Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Oct. 31, 2013 | Dec. 01, 2013 | Apr. 30, 2013 |
Document and Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'AGILENT TECHNOLOGIES INC | ' | ' |
Entity Central Index Key | '0001090872 | ' | ' |
Current Fiscal Year End Date | '--10-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Public Float | ' | ' | $12,084 |
Entity Common Stock, Shares Outstanding | ' | 331,808,500 | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Oct-13 | ' | ' |
CONSOLIDATED_STATEMENT_OF_OPER
CONSOLIDATED STATEMENT OF OPERATIONS (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Net revenue: | ' | ' | ' |
Products | $5,534 | $5,659 | $5,482 |
Services and other | 1,248 | 1,199 | 1,133 |
Total net revenue | 6,782 | 6,858 | 6,615 |
Costs and expenses: | ' | ' | ' |
Cost of products | 2,576 | 2,608 | 2,473 |
Cost of services and other | 671 | 646 | 613 |
Total costs | 3,247 | 3,254 | 3,086 |
Research and development | 704 | 668 | 649 |
Selling, general and administrative | 1,880 | 1,817 | 1,809 |
Total costs and expenses | 5,831 | 5,739 | 5,544 |
Income from operations | 951 | 1,119 | 1,071 |
Interest income | 7 | 9 | 14 |
Interest expense | -107 | -101 | -86 |
Other income (expense), net | 8 | 16 | 33 |
Income before taxes | 859 | 1,043 | 1,032 |
Provision (benefit) for income taxes | 135 | -110 | 20 |
Net income | $724 | $1,153 | $1,012 |
Net income per share: | ' | ' | ' |
Basic (in dollars per share) | $2.12 | $3.31 | $2.92 |
Diluted (in dollars per share) | $2.10 | $3.27 | $2.85 |
Weighted average shares used in computing net income per share: | ' | ' | ' |
Basic (in shares) | 341 | 348 | 347 |
Diluted (in shares) | 345 | 353 | 355 |
Cash dividends declared per common share | $0.46 | $0.30 | $0 |
STATEMENT_OF_COMPREHENSIVE_INC
STATEMENT OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' |
Net income | $724 | $1,153 | $1,012 |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | ' | ' |
Change in unrealized gain on investments, net of tax expense (benefit) of $2, $(8) and $0 | 7 | 6 | -4 |
Gain on derivative instruments, net of tax expense of $2, $3 and $0 | 8 | 7 | 0 |
Amounts reclassified into earnings related to derivative instruments, net of tax benefiti of $(3), $(2) and $(2) | -10 | -6 | 3 |
Foreign currency translation | 1 | -28 | 94 |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax [Abstract] | ' | ' | ' |
Change in actuarial net loss, net of tax expense (benefit) of $114, $(61) and $(3) | 228 | -175 | -38 |
Change in net prior service benefit, net of tax benefit of $(16), $(17) and $0 | -32 | -31 | 149 |
Other Comprehensive Income (Loss), Net of Tax | 202 | -227 | 204 |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | $926 | $926 | $1,216 |
STATEMENT_OF_COMPREHENSIVE_INC1
STATEMENT OF COMPREHENSIVE INCOME (Parenthetical) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract] | ' | ' | ' |
Change in unrealized gain on investments | $2 | ($8) | $0 |
Gain and loss on derivative instruments | 2 | 3 | 0 |
Reclassification of (gains) and losses into earnings related to derivative instruments | -3 | -2 | -2 |
Net loss | 114 | -61 | -3 |
Net prior service loss | ($16) | ($17) | $0 |
CONSOLIDATED_BALANCE_SHEET
CONSOLIDATED BALANCE SHEET (USD $) | Oct. 31, 2013 | Oct. 31, 2012 |
In Millions, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $2,675 | $2,351 |
Accounts receivable, net | 899 | 923 |
Inventory | 1,066 | 1,014 |
Other current assets | 343 | 341 |
Total current assets | 4,983 | 4,629 |
Property, plant and equipment, net | 1,134 | 1,164 |
Goodwill | 3,047 | 3,025 |
Other intangible assets, net | 916 | 1,086 |
Long-term investments | 139 | 109 |
Other assets | 467 | 523 |
Total assets | 10,686 | 10,536 |
Current liabilities: | ' | ' |
Accounts payable | 432 | 461 |
Employee compensation and benefits | 401 | 387 |
Deferred revenue | 439 | 420 |
Short-term debt | 0 | 250 |
Other accrued liabilities | 330 | 375 |
Total current liabilities | 1,602 | 1,893 |
Long-term debt | 2,699 | 2,112 |
Retirement and post-retirement benefits | 294 | 554 |
Other long-term liabilities | 802 | 792 |
Total liabilities | 5,397 | 5,351 |
Commitments and contingencies (Note 17) | ' | ' |
Stockholders' equity: | ' | ' |
Preferred stock; $0.01 par value; 125 million shares authorized; none issued and outstanding | 0 | 0 |
Common stock; $0.01 par value; 2 billion shares authorized; 602 million shares at October 31, 2013 and 595 million shares at October 31, 2012 issued | 6 | 6 |
Treasury stock at cost; 269 million shares at October 31, 2013 and 249 million shares at October 31, 2012 | -9,607 | -8,707 |
Additional paid-in-capital | 8,723 | 8,489 |
Retained earnings | 6,073 | 5,505 |
Accumulated other comprehensive income (loss) | 91 | -111 |
Total stockholders' equity | 5,286 | 5,182 |
Non-controlling interest | 3 | 3 |
Total equity | 5,289 | 5,185 |
Total liabilities and equity | $10,686 | $10,536 |
CONSOLIDATED_BALANCE_SHEET_Par
CONSOLIDATED BALANCE SHEET (Parenthetical) (USD $) | Oct. 31, 2013 | Oct. 31, 2012 |
In Millions, except Per Share data, unless otherwise specified | ||
Stockholders' equity: | ' | ' |
Preferred stock par value (in dollars per share) | $0.01 | $0.01 |
Preferred stock shares authorized (in shares) | 125 | 125 |
Preferred Stock, Shares Issued (in shares) | 0 | 0 |
Preferred Stock, Shares Outstanding (in shares) | 0 | 0 |
Common stock par value (in dollars per share) | $0.01 | $0.01 |
Common stock shares authorized (in shares) | 2,000 | 2,000 |
Common stock issued (in shares) | 602 | 595 |
Treasury stock, at cost (in shares) | 269 | 249 |
CONSOLIDATED_STATEMENT_OF_CASH
CONSOLIDATED STATEMENT OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Cash flows from operating activities: | ' | ' | ' |
Net income | $724 | $1,153 | $1,012 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
Depreciation and amortization | 372 | 301 | 253 |
Share-based compensation | 85 | 74 | 72 |
Excess tax benefit from share-based plans | -2 | 0 | 0 |
Deferred taxes | 31 | -158 | 38 |
Excess and obsolete inventory and inventory related charges | 48 | 30 | 30 |
Non-cash restructuring and asset impairment charges | 3 | 1 | 10 |
Net gain on sale of investments | -1 | -4 | -6 |
Net (gain) loss on sale of assets and divestitures | 3 | 2 | 2 |
Other | 3 | 5 | 8 |
Changes in assets and liabilities: | ' | ' | ' |
Accounts receivable, net | 14 | 19 | 11 |
Inventory | -100 | -52 | -208 |
Accounts payable | -27 | -31 | -35 |
Employee compensation and benefits | 16 | -54 | 24 |
Interest rate swap proceeds | 0 | 0 | 65 |
Other assets and liabilities | -17 | -58 | -16 |
Net cash provided by operating activities | 1,152 | 1,228 | 1,260 |
Cash flows from investing activities: | ' | ' | ' |
Investments in property, plant and equipment | -195 | -194 | -188 |
Proceeds from the sale of property, plant and equipment | 2 | 0 | 18 |
Proceeds from lease receivable | 0 | 80 | 0 |
Proceeds from the sale of investment securities | 12 | 5 | 16 |
Proceeds from divestitures | 0 | 0 | 1 |
Payment to acquire equity method investment | -21 | 0 | 0 |
Purchase of other investments | -25 | 0 | 0 |
Change in restricted cash, cash equivalents and investments, net | 0 | 0 | 1,545 |
Acquisitions of businesses and intangible assets, net of cash acquired | -21 | -2,257 | -98 |
Net cash provided by (used in) investing activities | -248 | -2,366 | 1,294 |
Cash flows from financing activities: | ' | ' | ' |
Issuance of common stock under employee stock plans | 161 | 100 | 304 |
Treasury stock repurchases | -900 | -172 | -497 |
Payment of dividends | -156 | -104 | 0 |
Issuance of senior notes | 597 | 399 | 0 |
Debt issuance costs | -5 | -3 | 0 |
Repayments of Senior notes | -250 | -250 | 0 |
Payments to Acquire Additional Interest in Subsidiaries | -3 | -6 | 0 |
Repayment of debts and credit facility | 0 | -1 | -1,500 |
Excess tax benefit from share-based plans | 2 | 0 | ' |
Net cash used in financing activities | -554 | -37 | -1,693 |
Effect of exchange rate movements | -26 | -1 | 17 |
Net increase (decrease) in cash and cash equivalents | 324 | -1,176 | 878 |
Cash and cash equivalents at beginning of year | 2,351 | 3,527 | 2,649 |
Cash and cash equivalents at end of year | $2,675 | $2,351 | $3,527 |
CONSOLIDATED_STATEMENT_OF_EQUI
CONSOLIDATED STATEMENT OF EQUITY (USD $) | Total | Total Stockholders Equity [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Noncontrolling Interest [Member] |
In Millions, except Share data in Thousands, unless otherwise specified | ||||||||
Balance at Oct. 31, 2010 | $3,236 | $3,228 | $6 | $7,904 | ($8,038) | $3,444 | ($88) | $8 |
Balance (in shares) at Oct. 31, 2010 | ' | ' | 578,827 | ' | -232,683 | ' | ' | ' |
Components of comprehensive income: | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | 1,012 | 1,012 | ' | ' | ' | 1,012 | ' | ' |
Other comprehensive income | 204 | 204 | ' | ' | ' | ' | 204 | ' |
Total comprehensive income (loss) | 1,216 | 1,216 | ' | ' | ' | ' | ' | ' |
Share-based awards issued | 289 | 289 | ' | 289 | ' | ' | ' | ' |
Share-based awards issued (in shares) | ' | ' | 11,841 | ' | ' | ' | ' | ' |
Repurchase of common stock | -497 | -497 | ' | ' | -497 | ' | ' | ' |
Repurchase of common stock (in shares) | ' | ' | ' | ' | -11,603 | ' | ' | ' |
Share-based compensation | 72 | 72 | ' | 72 | ' | ' | ' | ' |
Balance at Oct. 31, 2011 | 4,316 | 4,308 | 6 | 8,265 | -8,535 | 4,456 | 116 | 8 |
Balance (in shares) at Oct. 31, 2011 | ' | ' | 590,668 | ' | -244,286 | ' | ' | ' |
Components of comprehensive income: | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | 1,153 | 1,153 | ' | ' | ' | 1,153 | ' | ' |
Other comprehensive income | -227 | -227 | ' | ' | ' | ' | -227 | ' |
Total comprehensive income (loss) | 926 | 926 | ' | ' | ' | ' | ' | ' |
Cash dividends declared | -104 | -104 | ' | ' | ' | -104 | ' | ' |
Change in non-controlling interest | -5 | ' | ' | ' | ' | ' | ' | -5 |
Share-based awards issued | 84 | 84 | ' | 84 | ' | ' | ' | ' |
Cumulative excess tax benefits realized from share-based awards | 66 | 66 | ' | 66 | ' | ' | ' | ' |
Share-based awards issued (in shares) | ' | ' | 4,591 | ' | ' | ' | ' | ' |
Repurchase of common stock | -172 | -172 | ' | ' | -172 | ' | ' | ' |
Repurchase of common stock (in shares) | ' | ' | ' | ' | -4,500 | ' | ' | ' |
Share-based compensation | 74 | 74 | ' | 74 | ' | ' | ' | ' |
Balance at Oct. 31, 2012 | 5,185 | 5,182 | 6 | 8,489 | -8,707 | 5,505 | -111 | 3 |
Balance (in shares) at Oct. 31, 2012 | ' | ' | 595,259 | ' | -248,786 | ' | ' | ' |
Components of comprehensive income: | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | 724 | 724 | ' | ' | ' | 724 | ' | ' |
Other comprehensive income | 202 | 202 | ' | ' | ' | ' | 202 | ' |
Total comprehensive income (loss) | 926 | 926 | ' | ' | ' | ' | ' | ' |
Cash dividends declared | -156 | -156 | ' | ' | ' | -156 | ' | ' |
Share-based awards issued | 147 | 147 | ' | 147 | ' | ' | ' | ' |
Tax benefit from share based awards issued | 2 | 2 | ' | 2 | ' | ' | ' | ' |
Share-based awards issued (in shares) | ' | ' | 6,370 | ' | ' | ' | ' | ' |
Repurchase of common stock | -900 | -900 | ' | ' | -900 | ' | ' | ' |
Repurchase of common stock (in shares) | ' | ' | ' | ' | -20,544 | ' | ' | ' |
Share-based compensation | 85 | 85 | ' | 85 | ' | ' | ' | ' |
Balance at Oct. 31, 2013 | $5,289 | $5,286 | $6 | $8,723 | ($9,607) | $6,073 | $91 | $3 |
Balance (in shares) at Oct. 31, 2013 | ' | ' | 601,629 | ' | -269,330 | ' | ' | ' |
CONSOLIDATED_STATEMENT_OF_EQUI1
CONSOLIDATED STATEMENT OF EQUITY (Parenthetical) (USD $) | 0 Months Ended | 12 Months Ended | ||
Nov. 22, 2013 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | |
Statement of Stockholders' Equity [Abstract] | ' | ' | ' | ' |
Cash Dividends Declared (per common share) | $0.13 | $0.46 | $0.30 | $0 |
OVERVIEW_AND_SUMMARY_OF_SIGNIF
OVERVIEW AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Oct. 31, 2013 | |
Accounting Policies [Abstract] | ' |
OVERVIEW AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' |
1. OVERVIEW AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Overview. Agilent Technologies, Inc. ("we", "Agilent" or the "company"), incorporated in Delaware in May 1999, is a measurement company, providing core bio-analytical and electronic measurement solutions to the life sciences, diagnostics and genomics, chemical analysis, communications and electronics industries. | |
Agilent Separation. On September 19, 2013, Agilent announced plans to separate into two publicly traded companies, one comprising of the life sciences, diagnostics and chemical analysis businesses that will retain the Agilent name,and the other that will be comprised of the electronic measurement business ("EM"). The separation is expected to occur through a tax-free pro rata spin off of the EM company to Agilent shareholders and is expected to be completed early in November 2014. | |
New Segment. We formed a new operating segment in the fourth fiscal quarter of 2013. The new life sciences and diagnostics segment was formed by the combination of the life sciences business plus the diagnostics and genomics business. Following this reorganization, Agilent has three business segments comprised of the life sciences and diagnostics business, the chemical analysis business and the electronic measurement business. The historical segment financial information for the life sciences and diagnostics segment has been recast to conform to this new reporting structure in our financial statements. | |
Acquisition of Dako A/S. On June 21, 2012, we completed our acquisition of Dako A/S through the acquisition of 100% of the share capital of Dako A/S, a limited liability company incorporated under the laws of Denmark (“Dako”), under the share purchase agreement, dated May 16, 2012. Dako provides antibodies, reagents, scientific instruments and software primarily to customers in pathology laboratories. As a result of the acquisition, Dako became a wholly-owned subsidiary of Agilent. The consideration paid was approximately $2,143 million, of which $1,400 million was paid directly to the seller and $743 million was paid to satisfy the outstanding debt of Dako. Agilent funded the acquisition using existing cash. The acquisition has been accounted for in accordance with the authoritative accounting guidance and the results of Dako are included in Agilent's consolidated financial statements from the date of acquisition. The acquisition of Dako and its portfolio was another step to increase our growth in several rapidly expanding areas of diagnostics, including atomic pathology and molecular diagnostics, as well as strengthen our existing offerings with a focus on product development to help in the fight against cancer. For additional details related to the acquisition of Dako, see Note 3, "Acquisitions". | |
Basis of presentation. The accompanying financial data has been prepared by us pursuant to the rules and regulations of the U.S. Securities and Exchange Commission ("SEC") and is in conformity with U.S. generally accepted accounting principles ("GAAP"). Our fiscal year end is October 31. Unless otherwise stated, all years and dates refer to our fiscal year. | |
In the first quarter of 2013, we adopted the updated authoritative guidance that increases the prominence of items reported in other comprehensive income. For additional details related to the updated authoritative guidance, see Note 2, "New Accounting Pronouncements". | |
Revisions. The statement of cash flows for the year ended October 31, 2012 has been revised to correct the presentation of the purchase of non-controlling interest from investing to financing activities and is not considered material. There was no impact on previously reported net income or the change in net cash for the year ended October 31, 2012. In Note 10, "Goodwill and Other Intangible Assets", the presentation of goodwill has been revised as of October 31, 2012 and 2011 to correct the allocation of goodwill between segments and is not considered material. There was no impact to the previously reported total balance of goodwill as of October 31, 2012 and 2011. | |
Reclassifications. Segment disclosure amounts have been reclassified to conform to the current year presentation with no impact on previously reported net income. | |
Management is responsible for the fair presentation of the accompanying consolidated financial statements, prepared in accordance with U.S. GAAP, and has full responsibility for their integrity and accuracy. In the opinion of management, the accompanying consolidated financial statements contain all adjustments necessary to present fairly our consolidated balance sheet, statement of operations, statement of comprehensive income, statement of cash flows and statement of equity for all periods presented. | |
Principles of consolidation. The consolidated financial statements include the accounts of the company and our wholly- and majority-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. | |
Use of estimates. The preparation of financial statements in accordance with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the amounts reported in our consolidated financial statements and accompanying notes. Management bases its estimates on historical experience and various other assumptions believed to be reasonable. Although these estimates are based on management's best knowledge of current events and actions that may impact the company in the future, actual results may be different from the estimates. Our critical accounting policies are those that affect our financial statements materially and involve difficult, subjective or complex judgments by management. Those policies are revenue recognition, valuation of goodwill and purchased intangible assets, inventory valuation, share-based compensation, retirement and post-retirement plan assumptions, restructuring and accounting for income taxes. | |
Revenue recognition. We enter into agreements to sell products (hardware and/or software), services and other arrangements (multiple element arrangements) that include combinations of products and services. | |
We recognize revenue, net of trade discounts and allowances, provided that (1) persuasive evidence of an arrangement exists, (2) delivery has occurred, (3) the price is fixed or determinable and (4) collectability is reasonably assured. Delivery is considered to have occurred when title and risk of loss have transferred to the customer, for products, or when the service has been provided. We consider the price to be fixed or determinable when the price is not subject to refund or adjustments. We consider arrangements with extended payment terms not to be fixed or determinable, and accordingly we defer revenue until amounts become due. At the time of the transaction, we evaluate the creditworthiness of our customers to determine the appropriate timing of revenue recognition. | |
Product revenue. Our product revenue is generated predominantly from the sales of various types of test equipment. Product revenue, including sales to resellers and distributors, is reduced for estimated returns, when appropriate. For sales or arrangements that include customer-specified acceptance criteria, including those where acceptance is required upon achievement of performance milestones, revenue is recognized after the acceptance criteria have been met. For products that include installation, if the installation meets the criteria to be considered a separate element, product revenue is recognized upon delivery, and recognition of installation revenue is delayed until the installation is complete. Otherwise, neither the product nor the installation revenue is recognized until the installation is complete. | |
Where software is licensed separately, revenue is recognized when the software is delivered and has been transferred to the customer or, in the case of electronic delivery of software, when the customer is given access to the licensed software programs. | |
We also evaluate whether collection of the receivable is probable, the fee is fixed or determinable and whether any other undelivered elements of the arrangement exist on which a portion of the total fee would be allocated based on vendor-specific objective evidence. | |
Service revenue. Revenue from services includes extended warranty, customer and software support, consulting, training and education. Service revenue is deferred and recognized over the contractual period or as services are rendered and accepted by the customer. For example, customer support contracts are recognized ratably over the contractual period, while training revenue is recognized as the training is provided to the customer. In addition the four revenue recognition criteria described above must be met before service revenue is recognized. | |
Revenue Recognition for Arrangements with Multiple Deliverables. Our multiple-element arrangements are generally comprised of a combination of measurement instruments, installation or other start-up services, and/or software and/or support or services. Hardware and software elements are typically delivered at the same time and revenue is recognized upon delivery once title and risk of loss pass to the customer. Delivery of installation, start-up services and other services varies based on the complexity of the equipment, staffing levels in a geographic location and customer preferences, and can range from a few days to a few months. Service revenue is deferred and recognized over the contractual period or as services are rendered and accepted by the customer. Revenue from the sale of software products that are not required to deliver the tangible product's essential functionality are accounted for under software revenue recognition rules which require vendor specific objective evidence ("VSOE") of fair value to allocate revenue in a multiple element arrangement. Our arrangements generally do not include any provisions for cancellation, termination, or refunds that would significantly impact recognized revenue. | |
We have evaluated the deliverables in our multiple-element arrangements and concluded that they are separate units of accounting if the delivered item or items have value to the customer on a standalone basis and for an arrangement that includes a general right of return relative to the delivered item(s), delivery or performance of the undelivered item(s) is considered probable and substantially in our control. We allocate revenue to each element in our multiple-element arrangements based upon their relative selling prices. We determine the selling price for each deliverable based on a selling price hierarchy. The selling price for a deliverable is based on VSOE if available, third-party evidence ("TPE") if VSOE is not available, or estimated selling price ("ESP") if neither VSOE nor TPE is available. Revenue allocated to each element is then recognized when the basic revenue recognition criteria for that element have been met. | |
We use VSOE of selling price in the selling price allocation in all instances where it exists. VSOE of selling price for products and services is determined when a substantial majority of the selling prices fall within a reasonable range when sold separately. TPE of selling price can be established by evaluating largely interchangeable competitor products or services in standalone sales to similarly situated customers. As our products contain a significant element of proprietary technology and the solution offered differs substantially from that of competitors, it is difficult to obtain the reliable standalone competitive pricing necessary to establish TPE. ESP represents the best estimate of the price at which we would transact a sale if the product or service were sold on a standalone basis. We determine ESP for a product or service by using historical selling prices which reflect multiple factors including, but not limited to customer type, geography, market conditions, competitive landscape, gross margin objectives and pricing practices. The determination of ESP is made through consultation with and approval by management. We may modify or develop new pricing practices and strategies in the future. As these pricing strategies evolve in changes may occur in ESP. The aforementioned factors may result in a different allocation of revenue to the deliverables in multiple element arrangements, which may change the pattern and timing of revenue recognition for these elements but will not change the total revenue recognized for the arrangement. | |
Deferred revenue. Deferred revenue represents the amount that is allocated to undelivered elements in multiple element arrangements. We limit the revenue recognized to the amount that is not contingent on the future delivery of products or services or meeting other specified performance conditions. | |
Accounts receivable, net. Trade accounts receivable are recorded at the invoiced amount and do not bear interest. Such accounts receivable has been reduced by an allowance for doubtful accounts, which is our best estimate of the amount of probable credit losses in our existing accounts receivable. We determine the allowance based on customer specific experience and the aging of such receivables, among other factors. The allowance for doubtful accounts as of October 31, 2013 and 2012 was not material. We do not have any off-balance-sheet credit exposure related to our customers. Accounts receivable are also recorded net of product returns. | |
Share-based compensation. For the years ended 2013, 2012 and 2011, we accounted for share-based awards made to our employees and directors including employee stock option awards, restricted stock units, employee stock purchases made under our Employee Stock Purchase Plan ("ESPP") and performance share awards under Agilent Technologies, Inc. Long-Term Performance Program ("LTPP") using the estimated grant date fair value method of accounting. Under the fair value method, we recorded compensation expense for all share-based awards of $88 million in 2013, $76 million in 2012 and $73 million in 2011. | |
Inventory. Inventory is valued at standard cost, which approximates actual cost computed on a first-in, first-out basis, not in excess of market value. We assess the valuation of our inventory on a periodic basis and make adjustments to the value for estimated excess and obsolete inventory based on estimates about future demand. The excess balance determined by this analysis becomes the basis for our excess inventory charge. Our excess inventory review process includes analysis of sales forecasts, managing product rollovers and working with manufacturing to maximize recovery of excess inventory. | |
Warranty. Our standard warranty terms typically extend for one year from the date of delivery. During the second fiscal quarter of 2013 typical standard warranty arrangements within our electronic measurement business were extended from one year to three years from the date of delivery. Prior to the change in standard warranty terms, we sold extended warranties of more than one year and less than three years which were deferred. Those existing warranties greater than one year and less than three years and previously classified as extended warranties will be amortized over the original period of the warranty. We will continue to sell extended warranties for terms beyond three years within the electronic measurement business. The impact will not be material to the segment or consolidated revenue of Agilent and the anticipated increase to the warranty accrual as a result of the new arrangements will not be material to the consolidated balance sheet of Agilent. No changes were made to the standard and extended warranty terms within our other businesses.We accrue for standard warranty costs based on historical trends in warranty charges as a percentage of net product revenue. The accrual is reviewed regularly and periodically adjusted to reflect changes in warranty cost estimates. Estimated warranty charges are recorded within cost of products at the time products are sold. See Note 16, "Guarantees". | |
Taxes on income. Income tax expense or benefit is based on income or loss before taxes. Deferred tax assets and liabilities are recognized principally for the expected tax consequences of temporary differences between the tax bases of assets and liabilities and their reported amounts. | |
Shipping and handling costs. Our shipping and handling costs charged to customers are included in net revenue, and the associated expense is recorded in cost of products for all periods presented. | |
Goodwill and Purchased Intangible Assets. In September 2011, the FASB approved changes to the goodwill impairment guidance which are intended to reduce the cost and complexity of the annual impairment test. The changes provide entities an option to perform a qualitative assessment to determine whether further impairment testing is necessary. The revised standard gives an entity the option to first assess qualitative factors to determine whether performing the current two-step test is necessary. If an entity believes, as a result of its qualitative assessment, that it is more-likely-than-not (i.e. > 50% chance) that the fair value of a reporting unit is less than its carrying amount, the quantitative impairment test will be required. Otherwise, no further testing will be required. | |
The revised guidance includes examples of events and circumstances that might indicate that a reporting unit's fair value is less than its carrying amount. These include macro-economic conditions such as deterioration in the entity's operating environment or industry or market considerations; entity-specific events such as increasing costs, declining financial performance, or loss of key personnel; or other events such as an expectation that a reporting unit will be sold or a sustained decrease in the stock price on either an absolute basis or relative to peers. Agilent opted to early adopt this guidance for the year ended October 31, 2011. | |
If it is determined, as a result of the qualitative assessment, that it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount, the provisions of authoritative guidance require that we perform a two-step impairment test on goodwill. In the first step, we compare the fair value of each reporting unit to its carrying value. The second step (if necessary) measures the amount of impairment by applying fair-value-based tests to the individual assets and liabilities within each reporting unit. As defined in the authoritative guidance, a reporting unit is an operating segment, or one level below an operating segment. We aggregated components of operating segments that have similar economic characteristics into our reporting units. In October 2013, we combined the life sciences and diagnostics and genomics segments to form the life sciences and diagnostics segment. As a result, Agilent now has three segments, life sciences and diagnostics, chemical analysis, and electronic measurement segments. | |
In fiscal year 2013, we assessed goodwill impairment for our four reporting units which consisted of two segments: chemical analysis and electronic measurement; and two reporting units under the life sciences and diagnostics segment. The first of these two reporting units related to our life sciences business and the second related to our diagnostics business. We performed a qualitative test for goodwill impairment of the following three reporting units, as of September 30, 2013: the chemical analysis segment, the electronic measurement segment, and the reporting unit relating to life sciences. Based on the results of our qualitative testing, we believe that it is more-likely-than-not that the fair value of these reporting units are greater than their respective carrying values. We performed a quantitative test for goodwill impairment of the reporting unit related to our diagnostics business as of September 30, 2013. Based on the results of our quantitative testing, the fair value was significantly in excess of the carrying value. There was no impairment of goodwill during the years ended October 31, 2013, 2012 and 2011. Each quarter we review the events and circumstances to determine if goodwill impairment is indicated. | |
Purchased intangible assets consist primarily of acquired developed technologies, proprietary know-how, trademarks, and customer relationships and are amortized using the straight-line method over estimated useful lives ranging from 6 months to 15 years. In-process research and development ("IPR&D") is initially capitalized at fair value as an intangible asset with an indefinite life and assessed for impairment thereafter. When the IPR&D project is complete, it is reclassified as an amortizable purchased intangible asset and is amortized over its estimated useful life. If an IPR&D project is abandoned, Agilent will record a charge for the value of the related intangible asset to Agilent's consolidated statement of operations in the period it is abandoned. | |
In July 2012, the FASB simplified the guidance for testing for impairment of indefinite-lived intangible assets other than goodwill. The changes are intended to reduce compliance costs. Agilent's indefinite-lived intangible assets are IPR&D intangible assets. The revised guidance allows a qualitative approach for testing indefinite-lived intangible assets for impairment, similar to the impairment testing guidance for goodwill. It allows the option to first assess qualitative factors (events and circumstances) that could affect the significant inputs used in determining the fair value of the indefinite-lived intangible asset. The qualitative factors assist in determining whether it is more likely than not (meaning a likelihood of more than 50 percent) that the indefinite-lived intangible asset is impaired. An organization may choose to bypass the qualitative assessment for any indefinite-lived intangible asset in any period and proceed directly to calculating its fair value. The amendments are effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. Early adoption was permitted. Agilent adopted this guidance for the year ended October 31, 2012. Based on the quantitative test, we recorded an impairment of $1 million in 2013 and an impairment of $1 million in 2012, both relating to IPR&D projects that were abandoned. In all other instances we used the qualitative test and concluded that it was more likely than not that all other indefinite-lived intangible assets were not impaired. No impairments were recorded in 2011. | |
Advertising. Advertising costs are expensed as incurred and amounted to $44 million in 2013, $50 million in 2012 and $55 million in 2011. | |
Research and development. Costs related to research, design and development of our products are charged to research and development expense as they are incurred. | |
Sales Taxes. Sales taxes collected from customers and remitted to governmental authorities are not included in our revenue. | |
Net income per share. Basic net income per share is computed by dividing net income - the numerator - by the weighted average number of common shares outstanding - the denominator - during the period excluding the dilutive effect of stock options and other employee stock plans. Diluted net income per share gives effect to all potentially dilutive common stock equivalents outstanding during the period. The dilutive effect of share-based awards is reflected in diluted net income per share by application of the treasury stock method, which includes consideration of unamortized share-based compensation expense, the tax benefits and shortfalls charged to additional paid-in capital and the dilutive effect of in-the-money options and non-vested restricted stock units. Under the treasury stock method, the amount the employee must pay for exercising stock options, unamortized share-based compensation expense and tax benefits or shortfalls are assumed proceeds to be used to repurchase hypothetical shares. See Note 6, "Net Income Per Share". | |
Cash, cash equivalents and short term investments. We classify investments as cash equivalents if their original or remaining maturity is three months or less at the date of purchase. Cash equivalents are stated at cost, which approximates fair value. | |
As of October 31, 2013, approximately $2,552 million of our cash and cash equivalents is held outside of the U.S. in our foreign subsidiaries. Under current tax laws, most of the cash could be repatriated to the U.S. but it would be subject to U.S. federal and state income taxes, less applicable foreign tax credits. Our cash and cash equivalents mainly consist of short term deposits held at major global financial institutions, institutional money market funds, and similar short duration instruments with original maturities of 90 days or less. We continuously monitor the creditworthiness of the financial institutions and institutional money market funds in which we invest our funds. | |
We classify investments as short-term investments if their original maturities are greater than three months and their remaining maturities are one year or less. | |
Fair Value of Financial Instruments. The carrying values of certain of our financial instruments including cash and cash equivalents, accounts receivable, accounts payable, accrued compensation and other accrued liabilities approximate fair value because of their short maturities. The fair value of long-term equity investments is determined using quoted market prices for those securities when available. For those long-term equity investments accounted for under the cost or equity method, their carrying value approximates their estimated fair value. Equity method investments are reported at the amount of the company’s initial investment and adjusted each period for the company’s share of the investee’s income or loss and dividend paid. The fair value of our long-term debt, calculated from quoted prices which are primarily Level 1 inputs under the accounting guidance fair value hierarchy, exceeds the carrying value by approximately $112 million and $210 million as of October 31, 2013 and 2012, respectively. The fair value of foreign currency contracts used for hedging purposes is estimated internally by using inputs tied to active markets. These inputs, for example, interest rate yield curves, foreign exchange rates, and forward and spot prices for currencies are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. See also Note 12, "Fair Value Measurements" for additional information on the fair value of financial instruments. | |
Concentration of credit risk. Financial instruments that potentially subject Agilent to significant concentration of credit risk include money market fund investments, time deposits and demand deposit balances. These investments are categorized as cash and cash equivalents and long-term investments. In addition, Agilent has credit risk from derivative financial instruments used in hedging activities and accounts receivable. We invest in a variety of financial instruments and limit the amount of credit exposure with any one financial institution. We have a comprehensive credit policy in place and credit exposure is monitored on an ongoing basis. | |
Credit risk with respect to our accounts receivable is diversified due to the large number of entities comprising our customer base and their dispersion across many different industries and geographies. Credit evaluations are performed on customers requiring credit over a certain amount and we sell the majority of our products through our direct sales force. Credit risk is mitigated through collateral such as letter of credit, bank guarantees or payment terms like cash in advance. Credit evaluation is performed by an independent team to ensure proper segregation of duties. No single customer accounted for more than 10 percent of combined accounts receivable as of October 31, 2013, or 2012. | |
Derivative instruments. Agilent is exposed to global foreign currency exchange rate and interest rate risks in the normal course of business. We enter into foreign exchange hedging contracts, primarily forward contracts and purchased options and, in the past, interest rate swaps to manage financial exposures resulting from changes in foreign currency exchange rates and interest rates. In the vast majority of cases, these contracts are designated at inception as hedges of the related foreign currency or interest exposures. Foreign currency exposures include committed and anticipated revenue and expense transactions and assets and liabilities that are denominated in currencies other than the functional currency of the subsidiary. Interest rate exposures are associated with the company's fixed-rate debt. For option contracts, we exclude time value from the measurement of effectiveness. To qualify for hedge accounting, contracts must reduce the foreign currency exchange rate and interest rate risk otherwise inherent in the amount and duration of the hedged exposures and comply with established risk management policies; foreign exchange hedging contracts generally mature within twelve months and interest rate swaps, if any, mature at the same time as the maturity of the debt. In order to manage foreign currency exposures in a few limited jurisdictions we may enter into foreign exchange contracts that do not qualify for hedge accounting. In such circumstances, the local foreign currency exposure is offset by contracts owned by the parent company. We do not use derivative financial instruments for speculative trading purposes. | |
All derivatives are recognized on the balance sheet at their fair values. For derivative instruments that are designated and qualify as a fair value hedge, changes in value of the derivative are recognized in the consolidated statement of operations in the current period, along with the offsetting gain or loss on the hedged item attributable to the hedged risk. For derivative instruments that are designated and qualify as a cash flow hedges, changes in the value of the effective portion of the derivative instrument is recognized in accumulated comprehensive income, a component of stockholders' equity. Amounts associated with cash flow hedges are reclassified and recognized in income when either the forecasted transaction occurs or it becomes probable the forecasted transaction will not occur. Derivatives not designated as hedging instruments are recorded on the balance sheet at their fair value and changes in the fair values are recorded in the income statement in the current period. Derivative instruments are subject to master netting arrangements and qualify for net presentation in the balance sheet. Changes in the fair value of the ineffective portion of derivative instruments are recognized in earnings in the current period. Ineffectiveness in 2013, 2012 and 2011 was not material. Cash flows from derivative instruments are classified in the statement of cash flows in the same category as the cash flows from the hedged or economically hedged item, primarily in operating activities. | |
Property, plant and equipment. Property, plant and equipment are stated at cost less accumulated depreciation. Additions, improvements and major renewals are capitalized; maintenance, repairs and minor renewals are expensed as incurred. When assets are retired or disposed of, the assets and related accumulated depreciation and amortization are removed from our general ledger, and the resulting gain or loss is reflected in the consolidated statement of operations. Buildings and improvements are depreciated over the lesser of their useful lives or the remaining term of the lease and machinery and equipment over three to ten years. We use the straight-line method to depreciate assets. | |
Leases. We lease buildings, machinery and equipment under operating leases for original terms ranging generally from one year to twenty years. Certain leases contain renewal options for periods up to six years. As of October 31, 2013 our life sciences and diagnostics segment has approximately $4 million of lease receivables for capital leases and $35 million of net assets for operating leases. We depreciate the assets related to the operating leases over their estimated useful lives. | |
Capitalized software. We capitalize certain internal and external costs incurred to acquire or create internal use software. Capitalized software is included in property, plant and equipment and is depreciated over three to five years once development is complete. | |
Impairment of long-lived assets. We continually monitor events and changes in circumstances that could indicate carrying amounts of long-lived assets, including intangible assets, may not be recoverable. When such events or changes in circumstances occur, we assess the recoverability of long-lived assets by determining whether the carrying value of such assets will be recovered through undiscounted expected future cash flows. If the total of the undiscounted future cash flows is less than the carrying amount of those assets, we recognize an impairment loss based on the excess of the carrying amount over the fair value of the assets. | |
Restructuring. The main component of our restructuring plan is related to workforce reductions. Workforce reduction charges are accrued when payment of benefits becomes probable that the employees are entitled to the severance and the amounts can be estimated. If the amounts and timing of cash flows from restructuring activities are significantly different from what we have estimated, the actual amount of restructuring and other related charges could be materially different, either higher or lower, than those we have recorded. | |
Employee compensation and benefits. Amounts owed to employees, such as accrued salary, bonuses and vacation benefits are accounted for within employee compensation and benefits. The total amount of accrued vacation benefit was $158 million and $156 million as of October 31, 2013, and 2012, respectively. | |
Foreign currency translation. We translate and remeasure balance sheet and income statement items into U.S. dollars. For those subsidiaries that operate in a local currency functional environment, all assets and liabilities are translated into U.S. dollars using current exchange rates at the balance sheet date; revenue and expenses are translated using monthly exchange rates which approximate to average exchange rates in effect during each period. Resulting translation adjustments are reported as a separate component of accumulated other comprehensive income (loss) in stockholders' equity. | |
For those subsidiaries that operate in a U.S. dollar functional environment, foreign currency assets and liabilities are remeasured into U.S. dollars at current exchange rates except for nonmonetary assets and capital accounts which are remeasured at historical exchange rates. Revenue and expenses are generally remeasured at monthly exchange rates which approximate average exchange rates in effect during each period. Gains or losses from foreign currency remeasurement are included in consolidated net income. Net gains or losses resulting from foreign currency transactions, including hedging gains and losses, are reported in other income (expense), net and was $6 million loss for fiscal year 2013, $19 million loss for 2012 and $1 million loss for 2011, respectively. The loss recorded for fiscal year 2012 includes $14 million of loss associated with the settlement of currency contracts entered into for the purchase of Dako. |
NEW_ACCOUNTING_PRONOUNCEMENTS
NEW ACCOUNTING PRONOUNCEMENTS | 12 Months Ended |
Oct. 31, 2013 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ' |
NEW ACCOUNTING PRONOUNCEMENTS | ' |
2. NEW ACCOUNTING PRONOUNCEMENTS | |
In June 2011, the FASB issued guidance related to the presentation of comprehensive income. The guidance aims to improve the comparability, consistency, and transparency of financial reporting and to increase the prominence of items reported in other comprehensive income. The guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2011. In the first quarter of 2013, we adopted the updated authoritative guidance that increases the prominence of items reported in other comprehensive income. The updated authoritative guidance eliminates the option to present components of other comprehensive income as part of the statement of changes in equity and requires that changes in other comprehensive income be presented either as a single continuous statement of comprehensive income or in two but consecutive statements. The adoption of the updated authoritative guidance did impact the presentation of comprehensive income, as we have elected to present two separate but consecutive statements, but did not have an impact on our financial position or results of operations. | |
