Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended |
Jan. 31, 2015 | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | Keysight Technologies, Inc. |
Entity Central Index Key | 1601046 |
Current Fiscal Year End Date | -21 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Common Stock, Shares Outstanding | 168,450,545 |
Document Fiscal Year Focus | 2015 |
Document Fiscal Period Focus | Q1 |
Document Type | 10-Q |
Amendment Flag | FALSE |
Document Period End Date | 31-Jan-15 |
CONDENSED_COMBINED_AND_CONSOLI
CONDENSED COMBINED AND CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited) (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 |
Net revenue [Abstract] | ||
Products | $596 | $563 |
Services and other | 105 | 108 |
Total net revenue | 701 | 671 |
Costs and expenses: | ||
Cost of products | 260 | 245 |
Cost of services and other | 58 | 54 |
Total costs | 318 | 299 |
Research and development | 96 | 90 |
Selling, general and administrative | 206 | 191 |
Total costs and expenses | 620 | 580 |
Income from operations | 81 | 91 |
Interest expense | -12 | 0 |
Other income (expense), net | 9 | 1 |
Income before taxes | 78 | 92 |
Provision for income taxes | 8 | 18 |
Net income | 70 | 74 |
Net income per share: | ||
Basic (in dollars per share) | $0.42 | $0.44 |
Diluted (in dollars per share) | $0.41 | $0.44 |
Weighted average shares used in computing net income per share: | ||
Basic (in shares) | 168 | 167 |
Diluted (in shares) | 170 | 167 |
Segment Total [Member] | ||
Net revenue [Abstract] | ||
Total net revenue | 701 | 671 |
Costs and expenses: | ||
Income from operations | $120 | $118 |
CONDENSED_COMBINED_AND_CONSOLI1
CONDENSED COMBINED AND CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Unaudited) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 |
Statement of Comprehensive Income [Abstract] | ||
Net Income | $70 | $74 |
Other comprehensive income (loss): | ||
Unrealized loss on investments, net of tax benefit of $ zero and $1 | 0 | -2 |
Unrealized loss on derivative instruments, net of tax benefit of $2 and $ zero | -3 | 0 |
Amounts reclassified into earnings related to derivative instruments, net of tax expense of $zero | -1 | 0 |
Foreign currency translation, net of tax benefit of $ zero and $1 | -33 | -12 |
Net defined benefit pension cost and post retirement plan costs: | ||
Amortization of actuarial net loss, net of tax expense of $3 and $ zero | 8 | 0 |
Amortization of net prior service benefit, net of tax benefit of $3 and $ zero | -4 | 0 |
Other comprehensive income (loss) | -33 | -14 |
Total comprehensive income | $37 | $60 |
CONDENSED_COMBINED_AND_CONSOLI2
CONDENSED COMBINED AND CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Unaudited) (Parenthetical) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 |
Other comprehensive income (loss), tax, parenthetical disclosures [Abstract] | ||
Unrealized gain (loss) on investments,tax | $0 | $1 |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Tax | 0 | 0 |
Unrealized gain (loss) on derivative instruments, Tax | 2 | 0 |
Reclassification of (gains) and losses into earnings related to derivative instruments, tax | 0 | 0 |
Foreign currency translation, tax | 0 | 1 |
Net defined benefit pension cost and post retirement plan costs, tax [Abstract] | ||
Amortization of net loss, tax | -3 | 0 |
Amortization of net prior service benefit, tax | $3 | $0 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited) (USD $) | Jan. 31, 2015 | Oct. 31, 2014 |
In Millions, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $887 | $810 |
Accounts receivable, net | 309 | 357 |
Due from Related Parties, Current | 1 | 23 |
Inventory | 477 | 498 |
Deferred Tax Assets, Net, Current | 82 | 83 |
Other current assets | 136 | 79 |
Total current assets | 1,892 | 1,850 |
Property, plant and equipment, net | 455 | 470 |
Goodwill | 381 | 392 |
Other intangible assets, net | 16 | 18 |
Long-term investments | 59 | 63 |
Deferred Tax Assets, Net, Noncurrent | 135 | 163 |
Other assets | 91 | 94 |
Total assets | 3,029 | 3,050 |
Current liabilities: | ||
Accounts payable | 158 | 173 |
Due to Related Parties, Current | 64 | 125 |
Employee compensation and benefits | 146 | 167 |
Deferred revenue | 176 | 175 |
Taxes Payable, Current | 60 | 72 |
Other accrued liabilities | 96 | 57 |
Total current liabilities | 700 | 769 |
Long-term debt | 1,099 | 1,099 |
Retirement and post-retirement benefits | 187 | 213 |
Deferred Revenue, Noncurrent | 66 | 69 |
Other long-term liabilities | 59 | 131 |
Total liabilities | 2,111 | 2,281 |
Commitments and Contingencies (Note 12) | ||
Preferred Stock; $0.01 par value; 100 million shares authorized; none issued and outstanding | 0 | 0 |
Stockholders' equity: | ||
Common stock; $0.01 par value; 1 billion shares authorized; 168 million shares at January 31, 2015 and 167 million shares at October 31, 2014 issued | 2 | 2 |
Additional paid-in-capital | 1,114 | 1,002 |
Retained earnings | 171 | 101 |
Accumulated other comprehensive income | -369 | -336 |
Total stockholder's equity | 918 | 769 |
Total liabilities and equity | $3,029 | $3,050 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited) (Parenthetical) (USD $) | Jan. 31, 2015 | Oct. 31, 2014 |
Stockholders' Equity Attributable to Parent [Abstract] | ||
Preferred stock, par value (in dollars per share) | $0.01 | $0.01 |
Preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Preferred stock, issued and outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Common stock, issued and outstanding (in shares) | 168,000,000 | 167,000,000 |
Treasury stock at cost, shares (in shares) | 0 | 0 |
CONDENSED_COMBINED_AND_CONSOLI3
CONDENSED COMBINED AND CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 |
Net Income | $70 | $74 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 23 | 19 |
Share-based compensation | 29 | 17 |
Excess tax benefit from share-based plans | -3 | 0 |
Deferred taxes | -1 | 27 |
Excess and obsolete inventory related charges | 10 | 6 |
Other non-cash expenses, net | -1 | 0 |
Changes in assets and liabilities: | ||
Accounts receivable | 36 | 49 |
Inventory | -9 | -18 |
Accounts payable | -13 | -1 |
Increase (Decrease) in Due from Related Parties, Current | -14 | 0 |
Employee compensation and benefits | -22 | -22 |
Other assets and liabilities | -13 | -16 |
Net cash provided by operating activities | 92 | 135 |
Cash flows from investing activities: | ||
Investments in property, plant and equipment | -15 | -11 |
Proceeds from sale of investments | 1 | 0 |
Net cash used in investing activities | -14 | -11 |
Cash flows from financing activities: | ||
Issuance of common stock under employee stock plans | 4 | 0 |
Excess tax benefit from share-based plans | 3 | 0 |
Proceeds from Contributions from Parent | 0 | -124 |
Net Cash Provided by (Used in) Financing Activities | 7 | -124 |
Effect of exchange rate movements | -8 | 0 |
Net increase in cash and cash equivalents | 77 | 0 |
Cash and cash equivalents at beginning of period | 810 | 0 |
Cash and cash equivalents at end of period | $887 | $0 |
OVERVIEW_BASIS_OF_PRESENTATION
OVERVIEW, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended | |
Jan. 31, 2015 | ||
Accounting Policies [Abstract] | ||
OVERVIEW AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
1 | OVERVIEW, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Overview. Keysight Technologies, Inc. ("we", "us", "Keysight" or the "company"), incorporated in Delaware on December 6, 2013, is a measurement company providing core electronic measurement solutions to communications and electronics industries. | ||
Our fiscal year end is October 31, and our fiscal quarters end on January 31, April 30 and July 31. Unless otherwise stated, these dates refer to our fiscal year and fiscal quarters. | ||
On November 1, 2014, Keysight became an independent publicly-traded company through the distribution by Agilent Technologies, Inc. ("Agilent") of 100 percent of the outstanding common stock of Keysight to Agilent's shareholders (the "Separation"). Each Agilent shareholder of record as of the close of business on October 22, 2014 received one share of Keysight common stock for every two shares of Agilent common stock held on the record date, resulting in the distribution of approximately 167 million shares of Keysight common stock. Keysight's Registration Statement on Form 10 was declared effective by the U.S. Securities and Exchange Commission ("SEC") on October 6, 2014. Keysight's common stock began trading "regular-way" under the ticker symbol "KEYS" on the New York Stock Exchange on November 3, 2014. | ||
Basis of Presentation. We have prepared the accompanying financial statements for the three months ended January 31, 2015 and 2014 pursuant to the rules and regulations of the 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 rules and regulations. The accompanying financial statements and information should be read in conjunction with our Annual Report on Form 10-K. | ||
Prior to the distribution, Agilent transferred substantially all of the assets and liabilities and operations of the electronic measurement business to Keysight in August 2014 ("the Capitalization"). Combined financial statements prior to the Capitalization | ||
were prepared on a stand-alone basis and were derived from Agilent’s consolidated financial statements and accounting records. For the three months ended January 31, 2014, expenses were allocated to us using estimates that we consider to be a reasonable reflection of the utilization of services provided to or benefits received by us. | ||
Following the Capitalization, the consolidated financial statements include the accounts of the company and our subsidiaries. Agilent continues to provide some services on a transitional basis for a fee, which are partially offset by other income from Keysight services provided to Agilent. These services are received or provided under a transition services agreement. We do not expect the net costs associated with the transition services agreement to be materially different than the historical costs that have been allocated to us related to these same services. | ||
We recognized separation-related costs of $7 million for the three months ended January 31, 2015 and $8 million for the three months ended January 31, 2014, including branding, legal, accounting and other advisory fees and other costs to separate and transition from Agilent, which were principally classified in selling, general and administrative expenses. | ||
In the opinion of management, the accompanying condensed combined and consolidated financial statements contain all normal and recurring adjustments necessary to state fairly our condensed consolidated balance sheet as of January 31, 2015 and October 31, 2014, condensed combined and consolidated statement of comprehensive income for the three months ended January 31, 2015 and 2014, condensed combined and consolidated statement of operations for the three months ended January 31, 2015 and 2014, and condensed combined and consolidated statement of cash flows for the three months ended January 31, 2015 and 2014. | ||
