Cover Page
Cover Page - shares | 9 Months Ended | |
Jul. 31, 2022 | Aug. 26, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jul. 31, 2022 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2022 | |
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 $0.01 per share | |
Trading Symbol | KEYS | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 178,796,275 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2022 | Jul. 31, 2021 | |
Net revenue: | ||||
Revenues | $ 1,376 | $ 1,246 | $ 3,977 | $ 3,647 |
Costs and expenses: | ||||
Cost of Goods and Services Sold | 499 | 458 | 1,437 | 1,415 |
Research and development | 206 | 207 | 626 | 615 |
Selling, general and administrative | 317 | 302 | 962 | 900 |
Other operating expense (income), net | (3) | (5) | (3) | (14) |
Total costs and expenses | 1,019 | 962 | 3,022 | 2,916 |
Income from operations | 357 | 284 | 955 | 731 |
Interest income | 4 | 1 | 6 | 2 |
Interest expense | (20) | (20) | (59) | (59) |
Other income (expense), net | 5 | 5 | 15 | (1) |
Income before taxes | 346 | 270 | 917 | 673 |
Provision for income taxes | 8 | 16 | 92 | 61 |
Net income | $ 338 | $ 254 | $ 825 | $ 612 |
Net income per share: | ||||
Basic (in dollars per share) | $ 1.89 | $ 1.38 | $ 4.56 | $ 3.31 |
Diluted (in dollars per share) | $ 1.87 | $ 1.36 | $ 4.52 | $ 3.27 |
Weighted average shares used in computing net income per share: | ||||
Basic (in shares) | 179 | 184 | 181 | 185 |
Diluted (in shares) | 181 | 186 | 182 | 187 |
Products | ||||
Net revenue: | ||||
Revenues | $ 1,140 | $ 1,021 | $ 3,282 | $ 2,987 |
Costs and expenses: | ||||
Cost of Goods and Services Sold | 410 | 370 | 1,175 | 1,151 |
Services and other | ||||
Net revenue: | ||||
Revenues | 236 | 225 | 695 | 660 |
Costs and expenses: | ||||
Cost of Goods and Services Sold | $ 89 | $ 88 | $ 262 | $ 264 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2022 | Jul. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 338 | $ 254 | $ 825 | $ 612 |
Other comprehensive income (loss): | ||||
Unrealized gain (loss) on derivative instruments, net of tax benefit (expense) of $3, $7, $(7) and $(4) | (11) | (22) | 29 | 18 |
Amounts reclassified into earnings related to derivative instruments, net of tax benefit (expense) of zero | (1) | (1) | (3) | (1) |
Foreign currency translation, net of tax benefit (expense) of zero | (20) | (7) | (106) | 10 |
Net defined benefit pension cost and post retirement plan costs: | ||||
Change in net actuarial loss, net of tax expense of $3, $6, $7 and $16 | 6 | 13 | 22 | 44 |
Other comprehensive income (loss) | (26) | (17) | (58) | 71 |
Total comprehensive income | $ 312 | $ 237 | $ 767 | $ 683 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2022 | Jul. 31, 2021 | |
Other comprehensive income (loss), tax, parenthetical disclosures [Abstract] | ||||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification, Tax | $ 3 | $ 7 | $ (7) | $ (4) |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, Tax | 0 | 0 | 0 | 0 |
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax | 0 | 0 | 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 | $ 3 | $ 6 | $ 7 | $ 16 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited) - USD ($) $ in Millions | Jul. 31, 2022 | Oct. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 1,847 | $ 2,052 |
Accounts receivable, net | 882 | 735 |
Inventory | 837 | 777 |
Other current assets | 395 | 270 |
Total current assets | 3,961 | 3,834 |
Property, plant and equipment, net | 668 | 650 |
Operating lease right-of-use assets | 225 | 227 |
Goodwill | 1,606 | 1,628 |
Other intangible assets, net | 216 | 272 |
Long-term investments | 73 | 70 |
Long-term deferred tax assets | 661 | 711 |
Other assets | 442 | 389 |
Total assets | 7,852 | 7,781 |
Current liabilities: | ||
Accounts payable | 328 | 287 |
Employee compensation and benefits | 275 | 355 |
Deferred revenue | 496 | 478 |
Income and other taxes payable | 63 | 74 |
Operating lease liabilities | 40 | 41 |
Other accrued liabilities | 110 | 74 |
Total current liabilities | 1,312 | 1,309 |
Long-term debt | 1,792 | 1,791 |
Retirement and post-retirement benefits | 131 | 167 |
Long-term deferred revenue | 200 | 187 |
Long-term operating lease liabilities | 192 | 191 |
Other long-term liabilities | 305 | 352 |
Total liabilities | 3,932 | 3,997 |
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; 199 million shares at July 31, 2022 and 197 million shares at October 31, 2021 issued | 2 | 2 |
Treasury stock at cost; 19.7 million shares at July 31, 2022 and 15.1 million shares at October 31, 2021 | (2,148) | (1,425) |
Additional paid-in-capital | 2,311 | 2,219 |
Retained earnings | 4,255 | 3,430 |
Accumulated other comprehensive loss | (500) | (442) |
Total stockholders' equity | 3,920 | 3,784 |
Total liabilities and equity | $ 7,852 | $ 7,781 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited) (Parenthetical) - $ / shares shares in Thousands | Jul. 31, 2022 | Oct. 31, 2021 |
Stockholders' equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 100,000 | 100,000 |
Preferred stock, issued and outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Common Stock, Shares, Issued | 199,000 | 197,000 |
Treasury Stock, Shares | 19,700 | 15,100 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
Cash flows from operating activities: | ||
Net income | $ 825 | $ 612 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 88 | 87 |
Amortization | 80 | 149 |
Share-based compensation | 102 | 83 |
Deferred tax expense (benefit) | 19 | (49) |
Excess and obsolete inventory-related charges | 18 | 20 |
Loss on settlement of pension plan | 0 | 16 |
Other non-cash expense (income), net | 30 | 7 |
Changes in assets and liabilities: | ||
Accounts receivable | (166) | (64) |
Inventory | (88) | (30) |
Accounts payable | 41 | 10 |
Employee compensation and benefits | (81) | (12) |
Deferred revenue | 69 | 86 |
Income taxes payable | (59) | 8 |
Retirement and post-retirement benefits | (21) | 5 |
Other assets and liabilities | (111) | 26 |
Net cash provided by operating activities | 746 | 954 |
Cash flows from investing activities: | ||
Investments in property, plant and equipment | (127) | (101) |
Acquisition of businesses and intangible assets, net of cash acquired | (33) | (136) |
Purchase of investments | (30) | 0 |
Other investing activities | 0 | (1) |
Net cash used in investing activities | (190) | (238) |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock under employee stock plans | 63 | 59 |
Payment of taxes related to net share settlement of equity awards | (74) | (53) |
Treasury stock repurchases | (723) | (320) |
Payment of acquisition-related contingent consideration | 0 | (2) |
Other financing activities | 0 | (1) |
Net cash used in financing activities | (734) | (317) |
Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | (27) | 4 |
Net increase (decrease) in cash, cash equivalents, and restricted cash | (205) | 403 |
Cash, cash equivalents, and restricted cash at beginning of period | 2,068 | 1,767 |
Cash, cash equivalents, and restricted cash at end of period | 1,863 | 2,170 |
Supplemental Cash Flow Elements [Abstract] | ||
Interest Paid, Excluding Capitalized Interest, Operating Activities | 37 | 37 |
Income tax paid, net | 157 | 100 |
Investments in property, plant and equipment included in accounts payable | $ 23 | $ 27 |
