(Mark One)
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||
x
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
|
For the fiscal year ended October 31, 2017
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or
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||
o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the transition period from to
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Delaware
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77-0518772
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State or other jurisdiction of
Incorporation or organization
|
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I.R.S. Employer
Identification No.
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Title of each class
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Name of each exchange on which registered
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Common Stock
par value $0.01 per share
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New York Stock Exchange
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Large accelerated filer
x
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Accelerated filer
¨
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Smaller reporting company
¨
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Emerging growth company
¨
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Non-accelerated filer
¨
(Do not check if a smaller reporting company)
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|
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Document Description
|
|
10-K Part
|
Portions of the Proxy Statement for the Annual Meeting of Stockholders (the "Proxy Statement") to be held on March 21, 2018, and to be filed pursuant to Regulation 14A within 120 days after registrant's fiscal year ended October 31, 2017 are incorporated by reference into Part III of this Report
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III
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Page
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||
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||
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||
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||
•
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properly identify customer needs and predict future needs;
|
•
|
innovate and develop new technologies, services and applications;
|
•
|
appropriately allocate our research and development spending to products and services with higher growth prospects;
|
•
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successfully commercialize new technologies in a timely manner;
|
•
|
manufacture and deliver new products in sufficient volumes and on time;
|
•
|
differentiate our offerings from our competitors' offerings;
|
•
|
price our products competitively;
|
•
|
anticipate our competitors' development of new products, services or technological innovations; and
|
•
|
control product quality in our manufacturing process.
|
•
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reduced demand for our products, delays in the shipment of orders, or increases in order cancellations;
|
•
|
increased risk of excess and obsolete inventories;
|
•
|
increased price pressure for our products and services; and
|
•
|
greater risk of impairment to the value, and a detriment to the liquidity, of our investment portfolio.
|
•
|
interruption to transportation flows for delivery of parts to us and finished goods to our customers;
|
•
|
changes in a specific country's or region's political, economic or other conditions;
|
•
|
trade protection measures and import or export licensing requirements;
|
•
|
negative consequences from changes in tax laws;
|
•
|
difficulty in staffing and managing widespread operations;
|
•
|
differing labor regulations;
|
•
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differing protection of intellectual property;
|
•
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unexpected changes in regulatory requirements; and
|
•
|
geopolitical uncertainty or turmoil, including terrorism and war.
|
•
|
increasing our vulnerability to downturns in our business, to competitive pressures and to adverse economic and industry conditions;
|
•
|
requiring the dedication of an increased portion of our expected cash flows from operations to service our indebtedness, thereby reducing the amount of expected cash flows available for other purposes, including capital expenditures, acquisitions, stock repurchases and dividends; and
|
•
|
limiting our flexibility in planning for, or reacting to, changes in our business and our industry.
|
Fiscal 2016
|
High
|
|
Low
|
|
Dividends
|
|||||||
First Quarter (ended January 31, 2016)
|
|
$
|
42.48
|
|
|
$
|
36.01
|
|
|
$
|
0.115
|
|
Second Quarter (ended April 30, 2016)
|
|
$
|
42.00
|
|
|
$
|
34.15
|
|
|
$
|
0.115
|
|
Third Quarter (ended July 31, 2016)
|
|
$
|
48.18
|
|
|
$
|
40.39
|
|
|
$
|
0.115
|
|
Fourth Quarter (ended October 31, 2016)
|
|
$
|
48.63
|
|
|
$
|
43.11
|
|
|
$
|
0.115
|
|
|
|
|
|
|
|
|
||||||
Fiscal 2017
|
|
High
|
|
Low
|
|
Dividends
|
||||||
First Quarter (ended January 31, 2017)
|
|
$
|
49.48
|
|
|
$
|
42.92
|
|
|
$
|
0.132
|
|
Second Quarter (ended April 30, 2017)
|
|
$
|
55.51
|
|
|
$
|
48.47
|
|
|
$
|
0.132
|
|
Third Quarter (ended July 31, 2017)
|
|
$
|
61.84
|
|
|
$
|
55.36
|
|
|
$
|
0.132
|
|
Fourth Quarter (ended October 31, 2017)
|
|
$
|
68.52
|
|
|
$
|
58.22
|
|
|
$
|
0.132
|
|
|
|
|
INDEXED RETURNS
|
|
|||||||
|
Base
|
|
Years Ending
|
|
|
||||||
|
Period
|
|
|
|
|
|
|||||
Company Name / Index
|
10/31/2012
|
10/31/2013
|
|
10/31/2014
|
|
10/31/2015
|
|
10/31/2016
|
|
10/31/2017
|
|
Agilent Technologies
|
100
|
142.52
|
|
156.67
|
|
148.68
|
|
173.38
|
|
273.31
|
|
S&P 500
|
100
|
127.18
|
|
149.14
|
|
156.89
|
|
163.97
|
|
202.72
|
|
Peer Group
|
100
|
133.00
|
|
165.85
|
|
176.13
|
|
171.91
|
|
213.11
|
|
Period
|
|
Total Number of
Shares of Common
Stock Purchased(1)
|
|
Weighted Average
Price Paid per Share of
Common Stock(2)
|
|
Total
Number of
Shares of Common
Stock Purchased as
Part of Publicly
Announced Plans or
Programs(1)
|
|
Maximum
Approximate Dollar
Value of Shares of
Common Stock that
May Yet Be
Purchased Under the
Plans or Programs
(in millions)(1)
|
||||||
|
|
|
|
|
|
|
|
|
||||||
Aug. 1, 2017 through
Aug. 31, 2017 |
|
—
|
|
|
—
|
|
|
—
|
|
|
$
|
610
|
|
|
Sep. 1, 2017 through
Sep. 30, 2017 |
|
—
|
|
|
—
|
|
|
—
|
|
|
$
|
610
|
|
|
Oct. 1, 2017 through
Oct. 31, 2017 |
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
610
|
|
Total
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
|
|
(1)
|
On May 28, 2015, we announced that our board of directors had approved a new share repurchase program (the "2015 repurchase program"). The 2015 repurchase program authorizes the purchase of up to $1.14 billion of our common stock through and including November 1, 2018. The 2015 repurchase program does not require the company to acquire a specific number of shares and may be suspended or discontinued at any time. As of October 31, 2017, all repurchased shares have been retired.
|
(2)
|
The weighted average price paid per share of common stock does not include the cost of commissions.
|
|
Years Ended October 31,
|
||||||||||||||||||
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
||||||||||
|
(in millions, except per share data)
|
||||||||||||||||||
Consolidated Statement of Operations Data:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net revenue
|
$
|
4,472
|
|
|
$
|
4,202
|
|
|
$
|
4,038
|
|
|
$
|
4,048
|
|
|
$
|
3,894
|
|
Income from continuing operations before taxes
|
$
|
803
|
|
|
$
|
544
|
|
|
$
|
480
|
|
|
$
|
229
|
|
|
$
|
293
|
|
Income from continuing operations
|
$
|
684
|
|
|
$
|
462
|
|
|
$
|
438
|
|
|
$
|
232
|
|
|
$
|
225
|
|
Income (loss) from discontinued operations, net of taxes
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(37
|
)
|
|
$
|
317
|
|
|
$
|
509
|
|
Net income
|
$
|
684
|
|
|
$
|
462
|
|
|
$
|
401
|
|
|
$
|
549
|
|
|
$
|
734
|
|
Net income per share — basic:
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from continuing operations
|
$
|
2.12
|
|
|
$
|
1.42
|
|
|
$
|
1.32
|
|
|
$
|
0.70
|
|
|
$
|
0.66
|
|
Income (loss) from discontinued operations, net of taxes
|
—
|
|
|
—
|
|
|
(0.12
|
)
|
|
0.95
|
|
|
1.49
|
|
|||||
Net income per share - basic
|
$
|
2.12
|
|
|
$
|
1.42
|
|
|
$
|
1.20
|
|
|
$
|
1.65
|
|
|
$
|
2.15
|
|
Net income per share — diluted:
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from continuing operations
|
$
|
2.10
|
|
|
$
|
1.40
|
|
|
$
|
1.31
|
|
|
$
|
0.69
|
|
|
$
|
0.65
|
|
Income (loss) from discontinued operations, net of taxes
|
—
|
|
|
—
|
|
|
(0.11
|
)
|
|
0.93
|
|
|
1.48
|
|
|||||
Net income per share - diluted
|
$
|
2.10
|
|
|
$
|
1.40
|
|
|
$
|
1.20
|
|
|
$
|
1.62
|
|
|
$
|
2.13
|
|
Weighted average shares used in computing basic net income per share
|
322
|
|
|
326
|
|
|
333
|
|
|
333
|
|
|
341
|
|
|||||
Weighted average shares used in computing diluted net income per share
|
326
|
|
|
329
|
|
|
335
|
|
|
338
|
|
|
345
|
|
|||||
Cash dividends declared per common share
|
$
|
0.528
|
|
|
$
|
0.460
|
|
|
0.400
|
|
|
$
|
0.528
|
|
|
$
|
0.460
|
|
|
October 31,
|
||||||||||||||||||
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
||||||||||
|
(in millions)
|
||||||||||||||||||
Consolidated Balance Sheet Data:
|
|
|
|
|
|
|
(1)
|
|
(1)
|
||||||||||
Cash and cash equivalents
|
$
|
2,678
|
|
|
$
|
2,289
|
|
|
$
|
2,003
|
|
|
$
|
2,218
|
|
|
$
|
2,675
|
|
Working capital
|
$
|
2,906
|
|
|
$
|
2,690
|
|
|
$
|
2,710
|
|
|
$
|
3,817
|
|
|
$
|
3,392
|
|
Total assets
|
$
|
8,426
|
|
|
$
|
7,794
|
|
|
$
|
7,479
|
|
|
$
|
10,815
|
|
|
$
|
10,608
|
|
Long-term debt
|
$
|
1,801
|
|
|
$
|
1,904
|
|
|
$
|
1,655
|
|
|
$
|
1,663
|
|
|
$
|
2,699
|
|
Stockholders' equity
|
$
|
4,831
|
|
|
$
|
4,243
|
|
|
$
|
4,167
|
|
|
$
|
5,301
|
|
|
$
|
5,297
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
(1) The above consolidated balance sheet includes Keysight which is presented as a discontinued operation until October 31, 2014.
|
|
Years Ended October 31,
|
|
2017 over 2016
% Change |
|
2016 over 2015 % Change
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
|
|||||||||
|
(in millions)
|
|
|
|
|
||||||||||
Net revenue:
|
|
|
|
|
|
|
|
|
|
||||||
Products
|
$
|
3,410
|
|
|
$
|
3,227
|
|
|
$
|
3,146
|
|
|
6%
|
|
3%
|
Services and other
|
$
|
1,062
|
|
|
$
|
975
|
|
|
$
|
892
|
|
|
9%
|
|
9%
|
Total net revenue
|
$
|
4,472
|
|
|
$
|
4,202
|
|
|
$
|
4,038
|
|
|
6%
|
|
4%
|
|
Years Ended October 31,
|
|
2017 over 2016
ppts Change |
|
2016 over 2015
ppts Change |
|||||||
|
2017
|
|
2016
|
|
2015
|
|
||||||
% of total net revenue:
|
|
|
|
|
|
|
|
|
|
|||
Products
|
76
|
%
|
|
77
|
%
|
|
78
|
%
|
|
(1) ppt
|
|
(1) ppt
|
Services and other
|
24
|
%
|
|
23
|
%
|
|
22
|
%
|
|
1 ppt
|
|
1 ppt
|
Total
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
|
|
|
|
Years Ended October 31,
|
|
2017 over 2016
% Change |
|
2016 over 2015 % Change
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
|
|||||||||
|
(in millions)
|
|
|
|
|
||||||||||
Net revenue by segment:
|
|
|
|
|
|
|
|
|
|
||||||
Life sciences and applied markets
|
$
|
2,169
|
|
|
$
|
2,073
|
|
|
$
|
2,046
|
|
|
5%
|
|
1%
|
Diagnostics and genomics
|
$
|
772
|
|
|
$
|
709
|
|
|
$
|
662
|
|
|
9%
|
|
7%
|
Agilent CrossLab
|
$
|
1,531
|
|
|
$
|
1,420
|
|
|
$
|
1,330
|
|
|
8%
|
|
7%
|
Total net revenue
|
$
|
4,472
|
|
|
$
|
4,202
|
|
|
$
|
4,038
|
|
|
6%
|
|
4%
|
|
Years Ended October 31,
|
|
2017 over 2016
Change |
|
2016 over 2015
Change |
|||||||
|
2017
|
|
2016
|
|
2015
|
|
||||||
Gross margin on products
|
56.9
|
%
|
|
54.6
|
%
|
|
52.5
|
%
|
|
2 ppts
|
|
2 ppts
|
Gross margin on services and other
|
44.1
|
%
|
|
44.5
|
%
|
|
43.8
|
%
|
|
—
|
|
1 ppt
|
Total gross margin
|
53.9
|
%
|
|
52.3
|
%
|
|
50.5
|
%
|
|
2 ppts
|
|
2 ppts
|
Operating margin
|
18.8
|
%
|
|
14.6
|
%
|
|
12.9
|
%
|
|
4 ppts
|
|
2 ppts
|
(in millions)
|
|
|
|
|
|
|
|
|
|
||||||
Research and development
|
$
|
339
|
|
|
$
|
329
|
|
|
$
|
330
|
|
|
3%
|
|
—
|
Selling, general and administrative
|
$
|
1,229
|
|
|
$
|
1,253
