fair Value Measurements" for additional information on the fair value of financial instruments and contingent consideration. |
NEW ACCOUNTING PRONOUNCEMENTS (
NEW ACCOUNTING PRONOUNCEMENTS (Notes) | 9 Months Ended |
Jul. 31, 2022 | |
Accounting Policies [Abstract] | |
NEW ACCOUNTING PRONOUNCEMENTS | NEW ACCOUNTING PRONOUNCEMENTS Recently Adopted Accounting Pronouncements In January 2020, accounting guidance was issued that clarifies the accounting guidance for equity method investments, joint ventures, and derivatives and hedging. The guidance clarifies the interaction between different sections of the accounting guidance that could be applicable and which guidance should be applied in certain situations which should increase relevance and comparability of financial statement information. On November 1, 2021 we adopted this guidance which did not have a material impact on our condensed consolidated financial statements and disclosures. In October 2021, the FASB issued an update to improve the accounting for acquired revenue contracts with customers in a business combination. The amendments require an acquirer to use the guidance in ASC 606, Revenue from Contracts with Customers, rather than using fair value, when recognizing and measuring contract assets and contract liabilities related to customer contracts assumed in a business combination. On November 1, 2021 we early adopted this guidance which did not have a material impact on our condensed consolidated financial statements and disclosures. Accounting Pronouncements Not Yet Adopted There were no additions to the new accounting pronouncements not yet adopted as described in our Annual Report on Form 10-K for the fiscal year ended October 31, 2021. 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 condensed consolidated financial statements upon adoption. |
REVENUE (Notes)
REVENUE (Notes) | 9 Months Ended |
Jul. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer | REVENUE The following table presents the company’s total revenue and segment revenue disaggregated by geographical region: Three Months Ended July 31, 2022 2021 Life Sciences and Applied Markets Agilent CrossLab Diagnostics and Genomics Total Life Sciences and Applied Markets Agilent CrossLab Diagnostics and Genomics Total (in millions) Revenue by Region Americas $ 336 $ 147 $ 188 $ 671 $ 289 $ 130 $ 187 $ 606 Europe 210 94 103 407 218 94 111 423 Asia Pacific 473 118 49 640 390 119 48 557 Total $ 1,019 $ 359 $ 340 $ 1,718 $ 897 $ 343 $ 346 $ 1,586 Nine Months Ended July 31, 2022 2021 Life Sciences and Applied Markets Agilent CrossLab Diagnostics and Genomics Total Life Sciences and Applied Markets Agilent CrossLab Diagnostics and Genomics Total (in millions) Revenue by Region Americas $ 974 $ 416 $ 577 $ 1,967 $ 864 $ 376 $ 502 $ 1,742 Europe 678 289 314 1,281 677 281 317 1,275 Asia Pacific 1,239 366 146 1,751 1,160 346 136 1,642 Total $ 2,891 $ 1,071 $ 1,037 $ 4,999 $ 2,701 $ 1,003 $ 955 $ 4,659 The following table presents the company’s total revenue disaggregated by end markets and by revenue type: Three Months Ended Nine Months Ended July 31, July 31, 2022 2021 2022 2021 (in millions) Revenue by End Markets Pharmaceutical and Biopharmaceutical $ 643 $ 576 $ 1,834 $ 1,628 Chemical and Energy 389 334 1,097 976 Diagnostics and Clinical 234 242 718 691 Food 151 143 446 449 Academia and Government 139 138 426 423 Environmental and Forensics 162 153 478 492 Total $ 1,718 $ 1,586 $ 4,999 $ 4,659 Revenue by Type Instrumentation $ 737 $ 640 $ 2,074 $ 1,953 Non-instrumentation and other 981 946 2,925 2,706 Total $ 1,718 $ 1,586 $ 4,999 $ 4,659 Revenue by region is based on the ship to location of the customer. Revenue by end market is determined by the market indicator of the customer and by customer type. Instrumentation revenue includes sales from instruments, remarketed instruments and third-party products. Non-instrumentation and other revenue include sales from contract and per incident services, our companion diagnostics and our nucleic acid solutions businesses as well as sales from spare parts, consumables, reagents, vacuum pumps, subscriptions, software licenses and associated services. Contract Balances Contract Assets Contract assets (unbilled accounts receivable) primarily relate to the company's right to consideration for work completed but not billed at the reporting date. The unbilled receivables are reclassified to trade receivables when billed to customers. Contract assets are generally classified as current assets and are included in "Accounts receivable, net" in the condensed consolidated balance sheet. The balances of contract assets as of July 31, 2022 and October 31, 2021 were $273 million and $197 million, respectively. Contract Liabilities The following table provides information about contract liabilities (deferred revenue) and the significant changes in the balances during the nine months ended July 31, 2022: Contract (in millions) Ending balance as of October 31, 2021 $ 519 Net revenue deferred in the period 391 Revenue recognized that was included in the contract liability balance at the beginning of the period (336) Change in deferrals from customer cash advances, net of revenue recognized 39 Currency translation and other adjustments (25) Ending balance as of July 31, 2022 $ 588 During the nine months ended July 31, 2021 revenue recognized that was included in the contract liability balance at October 31, 2020 was $322 million. Contract liabilities primarily relate to multiple element arrangements for which billing has occurred but transfer of control of all elements to the customer has either partially or not occurred at the balance sheet date. This includes cash received from customers for products and related installation and services in advance of the transfer of control. Contract liabilities are classified as either current in deferred revenue or long-term in other long-term liabilities in the condensed consolidated balance sheet based on the timing of when we expect to complete our performance obligation. Contract Costs Incremental costs of obtaining a contract with a customer are recognized as an asset if we expect the benefit of those costs to be longer than one year. We have determined that certain sales incentive programs meet the requirements to be capitalized. The change in total capitalized costs to obtain a contract was immaterial during the three and nine months ended July 31, 2022 and was included in other current and long-term assets on the condensed consolidated balance sheet. We have applied the practical expedient to expense costs as incurred for costs to obtain a contract with a customer when the amortization period would have been one year or less. These costs include the company's internal sales force compensation program, as we have determined that annual compensation is commensurate with annual sales activities. Transaction Price Allocated to the Remaining Performance Obligations We have applied the practical expedient in ASC 606-10-50-14 and have not disclosed information about transaction price allocated to remaining performance obligations that have original expected durations of one year or less. |
SHARE-BASED COMPENSATION (Notes
SHARE-BASED COMPENSATION (Notes) | 9 Months Ended |
Jul. 31, 2022 | |
Share-Based Payment Arrangement, Noncash Expense [Abstract] | |
SHARE-BASED COMPENSATION | SHARE-BASED COMPENSATION We account for share-based awards in accordance with the provisions of the authoritative 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 options, restricted stock units, employee stock purchases made under our employee stock purchase plan and performance share awards granted to selected members of our senior management under the long-term performance plan (“LTPP”) based on estimated fair values. We have two LTPP performance stock award programs, which are administered under the 2018 Stock Plan, for our executive officers and other key employees. Participants in our LTPP Total Stockholders’ Return (“TSR”) and LTPP Earnings Per Share (“EPS”) programs are entitled to receive shares of the company's stock after the end of a three-year period, if specified performance targets for the programs are met. The LTPP-TSR awards are generally designed to meet the criteria of a performance award with the performance metrics and peer group comparison based on the TSR set at the beginning of the performance period. The LTPP-EPS awards are based on the company’s EPS performance over a three-year period. The performance targets for the LTPP-EPS for year 2 and year 3 of the performance period are set in the first quarter of year 2 and year 3, respectively. All LTPP awards are subject to a one-year post-vest holding period. The final LTPP award may vary from 0 percent to 200 percent of the target award. 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. 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. In fiscal year 2021, we resumed granting stock options. Stock options granted under the 2018 Stock Plan may be either "incentive stock options", as defined in Section 422 of the Internal Revenue Code, or non-statutory. Options 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. We issue new shares of common stock when employee stock options are exercised. The impact on our results for share-based compensation was as follows: Three Months Ended Nine Months Ended July 31, July 31, 2022 2021 2022 2021 (in millions) Cost of products and services $ 7 $ 6 $ 24 $ 21 Research and development 3 3 11 9 Selling, general and administrative 18 14 65 60 Total share-based compensation expense $ 28 $ 23 $ 100 $ 90 At July 31, 2022 and October 31, 2021, no share-based compensation was capitalized within inventory. The following assumptions were used to estimate the fair value of awards granted. Three Months Ended Nine Months Ended July 31, July 31, 2022 2021 2022 2021 Stock Option Plans: Weighted average risk-free interest rate 3.2% 0.9% 1.4% 0.5 % Dividend yield 0.7% 0.6% 0.5% 0.7 % Weighted average volatility 27% 26% 26% 26 % Expected life 5.5 years 5.5 years 5.5 years 5.5 years LTPP: Volatility of Agilent shares 29% 30% 29% 30% Volatility of selected peer-company shares 23%-81% 24%-57% 23%-81% 24%-57% Pair-wise correlation with selected peers 41% 45% 41% 45% Post-vest holding restriction discount for all executive awards 6.5% 6.8% 6.5% 6.8% The fair value of share-based awards for our employee stock option awards was estimated using the Black-Scholes option pricing model. Shares granted under the LTPP (TSR) were valued using a Monte Carlo simulation model. The Monte Carlo simulation fair value model requires the use of highly subjective and complex assumptions, including the price volatility of the underlying stock. For the volatility of our LTPP (TSR) grants, we used our own historical stock price volatility. The ESPP allows eligible employees to purchase shares of our common stock at 85 percent of the price at purchase and uses the purchase date to establish the fair market value. We use historical volatility to estimate the expected stock price volatility assumption for employee stock option awards. In reaching the conclusion, we have considered many factors including the extent to which our options are currently traded and our ability to find traded options in the current market with similar terms and prices to the options we are valuing. In estimating the expected life of our options granted, we considered the historical option exercise behavior of our executives, which we believe is representative of future behavior. The estimated fair value of restricted stock units and LTPP (EPS) awards is determined based on the market price of our common stock on the date of grant adjusted for expected dividend yield. The compensation cost for LTPP (EPS) reflects the cost of awards that are probable to vest at the end of the performance period. |
INCOME TAXES (Notes)
INCOME TAXES (Notes) | 9 Months Ended |
Jul. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES For the three and nine months ended July 31, 2022, our income tax expense was $68 million with an effective tax rate of 17.1 percent and $163 million with an effective tax rate of 15.5 percent, respectively. For the three months ended July 31, 2022, there were no significant discrete items. The income taxes for the nine months ended July 31, 2022 include the excess tax benefits from stock-based compensation of $18 million. For the nine months ended July 31, 2022, our effective tax rate and the resulting provision for income taxes were also impacted by the expiration of various foreign statutes of limitations which resulted in the recognition of previously unrecognized tax benefits of $8 million. Our calculation of income tax expense for the three and nine months ended July 31, 2022 is dependent in part on forecasts of full year results. The impact of COVID-19 on the economic environment is uncertain and may change these forecasts, which could impact tax expense. For the three and nine months ended July 31, 2021, our income tax expense was $63 million with an effective tax rate of 19.3 percent and $144 million with an effective tax rate of 15.8 percent, respectively. The income taxes for the nine months ended July 31, 2021 include the excess tax benefits from stock-based compensation of $24 million. For the three and nine months ended July 31, 2021, our effective tax rate and the resulting provision for income taxes were also impacted by the expiration of various foreign statutes of limitations which resulted in the recognition of previously unrecognized tax benefits of $8 million and $24 million, respectively. In the U.S., tax years remain open back to the year 2018 for federal income tax purposes and for significant states. In other major jurisdictions where the company conducts business, the tax years generally remain open back to the year 2012. With these jurisdictions and the U.S., it is reasonably possible 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. |
NET INCOME PER SHARE (Notes)
NET INCOME PER SHARE (Notes) | 9 Months Ended |
Jul. 31, 2022 | |
Earnings Per Share [Abstract] | |
NET INCOME PER SHARE | NET INCOME PER SHARE The following is a reconciliation of the numerator and denominator of the basic and diluted net income per share computations for the periods presented below: Three Months Ended Nine Months Ended July 31, July 31, 2022 2021 2022 2021 (in millions) Numerator: Net income $ 329 $ 264 $ 886 $ 768 Denominator: Basic weighted-average shares 298 303 300 305 Potential common shares— stock options and other employee stock plans 1 3 1 2 Diluted weighted-average shares 299 306 301 307 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 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. In addition, we exclude from the calculation of diluted earnings per share stock options, ESPP, LTPP and restricted stock awards whose combined exercise price and |
INVENTORY (Notes)
INVENTORY (Notes) | 9 Months Ended |
Jul. 31, 2022 | |
Inventory, Net [Abstract] | |
INVENTORY | INVENTORY Inventory as of July 31, 2022 and October 31, 2021 consisted of the following: July 31, October 31, (in millions) Finished goods $ 545 $ 463 Purchased parts and fabricated assemblies 465 367 Inventory $ 1,010 $ 830 |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS (Notes) | 9 Months Ended |
