Cover Page
Cover Page - shares | 9 Months Ended | |
Jul. 31, 2021 | Aug. 27, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jul. 31, 2021 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2021 | |
Amendment Flag | false | |
Document Transition Report | false | |
Entity File Number | 001-36334 | |
Entity Registrant Name | KEYSIGHT TECHNOLOGIES, INC. | |
Entity Central Index Key | 0001601046 | |
Current Fiscal Year End Date | --10-31 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 46-4254555 | |
Entity Address, Address Line One | 1400 Fountaingrove Parkway | |
Entity Address, City or Town | Santa Rosa | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 95403 | |
City Area Code | (800) | |
Local Phone Number | 829-4444 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | KEYS | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 184,195,849 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2021 | Jul. 31, 2020 | |
Net revenue: | ||||
Revenues | $ 1,246 | $ 1,011 | $ 3,647 | $ 3,001 |
Costs and expenses: | ||||
Cost of Goods and Services Sold | 458 | 405 | 1,415 | 1,224 |
Research and development | 207 | 169 | 615 | 522 |
Selling, general and administrative | 302 | 259 | 900 | 810 |
Other operating expense (income), net | (5) | (4) | (14) | (42) |
Total costs and expenses | 962 | 829 | 2,916 | 2,514 |
Income from operations | 284 | 182 | 731 | 487 |
Interest income | 1 | 1 | 2 | 11 |
Interest expense | (20) | (20) | (59) | (59) |
Other income (expense), net | 5 | 22 | (1) | 56 |
Income before taxes | 270 | 185 | 673 | 495 |
Provision for income taxes | 16 | 9 | 61 | 85 |
Net income | $ 254 | $ 176 | $ 612 | $ 410 |
Net income per share: | ||||
Basic (in dollars per share) | $ 1.38 | $ 0.94 | $ 3.31 | $ 2.19 |
Diluted (in dollars per share) | $ 1.36 | $ 0.93 | $ 3.27 | $ 2.16 |
Weighted average shares used in computing net income per share: | ||||
Basic (in shares) | 184 | 187 | 185 | 187 |
Diluted (in shares) | 186 | 190 | 187 | 190 |
Products | ||||
Net revenue: | ||||
Revenues | $ 1,021 | $ 813 | $ 2,987 | $ 2,423 |
Costs and expenses: | ||||
Cost of Goods and Services Sold | 370 | 330 | 1,151 | 992 |
Services and other | ||||
Net revenue: | ||||
Revenues | 225 | 198 | 660 | 578 |
Costs and expenses: | ||||
Cost of Goods and Services Sold | $ 88 | $ 75 | $ 264 | $ 232 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2021 | Jul. 31, 2020 | |
Other comprehensive income (loss): | ||||
Net income | $ 254 | $ 176 | $ 612 | $ 410 |
Unrealized gain (loss) on derivative instruments, net of tax benefit (expense) of $7, zero, $(4)and $2 | (22) | 0 | 18 | (7) |
Amounts reclassified into earnings related to derivative instruments, net of tax benefit (expense) of zero | (1) | 1 | (1) | 3 |
Foreign currency translation, net of tax benefit (expense) of zero | (7) | 37 | 10 | 30 |
Net defined benefit pension cost and post retirement plan costs: | ||||
Change in net actuarial loss, net of tax expense of $6, $4, $16 and $8 | 13 | 11 | 44 | 39 |
Change in net prior service credit, net of tax benefit of zero, $1, zero and $2 | 0 | (2) | 0 | (7) |
Other comprehensive income (loss) | (17) | 47 | 71 | 58 |
Total comprehensive income | $ 237 | $ 223 | $ 683 | $ 468 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2021 | Jul. 31, 2020 | |
Other comprehensive income (loss), tax, parenthetical disclosures [Abstract] | ||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax | $ 7 | $ 0 | $ (4) | $ 2 |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax | 0 | 0 | 0 | 0 |
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax | 0 | 0 | 0 | 0 |
Net defined benefit pension cost and post retirement plan costs, tax [Abstract] | ||||
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, Tax | 6 | 4 | 16 | 8 |
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), Reclassification Adjustment from AOCI, Tax | $ 0 | $ 1 | $ 0 | $ 2 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited) - USD ($) shares in Thousands, $ in Millions | Jul. 31, 2021 | Oct. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 2,153 | $ 1,756 |
Accounts receivable, net | 677 | 606 |
Inventory | 770 | 757 |
Other current assets | 229 | 255 |
Total current assets | 3,829 | 3,374 |
Property, plant and equipment, net | 616 | 595 |
Operating lease right-of-use assets | 231 | 182 |
Goodwill | 1,610 | 1,537 |
Other intangible assets, net | 283 | 361 |
Long-term investments | 68 | 61 |
Long-term deferred tax assets | 739 | 740 |
Other assets | 428 | 368 |
Total assets | 7,804 | 7,218 |
Current liabilities: | ||
Accounts payable | 249 | 224 |
Employee compensation and benefits | 294 | 289 |
Deferred revenue | 476 | 391 |
Income and other taxes payable | 47 | 64 |
Operating lease liabilities | 41 | 43 |
Other accrued liabilities | 92 | 70 |
Total current liabilities | 1,199 | 1,081 |
Long-term debt | 1,791 | 1,789 |
Retirement and post-retirement benefits | 348 | 362 |
Long-term deferred revenue | 179 | 175 |
Long-term operating lease liabilities | 196 | 149 |
Other long-term liabilities | 341 | 365 |
Total liabilities | 4,054 | 3,921 |
Commitments and Contingencies | ||
Stockholders' equity: | ||
Preferred stock; $0.01 par value; 100 million shares authorized; none issued and outstanding | 0 | 0 |
Common stock; $0.01 par value; 1 billion shares authorized; 197 million shares at July 31, 2021 and 196 million shares at October 31, 2020 issued | 2 | 2 |
Treasury stock at cost; 13.0 million shares at July 31, 2021 and 10.7 million shares at October 31, 2020 | (1,072) | (752) |
Additional paid-in-capital | 2,200 | 2,110 |
Retained earnings | 3,148 | 2,536 |
Accumulated other comprehensive loss | (528) | (599) |
Total stockholders' equity | 3,750 | 3,297 |
Total liabilities and equity | $ 7,804 | $ 7,218 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 100,000 | 100,000 |
Preferred stock, issued and outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited) (Parenthetical) - $ / shares shares in Thousands | Jul. 31, 2021 | Oct. 31, 2020 |
Stockholders' equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 100,000 | 100,000 |
Preferred stock, issued and outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Common Stock, Shares, Issued | 197,000 | 196,000 |
Treasury Stock, Shares | 13,000 | 10,700 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Jul. 31, 2021 | Jul. 31, 2020 | |
Cash flows from operating activities: | ||
Net income | $ 612 | $ 410 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 87 | 76 |
Amortization | 149 | 163 |
Share-based compensation | 83 | 72 |
Deferred tax expense (benefit) | (49) | 7 |
Excess and obsolete inventory-related charges | 20 | 21 |
Loss on settlement of pension plan | 16 | 0 |
Gain on insurance proceeds received for damage to property, plant and equipment | 0 | (32) |
Other non-cash expense (income), net | 7 | (10) |
Changes in assets and liabilities: | ||
Accounts receivable | (64) | 112 |
Inventory | (30) | (91) |
Accounts payable | 10 | (60) |
Employee compensation and benefits | (12) | (57) |
Deferred revenue | 86 | 35 |
Income taxes payable | 8 | 8 |
Retirement and post-retirement benefits | 5 | (9) |
Other assets and liabilities | 26 | 33 |
Net cash provided by operating activities | 954 | 678 |
Cash flows from investing activities: | ||
Investments in property, plant and equipment | (101) | (87) |
Acquisition of businesses and intangible assets, net of cash acquired | (136) | (324) |
Insurance proceeds received for damage to property, plant and equipment | 0 | 32 |
Other investing activities | (1) | 0 |
Net cash used in investing activities | (238) | (379) |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock under employee stock plans | 59 | 57 |
Payment of taxes related to net share settlement of equity awards | (53) | (52) |
Treasury stock repurchases | (320) | (196) |
Payment of acquisition-related contingent consideration | (2) | 0 |
Repayments of Debt | 0 | (7) |
Other financing activities | (1) | 0 |
Net cash used in financing activities | (317) | (198) |
Effect of exchange rate movements | 4 | 2 |
Net increase in cash, cash equivalents, and restricted cash | 403 | 103 |
Cash, cash equivalents, and restricted cash at beginning of period | 1,767 | 1,600 |
Cash, cash equivalents, and restricted cash at end of period | 2,170 | 1,703 |
Supplemental Cash Flow Elements [Abstract] | ||
Interest payments | 37 | 38 |
Income tax paid, net | 100 | 66 |
Investments in property, plant and equipment included in accounts payable | $ 27 | $ 10 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENT OF EQUITY Statement - USD ($) $ in Millions | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Retained Earnings [Member] | AOCI Including Portion Attributable to Noncontrolling Interest [Member] |
Common Stock, Shares, Outstanding at Oct. 31, 2019 | 193,769,000 | |||||
Treasury Stock, Shares at Oct. 31, 2019 | (6,458,000) | |||||
Stockholders' Equity, Balance at Oct. 31, 2019 | $ 3,004 | $ 2 | $ 2,013 | $ (342) | $ 1,909 | $ (578) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock (shares) | 1,867,000 | |||||
Issuance of common stock ($) | 57 | 57 | ||||
Taxes related to net share settlement of equity awards | (52) | (52) | ||||
Share-based compensation | 72 | 72 | ||||
Net income | 410 | 410 | ||||
Other comprehensive income (loss), net of tax | $ 58 | 58 | ||||
Treasury Stock, Shares, Acquired | (2,047,166) | (2,047,000) | ||||
Repurchase of common stock | $ (195) | $ (195) | ||||
Common Stock, Shares, Outstanding at Jul. 31, 2020 | 195,636,000 | |||||
Treasury Stock, Shares at Jul. 31, 2020 | (8,505,000) | |||||
Stockholders' Equity, Balance at Jul. 31, 2020 | 3,354 | $ 2 | 2,090 | $ (537) | 2,319 | (520) |
Common Stock, Shares, Outstanding at Apr. 30, 2020 | 195,107,000 | |||||
Treasury Stock, Shares at Apr. 30, 2020 | (8,505,000) | |||||
Stockholders' Equity, Balance at Apr. 30, 2020 | 3,085 | $ 2 | 2,044 | $ (537) | 2,143 | (567) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock (shares) | 529,000 | |||||
Issuance of common stock ($) | 31 | 31 | ||||
Taxes related to net share settlement of equity awards | (2) | (2) | ||||
Share-based compensation | 17 | 17 | ||||
Net income | 176 | |||||
Other comprehensive income (loss), net of tax | 47 | 47 | ||||
Treasury Stock, Shares, Acquired | 0 | |||||
Repurchase of common stock | 0 | $ 0 | ||||
Common Stock, Shares, Outstanding at Jul. 31, 2020 | 195,636,000 | |||||
Treasury Stock, Shares at Jul. 31, 2020 | (8,505,000) | |||||
Stockholders' Equity, Balance at Jul. 31, 2020 | $ 3,354 | $ 2 | 2,090 | $ (537) | 2,319 | (520) |
Common Stock, Shares, Outstanding at Oct. 31, 2020 | 195,661,000 | |||||
Treasury Stock, Shares at Oct. 31, 2020 | 10,700,000 | (10,732,000) | ||||
Stockholders' Equity, Balance at Oct. 31, 2020 | $ 3,297 | $ 2 | 2,110 | $ (752) | 2,536 | (599) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock (shares) | 1,558,000 | |||||
Issuance of common stock ($) | 59 | 59 | ||||
Taxes related to net share settlement of equity awards | (52) | (52) | ||||
Share-based compensation | 83 | 83 | ||||
Net income | 612 | 612 | ||||
Other comprehensive income (loss), net of tax | $ 71 | 71 | ||||
Treasury Stock, Shares, Acquired | (2,297,600) | (2,298,000) | ||||
Repurchase of common stock | $ (320) | $ (320) | ||||
Common Stock, Shares, Outstanding at Jul. 31, 2021 | 197,219,000 | |||||
Treasury Stock, Shares at Jul. 31, 2021 | 13,000,000 | (13,030,000) | ||||
Stockholders' Equity, Balance at Jul. 31, 2021 | $ 3,750 | $ 2 | 2,200 | $ (1,072) | 3,148 | (528) |
Common Stock, Shares, Outstanding at Apr. 30, 2021 | 196,901,000 | |||||
Treasury Stock, Shares at Apr. 30, 2021 | (12,461,000) | |||||
Stockholders' Equity, Balance at Apr. 30, 2021 | 3,545 | $ 2 | 2,152 | $ (992) | 2,894 | (511) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock (shares) | 318,000 | |||||
Issuance of common stock ($) | 30 | 30 | ||||
Taxes related to net share settlement of equity awards | (1) | (1) | ||||
Share-based compensation | 19 | 19 | ||||
Net income | 254 | |||||
Other comprehensive income (loss), net of tax | (17) | (17) | ||||
Treasury Stock, Shares, Acquired | (569,000) | |||||
Repurchase of common stock | $ (80) | $ (80) | ||||
Common Stock, Shares, Outstanding at Jul. 31, 2021 | 197,219,000 | |||||
Treasury Stock, Shares at Jul. 31, 2021 | 13,000,000 | (13,030,000) | ||||
Stockholders' Equity, Balance at Jul. 31, 2021 | $ 3,750 | $ 2 | $ 2,200 | $ (1,072) | $ 3,148 | $ (528) |
OVERVIEW, BASIS OF PRESENTATION
OVERVIEW, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Jul. 31, 2021 | |
Accounting Policies [Abstract] | |
