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Delaware
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001-36334
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46-4254555
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(State or other jurisdiction
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(Commission
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(IRS Employer
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of incorporation)
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File Number)
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Identification No.)
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1400 Fountaingrove Parkway Santa Rosa CA
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95403
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(Address of principal executive offices)
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(Zip Code)
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Title of each class
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Trading symbol
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Name on each exchange on which registered
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Common Stock
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KEYS
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New York Stock Exchange, Inc.
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par value $0.01 per share
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•
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Exhibit 99.1 Revised Item 1. Business
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•
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Exhibit 99.2 Revised Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations
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•
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Exhibit 99.3 Revised Item 8. Financial Statements and Supplementary Data
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Exhibit No.
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Description
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101.INS
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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.
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101.SCH
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XBRL Extension Schema Document
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101.CAL
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XBRL Extension Calculation Linkbase Document
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101.LAB
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XBRL Extension Label Linkbase Document
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101.PRE
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XBRL Extension Presentation Linkbase Document
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101.DEF
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XBRL Extension Definition Linkbase Document
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KEYSIGHT TECHNOLOGIES, INC.
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By:
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/s/ Jeffrey K. Li
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Name:
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Jeffrey K. Li
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Title:
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Vice President, Acting General Counsel and
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Assistant Secretary
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Date: June 25, 2019
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Exhibit No.
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Description
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101.INS
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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.
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101.SCH
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XBRL Extension Schema Document
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101.CAL
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XBRL Extension Calculation Linkbase Document
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101.LAB
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XBRL Extension Label Linkbase Document
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101.PRE
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XBRL Extension Presentation Linkbase Document
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101.DEF
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XBRL Extension Definition Linkbase Document
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•
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New wireless communication measurement solutions. We are investing in the development of new wireless communications test solutions to satisfy the commercial communications end market, which is being driven by growth in mobile data and evolving wireless standards, particularly 5G. With our technical breadth and expertise and strategic engagement with market-leading customers and partners around the world, we have leading-edge solutions for 5G applications available and have been first to market with many 5G solutions.
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•
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New automotive design and measurement solutions. We are actively investing in the development of new automotive test solutions to address the rapidly emerging electric, hybrid electric, connected and autonomous vehicle segments. In support of this strategy, over the prior two years, we have introduced 70 new solutions covering vehicle intelligence, connectivity, power and security. With the addition of ScienLab, we significantly enhanced our ability to deliver application-optimized, customer-specific test solutions for the development and production of charging technology and infrastructure, energy storages, battery management systems, inverters, and DC/DC converters.
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•
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First-to-market network test solutions. The rapidly growing number of high-speed, connected devices requires service providers and data center operators to continuously update their networks to deliver higher levels of data transfer
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•
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Technology Leadership as a Competitive Differentiator. Proprietary software and hardware technologies unavailable on the commercial market and developed by our fourteen research and development centers around the world enable many Keysight products to deliver the best design and measurement solution capability available for our customers’ engineering requirements. Keysight’s technology leadership is noteworthy because we strive to deliver first-to-market solutions for our customers, ahead of our competition, allowing the customer to also be first with their products, gaining a competitive advantage. Built on an intellectual property foundation developed over several decades, Keysight’s EDA computer aided design software for radio and microwave frequency designs is the premiere tool used by over two-thirds of the world’s engineers doing design work in this field. Some of Keysight’s hardware technologies are designed and manufactured in our own in-house integrated circuit fabrication facilities, which were purpose-built and optimized to deliver unmatched performance and capabilities across the broad portfolio of Keysight instruments. Once developed, these technologies can be deployed into multiple-instrument form factors, which include feature-rich instruments, modular instruments and handheld portable instruments. For Keysight, deploying technology across all instrument form factors provides multiple revenue streams from a single technology investment. Keysight is recognized as being a technology leader in six core product instrumentation categories: RF and Microwave Design Simulation software, Network Test, Network Analyzers, Oscilloscopes, Signal Analyzers and Signal Sources.
|
•
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Broad Portfolio of Solutions to Address Customer Needs. Keysight has the broadest portfolio of electronic design and test solutions in the industry. Our hardware product portfolio spans many technologies, price points and form factors. We address time and frequency domain applications with RF, microwave, high-speed digital and general instrumentation. In addition, we have a broad portfolio of software products to enable customer success, including EDA software for RF and high-speed digital design, software tools for programming and a broad range of measurement application solutions. These help our customers make specific measurements quickly and consistently. Keysight is recognized as being a leader across our five key markets: commercial communications, aerospace, defense and government, electronic industrial, network test and visibility, and services.
|
•
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Industry-Leading Commitment to Product Quality and Reliability. Keysight has a reputation in the industry for high-quality and high-reliability electronic measurement instrumentation and software. Ensuring quality and reliability is an integral part of our new product development processes.
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•
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Large Installed Base. We have a large worldwide installed base of equipment because of the breadth of our solutions portfolio and our long history of producing high-performance and high-quality solutions. This installed base enables a strong and growing Services Solutions Group, which provides a wide range of calibration and repair services, on both a per incident and contract basis, and provides a significant source of loyal customers for future sales.
|
•
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Sales Channel with Global Reach. We have a worldwide and comprehensive sales channel. We have experienced management teams and highly technical sales and application engineers in all parts of the world, including a strong local presence in emerging markets. Our sales channel strategy is segmented by customer size, customer location and product characteristics. We deploy a direct sales organization focused on selling high performance products and industry solutions to global and geographic accounts. Most of our sales in international markets are made by foreign sales subsidiaries. In countries with low sales volumes, sales are made through various representatives and distributors. However, we also sell into international markets directly from the United States. Approximately 75 percent of our business comes from customer interactions with our direct sales organization. To ensure broad geographic coverage and further drive growth, we maintain a network of over 650 channel partners to complement our direct sales force.
|
•
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Centralized Order Fulfillment. Our order fulfillment organization allows us to leverage the scale and scope of our business to provide high-quality, market-leading instrument solutions to our customers while generating competitive gross margins. Keysight has a central order fulfillment organization that supplies solutions to customers across geographies. Our Penang,
