Agilent (A) 10-Q/A 5 Oct 09 2009 Q3 Quarterly report (amended) Financial data

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (USD $)
In Millions, except Share data	3 Months Ended Jul. 31, 2009	3 Months Ended Jul. 31, 2008	9 Months Ended Jul. 31, 2009	9 Months Ended Jul. 31, 2008
Net revenue:
Products	$835	$1,195	$2,636	$3,570
Services and other	222	249	678	723
Total net revenue	1,057	1,444	3,314	4,293
Costs and expenses:
Cost of products	395	505	1,284	1,518
Cost of services and other	123	136	372	409
Total costs	518	641	1,656	1,927
Researchand development	153	170	492	534
Selling, general and administrative	387	415	1,190	1,289
Total costs and expenses	1,058	1,226	3,338	3,750
Income (loss) from operations	(1)	218	(24)	543
Interest income	5	23	25	89
Interest expense	(21)	(31)	(67)	(90)
Other income (expense), net	(24)	5	(6)	16
Income (loss) before taxes	(41)	215	(72)	558
Provision (benefit) for income taxes	(22)	46	(16)	96
Net income (loss)	($19)	$169	($56)	$462
Net income (loss) per share - basic:	-0.06	0.47	-0.16	1.27
Net income (loss) per share - diluted:	-0.06	0.45	-0.16	1.23
Weighted average shares used in computing net income (loss) per share:
Basic	345,000,000	362,000,000	347,000,000	365,000,000
Diluted	345,000,000	372,000,000	347,000,000	375,000,000

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEET (USD $)
In Millions	Jul. 31, 2009	Oct. 31, 2008
Current assets:
Cash and cash equivalents	$1,479	$1,405
Short-term investments	20	24
Accounts receivable, net	544	770
Inventory	571	646
Other current assets	283	337
Total current assets	2,897	3,182
Property, plant and equipment, net	839	824
Goodwill	642	646
Other intangible assets, net	178	228
Restricted cash and cash equivalents	1,568	1,582
Long-term investments	153	206
other long-term assets	296	339
Total assets	6,573	7,007
Current liabilities:
Accounts payable	250	308
Employee compensation and benefits	277	409
Deferred revenue	286	280
Income and other taxes payable	38	128
Other accrued liabilities	140	205
Total current liabilities	991	1,330
Long-term debt	1,515	1,514
Senior notes	638	611
Retirement and post-retirement benefits	378	324
Other long-term liabilities	562	669
Total liabilities	4,084	4,448
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; 565 million shares at July 31, 2009 and 561 million shares at October 31, 2008 issued	6	6
Treasury stock at cost; 220 million shares at July 31, 2009 and 211 million shares at October 31, 2008	(7,627)	(7,470)
Additional paid-in-capital	7,516	7,410
Retained earnings	2,735	2,791
Accumulated other comprehensive loss	(141)	(178)
Total stockholders' equity	2,489	2,559
Total liabilities and stockholders' equity	$6,573	$7,007

PARENTHETICAL DATA TO CONDENSED

PARENTHETICAL DATA TO CONDENSED CONSOLIDATED BALANCE SHEET (USD $)
	Jul. 31, 2009	Oct. 31, 2008
Stockholders' equity:
Preferred stock par value	0.01	0.01
Preferred stock shares authorized	125,000,000	125,000,000
Preferred stock issued	0	0
Preferred stock outstanding	0	0
Common stock par value	0.01	0.01
Common stock shares authorized	2,000,000,000	2,000,000,000
Common stock shares issued	565,000,000	561,000,000
Treasury stock at cost	220,000,000	211,000,000

1_CONDENSED CONSOLIDATED STATEM

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (USD $)
In Millions	9 Months Ended Jul. 31, 2009	9 Months Ended Jul. 31, 2008
Cash flows from operating activities:
Net income (loss)	($56)	$462
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	122	157
Share-based compensation	56	67
Deferred taxes	14	43
Excess and obsolete and inventory-related charges	49	15
Translation gain from liquidation of a subsidiary	0	(25)
Asset impairment charges	37	4
Net pension curtailment gains	(13)	0
Net loss on divestitures	23	0
Allowance for doubtful accounts	4	2
Other	(1)	6
Changes in assets and liabilities:
Accounts receivable	243	14
Inventory	37	(38)
Accounts payable	(63)	(10)
Employee compensation and benefits	(140)	(74)
Income taxes and other taxes payable	(101)	(71)
Interest rate swap proceeds	43	0
Other assets and liabilities	(59)	(54)
Net cash provided by operating activities	195	498
Cash flows from investing activities:
Investments in property, plant and equipment	(98)	(110)
Proceeds from sale of property, plant and equipment	0	14
Purchase of investments	(30)	(256)
Proceeds from sale of investments	81	133
Acquisitions of businesses and intangible assets, net of cash acquired	0	(171)
Purchase of minority interest	0	(14)
Change in restricted cash and cash equivalents, net	14	33
Other, net	(1)	0
Net cash used in investing activities	(34)	(371)
Cash flows from financing activities:
Issuance of common stock under employee stock plans	53	198
Proceeds from revolving credit facility	325	490
Repayment of revolving credit facility	(325)	(280)
Treasury stock repurchases	(157)	(750)
Net cash used in financing activities	(104)	(342)
Effect of exchange rate movements	17	29
Net increase (decrease) in cash and cash equivalents	74	(186)
Cash and cash equivalents at beginning of period	1,405	1,826
Cash and cash equivalents at end of period	$1,479	$1,640