OVERVIEW, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 1. OVERVIEW AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Overview. Keysight Keysight Technologies, Inc. ("we," "us," "Keysight" or the "company"), incorporated in Delaware on December 6, 2013, is a technology company that helps enterprises, service providers and governments accelerate innovation to connect and secure the world by providing electronic design and test solutions that are used in the simulation, design, validation, manufacture, installation, optimization and secure operation of electronics systems in the communications, networking and electronics industries. We also offer customization, consulting and optimization services throughout the customer's product lifecycle, including start-up assistance, asset management, up-time services, application services and instrument calibration and repair. 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. Basis of Presentation . We have prepared the accompanying financial statements pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the U.S. ("GAAP") have been condensed or omitted pursuant to such rules and regulations. The accompanying financial statements and information should be read in conjunction with our Annual Report on Form 10-K. In the opinion of management, the accompanying condensed consolidated financial statements contain all normal and recurring adjustments necessary to state fairly our financial position as of July 31, 2021 and October 31, 2020, results of operations for the three and nine months ended July 31, 2021 and 2020 and cash flows for the nine months ended July 31, 2021 and 2020. Use of Estimates. The preparation of condensed consolidated financial statements in accordance with GAAP 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 knowledge of current events and actions that may impact the company in the future, actual results may be different from the estimates. Update to Significant Accounting Policies. There have been no material changes to our significant accounting policies as described in our Annual Report on Form 10-K for the fiscal year ended October 31, 2020. New Accounting Pronouncements. Accounting standard updates during the first nine months of fiscal 2021 that have been issued by the Financial Accounting Standards Board or other standards-setting bodies are not material to our condensed consolidated financial statements. Other amendments to GAAP 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, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | 2. REVENUE Disaggregation of Revenue We disaggregate our revenue from contracts with customers by geographic region, end market, and timing of revenue recognition, as we believe these categories best depict how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. Disaggregated revenue is presented for each of our reportable segments, Communications Solutions Group ("CSG") and Electronics Industrial Solutions Group ("EISG"). Three Months Ended July 31, 2021 2020 CSG EISG Total CSG EISG Total (in millions) Region Americas $ 418 $ 81 $ 499 $ 321 $ 44 $ 365 Europe 122 79 201 94 65 159 Asia Pacific 335 211 546 345 142 487 Total revenue $ 875 $ 371 $ 1,246 $ 760 $ 251 $ 1,011 End Market Aerospace, Defense & Government $ 280 $ — $ 280 $ 202 $ — $ 202 Commercial Communications 595 — 595 558 — 558 Electronic Industrial — 371 371 — 251 251 Total revenue $ 875 $ 371 $ 1,246 $ 760 $ 251 $ 1,011 Timing of Revenue Recognition Revenue recognized at a point in time $ 729 $ 322 $ 1,051 $ 624 $ 216 $ 840 Revenue recognized over time 146 49 195 136 35 171 Total revenue $ 875 $ 371 $ 1,246 $ 760 $ 251 $ 1,011 Nine Months Ended July 31, 2021 2020 CSG EISG Total CSG EISG Total (in millions) Region Americas $ 1,228 $ 223 $ 1,451 $ 993 $ 149 $ 1,142 Europe 380 222 602 301 190 491 Asia Pacific 996 598 1,594 937 431 1,368 Total revenue $ 2,604 $ 1,043 $ 3,647 $ 2,231 $ 770 $ 3,001 End Market Aerospace, Defense & Government $ 845 $ — $ 845 $ 632 $ — $ 632 Commercial Communications 1,759 — 1,759 1,599 — 1,599 Electronic Industrial — 1,043 1,043 — 770 770 Total revenue $ 2,604 $ 1,043 $ 3,647 $ 2,231 $ 770 $ 3,001 Timing of Revenue Recognition Revenue recognized at a point in time $ 2,172 $ 907 $ 3,079 $ 1,832 $ 666 $ 2,498 Revenue recognized over time 432 136 568 399 104 503 Total revenue $ 2,604 $ 1,043 $ 3,647 $ 2,231 $ 770 $ 3,001 Our point-in-time revenues are generated predominantly from the sale of various types of design and test software and hardware, and per-incident repair and calibration services. Perpetual software and the portion of term software subscription revenue in this category represents revenue recognized up front upon transfer of control at the time of electronic delivery. Revenue on per-incident repair and calibration services is recognized when services are performed. Over-time revenues are generated predominantly from the repair and calibration contracts, extended warranties, technical support for hardware and software, certain software subscription and Software as a Service ("SaaS") product offerings, and professional services. Technical support for software and when-and-if available software updates and upgrades are sold either together with our software licenses and software subscriptions, including SaaS, or separately as part of our customer support programs. Additionally, we provide custom solutions that include combinations of hardware, software, software subscriptions, installation, professional services, and other support services, and revenue may be recognized either up front on delivery or over time depending upon the terms of the contract. Contract Balances Contract assets Contract assets consist of unbilled receivables and are recorded when revenue is recognized in advance of scheduled billings to our customers. These amounts are primarily related to software and service arrangements where transfer of control has occurred but we have not yet invoiced. The contract assets balances were $61 million as of both July 31, 2021 and October 31, 2020, respectively, and is included in "accounts receivables, net" in our condensed consolidated balance sheet. Contract costs We capitalize direct and incremental costs incurred to acquire contracts for which the associated revenue is expected to be recognized in future periods. We have determined that certain employee and third-party representative commission programs meet the requirements to be capitalized. These costs are initially deferred and typically amortized over the term of the customer contract which corresponds to the period of benefit. Capitalized contract costs were $32 million and $31 million as of July 31, 2021 and October 31, 2020, respectively, and are included in “other current assets” and “other assets” in the condensed consolidated balance sheet. The amortization expense associated with these costs was $20 million and $58 million for the three and nine months ended July 31, 2021, respectively, and $17 million and $50 million for the corresponding periods last year. Contract liabilities Our contract liabilities consist of deferred revenue that arises when we receive consideration in advance of providing the goods or services promised in the contract. Contract liabilities are primarily generated from customer deposits received in advance of shipments for products or rendering of services and are recognized as revenue when services are provided to the customer. We classify deferred revenue as current or non-current based on the timing of when we expect to recognize revenue. The following table provides a roll-forward of our contract liabilities, current and non-current: Nine Months Ended July 31, 2021 (in millions) Balance at October 31 $ 566 Deferred revenue arising out of acquisitions 2 Deferral of revenue billed in current period, net of recognition 424 Revenue recognized that was deferred as of the beginning of the period (338) Foreign currency translation impact 1 Balance at July 31 $ 655 Of the $338 million of revenue recognized in the nine months ended July 31, 2021 that was deferred as of the beginning of the period, approximately $72 million was recognized in the three months ended July 31, 2021. Remaining Performance Obligations Revenue expected to be recognized in any future period related to remaining performance obligations, excluding revenue pertaining to contracts that have an original expected duration of one year or less, was approximately $365 million as of July 31, 2021, and represents the company’s obligation to deliver products and services and obtain customer acceptance on delivered products. Since we typically invoice customers at contract inception, this amount is included in our current and long-term deferred revenue balances. As of July 31, 2021, we expect to recognize 15 percent of the revenue related to these unsatisfied performance obligations during the remainder of 2021, 45 percent during 2022, and 40 percent thereafter. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 9 Months Ended |
Jul. 31, 2021 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
SHARE-BASED COMPENSATION | 3. SHARE-BASED COMPENSATION Keysight accounts 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 restricted stock units ("RSUs"), employee stock purchases made under our Employee Stock Purchase Plan (“ESPP”), employee stock option awards, and performance share awards granted to selected members of our senior management under the Long-Term Performance (“LTP”) Program, based on estimated fair values. The impact of share-based compensation expense on our condensed consolidated statement of operations was as follows: Three Months Ended Nine Months Ended July 31, July 31, 2021 2020 2021 2020 (in millions) Cost of products and services $ 3 $ 4 $ 16 $ 13 Research and development 4 4 17 15 Selling, general and administrative 12 11 51 45 Total share-based compensation expense $ 19 $ 19 $ 84 $ 73 |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Jul. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 4. INCOME TAXES The following table provides details of income taxes (in millions, except percentages): Three Months Ended Nine Months Ended July 31, July 31, 2021 2020 2021 2020 (in millions) Income before taxes $ 270 $ 185 $ 673 $ 495 Provision for income taxes $ 16 $ 9 $ 61 $ 85 Effective tax rate 5.9 % 4.7 % 9.0 % 17.2 % The tax expense for the three months ended July 31, 2021 was higher compared to the same period last year, primarily due to an increase in income before taxes partially offset by a decrease in tax expense due to discrete tax differences. The tax expense for the nine months ended July 31, 2021 was lower compared to the same period last year primarily due to a decrease in tax expense due to discrete tax differences, partially offset by an increase in income before taxes. The income tax expense for the three and nine months ended July 31, 2021, included a net discrete benefit of $26 million and $46 million, respectively. The income tax expense for the three and nine months ended July 31, 2020, included a net discrete benefit of $10 million and $5 million, respectively. The increase in discrete tax benefit for the three months ended July 31, 2021 was primarily due to release of valuation allowance on Netherlands tax assets due to change in tax law regarding loss carryforwards, a tax benefit resulting from tax rate change in the United Kingdom, and a release of valuation allowance on tax assets for certain U.S. states due to increased profitability. The increase in discrete tax benefit for the nine months ended July 31, 2021 also includes the impact of integration activities for acquired entities resulting in a decrease in U.S. taxes expected to be imposed upon the repatriation of unremitted foreign earnings, an increased benefit of U.S. state R&D credits, and a reduction in U.S. state taxes expected to be imposed on foreign earnings. Keysight benefits from tax incentives in several jurisdictions, most significantly in Singapore and Malaysia, that have granted us tax incentives that require renewal at various times in the future. The tax incentives provide lower rates of taxation on certain classes of income and require thresholds of investments and employment or specific types of income in those jurisdictions. The impact of the tax incentives decreased the income tax provision by $41 million and $29 million for the nine months ended July 31, 2021 and 2020, respectively, resulting in a benefit to net income per share (diluted) of approximately $0.22 and $0.15 for the nine months ended July 31, 2021 and 2020, respectively. The Singapore tax incentive is due for renewal in 2024, and the Malaysia incentive is due for renewal in 2025. The open tax years for the IRS and most U.S. states as of July 31, 2021 are from November 1, 2016 through the current tax year. The Tax Cuts and Jobs Act was enacted in December 2017 and imposed a one-time U.S. tax on foreign earnings not previously repatriated to the U.S., known as the Transition Tax, which was reported in Keysight’s 2018 U.S. federal income tax return. This tax year is currently under examination by the IRS. For the majority of our foreign entities, the open tax years are from November 1, 2015 through the current tax year. For certain foreign entities, the tax years remain open, at most, back to the year 2008. At this time, management does not believe that the outcome of any ongoing examination will have a material impact on our consolidated financial statements. We believe that an adequate provision has been made for any adjustments that may result from tax examinations. However, the outcome of tax examinations cannot be predicted with certainty. If resolution of any tax issues addressed in our current open examinations are inconsistent with management’s expectations, we may be required to adjust our tax provision for income taxes in the period such resolution occurs. Keysight’s 2008 Malaysian income tax return was examined by the Malaysian Tax Authority. This tax year pre-dates our separation from Agilent. However, pursuant to the tax matters agreement between Agilent and Keysight that was finalized at the time of separation, for certain entities, including Malaysia, any historical tax liability is the responsibility of Keysight. In the fourth quarter of fiscal year 2017, Keysight paid income taxes and penalties to the Malaysian Tax Authority of $68 million on gains related to intellectual property rights. Our appeals to both the Special Commissioners of Income Tax and the High Court in Malaysia have been unsuccessful. We have filed a Notice of Appeal with the Court of Appeal. The company believes there are numerous defenses to the current assessment; the statute of limitations for the 2008 tax year in Malaysia was closed, and the income in question is exempt from tax in Malaysia. The company is pursuing all avenues to resolve this issue favorably for the company. |
NET INCOME PER SHARE
NET INCOME PER SHARE | 9 Months Ended |
Jul. 31, 2021 | |
Earnings Per Share [Abstract] | |
NET INCOME PER SHARE | 5. NET INCOME PER SHARE The following table presents the calculation of basic and diluted net income per share (in millions, except per-share amounts): Three Months Ended Nine Months Ended July 31, July 31, 2021 2020 2021 2020 (in millions) Net income $ 254 $ 176 $ 612 $ 410 Basic weighted-average shares 184 187 185 187 Potential common shares— stock options and other employee stock plans 2 3 2 3 Diluted weighted-average shares 186 190 187 190 Net income per share - basic $ 1.38 $ 0.94 $ 3.31 $ 2.19 Net income per share - diluted $ 1.36 $ 0.93 $ 3.27 $ 2.16 Diluted shares outstanding include the dilutive effect of in-the-money options and non-vested RSUs. The diluted effect of such awards is calculated based on the average share price of each period using the treasury stock method, except where the inclusion of such awards would have an anti-dilutive impact. Anti-dilutive shares excluded from the calculation of diluted earnings per share were not material for the three and nine months ended July 31, 2021 and 2020. |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 9 Months Ended |