|
•
|
Business Model. Our operating model incorporates a substantial amount of cost structure flexibility with the intent to be materially profitable across a range of economic and market conditions. Our variable compensation programs, sales channel strategy and the outsourced components of our supply chain have been implemented to improve the flexibility of our cost structure.
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•
|
Accredited Product Support Services. Comprehensive support services that include repair, parts, and accredited calibrations of Keysight and non-Keysight test equipment.
|
•
|
Professional Services. Training and engineering services to optimize equipment adoption, utilization, and design and test processes.
|
•
|
Re-manufactured Equipment. Refurbished used equipment, including Keysight Premium Used, which ensures the same high quality as our new equipment.
|
•
|
Accredited Product Support Services. Comprehensive support services that include repair, parts, and accredited calibrations of Keysight and non-Keysight test equipment.
|
•
|
Professional Services. Training and engineering services to optimize equipment adoption, utilization, and design and test processes.
|
•
|
Re-manufactured Equipment. Refurbished used equipment, including Keysight Premium Used, which ensures the same high quality as our new equipment.
|
|
Year Ended October 31,
|
|
2018 over 2017 % Change
|
|
2017 over 2016 % Change
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
|
|||||||||
|
(in millions)
|
|
|
|
|
||||||||||
Orders
|
$
|
4,082
|
|
|
$
|
3,406
|
|
|
$
|
2,953
|
|
|
20%
|
|
15%
|
Net revenue:
|
|
|
|
|
|
|
|
|
|
||||||
Products
|
$
|
3,229
|
|
|
$
|
2,664
|
|
|
$
|
2,440
|
|
|
21%
|
|
9%
|
Services and other
|
649
|
|
|
525
|
|
|
478
|
|
|
24%
|
|
10%
|
|||
Total net revenue
|
$
|
3,878
|
|
|
$
|
3,189
|
|
|
$
|
2,918
|
|
|
22%
|
|
9%
|
|
Year Ended October 31,
|
|
2018 over 2017 % Change
|
|
2017 over 2016 % Change
|
|||||||
|
2018
|
|
2017
|
|
2016
|
|
||||||
% of total net revenue:
|
|
|
|
|
|
|
|
|
|
|||
Products
|
83
|
%
|
|
84
|
%
|
|
84
|
%
|
|
(1) ppt
|
|
—
|
Services and other
|
17
|
%
|
|
16
|
%
|
|
16
|
%
|
|
1 ppt
|
|
—
|
Total
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
|
|
|
|
Year over Year % Change
|
||||||||||
|
2018 over 2017
|
|
2017 over 2016
|
||||||||
Geographic Region
|
actual
|
|
currency adjusted
|
|
actual
|
|
currency adjusted
|
||||
Americas
|
28
|
%
|
|
28
|
%
|
|
11
|
%
|
|
11
|
%
|
Europe
|
29
|
%
|
|
25
|
%
|
|
6
|
%
|
|
7
|
%
|
Japan
|
—
|
|
|
(1
|
)%
|
|
5
|
%
|
|
6
|
%
|
Asia Pacific ex-Japan
|
17
|
%
|
|
16
|
%
|
|
11
|
%
|
|
11
|
%
|
Total revenue
|
22
|
%
|
|
20
|
%
|
|
9
|
%
|
|
10
|
%
|
|
Year Ended October 31,
|
|
2018 over 2017
% Change |
|
2017 over 2016
% Change |
|||||||
|
2018
|
|
2017
|
|
2016
|
|
||||||
Gross margin on products
|
55.1
|
%
|
|
54.6
|
%
|
|
57.0
|
%
|
|
— ppt
|
|
(2) ppts
|
Gross margin on services and other
|
51.1
|
%
|
|
46.3
|
%
|
|
47.0
|
%
|
|
5 ppts
|
|
(1) ppt
|
Total gross margin
|
54.4
|
%
|
|
53.2
|
%
|
|
55.4
|
%
|
|
1 ppt
|
|
(2) ppts
|
Operating margin
|
(10.2
|
)%
|
|
4.6
|
%
|
|
12.9
|
%
|
|
(15) ppts
|
|
(8) ppts
|
(in millions)
|
|
|
|
|
|
|
|
|
|
||||||
Research and development
|
$
|
624
|
|
|
$
|
507
|
|
|
$
|
434
|
|
|
23%
|
|
17%
|
Selling, general and administrative
|
$
|
1,205
|
|
|
$
|
1,058
|
|
|
$
|
832
|
|
|
14%
|
|
27%
|
Goodwill impairment
|
$
|
709
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
—
|
|
—
|
Other operating expense (income), net
|
$
|
(33
|
)
|
|
$
|
(16
|
)
|
|
$
|
(25
|
)
|
|
105%
|
|
(35)%
|
|
Year Ended October 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
(in millions)
|
||||||||||
Provision (benefit) for income taxes
|
$
|
(576
|
)
|
|
$
|
77
|
|
|
$
|
31
|
|
|
Year Ended October 31,
|
|
2018 over 2017 % Change
|
|
2017 over 2016 % Change
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
|
|||||||||
|
(in millions)
|
|
|
|
|
||||||||||
Total net revenue
|
$
|
2,392
|
|
|
$
|
2,064
|
|
|
$
|
2,060
|
|
|
16%
|
|
—%
|
|
Year Ended October 31,
|
|
2018 over 2017 % Change
|
|
2017 over 2016 % Change
|
|||||||
|
2018
|
|
2017
|
|
2016
|
|
||||||
Total gross margin
|
58.5
|
%
|
|
58.1
|
%
|
|
57.6
|
%
|
|
— ppt
|
|
1 ppt
|
Operating margin
|
19.8
|
%
|
|
16.8
|
%
|
|
16.5
|
%
|
|
3 ppts
|
|
—
|
(in millions)
|
|
|
|
|
|
|
|
|
|
||||||
Research and development
|
$
|
345
|
|
|
$
|
310
|
|
|
$
|
313
|
|
|
11%
|
|
(1)%
|
Selling, general and administrative
|
$
|
590
|
|
|
$
|
551
|
|
|
$
|
544
|
|
|
7%
|
|
1%
|
Other operating expense (income), net
|
$
|
(9
|
)
|
|
$
|
(9
|
)
|
|
$
|
(11
|
)
|
|
5%
|
|
(18)%
|
Income from operations
|
$
|
474
|
|
|
$
|
347
|
|
|
$
|
340
|
|
|
36%
|
|
2%
|
|
Year Ended October 31,
|
|
2018 over 2017 % Change
|
|
2017 over 2016 % Change
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
|
|||||||||
|
(in millions)
|
|
|
|
|
||||||||||
Total net revenue
|
$
|
1,071
|
|
|
$
|
929
|
|
|
$
|
870
|
|
|
15%
|
|
7%
|
|
Year Ended October 31,
|
|
2018 over 2017 % Change
|
|
2017 over 2016 % Change
|
|||||||
|
2018
|
|
2017
|
|
2016
|
|
||||||
Total gross margin
|
58.9
|
%
|
|
59.0
|
%
|
|
56.9
|
%
|
|
— ppt
|
|
2 ppts
|
Operating margin
|
22.9
|
%
|
|
22.5
|
%
|
|
20.1
|
%
|
|
— ppt
|
|
2 ppts
|
(in millions)
|
|
|
|
|
|
|
|
|
|
||||||
Research and development
|
$
|
145
|
|
|
$
|
123
|
|
|
$
|
112
|
|
|
17%
|
|
10%
|
Selling, general and administrative
|
$
|
245
|
|
|
$
|
219
|
|
|
$
|
212
|
|
|
11%
|
|
4%
|
Other operating expense (income), net
|
$
|
(4
|
)
|
|
$
|
(4
|
)
|
|
$
|
(4
|
)
|
|
5%
|
|
(1)%
|
Income from operations
|
$
|
245
|
|
|
$
|
209
|
|
|
$
|
175
|
|
|
18%
|
|
20%
|
|
Year Ended October 31,
|
|
2018 over 2017
% Change |
|
2017 over 2016
% Change |
||||||||||
|
2018
|
|
2017
|
|
2016
|
|
|||||||||
Total gross margin
|
74.2
|
%
|
|
76.5
|
%
|
|
—
|
|
|
n/a
|
|
n/a
|
|||
Operating margin
|
3.6
|
%
|
|
16.3
|
%
|
|
—
|
|
|
n/a
|
|
n/a
|
|||
|
|
|
|
|
|
|
|
|
|
||||||
(in millions)
|
|
|
|
|
|
|
|
|
|
||||||
Net revenue
|
$
|
451
|
|
|
$
|
256
|
|
|
$
|
—
|
|
|
n/a
|
|
n/a
|
Research and development
|
$
|
119
|
|
|
$
|
51
|
|
|
$
|
—
|
|
|
n/a
|
|
n/a
|
Selling, general and administrative
|
$
|
199
|
|
|
$
|
103
|
|
|
$
|
—
|
|
|
n/a
|
|
n/a
|
Other operating expense (income), net
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
n/a
|
|
n/a
|
Income from operations
|
$
|
16
|
|
|
$
|
42
|
|
|
$
|
—
|
|
|
n/a
|
|
n/a
|
•
|
Net income in 2018 increased by $63 million as compared to 2017. Non-cash adjustments in 2018 increased $111 million compared to the same period last year, due to a $709 million goodwill impairment, a $74 million increase in amortization expense, a $70 million increase from a prior-period pension curtailment and settlement gain, an $11 million increase in depreciation expense and $1 million from other miscellaneous non-cash activities, partially offset by $742 million reduction in the adjustment for deferred tax benefits and $12 million gain on the sale of assets and divestitures.
|
•
|
The aggregate of accounts receivable, inventory and accounts payable used net cash of $128 million during 2018, compared to net cash used of zero in 2017 and $72 million in 2016. The amount of cash flow generated from or used by the aggregate of accounts receivable, inventory and accounts payable depends on the cash conversion cycle, which represents the number of days that elapse from the day we pay for the purchase of raw materials and components to the collection of cash from our customers and can be significantly impacted by the timing of shipments and purchases, as well as collections and payments in a period.
|
•
|
The aggregate of employee compensation and benefits, income taxes payable, deferred revenue, and other assets and liabilities provided net operating cash of $335 million during 2018 as compared to net cash provided of $42 million and net cash used of $22 million in 2017 and 2016, respectively. The difference between 2018 and 2017 activities is primarily due to an increase in the U.S. federal income tax payable due to the impact of new U.S. tax legislation, higher variable compensation accruals and other differences due to timing of accruals, collections and payments between the periods. In 2018, we received insurance proceeds of $68 million for expenses associated with the northern California wildfires, which partially offset estimated insurance recoveries of $90 million during the period. At October 31, 2018 our insurance receivable was $24 million for known losses for which insurance reimbursement is probable. In addition, in 2018, we received insurance proceeds of $26 million for losses incurred in a 2016 warehouse fire in Singapore.
|
•
|
Net cash used for retirement and post-retirement benefits was $127 million, $15 million and $32 million in 2018, 2017 and 2016, respectively. In 2018, we made an accelerated contribution of $85 million to our U.S. Defined Benefit Plans to secure tax deductibility at the current corporate rate prior to new tax legislation taking effect, as compared to zero contributions in 2017 and 2016. We also contributed $33 million to our non-U.S. defined benefit plans during 2018
|
|
Total
|
|
Less than one
year
|
|
One to three years
|
|
Three to five years
|
|
More than five years
|
||||||||||
|
(in millions)
|
||||||||||||||||||
Debt obligations
|
$
|
1,800
|
|
|
$
|
500
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,300
|
|
Interest payments on debt
|
452
|
|
|
76
|
|
|
119
|
|
|
119
|
|
|
138
|
|
|||||
Operating lease commitments
|
191
|
|
|
44
|
|
|
65
|
|
|
36
|
|
|
46
|
|
|||||
Capital lease commitments
|
5
|
|
|
1
|
|
|
1
|
|
|
1
|
|
|
2
|
|
|||||
Commitments to contract manufacturers and suppliers
|
376
|
|
|
375
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|||||
Retirement plans
|
33
|
|
|
33
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
US transition tax liability
|
89
|
|
|
4
|
|
|
15
|
|
|
15
|
|
|
55
|
|
|||||
Other purchase commitments
|
59
|
|
|
59
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total
|
$
|
3,005
|
|
|
$
|
1,092
|
|
|
$
|
201
|
|
|
$
|
171
|
|
|
$
|
1,541
|
|
Index to Consolidated Financial Statements
|
|
Page
|
|
|
|
Consolidated Financial Statements:
|
|
|
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
|
Year Ended October 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Net revenue:
|
|
|
|
|
|
||||||
Products
|
$
|
3,229
|
|
|
$
|
2,664
|
|
|
$
|
2,440
|
|
Services and other
|
649
|
|
|
525
|
|
|
478
|
|
|||
Total net revenue
|
3,878
|
|
|
3,189
|
|
|
2,918
|
|
|||
Costs and expenses:
|
|
|
|
|
|
||||||
Cost of products
|
1,449
|
|
|
1,210
|
|
|
1,049
|
|
|||
Cost of services and other
|
318
|
|
|
282
|
|
|
253
|
|
|||
Total costs
|
1,767
|
|
|
1,492
|
|
|
1,302
|
|
|||
Research and development
|
624
|
|
|
507
|
|
|
434
|
|
|||
Selling, general and administrative
|
1,205
|
|
|
1,058
|
|
|
832
|
|
|||
Goodwill impairment
|
709
|
|
|
—
|
|
|
—
|
|
|||
Other operating expense (income), net
|
(33
|
)
|
|
(16
|
)
|
|
(25
|
)
|
|||
Total costs and expenses
|
4,272
|
|
|
3,041
|
|
|
2,543
|
|
|||
Income (loss) from operations
|
(394
|
)
|
|
148
|
|
|
375
|
|
|||
Interest income
|
12
|
|
|
7
|
|
|
3
|
|
|||
Interest expense
|
(83
|
)
|
|
(80
|
)
|
|
(47
|