OVERVIEW, BASIS OF PRESENTATION

OVERVIEW, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
	9 Months Ended Jul. 31, 2009 USD / shares
Overview, Basis Of Presentation And Summary Of Significant Accounting Policies [Abstract]
Overview, Basis Of Presentation And Summary Of Significant Accounting Policies	1. OVERVIEW, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Overview. Agilent Technologies,Inc. (we, Agilent or the company), incorporated in Delaware in May1999, is a measurement company, providing core bio-analytical and electronic measurement solutions to the communications, electronics, life sciences and chemical analysis industries. Our fiscal year-end is October31, and our fiscal quarters end on January31, April30 and July31. Unless otherwise stated, all dates refer to our fiscal year and fiscal quarters. Proposed Acquisition of Varian,Inc. On July26, 2009, Agilent, Varian,Inc. (Varian), and Cobalt Acquisition Corp., a direct, wholly-owned subsidiary of Agilent, entered into an Agreement and Plan of Merger (the Merger Agreement).Pursuant to the terms of the Merger Agreement, Varian would become a wholly-owned subsidiary of Agilent. Varian is a leading worldwide supplier of scientific instrumentation and associated consumables for life science and applied market applications. The estimated $1.5 billion total purchase price of Varian includes $52 cash per share of Varians common stock, the cashing out of in the money stock options (after acceleration) and assumed debt. The transaction is subject to approval by shareholders of Varian and will be completed after achieving customary closing conditions and regulatory approvals, which we expect before calendar year-end. Revisions to Financial Statement Presentation. We have revised our consolidated balance sheet as of October31, 2008 to correct an error in the classification of deferred tax assets and liabilities. This revision does not impact the consolidated statement of operations or the consolidated statement of cash flows for any period. During the April30, 2009 quarter-end process, we noted that the October31, 2008 U.S. deferred tax valuation allowances and certain deferred tax assets/deferred tax liabilities were misclassified on the balance sheet as a result of improperly applying the jurisdictional netting rulesof SFAS No.109. We have therefore revised our balance sheet as of October31, 2008 by decreasing other long-term liabilities by $435 million and decreasing other long-term assets by $404 million, decreasing other current assets by $26 million and increasing other accrued liabilities by $5 million. Basis of Presentation. We have prepared the accompanying financial data for the three months and nine months ended July31, 2009 and 2008 pursuant to the rulesand regulations of the Securities and Exchange Commission (SEC). Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles (GAAP) in the U.S. have been condensed or omitted pursuant to such rulesand regulations. The following discussion should be read in conjunction with our 2008 Annual Report on Form10-K. In the opinion of management, the accompanying condensed consolidated financial statements contain all normal and recurring adjustments necessary to present fairly our condensed consolidated balance sheet as of July31, 2009 and October31, 2008, condensed consolidated statement of operati

NEW ACCOUNTING PRONOUNCEMENTS

NEW ACCOUNTING PRONOUNCEMENTS
	9 Months Ended Jul. 31, 2009 USD / shares
New Accounting Pronouncements [Abstract]
New Accounting Pronouncements	2. NEW ACCOUNTING PRONOUNCEMENTS In September2006, the Financial Accounting Standards Board (FASB) issued SFAS No.157,Fair Value Measurements (SFAS No.157). SFAS No.157 defines fair value, establishes a framework for measuring fair value in accordance with U.S.GAAP, and expands disclosures about fair value measurements. SFAS No.157 does not require any new fair value measurements; rather, it applies to other accounting pronouncements that require or permit fair value measurements. In February2008, the FASB issued FASB Staff Position (FSP) No.157-2, Effective Date of FASB Statement No.157 (FSP No.157-2). FSP No.157-2 delays the effective date of SFAS No.157 for nonfinancial assets and nonfinancial liabilities, except for certain items that are recognized or disclosed at fair value in the financial statements on a recurring basis (at least annually). Effective November1, 2008, we adopted the measurement and disclosure requirements related to financial assets and financial liabilities. The adoption of SFAS No.157 for financial assets and financial liabilities did not have a material impact on the companys results of operations or the fair values of its financial assets and liabilities. We will be required to apply the provisions of SFAS No.157 to nonfinancial assets and nonfinancial liabilities as of November1, 2009 and are currently evaluating the impact of the application of SFAS No.157 as it pertains to these items. In February2007, the FASB issued SFAS No.159, The Fair Value Option for Financial Assets and Financial Liabilities including an amendment of FAS115 (SFAS No.159). SFAS No.159 allows companies to choose, at specified election dates, to measure eligible financial assets and liabilities at fair value that are not otherwise required to be measured at fair value. Unrealized gains and losses shall be reported on items for which the fair value option has been elected in earnings at each subsequent reporting date. SFAS No.159 also establishes presentation and disclosure requirements. Effective November1, 2008, we adopted SFAS 159, but we have not elected the fair value option for any eligible financial instruments as of July31, 2009. In March2008, the FASB issued SFAS No.161, Disclosures about Derivative Instruments and Hedging Activities an amendment of FASB Statement No.133 (SFAS No.161), which requires additional disclosures about objectives and strategies for using derivative instruments, how the derivative instruments and related hedged items are accounted for under SFAS No.133, Accounting for Derivative Instruments and Hedging Activities, and related interpretations, and how the derivative instruments and related hedged items affect our financial statements. SFAS No.161 also requires disclosures about credit risk-related contingent features in derivative agreements. SFAS No.161 is effective for fiscal years and interim periods beginning after November15, 2008 and will be applied prospectively. Effective February1, 2009 we adopted the additional disclosures required under SFAS No.161. The adoption of SFAS No.161 did not have a material impact on our condensed consolidated financial statements. See Note 9, Derivatives f

