|
Delaware
|
|
|
|
77-0518772
|
|
(State or other jurisdiction of incorporation or organization)
|
|
(IRS Employer Identification No.)
|
Title of each Class
|
|
Trading Symbol
|
|
Name of each Exchange on which registered
|
||||
Common Stock, $0.01 par value
|
|
|
A
|
|
|
|
New York Stock Exchange
|
|
Large accelerated filer
|
☒
|
|
Accelerated filer
|
☐
|
|
Non-accelerated filer
|
☐
|
|
Smaller reporting company
|
☐
|
|
|
|
|
Emerging growth company
|
☐
|
|
|
|
|
Page
Number
|
|
|||
|
|||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|||
|
|||
|
|||
|
|||
|
|||
|
|||
|
|||
|
|||
|
|
PART I
|
— FINANCIAL INFORMATION
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
April 30,
|
|
April 30,
|
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Net revenue:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Products
|
$
|
923
|
|
|
$
|
921
|
|
|
$
|
1,946
|
|
|
$
|
1,901
|
|
Services and other
|
315
|
|
|
317
|
|
|
649
|
|
|
621
|
|
||||
Total net revenue
|
1,238
|
|
|
1,238
|
|
|
2,595
|
|
|
2,522
|
|
||||
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cost of products
|
417
|
|
|
400
|
|
|
871
|
|
|
814
|
|
||||
Cost of services and other
|
164
|
|
|
169
|
|
|
344
|
|
|
332
|
|
||||
Total costs
|
581
|
|
|
569
|
|
|
1,215
|
|
|
1,146
|
|
||||
Research and development
|
197
|
|
|
99
|
|
|
301
|
|
|
201
|
|
||||
Selling, general and administrative
|
358
|
|
|
354
|
|
|
762
|
|
|
709
|
|
||||
Total costs and expenses
|
1,136
|
|
|
1,022
|
|
|
2,278
|
|
|
2,056
|
|
||||
Income from operations
|
102
|
|
|
216
|
|
|
317
|
|
|
466
|
|
||||
Interest income
|
3
|
|
|
10
|
|
|
6
|
|
|
20
|
|
||||
Interest expense
|
(20
|
)
|
|
(17
|
)
|
|
(40
|
)
|
|
(35
|
)
|
||||
Other income (expense), net
|
36
|
|
|
9
|
|
|
57
|
|
|
15
|
|
||||
Income before taxes
|
121
|
|
|
218
|
|
|
340
|
|
|
466
|
|
||||
Provision (benefit) for income taxes
|
20
|
|
|
36
|
|
|
42
|
|
|
(220
|
)
|
||||
Net income
|
$
|
101
|
|
|
$
|
182
|
|
|
$
|
298
|
|
|
$
|
686
|
|
|
|
|
|
|
|
|
|
||||||||
Net income per share:
|
|
|
|
|
|
|
|
|
|
||||||
Basic
|
$
|
0.33
|
|
|
$
|
0.57
|
|
|
$
|
0.96
|
|
|
$
|
2.16
|
|
Diluted
|
$
|
0.32
|
|
|
$
|
0.57
|
|
|
$
|
0.95
|
|
|
$
|
2.13
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average shares used in computing net income per share:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic
|
309
|
|
|
317
|
|
|
310
|
|
|
318
|
|
||||
Diluted
|
312
|
|
|
321
|
|
|
313
|
|
|
322
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
April 30,
|
|
April 30,
|
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Net income
|
$
|
101
|
|
|
$
|
182
|
|
|
$
|
298
|
|
|
$
|
686
|
|
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
||||||||
Unrealized gain (loss) on derivative instruments, net of tax expense (benefit) of $0, $1, $0 and $(1)
|
2
|
|
|
3
|
|
|
3
|
|
|
(1
|
)
|
||||
Amounts reclassified into earnings related to derivative instruments, net of tax expense (benefit) of $0, $0, $0 and $(1)
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|
(4
|
)
|
||||
Foreign currency translation, net of tax expense (benefit) of $0, $0, $0 and $(9)
|
(29
|
)
|
|
(25
|
)
|
|
(40
|
)
|
|
13
|
|
||||
Net defined benefit pension cost and post retirement plan costs:
|
|
|
|
|
|
|
|
||||||||
Change in actuarial net loss, net of tax expense of $2, $2, $5 and $6
|
12
|
|
|
6
|
|
|
18
|
|
|
12
|
|
||||
Change in net prior service benefit, net of tax expense (benefit) of $(1), $(1), $0 and $(1)
|
(1
|
)
|
|
(1
|
)
|
|
(4
|
)
|
|
(3
|
)
|
||||
Other comprehensive income (loss)
|
(17
|
)
|
|
(17
|
)
|
|
(24
|
)
|
|
17
|
|
||||
Total comprehensive income
|
$
|
84
|
|
|
$
|
165
|
|
|
$
|
274
|
|
|
$
|
703
|
|
|
April 30,
2020 |
|
October 31,
2019 |
||||
ASSETS
|
|
|
|
|
|
||
Current assets:
|
|
|
|
|
|
||
Cash and cash equivalents
|
$
|
1,324
|
|
|
$
|
1,382
|
|
Accounts receivable, net
|
886
|
|
|
930
|
|
||
Inventory
|
750
|
|
|
679
|
|
||
Other current assets
|
211
|
|
|
198
|
|
||
Total current assets
|
3,171
|
|
|
3,189
|
|
||
Property, plant and equipment, net
|
836
|
|
|
850
|
|
||
Goodwill
|
3,582
|
|
|
3,593
|
|
||
Other intangible assets, net
|
921
|
|
|
1,107
|
|
||
Long-term investments
|
141
|
|
|
102
|
|
||
Other assets
|
804
|
|
|
611
|
|
||
Total assets
|
$
|
9,455
|
|
|
$
|
9,452
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
||
Current liabilities:
|
|
|
|
|
|
||
Accounts payable
|
$
|
333
|
|
|
$
|
354
|
|
Employee compensation and benefits
|
280
|
|
|
334
|
|
||
Deferred revenue
|
399
|
|
|
336
|
|
||
Short-term debt
|
700
|
|
|
616
|
|
||
Other accrued liabilities
|
233
|
|
|
440
|
|
||
Total current liabilities
|
1,945
|
|
|
2,080
|
|
||
Long-term debt
|
1,788
|
|
|
1,791
|
|
||
Retirement and post-retirement benefits
|
340
|
|
|
360
|
|
||
Other long-term liabilities
|
614
|
|
|
473
|
|
||
Total liabilities
|
4,687
|
|
|
4,704
|
|
||
Commitments and contingencies (Note 14)
|
|
|
|
|
|
||
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; 308 million shares at April 30, 2020 and 309 million shares at October 31, 2019 issued
|
3
|
|
|
3
|
|
||
Additional paid-in-capital
|
5,288
|
|
|
5,277
|
|
||
Retained earnings (accumulated deficit)
|
15
|
|
|
(18
|
)
|
||
Accumulated other comprehensive loss
|
(538
|
)
|
|
(514
|
)
|
||
Total stockholders' equity
|
4,768
|
|
|
4,748
|
|
||
Total liabilities and equity
|
$
|
9,455
|
|
|
$
|
9,452
|
|
|
Six Months Ended
|
||||||
|
April 30,
|
||||||
|
2020
|
|
2019
|
||||
|
|
|
|
|
|
||
Net income
|
$
|
298
|
|
|
$
|
686
|
|
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
|
|
|
|
|
|
||
Depreciation and amortization
|
155
|
|
|
107
|
|
||
Share-based compensation
|
44
|
|
|
40
|
|
||
Deferred taxes
|
(3
|
)
|
|
(272
|
)
|
||
Excess and obsolete inventory related charges
|
9
|
|
|
7
|
|
||
Unrealized gain on equity securities
|
(27
|
)
|
|
(1
|
)
|
||
Asset impairment charges
|
99
|
|
|
—
|
|
||
Other non-cash expense, net
|
3
|
|
|
3
|
|
||
Changes in assets and liabilities:
|
|
|
|
|
|
||
Accounts receivable
|
25
|
|
|
(17
|
)
|
||
Inventory
|
(85
|
)
|
|
(21
|
)
|
||
Accounts payable
|
(10
|
)
|
|
(8
|
)
|
||
Employee compensation and benefits
|
(50
|
)
|
|
(13
|
)
|
||
Other assets and liabilities
|
(204
|
)
|
|
(46
|
)
|
||
Net cash provided by operating activities
|
254
|
|
|
465
|
|
||
|
|
|
|
||||
Cash flows from investing activities:
|
|
|
|
|
|
||
Investments in property, plant and equipment
|
(67
|
)
|
|
(78
|
)
|
||
Payment to acquire fair value investments
|
(18
|
)
|
|
(18
|
)
|
||
Payment in exchange for convertible note
|
(3
|
)
|
|
(2
|
)
|
||
Acquisitions of businesses and intangible assets, net of cash acquired
|
—
|
|
|
(248
|
)
|
||
Net cash used in investing activities
|
(88
|
)
|
|
(346
|
)
|
||
|
|
|
|
||||
Cash flows from financing activities:
|
|
|
|
|
|
||
Issuance of common stock under employee stock plans
|
32
|
|
|
33
|
|
||
Payment of taxes related to net share settlement of equity awards
|
(33
|
)
|
|
(14
|
)
|
||
Payment of dividends
|
(111
|
)
|
|
(104
|
)
|
||
Purchase of non-controlling interest
|
—
|
|
|
(4
|
)
|
||
Proceeds from revolving credit facility
|
798
|
|
|
—
|
|
||
Repayment of revolving credit facility
|
(713
|
)
|
|
—
|
|
||
Repayment of finance lease
|
(4
|
)
|
|
—
|
|
||
Treasury stock repurchases
|
(186
|
)
|
|
(125
|
)
|
||
Net cash used in financing activities
|
(217
|
)
|
|
(214
|
)
|
||
|
|
|
|
||||
Effect of exchange rate movements
|
(8
|
)
|
|
2
|
|
||
|
|
|
|
||||
Net decrease in cash, cash equivalents and restricted cash