)
|
|||
Other income (expense), net
|
54
|
|
|
104
|
|
|
35
|
|
|||
Income (loss) before taxes
|
(411
|
)
|
|
179
|
|
|
366
|
|
|||
Provision (benefit) for income taxes
|
(576
|
)
|
|
77
|
|
|
31
|
|
|||
Net income
|
$
|
165
|
|
|
$
|
102
|
|
|
$
|
335
|
|
|
|
|
|
|
|
||||||
Net income per share:
|
|
|
|
|
|
||||||
Basic
|
$
|
0.88
|
|
|
$
|
0.57
|
|
|
$
|
1.97
|
|
Diluted
|
$
|
0.86
|
|
|
$
|
0.56
|
|
|
$
|
1.95
|
|
|
|
|
|
|
|
||||||
Weighted average shares used in computing net income per share:
|
|
|
|
|
|
||||||
Basic
|
187
|
|
|
180
|
|
|
170
|
|
|||
Diluted
|
191
|
|
|
182
|
|
|
172
|
|
|
Year Ended October 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Net income
|
$
|
165
|
|
|
$
|
102
|
|
|
$
|
335
|
|
Other comprehensive income (loss):
|
|
|
|
|
|
||||||
Unrealized gain (loss) on investments, net of tax benefit (expense) of $3, $(1) and $2
|
(14
|
)
|
|
4
|
|
|
(11
|
)
|
|||
Unrealized gain (loss) on derivative instruments, net of tax benefit (expense) of zero, $(2) and $2
|
—
|
|
|
4
|
|
|
(5
|
)
|
|||
Amounts reclassified into earnings related to derivative instruments, net of tax benefit (expense) of $1, $(1) and $(4)
|
(3
|
)
|
|
—
|
|
|
8
|
|
|||
Foreign currency translation, net of tax benefit (expense) of zero
|
(21
|
)
|
|
(10
|
)
|
|
19
|
|
|||
Net defined benefit pension cost and post retirement plan costs:
|
|
|
|
|
|
||||||
Change in actuarial net gain (loss), net of tax benefit (expense) of $(7), $(68) and $53
|
23
|
|
|
178
|
|
|
(135
|
)
|
|||
Change in net prior service credit, net of tax benefit of $6, $9 and $10
|
(16
|
)
|
|
(15
|
)
|
|
(15
|
)
|
|||
Other comprehensive income (loss)
|
(31
|
)
|
|
161
|
|
|
(139
|
)
|
|||
Total comprehensive income
|
$
|
134
|
|
|
$
|
263
|
|
|
$
|
196
|
|
|
October 31,
|
||||||
|
2018
|
|
2017
|
||||
ASSETS
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
913
|
|
|
$
|
818
|
|
Accounts receivable, net
|
624
|
|
|
547
|
|
||
Inventory
|
619
|
|
|
588
|
|
||
Other current assets
|
222
|
|
|
224
|
|
||
Total current assets
|
2,378
|
|
|
2,177
|
|
||
Property, plant and equipment, net
|
555
|
|
|
530
|
|
||
Goodwill
|
1,171
|
|
|
1,882
|
|
||
Other intangible assets, net
|
645
|
|
|
855
|
|
||
Long-term investments
|
46
|
|
|
63
|
|
||
Long-term deferred tax assets
|
750
|
|
|
186
|
|
||
Other assets
|
279
|
|
|
240
|
|
||
Total assets
|
$
|
5,824
|
|
|
$
|
5,933
|
|
LIABILITIES AND EQUITY
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Short-term and current portion of long-term debt
|
$
|
499
|
|
|
$
|
10
|
|
Accounts payable
|
242
|
|
|
211
|
|
||
Employee compensation and benefits
|
276
|
|
|
217
|
|
||
Deferred revenue
|
334
|
|
|
291
|
|
||
Income and other taxes payable
|
42
|
|
|
28
|
|
||
Other accrued liabilities
|
69
|
|
|
62
|
|
||
Total current liabilities
|
1,462
|
|
|
819
|
|
||
Long-term debt
|
1,291
|
|
|
2,038
|
|
||
Retirement and post-retirement benefits
|
224
|
|
|
309
|
|
||
Long-term deferred revenue
|
127
|
|
|
101
|
|
||
Other long-term liabilities
|
287
|
|
|
356
|
|
||
Total liabilities
|
3,391
|
|
|
3,623
|
|
||
Commitments and contingencies (Note 16)
|
|
|
|
|
|
||
Stockholders' equity:
|
|
|
|
||||
Preferred stock; $0.01 par value; 100 million shares authorized; none issued and outstanding
|
—
|
|
|
—
|
|
||
Common stock; $0.01 par value; 1 billion shares authorized; 191 million shares at October 31, 2018, and 188 million shares at October 31, 2017 issued
|
2
|
|
|
2
|
|
||
Treasury stock at cost; 4.4 million shares at October 31, 2018 and 2.3 million shares at October 31, 2017
|
(182
|
)
|
|
(62
|
)
|
||
Additional paid-in-capital
|
1,889
|
|
|
1,786
|
|
||
Retained earnings
|
1,212
|
|
|
1,041
|
|
||
Accumulated other comprehensive loss
|
(488
|
)
|
|
(457
|
)
|
||
Total stockholders' equity
|
2,433
|
|
|
2,310
|
|
||
Total liabilities and equity
|
$
|
5,824
|
|
|
$
|
5,933
|
|
|
Year Ended October 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Cash flows from operating activities:
|
|
|
|
|
|
||||||
Net income
|
$
|
165
|
|
|
$
|
102
|
|
|
$
|
335
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
||||||
Depreciation
|
103
|
|
|
92
|
|
|
85
|
|
|||
Amortization
|
207
|
|
|
133
|
|
|
49
|
|
|||
Share-based compensation
|
59
|
|
|
56
|
|
|
49
|
|
|||
Debt issuance expense
|
—
|
|
|
9
|
|
|
—
|
|
|||
Deferred tax expense (benefit)
|
(789
|
)
|
|
(47
|
)
|
|
17
|
|
|||
Excess and obsolete inventory related charges
|
25
|
|
|
16
|
|
|
17
|
|
|||
Gain on sale of assets and divestitures
|
(20
|
)
|
|
(8
|
)
|
|
(10
|
)
|
|||
Goodwill impairment
|
709
|
|
|
—
|
|
|
—
|
|
|||
Pension curtailment and settlement loss (gain)
|
1
|
|
|
(69
|
)
|
|
—
|
|
|||
Other non-cash expenses, net
|
15
|
|
|
17
|
|
|
4
|
|
|||
Changes in assets and liabilities:
|
|
|
|
|
|
||||||
Accounts receivable
|
(89
|
)
|
|
(11
|
)
|
|
(42
|
)
|
|||
Inventory
|
(61
|
)
|
|
(4
|
)
|
|
(22
|
)
|
|||
Accounts payable
|
22
|
|
|
15
|
|
|
(8
|
)
|
|||
Employee compensation and benefits
|
63
|
|
|
(1
|
)
|
|
16
|
|
|||
Deferred revenue
|
75
|
|
|
90
|
|
|
15
|
|
|||
Income taxes payable
|
181
|
|
|
3
|
|
|
(9
|
)
|
|||
Retirement and post-retirement benefits
|
(127
|
)
|
|
(15
|
)
|
|
(32
|
)
|
|||
Other assets and liabilities
|
16
|
|
|
(50
|
)
|
|
(44
|
)
|
|||
Net cash provided by operating activities
|
555
|
|
|
328
|
|
|
420
|
|
|||
|
|
|
|
|
|
||||||
Cash flows from investing activities:
|
|
|
|
|
|
||||||
Purchases of property, plant and equipment
|
(132
|
)
|
|
(72
|
)
|
|
(91
|
)
|
|||
Proceeds from the sale of assets and divestitures
|
29
|
|
|
8
|
|
|
10
|
|
|||
Acquisitions of businesses and intangible assets, net of cash acquired
|
(11
|
)
|
|
(1,702
|
)
|
|
(10
|
)
|
|||
Proceeds from the sale of investments
|
—
|
|
|
45
|
|
|
1
|
|
|||
Other investing activities
|
(2
|
)
|
|
(1
|
)
|
|
—
|
|
|||
Net cash used in investing activities
|
(116
|
)
|
|
(1,722
|
)
|
|
(90
|
)
|
|||
|
|
|
|
|
|
||||||
Cash flows from financing activities:
|
|
|
|
|
|
||||||
Issuance of common stock under employee stock plans
|
64
|
|
|
51
|
|
|
43
|
|
|||
Issuance of common stock under public offerings
|
—
|
|
|
444
|
|
|
—
|
|
|||
Payment of taxes related to net share settlement of equity awards
|
(18
|
)
|
|
(12
|
)
|
|
(9
|
)
|
|||
Treasury stock repurchases
|
(120
|
)
|
|
—
|
|
|
(62
|
)
|
|||
Proceeds from issuance of long-term debt
|
—
|
|
|
1,069
|
|
|
—
|
|
|||
Debt issuance costs
|
—
|
|
|
(16
|
)
|
|
—
|
|
|||
Proceeds from short-term borrowings
|
40
|
|
|
212
|
|
|
—
|
|
|||
Repayment of debt and credit facility
|
(300
|
)
|
|
(323
|
)
|
|
(1
|
)
|
|||
Other financing activities
|
(1
|
)
|
|
—
|
|
|
—
|
|
|||
Net cash provided by/(used in) financing activities
|
(335
|
)
|
|
1,425
|
|
|
(29
|
)
|
|||
Effect of exchange rate movements
|
(9
|
)
|
|
4
|
|
|
(1
|
)
|
|||
Net increase in cash and cash equivalents
|
95
|
|
|
35
|
|
|
300
|
|
|||
Cash and cash equivalents at beginning of year
|
818
|
|
|
783
|
|
|
483
|
|
|||
Cash and cash equivalents at end of year
|
$
|
913
|
|
|
$
|
818
|
|
|
$
|
783
|
|
|
Common Stock
|
|
Treasury Stock
|
|
|
|
|
|
|
||||||||||||||||||||
|
Number of Shares
|
|
Par Value
|
|
Additional Paid-in Capital
|
|
Number of Shares
|
|
Treasury Stock at Cost
|
|
Retained Earnings
|
|
Accumulated Other Comprehensive Income/(Loss)
|
|
Total Stockholders' Equity
|
||||||||||||||
Balance as of October 31, 2015
|
169,591
|
|
|
$
|
2
|
|
|
$
|
1,165
|
|
|
—
|
|
|
$
|
—
|
|
|
$
|
614
|
|
|
$
|
(479
|
)
|
|
$
|
1,302
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
335
|
|
|
—
|
|
|
335
|
|
||||||
Other comprehensive loss, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(139
|
)
|
|
(139
|
)
|
||||||
Issuance of common stock
|
2,696
|
|
|
—
|
|
|
34
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
34
|
|
||||||
Share-based compensation
|
—
|
|
|
—
|
|
|
48
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
48
|
|
||||||
Tax deficiency from share-based awards issued
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
||||||
Repurchase of common stock
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,289
|
)
|
|
(62
|
)
|
|
—
|
|
|
—
|
|
|
(62
|
)
|
||||||
Balance as of October 31, 2016
|
172,287
|
|
|
2
|
|
|
1,242
|
|
|
(2,289
|
)
|
|
(62
|
)
|
|
949
|
|
|
(618
|
)
|
|
1,513
|
|
||||||
Adjustment due to adoption of ASU 2016-16
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
—
|
|
(10
|
)
|
|
—
|
|
|
(10
|
)
|
||||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
102
|
|
|
—
|
|
|
102
|
|
||||||
Other comprehensive income, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
161
|
|
|
161
|
|
||||||
Issuance of common stock
|
2,880
|
|
|
—
|
|
|
41
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
41
|
|
||||||
Public offering of common stock
|
13,143
|
|
|
—
|
|
|
444
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
444
|
|
||||||
Share-based compensation
|
—
|
|
|
—
|
|
|
56
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
56
|
|
||||||
Tax benefits from share-based awards issued
|
—
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
||||||
Balance as of October 31, 2017
|
188,310
|
|
|
2
|
|
|
1,786
|
|
|
(2,289
|
)
|
|
(62
|
)
|
|
1,041
|
|
|
(457
|
)
|
|
2,310
|
|
||||||
Adjustment due to adoption of ASU 2016-09
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
6
|
|
||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
165
|
|
|
—
|
|
|
165
|
|
||||||
Other comprehensive loss, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(31
|
)
|
|
(31
|
)
|
||||||
Issuance of common stock
|
2,894
|
|
|
—
|
|
|
44
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
44
|
|
||||||
Share-based compensation
|
—
|
|
|
—
|
|
|
59
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
59
|
|
||||||
Repurchase of common stock
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,075
|
)
|
|
(120
|
)
|
|
—
|
|
|
—
|
|
|
(120
|
)
|
||||||
Balance as of October 31, 2018
|
191,204
|
|
|
$
|
2
|
|
|
$
|
1,889
|
|
|
(4,364
|
)
|
|
$
|
(182
|
)
|
|
$
|
1,212
|
|
|
$
|
(488
|
)
|
|
$
|
2,433
|
|
1.
|
OVERVIEW, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
|
2.
|
NEW ACCOUNTING PRONOUNCEMENTS
|
|
Year Ended October 31,
|
||||||||||||||||||||||
|
2017
|
|
2016
|
||||||||||||||||||||
|
As Originally
Reported |
|
As
Adjusted |
|
Change
|
|
As Originally
Reported |
|
As
Adjusted |
|
Change
|
||||||||||||
|
(in millions)
|
||||||||||||||||||||||
Net cash provided by operating activities
|
$
|
313
|
|
|
$
|
328
|
|
|
$
|
15
|
|
|
$
|
416
|
|
|
$
|
420
|
|
|
$
|
4
|
|
Net cash provided by/(used in) financing activities
|
$
|
1,440
|
|
|
$
|
1,425
|
|
|
$
|
(15
|
)
|
|
$
|
(25
|
)
|
|
$
|
(29
|
)
|
|
$
|
(4
|
)
|
|
2018
|
|
2017
|
|
2016
|
||||||||||||||||||
|
As Originally Reported
|
|
As Adjusted
|
|
As Originally Reported
|
|
As Adjusted
|
|
As Originally Reported
|
|
As Adjusted
|
||||||||||||
|
(in millions)
|
||||||||||||||||||||||
Cost of products
|
$
|
1,440
|
|
|
$
|
1,449
|
|
|
$
|
1,206
|
|
|
$
|
1,210
|
|
|
$
|
1,042
|
|
|
$
|
1,049
|
|
Cost of services
|
316
|
|
|
318
|
|
|
281
|
|
|
282
|
|
|
252
|
|
|
253
|
|
||||||
Research and development
|
607
|
|
|
624
|
|
|
498
|
|
|
507
|
|
|
425
|
|
|
434
|
|
||||||
Selling, general and administrative
|
1,185
|
|
|
1,205
|
|
|
1,049
|
|
|
1,058
|
|
|
818
|
|
|
832
|
|
||||||
Other operating expense (income), net
|
(33
|
)
|
|
(33
|
)
|
|
(84
|
)
|
|
(16
|
)
|
|
(25
|
)
|
|
(25
|
)
|
||||||
Other income (expense), net
|
6
|
|
|
54
|
|
|
13
|
|
|
104
|
|
|
4
|
|
|
35
|
|
3.