In December 2011, the FASB issued guidance related to the enhanced disclosures that will enable the users of financial statements to evaluate the effect or potential effect of netting arrangements of an entity's financial position. The amendments require improved information about financial instruments and derivative instruments that are either offset or subject to enforceable master netting arrangements or similar agreement. The guidance is effective for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. We do not expect a material impact to our consolidated financial statements due to the adoption of this guidance. | |
In February 2013, the FASB issued the guidance for reporting of amounts reclassified out of accumulated other comprehensive income. The revised guidance requires reporting the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items in net income if the amount being reclassified is required to be reclassified in its entirety to net income. For other amounts that are not required to be reclassified in their entirety to net income in the same reporting period, an entity is required to cross-reference other disclosures that provide additional detail about these amounts. The amendments do not change the current requirements for reporting net income or other comprehensive income in financial statements. The guidance is effective prospectively for annual reporting periods beginning after December 15, 2012 and interim periods within those years. Early adoption is permitted. We do not expect a material impact to our consolidated financial statements due to the adoption of this guidance. | |
In March 2013, the FASB issued an amendment to the accounting guidance on foreign currency matters in order to clarify the guidance for the release of cumulative translation adjustment. The guidance requires that a parent deconsolidate a subsidiary or derecognize a group of assets that is a nonprofit activity or a business (other than a sale of in substance real estate or conveyance of oil and gas mineral rights) if the parent ceases to have a controlling financial interest in that group of assets. The guidance is effective for interim and annual periods beginning on or after December 15, 2013. We do not expect a material impact to our consolidated financial statements due to the adoption of this guidance. | |
In July 2013, the FASB issued an amendment to the accounting guidance related to the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss or a tax credit carryforward exists. The guidance requires an unrecognized tax benefit to be presented as a decrease in a deferred tax asset where a net operating loss, a similar tax loss, or a tax credit carryforward exists and certain criteria are met. This guidance is effective prospectively for annual and interim reporting periods beginning after December 15, 2013 and is consistent with our current practice. | |
Other amendments to GAAP in the U.S. that have been issued by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on our consolidated financial statements upon adoption. |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended | |||||||
Oct. 31, 2013 | ||||||||
Business Combinations [Abstract] | ' | |||||||
ACQUISITIONS | ' | |||||||
3. ACQUISITIONS | ||||||||
Acquisition of Dako | ||||||||
On June 21, 2012, we completed the acquisition of Dako through the acquisition of 100% of share capital of Dako, a limited liability company incorporated under the laws of Denmark, under the share purchase agreement, dated May 16, 2012. As a result of the acquisition, Dako has become a wholly-owned subsidiary of Agilent. Accordingly, the results of Dako are included in Agilent's consolidated financial statements from the date of the acquisition. For the period from June 22, 2012 to October 31, 2012, Dako's net revenue was $126 million and net loss was $37 million. The acquisition of Dako and its portfolio is another step to increase our growth in several rapidly expanding areas of diagnostics, including anatomic pathology and molecular diagnostics, as well as strengthen our existing offerings with a focus on product development to help in the fight against cancer. | ||||||||
The consideration paid was approximately $2,143 million, of which $1,400 million was paid directly to the seller and $743 million was paid to satisfy outstanding debt. Agilent funded the acquisition using existing cash. In connection with the acquisition of Dako, Agilent entered into several foreign currency forward contracts to mitigate the currency exchange risk associated with the payment of the purchase price in Danish Krone and the repayment of debt in multiple currencies. The aggregate notional amount of the currencies hedged was $1.7 billion. These foreign exchange contracts did not qualify for hedge accounting treatment and were not designated as hedging instruments. The resulting loss on settlement, on the date of acquisition, was $14 million and was recorded in other income (expense) in the consolidated statement of operations for the year ended October 31, 2012. | ||||||||
The Dako acquisition was accounted for in accordance with the authoritative accounting guidance. The acquired assets and assumed liabilities were recorded by Agilent at their estimated fair values. Agilent determined the estimated fair values with the assistance of appraisals or valuations performed by third party specialists, discounted cash flow analyses, and estimates made by management. We expect to realize revenue synergies, leverage and expand the existing sales channels and product development resources, and utilize the assembled workforce. The company also anticipates opportunities for growth through expanded geographic and customer segment diversity and the ability to leverage additional products and capabilities. These factors, among others, contributed to a purchase price in excess of the estimated fair value of Dako's net identifiable assets acquired (see summary of net assets below), and, as a result, we have recorded goodwill in connection with this transaction. | ||||||||
All goodwill was allocated to the life sciences and diagnostics segment. We do not expect the goodwill recognized to be deductible for income tax purposes. Any impairment charges made in the future associated with goodwill will not be tax deductible. | ||||||||
A portion of the overall purchase price was allocated to acquired intangible assets. Amortization expense associated with acquired intangible assets is not deductible for tax purposes. Therefore, approximately $185 million was established as a deferred tax liability for the future amortization of these intangibles and is included in "other long-term liabilities" in the table below. | ||||||||
The following table summarizes the allocation of the purchase price to the estimated fair values of the assets acquired and liabilities assumed on the closing date of June 21, 2012 (in millions): | ||||||||
Cash and cash equivalents | $ | 11 | ||||||
Accounts receivable | 96 | |||||||
Inventories | 90 | |||||||
Other current assets | 5 | |||||||
Property, plant and equipment | 146 | |||||||
Long term investments | 11 | |||||||
Intangible assets | 738 | |||||||
Other assets | 13 | |||||||
Goodwill | 1,382 | |||||||
Total assets acquired | 2,492 | |||||||
Accounts payable | (24 | ) | ||||||
Employee compensation and benefits | (24 | ) | ||||||
Other accrued liabilities | (47 | ) | ||||||
Long-term debt | (43 | ) | ||||||
Other long-term liabilities | (211 | ) | ||||||
Net assets acquired | $ | 2,143 | ||||||
The fair value of cash and cash equivalents, accounts receivable, other current assets, accounts payable and other accrued liabilities were generally determined using historical carrying values given the short-term nature of these assets and liabilities. | ||||||||
The fair values for acquired inventory, property, plant and equipment, and intangible assets were determined with the input from third party valuation specialists. | ||||||||
The fair values of certain other assets, investments, long-term debt, and certain other long-term liabilities were determined internally using historical carrying values and estimates made by management. | ||||||||
Valuations of intangible assets acquired | ||||||||
The components of intangible assets acquired in connection with the Dako acquisition were as follows (in millions): | ||||||||
Fair Value | Estimated | |||||||
Useful Life | ||||||||
Developed product technology | $ | 287 | 8 - 9 yrs | |||||
Customer relationships | 140 | 4 years | ||||||
Tradenames and trademarks | 128 | 12 years | ||||||
Total intangible assets subject to amortization | 555 | |||||||
In-process research and development | 183 | |||||||
Total intangible assets | $ | 738 | ||||||
As noted above, the intangible assets, including in-process research and development, were valued with input from valuation specialists. The In-Process Research and Development was valued using the multi-period excess earnings method under the income approach by discounting forecasted cash flows directly related to the products expecting to result from the projects, net of returns on contributory assets. The primary in-process project acquired relates to a major new product platform which was released and amortization began in the second quarter of fiscal 2013. See also Note 10, "Goodwill and other Intangible assets" for additional information. Total costs to complete for all Dako In- Process Research and Development were estimated at approximately $49 million over time as of the close date. | ||||||||
Acquisition and integration costs directly related to the Dako acquisition totaled $15 million and $15 million for the years ended October 31, 2013 and 2012, respectively and were recorded in selling, general and administrative expenses. Such costs are expensed in accordance with the authoritative accounting guidance. | ||||||||
The following represents pro forma operating results as if Dako had been included in the company's condensed consolidated statements of operations as of the beginning of fiscal 2011(in millions, except per share amounts): | ||||||||
2012 | 2011 | |||||||
Net revenue | $ | 7,100 | $ | 6,976 | ||||
Net income | $ | 1,145 | $ | 909 | ||||
Net income per share — basic | $ | 3.29 | $ | 2.62 | ||||
Net income per share — diluted | $ | 3.24 | $ | 2.56 | ||||
The pro forma financial information assumes that the companies were combined as of November 1, 2010 and include business combination accounting effects from the acquisition including amortization charges from acquired intangible assets, the impact on cost of sales due to the respective estimated fair value adjustments to inventory, changes to interest income for cash used in the acquisition, interest expense and currency losses associated with debt paid in connection with the acquisition and acquisition related transaction costs and tax related effects. The pro forma information as presented above is for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisition had taken place at the beginning of fiscal 2011. | ||||||||
The unaudited pro forma financial information for the year ended October 31, 2012 combines the historical results of Agilent for the year ended October 31, 2012 (which includes Dako after the acquisition date) and for Dako for the six months ended March 31, 2012 and the two months ended May 31, 2012. | ||||||||
The unaudited pro forma financial information for the year ended October 31, 2011 combines the historical results of Agilent for the year ended October 31, 2011 and for Dako the year ended December 31, 2011 (due to differences in reporting periods). | ||||||||
The unaudited pro financial information for the years ended October 31, 2012 and 2011 includes the fourth quarter of Dako's calendar reporting period, October 1, 2011 to December 31, 2011, in both years. |
SHAREBASED_COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended | |||||||||||||||||||||||||
Oct. 31, 2013 | ||||||||||||||||||||||||||
Share-based Compensation [Abstract] | ' | |||||||||||||||||||||||||
SHARE-BASED COMPENSATION | ' | |||||||||||||||||||||||||
4. SHARE-BASED COMPENSATION | ||||||||||||||||||||||||||
Agilent accounts for share-based awards in accordance with the provisions of the revised accounting guidance which requires the measurement and recognition of compensation expense for all share-based payment awards made to our employees and directors including employee stock option awards, restricted stock units, employee stock purchases made under our ESPP and performance share awards granted to selected members of our senior management under the LTPP based on estimated fair values. | ||||||||||||||||||||||||||
Description of Share-Based Plans | ||||||||||||||||||||||||||
Employee stock purchase plan. Effective November 1, 2000, we adopted the ESPP. The ESPP allows eligible employees to contribute up to ten percent of their base compensation to purchase shares of our common stock at 85 percent of the closing market price at purchase date. Shares authorized for issuance in connection with the ESPP are subject to an automatic annual increase of the lesser of one percent of the outstanding shares of common stock of Agilent on November 1, or an amount determined by the Compensation Committee of our Board of Directors. Under the terms of the ESPP, in no event shall the number of shares issued under the ESPP exceed 75 million shares. | ||||||||||||||||||||||||||
Under our ESPP, employees purchased 1,454,724 shares for $48 million in 2013, 1,405,774 shares for $47 million in 2012 and 1,205,431 shares for $43 million in 2011. As of October 31, 2013, the number of shares of common stock authorized and available for issuance under our ESPP was 37,709,692. This excludes the number of shares of common stock to be issued to participants in consideration of the aggregate participant contributions totaling $23 million as of October 31, 2013. | ||||||||||||||||||||||||||
Incentive compensation plans. On November 19, 2008 and March 11, 2009, the Compensation Committee of Board of Directors and the stockholders, respectively, approved the Agilent Technologies, Inc. 2009 Stock Plan (the "2009 Stock Plan") to replace the Company's 1999 Stock Plan and 1999 Stock Non-Employee Director Stock Plan and subsequently reserved 25 million shares of Company common stock that may be issued under the 2009 Plan, plus any shares forfeited or cancelled under the 1999 Stock Plan. The 2009 Stock Plan provides for the grant of awards in the form of stock options, stock appreciation rights ("SARs"), restricted stock, restricted stock units ("RSUs"), performance shares and performance units with performance-based conditions on vesting or exercisability, and cash awards. The 2009 Plan has a term of ten years. As of October 31, 2013, 12,522,185 shares were available for future awards under the 2009 Stock Plan. | ||||||||||||||||||||||||||
Stock options granted under the 2009 Stock Plans may be either "incentive stock options", as defined in Section 422 of the Internal Revenue Code, or non-statutory. Options generally vest at a rate of 25 percent per year over a period of four years from the date of grant and generally have a maximum contractual term of ten years. The exercise price for stock options is generally not less than 100 percent of the fair market value of our common stock on the date the stock award is granted. | ||||||||||||||||||||||||||
Effective November 1, 2003, the Compensation Committee of the Board of Directors approved the LTPP, which is a performance stock award program administered under the 2009 Stock Plan, for the company's executive officers and other key employees. Participants in this program are entitled to receive unrestricted shares of the company's stock after the end of a three-year period, if specified performance targets are met. LTPP awards are generally designed to meet the criteria of a performance award with the performance metrics and peer group comparison set at the beginning of the performance period. Based on the performance metrics the final award may vary from zero to 200 percent of the target award. The maximum contractual term for awards under the LTPP program is three years. We consider the dilutive impact of this program in our diluted net income per share calculation only to the extent that the performance conditions are met. | ||||||||||||||||||||||||||
In March 2007, we began to issue restricted stock units under our share-based plans. The estimated fair value of the restricted stock unit awards granted under the Stock Plans is determined based on the market price of Agilent's common stock on the date of grant adjusted for expected dividend yield. Restricted stock units generally vest, with some exceptions, at a rate of 25 percent per year over a period of four years from the date of grant. | ||||||||||||||||||||||||||
Impact of Share-based Compensation Awards | ||||||||||||||||||||||||||
We have recognized compensation expense based on the estimated grant date fair value method under the authoritative guidance. For all share-based awards we have recognized compensation expense using a straight-line amortization method. As the guidance requires that share-based compensation expense be based on awards that are ultimately expected to vest, estimated share-based compensation has been reduced for estimated forfeitures. | ||||||||||||||||||||||||||
The impact on our results for share-based compensation was as follows: | ||||||||||||||||||||||||||
Years Ended October 31, | ||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
Cost of products and services | $ | 20 | $ | 16 | $ | 16 | ||||||||||||||||||||
Research and development | 12 | 10 | 10 | |||||||||||||||||||||||
Selling, general and administrative | 56 | 50 | 47 | |||||||||||||||||||||||
Total share-based compensation expense | $ | 88 | $ | 76 | $ | 73 | ||||||||||||||||||||
At October 31, 2013 and 2012 there was no share-based compensation capitalized within inventory. The windfall income tax benefit realized from the exercised stock options and similar awards recognized was $2 million in 2013 and zero in 2012 and 2011, respectively. The weighted average grant date fair value of options, granted in 2013, 2012 and 2011 was $12.18, $13.69 and $12.48 per share, respectively. | ||||||||||||||||||||||||||
Included in the 2013 expense is incremental expense for acceleration of share-based compensation related to the announced workforce reduction plan of $3 million. In 2012 and 2011 the expense for the acceleration of share-based compensation related to the announced workforce reduction plan was immaterial. Upon termination of the employees impacted by workforce reduction, the non-vested Agilent awards held by these employees immediately vests. Employees have a period of up to three months in which to exercise the Agilent options before such options are cancelled. | ||||||||||||||||||||||||||
Valuation Assumptions | ||||||||||||||||||||||||||
For all periods presented, the fair value of share based awards for employee stock option awards was estimated using the Black-Scholes option pricing model. For all periods presented, shares granted under the LTPP were valued using a Monte Carlo simulation. The estimated fair value of restricted stock unit awards was determined based on the market price of Agilent's common stock on the date of grant adjusted for expected dividend yield. On January 17, 2012, the company's Board of Directors approved the initiation of quarterly cash dividends to the company's shareholders. The fair value of all the awards granted prior to the declaration of quarterly cash dividend was measured based on an expected dividend yield of 0%. The ESPP allows eligible employees to purchase shares of our common stock at 85 percent of the fair market value at the purchase date. | ||||||||||||||||||||||||||
The following assumptions were used to estimate the fair value of employee stock options and LTPP grants. | ||||||||||||||||||||||||||
Years Ended October 31, | ||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||
Stock Option Plans: | ||||||||||||||||||||||||||
Weighted average risk-free interest rate | 0.86% | 0.88% | 1.49% | |||||||||||||||||||||||
Dividend yield | 1% | 0% | 0% | |||||||||||||||||||||||
Weighted average volatility | 39% | 38% | 35% | |||||||||||||||||||||||
Expected life | 5.8 years | 5.8 years | 5.8 years | |||||||||||||||||||||||
LTPP: | ||||||||||||||||||||||||||
Volatility of Agilent shares | 37% | 41% | 40% | |||||||||||||||||||||||
Volatility of selected peer-company shares | 6%-64% | 17%-75% | 20%-76% | |||||||||||||||||||||||
Price-wise correlation with selected peers | 49% | 62% | 55% | |||||||||||||||||||||||
Both the Black-Scholes and Monte Carlo simulation fair value models require the use of highly subjective and complex assumptions, including the option's expected life and the price volatility of the underlying stock. For all the years presented, the expected stock price volatility assumption was determined using the historical volatility of Agilent's stock options over the most recent historical period equivalent to the expected life. | ||||||||||||||||||||||||||
For the grants awarded under the 2009 stock plan after November 1, 2010, we increased the period available to retirement eligible employees to exercise their options from three years at retirement date to the full contractual term of ten years. In developing our estimated life of our employee stock options of 5.8 years for 2011 to 2013, we considered the historical option exercise behavior of our executive employees who were granted the majority of the options in the annual grants made which we believe is representative of future behavior. | ||||||||||||||||||||||||||
Share-based Payment Award Activity | ||||||||||||||||||||||||||
Employee Stock Options | ||||||||||||||||||||||||||
The following table summarizes employee stock option award activity made to our employees and directors for 2013: | ||||||||||||||||||||||||||
Options | Weighted | |||||||||||||||||||||||||
Outstanding | Average | |||||||||||||||||||||||||
Exercise Price | ||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||
Outstanding at October 31, 2012 | 12,077 | $ | 30 | |||||||||||||||||||||||
Granted | 1,596 | $ | 36 | |||||||||||||||||||||||
Exercised | (4,037 | ) | $ | 28 | ||||||||||||||||||||||
Cancelled/Forfeited/Expired | (27 | ) | $ | 17 | ||||||||||||||||||||||
Outstanding at October 31, 2013 | 9,609 | $ | 32 | |||||||||||||||||||||||
Forfeited and expired options from total cancellations in 2013 were as follows: | ||||||||||||||||||||||||||
Options | Weighted | |||||||||||||||||||||||||
Cancelled | Average | |||||||||||||||||||||||||
Exercise Price | ||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||
Forfeited | — | $ | — | |||||||||||||||||||||||
Expired | 27 | $ | 17 | |||||||||||||||||||||||
Total Options Cancelled during 2013 | 27 | $ | 17 | |||||||||||||||||||||||
The options outstanding and exercisable for equity share-based payment awards at October 31, 2013 were as follows: | ||||||||||||||||||||||||||
Options Outstanding | Options Exercisable | |||||||||||||||||||||||||
Range of | Number | Weighted | Weighted | Aggregate | Number | Weighted | Weighted | Aggregate | ||||||||||||||||||
Exercise Prices | Outstanding | Average | Average | Intrinsic | Exercisable | Average | Average | Intrinsic | ||||||||||||||||||
Remaining | Exercise | Value | Remaining | Exercise | Value | |||||||||||||||||||||
Contractual | Price | Contractual | Price | |||||||||||||||||||||||
Life | Life | |||||||||||||||||||||||||
(in thousands) | (in years) | (in thousands) | (in thousands) | (in years) | (in thousands) | |||||||||||||||||||||
$0 - 25 | 1,507 | 2.4 | $ | 20 | $ | 45,750 | 1,507 | 2.4 | $ | 20 | $ | 45,750 | ||||||||||||||
$25.01 - 30 | 1,051 | 5.9 | $ | 29 | 22,418 | 691 | 5.8 | $ | 29 | 14,727 | ||||||||||||||||
$30.01 - 40 | 7,045 | 5.6 | $ | 35 | 112,829 | 3,870 | 3.4 | $ | 34 | 66,448 | ||||||||||||||||
$40.01 & over | 6 | 8.4 | $ | 45 | 33 | 1 | 8.4 | $ | 45 | 8 | ||||||||||||||||
9,609 | 5.1 | $ | 32 | $ | 181,030 | 6,069 | 3.4 | $ | 30 | $ | 126,933 | |||||||||||||||
The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value, based on the company's closing stock price of $50.76 at October 31, 2013, which would have been received by award holders had all award holders exercised their awards that were in-the-money as of that date. The total number of in-the-money awards exercisable at October 31, 2013 was approximately 6 million. | ||||||||||||||||||||||||||
The following table summarizes the aggregate intrinsic value of options exercised and the fair value of options granted in 2013, 2012 and 2011: | ||||||||||||||||||||||||||
Aggregate | Weighted | Per Share Value Using | ||||||||||||||||||||||||
Intrinsic Value | Average | Black-Scholes | ||||||||||||||||||||||||
Exercise | Model | |||||||||||||||||||||||||
Price | ||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||
Options exercised in fiscal 2011 | $ | 164,738 | $ | 27 | ||||||||||||||||||||||
Black-Scholes per share value of options granted during fiscal 2011 | $ | 12 | ||||||||||||||||||||||||
Options exercised in fiscal 2012 | $ | 38,188 | $ | 23 | ||||||||||||||||||||||
Black-Scholes per share value of options granted during fiscal 2012 | $ | 14 | ||||||||||||||||||||||||
Options exercised in fiscal 2013 | $ | 71,499 | $ | 28 | ||||||||||||||||||||||
Black-Scholes per share value of options granted during fiscal 2013 | $ | 12 | ||||||||||||||||||||||||
As of October 31, 2013, the unrecognized share-based compensation costs for outstanding stock option awards, net of expected forfeitures, was approximately $13 million which is expected to be amortized over a weighted average period of 2.2 years. The amount of cash received from the exercise of share-based awards granted was $161 million in 2013, $100 million in 2012 and $304 million in 2011. See Note 5, "Income Taxes" for the tax impact on share-based award exercises. | ||||||||||||||||||||||||||
Non-vested Awards | ||||||||||||||||||||||||||
The following table summarizes non-vested award activity in 2013 primarily for our LTPP and restricted stock unit awards: | ||||||||||||||||||||||||||
Shares | Weighted | |||||||||||||||||||||||||
Average | ||||||||||||||||||||||||||
Grant Price | ||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||
Non-vested at October 31, 2012 | 3,514 | $ | 35 | |||||||||||||||||||||||
Granted | 1,394 | $ | 38 | |||||||||||||||||||||||
Vested | (1,251 | ) | $ | 35 | ||||||||||||||||||||||
Forfeited | (76 | ) | $ | 38 | ||||||||||||||||||||||
Change in LTPP shares vested in the year due to performance conditions | (35 | ) | $ | 36 | ||||||||||||||||||||||
Non-vested at October 31, 2013 | 3,546 | $ | 37 | |||||||||||||||||||||||
As of October 31, 2013, the unrecognized share-based compensation costs for non-vested restricted stock awards, net of expected forfeitures, was approximately $54 million which is expected to be amortized over a weighted average period of 2.2 years. The total fair value of restricted stock awards vested was $44 million for 2013, $54 million for 2012 and $43 million for 2011. |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | |||||||||||||||
Oct. 31, 2013 | ||||||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||||||
PROVISION FOR INCOME TAXES | ' | |||||||||||||||
5. INCOME TAXES | ||||||||||||||||
The domestic and foreign components of income before taxes are: | ||||||||||||||||
Years Ended October 31, | ||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||
(in millions) | ||||||||||||||||
U.S. operations | $ | 39 | $ | 45 | $ | 88 | ||||||||||
Non-U.S. operations | 820 | 998 | 944 | |||||||||||||
Total income before taxes | $ | 859 | $ | 1,043 | $ | 1,032 | ||||||||||
The provision (benefit) for income taxes is comprised of: | ||||||||||||||||
Years Ended October 31, | ||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||
(in millions) | ||||||||||||||||
U.S. federal taxes: | ||||||||||||||||
Current | $ | 24 | $ | 6 | $ | (1 | ) | |||||||||
Deferred | 48 | (144 | ) | — | ||||||||||||
Non-U.S. taxes: | ||||||||||||||||
Current | 77 | 41 | (6 | ) | ||||||||||||
Deferred | (24 | ) | (22 | ) | 28 | |||||||||||
State taxes, net of federal benefit: | ||||||||||||||||
Current | 3 | 1 | (11 | ) | ||||||||||||
Deferred | 7 | 8 | 10 | |||||||||||||
Total provision | $ | 135 | $ | (110 | ) | $ | 20 | |||||||||
The income tax provision does not reflect potential future tax savings resulting from excess deductions associated with our various share-based award plans. | ||||||||||||||||
The significant components of deferred tax assets and deferred tax liabilities included on the consolidated balance sheet are: | ||||||||||||||||
October 31, | ||||||||||||||||
2013 | 2012 | |||||||||||||||
Deferred | Deferred Tax | Deferred | Deferred Tax | |||||||||||||
Tax Assets | Liabilities | Tax Assets | Liabilities | |||||||||||||
(in millions) | ||||||||||||||||
Inventory | $ | 32 | $ | — | $ | 24 | $ | — | ||||||||
Intangibles | — | 214 | — | 239 | ||||||||||||
Property, plant and equipment | 18 | — | 11 | — | ||||||||||||
Warranty reserves | 25 | — | 21 | — | ||||||||||||
Retiree medical benefits | — | — | 5 | — | ||||||||||||
Pension benefits | 42 | — | 136 | — | ||||||||||||
Employee benefits, other than retirement | 57 | — | 60 | — | ||||||||||||
Net operating loss, capital loss, and credit carryforwards | 263 | — | 293 | — | ||||||||||||
Unrealized gains/losses on investments | 24 | — | 26 | — | ||||||||||||
Unremitted earnings of foreign subsidiaries | — | 114 | — | 88 | ||||||||||||
Share-based compensation | 54 | — | 57 | — | ||||||||||||
Deferred revenue | 27 | — | 27 | — | ||||||||||||
Other | 36 | 3 | 51 | 1 | ||||||||||||
Subtotal | 578 | 331 | 711 | 328 | ||||||||||||
Tax valuation allowance | (85 | ) | — | (93 | ) | — | ||||||||||
Total deferred tax assets or deferred tax liabilities | $ | 493 | $ | 331 | $ | 618 | $ | 328 | ||||||||
The significant decrease in 2013 as compared to 2012 for the deferred tax asset relating to pension benefits is due mainly to the tax effect of changes in post-retirement pension plans recognized in other comprehensive income. The deferred tax liability relating to intangible assets is due primarily to acquired intangible assets from Dako. The amortization expenses associated with acquired intangible assets are not deductible for tax purposes. | ||||||||||||||||
Agilent records U.S. income taxes on the undistributed earnings of foreign subsidiaries unless the subsidiaries' earnings are considered indefinitely reinvested outside the U.S. As of October 31, 2013 the Company recognized a $114 million deferred tax liability for the overall residual tax expected to be imposed upon the repatriation of unremitted foreign earnings that are not considered permanently reinvested. As of October 31, 2013, the cumulative amount of undistributed earnings considered indefinitely reinvested was $6.1 billion. No deferred tax liability has been recognized on the basis difference created by such earnings since it is our intention to utilize those earnings in the company’s foreign operations. Because of the availability of U.S. foreign tax credits, the determination of the unrecognized deferred tax liability on these earnings is not practicable. | ||||||||||||||||
The breakdown between current and long-term deferred tax assets and deferred tax liabilities was as follows for the years 2013 and 2012: | ||||||||||||||||
October 31, | ||||||||||||||||
2013 | 2012 | |||||||||||||||
(in millions) | ||||||||||||||||
Current deferred tax assets (included within other current assets) | $ | 115 | $ | 95 | ||||||||||||
Long-term deferred tax assets (included within other assets) | 264 | 400 | ||||||||||||||
Current deferred tax liabilities (included within other accrued liabilities) | (4 | ) | (2 | ) | ||||||||||||
Long-term deferred tax liabilities (included within other long-term liabilities) | (213 | ) | (203 | ) | ||||||||||||
Total | $ | 162 | $ | 290 | ||||||||||||
Valuation allowances require an assessment of both positive and negative evidence when determining whether it is more likely than not that deferred tax assets are recoverable. Such assessment is required on a jurisdiction by jurisdiction basis. In the fourth quarter of 2012, management concluded that the valuation allowance for most of Agilent's U.S. federal and state deferred tax assets is no longer needed primarily due to the emergence from cumulative losses in recent years, the return to sustainable U.S. operating profits and the expectation of sustainable profitability in future periods. As of October 31, 2012, the cumulative positive evidence outweighed the negative evidence regarding the likelihood that most of the deferred tax asset for Agilent's U.S. consolidated income tax group will be realized. Accordingly, we recognized a non-recurring tax benefit of $280 million relating to the valuation allowance reversal. As of October 31, 2013, we continued to maintain a valuation allowance of $85 million until sufficient positive evidence exists to support reversal. The valuation allowance is mainly related to deferred tax assets for California R&D credits and net operating losses in the Netherlands. | ||||||||||||||||
At October 31, 2013, we had federal net operating loss carryforwards of approximately $22 million and tax credit carryforwards of approximately $113 million. The federal net operating losses expire in years beginning 2021 through 2026, and the federal tax credits begin to expire in 2018, if not utilized. At October 31, 2013, we had state net operating loss carryforwards of approximately $161 million which expire in years beginning 2014 through 2031, if not utilized. In addition, we had net state tax credit carryforwards of $26 million that do not expire. All of the federal and some of the state net operating loss carryforwards are subject to change of ownership limitations provided by the Internal Revenue Code and similar state provisions. At October 31, 2013, we also had foreign net operating loss carryforwards of approximately $472 million. Of this foreign loss, $237 million will expire in years beginning 2014 through 2022, if not utilized. The remaining $235 million has an indefinite life. Some of the foreign losses are subject to annual loss limitation rules. These annual loss limitations in the U.S. and foreign jurisdictions may result in the expiration or reduced utilization of the net operating losses. | ||||||||||||||||
The authoritative guidance prohibits recognition of a deferred tax asset for excess tax benefits related to stock and stock option plans that have not yet been realized through reduction in income taxes payable. Such unrecognized deferred tax benefit totals $150 million as of October 31, 2013 and will be accounted for as a credit to shareholders' equity, if and when realized, through a reduction in income taxes payable. The Company recognized approximately $68 million as a credit to shareholders' equity for cumulative excess tax benefits related to stock and stock option plans that have been realized as of October 31, 2013. | ||||||||||||||||
The differences between the U.S. federal statutory income tax rate and our effective tax rate are: | ||||||||||||||||
Years Ended October 31, | ||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||
(in millions) | ||||||||||||||||
Profit before tax times statutory rate | $ | 301 | $ | 365 | $ | 361 | ||||||||||
State income taxes, net of federal benefit | 7 | 8 | (1 | ) | ||||||||||||
Non-U.S. income taxed at different rates | (162 | ) | (144 | ) | (153 | ) | ||||||||||
Change in unrecognized non-U.S. tax benefits | — | (68 | ) | (97 | ) | |||||||||||
Valuation allowances | (8 | ) | (280 | ) | (84 | ) | ||||||||||
Other, net | (3 | ) | 9 | (6 | ) | |||||||||||
Provision for income taxes | $ | 135 | $ | (110 | ) | $ | 20 | |||||||||
Effective tax rate | 16 | % | (11 | )% | 2 | % | ||||||||||
Agilent enjoys tax holidays in several different jurisdictions, most significantly in Singapore. The tax holidays provide lower rates of taxation on certain classes of income and require various thresholds of investments and employment or specific types of income in those jurisdictions. The tax holidays are due for renewal between 2015 and 2023. As a result of the incentives, the impact of the tax holidays decreased income taxes by $127 million, $122 million, and $127 million in 2013, 2012, and 2011, respectively. The benefit of the tax holidays on net income per share (diluted) was approximately $0.37, $0.35, and $0.36 in 2013, 2012 and 2011, respectively. | ||||||||||||||||
For 2013, the effective tax rate was 16 percent. The 16 percent effective tax rate is lower than the U.S. statutory rate primarily due to the mix of earnings in non-U.S. jurisdictions taxed at lower statutory rates; in particular Singapore where we enjoy tax holidays. The effective tax rate also included a $12 million out-of-period adjustment to increase tax expense, recognized in the second quarter of 2013, associated with the write off of deferred tax assets related to foreign tax credits incorrectly claimed in prior years. | ||||||||||||||||
For 2012, the effective tax was a benefit of 11 percent. The11 percent effective tax rate benefit reflected tax on earnings in jurisdictions that had low effective tax rates and includes a $280 million tax benefit due to the reversal of a valuation allowance for most U.S. federal and state deferred tax assets. Valuation allowances require an assessment of both positive and negative evidence when determining whether it is more likely than not that deferred tax assets are recoverable. Such assessment is required on a jurisdiction by jurisdiction basis. In the fourth quarter of 2012, management concluded that the valuation allowance for most of Agilent's U.S. federal and state deferred tax assets is no longer needed primarily due to the emergence from cumulative losses in recent years, the return to sustainable U.S. operating profits and the expectation of sustainable profitability in future periods. As of October 31, 2012, the cumulative positive evidence outweighed the negative evidence regarding the likelihood that most of the deferred tax asset for Agilent's U.S. consolidated income tax group will be realized. Accordingly, the Company recognized a non-recurring tax benefit of $280 million relating to the valuation allowance reversal. The effective tax rate also included a non-recurring tax expense of $88 million relating to an increase in the overall residual U.S. tax expected to be imposed upon the repatriation of unremitted foreign earnings previously considered permanently reinvested. During the fourth quarter of 2012, the Company assessed the forecasted cash needs and the overall financial position of its foreign subsidiaries and determined that a portion of previously permanently reinvested earnings would no longer be reinvested overseas. The effective tax rate was also reduced by a $68 million tax benefit primarily associated with the recognition of previously unrecognized tax benefits and the reversal of the related interest accruals due to the reassessment of certain uncertain tax positions relating to foreign jurisdictions. | ||||||||||||||||
For 2011, the effective tax rate was 2 percent. The 2 percent effective tax rate reflected tax on earnings in jurisdictions that had low effective tax rates and included a $97 million net tax benefit primarily associated with a refund in Canada and the recognition of previously unrecognized tax benefits and the reversal of the related interest accruals due to the reassessment of certain uncertain tax positions. The income tax provision also included a $26 million out of period adjustment to reduce the carrying value of certain U.K. deferred tax assets for which the majority was recorded in the quarter ended April 30, 2011. The overstatement of these deferred tax assets resulted in an overstatement of the U.K. valuation allowance release in the fourth quarter of 2010. For the full year, this out of period adjustment was substantially offset by other out of period adjustments. The net impact of all out of period adjustments on the effective tax rate was immaterial. Without considering interest and penalties, the effective rate reflected taxes in all jurisdictions except the U.S. and certain foreign jurisdictions in which income tax expense or benefit continued to be offset by adjustments to valuation allowances. | ||||||||||||||||
The breakdown between current and long-term income tax assets and liabilities, excluding deferred tax assets and liabilities, was as follows for the years 2013 and 2012: | ||||||||||||||||
October 31, | ||||||||||||||||
2013 | 2012 | |||||||||||||||
(in millions) | ||||||||||||||||
Current income tax assets (included within other current assets) | $ | 42 | $ | 65 | ||||||||||||
Long-term income tax assets (included within other assets) | 34 | 49 | ||||||||||||||
Current income tax liabilities (included within other accrued liabilities) | (48 | ) | (115 | ) | ||||||||||||
Long-term income tax liabilities (included within other long-term liabilities) | (341 | ) | (320 | ) | ||||||||||||
Total | $ | (313 | ) | $ | (321 | ) | ||||||||||
The calculation of our tax liabilities involves dealing with uncertainties in the application of complex tax law and regulations in a multitude of jurisdictions. Although the guidance on the accounting for uncertainty in income taxes prescribes the use of a recognition and measurement model, the determination of whether an uncertain tax position has met those thresholds will continue to require significant judgment by management. In accordance with the guidance on the accounting for uncertainty in income taxes, for all U.S. and other tax jurisdictions, we recognize potential liabilities for anticipated tax audit issues based on our estimate of whether, and the extent to which, additional taxes and interest will be due. The ultimate resolution of tax uncertainties may differ from what is currently estimated, which could result in a material impact on income tax expense. If our estimate of income tax liabilities proves to be less than the ultimate assessment, a further charge to expense would be required. If events occur and the payment of these amounts ultimately proves to be unnecessary, the reversal of the liabilities would result in tax benefits being recognized in the period when we determine the liabilities are no longer necessary. | ||||||||||||||||
The aggregate changes in the balances of our unrecognized tax benefits including all federal, state and foreign tax jurisdictions are as follows: | ||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||
(in millions) | ||||||||||||||||
Balance, beginning of year | $ | 464 | $ | 469 | $ | 656 | ||||||||||
Additions for acquisitions | — | — | — | |||||||||||||
Additions for tax positions related to the current year | 53 | 56 | 41 | |||||||||||||
Additions for tax positions from prior years | 11 | 40 | 18 | |||||||||||||
Reductions for tax positions from prior years | (6 | ) | (90 | ) | (170 | ) | ||||||||||
Settlements with taxing authorities | (3 | ) | (2 | ) | (67 | ) | ||||||||||
Statute of limitations expirations | (3 | ) | (9 | ) | (9 | ) | ||||||||||
Balance, end of year | $ | 516 | $ | 464 | $ | 469 | ||||||||||
As of October 31, 2013, we had $516 million of unrecognized tax benefits of which $499 million, if recognized, would affect our effective tax rate. | ||||||||||||||||
We recognized a tax expense of $5 million, a tax benefit of $4 million and a tax expense of $14 million of interest and penalties related to unrecognized tax benefits in 2013, 2012 and 2011, respectively. Interest and penalties accrued as of October 31, 2013 and 2012 were $39 million and $34 million, respectively. | ||||||||||||||||
In the U.S., tax years remain open back to the year 2006 for federal income tax purposes and the year 2000 for significant states. Our U.S. federal income tax returns for 2006 through 2007 are currently under audit by the IRS. During the three months ended July 31, 2012, we received a Revenue Agents Report (“RAR”) for these years and filed a protest to dispute certain adjustments, the most significant of which pertains to the amount of a gain from the disposition of a business that was allocated to the U.S. for income tax purposes. There can be no assurance that the outcome of this dispute will not have a material effect on our operating results or financial condition. In other major jurisdictions where we conduct business, the tax years generally remain open back to the year 2003. With these jurisdictions and the U.S., it is reasonably possible that there could be significant changes to our unrecognized tax benefits in the next twelve months due to either the expiration of a statute of limitation or a tax audit settlement. Given the number of years and numerous matters that remain subject to examination in various tax jurisdictions, we are unable to estimate the range of possible changes to the balance of our unrecognized tax benefits. |
NET_INCOME_LOSS_PER_SHARE
NET INCOME (LOSS) PER SHARE | 12 Months Ended | |||||||||||
Oct. 31, 2013 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
NET INCOME (LOSS) PER SHARE | ' | |||||||||||
6. NET INCOME PER SHARE | ||||||||||||
The following is a reconciliation of the numerators and denominators of the basic and diluted net income per share computations for the periods presented below. | ||||||||||||
Years Ended October 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(in millions) | ||||||||||||
Numerator: | ||||||||||||
Net income | $ | 724 | $ | 1,153 | $ | 1,012 | ||||||
Denominators: | ||||||||||||
Basic weighted average shares | 341 | 348 | 347 | |||||||||
Potentially dilutive common stock equivalents — stock options and other employee stock plans | 4 | 5 | 8 | |||||||||
Diluted weighted average shares | 345 | 353 | 355 | |||||||||
The dilutive effect of share-based awards is reflected in diluted net income per share by application of the treasury stock method, which includes consideration of unamortized share-based compensation expense, the tax benefits or shortfalls charged to additional paid-in capital and the dilutive effect of in-the-money options and non-vested restricted stock units. Under the treasury stock method, the amount the employee must pay for exercising stock options and unamortized share-based compensation expense and tax benefits or shortfalls collectively are assumed proceeds to be used to repurchase hypothetical shares. An increase in the fair market value of the company's common stock can result in a greater dilutive effect from potentially dilutive awards. The total number of share-based awards issued in 2013, 2012 and 2011 were 6 million, 5 million and 12 million, respectively. | ||||||||||||
We exclude stock options with exercise prices greater than the average market price of our common stock from the calculation of diluted earnings per share because their effect would be anti-dilutive. For 2013, 2012 and 2011, options to purchase 4,200, 436,500 and 554,000 shares respectively were excluded from the calculation of diluted earnings per share. In addition, we also exclude from the calculation of diluted earnings per share, stock options, ESPP, LTPP and restricted stock awards whose combined exercise price, unamortized fair value and excess tax benefits or shortfalls collectively were greater than the average market price of our common stock because their effect would also be anti-dilutive. For the year ended 2013, 2012 and 2011, options to purchase 18,300, 1,544,600 and 115,200 shares respectively were excluded from the calculation of diluted earnings per share. |
SUPPLEMENTAL_CASH_FLOW_INFORMA
SUPPLEMENTAL CASH FLOW INFORMATION | 12 Months Ended |
Oct. 31, 2013 | |
Supplemental Cash Flow Information [Abstract] | ' |
SUPPLEMENTAL CASH FLOW INFORMATION | ' |
7. SUPPLEMENTAL CASH FLOW INFORMATION | |
Net cash paid for income taxes was $110 million in 2013, $86 million in 2012, and $22 million in 2011. Cash paid for interest was $112 million in 2013, $111 million in 2012 and $95 million in 2011. |
INVENTORY
INVENTORY | 12 Months Ended | |||||||
Oct. 31, 2013 | ||||||||
Inventory, Net [Abstract] | ' | |||||||
INVENTORY | ' | |||||||
8. INVENTORY | ||||||||
October 31, | ||||||||
2013 | 2012 | |||||||
(in millions) | ||||||||
Finished goods | $ | 552 | $ | 509 | ||||