|
(59
|
)
|
|
(93
|
)
|
||
|
|
|
|
||||
Cash, cash equivalents and restricted cash at beginning of period
|
1,388
|
|
|
2,254
|
|
||
Cash, cash equivalents and restricted cash at end of period
|
$
|
1,329
|
|
|
$
|
2,161
|
|
|
|
|
|
||||
Supplemental cash flow information:
|
|
|
|
||||
Income tax paid, net
|
$
|
286
|
|
|
$
|
104
|
|
Interest payments
|
$
|
39
|
|
|
$
|
36
|
|
Non-cash changes in investments in property, plant and equipment - increase (decrease)
|
$
|
(8
|
)
|
|
$
|
(23
|
)
|
|
Common Stock
|
|
Treasury Stock
|
|
|
|
Accumulated
Other Comprehensive Loss |
|
|
|
|
|
|
||||||||||||||||||||||||
Three Months Ended April 30, 2020
|
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 |
||||||||||||||||||||
Balance as of January 31, 2020
|
310,048
|
|
|
$
|
3
|
|
|
$
|
5,293
|
|
|
—
|
|
|
$
|
—
|
|
|
$
|
73
|
|
|
$
|
(521
|
)
|
|
$
|
4,848
|
|
|
$
|
—
|
|
|
$
|
4,848
|
|
Components of comprehensive income, net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
101
|
|
|
—
|
|
|
101
|
|
|
—
|
|
|
101
|
|
||||||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(17
|
)
|
|
(17
|
)
|
|
—
|
|
|
(17
|
)
|
||||||||
Total comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
84
|
|
|
|
|
84
|
|
|||||||||
Cash dividends declared ($0.18 per common share)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(55
|
)
|
|
—
|
|
|
(55
|
)
|
|
—
|
|
|
(55
|
)
|
||||||||
Share-based awards issued, net of tax of $0
|
58
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Repurchase of common stock
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,663
|
)
|
|
(126
|
)
|
|
—
|
|
|
—
|
|
|
(126
|
)
|
|
—
|
|
|
(126
|
)
|
||||||||
Retirement of treasury stock
|
(1,663
|
)
|
|
—
|
|
|
(22
|
)
|
|
1,663
|
|
|
126
|
|
|
(104
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Share-based compensation
|
—
|
|
|
—
|
|
|
17
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
17
|
|
|
—
|
|
|
17
|
|
||||||||
Balance as of April 30, 2020
|
308,443
|
|
|
$
|
3
|
|
|
$
|
5,288
|
|
|
—
|
|
|
$
|
—
|
|
|
$
|
15
|
|
|
$
|
(538
|
)
|
|
$
|
4,768
|
|
|
$
|
—
|
|
|
$
|
4,768
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
Common Stock
|
|
Treasury Stock
|
|
|
|
Accumulated
Other Comprehensive Loss |
|
|
|
|
|
|
||||||||||||||||||||||||
Six Months Ended April 30, 2020
|
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 |
||||||||||||||||||||
Balance as of October 31, 2019
|
309,071
|
|
|
$
|
3
|
|
|
$
|
5,277
|
|
|
—
|
|
|
$
|
—
|
|
|
$
|
(18
|
)
|
|
$
|
(514
|
)
|
|
$
|
4,748
|
|
|
$
|
—
|
|
|
$
|
4,748
|
|
Components of comprehensive income, net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
298
|
|
|
—
|
|
|
298
|
|
|
—
|
|
|
298
|
|
||||||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(24
|
)
|
|
(24
|
)
|
|
—
|
|
|
(24
|
)
|
||||||||
Total comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
274
|
|
|
|
|
274
|
|
|||||||||
Cash dividends declared ($0.36 per common share)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(111
|
)
|
|
—
|
|
|
(111
|
)
|
|
—
|
|
|
(111
|
)
|
||||||||
Share-based awards issued, net of tax of $33
|
1,761
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
||||||||
Repurchase of common stock
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,389
|
)
|
|
(186
|
)
|
|
—
|
|
|
—
|
|
|
(186
|
)
|
|
—
|
|
|
(186
|
)
|
||||||||
Retirement of treasury stock
|
(2,389
|
)
|
|
—
|
|
|
(32
|
)
|
|
2,389
|
|
|
186
|
|
|
(154
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Share-based compensation
|
—
|
|
|
—
|
|
|
44
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
44
|
|
|
—
|
|
|
44
|
|
||||||||
Balance as of April 30, 2020
|
308,443
|
|
|
$
|
3
|
|
|
$
|
5,288
|
|
|
—
|
|
|
$
|
—
|
|
|
$
|
15
|
|
|
$
|
(538
|
)
|
|
$
|
4,768
|
|
|
$
|
—
|
|
|
$
|
4,768
|
|
|
Common Stock
|
|
Treasury Stock
|
|
|
|
Accumulated
Other Comprehensive Loss |
|
|
|
|
|
|
||||||||||||||||||||||||
Three Months Ended April 30, 2019
|
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 |
||||||||||||||||||||
Balance as of January 31, 2019
|
317,533
|
|
|
$
|
3
|
|
|
$
|
5,324
|
|
|
—
|
|
|
$
|
—
|
|
|
$
|
90
|
|
|
$
|
(381
|
)
|
|
$
|
5,036
|
|
|
$
|
—
|
|
|
$
|
5,036
|
|
Components of comprehensive income, net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
182
|
|
|
—
|
|
|
182
|
|
|
—
|
|
|
182
|
|
||||||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(17
|
)
|
|
(17
|
)
|
|
—
|
|
|
(17
|
)
|
||||||||
Total comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
165
|
|
|
|
|
165
|
|
|||||||||
Purchase of non-controlling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Cash dividends declared ($0.164 per common share)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(52
|
)
|
|
—
|
|
|
(52
|
)
|
|
—
|
|
|
(52
|
)
|
||||||||
Share-based awards issued, net of tax of $1
|
381
|
|
|
—
|
|
|
10
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10
|
|
|
—
|
|
|
10
|
|
||||||||
Repurchase of common stock
|
—
|
|
|
—
|
|
|
—
|
|
|
(638
|
)
|
|
(50
|
)
|
|
—
|
|
|
—
|
|
|
(50
|
)
|
|
—
|
|
|
(50
|
)
|
||||||||
Retirement of treasury stock
|
(629
|
)
|
|
—
|
|
|
(7
|
)
|
|
629
|
|
|
49
|
|
|
(42
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Share-based compensation
|
—
|
|
|
—
|
|
|
16
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16
|
|
|
—
|
|
|
16
|
|
||||||||
Balance as of April 30, 2019
|
317,285
|
|
|
$
|
3
|
|
|
$
|
5,343
|
|
|
(9
|
)
|
|
$
|
(1
|
)
|
|
$
|
178
|
|
|
$
|
(398
|
)
|
|
$
|
5,125
|
|
|
$
|
—
|
|
|
$
|
5,125
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
Common Stock
|
|
Treasury Stock
|
|
|
|
Accumulated
Other Comprehensive Loss |
|
|
|
|
|
|
||||||||||||||||||||||||
Six Months Ended April 30, 2019
|
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 |
||||||||||||||||||||
Balance as of October 31, 2018
|
317,715
|
|
|
$
|
3
|
|
|
$
|
5,308
|
|
|
—
|
|
|
$
|
—
|
|
|
$
|
(336
|
)
|
|
$
|
(408
|
)
|
|
$
|
4,567
|
|
|
$
|
4
|
|
|
$
|
4,571
|
|
Effects of adoption of new accounting standards
|
|
|
|
|
|
|
|
|
|
|
$
|
33
|
|
|
$
|
(7
|
)
|
|
$
|
26
|
|
|
|
|
$
|
26
|
|
||||||||||
Components of comprehensive income, net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
686
|
|
|
—
|
|
|
686
|
|
|
—
|
|
|
686
|
|
||||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
17
|
|
|
17
|
|
|
—
|
|
|
17
|
|
||||||||
Total comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
703
|
|
|
|
|
703
|
|
|||||||||
Purchase of non-controlling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
(4
|
)
|
||||||||
Cash dividends declared ($0.328 per common share)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(104
|
)
|
|
—
|
|
|
(104
|
)
|
|
—
|
|
|
(104
|
)
|
||||||||
Share-based awards issued, net of tax of $14
|
1,327
|
|
|
—
|
|
|
18
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
18
|
|
|
—
|
|
|
18
|
|
||||||||
Repurchase of common stock
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,766
|
)
|
|
(125
|
)
|
|
—
|
|
|
—
|
|
|
(125
|
)
|
|
—
|
|
|
(125
|
)
|
||||||||
Retirement of treasury stock
|
(1,757
|
)
|
|
—
|
|
|
(23
|
)
|
|
1,757
|
|
|
124
|
|
|
(101
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Share-based compensation
|
—
|
|
|
—
|
|
|
40
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
40
|
|
|
—
|
|
|
40
|
|
||||||||
Balance as of April 30, 2019
|
317,285
|
|
|
$
|
3
|
|
|
$
|
5,343
|
|
|
(9
|
)
|
|
$
|
(1
|
)
|
|
$
|
178
|
|
|
$
|
(398
|
)
|
|
$
|
5,125
|
|
|
$
|
—
|
|
|
$
|
5,125
|
|
1.