|
ACQUISITIONS
|
Cash and cash equivalents
|
$
|
72
|
|
Short-term investments
|
44
|
|
|
Accounts receivable
|
91
|
|
|
Inventory
|
107
|
|
|
Other current assets
|
34
|
|
|
Property, plant and equipment
|
50
|
|
|
Goodwill
|
1,117
|
|
|
Other intangible assets
|
744
|
|
|
Other assets
|
4
|
|
|
Total assets acquired
|
2,263
|
|
|
Accounts payable
|
(10
|
)
|
|
Employee compensation and benefits
|
(32
|
)
|
|
Deferred revenue
|
(35
|
)
|
|
Income and other taxes payable
|
(1
|
)
|
|
Other accrued liabilities
|
(32
|
)
|
|
Other long-term liabilities
|
(459
|
)
|
|
Net assets acquired
|
$
|
1,694
|
|
|
Estimated Fair Value
|
|
Estimated useful life
|
||
Developed product technology
|
$
|
423
|
|
|
4 years
|
Customer relationships
|
234
|
|
|
7 years
|
|
Tradenames and trademarks
|
12
|
|
|
3 years
|
|
Backlog
|
8
|
|
|
90 days
|
|
Total intangible assets subject to amortization
|
677
|
|
|
|
|
In-process research and development
|
67
|
|
|
|
|
Total intangible assets
|
$
|
744
|
|
|
|
Cash and cash equivalents
|
$
|
2
|
|
Accounts receivable
|
3
|
|
|
Inventory
|
16
|
|
|
Other current assets
|
1
|
|
|
Goodwill
|
23
|
|
|
Other intangible assets
|
40
|
|
|
Total assets acquired
|
85
|
|
|
Accounts payable
|
(1
|
)
|
|
Deferred revenue
|
(3
|
)
|
|
Income and other taxes payable
|
(2
|
)
|
|
Current portion of long-term debt
|
(1
|
)
|
|
Other long-term liabilities
|
(16
|
)
|
|
Net assets acquired
|
$
|
62
|
|
|
Estimated Fair Value
|
|
Estimated useful life
|
||
Developed product technology
|
$
|
33
|
|
|
6 years
|
Customer relationships
|
4
|
|
|
5 years
|
|
Non-compete agreements
|
1
|
|
|
3 years
|
|
Tradenames and trademarks
|
1
|
|
|
3 years
|
|
Backlog
|
1
|
|
|
6 months
|
|
Total intangible assets
|
$
|
40
|
|
|
|
|
Year Ended
|
||||||
|
October 31,
|
||||||
|
2017
|
|
2016
|
||||
Net revenue
|
$
|
3,462
|
|
|
$
|
3,413
|
|
Net income
|
$
|
116
|
|
|
$
|
231
|
|
Net income per share - Basic
|
$
|
0.63
|
|
|
$
|
1.26
|
|
Net income per share - Diluted
|
$
|
0.62
|
|
|
$
|
1.25
|
|
4.
|
SHARE-BASED COMPENSATION
|
|
Year Ended October 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
(in millions)
|
||||||||||
Cost of products and services
|
$
|
11
|
|
|
$
|
11
|
|
|
$
|
11
|
|
Research and development
|
10
|
|
|
9
|
|
|
8
|
|
|||
Selling, general and administrative
|
38
|
|
|
36
|
|
|
30
|
|
|||
Total share-based compensation expense
|
$
|
59
|
|
|
$
|
56
|
|
|
$
|
49
|
|
|
Year Ended October 31,
|
||||
|
2018
|
|
2017
|
|
2016
|
Volatility of Keysight shares
|
25%
|
|
27%
|
|
25%
|
Volatility of index/peer group
|
14%
|
|
15%
|
|
14%-54%
|
Price-wise correlation with selected peers
|
57%
|
|
57%
|
|
38%
|
|
Options
Outstanding
|
|
Weighted
Average
Exercise Price
|
|||
|
(in thousands)
|
|
|
|||
Outstanding at October 31, 2017
|
2,354
|
|
|
$
|
27
|
|
Granted
|
—
|
|
|
$
|
—
|
|
Exercised
|
(1,048
|
)
|
|
$
|
26
|
|
Forfeited and expired
|
—
|
|
|
$
|
—
|
|
Outstanding at October 31, 2018
|
1,306
|
|
|
$
|
27
|
|
|
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
|
415
|
|
|
3.1
|
|
$
|
20
|
|
|
$
|
15,505
|
|
|
415
|
|
|
3.1
|
|
$
|
20
|
|
|
$
|
15,505
|
|
$25.01 - 30
|
288
|
|
|
5.1
|
|
$
|
30
|
|
|
7,836
|
|
|
288
|
|
|
5.1
|
|
$
|
30
|
|
|
7,836
|
|
||
$30.01 - 40
|
603
|
|
|
6.0
|
|
$
|
31
|
|
|
15,740
|
|
|
363
|
|
|
6.0
|
|
$
|
31
|
|
|
9,476
|
|
||
|
1,306
|
|
|
4.9
|
|
$
|
27
|
|
|
$
|
39,081
|
|
|
1,066
|
|
|
4.6
|
|
$
|
26
|
|
|
$
|
32,817
|
|
|
Aggregate
Intrinsic Value
|
|
Weighted
Average
Exercise
Price
|
||||
|
(in thousands)
|
|
|
||||
Options exercised in fiscal 2016
|
$
|
5,656
|
|
|
$
|
19
|
|
Options exercised in fiscal 2017
|
$
|
16,385
|
|
|
$
|
20
|
|
Options exercised in fiscal 2018
|
$
|
28,985
|
|
|
$
|
26
|
|
|
Shares
|
|
Weighted
Average
Grant Date Fair Value
|
|||
|
(in thousands)
|
|
|
|||
Non-vested at October 31, 2017
|
3,640
|
|
|
$
|
33
|
|
Granted
|
1,335
|
|
|
$
|
46
|
|
Vested
|
(1,354
|
)
|
|
$
|
33
|
|
Forfeited
|
(155
|
)
|
|
$
|
38
|
|
LTP Program decremental
|
(107
|
)
|
|
$
|
31
|
|
Non-vested at October 31, 2018
|
3,359
|
|
|
$
|
36
|
|
5.
|
INCOME TAXES
|
|
Year Ended October 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
(in millions)
|
||||||||||
U.S. operations
|
$
|
(532
|
)
|
|
$
|
(147
|
)
|
|
$
|
(30
|
)
|
Non-U.S. operations
|
121
|
|
|
326
|
|
|
396
|
|
|||
Total income (loss) before taxes
|
$
|
(411
|
)
|
|
$
|
179
|
|
|
$
|
366
|
|
|
Year Ended October 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
(in millions)
|
||||||||||
U.S. federal taxes:
|
|
|
|
|
|
||||||
Current
|
$
|
131
|
|
|
$
|
21
|
|
|
$
|
(15
|
)
|
Deferred
|
46
|
|
|
(56
|
)
|
|
(13
|
)
|
|||
Non-U.S. taxes:
|
|
|
|
|
|
||||||
Current
|
75
|
|
|
101
|
|
|
32
|
|
|||
Deferred
|
(832
|
)
|
|
9
|
|
|
28
|
|
|||
State taxes, net of federal benefit:
|
|
|
|
|
|
||||||
Current
|
7
|
|
|
2
|
|
|
(1
|
)
|
|||
Deferred
|
(3
|
)
|
|
—
|
|
|
—
|
|
|||
Total provision (benefit) for income taxes
|
$
|
(576
|
)
|
|
$
|
77
|
|
|
$
|
31
|
|
|
October 31,
|
||||||||||||||
|
2018
|
|
2017
|
||||||||||||
|
Deferred
Tax Assets
|
|
Deferred Tax
Liabilities
|
|
Deferred
Tax Assets
|
|
Deferred Tax
Liabilities
|
||||||||
|
(in millions)
|
||||||||||||||
Inventory
|
$
|
14
|
|
|
$
|
—
|
|
|
$
|
16
|
|
|
$
|
(3
|
)
|
Intangibles
|
664
|
|
|
(66
|
)
|
|
55
|
|
|
(158
|
)
|
||||
Property, plant and equipment
|
14
|
|
|
(23
|
)
|
|
16
|
|
|
(20
|
)
|
||||
Warranty reserves
|
11
|
|
|
(1
|
)
|
|
17
|
|
|
(1
|
)
|
||||
Pension benefits
|
47
|
|
|
(67
|
)
|
|
90
|
|
|
(58
|
)
|
||||
Employee benefits, other than retirement
|
27
|
|
|
(1
|
)
|
|
29
|
|
|
(1
|
)
|
||||
Net operating loss, capital loss, and credit carryforwards
|
120
|
|
|
—
|
|
|
257
|
|
|
—
|
|
||||
Unremitted earnings of foreign subsidiaries
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
(305
|
)
|
||||
Share-based compensation
|
14
|
|
|
—
|
|
|
26
|
|
|
—
|
|
||||
Deferred revenue
|
37
|
|
|
(1
|
)
|
|
24
|
|
|
(3
|
)
|
||||
Other
|
11
|
|
|
(1
|
)
|
|
10
|
|
|
(10
|
)
|
||||
Subtotal
|
959
|
|
|
(165
|
)
|
|
540
|
|
|
(559
|
)
|
||||
Tax valuation allowance
|
(79
|
)
|
|
—
|
|
|
(63
|
)
|
|
—
|
|
||||
Total deferred tax assets or deferred tax liabilities
|
$
|
880
|
|
|
$
|
(165
|
)
|
|
$
|
477
|
|
|
$
|
(559
|
)
|
|
Year Ended October 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
(in millions)
|
||||||||||
Profit before tax times statutory rate
|
$
|
(96
|
)
|
|
$
|
63
|
|
|
$
|
128
|
|
State income taxes, net of federal benefit
|
2
|
|
|
1
|
|
|
(1
|
)
|
|||
U.S. federal statutory tax rate change
|
10
|
|
|
—
|
|
|
—
|
|
|||
Non-U.S. income taxed at different rates
|
16
|
|
|
(83
|
)
|
|
(88
|
)
|
|||
Singapore tax incentives and amortization
|
(591
|
)
|
|
—
|
|
|
—
|
|
|||
U.S. transition tax and repatriation of foreign earnings
|
210
|
|
|
5
|
|
|
(42
|
)
|
|||
Foreign earnings not considered indefinitely reinvested
|
5
|
|
|
3
|
|
|
39
|
|
|||
Re-measurement of deferred taxes on foreign earnings not considered indefinitely reinvested
|
(304
|
)
|
|
—
|
|
|
—
|
|
|||
Change in unrecognized tax benefits
|
86
|
|
|
23
|
|
|
1
|
|
|||
U.S. research credits
|
(10
|
)
|
|
(7
|
)
|
|
(5
|
)
|
|||
Share-based compensation
|
(1
|
)
|
|
7
|
|
|
5
|
|
|||
Goodwill impairment
|
99
|
|
|
—
|
|
|
—
|
|
|||
Malaysia tax assessment
|
—
|
|
|
68
|
|
|
—
|
|
|||
Other, net
|
(2
|
)
|
|
(3
|
)
|
|
(6
|
)
|
|||
Provision (benefit) for income taxes
|
$
|
(576
|
)
|
|
$
|
77
|
|
|
$
|
31
|
|
Effective tax rate
|
140
|
%
|
|
43
|
%
|
|
8
|
%
|
|
October 31,
|
||||||
|
2018
|
|
2017
|
||||
|
(in millions)
|
||||||
Current income tax assets (included within other current assets)
|
$
|
32
|
|
|
$
|
40
|
|
Current income tax liabilities (included within income and other taxes payable)
|
(18
|
)
|
|
(7
|
)
|
||
Long-term income tax assets (included within other assets)
|
—
|
|
|
—
|
|
||
Long-term income tax liabilities (included within other long-term liabilities)
|
(205
|
)
|
|
(39
|
)
|
||
Total
|
$
|
(191
|
)
|
|
$
|
(6
|
)
|
|
2018
|
|
2017
|
|
2016
|
||||||
|
(in millions)
|
||||||||||
Balance, beginning of year
|
$
|
146
|
|
|
$
|
51
|
|
|
$
|
50
|
|
Additions due to acquisition
|
—
|
|
|
22
|
|
|
—
|
|
|||
Additions for tax positions related to the current year
|
93
|
|
|
31
|
|
|
5
|
|
|||
Additions for tax positions from prior years
|
2
|
|
|
52
|
|
|
1
|
|
|||
Reductions for tax positions from prior years
|
(1
|
)
|
|
(9
|
)
|
|
(4
|
)
|
|||
Settlements with taxing authorities
|
(12
|
)
|
|
—
|
|
|
—
|
|
|||
Statute of limitations expirations
|
(1
|
)
|
|
(1
|
)
|
|
(1
|
)
|
|||
Balance, end of year
|
$
|
227
|
|
|
$
|
146
|
|
|
$
|
51
|
|
6.