Purchased parts and fabricated assemblies | 514 | 505 | ||||||
Inventory | $ | 1,066 | $ | 1,014 | ||||
Inventory-related excess and obsolescence charges of $48 million were recorded in total cost of products in 2013, and $30 million each in 2012 and 2011, respectively. We record excess and obsolete inventory charges for both inventory on our site as well as inventory at our contract manufacturers and suppliers where we have non-cancellable purchase commitments. |
PROPERTY_PLANT_AND_EQUIPMENT_N
PROPERTY, PLANT AND EQUIPMENT, NET | 12 Months Ended | |||||||
Oct. 31, 2013 | ||||||||
Property, Plant and Equipment, Net [Abstract] | ' | |||||||
PROPERTY, PLANT AND EQUIPMENT, NET | ' | |||||||
9. PROPERTY, PLANT AND EQUIPMENT, NET | ||||||||
October 31, | ||||||||
2013 | 2012 | |||||||
(in millions) | ||||||||
Land | $ | 131 | $ | 142 | ||||
Buildings and leasehold improvements | 1,330 | 1,475 | ||||||
Machinery and equipment | 1,019 | 882 | ||||||
Software | 398 | 383 | ||||||
Total property, plant and equipment | 2,878 | 2,882 | ||||||
Accumulated depreciation and amortization | (1,744 | ) | (1,718 | ) | ||||
Property, plant and equipment, net | $ | 1,134 | $ | 1,164 | ||||
Asset impairments other than restructuring were $3 million in 2013, zero in 2012 and $7 million in 2011. Depreciation expenses were $181 million in 2013, $171 million in 2012 and $142 million in 2011. For the year ended October 31, 2012 we recorded $15 million of accelerated depreciation related to a building classified as held and used. In accordance with the accounting guidance, it was determined that the building had been abandoned and an assessment was made of the remaining useful life of the building. The building was written down to its appropriate fair value. |
GOODWILL_AND_OTHER_INTANGIBLE_
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended | |||||||||||||||
Oct. 31, 2013 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||
GOODWILL AND OTHER INTANGIBLE ASSETS | ' | |||||||||||||||
10. GOODWILL AND OTHER INTANGIBLE ASSETS | ||||||||||||||||
The goodwill balances at October 31, 2013, 2012 and 2011 and the movements in 2013 and 2012 for each of our reportable segments are shown in the table below: | ||||||||||||||||
Life Sciences and Diagnostics | Chemical | Electronic | Total | |||||||||||||
Analysis | Measurement | |||||||||||||||
(in millions) | ||||||||||||||||
Goodwill as of October 31, 2011 | $ | 363 | $ | 760 | $ | 444 | $ | 1,567 | ||||||||
Foreign currency translation impact | 25 | (10 | ) | (9 | ) | 6 | ||||||||||
Goodwill arising from acquisitions | 1,419 | 1 | 32 | 1,452 | ||||||||||||
Goodwill as of October 31, 2012 | $ | 1,807 | $ | 751 | $ | 467 | $ | 3,025 | ||||||||
Foreign currency translation impact | 63 | (10 | ) | (47 | ) | 6 | ||||||||||
Goodwill arising from acquisitions and other adjustments | 13 | 4 | (1 | ) | 16 | |||||||||||
Goodwill as of October 31, 2013 | $ | 1,883 | $ | 745 | $ | 419 | $ | 3,047 | ||||||||
We formed a new operating segment in the fourth fiscal quarter of 2013. The new life sciences and diagnostics segment was formed by the combination of the life sciences business plus the diagnostics and genomics business. The historical segment information for the life sciences and diagnostics segment has been recast to conform to this new reporting structure. The goodwill balance as of October 31, 2011 has been revised due to miscategorization at acquisition. $4 million of goodwill from the life sciences and diagnostics segment and $5 million of goodwill from the chemical analysis segment has been reallocated to the electronic measurement segment. As of September 30, 2013, we assessed goodwill impairment for our reporting units and no impairment of goodwill was indicated. | ||||||||||||||||
The component parts of other intangible assets at October 31, 2013 and 2012 are shown in the table below: | ||||||||||||||||
Other Intangible Assets | ||||||||||||||||
Gross | Accumulated | Net Book | ||||||||||||||
Carrying | Amortization | Value | ||||||||||||||
Amount | and Impairments | |||||||||||||||
(in millions) | ||||||||||||||||
As of October 31, 2012: | ||||||||||||||||
Purchased technology | $ | 849 | $ | 333 | $ | 516 | ||||||||||
Backlog | 14 | 14 | — | |||||||||||||
Trademark/Tradename | 168 | 27 | 141 | |||||||||||||
Customer relationships | 391 | 155 | 236 | |||||||||||||
Total amortizable intangible assets | $ | 1,422 | $ | 529 | $ | 893 | ||||||||||
In-Process R&D | 193 | — | 193 | |||||||||||||
Total | $ | 1,615 | $ | 529 | $ | 1,086 | ||||||||||
As of October 31, 2013: | ||||||||||||||||
Purchased technology | $ | 1,019 | $ | 460 | $ | 559 | ||||||||||
Backlog | 14 | 14 | — | |||||||||||||
Trademark/Tradename | 176 | 40 | 136 | |||||||||||||
Customer relationships | 401 | 215 | 186 | |||||||||||||
Total amortizable intangible assets | $ | 1,610 | $ | 729 | $ | 881 | ||||||||||
In-Process R&D | 35 | — | 35 | |||||||||||||
Total | $ | 1,645 | $ | 729 | $ | 916 | ||||||||||
In 2013, we recorded additions to goodwill of $16 million related to the acquisition of four businesses. During the year, we also recorded $5 million of additions and adjustments to other intangibles mostly related to the same four businesses. We recorded $25 million of foreign exchange translation impact to other intangibles in 2013. The $158 million decrease in in-process R&D was largely due to the completion of projects in our life sciences and diagnostics segment. | ||||||||||||||||
In 2012, we recorded additions to goodwill of $1,452 million related to ten businesses including the Dako acquisition discussed in Note 3, "Acquisitions". During the year, we also recorded additions to other intangibles of $786 million including $183 million of Dako in-process research and development, related to the same ten businesses. We recorded $8 million of foreign exchange translation impact to other intangibles in 2012. | ||||||||||||||||
Amortization of intangible assets was $199 million in 2013, $136 million in 2012, and $111 million in 2011. In addition, we recorded $1 million of impairments of other intangibles related to the cancellation of an in-process research and development project during 2013. Future amortization expense related to finite-lived existing purchased intangible assets is estimated to be $194 million in 2014, $181 million for 2015, $154 million for 2016, $106 million for 2017, $70 million for 2018, and $176 million thereafter. |
INVESTMENTS
INVESTMENTS | 12 Months Ended | ||||||||||||||||
Oct. 31, 2013 | |||||||||||||||||
Schedule of Investments [Abstract] | ' | ||||||||||||||||
INVESTMENTS | ' | ||||||||||||||||
11. INVESTMENTS | |||||||||||||||||
Equity Investments | |||||||||||||||||
The following table summarizes the company's equity investments as of October 31, 2013 and 2012 (net book value): | |||||||||||||||||
October 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
(in millions) | |||||||||||||||||
Short-Term | |||||||||||||||||
Cost method investments | $ | — | 11 | ||||||||||||||
Long-Term | |||||||||||||||||
Cost method investments | $ | 44 | $ | 59 | |||||||||||||
Trading securities | 51 | 50 | |||||||||||||||
Available-for-sale investments | 25 | — | |||||||||||||||
Equity method investments | 19 | — | |||||||||||||||
Total | $ | 139 | $ | 109 | |||||||||||||
Cost method investments consist of non-marketable equity securities and two funds and are accounted for at historical cost. Trading securities are reported at fair value, with gains or losses resulting from changes in fair value recognized currently in earnings. Investments designated as available-for-sale were reported at fair value, with unrealized gains and losses, net of tax, included in stockholders' equity. Equity method investments are reported at the amount of the company’s initial investment and adjusted each period for the company’s share of the investee’s income or loss and dividend paid. | |||||||||||||||||
Investments in available-for-sale securities at estimated fair value were as follows as of October 31, 2013: | |||||||||||||||||
31-Oct-13 | |||||||||||||||||
Cost | Gross | Gross | Estimated | ||||||||||||||
Unrealized | Unrealized | Fair | |||||||||||||||
Gains | Losses | Value | |||||||||||||||
(in millions) | |||||||||||||||||
Equity securities | 15 | 10 | — | 25 | |||||||||||||
$ | 15 | $ | 10 | $ | — | $ | 25 | ||||||||||
All of our investments, excluding trading securities, are subject to periodic impairment review. The impairment analysis requires significant judgment to identify events or circumstances that would likely have significant adverse effect on the future value of the investment. We consider various factors in determining whether an impairment is other-than-temporary, including the severity and duration of the impairment, forecasted recovery, the financial condition and near-term prospects of the investee, and our ability and intent to hold the investment for a period of time sufficient to allow for any anticipated recovery in market value. | |||||||||||||||||
Amounts included in other income (expense), net for realized gains on the sale of available-for-sale securities and the appropriate share of loss on equity method investments were as follows: | |||||||||||||||||
Years Ended October 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
(in millions) | |||||||||||||||||
Available-for-sale investments — realized gain | $ | 1 | $ | 2 | $ | 6 | |||||||||||
Equity method investments - share of losses | (2 | ) | $ | — | $ | — | |||||||||||
Net unrealized gains and losses on our trading securities portfolio were $8 million of unrealized gains in 2013, $5 million of unrealized gains in 2012 and $1 million of unrealized gains in 2011. | |||||||||||||||||
Realized gains from the sale of cost method securities were zero for 2013, $2 million for 2012 and zero for 2011. Proceeds from the sale of cost method investments were $11 million in 2013. | |||||||||||||||||
Investments in Leases | |||||||||||||||||
In February 2001, we sold a parcel of surplus land in San Jose, California for $287 million in cash. In August 2001, we acquired a long-term leasehold interest in several municipal properties in southern California. In 2002, we received $237 million in non-refundable prepaid rent related to the leasehold interests described above. | |||||||||||||||||
In December 2011, we terminated our leasehold interest in the municipal properties, received $80 million in cash and recognized a loss of approximately $2 million. |
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended | |||||||||||||||
Oct. 31, 2013 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
FAIR VALUE MEASUREMENTS | ' | |||||||||||||||
12. FAIR VALUE MEASUREMENTS | ||||||||||||||||
The authoritative guidance defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, we consider the principal or most advantageous market and assumptions that market participants would use when pricing the asset or liability. | ||||||||||||||||
Fair Value Hierarchy | ||||||||||||||||
The guidance establishes a fair value hierarchy that prioritizes the use of inputs used in valuation techniques into three levels. A financial instrument's categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. There are three levels of inputs that may be used to measure fair value: | ||||||||||||||||
Level 1 — applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. | ||||||||||||||||
Level 2 — applies to assets or liabilities for which there are inputs other than quoted prices included within level 1 that are observable, either directly or indirectly, for the asset or liability such as: quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in less active markets; or other inputs that can be derived principally from, or corroborated by, observable market data. | ||||||||||||||||
Level 3 — applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. | ||||||||||||||||
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | ||||||||||||||||
Financial assets and liabilities measured at fair value on a recurring basis as of October 31, 2013 were as follows: | ||||||||||||||||
Fair Value Measurement at | ||||||||||||||||
October 31, 2013 Using | ||||||||||||||||
October 31, | Quoted Prices | Significant | Significant | |||||||||||||
2013 | in Active | Other | Unobservable | |||||||||||||
Markets for | Observable | Inputs | ||||||||||||||
Identical Assets | Inputs | (Level 3) | ||||||||||||||
(Level 1) | (Level 2) | |||||||||||||||
(in millions) | ||||||||||||||||
Assets: | ||||||||||||||||
Short-term | ||||||||||||||||
Cash equivalents (money market funds) | $ | 1,968 | $ | 1,968 | $ | — | $ | — | ||||||||
Derivative instruments (foreign exchange contracts) | 7 | — | 7 | — | ||||||||||||
Long-term | ||||||||||||||||
Trading securities | 51 | 51 | — | — | ||||||||||||
Available-for-sale investments | 25 | 25 | — | — | ||||||||||||
Total assets measured at fair value | $ | 2,051 | $ | 2,044 | $ | 7 | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Short-term | ||||||||||||||||
Derivative instruments (foreign exchange contracts) | $ | 6 | $ | — | $ | 6 | $ | — | ||||||||
Long-term | ||||||||||||||||
Deferred compensation liability | 51 | — | 51 | — | ||||||||||||
Total liabilities measured at fair value | $ | 57 | $ | — | $ | 57 | $ | — | ||||||||
Financial assets and liabilities measured at fair value on a recurring basis as of October 31, 2012 were as follows: | ||||||||||||||||
Fair Value Measurement at | ||||||||||||||||
October 31, 2012 Using | ||||||||||||||||
October 31, | Quoted Prices | Significant | Significant | |||||||||||||
2012 | in Active | Other | Unobservable | |||||||||||||
Markets for | Observable | Inputs | ||||||||||||||
Identical Assets | Inputs | (Level 3) | ||||||||||||||
(Level 1) | (Level 2) | |||||||||||||||
(in millions) | ||||||||||||||||
Assets: | ||||||||||||||||
Short-term | ||||||||||||||||
Cash equivalents (money market funds) | $ | 1,834 | $ | 1,834 | $ | — | $ | — | ||||||||
Derivative instruments (foreign exchange and interest rate swap contracts) | 7 | — | 7 | — | ||||||||||||
Long-term | ||||||||||||||||
Trading securities | 50 | 50 | — | — | ||||||||||||
Total assets measured at fair value | $ | 1,891 | $ | 1,884 | $ | 7 | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Short-term | ||||||||||||||||
Derivative instruments (foreign exchange contracts) | $ | 6 | $ | — | $ | 6 | $ | — | ||||||||
Long-term | ||||||||||||||||
Deferred compensation liability | 48 | — | 48 | — | ||||||||||||
Total liabilities measured at fair value | $ | 54 | $ | — | $ | 54 | $ | — | ||||||||
Our money market funds, trading securities, and available-for-sale investments are generally valued using quoted market prices and therefore are classified within level 1 of the fair value hierarchy. Our derivative financial instruments are classified within level 2, as there is not an active market for each hedge contract, but the inputs used to calculate the value of the instruments are tied to active markets. Our deferred compensation liability is classified as level 2 because although the values are not directly based on quoted market prices, the inputs used in the calculations are observable. | ||||||||||||||||
Trading securities and deferred compensation liability are reported at fair value, with gains or losses resulting from changes in fair value recognized currently in net income. Investments designated as available-for-sale and certain derivative instruments are reported at fair value, with unrealized gains and losses, net of tax, included in stockholders' equity. Realized gains and losses from the sale of these instruments are recorded in net income. | ||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis | ||||||||||||||||
Long-Lived Assets | ||||||||||||||||
For assets measured at fair value on a non-recurring basis, the following table summarizes the impairments included in net income for the years ended October 31, 2013 and 2012: | ||||||||||||||||
Years Ended | ||||||||||||||||
October 31, | ||||||||||||||||
2013 | 2012 | |||||||||||||||
(in millions) | ||||||||||||||||
Long-lived assets held and used | $ | 2 | $ | 1 | ||||||||||||
Long-lived assets held for sale | $ | 1 | $ | — | ||||||||||||
Long-lived assets held and used with a carrying amount of $2 million were written down to their fair value of zero, resulting in an impairment charge of $2 million, which was included in net income for 2013. Long-lived assets held and used with a carrying amount of $1 million were written down to their fair value of zero, resulting in an impairment charge of $1 million, which was included in net income for 2012. | ||||||||||||||||
Long-lived assets held for sale with a carrying amount of $3 million were written down to their fair value of $2 million, resulting in an impairment charge of $1 million which was included in net income for 2013. | ||||||||||||||||
Fair values for the impaired long-lived assets were measured using level 2 inputs. |
DERIVATIVES
DERIVATIVES | 12 Months Ended | ||||||||||||||||||
Oct. 31, 2013 | |||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||
DERIVATIVES | ' | ||||||||||||||||||
13. DERIVATIVES | |||||||||||||||||||
We are exposed to foreign currency exchange rate fluctuations and interest rate changes in the normal course of our business. As part of risk management strategy, we use derivative instruments, primarily forward contracts, purchased options, and interest rate swaps, to hedge economic and/or accounting exposures resulting from changes in foreign currency exchange rates and interest rates. | |||||||||||||||||||
Fair Value Hedges | |||||||||||||||||||
We are exposed to interest rate risk due to the mismatch between the interest expense we pay on our loans at fixed rates and the variable rates of interest we receive from cash, cash equivalents and other short-term investments. We have issued long-term debt in U.S. dollars at fixed interest rates based on the market conditions at the time of financing. The fair value of our fixed rate debt changes when the underlying market rates of interest change, and, in the past, we have used interest rate swaps to change our fixed interest rate payments to U.S. dollar LIBOR-based variable interest expense to match the floating interest income from our cash, cash equivalents and other short term investments. As of October 31, 2013, all interest rate swap contracts had either been terminated or had expired. | |||||||||||||||||||
On November 25, 2008, we terminated two interest rate swap contracts associated with our 2017 senior notes that represented the notional amount of $400 million. The asset value, including interest receivable, upon termination was approximately $43 million and the amount to be amortized at October 31, 2013 was $22 million. On June 6, 2011, we also terminated five interest rate swap contracts associated with our 2015 senior notes that represented the notional amount of $500 million. The asset value, including interest receivable, upon termination was approximately $31 million and the amount to be amortized at October 31, 2013 was $12 million. On August 9, 2011, we terminated five interest rate swap contracts related to our 2020 senior notes that represented the notional amount of $500 million. The asset value, including interest receivable, upon termination for these contracts was approximately $34 million and the amount to be amortized at October 31, 2013 was $26 million. The proceeds from all such terminated interest rate swaps are recorded as operating cash flows and the gain is being deferred and amortized over the remaining life of the respective senior notes. | |||||||||||||||||||
Cash Flow Hedges | |||||||||||||||||||
We enter into foreign exchange contracts to hedge our forecasted operational cash flow exposures resulting from changes in foreign currency exchange rates. These foreign exchange contracts, carried at fair value, have maturities between one and twelve months. These derivative instruments are designated and qualify as cash flow hedges under the criteria prescribed in the authoritative guidance. The changes in the value of the effective portion of the derivative instrument are recognized in accumulated other comprehensive income. Amounts associated with cash flow hedges are reclassified to cost of sales in the consolidated statement of operations when the forecasted transaction occurs. If it becomes probable that the forecasted transaction will not occur, the hedge relationship will be de-designated and amounts accumulated in other comprehensive income will be reclassified to other income (expense) in the current period. Changes in the fair value of the ineffective portion of derivative instruments are recognized in earnings in the consolidated statement of operations in the current period. We record the premium paid (time value) of an option on the date of purchase as an asset. For options designated as cash flow hedges, changes in the time value are excluded from the assessment of hedge effectiveness and are recognized in other income (expense) over the life of the option contract. Ineffectiveness in 2013, 2012 and 2011 was not significant. For the year ended October 31, 2013, 2012 and 2011 gains and losses recognized in earnings due to de-designation of cash flow hedge contracts were not significant. | |||||||||||||||||||
In July 2012, Agilent executed treasury lock agreements for $400 million in connection with future interest payments to be made on our 2022 senior notes issued on September 10, 2012. We designated the treasury lock as a cash flow hedge. The treasury lock contracts were terminated on September 10, 2012 and we recognized a deferred gain in accumulated other comprehensive income of $3 million to be amortized to interest expense over the life of the 2022 senior notes. | |||||||||||||||||||
Other Hedges | |||||||||||||||||||
Additionally, we enter into foreign exchange contracts to hedge monetary assets and liabilities that are denominated in currencies other than the functional currency of our subsidiaries. These foreign exchange contracts are carried at fair value and do not qualify for hedge accounting treatment and are not designated as hedging instruments. Changes in value of the derivative are recognized in other income (expense) in the consolidated statement of operations, in the current period, along with the offsetting foreign currency gain or loss on the underlying assets or liabilities. | |||||||||||||||||||
In connection with the acquisition of Dako, Agilent entered into several foreign currency forward contracts to mitigate the currency exchange risk associated with the payment of the purchase price in Danish Krone and the repayment of debt in multiple currencies. The aggregate notional amount of the currencies hedged was $1.7 billion. These foreign exchange contracts did not qualify for hedge accounting treatment and were not designated as hedging instruments. The resulting loss on settlement, on the date of acquisition, was $14 million and was recorded in other income (expense) in the consolidated statement of operations for the year ended October 31, 2012. | |||||||||||||||||||
Our use of derivative instruments exposes us to credit risk to the extent that the counterparties may be unable to meet the terms of the agreement. We do, however, seek to mitigate such risks by limiting our counterparties to major financial institutions which are selected based on their credit ratings and other factors. We have established policies and procedures for mitigating credit risk that include establishing counterparty credit limits, monitoring credit exposures, and continually assessing the creditworthiness of counterparties. | |||||||||||||||||||
A number of our derivative agreements contain threshold limits to the net liability position with counterparties and are dependent on our corporate credit rating determined by the major credit rating agencies. The counterparties to the derivative instruments may request collateralization, in accordance with derivative agreements, on derivative instruments in net liability positions. | |||||||||||||||||||
The aggregate fair value of all derivative instruments with credit-risk-related contingent features that were in a net liability position as of October 31, 2013, was $3 million. The credit-risk-related contingent features underlying these agreements had not been triggered as of October 31, 2013. | |||||||||||||||||||
There were 151 foreign exchange forward contracts and 19 foreign exchange option contracts open as of October 31, 2013 and designated as cash flow hedges. There were 170 foreign exchange forward contracts open as of October 31, 2013 not designated as hedging instruments. The aggregated U.S. Dollar notional amounts by currency and designation as of October 31, 2013 were as follows: | |||||||||||||||||||
Derivatives in | Derivatives | ||||||||||||||||||
Cash Flow | Not | ||||||||||||||||||
Hedging Relationships | Designated | ||||||||||||||||||
as Hedging | |||||||||||||||||||
Instruments | |||||||||||||||||||
Forward | Option | Forward | |||||||||||||||||
Contracts | Contracts | Contracts | |||||||||||||||||
Currency | Buy/(Sell) | Buy/(Sell) | Buy/(Sell) | ||||||||||||||||
(in millions) | |||||||||||||||||||
Euro | $ | (23 | ) | $ | — | $ | 243 | ||||||||||||
British Pound | (17 | ) | — | 2 | |||||||||||||||
Canadian Dollar | (37 | ) | — | — | |||||||||||||||
Australian Dollars | 11 | — | 9 | ||||||||||||||||
Malaysian Ringgit | 113 | — | 14 | ||||||||||||||||
Japanese Yen | (56 | ) | (97 | ) | 3 | ||||||||||||||
Other | (9 | ) | — | (10 | ) | ||||||||||||||
$ | (18 | ) | $ | (97 | ) | $ | 261 | ||||||||||||
The notional amounts within derivatives not designated as hedging instruments include forward cross currency contracts of Danish Krone equivalent of $70 million to sell Euro, $6 million to sell Japanese Yen and $5 million to buy other currencies. | |||||||||||||||||||
Derivative instruments are subject to master netting arrangements and are disclosed gross in the balance sheet. The gross fair values and balance sheet location of derivative instruments held in the consolidated balance sheet as of October 31, 2013 and 2012 were as follows: | |||||||||||||||||||
Fair Values of Derivative Instruments | |||||||||||||||||||
Asset Derivatives | Liability Derivatives | ||||||||||||||||||
Fair Value | Fair Value | ||||||||||||||||||
Balance Sheet Location | October 31, | October 31, | Balance Sheet Location | October 31, | October 31, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||
(in millions) | |||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||
Fair value hedges | |||||||||||||||||||
Interest rate contracts | |||||||||||||||||||
Other current assets | $ | — | $ | — | Other accrued liabilities | $ | — | $ | — | ||||||||||
Other assets | $ | — | $ | — | Other long-term liabilities | $ | — | $ | — | ||||||||||
Cash flow hedges | |||||||||||||||||||
Foreign exchange contracts | |||||||||||||||||||
Other current assets | $ | 4 | $ | 4 | Other accrued liabilities | $ | 4 | $ | 2 | ||||||||||
$ | 4 | $ | 4 | $ | 4 | $ | 2 | ||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||
Foreign exchange contracts | |||||||||||||||||||
Other current assets | $ | 3 | $ | 3 | Other accrued liabilities | $ | 2 | $ | 4 | ||||||||||
Total derivatives | $ | 7 | $ | 7 | $ | 6 | $ | 6 | |||||||||||
The effect of derivative instruments for interest rate swap contracts and for foreign exchange contracts designated as hedging instruments and not designated as hedging instruments in our consolidated statement of operations were as follows: | |||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||
(in millions) | |||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||
Fair Value Hedges | |||||||||||||||||||
Gain on interest rate swap contracts, including interest accrual, recognized in interest expense | $ | — | $ | — | $ | 27 | |||||||||||||
Gain (loss) on hedged item, recognized in interest expense | $ | — | $ | 3 | $ | (3 | ) | ||||||||||||
Cash Flow Hedges | |||||||||||||||||||
Gain recognized in accumulated other comprehensive income | $ | 10 | $ | 7 | $ | — | |||||||||||||
Gain (loss) reclassified from accumulated other comprehensive income into cost of sales | $ | 13 | $ | 8 | $ | (5 | ) | ||||||||||||
Treasury Lock Agreements | |||||||||||||||||||
Gain recognized in accumulated other comprehensive income | $ | — | $ | 3 | $ | — | |||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||
Gain (loss) recognized in other income (expense), net | $ | 7 | $ | (34 | ) | $ | 13 | ||||||||||||
The estimated net amount of existing loss at October 31, 2013 that is expected to be reclassified from other comprehensive income to the cost of sales within the next twelve months is $1 million. |
RESTRUCTURING
RESTRUCTURING | 12 Months Ended | ||||
Oct. 31, 2013 | |||||
Restructuring and Related Activities [Abstract] | ' | ||||
RESTRUCTURING | ' | ||||
14. RESTRUCTURING | |||||
In the second quarter of 2013, in response to slow revenue growth due to macroeconomic conditions, we accrued for a targeted restructuring program that is expected to reduce Agilent's total headcount by approximately 450 regular employees, representing approximately 2 percent of our global workforce. The timing and scope of workforce reductions will vary based on local legal requirements. When completed, the restructuring program is expected to result in a reduction in annual cost of sales and operating expenses. | |||||
As previously announced, we are streamlining our manufacturing operations. As part of this action, we anticipate the reduction of approximately 250 positions to reduce our annual cost of sales. | |||||
Total headcount reductions from targeted restructuring and manufacturing streamlining will be approximately 700 positions. Within the U.S, we have substantially completed these restructuring activities. Internationally, we expect to complete the majority of these restructuring activities by the end of the second half of fiscal 2014. As of October 31, 2013, approximately 250 employees were terminated under the targeted restructuring program and 100 employees were terminated under the streamlining of manufacturing. | |||||
A summary of total restructuring accrual activity is shown in the table below: | |||||
Workforce | |||||
Reduction | |||||
(in millions) | |||||
Balance as of October 31, 2012 | $ | — | |||
Income statement expense | 53 | ||||
Cash payments | (29 | ) | |||
Balance as of October 31, 2013 | $ | 24 | |||
The restructuring accruals, which totaled $24 million at October 31, 2013, are recorded in other accrued liabilities on the consolidated balance sheet. These balances reflect estimated future cash outlays. | |||||
A summary of the charges in the consolidated statement of operations resulting from all restructuring plans is shown below: | |||||
Year Ended | |||||
October 31, | |||||
2013 | |||||
(in millions) | |||||
Cost of products and services | $ | 19 | |||
Research and development | 9 | ||||
Selling, general and administrative | 25 | ||||
Total restructuring, asset impairments and other special charges | $ | 53 | |||
RETIREMENT_PLANS_AND_POST_RETI
RETIREMENT PLANS AND POST RETIREMENT PENSION PLANS | 12 Months Ended | |||||||||||||||||||||||||||||||||||
Oct. 31, 2013 | ||||||||||||||||||||||||||||||||||||
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | ' | |||||||||||||||||||||||||||||||||||
RETIREMENT PLANS AND POST RETIREMENT PENSION PLANS | ' | |||||||||||||||||||||||||||||||||||
15. RETIREMENT PLANS AND POST RETIREMENT PENSION PLANS | ||||||||||||||||||||||||||||||||||||
General. Substantially all of our employees are covered under various defined benefit and/or defined contribution retirement plans. Additionally, we sponsor post-retirement health care benefits for our eligible U.S. employees. | ||||||||||||||||||||||||||||||||||||
Agilent provides U.S. employees, who meet eligibility criteria under the Agilent Technologies, Inc. Retirement Plan ("RP"), defined benefits which are based on an employee's base or target pay during the years of employment and on length of service. For eligible service through October 31, 1993, the benefit payable under the Agilent Retirement Plan is reduced by any amounts due to the eligible employee under our defined contribution Deferred Profit-Sharing Plan ("DPSP"), which was closed to new participants as of November 1993. | ||||||||||||||||||||||||||||||||||||
In addition, in the U.S., Agilent maintains the Supplemental Benefits Retirement Plan ("SBRP"), a supplemental unfunded non-qualified defined benefit plan to provide benefits that would be provided under the RP but for limitations imposed by the Internal Revenue Code. The RP and the SBRP comprise the "U.S. Plans". | ||||||||||||||||||||||||||||||||||||
As of October 31, 2013 and 2012, the fair value of plan assets of the DPSP for U.S. Agilent Employees was $552 million and $534 million, respectively. Note that the projected benefit obligation for the DPSP equals the fair value of plan assets. | ||||||||||||||||||||||||||||||||||||
Eligible employees outside the U.S. generally receive retirement benefits under various retirement plans based upon factors such as years of service and/or employee compensation levels. Eligibility is generally determined in accordance with local statutory requirements. | ||||||||||||||||||||||||||||||||||||
401(k) defined contribution plan. Eligible U.S. employees may participate in the Agilent Technologies, Inc. 401(k) Plan (the "401(k) Plan"). Enrollment in the 401(k) Plan is automatic for employees who meet eligibility requirements unless they decline participation. Under the 401(k) Plan, we provide matching contributions to employees up to a maximum of 4 percent of an employee's annual eligible compensation. The maximum contribution to the 401(k) Plan is 50 percent of an employee's annual eligible compensation, subject to regulatory limitations. The 401(k) Plan employer expense included in income from operations was $25 million in 2013, $25 million in 2012 and $24 million in 2011. | ||||||||||||||||||||||||||||||||||||
Post-retirement medical benefit plans. In addition to receiving retirement benefits, U.S. employees who meet eligibility requirements as of their termination date may participate in the Agilent Technologies, Inc. Health Plan for Retirees. Eligible retirees who were less than age 50 as of January 1, 2005 and who retire after age 55 with 15 or more years of service are eligible for a fixed amount which can be utilized to pay for either Agilent sponsored plans and/or individual medicare plans. Eligible retirees who were at least age 50 as of January 1, 2005 and who retire after age 55 with 15 or more years of service currently choose from managed-care, indemnity options or individual medicare plans, with the company subsidization level or stipend dependent on a number of factors including eligibility and length of service. See Plan Amendments below for changes to these benefits. | ||||||||||||||||||||||||||||||||||||
Plan Amendments. On April 1, 2011, changes to the Agilent Technologies, Inc. Health Plan for Retirees were approved. Effective January 1, 2012, employees who were at least age 50 as of January 1, 2005 and who retire after age 55 with 15 or more years of service are eligible for fixed dollar subsidies and stipends. Grandfathered retirees receive a fixed monthly subsidy toward pre-65 premium costs (subsidy capped at 2011 levels) and a fixed monthly stipend post-65. The subsidy amounts will not increase. In connection with these changes, we reduced our Accumulated Prospective Benefit Obligation by $194 million with the offset going to accumulated other comprehensive income. | ||||||||||||||||||||||||||||||||||||
Components of net periodic cost. The company uses alternate methods of amortization as allowed by the authoritative guidance which amortizes the actuarial gains and losses on a consistent basis for the years presented. For U.S. Plans, gains and losses are amortized over the average future working lifetime. For most Non-U.S. Plans and U.S. Post-Retirement Benefit Plans, gains and losses are amortized using a separate layer for each year's gains and losses. For the years ended October 31, 2013, 2012 and 2011, components of net periodic benefit cost and other amounts recognized in other comprehensive income were comprised of: | ||||||||||||||||||||||||||||||||||||
Pensions | U.S. Post-Retirement Benefit Plans | |||||||||||||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | |||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||
Net periodic benefit cost (benefit) | ||||||||||||||||||||||||||||||||||||
Service cost — benefits earned during the period | $ | 44 | $ | 40 | $ | 42 | $ | 36 | $ | 33 | $ | 32 | $ | 4 | $ | 3 | $ | 3 | ||||||||||||||||||
Interest cost on benefit obligation | 24 | 27 | 28 | 68 | 74 | 72 | 12 | 15 | 21 | |||||||||||||||||||||||||||
Expected return on plan assets | (51 | ) | (46 | ) | (44 | ) | (97 | ) | (92 | ) | (94 | ) | (20 | ) | (19 | ) | (21 | ) | ||||||||||||||||||
Amortization of net actuarial loss | 13 | 7 | 4 | 55 | 42 | 40 | 18 | 16 | 14 | |||||||||||||||||||||||||||
Amortization of prior service benefit | (12 | ) | (12 | ) | (12 | ) | (1 | ) | (1 | ) | (1 | ) | (35 | ) | (35 | ) | (26 | ) | ||||||||||||||||||
Net periodic benefit cost (benefit) | 18 | 16 | 18 | 61 | 56 | 49 | (21 | ) | (20 | ) | (9 | ) | ||||||||||||||||||||||||
Curtailments and settlements | — | — | (1 | ) | — | — | — | — | — | — | ||||||||||||||||||||||||||
Total periodic benefit cost (benefit) | $ | 18 | $ | 16 | $ | 17 | $ | 61 | $ | 56 | $ | 49 | $ | (21 | ) | $ | (20 | ) | $ | (9 | ) | |||||||||||||||
Other changes in plan assets and benefit obligations recognized in other comprehensive (income) loss | ||||||||||||||||||||||||||||||||||||
Net actuarial (gain) loss | $ | (122 | ) | $ | 69 | $ | 31 | $ | (85 | ) | $ | 214 | $ | 40 | $ | (57 | ) | $ | 22 | $ | 12 | |||||||||||||||
Amortization of net actuarial loss | (13 | ) | (7 | ) | (4 | ) | (55 | ) | (42 | ) | (40 | ) | (18 | ) | (16 | ) | (14 | ) | ||||||||||||||||||
Prior service cost (benefit) | — | — | — | — | — | 6 | — | — | (194 | ) | ||||||||||||||||||||||||||
Amortization of prior service benefit | 12 | 12 | 12 | 1 | 1 | 1 | 35 | 35 | 26 | |||||||||||||||||||||||||||
Foreign currency | — | — | — | 2 | (5 | ) | 11 | — | — | — | ||||||||||||||||||||||||||
Total recognized in other comprehensive (income) loss | $ | (123 | ) | $ | 74 | $ | 39 | $ | (137 | ) | $ | 168 | $ | 18 | $ | (40 | ) | $ | 41 | $ | (170 | ) | ||||||||||||||
Total recognized in net periodic benefit cost (benefit) and other comprehensive (income) loss | $ | (105 | ) | $ | 90 | $ | 56 | $ | (76 | ) | $ | 224 | $ | 67 | $ | (61 | ) | $ | 21 | $ | (179 | ) | ||||||||||||||
In 2011, due to payments exceeding the sum of service cost plus interest cost in the U.S. Supplemental Benefits Retirement Plan, we recorded a $1 million settlement gain in the income statement as required by authoritative guidance. | ||||||||||||||||||||||||||||||||||||
Funded status. As of October 31, 2013 and 2012, the funded status of the defined benefit and post-retirement benefit plans was: | ||||||||||||||||||||||||||||||||||||
U.S. Defined | Non-U.S. Defined | U.S. | ||||||||||||||||||||||||||||||||||
Benefit Plans | Benefit Plans | Post-Retirement | ||||||||||||||||||||||||||||||||||
Benefit Plans | ||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||
Change in fair value of plan assets: | ||||||||||||||||||||||||||||||||||||
Fair value — beginning of year | $ | 654 | $ | 578 | $ | 1,801 | $ | 1,684 | $ | 261 | $ | 258 | ||||||||||||||||||||||||
Actual return on plan assets | 132 | 65 | 267 | 158 | 47 | 25 | ||||||||||||||||||||||||||||||
Employer contributions | 30 | 30 | 89 | 54 | 1 | — | ||||||||||||||||||||||||||||||
Participants' contributions | — | — | 1 | — | — | — | ||||||||||||||||||||||||||||||
Benefits paid | (34 | ) | (19 | ) | (49 | ) | (46 | ) | (21 | ) | (22 | ) | ||||||||||||||||||||||||
Currency impact | — | — | (64 | ) | (49 | ) | — | — | ||||||||||||||||||||||||||||
Fair value — end of year | $ | 782 | $ | 654 | $ | 2,045 | $ | 1,801 | $ | 288 | $ | 261 | ||||||||||||||||||||||||
Change in benefit obligation: | ||||||||||||||||||||||||||||||||||||
Benefit obligation — beginning of year | $ | 771 | $ | 637 | $ | 2,117 | $ | 1,830 | $ | 343 | $ | 319 | ||||||||||||||||||||||||
Service cost | 44 | 40 | 36 | 33 | 4 | 3 | ||||||||||||||||||||||||||||||
Interest cost | 24 | 27 | 68 | 74 | 12 | 15 | ||||||||||||||||||||||||||||||
Participants' contributions | — | — | 1 | — | — | — | ||||||||||||||||||||||||||||||
Plan amendment | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Actuarial (gain) loss | (41 | ) | 87 | 85 | 280 | (31 | ) | 28 | ||||||||||||||||||||||||||||
Benefits paid | (35 | ) | (20 | ) | (49 | ) | (46 | ) | (21 | ) | (22 | ) | ||||||||||||||||||||||||
Curtailments | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Currency impact | — | — | (59 | ) | (54 | ) | — | — | ||||||||||||||||||||||||||||
Benefit obligation — end of year | $ | 763 | $ | 771 | $ | 2,199 | $ | 2,117 | $ | 307 | $ | 343 | ||||||||||||||||||||||||
Overfunded (underfunded) status of PBO | $ | 19 | $ | (117 | ) | $ | (154 | ) | $ | (316 | ) | $ | (19 | ) | $ | (82 | ) | |||||||||||||||||||
Amounts recognized in the consolidated balance sheet consist of: | ||||||||||||||||||||||||||||||||||||
Other assets | $ | 34 | $ | — | $ | 60 | $ | — | $ | — | $ | — | ||||||||||||||||||||||||
Employee compensation and benefits | (2 | ) | (2 | ) | — | — | — | — | ||||||||||||||||||||||||||||
Retirement and post-retirement benefits | (13 | ) | (115 | ) | (214 | ) | (316 | ) | (19 | ) | (82 | ) | ||||||||||||||||||||||||
Net asset (liability) | $ | 19 | $ | (117 | ) | $ | (154 | ) | $ | (316 | ) | $ | (19 | ) | $ | (82 | ) | |||||||||||||||||||
Amounts Recognized in Accumulated Other Comprehensive Income (loss): | ||||||||||||||||||||||||||||||||||||
Actuarial (gains) losses | $ | (8 | ) | $ | 127 | $ | 525 | $ | 683 | $ | 119 | $ | 194 | |||||||||||||||||||||||
Prior service costs (benefits) | (67 | ) | (79 | ) | (4 | ) | (8 | ) | (183 | ) | (218 | ) | ||||||||||||||||||||||||
Total | $ | (75 | ) | $ | 48 | $ | 521 | $ | 675 | $ | (64 | ) | $ | (24 | ) | |||||||||||||||||||||
The amounts in accumulated other comprehensive income expected to be recognized as components of net expense during 2014 are as follows: | ||||||||||||||||||||||||||||||||||||
U.S. Defined | Non-U.S. Defined | U.S. Post-Retirement | ||||||||||||||||||||||||||||||||||
Benefit Plans | Benefit Plans | Benefit Plans | ||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||
Amortization of net prior service cost (benefit) | $ | (12 | ) | $ | (1 | ) | $ | (35 | ) | |||||||||||||||||||||||||||
Amortization of actuarial net loss (gain) | $ | (1 | ) | $ | 45 | $ | 14 | |||||||||||||||||||||||||||||
Investment policies and strategies as of October 31, 2013, 2012 and 2011. In the U.S., our Agilent Retirement Plan and post-retirement benefit target asset allocations are approximately 80 percent to equities and approximately 20 percent to fixed income investments. Our DPSP target asset allocation is approximately 60 percent to equities and approximately 40 percent to fixed income investments. Approximately, 5 percent of our U.S. equity portfolio consists of limited partnerships. The general investment objective for all our plan assets is to obtain the optimum rate of investment return on the total investment portfolio consistent with the assumption of a reasonable level of risk. Specific investment objectives for the plans' portfolios are to: maintain and enhance the purchasing power of the plans' assets; achieve investment returns consistent with the level of risk being taken; and earn performance rates of return in accordance with the benchmarks adopted for each asset class. Outside the U.S., our target asset allocation is from 37 to 60 percent to equities, from 40 to 60 percent to fixed income investments, and from zero to 6 percent to real estate investments and from zero to 7 percent to cash, depending on the plan. All plans' assets are broadly diversified. Due to fluctuations in equity markets, our actual allocations of plan assets at October 31, 2013 and 2012 differ from the target allocation. Our policy is to bring the actual allocation in line with the target allocation. | ||||||||||||||||||||||||||||||||||||
Equity securities include exchange-traded common stock and preferred stock of companies from broadly diversified industries. Fixed income securities include a global portfolio of corporate bonds of companies from diversified industries, government securities, mortgage-backed securities, asset-backed securities, derivative instruments and other. Other investments include a group trust consisting primarily of private equity partnerships as well as other investments. Portions of the cash and cash equivalent, equity, and fixed income investments are held in commingled funds. | ||||||||||||||||||||||||||||||||||||
Fair Value. The measurement of the fair value of pension and post-retirement plan assets uses the valuation methodologies and the inputs as described in Note 12. | ||||||||||||||||||||||||||||||||||||
Cash and Cash Equivalents - Cash and cash equivalents consist of short-term investment funds. The funds also invest in short-term domestic fixed income securities and other securities with debt-like characteristics emphasizing short-term maturities and quality. Cash and cash equivalents are classified as Level 1 investments except when the cash and cash equivalents are held in commingled funds, which have a daily net value derived from quoted prices for the underlying securities in active markets; these are classified as Level 2 investments. | ||||||||||||||||||||||||||||||||||||
Equity - Some equity securities consisting of common and preferred stock are held in commingled funds, which have daily net asset values derived from quoted prices for the underlying securities in active markets; these are classified as Level 2 investments. Commingled funds which have quoted prices in active markets are classified as Level 1 investments. | ||||||||||||||||||||||||||||||||||||
Fixed Income - Some of the fixed income securities are held in commingled funds, which have daily net asset values derived from the underlying securities; these are classified as Level 2 investments. Commingled funds which have quoted prices in active markets are classified as Level 1 investments. | ||||||||||||||||||||||||||||||||||||
Other Investments - Other investments includes property based pooled vehicles which invest in real estate. Market net asset values are regularly published in the financial press or on corporate websites and so these investments are classified as Level 2. Other investments also includes partnership investments where, due to their private nature, pricing inputs are not readily observable. Asset valuations are developed by the general partners that manage the partnerships. These valuations are based on proprietary appraisals, application of public market multiples to private company cash flows, utilization of market transactions that provide valuation information for comparable companies and other methods. Holdings of limited partnerships are classified as Level 3. | ||||||||||||||||||||||||||||||||||||
The following tables present the fair value of U.S. Defined Benefit Plans assets classified under the appropriate level of the fair value hierarchy as of October 31, 2013 and 2012. | ||||||||||||||||||||||||||||||||||||
Fair Value Measurement | ||||||||||||||||||||||||||||||||||||
at October 31, 2013 Using | ||||||||||||||||||||||||||||||||||||
October 31, | Quoted Prices | Significant | Significant | |||||||||||||||||||||||||||||||||
2013 | in Active | Other | Unobservable | |||||||||||||||||||||||||||||||||
Markets for | Observable | Inputs | ||||||||||||||||||||||||||||||||||
Identical Assets | Inputs | (Level 3) | ||||||||||||||||||||||||||||||||||
(Level 1) | (Level 2) | |||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||
Cash and Cash Equivalents | $ | 8 | $ | 1 | $ | 7 | $ | — | ||||||||||||||||||||||||||||
Equity | 616 | 191 | 425 | — | ||||||||||||||||||||||||||||||||
Fixed Income | 139 | 17 | 122 | — | ||||||||||||||||||||||||||||||||
Other Investments | 19 | 2 | — | 17 | ||||||||||||||||||||||||||||||||
Total assets measured at fair value | $ | 782 | $ | 211 | $ | 554 | $ | 17 | ||||||||||||||||||||||||||||
Fair Value Measurement | ||||||||||||||||||||||||||||||||||||
at October 31, 2012 Using | ||||||||||||||||||||||||||||||||||||