|
OVERVIEW, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
|
|
April 30,
|
|
October 31
|
||||
|
2020
|
|
2019
|
||||
|
(in millions)
|
||||||
Cash and cash equivalents
|
$
|
1,324
|
|
|
$
|
1,382
|
|
Restricted cash included in other assets
|
5
|
|
|
6
|
|
||
Total cash, cash equivalents and restricted cash
|
$
|
1,329
|
|
|
$
|
1,388
|
|
|
October 31, 2019
|
|
Impact of Adopting
|
|
November 1, 2019
|
||||||
|
As Reported
|
|
Lease Guidance
|
|
As Adopted
|
||||||
|
(in millions)
|
||||||||||
Other assets
|
$
|
611
|
|
|
$
|
192
|
|
|
$
|
803
|
|
Other accrued liabilities
|
$
|
440
|
|
|
$
|
48
|
|
|
$
|
488
|
|
Other long-term liabilities
|
$
|
473
|
|
|
$
|
144
|
|
|
$
|
617
|
|
Cash and cash equivalents
|
|
|
$
|
10
|
|
|
Accounts receivable
|
|
|
28
|
|
|
|
Inventories
|
|
|
21
|
|
|
|
Other current assets
|
|
|
2
|
|
|
|
Property, plant and equipment
|
|
|
8
|
|
|
|
Intangible assets
|
|
|
641
|
|
|
|
Goodwill
|
|
|
483
|
|
|
|
Total assets acquired
|
|
1,193
|
|
|
||
Accounts payable
|
|
|
(4
|
)
|
|
|
Deferred revenue
|
|
|
(5
|
)
|
|
|
Employee compensation and benefits
|
|
|
(7
|
)
|
|
|
Other accrued liabilities
|
|
|
(2
|
)
|
|
|
Long-term debt
|
|
|
(4
|
)
|
|
|
Net assets acquired
|
|
|
$
|
1,171
|
|
|
|
Fair Value
|
|
Estimated
Useful Life
|
||||
Developed product technology
|
|
$
|
387
|
|
|
|
5-13 years
|
Customer relationships
|
|
202
|
|
|
|
3-8 years
|
|
Backlog
|
|
5
|
|
|
|
2 months
|
|
Tradenames and trademarks
|
|
43
|
|
|
|
10 years
|
|
Total intangible assets subject to amortization
|
|
637
|
|
|
|
|
|
In-process research and development
|
|
4
|
|
|
|
|
|
Total intangible assets
|
|
$
|
641
|
|
|
|
|
|
Three Months Ended April 30
|
Six Months Ended April 30
|
||||
|
2019
|
2019
|
||||
Net revenue
|
$
|
1,285
|
|
$
|
2,611
|
|
Net income
|
$
|
168
|
|
$
|
642
|
|
Net income per share — basic
|
$
|
0.53
|
|
$
|
2.20
|
|
Net income per share — diluted
|
$
|
0.52
|
|
$
|
1.99
|
|
|
Three Months Ended April 30
|
||||||||||||||||||||||||||||||
|
2020
|
|
2019
|
||||||||||||||||||||||||||||
|
Life Sciences and Applied Markets
|
|
Agilent CrossLab
|
|
Diagnostics and Genomics
|
|
Total
|
|
Life Sciences and Applied Markets
|
|
Agilent CrossLab
|
|
Diagnostics and Genomics
|
|
Total
|
||||||||||||||||
|
(in millions)
|
||||||||||||||||||||||||||||||
Revenue by Region
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Americas
|
$
|
170
|
|
|
$
|
161
|
|
|
$
|
126
|
|
|
$
|
457
|
|
|
$
|
145
|
|
|
$
|
168
|
|
|
$
|
120
|
|
|
$
|
433
|
|
Europe
|
111
|
|
|
131
|
|
|
92
|
|
|
334
|
|
|
125
|
|
|
132
|
|
|
97
|
|
|
354
|
|
||||||||
Asia Pacific
|
245
|
|
|
157
|
|
|
45
|
|
|
447
|
|
|
259
|
|
|
155
|
|
|
37
|
|
|
451
|
|
||||||||
Total
|
$
|
526
|
|
|
$
|
449
|
|
|
$
|
263
|
|
|
$
|
1,238
|
|
|
$
|
529
|
|
|
$
|
455
|
|
|
$
|
254
|
|
|
$
|
1,238
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended April 30
|
||||||||||||||||||||||||||||||
|
2020
|
|
2019
|
||||||||||||||||||||||||||||
|
Life Sciences and Applied Markets
|
|
Agilent CrossLab
|
|
Diagnostics and Genomics
|
|
Total
|
|
Life Sciences and Applied Markets
|
|
Agilent CrossLab
|
|
Diagnostics and Genomics
|
|
Total
|
||||||||||||||||
|
(in millions)
|
||||||||||||||||||||||||||||||
Revenue by Region
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Americas
|
$
|
379
|
|
|
$
|
328
|
|
|
$
|
244
|
|
|
$
|
951
|
|
|
$
|
313
|
|
|
$
|
324
|
|
|
$
|
229
|
|
|
$
|
866
|
|
Europe
|
278
|
|
|
264
|
|
|
184
|
|
|
726
|
|
|
289
|
|
|
260
|
|
|
188
|
|
|
737
|
|
||||||||
Asia Pacific
|
507
|
|
|
327
|
|
|
84
|
|
|
918
|
|
|
534
|
|
|
313
|
|
|
72
|
|
|
919
|
|
||||||||
Total
|
$
|
1,164
|
|
|
$
|
919
|
|
|
$
|
512
|
|
|
$
|
2,595
|
|
|
$
|
1,136
|
|
|
$
|
897
|
|
|
$
|
489
|
|
|
$
|
2,522
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
April 30
|
|
April 30
|
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
|
(in millions)
|
|
|
|
|
||||||||||
Revenue by End Markets
|
|
|
|
|
|
|
|
||||||||
Pharmaceutical and Biopharmaceutical
|
$
|
400
|
|
|
$
|
371
|
|
|
$
|
823
|
|
|
$
|
762
|
|
Chemical and Energy
|
267
|
|
|
300
|
|
|
579
|
|
|
608
|
|
||||
Diagnostics and Clinical
|
200
|
|
|
193
|
|
|
394
|
|
|
380
|
|
||||
Food
|
114
|
|
|
114
|
|
|
244
|
|
|
243
|
|
||||
Academia and Government
|
115
|
|
|
114
|
|
|
256
|
|
|
230
|
|
||||
Environmental and Forensics
|
142
|
|
|
146
|
|
|
299
|
|
|
299
|
|
||||
Total
|
$
|
1,238
|
|
|
$
|
1,238
|
|
|
$
|
2,595
|
|
|
$
|
2,522
|
|
|
|
|
|
|
|
|
|
||||||||
Revenue by Type
|
|
|
|
|
|
|
|
||||||||
Instrumentation
|
$
|
491
|
|
|
$
|
491
|
|
|
$
|
1,084
|
|
|
$
|
1,058
|
|
Non-instrumentation and other
|
747
|
|
|
747
|
|
|
1,511
|
|
|
1,464
|
|
||||
Total
|
$
|
1,238
|
|
|
$
|
1,238
|
|
|
$
|
2,595
|
|
|
$
|
2,522
|
|
|
|
Contract
Liabilities
|
||
|
|
(in millions)
|
||
|
|
|
||
Ending balance as of October 31, 2019
|
|
$
|
386
|
|
Net revenue deferred in the period
|
|
289
|
|
|
Revenue recognized that was included in the contract liability balance at the beginning of the period
|
|
(226
|
)
|
|
Change in deferrals from customer cash advances, net of revenue recognized
|
|
8
|
|
|
Currency translation and other adjustments
|
|
(5
|
)
|
|
Ending balance as of April 30, 2020
|
|
$
|
452
|
|
|
Three Months Ended
|
Six Months Ended
|
||||||||||||
|
April 30,
|
April 30,
|
||||||||||||
|
2020
|
|
2019
|
2020
|
|
2019
|
||||||||
|
(in millions)
|
|||||||||||||
Cost of products and services
|
$
|
5
|
|
|
$
|
4
|
|
$
|
11
|
|
|
$
|
9
|
|
Research and development
|
2
|
|
|
2
|
|
5
|
|
|
4
|
|
||||