The preparation of condensed combined and consolidated financial statements in accordance with GAAP in the U.S. requires management to make estimates and assumptions that affect the amounts reported in our condensed combined and 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, inventory valuation, allocation methods and allocated expenses from Agilent, valuation of goodwill and other intangible assets, share-based compensation, retirement and post-retirement plan assumptions, restructuring, warranty and accounting for income taxes. | ||
Update to Significant Accounting Policies. There have been no material changes to our significant accounting policies, as compared to the significant accounting policies described in our Annual Report on Form 10-K for the fiscal year ended October 31, 2014. |
NEW_ACCOUNTING_PRONOUNCEMENTS
NEW ACCOUNTING PRONOUNCEMENTS | 3 Months Ended |
Jan. 31, 2015 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
NEW ACCOUNTING PRONOUNCEMENTS | 2. NEW ACCOUNTING PRONOUNCEMENTS |
In May 2014, the Financial Accounting Standards Board ("FASB") issued an amendment to the accounting guidance related to revenue recognition. The amendment was the result of a joint project between the FASB and the International Accounting Standards Board ("IASB") to clarify the principles for recognizing revenue and to develop common revenue standards for U.S. GAAP and International Financial Reporting Standards ("IFRS"). To meet those objectives, the FASB is amending the FASB Accounting Standards Codification and creating a new Topic 606, Revenue from Contracts with Customers, and the IASB is issuing IFRS 15, Revenue from Contracts with Customers. The new guidance is effective for annual periods beginning after December 15, 2016, and interim periods within those years. Early application is not permitted. We are evaluating the impact of adopting this guidance to our combined and consolidated financial statements. | |
In June 2014, the FASB issued an amendment to the accounting guidance relating to share-based compensation to resolve what it saw as diverse accounting treatment of certain awards. With this amendment, the FASB has given explicit guidance to treat a performance target that could be achieved after the requisite service period as a performance condition that affects vesting rather than as a non-vesting condition that affects the grant-date fair value of an award. The new guidance is effective for annual periods beginning after December 15, 2015 and for the interim periods within those annual periods. Earlier adoption is permitted. We are evaluating the impact of adopting this prospective guidance to our combined and consolidated financial statements. | |
In August 2014, the FASB issued guidance related to the disclosures around going concern. The standard provided guidance around management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and to provided related footnote disclosures. The standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted. We do not expect a material impact to our combined and consolidated financial statements due to the adoption of this guidance. | |
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 combined and consolidated financial statements upon adoption. |
TRANSACTIONS_WITH_AGILENT_Note
TRANSACTIONS WITH AGILENT (Notes) | 3 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Related Party Transaction [Line Items] | ||||||||
Related Party Transactions Disclosure [Text Block] | 3. TRANSACTIONS WITH AGILENT | |||||||
Prior to the Separation, we were the Electronic Measurement segment of Agilent, and thus, our transactions with Agilent were considered intercompany. After the Capitalization and prior to November 1, 2014, our transactions with Agilent were considered related party transactions since Agilent owned 100% of our outstanding common stock until October 31, 2014. | ||||||||
For the three months ended January 31, 2015 and 2014, the amount of materials and services sold by us to other Agilent businesses was immaterial, and we did not purchase any materials from the other Agilent businesses. | ||||||||
Allocated Costs | ||||||||
The condensed combined and consolidated statement of operations for the three months ended January 31, 2014 included our direct expenses for cost of products and services sold, research and development, sales and marketing, distribution, and administration as well as allocations of expenses arising from shared services and infrastructure provided by Agilent to us. These allocated expenses include costs of information technology, accounting and legal services, real estate and facilities, corporate advertising, insurance services, treasury and other corporate and infrastructure services and costs for central research and development efforts. In addition, other costs allocated to us included restructuring costs, share-based compensation expense and retirement plan expenses related to Agilent’s corporate and shared services employees and are included in the table below. These expenses were allocated to us using estimates that we consider to be a reasonable reflection of the utilization of services provided to or benefits received by us. These costs were allocated to us on the basis of direct usage when identifiable, with the remainder allocated on a pro-rata basis of revenue, square footage, headcount or other measures. | ||||||||
Allocated costs included in the accompanying condensed combined and consolidated statement of operations are as follows: | ||||||||
Three Months Ended | ||||||||
January 31, | ||||||||
2015 | 2014 | |||||||
(in millions) | ||||||||
Cost of products and services | $ | — | $ | 25 | ||||
Research and development | — | 11 | ||||||
Selling, general and administrative | — | 66 | ||||||
Other (income) expense, net | — | (1 | ) | |||||
Total allocated costs | $ | — | $ | 101 | ||||
Receivable from and Payable to Agilent | ||||||||
31-Jan-15 | 31-Oct-14 | |||||||
(in millions) | ||||||||
Receivable from Agilent | $ | 1 | $ | 23 | ||||
Payable to Agilent | $ | 64 | $ | 125 | ||||
Payable to Agilent at January 31, 2015 includes an accrual for return of excess cash to Agilent of approximately $49 million, which has declined $25 million as compared to $74 million accrued at October 31, 2014 as a result of finalization of discussions with Agilent as provided in the separation and distribution agreement. The $25 million reduction in the accrual was reflected as an increase to additional paid-in-capital in the condensed consolidated balance sheet. Substantially all of the balance payable to Agilent as of January 31, 2015 was paid subsequent to quarter end. |
SHAREBASED_COMPENSATION
SHARE-BASED COMPENSATION | 3 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Share-based Compensation [Abstract] | ||||||||
SHARE-BASED COMPENSATION | . SHARE-BASED COMPENSATION | |||||||
Keysight accounts for share-based awards in accordance with the provisions of the authoritative 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 Employee Stock Purchase Plan (“ESPP”) and performance share awards granted to selected members of our senior management under the Long-Term Performance (“LTP”) Program based on estimated fair values. | ||||||||
Prior to the Separation, Keysight employees participated in Agilent’s equity plans. Upon the Separation, outstanding Keysight employee stock options, restricted stock units ("RSUs") and LTP Program awards previously issued under Agilent’s equity plans were adjusted and converted into new Keysight stock-based awards under the Keysight 2014 Equity and Incentive Compensation Plan using a formula designed to preserve the intrinsic value and fair value of the awards immediately prior to the separation. These adjusted awards retained the vesting schedule and expiration date of the original awards. | ||||||||
The impact on our results for share-based compensation was as follows: | ||||||||
Three Months Ended | ||||||||
January 31, | ||||||||
2015 | 2014 | |||||||
(in millions) | ||||||||
Cost of products and services | $ | 4 | $ | 4 | ||||
Research and development | 4 | 3 | ||||||
Selling, general and administrative | 21 | 10 | ||||||
Total share-based compensation expense | $ | 29 | $ | 17 | ||||
At January 31, 2015 and January 31, 2014, share-based compensation capitalized within inventory was $2 million and $1 million, respectively. The income tax benefit realized from the exercised stock options and similar awards recognized was $3 million and $0 million for the three months ended January 31, 2015 and 2014, respectively. The current period expense includes an expense of $14 million related to special inaugural RSU awards. These awards will vest over three years from the date of grant. | ||||||||
The following assumptions were used to estimate the fair value of employee stock options and LTP Program grants. | ||||||||
Three Months Ended | ||||||||
January 31, | ||||||||
2015 | 2014 | |||||||
Stock Option Plans: | ||||||||
Weighted average risk-free interest rate | 1.6 | % | 1.7 | % | ||||
Dividend yield | — | % | 1 | % | ||||
Weighted average volatility | 31 | % | 39 | % | ||||
Expected life | 4.8 years | 5.8 years | ||||||
LTP Program | ||||||||
Volatility of Keysight shares | 26 | % | — | % | ||||
Volatility of selected peer-company shares | 17%-67% | — | % | |||||
Price-wise correlation with selected peers | 38 | % | — | % | ||||
The fair value of share-based awards for employee stock option awards was estimated using the Black-Scholes option pricing model. Shares granted under the LTP Program were valued using a Monte Carlo simulation model. 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. The estimated fair value of restricted stock unit awards is determined based on the market price of Keysight’s common stock on the date of grant adjusted for expected dividend yield. The ESPP allows eligible employees to purchase shares of our common stock at 85 percent of the purchase price and uses the purchase date to establish the fair market value. | ||||||||
As of November 1, 2014, Agilent’s fiscal 2013 LTP Program grants to Keysight executives are classified as liability awards in our condensed combined and consolidated financial statements as the payout of Keysight shares is dependent upon Agilent Total Shareholder Return (“TSR”) as compared to its peer companies at the end of fiscal 2015. The mark-to-market adjustment was immaterial for the three months ended January 31, 2015. | ||||||||
For the three months ended January 31, 2015, we used an average of historical volatility of eleven core peer companies to estimate the expected stock price volatility assumption for our employee stock option awards. In reaching to this conclusion, we considered our ability to find traded options of peer companies in the current market with similar terms and prices to our options. For the three months ended January 31, 2014, we used historical volatility of Agilent stock to estimate the expected stock price volatility assumption for employee stock option awards. In estimating the expected life of our options granted for three months ended January 31, 2015 and 2014, we considered the historical option exercise behavior of our executives, which we believe is representative of future behavior. |
INCOME_TAXES
INCOME TAXES | 3 Months Ended |
Jan. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 5. INCOME TAXES |