October 31, | Quoted Prices | Significant | Significant | |||||||||||||||||||||||||||||||||
2012 | in Active | Other | Unobservable | |||||||||||||||||||||||||||||||||
Markets for | Observable | Inputs | ||||||||||||||||||||||||||||||||||
Identical Assets | Inputs | (Level 3) | ||||||||||||||||||||||||||||||||||
(Level 1) | (Level 2) | |||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||
Cash and Cash Equivalents | $ | 8 | $ | 1 | $ | 7 | $ | — | ||||||||||||||||||||||||||||
Equity | 486 | 134 | 352 | — | ||||||||||||||||||||||||||||||||
Fixed Income | 137 | 15 | 122 | — | ||||||||||||||||||||||||||||||||
Other Investments | 23 | 2 | — | 21 | ||||||||||||||||||||||||||||||||
Total assets measured at fair value | $ | 654 | $ | 152 | $ | 481 | $ | 21 | ||||||||||||||||||||||||||||
For U.S. Defined Benefit Plans assets measured at fair value using significant unobservable inputs (level 3), the following table summarizes the change in balances during 2013 and 2012: | ||||||||||||||||||||||||||||||||||||
Years Ended | ||||||||||||||||||||||||||||||||||||
October 31. | ||||||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||||||
Balance, beginning of year | $ | 21 | $ | 26 | ||||||||||||||||||||||||||||||||
Realized gains | 4 | 3 | ||||||||||||||||||||||||||||||||||
Unrealized gains/(losses) | (2 | ) | (2 | ) | ||||||||||||||||||||||||||||||||
Purchases, sales, issuances, and settlements | (6 | ) | (6 | ) | ||||||||||||||||||||||||||||||||
Transfers in (out) | — | — | ||||||||||||||||||||||||||||||||||
Balance, end of year | $ | 17 | $ | 21 | ||||||||||||||||||||||||||||||||
The following tables present the fair value of U.S. Post-Retirement Benefit Plans assets classified under the appropriate level of the fair value hierarchy as of October 31, 2013 and 2012. | ||||||||||||||||||||||||||||||||||||
Fair Value Measurement at | ||||||||||||||||||||||||||||||||||||
October 31, 2013 Using | ||||||||||||||||||||||||||||||||||||
October 31, | Quoted Prices | Significant | Significant | |||||||||||||||||||||||||||||||||
2013 | in Active | Other | Unobservable | |||||||||||||||||||||||||||||||||
Markets for | Observable | Inputs | ||||||||||||||||||||||||||||||||||
Identical Assets | Inputs | (Level 3) | ||||||||||||||||||||||||||||||||||
(Level 1) | (Level 2) | |||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||
Cash and Cash Equivalents | $ | 5 | $ | 2 | $ | 3 | $ | — | ||||||||||||||||||||||||||||
Equity | 220 | 68 | 152 | — | ||||||||||||||||||||||||||||||||
Fixed Income | 52 | 6 | 46 | — | ||||||||||||||||||||||||||||||||
Other Investments | 11 | 1 | — | 10 | ||||||||||||||||||||||||||||||||
Total assets measured at fair value | $ | 288 | $ | 77 | $ | 201 | $ | 10 | ||||||||||||||||||||||||||||
Fair Value Measurement | ||||||||||||||||||||||||||||||||||||
at October 31, 2012 Using | ||||||||||||||||||||||||||||||||||||
October 31, | Quoted Prices | Significant | Significant | |||||||||||||||||||||||||||||||||
2012 | in Active | Other | Unobservable | |||||||||||||||||||||||||||||||||
Markets for | Observable | Inputs | ||||||||||||||||||||||||||||||||||
Identical Assets | Inputs | (Level 3) | ||||||||||||||||||||||||||||||||||
(Level 1) | (Level 2) | |||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||
Cash and Cash Equivalents | $ | 5 | $ | 2 | $ | 3 | $ | — | ||||||||||||||||||||||||||||
Equity | 189 | 52 | 137 | — | ||||||||||||||||||||||||||||||||
Fixed Income | 54 | 6 | 48 | — | ||||||||||||||||||||||||||||||||
Other Investments | 13 | 1 | — | 12 | ||||||||||||||||||||||||||||||||
Total assets measured at fair value | $ | 261 | $ | 61 | $ | 188 | $ | 12 | ||||||||||||||||||||||||||||
For U.S. Post-Retirement Benefit Plans assets measured at fair value using significant unobservable inputs (level 3), the following table summarizes the change in balances during 2013 and 2012: | ||||||||||||||||||||||||||||||||||||
Years Ended | ||||||||||||||||||||||||||||||||||||
October 31, | ||||||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||||||
Balance, beginning of year | $ | 12 | $ | 15 | ||||||||||||||||||||||||||||||||
Realized gains | 2 | 2 | ||||||||||||||||||||||||||||||||||
Unrealized gains/(losses) | (1 | ) | (1 | ) | ||||||||||||||||||||||||||||||||
Purchases, sales, issuances, and settlements | (3 | ) | (4 | ) | ||||||||||||||||||||||||||||||||
Transfers in (out) | — | — | ||||||||||||||||||||||||||||||||||
Balance, end of year | $ | 10 | $ | 12 | ||||||||||||||||||||||||||||||||
The following tables present the fair value of non-U.S. Defined Benefit Plans assets classified under the appropriate level of the fair value hierarchy as of October 31, 2013 and 2012: | ||||||||||||||||||||||||||||||||||||
Fair Value Measurement at | ||||||||||||||||||||||||||||||||||||
October 31, 2013 Using | ||||||||||||||||||||||||||||||||||||
October 31, | Quoted Prices | Significant | Significant | |||||||||||||||||||||||||||||||||
2013 | in Active | Other | Unobservable | |||||||||||||||||||||||||||||||||
Markets for | Observable | Inputs | ||||||||||||||||||||||||||||||||||
Identical Assets | Inputs | (Level 3) | ||||||||||||||||||||||||||||||||||
(Level 1) | (Level 2) | |||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||
Cash and Cash Equivalents | $ | 10 | $ | 10 | $ | — | $ | — | ||||||||||||||||||||||||||||
Equity | 1,078 | 296 | 782 | — | ||||||||||||||||||||||||||||||||
Fixed Income | 919 | 24 | 895 | — | ||||||||||||||||||||||||||||||||
Other Investments | 38 | — | 38 | — | ||||||||||||||||||||||||||||||||
Total assets measured at fair value | $ | 2,045 | $ | 330 | $ | 1,715 | $ | — | ||||||||||||||||||||||||||||
Fair Value Measurement | ||||||||||||||||||||||||||||||||||||
at October 31, 2012 Using | ||||||||||||||||||||||||||||||||||||
October 31, | Quoted Prices | Significant | Significant | |||||||||||||||||||||||||||||||||
2012 | in Active | Other | Unobservable | |||||||||||||||||||||||||||||||||
Markets for | Observable | Inputs | ||||||||||||||||||||||||||||||||||
Identical Assets | Inputs | (Level 3) | ||||||||||||||||||||||||||||||||||
(Level 1) | (Level 2) | |||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||
Cash and Cash Equivalents | $ | 3 | $ | 3 | $ | — | $ | — | ||||||||||||||||||||||||||||
Equity | 861 | 226 | 635 | — | ||||||||||||||||||||||||||||||||
Fixed Income | 900 | 19 | 881 | — | ||||||||||||||||||||||||||||||||
Other Investments | 37 | — | 37 | — | ||||||||||||||||||||||||||||||||
Total assets measured at fair value | $ | 1,801 | $ | 248 | $ | 1,553 | $ | — | ||||||||||||||||||||||||||||
For non-U.S. Defined Benefit Plans, there was no activity relating to assets measured at fair value using significant unobservable inputs (level 3) during fiscal year 2013 and 2012. | ||||||||||||||||||||||||||||||||||||
The table below presents the combined projected benefit obligation ("PBO"), accumulated benefit obligation ("ABO") and fair value of plan assets, grouping plans using comparisons of the PBO and ABO relative to the plan assets as of October 31, 2013 or 2012. | ||||||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||||||
Benefit | Benefit | |||||||||||||||||||||||||||||||||||
Obligation | Fair Value of | Obligation | Fair Value of | |||||||||||||||||||||||||||||||||
PBO | Plan Assets | PBO | Plan Assets | |||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||
U.S. defined benefit plans where PBO exceeds the fair value of plan assets | $ | 15 | $ | — | $ | 771 | $ | 654 | ||||||||||||||||||||||||||||
U.S. defined benefit plans where fair value of plan assets exceeds PBO | 748 | 782 | — | — | ||||||||||||||||||||||||||||||||
Total | $ | 763 | $ | 782 | $ | 771 | $ | 654 | ||||||||||||||||||||||||||||
Non-U.S. defined benefit plans where PBO exceeds or is equal to the fair value of plan assets | $ | 1,697 | $ | 1,482 | $ | 2,117 | $ | 1,801 | ||||||||||||||||||||||||||||
Non-U.S. defined benefit plans where fair value of plan assets exceeds PBO | 502 | 563 | — | — | ||||||||||||||||||||||||||||||||
Total | $ | 2,199 | $ | 2,045 | $ | 2,117 | $ | 1,801 | ||||||||||||||||||||||||||||
ABO | ABO | |||||||||||||||||||||||||||||||||||
U.S. defined benefit plans where ABO exceeds the fair value of plan assets | $ | 14 | $ | — | $ | 749 | $ | 654 | ||||||||||||||||||||||||||||
U.S. defined benefit plans where the fair value of plan assets exceeds ABO | 716 | 782 | — | — | ||||||||||||||||||||||||||||||||
Total | $ | 730 | $ | 782 | $ | 749 | $ | 654 | ||||||||||||||||||||||||||||
Non-U.S. defined benefit plans where ABO exceeds or is equal to the fair value of plan assets | $ | 1,533 | $ | 1,380 | $ | 2,034 | $ | 1,801 | ||||||||||||||||||||||||||||
Non-U.S. defined benefit plans where fair value of plan assets exceeds ABO | 590 | 665 | — | — | ||||||||||||||||||||||||||||||||
Total | $ | 2,123 | $ | 2,045 | $ | 2,034 | $ | 1,801 | ||||||||||||||||||||||||||||
Contributions and estimated future benefit payments. During fiscal year 2014, we expect to contribute $30 million to the U.S. defined benefit plans, $71 million to plans outside the U.S., and $2 million to the Post-retirement Medical Plans. The following table presents expected future benefit payments for the next 10 years. | ||||||||||||||||||||||||||||||||||||
U.S. Defined | Non-U.S. Defined | U.S. Post-Retirement | ||||||||||||||||||||||||||||||||||
Benefit Plans | Benefit Plans | Benefit Plans | ||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||
2014 | $ | 41 | $ | 51 | $ | 24 | ||||||||||||||||||||||||||||||
2015 | $ | 44 | $ | 56 | $ | 24 | ||||||||||||||||||||||||||||||
2016 | $ | 49 | $ | 60 | $ | 25 | ||||||||||||||||||||||||||||||
2017 | $ | 56 | $ | 62 | $ | 24 | ||||||||||||||||||||||||||||||
2018 | $ | 57 | $ | 70 | $ | 24 | ||||||||||||||||||||||||||||||
2019 - 2023 | $ | 362 | $ | 448 | $ | 116 | ||||||||||||||||||||||||||||||
Assumptions. The assumptions used to determine the benefit obligations and expense for our defined benefit and post-retirement benefit plans are presented in the tables below. The expected long-term return on assets below represents an estimate of long-term returns on investment portfolios consisting of a mixture of equities, fixed income and alternative investments in proportion to the asset allocations of each of our plans. We consider long-term rates of return, which are weighted based on the asset classes (both historical and forecasted) in which we expect our pension and post-retirement funds to be invested. Discount rates reflect the current rate at which pension and post-retirement obligations could be settled based on the measurement dates of the plans - October 31. The U.S. discount rates at October 31, 2013 and 2012 were determined based on the results of matching expected plan benefit payments with cash flows from a hypothetically constructed bond portfolio. The non-U.S. rates were generally based on published rates for high-quality corporate bonds. The range of assumptions that were used for the non-U.S. defined benefit plans reflects the different economic environments within various countries. | ||||||||||||||||||||||||||||||||||||
Assumptions used to calculate the net periodic cost in each year were as follows: | ||||||||||||||||||||||||||||||||||||
For years ended October 31, | ||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||||||
U.S. defined benefit plans: | ||||||||||||||||||||||||||||||||||||
Discount rate | 3.25% | 4.50% | 5.00% | |||||||||||||||||||||||||||||||||
Average increase in compensation levels | 3.50% | 3.50% | 3.50% | |||||||||||||||||||||||||||||||||
Expected long-term return on assets | 8.00% | 8.00% | 8.25% | |||||||||||||||||||||||||||||||||
Non-U.S. defined benefit plans: | ||||||||||||||||||||||||||||||||||||
Discount rate | 1.50-4.50% | 2.00-5.50% | 2.00-5.25% | |||||||||||||||||||||||||||||||||
Average increase in compensation levels | 2.50-3.00% | 2.50-3.25% | 2.50-3.75% | |||||||||||||||||||||||||||||||||
Expected long-term return on assets | 4.00-6.50% | 4.00-6.50% | 4.00-6.75% | |||||||||||||||||||||||||||||||||
U.S. post-retirement benefits plans: | ||||||||||||||||||||||||||||||||||||
Discount rate | 3.50% | 4.75% | 5.50% | |||||||||||||||||||||||||||||||||
Expected long-term return on assets | 8.00% | 8.00% | 8.25% | |||||||||||||||||||||||||||||||||
Current medical cost trend rate | 9.00% | 9.00% | 10.00% | |||||||||||||||||||||||||||||||||
Ultimate medical cost trend rate | 3.50% | 4.50% | 4.75% | |||||||||||||||||||||||||||||||||
Medical cost trend rate decreases to ultimate rate in year | 2027 | 2026 | 2025 | |||||||||||||||||||||||||||||||||
Assumptions used to calculate the benefit obligation were as follows: | ||||||||||||||||||||||||||||||||||||
As of the Years Ending October 31, | ||||||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||||||
U.S. defined benefit plans: | ||||||||||||||||||||||||||||||||||||
Discount rate | 4.50% | 3.25% | ||||||||||||||||||||||||||||||||||
Average increase in compensation levels | 3.50% | 3.50% | ||||||||||||||||||||||||||||||||||
Non-U.S. defined benefit plans: | ||||||||||||||||||||||||||||||||||||
Discount rate | 1.75-4.25% | 1.50-4.50% | ||||||||||||||||||||||||||||||||||
Average increase in compensation levels | 2.50-3.25% | 2.50-3.00% | ||||||||||||||||||||||||||||||||||
U.S. post-retirement benefits plans: | ||||||||||||||||||||||||||||||||||||
Discount rate | 4.25% | 3.50% | ||||||||||||||||||||||||||||||||||
Current medical cost trend rate | 9.00% | 9.00% | ||||||||||||||||||||||||||||||||||
Ultimate medical cost trend rate | 3.50% | 3.50% | ||||||||||||||||||||||||||||||||||
Medical cost trend rate decreases to ultimate rate in year | 2028 | 2027 | ||||||||||||||||||||||||||||||||||
Health care trend rates do not have a significant effect on the total service and interest cost components or on the post-retirement benefit obligation amounts reported for the U.S. Post-Retirement Benefit Plan for the year ended October 31, 2013. |
GUARANTEES
GUARANTEES | 12 Months Ended | |||||||
Oct. 31, 2013 | ||||||||
Guarantees [Abstract] | ' | |||||||
GUARANTEES | ' | |||||||
16. GUARANTEES | ||||||||
Standard Warranty | ||||||||
We accrue for standard warranty costs based on historical trends in warranty charges as a percentage of net product shipments. The accrual is reviewed regularly and periodically adjusted to reflect changes in warranty cost estimates. Estimated warranty charges are recorded within cost of products at the time products are sold. The standard warranty accrual balances are held in other accrued and other long-term liabilities on our consolidated balance sheet. Our standard warranty terms typically extend between one and three years from the date of delivery, depending on the product. | ||||||||
A summary of the standard warranty accrual activity is shown in the table below. The standard warranty accrual balances are held in other accrued and other long-term liabilities. | ||||||||
October 31, | ||||||||
2013 | 2012 | |||||||
(in millions) | ||||||||
Balance as of October 31, 2012 and 2011 | $ | 60 | $ | 50 | ||||
Reserve acquired upon close of Dako acquisition | — | 1 | ||||||
Accruals for warranties including change in estimates | 92 | 87 | ||||||
Settlements made during the period | (83 | ) | (78 | ) | ||||
Balance as of October 31, 2013 and 2012 | $ | 69 | $ | 60 | ||||
Accruals for warranties due within one year | 48 | 51 | ||||||
Accruals for warranties due after one year | 21 | 9 | ||||||
Balance as of October 31, 2013 and 2012 | $ | 69 | $ | 60 | ||||
Indemnifications to Avago | ||||||||
In connection with the sale of our semiconductor products business in December 2005, we agreed to indemnify Avago, its affiliates and other related parties against certain damages and expenses that it might incur in the future. The continuing indemnifications primarily cover damages and expenses relating to liabilities of the businesses that Agilent retained and did not transfer to Avago, as well as pre-closing taxes and other specified items. In our opinion, the fair value of these indemnification obligations was not material as of October 31, 2013. | ||||||||
Indemnifications to Verigy | ||||||||
In connection with the spin-off of Verigy, we agreed to indemnify Verigy and its affiliates against certain damages which it might incur in the future. These indemnifications primarily cover damages relating to liabilities of the businesses that Agilent did not transfer to Verigy, liabilities that might arise under limited portions of Verigy's IPO materials that relate to Agilent, and costs and expenses incurred by Agilent or Verigy to effect the IPO, arising out of the distribution of Agilent's remaining holding in Verigy ordinary shares to Agilent's stockholders, or incurred to effect the separation of the semiconductor test solutions business from Agilent to the extent incurred prior to the separation on June 1, 2006. On July 4, 2011, Verigy announced the completion by Advantest Corporation of its acquisition of Verigy. Verigy will operate as a wholly-owned subsidiary of Advantest and our indemnification obligations to Verigy should be unaffected. In our opinion, the fair value of these indemnification obligations was not material as of October 31, 2013. | ||||||||
Indemnifications to Hewlett-Packard | ||||||||
We have given multiple indemnities to Hewlett-Packard in connection with our activities prior to our spin-off from HP for the businesses that constituted Agilent prior to the spin-off. These indemnifications cover a variety of aspects of our business, including, but not limited to, employee, tax, intellectual property and environmental matters. The agreements containing these indemnifications have been previously disclosed as exhibits to our registration statement on Form S-1 filed on August 16, 1999. In our opinion, the fair value of these indemnification obligations was not material as of October 31, 2013. | ||||||||
Indemnifications to Varian Medical Systems and Varian Semiconductor Equipment Associates | ||||||||
In connection with our acquisition of Varian, we are subject to certain indemnification obligations to Varian Medical Systems (formerly Varian Associates, Inc. ("VAI")) and Varian Semiconductor Equipment Associates ("VSEA") in connection with the Instruments business as conducted by VAI prior to the Distribution (as described in Note 1 of Varian's Annual Report on Form 10-K filed on November 25, 2009). These indemnification obligations cover a variety of aspects of our business, including, but not limited to, employee, tax, intellectual property, litigation and environmental matters. Certain of the agreements containing these indemnification obligations are disclosed as exhibits to Varian's Annual Report on Form 10-K filed on November 25, 2009. On November 10, 2011, Applied Materials announced that it had completed the acquisition of VSEA, which is now a wholly-owned subsidiary of Applied Materials; our indemnification obligations to VSEA should be unaffected. In our opinion, the fair value of these indemnification obligations was not material as of October 31, 2013. | ||||||||
Indemnifications to Officers and Directors | ||||||||
Our corporate by-laws require that we indemnify our officers and directors, as well as those who act as directors and officers of other entities at our request, against expenses, judgments, fines, settlements and other amounts actually and reasonably incurred in connection with any proceedings arising out of their services to Agilent and such other entities, including service with respect to employee benefit plans. In addition, we have entered into separate indemnification agreements with each director and each board-appointed officer of Agilent which provide for indemnification of these directors and officers under similar circumstances and under additional circumstances. The indemnification obligations are more fully described in the by-laws and the indemnification agreements. We purchase standard insurance to cover claims or a portion of the claims made against our directors and officers. Since a maximum obligation is not explicitly stated in our by-laws or in our indemnification agreements and will depend on the facts and circumstances that arise out of any future claims, the overall maximum amount of the obligations cannot be reasonably estimated. Historically, we have not made payments related to these obligations, and the fair value for these indemnification obligations was not material as of October 31, 2013. | ||||||||
Other Indemnifications | ||||||||
As is customary in our industry and as provided for in local law in the U.S. and other jurisdictions, many of our standard contracts provide remedies to our customers and others with whom we enter into contracts, such as defense, settlement, or payment of judgment for intellectual property claims related to the use of our products. From time to time, we indemnify customers, as well as our suppliers, contractors, lessors, lessees, companies that purchase our businesses or assets and others with whom we enter into contracts, against combinations of loss, expense, or liability arising from various triggering events related to the sale and the use of our products and services, the use of their goods and services, the use of facilities and state of our owned facilities, the state of the assets and businesses that we sell and other matters covered by such contracts, usually up to a specified maximum amount. In addition, from time to time we also provide protection to these parties against claims related to undiscovered liabilities, additional product liability or environmental obligations. In our experience, claims made under such indemnifications are rare and the associated estimated fair value of the liability was not material as of October 31, 2013. | ||||||||
In connection with the sale of several of our businesses, we have agreed to indemnify the buyers of such business, their respective affiliates and other related parties against certain damages that they might incur in the future. The continuing indemnifications primarily cover damages relating to liabilities of the businesses that Agilent retained and did not transfer to the buyers, as well as other specified items. In our opinion, the fair value of these indemnification obligations was not material as of October 31, 2013. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Oct. 31, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
COMMITMENTS AND CONTINGENCIES | ' |
17. COMMITMENTS AND CONTINGENCIES | |
Operating Lease Commitments: We lease certain real and personal property from unrelated third parties under non-cancelable operating leases. Future minimum lease payments under operating leases at October 31, 2013 were $56 million for 2014, $47 million for 2015, $31 million for 2016, $21 million for 2017, $12 million for 2018 and $6 million thereafter. Future minimum sublease income under leases at October 31, 2013 was $6 million for 2014, $5 million for 2015, $3 million for 2016, $2 million for 2017 and zero thereafter. Certain leases require us to pay property taxes, insurance and routine maintenance, and include escalation clauses. Total rent expense was $90 million in 2013, $84 million in 2012 and $82 million in 2011. | |
Contingencies: We are involved in lawsuits, claims, investigations and proceedings, including, but not limited to, patent, commercial and environmental matters, which arise in the ordinary course of business. There are no matters pending that we currently believe are reasonably possible of having a material impact to our business, consolidated financial condition, results of operations or cash flows. | |
On March 4, 2013, we made a report to the Inspector General of the Department of Defense (“DOD IG”) regarding pricing irregularities relating to certain sales of electronic measurement products to U.S. government agencies. We have conducted a thorough investigation with the help of external counsel, and we have approached the DOD IG with a proposed methodology for resolving possible overcharges to U.S. government purchasers resulting from these sales. Based on our investigation and our interactions with the DOD IG, we do not believe that this matter is reasonably possible of having a material impact on Agilent's financial condition, results of operations or cash flows. As of October 31, 2013, we have accrued for this matter based on our current understanding. | |
As part of routine internal audit activities, the Company determined that certain employees of Agilent's subsidiaries in China did not comply with the Company's Standards of Business Conduct and other policies. Based on those findings, the Company has initiated an internal investigation, with the assistance of outside counsel, relating to certain sales of our products through third party intermediaries in China. The internal investigation includes a review of compliance by our employees in China with the requirements of the U.S. Foreign Corrupt Practices Act and other applicable laws and regulations. On September 5, 2013, the Company voluntarily contacted the United States Securities and Exchange Commission and United States Department of Justice to advise both agencies of this internal investigation. We will cooperate with any government investigation of this matter. At this point, we cannot predict or estimate the duration, scope, cost, or result of this matter, or whether the government will commence any legal action, which could result in possible fines and penalties, criminal or civil sanctions, or other consequences. Accordingly, no provision with respect to these matters has been made in the Company's consolidated financial statements. Adverse findings or other negative outcomes from any governmental proceedings could have a material impact on the Company's consolidated financial statements in future periods. |
SHORTTERM_DEBT
SHORT-TERM DEBT | 12 Months Ended |
Oct. 31, 2013 | |
Short-term Debt [Abstract] | ' |
SHORT-TERM DEBT | ' |
18. SHORT-TERM DEBT | |
Credit Facility | |
On October 20, 2011, we entered into a five-year credit agreement, which provides for a $400 million unsecured credit facility that will expire on October 20, 2016. The company may use amounts borrowed under the facility for general corporate purposes. As of October 31, 2013 the company has no borrowings outstanding under the facility. We were in compliance with the covenants for the credit facilities during the year ended October 31, 2013. | |
As a result of the Dako acquisition, we have a credit facility in Danish Krone equivalent of $9 million with a Danish financial institution. As of October 31, 2013 the company had no borrowings outstanding under the facility. | |
2013 Senior Notes | |
On July 13, 2010, the company issued an aggregate principal amount of $250 million in senior notes ("2013 senior notes"). The 2013 senior notes matured on July 15, 2013 and were paid in full. | |
2012 Senior Notes | |
On September 9, 2009, the company issued an aggregate principal amount of $250 million in senior notes ("2012 senior notes"). The 2012 senior notes matured on September 14, 2012 and were paid in full. |
LONGTERM_DEBT
LONG-TERM DEBT | 12 Months Ended | |||||||||||||||||||||||
Oct. 31, 2013 | ||||||||||||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||||||||||||
LONG-TERM DEBT | ' | |||||||||||||||||||||||
19. LONG-TERM DEBT | ||||||||||||||||||||||||
Senior Notes | ||||||||||||||||||||||||
The following table summarizes the company's long-term senior notes and the related interest rate swaps: | ||||||||||||||||||||||||
October 31, 2013 | October 31, 2012 | |||||||||||||||||||||||
Amortized | Swap | Total | Amortized | Swap | Total | |||||||||||||||||||
Principal | Principal | |||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
2015 Senior Notes | 500 | 12 | 512 | 499 | 18 | 517 | ||||||||||||||||||
2017 Senior Notes | 599 | 22 | 621 | 599 | 26 | 625 | ||||||||||||||||||
2020 Senior Notes | 498 | 26 | 524 | 498 | 29 | 527 | ||||||||||||||||||
2022 Senior Notes | 399 | — | 399 | 399 | — | 399 | ||||||||||||||||||
2023 Senior Notes | 597 | — | 597 | — | — | — | ||||||||||||||||||
Total | $ | 2,593 | $ | 60 | $ | 2,653 | $ | 1,995 | $ | 73 | $ | 2,068 | ||||||||||||
2015 Senior Notes | ||||||||||||||||||||||||
In September 2009, the company issued an aggregate principal amount of $500 million in senior notes ("2015 senior notes"). The 2015 senior notes were issued at 99.69% of their principal amount. The notes will mature on September 14, 2015, and bear interest at a fixed rate of 5.50% per annum. The interest is payable semi-annually on March 14th and September 14th of each year, payments commenced on March 14, 2010. | ||||||||||||||||||||||||
On June 6, 2011, we terminated our interest rate swap contracts related to our 2015 senior notes that represented the notional amount of $500 million. The asset value, including interest receivable, upon termination for these contracts was approximately $31 million and the amount to be amortized at October 31, 2013 was $12 million. The gain is being deferred and amortized to interest expense over the remaining life of the 2015 senior notes. | ||||||||||||||||||||||||
2017 Senior Notes | ||||||||||||||||||||||||
In October 2007, the company issued an aggregate principal amount of $600 million in senior notes ("2017 senior notes"). The 2017 senior notes were issued at 99.60% of their principal amount. The notes will mature on November 1, 2017, and bear interest at a fixed rate of 6.50% per annum. The interest is payable semi-annually on May 1st and November 1st of each year and payments commenced on May 1, 2008. | ||||||||||||||||||||||||
On November 25, 2008, we terminated two interest rate swap contracts associated with our 2017 senior notes that represented the notional amount of $400 million. The asset value, including interest receivable, upon termination was approximately $43 million and the amount to be amortized at October 31, 2013 was $22 million. The gain is being deferred and amortized to interest expense over the remaining life of the 2017 senior notes. | ||||||||||||||||||||||||
2020 Senior Notes | ||||||||||||||||||||||||
In July 2010, the company issued an aggregate principal amount of $500 million in senior notes ("2020 senior notes"). The 2020 senior notes were issued at 99.54% of their principal amount. The notes will mature on July 15, 2020, and bear interest at a fixed rate of 5.00% per annum. The interest is payable semi-annually on January 15th and July 15th of each year, payments commenced on January 15, 2011. | ||||||||||||||||||||||||
On August 9, 2011, we terminated our interest rate swap contracts related to our 2020 senior notes that represented the notional amount of $500 million. The asset value, including interest receivable, upon termination for these contracts was approximately $34 million and the amount to be amortized at October 31, 2013 was $26 million. The gain is being deferred and amortized to interest expense over the remaining life of the 2020 senior notes. | ||||||||||||||||||||||||
2022 Senior Notes | ||||||||||||||||||||||||
In September 2012, the company issued an aggregate principal amount of $400 million in senior notes ("2022 senior notes"). The 2022 senior notes were issued at 99.80% of their principal amount. The notes will mature on October 1, 2022, and bear interest at a fixed rate of 3.20% per annum. The interest is payable semi-annually on April 1st and October 1st of each year, payments commenced on April 1, 2013. | ||||||||||||||||||||||||
2023 Senior Notes | ||||||||||||||||||||||||
In June 2013, the company issued aggregate principal amount of $600 million in senior notes ("2023 senior notes"). The 2023 senior notes were issued at 99.544% of their principal amount. The notes will mature on July 15, 2023 and bear interest at a fixed rate of 3.875% per annum. The interest is payable semi annually on January 15th and July 15th of each year and payments will commence January 15, 2014. | ||||||||||||||||||||||||
All notes issued are unsecured and rank equally in right of payment with all of Agilent's other senior unsecured indebtedness. The company incurred issuance costs of $5 million each in connection with the 2017 and 2023 senior notes and incurred $3 million each in connection with the 2015, 2020 and 2022 senior notes. These costs were capitalized in other assets on the consolidated balance sheet and the costs are being amortized to interest expense over the term of the senior notes. | ||||||||||||||||||||||||
Other debt | ||||||||||||||||||||||||
As of October 31, 2013, and as a result of the Dako acquisition, we have mortgage debts, secured on buildings in Denmark, in Danish Krone equivalent of $46 million aggregate principal outstanding with a Danish financial institution. The loans have a variable interest rate based on 3 months Copenhagen Interbank Rate ("Cibor") and will mature on September 30, 2027. Interest payments are made in March, June, September and December of each year. |
STOCKHOLDERS_EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended | |||||||
Oct. 31, 2013 | ||||||||
Stockholders' Equity Note [Abstract] | ' | |||||||
STOCKHOLDERS EQUITY | ' | |||||||
20. STOCKHOLDERS' EQUITY | ||||||||
Stock Repurchase Program | ||||||||
On November 19, 2009 our board of directors approved a share-repurchase program to reduce or eliminate dilution of basic outstanding shares in connection with issuances of stock under the company's equity incentive plans (the "2009 repurchase program"). The 2009 repurchase program did not require the company to acquire a specific number of shares and could be suspended or discontinued at any time. There was no fixed termination date for the 2009 repurchase program. | ||||||||
On January 16, 2013, our board of directors terminated the 2009 repurchase program and approved a new share-repurchase program (the "2013 repurchase program"). The 2013 repurchase program authorized the use of up to $500 million to repurchase shares of the company's common stock in open market transactions, inclusive of any amounts repurchased since November 1, 2012. On May 14, 2013 we announced that our board of directors authorized an increase of $500 million to the 2013 repurchase program bringing the cumulative authorization to $1 billion. Unless terminated earlier by the board of directors, the 2013 repurchase program is designed to cover purchases until the end of the calendar year 2013 and any unused portion may be used in the calendar year 2014. The 2013 repurchase program does not require the company to acquire a specific number of shares and may be suspended or discontinued at any time. As of October 31, 2013, the remaining amount to be repurchased under the 2013 program is $100 million. We repurchased the remaining $100 million worth of shares under the 2013 repurchase program in November 2013. | ||||||||
For the year ended October 31, 2013, we repurchased 20 million shares for $900 million. For the year ended October 31, 2012 we repurchased approximately 5 million shares for $172 million. For the year ended October 31, 2011 we repurchased 12 million shares for $497 million. All such shares and related costs are held as treasury stock and accounted for using the cost method. | ||||||||
On November 22, 2013 we announced that our board of directors has authorized a new share repurchase program effective upon the conclusion of the company's existing $1 billion repurchase program. The new program is designed to reduce or eliminate dilution resulting from issuance of stock under the company's employee equity incentive programs to maintain a weighted average share count of approximately 335 million diluted shares. | ||||||||
Cash Dividends on Shares of Common Stock | ||||||||
During the year ended October 31, 2013, cash dividends of $0.46 per share, or $156 million were declared and paid on the company's outstanding common stock. During the year ended October 31, 2012, cash dividends of $0.30 per share, or $104 million were declared and paid on the company's outstanding common stock. The timing and amounts of any future dividends are subject to determination and approval by our board of directors. | ||||||||
On November 22, 2013 we announced that our board of directors has authorized a 10 percent increase in the quarterly dividend to $0.132 per share. The dividend was declared on November 22, 2013 and will be paid on January 22, 2014 to all stockholders of record as of close of business on December 31, 2013. | ||||||||
Accumulated other comprehensive income | ||||||||
The following table summarizes the components of our accumulated other comprehensive income as of October 31, 2013 and 2012, net of tax effect: | ||||||||
October 31, | ||||||||
2013 | 2012 | |||||||
(in millions) | ||||||||
Unrealized gain on equity securities, net of $2 of tax expense for 2013 | $ | 7 | $ | — | ||||
Foreign currency translation, net of $102 of tax expense for 2013 and 2012 | 425 | 424 | ||||||
Unrealized losses on defined benefit plans, net of tax benefit of $(64) and $(162) for 2013 and 2012, respectively | (341 | ) | (537 | ) | ||||
Unrealized gains (losses) on derivative instruments, net of tax expense of $2 and $3 for 2013 and 2012, respectively | — | 2 | ||||||
Total accumulated other comprehensive income (loss) | $ | 91 | $ | (111 | ) | |||
SEGMENT_INFORMATION
SEGMENT INFORMATION | 12 Months Ended | |||||||||||||||||||
Oct. 31, 2013 | ||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||
SEGMENT INFORMATION | ' | |||||||||||||||||||
21. SEGMENT INFORMATION | ||||||||||||||||||||
Description of segments. We are a measurement company providing core bio-analytical and electronic measurement solutions to the life sciences, diagnostics and genomics, chemical analysis, communications and electronics industries. In the fourth fiscal quarter of 2013, we formed a new operating segment from our existing businesses. The new life sciences and diagnostics segment was formed by the combination of the life sciences business plus the diagnostics and genomics business. Following this reorganization, Agilent has three business segments comprised of the life sciences and diagnostics business, the chemical analysis business and the electronic measurement business. The historical segment financial information for the life sciences and diagnostics segment has been recast to conform to this new reporting structure in our financial statements. The three operating segments were determined based primarily on how the chief operating decision maker views and evaluates our operations. Operating results are regularly reviewed by the chief operating decision maker to make decisions about resources to be allocated to the segment and to assess its performance. Other factors, including market separation and customer specific applications, go-to-market channels, products and services and manufacturing are considered in determining the formation of these operating segments. | ||||||||||||||||||||
A description of our three reportable segments is as follows: | ||||||||||||||||||||
Our life sciences and diagnostics business provides application-focused solutions that include reagents, instruments, software, consumables, and services that enable customers to identify, quantify and analyze the physical and biological properties of substances and products, as well as enable customers in the clinical and life sciences research areas to interrogate samples at the molecular level. Key product categories include: liquid chromatography systems, columns and components; liquid chromatography mass spectrometry systems; laboratory software and informatics systems; laboratory automation and robotic systems; dissolution testing; nucleic acid solutions; Nuclear Magnetic Resonance, Magnetic Resonance Imaging, and X-Ray Diffraction systems; services and support for the aforementioned products; immunohistochemistry ; In Situ Hybridization; Hematoxylin and Eosin staining; special staining, DNA mutation detection; genotyping; gene copy number determination; identification of gene rearrangements; DNA methylation profiling; gene expression profiling; next generation sequencing target enrichment; and automated gel electrophoresis-based sample analysis systems. We also collaborate with a number of major pharmaceutical companies to develop new potential pharmacodiagnostics, also called companion diagnostics, with the potential of identifying patients most likely to benefit from a specific targeted therapy. | ||||||||||||||||||||
Our chemical analysis business provides application-focused solutions that include instruments, software, consumables, and services that enable customers to identify, quantify and analyze the physical and biological properties of substances and products. Key product categories in chemical analysis include: gas chromatography (GC) systems, columns and components; gas chromatography mass spectrometry (GC-MS) systems; inductively coupled plasma mass spectrometry (ICP-MS) instruments; atomic absorption (AA) instruments; inductively coupled plasma optical emission spectrometry (ICP-OES) instruments; molecular spectroscopy instruments; software and data systems; vacuum pumps and measurement technologies; services and support for our products. | ||||||||||||||||||||
Our electronic measurement business provides electronic measurement instruments and systems, software design tools and related services that are used in the design, development, manufacture, installation, deployment and operation of electronics equipment, and microscopy products. Related services include start-up assistance, instrument productivity and application services and instrument calibration and repair. We also offer customization, consulting and optimization services throughout the customer's product lifecycle. | ||||||||||||||||||||
The historical segment numbers for the life sciences and diagnostics segment has been recast to conform to this new reporting structure in our financial statements. | ||||||||||||||||||||
A significant portion of the segments' expenses arise from shared services and infrastructure that we have historically provided to the segments in order to realize economies of scale and to efficiently use resources. These expenses, collectively called corporate charges, include costs of centralized research and development, legal, accounting, real estate, insurance services, information technology services, treasury and other corporate infrastructure expenses. Charges are allocated to the segments, and the allocations have been determined on a basis that we consider to be a reasonable reflection of the utilization of services provided to or benefits received by the segments. Beginning in fiscal year 2012, we created the Agilent Order Fulfillment ("AOF") organization to centralize all order fulfillment and supply organizations and operations. AOF provides resources for manufacturing, engineering, strategic sourcing and logistics to life sciences, chemical analysis and electronic measurement businesses. In general, AOF employees are dedicated to specific businesses and the associated costs are directly allocated to businesses. | ||||||||||||||||||||
The following tables reflect the results of our reportable segments under our management reporting system. These results are not necessarily in conformity with U.S. GAAP. The performance of each segment is measured based on several metrics, including adjusted income from operations. These results are used, in part, by the chief operating decision maker in evaluating the performance of, and in allocating resources to, each of the segments. | ||||||||||||||||||||
The profitability of each of the segments is measured after excluding restructuring and asset impairment charges, investment gains and losses, interest income, interest expense, acquisition and integration costs, one-time and pre-separation costs, non-cash amortization and other items as noted in the reconciliations below. | ||||||||||||||||||||
Life Sciences and Diagnostics | Chemical | Electronic | Total | |||||||||||||||||
Analysis | Measurement | Segments | ||||||||||||||||||
(in millions) | ||||||||||||||||||||
Year ended October 31, 2013: | ||||||||||||||||||||
Total net revenue | $ | 2,300 | $ | 1,594 | $ | 2,888 | $ | 6,782 | ||||||||||||
Income from operations | $ | 377 | $ | 355 | $ | 544 | $ | 1,276 | ||||||||||||
Depreciation expense | $ | 71 | $ | 27 | $ | 83 | $ | 181 | ||||||||||||
Share-based compensation expense | $ | 26 | $ | 21 | $ | 38 | $ | 85 | ||||||||||||
Year ended October 31, 2012: | ||||||||||||||||||||
Total net revenue | $ | 1,984 | $ | 1,559 | $ | 3,315 | $ | 6,858 | ||||||||||||
Income from operations | $ | 295 | $ | 338 | $ | 751 | $ | 1,384 | ||||||||||||
Depreciation expense | $ | 57 | $ | 31 | $ | 83 | $ | 171 | ||||||||||||
Share-based compensation expense | $ | 21 | $ | 18 | $ | 37 | $ | 76 | ||||||||||||
Year ended October 31, 2011: | ||||||||||||||||||||
Total segment revenue | $ | 1,792 | $ | 1,518 | $ | 3,316 | $ | 6,626 | ||||||||||||
Varian acquisition deferred revenue fair value adjustment | $ | (4 | ) | $ | (7 | ) | — | $ | (11 | ) | ||||||||||
Total net revenue | $ | 1,788 | $ | 1,511 | $ | 3,316 | $ | 6,615 | ||||||||||||
Income from operations | $ | 237 | $ | 313 | $ | 760 | $ | 1,310 | ||||||||||||
Depreciation expense | $ | 39 | $ | 28 | $ | 75 | $ | 142 | ||||||||||||
Share-based compensation expense | $ | 20 | $ | 17 | $ | 36 | $ | 73 | ||||||||||||
The following table reconciles reportable segments' income from operations to Agilent's total enterprise income before taxes: | ||||||||||||||||||||
Years Ended October 31, | ||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||
(in millions) | ||||||||||||||||||||
Total reportable segments' income from operations | $ | 1,276 | $ | 1,384 | $ | 1,310 | ||||||||||||||
Restructuring related costs | (53 | ) | — | (2 | ) | |||||||||||||||
Acceleration of depreciation for held and used assets | — | (15 | ) | — | ||||||||||||||||
Asset Impairments | (3 | ) | (1 | ) | (9 | ) | ||||||||||||||
Transformational programs | (19 | ) | (25 | ) | (51 | ) | ||||||||||||||
Amortization of intangibles | (199 | ) | (136 | ) | (113 | ) | ||||||||||||||
Acquisition and integration costs | (29 | ) | (74 | ) | (54 | ) | ||||||||||||||
Acceleration of share-based compensation expense related to workforce reduction | (3 | ) | — | — | ||||||||||||||||
One-time and pre-separation costs | (5 | ) | — | — | ||||||||||||||||
Varian acquisition related fair value adjustments | — | — | (9 | ) | ||||||||||||||||
Other | (14 | ) | (14 | ) | (1 | ) | ||||||||||||||
Interest Income | 7 | 9 | 14 | |||||||||||||||||
Interest Expense | (107 | ) | (101 | ) | (86 | ) | ||||||||||||||
Other income (expense), net | 8 | 16 | 33 | |||||||||||||||||
Income before taxes, as reported | $ | 859 | $ | 1,043 | $ | 1,032 | ||||||||||||||
Major customers. No customer represented 10 percent or more of our total net revenue in 2013, 2012 or 2011. | ||||||||||||||||||||
The following table presents assets and capital expenditures directly managed by each segment. Unallocated assets primarily consist of cash, cash equivalents, accumulated amortization of other intangibles and other assets. | ||||||||||||||||||||
Life Sciences and Diagnostics | Chemical | Electronic | Total | |||||||||||||||||
Analysis | Measurement | Segments | ||||||||||||||||||
(in millions) | ||||||||||||||||||||
As of October 31, 2013: | ||||||||||||||||||||
Assets | $ | 4,291 | $ | 1,756 | $ | 1,997 | $ | 8,044 | ||||||||||||
Capital expenditures | $ | 77 | $ | 30 | $ | 88 | $ | 195 | ||||||||||||
As of October 31, 2012: | ||||||||||||||||||||
Assets | $ | 4,072 | $ | 1,768 | $ | 2,157 | $ | 7,997 | ||||||||||||
Capital expenditures | $ | 56 | $ | 32 | $ | 106 | $ | 194 | ||||||||||||
The following table reconciles segment assets to Agilent's total assets: | ||||||||||||||||||||
October 31, | ||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
(in millions) | ||||||||||||||||||||
Total reportable segments' assets | $ | 8,044 | $ | 7,997 | ||||||||||||||||
Cash, cash equivalents and short-term investments | 2,675 | 2,351 | ||||||||||||||||||
Prepaid expenses | 198 | 128 | ||||||||||||||||||
Investments | 139 | 109 | ||||||||||||||||||
Long-term and other receivables | 162 | 161 | ||||||||||||||||||
Other | (532 | ) | (210 | ) | ||||||||||||||||
Total assets | $ | 10,686 | $ | 10,536 | ||||||||||||||||
The other category primarily represents the difference between how segments report deferred taxes and intangible assets at the initial purchased amount. | ||||||||||||||||||||