Jul. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | 6. GOODWILL AND OTHER INTANGIBLE ASSETS The goodwill balance as of July 31, 2021 and October 31, 2020 and the activity for the nine months ended July 31, 2021 for each of our reportable operating segments were as follows: CSG EISG Total (in millions) Goodwill at October 31, 2020 $ 984 $ 553 $ 1,537 Foreign currency translation impact (7) 8 1 Goodwill arising from acquisitions 72 — 72 Goodwill at July 31, 2021 $ 1,049 $ 561 $ 1,610 Components of goodwill: Goodwill $ 1,693 $ 553 $ 2,246 Accumulated impairment losses (709) — (709) Goodwill at October 31, 2020 $ 984 $ 553 $ 1,537 Goodwill $ 1,758 $ 561 $ 2,319 Accumulated impairment losses (709) — (709) Goodwill at July 31, 2021 $ 1,049 $ 561 $ 1,610 Other intangible assets as of July 31, 2021 and October 31, 2020 consisted of the following: July 31, 2021 October 31, 2020 Gross Accumulated Net Book Gross Accumulated Net Book (in millions) Developed technology $ 958 $ 854 $ 104 $ 915 $ 749 $ 166 Backlog 17 16 1 17 14 3 Trademark/Tradename 36 28 8 35 25 10 Customer relationships 381 220 161 363 183 180 Non-compete agreements 3 1 2 1 1 — Total amortizable intangible assets 1,395 1,119 276 1,331 972 359 In-Process R&D 7 — 7 2 — 2 Total $ 1,402 $ 1,119 $ 283 $ 1,333 $ 972 $ 361 During the nine months ended July 31, 2021, we acquired Sanjole Inc. ("Sanjole") for $102 million, net of $11 million cash acquired, and recognized additions to goodwill and other intangible assets of $49 million and $51 million, respectively, based on the preliminary allocation of the purchase price to the estimated fair values of the assets acquired and liabilities assumed. We expect the goodwill recognized on the Sanjole acquisition or any potential impairment charges in the future to be deductible for income tax purposes. The identified intangible assets primarily consist of developed technology of $24 million, customer relationships of $17 million and in-process R&D of $7 million. The estimated useful lives of developed technology and customer relationships are 7 years and 9 years, respectively. Sanjole is a leader in wireless test and measurement solutions for protocol decoding and interoperability. Additionally, we used $34 million, net of cash acquired, for other acquisition activity, and recognized goodwill and other intangible assets of $23 million and $16 million, respectively, based on the preliminary allocation of the purchase price to the estimated fair values of the assets acquired and liabilities assumed. Goodwill for the acquisitions was assigned to the Communications Solutions Group. Goodwill is assessed for impairment on a reporting unit basis at least annually in the fourth quarter of each year, or more frequently when events and circumstances occur indicating that the recorded goodwill may be impaired. The company has not identified any triggering events that indicate an impairment of goodwill for the nine months ended July 31, 2021. During the nine months ended July 31, 2021, other intangible assets increased $4 million due to the impact of foreign exchange translation. Amortization of other intangible assets was $33 million and $147 million for the three and nine months ended July 31, 2021, respectively. Amortization of other intangible assets was $54 million and $162 million for the three and nine months ended July 31, 2020, respectively. Estimated intangible assets amortization expense for each of the five succeeding fiscal years is as follows: Amortization expense (in millions) 2021 (remainder) $ 26 2022 $ 96 2023 $ 74 2024 $ 34 2025 $ 17 Thereafter $ 29 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Jul. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | 7. 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 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, 2021 and October 31, 2020 were as follows: Fair Value Measurements at July 31, 2021 October 31, 2020 Total Level 1 Level 2 Level 3 Other Total Level 1 Level 2 Level 3 Other (in millions) Assets: Short-term Cash equivalents Money market funds $ 1,402 $ 1,402 $ — $ — $ — $ 1,047 $ 1,047 $ — $ — $ — Derivative instruments (foreign exchange contracts) 3 — 3 — — 3 — 3 — — Long-term Derivative instruments (interest rate swaps) 42 — 42 — — 23 — 23 — — Equity investments 58 58 — — — 52 52 — — — Equity investments - other 10 — — — 10 9 — — — 9 Total assets measured at fair value $ 1,515 $ 1,460 $ 45 $ — $ 10 $ 1,134 $ 1,099 $ 26 $ — $ 9 Liabilities: Short-term Derivative instruments (foreign exchange contracts) $ 3 $ — $ 3 $ — $ — $ 4 $ — $ 4 $ — $ — Long-term Deferred compensation liability 24 — 24 — — 18 — 18 — — Total liabilities measured at fair value $ 27 $ — $ 27 $ — $ — $ 22 $ — $ 22 $ — $ — Net unrealized gains on our equity investments were $1 million and $3 million for the three months ended July 31, 2021 and 2020, respectively. Net unrealized gains on our equity investments were $2 million and $13 million for the nine months ended July 31, 2021 and 2020, respectively. |
DERIVATIVES
DERIVATIVES | 9 Months Ended |
Jul. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES | 8. 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, 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 based on a rolling period of up to twelve months. These derivative instruments are designated and qualify as cash flow hedges under the criteria prescribed in the authoritative guidance. In fiscal 2020, we entered into forward starting interest rate swaps with an aggregate notional amount of $600 million associated with future interest payments on anticipated debt issuances through fiscal year 2024. The contract terms allow us to lock-in a treasury rate on anticipated debt issuances. These derivative instruments are designated and qualify as cash flow hedges under the criteria prescribed in the authoritative guidance. Non-designated 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. The number of open foreign exchange forward contracts designated as "cash flow hedges" and "not designated as hedging instruments" was 207 and 73, respectively, as of July 31, 2021. The aggregated notional amounts by currency and designation as of July 31, 2021 were as follows: Derivatives in Cash Flow Derivatives Not Designated as Hedging Instruments Forward Forward Currency Buy/(Sell) Buy/(Sell) (in millions) Euro $ 19 $ 46 British Pound 17 (108) Singapore Dollar 23 12 Malaysian Ringgit 93 10 Japanese Yen (101) (42) Other currencies 10 (11) Total $ 61 $ (93) Derivative instruments are subject to master netting arrangements and are disclosed gross in the condensed consolidated balance sheet. The gross fair values and balance sheet presentation of derivative instruments held as of July 31, 2021 and October 31, 2020 were as follows: Fair Values of Derivative Instruments Assets Derivatives Liabilities Derivatives Fair Value Fair Value Balance Sheet Location July 31, 2021 October 31, 2020 Balance Sheet Location July 31, 2021 October 31, 2020 (in millions) Derivatives designated as hedging instruments: Cash flow hedges Foreign exchange contracts Other current assets $ 3 $ 2 Other accrued liabilities $ 1 $ 3 Interest rate swap contracts: Other assets 42 23 Derivatives not designated as hedging instruments: Foreign exchange contracts Other current assets — 1 Other accrued liabilities 2 1 Total derivatives $ 45 $ 26 $ 3 $ 4 The effect of derivative instruments for foreign exchange contracts designated as hedging instruments and for those not designated as hedging instruments in our condensed consolidated statement of operations was as follows: Three Months Ended Nine Months Ended July 31, July 31, 2021 2020 2021 2020 (in millions) Derivatives designated as hedging instruments: Cash Flow Hedges Interest rate swap contracts: Gain (loss) recognized in accumulated other comprehensive income (loss) $ (29) $ (3) $ 19 $ (7) Foreign exchange contracts: Gain (loss) recognized in accumulated other comprehensive income (loss) $ — $ 3 $ 3 $ (2) Gain (loss) reclassified from accumulated other comprehensive income (loss) into earnings: Cost of products $ 1 $ (1) $ (1) $ (2) Selling, general and administrative $ — $ — $ 2 $ (1) Gain excluded from effectiveness testing recognized in earnings based on changes in fair value: — Cost of products $ — $ — $ — $ 2 Amount excluded from effectiveness testing recognized in earnings based on amortization approach: Selling, general and administrative $ 1 $ — $ 1 $ — Derivatives not designated as hedging instruments: Gain (loss) recognized in: Cost of products $ — $ — $ 1 $ — Other income (expense), net $ (2) $ 1 $ (5) $ 4 The estimated amount at July 31, 2021 expected to be reclassified from accumulated other comprehensive income (loss) to earnings within the next twelve months is zero. |
LEASES (Notes)
LEASES (Notes) | 9 Months Ended |
Jul. 31, 2021 | |
Leases [Abstract] | |
Lessee, Operating Leases [Text Block] | 9. LEASES We have operating leases for items including office space, order fulfillment, sales and service centers, R&D and certain equipment, primarily automobiles. Most of our leases have remaining terms of up to 13 years, some of which may include options to extend the leases, primarily for 3 to 5 years. We consider options to renew in our lease terms and measurement of right-of-use ("ROU") assets and lease liabilities if we determine they are reasonably certain to be exercised. The weighted average lease term of our operating leases was 8.4 years and 7.4 years as of July 31, 2021 and 2020, respectively. The weighted average discount rate of our operating leases was 3 percent as of July 31, 2021 and 2020. The following table summarizes the components of our lease cost: Three Months Ended Nine Months Ended July 31, July 31, 2021 2020 2021 2020 (in millions) (in millions) Operating lease cost $ 13 $ 13 $ 39 $ 36 Variable lease cost $ 4 $ 4 $ 11 $ 12 Short-term lease costs, sublease income and finance lease costs were immaterial for the three and nine months ended July 31, 2021 and 2020. Supplemental cash flow information related to our operating leases was as follows: Nine Months Ended July 31, 2021 2020 (in millions) Cash payments for operating leases $ 40 $ 35 ROU assets obtained in exchange for operating lease obligations $ 78 $ 62 Maturity Analysis of Liabilities The maturities of our operating leases as of July 31, 2021 with initial terms exceeding one year were as follows: Operating Leases (in millions) 2021 (remainder) $ 13 2022 43 2023 36 2024 29 2025 23 Thereafter 123 Total undiscounted lease liability 267 Imputed interest 30 Total discounted lease liability $ 237 Leases That Have Not Yet Commenced As of July 31, 2021, we did not have any material leases that had not yet commenced. Lessor Disclosure Rental income from leasing out excess facilities for both the three and nine months ended July 31, 2021 and July 31, 2020 was $2 million and $8 million, respectively, and is included in "other operating expense (income), net" in the condensed consolidated statement of operations. Other lessor arrangements were immaterial. |
DEBT (Notes)
DEBT (Notes) | 9 Months Ended |
Jul. 31, 2021 | |
Debt Disclosure [Abstract] | |
DEBT | 10. DEBT The following table summarizes the components of our long-term debt: July 31, 2021 October 31, 2020 (in millions) 2024 Senior Notes at 4.55% ($600 face amount less unamortized costs of $1 and $2) $ 599 $ 598 2027 Senior Notes at 4.60% ($700 face amount less unamortized costs of $4 and $5) 696 695 2029 Senior Notes at 3.00% ($500 face amount less unamortized costs of $4 and $4) 496 496 Total debt $ 1,791 $ 1,789 Short-Term Debt Revolving Credit Facility On July 30, 2021, we entered into a new credit agreement that amended and restated our existing credit agreement dated February 15, 2017 in its entirety, and provides for a $750 million five-year unsecured revolving credit facility (the “Revolving Credit Facility”) that will expire on July 30, 2026 and bears interest at an annual rate of LIBOR + 1.125 percent. In addition, the new credit agreement permits the company, subject to certain customary conditions, on one or more occasions to request to increase the total commitments under the Revolving Credit Facility by up to $250 million in the aggregate. We may use amounts borrowed under the facility for general corporate purposes. As of July 31, 2021, we had no borrowings outstanding under the Revolving Credit Facility. We were in compliance with the covenants of the Revolving Credit Facility during the nine months ended July 31, 2021 . Long-Term Debt There have been no changes to the principal, maturity, interest rates and interest payment terms of the senior notes during the nine months ended July 31, 2021 as compared to the senior notes described in our Annual Report on Form 10-K for the fiscal year ended October 31, 2020. As of July 31, 2021 and October 31, 2020, we had $41 million and $40 million, respectively, of outstanding letters of credit and surety bonds unrelated to the credit facility that were issued by various lenders. |
RETIREMENT PLANS AND POST RETIR
RETIREMENT PLANS AND POST RETIREMENT PENSION PLANS | 9 Months Ended |
Jul. 31, 2021 | |
Retirement Benefits [Abstract] | |