SHARE BASED COMPENSATION

SHARE BASED COMPENSATION
	9 Months Ended Jul. 31, 2009 USD / shares
Share Based Compensation [Abstract]
Share-Based Compensation	3. SHARE-BASED COMPENSATION We follow the accounting provisions of SFAS No.123 (revised 2004), Share-Based Payment (SFAS No.123 (R)), for share-based awards granted to 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 our Long-Term Performance Program (LTPP) using the estimated grant date fair value method of accounting in accordance with SFAS No.123 (R). The impact on our results for share-based compensation was as follows: ThreeMonthsEnded NineMonthsEnded July31, July31, 2009 2008 2009 2008 (inmillions) Cost of products and services $ 3 $ 3 $ 11 $ 14 Research and development 3 3 9 11 Selling, general and administrative 11 12 36 42 Total share-based compensation expense $ 17 $ 18 $ 56 $ 67 Included in the expense amount for the three and nine months ended July31, 2009 is approximately $1 million and $4 million respectively of incremental expense for the acceleration of share-based compensation related to the announced workforce reduction. Upon termination of the employees impacted by the workforce reduction, the non-vested Agilent awards held by those employees immediately vest. Employees have a period of up to three months in which to exercise the Agilent options before such options are cancelled. Share-based compensation capitalized within inventory at July31, 2009 and 2008 was zero. The windfall tax benefit realized from exercised stock options and similar awards was immaterial for the three and nine months ended July31, 2009 and 2008. The following assumptions were used to estimate the fair value of the options granted, ESPP purchases and LTPP grants. During the three months ended July31, 2009 no employee stock option grants were made. During the three months ended July31, 2008 we had no employee stock option or LTPP grants. ThreeMonthsEnded NineMonthsEnded July31, July31, 2009 2008 2009 2008 Stock Option Plans: Weighted average risk-free interest rate 2.3 % 3.2 % Dividend yield 0 % 0 % Weighted average volatility 32 % 33 % Expected life 4.4 yrs 4.6 yrs ESPP: Weighted average risk-free interest rate N/A 1.7 % N/A 2.9 % Dividend yield N/A 0 % N/A 0 % Weighted average volatility N/A 30 % N/A 31 % Expected life N/A 0.5 yr N/A 0.5-1 yr LTPP: Volatility of Agilent shares 33 % 33 % 27 % Volatility of selected peer-company shares 18%-62 % 17%-62 % 17%-52 % Price-wise correlation with selected peers 36 % 35 % 24 % The fair value of share-based awards for emplo