|
|
|
$
|
1,189
|
|
|
(2)%
|
|
5%
|
|
Years Ended October 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
|
(in millions)
|
||||||||||
Provision for income taxes
|
$
|
119
|
|
|
$
|
82
|
|
|
$
|
42
|
|
|
Years Ended October 31,
|
|
2017 over 2016
Change |
|
2016 over 2015
Change |
||||||||||
|
2017
|
|
2016
|
|
2015
|
|
|||||||||
|
(in millions)
|
|
|
|
|
||||||||||
Net revenue
|
$
|
2,169
|
|
|
$
|
2,073
|
|
|
$
|
2,046
|
|
|
5%
|
|
1%
|
|
Years Ended October 31,
|
|
2017 over 2016
Change |
|
2016 over 2015
Change |
|||||||
|
2017
|
|
2016
|
|
2015
|
|
||||||
Total gross margin
|
60.1
|
%
|
|
58.6
|
%
|
|
56.2
|
%
|
|
2 ppts
|
|
2 ppts
|
Operating margin
|
22.5
|
%
|
|
20.7
|
%
|
|
18.6
|
%
|
|
2 ppts
|
|
2 ppts
|
(in millions)
|
|
|
|
|
|
|
|
|
|
||||||
Research and development
|
$
|
206
|
|
|
$
|
195
|
|
|
$
|
192
|
|
|
6%
|
|
2%
|
Selling, general and administrative
|
$
|
610
|
|
|
$
|
590
|
|
|
$
|
576
|
|
|
3%
|
|
2%
|
Income from operations
|
$
|
487
|
|
|
$
|
429
|
|
|
$
|
380
|
|
|
13%
|
|
13%
|
|
Years Ended October 31,
|
|
2017 over 2016
Change |
|
2016 over 2015
Change |
||||||||||
|
2017
|
|
2016
|
|
2015
|
|
|||||||||
|
(in millions)
|
|
|
|
|
||||||||||
Net revenue
|
$
|
772
|
|
|
$
|
709
|
|
|
$
|
662
|
|
|
9%
|
|
7%
|
|
Years Ended October 31,
|
|
2017 over 2016
Change |
|
2016 over 2015
Change |
|||||||
|
2017
|
|
2016
|
|
2015
|
|
||||||
Total gross margin
|
55.1
|
%
|
|
54.6
|
%
|
|
54.4
|
%
|
|
1 ppt
|
|
—
|
Operating margin
|
19.3
|
%
|
|
16.0
|
%
|
|
13.3
|
%
|
|
3 ppts
|
|
3 ppts
|
(in millions)
|
|
|
|
|
|
|
|
|
|
||||||
Research and development
|
$
|
84
|
|
|
$
|
83
|
|
|
$
|
78
|
|
|
1%
|
|
6%
|
Selling, general and administrative
|
$
|
193
|
|
|
$
|
190
|
|
|
$
|
195
|
|
|
1%
|
|
(2)%
|
Income from operations
|
$
|
149
|
|
|
$
|
114
|
|
|
$
|
88
|
|
|
31%
|
|
29%
|
|
Years Ended October 31,
|
|
2017 over 2016
Change |
|
2016 over 2015
Change |
||||||||||
|
2017
|
|
2016
|
|
2015
|
|
|||||||||
|
(in millions)
|
|
|
|
|
||||||||||
Total net revenue
|
$
|
1,531
|
|
|
$
|
1,420
|
|
|
$
|
1,330
|
|
|
8%
|
|
7%
|
|
Years Ended October 31,
|
|
2017 over 2016
Change |
|
2016 over 2015
Change |
|||||||
|
2017
|
|
2016
|
|
2015
|
|
||||||
Total gross margin
|
49.5
|
%
|
|
49.4
|
%
|
|
49.6
|
%
|
|
—
|
|
—
|
Operating margin
|
22.1
|
%
|
|
22.3
|
%
|
|
22.5
|
%
|
|
—
|
|
—
|
(in millions)
|
|
|
|
|
|
|
|
|
|
||||||
Research and development
|
$
|
49
|
|
|
$
|
46
|
|
|
$
|
46
|
|
|
7%
|
|
—
|
Selling, general and administrative
|
$
|
370
|
|
|
$
|
339
|
|
|
$
|
315
|
|
|
9%
|
|
7%
|
Income from operations
|
$
|
338
|
|
|
$
|
316
|
|
|
$
|
299
|
|
|
7%
|
|
6%
|
|
Less than one
year
|
|
One to three years
|
|
Three to five years
|
|
More than five years
|
||||||||
Operating leases
|
$
|
42
|
|
|
$
|
52
|
|
|
$
|
16
|
|
|
$
|
26
|
|
Commitments to contract manufacturers and suppliers
|
384
|
|
|
4
|
|
|
—
|
|
|
—
|
|
||||
Other purchase commitments
|
40
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Retirement plans
|
22
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Transitional pension contributions to our U.S. 401(k) plan
|
$
|
8
|
|
|
$
|
15
|
|
|
$
|
12
|
|
|
$
|
—
|
|
Total
|
$
|
496
|
|
|
$
|
71
|
|
|
$
|
28
|
|
|
$
|
26
|
|
|
Less than one
year
|
|
One to three years
|
|
Three to five years
|
|
More than five years
|
||||||||
Senior notes
|
$
|
100
|
|
|
$
|
500
|
|
|
$
|
400
|
|
|
$
|
900
|
|
Credit facility
(1)
|
110
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Interest expense
|
74
|
|
|
141
|
|
|
90
|
|
|
61
|
|
||||
Total
|
$
|
284
|
|
|
$
|
641
|
|
|
$
|
490
|
|
|
$
|
961
|
|
Index to Consolidated Financial Statements
|
|
Page
|
|
|
|
Consolidated Financial Statements:
|
|
|
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
/s/ PRICEWATERHOUSECOOPERS LLP
|
|
|
|
San Jose, California
|
|
December 21, 2017
|
|
|
Years Ended October 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
|
(in millions, except per
share data)
|
||||||||||
Net revenue:
|
|
|
|
|
|
||||||
Products
|
$
|
3,410
|
|
|
$
|
3,227
|
|
|
$
|
3,146
|
|
Services and other
|
1,062
|
|
|
975
|
|
|
892
|
|
|||
Total net revenue
|
4,472
|
|
|
4,202
|
|
|
4,038
|
|
|||
Costs and expenses:
|
|
|
|
|
|
||||||
Cost of products
|
1,469
|
|
|
1,464
|
|
|
1,496
|
|
|||
Cost of services and other
|
594
|
|
|
541
|
|
|
501
|
|
|||
Total costs
|
2,063
|
|
|
2,005
|
|
|
1,997
|
|
|||
Research and development
|
339
|
|
|
329
|
|
|
330
|
|
|||
Selling, general and administrative
|
1,229
|
|
|
1,253
|
|
|
1,189
|
|
|||
Total costs and expenses
|
3,631
|
|
|
3,587
|
|
|
3,516
|
|
|||
Income from operations
|
841
|
|
|
615
|
|
|
522
|
|
|||
Interest income
|
22
|
|
|
11
|
|
|
7
|
|
|||
Interest expense
|
(79
|
)
|
|
(72
|
)
|
|
(66
|
)
|
|||
Other income (expense), net
|
19
|
|
|
(10
|
)
|
|
17
|
|
|||
Income from continuing operations before taxes
|
803
|
|
|
544
|
|
|
480
|
|
|||
Provision for income taxes
|
119
|
|
|
82
|
|
|
42
|
|
|||
Income from continuing operations
|
684
|
|
|
462
|
|
|
438
|
|
|||
Loss from discontinued operations, net of tax benefit of $0, $0, and $2
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(37
|
)
|
Net income
|
$
|
684
|
|
|
$
|
462
|
|
|
$
|
401
|
|
|
|
|
|
|
|
||||||
Net income per share - basic:
|
|
|
|
|
|
||||||
Income from continuing operations
|
$
|
2.12
|
|
|
$
|
1.42
|
|
|
$
|
1.32
|
|
Loss from discontinued operations
|
—
|
|
|
—
|
|
|
(0.12
|
)
|
|||
Net income per share - basic
|
$
|
2.12
|
|
|
$
|
1.42
|
|
|
$
|
1.20
|
|
|
|
|
|
|
|
||||||
Net income per share - diluted:
|
|
|
|
|
|
||||||
Income from continuing operations
|
$
|
2.10
|
|
|
$
|
1.40
|
|
|
$
|
1.31
|
|
Loss from discontinued operations
|
—
|
|
|
—
|
|
|
(0.11
|
)
|
|||
Net income per share - diluted
|
$
|
2.10
|
|
|
$
|
1.40
|
|
|
$
|
1.20
|
|
|
|
|
|
|
|
||||||
Weighted average shares used in computing net income per share:
|
|
|
|
|
|
||||||
Basic
|
322
|
|
|
326
|
|
|
333
|
|
|||
Diluted
|
326
|
|
|
329
|
|
|
335
|
|
|||
|
|
|
|
|
|
||||||
Cash dividends declared per common share
|
$
|
0.528
|
|
|
$
|
0.460
|
|
|
$
|
0.400
|
|
|
Years Ended October 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
|
|
|
|
|
|
||||||
Net income
|
$
|
684
|
|
|
$
|
462
|
|
|
$
|
401
|
|
Other comprehensive income (loss):
|
|
|
|
|
|
||||||
Gain (loss) on derivative instruments, net of tax expense (benefit) of $0, $(4) and $3
|
—
|
|
|
(6
|
)
|
|
8
|
|
|||
Amounts reclassified into earnings related to derivative instruments, net of tax expense (benefit) of $0, $0 and $(6)
|
(1
|
)
|
|
3
|
|
|
(12
|
)
|
|||
Foreign currency translation, net of tax expense (benefit) of $3, $3 and $(24)
|
41
|
|
|
(8
|
)
|
|
(336
|
)
|
|||
Net defined benefit pension cost and post retirement plan costs:
|
|
|
|
|
|
||||||
Change in actuarial net loss, net of tax expense (benefit) of $52, $(42), and $(17)
|
123
|
|
|
(86
|
)
|
|
(38
|
)
|
|||
Change in net prior service benefit, net of tax benefit of $(3), $(8), and $(6)
|
(6
|
)
|
|
(15
|
)
|
|
(11
|
)
|
|||
Other comprehensive income (loss)
|
157
|
|
|
(112
|
)
|
|
(389
|
)
|
|||
Total comprehensive income
|
$
|
841
|
|
|
$
|
350
|
|
|
$
|
12
|
|
|
October 31,
|
||||||
|
2017
|
|
2016
|
||||
|
(in millions, except
par value and
share data)
|
||||||
ASSETS
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
2,678
|
|
|
$
|
2,289
|
|
Accounts receivable, net
|
724
|
|
|
631
|
|
||
Inventory
|
575
|
|
|
533
|
|
||
Other current assets
|
192
|
|
|
182
|
|
||
Total current assets
|
4,169
|
|
|
3,635
|
|
||
Property, plant and equipment, net
|
757
|
|
|
639
|
|
||
Goodwill
|
2,607
|
|
|
2,517
|
|
||
Other intangible assets, net
|
361
|
|
|
416
|
|
||
Long-term investments
|
138
|
|
|
135
|
|
||
Other assets
|
394
|
|
|
452
|
|
||
Total assets
|
$
|
8,426
|
|
|
$
|
7,794
|
|
LIABILITIES AND EQUITY
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Accounts payable
|
$
|
305
|
|
|
$
|
257
|
|
Employee compensation and benefits
|
276
|
|
|
235
|
|
||
Deferred revenue
|
291
|
|
|
269
|
|
||
Short-term debt
|
210
|
|
|
—
|
|
||
Other accrued liabilities
|
181
|
|
|
184
|
|
||
Total current liabilities
|
1,263
|
|
|
945
|
|
||
Long-term debt
|
1,801
|
|
|
1,904
|
|
||
Retirement and post-retirement benefits
|
234
|
|
|
360
|
|
||
Other long-term liabilities
|
293
|
|
|
339
|
|
||
Total liabilities
|
3,591
|
|
|
3,548
|
|
||
Commitments and contingencies (Note 15)
|
|
|
|
|
|
||
Total equity:
|
|
|
|
||||
Stockholders' equity:
|
|
|
|
||||
Preferred stock; $0.01 par value; 125 million shares authorized; none issued and outstanding
|
—
|
|
|
—
|
|
||
Common stock; $0.01 par value; 2 billion shares authorized; 322 million shares at October 31, 2017 and 614 million shares at October 31, 2016 issued
|
3
|
|
|
6
|
|
||
Treasury stock at cost; zero shares at October 31, 2017 and 290 million shares at October 31, 2016
|
—
|
|
|
(10,508
|
)
|
||
Additional paid-in-capital
|
5,300
|
|
|
9,159
|
|
||
Retained earnings (accumulated deficit)
|
(126
|
)
|
|
6,089
|
|
||
Accumulated other comprehensive loss
|
(346
|
)
|
|
(503
|
)
|
||
Total stockholders' equity
|
4,831
|
|
|
4,243
|
|
||
Non-controlling interest
|
4
|
|
|
3
|
|
||
Total equity
|
4,835
|
|
|
4,246
|
|
||
Total liabilities and equity
|
$
|
8,426
|
|
|
$
|
7,794
|
|
|
Years Ended October 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
|
(in millions)
|
||||||||||
Cash flows from operating activities:
|
|
|
|
|
|
||||||
Net income
|
$
|
684
|
|
|
$
|
462
|
|
|
$
|
401
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
||||||
Depreciation and amortization
|
212
|
|
|
246
|
|
|
253
|
|
|||
Share-based compensation
|
60
|
|
|
58
|
|
|
54
|
|
|||
Deferred taxes
|
102
|
|
|
3
|
|
|
70
|
|
|||
Excess and obsolete inventory related charges
|
24
|
|
|
20
|
|
|
30
|
|
|||
Asset impairment charges
|
—
|
|
|
4
|
|
|
3
|
|
|||
Impairment of equity method investment and loans
|
—
|
|
|
25
|
|
|
—
|
|
|||
Other
|
7
|
|
|
15
|
|
|
16
|
|
|||
Changes in assets and liabilities:
|
|
|
|
|
|
||||||
Accounts receivable, net
|
(81
|
)
|
|
(33
|
)
|
|
(24
|
)
|
|||
Inventory
|
(61
|
)
|
|
(7
|
)
|
|
(24
|
)
|
|||
Accounts payable
|
2
|
|
|
(15
|
)
|
|
(26
|
)
|
|||
Employee compensation and benefits
|
38
|
|
|
15
|
|
|
8
|
|
|||
Interest rate swap payments
|
—
|
|
|
(10
|
)
|
|
—
|
|
|||
Other assets and liabilities
|
(98
|
)
|
|
10
|
|
|
(249
|
)
|
|||
Net cash provided by operating activities
|
889
|
|
|
793
|
|
|
512
|
|
|||
Cash flows from investing activities:
|
|
|
|
|
|
||||||
Investments in property, plant and equipment
|
(176
|
)
|
|
(139
|
)
|
|
(98
|
)
|
|||
Proceeds from the sale of property, plant and equipment
|
—
|
|
|
—
|
|
|
12
|
|
|||
Proceeds from the sale of investment securities
|
—
|
|
|
1
|
|
|
—
|
|
|||
Proceeds from divestitures
|
2
|
|
|
—
|
|
|
3
|
|
|||
Payment to acquire cost method investment
|
(1
|
)
|
|
(80
|
)
|
|
—
|
|
|||
Payment to acquire equity method investment
|
—
|
|
|
—
|
|
|
(1
|
)
|
|||
Payment in exchange for convertible note
|
(1
|
)
|
|
(1
|
)
|
|
(2
|
)
|
|||
Loan to equity method investment
|
—
|
|
|
(3
|
)
|
|
—
|
|
|||
Change in restricted cash, cash equivalents and investments, net
|
(1
|
)
|
|
245
|
|
|
(240
|
)
|
|||
Acquisitions of businesses and intangible assets, net of cash acquired
|
(128
|
)
|
|
(261
|
)
|
|
(74
|
)
|
|||
Net cash used in investing activities
|
(305
|
)
|
|
(238
|
)
|
|
(400
|
)
|
|||
Cash flows from financing activities:
|
|
|
|
|
|
||||||
Issuance of common stock under employee stock plans
|
66
|
|
|
62
|
|
|
58
|
|
|||
Payment of taxes related to net share settlement of equity awards
|
(14
|
)
|
|
(6
|
)
|
|
(13
|
)
|
|||
Treasury stock repurchases
|
(194
|
)
|
|
(434
|
)
|
|
(267
|
)
|
|||
Payment of dividends
|
(170
|
)
|
|
(150
|
)
|
|
(133
|
)
|
|||
Issuance of senior notes
|
—
|
|
|
299
|
|
|
—
|
|
|||
Debt issuance costs
|
—
|
|
|
(2
|
)
|
|
—
|
|
|||
Proceeds from debts and credit facility
|
400
|
|
|
255
|
|
|
—
|
|
|||
Repayment of debts and credit facility
|
(290
|
)
|
|
(292
|
)
|
|
—
|
|
|||
Net transfer of cash and cash equivalents to Keysight
|
—
|
|
|
—
|
|
|
(734
|
)
|
|||
Net cash used in financing activities
|
(202
|
)
|
|
(268
|
)
|
|
(1,089
|
)
|
|||
Effect of exchange rate movements
