Cover Page
Cover Page - shares | 3 Months Ended | |
Jan. 31, 2021 | Feb. 26, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jan. 31, 2021 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2021 | |
Amendment Flag | false | |
Document Transition Report | false | |
Entity File Number | 001-36334 | |
Entity Registrant Name | KEYSIGHT TECHNOLOGIES, INC. | |
Entity Central Index Key | 0001601046 | |
Current Fiscal Year End Date | --10-31 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 46-4254555 | |
Entity Address, Address Line One | 1400 Fountaingrove Parkway | |
Entity Address, City or Town | Santa Rosa | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 95403 | |
City Area Code | (800) | |
Local Phone Number | 829-4444 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | KEYS | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 185,994,432 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
Net revenue: | ||
Revenues | $ 1,180 | $ 1,095 |
Costs and expenses: | ||
Cost of Goods and Services Sold | 473 | 440 |
Research and development | 199 | 187 |
Selling, general and administrative | 301 | 300 |
Other operating expense (income), net | (5) | (35) |
Total costs and expenses | 968 | 892 |
Income from operations | 212 | 203 |
Interest income | 1 | 6 |
Interest expense | (20) | (19) |
Other income (expense), net | 2 | 12 |
Income before taxes | 195 | 202 |
Provision for income taxes | 23 | 39 |
Net income | $ 172 | $ 163 |
Net income per share: | ||
Basic (in dollars per share) | $ 0.93 | $ 0.87 |
Diluted (in dollars per share) | $ 0.92 | $ 0.86 |
Weighted average shares used in computing net income per share: | ||
Basic (in shares) | 186 | 188 |
Diluted (in shares) | 188 | 191 |
Products | ||
Net revenue: | ||
Revenues | $ 970 | $ 902 |
Costs and expenses: | ||
Cost of Goods and Services Sold | 392 | 359 |
Services and other | ||
Net revenue: | ||
Revenues | 210 | 193 |
Costs and expenses: | ||
Cost of Goods and Services Sold | $ 81 | $ 81 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
Other comprehensive income (loss): | ||
Net income | $ 172 | $ 163 |
Unrealized gain (loss) on derivative instruments, net of tax benefit (expense) of $(5) and $(1) | 18 | 1 |
Amounts reclassified into earnings related to derivative instruments, net of tax benefit (expense) of zero | 0 | 1 |
Foreign currency translation, net of tax benefit (expense) of zero | 31 | 0 |
Net defined benefit pension cost and post retirement plan costs: | ||
Change in net actuarial loss, net of tax expense of $5 and zero | 14 | 17 |
Change in net prior service credit, net of tax benefit of zero and $1 | 0 | (2) |
Other comprehensive income | 63 | 17 |
Total comprehensive income | $ 235 | $ 180 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
Other comprehensive income (loss), tax, parenthetical disclosures [Abstract] | ||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax | $ (5) | $ (1) |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax | 0 | 0 |
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax | 0 | 0 |
Net defined benefit pension cost and post retirement plan costs, tax [Abstract] | ||
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, Tax | 5 | 0 |
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), Reclassification Adjustment from AOCI, Tax | $ 0 | $ 1 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited) - USD ($) $ in Millions | Jan. 31, 2021 | Oct. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 1,887 | $ 1,756 |
Accounts receivable, net | 654 | 606 |
Inventory | 760 | 757 |
Other current assets | 265 | 255 |
Total current assets | 3,566 | 3,374 |
Property, plant and equipment, net | 597 | 595 |
Operating lease right-of-use assets | 215 | 182 |
Goodwill | 1,588 | 1,537 |
Other intangible assets, net | 356 | 361 |
Long-term investments | 62 | 61 |
Long-term deferred tax assets | 700 | 740 |
Other assets | 410 | 368 |
Total assets | 7,494 | 7,218 |
Current liabilities: | ||
Accounts payable | 228 | 224 |
Employee compensation and benefits | 253 | 289 |
Deferred revenue | 456 | 391 |
Income and other taxes payable | 56 | 64 |
Operating lease liabilities | 42 | 43 |
Other accrued liabilities | 89 | 70 |
Total current liabilities | 1,124 | 1,081 |
Long-term debt | 1,790 | 1,789 |
Retirement and post-retirement benefits | 362 | 362 |
Long-term deferred revenue | 166 | 175 |
Long-term operating lease liabilities | 184 | 149 |
Other long-term liabilities | 332 | 365 |
Total liabilities | 3,958 | 3,921 |
Commitments and Contingencies | ||
Stockholders' equity: | ||
Preferred stock; $0.01 par value; 100 million shares authorized; none issued and outstanding | 0 | 0 |
Common stock; $0.01 par value; 1 billion shares authorized; 197 million shares at January 31, 2021 and 196 million shares at October 31, 2020 issued | 2 | 2 |
Treasury stock at cost; 10.9 million shares at January 31, 2021 and 10.7 million shares at October 31, 2020 | (772) | (752) |
Additional paid-in-capital | 2,134 | 2,110 |
Retained earnings | 2,708 | 2,536 |
Accumulated other comprehensive loss | (536) | (599) |
Total stockholders' equity | 3,536 | 3,297 |
Total liabilities and equity | $ 7,494 | $ 7,218 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited) (Parenthetical) - $ / shares shares in Thousands | Jan. 31, 2021 | Oct. 31, 2020 |
Stockholders' equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | |
Preferred stock, shares authorized (in shares) | 100,000 | |
Preferred stock, issued and outstanding (in shares) | 0 | |
Common stock, par value (in dollars per share) | $ 0.01 | |
Common stock, shares authorized (in shares) | 1,000,000 | |
Common Stock, Shares, Issued | 197,000 | 196,000 |
Treasury Stock, Shares | 10,900 | 10,700 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
Cash flows from operating activities: | ||
Net income | $ 172 | $ 163 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 28 | 24 |
Amortization | 59 | 56 |
Share-based compensation | 43 | 39 |
Deferred tax expense | 1 | 18 |
Excess and obsolete inventory-related charges | 7 | 7 |
Gain on insurance proceeds received for damage to property, plant and equipment | 0 | (32) |
Other non-cash expense (income), net | 7 | 1 |
Changes in assets and liabilities: | ||
Accounts receivable | (38) | (3) |
Inventory | 0 | (36) |
Accounts payable | 4 | (26) |
Employee compensation and benefits | (54) | (63) |
Deferred revenue | 50 | 29 |
Income taxes payable | (1) | 10 |
Retirement and post-retirement benefits | (1) | (3) |
Other assets and liabilities | 18 | 13 |
Net cash provided by operating activities | 295 | 197 |
Cash flows from investing activities: | ||
Investments in property, plant and equipment | (28) | (32) |
Acquisition of businesses and intangible assets, net of cash acquired | (96) | (5) |
Insurance proceeds received for damage to property, plant and equipment | 0 | 32 |
Net cash used in investing activities | (124) | (5) |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock under employee stock plans | 28 | 26 |
Payment of taxes related to net share settlement of equity awards | (49) | (49) |
Treasury stock repurchases | (20) | (76) |
Payment of acquisition-related contingent consideration | (2) | 0 |
Net cash used in financing activities | (43) | (99) |
Effect of exchange rate movements | 8 | 0 |
Net increase in cash, cash equivalents, and restricted cash | 136 | 93 |
Cash, cash equivalents, and restricted cash at beginning of period | 1,767 | 1,600 |
Cash, cash equivalents, and restricted cash at end of period | $ 1,903 | $ 1,693 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENT OF EQUITY Statement - USD ($) $ in Millions | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Retained Earnings [Member] | AOCI Including Portion Attributable to Noncontrolling Interest [Member] |
Common Stock, Shares, Outstanding at Oct. 31, 2019 | 193,769,000 | |||||
Treasury Stock, Shares at Oct. 31, 2019 | (6,458,000) | |||||
Stockholders' Equity, Balance at Oct. 31, 2019 | $ 3,004 | $ 2 | $ 2,013 | $ (342) | $ 1,909 | $ (578) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock (shares) | 1,270,000 | |||||
Issuance of common stock ($) | 26 | 26 | ||||
Taxes related to net share settlement of equity awards | (49) | (49) | ||||
Share-based compensation | 41 | 41 | ||||
Net income | 163 | 163 | ||||
Other comprehensive income, net of tax | $ 17 | 17 | ||||
Treasury Stock, Shares, Acquired | (731,918,000) | (732,000) | ||||
Repurchase of common stock | $ (75) | $ (75) | ||||
Common Stock, Shares, Outstanding at Jan. 31, 2020 | 195,039,000 | |||||
Treasury Stock, Shares at Jan. 31, 2020 | (7,190,000) | |||||
Stockholders' Equity, Balance at Jan. 31, 2020 | $ 3,127 | $ 2 | 2,031 | $ (417) | 2,072 | (561) |
Common Stock, Shares, Outstanding at Oct. 31, 2020 | 195,661,000 | |||||
Treasury Stock, Shares at Oct. 31, 2020 | 10,700,000 | (10,732,000) | ||||
Stockholders' Equity, Balance at Oct. 31, 2020 | $ 3,297 | $ 2 | 2,110 | $ (752) | 2,536 | (599) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock (shares) | 1,193,000 | |||||
Issuance of common stock ($) | 28 | 28 | ||||
Taxes related to net share settlement of equity awards | (49) | (49) | ||||
Share-based compensation | 45 | 45 | ||||
Net income | 172 | 172 | ||||
Other comprehensive income, net of tax | $ 63 | 63 | ||||
Treasury Stock, Shares, Acquired | (137,200,000) | (137,000) | ||||
Repurchase of common stock | $ (20) | $ (20) | ||||
Common Stock, Shares, Outstanding at Jan. 31, 2021 | 196,854,000 | |||||
Treasury Stock, Shares at Jan. 31, 2021 | 10,900,000 | (10,869,000) | ||||
Stockholders' Equity, Balance at Jan. 31, 2021 | $ 3,536 | $ 2 | $ 2,134 | $ (772) | $ 2,708 | $ (536) |
OVERVIEW, BASIS OF PRESENTATION
OVERVIEW, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Jan. 31, 2021 | |
Accounting Policies [Abstract] | |
OVERVIEW, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | OVERVIEW 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 technology company that helps enterprises, service providers and governments accelerate innovation to connect and secure the world by providing electronic design and test solutions that are used in the simulation, design, validation, manufacture, installation, optimization and secure operation of electronics systems in the communications, networking and electronics industries. We also offer customization, consulting and optimization services throughout the customer's product lifecycle, including start-up assistance, asset management, up-time services, application services and instrument calibration and repair. 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. Basis of Presentation . We have prepared the accompanying financial statements pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the U.S. ("GAAP") 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. In the opinion of management, the accompanying condensed consolidated financial statements contain all normal and recurring adjustments necessary to state fairly our financial position as of January 31, 2021 and October 31, 2020, our results of operations for the three months ended January 31, 2021 and 2020 and cash flows for the three months ended January 31, 2021 and 2020. Use of Estimates. The preparation of condensed consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in our condensed 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 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, share-based compensation, retirement and post-retirement plan assumptions, valuation of goodwill and other intangible assets, warranty, loss contingencies, restructuring, and accounting for income taxes. Update to Significant Accounting Policies. There have been no material changes to our significant accounting policies as described in our Annual Report on Form 10-K for the fiscal year ended October 31, 2020. New Accounting Pronouncements. Accounting standard updates in the first quarter of fiscal 2021 that have been issued by the Financial Accounting Standards Board (“FASB”) or other standards-setting bodies are not material to our condensed consolidated financial statements. Other amendments to GAAP that do not require adoption until a future date are not expected to have a material impact on our condensed consolidated financial statements upon adoption. |
REVENUE (Notes)
REVENUE (Notes) | 3 Months Ended |