Jul. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS The following table presents goodwill balances and the movements for each of our reportable segments during the nine months ended July 31, 2022: Life Sciences and Applied Markets Diagnostics and Genomics Agilent CrossLab Total (in millions) Goodwill as of October 31, 2021 $ 1,743 $ 1,964 $ 268 $ 3,975 Foreign currency translation impact (11) (10) (6) (27) Goodwill as of July 31, 2022 $ 1,732 $ 1,954 $ 262 $ 3,948 In the first quarter of fiscal year 2022, we reorganized our operating segments and moved our chemistries and supplies business and our remarketed instruments business from our Agilent CrossLab business segment to our life sciences and applied markets business segment. As a result, we reassigned approximately $307 million of goodwill from our Agilent Crosslab business segment to our life sciences and applied markets business segment using the relative fair value allocation approach. In addition, we moved service revenue and cost of sales related to the previous acquisition of BioTek from our life sciences and applied markets business segment to our Agilent CrossLab business segment. As a result, we reassigned approximately $10 million of goodwill from our life sciences and applied markets segment to our Agilent Crosslab business segment using the relative fair value allocation approach. Goodwill balances as of October 31, 2021, have been recast to conform to this new presentation. There were no changes to our reporting units due to this reorganization. In addition, we performed a goodwill impairment test, and the results of the analysis indicated that the fair values for all three of our reporting units were in excess of their carrying values by substantial amounts; therefore, no impairment was indicated. The component parts of other intangible assets as of July 31, 2022 and October 31, 2021 are shown in the table below: Other Intangible Assets Gross Accumulated Net Book (in millions) As of October 31, 2021 Purchased technology $ 1,742 $ 972 $ 770 Trademark/Tradename 196 133 63 Customer relationships 357 228 129 Backlog 8 3 5 Third-party technology and licenses 11 8 3 Total amortizable intangible assets 2,314 1,344 970 In-Process R&D 11 — 11 Total $ 2,325 $ 1,344 $ 981 As of July 31, 2022 Purchased technology $ 1,735 $ 1,047 $ 688 Trademark/Tradename 196 144 52 Customer relationships 353 278 75 Backlog 8 7 1 Third-party technology and licenses 32 9 23 Total amortizable intangible assets 2,324 1,485 839 In-Process R&D 10 — 10 Total $ 2,334 $ 1,485 $ 849 During the nine months ended July 31, 2022, there were no additions to goodwill. During the nine months ended July 31, 2022, we recorded $21 million of other intangible assets related to the acquisition of advanced artificial intelligence technology. During the nine months ended July 31, 2022, other intangible assets in total decreased $3 million due to the impact of foreign currency translation. In general, for U.S. federal tax purposes, goodwill from asset purchases is deductible; however, any goodwill created as part of a stock acquisition is not deductible. Each quarter we review the events and circumstances to determine if impairment of indefinite-lived intangible assets and goodwill is indicated. During the three and nine months ended July 31, 2022 and 2021 we did not identify any triggering events or circumstances which would indicate an impairment of goodwill or indefinite-lived intangible assets. Amortization expense of intangible assets was $48 million and $150 million for the three and nine months ended July 31, 2022, respectively. Amortization expense of intangible assets was $54 million and $144 million for the three and nine months ended July 31, 2021, respectively. Future amortization expense related to existing finite-lived purchased intangible assets for the remainder of fiscal year 2022 and for each of the next five fiscal years and thereafter is estimated below: Estimated future amortization expense: (in millions) Remainder of 2022 $ 41 2023 $ 143 2024 $ 125 2025 $ 100 2026 $ 71 2027 $ 69 Thereafter $ 290 |
FAIR VALUE MEASUREMENTS (Notes)
FAIR VALUE MEASUREMENTS (Notes) | 9 Months Ended |
Jul. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | 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 July 31, 2022 were as follows: Fair Value Measurement at July 31, 2022 Using July 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) $ 479 $ 479 $ — $ — Derivative instruments (foreign exchange contracts) 23 — 23 — Short-term investments - Equity securities with RDFV 5 — 5 — Long-term Trading securities 32 32 — — Other investments 25 — 25 — Total assets measured at fair value $ 564 $ 511 $ 53 $ — Liabilities: Short-term Derivative instruments (foreign exchange contracts) $ 8 $ — $ 8 $ — Contingent consideration 66 — — 66 Long-term Deferred compensation liability 32 — 32 — Contingent consideration 1 — — 1 Total liabilities measured at fair value $ 107 $ — $ 40 $ 67 Financial assets and liabilities measured at fair value on a recurring basis as of October 31, 2021 were as follows: Fair Value Measurement at October 31, 2021 Using 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) $ 919 $ 919 $ — $ — Derivative instruments (foreign exchange contracts) 9 — 9 — Short-term investments - Equity securities with RDFV 91 83 8 — Long-term Trading securities 34 34 — — Other investments 31 — 31 — Total assets measured at fair value $ 1,084 $ 1,036 $ 48 $ — Liabilities: Short-term Derivative instruments (foreign exchange contracts) $ 5 $ — $ 5 $ — Contingent consideration 62 — — 62 Long-term Deferred compensation liability 34 — 34 — Contingent consideration 27 — — 27 Total liabilities measured at fair value $ 128 $ — $ 39 $ 89 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. Short- term investments - equity securities with readily determinable fair value ("RDFV") are shares in marketable equity securities which are classified as level 1 in the fair value hierarchy as they are measured based on quotes in active markets. Equity securities with RDFV also include potential shares received from an equity investment in a company that went public and can vest under certain stock performance circumstances, and these have been classified as level 2 because the fair value was calculated using the Monte Carlo simulation method in which quoted market price and other observable inputs are used. Other investments represent shares we own in a special fund that targets underlying investments of approximately 40 percent in debt securities and 60 percent in equity securities. These shares have been classified as level 2 because, although the shares of the fund are not traded on any active stock exchange, each of the individual underlying securities are or can be derived from and hence we have a readily determinable value for the underlying securities, from which we are able to determine the fair market value for the special fund itself. Trading securities, which are comprised of mutual funds, bonds and other similar instruments, other investments 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 income (loss) within stockholders' equity. Realized gains and losses from the sale of these instruments are recorded in net income. Gains and losses reflected in other income (expense), net for our equity investments with RDFV and equity investments without RDFV are summarized below: Three Months Ended Nine Months Ended July 31, July 31, 2022 2021 2022 2021 (in millions) Net gain (loss) recognized during the period on equity securities $ 2 $ 9 $ (60) $ 24 Less: net gain on equity securities sold during the period $ 12 $ — $ 12 $ — Unrealized gain (loss) on equity securities $ (10) $ 9 $ (72) $ 24 Contingent Consideration. The fair value of the contingent consideration liability relates to milestone payments in connection with the acquisition of advanced artificial intelligence technology in February 2022 and the acquisition of Resolution Bioscience in April 2021. Resolution Bioscience . The fair value of the potential future milestone payments, which is set to certain revenue and technical targets, was based on (i) the probability of achieving the relevant revenue targets and technical milestones and (ii) the timing of achieving such milestones, which are significant unobservable inputs, and has been classified as Level 3. We used the Monte Carlo simulation approach to estimate the fair value of the revenue component which resulted in a fair value of zero. The probability-weighted expected return method was used to estimate the fair value of the technical target component. Assumptions used in the calculations include probability of success, duration of the earn-out and discount rate. A change in any of these unobservable inputs can significantly change the fair value of the contingent consideration. As of July 31, 2022, the expected maximum earn-out period for the contingent payments does not exceed 2.4 years and potential future payments will not exceed $145 million. The contingent consideration liability is our only recurring Level 3 asset or liability. A summary of the Level 3 activity follows: Three Months Ended Nine Months Ended July 31, July 31, 2022 2021 2022 2021 (in millions) Beginning balance $ 67 $ 96 $ 89 $ — Additions to contingent consideration (including measurement period adjustment) $ — $ 14 $ 3 $ 110 Change in fair value (included within selling, general and administrative expenses) $ — $ — $ (25) $ — Ending balance $ 67 $ 110 $ 67 $ 110 The fair value of the contingent consideration liability as of July 31, 2022 was estimated to be $67 million of which $66 million was recorded in other accrued liabilities and $1 million was recorded in other long-term liabilities on the condensed consolidated balance sheet. The net decrease in the fair value of the contingent consideration was primarily driven by a decline in the probability of achieving the revenue milestone related to our acquisition of Resolution Bioscience. Impairment of Investments. There were no impairments of investments for the three and nine months ended July 31, 2022 and 2021. Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis For the three and nine months ended July 31, 2022, there were no impairments of long-lived assets held and used or long-lived assets held for sale. For the three months ended July 31, 2021, there were no impairments of long-lived assets held and used. For the nine months ended July 31, 2021, long-lived assets held and used with a carrying amount of $2 million were written down to fair value of zero, resulting in an impairment of $2 million. For the three and nine months ended July 31, 2021, there were no impairments of long-lived assets held for sale. For the three and nine months ended July 31, 2022 and 2021, there were no impairments of non-marketable securities. For the three and nine months ended July 31, 2022, an unrealized gain of $2 million and $5 million, respectively, was included in net income as an adjustment to the carrying value of non-marketable securities without readily determinable fair value based on an observable market transaction. For both the three and nine months ended July 31, 2021, an unrealized gain of $11 million was included in net income as an adjustment to the carrying value of non-marketable securities without readily determinable fair value based on an observable market transaction. As of July 31, 2022 and October 31, 2021, the carrying amount of non-marketable equity securities without readily determinable fair values was $136 million and $120 million, respectively. Fair values for the non-marketable securities included in long-term investments on the condensed consolidated balance sheet were measured using Level 3 inputs because they are primarily equity stock issued by private companies without quoted market prices. To estimate the fair value of our non-marketable securities, we use the measurement alternative to record these investments at cost and adjust for impairments and observable price changes (orderly transactions for the identical or a similar security from the same issuer) as and when they occur. |
DERIVATIVES (Notes)
DERIVATIVES (Notes) | 9 Months Ended |
Jul. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES | DERIVATIVES We are exposed to foreign currency exchange rate fluctuations and interest rate changes in the normal course of our business. As part of our risk management strategy, we use derivative instruments, primarily forward contracts and purchased options to hedge economic and/or accounting exposures resulting from changes in foreign currency exchange rates. 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 and are assessed for effectiveness against the underlying exposure every reporting period. For open contracts as of July 31, 2022, changes in the time value of the foreign exchange contract are excluded from the assessment of hedge effectiveness and are recognized in cost of sales over the life of the foreign exchange contract. The changes in fair value of the effective portion of the derivative instrument are recognized in accumulated other comprehensive income (loss). Amounts associated with cash flow hedges are reclassified to cost of sales in the condensed 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 (loss) will be reclassified to other income (expense), net in the current period. Changes in the fair value of the ineffective portion of derivative instruments are recognized in other income (expense), net in the condensed 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 cost of sales over the life of the option contract. For the three and nine months ended July 31, 2022 and 2021, ineffectiveness and gains and losses recognized in other income (expense), net due to de-designation of cash flow hedge contracts were not significant. 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 (loss) 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 July 31, 2022 was $4 million. In August 2019, Agilent executed treasury lock agreements for $250 million in connection with future interest payments to be made on our 2029 senior notes issued on September 16, 2019. We designated the treasury lock as a cash flow hedge. The treasury lock contracts were terminated on September 6, 2019, and we recognized a deferred loss of $6 million in accumulated other comprehensive income (loss) which is being amortized to interest expense over the life of the 2029 senior notes. The remaining loss to be amortized related to the treasury lock agreements at July 31, 2022 was $4 million. Net Investment Hedges We enter into foreign exchange contracts to hedge net investments in foreign operations to mitigate the risk of adverse movements in exchange rates. These foreign exchange contracts are carried at fair value and are designated and qualify as net investment hedges under the criteria prescribed in the authoritative guidance. Changes in fair value of the effective portion of the derivative instrument are recognized in accumulated other comprehensive income (loss) and are assessed for effectiveness against the underlying exposure every reporting period. If the company’s net investment changes during the year, the hedge relationship will be assessed and de-designated if the hedge notional amount is outside of prescribed tolerance with a gain/loss reclassified from other comprehensive income (loss) to other income (expense) in the current period. For the three and nine months ended July 31, 2022, ineffectiveness and the resultant effect of any gains or losses recognized in other income (expense) due to de-designation of the hedge contracts were not significant. 