|
7
|
|
|
(1
|
)
|
|
(48
|
)
|
|||
Net increase (decrease) in cash and cash equivalents
|
389
|
|
|
286
|
|
|
(1,025
|
)
|
|||
Change in cash and cash equivalents within current assets of discontinued operations
|
—
|
|
|
—
|
|
|
810
|
|
|||
Cash and cash equivalents at beginning of year
|
2,289
|
|
|
2,003
|
|
|
2,218
|
|
|||
Cash and cash equivalents at end of year
|
$
|
2,678
|
|
|
$
|
2,289
|
|
|
$
|
2,003
|
|
|
|
|
|
|
|
||||||
Supplemental cash flow information:
|
|
|
|
|
|
||||||
Income tax payments, net
|
$
|
63
|
|
|
$
|
67
|
|
|
$
|
129
|
|
Interest payments
|
$
|
82
|
|
|
$
|
73
|
|
|
$
|
71
|
|
|
Common Stock
|
|
Treasury Stock
|
|
|
|
Accumulated
Other
Comprehensive
Income/(Loss)
|
|
|
|
|
|
|
||||||||||||||||||||||||
|
Number
of
Shares
|
|
Par
Value
|
|
Additional
Paid-in
Capital
|
|
Number
of
Shares
|
|
Treasury
Stock at
Cost
|
|
Retained
Earnings
(Accumulated Deficit)
|
|
Total Stockholders' Equity
|
|
Non-
Controlling
Interest
|
|
Total
Equity
|
||||||||||||||||||||
|
(in millions, except number of shares in thousands)
|
||||||||||||||||||||||||||||||||||||
Balance as of October 31, 2014
|
607,890
|
|
|
$
|
6
|
|
|
$
|
8,967
|
|
|
(272,924
|
)
|
|
$
|
(9,807
|
)
|
|
$
|
6,469
|
|
|
$
|
(334
|
)
|
|
$
|
5,301
|
|
|
$
|
3
|
|
|
$
|
5,304
|
|
Components of comprehensive income, net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
401
|
|
|
—
|
|
|
401
|
|
|
—
|
|
|
401
|
|
||||||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(389
|
)
|
|
(389
|
)
|
|
—
|
|
|
(389
|
)
|
||||||||
Total comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12
|
|
|
|
|
12
|
|
|||||||||
Cash dividends declared ($0.40 per common share)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(133
|
)
|
|
—
|
|
|
(133
|
)
|
|
—
|
|
|
(133
|
)
|
||||||||
Distribution of Keysight
|
—
|
|
|
—
|
|
|
(28
|
)
|
|
—
|
|
|
—
|
|
|
(1,156
|
)
|
|
332
|
|
|
(852
|
)
|
|
—
|
|
|
(852
|
)
|
||||||||
Share-based awards issued
|
2,964
|
|
|
—
|
|
|
44
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
44
|
|
|
—
|
|
|
44
|
|
||||||||
Tax benefits from share-based awards issued
|
—
|
|
|
—
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|
—
|
|
|
8
|
|
||||||||
Repurchase of common stock
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,471
|
)
|
|
(267
|
)
|
|
—
|
|
|
—
|
|
|
(267
|
)
|
|
—
|
|
|
(267
|
)
|
||||||||
Share-based compensation
|
—
|
|
|
—
|
|
|
54
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
54
|
|
|
—
|
|
|
54
|
|
||||||||
Balance as of October 31, 2015
|
610,854
|
|
|
$
|
6
|
|
|
$
|
9,045
|
|
|
(279,395
|
)
|
|
$
|
(10,074
|
)
|
|
$
|
5,581
|
|
|
$
|
(391
|
)
|
|
$
|
4,167
|
|
|
$
|
3
|
|
|
$
|
4,170
|
|
Adjustment due to adoption of ASU 2016-09
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
196
|
|
|
—
|
|
|
196
|
|
|
—
|
|
|
196
|
|
||||||||
Components of comprehensive income, net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
462
|
|
|
—
|
|
|
462
|
|
|
—
|
|
|
462
|
|
||||||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(112
|
)
|
|
(112
|
)
|
|
—
|
|
|
(112
|
)
|
||||||||
Total comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
350
|
|
|
|
|
350
|
|
|||||||||
Cash dividends declared ($0.46 per common share)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(150
|
)
|
|
—
|
|
|
(150
|
)
|
|
—
|
|
|
(150
|
)
|
||||||||
Share-based awards issued
|
2,682
|
|
|
—
|
|
|
56
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
56
|
|
|
—
|
|
|
56
|
|
||||||||
Repurchase of common stock
|
—
|
|
|
—
|
|
|
—
|
|
|
(10,680
|
)
|
|
(434
|
)
|
|
—
|
|
|
—
|
|
|
(434
|
)
|
|
—
|
|
|
(434
|
)
|
||||||||
Share-based compensation
|
—
|
|
|
—
|
|
|
58
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
58
|
|
|
—
|
|
|
58
|
|
||||||||
Balance as of October 31, 2016
|
613,536
|
|
|
$
|
6
|
|
|
$
|
9,159
|
|
|
(290,075
|
)
|
|
$
|
(10,508
|
)
|
|
$
|
6,089
|
|
|
$
|
(503
|
)
|
|
$
|
4,243
|
|
|
$
|
3
|
|
|
$
|
4,246
|
|
Components of comprehensive income, net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
684
|
|
|
—
|
|
|
684
|
|
|
—
|
|
|
684
|
|
||||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
157
|
|
|
157
|
|
|
—
|
|
|
157
|
|
||||||||
Total comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
841
|
|
|
|
|
841
|
|
|||||||||
Non-controlling interest
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
|
|
1
|
|
||||||||||||||||
Cash dividends declared ($0.528 per common share)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(170
|
)
|
|
—
|
|
|
(170
|
)
|
|
—
|
|
|
(170
|
)
|
||||||||
Share-based awards issued
|
2,621
|
|
|
—
|
|
|
51
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
51
|
|
|
—
|
|
|
51
|
|
||||||||
Repurchase of common stock
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,107
|
)
|
|
(194
|
)
|
|
—
|
|
|
—
|
|
|
(194
|
)
|
|
—
|
|
|
(194
|
)
|
||||||||
Retirement of treasury stock
|
(294,182
|
)
|
|
(3
|
)
|
|
(3,970
|
)
|
|
294,182
|
|
|
10,702
|
|
|
(6,729
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Share-based compensation
|
—
|
|
|
—
|
|
|
60
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
60
|
|
|
—
|
|
|
60
|
|
||||||||
Balance as of October 31, 2017
|
321,975
|
|
|
$
|
3
|
|
|
$
|
5,300
|
|
|
—
|
|
|
$
|
—
|
|
|
$
|
(126
|
)
|
|
$
|
(346
|
)
|
|
$
|
4,831
|
|
|
$
|
4
|
|
|
$
|
4,835
|
|
|
Year Ended October 31,
|
||
|
2015
|
||
|
(in millions)
|
||
Net revenue
|
$
|
—
|
|
Costs and expenses
|
39
|
|
|
Operating loss
|
(39
|
)
|
|
Other income (expense), net
|
—
|
|
|
Loss from discontinued operations before tax
|
(39
|
)
|
|
Benefit for income taxes
|
(2
|
)
|
|
Net loss from discontinued operations
|
$
|
(37
|
)
|
|
Years Ended October 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
|
(in millions)
|
||||||||||
Cost of products and services
|
$
|
15
|
|
|
$
|
14
|
|
|
$
|
11
|
|
Research and development
|
6
|
|
|
6
|
|
|
5
|
|
|||
Selling, general and administrative
|
40
|
|
|
40
|
|
|
39
|
|
|||
Total share-based compensation expense
|
$
|
61
|
|
|
$
|
60
|
|
|
$
|
55
|
|
|
Years Ended October 31,
|
||||
|
2017
|
|
2016
|
|
2015
|
Stock Option Plans:
|
|
|
|
|
|
Weighted average risk-free interest rate
|
—
|
|
—
|
|
1.75%
|
Dividend yield
|
—
|
|
—
|
|
1%
|
Weighted average volatility
|
—
|
|
—
|
|
28%
|
Expected life
|
—
|
|
—
|
|
5.5 years
|
LTPP:
|
|
|
|
|
|
Volatility of Agilent shares
|
23%
|
|
24%
|
|
25%
|
Volatility of selected peer-company shares
|
15%-63%
|
|
14%-50%
|
|
12%-57%
|
Price-wise correlation with selected peers
|
36%
|
|
35%
|
|
37%
|
|
|
|
|
|
|
Post-vest restriction discount for all executive awards
|
5.3%
|
|
5.5%
|
|
—
|
|
Options
Outstanding
|
|
Weighted
Average
Exercise Price
|
|||
|
(in thousands)
|
|
|
|||
Outstanding at October 31, 2016
|
4,106
|
|
|
$
|
33
|
|
Granted
|
—
|
|
|
$
|
—
|
|
Exercised
|
(1,343
|
)
|
|
$
|
30
|
|
Cancelled/Forfeited/Expired
|
(2
|
)
|
|
$
|
41
|
|
Outstanding at October 31, 2017
|
2,761
|
|
|
$
|
34
|
|
|
Options
Cancelled
|
|
Weighted
Average
Exercise Price
|
|||
|
(in thousands)
|
|
|
|||
Forfeited
|
2
|
|
|
$
|
41
|
|
Expired
|
—
|
|
|
$
|
—
|
|
Total options cancelled during 2017
|
2
|
|
|
$
|
41
|
|
|
Options Outstanding
|
|
Options Exercisable
|
||||||||||||||||||||||
Range of
Exercise Prices
|
Number
Outstanding
|
|
Weighted
Average
Remaining
Contractual
Life
|
|
Weighted
Average
Exercise
Price
|
|
Aggregate
Intrinsic
Value
|
|
Number
Exercisable
|
|
Weighted
Average
Remaining
Contractual
Life
|
|
Weighted
Average
Exercise
Price
|
|
Aggregate
Intrinsic
Value
|
||||||||||
|
(in thousands)
|
|
(in years)
|
|
|
|
(in thousands)
|
|
(in thousands)
|
|
(in years)
|
|
|
|
(in thousands)
|
||||||||||
$0 - 25
|
170
|
|
|
1.6
|
|
$
|
18
|
|
|
$
|
8,561
|
|
|
170
|
|
|
1.6
|
|
$
|
18
|
|
|
$
|
8,561
|
|
$25.01 - 30
|
957
|
|
|
4.3
|
|
$
|
26
|
|
|
39,804
|
|
|
957
|
|
|
4.3
|
|
$
|
26
|
|
|
39,804
|
|
||
$30.01 - 40
|
528
|
|
|
6.1
|
|
$
|
39
|
|
|
15,258
|
|
|
296
|
|
|
6.1
|
|
$
|
39
|
|
|
8,566
|
|
||
$40.01 - over
|
1,106
|
|
|
7.0
|
|
$
|
41
|
|
|
30,035
|
|
|
493
|
|
|
7.0
|
|
$
|
41
|
|
|
13,396
|
|
||
|
2,761
|
|
|
5.6
|
|
$
|
34
|
|
|
$
|
93,658
|
|
|
1,916
|
|
|
5.0
|
|
$
|
31
|
|
|
$
|
70,327
|
|
|
Aggregate
Intrinsic Value
|
|
Weighted
Average
Exercise
Price
|
|
Per Share Value Using
Black-Scholes
Model
|
||||||
|
(in thousands)
|
|
|
|
|
||||||
Options exercised in fiscal 2015
|
$
|
33,258
|
|
|
$
|
24
|
|
|
|
|
|
Black-Scholes per share value of options granted during fiscal 2015
|
|
|
|
|
|
|
$
|
11
|
|
||
Options exercised in fiscal 2016
|
$
|
26,913
|
|
|
$
|
25
|
|
|
|
|
|
Options exercised in fiscal 2017
|
$
|
36,175
|
|
|
$
|
30
|
|
|
|
|
|
Shares
|
|
Weighted
Average
Grant Price
|
|||
|
(in thousands)
|
|
|
|||
Non-vested at October 31, 2016
|
3,062
|
|
|
$
|
40
|
|
Granted
|
1,405
|
|
|
$
|
47
|
|
Vested
|
(1,068
|
)
|
|
$
|
39
|
|
Forfeited
|
(84
|
)
|
|
$
|
42
|
|
Change in LTPP shares in the year due to not meeting performance conditions
|
(13
|
)
|
|
$
|
—
|
|
Non-vested at October 31, 2017
|
3,302
|
|
|
$
|
43
|
|
|
Years Ended October 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
|
(in millions)
|
||||||||||
U.S. operations
|
$
|
116
|
|
|
$
|
27
|
|
|
$
|
77
|
|
Non-U.S. operations
|
687
|
|
|
517
|
|
|
403
|
|
|||
Total income from continuing operations before taxes
|
$
|
803
|
|
|
$
|
544
|
|
|
$
|
480
|
|
|
Years Ended October 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
|
(in millions)
|
||||||||||
U.S. federal taxes:
|
|
|
|
|
|
||||||
Current
|
$
|
15
|
|
|
$
|
(1
|
)
|
|
$
|
(91
|
)
|
Deferred
|
110
|
|
|
19
|
|
|
97
|
|
|||
Non-U.S. taxes:
|
|
|
|
|
|
||||||
Current
|
1
|
|
|
77
|
|
|
62
|
|
|||
Deferred
|
(7
|
)
|
|
(14
|
)
|
|
(27
|
)
|
|||
State taxes, net of federal benefit:
|
|
|
|
|
|
||||||
Current
|
1
|
|
|
3
|
|
|
1
|
|
|||
Deferred
|
(1
|
)
|
|
(2
|
)
|
|
—
|
|
|||
Total provision
|
$
|
119
|
|
|
$
|
82
|
|
|
$
|
42
|
|
|
October 31,
|
||||||||||||||
|
2017
|
|
2016
|
||||||||||||
|
Deferred
Tax Assets
|
|
Deferred Tax
Liabilities
|
|
Deferred
Tax Assets
|
|
Deferred Tax
Liabilities
|
||||||||
|
(in millions)
|
||||||||||||||
Inventory
|
$
|
16
|
|
|
$
|
—
|
|
|
$
|
13
|
|
|
$
|
—
|
|
Intangibles
|
—
|
|
|
93
|
|
|
—
|
|
|
92
|
|
||||
Property, plant and equipment
|
12
|
|
|
—
|
|
|
16
|
|
|
—
|
|
||||
Warranty reserves
|
12
|
|
|
—
|
|
|
14
|
|
|
—
|
|
||||
Pension benefits and retiree medical benefits
|
70
|
|
|
—
|
|
|
136
|
|
|
—
|
|
||||
Employee benefits, other than retirement
|
28
|
|
|
—
|
|
|
28
|
|
|
—
|
|
||||
Net operating loss, capital loss, and credit carryforwards
|
328
|
|
|
—
|
|
|
293
|
|
|
—
|
|
||||
Unremitted earnings of foreign subsidiaries
|
—
|
|
|
163
|
|
|
—
|
|
|
53
|
|
||||
Share-based compensation
|
45
|
|
|
—
|
|
|
41
|
|
|
—
|
|
||||
Deferred revenue
|
45
|
|
|
—
|
|
|
42
|
|
|
—
|
|
||||
Other
|
1
|
|
|
—
|
|
|
12
|
|
|
—
|
|
||||
Subtotal
|
557
|
|
|
256
|
|
|
595
|
|
|
145
|
|
||||
Tax valuation allowance
|
(138
|
)
|
|
—
|
|
|
(129
|
)
|
|
—
|
|
||||
Total deferred tax assets or deferred tax liabilities
|
$
|
419
|
|
|
$
|
256
|
|
|
$
|
466
|
|
|
$
|
145
|
|
|
October 31,
|
||||||
|
2017
|
|
2016
|
||||
|
(in millions)
|
||||||
Long-term deferred tax assets (included within other assets)
|
$
|
240
|
|
|
$
|
386
|
|
Long-term deferred tax liabilities (included within other long-term liabilities)
|
(77
|
)
|
|
(65
|
)
|
||
Total
|
$
|
163
|
|
|
$
|
321
|
|
|
Years Ended October 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
|
(in millions)
|
||||||||||
Profit before tax times statutory rate
|
$
|
281
|
|
|
$
|
190
|
|
|
$
|
167
|
|
State income taxes, net of federal benefit
|
2
|
|
|
2
|
|
|
(8
|
)
|
|||
Non-U.S. income taxed at different rates
|
(43
|
)
|
|
(68
|
)
|
|
(72
|
)
|
|||
Change in unrecognized tax benefits
|
(110
|
)
|
|
(27
|
)
|
|
(116
|
)
|
|||
Repatriation of foreign earnings
|
—
|
|
|
—
|
|
|
68
|
|
|||
Valuation allowances
|
1
|
|
|
18
|
|
|
(2
|
)
|
|||
Adjustments to earnings of foreign subsidiaries
|
—
|
|
|
(11
|
)
|
|
—
|
|
|||
Other, net
|
(12
|
)
|
|
(22
|
)
|
|
5
|
|
|||
Provision for income taxes
|
$
|
119
|
|
|
$
|
82
|
|
|
$
|
42
|
|
Effective tax rate
|
14.8
|
%
|
|
15.1
|
%
|
|
8.7
|
%
|
|
October 31,
|
||||||
|
2017
|
|
2016
|
||||