Jan. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | 2. REVENUE Disaggregation of Revenue We disaggregate our revenue from contracts with customers by geographic region, end market, and timing of revenue recognition, as we believe these categories best depict how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. Disaggregated revenue is presented for each of our reportable segments. Three Months Ended January 31, 2021 2020 Communications Solutions Group Electronic Industrial Solutions Group Total Communications Solutions Group Electronic Industrial Solutions Group Total (in millions) Region Americas $ 401 $ 67 $ 468 $ 386 $ 61 $ 447 Europe 132 70 202 115 71 186 Asia Pacific 319 191 510 317 145 462 Total revenue $ 852 $ 328 $ 1,180 $ 818 $ 277 $ 1,095 End Market Aerospace, Defense & Government $ 294 $ — $ 294 $ 245 $ — $ 245 Commercial Communications 558 — 558 573 — 573 Electronic Industrial — 328 328 — 277 277 Total revenue $ 852 $ 328 $ 1,180 $ 818 $ 277 $ 1,095 Timing of Revenue Recognition Revenue recognized at a point in $ 712 $ 284 $ 996 $ 701 $ 250 $ 951 Revenue recognized over time 140 44 184 117 27 144 Total revenue $ 852 $ 328 $ 1,180 $ 818 $ 277 $ 1,095 Our point-in-time revenues are generated predominantly from the sale of various types of design and test software and hardware, and per-incident repair and calibration services. Perpetual software and the portion of term software subscription revenue in this category represents revenue recognized up front upon transfer of control at the time of electronic delivery. Revenue on per-incident repair and calibration services is recognized as services are performed. Over-time revenues are generated predominantly from the repair and calibration contracts, extended warranties, technical support for hardware and software, certain software subscription and Software as a Service ("SaaS") product offerings, and professional services. Technical support for software and when-and-if available software updates and upgrades are sold either together with our software licenses and software subscriptions, including SaaS, or separately as part of our customer support programs. Additionally, we provide custom solutions that include combinations of hardware, software, software subscriptions, installation, professional services, and other support services, and revenue may be recognized either up front on delivery or over time depending upon the terms of the contract. Contract Balances The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables (contract assets) and deferred revenue (contract liabilities) on our condensed consolidated balance sheet. In addition, we defer and capitalize certain costs incurred to obtain a contract (contract costs). Contract assets. Contract assets represent unbilled amounts from arrangements for which we have performed by transferring goods or services to the customer in advance of invoicing for such goods and services. Contract assets arise primarily from service agreements and products delivered pending a formal customer acceptance, which generally occurs within 30 days. The contract assets balance was $51 million and $61 million at January 31, 2021 and October 31, 2020, respectively, and is included in "accounts receivables, net" in our condensed consolidated balance sheet. Contract costs. We recognize an asset for the incremental costs of obtaining a contract with a customer. We have determined that certain employee and third-party representative commissions programs meet the requirements to be capitalized. Employee commissions are based on the achievement of order volume compared to a sales target. Third-party representative commission costs relate directly to a customer contract as the commission is tied to orders contracted through and contracts arranged by our third-party representatives. Without obtaining the contracts, the commissions would not be paid and, as such, are determined to be an incremental cost to obtaining a contract. We only defer these costs when we have determined the commissions are, in fact, incremental and would not have been incurred absent the customer contract. Capitalized incremental costs are allocated to the individual performance obligations in proportion to the transaction price allocated to each performance obligation and amortized based on the pattern of performance for the underlying performance obligation. Contract costs related to initial contracts and renewals are amortized over the same period because the commissions paid on both the initial contract and renewals are commensurate with one another. The following table provides a roll-forward of our capitalized contract costs, current and non-current: Three Months Ended January 31, 2021 2020 (in millions) Beginning balance $ 31 $ 28 Costs capitalized during the period 21 16 Costs amortized during the period (18) (16) Ending balance $ 34 $ 28 Contract liabilities. Our contract liabilities consist of deferred revenue that arises when we receive consideration in advance of providing the goods or services promised in the contract. Contract liabilities are primarily generated from customer deposits received in advance of shipments for products or rendering of services and are recognized as revenue when services are provided to the customer. We classify deferred revenue as current or non-current based on the timing of when we expect to recognize revenue. Contract liabilities are recognized as revenue when services are provided to the customer. The following table provides a roll-forward of our contract liabilities, current and non-current: Three Months Ended January 31, 2021 2020 (in millions) Balance at October 31 $ 566 $ 510 Deferral of revenue billed in current period, net of recognition 214 161 Deferred revenue arising out of acquisitions 2 — Revenue recognized that was deferred as of the beginning of the period (164) (132) Foreign currency translation impact 4 — Balance at January 31 $ 622 $ 539 Remaining Performance Obligations Revenue expected to be recognized in any future period related to remaining performance obligations, excluding revenue pertaining to contracts that have an original expected duration of one year or less, was approximately $353 million as of January 31, 2021, and represents the company’s obligation to deliver products and services and obtain customer acceptance on delivered products. Since we typically invoice customers at contract inception, this amount is included in our current and long-term deferred revenue balances. As of January 31, 2021, we expect to recognize 39% of the revenue related to these unsatisfied performance obligations during the remainder of 2021, 36% during 2022, and 25% thereafter. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Jan. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 4. INCOME TAXES The company’s effective tax rate was 11.6 percent and 19.1 percent for the three months ended January 31, 2021 and 2020, respectively. The income tax expense was $23 million and $39 million for the three months ended January 31, 2021 and 2020, respectively. The income tax expense for the three months ended January 31, 2021 included a net discrete benefit of $11 million. The income tax expense for the three months ended January 31, 2020 included a net discrete expense of $3 million. The decrease in tax expense for the three months ended January 31, 2021 is primarily due to the increased benefit of U.S. state R&D credits and a reduction in U.S. states taxes on foreign earnings. Keysight benefits from tax incentives in several jurisdictions, most significantly in Singapore, that have granted us tax incentives that require renewal at various times in the future. The tax incentives provide lower rates of taxation on certain classes of income and require thresholds of investments and employment or specific types of income in those jurisdictions. The impact of the tax incentives decreased the income tax provision by $10 million and $15 million for the three months ended January 31, 2021 and 2020, respectively, resulting in a benefit to net income per share (diluted) of approximately $0.05 and $0.08 for the three months ended January 31, 2021 and 2020, respectively. The Singapore tax incentive is due for renewal in 2024. The incentive in Malaysia is due for renewal in 2025. The open tax years for the IRS and most states are from November 1, 2016 through the current tax year. Keysight’s 2018 U.S. federal income tax return is currently under examination by the IRS. This is the year in which the Tax Cuts and Jobs Act was enacted and the one-time U.S. tax on earnings not previously repatriated to the U.S., known as the Transition Tax, was reported. For the majority of our foreign entities, the open tax years are from November 1, 2015 through the current tax year. For certain foreign entities, the tax years remain open, at most, back to the year 2008. At this time, management does not believe that the outcome of any ongoing examination will have a material impact on our consolidated financial statements. We believe that an adequate provision has been made for any adjustments that may result from tax examinations. However, the outcome of tax examinations cannot be predicted with certainty. If resolution of any tax issues addressed in our current open examinations are inconsistent with management’s expectations, we may be required to adjust our tax provision for income taxes in the period such resolution occurs. Keysight’s 2008 Malaysian income tax return was examined by the Malaysian Tax Authority. This tax year pre-dates our separation from Agilent. However, pursuant to the tax matters agreement between Agilent and Keysight that was finalized at the time of separation, for certain entities, including Malaysia, any historical tax liability is the responsibility of Keysight. In the fourth quarter of fiscal year 2017, Keysight paid income taxes and penalties to the Malaysian Tax Authority of $68 million on gains related to intellectual property rights. Our appeal to the Special Commissioners of Income Tax in Malaysia was unsuccessful. An appeal has now been lodged with the High Court. The company believes there are numerous defenses to the |
NET INCOME PER SHARE
NET INCOME PER SHARE | 3 Months Ended |
Jan. 31, 2021 | |
Earnings Per Share [Abstract] | |
NET INCOME PER SHARE | 5. 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, 2021 2020 (in millions) Numerator: Net income $ 172 $ 163 Denominator: Basic weighted-average shares 186 188 Potential common shares— stock options and other employee stock plans 2 3 Diluted weighted-average shares 188 191 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 and the dilutive effect of in-the-money options and non-vested RSUs. Under the treasury stock method, the amount the employee must pay for exercising stock options and unamortized share-based compensation expense are collectively assumed to be used to repurchase hypothetical shares. 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 both the three months ended January 31, 2021 and 2020, we excluded zero options 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 awards and RSUs, whose combined exercise price and unamortized fair value collectively were greater than the average market price of our common stock because their effect would also be anti-dilutive. We excluded approximately 251,000 shares for the three months ended January 31, 2021. The impact was immaterial for the three months ended January 31, 2020. |
INVENTORY
INVENTORY | 3 Months Ended |
Jan. 31, 2021 | |
Inventory, Net [Abstract] | |
INVENTORY | 7. INVENTORY January 31, 2021 October 31, 2020 (in millions) Finished goods $ 335 $ 342 Purchased parts and fabricated assemblies 425 415 Total inventory $ 760 $ 757 Inventory-related excess and obsolescence charges recorded in total cost of products was $7 million for both the three months ended January 31, 2021 and 2020. We record excess and obsolete inventory charges for inventory at our sites as well as inventory at our contract manufacturers and suppliers, where we have non-cancellable purchase commitments. |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 3 Months Ended |