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, 2020 | 195,661,000 | |||||
Treasury Stock, Shares at Oct. 31, 2020 | (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) | 1,558,000 | |||||
Issuance of common stock ($) | 59 | 59 | ||||
Taxes related to net share settlement of equity awards | (52) | (52) | ||||
Share-based compensation | 83 | 83 | ||||
Net income | 612 | 612 | ||||
Other comprehensive income (loss), net of tax | $ 71 | 71 | ||||
Treasury Stock, Shares, Acquired | (2,297,600) | (2,298,000) | ||||
Repurchase of common stock | $ (320) | $ (320) | ||||
Common Stock, Shares, Outstanding at Jul. 31, 2021 | 197,219,000 | |||||
Treasury Stock, Shares at Jul. 31, 2021 | (13,030,000) | |||||
Stockholders' Equity, Balance at Jul. 31, 2021 | 3,750 | $ 2 | 2,200 | $ (1,072) | 3,148 | (528) |
Common Stock, Shares, Outstanding at Apr. 30, 2021 | 196,901,000 | |||||
Treasury Stock, Shares at Apr. 30, 2021 | (12,461,000) | |||||
Stockholders' Equity, Balance at Apr. 30, 2021 | 3,545 | $ 2 | 2,152 | $ (992) | 2,894 | (511) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock (shares) | 318,000 | |||||
Issuance of common stock ($) | 30 | 30 | ||||
Taxes related to net share settlement of equity awards | (1) | (1) | ||||
Share-based compensation | 19 | 19 | ||||
Net income | 254 | 254 | ||||
Other comprehensive income (loss), net of tax | (17) | (17) | ||||
Treasury Stock, Shares, Acquired | (569,000) | |||||
Repurchase of common stock | (80) | $ (80) | ||||
Common Stock, Shares, Outstanding at Jul. 31, 2021 | 197,219,000 | |||||
Treasury Stock, Shares at Jul. 31, 2021 | (13,030,000) | |||||
Stockholders' Equity, Balance at Jul. 31, 2021 | $ 3,750 | $ 2 | 2,200 | $ (1,072) | 3,148 | (528) |
Common Stock, Shares, Outstanding at Oct. 31, 2021 | 197,248,000 | |||||
Treasury Stock, Shares at Oct. 31, 2021 | 15,100,000 | (15,094,000) | ||||
Stockholders' Equity, Balance at Oct. 31, 2021 | $ 3,784 | $ 2 | 2,219 | $ (1,425) | 3,430 | (442) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock (shares) | 1,268,000 | |||||
Issuance of common stock ($) | 63 | 63 | ||||
Taxes related to net share settlement of equity awards | (73) | (73) | ||||
Share-based compensation | 102 | 102 | ||||
Net income | 825 | 825 | ||||
Other comprehensive income (loss), net of tax | $ (58) | (58) | ||||
Treasury Stock, Shares, Acquired | (4,646,427) | (4,646,000) | ||||
Repurchase of common stock | $ (723) | $ (723) | ||||
Common Stock, Shares, Outstanding at Jul. 31, 2022 | 198,516,000 | |||||
Treasury Stock, Shares at Jul. 31, 2022 | 19,700,000 | (19,740,000) | ||||
Stockholders' Equity, Balance at Jul. 31, 2022 | $ 3,920 | $ 2 | 2,311 | $ (2,148) | 4,255 | (500) |
Common Stock, Shares, Outstanding at Apr. 30, 2022 | 198,229,000 | |||||
Treasury Stock, Shares at Apr. 30, 2022 | (18,101,000) | |||||
Stockholders' Equity, Balance at Apr. 30, 2022 | 3,779 | $ 2 | 2,254 | $ (1,920) | 3,917 | (474) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock (shares) | 287,000 | |||||
Issuance of common stock ($) | 32 | 32 | ||||
Taxes related to net share settlement of equity awards | 0 | 0 | ||||
Share-based compensation | 25 | 25 | ||||
Net income | 338 | |||||
Other comprehensive income (loss), net of tax | (26) | (26) | ||||
Treasury Stock, Shares, Acquired | (1,639,000) | |||||
Repurchase of common stock | $ (228) | $ (228) | ||||
Common Stock, Shares, Outstanding at Jul. 31, 2022 | 198,516,000 | |||||
Treasury Stock, Shares at Jul. 31, 2022 | 19,700,000 | (19,740,000) | ||||
Stockholders' Equity, Balance at Jul. 31, 2022 | $ 3,920 | $ 2 | $ 2,311 | $ (2,148) | $ 4,255 | $ (500) |
OVERVIEW, BASIS OF PRESENTATION
OVERVIEW, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Jul. 31, 2022 | |
Accounting Policies [Abstract] | |
OVERVIEW, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 1. 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 development 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 July 31, 2022 and October 31, 2021, results of operations for the three and nine months ended July 31, 2022 and 2021, and cash flows for the nine months ended July 31, 2022 and 2021. 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. Update to Significant Accounting Policies. Except as set forth in the "new accounting pronouncements" section below, 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, 2021. New Accounting Pronouncements. ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers . In October 2021, the Financial Accounting Standards Board (“FASB”) issued guidance that requires entities to apply Accounting Standards Codification Topic 606 to recognize and measure contract assets and contract liabilities in a business combination. The standard is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted. We adopted this guidance effective November 1, 2021. The adoption of this guidance did not have a material impact 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) | 9 Months Ended |
Jul. 31, 2022 | |
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, Communications Solutions Group ("CSG") and Electronics Industrial Solutions Group ("EISG"). Three Months Ended July 31, 2022 2021 CSG EISG Total CSG EISG Total (in millions) Region Americas $ 468 $ 94 $ 562 $ 418 $ 81 $ 499 Europe 121 86 207 122 79 201 Asia Pacific 381 226 607 335 211 546 Total revenue $ 970 $ 406 $ 1,376 $ 875 $ 371 $ 1,246 End Market Aerospace, Defense & Government $ 275 $ — $ 275 $ 280 $ — $ 280 Commercial Communications 695 — 695 595 — 595 Electronic Industrial — 406 406 — 371 371 Total revenue $ 970 $ 406 $ 1,376 $ 875 $ 371 $ 1,246 Timing of Revenue Recognition Revenue recognized at a point in time $ 807 $ 349 $ 1,156 $ 729 $ 322 $ 1,051 Revenue recognized over time 163 57 220 146 49 195 Total revenue $ 970 $ 406 $ 1,376 $ 875 $ 371 $ 1,246 Nine Months Ended July 31, 2022 2021 CSG EISG Total CSG EISG Total (in millions) Region Americas $ 1,340 $ 268 $ 1,608 $ 1,228 $ 223 $ 1,451 Europe 395 256 651 380 222 602 Asia Pacific 1,076 642 1,718 996 598 1,594 Total revenue $ 2,811 $ 1,166 $ 3,977 $ 2,604 $ 1,043 $ 3,647 End Market Aerospace, Defense & Government $ 860 $ — $ 860 $ 845 $ — $ 845 Commercial Communications 1,951 — 1,951 1,759 — 1,759 Electronic Industrial — 1,166 1,166 — 1,043 1,043 Total revenue $ 2,811 $ 1,166 $ 3,977 $ 2,604 $ 1,043 $ 3,647 Timing of Revenue Recognition Revenue recognized at a point in time $ 2,342 $ 1,006 $ 3,348 $ 2,172 $ 907 $ 3,079 Revenue recognized over time 469 160 629 432 136 568 Total revenue $ 2,811 $ 1,166 $ 3,977 $ 2,604 $ 1,043 $ 3,647 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 when 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 Contract assets Contract assets consist of unbilled receivables and are recorded when revenue is recognized in advance of scheduled billings to our customers. These amounts are primarily related to solutions and support arrangements when transfer of control has occurred but we have not yet invoiced. The contract assets balance was $59 million and $84 million as of July 31, 2022 and October 31, 2021, respectively, and is included in "accounts receivables, net" and "other assets" in our condensed consolidated balance sheet. Contract costs We capitalize direct and incremental costs incurred to acquire contracts for which the associated revenue is expected to be recognized in future periods. We have determined that certain employee and third-party representative commission programs meet the requirements to be capitalized. These costs are initially deferred and typically amortized over the term of the customer contract which corresponds to the period of benefit. Capitalized contract costs were $37 million and $39 million as of July 31, 2022 and October 31, 2021, respectively, and are included in “other current assets” and “other assets” in the condensed consolidated balance sheet. The amortization expense associated with these costs was $19 million and $64 million for the three and nine months ended July 31, 2022, respectively, and $20 million and $58 million for the corresponding periods last year. 