PROVISION FOR TAXES

PROVISION FOR TAXES
	9 Months Ended Jul. 31, 2009 USD / shares
Provision For Taxes [Abstract]
Income Tax Disclosure	4. PROVISION FOR TAXES For the three and nine months ended July31, 2009, we recorded an income tax benefit of $22 million and $16 million, respectively, compared to an income tax provision of $46 million and $96 million in the same periods last year. The income tax benefits for the three and nine months ended July31, 2009 include net discrete benefits of $25 million and $67 million, respectively, relating primarily to benefits associated with valuation allowance adjustments based on changes in other comprehensive income (OCI) items, lapses of statutes of limitations and tax settlements. The discrete tax benefits relating to the valuation allowance adjustments based on OCI items are $24 million and $32 million, respectively for the three and nine months ended July31, 2009. The tax provisions for the three and nine months ended July31, 2008 included a benefit of zero and $12 million, respectively, for effectively settled issues related to foreign audits. Income tax expense is net of taxes recorded for income generated in jurisdictions other than the Netherlands, Puerto Rico, Switzerland, the U.S. and the U.K. where we have recorded valuation allowances. We intend to maintain partial or full valuation allowances in these jurisdictions until sufficient positive evidence exists to support the reversal of the valuation allowances. In the U.S., the tax years remain open back to the year 2000. In other major jurisdictions where we conduct business, the tax years generally remain open back to the year 2003. It is reasonably possible that changes to our unrecognized tax benefits could be significant in the next twelve months due to lapses of statutes of limitation and tax audit settlements. As a result of uncertainties regarding the timing of the completion of tax audits in various jurisdictions and their possible outcomes, an estimate of the range of increase or decrease that could occur in the next twelve months cannot be made. Our U.S. federal income tax returns for 2000 through 2007 have been or are under audit by the Internal Revenue Service (IRS). In August2007, we received a Revenue Agents Report (RAR) for 2000 through 2002. The RAR proposed many adjustments to taxable income. One adjustment, however, which deals with the use of Agilents brand name by our foreign affiliates accounts for the majority of the proposed adjustments. In Augustof 2009, this brand name issue was resolved with no adjustments made to Agilents taxable income. We continue to meet with the Appeals Office of the IRS in order to resolve the remaining issues associated with the RARs proposed adjustments. We are uncertain as to how and when these issues will be finally resolved. It may take several years. We believe that any required adjustments however will be more than offset by applying available net operating losses from the years under audit and undisputed tax credits. Based on current information, we believe that the ultimate disposition of these matters is unlikely to have a material adverse effect on our consolidated financial position, results of operations or liquidity.

NET INCOME

NET INCOME (LOSS) PER SHARE
	9 Months Ended Jul. 31, 2009 USD / shares
Net Income Loss Per Share [Abstract]
Net Income (Loss) Per Share	5. NET INCOME (LOSS) PER SHARE The following is a reconciliation of the numerators and denominators of the basic and diluted net income (loss) per share computations for the periods presented below. ThreeMonthsEnded NineMonthsEnded July31, July31, 2009 2008 2009 2008 (inmillions) Numerator: Net income (loss) $ (19 ) $ 169 $ (56 ) $ 462 Denominators: Basic weighted-average shares 345 362 347 365 Potentially dilutive common stock equivalents stock options and other employee stock plans 10 10 Diluted weighted-average shares 345 372 347 375 The dilutive effect of share-based awards is reflected in diluted net income (loss) per share by application of the treasury stock method, which includes consideration of unamortized share-based compensation expense required by SFAS No.123 (R). The following table presents options to purchase shares of common stock, which were not included in the computations of diluted net income (loss) per share because they were anti-dilutive. ThreeMonthsEnded July31, NineMonthsEnded July31, 2009 2008 2009 2008 Options to purchase shares of common stock (in millions) 30 6 32 6 Weighted-average exercise price $ 30 $ 45 $ 29 $ 45 Average common stock price $ 20 $ 36 $ 18 $ 34

INVENTORY

INVENTORY
	9 Months Ended Jul. 31, 2009 USD / shares
Inventory [Abstract]
Inventory	6. INVENTORY July31, 2009 October31, 2008 (inmillions) Finished goods $ 296 $ 331 Purchased parts and fabricated assemblies 275 315 Inventory $ 571 $ 646