Our combined and consolidated financial statements for fiscal 2014 and prior reflect the calculation of certain deferred tax assets and deferred tax liabilities based on a separate return methodology. Subsequent to the Separation, Keysight will file tax returns on its own behalf and certain current and non-current deferred tax assets and deferred tax liabilities have been adjusted to reflect Keysight's stand-alone income tax positions. The current deferred tax assets and non-current deferred tax assets have decreased by approximately $3 million and $33 million, respectively, while the non-current deferred tax liabilities have increased by $2 million. The decrease in net non-current deferred tax assets of $33 million was primarily due to the decrease in tax attributes of $83 million offset by a decrease in the deferred tax liability related to foreign unremitted earnings of approximately $53 million. Our best estimate of the remaining deferred tax liability for foreign unremitted earnings is $0. This decrease is due to the current existing circumstances under the ongoing discussion with Agilent regarding the allocation of certain deferred tax liability balances related to foreign unremitted earnings in accordance with the separation agreements. | |
Under the terms of the tax matters agreement, current taxes payable for fiscal 2014 will be paid by the legal entity that files the tax return for such tax year. As a result of the Separation, income and other taxes payable were reduced by $26 million to reflect the amounts we expect to pay with our 2014 returns. The combined and consolidated financial statements for fiscal 2014 and prior include an allocation of liabilities for uncertain tax positions. As a result of the Separation, other long-term liabilities has been reduced by $74 million, which reflects the difference between the reserves that were allocated to us prior to the Separation using the separate return methodology and the actual reserves we retained. | |
The company’s effective tax rate was 10.1 percent and 19.5 percent for the three months ended January 31, 2015 and 2014, respectively. Income tax expense was $8 million and $18 million for the three months ended January 31, 2015 and 2014, respectively. | |
The income tax provision for the three months ended January 31, 2015 included a net discrete tax benefit of $10 million. The income tax provision for the three months ended January 31, 2014 included a net discrete expense of $9 million primarily due to the recognition of tax expense related to the repatriation of earnings to the U.S., offset somewhat by the settlement of an IRS audit in the U.S. | |
The open tax years for the IRS, state and most foreign audit authorities are from August 1, 2014 through the current tax year. For certain historical Agilent foreign entities that Keysight retained as part of the Separation, the tax years generally remain open back to the year 2005. We do not believe it is reasonably possible that a change to our unrecognized tax benefits will occur in the next twelve months due to either the expiration of a statute of limitation or a tax audit settlement. |
NET_INCOME_PER_SHARE
NET INCOME PER SHARE | 3 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Earnings Per Share [Abstract] | ||||||||
NET INCOME PER SHARE | . NET INCOME PER SHARE | |||||||
The following is a reconciliation of the numerator and denominator of the basic and diluted net income per share computations for the periods presented below: | ||||||||
Three Months Ended | ||||||||
January 31, | ||||||||
2015 | 2014 | |||||||
(in millions) | ||||||||
Numerator: | ||||||||
Net income | $ | 70 | $ | 74 | ||||
Denominator: | ||||||||
Basic weighted-average shares(a) | 168 | 167 | ||||||
Potential common shares— stock options and other employee stock plans | 2 | — | ||||||
Diluted weighted-average shares(a) | 170 | 167 | ||||||
(a) On November 1, 2014, Agilent Technologies, Inc. distributed 167 million shares of Keysight common stock to existing holders of Agilent common stock. Basic and diluted net income per share for the three months ended January 31, 2014 is calculated using the shares distributed on November 1, 2014. | ||||||||
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 recorded 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. | ||||||||
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 the three months ended January 31, 2015, no options to purchase shares 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, LTP Program 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 three months ended January 31, 2015, we excluded 32,700 shares. |
INVENTORY
INVENTORY | 3 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Inventory, Net [Abstract] | ||||||||
INVENTORY | . INVENTORY | |||||||
January 31, | October 31, | |||||||
2015 | 2014 | |||||||
(in millions) | ||||||||
Finished goods | $ | 225 | $ | 219 | ||||
Purchased parts and fabricated assemblies | 252 | 279 | ||||||
Total Inventory | $ | 477 | $ | 498 | ||||
GOODWILL_AND_OTHER_INTANGIBLE_
GOODWILL AND OTHER INTANGIBLE ASSETS | 3 Months Ended | |||||||||||
Jan. 31, 2015 | ||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||
GOODWILL AND OTHER INTANGIBLE ASSETS | ||||||||||||
. | GOODWILL AND OTHER INTANGIBLE ASSETS | |||||||||||
The following table presents goodwill balances and the movements for each of our reportable segments during the three months ended January 31, 2015: | ||||||||||||
Customer Support and Services | Measurement Solutions | Total | ||||||||||
(in millions) | ||||||||||||
Goodwill as of October 31, 2014 | $ | 55 | $ | 337 | $ | 392 | ||||||
Foreign currency translation impact | (1 | ) | (10 | ) | (11 | ) | ||||||
Goodwill as of January 31, 2015 | $ | 54 | $ | 327 | $ | 381 | ||||||
The components of other intangible assets as of January 31, 2015 and October 31, 2014 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, 2014: | ||||||||||||
Developed technology | $ | 125 | $ | 114 | $ | 11 | ||||||
Backlog | 4 | 4 | — | |||||||||
Trademark/Tradename | 1 | 1 | — | |||||||||
Customer relationships | 32 | 25 | 7 | |||||||||
Total | $ | 162 | $ | 144 | $ | 18 | ||||||
As of January 31, 2015: | ||||||||||||
Developed technology | 125 | 115 | 10 | |||||||||
Backlog | 4 | 4 | — | |||||||||
Trademark/Tradename | 1 | 1 | — | |||||||||
Customer relationships | 32 | 26 | 6 | |||||||||
Total | $ | 162 | $ | 146 | $ | 16 | ||||||
During the three months ended January 31, 2015, we recorded no additions to goodwill or other intangible assets. During the three months ended January 31, 2015, there was no impact to other intangible assets due to foreign exchange translation. | ||||||||||||
Amortization of other intangible assets was $2 million for the three months ended January 31, 2015 and 2014. Future amortization expense related to existing finite-lived intangible assets is estimated to be $6 million for the remainder of 2015, $6 million for 2016, $3 million for 2017, $1 million for 2018, and $0 million thereafter. |
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended | |||||||||||||||
Jan. 31, 2015 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
FAIR VALUE MEASUREMENTS | . 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 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 January 31, 2015 were as follows: | ||||||||||||||||
Fair Value Measurement at January 31, 2015 Using | ||||||||||||||||
January 31, | Quoted Prices | Significant | Significant | |||||||||||||
2015 | 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) | $ | 696 | $ | 696 | $ | — | $ | — | ||||||||
Derivative instruments (foreign exchange contracts) | 10 | — | 10 | — | ||||||||||||
Long-term | ||||||||||||||||
Trading securities | 12 | 12 | — | — | ||||||||||||
Available-for-sale investments | 33 | 33 | — | — | ||||||||||||
Total assets measured at fair value | $ | 751 | $ | 741 | $ | 10 | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Short-term | ||||||||||||||||
Derivative instruments (foreign exchange contracts) | $ | 16 | $ | — | $ | 16 | $ | — | ||||||||
Long-term | ||||||||||||||||
Deferred compensation liability | 12 | — | 12 | — | ||||||||||||
Total liabilities measured at fair value | $ | 28 | $ | — | $ | 28 | $ | — | ||||||||
Financial assets and liabilities measured at fair value on a recurring basis as of October 31, 2014 were as follows: | ||||||||||||||||
Fair Value Measurement at October 31, 2014 Using | ||||||||||||||||
October 31, | Quoted Prices | Significant | Significant | |||||||||||||
2014 | 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) | $ | 634 | $ | 634 | $ | — | $ | — | ||||||||
Derivative instruments (foreign exchange contracts) | 9 | — | 9 | — | ||||||||||||
Long-term | ||||||||||||||||
Trading securities | 13 | 13 | — | — | ||||||||||||
Available-for-sale investments | 35 | 35 | — | — | ||||||||||||
Total assets measured at fair value | $ | 691 | $ | 682 | $ | 9 | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Short-term | ||||||||||||||||
Derivative instruments (foreign exchange contracts) | $ | 3 | $ | — | $ | 3 | $ | — | ||||||||
Long-term | ||||||||||||||||
Deferred compensation liability | 13 | — | 13 | — | ||||||||||||
Total liabilities measured at fair value | $ | 16 | $ | — | $ | 16 | $ | — | ||||||||
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 other comprehensive income. Realized gains and losses from the sale of these instruments are recorded in net income. |
DERIVATIVES
DERIVATIVES | 3 Months Ended | ||||||||||||||||||
Jan. 31, 2015 | |||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||
DERIVATIVES | |||||||||||||||||||
. | DERIVATIVES | ||||||||||||||||||
We are exposed to foreign currency exchange rate fluctuations and interest rate changes in the normal course of our business. As part of our risk management strategy, we use derivative instruments, primarily forward contracts and purchased options to hedge economic and/or accounting exposures resulting from changes in foreign currency exchange rates. Prior to the Capitalization, there were no derivatives contracts legally held by us and the below disclosures represent the activity pertaining to the contracts entered into by us subsequently. | |||||||||||||||||||
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 fair 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 combined and 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), net in the current period. Changes in the fair value of the ineffective portion of derivative instruments are recognized in other income (expense), net in the condensed combined and 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), net over the life of the option contract. Ineffectiveness in the three months ended January 31, 2015 and 2014 was not significant. | |||||||||||||||||||
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), net in the condensed combined and consolidated statement of operations, in the current period, along with the offsetting foreign currency gain or loss on the underlying assets or liabilities. | |||||||||||||||||||
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 that 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 January 31, 2015 was $8 million. The credit-risk-related contingent features underlying these agreements had not been triggered as of January 31, 2015. | |||||||||||||||||||
There were 68 foreign exchange forward contracts and 1 foreign exchange option contracts open as of January 31, 2015 and designated as cash flow hedges. There were 86 foreign exchange forward contracts open as of January 31, 2015 not designated as hedging instruments. The aggregated notional amounts by currency and designation as of January 31, 2015 were as follows: | |||||||||||||||||||