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 instruments are recognized in other income (expense), net in the condensed 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 July 31, 2022, was not material. The credit-risk-related contingent features underlying these agreements had not been triggered as of July 31, 2022. There were 276 foreign exchange forward contracts open as of July 31, 2022 and designated as cash flow hedges. There were 173 foreign exchange forward contracts open as of July 31, 2022 and not designated as hedging instruments. There were 3 foreign exchange forward contracts open as of July 31, 2022 and designated as a net investment hedge. The aggregated notional amounts by currency and designation as of July 31, 2022 were as follows: Derivatives Derivatives Derivatives Forward Forward Forward Currency Buy/(Sell) Buy/(Sell) Buy/(Sell) (in millions) Euro $ (72) $ (11) $ 22 British Pound (67) — 8 Canadian Dollar (50) — (17) Japanese Yen (96) — (28) Danish Krone — — 37 Korean Won (68) — (16) Singapore Dollar 33 — 26 Chinese Yuan Renminbi (82) — (76) Taiwan Dollar — — (12) Indian Rupee — — (9) Other 6 — (8) Totals $ (396) $ (11) $ (73) 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 condensed consolidated balance sheet as of July 31, 2022 and October 31, 2021 were as follows: Fair Values of Derivative Instruments Asset Derivatives Liability Derivatives Fair Value Fair Value Balance Sheet Location July 31, October 31, 2021 Balance Sheet Location July 31, October 31, (in millions) Derivatives designated as hedging instruments: Cash flow hedges Foreign exchange contracts Other current assets $ 19 $ 6 Other accrued liabilities $ 3 $ 2 Derivatives not designated as hedging instruments: Foreign exchange contracts Other current assets $ 4 $ 3 Other accrued liabilities $ 5 $ 3 Total derivatives $ 23 $ 9 $ 8 $ 5 The effects of derivative instruments for foreign exchange contracts designated as hedging instruments and not designated as hedging instruments in our condensed consolidated statement of operations were as follows: Three Months Ended Nine Months Ended July 31, July 31, 2022 2021 2022 2021 (in millions) Derivatives designated as hedging instruments: Cash Flow Hedges Foreign exchange contracts: Gain (loss) recognized in accumulated other comprehensive loss $ 5 $ 1 $ 34 $ (5) Loss reclassified from accumulated other comprehensive loss into interest expense $ (1) $ (1) $ (1) $ (1) Gain (loss) reclassified from accumulated other comprehensive loss into cost of sales $ 12 $ (4) $ 20 $ (18) Gain (loss) on time value of forward contracts recorded in cost of sales $ — $ (1) $ — $ (1) Net Investment Hedges Foreign exchange contracts: Gain (loss) recognized in accumulated other comprehensive loss - translation adjustment $ — $ 1 $ 4 $ (2) Derivatives not designated as hedging instruments: Gain (loss) recognized in other income (expense) $ — $ (3) $ (1) $ (4) At July 31, 2022, the amount of existing net gain that is expected to be reclassified from accumulated other comprehensive income (loss) is $17 million. Within the next twelve months it is estimated that $16 million of gain included within the net amount of accumulated other comprehensive income (loss) will be reclassified to cost of sales in respect of cash flow hedges. |
RETIREMENT PLANS AND POST RETIR
RETIREMENT PLANS AND POST RETIREMENT PENSION PLANS (Notes) | 9 Months Ended |
Jul. 31, 2022 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
RETIREMENT PLANS AND POST RETIREMENT PENSION PLANS | RETIREMENT PLANS AND POST RETIREMENT PENSION PLANS Components of net periodic costs (benefits). For the three and nine months ended July 31, 2022 and 2021, our net pension and post retirement benefit costs (benefits) were comprised of the following: Three Months Ended July 31, U.S. Non-U.S. U.S. Post Retirement 2022 2021 2022 2021 2022 2021 (in millions) Service cost—benefits earned during the period $ — $ — $ 6 $ 7 $ — $ 1 Interest cost on benefit obligation 3 3 2 2 1 — Expected return on plan assets (6) (7) (10) (12) (1) (2) Amortization: Actuarial losses — 1 6 13 — 1 Prior service credits — — — — (1) — Total net plan costs (benefits) $ (3) $ (3) $ 4 $ 10 $ (1) $ — Nine Months Ended July 31, U.S. Non-U.S. U.S. Post Retirement 2022 2021 2022 2021 2022 2021 (in millions) Service cost—benefits earned during the period $ — $ — $ 18 $ 18 $ — $ 1 Interest cost on benefit obligation 10 10 7 6 2 2 Expected return on plan assets (20) (22) (33) (37) (4) (5) Amortization: Actuarial losses (gains) — 3 19 40 (1) 3 Prior service credits — — — — (1) (1) Total net plan costs (benefits) $ (10) $ (9) $ 11 $ 27 $ (4) $ — The service cost component is recorded in cost of sales and operating expenses in the condensed consolidated statement of operations. All other cost components are recorded in other income (expense), net in the condensed consolidated statement of operations. Employer contributions and expected future employer contributions for the remainder of the year were as follows: Three Months Ended Nine Months Ended Employer Contributions July 31, July 31, For Remainder of Year 2022 2021 2022 2021 2022 (in millions) U.S. defined benefit plans $ — $ — $ — $ — $ — Non-U.S. defined benefit plans $ 5 $ 7 $ 13 $ 16 $ 6 |
WARRANTIES AND CONTINGENCIES (N
WARRANTIES AND CONTINGENCIES (Notes) | 9 Months Ended |
Jul. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
WARRANTIES AND CONTINGENCIES | WARRANTIES AND CONTINGENCIES Warranties We accrue for standard warranty costs based on historical trends in actual warranty charges over the past 12 months. The accrual is reviewed regularly and periodically adjusted to reflect changes in warranty cost over the period. The standard warranty accrual balances are held in other accrued and other long-term liabilities on our condensed consolidated balance sheet. Our standard warranty terms typically extend to one year from the date of delivery, depending on the product. A summary of the standard warranty accrual activity is shown in the table below: Nine Months Ended July 31, 2022 2021 (in millions) Standard warranty accrual, beginning balance $ 30 $ 32 Accruals for warranties including change in estimates 38 41 Settlements made during the period (37) (41) Standard warranty accrual, ending balance $ 31 $ 32 Accruals for warranties due within one year $ 30 $ 31 Accruals for warranties due after one year 1 1 Standard warranty accrual, ending balance $ 31 $ 32 Bank Guarantees Guarantees consist primarily of outstanding standby letters of credit and bank guarantees and were approximately $39 million and $46 million as of July 31, 2022 and October 31, 2021, respectively. A standby letter of credit is a guarantee of payment issued by a bank on behalf of us that is used as payment of last resort should we fail to fulfill a contractual commitment with a third party. A bank guarantee is a promise from a bank or other lending institution that if we default on a loan, the bank will cover the loss. Contingencies We are involved in lawsuits, claims, investigations and proceedings, including, but not limited to, intellectual property, commercial, real estate, environmental and employment 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, condensed consolidated financial condition, results of operations or cash flows. |
SHORT-TERM DEBT (Notes)
SHORT-TERM DEBT (Notes) | 9 Months Ended |
Jul. 31, 2022 | |
Short-Term Debt [Abstract] | |
SHORT-TERM DEBT | SHORT-TERM DEBT Credit Facilities On March 13, 2019, we entered into a credit agreement with a group of financial institutions which, as amended, provided for a $1 billion five-year unsecured credit facility that will expire on March 13, 2024 and incremental term loan facilities in an aggregate amount of up to $500 million. On April 21, 2021, we entered into an incremental assumption agreement, pursuant to which the aggregate amount available for borrowing under the revolving credit facility was increased to $1.35 billion and the aggregate amount available for incremental facilities was refreshed to remain at $500 million. As of July 31, 2022, we had no borrowings outstanding under the credit facility and no borrowings under the incremental facilities. We were in compliance with the covenants for the credit facility during the nine months ended July 31, 2022. Commercial Paper Under our U.S. commercial paper program, the company may issue and sell unsecured, short-term promissory notes in the aggregate principal amount not to exceed $1.35 billion with up to 397-day maturities. At any point in time, the company intends to maintain available commitments under its revolving credit facility in an amount at least equal to the amount of the commercial paper notes outstanding. Amounts available under the program may be borrowed, repaid and re-borrowed from time to time. The proceeds from issuances under the program may be used for general corporate purposes. During the nine months ended July 31, 2022, we borrowed $940 million and repaid $760 million. As of July 31, 2022 , we had borrowings of $180 million outstanding under our U.S. commercial paper program and had a weighted average annual interest rate of 2.43 percent. |
LONG-TERM DEBT (Notes)
LONG-TERM DEBT (Notes) | 9 Months Ended |
Jul. 31, 2022 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT Senior Notes The following table summarizes the company’s long-term senior notes: July 31, 2022 October 31, 2021 Amortized Amortized (in millions) 2023 Senior Notes — 599 2026 Senior Notes 299 298 2029 Senior Notes 494 494 2030 Senior Notes 496 496 2031 Senior Notes 843 842 Total Senior Notes $ 2,132 $ 2,729 Term Loan Facility On April 15, 2022, we entered into a term loan agreement with a group of financial institutions, which provided for a $600 million delayed draw term loan that will mature on April 15, 2025. As of July 31, 2022, we had $600 million borrowings outstanding under the term loan facility and had a weighted average interest rate of 2.75 percent. Loans under the term loan agreement bear interest, at our option, either at: (i) the alternate base rate, as defined in the term loan agreement, plus the applicable margin for such loans or (ii) adjusted term SOFR, as defined in the term loan agreement, plus the applicable margin for such loans. The term loan agreement contains customary representations and warranties as well as customary affirmative and negative covenants. On May 4, 2022, we used the proceeds from the term loan and repaid the $600 million outstanding aggregate principal amount of our 2023 senior notes due July 15, 2023. The total redemption price of approximately $609 million was computed in accordance with the terms of the 2023 senior notes as the present value of the remaining scheduled payments of principal and unpaid interest on the notes being redeemed. In May 2022, we recorded a loss on extinguishment of debt of $9 million in other income (expense), net in the condensed consolidated statement of operations. In addition, $7 million of accrued interest, up to but not including the applicable redemption date, was paid. |
STOCKHOLDERS' EQUITY (Notes)
STOCKHOLDERS' EQUITY (Notes) | 9 Months Ended |
Jul. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
STOCKHOLDERS EQUITY | STOCKHOLDERS' EQUITY Stock Repurchase Program On November 19, 2018 we announced that our board of directors had approved a share repurchase program (the "2019 repurchase program") designed, among other things, to reduce or eliminate dilution resulting from issuance of stock under the company's employee equity incentive programs. The 2019 repurchase program authorizes the purchase of up to $1.75 billion of our common stock at the company's discretion and has no fixed termination date. The 2019 repurchase program does not require the company to acquire a specific number of shares and may be suspended, amended or discontinued at any time. During the nine months ended July 31, 2021, we repurchased and retired 3.05 million shares for $365 million under this authorization. Effective February 18, 2021, the 2019 repurchase program was terminated and replaced by the new share repurchase program. The remaining authorization under the 2019 repurchase plan of $193 million expired on February 18, 2021. On February 16, 2021 we announced that our board of directors had approved a new share repurchase program (the "2021 repurchase program") designed, among other things, to reduce or eliminate dilution resulting from issuance of stock under the company's employee equity incentive programs. The 2021 repurchase program authorizes the purchase of up to $2.0 billion of our common stock at the company's discretion and has no fixed termination date. The 2021 repurchase program which became effective on February 18, 2021, replaced and terminated the 2019 repurchase program on that date. The 2021 repurchase program does not require the company to acquire a specific number of shares and may be suspended, amended or discontinued at any time. During the three and nine months ended July 31, 2022, we repurchased and retired 2.673 million shares for $323 million and 7.331 million shares for $1,004 million, respectively, under this authorization. During the three and nine months ended July 31, 2021, we repurchased and retired 804,352 shares for $113 million and 2.192 million shares for $287 million, respectively, under this authorization. As of July 31, 2022, we had remaining authorization to repurchase up to approximately $573 million of our common stock under the 2021 repurchase program. Cash Dividends on Shares of Common Stock During the three and nine months ended July 31, 2022, we paid cash dividends of $0.210 per common share or $62 million and $0.630 per common share or $188 million, respectively, on the company's common stock. During the three and nine months ended July 31, 2021, we paid cash dividends of $0.194 per common share or $59 million and $0.582 per common share or $177 million, respectively, on the company's common stock. The timing and amounts of any future dividends are subject to determination and approval by our board of directors. Accumulated Other Comprehensive Income (Loss) Changes in accumulated other comprehensive income (loss) by component and related tax effects were as follows (in millions): Net defined benefit pension cost and post retirement plan costs Three Months Ended July 31, 2022 Foreign currency translation Prior service credits Actuarial Losses Unrealized gains (losses) on derivatives Total (in millions) As of April 30, 2022 $ (266) $ 124 $ (210) $ 19 $ (333) Other comprehensive income (loss) before reclassifications (29) — — 5 (24) Amounts reclassified out of accumulated other comprehensive income (loss) — (1) 7 (11) (5) Tax (expense) benefit — — (2) 2 — Other comprehensive income (loss) (29) (1) 5 (4) (29) As of July 31, 2022 $ (295) $ 123 $ (205) $ 15 $ (362) Nine Months Ended July 31, 2022 As of October 31, 2021 $ (185) $ 124 $ (224) $ 3 $ (282) Other comprehensive income (loss) before reclassifications (110) — 7 34 (69) Amounts reclassified out of accumulated other comprehensive income (loss) — (1) 19 (19) (1) Tax expense — — (7) (3) (10) Other comprehensive income (loss) (110) (1) 19 12 (80) As of July 31, 2022 $ (295) $ 123 $ (205) $ 15 $ (362) Reclassifications out of accumulated other comprehensive income (loss) for the three and nine months ended July 31, 2022 and 2021 were as follows (in millions): Details about accumulated other Amounts Reclassified from Affected line item in Three Months Ended Nine Months Ended July 31, July 31, 2022 2021 2022 2021 Unrealized gain (loss) on derivatives $ 12 $ (4) $ 20 $ (18) Cost of sales Unrealized gain (loss) on derivatives (1) (1) (1) (1) Interest expense 11 (5) 19 (19) Total before income tax (3) 1 (5) 5 (Provision) benefit for income tax 8 (4) 14 (14) Total net of income tax Net defined benefit pension cost and post retirement plan costs: Actuarial net loss (7) (15) (19) (47) Other income (expense) Prior service benefit 1 — 1 1 Other income (expense) (6) (15) (18) (46) Total before income tax 2 3 5 11 Benefit for income tax (4) (12) (13) (35) Total net of income tax Total reclassifications for the period $ 4 $ (16) $ 1 $ (49) Amounts in parentheses indicate reductions to income and increases to other comprehensive income (loss). Reclassifications out of accumulated other comprehensive income (loss) 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 11, "Retirement Plans and Post Retirement Pension Plans"). |