Selling, general and administrative
|
11
|
|
|
10
|
|
29
|
|
|
27
|
|
||||
Total share-based compensation expense
|
$
|
18
|
|
|
$
|
16
|
|
$
|
45
|
|
|
$
|
40
|
|
|
Three Months Ended
|
Six Months Ended
|
||||
|
April 30,
|
April 30,
|
||||
|
2020
|
|
2019
|
2020
|
|
2019
|
LTPP:
|
|
|
|
|
|
|
Volatility of Agilent shares
|
23%
|
|
22%
|
23%
|
|
22%
|
Volatility of selected peer-company shares
|
15%-44%
|
|
15%-66%
|
15%-44%
|
|
15%-66%
|
Pair-wise correlation with selected peers
|
29%
|
|
30%
|
29%
|
|
30%
|
|
|
|
|
|
|
|
Post-vest holding restriction discount for all executive awards
|
5.3%
|
|
5.0%
|
5.3%
|
|
5.0%
|
|
Three Months Ended
|
Six Months Ended
|
||||||||||||
|
April 30,
|
April 30,
|
||||||||||||
|
2020
|
|
2019
|
2020
|
|
2019
|
||||||||
|
(in millions)
|
|||||||||||||
Numerator:
|
|
|
|
|
|
|
|
|
|
|
||||
Net income
|
$
|
101
|
|
|
$
|
182
|
|
$
|
298
|
|
|
$
|
686
|
|
Denominator:
|
|
|
|
|
|
|
||||||||
Basic weighted-average shares
|
309
|
|
|
317
|
|
310
|
|
|
318
|
|
||||
Potential common shares— stock options and other employee stock plans
|
3
|
|
|
4
|
|
3
|
|
|
4
|
|
||||
Diluted weighted-average shares
|
312
|
|
|
321
|
|
313
|
|
|
322
|
|
|
April 30,
2020 |
|
October 31,
2019 |
||||
|
(in millions)
|
||||||
Finished goods
|
$
|
418
|
|
|
$
|
416
|
|
Purchased parts and fabricated assemblies
|
332
|
|
|
263
|
|
||
Inventory
|
$
|
750
|
|
|
$
|
679
|
|
|
Operating Leases
|
||
|
(in millions)
|
||
2020
|
$
|
52
|
|
2021
|
41
|
|
|
2022
|
29
|
|
|
2023
|
21
|
|
|
2024
|
14
|
|
|
2025 and thereafter
|
56
|
|
|
Total future minimum lease payments
|
$
|
213
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||
|
April 30, 2020
|
|
April 30, 2020
|
||||
|
(in millions)
|
||||||
|
|
|
|
||||
Operating lease cost
|
$
|
16
|
|
|
$
|
31
|
|
Short-term lease cost
|
1
|
|
|
1
|
|
||
Variable lease cost (a)
|
3
|
|
|
7
|
|
||
Sublease income
|
(3
|
)
|
|
(7
|
)
|
||
Total lease cost
|
$
|
17
|
|
|
$
|
32
|
|
|
|
|
|
||
|
Financial Statement Line Item
|
|
April 30, 2020
|
||
|
|
|
(in millions, except lease term and discount rate)
|
||
Assets:
|
|
|
|
||
Operating lease:
|
|
|
|
||
Right of use asset
|
Other assets
|
|
$
|
188
|
|
|
|
|
|
||
Liabilities:
|
|
|
|
||
Current
|
|
|
|
||
Operating lease liabilities
|
Other accrued liabilities
|
|
$
|
51
|
|
Long-Term
|
|
|
|
||
Operating lease liabilities
|
Other long-term liabilities
|
|
$
|
138
|
|
|
|
|
|
||
Weighted average remaining lease term in years
|
|
|
|
||
Operating leases
|
|
|
8.1 years
|
|
|
Weighted average discount rate
|
|
|
|
||
Operating leases
|
|
|
2.1
|
%
|
|
|
Operating Leases
|
||
|
|
(in millions)
|
||
Remainder of 2020
|
|
$
|
28
|
|
2021
|
|
49
|
|
|
2022
|
|
37
|
|
|
2023
|
|
25
|
|
|
2024
|
|
14
|
|
|
2025 and thereafter
|
|
55
|
|
|
Total undiscounted future minimum lease payments
|
|
$
|
208
|
|
Less: amount of lease payments representing interest
|
|
(19
|
)
|
|
Present value of future minimum lease payments
|
|
$
|
189
|
|
Less: current liabilities
|
|
(51
|
)
|
|
Long-term lease liabilities
|
|
$
|
138
|
|
|
|
|
|
Life Sciences and Applied Markets
|
|
Diagnostics and Genomics
|
|
Agilent CrossLab
|
|
Total
|
||||||||
|
(in millions)
|
||||||||||||||
Goodwill as of October 31, 2019
|
$
|
1,438
|
|
|
$
|
1,594
|
|
|
$
|
561
|
|
|
$
|
3,593
|
|
Foreign currency translation impact
|
(4
|
)
|
|
(4
|
)
|
|
(3
|
)
|
|
(11
|
)
|
||||
Goodwill as of April 30, 2020
|
$
|
1,434
|
|
|
$
|
1,590
|
|
|
$
|
558
|
|
|
$
|
3,582
|
|
|
Purchased Other Intangible Assets
|
||||||||||
|
Gross
Carrying
Amount
|
|
Accumulated
Amortization
|
|
Net Book
Value
|
||||||
|
(in millions)
|
||||||||||
As of October 31, 2019
|
|
|
|
|
|
|
|
|
|||
Purchased technology
|
$
|
1,413
|
|
|
$
|
763
|
|
|
$
|
650
|
|
Backlog
|
5
|
|
|
5
|
|
|
—
|
|
|||
Trademark/Tradename
|
196
|
|
|
102
|
|
|
94
|
|
|||
Customer relationships
|
329
|
|
|
87
|
|
|
242
|
|
|||
Third-party technology and licenses
|
28
|
|
|
22
|
|
|
6
|
|
|||
Total amortizable intangible assets
|
1,971
|
|
|
979
|
|
|
992
|
|
|||
In-Process R&D
|
115
|
|
|
—
|
|
|
115
|
|
|||
Total
|
$
|
2,086
|
|
|
$
|
979
|
|
|
$
|
1,107
|
|
As of April 30, 2020
|
|
|
|
|
|
|
|
|
|||
Purchased technology
|
$
|
1,412
|
|
|
$
|
810
|
|
|
$
|
602
|
|
Trademark/Tradename
|
196
|
|
|
110
|
|
|
86
|
|
|||
Customer relationships
|
328
|
|
|
123
|
|
|
205
|
|
|||
Third-party technology and licenses
|
28
|
|
|
23
|
|
|
5
|
|
|||
Total amortizable intangible assets
|
1,964
|
|
|
1,066
|
|
|
898
|
|
|||
In-Process R&D
|
23
|
|
|
—
|
|
|
23
|
|
|||
Total
|
$
|
1,987
|
|
|
$
|
1,066
|
|
|
$
|
921
|
|
Estimated future amortization expense:
|
|
||
(in millions)
|
|
||
Remainder of 2020
|
$
|
91
|
|
2021
|
$
|
172
|
|
2022
|
$
|
150
|
|
2023
|
$
|
107
|
|
2024
|
$
|
86
|
|
2025
|
$
|
68
|
|
Thereafter
|
$
|
224
|
|
|
|
|
Fair Value Measurement at April 30, 2020 Using
|
||||||||||||
|
April 30,
2020 |
|
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)
|
$
|
682
|
|
|
$
|
682
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Derivative instruments (foreign exchange contracts)
|
8
|
|
|
—
|
|
|
8
|
|
|
—
|
|
||||
Long-term
|
|
|
|
|
|
|
|
||||||||
Trading securities
|
27
|
|
|
27
|
|
|
—
|
|
|
—
|
|
||||
Other investments
|
22
|
|
|
—
|
|
|
22
|
|
|
—
|
|
||||
Total assets measured at fair value
|
$
|
739
|
|
|
$
|
709
|
|
|
$
|
30
|
|
|
$
|
—
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Short-term
|
|
|
|
|
|
|
|
||||||||
Derivative instruments (foreign exchange contracts)
|
$
|
7
|
|
|
$
|
—
|
|
|
$
|
7
|
|
|
$
|
—
|
|
Long-term
|
|
|
|