|
(in millions)
|
||||||
Current income tax assets (included within other current assets)
|
$
|
77
|
|
|
$
|
83
|
|
Long-term income tax assets (included within other assets)
|
18
|
|
|
19
|
|
||
Current income tax liabilities (included within other accrued liabilities)
|
(55
|
)
|
|
(49
|
)
|
||
Long-term income tax liabilities (included within other long-term liabilities)
|
(131
|
)
|
|
(190
|
)
|
||
Total
|
$
|
(91
|
)
|
|
$
|
(137
|
)
|
|
2017
|
|
2016
|
|
2015
|
||||||
|
(in millions)
|
||||||||||
Balance, beginning of year
|
$
|
293
|
|
|
$
|
289
|
|
|
$
|
417
|
|
Additions for tax positions related to the current year
|
32
|
|
|
31
|
|
|
33
|
|
|||
Additions for tax positions from prior years
|
1
|
|
|
1
|
|
|
3
|
|
|||
Reductions for tax positions from prior years
|
(3
|
)
|
|
(27
|
)
|
|
(156
|
)
|
|||
Settlements with taxing authorities
|
(52
|
)
|
|
—
|
|
|
(4
|
)
|
|||
Statute of limitations expirations
|
(47
|
)
|
|
(1
|
)
|
|
(4
|
)
|
|||
Balance, end of year
|
$
|
224
|
|
|
$
|
293
|
|
|
$
|
289
|
|
|
Years Ended October 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
|
(in millions)
|
||||||||||
Numerator:
|
|
|
|
|
|
||||||
Income from continuing operations
|
$
|
684
|
|
|
$
|
462
|
|
|
$
|
438
|
|
Loss from discontinued operations
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(37
|
)
|
Net income
|
684
|
|
|
462
|
|
|
401
|
|
|||
Denominators:
|
|
|
|
|
|
||||||
Basic weighted average shares
|
322
|
|
|
326
|
|
|
333
|
|
|||
Potential common shares — stock options and other employee stock plans
|
4
|
|
|
3
|
|
|
2
|
|
|||
Diluted weighted average shares
|
326
|
|
|
329
|
|
|
335
|
|
|
October 31,
|
||||||
|
2017
|
|
2016
|
||||
|
(in millions)
|
||||||
Finished goods
|
$
|
363
|
|
|
$
|
339
|
|
Purchased parts and fabricated assemblies
|
212
|
|
|
194
|
|
||
Inventory
|
$
|
575
|
|
|
$
|
533
|
|
|
October 31,
|
||||||
|
2017
|
|
2016
|
||||
|
(in millions)
|
||||||
Land
|
$
|
56
|
|
|
$
|
53
|
|
Buildings and leasehold improvements
|
886
|
|
|
757
|
|
||
Machinery and equipment
|
470
|
|
|
420
|
|
||
Software
|
188
|
|
|
176
|
|
||
Total property, plant and equipment
|
1,600
|
|
|
1,406
|
|
||
Accumulated depreciation and amortization
|
(843
|
)
|
|
(767
|
)
|
||
Property, plant and equipment, net
|
$
|
757
|
|
|
$
|
639
|
|
|
Life Sciences and Applied Markets
|
|
Diagnostics and Genomics
|
|
Agilent CrossLab
|
|
Total
|
||||||||
|
(in millions)
|
||||||||||||||
Goodwill as of October 31, 2015
|
$
|
650
|
|
|
$
|
1,234
|
|
|
$
|
482
|
|
|
$
|
2,366
|
|
Foreign currency translation impact
|
3
|
|
|
(11
|
)
|
|
3
|
|
|
(5
|
)
|
||||
Goodwill arising from acquisitions
|
137
|
|
|
—
|
|
|
19
|
|
|
156
|
|
||||
Goodwill as of October 31, 2016
|
$
|
790
|
|
|
$
|
1,223
|
|
|
$
|
504
|
|
|
$
|
2,517
|
|
Foreign currency translation impact
|
2
|
|
|
10
|
|
|
—
|
|
|
12
|
|
||||
Goodwill arising from acquisitions
|
26
|
|
|
52
|
|
|
—
|
|
|
78
|
|
||||
Goodwill as of October 31, 2017
|
$
|
818
|
|
|
$
|
1,285
|
|
|
$
|
504
|
|
|
$
|
2,607
|
|
|
|
|
|
|
|
|
|
|
Other Intangible Assets
(1)
|
||||||||||
|
Gross
Carrying
Amount
|
|
Accumulated
Amortization
and Impairments
|
|
Net Book
Value
|
||||||
|
(in millions)
|
||||||||||
As of October 31, 2016:
|
|
|
|
|
|
||||||
Purchased technology
|
$
|
823
|
|
|
$
|
572
|
|
|
$
|
251
|
|
Backlog
|
1
|
|
|
1
|
|
|
—
|
|
|||
Trademark/Tradename
|
149
|
|
|
61
|
|
|
88
|
|
|||
Customer relationships
|
263
|
|
|
211
|
|
|
52
|
|
|||
Total amortizable intangible assets
|
$
|
1,236
|
|
|
$
|
845
|
|
|
$
|
391
|
|
In-Process R&D
|
17
|
|
|
—
|
|
|
17
|
|
|||
Total
|
$
|
1,253
|
|
|
$
|
845
|
|
|
$
|
408
|
|
As of October 31, 2017:
|
|
|
|
|
|
||||||
Purchased technology
|
$
|
855
|
|
|
$
|
646
|
|
|
$
|
209
|
|
Trademark/Tradename
|
149
|
|
|
73
|
|
|
76
|
|
|||
Customer relationships
|
151
|
|
|
112
|
|
|
39
|
|
|||
Total amortizable intangible assets
|
$
|
1,155
|
|
|
$
|
831
|
|
|
$
|
324
|
|
In-Process R&D
|
24
|
|
|
—
|
|
|
24
|
|
|||
Total
|
$
|
1,179
|
|
|
$
|
831
|
|
|
$
|
348
|
|
|
|
|
|
|
|
|
October 31,
|
||||||
|
2017
|
|
2016
|
||||
|
(in millions)
|
||||||
Long-Term
|
|
|
|
||||
Cost method investments
|
$
|
106
|
|
|
$
|
104
|
|
Trading securities
|
32
|
|
|
31
|
|
||
Total
|
$
|
138
|
|
|
$
|
135
|
|
|
Years Ended October 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
|
(in millions)
|
||||||||||
Equity method investments - share of losses
|
$
|
—
|
|
|
$
|
(10
|
)
|
|
$
|
(9
|
)
|
Equity method investments - other than temporary impairments
|
—
|
|
|
(18
|
)
|
|
—
|
|
|||
Total
|
$
|
—
|
|
|
$
|
(28
|
)
|
|
$
|
(9
|
)
|
|
|
|
Fair Value Measurement at
October 31, 2017 Using |
||||||||||||
|
October 31,
2017 |
|
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
||||||||
|
(in millions)
|
||||||||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Short-term
|
|
|
|
|
|
|
|
||||||||
Cash equivalents (money market funds)
|
$
|
1,659
|
|
|
$
|
1,659
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Derivative instruments (foreign exchange contracts)
|
4
|
|
|
—
|
|
|
4
|
|
|
—
|
|
||||
Long-term
|
|
|
|
|
|
|
|
||||||||
Trading securities
|
32
|
|
|
32
|
|
|
—
|
|
|
—
|
|
||||
Total assets measured at fair value
|
$
|
1,695
|
|
|
$
|
1,691
|
|
|
$
|
4
|
|
|
$
|
—
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Short-term
|
|
|
|
|
|
|
|
||||||||
Derivative instruments (foreign exchange contracts)
|
$
|
6
|
|
|
$
|
—
|
|
|
$
|
6
|
|
|
$
|
—
|
|
Long-term
|
|
|
|
|
|
|
|
||||||||
Deferred compensation liability
|
32
|
|
|
—
|
|
|
32
|
|
|
—
|
|
||||
Total liabilities measured at fair value
|
$
|
38
|
|
|
$
|
—
|
|
|
$
|
38
|
|
|
$
|
—
|
|
|
|
|
Fair Value Measurement at
October 31, 2016 Using |
||||||||||||
|
October 31,
2016 |
|
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
||||||||
|
(in millions)
|
||||||||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Short-term
|
|
|
|
|
|
|
|
||||||||
Cash equivalents (money market funds)
|
$
|
1,482
|
|
|
$
|
1,482
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Derivative instruments (foreign exchange contracts)
|
9
|
|
|
—
|
|
|
9
|
|
|
—
|
|
||||
Long-term
|
|
|
|
|
|
|
|
||||||||
Trading securities
|
31
|
|
|
31
|
|
|
—
|
|
|
—
|
|
||||
Total assets measured at fair value
|
$
|
1,522
|
|
|
$
|
1,513
|
|
|
$
|
9
|
|
|
$
|
—
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Short-term
|
|
|
|
|
|
|
|
||||||||
Derivative instruments (foreign exchange contracts)
|
$
|
8
|
|
|
$
|
—
|
|
|
$
|
8
|
|
|
$
|
—
|
|
Long-term
|
|
|
|
|
|
|
|
||||||||
Deferred compensation liability
|
31
|
|
|
—
|
|
|
31
|
|
|
—
|
|
||||
Total liabilities measured at fair value
|
$
|
39
|
|
|
$
|
—
|
|
|
$
|
39
|
|
|
$
|
—
|
|
|
Years Ended
October 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
|
(in millions)
|
||||||||||
Long-lived assets held and used
|
$
|
—
|
|
|
$
|
4
|
|
|
$
|
3
|
|
Long-lived assets held for sale
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
Derivatives Designated as
Cash Flow Hedges |
|
Derivatives
Not
Designated
as Hedging
Instruments
|
||||
|
|
Forward
Contracts USD |
|
Forward
Contracts USD |
||||
Currency
|
|
Buy/(Sell)
|
|
Buy/(Sell)
|
||||
|
|
(in millions)
|
||||||
Euro
|
|
$
|
(73
|
)
|
|
$
|
85
|
|
British Pound
|
|
(42
|
)
|
|
12
|
|
||
Canadian Dollar
|
|
(28
|
)
|
|
4
|
|
||
Australian Dollars
|
|
4
|
|
|
16
|
|
||
Malaysian Ringgit
|
|
—
|
|
|
(3
|
)
|
||
Japanese Yen
|
|
(55
|
)
|
|
5
|
|
||
Danish Krone
|
|
—
|
|
|
17
|
|
||
Korean Won
|
|
(38
|
)
|
|
—
|
|
||
Singapore Dollar
|
|
11
|
|
|
—
|
|
||
Swiss Franc
|
|
—
|
|
|
34
|
|
||
Other
|
|
—
|
|
|
(20
|
)
|
||
|
|
$
|
(221
|
)
|
|
$
|
150
|
|
Fair Values of Derivative Instruments
|
||||||||||||||||||
Asset Derivatives
|
|
Liability Derivatives
|
||||||||||||||||
|
|
Fair Value
|
|
|
|
Fair Value
|
||||||||||||
Balance Sheet Location
|
|
October 31,
2017 |
|
October 31,
2016 |
|
Balance Sheet Location
|
|
October 31,
2017 |
|
October 31,
2016 |
||||||||
(in millions)
|
||||||||||||||||||
Derivatives designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Cash flow hedges
|
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign exchange contracts
|
|
|
|
|
|
|
|
|
|
|
||||||||
Other current assets
|
|
$
|
2
|
|
|
$
|
5
|
|
|
Other accrued liabilities
|
|
$
|
2
|
|
|
$
|
3
|
|
|
|
$
|
2
|
|
|
$
|
5
|
|
|
|
|
$
|
2
|
|
|
$
|
3
|
|
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign exchange contracts
|
|
|
|
|
|
|
|
|
|
|
||||||||
Other current assets
|
|
$
|
2
|
|
|
$
|
4
|
|
|
Other accrued liabilities
|
|
$
|
4
|
|
|
$
|
5
|
|
Total derivatives
|
|
$
|
4
|
|
|
$
|
9
|
|
|
|
|
$
|
6
|
|
|
$
|
8
|
|
|
2017
|
|
2016
|
|
2015
|
||||||
|
(in millions)
|
||||||||||
Derivatives designated as hedging instruments:
|
|
|
|
|
|
||||||
Cash Flow Hedges
|
|
|
|
|
|
||||||
Loss on interest rate swaps recognized in other comprehensive income (loss)
|
$
|
—
|
|
|
$
|
(9
|
)
|
|
$
|
—
|
|
Gain (loss) recognized in accumulated other comprehensive income (loss)
|
$
|
—
|
|
|
$
|
(1
|
)
|
|
$
|
11
|
|
Gain (loss) reclassified from accumulated other comprehensive income (loss) into cost of sales
|
$
|
1
|
|
|
$
|
(3
|
)
|
|
$
|
18
|
|
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
||||||
Gain (loss) recognized in other income (expense), net within continuing operations
|
$
|
5
|
|
|
$
|
1
|
|
|
$
|
(21
|
)
|
|
Pensions
|
|
U.S. Post-Retirement Benefit Plans
|
||||||||||||||||||||||||||||||||
|
U.S. Plans
|
|
Non-U.S. Plans
|
|
|||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
2017
|
|
2016
|
|
2015
|
|
2017
|
|
2016
|
|
2015
|
|
2017
|
|
2016
|
|
2015
|
||||||||||||||||||
|
(in millions)
|
||||||||||||||||||||||||||||||||||
Net periodic benefit cost (benefit)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Service cost — benefits earned during the period
|
$
|
—
|
|
|
$
|
12
|
|
|
$
|
25
|
|
|
$
|
19
|
|
|
$
|
19
|
|
|
$
|
18
|
|
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
2
|
|
Interest cost on benefit obligation
|
15
|
|
|
16
|
|
|
14
|
|
|
12
|
|
|
16
|
|
|
23
|
|
|
3
|
|
|
4
|
|
|
4
|
|
|||||||||
Expected return on plan assets
|
(25
|
)
|
|
(25
|
)
|
|
(27
|
)
|
|
(41
|
)
|
|
(44
|
)
|
|
(42
|
)
|
|
(7
|
)
|
|
(7
|
)
|
|
(8
|
)
|
|||||||||
Amortization of net actuarial loss
|
3
|
|
|
3
|
|
|
3
|
|
|
36
|
|
|
27
|
|
|
25
|
|
|
11
|
|
|
10
|
|
|
6
|
|
|||||||||
Amortization of prior service benefit
|
—
|
|
|
(3
|
)
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9
|
)
|
|
(10
|
)
|
|
(12
|
)
|
|||||||||
Total periodic benefit cost (benefit)
|
$
|
(7
|
)
|
|
$
|
3
|
|
|
$
|
10
|
|
|
$
|
26
|
|
|
$
|
18
|
|
|
$
|
24
|
|
|
$
|
(1
|
)
|
|
$
|
(2
|
)
|
|
$
|
(8
|
)
|
Curtailments and settlements
|
$
|
—
|
|
|
$
|
(16
|
)
|
|
$
|
—
|
|
|
$
|
(32
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Other changes in plan assets and benefit obligations recognized in other comprehensive (income) loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Net actuarial (gain) loss
|
$
|
(19
|
)
|
|
$
|
22
|
|
|
$
|
44
|
|
|
$
|
(128
|
)
|
|
$
|
149
|
|
|
$
|
32
|
|
|
$
|
(9
|
)
|
|
$
|
3
|
|
|
$
|
16
|
|
Amortization of net actuarial loss
|
(3
|
)
|
|
(3
|
)
|
|
(3
|
)
|
|
(36
|
)
|
|
(27
|
)
|
|
(25
|
)
|
|
(11
|
)
|
|
(10
|
)
|
|
(6
|
)
|
|||||||||
Prior service cost (benefit)
|
—
|
|
|
15
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|
(7
|
)
|
|
—
|
|
|||||||||
Amortization of prior service benefit
|
—
|
|
|
3
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10
|
|
|
12
|
|
|||||||||
Gain due to settlement
|
—
|
|
|
—
|
|
|
—
|
|
|
32
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Foreign currency
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
(3
|
)
|
|
10
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Total recognized in other comprehensive (income) loss
|
$
|
(22
|
)
|
|
$
|
37
|
|
|
$
|
46
|
|
|
$
|
(130
|
)
|
|
$
|
119
|
|
|
$
|
17
|
|
|
$
|
(11
|
)
|
|
$
|
(4
|
)
|
|
$
|
22
|
|
Total recognized in net periodic benefit cost (benefit) and other comprehensive (income) loss
|
$
|
(29
|
)
|
|
$
|
24
|
|
|
$
|
56
|
|
|
$
|
(136
|
)
|
|
$
|
137
|
|
|
$
|
41
|
|
|
$
|
(12
|
)
|
|
$
|
(6
|
)
|
|
$
|
14
|
|
|
U.S. Defined
Benefit Plans
|
|
Non-U.S. Defined
Benefit Plans
|
|
U.S.