SEGMENT INFORMATION (Notes)
SEGMENT INFORMATION (Notes) | 9 Months Ended |
Jul. 31, 2022 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | 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. In the first quarter of fiscal year 2022, we announced a change in organizational structure designed to enable our growth strategies and strengthen our focus on customers. Our chemistries and supplies business and our remarketed instruments business moved from our Agilent CrossLab business segment to our life sciences and applied markets business segment. Service revenue and cost of sales related to the previous acquisition of BioTek moved from our life sciences and applied markets business segment to our Agilent CrossLab business segment. The historical financial segment information has been recast to conform to this new presentation. There was no change to our diagnostics and genomics business segment. Following this reorganization, we continue to have three business segments comprised of life sciences and applied markets, diagnostics and genomics and Agilent CrossLab, each of which continues to comprise 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; flow cytometer; real-time cell analyzer; cell imaging systems; microplate reader; laboratory software for sample tracking; information management and analytics; laboratory automation and robotic systems; dissolution testing; vacuum pumps and measurement technologies. Our consumables portfolio is designed to improve customer outcomes. Most of the portfolio is vendor neutral, meaning Agilent can serve and supply customers regardless of their instrument purchase choices. Solutions range from chemistries to supplies. Key product categories in consumables include GC and LC columns, sample preparation products, custom chemistries, and a large selection of laboratory instrument supplies. Our diagnostics and genomics business is comprised of six areas of activity providing active pharmaceutical ingredients ("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 solutions that 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 API in an emerging class of drugs that utilize nucleic acid molecules for disease therapy. Third, our pathology solutions business is focused on product offerings for 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. Fourth, we also collaborate with a number of major pharmaceutical companies to develop new potential tissue and liquid-based pharmacodiagnostics, also known as companion diagnostics, which may be used to identify patients most likely to benefit from a specific targeted therapy. Fifth, the reagent partnership business is a provider of reagents used for turbidimetry and flow cytometry. Finally, our biomolecular analysis business provides complete workflow solutions, including instruments, consumables and software, for quality control analysis of nucleic acid samples. Samples are analyzed using quantitative and qualitative techniques to ensure accuracy in further genomics analysis techniques utilized in clinical and life science research applications. The Agilent CrossLab business spans the entire lab with its extensive services portfolio, which is designed to improve customer outcomes. The majority of the portfolio is vendor neutral, meaning we can serve and supply customers regardless of their instrument purchase choices. The services portfolio include repairs, parts, maintenance, installations, training, compliance support, software as a service, asset management, consulting and various other custom services to support the customers' laboratory operations. Custom services 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, tax, real estate, insurance services, information technology services, treasury, order administration, other corporate infrastructure expenses, costs of centralized research and development and joint sales and marketing costs. 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 asset impairments, amortization of acquisition-related intangible assets, change in the fair value of acquisition-related contingent consideration, acquisition and integration costs, transformational initiatives expenses, business exit and divestiture 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. Transformational initiatives include expenses associated with targeted cost reduction activities such as manufacturing transfers, site consolidations, legal entity and other business reorganizations, in-sourcing or outsourcing of activities. 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 items such as transformational initiatives, acquisition and integration costs, amortization of intangible assets related to business combinations, interest income, interest expense and other items as noted in the reconciliations below: Three Months Ended Nine Months Ended July 31, July 31, 2022 2021 2022 2021 (in millions) Net Revenue: Life Sciences and Applied Markets $ 1,019 $ 897 $ 2,891 $ 2,701 Diagnostics and Genomics 340 346 1,037 955 Agilent CrossLab 359 343 1,071 1,003 Total net revenue $ 1,718 $ 1,586 $ 4,999 $ 4,659 Segment Income From Operations: Life Sciences and Applied Markets $ 311 $ 250 $ 821 $ 741 Diagnostics and Genomics 73 78 232 202 Agilent CrossLab 88 84 266 229 Total segment income from operations $ 472 $ 412 $ 1,319 $ 1,172 The following table reconciles segment income from operations to Agilent’s total enterprise income before taxes: Three Months Ended Nine Months Ended July 31, July 31, 2022 2021 2022 2021 (in millions) Total segment income from operations $ 472 $ 412 $ 1,319 $ 1,172 Transformational initiatives (8) (12) (21) (32) Amortization of intangible assets related to business combinations (48) (53) (149) (143) Acquisition and integration costs (4) (10) (19) (32) Asset impairment — — — (2) Change in fair value of contingent consideration — — 25 — Business exit and divestiture costs — — (7) (4) Other (1) (1) (1) (7) Interest income 2 — 4 1 Interest expense (19) (21) (61) (60) Other income (expense), net (1) 3 12 (41) 19 Income before taxes, as reported $ 397 $ 327 $ 1,049 $ 912 (1) For the three and nine months ended July 31, 2022 and 2021, other income (expense), net includes net (gains) losses on the fair value of equity securities. The following table reflects segment assets under our management reporting system. Segment assets include allocations of corporate assets, goodwill, net other intangibles and other assets. Unallocated assets primarily consist of cash, cash equivalents, short-term and long-term investments, deferred tax assets, right-of-use assets and other assets. July 31, October 31, (in millions) Segment Assets: Life Sciences and Applied Markets $ 3,888 $ 3,741 Diagnostics and Genomics 3,445 3,320 Agilent CrossLab 872 839 Total segment assets $ 8,205 $ 7,900 |
OVERVIEW, BASIS OF PRESENTATI_2
OVERVIEW, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Jul. 31, 2022 | |
Accounting Policies [Abstract] | |
Overview 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 include instruments, software, services and consumables for the entire laboratory workflow. Our fiscal year-end is October 31, and our fiscal quarters end on January 31, April 30 and July 31. Unless otherwise stated, these dates refer to our fiscal year and fiscal quarters. New Segment Structure. In the first quarter of fiscal year 2022, we announced a change in organizational structure designed to enable our growth strategies and strengthen our focus on customers. Our chemistries and supplies business and our remarketed instruments business moved from our Agilent CrossLab business segment to our life sciences and applied markets business segment. Service revenue and cost of sales related to the previous acquisition of BioTek moved from our life sciences and applied markets business segment to our Agilent CrossLab business segment. Following this reorganization, we continue to have three business segments (life sciences and applied markets, diagnostics and genomics and Agilent CrossLab), each of which continues to comprise a reportable segment. We began reporting under this new structure with the Quarterly Report on Form 10-Q for the period ended January 31, 2022. Historical financial segment information has been recast to conform to this new presentation in our financial statements and accompanying notes. There was no change to our diagnostics and genomics business segment. Basis of Presentation . We have prepared the accompanying financial data for the three and nine months ended July 31, 2022 and 2021 pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles (“GAAP”) in the U.S. have been condensed or omitted pursuant to such rules and regulations. The October 31, 2021 condensed balance sheet data was derived from audited financial statements but does not include all the disclosures required in audited financial statements by U.S. GAAP. The accompanying financial data and information should be read in conjunction with our Annual Report on Form 10-K for the fiscal year ended October 31, 2021. In the opinion of management, the accompanying condensed consolidated financial statements contain all normal and recurring adjustments necessary for a fair statement of our condensed consolidated balance sheet as of July 31, 2022 and October 31, 2021, condensed consolidated statement of comprehensive income (loss) for the three and nine months ended July 31, 2022 and 2021, condensed consolidated statement of operations for the three and nine months ended July 31, 2022 and 2021, condensed consolidated statement of cash flows for the nine months ended July 31, 2022 and 2021 and condensed consolidated statement of equity for the three and nine months ended July 31, 2022 and 2021. |
Use of Estimates | Use of Estimates. The preparation of condensed consolidated financial statements in accordance with GAAP in the U.S. requires management to make estimates and assumptions that affect the amounts reported in our condensed 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, inventory valuation, retirement and post-retirement benefit plan assumptions, valuation of goodwill and purchased intangible assets and accounting for income taxes. |
Restricted Cash and Restricted Cash Equivalents | Restricted Cash and Restricted Cash Equivalents. Restricted cash and restricted cash equivalents are 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. A reconciliation of cash, cash equivalents and restricted cash to the condensed consolidated balance sheet follows: July 31, October 31, 2022 2021 (in millions) Cash and cash equivalents $ 1,071 $ 1,484 Restricted cash included in other assets 2 6 Total cash, cash equivalents and restricted cash $ 1,073 $ 1,490 |
Leases | Leases. As of July 31, 2022 and October 31, 2021, operating lease right-of-use assets where we are the lessee were $ 158 million 178 million 161 million 182 million |
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”). We evaluate our investments in privately held companies on an ongoing basis. We have determined that as of July 31, 2022 and October 31, 2021, there were no VIEs required to be consolidated in our consolidated financial statements because we do not have a controlling financial interest in any of the VIEs in which we have invested nor are we the primary beneficiary. We account for these investments under either the equity method or as equity investments without readily determinable fair value ("RDFV"), 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 and vice-versa, based on changes in facts and circumstances including changes in contractual arrangements and capital structure. As of July 31, 2022 and October 31, 2021, the total carrying value of investments and loans in privately held companies considered as VIEs was $82 million and $76 million respectively. The maximum exposure is equal to the carrying value because we do not have future funding commitments. The investments are included on the long-term investments line and the loans on the other current assets and other assets lines (depending upon tenure of loan) on the condensed 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 short-term and long-term equity investments which are readily determinable, and which are not accounted under the equity method are reported at fair value using quoted market prices for those securities when available with gains and losses included in net income. The fair value of long-term equity investments which are not readily determinable, and which are not accounted under the equity method are reported at cost with adjustments for observable changes in prices or impairments included in net income. The fair value of the term loans approximates its carrying value, and the fair value of our senior notes was $1,870 million with a carrying value of $2,132 million as of July 31, 2022. This compares to the fair value of our senior notes of $2,806 million with a carrying value of $2,729 million as of October 31, 2021. The change in the fair value over carrying value in the nine months ended July 31, 2022 is primarily due to increased market interest rates. The fair value was calculated from quoted prices which are primarily Level 1 inputs under the accounting guidance. 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 9, "Fair Value Measurements" for additional information on the fair value of financial instruments and contingent consideration. |
OVERVIEW, BASIS OF PRESENTATI_3
OVERVIEW, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Jul. 31, 2022 | |
Restricted Cash [Abstract] | |