GOODWILL AND OTHER INTANGIBLE A

GOODWILL AND OTHER INTANGIBLE ASSETS
	9 Months Ended Jul. 31, 2009 USD / shares
Goodwill And Other Intangible Assets [Abstract]
Goodwill and Other Intangible Assets	7. GOODWILL AND OTHER INTANGIBLE ASSETS The following table presents goodwill balances and the movements for each of our reportable segments during the nine months ended July31, 2009: Electronic Measurement Bio-analytical Measurement Semiconductor Board Test Total (inmillions) Goodwill as of October31, 2008 $ 329 $ 278 $ 39 $ 646 Disposals (11 ) (7 ) (18 ) Foreign currency translation impact 9 1 4 14 Goodwill as of July31, 2009 $ 327 $ 272 $ 43 $ 642 The components of other intangibles as of July31, 2009 and October31, 2008 are shown in the table below: PurchasedOtherIntangibleAssets Gross Carrying Amount Accumulated Amortization and Impairments NetBook Value (inmillions) As of October31, 2008: Purchased technology $ 281 $ 124 $ 157 Trademark/Tradename 32 3 29 Customer relationships 85 43 42 Total $ 398 $ 170 $ 228 As of July31, 2009: Purchased technology $ 281 $ 162 $ 119 Trademark/Tradename 32 5 27 Customer relationships 85 53 32 Total $ 398 $ 220 $ 178 We recorded no additions to goodwill and no additions to other intangibles during the nine months ended July31, 2009. Goodwill was reduced by $18 million for the three and nine months ended July31, 2009 relating to businesses that we divested which had not been fully integrated into Agilent. In addition, we recorded zero and $16 million in impairment charges for other intangibles in the three and nine months ended July31, 2009, respectively, primarily related to divested businesses. Amortization of intangible assets was $11 million and $34 million for the three and nine months ended July31, 2009 and $14 million and $40 million for the same periods in the prior year. Future amortization expense related to existing purchased intangible assets is estimated to be $10 million for the remainder of 2009, $39 million for 2010, $35 million for 2011, $28 million for 2012, $20 million for 2013, $14 million for 2014, and $32 million thereafter.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS
	9 Months Ended Jul. 31, 2009 USD / shares
Fair Value Measurements [Abstract]
Fair Value Measurements	8. FAIR VALUE MEASUREMENTS SFAS No.157 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 SFAS No.157 establishes a fair value hierarchy that prioritizes the use of inputs used in valuation techniques into three levels. A financial instruments categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. SFAS No.157 establishes 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. Asset and Liabilities Measured at Fair Value on a Recurring Basis Assets and liabilities measured at fair value on a recurring basis as of July31, 2009 were as follows: Fair Value Measurement at July 31, 2009 Using July 31, 2009 QuotedPrices in Active Markets for IdenticalAssets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (in millions) Assets: Short-term Cash equivalents (money market funds) $ 596 $ 596 $ $ Available-for-sale investments 20 17 3 Derivative instruments 18 18 Long-term Trading securities 47 47 Available-for-sale investments 93 8 81 4 Restricted cash (commercial paper) 1,557 1,557 Total assets measured at fair value $ 2,331 $ 651 $ 1,673 $ 7 Liabilities: Short-term Derivative instruments $ 13 $ $ 13 $ Long-term Deferred compensation liability 45 45 Total liabilities measured at fair value $ 58 $ $ 58 $ Our money market funds, some publicly traded available-for-sale investments, and our trading securities investme

DERIVATIVES

DERIVATIVES
	9 Months Ended Jul. 31, 2009 USD / shares
Derivatives [Abstract]
Derivatives	9. DERIVATIVES We are exposed to foreign exchange rate risks in the normal course of business. We enter into foreign exchange contracts, primarily forward contracts and purchased options, to manage economic and/or accounting exposures resulting from changes in foreign currency exchange rates. The company enters 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 SFAS No.133 Accounting for Derivative Instruments and Hedging Activities (SFAS No.133). 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 condensed consolidated statement of operations when either the forecasted transaction occurs or it becomes probable that the forecasted transaction will not occur. Changes in the fair value of the ineffective portion of derivative instruments are recognized in cost of sales in the condensed consolidated statement of operations in the current period. Additionally, the company enters 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 under SFAS No.133. Changes in value of the derivative are recognized in other income (expense) in the condensed consolidated statement of operations, in the current period, along with the offsetting gain or loss on the underlying assets or liabilities. All 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. If our corporate credit rating were to fall below the threshold limits, the counterparties to the derivative instruments may request collateralization 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 on July31, 2009, was $2 million. The credit-risk-related contingent features underlying these agreements had not been triggered on July31, 2009. There were 107 foreign exchange forward contracts and 7 foreign exchange option contracts open as of July31, 2009 and designated as cash flow hedges. There were 151 foreign exchange forward contracts open as of July31, 2009 not designated as hedging instruments. The aggregated notional amounts by currency and designation as of July31, 2009 were as follows: Derivatives in Cash Flow Hedging Relationships under SFAS No.133 Derivatives Not Designated as Hedging Instruments under SFAS No.133 Forward Contract

RESTRUCTURING COSTS, ASSET IMPA

RESTRUCTURING COSTS, ASSET IMPAIRMENTS AND OTHER SPECIAL CHARGES
	9 Months Ended Jul. 31, 2009 USD / shares
Restructuring Costs Asset Impairments And Special Charges [Abstract]
Restructuring Costs Asset Impairments And Special Charges	10. RESTRUCTURING COSTS, ASSET IMPAIRMENTS AND OTHER SPECIAL CHARGES Our 2005 restructuring program, announced in the fourth quarter of 2005, is largely complete. The remaining obligations under this and previous plans relate primarily to lease obligations that are expected to be satisfied over approximately the next three years. In the first quarter of 2009, we announced a new restructuring program (the FY 2009 Plan) to reduce our annual operating expenses by reducing approximately 500 positions of the global workforce of regular employees. The FY 2009 Plan was conceived in response to deteriorating economic conditions and is designed to deliver sufficient savings to enable our businesses to reach their profitability targets. In the second quarter of 2009, we announced additional actions as part of the FY 2009 Plan to restructure our global infrastructure organization and our electronic measurement and semiconductor board test segments in response to the continuing deterioration of economic conditions. These additional actions will ultimately reduce our global workforce of regular employees by approximately 3,300 positions, bringing the total headcount reductions under the FY 2009 Plan to approximately 3,800 positions. We expect to complete all the actions under the FY 2009 Plan by the second quarter of fiscal 2010, but the majority of actions should be complete by October31, 2009. As of July31, 2009 approximately 2,000 employees have left Agilent under the FY 2009 Plan. Special charges related to inventory include estimated future payments that we are contractually obliged to make to our suppliers in connection with future inventory purchases and reserves taken against inventory on hand. In both cases, actions taken under our FY 2009 Plan, including exiting lines of business, have caused the value of this inventory to decrease below its cost. A summary of total restructuring activity and other special charges for the nine months ended July31, 2009 is shown in the table below: Workforce Reduction Consolidation of Excess Facilities Impairment of Building and Purchased Intangible Assets Special Charges related to Inventory Total (in millions) Balance as of October31, 2008 $ $ 10 $ $ $ 10 Income statement expense 154 10 24 22 210 Asset impairments/inventory charges (24 ) (10 ) (34 ) Cash payments (100 ) (6 ) (10 ) (116 ) Balance as of July31, 2009 $ 54 $ 14 $ $ 2 $ 70 The restructuring and other special accruals for all plans, which totaled $70 million at July31, 2009 and $10million at October31, 2008, are recorded in other accrued liabilities and other long-term liabilities on the condensed consolidated balance sheet. These balances reflect estimated future cash outlays. We expect workforce reduction payments, primarily severance, to be largely complete by the end of the second quarter of fiscal 2010. Lease payments should be complete in approximately three years, and payments to suppliers in connection with inve