Jan. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | 8. GOODWILL AND OTHER INTANGIBLE ASSETS The goodwill balance as of January 31, 2021 and October 31, 2020 and the activity for the three months ended January 31, 2021 for each of our reportable operating segments were as follows: Communications Solutions Group Electronic Industrial Solutions Group Total (in millions) Goodwill at October 31, 2020 $ 984 $ 553 $ 1,537 Foreign currency translation impact 2 8 10 Goodwill arising from acquisitions 41 — 41 Goodwill at January 31, 2021 $ 1,027 $ 561 $ 1,588 Components of goodwill: Goodwill $ 1,693 $ 553 $ 2,246 Accumulated impairment losses (709) — (709) Goodwill at October 31, 2020 $ 984 $ 553 $ 1,537 Goodwill $ 1,736 $ 561 $ 2,297 Accumulated impairment losses (709) — (709) Goodwill at January 31, 2021 $ 1,027 $ 561 $ 1,588 Other intangible assets as of January 31, 2021 and October 31, 2020 consisted of the following: January 31, 2021 October 31, 2020 Gross Accumulated Net Book Gross Accumulated Net Book (in millions) Developed technology $ 942 $ 793 $ 149 $ 915 $ 749 $ 166 Backlog 17 15 2 17 14 3 Trademark/Tradename 36 26 10 35 25 10 Customer relationships 380 195 185 363 183 180 Non-compete agreements 3 1 2 1 1 — Total amortizable intangible assets 1,378 1,030 348 1,331 972 359 In-Process R&D 8 — 8 2 — 2 Total $ 1,386 $ 1,030 $ 356 $ 1,333 $ 972 $ 361 During the three months ended January 31, 2021, we acquired Sanjole Inc. ("Sanjole") for $96 million, net of $11 million cash acquired, and recognized additions to goodwill and other intangible assets of $41 million and $51 million, respectively, based on the preliminary allocation of the purchase price to the estimated fair values of the assets acquired and liabilities assumed. All goodwill was assigned to the Communications Solutions Group. We expect the goodwill recognized or any potential impairment charges in the future to be deductible for income tax purposes. The identified intangible assets primarily consist of developed technology of $24 million, customer relationships of $17 million and in-process R&D of $7 million. The estimated useful lives of developed technology and customer relationships is 7 years and 9 years, respectively. Sanjole is a leader in wireless test and measurement solutions for protocol decoding and interoperability. Goodwill is assessed for impairment on a reporting unit basis at least annually in the fourth quarter of each year, or more frequently when events and circumstances occur indicating that the recorded goodwill may be impaired. The company has not identified any triggering events that indicate an impairment of goodwill for the three months ended January 31, 2021. During the three months ended January 31, 2021, other intangible assets increased $3 million due to the impact of foreign exchange translation. Amortization of other intangible assets was $58 million and $55 million for the three months ended January 31, 2021 and 2020, respectively. During the three months ended January 31, 2021, we transferred $1 million from in-process R&D to developed technology as projects were successfully completed. Estimated intangible assets amortization expense for each of the five succeeding fiscal years is as follows: Amortization expense (in millions) 2021 (remainder) $ 114 2022 $ 95 2023 $ 72 2024 $ 32 2025 $ 16 Thereafter $ 19 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Jan. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | 9. 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, 2021 and October 31, 2020 were as follows: Fair Value Measurements at January 31, 2021 October 31, 2020 Total Level 1 Level 2 Level 3 Other Total Level 1 Level 2 Level 3 Other (in millions) Assets: Short-term Cash equivalents Money market funds $ 1,121 $ 1,121 $ — $ — $ — $ 1,047 $ 1,047 $ — $ — $ — Derivative instruments (foreign exchange contracts) 6 — 6 — — 3 — 3 — — Long-term Derivative instruments (interest rate swaps) 43 — 43 — — 23 — 23 — — Equity investments 52 52 — — — 52 52 — — — Equity investments - other 10 — — — 10 9 — — — 9 Total assets measured at fair value $ 1,232 $ 1,173 $ 49 $ — $ 10 $ 1,134 $ 1,099 $ 26 $ — $ 9 Liabilities: Short-term Derivative instruments (foreign exchange contracts) $ 4 $ — $ 4 $ — $ — $ 4 $ — $ 4 $ — $ — Long-term Deferred compensation liability 20 — 20 — — 18 — 18 — — Total liabilities measured at fair value $ 24 $ — $ 24 $ — $ — $ 22 $ — $ 22 $ — $ — Net realized gains (losses) on sale of our equity investments were zero for both the three months ended January 31, 2021 and 2020. Net unrealized losses on our equity investments still held were $2 million and zero for the three months ended January 31, 2021 and 2020, respectively. Our money market funds and equity investments with readily determinable fair values are measured at fair value using quoted market prices and, therefore, are classified within Level 1 of the fair value hierarchy. Equity investments without readily determinable fair values that are measured at cost adjusted for observable changes in price or impairments are not categorized in the fair value hierarchy and are presented as "Equity investments - other" in the table above. Our deferred compensation liability is classified as Level 2 because the inputs used in the calculations are observable, although the values are not directly based on quoted market prices. 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. |
DERIVATIVES
DERIVATIVES | 3 Months Ended |
Jan. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES | 10. 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, to hedge economic and/or accounting exposures resulting from changes in foreign currency exchange rates. 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 based on a rolling period of up to twelve months. These derivative instruments are designated and qualify as cash flow hedges under the criteria prescribed in the authoritative guidance. In fiscal 2020, we entered into forward starting interest rate swaps with an aggregate notional amount of $600 million associated with future interest payments on anticipated debt issuances through fiscal year 2024. The contract terms allow us to lock-in a treasury rate on anticipated debt issuances. These derivative instruments are designated and qualify as cash flow hedges under the criteria prescribed in the authoritative guidance. Non-designated 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. The number of open foreign exchange forward contracts designated as "cash flow hedges" and "not designated as hedging instruments" was 190 and 98, respectively, as of January 31, 2021. The aggregated notional amounts by currency and designation as of January 31, 2021 were as follows: Derivatives in Cash Flow Derivatives Not Designated as Hedging Instruments Forward Forward Currency Buy/(Sell) Buy/(Sell) (in millions) Euro $ 21 $ 33 British Pound — (122) Singapore Dollar 17 13 Malaysian Ringgit 82 13 Japanese Yen (76) (84) Other currencies 9 (7) Total $ 53 $ (154) Derivative instruments are subject to master netting arrangements and are disclosed gross in the condensed consolidated balance sheet. The gross fair values and balance sheet presentation of derivative instruments held as of January 31, 2021 and October 31, 2020 were as follows: Fair Values of Derivative Instruments Assets Derivatives Liabilities Derivatives Fair Value Fair Value Balance Sheet Location January 31, 2021 October 31, 2020 Balance Sheet Location January 31, 2021 October 31, 2020 (in millions) Derivatives designated as hedging instruments: Cash flow hedges Foreign exchange contracts Other current assets $ 5 $ 2 Other accrued liabilities $ 2 $ 3 Interest rate swap contracts: Other assets 43 23 Other long-term liabilities — — Derivatives not designated as hedging instruments: Foreign exchange contracts Other current assets 1 1 Other accrued liabilities 2 1 Total derivatives $ 49 $ 26 $ 4 $ 4 The effect of derivative instruments for foreign exchange contracts designated as hedging instruments and for those not designated as hedging instruments in our condensed consolidated statement of operations was as follows: Three Months Ended January 31, 2021 2020 (in millions) Derivatives designated as hedging instruments: Cash Flow Hedges Interest rate swap contracts: Gain (loss) recognized in accumulated other comprehensive income (loss) $ 21 $ — Foreign exchange contracts: Gain (loss) recognized in accumulated other comprehensive income (loss) $ 2 $ 2 Gain (loss) reclassified from accumulated other comprehensive income (loss) into earnings: Cost of products $ (1) $ (1) Selling, general and administrative $ 1 $ — Gain (loss) excluded from effectiveness testing recognized in earnings based on changes in fair value: Cost of products $ — $ 1 Derivatives not designated as hedging instruments: Gain (loss) recognized in: Cost of products $ 1 $ — Other income (expense), net $ (4) $ — The estimated amount at January 31, 2021 expected to be reclassified from accumulated other comprehensive income (loss) to earnings within the next twelve months is a gain of $1 million. |
RETIREMENT PLANS AND POST RETIR
RETIREMENT PLANS AND POST RETIREMENT PENSION PLANS | 3 Months Ended |
Jan. 31, 2021 | |
Retirement Benefits [Abstract] | |
RETIREMENT PLANS AND POST RETIREMENT PENSION PLANS | 11. RETIREMENT PLANS AND POST-RETIREMENT BENEFIT PLANS For the three months ended January 31, 2021 and 2020, our net pension and post-retirement benefit cost (benefit) was comprised of the following: Pensions U.S. Defined Benefit Plans Non-U.S. Defined Benefit U.S. Post-Retirement Three Months Ended January 31, 2021 2020 2021 2020 2021 2020 (in millions) Service cost—benefits earned during the period $ 6 $ 6 $ 4 $ 4 $ — $ — Interest cost on benefit obligation 5 6 4 4 1 1 Expected return on plan assets (13) (11) (20) (21) (3) (3) Amortization: Net actuarial loss 6 4 10 8 3 3 Prior service credit — — — — — (3) Net periodic benefit cost (benefit) $ 4 $ 5 $ (2) $ (5) $ 1 $ (2) We record the service cost component of net periodic benefit cost (benefit) in the same line item as other employee compensation costs. The non-service components of net periodic benefit cost (benefit), such as interest cost, expected return on assets, amortization of prior service cost, and actuarial gains or losses, are recorded within other income (expense), in the condensed consolidated statement of operations. 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, 2021 and 2020. We contributed $3 million and $2 million to our non-U.S. defined benefit plans during the three months ended January 31, 2021 and 2020, respectively. For the remainder of 2021, we are evaluating potential contributions to our U.S. Defined Benefit Plan or U.S. Post-Retirement Benefit Plan, although contributions are not required, and we expect to contribute $6 million to our non-U.S. defined benefit plans. |
LEASES (Notes)
LEASES (Notes) | 3 Months Ended |
Jan. 31, 2021 | |
Leases [Abstract] | |
Lessee, Operating Leases [Text Block] | 12. LEASES We have operating leases for items including office space, order fulfillment, sales and service centers, R&D and certain equipment, primarily automobiles. Our leases have remaining terms of up to 13 years, some of which may include options to extend the leases for 3 to 5 years. We consider options to renew in our lease terms and measurement of right-of-use ("ROU") assets and lease liabilities if we determine they are reasonably certain to be exercised. The weighted average lease term of our operating leases was 8.2 years and 6.3 years as of January 31, 2021 and 2020, respectively. The weighted average discount rate of our operating leases was 3% for both January 31, 2021 and 2020. The following table summarizes the components of our lease cost: Three Months Ended January 31, 2021 2020 (in millions) Operating lease cost $ 13 $ 11 Variable lease cost $ 5 $ 4 Costs associated with our short-term leases were immaterial for both the three months ended January 31, 2021 and 2020. Sublease income was immaterial for both the three months ended January 31, 2021 and 2020. Amounts related to finance lease activities for the three months ended January 31, 2021 and 2020 were not material. Supplemental cash flow information related to our leases was as follows: Three Months Ended January 31, 2021 2020 (in millions) Cash paid for amounts included in the measurement of lease liabilities — operating cash flows $ 13 $ 11 ROU assets obtained in exchange for operating lease obligations $ 41 $ 12 The increase in ROU assets was primarily driven by reassessment of a lease term triggered by significant leasehold improvements. Maturity Analysis of Liabilities The maturities of our operating leases as of January 31, 2021 with initial terms exceeding one year are as follows: Operating Leases (in millions) 2021 (remainder) $ 38 2022 43 2023 33 2024 24 2025 19 Thereafter 100 Total undiscounted lease liability 257 Imputed interest 31 Total discounted lease liability $ 226 Leases That Have Not Yet Commenced As of January 31, 2021, we did not have material leases that had not yet commenced. Lessor Disclosure Rental income from leasing out excess facilities was $3 million for both the three months ended January 31, 2021, and 2020, and is included in other operating expense (income), net. Other lessor arrangements were immaterial. |
WARRANTY, COMMITMENTS AND CONTI
WARRANTY, COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Jan. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
WARRANTY, COMMITMENTS AND CONTINGENCIES | 13. WARRANTIES, COMMITMENTS AND CONTINGENCIES Standard warranty Our warranties on products sold through direct sales channels are primarily for one year. Warranties for products sold through distribution channels are primarily for three years. We accrue for standard warranty costs based on historical trends in warranty charges. 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, 2021 2020 (in millions) Beginning balance $ 33 $ 38 Accruals for warranties, including change in estimates 9 5 Settlements made during the period (7) (8) Ending balance $ 35 $ 35 Accruals for warranties due within one year $ 21 $ 22 Accruals for warranties due after one year 14 13 Ending balance $ 35 $ 35 Commitments During the three months ended January 31, 2021, there were no material changes to our contractual commitments reported in the company’s 2020 Annual Report on Form 10-K. 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 probable and reasonably possible of having a material impact to our business, consolidated financial position, results of operations or cash flows. |
DEBT (Notes)
DEBT (Notes) | 3 Months Ended |
Jan. 31, 2021 | |
Debt Disclosure [Abstract] | |