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. The following table provides a roll-forward of our contract liabilities, current and non-current: Nine Months Ended July 31, 2022 (in millions) Balance at October 31 $ 665 Deferral of revenue billed in current period, net of recognition 479 Revenue recognized that was deferred as of the beginning of the period (425) Foreign currency translation impact (23) Balance at July 31 $ 696 Of the $425 million of revenue recognized in the nine months ended July 31, 2022 that was deferred as of the beginning of the period, approximately $88 million was recognized in the three months ended July 31, 2022. Remaining Performance Obligations Our remaining performance obligations, excluding contracts that have an original expected duration of one year or less, was approximately $399 million as of July 31, 2022, and represents the company’s obligation to deliver products and services and obtain customer acceptance on delivered products. As of July 31, 2022, we expect to fulfill 16 percent of these unsatisfied performance obligations during the remainder of 2022, 43 percent during 2023, and 41 percent thereafter. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 9 Months Ended |
Jul. 31, 2022 | |
Share-Based Payment Arrangement, Noncash Expense [Abstract] | |
SHARE-BASED COMPENSATION | 3. SHARE-BASED COMPENSATION Keysight accounts for share-based awards in accordance with the provisions of the authoritative accounting guidance, which requires the measurement and recognition of compensation expense for all share-based payment awards made to our employees and directors, including restricted stock units ("RSUs"), employee stock purchases made under our Employee Stock Purchase Plan (“ESPP”), and performance share awards granted to selected members of our senior management under the Long-Term Performance (“LTP”) Program, based on estimated fair values. The impact of share-based compensation expense on our condensed consolidated statement of operations was as follows: Three Months Ended Nine Months Ended July 31, July 31, 2022 2021 2022 2021 (in millions) Cost of products and services $ 5 $ 3 $ 19 $ 16 Research and development 6 4 22 17 Selling, general and administrative 15 12 62 51 Total share-based compensation expense $ 26 $ 19 $ 103 $ 84 |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Jul. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 4. INCOME TAXES The following table provides details of income taxes: Three Months Ended Nine Months Ended July 31, July 31, 2022 2021 2022 2021 in millions, except percentages Income before taxes $ 346 $ 270 $ 917 $ 673 Provision for income taxes $ 8 $ 16 $ 92 $ 61 Effective tax rate 2.3 % 5.9 % 10.0 % 9.0 % The tax expense for the three months ended July 31, 2022 was lower compared to the same period last year, primarily due to a decrease in tax expense due to discrete tax differences, partially offset by an increase in income before taxes. The income tax expense for the nine months ended July 31, 2022 was higher compared to the same period last year, primarily due to an increase in income before taxes. The income tax expense for the three and nine months ended July 31, 2022 included a net discrete benefit of $38 million and $47 million, respectively. The income tax expense for the three and nine months ended July 31, 2021 included a net discrete benefit of $26 million and $46 million, respectively. The discrete tax benefit for the three and nine months ended July 31, 2022 includes changes in tax reserves from audit settlements as well as an out-of-period adjustment to tax reserves for fiscal years 2019 through 2021 related to the potential U.S. benefit associated with the future resolution of non-U.S. tax reserves. The adjustment was immaterial to current and prior-period financial statements. The discrete tax benefit for the three and nine months ended July 31, 2021 includes the release of valuation allowance on Netherlands tax assets. The discrete tax benefit for the nine months ended July 31, 2021 also includes the impact of integration activities for acquired entities resulting in a decrease in U.S. taxes expected to be imposed upon the repatriation of unremitted foreign earnings. Keysight benefits from tax incentives in several jurisdictions, most significantly in Singapore and Malaysia, that will expire or 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 in those jurisdictions. The Singapore tax incentive is due for renewal in 2024, and the Malaysia incentive is due for renewal in 2025. We are continuing to evaluate renewal options and the impact of potential outcomes on our effective tax rate. For the nine months ended July 31, 2022 and 2021, respectively, the impact of the tax incentives decreased the income tax provision by $63 million and $41 million. The increase in tax benefit for the nine months ended July 31, 2022 is primarily due to a change in the jurisdictional mix of non-U.S. earnings, which increased the earnings taxed at incentive tax rates in 2022. The open tax years for the U.S. federal income tax return and most state income tax returns are from November 1, 2017 through the current tax year. For the majority of our foreign entities, the open tax years are from November 1, 2016 through the current tax year. For certain foreign entities, the tax years remain open, at most, back to the year 2008. Keysight’s fiscal year 2018 U.S. federal income tax return has been under examination by the Internal Revenue Service. The Tax Cuts and Jobs Act was enacted in December 2017 and imposed a one-time U.S. tax on foreign earnings not previously repatriated to the U.S., known as the Transition Tax, which was reported in Keysight’s fiscal year 2018 U.S. federal income tax return. As of June 2022, the fiscal year 2018 U.S. federal income tax audit was effectively settled with no material assessments and no additional cash taxes paid. The company is being audited in Malaysia for fiscal year 2008. This tax year pre-dates our separation from Agilent. However, pursuant to the agreement between Agilent and Keysight pertaining to tax matters, as 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 of $68 million on gains related to intellectual property rights. The company believes there are numerous defenses to the current assessment; the statute of limitations for the fiscal year 2008 in Malaysia was closed, and the income in question is exempt from tax in Malaysia. The company is disputing this assessment and pursuing all avenues to resolve this issue favorably for the company. Our appeals to both the Special Commissioners of Income Tax and the High Court in Malaysia have been unsuccessful. We have filed a Notice of Appeal with the Court of Appeal, and a hearing is currently scheduled for February 2023. The outcome of corporate income tax examinations cannot be predicted with certainty. Given the numerous tax years and matters that remain subject to examination in various tax jurisdictions, the ultimate resolution of current and future tax examinations could be inconsistent with management’s current expectations. If this were to occur, it could have an impact on our effective tax rate in the period in which such examinations are resolved. |