The following table presents summarized information for net revenue and long-lived assets by geographic region. Revenues from external customers are generally attributed to countries based upon the location of the Agilent sales representative. Long lived assets consist of property, plant, and equipment, long-term receivables and other long-term assets excluding intangible assets. The rest of the world primarily consists of rest of Asia and Europe. | ||||||||||||||||||||
United | China | Japan | Rest of the | Total | ||||||||||||||||
States | World | |||||||||||||||||||
(in millions) | ||||||||||||||||||||
Net revenue: | ||||||||||||||||||||
Year ended October 31, 2013 | $ | 2,043 | $ | 1,131 | $ | 628 | $ | 2,980 | $ | 6,782 | ||||||||||
Year ended October 31, 2012 | $ | 2,218 | $ | 1,078 | $ | 716 | $ | 2,846 | $ | 6,858 | ||||||||||
Year ended October 31, 2011 | $ | 2,016 | $ | 1,035 | $ | 700 | $ | 2,864 | $ | 6,615 | ||||||||||
United | Japan | Rest of the | Total | |||||||||||||||||
States | World | |||||||||||||||||||
(in millions) | ||||||||||||||||||||
Long-lived assets: | ||||||||||||||||||||
October 31, 2013 | $ | 601 | $ | 130 | $ | 715 | $ | 1,446 | ||||||||||||
31-Oct-12 | $ | 550 | $ | 167 | $ | 645 | $ | 1,362 | ||||||||||||
Schedule_II_Valuation_and_Qual
Schedule II Valuation and Qualifying Accounts | 12 Months Ended | ||||||||||||||||
Oct. 31, 2013 | |||||||||||||||||
Schedule To Financial Statements [Abstract] | ' | ||||||||||||||||
Schedule II - Valuation and Qualifying Accounts | ' | ||||||||||||||||
SCHEDULE II | |||||||||||||||||
VALUATION AND QUALIFYING ACCOUNTS | |||||||||||||||||
Column A | Column B | Column C | Column D | Column E | |||||||||||||
Description | Balance at | Additions Charged to | Deductions Credited to Expenses or Other Accounts** | Balance at | |||||||||||||
Beginning | Expenses or | End of | |||||||||||||||
of Period | Other Accounts* | Period | |||||||||||||||
(in millions) | |||||||||||||||||
2013 | |||||||||||||||||
Tax valuation allowance | $ | 93 | $ | — | $ | (8 | ) | $ | 85 | ||||||||
2012 | |||||||||||||||||
Tax valuation allowance | $ | 369 | $ | 4 | $ | (280 | ) | $ | 93 | ||||||||
2011 | |||||||||||||||||
Tax valuation allowance | $ | 527 | $ | 3 | $ | (161 | ) | $ | 369 | ||||||||
* Additions include current year additions charged to expenses and current year build due to increases in net deferred tax assets, return to provision true-ups, other adjustments and OCI impact to deferred taxes. | |||||||||||||||||
** Deductions include current year releases credited to expenses and current year reductions due to decreases in net deferred tax assets, return to provision true-ups, other adjustments and OCI impact to deferred taxes. For 2012, the amount reflects the reversal of the valuation allowance for most of our U.S. federal and state deferred tax assets since management concluded that it is more likely than not that these deferred tax assets will be realized primarily due to the emergence from cumulative losses in recent years, the return to sustainable U.S. operating profits and the expectation of sustainable profitability in future periods. | |||||||||||||||||
OVERVIEW_AND_SUMMARY_OF_SIGNIF1
OVERVIEW AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Oct. 31, 2013 | |
Accounting Policies [Abstract] | ' |
Principles of consolidation | ' |
Principles of consolidation. The consolidated financial statements include the accounts of the company and our wholly- and majority-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. | |
Use of estimates | ' |
Use of estimates. The preparation of financial statements in accordance with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the amounts reported in our consolidated financial statements and accompanying notes. Management bases its estimates on historical experience and various other assumptions believed to be reasonable. Although these estimates are based on management's best knowledge of current events and actions that may impact the company in the future, actual results may be different from the estimates. Our critical accounting policies are those that affect our financial statements materially and involve difficult, subjective or complex judgments by management. Those policies are revenue recognition, valuation of goodwill and purchased intangible assets, inventory valuation, share-based compensation, retirement and post-retirement plan assumptions, restructuring and accounting for income taxes. | |
Revenue recognition | ' |
Revenue recognition. We enter into agreements to sell products (hardware and/or software), services and other arrangements (multiple element arrangements) that include combinations of products and services. | |
We recognize revenue, net of trade discounts and allowances, provided that (1) persuasive evidence of an arrangement exists, (2) delivery has occurred, (3) the price is fixed or determinable and (4) collectability is reasonably assured. Delivery is considered to have occurred when title and risk of loss have transferred to the customer, for products, or when the service has been provided. We consider the price to be fixed or determinable when the price is not subject to refund or adjustments. We consider arrangements with extended payment terms not to be fixed or determinable, and accordingly we defer revenue until amounts become due. At the time of the transaction, we evaluate the creditworthiness of our customers to determine the appropriate timing of revenue recognition. | |
Product revenue. Our product revenue is generated predominantly from the sales of various types of test equipment. Product revenue, including sales to resellers and distributors, is reduced for estimated returns, when appropriate. For sales or arrangements that include customer-specified acceptance criteria, including those where acceptance is required upon achievement of performance milestones, revenue is recognized after the acceptance criteria have been met. For products that include installation, if the installation meets the criteria to be considered a separate element, product revenue is recognized upon delivery, and recognition of installation revenue is delayed until the installation is complete. Otherwise, neither the product nor the installation revenue is recognized until the installation is complete. | |
Where software is licensed separately, revenue is recognized when the software is delivered and has been transferred to the customer or, in the case of electronic delivery of software, when the customer is given access to the licensed software programs. | |
We also evaluate whether collection of the receivable is probable, the fee is fixed or determinable and whether any other undelivered elements of the arrangement exist on which a portion of the total fee would be allocated based on vendor-specific objective evidence. | |
Service revenue. Revenue from services includes extended warranty, customer and software support, consulting, training and education. Service revenue is deferred and recognized over the contractual period or as services are rendered and accepted by the customer. For example, customer support contracts are recognized ratably over the contractual period, while training revenue is recognized as the training is provided to the customer. In addition the four revenue recognition criteria described above must be met before service revenue is recognized. | |
Revenue Recognition for Arrangements with Multiple Deliverables. Our multiple-element arrangements are generally comprised of a combination of measurement instruments, installation or other start-up services, and/or software and/or support or services. Hardware and software elements are typically delivered at the same time and revenue is recognized upon delivery once title and risk of loss pass to the customer. Delivery of installation, start-up services and other services varies based on the complexity of the equipment, staffing levels in a geographic location and customer preferences, and can range from a few days to a few months. Service revenue is deferred and recognized over the contractual period or as services are rendered and accepted by the customer. Revenue from the sale of software products that are not required to deliver the tangible product's essential functionality are accounted for under software revenue recognition rules which require vendor specific objective evidence ("VSOE") of fair value to allocate revenue in a multiple element arrangement. Our arrangements generally do not include any provisions for cancellation, termination, or refunds that would significantly impact recognized revenue. | |
We have evaluated the deliverables in our multiple-element arrangements and concluded that they are separate units of accounting if the delivered item or items have value to the customer on a standalone basis and for an arrangement that includes a general right of return relative to the delivered item(s), delivery or performance of the undelivered item(s) is considered probable and substantially in our control. We allocate revenue to each element in our multiple-element arrangements based upon their relative selling prices. We determine the selling price for each deliverable based on a selling price hierarchy. The selling price for a deliverable is based on VSOE if available, third-party evidence ("TPE") if VSOE is not available, or estimated selling price ("ESP") if neither VSOE nor TPE is available. Revenue allocated to each element is then recognized when the basic revenue recognition criteria for that element have been met. | |
We use VSOE of selling price in the selling price allocation in all instances where it exists. VSOE of selling price for products and services is determined when a substantial majority of the selling prices fall within a reasonable range when sold separately. TPE of selling price can be established by evaluating largely interchangeable competitor products or services in standalone sales to similarly situated customers. As our products contain a significant element of proprietary technology and the solution offered differs substantially from that of competitors, it is difficult to obtain the reliable standalone competitive pricing necessary to establish TPE. ESP represents the best estimate of the price at which we would transact a sale if the product or service were sold on a standalone basis. We determine ESP for a product or service by using historical selling prices which reflect multiple factors including, but not limited to customer type, geography, market conditions, competitive landscape, gross margin objectives and pricing practices. The determination of ESP is made through consultation with and approval by management. We may modify or develop new pricing practices and strategies in the future. As these pricing strategies evolve in changes may occur in ESP. The aforementioned factors may result in a different allocation of revenue to the deliverables in multiple element arrangements, which may change the pattern and timing of revenue recognition for these elements but will not change the total revenue recognized for the arrangement. | |
Deferred revenue. Deferred revenue represents the amount that is allocated to undelivered elements in multiple element arrangements. We limit the revenue recognized to the amount that is not contingent on the future delivery of products or services or meeting other specified performance conditions. | |
Accounts receivable, net | ' |
Accounts receivable, net. Trade accounts receivable are recorded at the invoiced amount and do not bear interest. Such accounts receivable has been reduced by an allowance for doubtful accounts, which is our best estimate of the amount of probable credit losses in our existing accounts receivable. We determine the allowance based on customer specific experience and the aging of such receivables, among other factors. The allowance for doubtful accounts as of October 31, 2013 and 2012 was not material. We do not have any off-balance-sheet credit exposure related to our customers. Accounts receivable are also recorded net of product returns. | |
Share-based compensation | ' |
Share-based compensation. For the years ended 2013, 2012 and 2011, we accounted for share-based awards made to our employees and directors including employee stock option awards, restricted stock units, employee stock purchases made under our Employee Stock Purchase Plan ("ESPP") and performance share awards under Agilent Technologies, Inc. Long-Term Performance Program ("LTPP") using the estimated grant date fair value method of accounting. Under the fair value method, we recorded compensation expense for all share-based awards of $88 million in 2013, $76 million in 2012 and $73 million in 2011. | |
Inventory | ' |
Inventory. Inventory is valued at standard cost, which approximates actual cost computed on a first-in, first-out basis, not in excess of market value. We assess the valuation of our inventory on a periodic basis and make adjustments to the value for estimated excess and obsolete inventory based on estimates about future demand. The excess balance determined by this analysis becomes the basis for our excess inventory charge. Our excess inventory review process includes analysis of sales forecasts, managing product rollovers and working with manufacturing to maximize recovery of excess inventory. | |
Warranty | ' |
Warranty. Our standard warranty terms typically extend for one year from the date of delivery. During the second fiscal quarter of 2013 typical standard warranty arrangements within our electronic measurement business were extended from one year to three years from the date of delivery. Prior to the change in standard warranty terms, we sold extended warranties of more than one year and less than three years which were deferred. Those existing warranties greater than one year and less than three years and previously classified as extended warranties will be amortized over the original period of the warranty. We will continue to sell extended warranties for terms beyond three years within the electronic measurement business. The impact will not be material to the segment or consolidated revenue of Agilent and the anticipated increase to the warranty accrual as a result of the new arrangements will not be material to the consolidated balance sheet of Agilent. No changes were made to the standard and extended warranty terms within our other businesses.We accrue for standard warranty costs based on historical trends in warranty charges as a percentage of net product revenue. The accrual is reviewed regularly and periodically adjusted to reflect changes in warranty cost estimates. Estimated warranty charges are recorded within cost of products at the time products are sold. See Note 16, "Guarantees". | |
Taxes on income | ' |
Taxes on income. Income tax expense or benefit is based on income or loss before taxes. Deferred tax assets and liabilities are recognized principally for the expected tax consequences of temporary differences between the tax bases of assets and liabilities and their reported amounts. | |
Shipping and handling costs | ' |
Shipping and handling costs. Our shipping and handling costs charged to customers are included in net revenue, and the associated expense is recorded in cost of products for all periods presented. | |
Goodwill and Purchased Intangible Assets | ' |
Goodwill and Purchased Intangible Assets. In September 2011, the FASB approved changes to the goodwill impairment guidance which are intended to reduce the cost and complexity of the annual impairment test. The changes provide entities an option to perform a qualitative assessment to determine whether further impairment testing is necessary. The revised standard gives an entity the option to first assess qualitative factors to determine whether performing the current two-step test is necessary. If an entity believes, as a result of its qualitative assessment, that it is more-likely-than-not (i.e. > 50% chance) that the fair value of a reporting unit is less than its carrying amount, the quantitative impairment test will be required. Otherwise, no further testing will be required. | |
The revised guidance includes examples of events and circumstances that might indicate that a reporting unit's fair value is less than its carrying amount. These include macro-economic conditions such as deterioration in the entity's operating environment or industry or market considerations; entity-specific events such as increasing costs, declining financial performance, or loss of key personnel; or other events such as an expectation that a reporting unit will be sold or a sustained decrease in the stock price on either an absolute basis or relative to peers. Agilent opted to early adopt this guidance for the year ended October 31, 2011. | |
If it is determined, as a result of the qualitative assessment, that it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount, the provisions of authoritative guidance require that we perform a two-step impairment test on goodwill. In the first step, we compare the fair value of each reporting unit to its carrying value. The second step (if necessary) measures the amount of impairment by applying fair-value-based tests to the individual assets and liabilities within each reporting unit. As defined in the authoritative guidance, a reporting unit is an operating segment, or one level below an operating segment. We aggregated components of operating segments that have similar economic characteristics into our reporting units. In October 2013, we combined the life sciences and diagnostics and genomics segments to form the life sciences and diagnostics segment. As a result, Agilent now has three segments, life sciences and diagnostics, chemical analysis, and electronic measurement segments. | |
In fiscal year 2013, we assessed goodwill impairment for our four reporting units which consisted of two segments: chemical analysis and electronic measurement; and two reporting units under the life sciences and diagnostics segment. The first of these two reporting units related to our life sciences business and the second related to our diagnostics business. We performed a qualitative test for goodwill impairment of the following three reporting units, as of September 30, 2013: the chemical analysis segment, the electronic measurement segment, and the reporting unit relating to life sciences. Based on the results of our qualitative testing, we believe that it is more-likely-than-not that the fair value of these reporting units are greater than their respective carrying values. We performed a quantitative test for goodwill impairment of the reporting unit related to our diagnostics business as of September 30, 2013. Based on the results of our quantitative testing, the fair value was significantly in excess of the carrying value. There was no impairment of goodwill during the years ended October 31, 2013, 2012 and 2011. Each quarter we review the events and circumstances to determine if goodwill impairment is indicated. | |
Purchased intangible assets consist primarily of acquired developed technologies, proprietary know-how, trademarks, and customer relationships and are amortized using the straight-line method over estimated useful lives ranging from 6 months to 15 years. In-process research and development ("IPR&D") is initially capitalized at fair value as an intangible asset with an indefinite life and assessed for impairment thereafter. When the IPR&D project is complete, it is reclassified as an amortizable purchased intangible asset and is amortized over its estimated useful life. If an IPR&D project is abandoned, Agilent will record a charge for the value of the related intangible asset to Agilent's consolidated statement of operations in the period it is abandoned. | |
In July 2012, the FASB simplified the guidance for testing for impairment of indefinite-lived intangible assets other than goodwill. The changes are intended to reduce compliance costs. Agilent's indefinite-lived intangible assets are IPR&D intangible assets. The revised guidance allows a qualitative approach for testing indefinite-lived intangible assets for impairment, similar to the impairment testing guidance for goodwill. It allows the option to first assess qualitative factors (events and circumstances) that could affect the significant inputs used in determining the fair value of the indefinite-lived intangible asset. The qualitative factors assist in determining whether it is more likely than not (meaning a likelihood of more than 50 percent) that the indefinite-lived intangible asset is impaired. An organization may choose to bypass the qualitative assessment for any indefinite-lived intangible asset in any period and proceed directly to calculating its fair value. The amendments are effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. Early adoption was permitted. Agilent adopted this guidance for the year ended October 31, 2012. Based on the quantitative test, we recorded an impairment of $1 million in 2013 and an impairment of $1 million in 2012, both relating to IPR&D projects that were abandoned. In all other instances we used the qualitative test and concluded that it was more likely than not that all other indefinite-lived intangible assets were not impaired. No impairments were recorded in 2011. | |
Advertising | ' |
Advertising. Advertising costs are expensed as incurred and amounted to $44 million in 2013, $50 million in 2012 and $55 million in 2011. | |
Research and development | ' |
Research and development. Costs related to research, design and development of our products are charged to research and development expense as they are incurred. | |
Sales Taxes | ' |
Sales Taxes. Sales taxes collected from customers and remitted to governmental authorities are not included in our revenue. | |
Net income (loss) per share | ' |
Net income per share. Basic net income per share is computed by dividing net income - the numerator - by the weighted average number of common shares outstanding - the denominator - during the period excluding the dilutive effect of stock options and other employee stock plans. Diluted net income per share gives effect to all potentially dilutive common stock equivalents outstanding during the period. The dilutive effect of share-based awards is reflected in diluted net income per share by application of the treasury stock method, which includes consideration of unamortized share-based compensation expense, the tax benefits and shortfalls charged to additional paid-in capital and the dilutive effect of in-the-money options and non-vested restricted stock units. Under the treasury stock method, the amount the employee must pay for exercising stock options, unamortized share-based compensation expense and tax benefits or shortfalls are assumed proceeds to be used to repurchase hypothetical shares. See Note 6, "Net Income Per Share". | |
Cash, cash equivalents and short term investments | ' |
Cash, cash equivalents and short term investments. We classify investments as cash equivalents if their original or remaining maturity is three months or less at the date of purchase. Cash equivalents are stated at cost, which approximates fair value. | |
As of October 31, 2013, approximately $2,552 million of our cash and cash equivalents is held outside of the U.S. in our foreign subsidiaries. Under current tax laws, most of the cash could be repatriated to the U.S. but it would be subject to U.S. federal and state income taxes, less applicable foreign tax credits. Our cash and cash equivalents mainly consist of short term deposits held at major global financial institutions, institutional money market funds, and similar short duration instruments with original maturities of 90 days or less. We continuously monitor the creditworthiness of the financial institutions and institutional money market funds in which we invest our funds. | |
We classify investments as short-term investments if their original maturities are greater than three months and their remaining maturities are one year or less. | |
Fair Value of Financial Instruments | ' |
Fair Value of Financial Instruments. The carrying values of certain of our financial instruments including cash and cash equivalents, accounts receivable, accounts payable, accrued compensation and other accrued liabilities approximate fair value because of their short maturities. The fair value of long-term equity investments is determined using quoted market prices for those securities when available. For those long-term equity investments accounted for under the cost or equity method, their carrying value approximates their estimated fair value. Equity method investments are reported at the amount of the company’s initial investment and adjusted each period for the company’s share of the investee’s income or loss and dividend paid. The fair value of our long-term debt, calculated from quoted prices which are primarily Level 1 inputs under the accounting guidance fair value hierarchy, exceeds the carrying value by approximately $112 million and $210 million as of October 31, 2013 and 2012, respectively. The fair value of foreign currency contracts used for hedging purposes is estimated internally by using inputs tied to active markets. These inputs, for example, interest rate yield curves, foreign exchange rates, and forward and spot prices for currencies are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. See also Note 12, "Fair Value Measurements" for additional information on the fair value of financial instruments. | |
Concentration of credit risk | ' |
Concentration of credit risk. Financial instruments that potentially subject Agilent to significant concentration of credit risk include money market fund investments, time deposits and demand deposit balances. These investments are categorized as cash and cash equivalents and long-term investments. In addition, Agilent has credit risk from derivative financial instruments used in hedging activities and accounts receivable. We invest in a variety of financial instruments and limit the amount of credit exposure with any one financial institution. We have a comprehensive credit policy in place and credit exposure is monitored on an ongoing basis. | |
Credit risk with respect to our accounts receivable is diversified due to the large number of entities comprising our customer base and their dispersion across many different industries and geographies. Credit evaluations are performed on customers requiring credit over a certain amount and we sell the majority of our products through our direct sales force. Credit risk is mitigated through collateral such as letter of credit, bank guarantees or payment terms like cash in advance. Credit evaluation is performed by an independent team to ensure proper segregation of duties. No single customer accounted for more than 10 percent of combined accounts receivable as of October 31, 2013, or 2012. | |
Derivative instruments | ' |
Derivative instruments. Agilent is exposed to global foreign currency exchange rate and interest rate risks in the normal course of business. We enter into foreign exchange hedging contracts, primarily forward contracts and purchased options and, in the past, interest rate swaps to manage financial exposures resulting from changes in foreign currency exchange rates and interest rates. In the vast majority of cases, these contracts are designated at inception as hedges of the related foreign currency or interest exposures. Foreign currency exposures include committed and anticipated revenue and expense transactions and assets and liabilities that are denominated in currencies other than the functional currency of the subsidiary. Interest rate exposures are associated with the company's fixed-rate debt. For option contracts, we exclude time value from the measurement of effectiveness. To qualify for hedge accounting, contracts must reduce the foreign currency exchange rate and interest rate risk otherwise inherent in the amount and duration of the hedged exposures and comply with established risk management policies; foreign exchange hedging contracts generally mature within twelve months and interest rate swaps, if any, mature at the same time as the maturity of the debt. In order to manage foreign currency exposures in a few limited jurisdictions we may enter into foreign exchange contracts that do not qualify for hedge accounting. In such circumstances, the local foreign currency exposure is offset by contracts owned by the parent company. We do not use derivative financial instruments for speculative trading purposes. | |
All derivatives are recognized on the balance sheet at their fair values. For derivative instruments that are designated and qualify as a fair value hedge, changes in value of the derivative are recognized in the consolidated statement of operations in the current period, along with the offsetting gain or loss on the hedged item attributable to the hedged risk. For derivative instruments that are designated and qualify as a cash flow hedges, changes in the value of the effective portion of the derivative instrument is recognized in accumulated comprehensive income, a component of stockholders' equity. Amounts associated with cash flow hedges are reclassified and recognized in income when either the forecasted transaction occurs or it becomes probable the forecasted transaction will not occur. Derivatives not designated as hedging instruments are recorded on the balance sheet at their fair value and changes in the fair values are recorded in the income statement in the current period. Derivative instruments are subject to master netting arrangements and qualify for net presentation in the balance sheet. Changes in the fair value of the ineffective portion of derivative instruments are recognized in earnings in the current period. Ineffectiveness in 2013, 2012 and 2011 was not material. Cash flows from derivative instruments are classified in the statement of cash flows in the same category as the cash flows from the hedged or economically hedged item, primarily in operating activities. | |
Property, plant and equipment | ' |
Property, plant and equipment. Property, plant and equipment are stated at cost less accumulated depreciation. Additions, improvements and major renewals are capitalized; maintenance, repairs and minor renewals are expensed as incurred. When assets are retired or disposed of, the assets and related accumulated depreciation and amortization are removed from our general ledger, and the resulting gain or loss is reflected in the consolidated statement of operations. Buildings and improvements are depreciated over the lesser of their useful lives or the remaining term of the lease and machinery and equipment over three to ten years. We use the straight-line method to depreciate assets. | |
Leases | ' |
Leases. We lease buildings, machinery and equipment under operating leases for original terms ranging generally from one year to twenty years. Certain leases contain renewal options for periods up to six years. | |
Capitalized software | ' |
Capitalized software. We capitalize certain internal and external costs incurred to acquire or create internal use software. Capitalized software is included in property, plant and equipment and is depreciated over three to five years once development is complete. | |
Impairment of long-lived assets | ' |
Impairment of long-lived assets. We continually monitor events and changes in circumstances that could indicate carrying amounts of long-lived assets, including intangible assets, may not be recoverable. When such events or changes in circumstances occur, we assess the recoverability of long-lived assets by determining whether the carrying value of such assets will be recovered through undiscounted expected future cash flows. If the total of the undiscounted future cash flows is less than the carrying amount of those assets, we recognize an impairment loss based on the excess of the carrying amount over the fair value of the assets. | |
Restructuring and asset impairments | ' |
Restructuring. The main component of our restructuring plan is related to workforce reductions. Workforce reduction charges are accrued when payment of benefits becomes probable that the employees are entitled to the severance and the amounts can be estimated. If the amounts and timing of cash flows from restructuring activities are significantly different from what we have estimated, the actual amount of restructuring and other related charges could be materially different, either higher or lower, than those we have recorded. | |
Employee compensation and benefits | ' |
Employee compensation and benefits. Amounts owed to employees, such as accrued salary, bonuses and vacation benefits are accounted for within employee compensation and benefits. The total amount of accrued vacation benefit was $158 million and $156 million as of October 31, 2013, and 2012, respectively. | |
Foreign currency translation | ' |
Foreign currency translation. We translate and remeasure balance sheet and income statement items into U.S. dollars. For those subsidiaries that operate in a local currency functional environment, all assets and liabilities are translated into U.S. dollars using current exchange rates at the balance sheet date; revenue and expenses are translated using monthly exchange rates which approximate to average exchange rates in effect during each period. Resulting translation adjustments are reported as a separate component of accumulated other comprehensive income (loss) in stockholders' equity. | |
For those subsidiaries that operate in a U.S. dollar functional environment, foreign currency assets and liabilities are remeasured into U.S. dollars at current exchange rates except for nonmonetary assets and capital accounts which are remeasured at historical exchange rates. Revenue and expenses are generally remeasured at monthly exchange rates which approximate average exchange rates in effect during each period. Gains or losses from foreign currency remeasurement are included in consolidated net income. Net gains or losses resulting from foreign currency transactions, including hedging gains and losses, are reported in other income (expense), net and was $6 million loss for fiscal year 2013, $19 million loss for 2012 and $1 million loss for 2011, respectively. The loss recorded for fiscal year 2012 includes $14 million of loss associated with the settlement of currency contracts entered into for the purchase of Dako. |
ACQUISITIONS_Tables
ACQUISITIONS (Tables) (Dako [Member]) | 12 Months Ended | |||||||
Oct. 31, 2013 | ||||||||
Dako [Member] | ' | |||||||
Business Acquisition [Line Items] | ' | |||||||
Schedule of Business Acquisition | ' | |||||||
The following table summarizes the allocation of the purchase price to the estimated fair values of the assets acquired and liabilities assumed on the closing date of June 21, 2012 (in millions): | ||||||||
Cash and cash equivalents | $ | 11 | ||||||
Accounts receivable | 96 | |||||||
Inventories | 90 | |||||||
Other current assets | 5 | |||||||
Property, plant and equipment | 146 | |||||||
Long term investments | 11 | |||||||
Intangible assets | 738 | |||||||
Other assets | 13 | |||||||
Goodwill | 1,382 | |||||||
Total assets acquired | 2,492 | |||||||
Accounts payable | (24 | ) | ||||||
Employee compensation and benefits | (24 | ) | ||||||
Other accrued liabilities | (47 | ) | ||||||
Long-term debt | (43 | ) | ||||||
Other long-term liabilities | (211 | ) | ||||||
Net assets acquired | $ | 2,143 | ||||||
Schedule of valuations of intangible assets acquired | ' | |||||||
The components of intangible assets acquired in connection with the Dako acquisition were as follows (in millions): | ||||||||
Fair Value | Estimated | |||||||
Useful Life | ||||||||
Developed product technology | $ | 287 | 8 - 9 yrs | |||||
Customer relationships | 140 | 4 years | ||||||
Tradenames and trademarks | 128 | 12 years | ||||||
Total intangible assets subject to amortization | 555 | |||||||
In-process research and development | 183 | |||||||
Total intangible assets | $ | 738 | ||||||
Business Acquisition, Pro Forma Information | ' | |||||||
The following represents pro forma operating results as if Dako had been included in the company's condensed consolidated statements of operations as of the beginning of fiscal 2011(in millions, except per share amounts): | ||||||||
2012 | 2011 | |||||||
Net revenue | $ | 7,100 | $ | 6,976 | ||||
Net income | $ | 1,145 | $ | 909 | ||||
Net income per share — basic | $ | 3.29 | $ | 2.62 | ||||
Net income per share — diluted | $ | 3.24 | $ | 2.56 | ||||
SHAREBASED_COMPENSATION_Tables
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended | |||||||||||||||||||||||||
Oct. 31, 2013 | ||||||||||||||||||||||||||
Share-based Compensation [Abstract] | ' | |||||||||||||||||||||||||
Allocated Share-based compensation expense disclosure | ' | |||||||||||||||||||||||||
The impact on our results for share-based compensation was as follows: | ||||||||||||||||||||||||||
Years Ended October 31, | ||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
Cost of products and services | $ | 20 | $ | 16 | $ | 16 | ||||||||||||||||||||
Research and development | 12 | 10 | 10 | |||||||||||||||||||||||
Selling, general and administrative | 56 | 50 | 47 | |||||||||||||||||||||||
Total share-based compensation expense | $ | 88 | $ | 76 | $ | 73 | ||||||||||||||||||||
Share-based compensation arrangement by share-based payment award fair value assumptions and methodology schedule | ' | |||||||||||||||||||||||||
The following assumptions were used to estimate the fair value of employee stock options and LTPP grants. | ||||||||||||||||||||||||||
Years Ended October 31, | ||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||
Stock Option Plans: | ||||||||||||||||||||||||||
Weighted average risk-free interest rate | 0.86% | 0.88% | 1.49% | |||||||||||||||||||||||
Dividend yield | 1% | 0% | 0% | |||||||||||||||||||||||
Weighted average volatility | 39% | 38% | 35% | |||||||||||||||||||||||
Expected life | 5.8 years | 5.8 years | 5.8 years | |||||||||||||||||||||||
LTPP: | ||||||||||||||||||||||||||
Volatility of Agilent shares | 37% | 41% | 40% | |||||||||||||||||||||||
Volatility of selected peer-company shares | 6%-64% | 17%-75% | 20%-76% | |||||||||||||||||||||||
Price-wise correlation with selected peers | 49% | 62% | 55% | |||||||||||||||||||||||
Summary of stock option award activity | ' | |||||||||||||||||||||||||
The following table summarizes employee stock option award activity made to our employees and directors for 2013: | ||||||||||||||||||||||||||
Options | Weighted | |||||||||||||||||||||||||
Outstanding | Average | |||||||||||||||||||||||||
Exercise Price | ||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||
Outstanding at October 31, 2012 | 12,077 | $ | 30 | |||||||||||||||||||||||
Granted | 1,596 | $ | 36 | |||||||||||||||||||||||
Exercised | (4,037 | ) | $ | 28 | ||||||||||||||||||||||
Cancelled/Forfeited/Expired | (27 | ) | $ | 17 | ||||||||||||||||||||||
Outstanding at October 31, 2013 | 9,609 | $ | 32 | |||||||||||||||||||||||
Forfeited and expired options from total cancellations in 2013 were as follows: | ||||||||||||||||||||||||||
Options | Weighted | |||||||||||||||||||||||||
Cancelled | Average | |||||||||||||||||||||||||
Exercise Price | ||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||
Forfeited | — | $ | — | |||||||||||||||||||||||
Expired | 27 | $ | 17 | |||||||||||||||||||||||
Total Options Cancelled during 2013 | 27 | $ | 17 | |||||||||||||||||||||||
Schedule of share-based compensation, shares authorized under stock option plans, by exercise price range | ' | |||||||||||||||||||||||||
The options outstanding and exercisable for equity share-based payment awards at October 31, 2013 were as follows: | ||||||||||||||||||||||||||
Options Outstanding | Options Exercisable | |||||||||||||||||||||||||
Range of | Number | Weighted | Weighted | Aggregate | Number | Weighted | Weighted | Aggregate | ||||||||||||||||||
Exercise Prices | Outstanding | Average | Average | Intrinsic | Exercisable | Average | Average | Intrinsic | ||||||||||||||||||
Remaining | Exercise | Value | Remaining | Exercise | Value | |||||||||||||||||||||
Contractual | Price | Contractual | Price | |||||||||||||||||||||||
Life | Life | |||||||||||||||||||||||||
(in thousands) | (in years) | (in thousands) | (in thousands) | (in years) | (in thousands) | |||||||||||||||||||||
$0 - 25 | 1,507 | 2.4 | $ | 20 | $ | 45,750 | 1,507 | 2.4 | $ | 20 | $ | 45,750 | ||||||||||||||
$25.01 - 30 | 1,051 | 5.9 | $ | 29 | 22,418 | 691 | 5.8 | $ | 29 | 14,727 | ||||||||||||||||
$30.01 - 40 | 7,045 | 5.6 | $ | 35 | 112,829 | 3,870 | 3.4 | $ | 34 | 66,448 | ||||||||||||||||
$40.01 & over | 6 | 8.4 | $ | 45 | 33 | 1 | 8.4 | $ | 45 | 8 | ||||||||||||||||
9,609 | 5.1 | $ | 32 | $ | 181,030 | 6,069 | 3.4 | $ | 30 | $ | 126,933 | |||||||||||||||
Schedule of intrinsic value of options exercised and the fair value of options granted | ' | |||||||||||||||||||||||||
The following table summarizes the aggregate intrinsic value of options exercised and the fair value of options granted in 2013, 2012 and 2011: | ||||||||||||||||||||||||||
Aggregate | Weighted | Per Share Value Using | ||||||||||||||||||||||||
Intrinsic Value | Average | Black-Scholes | ||||||||||||||||||||||||
Exercise | Model | |||||||||||||||||||||||||
Price | ||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||
Options exercised in fiscal 2011 | $ | 164,738 | $ | 27 | ||||||||||||||||||||||
Black-Scholes per share value of options granted during fiscal 2011 | $ | 12 | ||||||||||||||||||||||||
Options exercised in fiscal 2012 | $ | 38,188 | $ | 23 | ||||||||||||||||||||||
Black-Scholes per share value of options granted during fiscal 2012 | $ | 14 | ||||||||||||||||||||||||
Options exercised in fiscal 2013 | $ | 71,499 | $ | 28 | ||||||||||||||||||||||
Black-Scholes per share value of options granted during fiscal 2013 | $ | 12 | ||||||||||||||||||||||||
Non-vested award activity disclosure | ' | |||||||||||||||||||||||||
The following table summarizes non-vested award activity in 2013 primarily for our LTPP and restricted stock unit awards: | ||||||||||||||||||||||||||
Shares | Weighted | |||||||||||||||||||||||||
Average | ||||||||||||||||||||||||||
Grant Price | ||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||
Non-vested at October 31, 2012 | 3,514 | $ | 35 | |||||||||||||||||||||||
Granted | 1,394 | $ | 38 | |||||||||||||||||||||||
Vested | (1,251 | ) | $ | 35 | ||||||||||||||||||||||
Forfeited | (76 | ) | $ | 38 | ||||||||||||||||||||||
Change in LTPP shares vested in the year due to performance conditions | (35 | ) | $ | 36 | ||||||||||||||||||||||
Non-vested at October 31, 2013 | 3,546 | $ | 37 | |||||||||||||||||||||||
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | |||||||||||||||
Oct. 31, 2013 | ||||||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||||||
Income before income taxes domestic and foreign | ' | |||||||||||||||
The domestic and foreign components of income before taxes are: | ||||||||||||||||
Years Ended October 31, | ||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||
(in millions) | ||||||||||||||||
U.S. operations | $ | 39 | $ | 45 | $ | 88 | ||||||||||
Non-U.S. operations | 820 | 998 | 944 | |||||||||||||
Total income before taxes | $ | 859 | $ | 1,043 | $ | 1,032 | ||||||||||
Provision for income taxes from operations | ' | |||||||||||||||
The provision (benefit) for income taxes is comprised of: | ||||||||||||||||
Years Ended October 31, | ||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||
(in millions) | ||||||||||||||||
U.S. federal taxes: | ||||||||||||||||
Current | $ | 24 | $ | 6 | $ | (1 | ) | |||||||||
Deferred | 48 | (144 | ) | — | ||||||||||||
Non-U.S. taxes: | ||||||||||||||||
Current | 77 | 41 | (6 | ) | ||||||||||||
Deferred | (24 | ) | (22 | ) | 28 | |||||||||||
State taxes, net of federal benefit: | ||||||||||||||||
Current | 3 | 1 | (11 | ) | ||||||||||||
Deferred | 7 | 8 | 10 | |||||||||||||
Total provision | $ | 135 | $ | (110 | ) | $ | 20 | |||||||||
Significant components of deferred tax assets and deferred tax liabilities | ' | |||||||||||||||
The significant components of deferred tax assets and deferred tax liabilities included on the consolidated balance sheet are: | ||||||||||||||||
October 31, | ||||||||||||||||
2013 | 2012 | |||||||||||||||
Deferred | Deferred Tax | Deferred | Deferred Tax | |||||||||||||
Tax Assets | Liabilities | Tax Assets | Liabilities | |||||||||||||
(in millions) | ||||||||||||||||
Inventory | $ | 32 | $ | — | $ | 24 | $ | — | ||||||||
Intangibles | — | 214 | — | 239 | ||||||||||||
Property, plant and equipment | 18 | — | 11 | — | ||||||||||||
Warranty reserves | 25 | — | 21 | — | ||||||||||||
Retiree medical benefits | — | — | 5 | — | ||||||||||||
Pension benefits | 42 | — | 136 | — | ||||||||||||
Employee benefits, other than retirement | 57 | — | 60 | — | ||||||||||||
Net operating loss, capital loss, and credit carryforwards | 263 | — | 293 | — | ||||||||||||
Unrealized gains/losses on investments | 24 | — | 26 | — | ||||||||||||
Unremitted earnings of foreign subsidiaries | — | 114 | — | 88 | ||||||||||||
Share-based compensation | 54 | — | 57 | — | ||||||||||||
Deferred revenue | 27 | — | 27 | — | ||||||||||||
Other | 36 | 3 | 51 | 1 | ||||||||||||
Subtotal | 578 | 331 | 711 | 328 | ||||||||||||
Tax valuation allowance | (85 | ) | — | (93 | ) | — | ||||||||||
Total deferred tax assets or deferred tax liabilities | $ | 493 | $ | 331 | $ | 618 | $ | 328 | ||||||||
Current and Long Term Tax Assets and Liabilities [Table Text Block] | ' | |||||||||||||||
The breakdown between current and long-term income tax assets and liabilities, excluding deferred tax assets and liabilities, was as follows for the years 2013 and 2012: | ||||||||||||||||
October 31, | ||||||||||||||||
2013 | 2012 | |||||||||||||||
(in millions) | ||||||||||||||||
Current income tax assets (included within other current assets) | $ | 42 | $ | 65 | ||||||||||||
Long-term income tax assets (included within other assets) | 34 | 49 | ||||||||||||||
Current income tax liabilities (included within other accrued liabilities) | (48 | ) | (115 | ) | ||||||||||||
Long-term income tax liabilities (included within other long-term liabilities) | (341 | ) | (320 | ) | ||||||||||||
Total | $ | (313 | ) | $ | (321 | ) | ||||||||||
Tax rate reconciliation, U.S. federal statutory rate to effective tax rate from operations | ' | |||||||||||||||
Years Ended October 31, | ||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||
(in millions) | ||||||||||||||||
Profit before tax times statutory rate | $ | 301 | $ | 365 | $ | 361 | ||||||||||
State income taxes, net of federal benefit | 7 | 8 | (1 | ) | ||||||||||||
Non-U.S. income taxed at different rates | (162 | ) | (144 | ) | (153 | ) | ||||||||||
Change in unrecognized non-U.S. tax benefits | — | (68 | ) | (97 | ) | |||||||||||
Valuation allowances | (8 | ) | (280 | ) | (84 | ) | ||||||||||
Other, net | (3 | ) | 9 | (6 | ) | |||||||||||
Provision for income taxes | $ | 135 | $ | (110 | ) | $ | 20 | |||||||||
Effective tax rate | 16 | % | (11 | )% | 2 | % | ||||||||||
Current and long-term deferred tax assets and deferred tax liabilities | ' | |||||||||||||||
The breakdown between current and long-term deferred tax assets and deferred tax liabilities was as follows for the years 2013 and 2012: | ||||||||||||||||
October 31, | ||||||||||||||||
2013 | 2012 | |||||||||||||||
(in millions) | ||||||||||||||||
Current deferred tax assets (included within other current assets) | $ | 115 | $ | 95 | ||||||||||||
Long-term deferred tax assets (included within other assets) | 264 | 400 | ||||||||||||||
Current deferred tax liabilities (included within other accrued liabilities) | (4 | ) | (2 | ) | ||||||||||||
Long-term deferred tax liabilities (included within other long-term liabilities) | (213 | ) | (203 | ) | ||||||||||||
Total | $ | 162 | $ | 290 | ||||||||||||
Income tax contingencies rollforward | ' | |||||||||||||||
tax benefits including all federal, state and foreign tax jurisdictions are as follows: | ||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||
(in millions) | ||||||||||||||||
Balance, beginning of year | $ | 464 | $ | 469 | $ | 656 | ||||||||||
Additions for acquisitions | — | — | — | |||||||||||||
Additions for tax positions related to the current year | 53 | 56 | 41 | |||||||||||||
Additions for tax positions from prior years | 11 | 40 | 18 | |||||||||||||
Reductions for tax positions from prior years | (6 | ) | (90 | ) | (170 | ) | ||||||||||
Settlements with taxing authorities | (3 | ) | (2 | ) | (67 | ) | ||||||||||