Post-Retirement
Benefit Plans
|
||||||||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||||||
|
(in millions)
|
||||||||||||||||||||||
Change in fair value of plan assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Fair value — beginning of year
|
$
|
341
|
|
|
$
|
347
|
|
|
$
|
774
|
|
|
$
|
778
|
|
|
$
|
88
|
|
|
$
|
91
|
|
Actual return on plan assets
|
66
|
|
|
13
|
|
|
81
|
|
|
25
|
|
|
14
|
|
|
3
|
|
||||||
Employer contributions
|
25
|
|
|
—
|
|
|
21
|
|
|
24
|
|
|
—
|
|
|
—
|
|
||||||
Participants' contributions
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
||||||
Benefits paid
|
(18
|
)
|
|
(19
|
)
|
|
(23
|
)
|
|
(27
|
)
|
|
(7
|
)
|
|
(6
|
)
|
||||||
Settlements
|
—
|
|
|
—
|
|
|
(26
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Currency impact
|
—
|
|
|
—
|
|
|
28
|
|
|
(27
|
)
|
|
—
|
|
|
—
|
|
||||||
Fair value — end of year
|
$
|
414
|
|
|
$
|
341
|
|
|
$
|
855
|
|
|
$
|
774
|
|
|
$
|
95
|
|
|
$
|
88
|
|
Change in benefit obligation:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Benefit obligation — beginning of year
|
$
|
434
|
|
|
$
|
415
|
|
|
$
|
1,002
|
|
|
$
|
900
|
|
|
$
|
103
|
|
|
$
|
112
|
|
Service cost
|
—
|
|
|
12
|
|
|
19
|
|
|
19
|
|
|
1
|
|
|
1
|
|
||||||
Interest cost
|
15
|
|
|
16
|
|
|
12
|
|
|
16
|
|
|
3
|
|
|
4
|
|
||||||
Participants' contributions
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
||||||
Plan amendment
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
(7
|
)
|
||||||
Actuarial (gain) loss
|
15
|
|
|
41
|
|
|
(43
|
)
|
|
130
|
|
|
(3
|
)
|
|
(1
|
)
|
||||||
Benefits paid
|
(19
|
)
|
|
(20
|
)
|
|
(22
|
)
|
|
(27
|
)
|
|
(7
|
)
|
|
(6
|
)
|
||||||
Curtailments
|
—
|
|
|
(30
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Settlements
|
—
|
|
|
—
|
|
|
(70
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Currency impact
|
—
|
|
|
—
|
|
|
38
|
|
|
(37
|
)
|
|
—
|
|
|
—
|
|
||||||
Benefit obligation — end of year
|
$
|
445
|
|
|
$
|
434
|
|
|
$
|
935
|
|
|
$
|
1,002
|
|
|
$
|
97
|
|
|
$
|
103
|
|
Overfunded (underfunded) status of PBO
|
$
|
(31
|
)
|
|
$
|
(93
|
)
|
|
$
|
(80
|
)
|
|
$
|
(228
|
)
|
|
$
|
(2
|
)
|
|
$
|
(15
|
)
|
Amounts recognized in the consolidated balance sheet consist of:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other assets
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
86
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Employee compensation and benefits
|
(1
|
)
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Retirement and post-retirement benefits
|
(30
|
)
|
|
(92
|
)
|
|
(166
|
)
|
|
(229
|
)
|
|
(2
|
)
|
|
(15
|
)
|
||||||
Total net asset (liability)
|
$
|
(31
|
)
|
|
$
|
(93
|
)
|
|
$
|
(80
|
)
|
|
$
|
(228
|
)
|
|
$
|
(2
|
)
|
|
$
|
(15
|
)
|
Amounts Recognized in Accumulated Other Comprehensive Income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Actuarial (gains) losses
|
$
|
65
|
|
|
$
|
93
|
|
|
$
|
243
|
|
|
$
|
375
|
|
|
$
|
20
|
|
|
$
|
41
|
|
Prior service costs (benefits)
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(28
|
)
|
|
(37
|
)
|
||||||
Total
|
$
|
65
|
|
|
$
|
93
|
|
|
$
|
242
|
|
|
$
|
375
|
|
|
$
|
(8
|
)
|
|
$
|
4
|
|
|
U.S. Defined
Benefit Plans
|
|
Non-U.S. Defined
Benefit Plans
|
|
U.S. Post-Retirement
Benefit Plans
|
||||||
|
(in millions)
|
||||||||||
Amortization of net prior service cost (benefit)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(8
|
)
|
Amortization of actuarial net loss (gain)
|
$
|
1
|
|
|
$
|
29
|
|
|
$
|
8
|
|
|
|
|
Fair Value Measurement
at October 31, 2017 Using |
|
|
||||||||||||||
|
October 31,
2017 |
|
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
|
Not Subject to Leveling
(1)
|
||||||||||
|
(in millions)
|
||||||||||||||||||
Cash and Cash Equivalents
|
$
|
4
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3
|
|
Equity
|
327
|
|
|
88
|
|
|
—
|
|
|
—
|
|
|
239
|
|
|||||
Fixed Income
|
76
|
|
|
38
|
|
|
—
|
|
|
—
|
|
|
38
|
|
|||||
Other Investments
|
7
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|||||
Total assets measured at fair value
|
$
|
414
|
|
|
$
|
127
|
|
|
$
|
—
|
|
|
$
|
7
|
|
|
$
|
280
|
|
|
|
|
Fair Value Measurement
at October 31, 2016 Using |
|
|
||||||||||||||
|
October 31,
2016 |
|
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
|
Not Subject to Leveling
(1)
|
||||||||||
|
(in millions)
|
||||||||||||||||||
Cash and Cash Equivalents
|
$
|
4
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4
|
|
Equity
|
248
|
|
|
62
|
|
|
—
|
|
|
—
|
|
|
186
|
|
|||||
Fixed Income
|
80
|
|
|
42
|
|
|
—
|
|
|
—
|
|
|
38
|
|
|||||
Other Investments
|
9
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|
—
|
|
|||||
Total assets measured at fair value
|
$
|
341
|
|
|
$
|
104
|
|
|
$
|
—
|
|
|
$
|
9
|
|
|
$
|
228
|
|
|
Years Ended
October 31.
|
||||||
|
2017
|
|
2016
|
||||
Balance, beginning of year
|
$
|
9
|
|
|
$
|
9
|
|
Realized gains/(losses)
|
(3
|
)
|
|
—
|
|
||
Unrealized gains/(losses)
|
3
|
|
|
3
|
|
||
Purchases, sales, issuances, and settlements
|
(2
|
)
|
|
(3
|
)
|
||
Transfers in (out)
|
—
|
|
|
—
|
|
||
Balance, end of year
|
$
|
7
|
|
|
$
|
9
|
|
|
|
|
Fair Value Measurement at
October 31, 2017 Using |
|
|
||||||||||||||
|
October 31,
2017 |
|
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
|
Not Subject to Leveling
(1)
|
||||||||||
|
(in millions)
|
||||||||||||||||||
Cash and Cash Equivalents
|
$
|
6
|
|
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1
|
|
Equity
|
68
|
|
|
18
|
|
|
—
|
|
|
—
|
|
|
50
|
|
|||||
Fixed Income
|
17
|
|
|
9
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|||||
Other Investments
|
4
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|||||
Total assets measured at fair value
|
$
|
95
|
|
|
$
|
32
|
|
|
$
|
—
|
|
|
$
|
4
|
|
|
$
|
59
|
|
|
|
|
Fair Value Measurement
at October 31, 2016 Using |
|
|
||||||||||||||
|
October 31,
2016 |
|
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
|
Not Subject to Leveling
(1)
|
||||||||||
|
(in millions)
|
||||||||||||||||||
Cash and Cash Equivalents
|
$
|
3
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1
|
|
Equity
|
59
|
|
|
15
|
|
|
—
|
|
|
—
|
|
|
44
|
|
|||||
Fixed Income
|
21
|
|
|
11
|
|
|
—
|
|
|
—
|
|
|
10
|
|
|||||
Other Investments
|
5
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|||||
Total assets measured at fair value
|
$
|
88
|
|
|
$
|
28
|
|
|
$
|
—
|
|
|
$
|
5
|
|
|
$
|
55
|
|
|
Years Ended
October 31,
|
||||||
|
2017
|
|
2016
|
||||
Balance, beginning of year
|
$
|
5
|
|
|
$
|
6
|
|
Realized gains/(losses)
|
(2
|
)
|
|
—
|
|
||
Unrealized gains/(losses)
|
2
|
|
|
1
|
|
||
Purchases, sales, issuances, and settlements
|
(1
|
)
|
|
(2
|
)
|
||
Transfers in (out)
|
—
|
|
|
—
|
|
||
Balance, end of year
|
$
|
4
|
|
|
$
|
5
|
|
|
|
|
Fair Value Measurement at
October 31, 2017 Using |
|
|
||||||||||||||
|
October 31,
2017 |
|
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
|
Not Subject to Leveling
(1)
|
||||||||||
|
(in millions)
|
||||||||||||||||||
Cash and Cash Equivalents
|
$
|
8
|
|
|
$
|
—
|
|
|
$
|
8
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Equity
|
539
|
|
|
326
|
|
|
28
|
|
|
—
|
|
|
185
|
|
|||||
Fixed Income
|
307
|
|
|
60
|
|
|
229
|
|
|
—
|
|
|
18
|
|
|||||
Other Investments
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|||||
Total assets measured at fair value
|
$
|
855
|
|
|
$
|
386
|
|
|
$
|
266
|
|
|
$
|
—
|
|
|
$
|
203
|
|
|
|
|
Fair Value Measurement
at October 31, 2016 Using |
|
|
||||||||||||||
|
October 31,
2016 |
|
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
|
Not Subject to Leveling
(1)
|
||||||||||
|
(in millions)
|
|
|
||||||||||||||||
Cash and Cash Equivalents
|
$
|
26
|
|
|
$
|
18
|
|
|
$
|
8
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Equity
|
422
|
|
|
239
|
|
|
23
|
|
|
—
|
|
|
160
|
|
|||||
Fixed Income
|
325
|
|
|
83
|
|
|
222
|
|
|
—
|
|
|
20
|
|
|||||
Other Investments
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|||||
Total assets measured at fair value
|
$
|
774
|
|
|
$
|
340
|
|
|
$
|
254
|
|
|
$
|
—
|
|
|
$
|
180
|
|
|
2017
|
|
2016
|
||||||||||||
|
Benefit
Obligation
|
|
|
|
Benefit
Obligation
|
|
|
||||||||
|
Fair Value of
Plan Assets
|
|
Fair Value of
Plan Assets
|
||||||||||||
|
PBO
|
|
PBO
|
|
|||||||||||
|
(in millions)
|
||||||||||||||
U.S. defined benefit plans where PBO exceeds the fair value of plan assets
|
$
|
445
|
|
|
$
|
414
|
|
|
$
|
434
|
|
|
$
|
341
|
|
U.S. defined benefit plans where fair value of plan assets exceeds PBO
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total
|
$
|
445
|
|
|
$
|
414
|
|
|
$
|
434
|
|
|
$
|
341
|
|
|
|
|
|
|
|
|
|
||||||||
Non-U.S. defined benefit plans where PBO exceeds or is equal to the fair value of plan assets
|
$
|
563
|
|
|
$
|
397
|
|
|
$
|
970
|
|
|
$
|
741
|
|
Non-U.S. defined benefit plans where fair value of plan assets exceeds PBO
|
372
|
|
|
458
|
|
|
32
|
|
|
33
|
|
||||
Total
|
$
|
935
|
|
|
$
|
855
|
|
|
$
|
1,002
|
|
|
$
|
774
|
|
|
|
|
|
|
|
|
|
||||||||
|
ABO
|
|
|
|
ABO
|
|
|
||||||||
U.S. defined benefit plans where ABO exceeds the fair value of plan assets
|
$
|
445
|
|
|
$
|
414
|
|
|
$
|
434
|
|
|
$
|
341
|
|
U.S. defined benefit plans where the fair value of plan assets exceeds ABO
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total
|
$
|
445
|
|
|
$
|
414
|
|
|
$
|
434
|
|
|
$
|
341
|
|
|
|
|
|
|
|
|
|
||||||||
Non-U.S. defined benefit plans where ABO exceeds or is equal to the fair value of plan assets
|
$
|
539
|
|
|
$
|
397
|
|
|
$
|
737
|
|
|
$
|
542
|
|
Non-U.S. defined benefit plans where fair value of plan assets exceeds ABO
|
365
|
|
|
458
|
|
|
226
|
|
|
232
|
|
||||
Total
|
$
|
904
|
|
|
$
|
855
|
|
|
$
|
963
|
|
|
$
|
774
|
|
|
U.S. Defined
Benefit Plans
|
|
Non-U.S. Defined
Benefit Plans
|
|
U.S. Post-Retirement
Benefit Plans
|
||||||
|
(in millions)
|
||||||||||
2018
|
$
|
29
|
|
|
$
|
23
|
|
|
$
|
8
|
|
2019
|
$
|
28
|
|
|
$
|
25
|
|
|
$
|
8
|
|
2020
|
$
|
31
|
|
|
$
|
26
|
|
|
$
|
8
|
|
2021
|
$
|
29
|
|
|
$
|
29
|
|
|
$
|
7
|
|
2022
|
$
|
30
|
|
|
$
|
32
|
|
|
$
|
7
|
|
2023 - 2027
|
$
|
145
|
|
|
$
|
176
|
|
|
$
|
34
|
|
|
For years ended October 31,
|
||||
|
2017
|
|
2016
|
|
2015
|
U.S. defined benefit plans:
|
|
|
|
|
|
Discount rate
|
3.75%
|
|
4.20%
|
|
4.00%
|
Average increase in compensation levels
|
n/a
|
|
3.50%
|
|
3.50%
|