NET INCOME PER SHARE
NET INCOME PER SHARE | 9 Months Ended |
Jul. 31, 2022 | |
Earnings Per Share [Abstract] | |
NET INCOME PER SHARE | 5. NET INCOME PER SHARE The following table presents the calculation of basic and diluted net income per share: Three Months Ended Nine Months Ended July 31, July 31, 2022 2021 2022 2021 in millions, except per-share amounts Net income $ 338 $ 254 $ 825 $ 612 Basic weighted-average shares 179 184 181 185 Potential common shares— stock options and other employee stock plans 2 2 1 2 Diluted weighted-average shares 181 186 182 187 Net income per share - basic $ 1.89 $ 1.38 $ 4.56 $ 3.31 Net income per share - diluted $ 1.87 $ 1.36 $ 4.52 $ 3.27 Diluted shares outstanding include the dilutive effect of in-the-money options and non-vested RSUs. The diluted effect of such awards is calculated based on the average share price of each period using the treasury stock method, except where the inclusion of such awards would have an anti-dilutive impact. |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 9 Months Ended |
Jul. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | 6. GOODWILL AND OTHER INTANGIBLE ASSETS The goodwill balance as of July 31, 2022 and October 31, 2021 and the activity for the nine months ended July 31, 2022 for each of our reportable operating segments were as follows: CSG EISG Total (in millions) Goodwill at October 31, 2021 $ 1,069 $ 559 $ 1,628 Foreign currency translation impact (35) (7) (42) Goodwill arising from acquisitions 9 11 20 Goodwill at July 31, 2022 $ 1,043 $ 563 $ 1,606 As of July 31, 2022 and October 31, 2021, accumulated impairment losses on goodwill was $709 million. Other intangible assets as of July 31, 2022 and October 31, 2021 consisted of the following: July 31, 2022 October 31, 2021 Gross Accumulated Net Book Gross Accumulated Net Book (in millions) Developed technology $ 993 $ 903 $ 90 $ 969 $ 866 $ 103 Backlog 17 17 — 17 17 — Trademark/Tradename 36 30 6 36 28 8 Customer relationships 394 274 120 389 235 154 Total amortizable intangible assets 1,440 1,224 216 1,411 1,146 265 In-Process R&D — — — 7 — 7 Total $ 1,440 $ 1,224 $ 216 $ 1,418 $ 1,146 $ 272 During the nine months ended July 31, 2022, we used $33 million, net of cash acquired, for acquisition activity and recognized goodwill and other intangible assets of $20 million and $23 million, respectively, based on the preliminary allocation of the purchase price to the estimated fair values of the assets acquired and liabilities assumed. During the nine months ended July 31, 2022, we transferred $7 million from in-process R&D to developed technology as projects were successfully completed. 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 nine months ended July 31, 2022. During the nine months ended July 31, 2022, other intangible assets decreased $1 million due to the impact of foreign exchange translation. Amortization of other intangible assets was $26 million and $78 million for the three and nine months ended July 31, 2022, respectively. Amortization of other intangible assets was $33 million and $147 million for the three and nine months ended July 31, 2021, respectively. Estimated intangible assets amortization expense for each of the five succeeding fiscal years is as follows: Amortization expense (in millions) 2022 (remainder) $ 25 2023 $ 83 2024 $ 43 2025 $ 26 2026 $ 16 Thereafter $ 23 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Jul. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | 7. 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 July 31, 2022 and October 31, 2021 were as follows: Fair Value Measurements at July 31, 2022 October 31, 2021 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 $ 1,151 $ 1,151 $ — $ — $ — $ 1,296 $ 1,296 $ — $ — $ — Derivative instruments (foreign exchange contracts) 12 — 12 — — 6 — 6 — — Long-term Derivative instruments (interest rate swaps) 85 — 85 — — 48 — 48 — — Equity investments 63 63 — — — 60 60 — — — Equity investments - other 9 — — — 9 10 — — — 10 Total assets measured at fair value $ 1,320 $ 1,214 $ 97 $ — $ 9 $ 1,420 $ 1,356 $ 54 $ — $ 10 Liabilities: Short-term Derivative instruments (foreign exchange contracts) $ 13 $ — $ 13 $ — $ — $ 4 $ — $ 4 $ — $ — Long-term Deferred compensation liability 23 — 23 — — 24 — 24 — — Total liabilities measured at fair value $ 36 $ — $ 36 $ — $ — $ 28 $ — $ 28 $ — $ — During the nine months ended July 31, 2022, we made an equity investment of $30 million. The changes in fair value of the equity investment are recorded within "other income (expense), net" in the condensed consolidated statement of operations. Net realized gains (losses) on sale of our equity investments were zero for both the three and nine months ended July 31, 2022 and 2021. Net unrealized losses on our equity investments were $8 million and $24 million for the three and nine months ended July 31, 2022, respectively. Net unrealized gains on our equity investments were $1 million and $2 million for the three and nine months ended July 31, 2021, respectively. Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis For the nine months ended July 31, 2022, our held and used long-lived assets in Russia with a carrying amount of $3 million were written down to a fair value of zero, resulting in an impairment on assets that are expected to generate zero cash flows in the future of $3 million, which was recorded within “other operating expense (income), net” in the condensed consolidated statement of operations. |
DERIVATIVES
DERIVATIVES | 9 Months Ended |
Jul. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES | 8. 