Restrictions on Cash and Cash Equivalents | Restricted Cash and Restricted Cash Equivalents. Restricted cash and restricted cash equivalents are 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. A reconciliation of cash, cash equivalents and restricted cash to the condensed consolidated balance sheet follows: July 31, October 31, 2022 2021 (in millions) Cash and cash equivalents $ 1,071 $ 1,484 Restricted cash included in other assets 2 6 Total cash, cash equivalents and restricted cash $ 1,073 $ 1,490 |
REVENUE (Tables)
REVENUE (Tables) | 9 Months Ended |
Jul. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table presents the company’s total revenue and segment revenue disaggregated by geographical region: Three Months Ended July 31, 2022 2021 Life Sciences and Applied Markets Agilent CrossLab Diagnostics and Genomics Total Life Sciences and Applied Markets Agilent CrossLab Diagnostics and Genomics Total (in millions) Revenue by Region Americas $ 336 $ 147 $ 188 $ 671 $ 289 $ 130 $ 187 $ 606 Europe 210 94 103 407 218 94 111 423 Asia Pacific 473 118 49 640 390 119 48 557 Total $ 1,019 $ 359 $ 340 $ 1,718 $ 897 $ 343 $ 346 $ 1,586 Nine Months Ended July 31, 2022 2021 Life Sciences and Applied Markets Agilent CrossLab Diagnostics and Genomics Total Life Sciences and Applied Markets Agilent CrossLab Diagnostics and Genomics Total (in millions) Revenue by Region Americas $ 974 $ 416 $ 577 $ 1,967 $ 864 $ 376 $ 502 $ 1,742 Europe 678 289 314 1,281 677 281 317 1,275 Asia Pacific 1,239 366 146 1,751 1,160 346 136 1,642 Total $ 2,891 $ 1,071 $ 1,037 $ 4,999 $ 2,701 $ 1,003 $ 955 $ 4,659 The following table presents the company’s total revenue disaggregated by end markets and by revenue type: Three Months Ended Nine Months Ended July 31, July 31, 2022 2021 2022 2021 (in millions) Revenue by End Markets Pharmaceutical and Biopharmaceutical $ 643 $ 576 $ 1,834 $ 1,628 Chemical and Energy 389 334 1,097 976 Diagnostics and Clinical 234 242 718 691 Food 151 143 446 449 Academia and Government 139 138 426 423 Environmental and Forensics 162 153 478 492 Total $ 1,718 $ 1,586 $ 4,999 $ 4,659 Revenue by Type Instrumentation $ 737 $ 640 $ 2,074 $ 1,953 Non-instrumentation and other 981 946 2,925 2,706 Total $ 1,718 $ 1,586 $ 4,999 $ 4,659 |
Contract Liabilities and Changes in Balances | The following table provides information about contract liabilities (deferred revenue) and the significant changes in the balances during the nine months ended July 31, 2022: Contract (in millions) Ending balance as of October 31, 2021 $ 519 Net revenue deferred in the period 391 Revenue recognized that was included in the contract liability balance at the beginning of the period (336) Change in deferrals from customer cash advances, net of revenue recognized 39 Currency translation and other adjustments (25) Ending balance as of July 31, 2022 $ 588 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 9 Months Ended |
Jul. 31, 2022 | |
Share-Based Payment Arrangement, Noncash Expense [Abstract] | |
Allocated share-based compensation expense disclosure | The impact on our results for share-based compensation was as follows: Three Months Ended Nine Months Ended July 31, July 31, 2022 2021 2022 2021 (in millions) Cost of products and services $ 7 $ 6 $ 24 $ 21 Research and development 3 3 11 9 Selling, general and administrative 18 14 65 60 Total share-based compensation expense $ 28 $ 23 $ 100 $ 90 |
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions And Methodology [Text Block] | The following assumptions were used to estimate the fair value of awards granted. Three Months Ended Nine Months Ended July 31, July 31, 2022 2021 2022 2021 Stock Option Plans: Weighted average risk-free interest rate 3.2% 0.9% 1.4% 0.5 % Dividend yield 0.7% 0.6% 0.5% 0.7 % Weighted average volatility 27% 26% 26% 26 % Expected life 5.5 years 5.5 years 5.5 years 5.5 years LTPP: Volatility of Agilent shares 29% 30% 29% 30% Volatility of selected peer-company shares 23%-81% 24%-57% 23%-81% 24%-57% Pair-wise correlation with selected peers 41% 45% 41% 45% Post-vest holding restriction discount for all executive awards 6.5% 6.8% 6.5% 6.8% |
NET INCOME PER SHARE (Tables)
NET INCOME PER SHARE (Tables) | 9 Months Ended |
Jul. 31, 2022 | |
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 numerator and denominator of the basic and diluted net income per share computations for the periods presented below: Three Months Ended Nine Months Ended July 31, July 31, 2022 2021 2022 2021 (in millions) Numerator: Net income $ 329 $ 264 $ 886 $ 768 Denominator: Basic weighted-average shares 298 303 300 305 Potential common shares— stock options and other employee stock plans 1 3 1 2 Diluted weighted-average shares 299 306 301 307 |
INVENTORY (Tables)
INVENTORY (Tables) | 9 Months Ended |
Jul. 31, 2022 | |
Inventory, Net [Abstract] | |
INVENTORY | INVENTORY Inventory as of July 31, 2022 and October 31, 2021 consisted of the following: July 31, October 31, (in millions) Finished goods $ 545 $ 463 Purchased parts and fabricated assemblies 465 367 Inventory $ 1,010 $ 830 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Jul. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill balances and movements for each reportable segment during the period | The following table presents goodwill balances and the movements for each of our reportable segments during the nine months ended July 31, 2022: Life Sciences and Applied Markets Diagnostics and Genomics Agilent CrossLab Total (in millions) Goodwill as of October 31, 2021 $ 1,743 $ 1,964 $ 268 $ 3,975 Foreign currency translation impact (11) (10) (6) (27) Goodwill as of July 31, 2022 $ 1,732 $ 1,954 $ 262 $ 3,948 |
Components of other intangible assets during the period | The component parts of other intangible assets as of July 31, 2022 and October 31, 2021 are shown in the table below: Other Intangible Assets Gross Accumulated Net Book (in millions) As of October 31, 2021 Purchased technology $ 1,742 $ 972 $ 770 Trademark/Tradename 196 133 63 Customer relationships 357 228 129 Backlog 8 3 5 Third-party technology and licenses 11 8 3 Total amortizable intangible assets 2,314 1,344 970 In-Process R&D 11 — 11 Total $ 2,325 $ 1,344 $ 981 As of July 31, 2022 Purchased technology $ 1,735 $ 1,047 $ 688 Trademark/Tradename 196 144 52 Customer relationships 353 278 75 Backlog 8 7 1 Third-party technology and licenses 32 9 23 Total amortizable intangible assets 2,324 1,485 839 In-Process R&D 10 — 10 Total $ 2,334 $ 1,485 $ 849 |
Schedule of estimated future amortization expense of finite-lived intangible assets | Future amortization expense related to existing finite-lived purchased intangible assets for the remainder of fiscal year 2022 and for each of the next five fiscal years and thereafter is estimated below: Estimated future amortization expense: (in millions) Remainder of 2022 $ 41 2023 $ 143 2024 $ 125 2025 $ 100 2026 $ 71 2027 $ 69 Thereafter $ 290 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Jul. 31, 2022 | |
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 July 31, 2022 were as follows: Fair Value Measurement at July 31, 2022 Using July 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) $ 479 $ 479 $ — $ — Derivative instruments (foreign exchange contracts) 23 — 23 — Short-term investments - Equity securities with RDFV 5 — 5 — Long-term Trading securities 32 32 — — Other investments 25 — 25 — Total assets measured at fair value $ 564 $ 511 $ 53 $ — Liabilities: Short-term Derivative instruments (foreign exchange contracts) $ 8 $ — $ 8 $ — Contingent consideration 66 — — 66 Long-term Deferred compensation liability 32 — 32 — Contingent consideration 1 — — 1 Total liabilities measured at fair value $ 107 $ — $ 40 $ 67 Financial assets and liabilities measured at fair value on a recurring basis as of October 31, 2021 were as follows: Fair Value Measurement at October 31, 2021 Using 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) $ 919 $ 919 $ — $ — Derivative instruments (foreign exchange contracts) 9 — 9 — Short-term investments - Equity securities with RDFV 91 83 8 — Long-term Trading securities 34 34 — — Other investments 31 — 31 — Total assets measured at fair value $ 1,084 $ 1,036 $ 48 $ — Liabilities: Short-term Derivative instruments (foreign exchange contracts) $ 5 $ — $ 5 $ — Contingent consideration 62 — — 62 Long-term Deferred compensation liability 34 — 34 — Contingent consideration 27 — — 27 Total liabilities measured at fair value $ 128 $ — $ 39 $ 89 |
Gain (Loss) on Securities | Gains and losses reflected in other income (expense), net for our equity investments with RDFV and equity investments without RDFV are summarized below: Three Months Ended Nine Months Ended July 31, July 31, 2022 2021 2022 2021 (in millions) Net gain (loss) recognized during the period on equity securities $ 2 $ 9 $ (60) $ 24 Less: net gain on equity securities sold during the period $ 12 $ — $ 12 $ — Unrealized gain (loss) on equity securities $ (10) $ 9 $ (72) $ 24 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The contingent consideration liability is our only recurring Level 3 asset or liability. A summary of the Level 3 activity follows: Three Months Ended Nine Months Ended July 31, July 31, 2022 2021 2022 2021 (in millions) Beginning balance $ 67 $ 96 $ 89 $ — Additions to contingent consideration (including measurement period adjustment) $ — $ 14 $ 3 $ 110 Change in fair value (included within selling, general and administrative expenses) $ — $ — $ (25) $ — Ending balance $ 67 $ 110 $ 67 $ 110 |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 9 Months Ended |
Jul. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Aggregated notional amounts by currency and designation | The aggregated notional amounts by currency and designation as of July 31, 2022 were as follows: Derivatives Derivatives Derivatives Forward Forward Forward Currency Buy/(Sell) Buy/(Sell) Buy/(Sell) (in millions) Euro $ (72) $ (11) $ 22 British Pound (67) — 8 Canadian Dollar (50) — (17) Japanese Yen (96) — (28) Danish Krone — — 37 Korean Won (68) — (16) Singapore Dollar 33 — 26 Chinese Yuan Renminbi (82) — (76) Taiwan Dollar — — (12) Indian Rupee — — (9) Other 6 — (8) Totals $ (396) $ (11) $ (73) |
Gross fair values and balance sheet location of derivative instruments held in the consolidated balance sheet | 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 condensed consolidated balance sheet as of July 31, 2022 and October 31, 2021 were as follows: Fair Values of Derivative Instruments Asset Derivatives Liability Derivatives Fair Value Fair Value Balance Sheet Location July 31, October 31, 2021 Balance Sheet Location July 31, October 31, (in millions) Derivatives designated as hedging instruments: Cash flow hedges Foreign exchange contracts Other current assets $ 19 $ 6 Other accrued liabilities $ 3 $ 2 Derivatives not designated as hedging instruments: Foreign exchange contracts Other current assets $ 4 $ 3 Other accrued liabilities $ 5 $ 3 Total derivatives $ 23 $ 9 $ 8 $ 5 |
Effect of derivative instruments for foreign exchange contracts in the consolidated statement of operations | The effects of derivative instruments for foreign exchange contracts designated as hedging instruments and not designated as hedging instruments in our condensed consolidated statement of operations were as follows: Three Months Ended Nine Months Ended July 31, July 31, 2022 2021 2022 2021 (in millions) Derivatives designated as hedging instruments: Cash Flow Hedges Foreign exchange contracts: Gain (loss) recognized in accumulated other comprehensive loss $ 5 $ 1 $ 34 $ (5) Loss reclassified from accumulated other comprehensive loss into interest expense $ (1) $ (1) $ (1) $ (1) Gain (loss) reclassified from accumulated other comprehensive loss into cost of sales $ 12 $ (4) $ 20 $ (18) Gain (loss) on time value of forward contracts recorded in cost of sales $ — $ (1) $ — $ (1) Net Investment Hedges Foreign exchange contracts: Gain (loss) recognized in accumulated other comprehensive loss - translation adjustment $ — $ 1 $ 4 $ (2) Derivatives not designated as hedging instruments: Gain (loss) recognized in other income (expense) $ — $ (3) $ (1) $ (4) |
RETIREMENT PLANS AND POST RET_2
RETIREMENT PLANS AND POST RETIREMENT PENSION PLANS (Tables) | 9 Months Ended |
Jul. 31, 2022 | |
Defined Benefit Plan, Net Periodic Benefit Cost | |
Schedule of net pension and post-retirement benefit costs | Components of net periodic costs (benefits). For the three and nine months ended July 31, 2022 and 2021, our net pension and post retirement benefit costs (benefits) were comprised of the following: Three Months Ended July 31, U.S. Non-U.S. U.S. Post Retirement 2022 2021 2022 2021 2022 2021 (in millions) Service cost—benefits earned during the period $ — $ — $ 6 $ 7 $ — $ 1 Interest cost on benefit obligation 3 3 2 2 1 — Expected return on plan assets (6) (7) (10) (12) (1) (2) Amortization: Actuarial losses — 1 6 13 — 1 Prior service credits — — — — (1) — Total net plan costs (benefits) $ (3) $ (3) $ 4 $ 10 $ (1) $ — Nine Months Ended July 31, U.S. Non-U.S. U.S. Post Retirement 2022 2021 2022 2021 2022 2021 (in millions) Service cost—benefits earned during the period $ — $ — $ 18 $ 18 $ — $ 1 Interest cost on benefit obligation 10 10 7 6 2 2 Expected return on plan assets (20) (22) (33) (37) (4) (5) Amortization: Actuarial losses (gains) — 3 19 40 (1) 3 Prior service credits — — — — (1) (1) Total net plan costs (benefits) $ (10) $ (9) $ 11 $ 27 $ (4) $ — The service cost component is recorded in cost of sales and operating expenses in the condensed consolidated statement of operations. All other cost components are recorded in other income (expense), net in the condensed consolidated statement of operations. |
Employer Contributions and Expected Employer Contributions | Employer contributions and expected future employer contributions for the remainder of the year were as follows: Three Months Ended Nine Months Ended Employer Contributions July 31, July 31, For Remainder of Year 2022 2021 2022 2021 2022 (in millions) U.S. defined benefit plans $ — $ — $ — $ — $ — Non-U.S. defined benefit plans $ 5 $ 7 $ 13 $ 16 $ 6 |
WARRANTIES AND CONTINGENCIES (T
WARRANTIES AND CONTINGENCIES (Table) | 9 Months Ended |
Jul. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Standard warranty | A summary of the standard warranty accrual activity is shown in the table below: Nine Months Ended July 31, 2022 2021 (in millions) Standard warranty accrual, beginning balance $ 30 $ 32 Accruals for warranties including change in estimates 38 41 Settlements made during the period (37) (41) Standard warranty accrual, ending balance $ 31 $ 32 Accruals for warranties due within one year $ 30 $ 31 Accruals for warranties due after one year 1 1 Standard warranty accrual, ending balance $ 31 $ 32 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 9 Months Ended |
Jul. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Senior Notes and Related Interest Rate Swaps | The following table summarizes the company’s long-term senior notes: July 31, 2022 October 31, 2021 Amortized Amortized (in millions) 2023 Senior Notes — 599 2026 Senior Notes 299 298 2029 Senior Notes 494 494 2030 Senior Notes 496 496 2031 Senior Notes 843 842 Total Senior Notes $ 2,132 $ 2,729 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 9 Months Ended |