Derivatives in Cash Flow | Derivatives | ||||||||||||||||||
Hedging Relationships | Not | ||||||||||||||||||
Designated | |||||||||||||||||||
as Hedging | |||||||||||||||||||
Instruments | |||||||||||||||||||
Forward | Option | Forward | |||||||||||||||||
Contracts | Contracts | Contracts | |||||||||||||||||
Currency | Buy/(Sell) | Buy/(Sell) | Buy/(Sell) | ||||||||||||||||
(in millions) | |||||||||||||||||||
Euro | $ | — | $ | — | $ | 65 | |||||||||||||
British Pound | — | — | 45 | ||||||||||||||||
Singapore Dollar | 12 | — | 13 | ||||||||||||||||
Malaysian Ringgit | 84 | — | 13 | ||||||||||||||||
Japanese Yen | (94 | ) | (5 | ) | (31 | ) | |||||||||||||
Other | (9 | ) | — | 9 | |||||||||||||||
Totals | $ | (7 | ) | $ | (5 | ) | $ | 114 | |||||||||||
Derivative instruments are subject to master netting arrangements and are disclosed gross in the balance sheet in accordance with the authoritative guidance. The gross fair values and balance sheet location of derivative instruments held in the condensed consolidated balance sheet as of January 31, 2015 and October 31, 2014 were as follows: | |||||||||||||||||||
Fair Values of Derivative Instruments | |||||||||||||||||||
Asset Derivatives | Liability Derivatives | ||||||||||||||||||
Fair Value | Fair Value | ||||||||||||||||||
Balance Sheet Location | January 31, | October 31, | Balance Sheet Location | January 31, | October 31, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||||
(in millions) | |||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||
Cash flow hedges | |||||||||||||||||||
Foreign exchange contracts | |||||||||||||||||||
Other current assets | $ | 8 | $ | 7 | Other accrued liabilities | $ | 8 | $ | 1 | ||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||
Foreign exchange contracts | |||||||||||||||||||
Other current assets | 2 | 2 | Other accrued liabilities | 8 | 2 | ||||||||||||||
Total derivatives | $ | 10 | $ | 9 | $ | 16 | $ | 3 | |||||||||||
The effect of derivative instruments for foreign exchange contracts designated as hedging instruments and not designated as hedging instruments in our condensed combined and consolidated statement of operations were as follows: | |||||||||||||||||||
Three Months Ended | |||||||||||||||||||
January 31, | |||||||||||||||||||
2015 | 2014 | ||||||||||||||||||
(in millions) | |||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||
Cash Flow Hedges | |||||||||||||||||||
Foreign exchange contracts: | |||||||||||||||||||
Loss recognized in accumulated other comprehensive income | $ | (5 | ) | $ | — | ||||||||||||||
Gain reclassified from accumulated other comprehensive income into cost of sales | $ | 1 | $ | — | |||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||
Loss recognized in other income (expense), net | $ | (6 | ) | $ | — | ||||||||||||||
The estimated amount of existing net loss at January 31, 2015 that is expected to be reclassified from other comprehensive income to cost of sales within the next twelve months is $1 million. |
RETIREMENT_PLANS_AND_POST_RETI
RETIREMENT PLANS AND POST RETIREMENT PENSION PLANS | 3 Months Ended | |||||||||||||||||||||||
Jan. 31, 2015 | ||||||||||||||||||||||||
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | ||||||||||||||||||||||||
RETIREMENT PLANS AND POST RETIREMENT PENSION PLANS | 11. RETIREMENT PLANS AND POST-RETIREMENT PENSION PLANS | |||||||||||||||||||||||
Components of net periodic costs. For the three months ended January 31, 2015 and 2014, our net pension and post-retirement benefit costs were comprised of the following: | ||||||||||||||||||||||||
Pensions | ||||||||||||||||||||||||
U.S. Defined Benefit Plans | Non-U.S. Defined Benefit | U.S. Post-Retirement | ||||||||||||||||||||||
Plans | Benefit Plan | |||||||||||||||||||||||
Three Months Ended January 31, | ||||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | |||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Service cost—benefits earned during the period | $ | 5 | $ | — | $ | 4 | $ | — | $ | — | $ | — | ||||||||||||
Interest cost on benefit obligation | 5 | — | 11 | — | 2 | — | ||||||||||||||||||
Expected return on plan assets | (9 | ) | — | (19 | ) | — | (4 | ) | — | |||||||||||||||
Amortization: | ||||||||||||||||||||||||
Net actuarial losses | 1 | — | 7 | — | 3 | — | ||||||||||||||||||
Prior service credit | (2 | ) | — | — | — | (5 | ) | — | ||||||||||||||||
Allocated benefit cost from Agilent | — | 1 | — | 3 | — | 3 | ||||||||||||||||||
Total periodic benefit cost (benefit) | $ | — | $ | 1 | $ | 3 | $ | 3 | $ | (4 | ) | $ | 3 | |||||||||||
We did not contribute to our U.S. Defined Benefit Plans or U.S. Post-Retirement Benefit Plan during the three months ended January 31, 2015 and 2014. We contributed $14 million to our Non-U.S. Defined Benefit Plans during the three months ended January 31, 2015. Contributions of $10 million to the Non-U.S. Defined Benefit Plans were made by Agilent on our behalf for the three months ended January 31, 2014. | ||||||||||||||||||||||||
We do not expect to contribute to our U.S. Defined Benefit Plans during the remainder of 2015 and expect to contribute $32 million to our Non-U.S. Defined Benefit Plans during the remainder of 2015. |
WARRANTIES_AND_CONTINGENCIES
WARRANTIES AND CONTINGENCIES | 3 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||
WARRANTIES AND CONTINGENCIES | 12. COMMITMENTS AND CONTINGENCIES | |||||||
Standard Warranty | ||||||||
Our standard warranty term for most of our products from the date of delivery is typically three years, which increased from one year in the second quarter of fiscal 2013. 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 related product revenue is recognized. Activity related to the standard warranty accrual, which is included in other accrued and other long-term liabilities in our condensed consolidated balance sheet, is as follows: | ||||||||
Three Months Ended | ||||||||
January 31, | ||||||||
2015 | 2014 | |||||||
(in millions) | ||||||||
Beginning balance as of November 1 | $ | 51 | $ | 38 | ||||
Accruals for warranties including change in estimate | 9 | 12 | ||||||
Settlements made during the period | (9 | ) | (8 | ) | ||||
Ending balance as of January 31 | $ | 51 | $ | 42 | ||||
Accruals for warranties due within one year | $ | 36 | $ | 24 | ||||
Accruals for warranties due after one year | 15 | 18 | ||||||
Ending balance as of January 31 | $ | 51 | $ | 42 | ||||
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, combined and consolidated financial condition, results of operations or cash flows. |
Debt_Notes
Debt (Notes) | 3 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Debt Disclosure [Text Block] | 13. DEBT | |||||||
Short-Term Debt | ||||||||
Credit Facility | ||||||||
On September 15, 2014, we entered into a five-year credit agreement, which provides for a $300 million unsecured credit facility that will expire on November 1, 2019. The company may use amounts borrowed under the facility for general corporate purposes. As of January 31, 2015, the company had no borrowings outstanding under the credit facility. We were in compliance with the covenants for the credit facility during the three months ended January 31, 2015. | ||||||||
Long-Term Debt | ||||||||
The following table summarizes the components of our long-term debt: | ||||||||
31-Jan-15 | 31-Oct-14 | |||||||
(in millions) | ||||||||
3.30% Senior Notes due 2019 | $ | 499 | $ | 499 | ||||
4.55% Senior Notes due 2024 | 600 | 600 | ||||||
Total | $ | 1,099 | $ | 1,099 | ||||
The notes issued are unsecured and rank equally in right of payment with all of our other senior unsecured indebtedness. There have been no changes to the principal, maturity, interest rates and interest payment terms of the senior notes, detailed in the table above, in the three months ended January 31, 2015 as compared to the senior notes described in our Annual Report on Form 10-K for fiscal year ended October 31, 2014. | ||||||||
As of January 31, 2015 and October 31, 2014, we had $12 million and $13 million, respectively, of outstanding letters of credit unrelated to the credit facility that were issued by various lenders. | ||||||||
The fair value of our long-term debt, calculated from quoted prices that are primarily Level 1 inputs under the accounting guidance fair value hierarchy, exceeds the carrying value by approximately $24 million and $1 million as of January 31, 2015 and October 31, 2014, respectively. |
STOCKHOLDERS_EQUITY
STOCKHOLDERS' EQUITY | 3 Months Ended | ||||||||||||||||||||||||
Jan. 31, 2015 | |||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||
STOCKHOLDERS EQUITY | 14. ACCUMULATED OTHER COMPREHENSIVE LOSS | ||||||||||||||||||||||||
Changes in accumulated other comprehensive loss by component and related tax effects for the three months ended January 31, 2015 were as follows: | |||||||||||||||||||||||||
Net defined benefit pension cost and post retirement plan costs | |||||||||||||||||||||||||
Unrealized gain on investments | Foreign currency translation | Actuarial losses | Prior service costs | Unrealized gains (losses) on derivatives | Total | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
As of October 31, 2014 | $ | 16 | $ | 6 | $ | (444 | ) | $ | 83 | $ | 3 | $ | (336 | ) | |||||||||||
Other comprehensive loss before reclassifications | — | (33 | ) | — | — | (5 | ) | (38 | ) | ||||||||||||||||
Amounts reclassified out of accumulated other comprehensive income | — | — | 11 | (7 | ) | (1 | ) | 3 | |||||||||||||||||
Tax (expense) benefit | — | — | (3 | ) | 3 | 2 | 2 | ||||||||||||||||||
Other comprehensive income (loss) | — | (33 | ) | 8 | (4 | ) | (4 | ) | (33 | ) | |||||||||||||||
As of January 31, 2015 | $ | 16 | $ | (27 | ) | $ | (436 | ) | $ | 79 | $ | (1 | ) | $ | (369 | ) | |||||||||
Reclassifications out of accumulated other comprehensive loss for the three months ended January 31, 2015 and 2014 were as follows: | |||||||||||||||||||||||||
Details about Accumulated Other Comprehensive Loss Components | Amounts Reclassified from Other Comprehensive Loss | Affected Line Item in Statement of Operations | |||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||
January 31, | |||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
Unrealized gain on derivatives | $ | 1 | $ | — | Cost of products | ||||||||||||||||||||
— | — | Provision for income taxes | |||||||||||||||||||||||
1 | — | Net of income tax | |||||||||||||||||||||||
Net defined benefit pension cost and post retirement plan costs: | |||||||||||||||||||||||||
Actuarial net loss | (11 | ) | — | ||||||||||||||||||||||
Prior service benefit | 7 | — | |||||||||||||||||||||||
(4 | ) | — | Total before income tax | ||||||||||||||||||||||
— | — | Provision for income taxes | |||||||||||||||||||||||
(4 | ) | — | Net of income tax | ||||||||||||||||||||||
Total reclassifications for the period | $ | (3 | ) | $ | — | ||||||||||||||||||||
An amount in parentheses indicates a reduction to income and a decrease to other comprehensive loss. | |||||||||||||||||||||||||
Reclassifications of prior service benefit and actuarial net loss in respect of retirement plans and post retirement pension plans are included in the computation of net periodic cost (see Note 11, "Retirement Plans and Post Retirement Pension Plans"). |
SEGMENT_INFORMATION
SEGMENT INFORMATION | 3 Months Ended | |||||||||||