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 213 and 69, respectively, as of July 31, 2022. The aggregated notional amounts by currency and designation as of July 31, 2022 were as follows: Derivatives in Cash Flow Derivatives Not Designated as Hedging Instruments Forward Forward Currency Buy/(Sell) Buy/(Sell) (in millions) Euro $ 21 $ 38 British Pound 24 (78) Singapore Dollar 32 34 Malaysian Ringgit 106 10 Japanese Yen (161) (12) Other currencies 13 (20) Total $ 35 $ (28) 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 July 31, 2022 and October 31, 2021 were as follows: Fair Values of Derivative Instruments Assets Derivatives Liabilities Derivatives Fair Value Fair Value Balance Sheet Location July 31, 2022 October 31, 2021 Balance Sheet Location July 31, 2022 October 31, 2021 (in millions) Derivatives designated as hedging instruments: Cash flow hedges Foreign exchange contracts Other current assets $ 11 $ 5 Other accrued liabilities $ 10 $ 1 Interest rate swap contracts: Other assets 85 48 Derivatives not designated as hedging instruments: Foreign exchange contracts Other current assets 1 1 Other accrued liabilities 3 3 Total derivatives $ 97 $ 54 $ 13 $ 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 Nine Months Ended July 31, July 31, 2022 2021 2022 2021 (in millions) Derivatives designated as hedging instruments: Cash Flow Hedges Interest rate swap contracts: Gain (loss) recognized in accumulated other comprehensive income (loss) $ (11) $ (29) $ 37 $ 19 Foreign exchange contracts: Gain (loss) recognized in accumulated other comprehensive income (loss) $ (3) $ — $ (1) $ 3 Gain (loss) reclassified from accumulated other comprehensive income (loss) into earnings: Cost of products $ 5 $ 1 $ 9 $ (1) Selling, general and administrative $ (4) $ — $ (6) $ 2 Amount excluded from effectiveness testing recognized in earnings based on amortization approach: Selling, general and administrative $ — $ 1 $ 1 $ 1 Derivatives not designated as hedging instruments: Gain (loss) recognized in: Cost of products $ — $ — $ — $ 1 Other income (expense), net $ — $ (2) $ 13 $ (5) The estimated amount at July 31, 2022 expected to be reclassified from accumulated other comprehensive income (loss) to earnings within the next twelve months is a loss of $1 million. |
DEBT (Notes)
DEBT (Notes) | 9 Months Ended |
Jul. 31, 2022 | |
Debt Disclosure [Abstract] | |
DEBT | 9. DEBT The following table summarizes the components of our long-term debt: July 31, 2022 October 31, 2021 (in millions) 2024 Senior Notes at 4.55% ($600 face amount less unamortized costs of $1 and $1) $ 599 $ 599 2027 Senior Notes at 4.60% ($700 face amount less unamortized costs of $3 and $4) 697 696 2029 Senior Notes at 3.00% ($500 face amount less unamortized costs of $4 and $4) 496 496 Total debt $ 1,792 $ 1,791 Short-Term Debt Revolving Credit Facility On July 30, 2021, we entered into a new credit agreement that amended and restated our existing credit agreement dated February 15, 2017 in its entirety, and provides for a $750 million five-year unsecured revolving credit facility (the “Revolving Credit Facility”) that will expire on July 30, 2026 and bears interest at an annual rate of LIBOR + 1 percent along with a facility fee of 0.125 percent per annum. In addition, the new credit agreement permits the company, subject to certain customary conditions, on one or more occasions to request to increase the total commitments under the Revolving Credit Facility by up to $250 million in the aggregate. We may use amounts borrowed under the facility for general corporate purposes. As of July 31, 2022 and October 31, 2021, we had no borrowings outstanding under the Revolving Credit Facility. We were in compliance with the covenants of the Revolving Credit Facility during the nine months ended July 31, 2022 . Long-Term Debt There have been no changes to the principal, maturity, interest rates and interest payment terms of the senior notes during the nine months ended July 31, 2022 as compared to the senior notes described in our Annual Report on Form 10-K for the fiscal year ended October 31, 2021. We were in compliance with the covenants of our senior notes during the nine months ended July 31, 2022 . |
RETIREMENT PLANS AND POST RETIR
RETIREMENT PLANS AND POST RETIREMENT PENSION PLANS | 9 Months Ended |
Jul. 31, 2022 | |
Retirement Benefits [Abstract] | |
RETIREMENT PLANS AND POST RETIREMENT PENSION PLANS | 10. RETIREMENT PLANS AND POST-RETIREMENT BENEFIT PLANS For the three and nine months ended July 31, 2022 and 2021, 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 July 31, 2022 2021 2022 2021 2022 2021 (in millions) Service cost—benefits earned during the period $ 7 $ 6 $ 3 $ 4 $ 1 $ 1 Interest cost on benefit obligation 6 6 4 3 1 1 Expected return on plan assets (16) (13) (15) (19) (4) (3) Amortization of net actuarial loss 3 6 6 10 — 3 Net periodic benefit cost (benefit) $ — $ 5 $ (2) $ (2) $ (2) $ 2 Pensions U.S. Defined Benefit Plans Non-U.S. Defined Benefit U.S. Post-Retirement Nine Months Ended July 31, 2022 2021 2022 2021 2022 2021 (in millions) Service cost—benefits earned during the period $ 19 $ 18 $ 10 $ 11 $ 1 $ 1 Interest cost on benefit obligation 18 17 12 11 3 3 Expected return on plan assets (46) (39) (45) (58) (11) (9) Amortization of net actuarial loss 8 18 18 31 1 8 Settlement loss — — — 16 — — Net periodic benefit cost (benefit) $ (1) $ 14 $ (5) $ 11 $ (6) $ 3 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), net" in the condensed consolidated statement of operations. In March 2021, we substantially transferred the assets and obligations of our Netherlands defined benefit plan (“The Netherlands DB plan”) to an insurance company. The partial settlement resulted in a loss of $16 million which is included in "other income (expense), net" in the condensed consolidated statement of operations. We received a net refund of $3 million due to the partial settlement of the Netherlands DB plan. We did not contribute to our U.S. defined benefit plans or U.S. post-retirement benefit plan during the three and nine months ended July 31, 2022 and 2021. We contributed $2 million and $6 million to our non-U.S. defined benefit plans during the three and nine months ended July 31, 2022. We contributed $1 million and $6 million to our non-U.S. defined benefit plans during the three and nine months ended July 31, 2021, respectively. For the remainder of 2022, we do not expect to contribute to our U.S. defined benefit plan and U.S. post-retirement benefit plan, and we expect to contribute $2 million to our non-U.S. defined benefit plans. The amounts we contribute depend upon, among other things, legal requirements, underlying asset returns, the plan’s funded status, the anticipated tax deductibility of the contribution, local practices, market conditions, interest rates and other factors. |
SUPPLEMENTAL FINANCIAL INFORMAT
SUPPLEMENTAL FINANCIAL INFORMATION (Notes) | 9 Months Ended |
Jul. 31, 2022 | |
Disclosure Text Block [Abstract] | |
Additional Financial Information Disclosure | 11. SUPPLEMENTAL FINANCIAL INFORMATION The following tables provide details of selected balance sheet items: Cash, cash equivalents, and restricted cash July 31, 2022 October 31, 2021 (in millions) Cash and cash equivalents $ 1,847 $ 2,052 Restricted cash included in other assets 16 16 Total cash, cash equivalents, and restricted cash shown in the statement of cash flows $ 1,863 $ 2,068 Restricted cash primarily relates to deficit reduction contributions to an escrow account for one of our non-U.S. defined benefit pension plans and deposits held as collateral against bank guarantees. Inventory July 31, 2022 October 31, 2021 (in millions) Finished goods $ 303 $ 329 Purchased parts and fabricated assemblies 534 448 Total inventory $ 837 $ 777 The increase in inventory for the nine months ended July 31, 2022, was primarily driven by higher material costs and incremental stock build-up to secure supply in the current supply-constrained environment. Property, plant and equipment July 31, 2022 October 31, 2021 (in millions) Land $ 53 $ 61 Buildings and leasehold improvements 798 785 Machinery and equipment 1,372 1,328 Total property, plant and equipment 2,223 2,174 Accumulated depreciation of property, plant and equipment (1,555) (1,524) Property, plant and equipment, net $ 668 $ 650 The increase