RETIREMENT PLANS AND POST RETIREMENT PENSION PLANS | 11. RETIREMENT PLANS AND POST-RETIREMENT BENEFIT PLANS For the three and nine months ended July 31, 2021 and 2020, our net pension and post-retirement benefit cost (benefit) was comprised of the following: Pensions U.S. Defined Benefit Plans Non-U.S. Defined Benefit U.S. Post-Retirement Three Months Ended July 31, 2021 2020 2021 2020 2021 2020 (in millions) Service cost—benefits earned during the period $ 6 $ 5 $ 4 $ 4 $ 1 $ 1 Interest cost on benefit obligation 6 6 3 4 1 1 Expected return on plan assets (13) (11) (19) (20) (3) (3) Amortization: Net actuarial loss 6 5 10 8 3 3 Prior service credit — — — — — (3) Net periodic benefit cost (benefit) $ 5 $ 5 $ (2) $ (4) $ 2 $ (1) Pensions U.S. Defined Benefit Plans Non-U.S. Defined Benefit U.S. Post-Retirement Nine Months Ended July 31, 2021 2020 2021 2020 2021 2020 (in millions) Service cost—benefits earned during the period $ 18 $ 17 $ 11 $ 11 $ 1 $ 1 Interest cost on benefit obligation 17 18 11 12 3 4 Expected return on plan assets (39) (33) (58) (62) (9) (9) Amortization: Net actuarial loss 18 14 31 25 8 8 Prior service credit — — — — — (9) Settlement loss — — 16 — — — Net periodic benefit cost (benefit) $ 14 $ 16 $ 11 $ (14) $ 3 $ (5) We record the service cost component of net periodic benefit cost (benefit) in the same line item as other employee compensation costs. The non-service components of net periodic benefit cost (benefit), such as interest cost, expected return on assets, amortization of prior service cost, and actuarial gains or losses, are recorded within "other income (expense), net" in the condensed consolidated statement of operations. In March 2021, we transferred substantially all the assets and obligations of our Netherlands defined benefit plan ("the Netherlands DB plan”) to an insurance company. The partial settlement resulted in a loss of $16 million, which is included in "other income (expense), net" in the condensed consolidated statement of operations during the nine months ended July 31, 2021. We received a net refund of $3 million due to the partial settlement of the Netherlands DB plan. We did not contribute to our U.S. defined benefit plans or U.S. post-retirement benefit plan during the three and nine months ended July 31, 2021 and 2020. We contributed $1 million and $6 million to our non-U.S. defined benefit plans during the three and nine months ended July 31, 2021, respectively. We contributed $2 million and $6 million to our non-U.S. defined benefit plans during the three and nine months ended July 31, 2020, respectively. For the remainder of 2021, we do not expect to contribute to our U.S. defined benefit plan and U.S. post-retirement benefit plan, and we expect to contribute $2 million to our non-U.S. defined benefit plans. |
SUPPLEMENTAL FINANCIAL INFORMAT
SUPPLEMENTAL FINANCIAL INFORMATION (Notes) | 9 Months Ended |
Jul. 31, 2021 | |
Disclosure Text Block [Abstract] | |
Additional Financial Information Disclosure | 12. SUPPLEMENTAL FINANCIAL INFORMATION The following tables provide details of selected balance sheet items: Cash, cash equivalents, and restricted cash July 31, 2021 October 31, 2020 (in millions) Cash and cash equivalents $ 2,153 $ 1,756 Restricted cash included in other current assets — 9 Restricted cash included in other assets 17 2 Total cash, cash equivalents, and restricted cash shown in the statement of cash flows $ 2,170 $ 1,767 Restricted cash primarily relates to deficit reduction contributions to an escrow account for one of our non-U.S. defined benefit pension plans and deposits held as collateral against bank guarantees. Inventory July 31, 2021 October 31, 2020 (in millions) Finished goods $ 330 $ 342 Purchased parts and fabricated assemblies 440 415 Total inventory $ 770 $ 757 Standard warranty Our warranties on products sold through direct sales channels are primarily for one year. Warranties for products sold through distribution channels are primarily for three years. We accrue for standard warranty costs based on historical trends in warranty charges. The accrual is reviewed regularly and periodically adjusted to reflect changes in warranty cost estimates. Estimated warranty charges are recorded within cost of products at the time related product revenue is recognized. Activity related to the standard warranty accrual, which is included in other accrued and other long-term liabilities in our condensed consolidated balance sheet, is as follows: Nine Months Ended July 31, 2021 2020 (in millions) Beginning balance $ 33 $ 38 Accruals for warranties, including change in estimates 23 17 Settlements made during the period (21) (22) Ending balance $ 35 $ 33 Accruals for warranties due within one year $ 21 $ 19 Accruals for warranties due after one year 14 14 Ending balance $ 35 $ 33 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Jul. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 13. COMMITMENTS AND CONTINGENCIES Commitments Our contractual obligations for commitments to contract manufacturers and suppliers increased to $465 million as of July 31, 2021 from $349 million as of October 31, 2020, driven by higher revenue and advance purchase orders to secure capacity for critical parts due to global supply shortages. Our contractual obligations for other purchase commitments increased to $62 million as of July 31, 2021 from $52 million as of October 31, 2020. During the nine months ended July 31, 2021, there were no other material changes to our contractual commitments as reported in our Annual Report on Form 10-K for the fiscal year ended October 31, 2020. Contingencies On August 3, 2021, we entered into a Consent Agreement with the Directorate of Defense Trade Controls, Bureau of Political-Military Affairs, Department of State to resolve alleged violations of the Arms Export Control Act and the International Traffic in Arms Regulations (ITAR). Pursuant the Consent Agreement, we will pay a penalty of $6.6 million, $2.5 million of which is suspended, over three years and will employ a special compliance officer for three years. We are also involved in lawsuits, claims, investigations and proceedings, including, but not limited to, patent, commercial and environmental matters, which arise in the ordinary course of business. Although there are no matters pending that we currently believe are probable and reasonably possible of having a material impact to our business, consolidated financial position, results of operations or cash flows, the outcome of litigation is inherently uncertain and the outcome is difficult to predict. An adverse outcome in any outstanding lawsuit or proceeding could result in significant monetary damages or injunctive relief. If adverse results are above management’s expectations or are unforeseen, management may not have accrued for the liability, which could impact our results in a financial period. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 9 Months Ended |
Jul. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |
STOCKHOLDERS EQUITY | 14. STOCKHOLDERS' EQUITY Stock Repurchase Program On November 18, 2020, our board of directors approved a new stock repurchase program authorizing the purchase of up to $750 million of the company’s common stock. Under our stock repurchase program, shares may be purchased from time to time, subject to general business and market conditions and other investment opportunities, through open market purchases, privately negotiated transactions or other means. All such shares and related costs are held as treasury stock and accounted for at trade date using the cost method. The stock repurchase program may be commenced, suspended or discontinued at any time at the company’s discretion and does not have an expiration date. For the nine months ended July 31, 2021, we repurchased 2,297,600 shares of common stock for $320 million. For the nine months ended July 31, 2020, we repurchased 2,047,166 shares of common stock for $195 million. Accumulated Other Comprehensive Loss Changes in accumulated other comprehensive loss by component and related tax effects for the three and nine months ended July 31, 2021 and 2020 were as follows: Foreign currency translation Net defined benefit pension cost and post retirement plan costs Unrealized gains (losses) on derivatives Total Actuarial losses Prior service credits (in millions) As of April 30, 2021 $ 7 $ (569) $ (5) $ 56 $ (511) Other comprehensive income (loss) before reclassifications (7) — — (29) (36) Amounts reclassified out of accumulated other comprehensive gain (loss) — 19 — (1) 18 Tax benefit (expense) — (6) — 7 1 Other comprehensive income (loss) (7) 13 — (23) (17) As of July 31, 2021 $ — $ (556) $ (5) $ 33 $ (528) As of October 31, 2020 $ (10) $ (600) $ (5) $ 16 $ (599) Other comprehensive income (loss) before reclassifications 10 (14) — 22 18 Amounts reclassified out of accumulated other comprehensive gain (loss) — 74 — (1) 73 Tax benefit (expense) — (16) — (4) (20) Other comprehensive income (loss) 10 44 — 17 71 As of July 31, 2021 $ — $ (556) $ (5) $ 33 $ (528) As of April 30, 2020 $ (50) $ (508) $ (1) $ (8) $ (567) Other comprehensive income (loss) before reclassifications 37 — — — 37 Amounts reclassified out of accumulated other comprehensive gain (loss) — 15 (3) 1 13 Tax benefit (expense) — (4) 1 — (3) Other comprehensive income (loss) 37 11 (2) 1 47 As of July 31, 2020 $ (13) $ (497) $ (3) $ (7) $ (520) As of October 31, 2019 $ (43) $ (536) $ 4 $ (3) $ (578) Other comprehensive income (loss) before reclassifications 30 — — (9) 21 Amounts reclassified out of accumulated other comprehensive gain (loss) — 47 (9) 3 41 Tax benefit (expense) — (8) 2 2 (4) Other comprehensive income (loss) 30 39 (7) (4) 58 As of July 31, 2020 $ (13) $ (497) $ (3) $ (7) $ (520) Reclassifications out of accumulated other comprehensive loss for the three and nine months ended July 31, 2021 and 2020 were as follows: Details about accumulated other comprehensive loss components Amounts reclassified from other comprehensive loss Affected line item in statement of operations Three Months Ended Nine Months Ended July 31, July 31, 2021 2020 2021 2020 (in millions) (in millions) Unrealized gain (loss) on derivatives $ 1 $ (1) $ (1) $ (2) Cost of products — — 2 (1) Selling, general and administrative — — — — Benefit (provision) for income tax 1 (1) 1 (3) Net of Income tax Net defined benefit pension cost and post retirement plan costs: Net actuarial loss (19) (15) (74) (47) Prior service credits — 3 — 9 (19) (12) (74) (38) Total before income tax 5 3 19 6 Benefit (provision) for income tax (14) (9) (55) (32) Net of income tax Total reclassifications for the period $ (13) $ (10) $ (54) $ (35) An amount in parentheses indicates a reduction to income and an increase to the accumulated other comprehensive loss. Reclassifications of prior service benefit and actuarial net loss in respect of retirement plans and post retirement pension plans are included in the computation of net periodic cost (see Note 11, "Retirement Plans and Post-Retirement Benefit Plans"). |
SEGMENT INFORMATION
SEGMENT INFORMATION | 9 Months Ended |
Jul. 31, 2021 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | 15. SEGMENT INFORMATION We report our results in two reportable segments: Communications Solutions Group ("CSG") and Electronic Industrial Solutions Group ("EISG"). The results of our reportable segments are based on our management reporting system and are not necessarily in conformity with GAAP. The performance of each segment is measured based on several metrics, including 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 share-based compensation expense, amortization of acquisition-related balances, acquisition and integration costs, a gain on an insurance settlement related to northern California wildfires, restructuring costs, interest income, interest expense and other items as noted in the reconciliations below. Three Months Ended July 31, 2021 2020 CSG EISG Total CSG EISG Total (in millions) Revenue $ 875 $ 371 $ 1,246 $ 760 $ 251 $ 1,011 Segment income from operations $ 224 $ 115 $ 339 $ 197 $ 67 $ 264 Nine Months Ended July 31, 2021 2020 CSG EISG Total CSG EISG Total (in millions) Revenue $ 2,604 $ 1,043 $ 3,647 $ 2,231 $ 770 $ 3,001 Segment income from operations $ 670 $ 309 $ 979 $ 512 $ 199 $ 711 The following table reconciles total reportable operating segments’ income from operations to our income before taxes, as reported: Three Months Ended Nine Months Ended July 31, July 31, 2021 2020 2021 2020 (in millions) Total reportable operating segments' income from operations $ 339 $ 264 $ 979 $ 711 Share-based compensation (19) (19) (84) (73) Amortization of acquisition-related balances (33) (54) (147) (167) Acquisition and integration costs (2) (8) (8) (12) Gain on insurance settlement — — — 32 Restructuring and other (1) (1) (9) (4) Income from operations, as reported 284 182 731 487 Interest income 1 1 2 11 Interest expense (20) (20) (59) (59) Other income (expense), net 5 22 (1) 56 Income before taxes, as reported $ 270 $ 185 $ 673 $ 495 |
REVENUE (Tables)
REVENUE (Tables) | 9 Months Ended |
Jul. 31, 2021 | |
Revenue Recognition [Abstract] | |
Disaggregation of Revenue [Table Text Block] | We disaggregate our revenue from contracts with customers by geographic region, end market, and timing of revenue recognition, as we believe these categories best depict how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. Disaggregated revenue is presented for each of our reportable segments, Communications Solutions Group ("CSG") and Electronics Industrial Solutions Group ("EISG"). Three Months Ended July 31, 2021 2020 CSG EISG Total CSG EISG Total (in millions) Region Americas $ 418 $ 81 $ 499 $ 321 $ 44 $ 365 Europe 122 79 201 94 65 159 Asia Pacific 335 211 546 345 142 487 Total revenue $ 875 $ 371 $ 1,246 $ 760 $ 251 $ 1,011 End Market Aerospace, Defense & Government $ 280 $ — $ 280 $ 202 $ — $ 202 Commercial Communications 595 — 595 558 — 558 Electronic Industrial — 371 371 — 251 251 Total revenue $ 875 $ 371 $ 1,246 $ 760 $ 251 $ 1,011 Timing of Revenue Recognition Revenue recognized at a point in time $ 729 $ 322 $ 1,051 $ 624 $ 216 $ 840 Revenue recognized over time 146 49 195 136 35 171 Total revenue $ 875 $ 371 $ 1,246 $ 760 $ 251 $ 1,011 Nine Months Ended July 31, 2021 2020 CSG EISG Total CSG EISG Total (in millions) Region Americas $ 1,228 $ 223 $ 1,451 $ 993 $ 149 $ 1,142 Europe 380 222 602 301 190 491 Asia Pacific 996 598 1,594 937 431 1,368 Total revenue $ 2,604 $ 1,043 $ 3,647 $ 2,231 $ 770 $ 3,001 End Market Aerospace, Defense & Government $ 845 $ — $ 845 $ 632 $ — $ 632 Commercial Communications 1,759 — 1,759 1,599 — 1,599 Electronic Industrial — 1,043 1,043 — 770 770 Total revenue $ 2,604 $ 1,043 $ 3,647 $ 2,231 $ 770 $ 3,001 Timing of Revenue Recognition Revenue recognized at a point in time $ 2,172 $ 907 $ 3,079 $ 1,832 $ 666 $ 2,498 Revenue recognized over time 432 136 568 399 104 503 Total revenue $ 2,604 $ 1,043 $ 3,647 $ 2,231 $ 770 $ 3,001 Our point-in-time revenues are generated predominantly from the sale of various types of design and test software and hardware, and per-incident repair and calibration services. Perpetual software and the portion of term software subscription revenue in this category represents revenue recognized up front upon transfer of control at the time of electronic delivery. Revenue on per-incident repair and calibration services is recognized when services are performed. Over-time revenues are generated predominantly from the repair and calibration contracts, extended warranties, technical support for hardware and |