|
|
|
|
||||||||
Deferred compensation liability
|
27
|
|
|
—
|
|
|
27
|
|
|
—
|
|
||||
Total liabilities measured at fair value
|
$
|
34
|
|
|
$
|
—
|
|
|
$
|
34
|
|
|
$
|
—
|
|
|
|
|
Fair Value Measurement at October 31, 2019 Using
|
||||||||||||
|
October 31,
2019 |
|
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)
|
$
|
784
|
|
|
$
|
784
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Derivative instruments (foreign exchange contracts)
|
12
|
|
|
—
|
|
|
12
|
|
|
—
|
|
||||
Long-term
|
|
|
|
|
|
|
|
||||||||
Trading securities
|
30
|
|
|
30
|
|
|
—
|
|
|
—
|
|
||||
Other investments
|
25
|
|
|
—
|
|
|
25
|
|
|
—
|
|
||||
Total assets measured at fair value
|
$
|
851
|
|
|
$
|
814
|
|
|
$
|
37
|
|
|
$
|
—
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Short-term
|
|
|
|
|
|
|
|
||||||||
Derivative instruments (foreign exchange contracts)
|
$
|
6
|
|
|
$
|
—
|
|
|
$
|
6
|
|
|
$
|
—
|
|
Long-term
|
|
|
|
|
|
|
|
||||||||
Deferred compensation liability
|
30
|
|
|
—
|
|
|
30
|
|
|
—
|
|
||||
Total liabilities measured at fair value
|
$
|
36
|
|
|
$
|
—
|
|
|
$
|
36
|
|
|
$
|
—
|
|
|
|
Derivatives
Designated as
Cash Flow Hedges
|
|
Derivatives
Designated as
Net Investment Hedges |
|
Derivatives
Not Designated as
Hedging Instruments
|
||||||
|
|
Forward
Contracts USD
|
|
Forward
Contracts USD |
|
Forward
Contracts USD
|
||||||
Currency
|
|
Buy/(Sell)
|
|
Buy/(Sell)
|
|
Buy/(Sell)
|
||||||
|
|
(in millions)
|
||||||||||
Euro
|
|
$
|
(48
|
)
|
|
$
|
(55
|
)
|
|
$
|
95
|
|
British Pound
|
|
(39
|
)
|
|
—
|
|
|
—
|
|
|||
Canadian Dollar
|
|
(33
|
)
|
|
—
|
|
|
21
|
|
|||
Japanese Yen
|
|
(75
|
)
|
|
—
|
|
|
10
|
|
|||
Korean Won
|
|
(48
|
)
|
|
—
|
|
|
(31
|
)
|
|||
Singapore Dollar
|
|
12
|
|
|
—
|
|
|
15
|
|
|||
Chinese Yuan Renminbi
|
|
(66
|
)
|
|
—
|
|
|
(66
|
)
|
|||
Swedish Krona
|
|
—
|
|
|
—
|
|
|
(9
|
)
|
|||
Other
|
|
3
|
|
|
—
|
|
|
(12
|
)
|
|||
Totals
|
|
$
|
(294
|
)
|
|
$
|
(55
|
)
|
|
$
|
23
|
|
Fair Values of Derivative Instruments
|
||||||||||||||||||
Asset Derivatives
|
|
Liability Derivatives
|
||||||||||||||||
|
|
Fair Value
|
|
|
|
Fair Value
|
||||||||||||
Balance Sheet Location
|
|
April 30,
2020 |
|
October 31, 2019
|
|
Balance Sheet Location
|
|
April 30,
2020 |
|
October 31,
2019 |
||||||||
(in millions)
|
||||||||||||||||||
Derivatives designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cash flow hedges
|
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign exchange contracts
|
|
|
|
|
|
|
|
|
|
|
||||||||
Other current assets
|
|
$
|
5
|
|
|
$
|
3
|
|
|
Other accrued liabilities
|
|
$
|
4
|
|
|
$
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net investment hedges
|
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign exchange contracts
|
|
|
|
|
|
|
|
|
|
|
||||||||
Other current assets
|
|
$
|
1
|
|
|
$
|
—
|
|
|
Other accrued liabilities
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Foreign exchange contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Other current assets
|
|
$
|
2
|
|
|
$
|
9
|
|
|
Other accrued liabilities
|
|
$
|
3
|
|
|
$
|
4
|
|
Total derivatives
|
|
$
|
8
|
|
|
$
|
12
|
|
|
|
|
$
|
7
|
|
|
$
|
6
|
|
|
|||||||||||||||
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
April 30,
|
|
April 30,
|
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
|
(in millions)
|
||||||||||||||
Derivatives designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cash Flow Hedges
|
|
|
|
|
|
|
|
||||||||
Foreign exchange contracts:
|
|
|
|
|
|
|
|
||||||||
Gain (loss) recognized in accumulated other comprehensive loss
|
$
|
2
|
|
|
$
|
4
|
|
|
$
|
3
|
|
|
$
|
(2
|
)
|
Loss reclassified from accumulated other comprehensive loss into interest expense
|
$
|
(1
|
)
|
|
$
|
—
|
|
|
$
|
(1
|
)
|
|
$
|
—
|
|
Gain reclassified from accumulated other comprehensive loss into cost of sales
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
2
|
|
|
$
|
5
|
|
Gain on time value of forward contracts recorded in cost of sales
|
$
|
2
|
|
|
$
|
1
|
|
|
$
|
2
|
|
|
$
|
2
|
|
|
|
|
|
|
|
|
|
||||||||
Net Investment Hedges
|
|
|
|
|
|
|
|
||||||||
Foreign exchange contracts:
|
|
|
|
|
|
|
|
||||||||
Gain recognized in accumulated other comprehensive loss
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
||||||||
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
|
|
||||||||
Gain (loss) recognized in other income (expense)
|
$
|
(1
|
)
|
|
$
|
1
|
|
|
$
|
(3
|
)
|
|
$
|
(2
|
)
|
|
Three Months Ended April 30
|
||||||||||||||||||||||
|
U.S.
Pension Plans |
|
Non-U.S.
Pension Plans |
|
U.S. Post Retirement
Benefit Plans
|
||||||||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||||||
|
(in millions)
|
||||||||||||||||||||||
Service cost—benefits earned during the period
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5
|
|
|
$
|
4
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Interest cost on benefit obligation
|
4
|
|
|
5
|
|
|
2
|
|
|
3
|
|
|
1
|
|
|
1
|
|
||||||
Expected return on plan assets
|
(7
|
)
|
|
(7
|
)
|
|
(12
|
)
|
|
(11
|
)
|
|
(2
|
)
|
|
(1
|
)
|
||||||
Amortization:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Actuarial losses
|
1
|
|
|
—
|
|
|
12
|
|
|
9
|
|
|
1
|
|
|
1
|
|
||||||
Prior service credits
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
(2
|
)
|
||||||
Total net plan costs (benefits)
|
$
|
(2
|
)
|
|
$
|
(2
|
)
|
|
$
|
7
|
|
|
$
|
5
|
|
|
$
|
(2
|
)
|
|
$
|
(1
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Six Months Ended April 30
|
||||||||||||||||||||||
|
U.S.
Pension Plans |
|
Non-U.S.