in property, plant and equipment, net, for the nine months ended July 31, 2022, was primarily driven by increased capital spending for capacity and technology investments. Depreciation expense was $88 million and $87 million for the nine months ended July 31, 2022 and 2021, respectively. Leases The following table summarizes the components of our lease cost: Three Months Ended Nine Months Ended July 31, July 31, 2022 2021 2022 2021 (in millions) (in millions) Operating lease cost $ 13 $ 13 $ 38 $ 39 Variable lease cost $ 4 $ 4 $ 12 $ 11 Supplemental cash flow information related to our operating leases was as follows: Nine Months Ended July 31, 2022 2021 (in millions) Cash payment for operating leases $ 36 $ 40 Right-of-use assets obtained in exchange for operating lease obligations $ 40 $ 78 The decrease in right-of-use assets obtained in exchange for operating lease obligations was primarily driven by reassessment of a lease term in the prior year triggered by significant leasehold improvements. As of July 31, 2022, we have additional operating leases, primarily for real estate, that have not yet commenced of $16 million. These operating leases will commence in the remainder of fiscal year 2022 and fiscal year 2023 with lease terms of up to 15 years. 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: Nine Months Ended July 31, 2022 2021 (in millions) Beginning balance $ 34 $ 33 Accruals for warranties, including change in estimates 16 23 Settlements made during the period (18) (21) Ending balance $ 32 $ 35 Accruals for warranties due within one year $ 19 $ 21 Accruals for warranties due after one year 13 14 Ending balance $ 32 $ 35 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Jul. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 12. COMMITMENTS AND CONTINGENCIES Commitments Our non-cancellable commitments to contract manufacturers and suppliers increased to $536 million as of July 31, 2022 from $444 million as of October 31, 2021, driven by higher revenue, advance purchase orders to secure capacity for critical parts due to global supply shortages and higher material costs. During the nine months ended July 31, 2022, there were no other material changes to the purchase commitments as reported in our Annual Report on Form 10-K for the fiscal year ended October 31, 2021. Contingencies On August 3, 2021, we entered into a Consent Agreement with the Directorate of Defense Trade Controls, Bureau of Political-Military Affairs, Department of State to resolve alleged violations of the Arms Export Control Act and the International Traffic in Arms Regulations ("ITAR"). Pursuant to the Consent Agreement, we were assessed a penalty of $6.6 million to be paid over three years, $2.5 million of which is suspended and designated for remediation activities, including employment of a special compliance officer for three years. We have paid $1.1 million of the assessed amount as of July 31, 2022. In October 2019, Keysight entered into a license agreement with Centripetal Networks in conjunction with the resolution of a patent infringement lawsuit brought by Centripetal against Keysight. Royalties owed under the license and the scope of the license, which expired on December 31, 2021, were the primary subjects of arbitration, which was fully resolved in Keysight’s favor. On January 1, 2022, Centripetal filed a lawsuit in Federal District Court in Virginia, alleging that additional Keysight products infringe certain of Centripetal’s patents. In addition, in February 2022, Centripetal filed complaints in Germany alleging infringement of certain of Centripetal’s German patents, and in April 2022, Centripetal filed a complaint with the International Trade Commission (“ITC”) requesting that they investigate whether Keysight should be enjoined from importing certain products that are manufactured outside of the U.S. and are alleged to infringe Centripetal patents. We deny the allegations and intend to aggressively defend each case. Although we do not currently believe that these or other matters are reasonably possible of having a material impact to our business, consolidated financial position, results of operations or cash flows, the outcome of litigation is inherently uncertain and the outcome is difficult to predict. Management’s expectations, if proved to be incorrect, could impact our results in a financial period. We are also involved in lawsuits, claims, investigations and proceedings, including, but not limited to, patent, employment, commercial and environmental matters, which arise in the ordinary course of business. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 9 Months Ended |
Jul. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | |
STOCKHOLDERS EQUITY | 13. STOCKHOLDERS' EQUITY Stock Repurchase Program On November 18, 2021, our board of directors approved a new stock repurchase program authorizing the purchase of up to $1,200 million of the company’s common stock, replacing the previously approved November 2020 program, under which $77 million remained. 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 nine months ended July 31, 2022, we repurchased 4,646,427 shares of common stock for $723 million. For the nine months ended July 31, 2021, we repurchased 2,297,600 shares of common stock for $320 million. Accumulated Other Comprehensive Loss Changes in accumulated other comprehensive loss by component and related tax effects for the three and nine months ended July 31, 2022 and 2021 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 April 30, 2022 $ (106) $ (440) $ (6) $ 78 $ (474) Other comprehensive income (loss) before reclassifications (20) — — (14) (34) Amounts reclassified out of accumulated other comprehensive gain (loss) — 9 — (1) 8 Tax benefit (expense) — (3) — 3 — Other comprehensive income (loss) (20) 6 — (12) (26) As of July 31, 2022 $ (126) $ (434) $ (6) $ 66 $ (500) As of October 31, 2021 $ (20) $ (456) $ (6) $ 40 $ (442) Other comprehensive income (loss) before reclassifications (106) — — 36 (70) Amounts reclassified out of accumulated other comprehensive gain (loss) — 29 — (3) 26 Tax benefit (expense) — (7) — (7) (14) Other comprehensive income (loss) (106) 22 — 26 (58) As of July 31, 2022 $ (126) $ (434) $ (6) $ 66 $ (500) As of April 30, 2021 $ 7 $ (569) $ (5) $ 56 $ (511) Other comprehensive income (loss) before reclassifications (7) — — (29) (36) Amounts reclassified out of accumulated other comprehensive gain (loss) — 19 — (1) 18 Tax benefit (expense) — (6) — 7 1 Other comprehensive income (loss) (7) 13 — (23) (17) As of July 31, 2021 $ — $ (556) $ (5) $ 33 $ (528) As of October 31, 2020 $ (10) $ (600) $ (5) $ 16 $ (599) Other comprehensive income (loss) before reclassifications 10 (14) — 22 18 Amounts reclassified out of accumulated other comprehensive gain (loss) — 74 — (1) 73 Tax benefit (expense) — (16) — (4) (20) Other comprehensive income (loss) 10 44 — 17 71 As of July 31, 2021 $ — $ (556) $ (5) $ 33 $ (528) Reclassifications out of accumulated other comprehensive loss for the three and nine months ended July 31, 2022 and 2021 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 Nine Months Ended July 31, July 31, 2022 2021 2022 2021 (in millions) Unrealized gain (loss) on derivatives $ 5 $ 1 $ 9 $ (1) Cost of products (4) — (6) 2 Selling, general and administrative — — — — Benefit (provision) for income tax 1 1 3 1 Net of income tax Net defined benefit pension cost and post retirement plan costs: Net actuarial loss (9) (19) (29) (74) 3 5 7 19 Benefit (provision) for income tax (6) (14) (22) (55) Net of income tax Total reclassifications for the period $ (5) $ (13) $ (19) $ (54) An amount in parentheses indicates a reduction to income and an increase to accumulated other comprehensive loss. Reclassifications of prior service benefit and actuarial net loss related to retirement plans and post retirement pension plans are included in the computation of net periodic cost (see Note 10, "Retirement Plans and Post-Retirement Benefit Plans"). |