Jan. 31, 2015 | ||||||||||||
Segment Reporting [Abstract] | ||||||||||||
SEGMENT INFORMATION | 15. SEGMENT INFORMATION | |||||||||||
Description of segments. We provide core electronic measurement solutions to the communications and electronics industries. | ||||||||||||
We have two reportable operating segments, measurement solutions and customer support and services. The two 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 two reportable segments is as follows: | ||||||||||||
Our measurement solutions business provides electronic measurement instruments and systems with related software and software design tools that are used in the design, development, manufacture, installation, deployment and operation of electronics equipment. We provide startup assistance, consulting, optimization and application support throughout the customer's product lifecycle. | ||||||||||||
The customer support and services business provides repair and calibration services for our installed base measurement solutions customers and facilitates the resale of used equipment. Our customer support and services business enables our customers to maximize the value from their electronic measurement equipment and strengthens customer loyalty. Providing these services assures a high level of instrument performance and availability while minimizing the cost of ownership and downtime. | ||||||||||||
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. | ||||||||||||
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 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-related charges, share-based compensation expense, investment gains and losses, interest expense, acquisition and integration costs, separation-related costs, amortization of intangibles and other items as noted in the reconciliations below. | ||||||||||||
Measurement Solutions | Customer Support and Services | Total Segments | ||||||||||
(in millions) | ||||||||||||
Three Months Ended January 31, 2015: | ||||||||||||
Total net revenue | $ | 606 | $ | 95 | $ | 701 | ||||||
Segment income from operations | $ | 107 | $ | 13 | $ | 120 | ||||||
Three months ended January 31, 2014: | ||||||||||||
Total net revenue | $ | 574 | $ | 97 | $ | 671 | ||||||
Segment income from operations | $ | 99 | $ | 19 | $ | 118 | ||||||
The following table reconciles reportable segments’ income from operations to our total enterprise income before taxes: | ||||||||||||
Three Months Ended | ||||||||||||
January 31, | ||||||||||||
2015 | 2014 | |||||||||||
(in millions) | ||||||||||||
Total reportable segment income from operations | $ | 120 | $ | 118 | ||||||||
Share based compensation expense | (29 | ) | (17 | ) | ||||||||
Restructuring-related costs | — | 3 | ||||||||||
Transformational programs | — | (1 | ) | |||||||||
Amortization of intangibles | (2 | ) | (2 | ) | ||||||||
Acquisition and integration costs | — | (1 | ) | |||||||||
Separation related costs | (7 | ) | (8 | ) | ||||||||
Other | (1 | ) | (1 | ) | ||||||||
Interest expense | (12 | ) | — | |||||||||
Other income (expense), net | 9 | 1 | ||||||||||
Income before taxes, as reported | $ | 78 | $ | 92 | ||||||||
The following table presents assets directly managed by each segment. Unallocated assets primarily consist of cash, | ||||||||||||
cash equivalents, investments, long-term and other receivables and other assets. | ||||||||||||
Measurement Solutions | Customer Support and Services | Total | ||||||||||
(in millions) | ||||||||||||
Assets: | ||||||||||||
As of January 31, 2015 | $ | 1,577 | $ | 214 | $ | 1,791 | ||||||
As of October 31, 2014 | $ | 1,740 | $ | 236 | $ | 1,976 | ||||||
TRANSACTIONS_WITH_AGILENT_Tabl
TRANSACTIONS WITH AGILENT (Tables) | 3 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Related Party Transaction [Line Items] | ||||||||
Schedule of Related Party Transactions [Table Text Block] | Receivable from and Payable to Agilent | |||||||
31-Jan-15 | 31-Oct-14 | |||||||
(in millions) | ||||||||
Receivable from Agilent | $ | 1 | $ | 23 | ||||
Payable to Agilent | $ | 64 | $ | 125 | ||||
Allocated costs included in the accompanying condensed combined and consolidated statement of operations are as follows: | ||||||||
Three Months Ended | ||||||||
January 31, | ||||||||
2015 | 2014 | |||||||
(in millions) | ||||||||
Cost of products and services | $ | — | $ | 25 | ||||
Research and development | — | 11 | ||||||
Selling, general and administrative | — | 66 | ||||||
Other (income) expense, net | — | (1 | ) | |||||
Total allocated costs | $ | — | $ | 101 | ||||
SHAREBASED_COMPENSATION_Tables
SHARE-BASED COMPENSATION (Tables) | 3 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Share-based Compensation [Abstract] | ||||||||
Allocated Share-based compensation expense disclosure | The impact on our results for share-based compensation was as follows: | |||||||
Three Months Ended | ||||||||
January 31, | ||||||||
2015 | 2014 | |||||||
(in millions) | ||||||||
Cost of products and services | $ | 4 | $ | 4 | ||||
Research and development | 4 | 3 | ||||||
Selling, general and administrative | 21 | 10 | ||||||
Total share-based compensation expense | $ | 29 | $ | 17 | ||||
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 LTP Program grants. | |||||||
Three Months Ended | ||||||||
January 31, | ||||||||
2015 | 2014 | |||||||
Stock Option Plans: | ||||||||
Weighted average risk-free interest rate | 1.6 | % | 1.7 | % | ||||
Dividend yield | — | % | 1 | % | ||||
Weighted average volatility | 31 | % | 39 | % | ||||
Expected life | 4.8 years | 5.8 years | ||||||
LTP Program | ||||||||
Volatility of Keysight shares | 26 | % | — | % | ||||
Volatility of selected peer-company shares | 17%-67% | — | % | |||||
Price-wise correlation with selected peers | 38 | % | — | % | ||||
NET_INCOME_PER_SHARE_Tables
NET INCOME PER SHARE (Tables) | 3 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
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 numerator and denominator of the basic and diluted net income per share computations for the periods presented below: | |||||||
Three Months Ended | ||||||||
January 31, | ||||||||
2015 | 2014 | |||||||
(in millions) | ||||||||
Numerator: | ||||||||
Net income | $ | 70 | $ | 74 | ||||
Denominator: | ||||||||
Basic weighted-average shares(a) | 168 | 167 | ||||||
Potential common shares— stock options and other employee stock plans | 2 | — | ||||||
Diluted weighted-average shares(a) | 170 | 167 | ||||||
INVENTORY_Tables
INVENTORY (Tables) | 3 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Inventory, Net [Abstract] | ||||||||
INVENTORY | INVENTORY | |||||||
January 31, | October 31, | |||||||
2015 | 2014 | |||||||
(in millions) | ||||||||
Finished goods | $ | 225 | $ | 219 | ||||
Purchased parts and fabricated assemblies | 252 | 279 | ||||||
Total Inventory | $ | 477 | $ | 498 | ||||
GOODWILL_AND_OTHER_INTANGIBLE_1
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 3 Months Ended | |||||||||||
Jan. 31, 2015 | ||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||
Goodwill balances and movements for each reportable segments during the period | The following table presents goodwill balances and the movements for each of our reportable segments during the three months ended January 31, 2015: | |||||||||||
Customer Support and Services | Measurement Solutions | Total | ||||||||||
(in millions) | ||||||||||||
Goodwill as of October 31, 2014 | $ | 55 | $ | 337 | $ | 392 | ||||||
Foreign currency translation impact | (1 | ) | (10 | ) | (11 | ) | ||||||
Goodwill as of January 31, 2015 | $ | 54 | $ | 327 | $ | 381 | ||||||
Components of other intangibles during the period | ||||||||||||
The components of other intangible assets as of January 31, 2015 and October 31, 2014 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, 2014: | ||||||||||||
Developed technology | $ | 125 | $ | 114 | $ | 11 | ||||||
Backlog | 4 | 4 | — | |||||||||
Trademark/Tradename | 1 | 1 | — | |||||||||
Customer relationships | 32 | 25 | 7 | |||||||||
Total | $ | 162 | $ | 144 | $ | 18 | ||||||
As of January 31, 2015: | ||||||||||||
Developed technology | 125 | 115 | 10 | |||||||||
Backlog | 4 | 4 | — | |||||||||
Trademark/Tradename | 1 | 1 | — | |||||||||
Customer relationships | 32 | 26 | 6 | |||||||||
Total | $ | 162 | $ | 146 | $ | 16 | ||||||
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended | |||||||||||||||
Jan. 31, 2015 | ||||||||||||||||
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, 2014 were as follows: | |||||||||||||||
Fair Value Measurement at October 31, 2014 Using | ||||||||||||||||
October 31, | Quoted Prices | Significant | Significant | |||||||||||||
2014 | 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) | $ | 634 | $ | 634 | $ | — | $ | — | ||||||||
Derivative instruments (foreign exchange contracts) | 9 | — | 9 | — | ||||||||||||
Long-term | ||||||||||||||||
Trading securities | 13 | 13 | — | — | ||||||||||||
Available-for-sale investments | 35 | 35 | — | — | ||||||||||||
Total assets measured at fair value | $ | 691 | $ | 682 | $ | 9 | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Short-term | ||||||||||||||||
Derivative instruments (foreign exchange contracts) | $ | 3 | $ | — | $ | 3 | $ | — | ||||||||
Long-term | ||||||||||||||||
Deferred compensation liability | 13 | — | 13 | — | ||||||||||||
Total liabilities measured at fair value | $ | 16 | $ | — | $ | 16 | $ | — | ||||||||
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 January 31, 2015 were as follows: | ||||||||||||||||
Fair Value Measurement at January 31, 2015 Using | ||||||||||||||||
January 31, | Quoted Prices | Significant | Significant | |||||||||||||
2015 | 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) | $ | 696 | $ | 696 | $ | — | $ | — | ||||||||
Derivative instruments (foreign exchange contracts) | 10 | — | 10 | — | ||||||||||||
Long-term | ||||||||||||||||
Trading securities | 12 | 12 | — | — | ||||||||||||
Available-for-sale investments | 33 | 33 | — | — | ||||||||||||
Total assets measured at fair value | $ | 751 | $ | 741 | $ | 10 | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Short-term | ||||||||||||||||
Derivative instruments (foreign exchange contracts) | $ | 16 | $ | — | $ | 16 | $ | — | ||||||||
Long-term | ||||||||||||||||
Deferred compensation liability | 12 | — | 12 | — | ||||||||||||
Total liabilities measured at fair value | $ | 28 | $ | — | $ | 28 | $ | — | ||||||||
DERIVATIVES_Tables
DERIVATIVES (Tables) | 3 Months Ended | ||||||||||||||||||
Jan. 31, 2015 | |||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||
Aggregated notional amounts by currency and designation | The aggregated notional amounts by currency and designation as of January 31, 2015 were as follows: | ||||||||||||||||||
Derivatives in Cash Flow | Derivatives | ||||||||||||||||||
Hedging Relationships | Not | ||||||||||||||||||
Designated | |||||||||||||||||||
as Hedging | |||||||||||||||||||
Instruments | |||||||||||||||||||
Forward | Option | Forward | |||||||||||||||||
Contracts | Contracts | Contracts | |||||||||||||||||
Currency | Buy/(Sell) | Buy/(Sell) | Buy/(Sell) | ||||||||||||||||
(in millions) | |||||||||||||||||||
Euro | $ | — | $ | — | $ | 65 | |||||||||||||
British Pound | — | — | 45 | ||||||||||||||||
Singapore Dollar | 12 | — | 13 | ||||||||||||||||
Malaysian Ringgit | 84 | — | 13 | ||||||||||||||||
Japanese Yen | (94 | ) | (5 | ) | (31 | ) | |||||||||||||