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Table Text Block] | The following table provides a roll-forward of our contract liabilities, current and non-current: Nine Months Ended July 31, 2021 (in millions) Balance at October 31 $ 566 Deferred revenue arising out of acquisitions 2 Deferral of revenue billed in current period, net of recognition 424 Revenue recognized that was deferred as of the beginning of the period (338) Foreign currency translation impact 1 Balance at July 31 $ 655 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Table Text Block] | Remaining Performance Obligations Revenue expected to be recognized in any future period related to remaining performance obligations, excluding revenue pertaining to contracts that have an original expected duration of one year or less, was approximately $365 million as of July 31, 2021, and represents the company’s obligation to deliver products and services and obtain customer acceptance on delivered products. Since we typically invoice customers at contract inception, this amount is included in our current and long-term deferred revenue balances. As of July 31, 2021, we expect to recognize 15 percent of the revenue related to these unsatisfied performance obligations during the remainder of 2021, 45 percent during 2022, and 40 percent thereafter. |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 9 Months Ended |
Jul. 31, 2021 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Allocated Share-based compensation expense disclosure | Three Months Ended Nine Months Ended July 31, July 31, 2021 2020 2021 2020 (in millions) Cost of products and services $ 3 $ 4 $ 16 $ 13 Research and development 4 4 17 15 Selling, general and administrative 12 11 51 45 Total share-based compensation expense $ 19 $ 19 $ 84 $ 73 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Jul. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | The following table provides details of income taxes (in millions, except percentages): Three Months Ended Nine Months Ended July 31, July 31, 2021 2020 2021 2020 (in millions) Income before taxes $ 270 $ 185 $ 673 $ 495 Provision for income taxes $ 16 $ 9 $ 61 $ 85 Effective tax rate 5.9 % 4.7 % 9.0 % 17.2 % |
NET INCOME PER SHARE (Tables)
NET INCOME PER SHARE (Tables) | 9 Months Ended |
Jul. 31, 2021 | |
Earnings Per Share [Abstract] | |
Reconciliation of the numerators and denominators of the basic and diluted net income per share | The following table presents the calculation of basic and diluted net income per share (in millions, except per-share amounts): Three Months Ended Nine Months Ended July 31, July 31, 2021 2020 2021 2020 (in millions) Net income $ 254 $ 176 $ 612 $ 410 Basic weighted-average shares 184 187 185 187 Potential common shares— stock options and other employee stock plans 2 3 2 3 Diluted weighted-average shares 186 190 187 190 Net income per share - basic $ 1.38 $ 0.94 $ 3.31 $ 2.19 Net income per share - diluted $ 1.36 $ 0.93 $ 3.27 $ 2.16 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Jul. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill balances and movements for each reportable segments during the period | The goodwill balance as of July 31, 2021 and October 31, 2020 and the activity for the nine months ended July 31, 2021 for each of our reportable operating segments were as follows: CSG EISG Total (in millions) Goodwill at October 31, 2020 $ 984 $ 553 $ 1,537 Foreign currency translation impact (7) 8 1 Goodwill arising from acquisitions 72 — 72 Goodwill at July 31, 2021 $ 1,049 $ 561 $ 1,610 Components of goodwill: Goodwill $ 1,693 $ 553 $ 2,246 Accumulated impairment losses (709) — (709) Goodwill at October 31, 2020 $ 984 $ 553 $ 1,537 Goodwill $ 1,758 $ 561 $ 2,319 Accumulated impairment losses (709) — (709) Goodwill at July 31, 2021 $ 1,049 $ 561 $ 1,610 |
Components of other intangibles during the period | Other intangible assets as of July 31, 2021 and October 31, 2020 consisted of the following: July 31, 2021 October 31, 2020 Gross Accumulated Net Book Gross Accumulated Net Book (in millions) Developed technology $ 958 $ 854 $ 104 $ 915 $ 749 $ 166 Backlog 17 16 1 17 14 3 Trademark/Tradename 36 28 8 35 25 10 Customer relationships 381 220 161 363 183 180 Non-compete agreements 3 1 2 1 1 — Total amortizable intangible assets 1,395 1,119 276 1,331 972 359 In-Process R&D 7 — 7 2 — 2 Total $ 1,402 $ 1,119 $ 283 $ 1,333 $ 972 $ 361 |
Finite-lived Intangible Assets Amortization Expense [Table Text Block] | Estimated intangible assets amortization expense for each of the five succeeding fiscal years is as follows: Amortization expense (in millions) 2021 (remainder) $ 26 2022 $ 96 2023 $ 74 2024 $ 34 2025 $ 17 Thereafter $ 29 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Jul. 31, 2021 | |
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, 2021 and October 31, 2020 were as follows: Fair Value Measurements at July 31, 2021 October 31, 2020 Total Level 1 Level 2 Level 3 Other Total Level 1 Level 2 Level 3 Other (in millions) Assets: Short-term Cash equivalents Money market funds $ 1,402 $ 1,402 $ — $ — $ — $ 1,047 $ 1,047 $ — $ — $ — Derivative instruments (foreign exchange contracts) 3 — 3 — — 3 — 3 — — Long-term Derivative instruments (interest rate swaps) 42 — 42 — — 23 — 23 — — Equity investments 58 58 — — — 52 52 — — — Equity investments - other 10 — — — 10 9 — — — 9 Total assets measured at fair value $ 1,515 $ 1,460 $ 45 $ — $ 10 $ 1,134 $ 1,099 $ 26 $ — $ 9 Liabilities: Short-term Derivative instruments (foreign exchange contracts) $ 3 $ — $ 3 $ — $ — $ 4 $ — $ 4 $ — $ — Long-term Deferred compensation liability 24 — 24 — — 18 — 18 — — Total liabilities measured at fair value $ 27 $ — $ 27 $ — $ — $ 22 $ — $ 22 $ — $ — |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 9 Months Ended |
Jul. 31, 2021 | |
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, 2021 were as follows: Derivatives in Cash Flow Derivatives Not Designated as Hedging Instruments Forward Forward Currency Buy/(Sell) Buy/(Sell) (in millions) Euro $ 19 $ 46 British Pound 17 (108) Singapore Dollar 23 12 Malaysian Ringgit 93 10 Japanese Yen (101) (42) Other currencies 10 (11) Total $ 61 $ (93) |
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 condensed consolidated balance sheet. The gross fair values and balance sheet presentation of derivative instruments held as of July 31, 2021 and October 31, 2020 were as follows: Fair Values of Derivative Instruments Assets Derivatives Liabilities Derivatives Fair Value Fair Value Balance Sheet Location July 31, 2021 October 31, 2020 Balance Sheet Location July 31, 2021 October 31, 2020 (in millions) Derivatives designated as hedging instruments: Cash flow hedges Foreign exchange contracts Other current assets $ 3 $ 2 Other accrued liabilities $ 1 $ 3 Interest rate swap contracts: Other assets 42 23 Derivatives not designated as hedging instruments: Foreign exchange contracts Other current assets — 1 Other accrued liabilities 2 1 Total derivatives $ 45 $ 26 $ 3 $ 4 |
Effect of derivative instruments for foreign exchange contracts in the consolidated statement of operations | The effect of derivative instruments for foreign exchange contracts designated as hedging instruments and for those not designated as hedging instruments in our condensed consolidated statement of operations was as follows: Three Months Ended Nine Months Ended July 31, July 31, 2021 2020 2021 2020 (in millions) Derivatives designated as hedging instruments: Cash Flow Hedges Interest rate swap contracts: Gain (loss) recognized in accumulated other comprehensive income (loss) $ (29) $ (3) $ 19 $ (7) Foreign exchange contracts: Gain (loss) recognized in accumulated other comprehensive income (loss) $ — $ 3 $ 3 $ (2) Gain (loss) reclassified from accumulated other comprehensive income (loss) into earnings: Cost of products $ 1 $ (1) $ (1) $ (2) Selling, general and administrative $ — $ — $ 2 $ (1) Gain excluded from effectiveness testing recognized in earnings based on changes in fair value: — Cost of products $ — $ — $ — $ 2 Amount excluded from effectiveness testing recognized in earnings based on amortization approach: Selling, general and administrative $ 1 $ — $ 1 $ — Derivatives not designated as hedging instruments: Gain (loss) recognized in: Cost of products $ — $ — $ 1 $ — Other income (expense), net $ (2) $ 1 $ (5) $ 4 |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Jul. 31, 2021 | |
Leases [Abstract] | |
Lease, Cost [Table Text Block] | The following table summarizes the components of our lease cost: Three Months Ended Nine Months Ended July 31, July 31, 2021 2020 2021 2020 (in millions) (in millions) Operating lease cost $ 13 $ 13 $ 39 $ 36 Variable lease cost $ 4 $ 4 $ 11 $ 12 Short-term lease costs, sublease income and finance lease costs were immaterial for the three and nine months ended July 31, 2021 and 2020. Supplemental cash flow information related to our operating leases was as follows: Nine Months Ended July 31, 2021 2020 (in millions) Cash payments for operating leases $ 40 $ 35 ROU assets obtained in exchange for operating lease obligations $ 78 $ 62 |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Maturity Analysis of Liabilities The maturities of our operating leases as of July 31, 2021 with initial terms exceeding one year were as follows: Operating Leases (in millions) 2021 (remainder) $ 13 2022 43 2023 36 2024 29 2025 23 Thereafter 123 Total undiscounted lease liability 267 Imputed interest 30 Total discounted lease liability $ 237 |
DEBT (Tables)
DEBT (Tables) | 9 Months Ended |
Jul. 31, 2021 | |
Debt Instrument | |
Schedule of Long-term Debt Instruments | The following table summarizes the components of our long-term debt: July 31, 2021 October 31, 2020 (in millions) 2024 Senior Notes at 4.55% ($600 face amount less unamortized costs of $1 and $2) $ 599 $ 598 2027 Senior Notes at 4.60% ($700 face amount less unamortized costs of $4 and $5) 696 695 2029 Senior Notes at 3.00% ($500 face amount less unamortized costs of $4 and $4) 496 496 Total debt $ 1,791 $ 1,789 |
RETIREMENT PLANS AND POST RET_2
RETIREMENT PLANS AND POST RETIREMENT PENSION PLANS (Tables) | 9 Months Ended |
Jul. 31, 2021 | |
Retirement Benefits [Abstract] | |
Schedule of net pension and post-retirement benefit costs | For the three and nine months ended July 31, 2021 and 2020, our net pension and post-retirement benefit cost (benefit) was comprised of the following: Pensions U.S. Defined Benefit Plans Non-U.S. Defined Benefit U.S. Post-Retirement Three Months Ended July 31, 2021 2020 2021 2020 2021 2020 (in millions) Service cost—benefits earned during the period $ 6 $ 5 $ 4 $ 4 $ 1 $ 1 Interest cost on benefit obligation 6 6 3 4 1 1 Expected return on plan assets (13) (11) (19) (20) (3) (3) Amortization: Net actuarial loss 6 5 10 8 3 3 Prior service credit — — — — — (3) Net periodic benefit cost (benefit) $ 5 $ 5 $ (2) $ (4) $ 2 $ (1) Pensions U.S. Defined Benefit Plans Non-U.S. Defined Benefit U.S. Post-Retirement Nine Months Ended July 31, 2021 2020 2021 2020 2021 2020 (in millions) Service cost—benefits earned during the period $ 18 $ 17 $ 11 $ 11 $ 1 $ 1 Interest cost on benefit obligation 17 18 11 12 3 4 Expected return on plan assets (39) (33) (58) (62) (9) (9) Amortization: Net actuarial loss 18 14 31 25 8 8 Prior service credit — — — — — (9) Settlement loss — — 16 — — — Net periodic benefit cost (benefit) $ 14 $ 16 $ 11 $ (14) $ 3 $ (5) |
SUPPLEMENTAL FINANCIAL INFORM_2
SUPPLEMENTAL FINANCIAL INFORMATION (Tables) | 9 Months Ended |
Jul. 31, 2021 | |
Other Significant Noncash Transactions [Line Items] | |
Cash Flow, Supplemental Disclosures [Text Block] | Cash, cash equivalents, and restricted cash July 31, 2021 October 31, 2020 (in millions) Cash and cash equivalents $ 2,153 $ 1,756 Restricted cash included in other current assets — 9 Restricted cash included in other assets 17 2 Total cash, cash equivalents, and restricted cash shown in the statement of cash flows $ 2,170 $ 1,767 |
Schedule of Inventory, Current [Table Text Block] | Inventory July 31, 2021 October 31, 2020 (in millions) Finished goods $ 330 $ 342 Purchased parts and fabricated assemblies 440 415 Total inventory $ 770 $ 757 |
Schedule of Product Warranty Liability [Table Text Block] | Activity related to the standard warranty accrual, which is included in other accrued and other long-term liabilities in our condensed consolidated balance sheet, is as follows: Nine Months Ended July 31, 2021 2020 (in millions) Beginning balance $ 33 $ 38 Accruals for warranties, including change in estimates 23 17 Settlements made during the period (21) (22) Ending balance $ 35 $ 33 Accruals for warranties due within one year $ 21 $ 19 Accruals for warranties due after one year 14 14 Ending balance $ 35 $ 33 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 9 Months Ended |