DEBT | 14. DEBT The following table summarizes the components of our long-term debt: January 31, 2021 October 31, 2020 (in millions) 2024 Senior Notes at 4.55% ($600 face amount less unamortized costs of $2 and $2) $ 598 $ 598 2027 Senior Notes at 4.60% ($700 face amount less unamortized costs of $4 and $5) 696 695 2029 Senior Notes at 3.00% ($500 face amount less unamortized costs of $4 and $4) 496 496 Total debt $ 1,790 $ 1,789 Short-Term Debt Revolving Credit Facility We maintain a credit facility (the “Revolving Credit Facility”) that provides for a $450 million, five-year unsecured revolving credit facility that will expire on February 15, 2022. In addition, the Revolving Credit Facility permits us to increase the total commitments under this credit facility by up to $150 million (to a total of $600 million) in the aggregate on one or more occasions upon request. We may use amounts borrowed under the facility for general corporate purposes. As of January 31, 2021 and October 31, 2020, we had no borrowings outstanding under the Revolving Credit Facility. We were in compliance with the covenants of the Revolving Credit Facility during the three months ended January 31, 2021. Long-Term Debt There have been no changes to the principal, maturity, interest rates and interest payment terms of the senior notes during the three months ended January 31, 2021 as compared to the senior notes described in our Annual Report on Form 10-K for the fiscal year ended October 31, 2020. As of January 31, 2021 and October 31, 2020, we had $42 million and $40 million, respectively, of outstanding letters of credit and surety bonds 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, exceeded the carrying value less debt issuance costs by approximately $267 million and $236 |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 3 Months Ended |
Jan. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |
STOCKHOLDERS EQUITY | 15. STOCKHOLDERS' EQUITY Stock Repurchase Program On November 18, 2020, our board of directors approved a new stock repurchase program authorizing the purchase of up to $750 million of the company’s common stock. Our previously approved 2019 stock repurchase program authorizing the purchase of up to $500 million of the company’s common stock was nearly exhausted. Under our stock repurchase program, shares may be purchased from time to time, subject to general business and market conditions and other investment opportunities, through open market purchases, privately negotiated transactions or other means. All such shares and related costs are held as treasury stock and accounted for at trade date using the cost method. The stock repurchase program may be commenced, suspended or discontinued at any time at the company’s discretion and does not have an expiration date. For the three months ended January 31, 2021, we repurchased 137,200 shares of common stock for $20 million . For the three months ended January 31, 2020, we repurchased 731,918 shares of common stock for $75 million. Accumulated Other Comprehensive Loss Changes in accumulated other comprehensive loss by component and related tax effects for the three months ended January 31, 2021 and 2020 were as follows: Foreign currency translation Net defined benefit pension cost and post retirement plan costs Unrealized gains (losses) on derivatives Total Actuarial losses Prior service credits (in millions) As of October 31, 2020 $ (10) $ (600) $ (5) $ 16 $ (599) Other comprehensive income (loss) before reclassifications 31 — — 23 54 Amounts reclassified out of accumulated other comprehensive gain (loss) — 19 — — 19 Tax benefit (expense) — (5) — (5) (10) Other comprehensive income (loss) 31 14 — 18 63 As of January 31, 2021 $ 21 $ (586) $ (5) $ 34 $ (536) As of October 31, 2019 $ (43) $ (536) $ 4 $ (3) $ (578) Other comprehensive income (loss) before reclassifications — — — 2 2 Amounts reclassified out of accumulated other comprehensive gain (loss) — 17 (3) 1 15 Tax benefit (expense) — — 1 (1) — Other comprehensive income (loss) — 17 (2) 2 17 As of January 31, 2020 $ (43) $ (519) $ 2 $ (1) $ (561) Reclassifications out of accumulated other comprehensive loss for the three months ended January 31, 2021 and 2020 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, 2021 2020 (in millions) Unrealized gain (loss) on derivatives $ (1) $ (1) Cost of products 1 — Selling, general and administrative — — Benefit (provision) for income tax — (1) Net of Income tax Net defined benefit pension cost and post retirement plan costs: Net actuarial loss (19) (17) Prior service credits — 3 (19) (14) Total before income tax 5 (1) Benefit (provision) for income tax (14) (15) Net of income tax Total reclassifications for the period $ (14) $ (16) An amount in parentheses indicates a reduction to income and an increase to the accumulated 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 Benefit Plans"). |
SEGMENT INFORMATION
SEGMENT INFORMATION | 3 Months Ended |
Jan. 31, 2021 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | 16. SEGMENT INFORMATION We report our results in two reportable segments consisting of Communications Solutions Group and Electronic Industrial Solutions Group. Descriptions of our two reportable segments are as follows: T he Communications Solutions Group serves customers spanning the worldwide commercial communications and aerospace, defense, and government end markets. The group’s solutions consist of electronic design and test software, electronic measurement instruments, systems and related services. These solutions are used in the simulation, design, validation, manufacturing, installation, and optimization of electronic equipment and networks. The Electronic Industrial Solutions Group provides test and measurement solutions and related services across a broad set of electronic industrial end markets, focusing on high-value applications in the automotive and energy industry and measurement solutions for consumer electronics, education, general electronics design and manufacturing, and semiconductor design and manufacturing. The group provides design and test software, electronic measurement instruments and systems and related services used in the simulation, design, validation, manufacturing, installation and optimization of electronic equipment. With the acquisition of Eggplant, a leading software test automation company, we now have the ability to provide automated software test capabilities that include artificial intelligence (AI) and machine learning to automatically identify, build and execute tests critical to digital business success and a strong customer experience . The following tables reflect the results of our reportable segments under our management reporting system. These results are not necessarily in conformity with 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 share-based compensation expense, amortization of acquisition-related balances, acquisition and integration costs, a gain on an insurance settlement related to northern California wildfires, restructuring costs, interest income, interest expense and other items as noted in the reconciliations below. Communications Solutions Group Electronic Industrial Solutions Group Total Segments (in millions) Three months ended January 31, 2021: Revenue $ 852 $ 328 $ 1,180 Segment income from operations $ 224 $ 96 $ 320 Three months ended January 31, 2020: Revenue $ 818 $ 277 $ 1,095 Segment income from operations $ 201 $ 73 $ 274 The following table reconciles total reportable operating segments’ income from operations to our income before taxes, as reported: Three Months Ended January 31, 2021 2020 (in millions) Total reportable operating segments' income from operations $ 320 $ 274 Share-based compensation (43) (39) Amortization of acquisition-related balances (58) (59) Acquisition and integration costs (3) (2) Gain on insurance settlement — 32 Restructuring and other (4) (3) Income from operations, as reported 212 203 Interest income 1 6 Interest expense (20) (19) Other income (expense), net 2 12 Income before taxes, as reported $ 195 $ 202 |
SUPPLEMENTAL CASH FLOW INFORMAT
SUPPLEMENTAL CASH FLOW INFORMATION (Notes) | 3 Months Ended |
Jan. 31, 2021 | |
Other Significant Noncash Transactions [Line Items] | |
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | 6. SUPPLEMENTAL CASH FLOW INFORMATION Net cash paid for income taxes was $22 million and $9 million for the three months ended January 31, 2021 and 2020, respectively. Cash paid for interest was zero for both the three months ended January 31, 2021 and 2020. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheet to the amount shown in the condensed consolidated statement of cash flows: January 31, 2021 October 31, 2020 (in millions) Cash and cash equivalents $ 1,887 $ 1,756 Restricted cash included in other current assets 14 9 Restricted cash included in other assets 2 2 Total cash, cash equivalents, and restricted cash shown in the statement of cash flows $ 1,903 $ 1,767 Restricted cash included in other current assets primarily relates to short-term deficit reduction contribution to an escrow account for one of our non-U.S. defined benefit pension plans, and restricted cash included in other assets is primarily deposits held as collateral against bank guarantees. |
REVENUE DISSAGGREGATION OF REVE
REVENUE DISSAGGREGATION OF REVENUE (Tables) | 3 Months Ended |
Jan. 31, 2021 | |
Revenue Recognition [Abstract] | |
Disaggregation of Revenue [Table Text Block] | Disaggregation of Revenue We disaggregate our revenue from contracts with customers by geographic region, end market, and timing of revenue recognition, as we believe these categories best depict how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. Disaggregated revenue is presented for each of our reportable segments. Three Months Ended January 31, 2021 2020 Communications Solutions Group Electronic Industrial Solutions Group Total Communications Solutions Group Electronic Industrial Solutions Group Total (in millions) Region Americas $ 401 $ 67 $ 468 $ 386 $ 61 $ 447 Europe 132 70 202 115 71 186 Asia Pacific 319 191 510 317 145 462 Total revenue $ 852 $ 328 $ 1,180 $ 818 $ 277 $ 1,095 End Market Aerospace, Defense & Government $ 294 $ — $ 294 $ 245 $ — $ 245 Commercial Communications 558 — 558 573 — 573 Electronic Industrial — 328 328 — 277 277 Total revenue $ 852 $ 328 $ 1,180 $ 818 $ 277 $ 1,095 Timing of Revenue Recognition Revenue recognized at a point in $ 712 $ 284 $ 996 $ 701 $ 250 $ 951 Revenue recognized over time 140 44 184 117 27 144 Total revenue $ 852 $ 328 $ 1,180 $ 818 $ 277 $ 1,095 Our point-in-time revenues are generated predominantly from the sale of various types of design and test software and hardware, and per-incident repair and calibration services. Perpetual software and the portion of term software subscription revenue in this category represents revenue recognized up front upon transfer of control at the time of electronic delivery. Revenue on per-incident repair and calibration services is recognized as services are performed. Over-time revenues are generated predominantly from the repair and calibration contracts, extended warranties, technical support for hardware and software, certain software subscription and Software as a Service ("SaaS") product offerings, and professional services. Technical support for software and when-and-if available software updates and upgrades are sold either together with our software licenses and software subscriptions, including SaaS, or separately as part of our customer support programs. |
REVENUE CAPITALIZED CONTRACTUAL
REVENUE CAPITALIZED CONTRACTUAL COST (Tables) | 3 Months Ended |
Jan. 31, 2021 | |
Capitalized Contract Cost [Line Items] | |
Capitalized Contract Cost [Abstract] | The following table provides a roll-forward of our capitalized contract costs, current and non-current: Three Months Ended January 31, 2021 2020 (in millions) Beginning balance $ 31 $ 28 Costs capitalized during the period 21 16 Costs amortized during the period (18) (16) Ending balance $ 34 $ 28 |
REVENUE CONTRACT LIABILITIES (T
REVENUE CONTRACT LIABILITIES (Tables) | 3 Months Ended |
Jan. 31, 2021 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Table Text Block] | The following table provides a roll-forward of our contract liabilities, current and non-current: Three Months Ended January 31, 2021 2020 (in millions) Balance at October 31 $ 566 $ 510 Deferral of revenue billed in current period, net of recognition 214 161 Deferred revenue arising out of acquisitions 2 — Revenue recognized that was deferred as of the beginning of the period (164) (132) Foreign currency translation impact 4 — Balance at January 31 $ 622 $ 539 |
REVENUE Remaning Performace Obl
REVENUE Remaning Performace Obligations (Tables) | 3 Months Ended |
Jan. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Table Text Block] | Remaining Performance Obligations Revenue expected to be recognized in any future period related to remaining performance obligations, excluding revenue pertaining to contracts that have an original expected duration of one year or less, was approximately $353 million as of January 31, 2021, and represents the company’s obligation to deliver products and services and obtain customer acceptance on delivered products. Since we typically invoice customers at contract inception, this amount is included in our current and long-term deferred revenue balances. As of January 31, 2021, we expect to recognize 39% of the revenue related to these unsatisfied performance obligations during the remainder of 2021, 36% during 2022, and 25% thereafter. |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 3 Months Ended |