Jul. 31, 2022 | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Changes in accumulated other comprehensive income (loss) by component and related tax effects were as follows (in millions): Net defined benefit pension cost and post retirement plan costs Three Months Ended July 31, 2022 Foreign currency translation Prior service credits Actuarial Losses Unrealized gains (losses) on derivatives Total (in millions) As of April 30, 2022 $ (266) $ 124 $ (210) $ 19 $ (333) Other comprehensive income (loss) before reclassifications (29) — — 5 (24) Amounts reclassified out of accumulated other comprehensive income (loss) — (1) 7 (11) (5) Tax (expense) benefit — — (2) 2 — Other comprehensive income (loss) (29) (1) 5 (4) (29) As of July 31, 2022 $ (295) $ 123 $ (205) $ 15 $ (362) Nine Months Ended July 31, 2022 As of October 31, 2021 $ (185) $ 124 $ (224) $ 3 $ (282) Other comprehensive income (loss) before reclassifications (110) — 7 34 (69) Amounts reclassified out of accumulated other comprehensive income (loss) — (1) 19 (19) (1) Tax expense — — (7) (3) (10) Other comprehensive income (loss) (110) (1) 19 12 (80) As of July 31, 2022 $ (295) $ 123 $ (205) $ 15 $ (362) |
Reclassification out of Accumulated Other Comprehensive Income | Reclassifications out of accumulated other comprehensive income (loss) for the three and nine months ended July 31, 2022 and 2021 were as follows (in millions): Details about accumulated other Amounts Reclassified from Affected line item in Three Months Ended Nine Months Ended July 31, July 31, 2022 2021 2022 2021 Unrealized gain (loss) on derivatives $ 12 $ (4) $ 20 $ (18) Cost of sales Unrealized gain (loss) on derivatives (1) (1) (1) (1) Interest expense 11 (5) 19 (19) Total before income tax (3) 1 (5) 5 (Provision) benefit for income tax 8 (4) 14 (14) Total net of income tax Net defined benefit pension cost and post retirement plan costs: Actuarial net loss (7) (15) (19) (47) Other income (expense) Prior service benefit 1 — 1 1 Other income (expense) (6) (15) (18) (46) Total before income tax 2 3 5 11 Benefit for income tax (4) (12) (13) (35) Total net of income tax Total reclassifications for the period $ 4 $ (16) $ 1 $ (49) |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 9 Months Ended |
Jul. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Profitability and Segment Assets | The profitability of each of the segments is measured after excluding items such as transformational initiatives, acquisition and integration costs, amortization of intangible assets related to business combinations, interest income, interest expense and other items as noted in the reconciliations below: Three Months Ended Nine Months Ended July 31, July 31, 2022 2021 2022 2021 (in millions) Net Revenue: Life Sciences and Applied Markets $ 1,019 $ 897 $ 2,891 $ 2,701 Diagnostics and Genomics 340 346 1,037 955 Agilent CrossLab 359 343 1,071 1,003 Total net revenue $ 1,718 $ 1,586 $ 4,999 $ 4,659 Segment Income From Operations: Life Sciences and Applied Markets $ 311 $ 250 $ 821 $ 741 Diagnostics and Genomics 73 78 232 202 Agilent CrossLab 88 84 266 229 Total segment income from operations $ 472 $ 412 $ 1,319 $ 1,172 The following table reflects segment assets under our management reporting system. Segment assets include allocations of corporate assets, goodwill, net other intangibles and other assets. Unallocated assets primarily consist of cash, cash equivalents, short-term and long-term investments, deferred tax assets, right-of-use assets and other assets. July 31, October 31, (in millions) Segment Assets: Life Sciences and Applied Markets $ 3,888 $ 3,741 Diagnostics and Genomics 3,445 3,320 Agilent CrossLab 872 839 Total segment assets $ 8,205 $ 7,900 |
Reconciliation of segment results to total enterprise results | The following table reconciles segment income from operations to Agilent’s total enterprise income before taxes: Three Months Ended Nine Months Ended July 31, July 31, 2022 2021 2022 2021 (in millions) Total segment income from operations $ 472 $ 412 $ 1,319 $ 1,172 Transformational initiatives (8) (12) (21) (32) Amortization of intangible assets related to business combinations (48) (53) (149) (143) Acquisition and integration costs (4) (10) (19) (32) Asset impairment — — — (2) Change in fair value of contingent consideration — — 25 — Business exit and divestiture costs — — (7) (4) Other (1) (1) (1) (7) Interest income 2 — 4 1 Interest expense (19) (21) (61) (60) Other income (expense), net (1) 3 12 (41) 19 Income before taxes, as reported $ 397 $ 327 $ 1,049 $ 912 (1) For the three and nine months ended July 31, 2022 and 2021, other income (expense), net includes net (gains) losses on the fair value of equity securities. |
OVERVIEW, BASIS OF PRESENTATI_4
OVERVIEW, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Millions | Jul. 31, 2022 | Oct. 31, 2021 | Jul. 31, 2021 | Oct. 31, 2020 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | ||||
Cash and cash equivalents | $ 1,071 | $ 1,484 | ||
Restricted Cash | 2 | 6 | ||
Cash, cash equivalents, restricted cash and restricted cash equivalents | 1,073 | 1,490 | $ 1,435 | $ 1,447 |
Operating Leases | ||||
Right-of-Use Asset | $ 158 | $ 178 | ||
Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets | ||
Operating lease liability | $ 161 | $ 182 | ||
Operating Lease Liability, Statement of Financial Position [Extensible Enumeration] | Other accrued liabilities, Other long-term liabilities | Other accrued liabilities, Other long-term liabilities | ||
Fair Value of Financial Instruments | ||||
Carrying Value of Senior Notes | $ 2,132 | $ 2,729 | ||
Variable Interest Entity | ||||
Assets | 10,484 | 10,705 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Senior Notes | ||||
Fair Value of Financial Instruments | ||||
Fair Value of Senior Notes | 1,870 | 2,806 | ||
Variable Interest Entity, Not Primary Beneficiary [Member] | ||||
Variable Interest Entity | ||||
Assets | $ 82 | $ 76 |
REVENUE- Revenue by Region (Det
REVENUE- Revenue by Region (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2022 | Jul. 31, 2021 | |
Net revenue | $ 1,718 | $ 1,586 | $ 4,999 | $ 4,659 |
Life Sciences and Applied Markets | ||||
Net revenue | 1,019 | 897 | 2,891 | 2,701 |
Agilent CrossLab | ||||
Net revenue | 359 | 343 | 1,071 | 1,003 |
Diagnostics and Genomics | ||||
Net revenue | 340 | 346 | 1,037 | 955 |
Americas | ||||
Net revenue | 671 | 606 | 1,967 | 1,742 |
Americas | Life Sciences and Applied Markets | ||||
Net revenue | 336 | 289 | 974 | 864 |
Americas | Agilent CrossLab | ||||
Net revenue | 147 | 130 | 416 | 376 |
Americas | Diagnostics and Genomics | ||||
Net revenue | 188 | 187 | 577 | 502 |
Europe | ||||
Net revenue | 407 | 423 | 1,281 | 1,275 |
Europe | Life Sciences and Applied Markets | ||||
Net revenue | 210 | 218 | 678 | 677 |
Europe | Agilent CrossLab | ||||
Net revenue | 94 | 94 | 289 | 281 |
Europe | Diagnostics and Genomics | ||||
Net revenue | 103 | 111 | 314 | 317 |
Asia Pacific | ||||
Net revenue | 640 | 557 | 1,751 | 1,642 |
Asia Pacific | Life Sciences and Applied Markets | ||||
Net revenue | 473 | 390 | 1,239 | 1,160 |
Asia Pacific | Agilent CrossLab | ||||
Net revenue | 118 | 119 | 366 | 346 |
Asia Pacific | Diagnostics and Genomics | ||||
Net revenue | $ 49 | $ 48 | $ 146 | $ 136 |
REVENUE - Revenue by End Market
REVENUE - Revenue by End Markets (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2022 | Jul. 31, 2021 | |
Net revenue | $ 1,718 | $ 1,586 | $ 4,999 | $ 4,659 |
Pharmaceutical and Biopharmaceutical | ||||
Net revenue | 643 | 576 | 1,834 | 1,628 |
Chemical and Energy | ||||
Net revenue | 389 | 334 | 1,097 | 976 |
Diagnostics and Clinical | ||||
Net revenue | 234 | 242 | 718 | 691 |
Food | ||||
Net revenue | 151 | 143 | 446 | 449 |
Academia and Government | ||||
Net revenue | 139 | 138 | 426 | 423 |
Environmental and Forensics | ||||
Net revenue | $ 162 | $ 153 | $ 478 | $ 492 |
REVENUE - Revenue by Type (Deta
REVENUE - Revenue by Type (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2022 | Jul. 31, 2021 | |
Net revenue | $ 1,718 | $ 1,586 | $ 4,999 | $ 4,659 |
Instrumentation | ||||
Net revenue | 737 | 640 | 2,074 | 1,953 |
Non-Instrumentation and Other | ||||
Net revenue | $ 981 | $ 946 | $ 2,925 | $ 2,706 |
REVENUE - Contract Assets and L
REVENUE - Contract Assets and Liability (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Jul. 31, 2022 | Jul. 31, 2021 | Oct. 31, 2021 | |
Contract Asset | |||
Contract Assets (Unbilled Accounts Receivable) | $ 273 | $ 197 | |
Contract Liability | |||
Contract liability ending balance as of October 31, 2021 | 519 | ||
Net revenue deferred in the period | 391 | ||
Revenue recognized that was included in the contract liability balance at the beginning of the period | (336) | $ (322) | |
Change in deferrals from customer cash advances, net of revenue recognized | 39 | ||
Currency Translation and Other Adjustment | (25) | ||
Contract liability ending balance as of July 31, 2022 | $ 588 |
REVENUE - Remaining Performance
REVENUE - Remaining Performance Obligation (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-31 $ in Millions | Jul. 31, 2022 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation expected timing of satisfaction period | 12 months |
Remaining performance obligation amount | $ 382 |
SHARE-BASED COMPENSATION Text (
SHARE-BASED COMPENSATION Text (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2022 | Jul. 31, 2021 | Oct. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||||
ESPP plan purchase price (in hundredths) | 85% | 85% | 85% | 85% | |
Inventory | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Share-based compensation capitalized in inventory | $ 0 | $ 0 | |||
Share-based Payment Arrangement, Option [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Vesting percentage | 25% | 25% | 25% | 25% | |
Vesting Period | 4 years | 4 years | 4 years | 4 years | |
Maximum contractual term, Expiration Period | 10 years | 10 years | 10 years | 10 years | |
Exercise Price of Common Stock, Percent of FMV | 100% | 100% | 100% | 100% | |
Restricted Stock Units (RSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Vesting percentage | 25% | 25% | 25% | 25% | |
Vesting Period | 4 years | 4 years | 4 years | 4 years | |
Minimum | Performance Shares [LTPP] | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Vesting percentage | 0% | 0% | 0% | 0% | |
Maximum | Performance Shares [LTPP] | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Vesting percentage | 200% | 200% | 200% | 200% |
SHARE-BASED COMPENSATION Alloca
SHARE-BASED COMPENSATION Allocated Share-based compensation expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2022 | Jul. 31, 2021 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ||||
Share-based compensation expense | $ 28 | $ 23 | $ 100 | $ 90 |
Cost of Products and Services | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ||||
Share-based compensation expense | 7 | 6 | 24 | 21 |
Research and Development | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ||||
Share-based compensation expense | 3 | 3 | 11 | 9 |
Selling, General and Administrative | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ||||
Share-based compensation expense | $ 18 | $ 14 | $ 65 | $ 60 |
SHARE-BASED COMPENSATION Fair V
SHARE-BASED COMPENSATION Fair Value Assumptions (Details) | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2022 | Jul. 31, 2021 | |
Share-based Payment Arrangement, Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Weighted average risk-free interest rate | 3.20% | 0.90% | 1.40% | 0.50% |
Dividend yield | 0.70% | 0.60% | 0.50% | 0.70% |
Weighted average volatility | 27% | 26% | 26% | 26% |
Expected Life | 5 years 6 months | 5 years 6 months | 5 years 6 months | 5 years 6 months |
LTPP | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Volatility of Agilent shares | 29% | 30% | 29% | 30% |
Volatility of selected peer-company shares - Minimum | 23% | 24% | 23% | 24% |
Volatility of selected peer-company shares - Maximum | 81% | 57% | 81% | 57% |
Pair-wise correlation with selected peers (in hundredths) | 41% | 45% | 41% | 45% |
LTPP & RSU | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Post-vest holding restriction discount for all executive awards | 6.50% | 6.80% | 6.50% | 6.80% |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2022 | Jul. 31, 2021 | |
Income Tax Disclosure | ||||
Provision (benefit) for income taxes | $ 68 | $ 63 | $ 163 | $ 144 |
Effective income tax rate | 17.10% | 19.30% | 15.50% | 15.80% |
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations | $ 8 | $ 8 | $ 24 | |
Share-based Payment Arrangement, Expense, Tax Benefit | $ 18 | $ 24 |
NET INCOME PER SHARE (Details)
NET INCOME PER SHARE (Details) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2022 | Jul. 31, 2021 | |
Numerator: | ||||
Net income | $ 329 | $ 264 | $ 886 | $ 768 |
Denominators: | ||||
Basic weighted-average shares | 298,000 | 303,000 | 300,000 | 305,000 |
Potential common shares - stock options and other employee stock plans | 1,000 | 3,000 | 1,000 | 2,000 |
Diluted weighted average shares | 299,000 | 306,000 | 301,000 | 307,000 |
Anti-dilutive shares excluded from computation of dilutive earnings per share (in shares) | 0 | 0 | 0 | 0 |
INVENTORY (Details)
INVENTORY (Details) - USD ($) $ in Millions | Jul. 31, 2022 | Oct. 31, 2021 |
Inventory, Net [Abstract] | ||
Finished goods | $ 545 | $ 463 |
Purchased parts and fabricated assemblies | 465 | 367 |
Inventory | $ 1,010 | $ 830 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill Roll forward (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2022 | Jul. 31, 2021 | |
Goodwill [Line Items] | ||||
Goodwill impairment | $ 0 | $ 0 | $ 0 | $ 0 |
Goodwill Roll Forward | ||||
Goodwill beginning balance | 3,975 | |||
Foreign currency translation impact | (27) | |||
Goodwill arising from acquisitions | 0 | |||
Goodwill ending balance | 3,948 | 3,948 | ||
Life Sciences and Applied Markets | ||||
Goodwill Roll Forward | ||||
Goodwill reassigned to segment | 307 | |||
Goodwill beginning balance | 1,743 | |||
Foreign currency translation impact | (11) | |||
Goodwill ending balance | 1,732 | 1,732 | ||
Diagnostics and Genomics | ||||
Goodwill Roll Forward | ||||
Goodwill beginning balance | 1,964 | |||
Foreign currency translation impact | (10) | |||
Goodwill ending balance | 1,954 | 1,954 | ||
Agilent CrossLab | ||||
Goodwill Roll Forward | ||||
Goodwill reassigned to segment | 10 | |||
Goodwill beginning balance | 268 | |||
Foreign currency translation impact | (6) | |||
Goodwill ending balance | $ 262 | $ 262 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS Disclosures and Components of Purchased Other Intangibles (Details) - USD ($) $ in Millions | Jul. 31, 2022 | Oct. 31, 2021 |
Finite-Lived Intangible Assets, Net | ||
Gross Carrying Amount | $ 2,324 | $ 2,314 |
Total Intangible Assets | 2,334 | 2,325 |
Accumulated Amortization | 1,485 | 1,344 |
Net Book Value | 849 | 981 |
Finite-Lived Intangible Assets, Net | 839 | 970 |
Purchased Technology | ||
Finite-Lived Intangible Assets, Net | ||
Gross Carrying Amount | 1,735 | 1,742 |
Accumulated Amortization | 1,047 | 972 |
Net Book Value | 688 | 770 |
Trademark/Tradenames | ||
Finite-Lived Intangible Assets, Net | ||
Gross Carrying Amount | 196 | 196 |
Accumulated Amortization | 144 | 133 |
Net Book Value | 52 | 63 |
Customer Relationships | ||
Finite-Lived Intangible Assets, Net | ||
Gross Carrying Amount | 353 | 357 |