|
NET INCOME PER SHARE
|
|
Year Ended October 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
(in millions)
|
||||||||||
Numerator:
|
|
|
|
|
|
||||||
Net income
|
$
|
165
|
|
|
$
|
102
|
|
|
$
|
335
|
|
Denominator:
|
|
|
|
|
|
||||||
Basic weighted-average shares
|
187
|
|
|
180
|
|
|
170
|
|
|||
Potential common shares— stock options and other employee stock plans
|
4
|
|
|
2
|
|
|
2
|
|
|||
Diluted weighted-average shares
|
191
|
|
|
182
|
|
|
172
|
|
7.
|
SUPPLEMENTAL CASH FLOW INFORMATION
|
|
Year Ended October 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
(in millions)
|
||||||||||
Non-cash investing activities:
|
|
|
|
|
|
||||||
Increase (decrease) in unpaid capital expenditures
|
$
|
10
|
|
|
$
|
(4
|
)
|
|
$
|
(11
|
)
|
Increase in capital lease liabilities
|
—
|
|
|
4
|
|
|
1
|
|
|||
|
$
|
10
|
|
|
$
|
—
|
|
|
$
|
(10
|
)
|
8.
|
INVENTORY
|
|
October 31,
|
||||||
|
2018
|
|
2017
|
||||
|
(in millions)
|
||||||
Finished goods
|
$
|
283
|
|
|
$
|
286
|
|
Purchased parts and fabricated assemblies
|
336
|
|
|
302
|
|
||
Total inventory
|
$
|
619
|
|
|
$
|
588
|
|
9.
|
PROPERTY, PLANT AND EQUIPMENT, NET
|
|
October 31,
|
||||||
|
2018
|
|
2017
|
||||
|
(in millions)
|
||||||
Land
|
$
|
63
|
|
|
$
|
63
|
|
Buildings and leasehold improvements
|
695
|
|
|
678
|
|
||
Machinery and equipment
|
1,074
|
|
|
1,008
|
|
||
Total property, plant and equipment
|
1,832
|
|
|
1,749
|
|
||
Accumulated depreciation and amortization
|
(1,277
|
)
|
|
(1,219
|
)
|
||
Property, plant and equipment, net
|
$
|
555
|
|
|
$
|
530
|
|
10.
|
GOODWILL AND OTHER INTANGIBLE ASSETS
|
|
Communications Solutions Group
|
|
Electronic Industrial Solutions Group
|
|
Ixia Solutions Group
|
|
Total
|
||||||||
|
(in millions)
|
||||||||||||||
Goodwill at October 31, 2016
|
$
|
498
|
|
|
$
|
238
|
|
|
$
|
—
|
|
|
$
|
736
|
|
Foreign currency translation impact
|
(14
|
)
|
|
1
|
|
|
—
|
|
|
(13
|
)
|
||||
Goodwill arising from acquisitions
|
13
|
|
|
29
|
|
|
1,117
|
|
|
1,159
|
|
||||
Goodwill at October 31, 2017
|
497
|
|
|
268
|
|
|
1,117
|
|
|
1,882
|
|
||||
Foreign currency translation impact
|
(2
|
)
|
|
(2
|
)
|
|
(1
|
)
|
|
(5
|
)
|
||||
Goodwill arising from acquisitions
|
4
|
|
|
2
|
|
|
—
|
|
|
6
|
|
||||
Impairment losses
|
—
|
|
|
—
|
|
|
(709
|
)
|
|
(709
|
)
|
||||
Divestitures
|
(2
|
)
|
|
(1
|
)
|
|
—
|
|
|
(3
|
)
|
||||
Balance at October 31, 2018
|
$
|
497
|
|
|
$
|
267
|
|
|
$
|
407
|
|
|
$
|
1,171
|
|
|
|
|
|
|
|
|
|
||||||||
Goodwill
|
$
|
497
|
|
|
$
|
267
|
|
|
$
|
1,116
|
|
|
$
|
1,880
|
|
Accumulated impairment losses
|
—
|
|
|
—
|
|
|
(709
|
)
|
|
(709
|
)
|
||||
Balance at October 31, 2018
|
$
|
497
|
|
|
$
|
267
|
|
|
$
|
407
|
|
|
$
|
1,171
|
|
|
Other Intangible Assets as of October 31, 2018
|
|
Other Intangible Assets as of October 31, 2017
|
||||||||||||||||||||
|
Gross Carrying Amount
|
|
Accumulated Amortization and Impairments
|
|
Net Book Value
|
|
Gross
Carrying
Amount
|
|
Accumulated
Amortization
and Impairments
|
|
Net Book
Value
|
||||||||||||
|
(in millions)
|
||||||||||||||||||||||
Developed technology
|
$
|
835
|
|
|
$
|
415
|
|
|
$
|
420
|
|
|
$
|
808
|
|
|
$
|
252
|
|
|
$
|
556
|
|
Backlog
|
13
|
|
|
13
|
|
|
—
|
|
|
13
|
|
|
12
|
|
|
1
|
|
||||||
Trademark/Tradename
|
33
|
|
|
14
|
|
|
19
|
|
|
33
|
|
|
8
|
|
|
25
|
|
||||||
Customer relationships
|
304
|
|
|
100
|
|
|
204
|
|
|
304
|
|
|
61
|
|
|
243
|
|
||||||
Non-compete agreements
|
1
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
1
|
|
||||||
Total amortizable intangible assets
|
1,186
|
|
|
542
|
|
|
644
|
|
|
1,159
|
|
|
333
|
|
|
826
|
|
||||||
In-Process R&D
|
1
|
|
|
—
|
|
|
1
|
|
|
29
|
|
|
—
|
|
|
29
|
|
||||||
Total
|
$
|
1,187
|
|
|
$
|
542
|
|
|
$
|
645
|
|
|
$
|
1,188
|
|
|
$
|
333
|
|
|
$
|
855
|
|
11.
|
INVESTMENTS
|
|
October 31,
|
||||||
|
2018
|
|
2017
|
||||
|
(in millions)
|
||||||
Long-Term
|
|
|
|
||||
Cost method investments
|
$
|
16
|
|
|
$
|
16
|
|
Trading securities
|
13
|
|
|
13
|
|
||
Available-for-sale investments
|
17
|
|
|
34
|
|
||
Total
|
$
|
46
|
|
|
$
|
63
|
|
|
October 31, 2018
|
|
October 31, 2017
|
||||||||||||||||||||||||||||
|
Amortized Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
|
Amortized Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
||||||||||||||||
|
(in millions)
|
||||||||||||||||||||||||||||||
Long-Term
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Equity securities
|
$
|
15
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
17
|
|
|
$
|
15
|
|
|
$
|
19
|
|
|
$
|
—
|
|
|
$
|
34
|
|
12.
|
FAIR VALUE MEASUREMENTS
|
|
Fair Value Measurements as of October 31, 2018
|
|
Fair Value Measurements as of October 31, 2017
|
||||||||||||||||||||||||||||
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||||||||
|
(in millions)
|
||||||||||||||||||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Short-term
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Cash equivalents
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Money market funds
|
$
|
484
|
|
|
$
|
484
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
403
|
|
|
$
|
403
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Derivative instruments (foreign exchange contracts)
|
6
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
6
|
|
|
—
|
|
||||||||
Long-term
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Trading securities
|
13
|
|
|
13
|
|
|
—
|
|
|
—
|
|
|
13
|
|
|
13
|
|
|
—
|
|
|
—
|
|
||||||||
Available-for-sale investments
|
17
|
|
|
17
|
|
|
—
|
|
|
—
|
|
|
34
|
|
|
34
|
|
|
—
|
|
|
—
|
|
||||||||
Total assets measured at fair value
|
$
|
520
|
|
|
$
|
514
|
|
|
$
|
6
|
|
|
$
|
—
|
|
|
$
|
456
|
|
|
$
|
450
|
|
|
$
|
6
|
|
|
$
|
—
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Short-term
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Derivative instruments (foreign exchange contracts)
|
$
|
6
|
|
|
$
|
—
|
|
|
$
|
6
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
—
|
|
Long-term
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Deferred compensation liability
|
13
|
|
|
—
|
|
|
13
|
|
|
—
|
|
|
13
|
|
|
—
|
|
|
13
|
|
|
—
|
|
||||||||
Total liabilities measured at fair value
|
$
|
19
|
|
|
$
|
—
|
|
|
$
|
19
|
|
|
$
|
—
|
|
|
$
|
14
|
|
|
$
|
—
|
|
|
$
|
14
|
|
|
$
|
—
|
|
13.
|
DERIVATIVES
|
|
|
Derivatives in
Cash Flow Hedging Relationships |
|
Derivatives Not Designated as Hedging Instruments
|
||||
|
|
Forward
Contracts
|
|
Forward
Contracts
|
||||
Currency
|
|
Buy/(Sell)
|
|
Buy/(Sell)
|
||||
|
|
(in millions)
|
||||||
Euro
|
|
$
|
14
|
|
|
$
|
95
|
|
British Pound
|
|
—
|
|
|
(28
|
)
|
||
Singapore Dollar
|
|
15
|
|
|
1
|
|
||
Malaysian Ringgit
|
|
79
|
|
|
1
|
|
||
Japanese Yen
|
|
(86
|
)
|
|
(1
|
)
|
||
Other currencies
|
|
3
|
|
|
6
|
|
||
|
|
$
|
25
|
|
|
$
|
74
|
|
Fair Values of Derivative Instruments
|
||||||||||||||||||
Asset Derivatives
|
|
Liability Derivatives
|
||||||||||||||||
|
|
Fair Value
|
|
|
|
Fair Value
|
||||||||||||
Balance Sheet Location
|
|
October 31,
2018 |
|
October 31,
2017 |
|
Balance Sheet Location
|
|
October 31,
2018 |
|
October 31,
2017 |
||||||||
(in millions)
|
||||||||||||||||||
Derivatives designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Cash flow hedges
|
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign exchange contracts
|
|
|
|
|
|
|
|
|
|
|
||||||||
Other current assets
|
|
$
|
5
|
|
|
$
|
5
|
|
|
Other accrued liabilities
|
|
$
|
4
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign exchange contracts
|
|
|
|
|
|
|
|
|
|
|
||||||||
Other current assets
|
|
1
|
|
|
1
|
|
|
Other accrued liabilities
|
|
2
|
|
|
1
|
|
||||
Total derivatives
|
|
$
|
6
|
|
|
$
|
6
|
|
|
|
|
$
|
6
|
|
|
$
|
1
|
|
|
2018
|
|
2017
|
|
2016
|
||||||
|
(in millions)
|
||||||||||
Derivatives designated as hedging instruments:
|
|
|
|
|
|
||||||
Cash flow hedges
|
|
|
|
|
|
||||||
Foreign exchange contracts:
|
|
|
|
|
|
||||||
Gain (loss) recognized in accumulated other comprehensive income
|
$
|
—
|
|
|
$
|
6
|
|
|
$
|
(7
|
)
|
Gain (loss) reclassified from accumulated other comprehensive income into cost of products
|
$
|
4
|
|
|
$
|
(1
|
)
|
|
$
|
(12
|
)
|
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
||||||
Gain (loss) recognized in other income (expense), net
|
$
|
4
|
|
|
$
|
6
|
|
|
$
|
(10
|
)
|
14.