Expected long-term return on assets
|
7.25%
|
|
7.50%
|
|
8.00%
|
Non-U.S. defined benefit plans:
|
|
|
|
|
|
Discount rate
|
0.22-2.66%
|
|
0.77-3.76%
|
|
1.50-4.00%
|
Average increase in compensation levels
|
2.00-4.25%
|
|
2.25-4.00%
|
|
2.50-3.25%
|
Expected long-term return on assets
|
4.00-6.25%
|
|
4.25-6.50%
|
|
4.00-6.50%
|
U.S. post-retirement benefits plans:
|
|
|
|
|
|
Discount rate
|
3.50%
|
|
4.00%
|
|
4.00%
|
Expected long-term return on assets
|
7.25%
|
|
7.50%
|
|
8.00%
|
Current medical cost trend rate
|
6.00%
|
|
7.00%
|
|
8.00%
|
Ultimate medical cost trend rate
|
3.50%
|
|
3.50%
|
|
3.50%
|
Medical cost trend rate decreases to ultimate rate in year
|
2029
|
|
2029
|
|
2028
|
|
As of the Years Ending October 31,
|
||
|
2017
|
|
2016
|
U.S. defined benefit plans:
|
|
|
|
Discount rate
|
3.75%
|
|
3.75%
|
Non-U.S. defined benefit plans:
|
|
|
|
Discount rate
|
0.67-2.52%
|
|
0.40-2.62%
|
Average increase in compensation levels
|
2.00-3.25%
|
|
2.00-4.25%
|
U.S. post-retirement benefits plans:
|
|
|
|
Discount rate
|
3.50%
|
|
3.50%
|
Current medical cost trend rate
|
6.00%
|
|
6.00%
|
Ultimate medical cost trend rate
|
3.50%
|
|
3.50%
|
Medical cost trend rate decreases to ultimate rate in year
|
2029
|
|
2029
|
|
October 31,
|
||||||
|
2017
|
|
2016
|
||||
|
(in millions)
|
||||||
Balance as of October 31, 2016 and 2015
|
$
|
35
|
|
|
$
|
31
|
|
Accruals for warranties including change in estimates
|
53
|
|
|
53
|
|
||
Settlements made during the period
|
(54
|
)
|
|
(49
|
)
|
||
Balance as of October 31, 2017 and 2016
|
$
|
34
|
|
|
$
|
35
|
|
Accruals for warranties due within one year
|
33
|
|
|
34
|
|
||
Accruals for warranties due after one year
|
1
|
|
|
1
|
|
||
Balance as of October 31, 2017 and 2016
|
$
|
34
|
|
|
$
|
35
|
|
|
October 31, 2017
|
|
October 31, 2016
|
||||||||||||||||||||
|
Amortized
Principal
|
|
Swap
|
|
Total
|
|
Amortized
Principal
|
|
Swap
|
|
Total
|
||||||||||||
|
(in millions)
|
||||||||||||||||||||||
2017 Senior Notes
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
100
|
|
|
$
|
1
|
|
|
101
|
|
|
2020 Senior Notes
|
499
|
|
|
11
|
|
|
510
|
|
|
498
|
|
|
15
|
|
|
513
|
|
||||||
2022 Senior Notes
|
398
|
|
|
—
|
|
|
398
|
|
|
398
|
|
|
—
|
|
|
398
|
|
||||||
2023 Senior Notes
|
596
|
|
|
—
|
|
|
596
|
|
|
595
|
|
|
—
|
|
|
595
|
|
||||||
2026 Senior Notes
|
297
|
|
|
—
|
|
|
297
|
|
|
297
|
|
|
—
|
|
|
297
|
|
||||||
Total
|
$
|
1,790
|
|
|
$
|
11
|
|
|
$
|
1,801
|
|
|
$
|
1,888
|
|
|
$
|
16
|
|
|
$
|
1,904
|
|
|
October 31,
|
||||||
|
2017
|
|
2016
|
||||
|
(in millions)
|
||||||
Foreign currency translation, net of tax expense of $(8) and $(5) for 2017 and 2016, respectively
|
$
|
(156
|
)
|
|
(197
|
)
|
|
Unrealized losses (including prior service benefit) on defined benefit plans, net of tax benefit of $127 and $176 for 2017 and 2016, respectively
|
(188
|
)
|
|
(305
|
)
|
||
Unrealized gains (losses) on derivative instruments, net of tax benefit of $2 and $2 for 2017 and 2016, respectively
|
(2
|
)
|
|
(1
|
)
|
||
Total accumulated other comprehensive loss
|
$
|
(346
|
)
|
|
$
|
(503
|
)
|
|
|
|
|
Net defined benefit pension cost and post retirement plan costs
|
|
|
|
|
||||||||||||
|
|
Foreign currency translation
|
|
Prior service credits
|
|
Actuarial Losses
|
|
Unrealized gains (losses) on derivatives
|
|
Total
|
||||||||||
|
|
(in millions)
|
||||||||||||||||||
As of October 31, 2015
|
|
$
|
(189
|
)
|
|
$
|
161
|
|
|
$
|
(365
|
)
|
|
$
|
2
|
|
|
$
|
(391
|
)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other comprehensive income (loss) before reclassifications
|
|
(5
|
)
|
|
6
|
|
|
(171
|
)
|
|
(10
|
)
|
|
(180
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Amounts reclassified out of accumulated other comprehensive income
|
|
—
|
|
|
(29
|
)
|
|
43
|
|
|
3
|
|
|
17
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Tax benefit
|
|
(3
|
)
|
|
8
|
|
|
42
|
|
|
4
|
|
|
51
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other comprehensive loss
|
|
(8
|
)
|
|
(15
|
)
|
|
(86
|
)
|
|
(3
|
)
|
|
(112
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
As of October 31, 2016
|
|
$
|
(197
|
)
|
|
$
|
146
|
|
|
$
|
(451
|
)
|
|
$
|
(1
|
)
|
|
$
|
(503
|
)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other comprehensive income (loss) before reclassifications
|
|
44
|
|
|
—
|
|
|
116
|
|
|
—
|
|
|
160
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Amounts reclassified out of accumulated other comprehensive income
|
|
—
|
|
|
(9
|
)
|
|
59
|
|
|
(1
|
)
|
|
49
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Tax (expense) benefit
|
|
(3
|
)
|
|
3
|
|
|
(52
|
)
|
|
—
|
|
|
(52
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other comprehensive income (loss)
|
|
41
|
|
|
(6
|
)
|
|
123
|
|
|
(1
|
)
|
|
157
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
As of October 31, 2017
|
|
$
|
(156
|
)
|
|
$
|
140
|
|
|
$
|
(328
|
)
|
|
$
|
(2
|
)
|
|
$
|
(346
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Details about accumulated other
|
|
Amounts Reclassified
|
Affected line item in
|
|||||||
comprehensive income components
|
|
from other comprehensive income
|
statement of operations
|
|||||||
|
|
2017
|
|
2016
|
|
|
||||
|
|
|
|
|
|
|
||||
Unrealized gains and (losses) on derivatives
|
|
$
|
1
|
|
|
$
|
(3
|
)
|
|
Cost of products
|
|
|
1
|
|
|
(3
|
)
|
|
Total before income tax
|
||
|
|
—
|
|
|
—
|
|
|
(Provision)/benefit for income tax
|
||
|
|
1
|
|
|
(3
|
)
|
|
Total net of income tax
|
||
Net defined benefit pension cost and post retirement plan costs:
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
||||
Actuarial net loss
|
|
(59
|
)
|
|
(43
|
)
|
|
Cost of sales and operating expenses
|
||
Prior service benefit
|
|
9
|
|
|
29
|
|
|
Cost of sales and operating expenses
|
||
|
|
(50
|
)
|
|
(14
|
)
|
|
Total before income tax
|
||
|
|
14
|
|
|
4
|
|
|
(Provision)/benefit for income tax
|
||
|
|
(36
|
)
|
|
(10
|
)
|
|
Total net of income tax
|
||
|
|
|
|
|
|
|
||||
Total reclassifications for the period
|
|
$
|
(35
|
)
|
|
$
|
(13
|
)
|
|
|
|
Life Sciences and Applied Markets
|
|
Diagnostics and Genomics
|
|
Agilent CrossLab
|
|
Total
Segments
|
||||||||
|
(in millions)
|
||||||||||||||
Year ended October 31, 2017:
|
|
|
|
|
|
|
|
||||||||
Total net revenue
|
$
|
2,169
|
|
|
$
|
772
|
|
|
$
|
1,531
|
|
|
$
|
4,472
|
|
Income from operations
|
$
|
487
|
|
|
$
|
149
|
|
|
$
|
338
|
|
|
$
|
974
|
|
Depreciation expense
|
$
|
35
|
|
|
$
|
30
|
|
|
$
|
29
|
|
|
$
|
94
|
|
Share-based compensation expense
|
$
|
30
|
|
|
$
|
10
|
|
|
$
|
21
|
|
|
$
|
61
|
|
Year ended October 31, 2016:
|
|
|
|
|
|
|
|
||||||||
Total net revenue
|
$
|
2,073
|
|
|
$
|
709
|
|
|
$
|
1,420
|
|
|
$
|
4,202
|
|
Income from operations
|
$
|
429
|
|
|
$
|
114
|
|
|
$
|
316
|
|
|
$
|
859
|
|
Depreciation expense
|
$
|
36
|
|
|
$
|
31
|
|
|
$
|
28
|
|
|
$
|
95
|
|
Share-based compensation expense
|
$
|
29
|
|
|
$
|
10
|
|
|
$
|
21
|
|
|
$
|
60
|
|
Year ended October 31, 2015:
|
|
|
|
|
|
|
|
||||||||
Total net revenue
|
$
|
2,046
|
|
|
$
|
662
|
|
|
$
|
1,330
|
|
|
$
|
4,038
|
|
Income from operations
|
$
|
380
|
|
|
$
|
88
|
|
|
$
|
299
|
|
|
$
|
767
|
|
Depreciation expense
|
$
|
27
|
|
|
$
|
37
|
|
|
$
|
34
|
|
|
$
|
98
|
|
Share-based compensation expense
|
$
|
27
|
|
|
$
|
9
|
|
|
$
|
18
|
|
|
$
|
54
|
|
|
Years Ended October 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
|
(in millions)
|
||||||||||
Total reportable segments' income from operations
|
$
|
974
|
|
|
$
|
859
|
|
|
$
|
767
|
|
Business exit and divestiture costs ( primarily our NMR business)
|
—
|
|
|
(11
|
)
|
|
(12
|
)
|
|||
Asset Impairments
|
—
|
|
|
(4
|
)
|
|
(3
|
)
|
|||
Transformational initiatives
|
(12
|
)
|
|
(38
|
)
|
|
(56
|
)
|
|||
Amortization of intangible assets related to business combinations
|
(117
|
)
|
|
(152
|
)
|
|
(156
|
)
|
|||
Acquisition and integration costs
|
(30
|
)
|
|
(41
|
)
|
|
(13
|
)
|
|||
Acceleration of share-based compensation expense related to workforce reduction
|
—
|
|
|
—
|
|
|
(2
|
)
|
|||
Pension curtailment gain
|
—
|
|
|
15
|
|
|
—
|
|
|||
Pension settlement gain
|
32
|
|
|
1
|
|
|
—
|
|
|||
Impairment of loans
|
—
|
|
|
(7
|
)
|
|
—
|
|
|||
Other
|
(6
|
)
|
|
(7
|
)
|
|
(3
|
)
|
|||
Interest Income
|
22
|
|
|
11
|
|
|
7
|
|
|||
Interest Expense
|
(79
|
)
|
|
(72
|
)
|
|
(66
|
)
|
|||
Other income (expense), net
|
19
|
|
|
(10
|
)
|
|
17
|
|
|||
Income from continuing operations before taxes, as reported
|
$
|
803
|
|
|
$
|
544
|
|
|
$
|
480
|
|
|
Life Sciences and Applied Markets
|
|
Diagnostics and Genomics
|
|
Agilent CrossLab
|
|
Total
Segments
|
||||||||
|
(in millions)
|
||||||||||||||
As of October 31, 2017:
|
|
|
|
|
|
|
|
||||||||
Assets
|
$
|
1,753
|
|
|
$
|
2,119
|
|
|
$
|
1,138
|
|
|
$
|
5,010
|
|
Capital expenditures
|
$
|
39
|
|
|
$
|
111
|
|
|
$
|
26
|
|
|
$
|
176
|
|
As of October 31, 2016:
|
|
|
|
|
|
|
|
||||||||
Assets
|
$
|
1,687
|
|
|
$
|
1,960
|
|
|
$
|
1,082
|
|
|
$
|
4,729
|
|
Capital expenditures
|
$
|
53
|
|
|
$
|
41
|
|
|
$
|
45
|
|
|
$
|
139
|
|
|
October 31,
|
||||||
|
2017
|
|
2016
|
||||
|
(in millions)
|
||||||
Total reportable segments' assets
|
$
|
5,010
|
|
|
$
|
4,729
|
|
Cash, cash equivalents
|
2,678
|
|
|
2,289
|
|
||
Prepaid expenses
|
92
|
|
|
92
|
|
||
Investments
|
138
|
|
|
135
|
|
||
Long-term and other receivables
|
105
|
|
|
92
|
|
||
Other
|
403
|
|
|
457
|
|
||
Total assets
|
$
|
8,426
|
|
|
$
|
7,794
|
|
|
Years Ended October 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
|
(in millions)
|
||||||||||
Instrumentation
|
$
|
1,946
|
|
|
$
|
1,871
|
|
|
$
|
1,827
|
|
Analytical lab services
|
991
|
|
|
910
|
|
|
843
|
|
|||
Analytical lab consumables
|
540
|
|
|
510
|
|
|
489
|
|
|||
Diagnostics and genomics solutions
|
772
|
|
|
709
|
|
|
662
|
|
|||
Informatics and other
|
223
|
|
|
202
|
|
|
217
|
|
|||
Total
|
$
|
4,472
|
|
|
$
|
4,202
|
|
|
$
|
4,038
|
|
|
United
States
|
|
China
(1)
|
|
Rest of the
World
|
|
Total
|
||||||||
|
(in millions)
|
||||||||||||||
Net revenue:
|
|
|
|
|
|
|
|
||||||||
Year ended October 31, 2017
|
$
|
1,314
|
|
|
$
|
900
|
|
|
$
|
2,258
|
|
|
$
|
4,472
|
|
Year ended October 31, 2016
|
$
|
1,251
|
|
|
$
|
839
|
|
|
$
|
2,112
|
|
|
$
|
4,202
|
|
Year ended October 31, 2015
|
$
|
1,214
|
|
|
$
|
693
|
|
|
$
|
2,131
|
|
|
$
|
4,038
|
|
1.