Statute of limitations expirations | (3 | ) | (9 | ) | (9 | ) | ||||||||||
Balance, end of year | $ | 516 | $ | 464 | $ | 469 | ||||||||||
NET_INCOME_LOSS_PER_SHARE_Tabl
NET INCOME (LOSS) PER SHARE (Tables) | 12 Months Ended | |||||||||||
Oct. 31, 2013 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
Reconciliation of the numerators and denominators of the basic and diluted net income per share | ' | |||||||||||
The following is a reconciliation of the numerators and denominators of the basic and diluted net income per share computations for the periods presented below. | ||||||||||||
Years Ended October 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(in millions) | ||||||||||||
Numerator: | ||||||||||||
Net income | $ | 724 | $ | 1,153 | $ | 1,012 | ||||||
Denominators: | ||||||||||||
Basic weighted average shares | 341 | 348 | 347 | |||||||||
Potentially dilutive common stock equivalents — stock options and other employee stock plans | 4 | 5 | 8 | |||||||||
Diluted weighted average shares | 345 | 353 | 355 | |||||||||
INVENTORY_Tables
INVENTORY (Tables) | 12 Months Ended | |||||||
Oct. 31, 2013 | ||||||||
Inventory, Net [Abstract] | ' | |||||||
Inventory | ' | |||||||
October 31, | ||||||||
2013 | 2012 | |||||||
(in millions) | ||||||||
Finished goods | $ | 552 | $ | 509 | ||||
Purchased parts and fabricated assemblies | 514 | 505 | ||||||
Inventory | $ | 1,066 | $ | 1,014 | ||||
PROPERTY_PLANT_AND_EQUIPMENT_N1
PROPERTY, PLANT AND EQUIPMENT, NET (Tables) | 12 Months Ended | |||||||
Oct. 31, 2013 | ||||||||
Property, Plant and Equipment, Net [Abstract] | ' | |||||||
Property, Plant and Equipment | ' | |||||||
October 31, | ||||||||
2013 | 2012 | |||||||
(in millions) | ||||||||
Land | $ | 131 | $ | 142 | ||||
Buildings and leasehold improvements | 1,330 | 1,475 | ||||||
Machinery and equipment | 1,019 | 882 | ||||||
Software | 398 | 383 | ||||||
Total property, plant and equipment | 2,878 | 2,882 | ||||||
Accumulated depreciation and amortization | (1,744 | ) | (1,718 | ) | ||||
Property, plant and equipment, net | $ | 1,134 | $ | 1,164 | ||||
GOODWILL_AND_OTHER_INTANGIBLE_1
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended | |||||||||||||||
Oct. 31, 2013 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||
Goodwill balances and movements for each reportable segments during the period | ' | |||||||||||||||
The goodwill balances at October 31, 2013, 2012 and 2011 and the movements in 2013 and 2012 for each of our reportable segments are shown in the table below: | ||||||||||||||||
Life Sciences and Diagnostics | Chemical | Electronic | Total | |||||||||||||
Analysis | Measurement | |||||||||||||||
(in millions) | ||||||||||||||||
Goodwill as of October 31, 2011 | $ | 363 | $ | 760 | $ | 444 | $ | 1,567 | ||||||||
Foreign currency translation impact | 25 | (10 | ) | (9 | ) | 6 | ||||||||||
Goodwill arising from acquisitions | 1,419 | 1 | 32 | 1,452 | ||||||||||||
Goodwill as of October 31, 2012 | $ | 1,807 | $ | 751 | $ | 467 | $ | 3,025 | ||||||||
Foreign currency translation impact | 63 | (10 | ) | (47 | ) | 6 | ||||||||||
Goodwill arising from acquisitions and other adjustments | 13 | 4 | (1 | ) | 16 | |||||||||||
Goodwill as of October 31, 2013 | $ | 1,883 | $ | 745 | $ | 419 | $ | 3,047 | ||||||||
Components of other intangibles during the period | ' | |||||||||||||||
The component parts of other intangible assets at October 31, 2013 and 2012 are shown in the table below: | ||||||||||||||||
Other Intangible Assets | ||||||||||||||||
Gross | Accumulated | Net Book | ||||||||||||||
Carrying | Amortization | Value | ||||||||||||||
Amount | and Impairments | |||||||||||||||
(in millions) | ||||||||||||||||
As of October 31, 2012: | ||||||||||||||||
Purchased technology | $ | 849 | $ | 333 | $ | 516 | ||||||||||
Backlog | 14 | 14 | — | |||||||||||||
Trademark/Tradename | 168 | 27 | 141 | |||||||||||||
Customer relationships | 391 | 155 | 236 | |||||||||||||
Total amortizable intangible assets | $ | 1,422 | $ | 529 | $ | 893 | ||||||||||
In-Process R&D | 193 | — | 193 | |||||||||||||
Total | $ | 1,615 | $ | 529 | $ | 1,086 | ||||||||||
As of October 31, 2013: | ||||||||||||||||
Purchased technology | $ | 1,019 | $ | 460 | $ | 559 | ||||||||||
Backlog | 14 | 14 | — | |||||||||||||
Trademark/Tradename | 176 | 40 | 136 | |||||||||||||
Customer relationships | 401 | 215 | 186 | |||||||||||||
Total amortizable intangible assets | $ | 1,610 | $ | 729 | $ | 881 | ||||||||||
In-Process R&D | 35 | — | 35 | |||||||||||||
Total | $ | 1,645 | $ | 729 | $ | 916 | ||||||||||
INVESTMENTS_Tables
INVESTMENTS (Tables) | 12 Months Ended | ||||||||||||||||
Oct. 31, 2013 | |||||||||||||||||
Schedule of Investments [Abstract] | ' | ||||||||||||||||
Equity Investments | ' | ||||||||||||||||
The following table summarizes the company's equity investments as of October 31, 2013 and 2012 (net book value): | |||||||||||||||||
October 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
(in millions) | |||||||||||||||||
Short-Term | |||||||||||||||||
Cost method investments | $ | — | 11 | ||||||||||||||
Long-Term | |||||||||||||||||
Cost method investments | $ | 44 | $ | 59 | |||||||||||||
Trading securities | 51 | 50 | |||||||||||||||
Available-for-sale investments | 25 | — | |||||||||||||||
Equity method investments | 19 | — | |||||||||||||||
Total | $ | 139 | $ | 109 | |||||||||||||
Available-for-sale Securities | ' | ||||||||||||||||
Investments in available-for-sale securities at estimated fair value were as follows as of October 31, 2013: | |||||||||||||||||
31-Oct-13 | |||||||||||||||||
Cost | Gross | Gross | Estimated | ||||||||||||||
Unrealized | Unrealized | Fair | |||||||||||||||
Gains | Losses | Value | |||||||||||||||
(in millions) | |||||||||||||||||
Equity securities | 15 | 10 | — | 25 | |||||||||||||
$ | 15 | $ | 10 | $ | — | $ | 25 | ||||||||||
Realized gains and losses on sale of available-for-sale securities and other than temporary impairments Included in Other income (expense) | ' | ||||||||||||||||
Amounts included in other income (expense), net for realized gains on the sale of available-for-sale securities and the appropriate share of loss on equity method investments were as follows: | |||||||||||||||||
Years Ended October 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
(in millions) | |||||||||||||||||
Available-for-sale investments — realized gain | $ | 1 | $ | 2 | $ | 6 | |||||||||||
Equity method investments - share of losses | (2 | ) | $ | — | $ | — | |||||||||||
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended | |||||||||||||||
Oct. 31, 2013 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Fair Value Assets And Liabilities Measured On Recurring Basis | ' | |||||||||||||||
Financial assets and liabilities measured at fair value on a recurring basis as of October 31, 2013 were as follows: | ||||||||||||||||
Fair Value Measurement at | ||||||||||||||||
October 31, 2013 Using | ||||||||||||||||
October 31, | Quoted Prices | Significant | Significant | |||||||||||||
2013 | in Active | Other | Unobservable | |||||||||||||
Markets for | Observable | Inputs | ||||||||||||||
Identical Assets | Inputs | (Level 3) | ||||||||||||||
(Level 1) | (Level 2) | |||||||||||||||
(in millions) | ||||||||||||||||
Assets: | ||||||||||||||||
Short-term | ||||||||||||||||
Cash equivalents (money market funds) | $ | 1,968 | $ | 1,968 | $ | — | $ | — | ||||||||
Derivative instruments (foreign exchange contracts) | 7 | — | 7 | — | ||||||||||||
Long-term | ||||||||||||||||
Trading securities | 51 | 51 | — | — | ||||||||||||
Available-for-sale investments | 25 | 25 | — | — | ||||||||||||
Total assets measured at fair value | $ | 2,051 | $ | 2,044 | $ | 7 | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Short-term | ||||||||||||||||
Derivative instruments (foreign exchange contracts) | $ | 6 | $ | — | $ | 6 | $ | — | ||||||||
Long-term | ||||||||||||||||
Deferred compensation liability | 51 | — | 51 | — | ||||||||||||
Total liabilities measured at fair value | $ | 57 | $ | — | $ | 57 | $ | — | ||||||||
Financial assets and liabilities measured at fair value on a recurring basis as of October 31, 2012 were as follows: | ||||||||||||||||
Fair Value Measurement at | ||||||||||||||||
October 31, 2012 Using | ||||||||||||||||
October 31, | Quoted Prices | Significant | Significant | |||||||||||||
2012 | in Active | Other | Unobservable | |||||||||||||
Markets for | Observable | Inputs | ||||||||||||||
Identical Assets | Inputs | (Level 3) | ||||||||||||||
(Level 1) | (Level 2) | |||||||||||||||
(in millions) | ||||||||||||||||
Assets: | ||||||||||||||||
Short-term | ||||||||||||||||
Cash equivalents (money market funds) | $ | 1,834 | $ | 1,834 | $ | — | $ | — | ||||||||
Derivative instruments (foreign exchange and interest rate swap contracts) | 7 | — | 7 | — | ||||||||||||
Long-term | ||||||||||||||||
Trading securities | 50 | 50 | — | — | ||||||||||||
Total assets measured at fair value | $ | 1,891 | $ | 1,884 | $ | 7 | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Short-term | ||||||||||||||||
Derivative instruments (foreign exchange contracts) | $ | 6 | $ | — | $ | 6 | $ | — | ||||||||
Long-term | ||||||||||||||||
Deferred compensation liability | 48 | — | 48 | — | ||||||||||||
Total liabilities measured at fair value | $ | 54 | $ | — | $ | 54 | $ | — | ||||||||
Impairment of Long-lived assets included in net income | ' | |||||||||||||||
For assets measured at fair value on a non-recurring basis, the following table summarizes the impairments included in net income for the years ended October 31, 2013 and 2012: | ||||||||||||||||
Years Ended | ||||||||||||||||
October 31, | ||||||||||||||||
2013 | 2012 | |||||||||||||||
(in millions) | ||||||||||||||||
Long-lived assets held and used | $ | 2 | $ | 1 | ||||||||||||
Long-lived assets held for sale | $ | 1 | $ | — | ||||||||||||
DERIVATIVES_Tables
DERIVATIVES (Tables) | 12 Months Ended | ||||||||||||||||||
Oct. 31, 2013 | |||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||
Aggregated notional amounts by currency and designation | ' | ||||||||||||||||||
The aggregated U.S. Dollar notional amounts by currency and designation as of October 31, 2013 were as follows: | |||||||||||||||||||
Derivatives in | Derivatives | ||||||||||||||||||
Cash Flow | Not | ||||||||||||||||||
Hedging Relationships | Designated | ||||||||||||||||||
as Hedging | |||||||||||||||||||
Instruments | |||||||||||||||||||
Forward | Option | Forward | |||||||||||||||||
Contracts | Contracts | Contracts | |||||||||||||||||
Currency | Buy/(Sell) | Buy/(Sell) | Buy/(Sell) | ||||||||||||||||
(in millions) | |||||||||||||||||||
Euro | $ | (23 | ) | $ | — | $ | 243 | ||||||||||||
British Pound | (17 | ) | — | 2 | |||||||||||||||
Canadian Dollar | (37 | ) | — | — | |||||||||||||||
Australian Dollars | 11 | — | 9 | ||||||||||||||||
Malaysian Ringgit | 113 | — | 14 | ||||||||||||||||
Japanese Yen | (56 | ) | (97 | ) | 3 | ||||||||||||||
Other | (9 | ) | — | (10 | ) | ||||||||||||||
$ | (18 | ) | $ | (97 | ) | $ | 261 | ||||||||||||
Gross fair values and balance sheet location of derivative instruments held in the consolidated balance sheet | ' | ||||||||||||||||||
The gross fair values and balance sheet location of derivative instruments held in the consolidated balance sheet as of October 31, 2013 and 2012 were as follows: | |||||||||||||||||||
Fair Values of Derivative Instruments | |||||||||||||||||||
Asset Derivatives | Liability Derivatives | ||||||||||||||||||
Fair Value | Fair Value | ||||||||||||||||||
Balance Sheet Location | October 31, | October 31, | Balance Sheet Location | October 31, | October 31, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||
(in millions) | |||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||
Fair value hedges | |||||||||||||||||||
Interest rate contracts | |||||||||||||||||||
Other current assets | $ | — | $ | — | Other accrued liabilities | $ | — | $ | — | ||||||||||
Other assets | $ | — | $ | — | Other long-term liabilities | $ | — | $ | — | ||||||||||
Cash flow hedges | |||||||||||||||||||
Foreign exchange contracts | |||||||||||||||||||
Other current assets | $ | 4 | $ | 4 | Other accrued liabilities | $ | 4 | $ | 2 | ||||||||||
$ | 4 | $ | 4 | $ | 4 | $ | 2 | ||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||
Foreign exchange contracts | |||||||||||||||||||
Other current assets | $ | 3 | $ | 3 | Other accrued liabilities | $ | 2 | $ | 4 | ||||||||||
Total derivatives | $ | 7 | $ | 7 | $ | 6 | $ | 6 | |||||||||||
Effect of derivative instruments for foreign exchange contracts in the consolidated statement of operations | ' | ||||||||||||||||||
The effect of derivative instruments for interest rate swap contracts and for foreign exchange contracts designated as hedging instruments and not designated as hedging instruments in our consolidated statement of operations were as follows: | |||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||
(in millions) | |||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||
Fair Value Hedges | |||||||||||||||||||
Gain on interest rate swap contracts, including interest accrual, recognized in interest expense | $ | — | $ | — | $ | 27 | |||||||||||||
Gain (loss) on hedged item, recognized in interest expense | $ | — | $ | 3 | $ | (3 | ) | ||||||||||||
Cash Flow Hedges | |||||||||||||||||||
Gain recognized in accumulated other comprehensive income | $ | 10 | $ | 7 | $ | — | |||||||||||||
Gain (loss) reclassified from accumulated other comprehensive income into cost of sales | $ | 13 | $ | 8 | $ | (5 | ) | ||||||||||||
Treasury Lock Agreements | |||||||||||||||||||
Gain recognized in accumulated other comprehensive income | $ | — | $ | 3 | $ | — | |||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||
Gain (loss) recognized in other income (expense), net | $ | 7 | $ | (34 | ) | $ | 13 | ||||||||||||
RESTRUCTURING_Tables
RESTRUCTURING (Tables) | 12 Months Ended | ||||
Oct. 31, 2013 | |||||
Restructuring and Related Activities [Abstract] | ' | ||||
Summary of total restructuring activity | ' | ||||
Workforce | |||||
Reduction | |||||
(in millions) | |||||
Balance as of October 31, 2012 | $ | — | |||
Income statement expense | 53 | ||||
Cash payments | (29 | ) | |||
Balance as of October 31, 2013 | $ | 24 | |||
Restructuring charges reporting location in consolidated statement of operations | ' | ||||
A summary of the charges in the consolidated statement of operations resulting from all restructuring plans is shown below: | |||||
Year Ended | |||||
October 31, | |||||
2013 | |||||
(in millions) | |||||
Cost of products and services | $ | 19 | |||
Research and development | 9 | ||||
Selling, general and administrative | 25 | ||||
Total restructuring, asset impairments and other special charges | $ | 53 | |||
RETIREMENT_PLANS_AND_POST_RETI1
RETIREMENT PLANS AND POST RETIREMENT PENSION PLANS (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||||||
Oct. 31, 2013 | ||||||||||||||||||||||||||||||||||||
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | ' | |||||||||||||||||||||||||||||||||||
Schedule of net pension and post-retirement benefit costs | ' | |||||||||||||||||||||||||||||||||||
October 31, 2013, 2012 and 2011, components of net periodic benefit cost and other amounts recognized in other comprehensive income were comprised of: | ||||||||||||||||||||||||||||||||||||
Pensions | U.S. Post-Retirement Benefit Plans | |||||||||||||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | |||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||
Net periodic benefit cost (benefit) | ||||||||||||||||||||||||||||||||||||
Service cost — benefits earned during the period | $ | 44 | $ | 40 | $ | 42 | $ | 36 | $ | 33 | $ | 32 | $ | 4 | $ | 3 | $ | 3 | ||||||||||||||||||
Interest cost on benefit obligation | 24 | 27 | 28 | 68 | 74 | 72 | 12 | 15 | 21 | |||||||||||||||||||||||||||
Expected return on plan assets | (51 | ) | (46 | ) | (44 | ) | (97 | ) | (92 | ) | (94 | ) | (20 | ) | (19 | ) | (21 | ) | ||||||||||||||||||
Amortization of net actuarial loss | 13 | 7 | 4 | 55 | 42 | 40 | 18 | 16 | 14 | |||||||||||||||||||||||||||
Amortization of prior service benefit | (12 | ) | (12 | ) | (12 | ) | (1 | ) | (1 | ) | (1 | ) | (35 | ) | (35 | ) | (26 | ) | ||||||||||||||||||
Net periodic benefit cost (benefit) | 18 | 16 | 18 | 61 | 56 | 49 | (21 | ) | (20 | ) | (9 | ) | ||||||||||||||||||||||||
Curtailments and settlements | — | — | (1 | ) | — | — | — | — | — | — | ||||||||||||||||||||||||||
Total periodic benefit cost (benefit) | $ | 18 | $ | 16 | $ | 17 | $ | 61 | $ | 56 | $ | 49 | $ | (21 | ) | $ | (20 | ) | $ | (9 | ) | |||||||||||||||
Other changes in plan assets and benefit obligations recognized in other comprehensive (income) loss | ||||||||||||||||||||||||||||||||||||
Net actuarial (gain) loss | $ | (122 | ) | $ | 69 | $ | 31 | $ | (85 | ) | $ | 214 | $ | 40 | $ | (57 | ) | $ | 22 | $ | 12 | |||||||||||||||
Amortization of net actuarial loss | (13 | ) | (7 | ) | (4 | ) | (55 | ) | (42 | ) | (40 | ) | (18 | ) | (16 | ) | (14 | ) | ||||||||||||||||||
Prior service cost (benefit) | — | — | — | — | — | 6 | — | — | (194 | ) | ||||||||||||||||||||||||||
Amortization of prior service benefit | 12 | 12 | 12 | 1 | 1 | 1 | 35 | 35 | 26 | |||||||||||||||||||||||||||
Foreign currency | — | — | — | 2 | (5 | ) | 11 | — | — | — | ||||||||||||||||||||||||||
Total recognized in other comprehensive (income) loss | $ | (123 | ) | $ | 74 | $ | 39 | $ | (137 | ) | $ | 168 | $ | 18 | $ | (40 | ) | $ | 41 | $ | (170 | ) | ||||||||||||||
Total recognized in net periodic benefit cost (benefit) and other comprehensive (income) loss | $ | (105 | ) | $ | 90 | $ | 56 | $ | (76 | ) | $ | 224 | $ | 67 | $ | (61 | ) | $ | 21 | $ | (179 | ) | ||||||||||||||
Change in fair value of plan assets | ' | |||||||||||||||||||||||||||||||||||
Funded status. As of October 31, 2013 and 2012, the funded status of the defined benefit and post-retirement benefit plans was: | ||||||||||||||||||||||||||||||||||||
U.S. Defined | Non-U.S. Defined | U.S. | ||||||||||||||||||||||||||||||||||
Benefit Plans | Benefit Plans | Post-Retirement | ||||||||||||||||||||||||||||||||||
Benefit Plans | ||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2011 | 2013 | 2012 | |||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||
Change in fair value of plan assets: | ||||||||||||||||||||||||||||||||||||
Fair value — beginning of year | $ | 654 | $ | 578 | $ | 1,801 | $ | 1,684 | $ | 261 | $ | 258 | ||||||||||||||||||||||||
Actual return on plan assets | 132 | 65 | 267 | 158 | 47 | 25 | ||||||||||||||||||||||||||||||
Employer contributions | 30 | 30 | 89 | 54 | 1 | — | ||||||||||||||||||||||||||||||
Participants' contributions | — | — | 1 | — | — | — | ||||||||||||||||||||||||||||||
Benefits paid | (34 | ) | (19 | ) | (49 | ) | (46 | ) | (21 | ) | (22 | ) | ||||||||||||||||||||||||
Currency impact | — | — | (64 | ) | (49 | ) | — | — | ||||||||||||||||||||||||||||
Fair value — end of year | $ | 782 | $ | 654 | $ | 2,045 | $ | 1,801 | $ | 288 | $ | 261 | ||||||||||||||||||||||||
Change in benefit obligation | ' | |||||||||||||||||||||||||||||||||||
U.S. Defined | Non-U.S. Defined | U.S. | ||||||||||||||||||||||||||||||||||
Benefit Plans | Benefit Plans | Post-Retirement | ||||||||||||||||||||||||||||||||||
Benefit Plans | ||||||||||||||||||||||||||||||||||||
2012 | 2011 | 2012 | 2011 | 2012 | 2011 | |||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||
Change in benefit obligation: | ||||||||||||||||||||||||||||||||||||
Benefit obligation — beginning of year | $ | 771 | $ | 637 | $ | 2,117 | $ | 1,830 | $ | 343 | $ | 319 | ||||||||||||||||||||||||
Service cost | 44 | 40 | 36 | 33 | 4 | 3 | ||||||||||||||||||||||||||||||
Interest cost | 24 | 27 | 68 | 74 | 12 | 15 | ||||||||||||||||||||||||||||||
Participants' contributions | — | — | 1 | — | — | — | ||||||||||||||||||||||||||||||
Plan amendment | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Actuarial (gain) loss | (41 | ) | 87 | 85 | 280 | (31 | ) | 28 | ||||||||||||||||||||||||||||
Benefits paid | (35 | ) | (20 | ) | (49 | ) | (46 | ) | (21 | ) | (22 | ) | ||||||||||||||||||||||||
Curtailments | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Currency impact | — | — | (59 | ) | (54 | ) | — | — | ||||||||||||||||||||||||||||
Benefit obligation — end of year | $ | 763 | $ | 771 | $ | 2,199 | $ | 2,117 | $ | 307 | $ | 343 | ||||||||||||||||||||||||
Overfunded (underfunded) status of PBO | $ | 19 | $ | (117 | ) | $ | (154 | ) | $ | (316 | ) | $ | (19 | ) | $ | (82 | ) | |||||||||||||||||||
Amounts recognized in the consolidated balance sheet | ' | |||||||||||||||||||||||||||||||||||
U.S. Defined | Non-U.S. Defined | U.S. | ||||||||||||||||||||||||||||||||||
Benefit Plans | Benefit Plans | Post-Retirement | ||||||||||||||||||||||||||||||||||
Benefit Plans | ||||||||||||||||||||||||||||||||||||
2012 | 2011 | 2012 | 2011 | 2012 | 2011 | |||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||
Amounts recognized in the consolidated balance sheet consist of: | ||||||||||||||||||||||||||||||||||||
Other assets | $ | 34 | $ | — | $ | 60 | $ | — | $ | — | $ | — | ||||||||||||||||||||||||
Employee compensation and benefits | (2 | ) | (2 | ) | — | — | — | — | ||||||||||||||||||||||||||||
Retirement and post-retirement benefits | (13 | ) | (115 | ) | (214 | ) | (316 | ) | (19 | ) | (82 | ) | ||||||||||||||||||||||||
Net asset (liability) | $ | 19 | $ | (117 | ) | $ | (154 | ) | $ | (316 | ) | $ | (19 | ) | $ | (82 | ) | |||||||||||||||||||
Amounts recognized in accumulated other comprehensive income (loss) | ' | |||||||||||||||||||||||||||||||||||
U.S. Defined | Non-U.S. Defined | U.S. | ||||||||||||||||||||||||||||||||||
Benefit Plans | Benefit Plans | Post-Retirement | ||||||||||||||||||||||||||||||||||
Benefit Plans | ||||||||||||||||||||||||||||||||||||
2012 | 2011 | 2012 | 2011 | 2012 | 2011 | |||||||||||||||||||||||||||||||
Amounts Recognized in Accumulated Other Comprehensive Income (loss): | ||||||||||||||||||||||||||||||||||||
Actuarial (gains) losses | $ | (8 | ) | $ | 127 | $ | 525 | $ | 683 | $ | 119 | $ | 194 | |||||||||||||||||||||||
Prior service costs (benefits) | (67 | ) | (79 | ) | (4 | ) | (8 | ) | (183 | ) | (218 | ) | ||||||||||||||||||||||||
Total | $ | (75 | ) | $ | 48 | $ | 521 | $ | 675 | $ | (64 | ) | $ | (24 | ) | |||||||||||||||||||||
Amounts in accumulated other comprehensive income expected to be recognized as components of net expense during the next fiscal year | ' | |||||||||||||||||||||||||||||||||||
The amounts in accumulated other comprehensive income expected to be recognized as components of net expense during 2014 are as follows: | ||||||||||||||||||||||||||||||||||||
U.S. Defined | Non-U.S. Defined | U.S. Post-Retirement | ||||||||||||||||||||||||||||||||||
Benefit Plans | Benefit Plans | Benefit Plans | ||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||
Amortization of net prior service cost (benefit) | $ | (12 | ) | $ | (1 | ) | $ | (35 | ) | |||||||||||||||||||||||||||
Amortization of actuarial net loss (gain) | $ | (1 | ) | $ | 45 | $ | 14 | |||||||||||||||||||||||||||||
Defined benefit plan assets by fair value hierarchy | ' | |||||||||||||||||||||||||||||||||||
The following tables present the fair value of U.S. Defined Benefit Plans assets classified under the appropriate level of the fair value hierarchy as of October 31, 2013 and 2012. | ||||||||||||||||||||||||||||||||||||
: | ||||||||||||||||||||||||||||||||||||
Fair Value Measurement at | ||||||||||||||||||||||||||||||||||||
October 31, 2013 Using | ||||||||||||||||||||||||||||||||||||
October 31, | Quoted Prices | Significant | Significant | |||||||||||||||||||||||||||||||||
2013 | in Active | Other | Unobservable | |||||||||||||||||||||||||||||||||
Markets for | Observable | Inputs | ||||||||||||||||||||||||||||||||||
Identical Assets | Inputs | (Level 3) | ||||||||||||||||||||||||||||||||||
(Level 1) | (Level 2) | |||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||
Cash and Cash Equivalents | $ | 8 | $ | 1 | $ | 7 | $ | — | ||||||||||||||||||||||||||||
Equity | 616 | 191 | 425 | — | ||||||||||||||||||||||||||||||||
Fixed Income | 139 | 17 | 122 | — | ||||||||||||||||||||||||||||||||
Other Investments | 19 | 2 | — | 17 | ||||||||||||||||||||||||||||||||
Total assets measured at fair value | $ | 782 | $ | 211 | $ | 554 | $ | 17 | ||||||||||||||||||||||||||||
Fair Value Measurement | ||||||||||||||||||||||||||||||||||||
at October 31, 2012 Using | ||||||||||||||||||||||||||||||||||||
October 31, | Quoted Prices | Significant | Significant | |||||||||||||||||||||||||||||||||
2012 | in Active | Other | Unobservable | |||||||||||||||||||||||||||||||||
Markets for | Observable | Inputs | ||||||||||||||||||||||||||||||||||
Identical Assets | Inputs | (Level 3) | ||||||||||||||||||||||||||||||||||
(Level 1) | (Level 2) | |||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||
Cash and Cash Equivalents | $ | 8 | $ | 1 | $ | 7 | $ | — | ||||||||||||||||||||||||||||
Equity | 486 | 134 | 352 | — | ||||||||||||||||||||||||||||||||
Fixed Income | 137 | 15 | 122 | — | ||||||||||||||||||||||||||||||||
Other Investments | 23 | 2 | — | 21 | ||||||||||||||||||||||||||||||||
Total assets measured at fair value | $ | 654 | $ | 152 | $ | 481 | $ | 21 | ||||||||||||||||||||||||||||
The following tables present the fair value of U.S. Post-Retirement Benefit Plans assets classified under the appropriate level of the fair value hierarchy as of October 31, 2013 and 2012. | ||||||||||||||||||||||||||||||||||||
. | ||||||||||||||||||||||||||||||||||||
Fair Value Measurement at | ||||||||||||||||||||||||||||||||||||
October 31, 2013 Using | ||||||||||||||||||||||||||||||||||||
October 31, | Quoted Prices | Significant | Significant | |||||||||||||||||||||||||||||||||
2013 | in Active | Other | Unobservable | |||||||||||||||||||||||||||||||||
Markets for | Observable | Inputs | ||||||||||||||||||||||||||||||||||
Identical Assets | Inputs | (Level 3) | ||||||||||||||||||||||||||||||||||
(Level 1) | (Level 2) | |||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||
Cash and Cash Equivalents | $ | 5 | $ | 2 | $ | 3 | $ | — | ||||||||||||||||||||||||||||
Equity | 220 | 68 | 152 | — | ||||||||||||||||||||||||||||||||
Fixed Income | 52 | 6 | 46 | — | ||||||||||||||||||||||||||||||||
Other Investments | 11 | 1 | — | 10 | ||||||||||||||||||||||||||||||||
Total assets measured at fair value | $ | 288 | $ | 77 | $ | 201 | $ | 10 | ||||||||||||||||||||||||||||
Fair Value Measurement | ||||||||||||||||||||||||||||||||||||
at October 31, 2012 Using | ||||||||||||||||||||||||||||||||||||
October 31, | Quoted Prices | Significant | Significant | |||||||||||||||||||||||||||||||||
2012 | in Active | Other | Unobservable | |||||||||||||||||||||||||||||||||
Markets for | Observable | Inputs | ||||||||||||||||||||||||||||||||||
Identical Assets | Inputs | (Level 3) | ||||||||||||||||||||||||||||||||||
(Level 1) | (Level 2) | |||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||
Cash and Cash Equivalents | $ | 5 | $ | 2 | $ | 3 | $ | — | ||||||||||||||||||||||||||||
Equity | 189 | 52 | 137 | — | ||||||||||||||||||||||||||||||||
Fixed Income | 54 | 6 | 48 | — | ||||||||||||||||||||||||||||||||
Other Investments | 13 | 1 | — | 12 | ||||||||||||||||||||||||||||||||
Total assets measured at fair value | $ | 261 | $ | 61 | $ | 188 | $ | 12 | ||||||||||||||||||||||||||||
The following tables present the fair value of non-U.S. Defined Benefit Plans assets classified under the appropriate level of the fair value hierarchy as of October 31, 2013 and 2012: | ||||||||||||||||||||||||||||||||||||
Fair Value Measurement at | ||||||||||||||||||||||||||||||||||||
October 31, 2013 Using | ||||||||||||||||||||||||||||||||||||
October 31, | Quoted Prices | Significant | Significant | |||||||||||||||||||||||||||||||||
2013 | in Active | Other | Unobservable | |||||||||||||||||||||||||||||||||
Markets for | Observable | Inputs | ||||||||||||||||||||||||||||||||||
Identical Assets | Inputs | (Level 3) | ||||||||||||||||||||||||||||||||||
(Level 1) | (Level 2) | |||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||
Cash and Cash Equivalents | $ | 10 | $ | 10 | $ | — | $ | — | ||||||||||||||||||||||||||||
Equity | 1,078 | 296 | 782 | — | ||||||||||||||||||||||||||||||||
Fixed Income | 919 | 24 | 895 | — | ||||||||||||||||||||||||||||||||
Other Investments | 38 | — | 38 | — | ||||||||||||||||||||||||||||||||
Total assets measured at fair value | $ | 2,045 | $ | 330 | $ | 1,715 | $ | — | ||||||||||||||||||||||||||||
Fair Value Measurement | ||||||||||||||||||||||||||||||||||||
at October 31, 2012 Using | ||||||||||||||||||||||||||||||||||||
October 31, | Quoted Prices | Significant | Significant | |||||||||||||||||||||||||||||||||
2012 | in Active | Other | Unobservable | |||||||||||||||||||||||||||||||||
Markets for | Observable | Inputs | ||||||||||||||||||||||||||||||||||
Identical Assets | Inputs | (Level 3) | ||||||||||||||||||||||||||||||||||
(Level 1) | (Level 2) | |||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||
Cash and Cash Equivalents | $ | 3 | $ | 3 | $ | — | $ | — | ||||||||||||||||||||||||||||
Equity | 861 | 226 | 635 | — | ||||||||||||||||||||||||||||||||
Fixed Income | 900 | 19 | 881 | — | ||||||||||||||||||||||||||||||||
Other Investments | 37 | — | 37 | — | ||||||||||||||||||||||||||||||||
Total assets measured at fair value | $ | 1,801 | $ | 248 | $ | 1,553 | $ | — | ||||||||||||||||||||||||||||
Defined benefit plans assets measured at fair value using significant unobservable inputs (level 3) | ' | |||||||||||||||||||||||||||||||||||
For U.S. Defined Benefit Plans assets measured at fair value using significant unobservable inputs (level 3), the following table summarizes the change in balances during 2013 and 2012: | ||||||||||||||||||||||||||||||||||||
Years Ended | ||||||||||||||||||||||||||||||||||||
October 31. | ||||||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||||||
Balance, beginning of year | $ | 21 | $ | 26 | ||||||||||||||||||||||||||||||||
Realized gains | 4 | 3 | ||||||||||||||||||||||||||||||||||
Unrealized gains/(losses) | (2 | ) | (2 | ) | ||||||||||||||||||||||||||||||||
Purchases, sales, issuances, and settlements | (6 | ) | (6 | ) | ||||||||||||||||||||||||||||||||
Transfers in (out) | — | — | ||||||||||||||||||||||||||||||||||
Balance, end of year | $ | 17 | $ | 21 | ||||||||||||||||||||||||||||||||
For U.S. Post-Retirement Benefit Plans assets measured at fair value using significant unobservable inputs (level 3), the following table summarizes the change in balances during 2013 and 2012: | ||||||||||||||||||||||||||||||||||||
Years Ended | ||||||||||||||||||||||||||||||||||||
October 31, | ||||||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||||||
Balance, beginning of year | $ | 12 | $ | 15 | ||||||||||||||||||||||||||||||||
Realized gains | 2 | 2 | ||||||||||||||||||||||||||||||||||
Unrealized gains/(losses) | (1 | ) | (1 | ) | ||||||||||||||||||||||||||||||||
Purchases, sales, issuances, and settlements | (3 | ) | (4 | ) | ||||||||||||||||||||||||||||||||
Transfers in (out) | — | — | ||||||||||||||||||||||||||||||||||
Balance, end of year | $ | 10 | $ | 12 | ||||||||||||||||||||||||||||||||
Combined projected benefit obligation, accumulated benefit obligations and fair value of plan assets | ' | |||||||||||||||||||||||||||||||||||
The table below presents the combined projected benefit obligation ("PBO"), accumulated benefit obligation ("ABO") and fair value of plan assets, grouping plans using comparisons of the PBO and ABO relative to the plan assets as of October 31, 2013 or 2012. | ||||||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||||||
Benefit | Benefit | |||||||||||||||||||||||||||||||||||
Obligation | Fair Value of | Obligation | Fair Value of | |||||||||||||||||||||||||||||||||
PBO | Plan Assets | PBO | Plan Assets | |||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||
U.S. defined benefit plans where PBO exceeds the fair value of plan assets | $ | 15 | $ | — | $ | 771 | $ | 654 | ||||||||||||||||||||||||||||
U.S. defined benefit plans where fair value of plan assets exceeds PBO | 748 | 782 | — | — | ||||||||||||||||||||||||||||||||
Total | $ | 763 | $ | 782 | $ | 771 | $ | 654 | ||||||||||||||||||||||||||||
Non-U.S. defined benefit plans where PBO exceeds or is equal to the fair value of plan assets | $ | 1,697 | $ | 1,482 | $ | 2,117 | $ | 1,801 | ||||||||||||||||||||||||||||
Non-U.S. defined benefit plans where fair value of plan assets exceeds PBO | 502 | 563 | — | — | ||||||||||||||||||||||||||||||||
Total | $ | 2,199 | $ | 2,045 | $ | 2,117 | $ | 1,801 | ||||||||||||||||||||||||||||
ABO | ABO | |||||||||||||||||||||||||||||||||||
U.S. defined benefit plans where ABO exceeds the fair value of plan assets | $ | 14 | $ | — | $ | 749 | $ | 654 | ||||||||||||||||||||||||||||
U.S. defined benefit plans where the fair value of plan assets exceeds ABO | 716 | 782 | — | — | ||||||||||||||||||||||||||||||||
Total | $ | 730 | $ | 782 | $ | 749 | $ | 654 | ||||||||||||||||||||||||||||
Non-U.S. defined benefit plans where ABO exceeds or is equal to the fair value of plan assets | $ | 1,533 | $ | 1,380 | $ | 2,034 | $ | 1,801 | ||||||||||||||||||||||||||||
Non-U.S. defined benefit plans where fair value of plan assets exceeds ABO | 590 | 665 | — | — | ||||||||||||||||||||||||||||||||
Total | $ | 2,123 | $ | 2,045 | $ | 2,034 | $ | 1,801 | ||||||||||||||||||||||||||||
Schedule of expected benefit payments | ' | |||||||||||||||||||||||||||||||||||
The following table presents expected future benefit payments for the next 10 years. | ||||||||||||||||||||||||||||||||||||
U.S. Defined | Non-U.S. Defined | U.S. Post-Retirement | ||||||||||||||||||||||||||||||||||
Benefit Plans | Benefit Plans | Benefit Plans | ||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||
2014 | $ | 41 | $ | 51 | $ | 24 | ||||||||||||||||||||||||||||||
2015 | $ | 44 | $ | 56 | $ | 24 | ||||||||||||||||||||||||||||||
2016 | $ | 49 | $ | 60 | $ | 25 | ||||||||||||||||||||||||||||||
2017 | $ | 56 | $ | 62 | $ | 24 | ||||||||||||||||||||||||||||||
2018 | $ | 57 | $ | 70 | $ | 24 | ||||||||||||||||||||||||||||||
2019 - 2023 | $ | 362 | $ | 448 | $ | 116 | ||||||||||||||||||||||||||||||
Assumptions used to calculate the net periodic cost and benefit obligation | ' | |||||||||||||||||||||||||||||||||||
Assumptions used to calculate the net periodic cost in each year were as follows: | ||||||||||||||||||||||||||||||||||||
For years ended October 31, | ||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||||||
U.S. defined benefit plans: | ||||||||||||||||||||||||||||||||||||
Discount rate | 3.25% | 4.50% | 5.00% | |||||||||||||||||||||||||||||||||
Average increase in compensation levels | 3.50% | 3.50% | 3.50% | |||||||||||||||||||||||||||||||||
Expected long-term return on assets | 8.00% | 8.00% | 8.25% | |||||||||||||||||||||||||||||||||
Non-U.S. defined benefit plans: | ||||||||||||||||||||||||||||||||||||
Discount rate | 1.50-4.50% | 2.00-5.50% | 2.00-5.25% | |||||||||||||||||||||||||||||||||
Average increase in compensation levels | 2.50-3.00% | 2.50-3.25% | 2.50-3.75% | |||||||||||||||||||||||||||||||||
Expected long-term return on assets | 4.00-6.50% | 4.00-6.50% | 4.00-6.75% | |||||||||||||||||||||||||||||||||
U.S. post-retirement benefits plans: | ||||||||||||||||||||||||||||||||||||
Discount rate | 3.50% | 4.75% | 5.50% | |||||||||||||||||||||||||||||||||
Expected long-term return on assets | 8.00% | 8.00% | 8.25% | |||||||||||||||||||||||||||||||||
Current medical cost trend rate | 9.00% | 9.00% | 10.00% | |||||||||||||||||||||||||||||||||
Ultimate medical cost trend rate | 3.50% | 4.50% | 4.75% | |||||||||||||||||||||||||||||||||
Medical cost trend rate decreases to ultimate rate in year | 2027 | 2026 | 2025 | |||||||||||||||||||||||||||||||||
Assumptions used to calculate the benefit obligation were as follows: | ||||||||||||||||||||||||||||||||||||
As of the Years Ending October 31, | ||||||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||||||
U.S. defined benefit plans: | ||||||||||||||||||||||||||||||||||||
Discount rate | 4.50% | 3.25% | ||||||||||||||||||||||||||||||||||
Average increase in compensation levels | 3.50% | 3.50% | ||||||||||||||||||||||||||||||||||
Non-U.S. defined benefit plans: | ||||||||||||||||||||||||||||||||||||
Discount rate | 1.75-4.25% | 1.50-4.50% | ||||||||||||||||||||||||||||||||||
Average increase in compensation levels | 2.50-3.25% | 2.50-3.00% | ||||||||||||||||||||||||||||||||||
U.S. post-retirement benefits plans: | ||||||||||||||||||||||||||||||||||||
Discount rate | 4.25% | 3.50% | ||||||||||||||||||||||||||||||||||
Current medical cost trend rate | 9.00% | 9.00% | ||||||||||||||||||||||||||||||||||
Ultimate medical cost trend rate | 3.50% | 3.50% | ||||||||||||||||||||||||||||||||||
Medical cost trend rate decreases to ultimate rate in year | 2028 | 2027 |
GUARANTEES_Tables
GUARANTEES (Tables) | 12 Months Ended | |||||||
Oct. 31, 2013 | ||||||||
Guarantees [Abstract] | ' | |||||||
Standard Warranty | ' | |||||||
A summary of the standard warranty accrual activity is shown in the table below. The standard warranty accrual balances are held in other accrued and other long-term liabilities. | ||||||||
October 31, | ||||||||
2013 | 2012 | |||||||
(in millions) | ||||||||
Balance as of October 31, 2012 and 2011 | $ | 60 | $ | 50 | ||||
Reserve acquired upon close of Dako acquisition | — | 1 | ||||||
Accruals for warranties including change in estimates | 92 | 87 | ||||||
Settlements made during the period | (83 | ) | (78 | ) | ||||
Balance as of October 31, 2013 and 2012 | $ | 69 | $ | 60 | ||||
Schedule of Product Warranty Liability classification [Table Text Block] | ' | |||||||
Accruals for warranties due within one year | 48 | 51 | ||||||
Accruals for warranties due after one year | 21 | 9 | ||||||
Balance as of October 31, 2013 and 2012 | $ | 69 | $ | 60 | ||||
LONGTERM_DEBT_Tables
LONG-TERM DEBT (Tables) | 12 Months Ended | |||||||||||||||||||||||
Oct. 31, 2013 | ||||||||||||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||||||||||||
Schedule of Interest Rate Swaps pertaining to Senior Notes offered | ' | |||||||||||||||||||||||
The following table summarizes the company's long-term senior notes and the related interest rate swaps: | ||||||||||||||||||||||||
October 31, 2013 | October 31, 2012 | |||||||||||||||||||||||
Amortized | Swap | Total | Amortized | Swap | Total | |||||||||||||||||||
Principal | Principal | |||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
2015 Senior Notes | 500 | 12 | 512 | 499 | 18 | 517 | ||||||||||||||||||
2017 Senior Notes | 599 | 22 | 621 | 599 | 26 | 625 | ||||||||||||||||||
2020 Senior Notes | 498 | 26 | 524 | 498 | 29 | 527 | ||||||||||||||||||
2022 Senior Notes | 399 | — | 399 | 399 | — | 399 | ||||||||||||||||||
2023 Senior Notes | 597 | — | 597 | — | — | — | ||||||||||||||||||
Total | $ | 2,593 | $ | 60 | $ | 2,653 | $ | 1,995 | $ | 73 | $ | 2,068 | ||||||||||||
STOCKHOLDERS_EQUITY_Tables
STOCKHOLDERS' EQUITY (Tables) | 12 Months Ended | |||||||
Oct. 31, 2013 | ||||||||
Stockholders' Equity Note [Abstract] | ' | |||||||
Accumulated other comprehensive income | ' | |||||||
The following table summarizes the components of our accumulated other comprehensive income as of October 31, 2013 and 2012, net of tax effect: | ||||||||
October 31, | ||||||||
2013 | 2012 | |||||||
(in millions) | ||||||||
Unrealized gain on equity securities, net of $2 of tax expense for 2013 | $ | 7 | $ | — | ||||
Foreign currency translation, net of $102 of tax expense for 2013 and 2012 | 425 | 424 | ||||||
Unrealized losses on defined benefit plans, net of tax benefit of $(64) and $(162) for 2013 and 2012, respectively | (341 | ) | (537 | ) | ||||
Unrealized gains (losses) on derivative instruments, net of tax expense of $2 and $3 for 2013 and 2012, respectively | — | 2 | ||||||
Total accumulated other comprehensive income (loss) | $ | 91 | $ | (111 | ) | |||
SEGMENT_INFORMATION_Tables
SEGMENT INFORMATION (Tables) | 12 Months Ended | |||||||||||||||||||
Oct. 31, 2013 | ||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||
Segment profitability | ' | |||||||||||||||||||
The profitability of each of the segments is measured after excluding restructuring and asset impairment charges, investment gains and losses, interest income, interest expense, acquisition and integration costs, one-time and pre-separation costs, non-cash amortization and other items as noted in the reconciliations below. | ||||||||||||||||||||
Life Sciences and Diagnostics | Chemical | Electronic | Total | |||||||||||||||||
Analysis | Measurement | Segments | ||||||||||||||||||
(in millions) | ||||||||||||||||||||
Year ended October 31, 2013: | ||||||||||||||||||||
Total net revenue | $ | 2,300 | $ | 1,594 | $ | 2,888 | $ | 6,782 | ||||||||||||
Income from operations | $ | 377 | $ | 355 | $ | 544 | $ | 1,276 | ||||||||||||
Depreciation expense | $ | 71 | $ | 27 | $ | 83 | $ | 181 | ||||||||||||
Share-based compensation expense | $ | 26 | $ | 21 | $ | 38 | $ | 85 | ||||||||||||
Year ended October 31, 2012: | ||||||||||||||||||||
Total net revenue | $ | 1,984 | $ | 1,559 | $ | 3,315 | $ | 6,858 | ||||||||||||
Income from operations | $ | 295 | $ | 338 | $ | 751 | $ | 1,384 | ||||||||||||
Depreciation expense | $ | 57 | $ | 31 | $ | 83 | $ | 171 | ||||||||||||
Share-based compensation expense | $ | 21 | $ | 18 | $ | 37 | $ | 76 | ||||||||||||
Year ended October 31, 2011: | ||||||||||||||||||||
Total segment revenue | $ | 1,792 | $ | 1,518 | $ | 3,316 | $ | 6,626 | ||||||||||||
Varian acquisition deferred revenue fair value adjustment | $ | (4 | ) | $ | (7 | ) | — | $ | (11 | ) | ||||||||||
Total net revenue | $ | 1,788 | $ | 1,511 | $ | 3,316 | $ | 6,615 | ||||||||||||
Income from operations | $ | 237 | $ | 313 | $ | 760 | $ | 1,310 | ||||||||||||
Depreciation expense | $ | 39 | $ | 28 | $ | 75 | $ | 142 | ||||||||||||
Share-based compensation expense | $ | 20 | $ | 17 | $ | 36 | $ | 73 | ||||||||||||
Reconciliation of segment results to total enterprise results | ' | |||||||||||||||||||
The following table reconciles reportable segments' income from operations to Agilent's total enterprise income before taxes: | ||||||||||||||||||||
Years Ended October 31, | ||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||
(in millions) | ||||||||||||||||||||
Total reportable segments' income from operations | $ | 1,276 | $ | 1,384 | $ | 1,310 | ||||||||||||||
Restructuring related costs | (53 | ) | — | (2 | ) | |||||||||||||||
Acceleration of depreciation for held and used assets | — | (15 | ) | — | ||||||||||||||||
Asset Impairments | (3 | ) | (1 | ) | (9 | ) | ||||||||||||||
Transformational programs | (19 | ) | (25 | ) | (51 | ) | ||||||||||||||
Amortization of intangibles | (199 | ) | (136 | ) | (113 | ) | ||||||||||||||
Acquisition and integration costs | (29 | ) | (74 | ) | (54 | ) | ||||||||||||||
Acceleration of share-based compensation expense related to workforce reduction | (3 | ) | — | — | ||||||||||||||||
One-time and pre-separation costs | (5 | ) | — | — | ||||||||||||||||
Varian acquisition related fair value adjustments | — | — | (9 | ) | ||||||||||||||||
Other | (14 | ) | (14 | ) | (1 | ) | ||||||||||||||
Interest Income | 7 | 9 | 14 | |||||||||||||||||
Interest Expense | (107 | ) | (101 | ) | (86 | ) | ||||||||||||||
Other income (expense), net | 8 | 16 | 33 | |||||||||||||||||
Income before taxes, as reported | $ | 859 | $ | 1,043 | $ | 1,032 | ||||||||||||||
Assets and capital expenditures directly managed by each segment | ' | |||||||||||||||||||
The following table presents assets and capital expenditures directly managed by each segment. Unallocated assets primarily consist of cash, cash equivalents, accumulated amortization of other intangibles and other assets. | ||||||||||||||||||||
Life Sciences and Diagnostics | Chemical | Electronic | Total | |||||||||||||||||
Analysis | Measurement | Segments | ||||||||||||||||||
(in millions) | ||||||||||||||||||||
As of October 31, 2013: | ||||||||||||||||||||
Assets | $ | 4,291 | $ | 1,756 | $ | 1,997 | $ | 8,044 | ||||||||||||
Capital expenditures | $ | 77 | $ | 30 | $ | 88 | $ | 195 | ||||||||||||
As of October 31, 2012: | ||||||||||||||||||||
Assets | $ | 4,072 | $ | 1,768 | $ | 2,157 | $ | 7,997 | ||||||||||||
Capital expenditures | $ | 56 | $ | 32 | $ | 106 | $ | 194 | ||||||||||||
The following table reconciles segment assets to Agilent's total assets: | ||||||||||||||||||||
October 31, | ||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
(in millions) | ||||||||||||||||||||
Total reportable segments' assets | $ | 8,044 | $ | 7,997 | ||||||||||||||||
Cash, cash equivalents and short-term investments | 2,675 | 2,351 | ||||||||||||||||||
Prepaid expenses | 198 | 128 | ||||||||||||||||||
Investments | 139 | 109 | ||||||||||||||||||
Long-term and other receivables | 162 | 161 | ||||||||||||||||||
Other | (532 | ) | (210 | ) | ||||||||||||||||
Total assets | $ | 10,686 | $ | 10,536 | ||||||||||||||||
Revenue and assets by geographic areas | ' | |||||||||||||||||||
The following table presents summarized information for net revenue and long-lived assets by geographic region. Revenues from external customers are generally attributed to countries based upon the location of the Agilent sales representative. Long lived assets consist of property, plant, and equipment, long-term receivables and other long-term assets excluding intangible assets. The rest of the world primarily consists of rest of Asia and Europe. | ||||||||||||||||||||
United | China | Japan | Rest of the | Total | ||||||||||||||||
States | World | |||||||||||||||||||
(in millions) | ||||||||||||||||||||
Net revenue: | ||||||||||||||||||||
Year ended October 31, 2013 | $ | 2,043 | $ | 1,131 | $ | 628 | $ | 2,980 | $ | 6,782 | ||||||||||
Year ended October 31, 2012 | $ | 2,218 | $ | 1,078 | $ | 716 | $ | 2,846 | $ | 6,858 | ||||||||||
Year ended October 31, 2011 | $ | 2,016 | $ | 1,035 | $ | 700 | $ | 2,864 | $ | 6,615 | ||||||||||
United | Japan | Rest of the | Total | |||||||||||||||||
States | World | |||||||||||||||||||
(in millions) | ||||||||||||||||||||
Long-lived assets: | ||||||||||||||||||||
October 31, 2013 | $ | 601 | $ | 130 | $ | 715 | $ | 1,446 | ||||||||||||
31-Oct-12 | $ | 550 | $ | 167 | $ | 645 | $ | 1,362 | ||||||||||||
OVERVIEW_AND_SUMMARY_OF_SIGNIF2
OVERVIEW AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | Jun. 21, 2012 | 16-May-12 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2013 |
Y | Dako [Member] | Dako [Member] | Dako [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | |||
segment | Y | Machinery and Equipment [Member] | Software Development [Member] | Y | Machinery and Equipment [Member] | Software Development [Member] | ||||||
Accounting Policies [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based compensation | $88 | $76 | $73 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Advertising costs expensed as incurred | 44 | 50 | 55 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash and cash equivalents held outside the U.S. | 2,552 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum percentage of accounts receivable a single customer accounts for | 'less than 10 percent | 'less than 10 percent | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Employee compensation and benefits accrued | 158 | 156 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Hedging contracts general maturity | '12 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business acquisition completion date | ' | ' | ' | 21-Jun-12 | ' | ' | ' | ' | ' | ' | ' | ' |
Business acquisition agreement date | ' | ' | ' | ' | 16-May-12 | ' | ' | ' | ' | ' | ' | ' |
Total purchase price | ' | ' | ' | 2,143 | ' | ' | ' | ' | ' | ' | ' | ' |
Cash Paid, Directly to Seller | ' | ' | ' | 1,400 | ' | ' | ' | ' | ' | ' | ' | ' |
Cash Paid, Settlement of Debt | ' | ' | ' | 743 | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign currency translation net gain (Ioss) | -6 | -19 | -1 | ' | ' | -14 | ' | ' | ' | ' | ' | ' |
Long -Lived Assets [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating Lease Term Range Minimum | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' |
Operating Lease Term Range Maximum | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20 | ' | ' |
Lease renewal options | 6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property, Plant and Equipment, Useful Life | ' | ' | ' | ' | ' | ' | ' | '3 years | '3 years | ' | '10 years | '5 years |
Financing Receivable, Net | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