PENSION PLANS AND OTHER POST RE

PENSION PLANS AND OTHER POST RETIREMENT BENEFIT PLANS
	9 Months Ended Jul. 31, 2009 USD / shares
Pension Plans And Other Post Retirement Benefit Plans [Abstract]
Pension Plans and Other Post Retirement Benefit Plans	11. PENSION PLANS AND OTHER POST RETIREMENT BENEFIT PLANS Plan Amendments. On July14, 2009 the Compensation Committee of the Board of Directors approved design changes to Agilents U.S. defined benefit pension plans (the U.S. Plans). Effective October31, 2009, benefits under the current U.S. Plans formula will be frozen and all future benefit accruals for existing employees and new hires will be calculated under a new formula. The new formula will allocate a percentage of each months eligible earnings to be payable as a lump sum at age 65 whereas the current formula defines a monthly annuity payable at age 65. In addition, effective November1, 2009, the $5,000 life insurance benefit under the Agilent Survivor Protection Plan will be discontinued. Due to these plan amendments as of July31, 2009, we recorded gains of $117 million and $15 million in the U.S. Plans and U.S. post retirement benefit plans, respectively as required by SFAS No.87, Employers Accounting for Pensions, (SFAS No.87). These gains were recorded in accumulated other comprehensive loss. Components of net periodic costs. For the three and nine months ended July31, 2009 and 2008, our net pension and post retirement benefit costs were comprised of the following: Pensions U.S.Plans Non-U.S. Plans U.S.PostRetirement BenefitPlans ThreeMonthsEndedJuly31, 2009 2008 2009 2008 2009 2008 (inmillions) Service costbenefits earned during the period $ 8 $ 9 $ 8 $ 10 $ 1 $ 1 Interest cost on benefit obligation 12 10 17 19 7 7 Expected return on plan assets (10 ) (14 ) (19 ) (28 ) (5 ) (8 ) Amortization and deferrals: Actuarial (gain) loss 1 (3 ) 9 5 1 Prior service cost (3 ) (3 ) Net plan (income) costs 11 2 15 6 1 (3 ) Curtailments (13 ) Total net plan (income) costs $ 11 $ 2 $ 15 $ 6 $ (12 ) $ (3 ) Pensions U.S.Plans Non-U.S. Plans U.S.PostRetirement BenefitPlans NineMonthsEndedJuly31, 2009 2008 2009 2008 2009 2008 (inmillions) Service costbenefits earned during the period $ 23 $ 27 $ 24 $ 29 $ 3 $ 3 Interest cost on benefit obligation 36 29 49 57 21 21 Expected return on plan assets (29 ) (42 ) (58 ) (83 ) (15 ) (24 ) Amortization and deferrals: Actuarial (gain) loss 2 (9 ) 26 15 3 Prior service cost (9 ) (9 ) Net plan (income) costs 32 5 41 18 3 (9 ) Curtailments (13 ) Total net plan (income) costs $ 32 $ 5 $ 41 $ 18 $ (10 ) $ (9 ) Cur

WARRANTIES

WARRANTIES
	9 Months Ended Jul. 31, 2009 USD / shares
Warranties [Abstract]
Warranties	12. WARRANTIES We accrue for warranty costs in accordance with SFAS No.5, Accounting for Contingencies, based on historical trends in warranty charges as a percentage of gross 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. Our warranty terms typically extend for one year from the date of delivery. FY 2009 FY 2008 (inmillions) Beginning balance as of November1, $ 29 $ 29 Accruals for warranties issued during the period 33 38 Changes in estimates 5 Settlements made during the period (39 ) (38 ) Ending balance as of July31, $ 28 $ 29