Pension Plans |
|
U.S. Post Retirement
Benefit Plans |
||||||||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||||||
|
(in millions)
|
||||||||||||||||||||||
Service cost—benefits earned during the period
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
12
|
|
|
$
|
10
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Interest cost on benefit obligation
|
8
|
|
|
10
|
|
|
4
|
|
|
6
|
|
|
2
|
|
|
1
|
|
||||||
Expected return on plan assets
|
(15
|
)
|
|
(14
|
)
|
|
(24
|
)
|
|
(22
|
)
|
|
(3
|
)
|
|
(2
|
)
|
||||||
Amortization:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Actuarial losses
|
2
|
|
|
—
|
|
|
24
|
|
|
18
|
|
|
2
|
|
|
2
|
|
||||||
Prior service credits
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
(4
|
)
|
||||||
Total net plan costs (benefits)
|
$
|
(5
|
)
|
|
$
|
(4
|
)
|
|
$
|
16
|
|
|
$
|
12
|
|
|
$
|
(3
|
)
|
|
$
|
(3
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
||||||
|
April 30,
|
||||||
|
2020
|
|
2019
|
||||
|
(in millions)
|
||||||
Beginning balance as of November 1,
|
$
|
32
|
|
|
$
|
35
|
|
Accruals for warranties including change in estimate
|
25
|
|
|
27
|
|
||
Settlements made during the period
|
(27
|
)
|
|
(30
|
)
|
||
Ending balance as of April 30
|
$
|
30
|
|
|
$
|
32
|
|
|
|
|
|
||||
Accruals for warranties due within one year
|
$
|
30
|
|
|
$
|
32
|
|
|
April 30, 2020
|
|
October 31, 2019
|
||||
|
Amortized
Principal
|
|
Amortized
Principal
|
||||
|
(in millions)
|
||||||
2022 Senior Notes
|
$
|
399
|
|
|
$
|
399
|
|
2023 Senior Notes
|
598
|
|
|
597
|
|
||
2026 Senior Notes
|
298
|
|
|
298
|
|
||
2029 Senior Notes
|
493
|
|
|
492
|
|
||
Total
|
$
|
1,788
|
|
|
$
|
1,786
|
|
|
|
|
|
Net defined benefit pension cost and post retirement plan costs
|
|
|
|
|
||||||||||||
Three Months Ended April 30, 2020
|
|
Foreign currency translation
|
|
Prior service credits
|
|
Actuarial Losses
|
|
Unrealized gains (losses) on derivatives
|
|
Total
|
||||||||||
|
|
(in millions)
|
||||||||||||||||||
As of January 31, 2020
|
|
$
|
(215
|
)
|
|
$
|
128
|
|
|
$
|
(431
|
)
|
|
$
|
(3
|
)
|
|
$
|
(521
|
)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other comprehensive income (loss) before reclassifications
|
|
(29
|
)
|
|
—
|
|
|
—
|
|
|
2
|
|
|
(27
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Amounts reclassified out of accumulated other comprehensive income (loss)
|
|
—
|
|
|
(2
|
)
|
|
14
|
|
|
(1
|
)
|
|
11
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Tax (expense) benefit
|
|
—
|
|
|
1
|
|
|
(2
|
)
|
|
—
|
|
|
(1
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other comprehensive income (loss)
|
|
(29
|
)
|
|
(1
|
)
|
|
12
|
|
|
1
|
|
|
(17
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
As of April 30, 2020
|
|
$
|
(244
|
)
|
|
$
|
127
|
|
|
$
|
(419
|
)
|
|
$
|
(2
|
)
|
|
$
|
(538
|
)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Six Months Ended April 30, 2020
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
As of October 31, 2019
|
|
$
|
(204
|
)
|
|
$
|
131
|
|
|
$
|
(437
|
)
|
|
$
|
(4
|
)
|
|
$
|
(514
|
)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other comprehensive income (loss) before reclassifications
|
|
(40
|
)
|
|
—
|
|
|
(5
|
)
|
|
3
|
|
|
(42
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Amounts reclassified out of accumulated other comprehensive income (loss)
|
|
—
|
|
|
(4
|
)
|
|
28
|
|
|
(1
|
)
|
|
23
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Tax expense
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
(5
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other comprehensive income (loss)
|
|
(40
|
)
|
|
(4
|
)
|
|
18
|
|
|
2
|
|
|
(24
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
As of April 30, 2020
|
|
$
|
(244
|
)
|
|
$
|
127
|
|
|
$
|
(419
|
)
|
|
$
|
(2
|
)
|
|
$
|
(538
|
)
|
Details about accumulated other
comprehensive income (loss) components
|
|
Amounts Reclassified from
other comprehensive income (loss)
|
|
Affected line item in
statement of operations
|
||||||||||||||
|
|
|
|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
||||||||||||
|
|
April 30,
|
|
April 30,
|
|
|
||||||||||||
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Unrealized gain on derivatives
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
2
|
|
|
$
|
5
|
|
|
Cost of products
|
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
Interest expense
|
||||
|
|
1
|
|
|
—
|
|
|
1
|
|
|
5
|
|
|
Total before income tax
|
||||
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
Provision for income tax
|
||||
|
|
1
|
|
|
—
|
|
|
1
|
|
|
4
|
|
|
Total net of income tax
|
||||
Net defined benefit pension cost and post retirement plan costs:
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Actuarial net loss
|
|
(14
|
)
|
|
(10
|
)
|
|
(28
|
)
|
|
(20
|
)
|
|
|
||||
Prior service benefit
|
|
2
|
|
|
2
|
|
|
4
|
|
|
4
|
|
|
|
||||
|
|
(12
|
)
|
|
(8
|
)
|
|
(24
|
)
|
|
(16
|
)
|
|
Total before income tax
|
||||
|
|
2
|
|
|
1
|
|
|
8
|
|
|
5
|
|
|
Benefit for income tax
|
||||
|
|
(10
|
)
|
|
(7
|
)
|
|
(16
|
)
|
|
(11
|
)
|
|
Total net of income tax
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Total reclassifications for the period
|
|
$
|
(9
|
)
|
|
$
|
(7
|
)
|
|
$
|
(15
|
)
|
|
$
|
(7
|
)
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
April 30,
|
|
April 30,
|
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
|
(in millions)
|
||||||||||||||
Net Revenue:
|
|
|
|
|
|
|
|
||||||||
Life Sciences and Applied Markets
|
$
|
526
|
|
|
$
|
529
|
|
|
$
|
1,164
|
|
|
$
|
1,136
|
|
Diagnostics and Genomics
|
263
|
|
|
254
|
|
|
512
|
|
|
489
|
|
||||
Agilent CrossLab
|
449
|
|
|
455
|
|
|
919
|
|
|
897
|
|
||||
Total net revenue
|
$
|
1,238
|
|
|
$
|
1,238
|
|
|
$
|
2,595
|
|
|
$
|
2,522
|
|
|
|
|
|
|
|
|
|
||||||||
Segment Income From Operations:
|
|
|
|
|
|
|
|
|
|
||||||
Life Sciences and Applied Markets
|
$
|
98
|
|
|
$
|
107
|
|
|
$
|
256
|
|
|
$
|
266
|
|
Diagnostics and Genomics
|
57
|
|
|
49
|
|
|
91
|
|
|
82
|
|
||||
Agilent CrossLab
|
122
|
|
|
115
|
|
|
241
|
|
|
220
|
|
||||
Total segment income from operations
|
$
|
277
|
|
|
$
|
271
|
|
|
$
|
588
|
|
|
$
|
568
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
April 30,
|
|
April 30,
|
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
|
(in millions)
|
||||||||||||||
Total reportable segments’ income from operations
|
$
|
277
|
|
|
$
|
271
|
|
|
$
|
588
|
|
|
$
|
568
|
|
Transformational initiatives
|
(15
|
)
|
|
(9
|
)
|
|
(28
|
)
|
|
(14
|
)
|
||||
Amortization of intangible assets related to business combinations
|
(46
|
)
|
|
(26
|
)
|
|
(94
|
)
|
|
(54
|
)
|
||||
Acquisition and integration costs
|
(11
|
)
|
|
(10
|
)
|
|
(24
|
)
|
|
(20
|
)
|
||||
Asset impairment
|
(99
|
)
|
|
—
|
|
|
(99
|
)
|
|
—
|
|
||||
NASD site costs
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
(6
|
)
|
||||
Special compliance costs
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
||||
Other(1)
|
(4
|
)
|
|
(5
|
)
|
|
(26
|
)
|
|
(7
|
)
|
||||
Interest income
|
3
|
|
|
10
|
|
|
6
|
|
|
20
|
|
||||
Interest expense
|
(20
|
)
|
|
(17
|
)
|
|
(40
|
)
|
|
(35
|
)
|
||||
Other income (expense), net (2)