Jan. 31, 2021 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Allocated Share-based compensation expense disclosure | Three Months Ended January 31, 2021 2020 (in millions) Cost of products and services $ 7 $ 5 Research and development 9 8 Selling, general and administrative 27 26 Total share-based compensation expense $ 43 $ 39 |
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 TSR based performance awards: Three Months Ended January 31, 2021 2020 Volatility of Keysight shares 36 % 28 % Volatility of index 23 % 13 % Price-wise correlation with selected peers 67 % 61 % |
NET INCOME PER SHARE (Tables)
NET INCOME PER SHARE (Tables) | 3 Months Ended |
Jan. 31, 2021 | |
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, 2021 2020 (in millions) Numerator: Net income $ 172 $ 163 Denominator: Basic weighted-average shares 186 188 Potential common shares— stock options and other employee stock plans 2 3 Diluted weighted-average shares 188 191 |
SUPPLEMENTAL CASH FLOW INFORM_2
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 3 Months Ended |
Jan. 31, 2021 | |
Other Significant Noncash Transactions [Line Items] | |
Cash Flow, Supplemental Disclosures [Text Block] | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheet to the amount shown in the condensed consolidated statement of cash flows: January 31, 2021 October 31, 2020 (in millions) Cash and cash equivalents $ 1,887 $ 1,756 Restricted cash included in other current assets 14 9 Restricted cash included in other assets 2 2 Total cash, cash equivalents, and restricted cash shown in the statement of cash flows $ 1,903 $ 1,767 Restricted cash included in other current assets primarily relates to short-term deficit reduction contribution to an escrow account for one of our non-U.S. defined benefit pension plans, and restricted cash included in other assets is primarily deposits held as collateral against bank guarantees. |
INVENTORY (Tables)
INVENTORY (Tables) | 3 Months Ended |
Jan. 31, 2021 | |
Inventory, Net [Abstract] | |
INVENTORY | January 31, 2021 October 31, 2020 (in millions) Finished goods $ 335 $ 342 Purchased parts and fabricated assemblies 425 415 Total inventory $ 760 $ 757 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 3 Months Ended |
Jan. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill balances and movements for each reportable segments during the period | The goodwill balance as of January 31, 2021 and October 31, 2020 and the activity for the three months ended January 31, 2021 for each of our reportable operating segments were as follows: Communications Solutions Group Electronic Industrial Solutions Group Total (in millions) Goodwill at October 31, 2020 $ 984 $ 553 $ 1,537 Foreign currency translation impact 2 8 10 Goodwill arising from acquisitions 41 — 41 Goodwill at January 31, 2021 $ 1,027 $ 561 $ 1,588 Components of goodwill: Goodwill $ 1,693 $ 553 $ 2,246 Accumulated impairment losses (709) — (709) Goodwill at October 31, 2020 $ 984 $ 553 $ 1,537 Goodwill $ 1,736 $ 561 $ 2,297 Accumulated impairment losses (709) — (709) Goodwill at January 31, 2021 $ 1,027 $ 561 $ 1,588 |
Components of other intangibles during the period | Other intangible assets as of January 31, 2021 and October 31, 2020 consisted of the following: January 31, 2021 October 31, 2020 Gross Accumulated Net Book Gross Accumulated Net Book (in millions) Developed technology $ 942 $ 793 $ 149 $ 915 $ 749 $ 166 Backlog 17 15 2 17 14 3 Trademark/Tradename 36 26 10 35 25 10 Customer relationships 380 195 185 363 183 180 Non-compete agreements 3 1 2 1 1 — Total amortizable intangible assets 1,378 1,030 348 1,331 972 359 In-Process R&D 8 — 8 2 — 2 Total $ 1,386 $ 1,030 $ 356 $ 1,333 $ 972 $ 361 |
Finite-lived Intangible Assets Amortization Expense [Table Text Block] | Estimated intangible assets amortization expense for each of the five succeeding fiscal years is as follows: Amortization expense (in millions) 2021 (remainder) $ 114 2022 $ 95 2023 $ 72 2024 $ 32 2025 $ 16 Thereafter $ 19 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Jan. 31, 2021 | |
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 January 31, 2021 and October 31, 2020 were as follows: Fair Value Measurements at January 31, 2021 October 31, 2020 Total Level 1 Level 2 Level 3 Other Total Level 1 Level 2 Level 3 Other (in millions) Assets: Short-term Cash equivalents Money market funds $ 1,121 $ 1,121 $ — $ — $ — $ 1,047 $ 1,047 $ — $ — $ — Derivative instruments (foreign exchange contracts) 6 — 6 — — 3 — 3 — — Long-term Derivative instruments (interest rate swaps) 43 — 43 — — 23 — 23 — — Equity investments 52 52 — — — 52 52 — — — Equity investments - other 10 — — — 10 9 — — — 9 Total assets measured at fair value $ 1,232 $ 1,173 $ 49 $ — $ 10 $ 1,134 $ 1,099 $ 26 $ — $ 9 Liabilities: Short-term Derivative instruments (foreign exchange contracts) $ 4 $ — $ 4 $ — $ — $ 4 $ — $ 4 $ — $ — Long-term Deferred compensation liability 20 — 20 — — 18 — 18 — — Total liabilities measured at fair value $ 24 $ — $ 24 $ — $ — $ 22 $ — $ 22 $ — $ — |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 3 Months Ended |
Jan. 31, 2021 | |
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, 2021 were as follows: Derivatives in Cash Flow Derivatives Not Designated as Hedging Instruments Forward Forward Currency Buy/(Sell) Buy/(Sell) (in millions) Euro $ 21 $ 33 British Pound — (122) Singapore Dollar 17 13 Malaysian Ringgit 82 13 Japanese Yen (76) (84) Other currencies 9 (7) Total $ 53 $ (154) |
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 condensed consolidated balance sheet. The gross fair values and balance sheet presentation of derivative instruments held as of January 31, 2021 and October 31, 2020 were as follows: Fair Values of Derivative Instruments Assets Derivatives Liabilities Derivatives Fair Value Fair Value Balance Sheet Location January 31, 2021 October 31, 2020 Balance Sheet Location January 31, 2021 October 31, 2020 (in millions) Derivatives designated as hedging instruments: Cash flow hedges Foreign exchange contracts Other current assets $ 5 $ 2 Other accrued liabilities $ 2 $ 3 Interest rate swap contracts: Other assets 43 23 Other long-term liabilities — — Derivatives not designated as hedging instruments: Foreign exchange contracts Other current assets 1 1 Other accrued liabilities 2 1 Total derivatives $ 49 $ 26 $ 4 $ 4 |
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 for those not designated as hedging instruments in our condensed consolidated statement of operations was as follows: Three Months Ended January 31, 2021 2020 (in millions) Derivatives designated as hedging instruments: Cash Flow Hedges Interest rate swap contracts: Gain (loss) recognized in accumulated other comprehensive income (loss) $ 21 $ — Foreign exchange contracts: Gain (loss) recognized in accumulated other comprehensive income (loss) $ 2 $ 2 Gain (loss) reclassified from accumulated other comprehensive income (loss) into earnings: Cost of products $ (1) $ (1) Selling, general and administrative $ 1 $ — Gain (loss) excluded from effectiveness testing recognized in earnings based on changes in fair value: Cost of products $ — $ 1 Derivatives not designated as hedging instruments: Gain (loss) recognized in: Cost of products $ 1 $ — Other income (expense), net $ (4) $ — |
RETIREMENT PLANS AND POST RET_2
RETIREMENT PLANS AND POST RETIREMENT PENSION PLANS (Tables) | 3 Months Ended |
Jan. 31, 2021 | |
Retirement Benefits [Abstract] | |
Schedule of net pension and post-retirement benefit costs | For the three months ended January 31, 2021 and 2020, our net pension and post-retirement benefit cost (benefit) was comprised of the following: Pensions U.S. Defined Benefit Plans Non-U.S. Defined Benefit U.S. Post-Retirement Three Months Ended January 31, 2021 2020 2021 2020 2021 2020 (in millions) Service cost—benefits earned during the period $ 6 $ 6 $ 4 $ 4 $ — $ — Interest cost on benefit obligation 5 6 4 4 1 1 Expected return on plan assets (13) (11) (20) (21) (3) (3) Amortization: Net actuarial loss 6 4 10 8 3 3 Prior service credit — — — — — (3) Net periodic benefit cost (benefit) $ 4 $ 5 $ (2) $ (5) $ 1 $ (2) |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Jan. 31, 2021 | |
Leases [Abstract] | |
Lease, Cost [Table Text Block] | The following table summarizes the components of our lease cost: Three Months Ended January 31, 2021 2020 (in millions) Operating lease cost $ 13 $ 11 Variable lease cost $ 5 $ 4 Costs associated with our short-term leases were immaterial for both the three months ended January 31, 2021 and 2020. Sublease income was immaterial for both the three months ended January 31, 2021 and 2020. Amounts related to finance lease activities for the three months ended January 31, 2021 and 2020 were not material. Supplemental cash flow information related to our leases was as follows: Three Months Ended January 31, 2021 2020 (in millions) Cash paid for amounts included in the measurement of lease liabilities — operating cash flows $ 13 $ 11 ROU assets obtained in exchange for operating lease obligations $ 41 $ 12 |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Maturity Analysis of Liabilities The maturities of our operating leases as of January 31, 2021 with initial terms exceeding one year are as follows: Operating Leases (in millions) 2021 (remainder) $ 38 2022 43 2023 33 2024 24 2025 19 Thereafter 100 Total undiscounted lease liability 257 Imputed interest 31 Total discounted lease liability $ 226 |
WARRANTY, COMMITMENTS AND CON_2
WARRANTY, COMMITMENTS AND CONTINGENCIES (Tables) | 3 Months Ended |
Jan. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Standard warranty | 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, 2021 2020 (in millions) Beginning balance $ 33 $ 38 Accruals for warranties, including change in estimates 9 5 Settlements made during the period (7) (8) Ending balance $ 35 $ 35 Accruals for warranties due within one year $ 21 $ 22 Accruals for warranties due after one year 14 13 Ending balance $ 35 $ 35 |
DEBT (Tables)
DEBT (Tables) | 3 Months Ended |
Jan. 31, 2021 | |
Debt Instrument | |
Schedule of Long-term Debt Instruments | The following table summarizes the components of our long-term debt: January 31, 2021 October 31, 2020 (in millions) 2024 Senior Notes at 4.55% ($600 face amount less unamortized costs of $2 and $2) $ 598 $ 598 2027 Senior Notes at 4.60% ($700 face amount less unamortized costs of $4 and $5) 696 695 2029 Senior Notes at 3.00% ($500 face amount less unamortized costs of $4 and $4) 496 496 Total debt $ 1,790 $ 1,789 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 3 Months Ended |
Jan. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Changes in accumulated other comprehensive loss by component and related tax effects for the three months ended January 31, 2021 and 2020 were as follows: Foreign currency translation Net defined benefit pension cost and post retirement plan costs Unrealized gains (losses) on derivatives Total Actuarial losses Prior service credits (in millions) As of October 31, 2020 $ (10) $ (600) $ (5) $ 16 $ (599) Other comprehensive income (loss) before reclassifications 31 — — 23 54 Amounts reclassified out of accumulated other comprehensive gain (loss) — 19 — — 19 Tax benefit (expense) — (5) — (5) (10) Other comprehensive income (loss) 31 14 — 18 63 As of January 31, 2021 $ 21 $ (586) $ (5) $ 34 $ (536) As of October 31, 2019 $ (43) $ (536) $ 4 $ (3) $ (578) Other comprehensive income (loss) before reclassifications — — — 2 2 Amounts reclassified out of accumulated other comprehensive gain (loss) — 17 (3) 1 15 Tax benefit (expense) — — 1 (1) — Other comprehensive income (loss) — 17 (2) 2 17 As of January 31, 2020 $ (43) $ (519) $ 2 $ (1) $ (561) |
Reclassification out of Accumulated Other Comprehensive Income | Reclassifications out of accumulated other comprehensive loss for the three months ended January 31, 2021 and 2020 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, 2021 2020 (in millions) Unrealized gain (loss) on derivatives $ (1) $ (1) Cost of products 1 — Selling, general and administrative — — Benefit (provision) for income tax — (1) Net of Income tax Net defined benefit pension cost and post retirement plan costs: Net actuarial loss (19) (17) Prior service credits — 3 (19) (14) Total before income tax 5 (1) Benefit (provision) for income tax (14) (15) Net of income tax Total reclassifications for the period $ (14) $ (16) |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 3 Months Ended |
Jan. 31, 2021 | |
Segment Reporting Information [Line Items] | |
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | Communications Solutions Group Electronic Industrial Solutions Group Total Segments (in millions) Three months ended January 31, 2021: Revenue $ 852 $ 328 $ 1,180 Segment income from operations $ 224 $ 96 $ 320 Three months ended January 31, 2020: Revenue $ 818 $ 277 $ 1,095 Segment income from operations $ 201 $ 73 $ 274 |