Other | (9 | ) | — | 9 | |||||||||||||||
Totals | $ | (7 | ) | $ | (5 | ) | $ | 114 | |||||||||||
Gross fair values and balance sheet location of derivative instruments held in the consolidated balance sheet | Derivative instruments are subject to master netting arrangements and are disclosed gross in the balance sheet in accordance with the authoritative guidance. The gross fair values and balance sheet location of derivative instruments held in the condensed consolidated balance sheet as of January 31, 2015 and October 31, 2014 were as follows: | ||||||||||||||||||
Fair Values of Derivative Instruments | |||||||||||||||||||
Asset Derivatives | Liability Derivatives | ||||||||||||||||||
Fair Value | Fair Value | ||||||||||||||||||
Balance Sheet Location | January 31, | October 31, | Balance Sheet Location | January 31, | October 31, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||||
(in millions) | |||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||
Cash flow hedges | |||||||||||||||||||
Foreign exchange contracts | |||||||||||||||||||
Other current assets | $ | 8 | $ | 7 | Other accrued liabilities | $ | 8 | $ | 1 | ||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||
Foreign exchange contracts | |||||||||||||||||||
Other current assets | 2 | 2 | Other accrued liabilities | 8 | 2 | ||||||||||||||
Total derivatives | $ | 10 | $ | 9 | $ | 16 | $ | 3 | |||||||||||
Effect of derivative instruments for foreign exchange contracts in the consolidated statement of operations | The effect of derivative instruments for foreign exchange contracts designated as hedging instruments and not designated as hedging instruments in our condensed combined and consolidated statement of operations were as follows: | ||||||||||||||||||
Three Months Ended | |||||||||||||||||||
January 31, | |||||||||||||||||||
2015 | 2014 | ||||||||||||||||||
(in millions) | |||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||
Cash Flow Hedges | |||||||||||||||||||
Foreign exchange contracts: | |||||||||||||||||||
Loss recognized in accumulated other comprehensive income | $ | (5 | ) | $ | — | ||||||||||||||
Gain reclassified from accumulated other comprehensive income into cost of sales | $ | 1 | $ | — | |||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||
Loss recognized in other income (expense), net | $ | (6 | ) | $ | — | ||||||||||||||
RETIREMENT_PLANS_AND_POST_RETI1
RETIREMENT PLANS AND POST RETIREMENT PENSION PLANS (Tables) | 3 Months Ended | |||||||||||||||||||||||
Jan. 31, 2015 | ||||||||||||||||||||||||
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | ||||||||||||||||||||||||
Schedule of net pension and post-retirement benefit costs | Components of net periodic costs. For the three months ended January 31, 2015 and 2014, our net pension and post-retirement benefit costs were comprised of the following: | |||||||||||||||||||||||
Pensions | ||||||||||||||||||||||||
U.S. Defined Benefit Plans | Non-U.S. Defined Benefit | U.S. Post-Retirement | ||||||||||||||||||||||
Plans | Benefit Plan | |||||||||||||||||||||||
Three Months Ended January 31, | ||||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | |||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Service cost—benefits earned during the period | $ | 5 | $ | — | $ | 4 | $ | — | $ | — | $ | — | ||||||||||||
Interest cost on benefit obligation | 5 | — | 11 | — | 2 | — | ||||||||||||||||||
Expected return on plan assets | (9 | ) | — | (19 | ) | — | (4 | ) | — | |||||||||||||||
Amortization: | ||||||||||||||||||||||||
Net actuarial losses | 1 | — | 7 | — | 3 | — | ||||||||||||||||||
Prior service credit | (2 | ) | — | — | — | (5 | ) | — | ||||||||||||||||
Allocated benefit cost from Agilent | — | 1 | — | 3 | — | 3 | ||||||||||||||||||
Total periodic benefit cost (benefit) | $ | — | $ | 1 | $ | 3 | $ | 3 | $ | (4 | ) | $ | 3 | |||||||||||
WARRANTIES_AND_CONTINGENCIES_T
WARRANTIES AND CONTINGENCIES (Tables) | 3 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||
Standard warranty | ||||||||
Three Months Ended | ||||||||
January 31, | ||||||||
2015 | 2014 | |||||||
(in millions) | ||||||||
Beginning balance as of November 1 | $ | 51 | $ | 38 | ||||
Accruals for warranties including change in estimate | 9 | 12 | ||||||
Settlements made during the period | (9 | ) | (8 | ) | ||||
Ending balance as of January 31 | $ | 51 | $ | 42 | ||||
Accruals for warranties due within one year | $ | 36 | $ | 24 | ||||
Accruals for warranties due after one year | 15 | 18 | ||||||
Ending balance as of January 31 | $ | 51 | $ | 42 | ||||
Debt_Tables
Debt (Tables) | 3 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Schedule of Long-term Debt Instruments [Table Text Block] | The following table summarizes the components of our long-term debt: | |||||||
31-Jan-15 | 31-Oct-14 | |||||||
(in millions) | ||||||||
3.30% Senior Notes due 2019 | $ | 499 | $ | 499 | ||||
4.55% Senior Notes due 2024 | 600 | 600 | ||||||
Total | $ | 1,099 | $ | 1,099 | ||||
STOCKHOLDERS_EQUITY_Tables
STOCKHOLDERS' EQUITY (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Jan. 31, 2015 | |||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Changes in accumulated other comprehensive loss by component and related tax effects for the three months ended January 31, 2015 were as follows: | ||||||||||||||||||||||||
Net defined benefit pension cost and post retirement plan costs | |||||||||||||||||||||||||
Unrealized gain on investments | Foreign currency translation | Actuarial losses | Prior service costs | Unrealized gains (losses) on derivatives | Total | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
As of October 31, 2014 | $ | 16 | $ | 6 | $ | (444 | ) | $ | 83 | $ | 3 | $ | (336 | ) | |||||||||||
Other comprehensive loss before reclassifications | — | (33 | ) | — | — | (5 | ) | (38 | ) | ||||||||||||||||
Amounts reclassified out of accumulated other comprehensive income | — | — | 11 | (7 | ) | (1 | ) | 3 | |||||||||||||||||
Tax (expense) benefit | — | — | (3 | ) | 3 | 2 | 2 | ||||||||||||||||||
Other comprehensive income (loss) | — | (33 | ) | 8 | (4 | ) | (4 | ) | (33 | ) | |||||||||||||||
As of January 31, 2015 | $ | 16 | $ | (27 | ) | $ | (436 | ) | $ | 79 | $ | (1 | ) | $ | (369 | ) | |||||||||
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | eclassifications out of accumulated other comprehensive loss for the three months ended January 31, 2015 and 2014 were as follows: | ||||||||||||||||||||||||
Details about Accumulated Other Comprehensive Loss Components | Amounts Reclassified from Other Comprehensive Loss | Affected Line Item in Statement of Operations | |||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||
January 31, | |||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
Unrealized gain on derivatives | $ | 1 | $ | — | Cost of products | ||||||||||||||||||||
— | — | Provision for income taxes | |||||||||||||||||||||||
1 | — | Net of income tax | |||||||||||||||||||||||
Net defined benefit pension cost and post retirement plan costs: | |||||||||||||||||||||||||
Actuarial net loss | (11 | ) | — | ||||||||||||||||||||||
Prior service benefit | 7 | — | |||||||||||||||||||||||
(4 | ) | — | Total before income tax | ||||||||||||||||||||||
— | — | Provision for income taxes | |||||||||||||||||||||||
(4 | ) | — | Net of income tax | ||||||||||||||||||||||
Total reclassifications for the period | $ | (3 | ) | $ | — | ||||||||||||||||||||
SEGMENT_INFORMATION_Tables
SEGMENT INFORMATION (Tables) | 3 Months Ended | |||||||||||
Jan. 31, 2015 | ||||||||||||
Segment Reporting [Abstract] | ||||||||||||
Segment Profitability and Segment Assets | ||||||||||||
Measurement Solutions | Customer Support and Services | Total | ||||||||||
(in millions) | ||||||||||||
Assets: | ||||||||||||
As of January 31, 2015 | $ | 1,577 | $ | 214 | $ | 1,791 | ||||||
As of October 31, 2014 | $ | 1,740 | $ | 236 | $ | 1,976 | ||||||
Measurement Solutions | Customer Support and Services | Total Segments | ||||||||||
(in millions) | ||||||||||||
Three Months Ended January 31, 2015: | ||||||||||||
Total net revenue | $ | 606 | $ | 95 | $ | 701 | ||||||
Segment income from operations | $ | 107 | $ | 13 | $ | 120 | ||||||
Three months ended January 31, 2014: | ||||||||||||
Total net revenue | $ | 574 | $ | 97 | $ | 671 | ||||||
Segment income from operations | $ | 99 | $ | 19 | $ | 118 | ||||||
Reconciliation of segment results to total enterprise results | The following table reconciles reportable segments’ income from operations to our total enterprise income before taxes: | |||||||||||
Three Months Ended | ||||||||||||
January 31, | ||||||||||||
2015 | 2014 | |||||||||||
(in millions) | ||||||||||||
Total reportable segment income from operations | $ | 120 | $ | 118 | ||||||||
Share based compensation expense | (29 | ) | (17 | ) | ||||||||
Restructuring-related costs | — | 3 | ||||||||||
Transformational programs | — | (1 | ) | |||||||||
Amortization of intangibles | (2 | ) | (2 | ) | ||||||||
Acquisition and integration costs | — | (1 | ) | |||||||||
Separation related costs | (7 | ) | (8 | ) | ||||||||
Other | (1 | ) | (1 | ) | ||||||||
Interest expense | (12 | ) | — | |||||||||
Other income (expense), net | 9 | 1 | ||||||||||
Income before taxes, as reported | $ | 78 | $ | 92 | ||||||||
OVERVIEW_BASIS_OF_PRESENTATION1
OVERVIEW, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 | Oct. 31, 2014 |
Accounting Policies [Abstract] | |||
One time separation costs | $7 | $8 | |
Fair Value of Financial Instruments | |||
Long Term Debt Fair Value Over Carrying Value | $24 | $1 |
TRANSACTIONS_WITH_AGILENT_Allo
TRANSACTIONS WITH AGILENT Allocated Cost (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 | Oct. 31, 2014 |
Related Party Transaction [Line Items] | |||
Related Party Transaction, Expenses from Transactions with Related Party | $0 | $101 | |
Letters of Credit Outstanding, Amount | 12 | 13 | |
Cost of Sales [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction, Expenses from Transactions with Related Party | 0 | 25 | |
Research and Development Expense [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction, Expenses from Transactions with Related Party | 0 | 11 | |
Selling, General and Administrative Expenses [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction, Expenses from Transactions with Related Party | 0 | 66 | |
Other income (expense) [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction, Expenses from Transactions with Related Party | $0 | ($1) |
TRANSACTIONS_WITH_AGILENT_Posi
TRANSACTIONS WITH AGILENT Position with Agilent (Details) (USD $) | Jan. 31, 2015 | Oct. 31, 2014 |
In Millions, unless otherwise specified | ||
Related Party Transaction [Line Items] | ||
Due from Related Parties, Current | $1 | $23 |
Due to Related Parties, Current | $64 | $125 |
TRANSACTIONS_WITH_AGILENT_Retu
TRANSACTIONS WITH AGILENT Return Of Capital (Details) (USD $) | Jan. 31, 2015 | Oct. 31, 2014 |
In Millions, unless otherwise specified | ||
Related Party Transaction [Line Items] | ||
Accrual for return of excess cash to Related Party | $49 | $74 |
SHAREBASED_COMPENSATION_Alloca
SHARE-BASED COMPENSATION Allocated Share-based compensation expense (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 |
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | ||
Share-based compensation expense | $29 | $17 |
share based compensation expense- Inaugral Stock Units [Line Items] | 14 | |