Accumulated Amortization | 278 | 228 |
Net Book Value | 75 | 129 |
Backlog | ||
Finite-Lived Intangible Assets, Net | ||
Gross Carrying Amount | 8 | 8 |
Accumulated Amortization | 7 | 3 |
Net Book Value | 1 | 5 |
Third-Party Technology and Licenses | ||
Finite-Lived Intangible Assets, Net | ||
Gross Carrying Amount | 32 | 11 |
Accumulated Amortization | 9 | 8 |
Net Book Value | 23 | 3 |
In-Process R&D | ||
Indefinite-Lived Intangible Assets (Excluding Goodwill) | ||
In-Process R&D | $ 10 | $ 11 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS Textuals (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2022 | Jul. 31, 2021 | |
Finite-Lived Intangible Assets | ||||
Addition to other intangible assets | $ 21 | |||
Additions to goodwill | 0 | |||
Foreign currency translation impact on other intangible assets | (3) | |||
Goodwill impairment | $ 0 | $ 0 | 0 | $ 0 |
Amortization of intangible assets during the period | $ 48 | $ 54 | $ 150 | $ 144 |
GOODWILL AND OTHER INTANGIBLE_6
GOODWILL AND OTHER INTANGIBLE ASSETS - Estimated Future Amortization (Details) $ in Millions | Jul. 31, 2022 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Remainder of 2022 | $ 41 |
2023 | 143 |
2024 | 125 |
2025 | 100 |
2026 | 71 |
2027 | 69 |
Thereafter | $ 290 |
FAIR VALUE MEASUREMENTS, Fair v
FAIR VALUE MEASUREMENTS, Fair value of assets and liabilities measured on a recurring basis (Details) - USD ($) $ in Millions | Jul. 31, 2022 | Apr. 30, 2022 | Oct. 31, 2021 | Jul. 31, 2021 | Apr. 30, 2021 | Oct. 31, 2020 |
Assets | ||||||
Short term investments (Equity securities with RDFV) | $ 6 | $ 91 | ||||
Liabilities | ||||||
Contingent Consideration | 67 | $ 67 | 89 | $ 110 | $ 96 | $ 0 |
Fair Value, Measurements, Recurring | ||||||
Assets | ||||||
Total assets measured at fair value | 564 | 1,084 | ||||
Liabilities | ||||||
Total liabilities measured at fair value | 107 | 128 | ||||
Fair Value, Measurements, Recurring | Other Current Assets | ||||||
Assets | ||||||
Cash equivalents (money market funds) | 479 | 919 | ||||
Derivative instruments (foreign exchange contracts) | 23 | 9 | ||||
Short term investments (Equity securities with RDFV) | 5 | 91 | ||||
Fair Value, Measurements, Recurring | Other assets | ||||||
Assets | ||||||
Trading securities | 32 | 34 | ||||
Other investments | 25 | 31 | ||||
Fair Value, Measurements, Recurring | Other accrued liabilities | ||||||
Liabilities | ||||||
Derivative instruments (foreign exchange contracts) | 8 | 5 | ||||
Contingent Consideration | 66 | 62 | ||||
Fair Value, Measurements, Recurring | Other long-term liabilities | ||||||
Liabilities | ||||||
Deferred compensation liability | 32 | 34 | ||||
Contingent Consideration | 1 | 27 | ||||
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||||
Assets | ||||||
Total assets measured at fair value | 511 | 1,036 | ||||
Liabilities | ||||||
Total liabilities measured at fair value | 0 | 0 | ||||
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other Current Assets | ||||||
Assets | ||||||
Cash equivalents (money market funds) | 479 | 919 | ||||
Derivative instruments (foreign exchange contracts) | 0 | 0 | ||||
Short term investments (Equity securities with RDFV) | 0 | 83 | ||||
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other assets | ||||||
Assets | ||||||
Trading securities | 32 | 34 | ||||
Other investments | 0 | 0 | ||||
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other accrued liabilities | ||||||
Liabilities | ||||||
Derivative instruments (foreign exchange contracts) | 0 | 0 | ||||
Contingent Consideration | 0 | 0 | ||||
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other long-term liabilities | ||||||
Liabilities | ||||||
Deferred compensation liability | 0 | 0 | ||||
Contingent Consideration | 0 | 0 | ||||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||||||
Assets | ||||||
Total assets measured at fair value | 53 | 48 | ||||
Liabilities | ||||||
Total liabilities measured at fair value | 40 | 39 | ||||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Other Current Assets | ||||||
Assets | ||||||
Cash equivalents (money market funds) | 0 | 0 | ||||
Derivative instruments (foreign exchange contracts) | 23 | 9 | ||||
Short term investments (Equity securities with RDFV) | 5 | 8 | ||||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Other assets | ||||||
Assets | ||||||
Trading securities | 0 | 0 | ||||
Other investments | 25 | 31 | ||||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Other accrued liabilities | ||||||
Liabilities | ||||||
Derivative instruments (foreign exchange contracts) | 8 | 5 | ||||
Contingent Consideration | 0 | 0 | ||||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Other long-term liabilities | ||||||
Liabilities | ||||||
Deferred compensation liability | 32 | 34 | ||||
Contingent Consideration | 0 | 0 | ||||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||||||
Assets | ||||||
Total assets measured at fair value | 0 | 0 | ||||
Liabilities | ||||||
Total liabilities measured at fair value | 67 | 89 | ||||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Other Current Assets | ||||||
Assets | ||||||
Cash equivalents (money market funds) | 0 | 0 | ||||
Derivative instruments (foreign exchange contracts) | 0 | 0 | ||||
Short term investments (Equity securities with RDFV) | 0 | 0 | ||||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Other assets | ||||||
Assets | ||||||
Trading securities | 0 | 0 | ||||
Other investments | 0 | 0 | ||||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Other accrued liabilities | ||||||
Liabilities | ||||||
Derivative instruments (foreign exchange contracts) | 0 | 0 | ||||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Other accrued liabilities | Resolution Bioscience, Inc. | ||||||
Liabilities | ||||||
Contingent Consideration | 66 | 62 | ||||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Other long-term liabilities | ||||||
Liabilities | ||||||
Deferred compensation liability | 0 | 0 | ||||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Other long-term liabilities | Resolution Bioscience, Inc. | ||||||
Liabilities | ||||||
Contingent Consideration | $ 1 | $ 27 |
FAIR VALUE MEASUREMENTS, Non Ma
FAIR VALUE MEASUREMENTS, Non Marketable Securities and Investment Impairments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2022 | Jul. 31, 2021 | |
Fair Value Disclosures [Abstract] | ||||
Equity Securities, FV-NI, Gain (Loss) | $ 2 | $ 9 | $ (60) | $ 24 |
Equity Securities, FV-NI, Realized Gain (Loss) | 12 | 0 | 12 | 0 |
Unrealized gain (loss) on equity securities | (10) | 9 | (72) | 24 |
Impairment of Investments | $ 0 | $ 0 | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS, Contin
FAIR VALUE MEASUREMENTS, Contingent Consideration (Details) - USD ($) $ in Millions | 3 Months Ended | |||||
Jul. 31, 2022 | Apr. 30, 2022 | Oct. 31, 2021 | Jul. 31, 2021 | Apr. 30, 2021 | Oct. 31, 2020 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||||
Fair Value of contingent consideration | $ 67 | $ 67 | $ 89 | $ 110 | $ 96 | $ 0 |
Resolution Bioscience, Inc. | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||||
Contingent Consideration maximum earn-out period | 2 years 4 months 24 days | |||||
Contingent Consideration Arrangement - Maximum | $ 145 | |||||
Resolution Bioscience, Inc. | Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | Revenue Component | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||||
Fair Value of contingent consideration | $ 0 |
FAIR VALUE MEASUREMENTS - Recon
FAIR VALUE MEASUREMENTS - Reconciliation of Beginning and Ending Level 3 Contingent Consideration Liability (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2022 | Jul. 31, 2021 | |
Fair Value Disclosures [Abstract] | ||||
Fair Value Contingent Consideration, Beginning Balance | $ 67 | $ 96 | $ 89 | $ 0 |
Additions to contingent consideration (including measurement period adjustment) | 0 | 14 | 3 | 110 |
Change in fair value (included within SG&A) | 0 | 0 | (25) | 0 |
Fair Value Contingent Consideration, Ending Balance | $ 67 | $ 110 | $ 67 | $ 110 |
FAIR VALUE MEASUREMENTS, Assets
FAIR VALUE MEASUREMENTS, Assets and Liabilities measured at Fair Value on a Non-Recurring Basis (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2022 | Jul. 31, 2021 | Oct. 31, 2021 | |
Long-Lived Assets | |||||
Impairment of Long-Lived Assets Held-for-use | $ 0 | $ 0 | $ 0 | $ 2 | |
Carrying value of impaired long-lived assets held for use | 2 | 2 | |||
Fair value of impaired long-lived assets held for use | 0 | 0 | |||
Impairment of Long-Lived assets Held for sale | 0 | 0 | 0 | 0 | |
Non-Marketable Equity Securities | |||||
Impairment of non-marketable securities | 0 | 0 | 0 | 0 | |
Equity Securities without Readily Determinable Fair Value, Upward Price Adjustment, Annual Amount | 2 | $ 11 | 5 | $ 11 | |
Non-marketable equity securities carrying amount | $ 136 | $ 136 | $ 120 |
DERIVATIVES- Text (Details)
DERIVATIVES- Text (Details) $ in Millions | 9 Months Ended | ||||
Sep. 06, 2019 USD ($) | Sep. 15, 2016 USD ($) | Jul. 31, 2022 USD ($) | Aug. 16, 2019 USD ($) | Feb. 01, 2016 USD ($) contracts | |
Derivative Instruments and Hedging Activities Disclosure | |||||
Aggregate fair value of all derivative instruments with credit-risk-related contingent features that were in a net liability position | $ 0 | ||||
Senior Notes 2026 | Interest Rate Swap | Derivatives Designated as Hedging Instrument | Cash Flow Hedging | |||||
Terminated Derivative Contracts | |||||
Number of interest rate swap contracts terminated | contracts | 3 | ||||
Derivative, Notional Amount | $ 300 | ||||
Net Investment Hedge | |||||
Derivative Instruments, Gain (Loss) Reclassification from Accumulated OCI to Income, Estimated Net Amount to be Transferred | $ 10 | 4 | |||
Senior Notes 2029 | Treasury Lock [Member] | Derivatives Designated as Hedging Instrument | Cash Flow Hedging | |||||
Terminated Derivative Contracts | |||||
Derivative, Notional Amount | $ 250 | ||||
Net Investment Hedge | |||||
Derivative Instruments, Gain (Loss) Reclassification from Accumulated OCI to Income, Estimated Net Amount to be Transferred | $ 6 | $ 4 |
DERIVATIVES- Foreign Exchange F
DERIVATIVES- Foreign Exchange Forward Contracts (Details) $ in Millions | Jul. 31, 2022 USD ($) contracts |
Derivatives Designated as Hedging Instrument | Cash Flow Hedging | Foreign Exchange Forward | |
Derivative | |
Number of foreign exchange forward contracts (in units) | contracts | 276 |
Derivatives Designated as Hedging Instrument | Net Investment Hedging [Member] | Foreign Exchange Forward | |
Derivative | |
Number of foreign exchange forward contracts (in units) | contracts | 3 |
Derivatives Not Designated as Hedging Instruments | Foreign Exchange Forward | |
Derivative | |
Number of foreign exchange forward contracts (in units) | contracts | 173 |
Sell | Derivatives Designated as Hedging Instrument | Cash Flow Hedging | Forward Contracts USD | |
Derivative | |
Derivative, Notional Amount | $ 396 |
Sell | Derivatives Designated as Hedging Instrument | Cash Flow Hedging | Euro | Forward Contracts USD | |
Derivative | |
Derivative, Notional Amount | 72 |
Sell | Derivatives Designated as Hedging Instrument | Cash Flow Hedging | British Pound | Forward Contracts USD | |
Derivative | |
Derivative, Notional Amount | 67 |
Sell | Derivatives Designated as Hedging Instrument | Cash Flow Hedging | Canadian Dollar | Forward Contracts USD | |
Derivative | |
Derivative, Notional Amount | 50 |
Sell | Derivatives Designated as Hedging Instrument | Cash Flow Hedging | Japanese Yen | Forward Contracts USD | |
Derivative | |
Derivative, Notional Amount | 96 |
Sell | Derivatives Designated as Hedging Instrument | Cash Flow Hedging | Korean Won | Forward Contracts USD | |
Derivative | |
Derivative, Notional Amount | 68 |
Sell | Derivatives Designated as Hedging Instrument | Cash Flow Hedging | Chinese Yuan Renminbi | Forward Contracts USD | |
Derivative | |
Derivative, Notional Amount | 82 |
Sell | Derivatives Designated as Hedging Instrument | Net Investment Hedging [Member] | Forward Contracts USD | |
Derivative | |
Derivative, Notional Amount | 11 |
Sell | Derivatives Designated as Hedging Instrument | Net Investment Hedging [Member] | Euro | Forward Contracts USD | |
Derivative | |
Derivative, Notional Amount | 11 |
Sell | Derivatives Not Designated as Hedging Instruments | Forward Contracts USD | |
Derivative | |
Derivative, Notional Amount | 73 |
Sell | Derivatives Not Designated as Hedging Instruments | Canadian Dollar | Forward Contracts USD | |
Derivative | |
Derivative, Notional Amount | 17 |
Sell | Derivatives Not Designated as Hedging Instruments | Japanese Yen | Forward Contracts USD | |
Derivative | |
Derivative, Notional Amount | 28 |
Sell | Derivatives Not Designated as Hedging Instruments | Korean Won | Forward Contracts USD | |
Derivative | |
Derivative, Notional Amount | 16 |
Sell | Derivatives Not Designated as Hedging Instruments | Chinese Yuan Renminbi | Forward Contracts USD | |
Derivative | |
Derivative, Notional Amount | 76 |
Sell | Derivatives Not Designated as Hedging Instruments | Taiwan, New Dollars | Forward Contracts USD | |
Derivative | |
Derivative, Notional Amount | 12 |
Sell | Derivatives Not Designated as Hedging Instruments | India, Rupees | Forward Contracts USD | |
Derivative | |
Derivative, Notional Amount | 9 |
Sell | Derivatives Not Designated as Hedging Instruments | Other | Forward Contracts USD | |
Derivative | |
Derivative, Notional Amount | 8 |
Buy | Derivatives Designated as Hedging Instrument | Cash Flow Hedging | Singapore Dollar | Forward Contracts USD | |
Derivative | |
Derivative, Notional Amount | 33 |
Buy | Derivatives Designated as Hedging Instrument | Cash Flow Hedging | Other | Forward Contracts USD | |
Derivative | |
Derivative, Notional Amount | 6 |
Buy | Derivatives Not Designated as Hedging Instruments | Euro | Forward Contracts USD | |
Derivative | |
Derivative, Notional Amount | 22 |
Buy | Derivatives Not Designated as Hedging Instruments | British Pound | Forward Contracts USD | |
Derivative | |
Derivative, Notional Amount | 8 |
Buy | Derivatives Not Designated as Hedging Instruments | Danish Krone | Forward Contracts USD | |
Derivative | |
Derivative, Notional Amount | 37 |
Buy | Derivatives Not Designated as Hedging Instruments | Singapore Dollar | Forward Contracts USD | |
Derivative | |
Derivative, Notional Amount | $ 26 |
DERIVATIVES, Fair value of deri
DERIVATIVES, Fair value of derivative instruments and Consolidated Balance Sheet location (Details) - USD ($) $ in Millions | Jul. 31, 2022 | Oct. 31, 2021 |
Derivative Fair Value by Balance Sheet Location | ||
Derivatives asset fair value | $ 23 | $ 9 |
Derivatives liabilities fair value | 8 | 5 |
Derivatives Designated as Hedging Instruments | Cash Flow Hedging | Foreign Exchange Contracts | Other Current Assets | ||
Derivative Fair Value by Balance Sheet Location | ||
Derivatives asset fair value | 19 | 6 |
Derivatives Designated as Hedging Instruments | Cash Flow Hedging | Foreign Exchange Contracts | Other Accrued Liabilities | ||
Derivative Fair Value by Balance Sheet Location | ||
Derivatives liabilities fair value | 3 | 2 |
Derivatives Not Designated as Hedging Instruments | Foreign Exchange Contracts | Other Current Assets | ||