Jul. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Changes in accumulated other comprehensive loss by component and related tax effects for the three and nine months ended July 31, 2021 and 2020 were as follows: Foreign currency translation Net defined benefit pension cost and post retirement plan costs Unrealized gains (losses) on derivatives Total Actuarial losses Prior service credits (in millions) As of April 30, 2021 $ 7 $ (569) $ (5) $ 56 $ (511) Other comprehensive income (loss) before reclassifications (7) — — (29) (36) Amounts reclassified out of accumulated other comprehensive gain (loss) — 19 — (1) 18 Tax benefit (expense) — (6) — 7 1 Other comprehensive income (loss) (7) 13 — (23) (17) As of July 31, 2021 $ — $ (556) $ (5) $ 33 $ (528) As of October 31, 2020 $ (10) $ (600) $ (5) $ 16 $ (599) Other comprehensive income (loss) before reclassifications 10 (14) — 22 18 Amounts reclassified out of accumulated other comprehensive gain (loss) — 74 — (1) 73 Tax benefit (expense) — (16) — (4) (20) Other comprehensive income (loss) 10 44 — 17 71 As of July 31, 2021 $ — $ (556) $ (5) $ 33 $ (528) As of April 30, 2020 $ (50) $ (508) $ (1) $ (8) $ (567) Other comprehensive income (loss) before reclassifications 37 — — — 37 Amounts reclassified out of accumulated other comprehensive gain (loss) — 15 (3) 1 13 Tax benefit (expense) — (4) 1 — (3) Other comprehensive income (loss) 37 11 (2) 1 47 As of July 31, 2020 $ (13) $ (497) $ (3) $ (7) $ (520) As of October 31, 2019 $ (43) $ (536) $ 4 $ (3) $ (578) Other comprehensive income (loss) before reclassifications 30 — — (9) 21 Amounts reclassified out of accumulated other comprehensive gain (loss) — 47 (9) 3 41 Tax benefit (expense) — (8) 2 2 (4) Other comprehensive income (loss) 30 39 (7) (4) 58 As of July 31, 2020 $ (13) $ (497) $ (3) $ (7) $ (520) |
Reclassification out of Accumulated Other Comprehensive Income | Reclassifications out of accumulated other comprehensive loss for the three and nine months ended July 31, 2021 and 2020 were as follows: Details about accumulated other comprehensive loss components Amounts reclassified from other comprehensive loss Affected line item in statement of operations Three Months Ended Nine Months Ended July 31, July 31, 2021 2020 2021 2020 (in millions) (in millions) Unrealized gain (loss) on derivatives $ 1 $ (1) $ (1) $ (2) Cost of products — — 2 (1) Selling, general and administrative — — — — Benefit (provision) for income tax 1 (1) 1 (3) Net of Income tax Net defined benefit pension cost and post retirement plan costs: Net actuarial loss (19) (15) (74) (47) Prior service credits — 3 — 9 (19) (12) (74) (38) Total before income tax 5 3 19 6 Benefit (provision) for income tax (14) (9) (55) (32) Net of income tax Total reclassifications for the period $ (13) $ (10) $ (54) $ (35) |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 9 Months Ended |
Jul. 31, 2021 | |
Segment Reporting Information [Line Items] | |
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | Three Months Ended July 31, 2021 2020 CSG EISG Total CSG EISG Total (in millions) Revenue $ 875 $ 371 $ 1,246 $ 760 $ 251 $ 1,011 Segment income from operations $ 224 $ 115 $ 339 $ 197 $ 67 $ 264 Nine Months Ended July 31, 2021 2020 CSG EISG Total CSG EISG Total (in millions) Revenue $ 2,604 $ 1,043 $ 3,647 $ 2,231 $ 770 $ 3,001 Segment income from operations $ 670 $ 309 $ 979 $ 512 $ 199 $ 711 |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block] | The following table reconciles total reportable operating segments’ income from operations to our income before taxes, as reported: Three Months Ended Nine Months Ended July 31, July 31, 2021 2020 2021 2020 (in millions) Total reportable operating segments' income from operations $ 339 $ 264 $ 979 $ 711 Share-based compensation (19) (19) (84) (73) Amortization of acquisition-related balances (33) (54) (147) (167) Acquisition and integration costs (2) (8) (8) (12) Gain on insurance settlement — — — 32 Restructuring and other (1) (1) (9) (4) Income from operations, as reported 284 182 731 487 Interest income 1 1 2 11 Interest expense (20) (20) (59) (59) Other income (expense), net 5 22 (1) 56 Income before taxes, as reported $ 270 $ 185 $ 673 $ 495 |
REVENUE (Details)
REVENUE (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2021 | Jul. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 1,246 | $ 1,011 | $ 3,647 | $ 3,001 |
Communications Solutions Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 875 | 760 | 2,604 | 2,231 |
Electronic Industrial Solutions Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 371 | 251 | 1,043 | 770 |
Revenue recognized at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,051 | 840 | 3,079 | 2,498 |
Revenue recognized at a point in time | Communications Solutions Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 729 | 624 | 2,172 | 1,832 |
Revenue recognized at a point in time | Electronic Industrial Solutions Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 322 | 216 | 907 | 666 |
Revenue recognized over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 195 | 171 | 568 | 503 |
Revenue recognized over time | Communications Solutions Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 146 | 136 | 432 | 399 |
Revenue recognized over time | Electronic Industrial Solutions Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 49 | 35 | 136 | 104 |
Aerospace, Defense & Government | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 280 | 202 | 845 | 632 |
Aerospace, Defense & Government | Communications Solutions Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 280 | 202 | 845 | 632 |
Aerospace, Defense & Government | Electronic Industrial Solutions Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Commercial Communications | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 595 | 558 | 1,759 | 1,599 |
Commercial Communications | Communications Solutions Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 595 | 558 | 1,759 | 1,599 |
Commercial Communications | Electronic Industrial Solutions Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Electronic Industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 371 | 251 | 1,043 | 770 |
Electronic Industrial | Communications Solutions Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Electronic Industrial | Electronic Industrial Solutions Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 371 | 251 | 1,043 | 770 |
Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 499 | 365 | 1,451 | 1,142 |
Americas | Communications Solutions Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 418 | 321 | 1,228 | 993 |
Americas | Electronic Industrial Solutions Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 81 | 44 | 223 | 149 |
Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 201 | 159 | 602 | 491 |
Europe | Communications Solutions Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 122 | 94 | 380 | 301 |
Europe | Electronic Industrial Solutions Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 79 | 65 | 222 | 190 |
Asia Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 546 | 487 | 1,594 | 1,368 |
Asia Pacific | Communications Solutions Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 335 | 345 | 996 | 937 |
Asia Pacific | Electronic Industrial Solutions Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 211 | $ 142 | $ 598 | $ 431 |
REVENUE Contract Assets (Detail
REVENUE Contract Assets (Details) - USD ($) $ in Millions | Jul. 31, 2021 | Oct. 31, 2020 |
Accounts Receivable [Member] | ||
Contract with Customer, Asset, after Allowance for Credit Loss, Current | $ 61 | $ 61 |
REVENUE Capitalized Contractual
REVENUE Capitalized Contractual Cost (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2021 | Jul. 31, 2020 | Oct. 31, 2020 | |
Capitalized Contract Cost [Line Items] | |||||
Capitalized Contract Cost, Net | $ 32 | $ 32 | $ 31 | ||
Capitalized Contract Cost, Amortization | $ 20 | $ 17 | $ 58 | $ 50 |
REVENUE CONTRACT LIABILITIES RO
REVENUE CONTRACT LIABILITIES ROLL FORWARD (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Jul. 31, 2021 | Jul. 31, 2021 | |
Balance at October 31 | $ 566 | |
Deferred revenue arising out of acquisitions | 2 | |
Deferral of revenue billed in current period, net of recognition | 424 | |
Revenue recognized that was deferred as of the beginning of the period | $ 72 | (338) |
Foreign currency translation impact | 1 | |
Balance at July 31 | $ 655 | $ 655 |
REVENUE Remaining performance o
REVENUE Remaining performance obligations (Details) $ in Millions | 9 Months Ended |
Jul. 31, 2021USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Revenue, Remaining Performance Obligation, Amount | $ 365 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Document Period End Date | Jul. 31, 2021 |
Revenue, Remaining Performance Obligation, Amount | $ 365 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-08-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 3 months |
Revenue, Remaining Performance Obligation, Percentage | 15.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Year | 2021 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-11-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Percentage | 45.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Year | 2022 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-11-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | |
Revenue, Remaining Performance Obligation, Percentage | 40.00% |
SHARE-BASED COMPENSATION (Alloc
SHARE-BASED COMPENSATION (Allocation of period costs) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2021 | Jul. 31, 2020 | |
Share-based Compensation Expense, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based Compensation Expense | $ 19 | $ 19 | $ 84 | $ 73 |
Cost of products and services | ||||
Share-based Compensation Expense, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based Compensation Expense | 3 | 4 | 16 | 13 |
Research and development | ||||
Share-based Compensation Expense, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based Compensation Expense | 4 | 4 | 17 | 15 |
Selling, general and administrative | ||||
Share-based Compensation Expense, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based Compensation Expense | $ 12 | $ 11 | $ 51 | $ 45 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2021 | Jul. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Income before taxes | $ 270 | $ 185 | $ 673 | $ 495 |
Provision for income taxes | $ 16 | $ 9 | $ 61 | $ 85 |
Effective Income Tax Rate, Percent | 5.90% | 4.70% | 9.00% | 17.20% |
Net Discrete Expense (Benefit) | $ (26) | $ (10) | $ (46) | $ (5) |
Decrease in income tax provision due to tax incentives, Aggregate Dollar Amount | $ 41 | $ 29 | ||
Decrease in income tax provision due to tax incentives, Income Tax Benefits Per Share | $ 0.22 | $ 0.15 | ||
Tax incentives, Description | Keysight benefits from tax incentives in several jurisdictions, most significantly in Singapore and Malaysia, that have granted us tax incentives that require renewal at various times in the future. The tax incentives provide lower rates of taxation on certain classes of income and require thresholds of investments and employment or specific types of income in those jurisdictions. |
INCOME TAXES INCOME TAXES (Tax
INCOME TAXES INCOME TAXES (Tax incentives) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | |
Jul. 31, 2021 | Jul. 31, 2021 | Jul. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Tax incentives, Description | Keysight benefits from tax incentives in several jurisdictions, most significantly in Singapore and Malaysia, that have granted us tax incentives that require renewal at various times in the future. The tax incentives provide lower rates of taxation on certain classes of income and require thresholds of investments and employment or specific types of income in those jurisdictions. | ||
Decrease in income tax provision due to tax incentives, Aggregate Dollar Amount | $ 41 | $ 29 | |
Decrease in income tax provision due to tax incentives, Income Tax Benefits Per Share | $ 0.22 | $ 0.15 |
INCOME TAXES INCOME TAXES (Inco
INCOME TAXES INCOME TAXES (Income tax examination) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 31, 2021 | Oct. 31, 2018 | |
Income Tax Examination [Line Items] | ||
Income Tax Examination, Description | . This tax year pre-dates our separation from Agilent. However, pursuant to the tax matters agreement between Agilent and Keysight that was finalized at the time of separation, for certain entities, including Malaysia, any historical tax liability is the responsibility of Keysight. | |
Internal Revenue Service (IRS) | ||
Income Tax Examination [Line Items] | ||
Open tax year, from date | Nov. 1, 2016 | |
Malaysia Tax Authority [Member] | ||
Income Tax Examination [Line Items] | ||
Income Tax Examination, Penalties and Interest Expense | $ 68 |
NET INCOME PER SHARE NET INCOME
NET INCOME PER SHARE NET INCOME PER SHARE (Computation) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2021 | Jul. 31, 2020 | |
Numerator: | ||||
Net income | $ 254 | $ 176 | $ 612 | $ 410 |
Denominator: | ||||
Basic weighted-average shares | 184 | 187 | 185 | 187 |
Potential common shares— stock options and other employee stock plans | 2 | 3 | 2 | 3 |
Diluted weighted-average shares | 186 | 190 | 187 | 190 |
Net income per share - basic | $ 1.38 | $ 0.94 | $ 3.31 | $ 2.19 |
Net income per share - diluted | $ 1.36 | $ 0.93 | $ 3.27 | $ 2.16 |
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, 2021 | Jul. 31, 2021 | Oct. 31, 2020 | |
Goodwill [Roll Forward] | |||
Goodwill | $ 1,610 | $ 1,610 | $ 1,537 |
Foreign currency translation impact | 1 | ||
Goodwill, Acquired During Period | 72 | ||
Goodwill, Gross | 2,319 | 2,319 | 2,246 |
Goodwill, Impaired, Accumulated Impairment Loss | (709) | (709) | (709) |
Communications Solutions Group | |||
Goodwill [Roll Forward] | |||
Goodwill | 1,049 | 1,049 | 984 |
Foreign currency translation impact | (7) | ||
Goodwill, Acquired During Period | 72 | ||
Goodwill, Gross | 1,758 | 1,758 | 1,693 |
Goodwill, Impaired, Accumulated Impairment Loss | (709) | (709) | (709) |
Communications Solutions Group | Sanjole Inc [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill, Acquired During Period | 49 | ||
Electronic Industrial Solutions Group | |||
Goodwill [Roll Forward] | |||
Goodwill | 561 | 561 | 553 |
Foreign currency translation impact | 8 | ||
Goodwill, Acquired During Period | 0 | ||
Goodwill, Gross | 561 | 561 | 553 |