|
RETIREMENT PLANS AND POST-RETIREMENT BENEFIT PLANS
|
|
Defined Benefit Plans
|
|
U.S. Post-Retirement Benefit Plan
|
||||||||||||||||||||||||||||||||
|
U.S. Plans
|
|
Non-U.S. Plans
|
|
|||||||||||||||||||||||||||||||
|
2018
|
|
2017
|
|
2016
|
|
2018
|
|
2017
|
|
2016
|
|
2018
|
|
2017
|
|
2016
|
||||||||||||||||||
|
(in millions)
|
||||||||||||||||||||||||||||||||||
Net periodic benefit cost (benefit)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Service cost — benefits earned during the period
|
$
|
24
|
|
|
$
|
22
|
|
|
$
|
21
|
|
|
$
|
14
|
|
|
$
|
18
|
|
|
$
|
19
|
|
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
1
|
|
Interest cost on benefit obligation
|
25
|
|
|
21
|
|
|
22
|
|
|
23
|
|
|
23
|
|
|
32
|
|
|
7
|
|
|
7
|
|
|
9
|
|
|||||||||
Expected return on plan assets
|
(37
|
)
|
|
(33
|
)
|
|
(37
|
)
|
|
(85
|
)
|
|
(74
|
)
|
|
(74
|
)
|
|
(13
|
)
|
|
(11
|
)
|
|
(14
|
)
|
|||||||||
Amortization:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Net actuarial loss
|
12
|
|
|
15
|
|
|
9
|
|
|
25
|
|
|
33
|
|
|
27
|
|
|
16
|
|
|
21
|
|
|
20
|
|
|||||||||
Prior service credit
|
(7
|
)
|
|
(8
|
)
|
|
(7
|
)
|
|
(1
|
)
|
|
(1
|
)
|
|
(1
|
)
|
|
(14
|
)
|
|
(15
|
)
|
|
(17
|
)
|
|||||||||
Net periodic benefit cost (benefit)
|
17
|
|
|
17
|
|
|
8
|
|
|
(24
|
)
|
|
(1
|
)
|
|
3
|
|
|
(3
|
)
|
|
3
|
|
|
(1
|
)
|
|||||||||
Curtailments and settlements
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
(69
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Net periodic benefit cost (benefit)
|
$
|
17
|
|
|
$
|
17
|
|
|
$
|
8
|
|
|
$
|
(23
|
)
|
|
$
|
(70
|
)
|
|
$
|
3
|
|
|
$
|
(3
|
)
|
|
$
|
3
|
|
|
$
|
(1
|
)
|
Other changes in plan assets and benefit obligations recognized in other comprehensive (income) loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Net actuarial loss (gain)
|
$
|
(11
|
)
|
|
$
|
4
|
|
|
$
|
60
|
|
|
$
|
41
|
|
|
$
|
(145
|
)
|
|
$
|
188
|
|
|
$
|
(1
|
)
|
|
$
|
(16
|
)
|
|
$
|
5
|
|
Amortization:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Net actuarial loss
|
(12
|
)
|
|
(15
|
)
|
|
(9
|
)
|
|
(25
|
)
|
|
(33
|
)
|
|
(27
|
)
|
|
(16
|
)
|
|
(21
|
)
|
|
(20
|
)
|
|||||||||
Prior service credit
|
7
|
|
|
8
|
|
|
7
|
|
|
1
|
|
|
1
|
|
|
1
|
|
|
14
|
|
|
15
|
|
|
17
|
|
|||||||||
Settlement
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
(24
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Curtailment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Foreign currency
|
—
|
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
1
|
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Total recognized in other comprehensive (income) loss
|
$
|
(16
|
)
|
|
$
|
(3
|
)
|
|
$
|
58
|
|
|
$
|
11
|
|
|
$
|
(199
|
)
|
|
$
|
157
|
|
|
$
|
(3
|
)
|
|
$
|
(22
|
)
|
|
$
|
2
|
|
Total recognized in net periodic benefit cost (benefit) and other comprehensive (income) loss
|
$
|
1
|
|
|
$
|
14
|
|
|
$
|
66
|
|
|
$
|
(12
|
)
|
|
$
|
(269
|
)
|
|
$
|
160
|
|
|
$
|
(6
|
)
|
|
$
|
(19
|
)
|
|
$
|
1
|
|
|
U.S. Defined
Benefit Plans
|
|
Non-U.S. Defined
Benefit Plans
|
|
U.S.
Post-Retirement
Benefit Plan
|
||||||||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||||||
|
(in millions)
|
||||||||||||||||||||||
Change in fair value of plan assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Fair value — beginning of year
|
$
|
515
|
|
|
$
|
464
|
|
|
$
|
1,440
|
|
|
$
|
1,317
|
|
|
$
|
182
|
|
|
$
|
171
|
|
Actual return on plan assets
|
6
|
|
|
72
|
|
|
2
|
|
|
136
|
|
|
3
|
|
|
26
|
|
||||||
Employer contributions
|
85
|
|
|
—
|
|
|
33
|
|
|
34
|
|
|
—
|
|
|
—
|
|
||||||
Settlements
|
—
|
|
|
—
|
|
|
(6
|
)
|
|
(51
|
)
|
|
—
|
|
|
—
|
|
||||||
Benefits paid
|
(31
|
)
|
|
(21
|
)
|
|
(42
|
)
|
|
(42
|
)
|
|
(13
|
)
|
|
(15
|
)
|
||||||
Currency impact
|
—
|
|
|
—
|
|
|
(35
|
)
|
|
46
|
|
|
—
|
|
|
—
|
|
||||||
Fair value — end of year
|
$
|
575
|
|
|
$
|
515
|
|
|
$
|
1,392
|
|
|
$
|
1,440
|
|
|
$
|
172
|
|
|
$
|
182
|
|
Change in benefit obligation:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Benefit obligation — beginning of year
|
$
|
675
|
|
|
$
|
610
|
|
|
$
|
1,338
|
|
|
$
|
1,508
|
|
|
$
|
207
|
|
|
$
|
214
|
|
Service cost
|
24
|
|
|
22
|
|
|
14
|
|
|
18
|
|
|
1
|
|
|
1
|
|
||||||
Interest cost
|
25
|
|
|
21
|
|
|
23
|
|
|
23
|
|
|
7
|
|
|
7
|
|
||||||
Settlements
|
—
|
|
|
—
|
|
|
(6
|
)
|
|
(142
|
)
|
|
—
|
|
|
—
|
|
||||||
Curtailments
|
—
|
|
|
—
|
|
|
—
|
|
|
(12
|
)
|
|
—
|
|
|
—
|
|
||||||
Actuarial loss (gain)
|
(43
|
)
|
|
43
|
|
|
(43
|
)
|
|
(69
|
)
|
|
(12
|
)
|
|
|
|
||||||
Benefits paid
|
(31
|
)
|
|
(21
|
)
|
|
(42
|
)
|
|
(42
|
)
|
|
(13
|
)
|
|
(15
|
)
|
||||||
Currency impact
|
—
|
|
|
—
|
|
|
(35
|
)
|
|
54
|
|
|
—
|
|
|
—
|
|
||||||
Benefit obligation — end of year
|
$
|
650
|
|
|
$
|
675
|
|
|
$
|
1,249
|
|
|
$
|
1,338
|
|
|
$
|
190
|
|
|
$
|
207
|
|
Overfunded (Underfunded) status of PBO
|
$
|
(75
|
)
|
|
$
|
(160
|
)
|
|
$
|
143
|
|
|
$
|
102
|
|
|
$
|
(18
|
)
|
|
$
|
(25
|
)
|
Amounts recognized in the consolidated balance sheet consist of:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other assets
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
257
|
|
|
$
|
211
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Employee compensation and benefits
|
(1
|
)
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Retirement and post-retirement benefits
|
(74
|
)
|
|
(159
|
)
|
|
(114
|
)
|
|
(109
|
)
|
|
(18
|
)
|
|
(25
|
)
|
||||||
Net asset (liability)(a)
|
$
|
(75
|
)
|
|
$
|
(160
|
)
|
|
$
|
143
|
|
|
$
|
102
|
|
|
$
|
(18
|
)
|
|
$
|
(25
|
)
|
Amounts recognized in accumulated other comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Actuarial losses
|
$
|
112
|
|
|
$
|
135
|
|
|
$
|
396
|
|
|
$
|
385
|
|
|
$
|
28
|
|
|
$
|
45
|
|
Prior service credits
|
(4
|
)
|
|
(11
|
)
|
|
(1
|
)
|
|
(1
|
)
|
|
(28
|
)
|
|
(42
|
)
|
||||||
Total
|
$
|
108
|
|
|
$
|
124
|
|
|
$
|
395
|
|
|
$
|
384
|
|
|
$
|
—
|
|
|
$
|
3
|
|
|
U.S. Defined
Benefit Plans
|
|
Non-U.S. Defined
Benefit Plans
|
|
U.S. Post-Retirement
Benefit Plan
|
||||||
|
(in millions)
|
||||||||||
Amortization of net prior service credit
|
$
|
(4
|
)
|
|
$
|
(1
|
)
|
|
$
|
(14
|
)
|
Amortization of actuarial net loss
|
$
|
10
|
|
|
$
|
28
|
|
|
$
|
9
|
|
|
|
|
Fair Value Measurement
as of October 31, 2018 Using
|
||||||||||||||||
|
October 31,
2018 |
|
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
|
Assets Measured at NAV
|
||||||||||
|
(in millions)
|
||||||||||||||||||
Cash and cash equivalents
|
$
|
4
|
|
|
$
|
—
|
|
|
$
|
4
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Equity
|
392
|
|
|
120
|
|
|
1
|
|
|
—
|
|
|
271
|
|
|||||
Fixed income
|
179
|
|
|
14
|
|
|
94
|
|
|
—
|
|
|
71
|
|
|||||
Other investments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total assets measured at fair value
|
$
|
575
|
|
|
$
|
134
|
|
|
$
|
99
|
|
|
$
|
—
|
|
|
$
|
342
|
|
|
|
|
Fair Value Measurement
as of 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)
|
|
Assets Measured at NAV
|
||||||||||
|
(in millions)
|
||||||||||||||||||
Cash and cash equivalents
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Equity
|
371
|
|
|
114
|
|
|
1
|
|
|
—
|
|
|
256
|
|
|||||
Fixed income
|
139
|
|
|
16
|
|
|
75
|
|
|
—
|
|
|
48
|
|
|||||
Other investments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total assets measured at fair value
|
$
|
515
|
|
|
$
|
130
|
|
|
$
|
81
|
|
|
$
|
—
|
|
|
$
|
304
|
|
|
|
|
Fair Value Measurement as of
October 31, 2018 Using
|
||||||||||||||||
|
October 31,
2018 |
|
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
|
Assets Measured at NAV
|
||||||||||
|
(in millions)
|
||||||||||||||||||
Cash and cash equivalents
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Equity
|
120
|
|
|
37
|
|
|
—
|
|
|
—
|
|
|
83
|
|
|||||
Fixed income
|
51
|
|
|
4
|
|
|
27
|
|
|
—
|
|
|
20
|
|
|||||
Other investments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total assets measured at fair value
|
$
|
172
|
|
|
$
|
41
|
|
|
$
|
28
|
|
|
$
|
—
|
|
|
$
|
103
|
|
|
|
|
Fair Value Measurement as of
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)
|
|
Assets Measured at NAV
|
||||||||||
|
(in millions)
|
||||||||||||||||||
Cash and cash equivalents
|
$
|
3
|
|
|
$
|
1
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Equity
|
132
|
|
|
41
|
|
|
—
|
|
|
—
|
|
|
91
|
|
|||||
Fixed income
|
47
|
|
|
5
|
|
|
25
|
|
|
—
|
|
|
17
|
|
|||||
Other investments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total assets measured at fair value
|
$
|
182
|
|
|
$
|
47
|
|
|
$
|
27
|
|
|
$
|
—
|
|
|
$
|
108
|
|
|
|
|
Fair Value Measurement as of
October 31, 2018 Using
|
||||||||||||||||
|
October 31,
2018 |
|
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
|
Assets Measured at NAV
|
||||||||||
|
(in millions)
|
||||||||||||||||||
Cash and cash equivalents
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Equity