SHORT TERM DEBT

SHORT TERM DEBT
	9 Months Ended Jul. 31, 2009 USD / shares
Short Term Debt [Abstract]
Short-Term Debt	13. SHORT-TERM DEBT On May11, 2007, we entered into a five-year credit agreement, which provides for a $300 million unsecured credit facility that will expire on May11, 2012. The company may use amounts borrowed under the facility for general corporate purposes. As of July31, 2009 the company has no borrowings outstanding under the credit facility. On August17, 2009 the credit agreement was amended to provide additional financing flexibility in advance of the pending acquisition of Varian,Inc. The amendment allows for up to $1 billion of additional indebtedness, incurred during the period from August17, 2009 through the closing of the acquisition, to be excluded from the leverage ratio covenant until the later of the first day of the month following the ninth full calendar month after the closing of the acquisition or August1, 2010; it also temporarily reduces the basket for other secured financing we are permitted to incur from $300 million to $75 million during this period. The amendment also increases by $500 million the amount of repurchase obligations (such as those of Agilent Technologies World Trade,Inc., a consolidated wholly-owned subsidiary of Agilent (World Trade) (see Note 15, Long-Term Debt and Long-Term Restricted Cash and Cash Equivalents)), that we are permitted to incur.

SENIOR NOTES

SENIOR NOTES
	9 Months Ended Jul. 31, 2009 USD / shares
Senior Notes [Abstract]
Senior Notes	14. SENIOR NOTES In October2007, the company issued an aggregate principal amount of $600million in senior notes. The senior notes were issued at 99.60% of their principal amount. The notes will mature on November1, 2017, and bear interest at a fixed rate of 6.50% per annum. The interest is payable semi-annually on May1stand November1stof each year and payments commenced on May1, 2008. The senior notes are unsecured and rank equally in right of payment with all of Agilents other senior unsecured indebtedness. The company incurred issuance costs of $5 million in connection with the senior notes. These costs were capitalized in other assets on the condensed consolidated balance sheet and the costs are being amortized to interest expense over the term of the senior notes. On November25, 2008, we terminated the two remaining interest rate swap contracts associated with our senior notes that represented the notional amount of $400million. The asset value upon termination was approximately $43million. The proceeds were recorded as operating cash flows and the gain is being deferred and amortized over the remaining life of the senior notes.

LONG TERM DEBT AND LONG TERM RE

LONG TERM DEBT AND LONG TERM RESTRICTED CASH AND CASH EQUIVALENTS
	9 Months Ended Jul. 31, 2009 USD / shares
Long Term Debt And Long Term Restricted Cash And Cash Equivalents [Abstract]
Long-Term Debt And Long-Term Restricted Cash And Cash Equivalents	15. LONG-TERM DEBT AND LONG-TERM RESTRICTED CASH AND CASH EQUIVALENTS The following table summarizes the companys long-term debt as of July31, 2009 and October31, 2008: July31, 2009 October31, 2008 (inmillions) World Trade debt $ 1,500 $ 1,500 Other debt 15 14 Total long-term debt $ 1,515 $ 1,514 World Trade Debt In January2006, World Trade entered into a five-year Master Repurchase Agreement with a counterparty in which World Trade sold 15,000 ClassA preferred shares of Agilent Technologies (Cayco) Limited (Cayco) to the counterparty, having an aggregate liquidation preference of $1.5 billion. World Trade owns all of the outstanding common shares of Cayco, a separate legal entity. In September2008, Agilent and World Trade entered into an agreement (the Lloyds Related Agreement) with Lloyds TSB Bank plc (Lloyds). Under the Lloyds Related Agreement, on November17, 2008 (the Effective Date), Lloyds accepted the transfer by novation of all of the rights and obligations of the counterparty under a revised Master Repurchase Agreement. On the Effective Date, Lloyds paid $1.5 billion to the prior counterparty in consideration of the novation and World Trades repurchase obligation was extended to January27, 2011 (the Extended Repurchase Date). World Trade is obligated to make aggregate quarterly payments to Lloyds at a rate per annum, reset quarterly, with reference to LIBOR plus 175 basis points beginning on the Effective Date. Lloyds can accelerate the Extended Repurchase Date or cause a redemption of the preferred Cayco shares only upon certain events of default, but neither World Trade nor Agilent has the right to accelerate the Extended Repurchase Date. The World Trade obligation of $1.5 billion is recorded and classified as a long-term debt on our condensed consolidated balance sheet. Other Debt On August11, 2008 a consolidated wholly-owned subsidiary of Agilent, borrowed Indian Rupees equivalent to $15 million from Citibank N.A. at 12.75 percent per annum interest rate for 5 years, maturing on August9, 2013 to finance a capital project in India. The loan is recorded and classified as long-term debt on our condensed consolidated balance sheet. Long-Term Restricted Cash Cash Equivalents As of July31, 2009 and October31, 2008, $1,568 million and $1,582 million were reported as long-term restricted cash and cash equivalents in our condensed consolidated balance sheet, respectively. Of these amounts, $1,557 million and $1,571 million were held in commercial paper maintained in connection with our World Trade debt obligation as of July31, 2009 and October31, 2008, respectively.