SEGMENT INFORMATION
SEGMENT INFORMATION | 9 Months Ended |
Jul. 31, 2022 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | 14. SEGMENT INFORMATION We report our results in two reportable segments: Communications Solutions Group ("CSG") and Electronic Industrial Solutions Group ("EISG"). The results of our reportable segments are based on our management reporting system and 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, restructuring costs, interest income, interest expense and other items as noted in the reconciliations below. Three Months Ended July 31, 2022 2021 CSG EISG Total CSG EISG Total (in millions) Revenue $ 970 $ 406 $ 1,376 $ 875 $ 371 $ 1,246 Segment income from operations $ 288 $ 127 $ 415 $ 224 $ 115 $ 339 Nine Months Ended July 31, 2022 2021 CSG EISG Total CSG EISG Total (in millions) Revenue $ 2,811 $ 1,166 $ 3,977 $ 2,604 $ 1,043 $ 3,647 Segment income from operations $ 796 $ 359 $ 1,155 $ 670 $ 309 $ 979 The following table reconciles total reportable operating segments’ income from operations to our income before taxes, as reported: Three Months Ended Nine Months Ended July 31, July 31, 2022 2021 2022 2021 (in millions) Total reportable operating segments' income from operations $ 415 $ 339 $ 1,155 $ 979 Share-based compensation (26) (19) (103) (84) Amortization of acquisition-related balances (26) (33) (78) (147) Acquisition and integration costs (2) (2) (7) (8) Restructuring and others (4) (1) (12) (9) Income from operations, as reported 357 284 955 731 Interest income 4 1 6 2 Interest expense (20) (20) (59) (59) Other income (expense), net 5 5 15 (1) Income before taxes, as reported $ 346 $ 270 $ 917 $ 673 |
REVENUE (Tables)
REVENUE (Tables) | 9 Months Ended |
Jul. 31, 2022 | |
Revenue Recognition [Abstract] | |
Disaggregation of Revenue [Table Text Block] | 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, Communications Solutions Group ("CSG") and Electronics Industrial Solutions Group ("EISG"). Three Months Ended July 31, 2022 2021 CSG EISG Total CSG EISG Total (in millions) Region Americas $ 468 $ 94 $ 562 $ 418 $ 81 $ 499 Europe 121 86 207 122 79 201 Asia Pacific 381 226 607 335 211 546 Total revenue $ 970 $ 406 $ 1,376 $ 875 $ 371 $ 1,246 End Market Aerospace, Defense & Government $ 275 $ — $ 275 $ 280 $ — $ 280 Commercial Communications 695 — 695 595 — 595 Electronic Industrial — 406 406 — 371 371 Total revenue $ 970 $ 406 $ 1,376 $ 875 $ 371 $ 1,246 Timing of Revenue Recognition Revenue recognized at a point in time $ 807 $ 349 $ 1,156 $ 729 $ 322 $ 1,051 Revenue recognized over time 163 57 220 146 49 195 Total revenue $ 970 $ 406 $ 1,376 $ 875 $ 371 $ 1,246 Nine Months Ended July 31, 2022 2021 CSG EISG Total CSG EISG Total (in millions) Region Americas $ 1,340 $ 268 $ 1,608 $ 1,228 $ 223 $ 1,451 Europe 395 256 651 380 222 602 Asia Pacific 1,076 642 1,718 996 598 1,594 Total revenue $ 2,811 $ 1,166 $ 3,977 $ 2,604 $ 1,043 $ 3,647 End Market Aerospace, Defense & Government $ 860 $ — $ 860 $ 845 $ — $ 845 Commercial Communications 1,951 — 1,951 1,759 — 1,759 Electronic Industrial — 1,166 1,166 — 1,043 1,043 Total revenue $ 2,811 $ 1,166 $ 3,977 $ 2,604 $ 1,043 $ 3,647 Timing of Revenue Recognition Revenue recognized at a point in time $ 2,342 $ 1,006 $ 3,348 $ 2,172 $ 907 $ 3,079 Revenue recognized over time 469 160 629 432 136 568 Total revenue $ 2,811 $ 1,166 $ 3,977 $ 2,604 $ 1,043 $ 3,647 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 when 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 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: Nine Months Ended July 31, 2022 (in millions) Balance at October 31 $ 665 Deferral of revenue billed in current period, net of recognition 479 Revenue recognized that was deferred as of the beginning of the period (425) Foreign currency translation impact (23) Balance at July 31 $ 696 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Table Text Block] | Remaining Performance Obligations Our remaining performance obligations, excluding contracts that have an original expected duration of one year or less, was approximately $399 million as of July 31, 2022, and represents the company’s obligation to deliver products and services and obtain customer acceptance on delivered products. As of July 31, 2022, we expect to fulfill 16 percent of these unsatisfied performance obligations during the remainder of 2022, 43 percent during 2023, and 41 percent thereafter. |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 9 Months Ended |
Jul. 31, 2022 | |
Share-Based Payment Arrangement, Noncash Expense [Abstract] | |
Allocated Share-based compensation expense disclosure | Three Months Ended Nine Months Ended July 31, July 31, 2022 2021 2022 2021 (in millions) Cost of products and services $ 5 $ 3 $ 19 $ 16 Research and development 6 4 22 17 Selling, general and administrative 15 12 62 51 Total share-based compensation expense $ 26 $ 19 $ 103 $ 84 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Jul. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | The following table provides details of income taxes: Three Months Ended Nine Months Ended July 31, July 31, 2022 2021 2022 2021 in millions, except percentages Income before taxes $ 346 $ 270 $ 917 $ 673 Provision for income taxes $ 8 $ 16 $ 92 $ 61 Effective tax rate 2.3 % 5.9 % 10.0 % 9.0 % |
NET INCOME PER SHARE (Tables)
NET INCOME PER SHARE (Tables) | 9 Months Ended |
Jul. 31, 2022 | |
Earnings Per Share [Abstract] | |
Reconciliation of the numerators and denominators of the basic and diluted net income per share | The following table presents the calculation of basic and diluted net income per share: Three Months Ended Nine Months Ended July 31, July 31, 2022 2021 2022 2021 in millions, except per-share amounts Net income $ 338 $ 254 $ 825 $ 612 Basic weighted-average shares 179 184 181 185 Potential common shares— stock options and other employee stock plans 2 2 1 2 Diluted weighted-average shares 181 186 182 187 Net income per share - basic $ 1.89 $ 1.38 $ 4.56 $ 3.31 Net income per share - diluted $ 1.87 $ 1.36 $ 4.52 $ 3.27 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Jul. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill balances and movements for each reportable segments during the period | The goodwill balance as of July 31, 2022 and October 31, 2021 and the activity for the nine months ended July 31, 2022 for each of our reportable operating segments were as follows: CSG EISG Total (in millions) Goodwill at October 31, 2021 $ 1,069 $ 559 $ 1,628 Foreign currency translation impact (35) (7) (42) Goodwill arising from acquisitions 9 11 20 Goodwill at July 31, 2022 $ 1,043 $ 563 $ 1,606 As of July 31, 2022 and October 31, 2021, accumulated impairment losses on goodwill was $709 million. |