SEGMENT INFORMATION Segment Pro
SEGMENT INFORMATION Segment Profitability (Tables) | 3 Months Ended |
Jan. 31, 2021 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block] | The following table reconciles total reportable operating segments’ income from operations to our income before taxes, as reported: Three Months Ended January 31, 2021 2020 (in millions) Total reportable operating segments' income from operations $ 320 $ 274 Share-based compensation (43) (39) Amortization of acquisition-related balances (58) (59) Acquisition and integration costs (3) (2) Gain on insurance settlement — 32 Restructuring and other (4) (3) Income from operations, as reported 212 203 Interest income 1 6 Interest expense (20) (19) Other income (expense), net 2 12 Income before taxes, as reported $ 195 $ 202 |
REVENUE (Details)
REVENUE (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 1,180 | $ 1,095 |
Communications Solutions Group | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 852 | 818 |
Electronic Industrial Solutions Group | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 328 | 277 |
Revenue recognized at a point in time | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 996 | 951 |
Revenue recognized at a point in time | Communications Solutions Group | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 712 | 701 |
Revenue recognized at a point in time | Electronic Industrial Solutions Group | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 284 | 250 |
Revenue recognized over time | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 184 | 144 |
Revenue recognized over time | Communications Solutions Group | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 140 | 117 |
Revenue recognized over time | Electronic Industrial Solutions Group | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 44 | 27 |
Aerospace, Defense & Government | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 294 | 245 |
Aerospace, Defense & Government | Communications Solutions Group | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 294 | 245 |
Aerospace, Defense & Government | Electronic Industrial Solutions Group | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
Commercial Communications | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 558 | 573 |
Commercial Communications | Communications Solutions Group | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 558 | 573 |
Commercial Communications | Electronic Industrial Solutions Group | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
Electronic Industrial | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 328 | 277 |
Electronic Industrial | Communications Solutions Group | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
Electronic Industrial | Electronic Industrial Solutions Group | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 328 | 277 |
Americas | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 468 | 447 |
Americas | Communications Solutions Group | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 401 | 386 |
Americas | Electronic Industrial Solutions Group | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 67 | 61 |
Europe | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 202 | 186 |
Europe | Communications Solutions Group | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 132 | 115 |
Europe | Electronic Industrial Solutions Group | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 70 | 71 |
Asia Pacific | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 510 | 462 |
Asia Pacific | Communications Solutions Group | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 319 | 317 |
Asia Pacific | Electronic Industrial Solutions Group | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 191 | $ 145 |
REVENUE Contract Assets (Detail
REVENUE Contract Assets (Details) - USD ($) $ in Millions | Jan. 31, 2021 | Oct. 31, 2020 |
Accounts Receivable [Member] | ||
Contract with Customer, Asset, after Allowance for Credit Loss, Current | $ 51 | $ 61 |
REVENUE Capitalized Contractu_2
REVENUE Capitalized Contractual Cost (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
Capitalized Contract Cost [Line Items] | ||
Capitalized Contract Cost, Judgment | Capitalized incremental costs are allocated to the individual performance obligations in proportion to the transaction price allocated to each performance obligation and amortized based on the pattern of performance for the underlying performance obligation. Contract costs related to initial contracts and renewals are amortized over the same period because the commissions paid on both the initial contract and renewals are commensurate with one another. | |
Beginning balance | $ 31 | $ 28 |
Costs capitalized during the period | 21 | 16 |
Costs amortized during the period | (18) | (16) |
Ending balance | $ 34 | $ 28 |
REVENUE CONTRACT LIABILITIES RO
REVENUE CONTRACT LIABILITIES ROLL FORWARD (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
Balance at October 31 | $ 566 | $ 510 |
Deferral of revenue billed in current period, net of recognition | 214 | 161 |
Deferred revenue arising out of acquisitions | 2 | 0 |
Revenue recognized that was deferred as of the beginning of the period | (164) | (132) |
Foreign currency translation impact | 4 | 0 |
Balance at January 31 | $ 622 | $ 539 |
REVENUE Remaining performance o
REVENUE Remaining performance obligations (Details) $ in Millions | 3 Months Ended |
Jan. 31, 2021USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Revenue, Remaining Performance Obligation, Amount | $ 353 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Document Period End Date | Jan. 31, 2021 |
Revenue, Remaining Performance Obligation, Amount | $ 353 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-02-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 9 months |
Revenue, Remaining Performance Obligation, Percentage | 39.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Year | 2021 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-11-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Percentage | 36.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Year | 2022 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-11-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | |
Revenue, Remaining Performance Obligation, Percentage | 25.00% |
SHARE-BASED COMPENSATION (Alloc
SHARE-BASED COMPENSATION (Allocation of period costs) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
Share-based Compensation Expense, Allocation of Recognized Period Costs [Line Items] | ||
Share-based Compensation Expense | $ 43 | $ 39 |
Cost of products and services | ||
Share-based Compensation Expense, Allocation of Recognized Period Costs [Line Items] | ||
Share-based Compensation Expense | 7 | 5 |
Research and development | ||
Share-based Compensation Expense, Allocation of Recognized Period Costs [Line Items] | ||
Share-based Compensation Expense | 9 | 8 |
Selling, general and administrative | ||
Share-based Compensation Expense, Allocation of Recognized Period Costs [Line Items] | ||
Share-based Compensation Expense | $ 27 | $ 26 |
SHARE-BASED COMPENSATION SHARE-
SHARE-BASED COMPENSATION SHARE-BASED COMPENSATION (Textuals) (Details) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | ||
Share-based Compensation, Capitalized within inventory | $ 2 | $ 2 |
Options, Grants in Period | 0 | 0 |
SHARE-BASED COMPENSATION (Fair
SHARE-BASED COMPENSATION (Fair Value Assumptions) (Details) - shares shares in Thousands | 3 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options, Grants in Period | 0 | 0 |
LTPP [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Volatility of Keysight shares (in hundredths) | 36.00% | 28.00% |
Volatility of index | 23.00% | 13.00% |
Price-wise correlation with selected peers (in hundredths) | 67.00% | 61.00% |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Effective Income Tax Rate, Percent | 11.60% | 19.10% |
Provision for income taxes | $ 23 | $ 39 |
Net Discrete Expense (Benefit) | $ (11) | $ 3 |
INCOME TAXES INCOME TAXES (Tax
INCOME TAXES INCOME TAXES (Tax incentives) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Tax incentives, Description | Keysight benefits from tax incentives in several jurisdictions, most significantly in Singapore, that have granted us tax incentives that require renewal at various times in the future. The tax incentives provide lower rates of taxation on certain classes of income and require thresholds of investments and employment or specific types of income in those jurisdictions. | |
Decrease in income tax provision due to tax incentives, Aggregate Dollar Amount | $ 10 | $ 15 |
Decrease in income tax provision due to tax incentives, Income Tax Benefits Per Share | $ 0.05 | $ 0.08 |
INCOME TAXES INCOME TAXES (Inco
INCOME TAXES INCOME TAXES (Income tax examination) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2021 | Apr. 30, 2018 | |
Internal Revenue Service (IRS) | ||
Income Tax Examination [Line Items] | ||
Open tax year, from date | Nov. 1, 2016 | |
Malaysia Tax Authority [Member] | ||
Income Tax Examination [Line Items] | ||
Income Tax Examination, Description | . This tax year pre-dates our separation from Agilent. However, pursuant to the tax matters agreement between Agilent and Keysight that was finalized at the time of separation, for certain entities, including Malaysia, any historical tax liability is the responsibility of Keysight. | |
Income Tax Examination, Penalties and Interest Expense | $ 68 |
NET INCOME PER SHARE NET INCOME
NET INCOME PER SHARE NET INCOME PER SHARE (Computation) (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
Numerator: | ||
Net income | $ 172 | $ 163 |
Denominator: | ||
Basic weighted-average shares | 186 | 188 |
Potential common shares— stock options and other employee stock plans | 2 | 3 |
Diluted weighted-average shares | 188 | 191 |
NET INCOME PER SHARE (Narrative
NET INCOME PER SHARE (Narratives) (Details) - shares | 3 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
Stock Options | ||
Antidilutive Securities Excluded from EPS Computation | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Number | 0 | 0 |
Stock Options, ESPP, LTPP and restricted stock combined exercise price, unamortized fair value, excess tax benefits or shortfalls greater than average market price | ||
Antidilutive Securities Excluded from EPS Computation | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Number | 251,000 |
SUPPLEMENTAL CASH FLOW INFORM_3
SUPPLEMENTAL CASH FLOW INFORMATION (Narratives) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
Supplemental Cash Flow Elements [Abstract] | ||
Income Taxes Paid, Net | $ 22 | $ 9 |
Cash paid for interest | $ 0 | $ 0 |
SUPPLEMENTAL CASH FLOW INFORM_4
SUPPLEMENTAL CASH FLOW INFORMATION (Cash, cash equivalents an restricted cash reconciliation) (Details) - USD ($) $ in Millions | Jan. 31, 2021 | Oct. 31, 2020 | Jan. 31, 2020 | Oct. 31, 2019 |
Cash and cash equivalents | $ 1,887 | $ 1,756 | ||
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows | 1,903 | 1,767 | $ 1,693 | $ 1,600 |
Other Current Assets [Member] | ||||
Restricted cash included in other current assets | 14 | 9 | ||
Other Assets [Member] | ||||
Restricted cash included in other assets | $ 2 | $ 2 |
INVENTORY (Details)
INVENTORY (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Oct. 31, 2020 | |
Inventory, Net [Abstract] | |||
Finished goods | $ 335 | $ 342 | |
Purchased parts and fabricated assemblies | 425 | 415 | |
Total inventory | 760 | $ 757 | |
Excess and obsolete inventory-related charges | $ 7 | $ 7 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS (Goodwill Roll forward) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2021 | Oct. 31, 2020 | |
Goodwill [Roll Forward] | ||
Goodwill | $ 1,588 | $ 1,537 |
Foreign currency translation impact | 10 | |
Goodwill, Acquired During Period | 41 | |
Goodwill, Gross | 2,297 | 2,246 |
Goodwill, Impaired, Accumulated Impairment Loss | (709) | (709) |
Communications Solutions Group | ||
Goodwill [Roll Forward] | ||
Goodwill | 1,027 | 984 |
Foreign currency translation impact | 2 | |
Goodwill, Acquired During Period | 41 | |
Goodwill, Gross | 1,736 | 1,693 |
Goodwill, Impaired, Accumulated Impairment Loss | (709) | (709) |
Electronic Industrial Solutions Group | ||
Goodwill [Roll Forward] | ||
Goodwill | 561 | 553 |
Foreign currency translation impact | 8 | |
Goodwill, Acquired During Period | 0 | |
Goodwill, Gross | 561 | 553 |
Goodwill, Impaired, Accumulated Impairment Loss | $ 0 | $ 0 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS (Disclosures and Components of Purchased Other Intangibles) (Details) - USD ($) $ in Millions | Jan. 31, 2021 | Oct. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Amortizable intangible assets, Gross carrying amount | $ 1,378 | $ 1,331 |
Accumulated Amortization and impairments | 1,030 | 972 |
Amortizable intangible assets, Net book value | 348 | 359 |
In-Process R&D | 8 | 2 |
Intangible Assets, Gross (Excluding Goodwill) | 1,386 | 1,333 |