Derivative Fair Value by Balance Sheet Location | ||
Derivatives asset fair value | 4 | 3 |
Derivatives Not Designated as Hedging Instruments | Foreign Exchange Contracts | Other Accrued Liabilities | ||
Derivative Fair Value by Balance Sheet Location | ||
Derivatives liabilities fair value | $ 5 | $ 3 |
DERIVATIVES, Effect of derivati
DERIVATIVES, Effect of derivative instruments on Consolidated Statement of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2022 | Jul. 31, 2021 | |
Derivatives Designated as Hedging Instrument | Cash Flow Hedging | Foreign Exchange Contracts | ||||
Derivative | ||||
Loss Reclassified from Accumulated OCI into cost of sales | $ (4) | $ (18) | ||
Loss Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration] | Cost of revenue | Cost of revenue | ||
Gain Reclassified from Accumulated OCI into cost of sales | $ 12 | $ 20 | ||
Gain Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration] | Costs and Expenses | Cost of revenue | ||
Gain (loss) recognized | $ 0 | $ (1) | $ 0 | $ (1) |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Cost of revenue | Cost of revenue | Cost of revenue | Cost of revenue |
Derivatives Designated as Hedging Instrument | Cash Flow Hedging | Foreign Exchange Contracts | Accumulated Other Comprehensive Income (Loss) | ||||
Derivative | ||||
Gain (loss) recognized in accumulated other comprehensive loss | $ 5 | $ 1 | $ 34 | $ (5) |
Derivatives Designated as Hedging Instrument | Cash Flow Hedging | Foreign Exchange Contracts | Interest Expense | ||||
Derivative | ||||
Loss reclassified from accumulated other comprehensive loss into Interest expense | (1) | (1) | (1) | (1) |
Derivatives Designated as Hedging Instrument | Net Investment Hedging [Member] | Foreign Exchange Contracts | Accumulated Other Comprehensive Income (Loss) | ||||
Derivative | ||||
Gain (loss) recognized in accumulated other comprehensive loss - translation adjustment | 0 | 1 | 4 | (2) |
Derivatives Not Designated as Hedging Instruments | ||||
Derivative | ||||
Gain (loss) recognized | $ 0 | $ (3) | $ (1) | $ (4) |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other income (expense), net | Other income (expense), net | Other income (expense), net | Other income (expense), net |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities (Details) - Cash Flow Hedging $ in Millions | 3 Months Ended |
Jul. 31, 2022 USD ($) | |
Derivative | |
Net gain to be reclassified within next Twelve Months | $ 17 |
Cost of Products and Services | |
Derivative | |
Net gain to be reclassified within next Twelve Months | $ 16 |
RETIREMENT PLANS AND POST RET_3
RETIREMENT PLANS AND POST RETIREMENT PENSION PLANS- Components of net periodic costs (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2022 | Jul. 31, 2021 | |
Pension Plan | Foreign Plan | ||||
Defined Benefit Plan, Net Periodic Benefit Cost | ||||
Service cost - benefits earned during the period | $ 6 | $ 7 | $ 18 | $ 18 |
Interest cost on benefit obligation | 2 | 2 | 7 | 6 |
Expected return on plan assets | (10) | (12) | (33) | (37) |
Amortization: | ||||
Actuarial losses | 6 | 13 | 19 | 40 |
Prior service credits | 0 | 0 | 0 | 0 |
Total net plan costs (benefits) | 4 | 10 | 11 | 27 |
Pension Plan | United States | ||||
Defined Benefit Plan, Net Periodic Benefit Cost | ||||
Service cost - benefits earned during the period | 0 | 0 | 0 | 0 |
Interest cost on benefit obligation | 3 | 3 | 10 | 10 |
Expected return on plan assets | (6) | (7) | (20) | (22) |
Amortization: | ||||
Actuarial losses | 0 | 1 | 0 | 3 |
Prior service credits | 0 | 0 | 0 | 0 |
Total net plan costs (benefits) | (3) | (3) | (10) | (9) |
Other Postretirement Benefits Plan | United States | ||||
Defined Benefit Plan, Net Periodic Benefit Cost | ||||
Service cost - benefits earned during the period | 0 | 1 | 0 | 1 |
Interest cost on benefit obligation | 1 | 0 | 2 | 2 |
Expected return on plan assets | (1) | (2) | (4) | (5) |
Amortization: | ||||
Actuarial losses | 0 | 1 | (1) | 3 |
Prior service credits | (1) | 0 | (1) | (1) |
Total net plan costs (benefits) | $ (1) | $ 0 | $ (4) | $ 0 |
RETIREMENT PLANS AND POST RET_4
RETIREMENT PLANS AND POST RETIREMENT PENSION PLANS (Details) (Employer Contributions)) - Pension Plan - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2022 | Jul. 31, 2021 | |
Foreign Plan | ||||
Defined Benefit Plan Disclosure | ||||
Employer Contributions | $ 5 | $ 7 | $ 13 | $ 16 |
Expected future employer contributions | 6 | 6 | ||
United States | ||||
Defined Benefit Plan Disclosure | ||||
Employer Contributions | 0 | $ 0 | 0 | $ 0 |
Expected future employer contributions | $ 0 | $ 0 |
WARRANTIES AND CONTINGENCIES (D
WARRANTIES AND CONTINGENCIES (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Jul. 31, 2022 | Jul. 31, 2021 | Oct. 31, 2021 | |
Movement in Standard Product Warranty Accrual | |||
Beginning balance | $ 30 | $ 32 | |
Accruals for warranties including change in estimate | 38 | 41 | |
Settlements made during the period | (37) | (41) | |
Ending balance at end of period | 31 | 32 | |
Standard Product Warranty Disclosure | |||
Accruals for warranties due within one year | 30 | 31 | |
Accrual for warranties due after one year | 1 | $ 1 | |
Guarantees | |||
Guarantees | $ 39 | $ 46 |
SHORT-TERM DEBT - Credit Facili
SHORT-TERM DEBT - Credit Facility (Details) - USD ($) | 9 Months Ended | ||||
Mar. 13, 2019 | Jul. 31, 2022 | Jul. 31, 2021 | Jun. 18, 2021 | Apr. 21, 2021 | |
Short-term Debt | |||||
Repayments of commercial paper | $ (760,000,000) | $ (1,437,000,000) | |||
Proceeds from Commercial Paper | 940,000,000 | $ 1,492,000,000 | |||
Line of Credit [Member] | 5 yr Unsecured Credit Facility | |||||
Short-term Debt | |||||
Initiation date of credit facility | Mar. 13, 2019 | ||||
Maximum borrowing capacity of credit facility | $ 1,000,000,000 | $ 1,350,000,000 | |||
Credit faciity terms (in years) | five | ||||
Expiration date of credit facility | Mar. 13, 2024 | ||||
Amount outstanding on credit facility | 0 | ||||
Line of Credit [Member] | Additional Incremental Term Loan Facility | |||||
Short-term Debt | |||||
Maximum borrowing capacity of credit facility | $ 500,000,000 | $ 500,000,000 | |||
Amount outstanding on credit facility | 0 | ||||
Line of Credit [Member] | Commercial Paper | |||||
Short-term Debt | |||||
Maximum borrowing capacity of credit facility | $ 1,350,000,000 | ||||
Amount outstanding on credit facility | $ 180,000,000 | ||||
Weighted Average Interest Rate, at Point in Time | 2.43% |
LONG-TERM DEBT (Details)
LONG-TERM DEBT (Details) - USD ($) $ in Millions | Jul. 31, 2022 | Oct. 31, 2021 |
Debt Instrument | ||
Long-term debt | $ 2,732 | $ 2,729 |
Senior Notes 2023 | ||
Debt Instrument | ||
Long-term debt | 0 | 599 |
Senior Notes 2026 | ||
Debt Instrument | ||
Long-term debt | 299 | 298 |
Senior Notes 2029 | ||
Debt Instrument | ||
Long-term debt | 494 | 494 |
Senior Notes 2030 | ||
Debt Instrument | ||
Long-term debt | 496 | 496 |
Senior Notes 2031 | ||
Debt Instrument | ||
Long-term debt | 843 | $ 842 |
Senior Notes | ||
Debt Instrument | ||
Long-term debt | $ 2,132 |
LONG-TERM DEBT - Text (Details)
LONG-TERM DEBT - Text (Details) - USD ($) $ in Millions | 9 Months Ended | ||||
May 04, 2022 | Jul. 31, 2022 | Jul. 31, 2021 | Apr. 15, 2022 | Oct. 31, 2021 | |
Debt Instrument | |||||
Early Repayment of Senior Debt | $ 609 | $ 417 | |||
Loss on extinguishment of debt | 9 | $ 17 | |||
Long-term debt | 2,732 | $ 2,729 | |||
Senior Notes 2031 | |||||
Debt Instrument | |||||
Long-term debt | 843 | 842 | |||
Term Loan Maturing 2025 | |||||
Debt Instrument | |||||
Maximum borrowing capacity of credit facility | $ 600 | ||||
Long-term debt | $ 600 | ||||
Long-Term Debt, Weighted Average Interest Rate, at Point in Time | 2.75% | ||||
Senior Notes | |||||
Debt Instrument | |||||
Long-term debt | $ 2,132 | ||||
Senior Notes 2023 | |||||
Debt Instrument | |||||
Repayments of Senior Debt | $ 609 | ||||
Early Repayment of Senior Debt | 600 | ||||
Loss on extinguishment of debt | 9 | ||||
Debt Instrument, Increase, Accrued Interest | $ 7 | ||||
Long-term debt | $ 0 | $ 599 |
STOCKHOLDERS' EQUITY - Stock Re
STOCKHOLDERS' EQUITY - Stock Repurchase Program (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2022 | Jul. 31, 2021 | Feb. 18, 2021 | Nov. 19, 2018 | |
2019 Repurchase Program [Member] | ||||||
Share repurchase program | ||||||
Share repurchase program authorized amount | $ 1,750 | |||||
Shares repurchased and retired during period, (Shares) | 3,050,000 | |||||
Shares repurchased and retired during period, (Value) | $ 365 | |||||
Remaining authorized repurchase amount under share repurchase program | $ 193 | |||||
2021 Repurchase Program [Member] | ||||||
Share repurchase program | ||||||
Share repurchase program authorized amount | $ 2,000 | |||||
Shares repurchased and retired during period, (Shares) | 2,673,000 | 804,352 | 7,331,000 | 2,192,000 | ||
Shares repurchased and retired during period, (Value) | $ 323 | $ 113 | $ 1,004 | $ 287 | ||
Remaining authorized repurchase amount under share repurchase program | $ 573 | $ 573 |
STOCKHOLDER"S EQUITY - Dividend
STOCKHOLDER"S EQUITY - Dividends (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2022 | Jul. 31, 2021 | |
Dividends Paid | ||||
Cash dividends paid per common share | $ 0.210 | $ 0.194 | $ 0.630 | $ 0.582 |
Aggregate amount of cash dividends paid | $ 62 | $ 59 | $ 188 | $ 177 |
Dividends Declared | ||||
Dividends Declared per share | $ 0.210 | $ 0.194 | $ 0.630 | $ 0.582 |
STOCKHOLDER'S EQUITY - Accumula
STOCKHOLDER'S EQUITY - Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2022 | Jul. 31, 2021 | |
Beginning Balance | $ (333) | $ (282) | ||
Other comprehensive income (loss) before reclassifications | (24) | (69) | ||
Amounts reclassified out of accumulated other comprehensive income (loss) | (5) | (1) | ||
Tax expense (benefit) | 0 | 10 | ||
Other comprehensive income (loss) | (29) | $ (2) | (80) | $ 68 |
Ending Balance | (362) | (362) | ||
Foreign Currency Translation | ||||
Beginning Balance | (266) | (185) | ||
Other comprehensive income (loss) before reclassifications | (29) | (110) | ||
Amounts reclassified out of accumulated other comprehensive income (loss) | 0 | 0 | ||
Tax expense (benefit) | 0 | 0 | ||
Other comprehensive income (loss) | (29) | (110) | ||
Ending Balance | (295) | (295) | ||
Prior Service Credits | ||||
Beginning Balance | 124 | 124 | ||
Other comprehensive income (loss) before reclassifications | 0 | 0 | ||
Amounts reclassified out of accumulated other comprehensive income (loss) | (1) | (1) | ||
Tax expense (benefit) | 0 | 0 | ||
Other comprehensive income (loss) | (1) | (1) | ||
Ending Balance | 123 | 123 | ||
Actuarial Losses | ||||
Beginning Balance | (210) | (224) | ||
Other comprehensive income (loss) before reclassifications | 0 | 7 | ||
Amounts reclassified out of accumulated other comprehensive income (loss) | 7 | 19 | ||
Tax expense (benefit) | 2 | 7 | ||
Other comprehensive income (loss) | 5 | 19 | ||
Ending Balance | (205) | (205) | ||
Unrealized Gains (Losses) on Derivatives | ||||
Beginning Balance | 19 | 3 | ||
Other comprehensive income (loss) before reclassifications | 5 | 34 | ||
Amounts reclassified out of accumulated other comprehensive income (loss) | (11) | (19) | ||
Tax expense (benefit) | (2) | 3 | ||
Other comprehensive income (loss) | (4) | 12 | ||
Ending Balance | $ 15 | $ 15 |
STOCKHOLDERS' EQUITY - Reclassi
STOCKHOLDERS' EQUITY - Reclassifications out of accumulated comprehensive income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2022 | Jul. 31, 2021 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives | ||||
Unrealized gain (loss) on derivatives | $ 11 | $ (5) | $ 19 | $ (19) |
Amounts reclassified into earnings related to derivative instruments, tax | (3) | 1 | (5) | 5 |
Unrealized gain (loss) on derivatives after reclassification and after Tax | 8 | (4) | 14 | (14) |
Actuarial net loss | (7) | (15) | (19) | (47) |
Prior service benefit | 1 | 0 | 1 | 1 |
Actuarial net loss and prior service benefit reclassified, before tax | (6) | (15) | (18) | (46) |
Tax on actuarial net loss and prior service benefit reclassified | 2 | 3 | 5 | 11 |
Actuarial net loss and prior service benefit reclassified, net of tax | (4) | (12) | (13) | (35) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 4 | (16) | 1 | (49) |
Cost of Products and Services | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives | ||||
Unrealized gain (loss) on derivatives | 12 | (4) | 20 | (18) |
Interest Expense | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives | ||||
Unrealized gain (loss) on derivatives | $ (1) | $ (1) | $ (1) | $ (1) |
SEGMENT INFORMATION - Profitabi
SEGMENT INFORMATION - Profitability (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2022 USD ($) | Jul. 31, 2021 USD ($) | Jul. 31, 2022 USD ($) | Jul. 31, 2021 USD ($) | |
Segment Reporting Information | ||||
Number of operating segments | 3 | 3 | 3 | 3 |
Segment Reporting Information | ||||
Net revenue | $ 1,718 | $ 1,586 | $ 4,999 | $ 4,659 |
Income from operations | 411 | 336 | 1,147 | 952 |
Life Sciences and Applied Markets | ||||
Segment Reporting Information | ||||
Net revenue | 1,019 | 897 | 2,891 | 2,701 |
Income from operations | 311 | 250 | 821 | 741 |
Diagnostics and Genomics | ||||
Segment Reporting Information | ||||
Net revenue | 340 | 346 | 1,037 | 955 |
Income from operations | 73 | 78 | 232 | 202 |
Agilent CrossLab | ||||
Segment Reporting Information | ||||
Net revenue | 359 | 343 | 1,071 | 1,003 |
Income from operations | 88 | 84 | 266 | 229 |
Segment Total | ||||
Segment Reporting Information | ||||
Net revenue | 1,718 | 1,586 | 4,999 | 4,659 |
Income from operations | $ 472 | $ 412 | $ 1,319 | $ 1,172 |
SEGMENT INFORMATION - Reconcili
SEGMENT INFORMATION - Reconciliation of Reportable Results (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2022 | Jul. 31, 2021 | |
Reconciliation of Operating Profit from Segments to Consolidated | ||||
Income from operations | $ 411 | $ 336 | $ 1,147 | $ 952 |
Transformational initiatives | (8) | (12) | (21) | (32) |
Amortization of intangible assets related to business combinations | (48) | (53) | (149) | (143) |
Acquisition and integration costs | (4) | (10) | (19) | (32) |
Asset Impairment | 0 | 0 | 0 | (2) |
Change in fair value of contingent consideration | 0 | 0 | 25 | 0 |
Business exit and divestiture costs | 0 | 0 | (7) | (4) |
Other | (1) | (1) | (1) | (7) |
Interest income | 2 | 0 | 4 | 1 |
Interest expense | (19) | (21) | (61) | (60) |
Other income (expense), net | 3 | 12 | (41) | 19 |
Income before taxes, as reported | 397 | 327 | 1,049 | 912 |
Segment Total | ||||
Reconciliation of Operating Profit from Segments to Consolidated | ||||
Income from operations | $ 472 | $ 412 | $ 1,319 | $ 1,172 |
SEGMENT INFORMATION - Segment A
SEGMENT INFORMATION - Segment Assets (Details) - USD ($) $ in Millions | Jul. 31, 2022 | Oct. 31, 2021 |
Segment Reporting Information | ||
Assets | $ 10,484 | $ 10,705 |
Life Sciences and Applied Markets | ||
Segment Reporting Information | ||
Assets | 3,888 | 3,741 |
Diagnostics and Genomics | ||
Segment Reporting Information | ||
Assets | 3,445 | 3,320 |
Agilent CrossLab | ||
Segment Reporting Information | ||
Assets | 872 | 839 |
Segment Total | ||
Segment Reporting Information | ||
Assets | $ 8,205 | $ 7,900 |