|
China also includes Hong Kong net revenue. Prior periods have been revised to conform with current year presentation.
|
|
United
States
|
|
Germany
|
|
Rest of the
World
|
|
Total
|
||||||||
|
(in millions)
|
||||||||||||||
Long-lived assets:
|
|
|
|
|
|
|
|
||||||||
October 31, 2017
|
$
|
556
|
|
|
$
|
118
|
|
|
$
|
358
|
|
|
$
|
1,032
|
|
October 31, 2016
|
$
|
449
|
|
|
$
|
89
|
|
|
$
|
266
|
|
|
$
|
804
|
|
|
Three Months Ended
|
||||||||||||||
|
January 31,
|
|
April 30,
|
|
July 31,
|
|
October 31,
|
||||||||
|
(in millions, except per share data)
|
||||||||||||||
2017
|
|
|
|
|
|
|
|
||||||||
Net revenue
|
$
|
1,067
|
|
|
$
|
1,102
|
|
|
$
|
1,114
|
|
|
$
|
1,189
|
|
Gross profit
|
574
|
|
|
592
|
|
|
596
|
|
|
647
|
|
||||
Income from operations
|
206
|
|
|
201
|
|
|
201
|
|
|
233
|
|
||||
Net Income
|
168
|
|
|
164
|
|
|
175
|
|
|
177
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Net income per share — Basic
|
$
|
0.52
|
|
|
$
|
0.51
|
|
|
$
|
0.55
|
|
|
$
|
0.55
|
|
Net income per share — Diluted
|
$
|
0.52
|
|
|
$
|
0.50
|
|
|
$
|
0.54
|
|
|
$
|
0.54
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average shares used in computing net income per share:
|
|
|
|
|
|
|
|
||||||||
Basic
|
322
|
|
|
321
|
|
|
321
|
|
|
322
|
|
||||
Diluted
|
326
|
|
|
325
|
|
|
326
|
|
|
326
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Cash dividends per common share
|
$
|
0.132
|
|
|
$
|
0.132
|
|
|
$
|
0.132
|
|
|
$
|
0.132
|
|
|
|
|
|
|
|
|
|
||||||||
Range of stock prices on NYSE
|
$42.92-$49.48
|
|
|
$48.47-$55.51
|
|
|
$55.36-$61.84
|
|
|
$58.22-$68.52
|
|
||||
|
|
|
|
|
|
|
|
||||||||
2016
|
|
|
|
|
|
|
|
||||||||
Net revenue
|
$
|
1,028
|
|
|
$
|
1,019
|
|
|
$
|
1,044
|
|
|
$
|
1,111
|
|
Gross profit
|
537
|
|
|
530
|
|
|
542
|
|
|
588
|
|
||||
Income from operations
|
155
|
|
|
131
|
|
|
146
|
|
|
183
|
|
||||
Net income
|
121
|
|
|
91
|
|
|
124
|
|
|
126
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Net income per share — Basic
|
$
|
0.37
|
|
|
$
|
0.28
|
|
|
$
|
0.38
|
|
|
$
|
0.39
|
|
Net income per share — Diluted
|
$
|
0.36
|
|
|
$
|
0.28
|
|
|
$
|
0.38
|
|
|
$
|
0.38
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average shares used in computing net income per share:
|
|
|
|
|
|
|
|
||||||||
Basic
|
329
|
|
|
326
|
|
|
325
|
|
|
324
|
|
||||
Diluted
|
332
|
|
|
328
|
|
|
328
|
|
|
328
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Cash dividends per common share
|
$
|
0.115
|
|
|
$
|
0.115
|
|
|
$
|
0.115
|
|
|
$
|
0.115
|
|
|
|
|
|
|
|
|
|
||||||||
Range of stock prices on NYSE
|
$36.01-$42.48
|
|
|
$34.15-$42.00
|
|
|
$40.39-$48.18
|
|
|
$43.11-$48.63
|
|
Plan Category
|
Number of Securities
to be Issued upon
Exercise of
Outstanding Options,
Warrants and Rights
|
|
Weighted-average
Exercise Price of
Outstanding
Options,
Warrants and
Rights
|
|
Number of Securities
Remaining Available for
Future Issuance under
Equity Compensation Plans
(Excluding Securities
Reflected in Column
(a))
|
||||
|
(a)
|
|
(b)
|
|
(c)
|
||||
Equity compensation plans approved by security holders (1)(2)(3)
|
6,063,545
|
|
|
$
|
34
|
|
|
35,697,020
|
|
Equity compensation plans not approved by security holders
|
—
|
|
|
—
|
|
|
—
|
|
|
Total
|
6,063,545
|
|
|
$
|
34
|
|
|
35,697,020
|
|
(1)
|
The number of securities remaining available for future issuance in column (c) includes
27,556,310
shares of common stock authorized and available for issuance under the Agilent Technologies, Inc. Employee Stock Purchase Plan ("423(b) Plan"). The number of shares authorized for issuance under the 423(b) Plan is subject to an automatic annual increase of the lesser of one percent of the outstanding common stock of Agilent or an amount determined by the Compensation Committee of our Board of Directors. Under the terms of the 423(b) Plan, in no event shall the aggregate number of shares issued under the Plan exceed 75
million
shares.
|
(2)
|
We issue securities under our equity compensation plans in forms other than options, warrants or rights. On November 19, 2008 and March 11, 2009, the Board and the stockholders, respectively, approved the Agilent Technologies, Inc. 2009 Stock Plan ("2009 Plan") to replace the company's 1999 Plan and 1999 Non-Employee Director Stock Plan for awards of stock-based incentive compensation to our employees (including officers), directors and consultants. The 2009 Plan provides for the grant of awards in the form of stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares and performance units with performance-based conditions to vesting or exercisability, and cash awards. The 2009 Plan has a term of ten years.
|
(3)
|
We issue securities under our equity compensation plans in forms which do not require a payment by the recipient to us at the time of exercise or vesting, including restricted stock, restricted stock units and performance units. Accordingly, the weighted-average exercise price in column (b) does not take these awards into account.
|
(a)
|
The following documents are filed as part of this report:
|
1.
|
Financial Statements.
|
2.
|
Financial Statement Schedule.
|
Column A
|
|
Column B
|
|
Column C
|
|
Column D
|
|
Column E
|
||||||||
Description
|
|
Balance at
Beginning of Period |
|
Additions Charged to
Expenses or Other Accounts* |
|
Deductions Credited to Expenses or Other Accounts**
|
|
Balance at
End of Period |
||||||||
|
|
(in millions)
|
||||||||||||||
2017
|
|
|
|
|
|
|
|
|
||||||||
Tax valuation allowance
|
|
$
|
129
|
|
|
$
|
14
|
|
|
$
|
(5
|
)
|
|
$
|
138
|
|
2016
|
|
|
|
|
|
|
|
|
||||||||
Tax valuation allowance
|
|
$
|
131
|
|
|
$
|
22
|
|
|
$
|
(24
|
)
|
|
$
|
129
|
|
2015
|
|
|
|
|
|
|
|
|
||||||||
Tax valuation allowance
|
|
$
|
134
|
|
|
$
|
6
|
|
|
$
|
(9
|
)
|
|
$
|
131
|
|
3.
|
Exhibits.
|
|
|
|
|
Incorporation by Reference
|
||||||||
Exhibit
Number
|
|
Description
|
|
Form
|
|
Date
|
|
Exhibit
Number
|
|
Filed
Herewith
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
2.1
|
|
|
|
|
8-K
|
|
8/5/2014
|
|
2.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.1
|
|
|
|
|
S-1
|
|
8/16/1999
|
|
3.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.2
|
|
|
|
|
8-K
|
|
11/20/2012
|
|
3.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4.1
|
|
|
|
|
8-K
|
|
11/27/2001
|
|
99.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4.2
|
|
|
|
|
S-3ASR
|
|
10/24/2007
|
|
4.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4.3
|
|
|
|
|
8-K
|
|
7/20/2010
|
|
4.02
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4.4
|
|
|
|
|
8-K
|
|
9/13/2012
|
|
4.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4.5
|
|
|
|
|
8-K
|
|
6/21/2013
|
|
4.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4.6
|
|
|
|
|
8-K
|
|
9/22/2016
|
|
4.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.1
|
|
|
|
|
10-K
|
|
12/22/2006
|
|
10.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.2
|
|
|
|
|
8-K
|
|
11/12/2004
|
|
10.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.3
|
|
|
|
|
8-K
|
|
11/12/2004
|
|
10.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.4
|
|
|
|
|
10-Q
|
|
9/5/2008
|
|
10.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.5
|
|
|
|
|
10-K
|
|
12/21/2007
|
|
10.23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Incorporation by Reference
|
||||||||
Exhibit
Number
|
|
Description
|
|
Form
|
|
Date
|
|
Exhibit
Number
|
|
Filed
Herewith
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
10.6
|
|
|
|
|
8-K
|
|
11/12/2004
|
|
10.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.7
|
|
|
|
|
10-Q
|
|
9/5/2008
|
|
10.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.8
|
|
|
|
|
DEF14A
|
|
1/27/2009
|
|
Appendix A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.9
|
|
|
|
|
10‑K
|
|
12/20/2010
|
|
10.17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.10
|
|
|
|
|
10-K
|
|
12/21/2009
|
|
10.31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.11
|
|
|
|
|
10‑K
|
|
12/20/2010
|
|
10.19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.12
|
|
|
|
|
10-K
|
|
12/21/2009
|
|
10.32
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.13
|
|
|
|
|
10‑K
|
|
12/20/2010
|
|
10.21
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.14
|
|
|
|
|
10-K
|
|
12/21/2015
|
|
10.26
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.15
|
|
|
|
|
10-K
|
|
12/21/2015
|
|
10.28
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.16
|
|
|
|
|
10-K
|
|
12/21/2015
|
|
10.29
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.17
|
|
|
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.18
|
|
|
|
|
10-Q
|
|
3/9/2006
|
|
10.63
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.19
|
|
|
|
|
10-K
|
|
12/21/2009
|
|
10.39
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.20
|
|
|
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.21
|
|
|
|
|
DEF14A
|
|
2/6/2015
|
|
Annex A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.22
|
|
|
|
|
8-K
|
|
4/10/2008
|
|
10.1
|
|
|
|
|
|
|
Incorporation by Reference
|
||||||||
Exhibit
Number
|
|
Description
|
|
Form
|
|
Date
|
|
Exhibit
Number
|
|
Filed
Herewith
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
10.23
|
|
|
|
|
10-K
|
|
12/22/2014
|
|
10.35
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.24
|
|
|
|
|
8-K
|
|
4/10/2008
|
|
10.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.25
|
|
|
|
|
10-K
|
|
12/22/2014
|
|
10.37
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.26
|
|
|
|
|
10-K
|
|
12/21/2009
|
|
10.50
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.27
|
|
|
|
|
10-K
|
|
12/22/2014
|
|
10.39
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.28
|
|
|
|
|
8-K
|
|
8/5/2014
|
|
10.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.29
|
|
|
|
|
8-K
|
|
8/5/2014
|
|
10.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.30
|
|
|
|
|
8-K
|
|
8/5/2014
|
|
10.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.31
|
|
|
|
|
8-K
|
|
8/5/2014
|
|
10.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.32
|
|
|
|
|
8-K
|
|
8/5/2014
|
|
10.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Incorporation by Reference
|
||||||||
Exhibit
Number
|
|
Description
|
|
Form
|
|
Date
|
|
Exhibit
Number
|
|
Filed
Herewith
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
10.33
|
|
|
|
|
8-K
|
|
9/17/2014
|
|
10.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.34
|
|
|
|
|
8-K
|
|
6/10/2015
|
|
10.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.35
|
|
|
|
|
8-K
|
|
7/17/2017
|
|
10.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.36
|
|
|
|
|
10-K
|
|
12/22/2014
|
|
10.62
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.37
|
|
|
|
|
10-K
|
|
12/21/2015
|
|
10.70
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.38
|
|
|
|
|
10-K
|
|
12/21/2015
|
|
10.71
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.39
|
|
|
|
|
10-Q
|
|
3/8/2016
|
|
10.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.40
|
|
|
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11.1
|
|
|
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12.1
|
|
|
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
21.1
|
|
|
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
23.1
|
|
|
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
24.1
|
|
|
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31.1
|
|
|
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31.2
|
|
|
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
32.1
|
|
|
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
Incorporation by Reference
|
||||||||
Exhibit
Number
|
|
Description
|
|
Form
|
|
Date
|
|
Exhibit
Number
|
|
Filed
Herewith
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
32.2
|
|
|
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
101.INS
|
|
XBRL Instance Document.
|
|
|
|
|
|
|
|
X
|
||
|
|
|
|
|
|
|
|
|
|
|
||
101.SCH
|
|
XBRL Taxonomy Extension Schema Document.
|
|
|
|
|
|
|
|
X
|
||
|
|
|
|
|
|
|
|
|
|
|
||
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document.
|
|
|
|
|
|
|
|
X
|
||
|
|
|
|
|
|
|
|
|
|
|
||
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document.
|
|
|
|
|
|
|
|
X
|
||
|
|
|
|
|
|
|
|
|
|
|
||
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document.
|
|
|
|
|
|
|
|
X
|
||
|
|
|
|
|
|
|
|
|
|
|
||
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document.
|
|
|
|
|
|
|
|
X
|
*
|
Indicates management contract or compensatory plan, contract or arrangement.
|
|
|
AGILENT TECHNOLOGIES, INC.