operating lease net assets | 35 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Finite Lived Intangible Assets Useful Life | ' | ' | ' | ' | ' | ' | '6 months | ' | ' | '15 years | ' | ' |
Number of operating segments | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill, Impairment Loss | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impairment of Intangible Assets, Finite-lived | 1 | 1 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair Value Disclosures [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of our long-term debt exceeeds the carrying value | $112 | $210 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
ACQUISITIONS_Acquisition_of_Da
ACQUISITIONS Acquisition of Dako (Details) (USD $) | 12 Months Ended | 0 Months Ended | 4 Months Ended | 12 Months Ended | |||||
In Millions, except Per Share data, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | Jun. 21, 2012 | 16-May-12 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Jun. 21, 2012 |
Dako [Member] | Dako [Member] | Dako [Member] | Dako [Member] | Dako [Member] | Foreign Exchange Contracts [Member] | ||||
Not Designated as Hedging Instrument [Member] | |||||||||
Dako [Member] | |||||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business acquisition completion date | ' | ' | ' | 21-Jun-12 | ' | ' | ' | ' | ' |
Business acquisition agreement date | ' | ' | ' | ' | 16-May-12 | ' | ' | ' | ' |
Net Revenue of Dako since Acquisition Date | ' | ' | ' | ' | ' | $126 | ' | ' | ' |
Net Loss of Dako since Acquisition Date | ' | ' | ' | ' | ' | 37 | ' | ' | ' |
Total purchase price | ' | ' | ' | 2,143 | ' | ' | ' | ' | ' |
Cash Paid, Directly to Seller | ' | ' | ' | 1,400 | ' | ' | ' | ' | ' |
Cash Paid, Settlement of Debt | ' | ' | ' | 743 | ' | ' | ' | ' | ' |
Notional Amount of Foreign Currency Derivative Instruments Not Designated as Hedging Instruments | ' | ' | ' | ' | ' | ' | ' | ' | 1,700 |
Loss on settlement recorded in other income (expense) | 14 | ' | ' | ' | ' | ' | 14 | ' | ' |
Deferred tax liability for future amortization of intangibles | ' | ' | ' | 185 | ' | ' | ' | ' | ' |
Estimated cost to complete in process research and development | ' | ' | ' | 49 | ' | ' | ' | ' | ' |
Total Purchase Price | ' | ' | ' | ' | ' | ' | 15 | 15 | ' |
Purchase Price Allocations [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash and cash equivalents | ' | ' | ' | 11 | ' | ' | ' | ' | ' |
Accounts receivable | ' | ' | ' | 96 | ' | ' | ' | ' | ' |
Inventories | ' | ' | ' | 90 | ' | ' | ' | ' | ' |
Other current assets | ' | ' | ' | 5 | ' | ' | ' | ' | ' |
Property, plant and equipment | ' | ' | ' | 146 | ' | ' | ' | ' | ' |
Long term investments | ' | ' | ' | 11 | ' | ' | ' | ' | ' |
Intangible Assets | ' | ' | ' | 738 | ' | ' | ' | ' | ' |
Other assets | ' | ' | ' | 13 | ' | ' | ' | ' | ' |
Goodwill | 3,047 | 3,025 | 1,567 | 1,382 | ' | ' | ' | ' | ' |
Total assets acquired | ' | ' | ' | 2,492 | ' | ' | ' | ' | ' |
Accounts payable | ' | ' | ' | -24 | ' | ' | ' | ' | ' |
Employee compensation and benefits | ' | ' | ' | -24 | ' | ' | ' | ' | ' |
Other accrued liabilities | ' | ' | ' | -47 | ' | ' | ' | ' | ' |
Long-term debt | ' | ' | ' | -43 | ' | ' | ' | ' | ' |
Other long-term liabilities | ' | ' | ' | -211 | ' | ' | ' | ' | ' |
Net assets acquired | ' | ' | ' | 2,143 | ' | ' | ' | ' | ' |
Business Acquisition, Pro Forma Information [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenue | ' | ' | ' | ' | ' | ' | 7,100 | 6,976 | ' |
Net income | ' | ' | ' | ' | ' | ' | $1,145 | $909 | ' |
Net income per share - basic | ' | ' | ' | ' | ' | ' | $3.29 | $2.62 | ' |
Net income per share - diluted | ' | ' | ' | ' | ' | ' | $3.24 | $2.56 | ' |
ACQUISITIONS_Dako_Acquired_Int
ACQUISITIONS Dako Acquired Intangible Assets (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Oct. 31, 2013 | Jun. 21, 2012 |
Dako [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Total intangible assets subject to amortization | ' | $555 |
In-process research and development | ' | 183 |
Intangible Assets | ' | 738 |
Developed product technology | Dako [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Total intangible assets subject to amortization | ' | 287 |
Customer Relationships [Member] | Dako [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Total intangible assets subject to amortization | ' | 140 |
Estimated useful life (years) | '4 years | ' |
Trademarks/Trade Name [Member] | Dako [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Total intangible assets subject to amortization | ' | $128 |
Estimated useful life (years) | '12 years | ' |
Minimum [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Estimated useful life (years) | '6 months | ' |
Minimum [Member] | Developed product technology | Dako [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Estimated useful life (years) | '8 years | ' |
Maximum [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Estimated useful life (years) | '15 years | ' |
Maximum [Member] | Developed product technology | Dako [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Estimated useful life (years) | '9 years | ' |
SHAREBASED_COMPENSATION_Genera
SHARE-BASED COMPENSATION General Disclosures (Details) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Employee stock purchase plan [Abstract] | ' | ' | ' |
Compensation percentage maximum eligible contribution to purchase shares of common stock | 10.00% | ' | ' |
ESPP eligible employee common stock purchase price ratio | 85.00% | ' | ' |
Automatic annual increase in shares authorized for issuance in ESPP, without the Board of Directors determined amount, percentage (in hundredths) | 1.00% | ' | ' |
Maximum number of shares issued under the ESPP (in shares) | 75,000,000 | ' | ' |
ESPP Employee purchased shares (in shares) | 1,454,724 | 1,405,774 | 1,205,431 |
ESPP employee purchases | $48 | $47 | $43 |
Common stock shares authorized and available for issuance under our ESPP (in shares) | 37,709,692 | ' | ' |
Aggregate participant contributions | $23 | ' | ' |
Incentive compensation plans [Abstract] | ' | ' | ' |
Common stock issuable under the 2009 Plan (in shares) | 25,000,000 | ' | ' |
Term of the 2009 Stock Plan (in years) | 'ten years | ' | ' |
Common stock available for future awards under the 2009 Stock Plan (in shares) | 12,522,185 | ' | ' |
Percentage which rate options generally vest per year (in hundredths) | 25.00% | ' | ' |
Number of years from the date of grant generally vest (in years) | '4 years | ' | ' |
Maximum contractual term (in years) | '10 years | ' | ' |
Percentage market value of the common stock option exercise price is generally not less than (in hundredths) | 100.00% | ' | ' |
Minimum final share award percentage of the target award based on performance metrics (in hundredths) | 0.00% | ' | ' |
Maximum final share award percentage of the target award based on performance metrics (in hundredths) | 200.00% | ' | ' |
Time period after which participants of the performance stock award plan are entitled to receive unrestricted share of the company's stock, if specified performance targets are met | '3 years | ' | ' |
Percentage rate restricted stock units generally vest per year (in hundredths) | 25.00% | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Vesting Period By Year | '4 years | ' | ' |
SHAREBASED_COMPENSATION_Alloca
SHARE-BASED COMPENSATION Allocated Share-based compensation expense (Details) (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | ' | ' | ' |
Share-based compensation expense | $88 | $76 | $73 |
Windfall income tax benifit realized from excercised from stock options and similar awards | 2 | 0 | 0 |
Weighted per share average grant date fair value of options granted (per share) | $12.18 | $13.69 | $12.48 |
Incremental expense for the acceleration of share-based compensation related to the announced workforce reduction plan | 3 | 0 | 0 |
Time period which employees have to exercise options related to the workforce reduction before such options are cancelled (in months) | '3 months | ' | ' |
Cost of Products and Services [Member] | ' | ' | ' |
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | ' | ' | ' |
Share-based compensation expense | 20 | 16 | 16 |
Research and Development [Member] | ' | ' | ' |
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | ' | ' | ' |
Share-based compensation expense | 12 | 10 | 10 |
Selling, General, and Administrative [Member] | ' | ' | ' |
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | ' | ' | ' |
Share-based compensation expense | $56 | $50 | $47 |
SHAREBASED_COMPENSATION_Fair_V
SHARE-BASED COMPENSATION Fair Value Assumptions (Details) | 12 Months Ended | ||
Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | |
Employee Stock Option [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Weighted average risk-free interest rate (in hundredths) | 0.86% | 0.88% | 1.49% |
Dividend yield (in hundredths) | 1.00% | 0.00% | 0.00% |
Weighted average volatility (in hundredths) | 39.00% | 38.00% | 35.00% |
Expected life (in years) | '5 years 9 months 18 days | '5 years 9 months 18 days | '5 years 9 months 18 days |
Prior maximum exercise period, retirement eligible employees (in years) | '3 years | ' | ' |
New maximum exercise period, retirement eligible employees (in years) | '10 years | ' | ' |
LTPP [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Volatility of Agilent shares (in hundredths) | 37.00% | 41.00% | 40.00% |
Volatility of selected peer-company shares minimum (in hundredths) | 6.00% | 17.00% | 20.00% |
Volatility of selected peer-company shares maximum (in hundredths) | 64.00% | 75.00% | 76.00% |
Price-wise correlation with selected peers (in hundredths) | 49.00% | 62.00% | 55.00% |
SHAREBASED_COMPENSATION_Stock_
SHARE-BASED COMPENSATION Stock Option Activity (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ' | ' | ' |
Outstanding, beginning balance (in shares) | 12,077 | ' | ' |
Granted (in shares) | 1,596 | ' | ' |
Exercised (in shares) | -4,037 | ' | ' |
Options Cancelled/Forfeited/Expired (in shares) | -27 | ' | ' |
Outstanding, ending balance (in shares) | 9,609 | 12,077 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ' | ' | ' |
Weighted-average exercise price per share, beginning of period (in dollars per share) | $30 | ' | ' |
Weighted-average exercise price per share, granted (in dollars per share) | $36 | ' | ' |
Weighted-average exercise price per share, exercised (in dollars per share) | $28 | $23 | $27 |
Weighted-average exercise price per share, cancelled, expired and forfeited (in dollars per shares) | $17 | ' | ' |
Weighted-average exercise price per share, end of period (in dollars per share) | $32 | ' | ' |
Forfeited and expired options from total cancellations [Abstract] | ' | ' | ' |
Forfeited (in shares) | 0 | ' | ' |
Expired (in shares) | 27 | ' | ' |
Options Cancelled/Forfeited/Expired (in shares) | 27 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options forfeited and expired, Additional Disclosures [Abstract] | ' | ' | ' |
Weighted-average exercise price per share, forfeited (in dollars per share) | $0 | ' | ' |
Weighted-average exercise price per share, expired (in dollars per share) | $17 | ' | ' |
Weighted-average exercise price per share, total options cancelled (in dollars per share) | $17 | ' | ' |
SHAREBASED_COMPENSATION_Shares
SHARE-BASED COMPENSATION Shares Authorized by Exercise Price Range (Details) (USD $) | 12 Months Ended | ||
Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | |
Y | |||
Sharebased Compensation Arrangement By Exercise Price Range [Abstract] | ' | ' | ' |
Number Outstanding (in shares) | 9,609,000 | ' | ' |
Weighted Average Remaining Contractual Life (in years) | '5 years 1 month 6 days | ' | ' |
Weighted Average Exercise Price (in dollars per share) | $32 | ' | ' |
Aggregate Intrinsic Value | $181,030,000 | ' | ' |
Number Exercisable (in shares) | 6,069,000 | ' | ' |
Weighted Average Remaining Contractual Life (in years) | '3 years 4 months 24 days | ' | ' |
Weighted Average Exercise Price (in dollars per share) | $30 | ' | ' |
Aggregate Intrinsic Value | 126,933,000 | ' | ' |
Closing stock price basis for aggregate intrinsic value (in dollars per share) | $50.76 | ' | ' |
In-the-money awards exercisable (in shares) | 6,000,000 | ' | ' |
Aggregate instrinsic value of options [Abstract] | ' | ' | ' |
Options exercised in period aggregate intrinsic value | 71,499,000 | 38,188,000 | 164,738,000 |
Options exercised in period aggregate weighted average exercise price (in dollars per share) | $28 | $23 | $27 |
Black-Scholes valuation of options granted in the period (in dollars per share) | $12.18 | $13.69 | $12.48 |
Unrecognized share-based compensation costs for outstanding stock option awards, net of expected foreitures | 13,000,000 | ' | ' |
Weighted-average period unrecognized share-based compensation costs for outstanding stock option awards, expected amortization period (in years) | 2.2 | ' | ' |
Amount of cash received from the exercise of share-based awards granted | 161,000,000 | 100,000,000 | 304,000,000 |
Range of Exercise Prices - $0 - $25 [Member] | ' | ' | ' |
Sharebased Compensation Arrangement By Exercise Price Range [Abstract] | ' | ' | ' |
Minimum price of options outstanding, end of the period (in dollars per share) | $0 | ' | ' |
Maximum price of options outstanding, end of the period (in dollars per share) | $25 | ' | ' |
Number Outstanding (in shares) | 1,507,000 | ' | ' |
Weighted Average Remaining Contractual Life (in years) | '2 years 4 months 24 days | ' | ' |
Weighted Average Exercise Price (in dollars per share) | $20 | ' | ' |
Aggregate Intrinsic Value | 45,750,000 | ' | ' |
Number Exercisable (in shares) | 1,507,000 | ' | ' |
Weighted Average Remaining Contractual Life (in years) | '2 years 4 months 24 days | ' | ' |
Weighted Average Exercise Price (in dollars per share) | $20 | ' | ' |
Aggregate Intrinsic Value | 45,750,000 | ' | ' |
Range of Exercise Prices - $25.01 - $30 [Member] | ' | ' | ' |
Sharebased Compensation Arrangement By Exercise Price Range [Abstract] | ' | ' | ' |
Minimum price of options outstanding, end of the period (in dollars per share) | $25.01 | ' | ' |
Maximum price of options outstanding, end of the period (in dollars per share) | $30 | ' | ' |
Number Outstanding (in shares) | 1,051,000 | ' | ' |
Weighted Average Remaining Contractual Life (in years) | '5 years 10 months 24 days | ' | ' |
Weighted Average Exercise Price (in dollars per share) | $29 | ' | ' |
Aggregate Intrinsic Value | 22,418,000 | ' | ' |
Number Exercisable (in shares) | 691,000 | ' | ' |
Weighted Average Remaining Contractual Life (in years) | '5 years 9 months 18 days | ' | ' |
Weighted Average Exercise Price (in dollars per share) | $29 | ' | ' |
Aggregate Intrinsic Value | 14,727,000 | ' | ' |
Range of Exercise Prices - $30.01 - $40 [Member] | ' | ' | ' |
Sharebased Compensation Arrangement By Exercise Price Range [Abstract] | ' | ' | ' |
Minimum price of options outstanding, end of the period (in dollars per share) | $30.01 | ' | ' |
Maximum price of options outstanding, end of the period (in dollars per share) | $40 | ' | ' |
Number Outstanding (in shares) | 7,045,000 | ' | ' |
Weighted Average Remaining Contractual Life (in years) | '5 years 7 months 6 days | ' | ' |
Weighted Average Exercise Price (in dollars per share) | $35 | ' | ' |
Aggregate Intrinsic Value | 112,829,000 | ' | ' |
Number Exercisable (in shares) | 3,870,000 | ' | ' |
Weighted Average Remaining Contractual Life (in years) | '3 years 4 months 24 days | ' | ' |
Weighted Average Exercise Price (in dollars per share) | $34 | ' | ' |
Aggregate Intrinsic Value | 66,448,000 | ' | ' |
Range of Exercise Prices $40.01 & over [Member] | ' | ' | ' |
Sharebased Compensation Arrangement By Exercise Price Range [Abstract] | ' | ' | ' |
Minimum price of options outstanding, end of the period (in dollars per share) | $40.01 | ' | ' |
Number Outstanding (in shares) | 6,000 | ' | ' |
Weighted Average Remaining Contractual Life (in years) | '8 years 4 months 24 days | ' | ' |
Weighted Average Exercise Price (in dollars per share) | $45 | ' | ' |
Aggregate Intrinsic Value | 33,000 | ' | ' |
Number Exercisable (in shares) | 1,000 | ' | ' |
Weighted Average Remaining Contractual Life (in years) | '8 years 4 months 24 days | ' | ' |
Weighted Average Exercise Price (in dollars per share) | $45 | ' | ' |
Aggregate Intrinsic Value | $8,000 | ' | ' |
SHAREBASED_COMPENSATION_Nonves
SHARE-BASED COMPENSATION Non-vested award activity disclosure (Details) (USD $) | 12 Months Ended | ||
In Millions, except Share data in Thousands, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Y | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ' | ' | ' |
Non-vested beginning (in shares) | 3,514 | ' | ' |
Granted (in shares) | 1,394 | ' | ' |
Vested (in shares) | -1,251 | ' | ' |
Forfeited (in shares) | -76 | ' | ' |
Change in LTPP shares vested in the year due to performance conditions | -35 | ' | ' |
Non-vested ending (in shares) | 3,546 | 3,514 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ' | ' | ' |
Non-vested at October 31, 2012 -Weighted Average Grant Price (in dollars per share) | $35 | ' | ' |
Granted - Weighted Average Grant Price (in dollars per share) | $38 | ' | ' |
Vested- Weighted Average Grant Price (in dollars per share) | $35 | ' | ' |
Foreited- Weighted Average Grant Price (in dollars per share) | $38 | ' | ' |
Change in LTPP shares vested in the year due to performance conditions Fair Value | $36 | ' | ' |
Non-vested at October 31, 2013 -Weighted Average Grant Price (in dollars per share) | $37 | ' | ' |
Unrecognized share-based compensation costs for non-vested restricted stock awards, net of expected forfeitures | $54 | ' | ' |
Weighted-average period non-vested restricted stock awards are expected to be amortized over (in years) | 2.2 | ' | ' |
Total fair value of restricted stock awards vested | $44 | $54 | $43 |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
Apr. 30, 2013 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | |
Income (Loss) before Income Taxes [Abstract] | ' | ' | ' | ' |
U.S. operations | ' | $39,000,000 | $45,000,000 | $88,000,000 |
Non-U.S. operations | ' | 820,000,000 | 998,000,000 | 944,000,000 |
Income before taxes | ' | 859,000,000 | 1,043,000,000 | 1,032,000,000 |
Provision (benefit) for income taxes [Abstract] | ' | ' | ' | ' |
U.S. federal taxes - current | ' | 24,000,000 | 6,000,000 | -1,000,000 |
U.S. federal taxes - deferred | ' | 48,000,000 | -144,000,000 | 0 |
Non-U.S. taxes - current | ' | 77,000,000 | 41,000,000 | -6,000,000 |
Non-U.S. taxes - deferred | ' | -24,000,000 | -22,000,000 | 28,000,000 |
State taxes, net of federal benefit - current | ' | 3,000,000 | 1,000,000 | -11,000,000 |
State taxes, net of federal benefit - deferred | ' | 7,000,000 | 8,000,000 | 10,000,000 |
Total provision | ' | 135,000,000 | -110,000,000 | 20,000,000 |
Deferred tax assets: [Abstract] | ' | ' | ' | ' |
Inventory | ' | 32,000,000 | 24,000,000 | ' |
Intangibles | ' | 0 | 0 | ' |
Property, plant and equipment | ' | 18,000,000 | 11,000,000 | ' |
Warranty reserves | ' | 25,000,000 | 21,000,000 | ' |
Retiree medical benefits | ' | 0 | 5,000,000 | ' |
Pension benefits | ' | 42,000,000 | 136,000,000 | ' |
Employee benefits, other than retirement | ' | 57,000,000 | 60,000,000 | ' |
Net operating loss capital loss and credit carryforwards | ' | 263,000,000 | 293,000,000 | ' |
Unrealized gains/losses on investments | ' | 24,000,000 | 26,000,000 | ' |
Unremitted earnings of foreign subsidiaries | ' | 0 | 0 | ' |
Share-based compensation | ' | 54,000,000 | 57,000,000 | ' |
Deferred revenue | ' | 27,000,000 | 27,000,000 | ' |
Other | ' | 36,000,000 | 51,000,000 | ' |
Subtotal | ' | 578,000,000 | 711,000,000 | ' |
Tax valuation allowance | ' | -85,000,000 | -93,000,000 | ' |
Total deferred tax assets | ' | 493,000,000 | 618,000,000 | ' |
Deferred tax liabilities: [Abstract] | ' | ' | ' | ' |
Inventory | ' | 0 | 0 | ' |
Intangibles | ' | 214,000,000 | 239,000,000 | ' |
Property, plant and equipment | ' | 0 | 0 | ' |
Warranty reserves | ' | 0 | 0 | ' |
Retiree medical benefits | ' | 0 | 0 | ' |
Pension benefits | ' | ' | 0 | ' |
Employee benefits, other than retirement | ' | 0 | 0 | ' |
Net operating loss capital loss and credit carryforwards | ' | 0 | 0 | ' |
Unrealized gains/loss on investments | ' | 0 | 0 | ' |
Unremmitted earnings of foreign subsidiaries | ' | 114,000,000 | 88,000,000 | ' |
Share-based compensation | ' | 0 | 0 | ' |
Deferred revenue | ' | 0 | 0 | ' |
Other | ' | 3,000,000 | 1,000,000 | ' |
Subtotal | ' | 331,000,000 | 328,000,000 | ' |
Tax valuation allowance | ' | 0 | 0 | ' |
Total deferred tax liabilities | ' | 331,000,000 | 328,000,000 | ' |
The cumulative amount of undistributed earnings considered indefinitely reinvested | ' | 6,100,000,000 | ' | ' |
Current and long term Deferred tax assets and liabilities [Abstract] | ' | ' | ' | ' |
Current deferred tax assets (included within other current assets) | ' | 115,000,000 | 95,000,000 | ' |
Long-term deferred tax assets (included within other assets) | ' | 264,000,000 | 400,000,000 | ' |
Current deferred tax liabilities (included within other accrued liabilities) | ' | -4,000,000 | -2,000,000 | ' |
Long-term deferred tax liabilities (included within other long-term liabilities) | ' | -213,000,000 | -203,000,000 | ' |
Total | ' | 162,000,000 | 290,000,000 | ' |
Federal net operating loss carryforwards | ' | 22,000,000 | ' | ' |
Tax credit carryforwards | ' | 113,000,000 | ' | ' |
Operating Loss Carryforwards, Expiration Date Range | ' | 'beginning 2021 through 2026 | ' | ' |
Tax credit carryforward expiration date | ' | 'begin to expire in 2018 | ' | ' |
State net operating loss carryforwards | ' | 161,000,000 | ' | ' |
State Operating Loss Carryforward, Expiration Dates | ' | 'beginning 2014 through 2031 | ' | ' |
State tax credit carryforwards that do not expire | ' | 26,000,000 | ' | ' |
Foreign net operating loss carryforwards | ' | 472,000,000 | ' | ' |
Portion of this foreign loss which will expire in years beginning 2013 through 2022 | ' | 237,000,000 | ' | ' |
Balance of this foreign loss with an indefinite life | ' | 235,000,000 | ' | ' |
Unrecognized deferred tax benefits | ' | 150,000,000 | ' | ' |
Cumulative excess tax benefits realized from share-based awards | ' | 68,000,000 | ' | ' |
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract] | ' | ' | ' | ' |
Profit before tax times statutory rate | ' | -301,000,000 | -365,000,000 | -361,000,000 |
State income taxes, net of federal benefit | ' | 7,000,000 | 8,000,000 | -1,000,000 |
Non-U.S. income taxed at different rates | ' | -162,000,000 | -144,000,000 | -153,000,000 |
Change in previously unrecognized non-US tax benefits | ' | 0 | -68,000,000 | -97,000,000 |
Valuation allowances | ' | -8,000,000 | -280,000,000 | -84,000,000 |
Other, net | ' | -3,000,000 | 9,000,000 | -6,000,000 |
Total provision | ' | 135,000,000 | -110,000,000 | 20,000,000 |
Effective tax rate (in hundredths) | ' | 16.00% | -11.00% | 2.00% |
Out of period adjustment to tax expense | 12,000,000 | ' | ' | ' |
Impact of the tax holidays decreased in income taxes | ' | 127,000,000 | 122,000,000 | 127,000,000 |
The benefit of the tax holidays on net income per share (diluted) | ' | $0.37 | $0.35 | $0.36 |
Net tax benefit primarily associated with refund in Canada | ' | ' | ' | 97,000,000 |
Net tax benefit includes adjustment to reduce carry value for certain UK deferred tax assets | ' | ' | ' | 26,000,000 |
Income Tax Assets and Liabilities [Abstract] | ' | ' | ' | ' |
Current income tax assets (included within other current assets) | ' | 42,000,000 | 65,000,000 | ' |
Long-term income tax assets (included within other assets) | ' | 34,000,000 | 49,000,000 | ' |
Current income tax liabilities (included within other accrued liabilities) | ' | -48,000,000 | -115,000,000 | ' |
Long-term income tax liabilities ( included within other long-term liabilities | ' | -341,000,000 | -320,000,000 | ' |
Total | ' | -313,000,000 | -321,000,000 | ' |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ' | ' | ' | ' |
Balance, beginning of year | ' | 464,000,000 | 469,000,000 | 656,000,000 |
Additions for acquisitions | ' | 0 | 0 | 0 |
Additions for tax positions related to the current year | ' | 53,000,000 | 56,000,000 | 41,000,000 |
Additions for tax positions from prior years | ' | 11,000,000 | 40,000,000 | 18,000,000 |
Reductions for tax positions from prior years | ' | -6,000,000 | -90,000,000 | -170,000,000 |
Settlements with taxing authorities | ' | -3,000,000 | -2,000,000 | -67,000,000 |
Statute of limitations expirations | ' | -3,000,000 | -9,000,000 | -9,000,000 |
Balance, end of year | ' | 516,000,000 | 464,000,000 | 469,000,000 |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | ' | 499,000,000 | ' | ' |
Interest and penalties relating to unrecognized tax benefits recognized | ' | 5,000,000 | -4,000,000 | 14,000,000 |
Interest and penalties accrued related to unrecognized tax benefits accrued and reported | ' | $39,000,000 | $34,000,000 | ' |
Tax years still open to audit in US | ' | '2006 | ' | ' |
NET_INCOME_LOSS_PER_SHARE_Deta
NET INCOME (LOSS) PER SHARE (Details) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Numerator: [Abstract] | ' | ' | ' |
Net income | $724 | $1,153 | $1,012 |
Denominators: [Abstract] | ' | ' | ' |
Basic weighted average shares | 341,000,000 | 348,000,000 | 347,000,000 |
Potentially dilutive common stock equivalents - stock options and other employeee stock plans | 4,000,000 | 5,000,000 | 8,000,000 |
Diluted weighted average shares | 345,000,000 | 353,000,000 | 355,000,000 |
Total number of share-based awards issued (in shares) | 6,000,000 | 5,000,000 | 12,000,000 |
Options with exercise price greater than average market price [Member] | ' | ' | ' |
Antidilutive securities excluded from EPS computation | ' | ' | ' |
Antidilutive shares excluded from eps computation (in shares) | 4,200 | 436,500 | 554,000 |
Stock Options, LTPP and restricted stock combined exercise price, unamortized fair value, excess tax benefits or shortfalls greater than average market price [Member] | ' | ' | ' |
Antidilutive securities excluded from EPS computation | ' | ' | ' |
Antidilutive shares excluded from eps computation (in shares) | 18,300 | 1,544,600 | 115,200 |
SUPPLEMENTAL_CASH_FLOW_INFORMA1
SUPPLEMENTAL CASH FLOW INFORMATION (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Supplemental Cash Flow Information [Abstract] | ' | ' | ' |
Net cash paid for income taxes | $110 | $86 | $22 |
Cash paid for interest | $112 | $111 | $95 |
INVENTORY_Details
INVENTORY (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Inventory, Net [Abstract] | ' | ' | ' |
Finished goods | $552 | $509 | ' |
Purchased parts and fabricated assemblies | 514 | 505 | ' |
Inventory | 1,066 | 1,014 | ' |
Inventory-related excess and obsolescence charges | $48 | $30 | $30 |
PROPERTY_PLANT_AND_EQUIPMENT_N2
PROPERTY, PLANT AND EQUIPMENT, NET (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Acceleration of depreciation for held and used assets | $0 | $15 | $0 |
Property, Plant and Equipment [Abstract] | ' | ' | ' |
Land | 131 | 142 | ' |
Buildings and leasehold improvements | 1,330 | 1,475 | ' |
Machinery and equipment | 1,019 | 882 | ' |
Software | 398 | 383 | ' |
Total property, plant and equipment | 2,878 | 2,882 | ' |
Accumulated depreciation and amortization | -1,744 | -1,718 | ' |
Property, plant and equipment, net | 1,134 | 1,164 | ' |
Asset impairments other than restructuring | 3 | 0 | 7 |
Depreciation expense | $181 | $171 | $142 |
GOODWILL_AND_OTHER_INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS Roll forward (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 |
Goodwill - Rollforward | ' | ' |
Beginning Balance | $3,025 | $1,567 |
Foreign currency translation impact | 6 | 6 |
Goodwill arising from acquisitions | 16 | 1,452 |
Ending Balance | 3,047 | 3,025 |
Life Sciences and Diagnostics [Member] | ' | ' |
Goodwill [Line Items] | ' | ' |
goodwill transferred from one segment to other | 4 | ' |
Goodwill - Rollforward | ' | ' |
Beginning Balance | 1,807 | 363 |
Foreign currency translation impact | 63 | 25 |
Goodwill arising from acquisitions | 13 | 1,419 |
Ending Balance | 1,883 | 1,807 |
Chemical Analysis [Member] | ' | ' |
Goodwill [Line Items] | ' | ' |
goodwill transferred from one segment to other | 5 | ' |
Goodwill - Rollforward | ' | ' |
Beginning Balance | 751 | 760 |
Foreign currency translation impact | -10 | -10 |
Goodwill arising from acquisitions | 4 | 1 |
Ending Balance | 745 | 751 |
Electronic Measurement [Member] | ' | ' |
Goodwill - Rollforward | ' | ' |
Beginning Balance | 467 | 444 |
Foreign currency translation impact | -47 | -9 |
Goodwill arising from acquisitions | -1 | 32 |
Ending Balance | $419 | $467 |
GOODWILL_AND_OTHER_INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS Disclosures and Components of Other Intangibles (Details) (USD $) | Oct. 31, 2013 | Oct. 31, 2012 |
In Millions, unless otherwise specified | ||
Schedule of Other Intangible Assets By Major Class [Abstract] | ' | ' |
Gross Carrying Amount | $1,610 | $1,422 |
Accumulated Amortization | 729 | 529 |
Total amortizable intangible assets | 881 | 893 |
Gross Book Value | 1,645 | 1,615 |
In-Process R&D | 35 | 193 |
Net Book Value | 916 | 1,086 |
Purchased technology | ' | ' |
Schedule of Other Intangible Assets By Major Class [Abstract] | ' | ' |
Gross Carrying Amount | 1,019 | 849 |
Accumulated Amortization | 460 | 333 |
Net Book Value | 559 | 516 |
Backlog [Member] | ' | ' |
Schedule of Other Intangible Assets By Major Class [Abstract] | ' | ' |
Gross Carrying Amount | 14 | 14 |
Accumulated Amortization | 14 | 14 |
Net Book Value | 0 | 0 |
Trademarks/Trade Name [Member] | ' | ' |
Schedule of Other Intangible Assets By Major Class [Abstract] | ' | ' |
Gross Carrying Amount | 176 | 168 |
Accumulated Amortization | 40 | 27 |
Net Book Value | 136 | 141 |
Customer Relationships [Member] | ' | ' |
Schedule of Other Intangible Assets By Major Class [Abstract] | ' | ' |
Gross Carrying Amount | 401 | 391 |
Accumulated Amortization | 215 | 155 |
Net Book Value | $186 | $236 |
GOODWILL_AND_OTHER_INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS Finite-Lived Assets and Future Amortization Expense (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
acquisition | acquisition | ||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' | ' |
Goodwill, Impairment Loss | $0 | $0 | $0 |
Goodwill arising from acquisitions | 16 | 1,452 | ' |
Number of acquisitions or business purchases | 4 | 10 | ' |
Additions and adjustments to other intangibles | 5 | 786 | ' |
Foreign exchange translation impact to other intangible assets | 25 | 8 | ' |
In-process research and development decrease | 158 | 183 | ' |
Impairment of other intangibles related to cancellation of IPRD project | 1 | ' | ' |
Amortization Expense, Maturity Schedule [Abstract] | ' | ' | ' |
Amortization of intangible assets during the period | 199 | 136 | 111 |
Future amortization expense for 2014 | 194 | ' | ' |
Future amortization expense for 2015 | 181 | ' | ' |
Future amortization expense for 2016 | 154 | ' | ' |
Future amortization expense for 2017 | 106 | ' | ' |
Future amortization expense for 2018 | 70 | ' | ' |
Future amortization thereafter | $176 | ' | ' |
INVESTMENTS_Details
INVESTMENTS (Details) (USD $) | 1 Months Ended | 12 Months Ended | |||
In Millions, unless otherwise specified | Feb. 28, 2001 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | Oct. 31, 2002 |
funds | |||||
Short-Term [Abstract] | ' | ' | ' | ' | ' |
Cost method investments | ' | $0 | $11 | ' | ' |
Long-Term [Abstract] | ' | ' | ' | ' | ' |
Cost method investments | ' | 44 | 59 | ' | ' |
Trading securities | ' | 51 | 50 | ' | ' |
Available-for-sale investments | ' | 25 | 0 | ' | ' |
Equity Method Investments | ' | 19 | 0 | ' | ' |
Total | ' | 139 | 109 | ' | ' |
Number of special funds included in cost method investments | ' | 2 | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' | ' |
Gross Unrealized Losses | ' | 0 | ' | ' | ' |
Amounts included in other income (expense), net [Abstract] | ' | ' | ' | ' | ' |
Available-for-sale investments - realized gain | ' | 1 | 2 | 6 | ' |
Equity method investments - share of losses | ' | -2 | 0 | 0 | ' |
Net unrealized gains and losses on trading securities | ' | 8 | 5 | 1 | ' |
Realized gains from the sale of cost method securities | ' | 0 | 2 | 0 | ' |
Proceeds from Sale of cost method investments | ' | 11 | ' | ' | ' |
Investments in Leases [Abstract] | ' | ' | ' | ' | ' |
Initial proceeds from sale of land | 287 | ' | ' | ' | ' |
Prepaid rent received, leasehold interest | ' | ' | ' | ' | 237 |
Terminated leasehold interest in municipal properties | ' | 80 | ' | ' | ' |
Recognized loss from termination of leashold interests in municipal properties | ' | 2 | ' | ' | ' |
Equity Securities [Member] | ' | ' | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' | ' |
Cost | ' | 15 | ' | ' | ' |
Gross Unrealized Gains | ' | 10 | ' | ' | ' |
Gross Unrealized Losses | ' | 0 | ' | ' | ' |
Estimated Fair Value | ' | $25 | ' | ' | ' |
FAIR_VALUE_MEASUREMENTS_Fair_v
FAIR VALUE MEASUREMENTS, Fair value of assets and liabilities measured on a recurring basis (Details) (Fair Value, Measurements, Recurring [Member], USD $) | Oct. 31, 2013 | Oct. 31, 2012 |
In Millions, unless otherwise specified | ||
Assets, Short-term [Abstract] | ' | ' |
Cash equivalents (money market funds) | $1,968 | $1,834 |
Derivative instruments (foreign exchange and interest rate swap contracts) | 7 | 7 |
Assets, Long-term [Abstract] | ' | ' |
Trading securities | 51 | 50 |
Available-for-sale investments | 25 | ' |
Total assets measured at fair value | 2,051 | 1,891 |
Liabilities, Short-term [Abstract] | ' | ' |
Derivative instruments (foreign exchange contracts) | 6 | 6 |
Liabilities, Long-term [Abstract] | ' | ' |
Deferred compensation liability | 51 | 48 |
Total liabilities measured at fair value | 57 | 54 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' |
Assets, Short-term [Abstract] | ' | ' |
Cash equivalents (money market funds) | 1,968 | 1,834 |
Derivative instruments (foreign exchange and interest rate swap contracts) | 0 | 0 |
Assets, Long-term [Abstract] | ' | ' |
Trading securities | 51 | 50 |
Available-for-sale investments | 25 | ' |
Total assets measured at fair value | 2,044 | 1,884 |
Liabilities, Short-term [Abstract] | ' | ' |
Derivative instruments (foreign exchange contracts) | 0 | 0 |
Liabilities, Long-term [Abstract] | ' | ' |
Deferred compensation liability | 0 | 0 |
Total liabilities measured at fair value | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Assets, Short-term [Abstract] | ' | ' |
Cash equivalents (money market funds) | 0 | 0 |
Derivative instruments (foreign exchange and interest rate swap contracts) | 7 | 7 |
Assets, Long-term [Abstract] | ' | ' |
Trading securities | 0 | 0 |
Available-for-sale investments | 0 | ' |
Total assets measured at fair value | 7 | 7 |
Liabilities, Short-term [Abstract] | ' | ' |
Derivative instruments (foreign exchange contracts) | 6 | 6 |
Liabilities, Long-term [Abstract] | ' | ' |
Deferred compensation liability | 51 | 48 |
Total liabilities measured at fair value | 57 | 54 |
Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Assets, Short-term [Abstract] | ' | ' |
Cash equivalents (money market funds) | 0 | 0 |
Derivative instruments (foreign exchange and interest rate swap contracts) | 0 | 0 |
Assets, Long-term [Abstract] | ' | ' |
Trading securities | 0 | 0 |
Available-for-sale investments | 0 | ' |
Total assets measured at fair value | 0 | 0 |
Liabilities, Short-term [Abstract] | ' | ' |
Derivative instruments (foreign exchange contracts) | 0 | 0 |
Liabilities, Long-term [Abstract] | ' | ' |
Deferred compensation liability | 0 | 0 |
Total liabilities measured at fair value | $0 | $0 |
Recovered_Sheet1
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS, Fair value of assets and liabilities measured on a non-recurring basis (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 |
Carrying amount [Member] | ' | ' |
Long -Lived Assets [Abstract] | ' | ' |
Long-lived assets held and used | $2 | $1 |
Long-lived assets held for sale | 3 | ' |
Fair value [Member] | ' | ' |
Long -Lived Assets [Abstract] | ' | ' |
Long-lived assets held and used | 0 | 0 |
Long-lived assets held for sale | 2 | ' |
Fair Value, Measurements, Nonrecurring [Member] | ' | ' |
Long -Lived Assets [Abstract] | ' | ' |
Impairment of long-lived assets held and used | 2 | 1 |
Impairment of long-lived assets held for sale | $1 | $0 |
DERIVATIVES_Details
DERIVATIVES (Details) (USD $) | 12 Months Ended | 12 Months Ended | ||||||||||||||
In Millions, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2013 | Jul. 01, 2012 | Oct. 31, 2013 | Jun. 06, 2011 | Oct. 31, 2013 | Nov. 25, 2008 | Oct. 31, 2013 | Aug. 09, 2011 | Oct. 31, 2013 | Jun. 21, 2012 | Aug. 09, 2011 | Jun. 06, 2011 | Nov. 25, 2008 |
contracts | Forward Contracts Buy/(Sell) [Member] | Derivatives Designated as Hedging Instruments [Member] | Derivatives Designated as Hedging Instruments [Member] | Treasury Lock [Member] | Senior Notes 2015 [Member] | Senior Notes 2015 [Member] | Senior Notes 2017 [Member] | Senior Notes 2017 [Member] | Senior Notes 2020 [Member] | Senior Notes 2020 [Member] | Dako [Member] | Dako [Member] | Senior Notes 2020 [Member] | Senior Notes 2015 [Member] | Senior Notes 2017 [Member] | |
Not Designated as Hedging Instrument [Member] | Forward Contracts Buy/(Sell) [Member] | Option Contracts Buy/(Sell) [Member] | Derivatives Designated as Hedging Instruments [Member] | Foreign Exchange Contracts [Member] | contracts | contracts | contracts | |||||||||
Not Designated as Hedging Instrument [Member] | ||||||||||||||||
Terminated Interest Rate Swaps | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Interest Rate Swap Contracts Designated as Fair Value Hedges Terminated | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5 | 5 | 2 |
Notional Amount of Terminated Interest Rate Swaps | ' | ' | ' | ' | ' | ' | $500 | ' | $400 | ' | $500 | ' | ' | $500 | $500 | $400 |
Asset Value of Terminated Interest Rate Swaps | ' | ' | ' | ' | ' | ' | 31 | ' | 43 | ' | 34 | ' | ' | 34 | 31 | 43 |
Terminated Interest Rate Fair Value Hedge Asset Unamortized Amount | ' | ' | ' | ' | ' | 12 | ' | 22 | ' | 26 | ' | ' | ' | ' | ' | ' |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative, Notional Amount | ' | 261 | -18 | -97 | 400 | ' | ' | ' | ' | ' | ' | ' | 1,700 | ' | ' | ' |
Loss on settlement recorded in other income (expense) | 14 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14 | ' | ' | ' | ' |
Derivative, Net Liability Position, Aggregate Fair Value | $3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative Contracts [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number Of Foreign Exchange Forward Contracts Designated As Cash Flow Hedge | 151 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number Of Foreign Exchange Option Contracts Designated As Cash Flow Hedge | 19 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number Of Foreign Exchange Forward Contracts Not Designated As Hedges | 170 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
DERIVATIVES_Disclosures_and_de
DERIVATIVES, Disclosures and derivative instrument aggregated notional amounts by currency and designations (Details) (USD $) | Oct. 31, 2013 |
In Millions, unless otherwise specified | |
Forward Contracts Buy/(Sell) [Member] | Not Designated as Hedging Instrument [Member] | ' |
Derivative [Line Items] | ' |
Euro - Buy | $243 |
British Pound - Buy | 2 |
Canadian Dollar - Buy | 0 |
Australian Dollar - Buy | 9 |
Malaysian Ringgit - Buy | 14 |
Japanese Yen - Buy | 3 |
Other Currency - Sell | -10 |
Derivative, Notional Amount | 261 |
Not Designated as Hedging Instrument [Member] | Forward Contracts Buy/(Sell) [Member] | ' |
Derivative [Line Items] | ' |
Euro - Sell | 70 |
Japanese Yen - Sell | 6 |
Other Currency - Buy | 5 |
Derivatives Designated as Hedging Instruments [Member] | Forward Contracts Buy/(Sell) [Member] | ' |
Derivative [Line Items] | ' |
Euro - Sell | -23 |
British Pound - Sell | -17 |
Canadian Dollar - Sell | -37 |
Australian Dollar - Buy | 11 |
Malaysian Ringgit - Buy | 113 |
Japanese Yen - Sell | -56 |
Other Currency - Sell | -9 |
Derivative, Notional Amount | -18 |
Derivatives Designated as Hedging Instruments [Member] | Option Contracts Buy/(Sell) [Member] | ' |
Derivative [Line Items] | ' |
Euro - Buy | 0 |
British Pound - Buy | 0 |
Canadian Dollar - Buy | 0 |
Australian Dollar - Buy | 0 |
Malaysian Ringgit - Buy | 0 |
Japanese Yen - Sell | -97 |
Other Currency - Buy | 0 |
Derivative, Notional Amount | ($97) |
DERIVATIVES_Fair_value_of_deri
DERIVATIVES, Fair value of derivative instruments and Consolidated Balance Sheet location (Details) (USD $) | Oct. 31, 2013 | Oct. 31, 2012 |
In Millions, unless otherwise specified | ||
Derivative, Fair Value, Net [Abstract] | ' | ' |
Derivative Asset, Fair Value | $7 | $7 |
Derivative Liability, Fair Value | 6 | 6 |
Derivatives Designated as Hedging Instrument [Member] | ' | ' |
Derivative, Fair Value, Net [Abstract] | ' | ' |
Derivative Asset, Fair Value | 4 | 4 |
Derivative Liability, Fair Value | 4 | 2 |
Derivatives Not Designated as Hedging Instruments [Member] | Foreign Exchange Contracts [Member] | Other Current Assets [Member] | ' | ' |
Derivative, Fair Value, Net [Abstract] | ' | ' |
Derivative Asset, Fair Value | 3 | 3 |
Derivatives Not Designated as Hedging Instruments [Member] | Foreign Exchange Contracts [Member] | Other Accrued Liabilities [Member] | ' | ' |
Derivative, Fair Value, Net [Abstract] | ' | ' |
Derivative Liability, Fair Value | 2 | 4 |
Cash Flow Hedges [Member] | Derivatives Designated as Hedging Instrument [Member] | Foreign Exchange Contracts [Member] | Other Current Assets [Member] | ' | ' |
Derivative, Fair Value, Net [Abstract] | ' | ' |
Derivative Asset, Fair Value | 4 | 4 |
Cash Flow Hedges [Member] | Derivatives Designated as Hedging Instrument [Member] | Foreign Exchange Contracts [Member] | Other Accrued Liabilities [Member] | ' | ' |
Derivative, Fair Value, Net [Abstract] | ' | ' |
Derivative Liability, Fair Value | 4 | 2 |
Fair Value Hedges [Member] | Derivatives Designated as Hedging Instrument [Member] | Interest Rate Contracts [Member] | Other Assets [Member] | ' | ' |
Derivative, Fair Value, Net [Abstract] | ' | ' |
Derivative Asset, Fair Value | 0 | 0 |
Fair Value Hedges [Member] | Derivatives Designated as Hedging Instrument [Member] | Interest Rate Contracts [Member] | Other Current Assets [Member] | ' | ' |
Derivative, Fair Value, Net [Abstract] | ' | ' |
Derivative Asset, Fair Value | 0 | 0 |
Fair Value Hedges [Member] | Derivatives Designated as Hedging Instrument [Member] | Interest Rate Contracts [Member] | Other Long-Term Liabilities [Member] | ' | ' |
Derivative, Fair Value, Net [Abstract] | ' | ' |
Derivative Liability, Fair Value | 0 | 0 |
Fair Value Hedges [Member] | Derivatives Designated as Hedging Instrument [Member] | Interest Rate Contracts [Member] | Other Accrued Liabilities [Member] | ' | ' |
Derivative, Fair Value, Net [Abstract] | ' | ' |
Derivative Liability, Fair Value | $0 | $0 |
DERIVATIVES_Effect_of_derivati
DERIVATIVES, Effect of derivative instruments on Consolidated Statement of Operations (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Derivative [Line Items] | ' | ' | ' |
Foreign Currency Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months | $1 | ' | ' |
Derivatives Not Designated as Hedging Instruments [Member] | Other income (expense) [Member] | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' |
Gain (loss) recognized in income statement | 7 | -34 | 13 |
Fair Value Hedges [Member] | Derivatives Designated as Hedging Instrument [Member] | Interest Expense [Member] | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' |
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | 0 | 3 | -3 |
Fair Value Hedges [Member] | Derivatives Designated as Hedging Instrument [Member] | Interest Rate Swap Contracts [Member] | Interest Expense [Member] | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' |
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | 0 | 0 | 27 |
Cash Flow Hedges [Member] | Derivatives Designated as Hedging Instrument [Member] | Foreign Exchange Contracts [Member] | Cost of Sales [Member] | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' |
Derivative Instruments, Gain (Loss) Reclassified from OCI into Income, Effective Portion, Net | 13 | 8 | -5 |
Cash Flow Hedges [Member] | Derivatives Designated as Hedging Instrument [Member] | Foreign Exchange Contracts [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' |
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | 10 | 7 | 0 |
Cash Flow Hedges [Member] | Derivatives Designated as Hedging Instrument [Member] | Treasury Lock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' |
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | $0 | $3 | $0 |
RESTRUCTURING_Details
RESTRUCTURING (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Apr. 30, 2013 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Employee | ||||
A summary of the charges in the consolidated statement of operations resulting from all restructuring plans | ' | ' | ' | ' |
Income statement expense | ' | $53 | $0 | $2 |
Ending Balance | ' | 24 | ' | ' |
Restructuring and Related Cost, Positions Eliminated [Abstract] | ' | ' | ' | ' |
Restructuring and Related Cost, Number of Positions Eliminated, Period Percent | 2.00% | ' | ' | ' |
Restructuring and Related Cost, Expected Number of Positions Eliminated | ' | 700 | ' | ' |
Summary Of Charges Income Resulting From All Restructuring Plans [Abstract] | ' | ' | ' | ' |
Cost of products and services | ' | 19 | ' | ' |
Research and development | ' | 9 | ' | ' |
Selling, general and administrative | ' | 25 | ' | ' |
Total restructuring | ' | 53 | ' | ' |
Targeted Restructuring Plan [Member] | ' | ' | ' | ' |
Restructuring and Related Cost, Positions Eliminated [Abstract] | ' | ' | ' | ' |
Restructuring and Related Cost, Number of Positions Eliminated | ' | 250 | ' | ' |
Restructuring and Related Cost, Expected Number of Positions Eliminated | ' | 450 | ' | ' |
Manufacturing Streamlining [Member] | ' | ' | ' | ' |
Restructuring and Related Cost, Positions Eliminated [Abstract] | ' | ' | ' | ' |
Restructuring and Related Cost, Number of Positions Eliminated | ' | 100 | ' | ' |
Restructuring and Related Cost, Expected Number of Positions Eliminated | ' | 250 | ' | ' |
Workforce Reduction [Member] | ' | ' | ' | ' |
A summary of the charges in the consolidated statement of operations resulting from all restructuring plans | ' | ' | ' | ' |
Beginning Balance | ' | 0 | ' | ' |
Income statement expense | ' | 53 | ' | ' |
Cash payments | ' | -29 | ' | ' |
Ending Balance | ' | $24 | ' | ' |
RETIREMENT_PLANS_AND_POST_RETI2
RETIREMENT PLANS AND POST RETIREMENT PENSION PLANS, Components (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | ' | ' | ' |
Fair value of plan assets of the DPSP for US employees | $552 | $534 | ' |
Defined benefit obligation for DPSP for US Employees | 552 | 534 | ' |
Percentage maximum of an employees annual eligible compensation in the 401(k) plan (in hundredths) | 4.00% | ' | ' |
The amount of 401(k) plan expense included in income from operations | 25 | 25 | 24 |
Maximum contribution percentage of an employee's annual eligible compensation (in hundredths) | 50.00% | ' | ' |
Accumulated Prospective Benefit Obligation | 194 | ' | ' |
United States Pension Plans [Member] | ' | ' | ' |
Net periodic benefit cost (benefit) [Abstract] | ' | ' | ' |
Service cost - benefits earned during the period | 44 | 40 | 42 |
Interest cost on benefit obligation | 24 | 27 | 28 |
Expected return on plan assets | -51 | -46 | -44 |
Amortization of net actuarial loss | 13 | 7 | 4 |
Amortization of prior service benefit | -12 | -12 | -12 |
Net periodic benefit cost (benefit) | 18 | 16 | 18 |
Curtailments and settlements | 0 | 0 | -1 |
Total periodic benefit cost (benefit) | 18 | 16 | 17 |
Other changes in plan assets and benefit obligations recognized in other comprehensive (income) loss [Abstract] | ' | ' | ' |
Net actuarial (gain) loss | -122 | 69 | 31 |
Amortization of net actuarial loss | -13 | -7 | -4 |
Prior service cost (benefit) | 0 | 0 | 0 |
Amortization of prior service benefit | 12 | 12 | 12 |
Foreign currency | 0 | 0 | 0 |
Total recognized in other comprehensive (income) loss | -123 | 74 | 39 |
Total recognized in net periodic benefit cost (benefit) and other comprehensive (income) loss | -105 | 90 | 56 |
Change in fair value of plan assets: [Roll Forward] | ' | ' | ' |