Goodwill, Impaired, Accumulated Impairment Loss | $ 0 | $ 0 | $ 0 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS (Disclosures and Components of Purchased Other Intangibles) (Details) - USD ($) $ in Millions | Jul. 31, 2021 | Oct. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Amortizable intangible assets, Gross carrying amount | $ 1,395 | $ 1,331 |
Accumulated Amortization and impairments | 1,119 | 972 |
Amortizable intangible assets, Net book value | 276 | 359 |
In-Process R&D | 7 | 2 |
Intangible Assets, Gross (Excluding Goodwill) | 1,402 | 1,333 |
Intangible Assets, Net (Excluding Goodwill) | 283 | 361 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortizable intangible assets, Gross carrying amount | 958 | 915 |
Accumulated Amortization and impairments | 854 | 749 |
Amortizable intangible assets, Net book value | 104 | 166 |
Backlog | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortizable intangible assets, Gross carrying amount | 17 | 17 |
Accumulated Amortization and impairments | 16 | 14 |
Amortizable intangible assets, Net book value | 1 | 3 |
Trademark/Tradename | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortizable intangible assets, Gross carrying amount | 36 | 35 |
Accumulated Amortization and impairments | 28 | 25 |
Amortizable intangible assets, Net book value | 8 | 10 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortizable intangible assets, Gross carrying amount | 381 | 363 |
Accumulated Amortization and impairments | 220 | 183 |
Amortizable intangible assets, Net book value | 161 | 180 |
Non-compete agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortizable intangible assets, Gross carrying amount | 3 | 1 |
Accumulated Amortization and impairments | 1 | 1 |
Amortizable intangible assets, Net book value | $ 2 | $ 0 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS (Acquisition Narratives) (Details) - USD ($) $ in Millions | Apr. 07, 2021 | Dec. 30, 2020 | Jul. 31, 2021 | Jul. 31, 2021 | Jul. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | |||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 136 | $ 324 | |||
Goodwill, Acquired During Period | $ 72 | ||||
Sanjole Inc [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 102 | ||||
Cash Acquired from Acquisition | $ 11 | ||||
Finite-lived Intangible Assets Acquired | 51 | ||||
Indefinite-lived Intangible Assets Acquired | 7 | ||||
Sanjole Inc [Member] | Developed technology | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-lived Intangible Assets Acquired | $ 24 | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 7 years | ||||
Sanjole Inc [Member] | Customer relationships | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-lived Intangible Assets Acquired | 17 | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 9 years | ||||
Communications Solutions Group | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Goodwill, Acquired During Period | $ 72 | ||||
Communications Solutions Group | Other [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 34 | ||||
Goodwill, Acquired During Period | 23 | ||||
Finite-lived Intangible Assets Acquired | 16 | ||||
Communications Solutions Group | Sanjole Inc [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Goodwill, Acquired During Period | $ 49 |
GOODWILL AND OTHER INTANGIBLE_6
GOODWILL AND OTHER INTANGIBLE ASSETS (Intangible assets narratives) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2021 | Jul. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Finite Lived Intangible Assets, Foreign Currency Translation Gain (Loss) | $ 4 | |||
Amortization of Intangible Assets | $ 33 | $ 54 | 147 | $ 162 |
Indefinite-lived Intangible Assets [Line Items] | ||||
Amortization of Intangible Assets | $ 33 | $ 54 | $ 147 | $ 162 |
GOODWILL AND OTHER INTANGIBLE_7
GOODWILL AND OTHER INTANGIBLE ASSETS (Finite-Lived Assets Future Amortization Expense) (Details) $ in Millions | Jul. 31, 2021USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
2021 (remainder) | $ 26 |
2022 | 96 |
2023 | 74 |
2024 | 34 |
2025 | 17 |
Thereafter | $ 29 |
FAIR VALUE MEASUREMENTS (Fair v
FAIR VALUE MEASUREMENTS (Fair value of assets and liabilities measured on a recurring basis) (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions | Jul. 31, 2021 | Oct. 31, 2020 |
Assets Short - term [Abstract] | ||
Money market funds | $ 1,402 | $ 1,047 |
Derivative instruments (foreign exchange contracts) | 3 | 3 |
Assets, Long-term [Abstract] | ||
Interest Rate Derivative Assets, at Fair Value | 42 | 23 |
Equity investments | 58 | 52 |
Equity investments - other | 10 | 9 |
Total assets measured at fair value | 1,515 | 1,134 |
Liabilities, Short-term [Abstract] | ||
Derivative instruments (foreign exchange contracts) | 3 | 4 |
Liabilities Long-term [Abstract] | ||
Deferred compensation liability | 24 | 18 |
Total liabilities measured at fair value | 27 | 22 |
Level 1 | ||
Assets Short - term [Abstract] | ||
Money market funds | 1,402 | 1,047 |
Derivative instruments (foreign exchange contracts) | 0 | 0 |
Assets, Long-term [Abstract] | ||
Interest Rate Derivative Assets, at Fair Value | 0 | 0 |
Equity investments | 58 | 52 |
Equity investments - other | 0 | 0 |
Total assets measured at fair value | 1,460 | 1,099 |
Liabilities, Short-term [Abstract] | ||
Derivative instruments (foreign exchange contracts) | 0 | 0 |
Liabilities Long-term [Abstract] | ||
Deferred compensation liability | 0 | 0 |
Total liabilities measured at fair value | 0 | 0 |
Level 2 | ||
Assets Short - term [Abstract] | ||
Money market funds | 0 | 0 |
Derivative instruments (foreign exchange contracts) | 3 | 3 |
Assets, Long-term [Abstract] | ||
Interest Rate Derivative Assets, at Fair Value | 42 | 23 |
Equity investments | 0 | 0 |
Equity investments - other | 0 | 0 |
Total assets measured at fair value | 45 | 26 |
Liabilities, Short-term [Abstract] | ||
Derivative instruments (foreign exchange contracts) | 3 | 4 |
Liabilities Long-term [Abstract] | ||
Deferred compensation liability | 24 | 18 |
Total liabilities measured at fair value | 27 | 22 |
Level 3 | ||
Assets Short - term [Abstract] | ||
Money market funds | 0 | 0 |
Derivative instruments (foreign exchange contracts) | 0 | 0 |
Assets, Long-term [Abstract] | ||
Interest Rate Derivative Assets, at Fair Value | 0 | 0 |
Equity investments | 0 | 0 |
Equity investments - other | 0 | 0 |
Total assets measured at fair value | 0 | 0 |
Liabilities, Short-term [Abstract] | ||
Derivative instruments (foreign exchange contracts) | 0 | 0 |
Liabilities Long-term [Abstract] | ||
Deferred compensation liability | 0 | 0 |
Total liabilities measured at fair value | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS FAIR VA
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS (Net recognized gains losses on equity securities) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2021 | Jul. 31, 2020 | |
Debt and Equity Securities, Gain (Loss) [Abstract] | ||||
Equity Securities, FV-NI, Unrealized Gain (Loss) | $ 1 | $ 3 | $ 2 | $ 13 |
DERIVATIVES Derivative, interes
DERIVATIVES Derivative, interest rate swaps (Details) $ in Millions | Jul. 31, 2021USD ($) |
Treasury Lock | |
Derivative [Line Items] | |
Derivative Liability, Notional Amount | $ 600 |
DERIVATIVES, Disclosures and de
DERIVATIVES, Disclosures and derivative instrument aggregated notional amounts by currency and designations (Details) - Foreign Exchange Forward | Jul. 31, 2021USD ($)contracts |
Cash Flow Hedging | |
Derivative [Line Items] | |
Number of Foreign Currency Derivatives Held | contracts | 207 |
Not Designated as Hedging Instrument | |
Derivative [Line Items] | |
Number of Foreign Currency Derivatives Held | contracts | 73 |
Designated as Hedging Instruments | Buy | Cash Flow Hedging | |
Derivative [Line Items] | |
Derivative Liability, Notional Amount | $ (61,000,000) |
Designated as Hedging Instruments | Buy | Euro | Cash Flow Hedging | |
Derivative [Line Items] | |
Derivative Liability, Notional Amount | (19,000,000) |
Designated as Hedging Instruments | Buy | British Pound | Cash Flow Hedging | |
Derivative [Line Items] | |
Derivative Liability, Notional Amount | (17,000,000) |
Designated as Hedging Instruments | Buy | Singapore Dollar | Cash Flow Hedging | |
Derivative [Line Items] | |
Derivative Liability, Notional Amount | (23,000,000) |
Designated as Hedging Instruments | Buy | Malaysian Ringgit | Cash Flow Hedging | |
Derivative [Line Items] | |
Derivative Liability, Notional Amount | (93,000,000) |
Designated as Hedging Instruments | Buy | Other currencies | Cash Flow Hedging | |
Derivative [Line Items] | |
Derivative Liability, Notional Amount | (10,000,000) |
Designated as Hedging Instruments | Sell | Japanese Yen | Cash Flow Hedging | |
Derivative [Line Items] | |
Derivative Liability, Notional Amount | (101,000,000) |
Not Designated as Hedging Instrument | Buy | Euro | |
Derivative [Line Items] | |
Derivative Liability, Notional Amount | (46,000,000) |
Not Designated as Hedging Instrument | Buy | Singapore Dollar | |
Derivative [Line Items] | |
Derivative Liability, Notional Amount | (12,000,000) |
Not Designated as Hedging Instrument | Buy | Malaysian Ringgit | |
Derivative [Line Items] | |
Derivative Liability, Notional Amount | (10,000,000) |
Not Designated as Hedging Instrument | Sell | |
Derivative [Line Items] | |
Derivative Liability, Notional Amount | (93,000,000) |
Not Designated as Hedging Instrument | Sell | British Pound | |
Derivative [Line Items] | |
Derivative Liability, Notional Amount | (108,000,000) |
Not Designated as Hedging Instrument | Sell | Japanese Yen | |
Derivative [Line Items] | |
Derivative Liability, Notional Amount | (42,000,000) |
Not Designated as Hedging Instrument | Sell | Other currencies | |
Derivative [Line Items] | |
Derivative Liability, Notional Amount | $ (11,000,000) |
DERIVATIVES, Fair value of deri
DERIVATIVES, Fair value of derivative instruments and Consolidated Balance Sheet location (Details) - USD ($) $ in Millions | 9 Months Ended | |
Jul. 31, 2021 | Oct. 31, 2020 | |
Derivative Fair Value by Balance Sheet Location [Abstract] | ||
Total derivatives Asset | $ 45 | $ 26 |
Total derivatives Liabilities | 3 | 4 |
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | 0 | |
Designated as Hedging Instruments | Cash Flow Hedging | Foreign Exchange Contracts | Other Current Assets [Member] | ||
Derivative Fair Value by Balance Sheet Location [Abstract] | ||
Total derivatives Asset | 3 | 2 |
Designated as Hedging Instruments | Cash Flow Hedging | Foreign Exchange Contracts | Other Accrued Liabilities [Member] | ||
Derivative Fair Value by Balance Sheet Location [Abstract] | ||
Total derivatives Liabilities | 1 | 3 |
Designated as Hedging Instruments | Cash Flow Hedging | Treasury Lock | Other Assets [Member] | ||
Derivative Fair Value by Balance Sheet Location [Abstract] | ||
Total derivatives Asset | 42 | 23 |
Not Designated as Hedging Instrument | Foreign Exchange Contracts | Other Current Assets [Member] | ||
Derivative Fair Value by Balance Sheet Location [Abstract] | ||
Total derivatives Asset | 0 | 1 |
Not Designated as Hedging Instrument | Foreign Exchange Contracts | Other Accrued Liabilities [Member] | ||
Derivative Fair Value by Balance Sheet Location [Abstract] | ||
Total derivatives Liabilities | $ 2 | $ 1 |
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, 2021 | Jul. 31, 2020 | Jul. 31, 2021 | Jul. 31, 2020 | |
Derivative [Line Items] | ||||
Cash Flow Hedge Gain (Loss) to be Reclassified within next Twelve Months | $ 0 | |||
Treasury Lock | ||||
Derivative [Line Items] | ||||
Derivative Liability, Notional Amount | $ 600 | 600 | ||
Designated as Hedging Instruments | Cash Flow Hedging | Interest Rate Swap [Member] | Accumulated Other Comprehensive Income (Loss) | ||||
Derivative [Line Items] | ||||
Gain (loss) recognized in accumulated other comprehensive income (loss) | (29) | $ (3) | 19 | $ (7) |
Designated as Hedging Instruments | Cash Flow Hedging | Foreign Exchange Contracts | Accumulated Other Comprehensive Income (Loss) | ||||
Derivative [Line Items] | ||||
Gain (loss) recognized in accumulated other comprehensive income (loss) | 0 | 3 | 3 | (2) |
Designated as Hedging Instruments | Cash Flow Hedging | Foreign Exchange Contracts | Selling, general and administrative | ||||
Derivative [Line Items] | ||||
Gain (loss) reclassified from accumulated other comprehensive income (loss) into earnings: | 0 | 0 | 2 | (1) |
Gain excluded from effectiveness testing recognized in earnings based on changes in fair value: | 1 | 0 | 1 | 0 |
Designated as Hedging Instruments | Cash Flow Hedging | Foreign Exchange Contracts | Cost of products and services | ||||
Derivative [Line Items] | ||||
Gain (loss) reclassified from accumulated other comprehensive income (loss) into earnings: | 1 | (1) | (1) | (2) |
Gain excluded from effectiveness testing recognized in earnings based on changes in fair value: | 0 | 0 | 0 | 2 |
Not Designated as Hedging Instrument | Other (income) expense, net | ||||
Derivative [Line Items] | ||||
Derivatives not designated as hedging instruments: | (2) | 1 | (5) | 4 |
Not Designated as Hedging Instrument | Cost of products and services | ||||
Derivative [Line Items] | ||||
Derivatives not designated as hedging instruments: | $ 0 | $ 0 | $ 1 | $ 0 |
LEASES (Details)
LEASES (Details) | 9 Months Ended | |
Jul. 31, 2021 | Jul. 31, 2020 | |
Leases [Abstract] | ||
Lessee, Operating Lease, Description | We have operating leases for items including office space, order fulfillment, sales and service centers, R&D and certain equipment, primarily automobiles. Most of our leases have remaining terms of up to 13 years, some of which may include options to extend the leases, primarily for 3 to 5 years. We consider options to renew in our lease terms and measurement of right-of-use ("ROU") assets and lease liabilities if we determine they are reasonably certain to be exercised. | |
Operating Lease, Weighted Average Remaining Lease Term | 8 years 4 months 24 days | 7 years 4 months 24 days |
Operating Lease, Weighted Average Discount Rate, Percent | 3.00% | 3.00% |
LEASES COST (Details)
LEASES COST (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2021 | Jul. 31, 2020 | |
Leases [Abstract] | ||||
Operating lease cost | $ 13 | $ 13 | $ 39 | $ 36 |