Intangible Assets, Net (Excluding Goodwill) | 356 | 361 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortizable intangible assets, Gross carrying amount | 942 | 915 |
Accumulated Amortization and impairments | 793 | 749 |
Amortizable intangible assets, Net book value | 149 | 166 |
Backlog | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortizable intangible assets, Gross carrying amount | 17 | 17 |
Accumulated Amortization and impairments | 15 | 14 |
Amortizable intangible assets, Net book value | 2 | 3 |
Trademark/Tradename | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortizable intangible assets, Gross carrying amount | 36 | 35 |
Accumulated Amortization and impairments | 26 | 25 |
Amortizable intangible assets, Net book value | 10 | 10 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortizable intangible assets, Gross carrying amount | 380 | 363 |
Accumulated Amortization and impairments | 195 | 183 |
Amortizable intangible assets, Net book value | 185 | 180 |
Noncompete Agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortizable intangible assets, Gross carrying amount | 3 | 1 |
Accumulated Amortization and impairments | 1 | 1 |
Amortizable intangible assets, Net book value | $ 2 | $ 0 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS (Acquisition Narratives) (Details) - USD ($) $ in Millions | Dec. 30, 2020 | Jan. 31, 2021 | Jan. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | |||
Payments to Acquire Businesses, Net of Cash Acquired | $ 96 | $ 5 | |
Goodwill, Acquired During Period | 41 | ||
Indefinite-lived Intangible Assets Acquired | 7 | ||
Developed technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived Intangible Assets Acquired | $ 24 | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 7 years | ||
Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived Intangible Assets Acquired | $ 17 | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 9 years | ||
Communications Solutions Group | |||
Finite-Lived Intangible Assets [Line Items] | |||
Payments to Acquire Businesses, Net of Cash Acquired | $ 96 | ||
Cash Acquired from Acquisition | $ 11 | ||
Goodwill, Acquired During Period | $ 41 | ||
Finite-lived Intangible Assets Acquired | $ 51 |
GOODWILL AND OTHER INTANGIBLE_6
GOODWILL AND OTHER INTANGIBLE ASSETS (Intangible assets narratives) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Finite Lived Intangible Assets, Foreign Currency Translation Gain (Loss) | $ 3 | |
Amortization of Intangible Assets | 58 | $ 55 |
Finite-Lived Intangible Assets, Period Increase (Decrease) | $ 1 |
GOODWILL AND OTHER INTANGIBLE_7
GOODWILL AND OTHER INTANGIBLE ASSETS (Finite-Lived Assets Future Amortization Expense) (Details) $ in Millions | Jan. 31, 2021USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
2021 (remainder) | $ 114 |
2022 | 95 |
2023 | 72 |
2024 | 32 |
2025 | 16 |
Thereafter | $ 19 |
FAIR VALUE MEASUREMENTS (Fair v
FAIR VALUE MEASUREMENTS (Fair value of assets and liabilities measured on a recurring basis) (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions | Jan. 31, 2021 | Oct. 31, 2020 |
Assets Short - term [Abstract] | ||
Money market funds | $ 1,121 | $ 1,047 |
Derivative instruments (foreign exchange contracts) | 6 | 3 |
Assets, Long-term [Abstract] | ||
Interest Rate Derivative Assets, at Fair Value | 43 | 23 |
Equity investments | 52 | 52 |
Equity investments - other | 10 | 9 |
Total assets measured at fair value | 1,232 | 1,134 |
Liabilities, Short-term [Abstract] | ||
Derivative instruments (foreign exchange contracts) | 4 | 4 |
Liabilities Long-term [Abstract] | ||
Deferred compensation liability | 20 | 18 |
Total liabilities measured at fair value | 24 | 22 |
Level 1 | ||
Assets Short - term [Abstract] | ||
Money market funds | 1,121 | 1,047 |
Derivative instruments (foreign exchange contracts) | 0 | 0 |
Assets, Long-term [Abstract] | ||
Interest Rate Derivative Assets, at Fair Value | 0 | 0 |
Equity investments | 52 | 52 |
Equity investments - other | 0 | 0 |
Total assets measured at fair value | 1,173 | 1,099 |
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 |
Level 2 | ||
Assets Short - term [Abstract] | ||
Money market funds | 0 | 0 |
Derivative instruments (foreign exchange contracts) | 6 | 3 |
Assets, Long-term [Abstract] | ||
Interest Rate Derivative Assets, at Fair Value | 43 | 23 |
Equity investments | 0 | 0 |
Equity investments - other | 0 | 0 |
Total assets measured at fair value | 49 | 26 |
Liabilities, Short-term [Abstract] | ||
Derivative instruments (foreign exchange contracts) | 4 | 4 |
Liabilities Long-term [Abstract] | ||
Deferred compensation liability | 20 | 18 |
Total liabilities measured at fair value | 24 | 22 |
Level 3 | ||
Assets Short - term [Abstract] | ||
Money market funds | 0 | 0 |
Derivative instruments (foreign exchange contracts) | 0 | 0 |
Assets, Long-term [Abstract] | ||
Interest Rate Derivative Assets, at Fair Value | 0 | 0 |
Equity investments | 0 | 0 |
Equity investments - other | 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 |
FAIR VALUE MEASUREMENTS FAIR VA
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS (Net recognized gains losses on equity securities) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
Debt and Equity Securities, Gain (Loss) [Abstract] | ||
Equity Securities, FV-NI, Unrealized Gain (Loss) | $ 2 | $ 0 |
Equity Securities, FV-NI, Realized Gain (Loss) | $ 0 | $ 0 |
DERIVATIVES Derivative, interes
DERIVATIVES Derivative, interest rate swaps (Details) $ in Millions | Jan. 31, 2021USD ($) |
Treasury Lock | |
Derivative [Line Items] | |
Derivative Liability, Notional Amount | $ 600 |
DERIVATIVES, Disclosures and de
DERIVATIVES, Disclosures and derivative instrument aggregated notional amounts by currency and designations (Details) - Foreign Exchange Forward $ in Millions | Jan. 31, 2021USD ($)contracts |
Cash Flow Hedging | |
Derivative [Line Items] | |
Number of Foreign Currency Derivatives Held | contracts | 190 |
Not Designated as Hedging Instrument | |
Derivative [Line Items] | |
Number of Foreign Currency Derivatives Held | contracts | 98 |
Designated as Hedging Instruments | Buy | Cash Flow Hedging | |
Derivative [Line Items] | |
Derivative Liability, Notional Amount | $ (53) |
Designated as Hedging Instruments | Buy | Euro | Cash Flow Hedging | |
Derivative [Line Items] | |
Derivative Liability, Notional Amount | (21) |
Designated as Hedging Instruments | Buy | British Pound | Cash Flow Hedging | |
Derivative [Line Items] | |
Derivative Liability, Notional Amount | 0 |
Designated as Hedging Instruments | Buy | Singapore Dollar | Cash Flow Hedging | |
Derivative [Line Items] | |
Derivative Liability, Notional Amount | (17) |
Designated as Hedging Instruments | Buy | Malaysian Ringgit | Cash Flow Hedging | |
Derivative [Line Items] | |
Derivative Liability, Notional Amount | (82) |
Designated as Hedging Instruments | Buy | Other currencies | Cash Flow Hedging | |
Derivative [Line Items] | |
Derivative Liability, Notional Amount | (9) |
Designated as Hedging Instruments | Sell | Japanese Yen | Cash Flow Hedging | |
Derivative [Line Items] | |
Derivative Liability, Notional Amount | (76) |
Not Designated as Hedging Instrument | Buy | Euro | |
Derivative [Line Items] | |
Derivative Liability, Notional Amount | (33) |
Not Designated as Hedging Instrument | Buy | Singapore Dollar | |
Derivative [Line Items] | |
Derivative Liability, Notional Amount | (13) |
Not Designated as Hedging Instrument | Buy | Malaysian Ringgit | |
Derivative [Line Items] | |
Derivative Liability, Notional Amount | (13) |
Not Designated as Hedging Instrument | Sell | |
Derivative [Line Items] | |
Derivative Liability, Notional Amount | (154) |
Not Designated as Hedging Instrument | Sell | British Pound | |
Derivative [Line Items] | |
Derivative Liability, Notional Amount | (122) |
Not Designated as Hedging Instrument | Sell | Japanese Yen | |
Derivative [Line Items] | |
Derivative Liability, Notional Amount | (84) |
Not Designated as Hedging Instrument | Sell | Other currencies | |
Derivative [Line Items] | |
Derivative Liability, Notional Amount | $ (7) |
DERIVATIVES, Fair value of deri
DERIVATIVES, Fair value of derivative instruments and Consolidated Balance Sheet location (Details) - USD ($) $ in Millions | Jan. 31, 2021 | Oct. 31, 2020 |
Derivative Fair Value by Balance Sheet Location [Abstract] | ||
Total derivatives Asset | $ 49 | $ 26 |
Total derivatives Liabilities | 4 | 4 |
Designated as Hedging Instruments | Cash Flow Hedging | Foreign Exchange Contracts | Other Current Assets [Member] | ||
Derivative Fair Value by Balance Sheet Location [Abstract] | ||
Total derivatives Asset | 5 | 2 |
Designated as Hedging Instruments | Cash Flow Hedging | Foreign Exchange Contracts | Other Accrued Liabilities [Member] | ||
Derivative Fair Value by Balance Sheet Location [Abstract] | ||
Total derivatives Liabilities | 2 | 3 |
Designated as Hedging Instruments | Cash Flow Hedging | Treasury Lock | Other Noncurrent Liabilities [Member] | ||
Derivative Fair Value by Balance Sheet Location [Abstract] | ||
Total derivatives Liabilities | 0 | 0 |
Designated as Hedging Instruments | Cash Flow Hedging | Treasury Lock | Other Assets [Member] | ||
Derivative Fair Value by Balance Sheet Location [Abstract] | ||
Total derivatives Asset | 43 | 23 |
Not Designated as Hedging Instrument | Foreign Exchange Contracts | Other Current Assets [Member] | ||
Derivative Fair Value by Balance Sheet Location [Abstract] | ||
Total derivatives Asset | 1 | 1 |
Not Designated as Hedging Instrument | Foreign Exchange Contracts | Other Accrued Liabilities [Member] | ||
Derivative Fair Value by Balance Sheet Location [Abstract] | ||
Total derivatives Liabilities | $ 2 | $ 1 |
DERIVATIVES, Effect of derivati
DERIVATIVES, Effect of derivative instruments on Consolidated Statement of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
Derivative [Line Items] | ||
Cash Flow Hedge Gain (Loss) to be Reclassified within next Twelve Months | $ 1 | |
Treasury Lock | ||
Derivative [Line Items] | ||
Derivative Liability, Notional Amount | 600 | |
Designated as Hedging Instruments | Cash Flow Hedging | Interest Rate Swap [Member] | Accumulated Other Comprehensive Income (Loss) | ||
Derivative [Line Items] | ||
Gain (loss) recognized in accumulated other comprehensive income (loss) | 21 | $ 0 |
Designated as Hedging Instruments | Cash Flow Hedging | Foreign Exchange Contracts | Accumulated Other Comprehensive Income (Loss) | ||
Derivative [Line Items] | ||
Gain (loss) recognized in accumulated other comprehensive income (loss) | 2 | 2 |
Designated as Hedging Instruments | Cash Flow Hedging | Foreign Exchange Contracts | Selling, general and administrative | ||
Derivative [Line Items] | ||
Gain (loss) reclassified from accumulated other comprehensive income (loss) into earnings: | 1 | 0 |
Designated as Hedging Instruments | Cash Flow Hedging | Foreign Exchange Contracts | Cost of products and services | ||
Derivative [Line Items] | ||
Gain (loss) reclassified from accumulated other comprehensive income (loss) into earnings: | (1) | (1) |
Gain (loss) excluded from effectiveness testing recognized in earnings based on changes in fair value: | 0 | 1 |
Not Designated as Hedging Instrument | Other (income) expense, net | ||
Derivative [Line Items] | ||
Other income (expense), net | (4) | 0 |
Not Designated as Hedging Instrument | Cost of products and services | ||
Derivative [Line Items] | ||
Other income (expense), net | $ 1 | $ 0 |
RETIREMENT PLANS AND POST RET_3
RETIREMENT PLANS AND POST RETIREMENT PENSION PLANS (Net Pension and post-retirement benefit cost(benefit) components) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
Defined benefit plan | United States | ||
Defined Benefit Plan Disclosure | ||
Service cost—benefits earned during the period | $ 6 | $ 6 |
Interest cost on benefit obligation | 5 | 6 |
Expected return on plan assets | (13) | (11) |
Net actuarial loss | 6 | 4 |
Prior service credit | 0 | 0 |
Net periodic benefit cost (benefit) | 4 | 5 |
Defined benefit plan | Non-US | ||
Defined Benefit Plan Disclosure | ||
Service cost—benefits earned during the period | 4 | 4 |
Interest cost on benefit obligation | 4 | 4 |
Expected return on plan assets | (20) | (21) |
Net actuarial loss | 10 | 8 |
Prior service credit | 0 | 0 |
Net periodic benefit cost (benefit) | (2) | (5) |
Post-retirement Benefits Plan | United States | ||
Defined Benefit Plan Disclosure | ||
Service cost—benefits earned during the period | 0 | 0 |
Interest cost on benefit obligation | 1 | 1 |
Expected return on plan assets | (3) | (3) |
Net actuarial loss | 3 | 3 |
Prior service credit | 0 | (3) |
Net periodic benefit cost (benefit) | $ 1 | $ (2) |
RETIREMENT PLANS AND POST RET_4
RETIREMENT PLANS AND POST RETIREMENT PENSION PLANS (Contributions) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
United States | Defined benefit plan | ||
Defined Benefit Plan Disclosure | ||
Contributions by employer | $ 0 | $ 0 |
United States | Post-retirement Benefits Plan | ||
Defined Benefit Plan Disclosure | ||
Contributions by employer | 0 | 0 |
Non-US | Defined benefit plan | ||
Defined Benefit Plan Disclosure | ||
Contributions by employer | 3 | $ 2 |