|
36
|
|
|
9
|
|
|
57
|
|
|
15
|
|
||||
Income before taxes, as reported
|
$
|
121
|
|
|
$
|
218
|
|
|
$
|
340
|
|
|
$
|
466
|
|
|
April 30,
2020 |
|
October 31,
2019 |
||||
|
(in millions)
|
||||||
Segment Assets:
|
|
|
|
||||
Life Sciences and Applied Markets
|
$
|
3,112
|
|
|
$
|
3,202
|
|
Diagnostics and Genomics
|
2,515
|
|
|
2,620
|
|
||
Agilent CrossLab
|
1,343
|
|
|
1,331
|
|
||
Total segment assets
|
$
|
6,970
|
|
|
$
|
7,153
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
Year over Year Change
|
||||||||||||||
|
April 30,
|
|
April 30,
|
|
Three
|
|
Six
|
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
Months
|
|
Months
|
||||||||
|
(in millions)
|
|
|
|
|
||||||||||||||
Net revenue:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Products
|
$
|
923
|
|
|
$
|
921
|
|
|
$
|
1,946
|
|
|
$
|
1,901
|
|
|
—%
|
|
2%
|
Services and other
|
315
|
|
|
317
|
|
|
649
|
|
|
621
|
|
|
—%
|
|
5%
|
||||
Total net revenue
|
$
|
1,238
|
|
|
$
|
1,238
|
|
|
$
|
2,595
|
|
|
$
|
2,522
|
|
|
—%
|
|
3%
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
Year over Year Change
|
||||||||||||||
|
|
April 30,
|
|
April 30,
|
|
Three
|
|
Six
|
||||||||||||
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
Months
|
|
Months
|
||||||||
|
|
(in millions)
|
|
|
|
|
||||||||||||||
Net revenue by segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Life sciences and applied markets
|
|
$
|
526
|
|
|
$
|
529
|
|
|
$
|
1,164
|
|
|
$
|
1,136
|
|
|
(1)%
|
|
2%
|
Diagnostics and genomics
|
|
263
|
|
|
254
|
|
|
512
|
|
|
489
|
|
|
3%
|
|
5%
|
||||
Agilent CrossLab
|
|
449
|
|
|
455
|
|
|
919
|
|
|
897
|
|
|
(1)%
|
|
2%
|
||||
Total net revenue
|
|
$
|
1,238
|
|
|
$
|
1,238
|
|
|
$
|
2,595
|
|
|
$
|
2,522
|
|
|
—
|
|
3%
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
Year over Year Change
|
||||||||||||||
|
|
April 30,
|
|
April 30,
|
|
Three
|
|
Six
|
||||||||||||
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
Months
|
|
Months
|
||||||||
(in millions, except margin data)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Total gross margin
|
|
53.0
|
%
|
|
54.1
|
%
|
|
53.2
|
%
|
|
54.6
|
%
|
|
(1) ppt
|
|
(1) ppt
|
||||
Research and development
|
|
$
|
197
|
|
|
$
|
99
|
|
|
$
|
301
|
|
|
$
|
201
|
|
|
99%
|
|
49%
|
Selling, general and administrative
|
|
$
|
358
|
|
|
$
|
354
|
|
|
$
|
762
|
|
|
$
|
709
|
|
|
1%
|
|
7%
|
Operating margin
|
|
8.2
|
%
|
|
17.4
|
%
|
|
12.2
|
%
|
|
18.5
|
%
|
|
(9) ppts
|
|
(6) ppts
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
Year over Year Change
|
||||||||||||||
|
|
April 30,
|
|
April 30,
|
|
Three
|
|
Six
|
||||||||||||
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
Months
|
|
Months
|
||||||||
|
|
(in millions)
|
|
|
|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net revenue
|
|
$
|
526
|
|
|
$
|
529
|
|
|
$
|
1,164
|
|
|
$
|
1,136
|
|
|
(1)%
|
|
2%
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
Year over Year Change
|
||||||||||||||
|
|
April 30,
|
|
April 30,
|
|
Three
|
|
Six
|
||||||||||||
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
Months
|
|
Months
|
||||||||
(in millions, except margin data)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Gross margin
|
|
58.1
|
%
|
|
60.6
|
%
|
|
59.2
|
%
|
|
61.4
|
%
|
|
(3) ppts
|
|
(2) ppts
|
||||
Research and development
|
|
$
|
53
|
|
|
$
|
54
|
|
|
$
|
108
|
|
|
$
|
110
|
|
|
(1)%
|
|
(2)%
|
Selling, general and administrative
|
|
$
|
154
|
|
|
$
|
159
|
|
|
$
|
325
|
|
|
$
|
321
|
|
|
(3)%
|
|
1%
|
Operating margin
|
|
18.7
|
%
|
|
20.3
|
%
|
|
22.0
|
%
|
|
23.4
|
%
|
|
(2) ppts
|
|
(1) ppt
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
Year over Year Change
|
||||||||||||||
|
|
April 30,
|
|
April 30,
|
|
Three
|
|
Six
|
||||||||||||
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
Months
|
|
Months
|
||||||||
|
|
(in millions)
|
|
|
|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net revenue
|
|
$
|
263
|
|
|
$
|
254
|
|
|
$
|
512
|
|
|
$
|
489
|
|
|
3%
|
|
5%
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
Year over Year Change
|
||||||||||||||
|
|
April 30,
|
|
April 30,
|
|
Three
|
|
Six
|
||||||||||||
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
Months
|
|
Months
|
||||||||
(in millions, except margin data)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Gross margin
|
|
55.1
|
%
|
|
54.8
|
%
|
|
53.4
|
%
|
|
54.5
|
%
|
|
—
|
|
(1) ppt
|
||||
Research and development
|
|
$
|
30
|
|
|
$
|
29
|
|
|
$
|
62
|
|
|
$
|
60
|
|
|
2%
|
|
2%
|
Selling, general and administrative
|
|
$
|
58
|
|
|
$
|
61
|
|
|
$
|
121
|
|
|
$
|
124
|
|
|
(5)%
|
|
(2)%
|
Operating margin
|
|
21.6
|
%
|
|
19.3
|
%
|
|
17.7
|
%
|
|
16.8
|
%
|
|
2 ppts
|
|
1 ppt
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
Year over Year Change
|
||||||||||||||
|
|
April 30,
|
|
April 30,
|
|
Three
|
|
Six
|
||||||||||||
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
Months
|
|
Months
|
||||||||
|
|
(in millions)
|
|
|
|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net revenue
|
|
$
|
449
|
|
|
$
|
455
|
|
|
$
|
919
|
|
|
$
|
897
|
|
|
(1)%
|
|
2%
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
Year over Year Change
|
||||||||||||||
|
|
April 30,
|
|
April 30,
|
|
Three
|
|
Six
|
||||||||||||
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
Months
|
|
Months
|
||||||||
(in millions, except margin data)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Gross margin
|
|
52.5
|
%
|
|
51.3
|
%
|
|
52.2
|
%
|
|
51.3
|
%
|
|
1 ppt
|
|
1 ppt
|
||||
Research and development
|
|
$
|
14
|
|
|
$
|
14
|
|
|
$
|
29
|
|
|
$
|
29
|
|
|
—
|
|
—
|
Selling, general and administrative
|
|
$
|
100
|
|
|
$
|
105
|
|
|
$
|
209
|
|
|
$
|
212
|
|
|
(5)%
|
|
(1)%
|
Operating margin
|
|
27.2
|
%
|
|
25.2
|
%
|
|
26.3
|
%
|
|
24.5
|
%
|
|
2 ppts
|
|
2 ppts
|
•
|
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;
|
•
|
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.
|
•
|
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;
|
•
|
changes in diplomatic and trade relationships, such as the United Kingdom's exit from the European Union and the increased uncertainty around its implementation caused by COVID-19, as well as, new tariffs, trade protection measures, import or export licensing requirements, new or different customs duties, trade embargoes and sanctions and other trade barriers;
|
•
|
tariffs imposed by the U.S. on goods from other countries and tariffs imposed by other countries on U.S. goods, including the tariffs enacted and proposed by the U.S. government on various imports from China and by the Chinese government on certain U.S. goods;
|
•
|
negative consequences from changes in or differing interpretations of laws and regulations, including those related to tax and import/export;
|
•
|
difficulty in staffing and managing widespread operations;
|
•
|
differing labor regulations;
|
•
|
differing protection of intellectual property;
|
•
|
unexpected changes in regulatory requirements;
|
•
|
geopolitical uncertainty or turmoil, terrorism and war; and
|
•
|
impact of public health crises, including pandemics and epidemics, such as COVID-19 on the global economy.