COMPREHENSIVE INCOME

COMPREHENSIVE INCOME (LOSS)
	9 Months Ended Jul. 31, 2009 USD / shares
Comprehensive Income [Abstract]
Comprehensive Income	16. COMPREHENSIVE INCOME (LOSS) The following table presents the components of comprehensive income (loss): 19 [Missing Graphic Reference] Table of Contents ThreeMonthsEnded July31, 2009 2008 (inmillions) Net income (loss) $ (19 ) $ 169 Other comprehensive income: Change in unrealized gain and loss on investments 6 (5 ) Change in unrealized gain and loss on derivative instruments (2 ) (6 ) Losses reclassified into earnings related to derivative instruments 2 Foreign currency translation 92 (11 ) Change in deferred net pension cost (24 ) (2 ) Deferred taxes (27 ) 2 Comprehensive income $ 28 $ 147 NineMonthsEnded July31, 2009 2008 (inmillions) Net income (loss) $ (56 ) $ 462 Other comprehensive income: Change in unrealized gain and loss on investments (4 ) (26 ) Change in unrealized gain and loss on derivative instruments (2 ) 2 Translation gain reclassified into earnings related to liquidation of a subsidiary (25 ) Losses reclassified into earnings related to derivative instruments 21 Foreign currency translation 114 103 Change in deferred net pension cost (54 ) (5 ) Deferred taxes (38 ) (2 ) Comprehensive income (loss) $ (19 ) $ 509

STOCK REPURCHASE PROGRAM

STOCK REPURCHASE PROGRAM
	9 Months Ended Jul. 31, 2009 USD / shares
Stock Repurchase Program [Abstract]
Stock Repurchase Program	17. STOCK REPURCHASE PROGRAM On November14, 2007 the Audit and Finance Committee of the Board of Directors approved a share-repurchase program of up to $2 billion of Agilents common stock over a two year period. The following repurchases under this program are, based on settlement date: Numberof Common StockRepurchased Amountof Common StockRepurchased (inmillions) Fiscal Year 2008 Balance as of October31, 2008 30 $ 1,000 Fiscal Year 2009 Three months ended January31, 2009 7 125 April30, 2009 2 32 July31, 2009 Program to date as of July31, 2009 39 $ 1,157 All such shares and related costs are held as treasury stock and accounted for using the cost method. The remaining amount that is authorized under the plan is $843 million. On March26, 2009, the company announced that it was suspending its stock repurchase program until the end of the 2009 fiscal year.

SEGMENT INFORMATION

SEGMENT INFORMATION
	9 Months Ended Jul. 31, 2009 USD / shares
Segment Information [Abstract]
Segment Information	18. SEGMENT INFORMATION We are a measurement company, providing core bio-analytical and electronic measurement solutions to the communications, electronics, life sciences and chemical analysis industries. In the first quarter of 2009, we formed a new operating segment from our existing businesses; the semiconductor and board test segment. Following this re-organization, Agilent has three primary businesses bio-analytical measurement, electronic measurement and semiconductor and board test each of which comprises a reportable segment. The segments were determined based primarily on how the chief operating decision maker views and evaluates our operations. Other factors, including customer base, homogeneity of products, technology and delivery channels, were also considered in determining our reportable segments. All historical segment numbers have been recast to conform to this new reporting structure in our financial statements In the first quarter of 2009, we also moved microscopy measurement from the bio-analytical measurement segment to the electronic measurement segment. Microscopy measurement combined with existing units in the electronic measurement segment for increased synergy with product lines and operational resources. 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 considered to be a reasonable reflection of the utilization of services provided to or benefits received by the segments. The following tables reflect the results of our reportable segments under our management reporting system. These results are not necessarily in conformity with generally accepted accounting principles in the U.S. 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, asset impairment charges and other related costs, investment gains and losses, interest income, interest expense, non-cash amortization and impairment of other intangibles and other items as noted in the reconciliation below: Electronic Measurement Bio-analytical Measurement Semiconductor Board Test Total (inmillions) Three months ended July31, 2009: Total net revenue $ 524 $ 496 $ 37 $ 1,057 Segment income (loss) from operations $ (1 ) $ 91 $ (10 ) $ 80 Three months ended July31, 2008: Total net revenue $ 814 $ 540 $

Document Information

Document Information
	9 Months Ended Jul. 31, 2009 USD / shares
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	true
Amendment Description	XBRL exhibits
Document Period End Date	2009-07-31

Entity Information

Entity Information (USD $)
	9 Months Ended Jul. 31, 2009	Apr. 30, 2008
Entity Information [Line Items]
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		$10,250,000,000
Entity Common Stock, Shares Outstanding	345,112,058