Balance, beginning of year | 654 | 578 | ' |
Actual return on plan assets | 132 | 65 | ' |
Employer contributions | 30 | 30 | ' |
Participants' contributions | 0 | 0 | ' |
Benefits paid | -34 | -19 | ' |
Currency impact | 0 | 0 | ' |
Balance, end of year | 782 | 654 | 578 |
Change in benefit obligation: [Roll Forward] | ' | ' | ' |
Balance, beginning of year | 771 | 637 | ' |
Service cost | 44 | 40 | ' |
Interest cost | 24 | 27 | 28 |
Participants' contributions | 0 | 0 | ' |
Plan amendment | 0 | 0 | ' |
Actuarial (gain) loss | -41 | 87 | ' |
Benefits paid | -35 | -20 | ' |
Curtailments | 0 | 0 | ' |
Currency impact | 0 | 0 | ' |
Balance, end of year | 763 | 771 | 637 |
Funded status of plan [Abstract] | ' | ' | ' |
Funded status of plan | 19 | -117 | ' |
Foreign Pension Plans [Member] | ' | ' | ' |
Net periodic benefit cost (benefit) [Abstract] | ' | ' | ' |
Service cost - benefits earned during the period | 36 | 33 | 32 |
Interest cost on benefit obligation | 68 | 74 | 72 |
Expected return on plan assets | -97 | -92 | -94 |
Amortization of net actuarial loss | 55 | 42 | 40 |
Amortization of prior service benefit | -1 | -1 | -1 |
Net periodic benefit cost (benefit) | 61 | 56 | 49 |
Curtailments and settlements | 0 | 0 | 0 |
Total periodic benefit cost (benefit) | 61 | 56 | 49 |
Other changes in plan assets and benefit obligations recognized in other comprehensive (income) loss [Abstract] | ' | ' | ' |
Net actuarial (gain) loss | -85 | 214 | 40 |
Amortization of net actuarial loss | -55 | -42 | -40 |
Prior service cost (benefit) | 0 | 0 | 6 |
Amortization of prior service benefit | 1 | 1 | 1 |
Foreign currency | 2 | -5 | 11 |
Total recognized in other comprehensive (income) loss | -137 | 168 | 18 |
Total recognized in net periodic benefit cost (benefit) and other comprehensive (income) loss | -76 | 224 | 67 |
Change in fair value of plan assets: [Roll Forward] | ' | ' | ' |
Balance, beginning of year | 1,801 | 1,684 | ' |
Actual return on plan assets | 267 | 158 | ' |
Employer contributions | 89 | 54 | ' |
Participants' contributions | 1 | 0 | ' |
Benefits paid | -49 | -46 | ' |
Currency impact | -64 | -49 | ' |
Balance, end of year | 2,045 | 1,801 | 1,684 |
Change in benefit obligation: [Roll Forward] | ' | ' | ' |
Balance, beginning of year | 2,117 | 1,830 | ' |
Service cost | 36 | 33 | ' |
Interest cost | 68 | 74 | 72 |
Participants' contributions | 1 | 0 | ' |
Plan amendment | 0 | 0 | ' |
Actuarial (gain) loss | 85 | 280 | ' |
Benefits paid | -49 | -46 | ' |
Curtailments | 0 | 0 | ' |
Currency impact | -59 | -54 | ' |
Balance, end of year | 2,199 | 2,117 | 1,830 |
Funded status of plan [Abstract] | ' | ' | ' |
Funded status of plan | -154 | -316 | ' |
United States Postretirement Benefit Plan [Member] | ' | ' | ' |
Net periodic benefit cost (benefit) [Abstract] | ' | ' | ' |
Service cost - benefits earned during the period | 4 | 3 | 3 |
Interest cost on benefit obligation | 12 | 15 | 21 |
Expected return on plan assets | -20 | -19 | -21 |
Amortization of net actuarial loss | 18 | 16 | 14 |
Amortization of prior service benefit | -35 | -35 | -26 |
Net periodic benefit cost (benefit) | -21 | -20 | -9 |
Curtailments and settlements | 0 | 0 | 0 |
Total periodic benefit cost (benefit) | -21 | -20 | -9 |
Other changes in plan assets and benefit obligations recognized in other comprehensive (income) loss [Abstract] | ' | ' | ' |
Net actuarial (gain) loss | -57 | 22 | 12 |
Amortization of net actuarial loss | -18 | -16 | -14 |
Prior service cost (benefit) | 0 | 0 | -194 |
Amortization of prior service benefit | 35 | 35 | 26 |
Foreign currency | 0 | 0 | 0 |
Total recognized in other comprehensive (income) loss | -40 | 41 | -170 |
Total recognized in net periodic benefit cost (benefit) and other comprehensive (income) loss | -61 | 21 | -179 |
Change in fair value of plan assets: [Roll Forward] | ' | ' | ' |
Balance, beginning of year | 261 | 258 | ' |
Actual return on plan assets | 47 | 25 | ' |
Employer contributions | 1 | 0 | ' |
Participants' contributions | 0 | 0 | ' |
Benefits paid | -21 | -22 | ' |
Currency impact | 0 | 0 | ' |
Balance, end of year | 288 | 261 | 258 |
Change in benefit obligation: [Roll Forward] | ' | ' | ' |
Balance, beginning of year | 343 | 319 | ' |
Service cost | 4 | 3 | ' |
Interest cost | 12 | 15 | 21 |
Participants' contributions | 0 | 0 | ' |
Plan amendment | 0 | 0 | ' |
Actuarial (gain) loss | -31 | 28 | ' |
Benefits paid | -21 | -22 | ' |
Curtailments | 0 | 0 | ' |
Currency impact | 0 | 0 | ' |
Balance, end of year | 307 | 343 | 319 |
Funded status of plan [Abstract] | ' | ' | ' |
Funded status of plan | ($19) | ($82) | ' |
RETIREMENT_PLANS_AND_POST_RETI3
RETIREMENT PLANS AND POST RETIREMENT PENSION PLANS, Financial Statement Location (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 |
United States Pension Plans [Member] | ' | ' |
Amounts recognized in the consolidated balance sheet [Abstract] | ' | ' |
Other assets | $34 | $0 |
Employee compensation and benefits | -2 | -2 |
Retirement and post-retirement benefits | -13 | -115 |
Net asset (liability) | 19 | -117 |
Amounts Recognized in Accumulated Other Comprehensive Income (loss): [Abstract] | ' | ' |
Actuarial (gains) losses | 8 | -127 |
Prior service costs (benefits) | -67 | -79 |
Total | -75 | 48 |
Accumulated other comprehensive income expected to be recognized as components of net expense during the next fiscal year [Abstract] | ' | ' |
Amortization of net prior service cost (benefit) | -12 | ' |
Amortization of actuarial net loss (gain) | -1 | ' |
Foreign Pension Plans [Member] | ' | ' |
Amounts recognized in the consolidated balance sheet [Abstract] | ' | ' |
Other assets | 60 | 0 |
Employee compensation and benefits | 0 | 0 |
Retirement and post-retirement benefits | -214 | -316 |
Net asset (liability) | -154 | -316 |
Amounts Recognized in Accumulated Other Comprehensive Income (loss): [Abstract] | ' | ' |
Actuarial (gains) losses | -525 | -683 |
Prior service costs (benefits) | -4 | -8 |
Total | 521 | 675 |
Accumulated other comprehensive income expected to be recognized as components of net expense during the next fiscal year [Abstract] | ' | ' |
Amortization of net prior service cost (benefit) | -1 | ' |
Amortization of actuarial net loss (gain) | 45 | ' |
United States Postretirement Benefit Plan [Member] | ' | ' |
Amounts recognized in the consolidated balance sheet [Abstract] | ' | ' |
Other assets | 0 | 0 |
Employee compensation and benefits | 0 | 0 |
Retirement and post-retirement benefits | -19 | -82 |
Net asset (liability) | -19 | -82 |
Amounts Recognized in Accumulated Other Comprehensive Income (loss): [Abstract] | ' | ' |
Actuarial (gains) losses | -119 | -194 |
Prior service costs (benefits) | -183 | -218 |
Total | -64 | -24 |
Accumulated other comprehensive income expected to be recognized as components of net expense during the next fiscal year [Abstract] | ' | ' |
Amortization of net prior service cost (benefit) | -35 | ' |
Amortization of actuarial net loss (gain) | $14 | ' |
RETIREMENT_PLANS_AND_POST_RETI4
RETIREMENT PLANS AND POST RETIREMENT PENSION PLANS RETIREMENT PLANS AND POST RETIREMENT PENSION PLANS, Target Allocations (Details) | 12 Months Ended | ||
Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | |
Foreign Pension Plans [Member] | Real Estate Investment [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Target Allocation Percentage of Plan Assets, minimum range | 0.00% | ' | ' |
Target Allocation Percentage of Plan Assets, maximum range | 6.00% | ' | ' |
Foreign Pension Plans [Member] | Cash [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Target Allocation Percentage of Plan Assets, minimum range | 0.00% | ' | ' |
Target Allocation Percentage of Plan Assets, maximum range | 7.00% | ' | ' |
Foreign Pension Plans [Member] | Fixed Income Securities [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Target Allocation Percentage of Plan Assets, minimum range | 40.00% | ' | ' |
Target Allocation Percentage of Plan Assets, maximum range | 60.00% | ' | ' |
Foreign Pension Plans [Member] | Equity Securities [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Target Allocation Percentage of Plan Assets, minimum range | 37.00% | ' | ' |
Target Allocation Percentage of Plan Assets, maximum range | 60.00% | ' | ' |
Deferred Profit Sharing [Member] | Fixed Income Securities [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Target Allocation Percentage of Plan Assets | 40.00% | 40.00% | 40.00% |
Deferred Profit Sharing [Member] | Equity Securities [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Target Allocation Percentage of Plan Assets | 60.00% | 60.00% | 60.00% |
United States Pension Plans [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan Us Portfolio Equity Securities Percentage Of Alternative Investments | 5.00% | 5.00% | 5.00% |
United States Pension Plans [Member] | Fixed Income Securities [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Target Allocation Percentage of Plan Assets | 20.00% | 20.00% | 20.00% |
United States Pension Plans [Member] | Equity Securities [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Target Allocation Percentage of Plan Assets | 80.00% | 80.00% | 80.00% |
United States Postretirement Benefit Plan [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan Us Portfolio Equity Securities Percentage Of Alternative Investments | 5.00% | 5.00% | 5.00% |
United States Postretirement Benefit Plan [Member] | Fixed Income Securities [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Target Allocation Percentage of Plan Assets | 20.00% | 20.00% | 20.00% |
United States Postretirement Benefit Plan [Member] | Equity Securities [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Target Allocation Percentage of Plan Assets | 80.00% | 80.00% | 80.00% |
RETIREMENT_PLANS_AND_POST_RETI5
RETIREMENT PLANS AND POST RETIREMENT PENSION PLANS, Fair Value of Plan Assets (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
United States Pension Plans [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | $782 | $654 | $578 |
Defined Benefit plan, change in fair value of plan assets, significant unobservable inputs (Level 3) (Roll Forward] | ' | ' | ' |
Balance, beginning of year | 21 | 26 | ' |
Realized gains | 4 | 3 | ' |
Unrealized gains/(losses) | -2 | -2 | ' |
Purchases, sales, issuances, and settlements | -6 | -6 | ' |
Transfers in (out) | 0 | 0 | ' |
Balance, end of year | 17 | 21 | ' |
Projected benefit obligation and fair value of plan assets [Abstract] | ' | ' | ' |
Projected benefit obligation in excess of plan assets - aggregate benefit obligation | 15 | 771 | ' |
Fair value of plan assets in excess of projected benefit obligation - aggregate benefit obligation | 748 | 0 | ' |
Total projected benefit obligation - aggregate benefit obligation | 763 | 771 | ' |
Accumulated benefit obligation in excess of fair value of plan assets - aggregate benefit obligation | 14 | 749 | ' |
Fair value of plan assets in excess of accumulated benefit obligation - aggregate benefit obligation | 716 | 0 | ' |
Total accumulated benefit obligation - aggregate benefit obligation | 730 | 749 | ' |
Projected benefit obligation in excess of fair value of plan assets - aggregate fair value of plan assets | 0 | 654 | ' |
Fair value of plan assets in excess of benefit obligation - aggregate fair value of plan assets | 782 | 0 | ' |
Total projected benefit obligation - aggregate fair value of plan assets | 782 | 654 | ' |
Accumulated benefit obligation in excess of accumulated benefit obligation - aggregate fair value of plan assets | 0 | 654 | ' |
Fair value of plan assets in excess of accumulated benefit obligation - aggregate fair value of plan assets | 782 | 0 | ' |
Total accumulated benefit obligation - aggregate fair value of plan assets | 782 | 654 | ' |
Fair value of plan assets [Abstract] | ' | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 782 | 654 | ' |
United States Pension Plans [Member] | Cash and Cash Equivalents [Member] | ' | ' | ' |
Fair value of plan assets [Abstract] | ' | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 8 | 8 | ' |
United States Pension Plans [Member] | Equity Securities [Member] | ' | ' | ' |
Fair value of plan assets [Abstract] | ' | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 616 | 486 | ' |
United States Pension Plans [Member] | Fixed Income Funds [Member] | ' | ' | ' |
Fair value of plan assets [Abstract] | ' | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 139 | 137 | ' |
United States Pension Plans [Member] | Other Plan Assets [Member] | ' | ' | ' |
Fair value of plan assets [Abstract] | ' | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 19 | 23 | ' |
United States Pension Plans [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' | ' |
Fair value of plan assets [Abstract] | ' | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 211 | 152 | ' |
United States Pension Plans [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Cash and Cash Equivalents [Member] | ' | ' | ' |
Fair value of plan assets [Abstract] | ' | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 1 | 1 | ' |
United States Pension Plans [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Equity Securities [Member] | ' | ' | ' |
Fair value of plan assets [Abstract] | ' | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 191 | 134 | ' |
United States Pension Plans [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fixed Income Funds [Member] | ' | ' | ' |
Fair value of plan assets [Abstract] | ' | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 17 | 15 | ' |
United States Pension Plans [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Other Plan Assets [Member] | ' | ' | ' |
Fair value of plan assets [Abstract] | ' | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 2 | 2 | ' |
United States Pension Plans [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ' |
Fair value of plan assets [Abstract] | ' | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 554 | 481 | ' |
United States Pension Plans [Member] | Significant Other Observable Inputs (Level 2) [Member] | Cash and Cash Equivalents [Member] | ' | ' | ' |
Fair value of plan assets [Abstract] | ' | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 7 | 7 | ' |
United States Pension Plans [Member] | Significant Other Observable Inputs (Level 2) [Member] | Equity Securities [Member] | ' | ' | ' |
Fair value of plan assets [Abstract] | ' | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 425 | 352 | ' |
United States Pension Plans [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fixed Income Funds [Member] | ' | ' | ' |
Fair value of plan assets [Abstract] | ' | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 122 | 122 | ' |
United States Pension Plans [Member] | Significant Other Observable Inputs (Level 2) [Member] | Other Plan Assets [Member] | ' | ' | ' |
Fair value of plan assets [Abstract] | ' | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 0 | 0 | ' |
United States Pension Plans [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' | ' |
Fair value of plan assets [Abstract] | ' | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 17 | 21 | ' |
United States Pension Plans [Member] | Significant Unobservable Inputs (Level 3) [Member] | Cash and Cash Equivalents [Member] | ' | ' | ' |
Fair value of plan assets [Abstract] | ' | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 0 | 0 | ' |
United States Pension Plans [Member] | Significant Unobservable Inputs (Level 3) [Member] | Equity Securities [Member] | ' | ' | ' |
Fair value of plan assets [Abstract] | ' | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 0 | 0 | ' |
United States Pension Plans [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fixed Income Funds [Member] | ' | ' | ' |
Fair value of plan assets [Abstract] | ' | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 0 | 0 | ' |
United States Pension Plans [Member] | Significant Unobservable Inputs (Level 3) [Member] | Other Plan Assets [Member] | ' | ' | ' |
Fair value of plan assets [Abstract] | ' | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 17 | 21 | ' |
Foreign Pension Plans [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | 2,045 | 1,801 | 1,684 |
Projected benefit obligation and fair value of plan assets [Abstract] | ' | ' | ' |
Projected benefit obligation in excess of plan assets - aggregate benefit obligation | 1,697 | 2,117 | ' |
Fair value of plan assets in excess of projected benefit obligation - aggregate benefit obligation | 502 | 0 | ' |
Total projected benefit obligation - aggregate benefit obligation | 2,199 | 2,117 | ' |
Accumulated benefit obligation in excess of fair value of plan assets - aggregate benefit obligation | 1,533 | 2,034 | ' |
Fair value of plan assets in excess of accumulated benefit obligation - aggregate benefit obligation | 590 | 0 | ' |
Total accumulated benefit obligation - aggregate benefit obligation | 2,123 | 2,034 | ' |
Projected benefit obligation in excess of fair value of plan assets - aggregate fair value of plan assets | 1,482 | 1,801 | ' |
Fair value of plan assets in excess of benefit obligation - aggregate fair value of plan assets | 563 | 0 | ' |
Total projected benefit obligation - aggregate fair value of plan assets | 2,045 | 1,801 | ' |
Accumulated benefit obligation in excess of accumulated benefit obligation - aggregate fair value of plan assets | 1,380 | 1,801 | ' |
Fair value of plan assets in excess of accumulated benefit obligation - aggregate fair value of plan assets | 665 | 0 | ' |
Total accumulated benefit obligation - aggregate fair value of plan assets | 2,045 | 1,801 | ' |
Fair value of plan assets [Abstract] | ' | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 2,045 | 1,801 | ' |
Foreign Pension Plans [Member] | Cash and Cash Equivalents [Member] | ' | ' | ' |
Fair value of plan assets [Abstract] | ' | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 10 | 3 | ' |
Foreign Pension Plans [Member] | Equity Securities [Member] | ' | ' | ' |
Fair value of plan assets [Abstract] | ' | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 1,078 | 861 | ' |
Foreign Pension Plans [Member] | Fixed Income Funds [Member] | ' | ' | ' |
Fair value of plan assets [Abstract] | ' | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 919 | 900 | ' |
Foreign Pension Plans [Member] | Other Plan Assets [Member] | ' | ' | ' |
Fair value of plan assets [Abstract] | ' | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 38 | 37 | ' |
Foreign Pension Plans [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' | ' |
Fair value of plan assets [Abstract] | ' | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 330 | 248 | ' |
Foreign Pension Plans [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Cash and Cash Equivalents [Member] | ' | ' | ' |
Fair value of plan assets [Abstract] | ' | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 10 | 3 | ' |
Foreign Pension Plans [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Equity Securities [Member] | ' | ' | ' |
Fair value of plan assets [Abstract] | ' | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 296 | 226 | ' |
Foreign Pension Plans [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fixed Income Funds [Member] | ' | ' | ' |
Fair value of plan assets [Abstract] | ' | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 24 | 19 | ' |
Foreign Pension Plans [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Other Plan Assets [Member] | ' | ' | ' |
Fair value of plan assets [Abstract] | ' | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 0 | 0 | ' |
Foreign Pension Plans [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ' |
Fair value of plan assets [Abstract] | ' | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 1,715 | 1,553 | ' |
Foreign Pension Plans [Member] | Significant Other Observable Inputs (Level 2) [Member] | Cash and Cash Equivalents [Member] | ' | ' | ' |
Fair value of plan assets [Abstract] | ' | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 0 | 0 | ' |
Foreign Pension Plans [Member] | Significant Other Observable Inputs (Level 2) [Member] | Equity Securities [Member] | ' | ' | ' |
Fair value of plan assets [Abstract] | ' | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 782 | 635 | ' |
Foreign Pension Plans [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fixed Income Funds [Member] | ' | ' | ' |
Fair value of plan assets [Abstract] | ' | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 895 | 881 | ' |
Foreign Pension Plans [Member] | Significant Other Observable Inputs (Level 2) [Member] | Other Plan Assets [Member] | ' | ' | ' |
Fair value of plan assets [Abstract] | ' | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 38 | 37 | ' |
Foreign Pension Plans [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' | ' |
Fair value of plan assets [Abstract] | ' | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 0 | 0 | ' |
Foreign Pension Plans [Member] | Significant Unobservable Inputs (Level 3) [Member] | Cash and Cash Equivalents [Member] | ' | ' | ' |
Fair value of plan assets [Abstract] | ' | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 0 | 0 | ' |
Foreign Pension Plans [Member] | Significant Unobservable Inputs (Level 3) [Member] | Equity Securities [Member] | ' | ' | ' |
Fair value of plan assets [Abstract] | ' | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 0 | 0 | ' |
Foreign Pension Plans [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fixed Income Funds [Member] | ' | ' | ' |
Fair value of plan assets [Abstract] | ' | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 0 | 0 | ' |
Foreign Pension Plans [Member] | Significant Unobservable Inputs (Level 3) [Member] | Other Plan Assets [Member] | ' | ' | ' |
Fair value of plan assets [Abstract] | ' | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 0 | 0 | ' |
United States Postretirement Benefit Plan [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | 288 | 261 | 258 |
Defined Benefit plan, change in fair value of plan assets, significant unobservable inputs (Level 3) (Roll Forward] | ' | ' | ' |
Balance, beginning of year | 12 | 15 | ' |
Realized gains | 2 | 2 | ' |
Unrealized gains/(losses) | -1 | -1 | ' |
Purchases, sales, issuances, and settlements | -3 | -4 | ' |
Transfers in (out) | 0 | 0 | ' |
Balance, end of year | 10 | 12 | ' |
Fair value of plan assets [Abstract] | ' | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 288 | 261 | ' |
United States Postretirement Benefit Plan [Member] | Cash and Cash Equivalents [Member] | ' | ' | ' |
Fair value of plan assets [Abstract] | ' | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 5 | 5 | ' |
United States Postretirement Benefit Plan [Member] | Equity Securities [Member] | ' | ' | ' |
Fair value of plan assets [Abstract] | ' | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 220 | 189 | ' |
United States Postretirement Benefit Plan [Member] | Fixed Income Funds [Member] | ' | ' | ' |
Fair value of plan assets [Abstract] | ' | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 52 | 54 | ' |
United States Postretirement Benefit Plan [Member] | Other Plan Assets [Member] | ' | ' | ' |
Fair value of plan assets [Abstract] | ' | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 11 | 13 | ' |
United States Postretirement Benefit Plan [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' | ' |
Fair value of plan assets [Abstract] | ' | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 77 | 61 | ' |
United States Postretirement Benefit Plan [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Cash and Cash Equivalents [Member] | ' | ' | ' |
Fair value of plan assets [Abstract] | ' | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 2 | 2 | ' |
United States Postretirement Benefit Plan [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Equity Securities [Member] | ' | ' | ' |
Fair value of plan assets [Abstract] | ' | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 68 | 52 | ' |
United States Postretirement Benefit Plan [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fixed Income Funds [Member] | ' | ' | ' |
Fair value of plan assets [Abstract] | ' | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 6 | 6 | ' |
United States Postretirement Benefit Plan [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Other Plan Assets [Member] | ' | ' | ' |
Fair value of plan assets [Abstract] | ' | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 1 | 1 | ' |
United States Postretirement Benefit Plan [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ' |
Fair value of plan assets [Abstract] | ' | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 201 | 188 | ' |
United States Postretirement Benefit Plan [Member] | Significant Other Observable Inputs (Level 2) [Member] | Cash and Cash Equivalents [Member] | ' | ' | ' |
Fair value of plan assets [Abstract] | ' | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 3 | 3 | ' |
United States Postretirement Benefit Plan [Member] | Significant Other Observable Inputs (Level 2) [Member] | Equity Securities [Member] | ' | ' | ' |
Fair value of plan assets [Abstract] | ' | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 152 | 137 | ' |
United States Postretirement Benefit Plan [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fixed Income Funds [Member] | ' | ' | ' |
Fair value of plan assets [Abstract] | ' | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 46 | 48 | ' |
United States Postretirement Benefit Plan [Member] | Significant Other Observable Inputs (Level 2) [Member] | Other Plan Assets [Member] | ' | ' | ' |
Fair value of plan assets [Abstract] | ' | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 0 | 0 | ' |
United States Postretirement Benefit Plan [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' | ' |
Fair value of plan assets [Abstract] | ' | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 10 | 12 | ' |
United States Postretirement Benefit Plan [Member] | Significant Unobservable Inputs (Level 3) [Member] | Cash and Cash Equivalents [Member] | ' | ' | ' |
Fair value of plan assets [Abstract] | ' | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 0 | 0 | ' |
United States Postretirement Benefit Plan [Member] | Significant Unobservable Inputs (Level 3) [Member] | Equity Securities [Member] | ' | ' | ' |
Fair value of plan assets [Abstract] | ' | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 0 | 0 | ' |
United States Postretirement Benefit Plan [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fixed Income Funds [Member] | ' | ' | ' |
Fair value of plan assets [Abstract] | ' | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 0 | 0 | ' |
United States Postretirement Benefit Plan [Member] | Significant Unobservable Inputs (Level 3) [Member] | Other Plan Assets [Member] | ' | ' | ' |
Fair value of plan assets [Abstract] | ' | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | $10 | $12 | ' |
RETIREMENT_PLANS_AND_POST_RETI6
RETIREMENT PLANS AND POST RETIREMENT PENSION PLANS, Expected Benefit Payments (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 |
United States Pension Plans [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year | $30 | ' |
Future benefit payments [Abstract] | ' | ' |
2014 | ' | 41 |
2015 | ' | 44 |
2016 | ' | 49 |
2017 | ' | 56 |
2018 | ' | 57 |
2019 - 2023 | ' | 362 |
Foreign Pension Plans [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year | 71 | ' |
Future benefit payments [Abstract] | ' | ' |
2014 | ' | 51 |
2015 | ' | 56 |
2016 | ' | 60 |
2017 | ' | 62 |
2018 | ' | 70 |
2019 - 2023 | ' | 448 |
United States Postretirement Benefit Plan [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year | 2 | ' |
Future benefit payments [Abstract] | ' | ' |
2014 | ' | 24 |
2015 | ' | 24 |
2016 | ' | 25 |
2017 | ' | 24 |
2018 | ' | 24 |
2019 - 2023 | ' | $116 |
RETIREMENT_PLANS_AND_POST_RETI7
RETIREMENT PLANS AND POST RETIREMENT PENSION PLANS, Assumptions (Details) | 12 Months Ended | ||
Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | |
United States Pension Plans [Member] | ' | ' | ' |
Weighted average assumptions used in calculating net periodic benefit cost [Abstract] | ' | ' | ' |
Discount rate - net periodic rate (in hundredths) | 3.25% | 4.50% | 5.00% |
Average increasee in compensation levels - net periodic costs (in hundredths) | 3.50% | 3.50% | 3.50% |
Expected long-term return on assets - net periodic costs (in hundredths) | 8.00% | 8.00% | 8.25% |
Weighted average assumptions used in calculating benefit obligation [Abstract] | ' | ' | ' |
Discount rate - benefit obligation (in hundredths) | 4.50% | 3.25% | ' |
Average increase in compensation levels - net periodic costs (in hundredths) | 3.50% | 3.50% | ' |
Foreign Pension Plans [Member] | ' | ' | ' |
Weighted average assumptions used in calculating net periodic benefit cost [Abstract] | ' | ' | ' |
Discount rate minimum - net periodic cost (in hundredths) | 1.50% | 2.00% | 2.00% |
Discount rate maximum - net periodic costs (in hundredths) | 4.50% | 5.50% | 5.25% |
Average increase in compensation levels - net periodic costs - minimum (in hundredths) | 2.50% | 2.50% | 2.50% |
Average increase in compensation levels - net periodic costs - maximum (in hundredths) | 3.00% | 3.25% | 3.75% |
Expected long-term return on assets - net periodic costs - minimum (in hundredths) | 4.00% | 4.00% | 4.00% |
Expected long-term return on assets - net periodic costs - maximum (in hundredths) | 6.50% | 6.50% | 6.75% |
Weighted average assumptions used in calculating benefit obligation [Abstract] | ' | ' | ' |
Discount rate minimum - benefit obligation (in hundredths) | 1.75% | 1.50% | ' |
Discount rate maximum - benefit obligation (in hundredths) | 4.25% | 4.50% | ' |
Average increase in compensation levels minimum - benefit obligation (in hundredths) | 2.50% | 2.50% | ' |
Average increase in compensation levels maximum - benefit obligation (in hundredths) | 3.25% | 3.00% | ' |
United States Postretirement Benefit Plan [Member] | ' | ' | ' |
Weighted average assumptions used in calculating net periodic benefit cost [Abstract] | ' | ' | ' |
Discount rate - net periodic rate (in hundredths) | 3.50% | 4.75% | 5.50% |
Expected long-term return on assets - net periodic costs (in hundredths) | 8.00% | 8.00% | 8.25% |
Current medical cost trend rate (in hundredths) | 9.00% | 9.00% | 10.00% |
Ultimate medical cost trend rate (in hundredths) | 3.50% | 4.50% | 4.75% |
Medical cost trend rate decreases to ultimate rate in year | '2027 | '2026 | '2025 |
Weighted average assumptions used in calculating benefit obligation [Abstract] | ' | ' | ' |
Discount rate - benefit obligation (in hundredths) | 4.25% | 3.50% | ' |
Current medical cost trend rate - benefit obligation (in hundredths) | 9.00% | 9.00% | ' |
Ultimate medical cost trend rate - benefit obligation (in hundredths) | 3.50% | 3.50% | ' |
Medical cost trend rate decreases to ultimate rate in year - benefit obligation | '2028 | '2027 | ' |
GUARANTEES_Details
GUARANTEES (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 |
Summary of standard warranty accrual activity | ' | ' |
Beginning balance | $60 | $50 |
Reserve acquired upon close of Dako acquisition | 0 | 1 |
Accruals for warranties including change in estimates | 92 | 87 |
Settlements made during the period | -83 | -78 |
Ending balance | 69 | 60 |
Standard Product Warranty Accrual, Balance Sheet Classification [Abstract] | ' | ' |
Accruals for warranties due within one year | 48 | 51 |
Accruals for warranties due after one year | 21 | 9 |
Balance as of October 31,2013 and 2012 | $69 | $60 |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ' | ' | ' |
Future minimum lease payments 2014 | $56 | ' | ' |
Future minimum lease payments 2015 | 47 | ' | ' |
Future minimum lease payments 2016 | 31 | ' | ' |
Future minimum lease payments 2017 | 21 | ' | ' |
Future minimum lease payments 2018 | 12 | ' | ' |
Future minimum lease payments thereafter | 6 | ' | ' |
Operating Leases, Future Minimum Payments Receivable [Abstract] | ' | ' | ' |
Future minimum sublease income 2014 | 6 | ' | ' |
Future minimum sublease income 2015 | 5 | ' | ' |
Future minimum sublease income 2016 | 3 | ' | ' |
Future minimum sublease income 2017 | 2 | ' | ' |
Future minimum sublease income thereafter | 0 | ' | ' |
Total rent expense | $90 | $84 | $82 |
SHORTTERM_DEBT_Credit_Facility
SHORT-TERM DEBT - Credit Facility (Details) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | 0 Months Ended | ||||
In Millions, unless otherwise specified | Sep. 30, 2027 | Oct. 20, 2011 | Oct. 31, 2013 | Oct. 20, 2011 | Oct. 31, 2013 | Jul. 13, 2010 | Jul. 01, 2010 | Sep. 09, 2009 |
Line of Credit Facility - Primary Agreement [Member] | Dako [Member] | Senior Notes 2013 [Member] | Senior Notes 2013 [Member] | Senior Notes 2012 [Member] | ||||
Line of Credit Facility [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility initiation date | ' | 20-Oct-11 | ' | ' | ' | ' | ' | ' |
Line of credit facility, revolving credit, description | ' | ' | 'On OctoberB 20, 2011, we entered into a five-year credit agreement, which provides for a $400 million unsecured credit facility that will expire on OctoberB 20, 2016. The company may use amounts borrowed under the facility for general corporate purposes. As of OctoberB 31, 2013 the company has no borrowings outstanding under the facility. We were in compliance with the covenants for the credit facilities during the year ended OctoberB 31, 2013. | ' | ' | ' | ' | ' |
Credit facility - initial borrowing capacity | ' | ' | ' | $400 | ' | ' | ' | ' |
Line of credit facility expiration date | ' | 20-Oct-16 | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity | ' | ' | ' | ' | 9 | ' | ' | ' |
Debt Instrument, Issuance Date | ' | ' | ' | ' | ' | 13-Jul-10 | ' | 9-Sep-09 |
Debt Instrument, Face Amount | ' | ' | ' | ' | ' | ' | $250 | $250 |
Debt Instrument, Maturity Date | 30-Sep-27 | ' | ' | ' | ' | 15-Jul-13 | ' | 14-Sep-12 |
SHORTTERM_DEBT_Senior_Notes_De
SHORT-TERM DEBT - Senior Notes (Details) | 0 Months Ended | ||
Sep. 30, 2027 | Sep. 09, 2009 | Jul. 13, 2010 | |
Senior Notes 2012 [Member] | Senior Notes 2013 [Member] | ||
Short-term Debt [Line Items] | ' | ' | ' |
Issuance date of Debt | ' | 9-Sep-09 | 13-Jul-10 |
Maturity date | 30-Sep-27 | 14-Sep-12 | 15-Jul-13 |
LONGTERM_DEBT_Carrying_Value_D
LONG-TERM DEBT - Carrying Value (Details) (USD $) | Oct. 31, 2013 | Oct. 31, 2012 |
In Millions, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Amortized Principal | $2,593 | $1,995 |
Interest Rate Swap | 60 | 73 |
Total | 2,653 | 2,068 |
Senior Notes 2015 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Amortized Principal | 500 | 499 |
Interest Rate Swap | 12 | 18 |
Total | 512 | 517 |
Senior Notes 2017 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Amortized Principal | 599 | 599 |
Interest Rate Swap | 22 | 26 |
Total | 621 | 625 |
Senior Notes 2020 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Amortized Principal | 498 | 498 |
Interest Rate Swap | 26 | 29 |
Total | 524 | 527 |
Senior Notes 2022 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Amortized Principal | 399 | 399 |
Interest Rate Swap | 0 | 0 |
Total | 399 | 399 |
Senior Notes 2023 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Amortized Principal | 597 | 0 |
Interest Rate Swap | 0 | 0 |
Total | $597 | $0 |
LONGTERM_DEBT_Components_and_A
LONG-TERM DEBT - Components and Additional Disclosures (Details) (USD $) | 0 Months Ended | 0 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2027 | Oct. 31, 2013 | Sep. 09, 2009 | Oct. 24, 2007 | Jul. 13, 2010 | Sep. 10, 2012 | Jun. 18, 2013 | Sep. 30, 2027 |
Senior Notes 2015 [Member] | Senior Notes 2017 [Member] | Senior Notes 2020 [Member] | Senior Notes 2022 [Member] | Senior Notes 2023 [Member] | Other Debt [Member] | |||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance date of Debt | ' | ' | 9-Sep-09 | 24-Oct-07 | 13-Jul-10 | 10-Sep-12 | 18-Jun-13 | ' |
Aggregate face amount of debt | ' | ' | $500 | $600 | $500 | $400 | $600 | ' |
Issue rate percentage of principal amount | ' | ' | 99.69% | 99.60% | 99.54% | 99.80% | 99.54% | ' |
Maturity date | 30-Sep-27 | ' | 14-Sep-15 | 1-Nov-17 | 15-Jul-20 | 1-Oct-22 | 15-Jul-23 | ' |
Fixed interest rate per annum (in hundredths) | ' | ' | 5.50% | 6.50% | 5.00% | 3.20% | 3.88% | ' |
Interest payment frequency | ' | ' | ' semi-annually | 'semi-annually | 'semi-annually | 'semi-annually | 'semi annually | ' March, June, September and December of each year |
Date payments commenced | ' | ' | 14-Mar-10 | 1-May-08 | 15-Jan-11 | 1-Apr-13 | 15-Jan-14 | ' |
Issuance cost incurred on Senior Notes offered | ' | ' | 3 | 5 | 3 | 3 | 5 | ' |
Mortgage Loans on Real Estate | ' | $46 | ' | ' | ' | ' | ' | ' |
LONGTERM_DEBT_Other_Details
LONG-TERM DEBT - Other (Details) (USD $) | 0 Months Ended | |||||||
In Millions, unless otherwise specified | Sep. 30, 2027 | Jun. 06, 2011 | Oct. 31, 2013 | Aug. 09, 2011 | Oct. 31, 2013 | Jun. 06, 2011 | Oct. 31, 2013 | Nov. 25, 2008 |
Senior Notes 2020 [Member] | Senior Notes 2020 [Member] | Senior Notes 2015 [Member] | Senior Notes 2015 [Member] | Senior Notes 2017 [Member] | Senior Notes 2017 [Member] | |||
contracts | ||||||||
Schedule Of Interest Rate Swaps Regarding Senior Notes Offered [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Maturity Date | 30-Sep-27 | ' | ' | ' | ' | ' | ' | ' |
Interest rate swaps terminated date | ' | 'JuneB 6, 2011 | ' | 'AugustB 9, 2011 | ' | ' | ' | 'NovemberB 25, 2008 |
Number of interest swaps terminated on specified date | ' | ' | ' | ' | ' | ' | ' | 2 |
Notional Amount of Terminated Interest Rate Swaps | ' | ' | ' | $500 | ' | $500 | ' | $400 |
Asset Value of Terminated Interest Rate Swaps | ' | ' | ' | 34 | ' | 31 | ' | 43 |
Amount to be amortized on terminated interest rate swaps associated with senior notes | ' | ' | $26 | ' | $12 | ' | $22 | ' |
STOCKHOLDERS_EQUITY_Details
STOCKHOLDERS' EQUITY (Details) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | ||||||||
Share data in Millions, except Per Share data, unless otherwise specified | Nov. 22, 2013 | 14-May-13 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | Oct. 31, 2012 | Oct. 31, 2011 | Jan. 16, 2013 | Nov. 19, 2009 | 14-May-13 | Jan. 16, 2013 | Nov. 30, 2013 | Oct. 31, 2013 |
2009 Share Repurchase Program [Member] | 2009 Share Repurchase Program [Member] | 2009 Share Repurchase Program [Member] | 2009 Share Repurchase Program [Member] | 2013 Share Repurchase Program [Member] | 2013 Share Repurchase Program [Member] | 2013 Share Repurchase Program [Member] | 2013 Share Repurchase Program [Member] | ||||||
Share Repurchase Program [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Repurchase Program, Authorized Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $500,000,000 | ' | ' |
Stock Repurchase Program, Authorized Increase Amount | ' | 500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Repurchase Program, New Authorized Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000,000 | ' | ' | ' |
Share repurchase program approval date | ' | ' | ' | ' | ' | ' | ' | ' | 'NovemberB 19, 2009 | ' | ' | ' | ' |
Share Repurchase Program Termination date | ' | ' | ' | ' | ' | ' | ' | 'January 16, 2013 | ' | ' | ' | ' | ' |
Period over which the stock will be purchased | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'until the end of the calendar year 2013 and any unused portion may be used in the calendar year 2014 | ' | ' |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000,000 |
Number of shares of common stock repurchased under share repurchase program | ' | ' | ' | ' | ' | 5 | 12 | ' | ' | ' | ' | ' | 20 |
Cost to repurchase shares of common stock under share repurchase program | ' | ' | 900,000,000 | 172,000,000 | 497,000,000 | 172,000,000 | 497,000,000 | ' | ' | ' | ' | 100,000,000 | 900,000,000 |
Weighted average count of diluted shares | 335 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividends [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash Dividends Declared (per common share) | $0.13 | ' | $0.46 | $0.30 | $0 | ' | ' | ' | ' | ' | ' | ' | ' |
percentage increase in quarterly dividend | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate cash dividends declared | ' | ' | 156,000,000 | 104,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate cash dividends paid ( per common share) | ' | ' | $0.46 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate cash dividends paid | ' | ' | 156,000,000 | 104,000,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' |
Dividends declaration date | 22-Nov-13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividends date of record | 31-Dec-13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividends payment date | 22-Jan-14 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrealized gain on equity securities, net of $2 of tax expense for 2013 | ' | ' | 7,000,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign currency translation, net of $102 of tax expense for 2013 and 2012 | ' | ' | 425,000,000 | 424,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrealized losses on defined benefit plans, net of tax benefit of $(64) and $(162) for 2013 and 2012, respectively | ' | ' | -341,000,000 | -537,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrealized gains (losses) on derivative instruments, net of tax expense of $2 and $3 for 2013 and 2012, respectively | ' | ' | 0 | 2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accumulated other comprehensive income (loss) | ' | ' | 91,000,000 | -111,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accumulated other Comprehensive Income (Loss), Tax [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrealized gain on equity securities, tax | ' | ' | -2,000,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign currency translation, tax | ' | ' | -102,000,000 | -102,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrealized losses on defined benefit plans, tax | ' | ' | 64,000,000 | 162,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrealized gains (losses) on derivative instruments, tax | ' | ' | ($2,000,000) | ($3,000,000) | ' | ' | ' | ' | ' | ' | ' | ' | ' |
SEGMENT_INFORMATION_Profitabil
SEGMENT INFORMATION Profitability (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
segment | |||
Segment Reporting [Abstract] | ' | ' | ' |
Number of operating segments | 3 | ' | ' |
Select income statement components (Loss) [Abstract] | ' | ' | ' |
Total net revenue | $6,782 | $6,858 | $6,615 |
Income from operations | 951 | 1,119 | 1,071 |
Depreciation expense | 181 | 171 | 142 |
Life Sciences and Diagnostics [Member] | ' | ' | ' |
Select income statement components (Loss) [Abstract] | ' | ' | ' |
Total segment revenue | ' | ' | 1,792 |
Varian acquisition deferred revenue fair value adjustment | ' | ' | -4 |
Total net revenue | 2,300 | 1,984 | 1,788 |
Income from operations | 377 | 295 | 237 |
Depreciation expense | 71 | 57 | 39 |
Share-based compensation expense | 26 | 21 | 20 |
Chemical Analysis [Member] | ' | ' | ' |
Select income statement components (Loss) [Abstract] | ' | ' | ' |
Total segment revenue | ' | ' | 1,518 |
Varian acquisition deferred revenue fair value adjustment | ' | ' | -7 |
Total net revenue | 1,594 | 1,559 | 1,511 |
Income from operations | 355 | 338 | 313 |
Depreciation expense | 27 | 31 | 28 |
Share-based compensation expense | 21 | 18 | 17 |
Electronic Measurement [Member] | ' | ' | ' |
Select income statement components (Loss) [Abstract] | ' | ' | ' |
Total segment revenue | ' | ' | 3,316 |
Varian acquisition deferred revenue fair value adjustment | ' | ' | 0 |
Total net revenue | 2,888 | 3,315 | 3,316 |
Income from operations | 544 | 751 | 760 |
Depreciation expense | 83 | 83 | 75 |
Share-based compensation expense | 38 | 37 | 36 |
Segment Total [Member] | ' | ' | ' |
Select income statement components (Loss) [Abstract] | ' | ' | ' |
Total segment revenue | ' | ' | 6,626 |
Varian acquisition deferred revenue fair value adjustment | ' | ' | -11 |
Total net revenue | 6,782 | 6,858 | 6,615 |
Income from operations | 1,276 | 1,384 | 1,310 |
Depreciation expense | 181 | 171 | 142 |
Share-based compensation expense | $85 | $76 | $73 |
SEGMENT_INFORMATION_Reconcilia
SEGMENT INFORMATION Reconciliation of Reportable Results (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Reconcilitation between statement results and enterprise results [Abstract] | ' | ' | ' |
Total reportable segments' income from operations | $1,276 | $1,384 | $1,310 |
Restructuring related costs | -53 | 0 | -2 |
Acceleration of depreciation for held and used assets | 0 | -15 | 0 |
Asset impairments | -3 | -1 | -9 |
Transformational programs | -19 | -25 | -51 |
Amortization of intangibles | -199 | -136 | -113 |
Acquisition and integration costs | -29 | -74 | -54 |
Acceleration of sharebased compensation expense related to workforce reduction | -3 | 0 | 0 |
One time and pre separation costs | -5 | 0 | 0 |
Varian acquisition related fair value adjustments | 0 | 0 | -9 |
Other | -14 | -14 | -1 |
Interest income | 7 | 9 | 14 |
Interest Expense | -107 | -101 | -86 |
Other income (expense), net | 8 | 16 | 33 |
Income before taxes | 859 | 1,043 | 1,032 |
Segment assets and capital expenditures [Abstract] | ' | ' | ' |
Assets | 8,044 | 7,997 | ' |
Capital expenditures | 195 | 194 | 188 |
Life Sciences and Diagnostics [Member] | ' | ' | ' |
Segment assets and capital expenditures [Abstract] | ' | ' | ' |
Assets | 4,291 | 4,072 | ' |
Capital expenditures | 77 | 56 | ' |
Chemical Analysis [Member] | ' | ' | ' |
Segment assets and capital expenditures [Abstract] | ' | ' | ' |
Assets | 1,756 | 1,768 | ' |
Capital expenditures | 30 | 32 | ' |
Electronic Measurement [Member] | ' | ' | ' |
Segment assets and capital expenditures [Abstract] | ' | ' | ' |
Assets | 1,997 | 2,157 | ' |
Capital expenditures | $88 | $106 | ' |
SEGMENT_INFORMATION_EntityWide
SEGMENT INFORMATION Entity-Wide Disclosures on Geographic Areas (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Entity Wide Disclosure On Geographic Areas Attributed To Individual Foreign Countries [Line Items] | ' | ' | ' |
Revenue, Net | $6,782 | $6,858 | $6,615 |
Concentration Risk, Customer | 'No customer represented 10 percent or more of our total net revenue in 2013, 2012 or 2011 | ' | ' |
Long-Lived Assets | 1,446 | 1,362 | ' |
United States [Member] | ' | ' | ' |
Entity Wide Disclosure On Geographic Areas Attributed To Individual Foreign Countries [Line Items] | ' | ' | ' |
Revenue, Net | 2,043 | 2,218 | 2,016 |
Long-Lived Assets | 601 | 550 | ' |
China [Member] | ' | ' | ' |
Entity Wide Disclosure On Geographic Areas Attributed To Individual Foreign Countries [Line Items] | ' | ' | ' |
Revenue, Net | 1,131 | 1,078 | 1,035 |
Japan [Member] | ' | ' | ' |
Entity Wide Disclosure On Geographic Areas Attributed To Individual Foreign Countries [Line Items] | ' | ' | ' |
Revenue, Net | 628 | 716 | 700 |
Long-Lived Assets | 130 | 167 | ' |
Rest Of World [Member] | ' | ' | ' |
Entity Wide Disclosure On Geographic Areas Attributed To Individual Foreign Countries [Line Items] | ' | ' | ' |
Revenue, Net | 2,980 | 2,846 | 2,864 |
Long-Lived Assets | $715 | $645 | ' |
SEGMENT_INFORMATION_Segment_As
SEGMENT INFORMATION Segment Assets (Details) (USD $) | Oct. 31, 2013 | Oct. 31, 2012 |
In Millions, unless otherwise specified | ||
Segment Reporting Information [Line Items] | ' | ' |
Total reportable segments' assets | $8,044 | $7,997 |
Cash and cash equivalents | 2,675 | 2,351 |
Prepaid expenses | 198 | 128 |
Investments | 139 | 109 |
Long term and other receivables | 162 | 161 |
Other | -532 | -210 |
Total assets | 10,686 | 10,536 |
Life Sciences and Diagnostics [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Total reportable segments' assets | 4,291 | 4,072 |
Chemical Analysis [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Total reportable segments' assets | 1,756 | 1,768 |
Electronic Measurement [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Total reportable segments' assets | $1,997 | $2,157 |
Schedule_II_Valuation_and_Qual1
Schedule II Valuation and Qualifying Accounts (Details) (Valuation Allowance of Deferred Tax Assets [Member], USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Valuation Allowance of Deferred Tax Assets [Member] | ' | ' | ' |
Movement in valuation and qualifying accounts [Roll Forward] | ' | ' | ' |
Balance at Beginning of Period | $93 | $369 | $527 |
Additions Charged to Costs, Expenses or Other Accounts | 0 | 4 | 3 |
Deductions Credited to Expenses or Other Accounts | -8 | -280 | -161 |
Balance at End of Period | $85 | $93 | $369 |