Windfall tax benefit realized | 3 | 0 |
Share-based compensation capitalized within inventory | 2 | 1 |
Cost of Products and Services [Member] | ||
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | ||
Share-based compensation expense | 4 | 4 |
Research and Development Expense [Member] | ||
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | ||
Share-based compensation expense | 4 | 3 |
Selling, General and Administrative Expenses [Member] | ||
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | ||
Share-based compensation expense | $21 | $10 |
SHAREBASED_COMPENSATION_Fair_V
SHARE-BASED COMPENSATION Fair Value Assumptions (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation capitalized within inventory | $2 | $1 |
ESPP plan purchase price (in hundredths) | 85.00% | 85.00% |
Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average risk-free interest rate (in hundredths) | 1.60% | 1.70% |
Dividend yield | 0.00% | 1.00% |
Weighted average volatility (in hundredths) | 31.00% | 39.00% |
Expected life (in years) | 4 years 10 months | 5 years 10 months |
LTPP [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Volatility of Keysight shares (in hundredths) | 26.00% | 0.00% |
Volatility of selected peer-company shares minimum (in hundredths) | 17.00% | 0.00% |
Volatility of selected peer-company shares maximum (in hundredths) | 67.00% | 0.00% |
Price-wise correlation with selected peers (in hundredths) | 38.00% | 0.00% |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 |
Income Tax Examination [Line Items] | ||
Effective Income Tax Rate Reconciliation, Percent | 10.10% | 19.50% |
Income Tax Expense (Benefit) | $8 | $18 |
Net Discrete Tax expense | ($10) | $9 |
INCOME_TAXES_DAY_1_TAX_ADJUSTM
INCOME TAXES DAY 1 TAX ADJUSTMENTS (Details) (USD $) | 3 Months Ended |
Jan. 31, 2015 | |
Income Tax Examination [Line Items] | |
DAY1 Deferred Tax Asset,Net Current | ($3,000,000) |
DAY1 Deferred Tax Asset, Net Non-Current | -33,000,000 |
DAY1 Deferred Tax Liability, Net Non- Current | 2,000,000 |
DAY1 Adjustment Tax Attributes | -83,000,000 |
Day1 Adjustment Unremitted Foreign Earnings | -53,000,000 |
DAY1 Income Tax Payable, Net Adjustment | -26,000,000 |
DAY1 Other Long Term Liabilities Tax, Net Adjustment | ($74,000,000) |
NET_INCOME_PER_SHARE_Details
NET INCOME PER SHARE (Details) (USD $) | 3 Months Ended | |
In Millions, except Share data, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 |
Numerator: | ||
Net Income | $70 | $74 |
Denominators: | ||
Basic weighted-average shares (in shares) | 168,000,000 | 167,000,000 |
Potentially dilutive common shares equivalents - stock options and other employee stock plans (in shares) | 2,000,000 | 0 |
Diluted weighted average shares (in shares) | 170,000,000 | 167,000,000 |
Options with exercise price greater than average market price [Member] | ||
Antidilutive Securities Excluded from EPS Computation | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 0 |
Stock Options, LTPP and restricted stock combined exercise price, unamortized fair value, excess tax benefits or shortfalls greater than average market price [Member] [Member] | ||
Antidilutive Securities Excluded from EPS Computation | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 32,700 | 0 |
INVENTORY_Details
INVENTORY (Details) (USD $) | Jan. 31, 2015 | Oct. 31, 2014 |
In Millions, unless otherwise specified | ||
Inventory, Net [Abstract] | ||
Finished goods | $225 | $219 |
Purchased parts and fabricated assemblies | 252 | 279 |
Inventory | $477 | $498 |
GOODWILL_AND_OTHER_INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill Roll forward (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Jan. 31, 2015 |
Goodwill [Roll Forward] | |
Goodwill beginning balance | $392 |
Foreign currency translation impact | -11 |
Goodwill arising from acquisitions/adjustments | 0 |
Goodwill ending balance | 381 |
Customer support & services [Member] [Member] | |
Goodwill [Roll Forward] | |
Goodwill beginning balance | 55 |
Foreign currency translation impact | -1 |
Goodwill ending balance | 54 |
Measurement Solutions [Member] | |
Goodwill [Roll Forward] | |
Goodwill beginning balance | 337 |
Foreign currency translation impact | -10 |
Goodwill ending balance | $327 |
GOODWILL_AND_OTHER_INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS Disclosures and Components of Purchased Other Intangibles (Details) (USD $) | Jan. 31, 2015 | Oct. 31, 2014 |
In Millions, unless otherwise specified | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross Carrying Amount | $162 | $162 |
Accumulated Amortization and Impairments | 146 | 144 |
Net Book Value | 16 | 18 |
Developed technology [Member] | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross Carrying Amount | 125 | 125 |
Accumulated Amortization and Impairments | 115 | 114 |
Net Book Value | 10 | 11 |
Backlog [Member] | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross Carrying Amount | 4 | 4 |
Accumulated Amortization and Impairments | 4 | 4 |
Net Book Value | 0 | 0 |
Trademark/Tradenames [Member] | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross Carrying Amount | 1 | 1 |
Accumulated Amortization and Impairments | 1 | 1 |
Net Book Value | 0 | 0 |
Customer relationships [Member] | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross Carrying Amount | 32 | 32 |
Accumulated Amortization and Impairments | 26 | 25 |
Net Book Value | $6 | $7 |
GOODWILL_AND_OTHER_INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS GOODWILL AND OTHER INTANGIBLE ASSETS Textuals (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 |
Finite-Lived Intangible Assets [Line Items] | ||
Additions to goodwill | $0 | |
Amortization of intangible assets during the period | $2 | $2 |
GOODWILL_AND_OTHER_INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS Finite-Lived Assets Future Amortization Expense (Details) (USD $) | Jan. 31, 2015 |
In Millions, unless otherwise specified | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
Future amortization expense for remainder of 2015 | $6 |
Future amortization expense for 2016 | 6 |
Future amortization expense for 2017 | 3 |
Future amortization expense for 2018 | 1 |
Future Amortization expense for 2019 & thereafter | $0 |
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 $) | Jan. 31, 2015 | Oct. 31, 2014 |
In Millions, unless otherwise specified | ||
Assets Short - term [Abstract] | ||
Cash equivalents (money market funds) | $696 | $634 |
Derivative instruments (foreign exchange contracts) | 10 | 9 |
Assets, Long-term [Abstract] | ||
Trading securities | 12 | 13 |
Available-for-sale investments | 33 | 35 |
Total assets measured at fair value | 751 | 691 |
Liabilities, Short-term [Abstract] | ||
Derivative instruments (foreign exchange contracts) | 16 | 3 |
Liabilities Long-term [Abstract] | ||
Deferred compensation liability | 12 | 13 |
Total liabilities measured at fair value | 28 | 16 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Assets Short - term [Abstract] | ||
Cash equivalents (money market funds) | 696 | 634 |
Derivative instruments (foreign exchange contracts) | 0 | 0 |
Assets, Long-term [Abstract] | ||
Trading securities | 12 | 13 |
Available-for-sale investments | 33 | 35 |
Total assets measured at fair value | 741 | 682 |
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 contracts) | 10 | 9 |
Assets, Long-term [Abstract] | ||
Trading securities | 0 | 0 |
Available-for-sale investments | 0 | 0 |
Total assets measured at fair value | 10 | 9 |
Liabilities, Short-term [Abstract] | ||
Derivative instruments (foreign exchange contracts) | 16 | 3 |
Liabilities Long-term [Abstract] | ||
Deferred compensation liability | 12 | 13 |
Total liabilities measured at fair value | 28 | 16 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Assets Short - term [Abstract] | ||
Cash equivalents (money market funds) | 0 | 0 |
Derivative instruments (foreign exchange contracts) | 0 | 0 |
Assets, Long-term [Abstract] | ||
Trading securities | 0 | 0 |
Available-for-sale investments | 0 | 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 |
DERIVATIVES_Details
DERIVATIVES (Details) (USD $) | Jan. 31, 2015 |
In Millions, unless otherwise specified | contracts |
Derivative [Line Items] | |
Derivative, Net Liability Position, Aggregate Fair Value | $8 |
Derivative Contracts [Abstract] | |
Foreign exchange forward contracts designated as cash flow hedge (in units) | 68 |
Foreign exchange option contracts designated as cash flow hedge (in units) | 1 |
Foreign exchange forward contracts not designated as hedges (in units) | 86 |
DERIVATIVES_Disclosures_and_de
DERIVATIVES, Disclosures and derivative instrument aggregated notional amounts by currency and designations (Details) (USD $) | Jan. 31, 2015 |
In Millions, unless otherwise specified | |
Forward Contracts Buy/(Sell) [Member] | Derivatives Not Designated as Hedging Instruments [Member] | |
Derivative [Line Items] | |
Total notional amount | $114 |
Derivatives Designated as Hedging Instruments [Member] | Forward Contracts Buy/(Sell) [Member] | |
Derivative [Line Items] | |
Total notional amount | -7 |
Derivatives Designated as Hedging Instruments [Member] | Option Contracts Buy/(Sell) [Member] | |
Derivative [Line Items] | |
Total notional amount | -5 |
Sell [Member] | Euro [Member] | Derivatives Designated as Hedging Instruments [Member] | Forward Contracts Buy/(Sell) [Member] | |
Derivative [Line Items] | |
Total notional amount | 0 |
Sell [Member] | British Pound [Member] | Derivatives Designated as Hedging Instruments [Member] | Forward Contracts Buy/(Sell) [Member] | |
Derivative [Line Items] | |
Total notional amount | 0 |
Sell [Member] | Singapore, Dollars | Derivatives Designated as Hedging Instruments [Member] | Forward Contracts Buy/(Sell) [Member] | |
Derivative [Line Items] | |
Total notional amount | 12 |
Sell [Member] | Japanese Yen [Member] | Forward Contracts Buy/(Sell) [Member] | Derivatives Not Designated as Hedging Instruments [Member] | |
Derivative [Line Items] | |
Total notional amount | -31 |
Sell [Member] | Japanese Yen [Member] | Derivatives Designated as Hedging Instruments [Member] | Forward Contracts Buy/(Sell) [Member] | |
Derivative [Line Items] | |
Total notional amount | -94 |
Sell [Member] | Japanese Yen [Member] | Derivatives Designated as Hedging Instruments [Member] | Option Contracts Buy/(Sell) [Member] | |
Derivative [Line Items] | |
Total notional amount | -5 |
Sell [Member] | Other [Member] | Forward Contracts Buy/(Sell) [Member] | Derivatives Not Designated as Hedging Instruments [Member] | |
Derivative [Line Items] | |
Total notional amount | 9 |
Sell [Member] | Other [Member] | Derivatives Designated as Hedging Instruments [Member] | Forward Contracts Buy/(Sell) [Member] | |
Derivative [Line Items] | |
Total notional amount | -9 |
Buy [Member] | Euro [Member] | Forward Contracts Buy/(Sell) [Member] | Derivatives Not Designated as Hedging Instruments [Member] | |
Derivative [Line Items] | |
Total notional amount | 65 |
Buy [Member] | British Pound [Member] | Forward Contracts Buy/(Sell) [Member] | Derivatives Not Designated as Hedging Instruments [Member] | |
Derivative [Line Items] | |
Total notional amount | 45 |
Buy [Member] | Singapore, Dollars | Forward Contracts Buy/(Sell) [Member] | Derivatives Not Designated as Hedging Instruments [Member] | |
Derivative [Line Items] | |
Total notional amount | 13 |