|
791
|
|
|
135
|
|
|
—
|
|
|
—
|
|
|
656
|
|
|||||
Fixed income
|
595
|
|
|
—
|
|
|
208
|
|
|
—
|
|
|
387
|
|
|||||
Other investments
|
6
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
3
|
|
|||||
Total assets measured at fair value
|
$
|
1,392
|
|
|
$
|
135
|
|
|
$
|
208
|
|
|
$
|
3
|
|
|
$
|
1,046
|
|
|
|
|
Fair Value Measurement as of
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)
|
|
Assets Measured at NAV
|
||||||||||
|
(in millions)
|
||||||||||||||||||
Cash and cash equivalents
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Equity
|
757
|
|
|
156
|
|
|
2
|
|
|
—
|
|
|
599
|
|
|||||
Fixed income
|
677
|
|
|
—
|
|
|
200
|
|
|
—
|
|
|
477
|
|
|||||
Other investments
|
6
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
3
|
|
|||||
Total assets measured at fair value
|
$
|
1,440
|
|
|
$
|
156
|
|
|
$
|
202
|
|
|
$
|
3
|
|
|
$
|
1,079
|
|
|
Year Ended
|
||||||
|
October 31,
|
||||||
|
2018
|
|
2017
|
||||
|
(in millions)
|
||||||
Balance, beginning of year
|
$
|
3
|
|
|
$
|
3
|
|
Realized gains
|
—
|
|
|
—
|
|
||
Unrealized gains/(losses)
|
—
|
|
|
—
|
|
||
Purchases, sales, issuances, and settlements
|
—
|
|
|
—
|
|
||
Transfers in (out)
|
—
|
|
|
—
|
|
||
Balance, end of year
|
$
|
3
|
|
|
$
|
3
|
|
|
2018
|
|
2017
|
||||||||||||
|
Benefit
Obligation
|
|
Fair Value of Plan Assets
|
|
Benefit
Obligation
|
|
Fair Value of Plan Assets
|
||||||||
|
|
||||||||||||||
|
PBO
|
|
|
PBO
|
|
||||||||||
|
(in millions)
|
|
(in millions)
|
||||||||||||
U.S. defined benefit plans where PBO exceeds the fair value of plan assets
|
$
|
650
|
|
|
$
|
575
|
|
|
$
|
675
|
|
|
$
|
515
|
|
U.S. defined benefit plans where fair value of plan assets exceeds PBO
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total
|
$
|
650
|
|
|
$
|
575
|
|
|
$
|
675
|
|
|
$
|
515
|
|
Non-U.S. defined benefit plans where PBO exceeds or is equal to the fair value of plan assets
|
$
|
363
|
|
|
$
|
249
|
|
|
$
|
378
|
|
|
$
|
269
|
|
Non-U.S. defined benefit plans where fair value of plan assets exceeds PBO
|
886
|
|
|
1,143
|
|
|
960
|
|
|
1,171
|
|
||||
Total
|
$
|
1,249
|
|
|
$
|
1,392
|
|
|
$
|
1,338
|
|
|
$
|
1,440
|
|
|
|
|
|
|
|
|
|
||||||||
|
ABO
|
|
|
|
ABO
|
|
|
||||||||
U.S. defined benefit plans where ABO exceeds the fair value of plan assets
|
$
|
609
|
|
|
$
|
575
|
|
|
$
|
629
|
|
|
$
|
515
|
|
U.S. defined benefit plans where the fair value of plan assets exceeds ABO
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total
|
$
|
609
|
|
|
$
|
575
|
|
|
$
|
629
|
|
|
$
|
515
|
|
Non-U.S. defined benefit plans where ABO exceeds or is equal to the fair value of plan assets
|
$
|
351
|
|
|
$
|
249
|
|
|
$
|
364
|
|
|
$
|
269
|
|
Non-U.S. defined benefit plans where fair value of plan assets exceeds ABO
|
879
|
|
|
1,143
|
|
|
952
|
|
|
1,171
|
|
||||
Total
|
$
|
1,230
|
|
|
$
|
1,392
|
|
|
$
|
1,316
|
|
|
$
|
1,440
|
|
|
U.S. Defined
Benefit Plans
|
|
Non-U.S. Defined
Benefit Plans
|
|
U.S. Post-Retirement
Benefit Plan
|
||||||
|
(in millions)
|
||||||||||
2019
|
$
|
39
|
|
|
$
|
32
|
|
|
$
|
18
|
|
2020
|
$
|
41
|
|
|
$
|
36
|
|
|
$
|
18
|
|
2021
|
$
|
46
|
|
|
$
|
39
|
|
|
$
|
17
|
|
2022
|
$
|
48
|
|
|
$
|
41
|
|
|
$
|
16
|
|
2023
|
$
|
52
|
|
|
$
|
44
|
|
|
$
|
16
|
|
2024 - 2028
|
$
|
275
|
|
|
$
|
238
|
|
|
$
|
71
|
|
|
For years ended October 31,
|
||
|
2018
|
|
2017
|
U.S. Defined Benefit Plans:
|
|
|
|
Discount rate
|
3.75%
|
|
3.50%
|
Average increase in compensation levels
|
3.00%
|
|
3.00%
|
Expected long-term return on assets
|
7.50%
|
|
7.50%
|
Non-U.S. Defined Benefit Plans:
|
|
|
|
Discount rate
|
0.59-2.52%
|
|
0.40-2.63%
|
Average increase in compensation levels
|
2.50-3.25%
|
|
2.50-3.50%
|
Expected long-term return on assets
|
4.00-6.50%
|
|
4.00-6.50%
|
U.S. Post-Retirement Benefits Plan:
|
|
|
|
Discount rate
|
3.50%
|
|
3.50%
|
Expected long-term return on assets
|
7.50%
|
|
7.50%
|
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
|
|
As of the years ended October 31,
|
|||
|
2018
|
|
2017
|
|
U.S. Defined Benefit Plans:
|
|
|
|
|
Discount rate
|
4.50%
|
|
3.75
|
%
|
Average increase in compensation levels
|
3.00%
|
|
3.00
|
%
|
Non-U.S. Defined Benefit Plans:
|
|
|
|
|
Discount rate
|
0.83-2.83%
|
|
0.59-2.52%
|
|
Average increase in compensation levels
|
2.50-3.00%
|
|
2.50-3.25%
|
|
U.S. Post-Retirement Benefits Plan:
|
|
|
|
|
Discount rate
|
4.25%
|
|
3.50
|
%
|
Current medical cost trend rate
|
6.00%
|
|
6.00
|
%
|
Ultimate medical cost trend rate
|
4.00%
|
|
3.50
|
%
|
Medical cost trend rate decreases to ultimate rate in year
|
2029
|
|
2029
|
|
15.
|
GUARANTEES
|
|
Year Ended October 31,
|
||||||
|
2018
|
|
2017
|
||||
|
(in millions)
|
||||||
Beginning balance
|
$
|
45
|
|
|
$
|
44
|
|
Accruals for warranties, including change in estimates
|
36
|
|
|
33
|
|
||
Settlements made during the period
|
(36
|
)
|
|
(32
|
)
|
||
Ending balance
|
45
|
|
|
$
|
45
|
|
Accruals for warranties due within one year
|
$
|
25
|
|
|
$
|
24
|
|
Accruals for warranties due after one year
|
20
|
|
|
21
|
|
||
Ending balance
|
$
|
45
|
|
|
$
|
45
|
|
16.
|
COMMITMENTS AND CONTINGENCIES
|
17.
|
DEBT
|
|
October 31,
|
||||||
|
2018
|
|
2017
|
||||
|
(in millions)
|
||||||
|
|
|
|
||||
2019 Senior Notes at 3.30% ($500 face amount less unamortized costs of $1 and $2)
|
$
|
499
|
|
|
$
|
498
|
|
2024 Senior Notes at 4.55% ($600 face amount less unamortized costs of $3 and $4)
|
597
|
|
|
596
|
|
||
2027 Senior Notes at 4.60% ($700 face amount less unamortized costs of $6 and $6)
|
694
|
|
|
694
|
|
||
Senior Unsecured Term loan
|
—
|
|
|
260
|
|
||
Total Debt
|
1,790
|
|
|
2,048
|
|
||
Less: Short-term and current portion of long-term debt
|
499
|
|
|
10
|
|
||
Long-Term Debt
|
$
|
1,291
|
|
|
$
|
2,038
|
|
18.
|
STOCKHOLDERS' EQUITY
|
|
October 31,
|
||||||
|
2018
|
|
2017
|
||||
|
(in millions)
|
||||||
Unrealized gain on equity securities, net of tax (expense) of $(2) and $(5)
|
$
|
—
|
|
|
$
|
14
|
|
Foreign currency translation, net of tax (expense) of $(63) and $(63)
|
(60
|
)
|
|
(39
|
)
|
||
Unrealized losses on defined benefit plans, net of tax benefit of $81 and $82
|
(426
|
)
|
|
(433
|
)
|
||
Unrealized losses on derivative instruments, net of tax benefit (expense) of $(1) and $(2)
|
(2
|
)
|
|
1
|
|
||
Total accumulated other comprehensive loss
|
$
|
(488
|
)
|
|
$
|
(457
|
)
|
|
|
|
|
|
Net defined benefit pension cost and post retirement plan costs:
|
|
|
|
|
||||||||||||||
|
Unrealized gain (loss) on equity securities
|
|
Foreign currency translation
|
|
Actuarial Losses
|
|
Prior service credits
|
|
Unrealized gains (losses) on derivatives
|
|
Total
|
||||||||||||
|
(in millions)
|
||||||||||||||||||||||
At October 31, 2016
|
$
|
10
|
|
|
$
|
(29
|
)
|
|
$
|
(646
|
)
|
|
$
|
50
|
|
|
$
|
(3
|
)
|
|
$
|
(618
|
)
|
Other comprehensive income (loss) before reclassifications
|
5
|
|
|
(10
|
)
|
|
177
|
|
|
—
|
|
|
6
|
|
|
178
|
|
||||||
Amounts reclassified out of accumulated other comprehensive income
|
—
|
|
|
—
|
|
|
69
|
|
|
(24
|
)
|
|
1
|
|
|
46
|
|
||||||
Tax (expense) benefit
|
(1
|
)
|
|
—
|
|
|
(68
|
)
|
|
9
|
|
|
(3
|
)
|
|
(63
|
)
|
||||||
Other comprehensive income (loss) for the twelve months ended October 31, 2017
|
4
|
|
|
(10
|
)
|
|
178
|
|
|
(15
|
)
|
|
4
|
|
|
161
|
|
||||||
At October 31, 2017
|
14
|
|
|
(39
|
)
|
|
(468
|
)
|
|
35
|
|
|
1
|
|
|
(457
|
)
|
||||||
Other comprehensive income (loss) before reclassifications
|
(17
|
)
|
|
(21
|
)
|
|
(23
|
)
|
|
—
|
|
|
—
|
|
|
(61
|
)
|
||||||
Amounts reclassified out of accumulated other comprehensive income
|
—
|
|
|
—
|
|
|
53
|
|
|
(22
|
)
|
|
(4
|
)
|
|
27
|
|
||||||
Tax (expense) benefit
|
3
|
|
|
—
|
|
|
(7
|
)
|
|
6
|
|
|
1
|
|
|
3
|
|
||||||
Other comprehensive income (loss) for the twelve months ended October 31, 2018
|
(14
|
)
|
|
(21
|
)
|
|
23
|
|
|
(16
|
)
|
|
(3
|
)
|
|
(31
|
)
|
||||||
At October 31, 2018
|
$
|
—
|
|
|
$
|
(60
|
)
|
|
$
|
(445
|
)
|
|
$
|
19
|
|
|
$
|
(2
|
)
|
|
$
|
(488
|
)
|
Details about accumulated other comprehensive loss components
|
|
Amounts reclassified from other comprehensive loss
|
|
Affected line item in statement of operations
|
||||||
|
|
Year Ended October 31,
|
|
|
||||||
|
|
2018
|
|
2017
|
|
|
||||
|
|
(in millions)
|
|
|
||||||
Unrealized gain (loss) on derivatives
|
|
$
|
4
|
|
|
$
|
(1
|
)
|
|
Cost of products
|
|
|
(1
|
)
|
|
1
|
|
|
Provision for income tax
|
||
|
|
3
|
|
|
—
|
|
|
Net of Income Tax
|
||
|
|
|
|
|
|
|
||||
Net defined benefit pension cost and post retirement plan costs:
|
|
|
|
|
|
|
||||
Net actuarial loss
|
|
(53
|
)
|
|
(69
|
)
|
|
|
||
Prior service credit
|
|
22
|
|
|
24
|
|
|
|
||
|
|
(31
|
)
|
|
(45
|
)
|
|
Total before income tax
|
||
|
|
9
|
|
|
14
|
|
|
Provision for income tax
|
||
|
|
(22
|
)
|
|
(31
|
)
|
|
Net of income tax
|
||
|
|
|
|
|
|
|
||||
Total reclassifications for the period
|
|
$
|
(19
|
)
|
|
$
|
(31
|
)
|
|
|
19.