Variable lease cost | $ 4 | $ 4 | $ 11 | $ 12 |
LEASES Supplemental Information
LEASES Supplemental Information related to leases (Details) - USD ($) $ in Millions | 9 Months Ended | |
Jul. 31, 2021 | Jul. 31, 2020 | |
Leases [Abstract] | ||
Cash payments for operating leases | $ 40 | $ 35 |
ROU assets obtained in exchange for operating lease obligations | $ 78 | $ 62 |
LEASES Maturity analysis (Detai
LEASES Maturity analysis (Details) $ in Millions | Jul. 31, 2021USD ($) |
Leases [Abstract] | |
2021 (remainder) | $ 13 |
2022 | 43 |
2023 | 36 |
2024 | 29 |
2025 | 23 |
Thereafter | 123 |
Total undiscounted lease liability | 267 |
Imputed interest | 30 |
Operating Lease, Liability | $ 237 |
LEASES Lessor disclosure (Detai
LEASES Lessor disclosure (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2021 | Jul. 31, 2020 | |
Leases [Abstract] | ||||
Rental Income, Nonoperating | $ 2 | $ 2 | $ 8 | $ 8 |
DEBT Long Term Debt (Details)
DEBT Long Term Debt (Details) - USD ($) $ in Millions | Jul. 31, 2021 | Oct. 31, 2020 |
Debt Instrument | ||
Total debt | $ 1,791 | $ 1,789 |
Letters of Credit Outstanding, Amount | 41 | 40 |
Senior Notes 2024 | ||
Debt Instrument | ||
Total debt | 599 | 598 |
Unamortized costs | 1 | 2 |
Senior Notes 2027 | ||
Debt Instrument | ||
Total debt | 696 | 695 |
Unamortized costs | 4 | 5 |
Senior Notes 2029 | ||
Debt Instrument | ||
Total debt | 496 | 496 |
Unamortized costs | $ 4 | $ 4 |
DEBT (Short-Term Debt - Revolvi
DEBT (Short-Term Debt - Revolving Credit Facility) (Details) - USD ($) $ in Millions | Jul. 30, 2021 | Jul. 31, 2021 |
Line of Credit facility | ||
Document Period End Date | Jul. 31, 2021 | |
Facility, Initiation Date | Jul. 30, 2021 | |
Facility, Maximum Borrowing Capacity | $ 750 | |
Facility, Expiration Date | Jul. 30, 2026 | |
Additional drawings on credit facility | $ 250 | |
Facility, Covenant Compliance | We were in compliance with the covenants of the Revolving Credit Facility during the nine months ended July 31, 2021 | |
Revolving Credit Facility | ||
Line of Credit facility | ||
Facility, Outstanding | $ 0 | |
London Interbank Offered Rate (LIBOR) | Revolving Credit Facility | ||
Line of Credit facility | ||
Debt Instrument, Description of Variable Rate Basis | LIBOR + 1.125 percent |
DEBT Debt (Textuals) (Details)
DEBT Debt (Textuals) (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Jul. 31, 2021 | Jul. 31, 2020 | Oct. 31, 2020 | |
Short-term Debt [Line Items] | |||
Repayment of debt | $ 0 | $ 7 | |
Long Term Debt Fair Value Over Carrying Value | 230 | $ 236 | |
Letters of Credit Outstanding, Amount | $ 41 | $ 40 |
RETIREMENT PLANS AND POST RET_3
RETIREMENT PLANS AND POST RETIREMENT PENSION PLANS (Net Pension and post-retirement benefit cost(benefit) components) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2021 | Jul. 31, 2020 | |
Defined Benefit Plan Disclosure | ||||
Loss on settlement of pension plan | $ 16 | $ 0 | ||
Pension Expense (Reversal of Expense), Noncash | 3 | |||
Defined benefit plan | United States | ||||
Defined Benefit Plan Disclosure | ||||
Service cost—benefits earned during the period | $ 6 | $ 5 | 18 | 17 |
Interest cost on benefit obligation | 6 | 6 | 17 | 18 |
Expected return on plan assets | (13) | (11) | (39) | (33) |
Net actuarial loss | 6 | 5 | 18 | 14 |
Prior service credit | 0 | 0 | 0 | 0 |
Settlement loss | 0 | 0 | ||
Net periodic benefit cost (benefit) | 5 | 5 | 14 | 16 |
Defined benefit plan | Non-US | ||||
Defined Benefit Plan Disclosure | ||||
Service cost—benefits earned during the period | 4 | 4 | 11 | 11 |
Interest cost on benefit obligation | 3 | 4 | 11 | 12 |
Expected return on plan assets | (19) | (20) | (58) | (62) |
Net actuarial loss | 10 | 8 | 31 | 25 |
Prior service credit | 0 | 0 | 0 | 0 |
Settlement loss | 16 | 0 | ||
Net periodic benefit cost (benefit) | (2) | (4) | 11 | (14) |
Post-retirement Benefits Plan | United States | ||||
Defined Benefit Plan Disclosure | ||||
Service cost—benefits earned during the period | 1 | 1 | 1 | 1 |
Interest cost on benefit obligation | 1 | 1 | 3 | 4 |
Expected return on plan assets | (3) | (3) | (9) | (9) |
Net actuarial loss | 3 | 3 | 8 | 8 |
Prior service credit | 0 | (3) | 0 | (9) |
Settlement loss | 0 | 0 | ||
Net periodic benefit cost (benefit) | $ 2 | $ (1) | $ 3 | $ (5) |
RETIREMENT PLANS AND POST RET_4
RETIREMENT PLANS AND POST RETIREMENT PENSION PLANS (Contributions) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2021 | Jul. 31, 2020 | |
Defined Benefit Plan Disclosure | ||||
Loss on settlement of pension plan | $ 16 | $ 0 | ||
United States | Defined benefit plan | ||||
Defined Benefit Plan Disclosure | ||||
Contributions by employer | $ 0 | $ 0 | 0 | 0 |
Estimated future employer contributions in remainder of current fiscal year | 0 | 0 | ||
United States | Post-retirement Benefits Plan | ||||
Defined Benefit Plan Disclosure | ||||
Contributions by employer | 0 | 0 | 0 | 0 |
Estimated future employer contributions in remainder of current fiscal year | 0 | 0 | ||
Non-US | Defined benefit plan | ||||
Defined Benefit Plan Disclosure | ||||
Contributions by employer | 1 | $ 2 | 6 | $ 6 |
Estimated future employer contributions in remainder of current fiscal year | $ 2 | $ 2 |
RETIREMENT PLANS AND POST RET_5
RETIREMENT PLANS AND POST RETIREMENT PENSION PLANS (Switzerland defined benefit plan settlement) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Jul. 31, 2021 | Jul. 31, 2020 | |
Defined benefit plan | Non-US | ||
Defined Benefit Plan Disclosure | ||
Settlement loss | $ 16 | $ 0 |
SUPPLEMENTAL CASH FLOW INFORMAT
SUPPLEMENTAL CASH FLOW INFORMATION (Cash, cash equivalents an restricted cash reconciliation) (Details) - USD ($) $ in Millions | Jul. 31, 2021 | Oct. 31, 2020 | Jul. 31, 2020 | Oct. 31, 2019 |
Cash and cash equivalents | $ 2,153 | $ 1,756 | ||
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows | 2,170 | 1,767 | $ 1,703 | $ 1,600 |
Other Current Assets [Member] | ||||
Restricted cash included in other current assets | 0 | 9 | ||
Other Assets [Member] | ||||
Restricted cash included in other assets | $ 17 | $ 2 |
INVENTORY (Details)
INVENTORY (Details) - USD ($) $ in Millions | Jul. 31, 2021 | Oct. 31, 2020 |
Inventory, Net [Abstract] | ||
Finished goods | $ 330 | $ 342 |
Inventory, Work in Process and Raw Materials | 440 | 415 |
Inventory, Net | $ 770 | $ 757 |
WARRANTIES (Details)
WARRANTIES (Details) - USD ($) $ in Millions | 9 Months Ended | |
Jul. 31, 2021 | Jul. 31, 2020 | |
Guarantees [Abstract] | ||
Standard Product Warranty Description | Our warranties on products sold through direct sales channels are primarily for one year. Warranties for products sold through distribution channels are primarily for three years. | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Beginning balance | $ 33 | $ 38 |
Accruals for warranties, including change in estimates | 23 | 17 |
Settlements made during the period | (21) | (22) |
Ending balance | 35 | 33 |
Standard Product Warranty Disclosure [Abstract] | ||
Accruals for warranties due within one year | 21 | 19 |
Accruals for warranties due after one year | 14 | 14 |
Ending balance | $ 35 | $ 33 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Millions | Jul. 31, 2021 | Oct. 31, 2020 |
Commitments and Contingencies Disclosure [Abstract] | ||
Unrecorded Unconditional Purchase Obligation | $ 465 | $ 349 |
Other Commitment | 62 | $ 52 |
Loss Contingency, Estimate of Possible Loss | 6.6 | |
Loss Contingency, Range of Possible Loss, Portion Not Accrued | $ 2.5 |
STOCKHOLDERS' EQUITY (Stock Rep
STOCKHOLDERS' EQUITY (Stock Repurchase Program) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2021 | Jul. 31, 2020 | Nov. 18, 2020 | |
Condensed Balance Sheet Statements, Captions [Line Items] | |||||
Stock Repurchase Program, Authorized Amount | $ 750 | ||||
Treasury Stock, Shares, Acquired | 2,297,600 | 2,047,166 | |||
Treasury Stock, Value, Acquired, Cost Method | $ 80 | $ 0 | $ 320 | $ 195 |
STOCKHOLDER'S EQUITY - Accumula
STOCKHOLDER'S EQUITY - Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2021 | Jul. 31, 2020 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | $ (511) | $ (567) | $ (599) | $ (578) |
Other comprehensive income (loss) before reclassifications | (36) | 37 | 18 | 21 |
Amounts reclassified out of accumulated other comprehensive gain (loss) | 18 | 13 | 73 | 41 |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | 1 | (3) | (20) | (4) |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent, Total | (17) | 47 | 71 | 58 |
Ending balance | (528) | (520) | (528) | (520) |
Foreign currency translation | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | 7 | (50) | (10) | (43) |
Other comprehensive income (loss) before reclassifications | (7) | 37 | 10 | 30 |
Amounts reclassified out of accumulated other comprehensive gain (loss) | 0 | 0 | 0 | 0 |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | 0 | 0 | 0 | 0 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent, Total | (7) | 37 | 10 | 30 |
Ending balance | 0 | (13) | 0 | (13) |
Actuarial losses | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (569) | (508) | (600) | (536) |
Other comprehensive income (loss) before reclassifications | 0 | 0 | (14) | 0 |
Amounts reclassified out of accumulated other comprehensive gain (loss) | 19 | 15 | 74 | 47 |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | (6) | (4) | (16) | (8) |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent, Total | 13 | 11 | 44 | 39 |
Ending balance | (556) | (497) | (556) | (497) |
Prior service credits | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (5) | (1) | (5) | 4 |
Other comprehensive income (loss) before reclassifications | 0 | 0 | 0 | 0 |
Amounts reclassified out of accumulated other comprehensive gain (loss) | 0 | (3) | 0 | (9) |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | 0 | 1 | 0 | 2 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent, Total | 0 | (2) | 0 | (7) |
Ending balance | (5) | (3) | (5) | (3) |
Unrealized gains (losses) on derivatives | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | 56 | (8) | 16 | (3) |
Other comprehensive income (loss) before reclassifications | (29) | 0 | 22 | (9) |
Amounts reclassified out of accumulated other comprehensive gain (loss) | (1) | 1 | (1) | 3 |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | 7 | 0 | (4) | 2 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent, Total | (23) | 1 | 17 | (4) |
Ending balance | $ 33 | $ (7) | $ 33 | $ (7) |
STOCKHOLDERS' EQUITY - Reclassi
STOCKHOLDERS' EQUITY - Reclassifications out of accumulated comprehensive income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2021 | Jul. 31, 2020 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Cost of products | $ 458 | $ 405 | $ 1,415 | $ 1,224 |
Selling, general and administrative | 302 | 259 | 900 | 810 |
Benefit (provision) for income tax | (16) | (9) | (61) | (85) |
Net income | 254 | 176 | 612 | 410 |
Income before taxes | 270 | 185 | 673 | 495 |
Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Net income | (13) | (10) | (54) | (35) |
Unrealized gain (loss) on derivatives | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Cost of products | 1 | (1) | (1) | (2) |
Selling, general and administrative | 0 | 0 | 2 | (1) |
Benefit (provision) for income tax | 0 | 0 | 0 | 0 |
Net income | 1 | (1) | 1 | (3) |
Net defined benefit pension cost and post retirement plan costs, actuarial losses | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Income before taxes | (19) | (15) | (74) | (47) |
Net defined benefit pension cost and post retirement plan costs, prior service credits | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Income before taxes | 0 | 3 | 0 | 9 |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Benefit (provision) for income tax | 5 | 3 | 19 | 6 |
Net income | (14) | (9) | (55) | (32) |
Income before taxes | $ (19) | $ (12) | $ (74) | $ (38) |
SEGMENT INFORMATION Profitabili
SEGMENT INFORMATION Profitability (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2021USD ($) | Jul. 31, 2020USD ($) | Jul. 31, 2021USD ($)segment | Jul. 31, 2020USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of Reportable Segments | segment | 2 | |||
Revenue | $ 1,246 | $ 1,011 | $ 3,647 | $ 3,001 |
Segment income from operations | 284 | 182 | 731 | 487 |
Communications Solutions Group | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 875 | 760 | 2,604 | 2,231 |
Electronic Industrial Solutions Group | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 371 | 251 | 1,043 | 770 |
Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Segment income from operations | 339 | 264 | 979 | 711 |
Operating Segments [Member] | Communications Solutions Group | ||||
Segment Reporting Information [Line Items] | ||||
Segment income from operations | 224 | 197 | 670 | 512 |
Operating Segments [Member] | Electronic Industrial Solutions Group | ||||
Segment Reporting Information [Line Items] | ||||
Segment income from operations | $ 115 | $ 67 | $ 309 | $ 199 |
SEGMENT INFORMATION Reconciliat
SEGMENT INFORMATION Reconciliation of Reportable Results (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2021 | Jul. 31, 2020 | |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Abstract] | ||||
Total reportable operating segments' income from operations | $ 284 | $ 182 | $ 731 | $ 487 |
Share-based Payment Arrangement, Expensed and Capitalized, Amount | (19) | (19) | (84) | (73) |
Amortization of acquisition-related balances | (33) | (54) | (147) | (167) |
Business Combination, Acquisition Related Costs | (2) | (8) | (8) | (12) |
Northern California wildfire-related costs | 0 | 0 | 0 | 32 |
Restructuring and other | (1) | (1) | (9) | (4) |
Income from operations | 284 | 182 | 731 | 487 |
Interest income | 1 | 1 | 2 | 11 |
Interest Expense, Deposits | (20) | (20) | (59) | (59) |
Other Nonoperating Gains (Losses) | 5 | 22 | (1) | 56 |
Income before taxes | 270 | 185 | 673 | 495 |
Operating Segments [Member] | ||||
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Abstract] | ||||
Total reportable operating segments' income from operations | 339 | 264 | 979 | 711 |
Income from operations | $ 339 | $ 264 | $ 979 | $ 711 |