|
•
|
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.
|
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) |
||||||
|
|
(a)
|
|
(b)
|
|
(c)
|
|
(d)
|
||||||
February 1, 2020 through February 29, 2020
|
|
651,968
|
|
|
$
|
80.72
|
|
|
651,968
|
|
|
$
|
914
|
|
March 1, 2020 through March 31, 2020
|
|
1,010,952
|
|
|
$
|
72.55
|
|
|
1,010,952
|
|
|
$
|
841
|
|
April 1, 2020 through April 30, 2020
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
841
|
|
Total
|
|
1,662,920
|
|
|
$
|
75.75
|
|
|
1,662,920
|
|
|
$
|
841
|
|
(1)
|
On November 19, 2018 we announced that our board of directors had approved a new share repurchase program (the "2019 repurchase program") designed, among other things, to reduce or eliminate dilution resulting from issuance of stock under the company's employee equity incentive programs. The 2019 repurchase program authorizes the purchase of up to $1.75 billion of our common stock at the company's discretion and has no fixed termination date. The 2019 repurchase program does not require the company to acquire a specific number of shares and may be suspended, amended or discontinued at any time. As of April 30, 2020, all repurchased shares to date have been retired.
|
(2)
|
The weighted average price paid per share of common stock does not include the cost of commissions.
|
Exhibit
|
|
|
|
Number
|
|
Description
|
|
|
|
|
|
10.1
|
|
|
|
|
|
|
|
10.2
|
|
|
|
|
|
|
|
10.3
|
|
|
|
|
|
|
|
31.1
|
|
|
|
|
|
|
|
31.2
|
|
|
|
|
|
|
|
32.1
|
|
|
|
|
|
|
|
32.2
|
|
|
|
|
|
|
|
101.INS XBRL
|
|
Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
|
|
|
|
|
|
101.SCH XBRL
|
|
Schema Document
|
|
|
|
|
|
101.CAL XBRL
|
|
Calculation Linkbase Document
|
|
|
|
|
|
101.LAB XBRL
|
|
Labels Linkbase Document
|
|
|
|
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101.PRE XBRL
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Presentation Linkbase Document
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101.DEF XBRL
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Definition Linkbase Document
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Dated:
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May 29, 2020
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By:
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/s/ Robert W. McMahon
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Robert W. McMahon
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Senior Vice President and Chief Financial Officer
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(Principal Financial Officer)
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Dated:
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May 29, 2020
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By:
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/s/ Rodney Gonsalves
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Rodney Gonsalves
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Vice President, Corporate Controllership
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(Principal Accounting Officer)
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1.
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PURPOSE.
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2.
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DEFINITIONS.
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(a)
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“Board” shall mean the Board of Directors of the Corporation.
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(b)
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“Code” shall mean the Internal Revenue Code of 1986, of the USA, as amended. Any reference to a Section of the Code herein shall be a reference to any successor or amended Section of the Code and to any regulations promulgated under such Section.
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(c)
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“Committee” shall mean the committee appointed by the Board in accordance with Section 14 of the Plan.
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(d)
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“Common Stock” shall mean the Common Stock of the Corporation, or any stock into which such Common Stock may be converted.
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(e)
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“Compensation” shall mean an Employee’s base cash compensation, sales incentives and shift premiums paid on account of personal services rendered by the Employee to the Corporation or a Designated Subsidiary, which shall be determined prior to deduction of deferrals of base pay under the Agilent Technologies, Inc. 2005 Deferred Compensation Plan, or any successor plan thereto, but shall exclude payments for overtime, non-sales related incentive compensation, variable and management incentive bonuses and other incentive payments and bonuses, with any modifications determined by the Committee. The Committee shall have the authority to determine and approve all forms of pay to be included in the definition of Compensation and may change the definition on a prospective basis.
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(f)
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“Corporation” shall mean Agilent Technologies, Inc., a Delaware corporation.
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(g)
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“Designated Subsidiary” shall mean a Subsidiary that has been or may be designated by the Committee from time to time as eligible to participate in the Plan with respect to its Employees.
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(h)
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“Employee” shall mean an individual classified as an employee (within the meaning of Code Section 3401(c) and the regulations thereunder) by the Corporation or a Designated Subsidiary on the Corporation’s or such Designated Subsidiary’s payroll records during the relevant participation period. Employees shall not include individuals classified as independent contractors.
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(i)
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“Entry Date” shall mean the first Trading Day of the Offering Period or, for new Participants, the first Trading Day of their first Purchase Period.
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(j)
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“Fair Market Value” shall be the closing sales price for the Common Stock (or the closing bid, if no sales were reported) as quoted in The Wall Street Journal or such other source as the Committee deems reliable, on the date of determination if that date is a Trading Day, or if that day is not a trading day, for the last market Trading Day prior to the date of determination.
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(k)
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“Offering Period” shall mean the period of up to twenty-four (24) months during which an option granted pursuant to the Plan may be exercised. Notwithstanding the foregoing, unless changed by the Committee,
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(l)
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“Participant” shall mean a participant in the Plan as described in Section 5 of the Plan.
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(m)
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“Plan” shall mean this Employee Stock Purchase Plan, as it may be amended from time to time.
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(n)
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“Purchase Date” shall mean the last Trading Day of each Purchase Period.
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(o)
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“Purchase Period” shall mean the period of six (6) months commencing after one Purchase Date and ending with the next Purchase Date. Purchase Periods may run consecutively after the termination of the preceding Purchase Period. Notwithstanding the foregoing, subject to the Committee’s discretion to modify Offering and Purchase Periods, “Purchase Period” shall mean the six (6) month period commencing on the first day of an Offering Period and ending on the last day of such Offering Period.
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(p)
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“Purchase Price” shall mean eighty-five percent (85%) of the Fair Market Value of a share of Common Stock on the Purchase Date, provided, however, that the Committee may elect with respect to future Offering Periods to establish the Purchase Price as eighty-five percent (85%) of the Fair Market Value of a share of Common Stock on the Entry Date or the Purchase Date, whichever is lower; provided however, that the Purchase Price may be adjusted by the Committee pursuant to Section 7.4.
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(q)
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“Shareholder” shall mean a record holder of shares entitled to vote shares of Common Stock under the Corporation’s by-laws.
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(r)
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“Subsidiary” shall mean any corporation (other than the Corporation), whether or not such corporation exists now or is hereafter organized or acquired by the Corporation or a Subsidiary, in an unbroken chain of corporations beginning with the Corporation, as described in Code Section 424(f).
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(s)
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“Trading Day” shall mean a day on which U.S. national stock exchanges and the New York Stock Exchange are open for trading.
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3.
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ELIGIBILITY.
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4.
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OFFERING PERIODS.
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5.
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PARTICIPATION.
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6.
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TERMINATION OF EMPLOYMENT.
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7.
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OFFERING.
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8.
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PURCHASE OF STOCK.
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9.
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PAYMENT AND DELIVERY.
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10.
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RECAPITALIZATION.
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11.
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MERGER, LIQUIDATION, OTHER CORPORATION TRANSACTIONS.
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12.
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TRANSFERABILITY.
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13.
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AMENDMENT OR TERMINATION OF THE PLAN.
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14.
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ADMINISTRATION.
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15.
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COMMITTEE RULES FOR FOREIGN JURISDICTIONS.
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16.
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SECURITIES LAWS REQUIREMENTS.
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17.
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GOVERNMENTAL REGULATIONS.
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18.
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NO ENLARGEMENT OF EMPLOYEE RIGHTS.
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19.
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GOVERNING LAW.
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20.
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EFFECTIVE DATE.
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21.
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REPORTS.
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22.
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DESIGNATION OF BENEFICIARY FOR OWNED SHARES.
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1.
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I have reviewed this Form 10-Q of Agilent Technologies, Inc.;
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2.
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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;
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3.
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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;
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4.
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The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-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:
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5.
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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):
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Date:
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May 29, 2020
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/s/ Michael R. McMullen
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Michael R. McMullen
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Director and Chief Executive Officer
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1.
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I have reviewed this Form 10-Q of Agilent Technologies, Inc.;
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2.
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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;
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3.
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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;
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4.
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The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-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:
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5.
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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):
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Date:
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May 29, 2020
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/s/ Robert W. McMahon
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Robert W. McMahon
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Senior Vice President and Chief Financial Officer
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Date:
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May 29, 2020
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/s/ Michael R. McMullen
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Michael R. McMullen
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Director and Chief Executive Officer
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Date:
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May 29, 2020
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/s/ Robert W. McMahon
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Robert W. McMahon
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Senior Vice President and Chief Financial Officer
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