|
SEGMENT INFORMATION
|
|
Communications Solutions Group
|
|
Electronic Industrial Solutions Group
|
|
Ixia Solutions Group
|
|
Total
Segments
|
||||||||
|
(in millions)
|
||||||||||||||
Year ended October 31, 2018:
|
|
|
|
|
|
|
|
||||||||
Total net revenue
|
$
|
2,391
|
|
|
$
|
1,071
|
|
|
$
|
416
|
|
|
$
|
3,878
|
|
Amortization of acquisition-related balances
|
1
|
|
|
—
|
|
|
35
|
|
|
36
|
|
||||
Total segment revenue
|
$
|
2,392
|
|
|
$
|
1,071
|
|
|
$
|
451
|
|
|
$
|
3,914
|
|
Segment income from operations
|
$
|
474
|
|
|
$
|
245
|
|
|
$
|
16
|
|
|
$
|
735
|
|
Depreciation expense
|
$
|
64
|
|
|
$
|
23
|
|
|
$
|
16
|
|
|
$
|
103
|
|
Year ended October 31, 2017:
|
|
|
|
|
|
|
|
||||||||
Total net revenue
|
$
|
2,063
|
|
|
$
|
929
|
|
|
$
|
197
|
|
|
$
|
3,189
|
|
Amortization of acquisition-related balances
|
1
|
|
|
—
|
|
|
59
|
|
|
60
|
|
||||
Total segment revenue
|
$
|
2,064
|
|
|
$
|
929
|
|
|
$
|
256
|
|
|
$
|
3,249
|
|
Segment income from operations
|
$
|
347
|
|
|
$
|
209
|
|
|
$
|
42
|
|
|
$
|
598
|
|
Depreciation expense
|
$
|
62
|
|
|
$
|
23
|
|
|
$
|
7
|
|
|
$
|
92
|
|
Year ended October 31, 2016:
|
|
|
|
|
|
|
|
||||||||
Total net revenue
|
$
|
2,048
|
|
|
$
|
870
|
|
|
$
|
—
|
|
|
$
|
2,918
|
|
Amortization of acquisition-related balances
|
12
|
|
|
—
|
|
|
$
|
—
|
|
|
12
|
|
|||
Total segment revenue
|
$
|
2,060
|
|
|
$
|
870
|
|
|
$
|
—
|
|
|
$
|
2,930
|
|
Segment income from operations
|
$
|
340
|
|
|
$
|
175
|
|
|
$
|
—
|
|
|
$
|
515
|
|
Depreciation expense
|
$
|
63
|
|
|
$
|
22
|
|
|
$
|
—
|
|
|
$
|
85
|
|
|
Year Ended October 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
(in millions)
|
||||||||||
Total reportable segments' income from operations
|
$
|
735
|
|
|
$
|
598
|
|
|
$
|
515
|
|
Share-based compensation expense
|
(59
|
)
|
|
(56
|
)
|
|
(49
|
)
|
|||
Restructuring and related costs
|
(17
|
)
|
|
(11
|
)
|
|
—
|
|
|||
Amortization of acquisition-related balances
|
(265
|
)
|
|
(256
|
)
|
|
(56
|
)
|
|||
Acquisition and integration costs
|
(49
|
)
|
|
(57
|
)
|
|
(18
|
)
|
|||
Acquisition-related compensation expense
|
—
|
|
|
(28
|
)
|
|
—
|
|
|||
Separation and related costs
|
(2
|
)
|
|
(20
|
)
|
|
(24
|
)
|
|||
Northern California wildfire-related costs
|
(7
|
)
|
|
(16
|
)
|
|
—
|
|
|||
Goodwill impairment
|
(709
|
)
|
|
—
|
|
|
—
|
|
|||
Legal settlement
|
(25
|
)
|
|
—
|
|
|
—
|
|
|||
Gain on divestitures
|
20
|
|
|
—
|
|
|
—
|
|
|||
Other
|
(16
|
)
|
|
(6
|
)
|
|
7
|
|
|||
Income (loss) from operations, as reported
|
(394
|
)
|
|
148
|
|
|
375
|
|
|||
Interest income
|
12
|
|
|
7
|
|
|
3
|
|
|||
Interest expense
|
(83
|
)
|
|
(80
|
)
|
|
(47
|
)
|
|||
Other income (expense), net
|
54
|
|
|
104
|
|
|
35
|
|
|||
Income (loss) before taxes, as reported
|
$
|
(411
|
)
|
|
$
|
179
|
|
|
$
|
366
|
|
|
Communications Solutions Group
|
|
Electronic Industrial Solutions Group
|
|
Ixia Solutions Group
|
|
Total
Segments |
||||||||
|
(in millions)
|
||||||||||||||
As of October 31, 2018:
|
|
|
|
|
|
|
|
||||||||
Assets
|
$
|
2,115
|
|
|
$
|
888
|
|
|
$
|
1,327
|
|
|
$
|
4,330
|
|
Capital expenditures
|
$
|
90
|
|
|
$
|
32
|
|
|
$
|
10
|
|
|
$
|
132
|
|
As of October 31, 2017:
|
|
|
|
|
|
|
|
||||||||
Assets
|
$
|
1,976
|
|
|
$
|
866
|
|
|
$
|
2,063
|
|
|
$
|
4,905
|
|
Capital expenditures
|
$
|
46
|
|
|
$
|
19
|
|
|
$
|
7
|
|
|
$
|
72
|
|
|
October 31,
|
||||||
|
2018
|
|
2017
|
||||
|
(in millions)
|
||||||
Total reportable segments' assets
|
$
|
4,330
|
|
|
$
|
4,905
|
|
Cash and cash equivalents
|
913
|
|
|
818
|
|
||
Prepaid expenses
|
106
|
|
|
113
|
|
||
Other current assets
|
9
|
|
|
7
|
|
||
Investments
|
46
|
|
|
63
|
|
||
Long-term and other receivables
|
118
|
|
|
118
|
|
||
Other
|
302
|
|
|
(91
|
)
|
||
Total assets
|
$
|
5,824
|
|
|
$
|
5,933
|
|
|
United
States
|
|
China
|
|
Japan
|
|
Rest of the
World
|
|
Total
|
||||||||||
|
(in millions)
|
||||||||||||||||||
Net revenue:
|
|
|
|
|
|
|
|
|
|
||||||||||
Year ended October 31, 2018
|
$
|
1,398
|
|
|
$
|
710
|
|
|
$
|
342
|
|
|
$
|
1,428
|
|
|
$
|
3,878
|
|
Year ended October 31, 2017
|
$
|
1,054
|
|
|
$
|
608
|
|
|
$
|
338
|
|
|
$
|
1,189
|
|
|
$
|
3,189
|
|
Year ended October 31, 2016
|
$
|
1,009
|
|
|
$
|
572
|
|
|
$
|
323
|
|
|
$
|
1,014
|
|
|
$
|
2,918
|
|
|
United
States
|
|
Japan
|
|
Malaysia
|
|
UK
|
Rest of the
World
|
|
Total
|
||||||||||||
|
(in millions)
|
|||||||||||||||||||||
Long-lived assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
October 31, 2018
|
$
|
310
|
|
|
$
|
222
|
|
|
$
|
72
|
|
|
$
|
145
|
|
$
|
121
|
|
|
$
|
870
|
|
October 31, 2017
|
$
|
280
|
|
|
$
|
234
|
|
|
$
|
73
|
|
|
$
|
106
|
|
$
|
126
|
|
|
$
|
819
|
|
20.
|
IMPACT OF NORTHERN CALIFORNIA WILDFIRES
|
|
Year Ended October 31, 2018
|
Year Ended October 31, 2017
|
||||
|
(in millions)
|
|||||
Cost of products and services
|
$
|
5
|
|
$
|
5
|
|
Research and development
|
1
|
|
1
|
|
||
Selling, general and administrative
|
1
|
|
8
|
|
||
Other operating expense (income), net
|
—
|
|
2
|
|
||
Total
|
$
|
7
|
|
$
|
16
|
|
|
Three Months Ended
|
||||||||||||||
|
January 31,
|
|
April 30,
|
|
July 31,
|
|
October 31,
|
||||||||
|
(in millions, except per share data)
|
||||||||||||||
2018
|
|
|
|
|
|
|
|
||||||||
Net revenue
|
$
|
837
|
|
|
$
|
990
|
|
|
$
|
1,004
|
|
|
$
|
1,047
|
|
Gross profit
|
$
|
425
|
|
|
$
|
539
|
|
|
$
|
562
|
|
|
$
|
585
|
|
Income (loss) from operations
|
$
|
(17
|
)
|
|
$
|
86
|
|
|
$
|
117
|
|
|
$
|
(580
|
)
|
Net income (loss)
|
$
|
94
|
|
|
$
|
64
|
|
|
$
|
121
|
|
|
$
|
(114
|
)
|
Net income (loss) per share:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
0.50
|
|
|
$
|
0.34
|
|
|
$
|
0.64
|
|
|
$
|
(0.61
|
)
|
Diluted
|
$
|
0.50
|
|
|
$
|
0.34
|
|
|
$
|
0.63
|
|
|
$
|
(0.61
|
)
|
Weighted average shares used in computing net income (loss) per share:
|
|
|
|
|
|
|
|
||||||||
Basic
|
187
|
|
|
188
|
|
|
188
|
|
|
187
|
|
||||
Diluted
|
189
|
|
|
190
|
|
|
191
|
|
|
187
|
|
||||
|
|
|
|
|
|
|
|
||||||||
2017
|
|
|
|
|
|
|
|
||||||||
Net revenue
|
$
|
726
|
|
|
$
|
753
|
|
|
$
|
832
|
|
|
$
|
878
|
|
Gross profit
|
$
|
403
|
|
|
$
|
411
|
|
|
$
|
411
|
|
|
$
|
472
|
|
Income (loss) from operations
|
$
|
89
|
|
|
$
|
35
|
|
|
$
|
(8
|
)
|
|
$
|
32
|
|
Net income (loss)
|
$
|
109
|
|
|
$
|
49
|
|
|
$
|
(18
|
)
|
|
$
|
(38
|
)
|
Net income (loss) per share:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
0.64
|
|
|
$
|
0.28
|
|
|
$
|
(0.10
|
)
|
|
$
|
(0.20
|
)
|
Diluted
|
$
|
0.63
|
|
|
$
|
0.27
|
|
|
$
|
(0.10
|
)
|
|
$
|
(0.20
|
)
|
Weighted average shares used in computing net income (loss) per share:
|
|
|
|
|
|
|
|
||||||||
Basic
|
171
|
|
|
177
|
|
|
186
|
|
|
186
|
|
||||
Diluted
|
173
|
|
|
179
|
|
|
186
|
|
|
186
|
|