Buy [Member] | Malaysian Ringgit [Member] | Forward Contracts Buy/(Sell) [Member] | Derivatives Not Designated as Hedging Instruments [Member] | |
Derivative [Line Items] | |
Total notional amount | 13 |
Buy [Member] | Malaysian Ringgit [Member] | Derivatives Designated as Hedging Instruments [Member] | Forward Contracts Buy/(Sell) [Member] | |
Derivative [Line Items] | |
Total notional amount | $84 |
DERIVATIVES_Fair_value_of_deri
DERIVATIVES, Fair value of derivative instruments and Consolidated Balance Sheet location (Details) (USD $) | Jan. 31, 2015 | Oct. 31, 2014 |
In Millions, unless otherwise specified | ||
Derivative Fair Value by Balance Sheet Location [Abstract] | ||
Total derivatives Asset | $10 | $9 |
Total derivatives Liabilities | 16 | 3 |
Derivatives Not Designated as Hedging Instruments [Member] | Foreign Exchange Contracts [Member] | Other Current Assets [Member] | ||
Derivative Fair Value by Balance Sheet Location [Abstract] | ||
Total derivatives Asset | 2 | 2 |
Derivatives Not Designated as Hedging Instruments [Member] | Foreign Exchange Contracts [Member] | Other Accrued Liabilities [Member] | ||
Derivative Fair Value by Balance Sheet Location [Abstract] | ||
Total derivatives Liabilities | 8 | 2 |
Derivatives Designated as Hedging Instruments [Member] | Cash Flow Hedging [Member] | Foreign Exchange Contracts [Member] | Other Current Assets [Member] | ||
Derivative Fair Value by Balance Sheet Location [Abstract] | ||
Total derivatives Asset | 8 | 7 |
Derivatives Designated as Hedging Instruments [Member] | Cash Flow Hedging [Member] | Foreign Exchange Contracts [Member] | Other Accrued Liabilities [Member] | ||
Derivative Fair Value by Balance Sheet Location [Abstract] | ||
Total derivatives Liabilities | $8 | $1 |
DERIVATIVES_Effect_of_derivati
DERIVATIVES, Effect of derivative instruments on Consolidated Statement of Operations (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 |
Derivative [Line Items] | ||
Gain (loss) recognized in accumulated other comprehensive income | ($5) | |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Foreign Exchange Contracts [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | ||
Derivative [Line Items] | ||
Gain (loss) recognized in accumulated other comprehensive income | -5 | 0 |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Foreign Exchange Contracts [Member] | Cost of Sales [Member] | ||
Derivative [Line Items] | ||
Gain (loss) reclassified from accumulated other comprehensive income into cost of sales | 1 | 0 |
Derivatives Not Designated as Hedging Instruments [Member] | Other income (expense) [Member] | ||
Derivative [Line Items] | ||
Gain (loss) recognized in other income (expense) | -6 | 0 |
Cash Flow Hedging [Member] | Cost of Sales [Member] | ||
Derivative [Line Items] | ||
Cash Flow Hedge (Gain) Loss to be Reclassified within Twelve Months | $1 |
RETIREMENT_PLANS_AND_POST_RETI2
RETIREMENT PLANS AND POST RETIREMENT PENSION PLANS (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 |
Pensions (U.S. Plans) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Contributions by Employer | $0 | $0 |
Defined Benefit Plan, Net Periodic Benefit Cost | ||
Service cost - benefits earned during the period | 5 | 0 |
Interest cost on benefit obligation | 5 | 0 |
Expected return on plan assets | -9 | 0 |
Amortization: | ||
Actuarial losses | 1 | 0 |
Prior service cost | -2 | 0 |
Defined Benefit Plan,Allocated Benefit Cost from Related Party | 0 | 1 |
Total net plan costs | 0 | 1 |
Pensions (Non-U.S. Plans) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Contributions by Employer | 14 | 10 |
Defined Benefit Plan, Net Periodic Benefit Cost | ||
Service cost - benefits earned during the period | 4 | 0 |
Interest cost on benefit obligation | 11 | 0 |
Expected return on plan assets | -19 | 0 |
Amortization: | ||
Actuarial losses | 7 | 0 |
Prior service cost | 0 | 0 |
Defined Benefit Plan,Allocated Benefit Cost from Related Party | 0 | 3 |
Total net plan costs | 3 | 3 |
United States Postretirement Benefit Plan [Member] | ||
Defined Benefit Plan, Net Periodic Benefit Cost | ||
Service cost - benefits earned during the period | 0 | 0 |
Interest cost on benefit obligation | 2 | 0 |
Expected return on plan assets | -4 | 0 |
Amortization: | ||
Actuarial losses | 3 | 0 |
Prior service cost | -5 | 0 |
Defined Benefit Plan,Allocated Benefit Cost from Related Party | 0 | 3 |
Total net plan costs | ($4) | $3 |
RETIREMENT_PLANS_AND_POST_RETI3
RETIREMENT PLANS AND POST RETIREMENT PENSION PLANS (Details) (Textual) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 |
Pensions (U.S. Plans) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Contributions by Employer | $0 | $0 |
Estimated future employer contributions in remainder of current fiscal year | 0 | |
Pensions (Non-U.S. Plans) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Contributions by Employer | 14 | 10 |
Estimated future employer contributions in remainder of current fiscal year | $32 |
WARRANTIES_AND_CONTINGENCIES_D
WARRANTIES AND CONTINGENCIES (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Beginning balance at beginning of period | $51 | $38 |
Accruals for warranties including change in estimate | 9 | 12 |
Settlements made during the period | -9 | -8 |
Ending balance at end of period | 51 | 42 |
Standard Product Warranty Disclosure [Abstract] | ||
Accruals for warranties due within one year | 36 | 24 |
Accruals for warranties due after one year | 15 | 18 |
Ending balance at end of period | $51 | $42 |
Debt_Long_Term_Debt_Details
Debt Long Term Debt (Details) (USD $) | 3 Months Ended | 12 Months Ended |
Jan. 31, 2015 | Oct. 31, 2014 | |
Debt Instrument [Line Items] | ||
Long Term Debt Fair Value Over Carrying Value | $24,000,000 | $1,000,000 |
Senior Notes 2019 [Member] | ||
Debt Instrument [Line Items] | ||
Unsecured Long-term Debt, Noncurrent | 499 | 499 |
Senior Notes 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Unsecured Long-term Debt, Noncurrent | 600 | 600 |
Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Unsecured Long-term Debt, Noncurrent | $1,099 | $1,099 |
Debt_Credit_Facility_Details
Debt Credit Facility (Details) (Line of Credit [Member], USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Jan. 31, 2015 |
Line of Credit [Member] | |
Line of Credit Facility [Line Items] | |
Line of Credit Facility, Initiation Date | 15-Sep-14 |
Short-term Debt, Terms | five-year |
Line of Credit Facility, Maximum Borrowing Capacity | $300 |
Line of Credit Facility, Expiration Date | 1-Nov-19 |
Debt_Letter_of_Credit_Details
Debt Letter of Credit (Details) (USD $) | Jan. 31, 2015 | Oct. 31, 2014 |
In Millions, unless otherwise specified | ||
Line of Credit Facility [Line Items] | ||
Letters of Credit Outstanding, Amount | $12 | $13 |
STOCKHOLDERS_EQUITY_Accumulate
STOCKHOLDER'S EQUITY - Accumulated Other Comprehensive Income (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 |
Beginning balance | ($336) | |
Other comprehensive income (loss) before reclassifications | -38 | |
Amounts reclassified out of accumulated other comprehensive income | 3 | |
Tax (expense) benefit | 2 | |
Other comprehensive income (loss) | -33 | -14 |
Ending balance | -369 | |
Unrealized gain on investments [Abstract] | ||
Beginning balance | 16 | |
Other comprehensive income (loss) before reclassifications | 0 | |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, before Tax | 0 | |
Tax (expense) benefit | 0 | 1 |
Other comprehensive income (loss) | 0 | |
Ending balance | 16 | |
Foreign currency translation [Abstract] | ||
Beginning balance | 6 | |
Other comprehensive income (loss) before reclassifications | -33 | |
Amounts reclassified out of accumulated other comprehensive income | 0 | |
Tax (expense) benefit | 0 | 1 |
Other comprehensive income (loss) | -33 | |
Ending balance | -27 | |
Prior service credits [Abstract] | ||
Beginning balance | -83 | |
Other comprehensive income (loss) before reclassifications | 0 | |
Amounts reclassified out of accumulated other comprehensive income | -7 | 0 |
Tax (expense) benefit | -3 | |
Other comprehensive income (loss) | -4 | 0 |
Ending balance | -79 | |
Actuarial Losses [Abstract] | ||
Beginning balance | 444 | |
Other comprehensive income (loss) before reclassifications | 0 | |
Amounts reclassified out of accumulated other comprehensive income | -11 | 0 |
Tax (expense) benefit | 3 | |
Other comprehensive income (loss) | 8 | 0 |
Ending balance | 436 | |
Unrealized gains (losses) on derivatives [Abstract] | ||
Beginning balance | 3 | |
Other comprehensive income (loss) before reclassifications | -5 | |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax | -1 | |
Tax (expense) benefit | 2 | |
Other comprehensive income (loss) | -4 | |
Ending balance | ($1) |
STOCKHOLDERS_EQUITY_Reclassifi
STOCKHOLDERS' EQUITY - Reclassifications out of accumulated comprehensive income (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Tax | $0 | $0 |
Unrealized gains and (losses) on derivatives reclassified to cost of products | 1 | 0 |
Reclassification of (gains) and losses into earnings related to derivative instruments, tax | 0 | 0 |
Unrealized gains and (losses) on derivatives reclassified to cost of products, net of tax | 1 | 0 |
Actuarial net loss | -11 | 0 |
Prior service benefit | 7 | 0 |
Actuarial net loss and prior service benefit reclassified, before tax | -4 | 0 |
Tax on actuarial net loss and prior service benefit reclassified | 0 | 0 |
Actuarial net loss and prior service benefit reclassified, net of tax | -4 | 0 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | ($3) | $0 |
SEGMENT_INFORMATION_Profitabil
SEGMENT INFORMATION Profitability (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 |
Segment Reporting Information [Line Items] | ||
Revenue, Net | $701 | $671 |
Operating Income (Loss) | 81 | 91 |
Measurement Solutions [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue, Net | 606 | 574 |
Operating Income (Loss) | 107 | 99 |
Customer support & services [Member] [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue, Net | 95 | 97 |
Operating Income (Loss) | 13 | 19 |
Segment Total [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue, Net | 701 | 671 |
Operating Income (Loss) | $120 | $118 |
SEGMENT_INFORMATION_Reconcilia
SEGMENT INFORMATION Reconciliation of Reportable Results (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Abstract] | ||
Total reportable segmentsb income from operations | $120 | $118 |
Allocated Share-based Compensation Expense | 29 | 17 |
Restructuring charges | 0 | 3 |
Transformational initiatives | 0 | -1 |
Amortization of intangible assets | -2 | -2 |
Acquisition and integration costs | 0 | -1 |
Separation costs | -7 | -8 |
Other | -1 | -1 |
Interest expense | -12 | 0 |
Other income (expense), net | 9 | 1 |
Income before taxes | $78 | $92 |
SEGMENT_INFORMATION_Segment_As
SEGMENT INFORMATION Segment Assets (Details) (USD $) | Jan. 31, 2015 | Oct. 31, 2014 |
In Millions, unless otherwise specified | ||
Segment Reporting Information [Line Items] | ||
Assets | $3,029 | $3,050 |
Measurement Solutions [Member] | ||
Segment Reporting Information [Line Items] | ||
Assets | 1,577 | 1,740 |
Customer support & services [Member] [Member] | ||
Segment Reporting Information [Line Items] | ||
Assets | 214 | 236 |
Segment Total [Member] | ||
Segment Reporting Information [Line Items] | ||
Assets | $1,791 | $1,976 |