Estimated future employer contributions in remainder of current fiscal year | $ 6 |
LEASES (Details)
LEASES (Details) | 3 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
Leases [Abstract] | ||
Lessee, Operating Lease, Description | We have operating leases for items including office space, order fulfillment, sales and service centers, R&D and certain equipment, primarily automobiles. Our leases have remaining terms of up to 13 years, some of which may include options to extend the leases for 3 to 5 years. We consider options to renew in our lease terms and measurement of right-of-use ("ROU") assets and lease liabilities if we determine they are reasonably certain to be exercised. | |
Operating Lease, Weighted Average Remaining Lease Term | 8 years 2 months 12 days | 6 years 3 months 18 days |
Operating Lease, Weighted Average Discount Rate, Percent | 3.00% | 3.00% |
LEASES COST (Details)
LEASES COST (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
Leases [Abstract] | ||
Operating lease cost | $ 13 | $ 11 |
Variable lease cost | $ 5 | $ 4 |
LEASES Supplemental Information
LEASES Supplemental Information related to leases (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
Leases [Abstract] | ||
Cash paid for amounts included in the measurement of lease liabilities — operating cash flows | $ 13 | $ 11 |
ROU assets obtained in exchange for operating lease obligations | $ 41 | $ 12 |
LEASES Maturity analysis (Detai
LEASES Maturity analysis (Details) $ in Millions | Jan. 31, 2021USD ($) |
Leases [Abstract] | |
2021 (remainder) | $ 38 |
2022 | 43 |
2023 | 33 |
2024 | 24 |
2025 | 19 |
Thereafter | 100 |
Total undiscounted lease liability | 257 |
Imputed interest | 31 |
Operating Lease, Liability | $ 226 |
LEASES Lessor disclosure (Detai
LEASES Lessor disclosure (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
Leases [Abstract] | ||
Rental Income, Nonoperating | $ 3 | $ 3 |
WARRANTIES AND CONTINGENCIES (D
WARRANTIES AND CONTINGENCIES (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
Guarantees [Abstract] | ||
Standard Product Warranty Description | Our warranties on products sold through direct sales channels are primarily for one year. Warranties for products sold through distribution channels are primarily for three years. | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Beginning balance at beginning of period | $ 33 | $ 38 |
Accruals for warranties, including change in estimates | 9 | 5 |
Settlements made during the period | (7) | (8) |
Ending balance at end of period | 35 | 35 |
Standard Product Warranty Disclosure [Abstract] | ||
Accruals for warranties due within one year | 21 | 22 |
Accruals for warranties due after one year | 14 | 13 |
Ending balance at end of period | $ 35 | $ 35 |
DEBT Long Term Debt (Details)
DEBT Long Term Debt (Details) - USD ($) $ in Millions | Jan. 31, 2021 | Oct. 31, 2020 |
Debt Instrument | ||
Total debt | $ 1,790 | $ 1,789 |
Senior Notes 2024 | ||
Debt Instrument | ||
Total debt | 598 | 598 |
Unamortized costs | 2 | 2 |
Senior Notes 2027 | ||
Debt Instrument | ||
Total debt | 696 | 695 |
Unamortized costs | 4 | 5 |
Senior Notes 2029 | ||
Debt Instrument | ||
Total debt | 496 | 496 |
Unamortized costs | $ 4 | $ 4 |
DEBT (Short-Term Debt - Revolvi
DEBT (Short-Term Debt - Revolving Credit Facility) (Details) $ in Millions | 3 Months Ended |
Jan. 31, 2021USD ($) | |
Line of Credit Facility | |
Document Period End Date | Jan. 31, 2021 |
Facility, Covenant Compliance | We were in compliance with the covenants of the Revolving Credit Facility during the three months ended January 31, 2021. |
Revolving Credit Facility | |
Line of Credit Facility | |
Facility, Maximum Borrowing Capacity | $ 450 |
Facility, Expiration Date | Feb. 15, 2022 |
Additional drawings on credit facility | $ 150 |
Facility, Outstanding | $ 0 |
DEBT Debt (Textuals) (Details)
DEBT Debt (Textuals) (Details) - USD ($) $ in Millions | Jan. 31, 2021 | Oct. 31, 2020 |
Short-term Debt [Line Items] | ||
Letters of Credit Outstanding, Amount | $ 42 | $ 40 |
Long Term Debt Fair Value Over Carrying Value | 267 | 236 |
Line of Credit Facility | ||
Letters of Credit Outstanding, Amount | $ 42 | $ 40 |
STOCKHOLDERS' EQUITY (Stock Rep
STOCKHOLDERS' EQUITY (Stock Repurchase Program) (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Jan. 31, 2021 | Jan. 31, 2020 | Nov. 18, 2020 | May 29, 2019 | |
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Stock Repurchase Program, Authorized Amount | $ 750 | $ 500 | ||
Treasury Stock, Shares, Acquired | 137,200,000 | 731,918,000 | ||
Treasury Stock, Value, Acquired, Cost Method | $ 20 | $ 75 |
STOCKHOLDER'S EQUITY - Accumula
STOCKHOLDER'S EQUITY - Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | $ (599) | $ (578) |
Other comprehensive income (loss) before reclassifications | 54 | 2 |
Amounts reclassified out of accumulated other comprehensive gain (loss) | 19 | 15 |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | (10) | 0 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent, Total | 63 | 17 |
Ending balance | (536) | (561) |
Foreign currency translation | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (10) | (43) |
Other comprehensive income (loss) before reclassifications | 31 | 0 |
Amounts reclassified out of accumulated other comprehensive gain (loss) | 0 | 0 |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | 0 | 0 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent, Total | 31 | 0 |
Ending balance | 21 | (43) |
Actuarial losses | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (600) | (536) |
Other comprehensive income (loss) before reclassifications | 0 | 0 |
Amounts reclassified out of accumulated other comprehensive gain (loss) | 19 | 17 |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | (5) | 0 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent, Total | 14 | 17 |
Ending balance | (586) | (519) |
Prior service credits | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (5) | 4 |
Other comprehensive income (loss) before reclassifications | 0 | 0 |
Amounts reclassified out of accumulated other comprehensive gain (loss) | 0 | (3) |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | 0 | 1 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent, Total | 0 | (2) |
Ending balance | (5) | 2 |
Unrealized gains (losses) on derivatives | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 16 | (3) |
Other comprehensive income (loss) before reclassifications | 23 | 2 |
Amounts reclassified out of accumulated other comprehensive gain (loss) | 0 | 1 |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | (5) | (1) |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent, Total | 18 | 2 |
Ending balance | $ 34 | $ (1) |
STOCKHOLDERS' EQUITY - Reclassi
STOCKHOLDERS' EQUITY - Reclassifications out of accumulated comprehensive income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Cost of products | $ 473 | $ 440 |
Selling, general and administrative | 301 | 300 |
Benefit (provision) for income tax | (23) | (39) |
Net income | 172 | 163 |
Income before taxes | 195 | 202 |
Reclassification out of Accumulated Other Comprehensive Income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Net income | (14) | (16) |
Unrealized gain (loss) on derivatives | Reclassification out of Accumulated Other Comprehensive Income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Cost of products | (1) | (1) |
Selling, general and administrative | 1 | 0 |
Benefit (provision) for income tax | 0 | 0 |
Net income | 0 | (1) |
Net defined benefit pension cost and post retirement plan costs, actuarial losses | Reclassification out of Accumulated Other Comprehensive Income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Income before taxes | (19) | (17) |
Net defined benefit pension cost and post retirement plan costs, prior service credits | Reclassification out of Accumulated Other Comprehensive Income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Income before taxes | 0 | 3 |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent | Reclassification out of Accumulated Other Comprehensive Income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Benefit (provision) for income tax | 5 | (1) |
Net income | (14) | (15) |
Income before taxes | $ (19) | $ (14) |
SEGMENT INFORMATION Profitabili
SEGMENT INFORMATION Profitability (Details) $ in Millions | 3 Months Ended | |
Jan. 31, 2021USD ($)segment | Jan. 31, 2020USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of Reportable Segments | segment | 2 | |
Segment Reporting, Additional Information about Entity's Reportable Segments | The Communications Solutions Group serves customers spanning the worldwide commercial communications and aerospace, defense, and government end markets. The group’s solutions consist of electronic design and test software, electronic measurement instruments, systems and related services. These solutions are used in the simulation, design, validation, manufacturing, installation, and optimization of electronic equipment and networks.The Electronic Industrial Solutions Group provides test and measurement solutions and related services across a broad set of electronic industrial end markets, focusing on high-value applications in the automotive and energy industry and measurement solutions for consumer electronics, education, general electronics design and manufacturing, and semiconductor design and manufacturing. The group provides design and test software, electronic measurement instruments and systems and related services used in the simulation, design, validation, manufacturing, installation and optimization of electronic equipment. With the acquisition of Eggplant, a leading software test automation company, we now have the ability to provide automated software test capabilities that include artificial intelligence (AI) and machine learning to automatically identify, build and execute tests critical to digital business success and a strong customer experience. | |
Revenue | $ 1,180 | $ 1,095 |
Segment income from operations | 212 | 203 |
Communications Solutions Group | ||
Segment Reporting Information [Line Items] | ||
Revenue | 852 | 818 |
Electronic Industrial Solutions Group | ||
Segment Reporting Information [Line Items] | ||
Revenue | 328 | 277 |
Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Segment income from operations | 320 | 274 |
Operating Segments [Member] | Communications Solutions Group | ||
Segment Reporting Information [Line Items] | ||
Segment income from operations | 224 | 201 |
Operating Segments [Member] | Electronic Industrial Solutions Group | ||
Segment Reporting Information [Line Items] | ||
Segment income from operations | $ 96 | $ 73 |
SEGMENT INFORMATION Reconciliat
SEGMENT INFORMATION Reconciliation of Reportable Results (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Abstract] | ||
Total reportable operating segments' income from operations | $ 212 | $ 203 |
Share-based Payment Arrangement, Expensed and Capitalized, Amount | (43) | (39) |
Amortization of acquisition-related balances | (58) | (59) |
Business Combination, Acquisition Related Costs | (3) | (2) |
Northern California wildfire-related costs | 0 | 32 |
Restructuring and other | (4) | (3) |
Income from operations | 212 | 203 |
Interest income | 1 | 6 |
Interest Expense, Deposits | (20) | (19) |
Other Nonoperating Gains (Losses) | 2 | 12 |
Income before taxes | 195 | 202 |
Operating Segments [Member] | ||
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Abstract] | ||
Total reportable operating segments' income from operations | 320 | 274 |
Income from operations | $ 320 | $ 274 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) | 3 Months Ended |
Jan. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Reporting, Additional Information about Entity's Reportable Segments | The Communications Solutions Group serves customers spanning the worldwide commercial communications and aerospace, defense, and government end markets. The group’s solutions consist of electronic design and test software, electronic measurement instruments, systems and related services. These solutions are used in the simulation, design, validation, manufacturing, installation, and optimization of electronic equipment and networks.The Electronic Industrial Solutions Group provides test and measurement solutions and related services across a broad set of electronic industrial end markets, focusing on high-value applications in the automotive and energy industry and measurement solutions for consumer electronics, education, general electronics design and manufacturing, and semiconductor design and manufacturing. The group provides design and test software, electronic measurement instruments and systems and related services used in the simulation, design, validation, manufacturing, installation and optimization of electronic equipment. With the acquisition of Eggplant, a leading software test automation company, we now have the ability to provide automated software test capabilities that include artificial intelligence (AI) and machine learning to automatically identify, build and execute tests critical to digital business success and a strong customer experience. |