|
||
|
|
|
|
|
|
|
BY
|
|
/s/ MICHAEL TANG
|
|
|
|
|
Michael Tang
|
|
|
|
|
Senior Vice President,
|
|
|
|
|
General Counsel and Secretary
|
Signature
|
|
Title
|
|
Date
|
|
|
|
|
|
/s/ MICHAEL R. MCMULLEN
|
|
Director, President and Chief Executive Officer
|
|
December 21, 2017
|
Michael R. McMullen
|
|
(Principal Executive Officer)
|
|
|
|
|
|
|
|
/s/ DIDIER HIRSCH
|
|
Senior Vice President and Chief Financial Officer
|
|
December 21, 2017
|
Didier Hirsch
|
|
(Principal Financial Officer)
|
|
|
|
|
|
|
|
/s/ RODNEY GONSALVES
|
|
Vice President, Corporate Controllership
|
|
December 21, 2017
|
Rodney Gonsalves
|
|
(Principal Accounting Officer)
|
|
|
|
|
|
|
|
/s/ KOH BOON HWEE
|
|
Chairman of the Board of Directors
|
|
December 21, 2017
|
Koh Boon Hwee
|
|
|
|
|
|
|
|
|
|
/s/ HANS E. BISHOP
|
|
Director
|
|
December 21, 2017
|
Hans E. Bishop
|
|
|
|
|
|
|
|
|
|
/s/ PAUL N. CLARK
|
|
Director
|
|
December 21, 2017
|
Paul N. Clark
|
|
|
|
|
|
|
|
|
|
/s/ JAMES G. CULLEN
|
|
Director
|
|
December 21, 2017
|
James G. Cullen
|
|
|
|
|
|
|
|
|
|
/s/ ROBERT J. HERBOLD
|
|
Director
|
|
December 21, 2017
|
Robert J. Herbold
|
|
|
|
|
|
|
|
|
|
/s/ HEIDI KUNZ
|
|
Director
|
|
December 21, 2017
|
Heidi Kunz
|
|
|
|
|
|
|
|
|
|
/s/ DANIEL K. PODOLSKY, M.D.
|
|
Director
|
|
December 21, 2017
|
Daniel K. Podolsky, M.D.
|
|
|
|
|
|
|
|
|
|
/s/ SUE H. RATAJ
|
|
Director
|
|
December 21, 2017
|
Sue H. Rataj
|
|
|
|
|
|
|
|
|
|
/s/ GEORGE A. SCANGOS, Ph D
|
|
Director
|
|
December 21, 2017
|
George A. Scangos, Ph D.
|
|
|
|
|
|
|
|
|
|
/s/ TADATAKA YAMADA, M.D.
|
|
Director
|
|
December 21, 2017
|
Tadataka Yamada, M.D.
|
|
|
|
|
SECTION 1.
|
ESTABLISHMENT AND PURPOSE OF PLAN
|
#14056910
|
|
|
SECTION 2.
|
DEFINITIONS
|
#14056910
|
|
|
#14056910
|
|
|
SECTION 3.
|
ELIGIBILITY AND PARTICIPATION
|
#14056910
|
|
|
SECTION 4.
|
VIRTUAL DPSP ACCOUNTS
|
SECTION 5.
|
VIRTUAL RETIREMENT BENEFIT
|
#14056910
|
|
|
(i)
|
The greater of the Virtual RP Benefit or the Annuity Value of the Virtual DPSP Account; less
|
(ii)
|
The Actual RP Benefit.
|
(i)
|
A Participant who Terminates on or before June 30, 2005 and elected to receive a distribution from the Deferred Profit Sharing Plan and Retirement Plan shall receive a benefit on or after January 1, 2006 in accordance with an election made by such Participant. In the event that
|
#14056910
|
|
|
(ii)
|
A Participant who terminates on or after July 1, 2005 but prior to January 1, 2006 and elected to receive a distribution from the Deferred Profit Sharing Plan and Retirement Plan shall receive a benefit on or after January 1, 2007 in accordance with the election made by the Participant. In the event that the Participant has not made an election prior to January 1, 2006, such Participant will receive a benefit on such payment date in the form of either (a) five (5) annual installments beginning on January 1, 2007 if such Participant’s lump sum equivalent of the Virtual Retirement Benefit as determined under this Section 5 is greater than one hundred fifty thousand dollars ($150,000), or (b) in a lump sum.
|
(iii)
|
A Participant who Terminates on or after January 1, 2006 but prior to January 1, 2008 shall commence to receive a benefit either (a) during the month of January immediately following such Participant’s Termination Date if such Termination Date occurs during the first six (6) months of the year, or (b) during the month of the second January following the year in which the Termination Date occurs if such Termination Date occurs during the second six (6) months of the year. The Participant will receive a benefit on such payment date in the form of either (a) five (5) annual installments beginning if such Participant’s lump sum equivalent of the Virtual Retirement Benefit as determined under this Section 5 is greater than one hundred fifty thousand dollars ($150,000), or (b) in a lump sum.
|
(iv)
|
A Participant who Terminates on or after January 1, 2008 shall commence to receive a benefit either (a) during the month of January immediately following such Participant’s Termination Date if such Termination Date occurs during the first six (6) months of the year, or (b) during
|
#14056910
|
|
|
(i)
|
Any annual installments shall be payable beginning in January or July, as provided in this paragraph (b), of the particular year; and
|
(ii)
|
The amount of each annual installment shall be determined by dividing the unpaid balance as of the last day of the prior Plan Year by the sum of the annual payments remaining to be made.
|
#14056910
|
|
|
SECTION 6.
|
FUNDING POLICY AND METHOD
|
#14056910
|
|
|
#14056910
|
|
|
SECTION 7.
|
ADMINISTRATION
|
SECTION 8.
|
AMENDMENT AND TERMINATION OF THE PLAN
|
SECTION 9.
|
CLAIMS AND APPEALS PROCEDURES
|
#14056910
|
|
|
(i)
|
May submit written comments, documents, records, and other information relating to his or her claim for benefits;
|
(ii)
|
Shall be provided, upon request and free of charge, reasonable access to, and copies of, all documents, records, and other information relevant (that is not privileged or protected) to his or her claim for benefits; and
|
(iii)
|
Shall be provided with a review on appeal (if an appeal request is timely filed) that takes into account all comments, documents, records, and other information submitted by Participant or Beneficiary (or his or her authorized representative) relating to the claim, without regard to whether such information was submitted or considered in the initial claim determination.
|
#14056910
|
|
|
#14056910
|
|
|
SECTION 10.
|
GENERAL PROVISIONS
|
#14056910
|
|
|
SECTION 11.
|
EXECUTION
|
#14056910
|
|
|
Section 1.
|
Establishment and Purpose of Plan.
|
Section 2.
|
Participation in the Plan.
|
Section 3.
|
Timing and Amounts of Deferred Compensation.
|
2730.019 #141831
|
|
|
2730.019 #141831
|
|
|
Section 4.
|
Crediting of Deferral Accounts.
|
2730.019 #141831
|
|
|
Section 5.
|
Earnings on the Deferral Account.
|
Section 6.
|
Payout to the Participants.
|
2730.019 #141831
|
|
|
2730.019 #141831
|
|
|
2730.019 #141831
|
|
|
Section 7.
|
Hardship Provision for Unforeseeable Emergencies.
|
Section 8.
|
Designation of Beneficiary.
|
Section 9.
|
Limitation on Assignments.
|
2730.019 #141831
|
|
|
Section 10.
|
Administration.
|
2730.019 #141831
|
|
|
Section 11.
|
No Funding Obligation.
|
Section 12.
|
Amendment and Termination of the Plan.
|
Section 13.
|
Tax Withholding.
|
2730.019 #141831
|
|
|
Section 14.
|
Applicable Law.
|
Section 15.
|
Notice.
|
Section 16.
|
No Employment Rights.
|
Section 17.
|
Severability of Provisions.
|
Section 18.
|
Rollovers from other Plans.
|
Section 19.
|
Definitions.
|
2730.019 #141831
|
|
|
2730.019 #141831
|
|
|
2730.019 #141831
|
|
|
2730.019 #141831
|
|
|
Section 20.
|
Execution.
|
2730.019 #141831
|
|
|
1.
|
Domini Social Investment Trust Social Equity Fund – Institutional Class
|
2.
|
Fidelity Contrafund – Class K
|
3.
|
Fidelity Low-Priced Stock Fund – Class K
|
4.
|
Goldman Sachs Small Cap Value Fund - Institutional Class
|
5.
|
Harbor Capital Appreciation Fund – Institutional Class
|
6.
|
JP Morgan Prime Money Market Fund – Agency Class
|
7.
|
PIMCO Total Return Fund – Institutional Class
|
8.
|
Templeton Institutional Fund Foreign Equity Series Fund – Primary Shares
|
9.
|
Vanguard Balanced Index Fund – Signal Shares
|
10.
|
Vanguard Extended Market Index Fund – Institutional Shares
|
11.
|
Vanguard Institutional Index Fund – Institutional Plus Shares –
DEFAULT FUND
|
12.
|
Vanguard Target Retirement Income Fund – Investor Shares
|
13.
|
Vanguard Target Retirement 2010 Fund – Investor Shares
|
14.
|
Vanguard Target Retirement 2015 Fund – Investor Shares
|
15.
|
Vanguard Target Retirement 2020 Fund – Investor Shares
|
16.
|
Vanguard Target Retirement 2025 Fund – Investor Shares
|
17.
|
Vanguard Target Retirement 2030 Fund – Investor Shares
|
18.
|
Vanguard Target Retirement 2035 Fund – Investor Shares
|
19.
|
Vanguard Target Retirement 2040 Fund – Investor Shares
|
20.
|
Vanguard Target Retirement 2045 Fund – Investor Shares
|
21.
|
Vanguard Target Retirement 2050 Fund – Investor Shares
|
22.
|
Vanguard Target Retirement 2055 Fund – Investor Shares
|
23.
|
Vanguard Target Retirement 2060 Fund – Investor Shares
|
2730.019 #141831
|
|
|
SECTION 1.
|
ESTABLISHMENT AND PURPOSE OF PLAN
|
#1409505
|
|
|
SECTION 2.
|
DEFINITIONS
|
#1409505
|
|
|
#1409505
|
|
|
SECTION 3.
|
ELIGIBILITY AND PARTICIPATION
|
#1409505
|
|
|
SECTION 4.
|
VIRTUAL DPSP ACCOUNTS
|
SECTION 5.
|
VIRTUAL RETIREMENT BENEFIT
|
(i)
|
The greater of the Virtual RP Benefit or the Annuity Value of the Virtual DPSP Account; less
|
(ii)
|
The Actual RP Benefit.
|
#1409505
|
|
|
(i)
|
If benefits are payable under the DPSP, no benefits shall be payable under this Plan until benefits are to be paid under the DPSP;
|
(ii)
|
The Committee may change the date a payment is to be made at any time before the date of the scheduled payment;
|
(iii)
|
Any annual installments shall be payable in January of the particular year;
|
(iv)
|
No lump sum may be payable later than January of the calendar year following the later of (A) the calendar year in which the Participant attains (or would have attained) age 70‑1/2, or (B) the calendar year in which the Participant’s employment by the Company terminates; provided, that the Committee may allow the unpaid balance to be paid in a lump sum after annual installment payments have commenced;
|
#1409505
|
|
|
(v)
|
Annual installments must be 15 or fewer in number and commence no later than January of the calendar year following the later of (A) the calendar year in which the Participant attains (or would have attained) age 70‑1/2, or (B) the calendar year in which the Participant’s employment by the Company terminates;
|
(vi)
|
The amount of each annual installment shall be determined by dividing the unpaid balance as of the last day of the prior Plan Year by the sum of the annual payments remaining to be made; and
|
(vii)
|
If at the time the Virtual Retirement Benefit is first determined under this Section 5 the lump sum equivalent of such benefit does not exceed one hundred fifty thousand dollars ($150,000.00), benefits shall be payable under this Plan as soon as administratively practicable after the date the Virtual Retirement Benefit is first determined and only in the form of a lump sum.
|
#1409505
|
|
|
SECTION 6.
|
FUNDING POLICY AND METHOD
|
#1409505
|
|
|
SECTION 7.
|
ADMINISTRATION
|
SECTION 8.
|
AMENDMENT AND TERMINATION OF THE PLAN
|
SECTION 9.
|
CLAIMS AND APPEALS PROCEDURES
|
#1409505
|
|
|
(i)
|
May submit written comments, documents, records, and other information relating to his or her claim for benefits;
|
#1409505
|
|
|
(ii)
|
Shall be provided, upon request and free of charge, reasonable access to, and copies of, all documents, records, and other information relevant (that is not privileged or protected) to his or her claim for benefits; and
|
(iii)
|
Shall be provided with a review on appeal (if an appeal request is timely filed) that takes into account all comments, documents, records, and other information submitted by Participant or Beneficiary (or his or her authorized representative) relating to the claim, without regard to whether such information was submitted or considered in the initial claim determination.
|
#1409505
|
|
|
SECTION 10.
|
GENERAL PROVISIONS
|
#1409505
|
|
|
#1409505
|
|
|
SECTION 11.
|
EXECUTION
|
#1409505
|
|
|
|
For Years Ended
|
||||||||||||||||||
|
October 31,
2017 |
|
October 31,
2016 |
|
October 31,
2015 |
|
October 31,
2014 |
|
October 31,
2013 |
||||||||||
Earnings:
|
|
|
|
|
|
|
|
|
|
||||||||||
Add:
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from continuing operations before taxes
|
$
|
803
|
|
|
$
|
544
|
|
|
$
|
480
|
|
|
$
|
229
|
|
|
$
|
293
|
|
Fixed Charges
|
98
|
|
|
92
|
|
|
87
|
|
|
128
|
|
|
125
|
|
|||||
Total
|
$
|
901
|
|
|
$
|
636
|
|
|
$
|
567
|
|
|
$
|
357
|
|
|
$
|
418
|
|
Fixed Charges:
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense
|
78
|
|
|
71
|
|
|
65
|
|
|
107
|
|
|
105
|
|
|||||
Estimate of interest within rental expense
(1)
|
19
|
|
|
20
|
|
|
21
|
|
|
18
|
|
|
18
|
|
|||||
Amortization of capitalized expenses related to indebtedness
|
1
|
|
|
1
|
|
|
1
|
|
|
3
|
|
|
2
|
|
|||||
Total
|
98
|
|
|
92
|
|
|
87
|
|
|
128
|
|
|
125
|
|
|||||
Ratio of earnings to fixed charges
|
9.19
|
|
|
6.91
|
|
|
6.52
|
|
|
2.79
|
|
|
3.34
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
Organized Under the Laws of
|
Agilent Technologies World Trade, Inc.
|
Delaware
|
Dako A/S
|
Denmark
|
Agilent Technologies Luxco S.à.r.l.
|
Luxembourg
|
Agilent Technologies Luxembourg Holding S.à.r.l.
|
Luxembourg
|
Agilent Technologies Europe B.V.
|
Netherlands
|
Agilent Technologies Singapore (Holdings) Pte. Ltd.
|
Singapore
|
Agilent Technologies Singapore (International) Pte. Ltd.
|
Singapore
|
Agilent Technologies Singapore (Global) Pte Ltd.
|
Singapore
|
Agilent Technologies Rhone S.à.r.l.
|
Switzerland
|
1.
|
I have reviewed this Form 10-K of Agilent Technologies, Inc.
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Date:
|
December 21, 2017
|
|
/s/ MICHAEL R. MCMULLEN
|
|
|
|
Michael R. McMullen
|
|
|
|
Director, President and Chief Executive Officer
|
1.
|
I have reviewed this Form 10-K of Agilent Technologies, Inc.
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Date:
|
December 21, 2017
|
|
/s/ DIDIER HIRSCH
|
|
|
|
Didier Hirsch
|
|
|
|
Senior Vice President and
|
|
|
|
Chief Financial Officer
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
Date:
|
December 21, 2017
|
|
/s/ MICHAEL R. MCMULLEN
|
|
|
|
Michael R. McMullen
|
|
|
|
Director, President and
|
|
|
|
Chief Executive Officer
|
|
|
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
Date:
|
December 21, 2017
|
|
/s/ DIDIER HIRSCH
|
|
|
|
Didier Hirsch
|
|
|
|
Senior Vice President and
|
|
|
|
Chief Financial Officer
|