Components of other intangibles during the period | Other intangible assets as of July 31, 2022 and October 31, 2021 consisted of the following: July 31, 2022 October 31, 2021 Gross Accumulated Net Book Gross Accumulated Net Book (in millions) Developed technology $ 993 $ 903 $ 90 $ 969 $ 866 $ 103 Backlog 17 17 — 17 17 — Trademark/Tradename 36 30 6 36 28 8 Customer relationships 394 274 120 389 235 154 Total amortizable intangible assets 1,440 1,224 216 1,411 1,146 265 In-Process R&D — — — 7 — 7 Total $ 1,440 $ 1,224 $ 216 $ 1,418 $ 1,146 $ 272 |
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) 2022 (remainder) $ 25 2023 $ 83 2024 $ 43 2025 $ 26 2026 $ 16 Thereafter $ 23 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Jul. 31, 2022 | |
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 July 31, 2022 and October 31, 2021 were as follows: Fair Value Measurements at July 31, 2022 October 31, 2021 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 $ 1,151 $ 1,151 $ — $ — $ — $ 1,296 $ 1,296 $ — $ — $ — Derivative instruments (foreign exchange contracts) 12 — 12 — — 6 — 6 — — Long-term Derivative instruments (interest rate swaps) 85 — 85 — — 48 — 48 — — Equity investments 63 63 — — — 60 60 — — — Equity investments - other 9 — — — 9 10 — — — 10 Total assets measured at fair value $ 1,320 $ 1,214 $ 97 $ — $ 9 $ 1,420 $ 1,356 $ 54 $ — $ 10 Liabilities: Short-term Derivative instruments (foreign exchange contracts) $ 13 $ — $ 13 $ — $ — $ 4 $ — $ 4 $ — $ — Long-term Deferred compensation liability 23 — 23 — — 24 — 24 — — Total liabilities measured at fair value $ 36 $ — $ 36 $ — $ — $ 28 $ — $ 28 $ — $ — |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 9 Months Ended |
Jul. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Aggregated notional amounts by currency and designation | The aggregated notional amounts by currency and designation as of July 31, 2022 were as follows: Derivatives in Cash Flow Derivatives Not Designated as Hedging Instruments Forward Forward Currency Buy/(Sell) Buy/(Sell) (in millions) Euro $ 21 $ 38 British Pound 24 (78) Singapore Dollar 32 34 Malaysian Ringgit 106 10 Japanese Yen (161) (12) Other currencies 13 (20) Total $ 35 $ (28) |
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 July 31, 2022 and October 31, 2021 were as follows: Fair Values of Derivative Instruments Assets Derivatives Liabilities Derivatives Fair Value Fair Value Balance Sheet Location July 31, 2022 October 31, 2021 Balance Sheet Location July 31, 2022 October 31, 2021 (in millions) Derivatives designated as hedging instruments: Cash flow hedges Foreign exchange contracts Other current assets $ 11 $ 5 Other accrued liabilities $ 10 $ 1 Interest rate swap contracts: Other assets 85 48 Derivatives not designated as hedging instruments: Foreign exchange contracts Other current assets 1 1 Other accrued liabilities 3 3 Total derivatives $ 97 $ 54 $ 13 $ 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 Nine Months Ended July 31, July 31, 2022 2021 2022 2021 (in millions) Derivatives designated as hedging instruments: Cash Flow Hedges Interest rate swap contracts: Gain (loss) recognized in accumulated other comprehensive income (loss) $ (11) $ (29) $ 37 $ 19 Foreign exchange contracts: Gain (loss) recognized in accumulated other comprehensive income (loss) $ (3) $ — $ (1) $ 3 Gain (loss) reclassified from accumulated other comprehensive income (loss) into earnings: Cost of products $ 5 $ 1 $ 9 $ (1) Selling, general and administrative $ (4) $ — $ (6) $ 2 Amount excluded from effectiveness testing recognized in earnings based on amortization approach: Selling, general and administrative $ — $ 1 $ 1 $ 1 Derivatives not designated as hedging instruments: Gain (loss) recognized in: Cost of products $ — $ — $ — $ 1 Other income (expense), net $ — $ (2) $ 13 $ (5) |
DEBT (Tables)
DEBT (Tables) | 9 Months Ended |
Jul. 31, 2022 | |
Debt Instrument | |
Schedule of Long-term Debt Instruments | The following table summarizes the components of our long-term debt: July 31, 2022 October 31, 2021 (in millions) 2024 Senior Notes at 4.55% ($600 face amount less unamortized costs of $1 and $1) $ 599 $ 599 2027 Senior Notes at 4.60% ($700 face amount less unamortized costs of $3 and $4) 697 696 2029 Senior Notes at 3.00% ($500 face amount less unamortized costs of $4 and $4) 496 496 Total debt $ 1,792 $ 1,791 |
RETIREMENT PLANS AND POST RET_2
RETIREMENT PLANS AND POST RETIREMENT PENSION PLANS (Tables) | 9 Months Ended |
Jul. 31, 2022 | |
Retirement Benefits [Abstract] | |
Schedule of net pension and post-retirement benefit costs | For the three and nine months ended July 31, 2022 and 2021, 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 July 31, 2022 2021 2022 2021 2022 2021 (in millions) Service cost—benefits earned during the period $ 7 $ 6 $ 3 $ 4 $ 1 $ 1 Interest cost on benefit obligation 6 6 4 3 1 1 Expected return on plan assets (16) (13) (15) (19) (4) (3) Amortization of net actuarial loss 3 6 6 10 — 3 Net periodic benefit cost (benefit) $ — $ 5 $ (2) $ (2) $ (2) $ 2 Pensions U.S. Defined Benefit Plans Non-U.S. Defined Benefit U.S. Post-Retirement Nine Months Ended July 31, 2022 2021 2022 2021 2022 2021 (in millions) Service cost—benefits earned during the period $ 19 $ 18 $ 10 $ 11 $ 1 $ 1 Interest cost on benefit obligation 18 17 12 11 3 3 Expected return on plan assets (46) (39) (45) (58) (11) (9) Amortization of net actuarial loss 8 18 18 31 1 8 Settlement loss — — — 16 — — Net periodic benefit cost (benefit) $ (1) $ 14 $ (5) $ 11 $ (6) $ 3 |
SUPPLEMENTAL FINANCIAL INFORM_2
SUPPLEMENTAL FINANCIAL INFORMATION (Tables) | 9 Months Ended |
Jul. 31, 2022 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | Cash, cash equivalents, and restricted cash July 31, 2022 October 31, 2021 (in millions) Cash and cash equivalents $ 1,847 $ 2,052 Restricted cash included in other assets 16 16 Total cash, cash equivalents, and restricted cash shown in the statement of cash flows $ 1,863 $ 2,068 |
Schedule of Inventory, Current [Table Text Block] | Inventory July 31, 2022 October 31, 2021 (in millions) Finished goods $ 303 $ 329 Purchased parts and fabricated assemblies 534 448 Total inventory $ 837 $ 777 The increase in inventory for the nine months ended July 31, 2022, was primarily driven by higher material costs and incremental stock build-up to secure supply in the current supply-constrained environment. |
Property, Plant and Equipment | Property, plant and equipment July 31, 2022 October 31, 2021 (in millions) Land $ 53 $ 61 Buildings and leasehold improvements 798 785 Machinery and equipment 1,372 1,328 Total property, plant and equipment 2,223 2,174 Accumulated depreciation of property, plant and equipment (1,555) (1,524) Property, plant and equipment, net $ 668 $ 650 The increase in property, plant and equipment, net, for the nine months ended July 31, 2022, was primarily driven by increased capital spending for capacity and technology investments. Depreciation expense was $88 million and $87 million for the nine months ended July 31, 2022 and 2021, respectively. |
Lease, Cost [Table Text Block] | The following table summarizes the components of our lease cost: Three Months Ended Nine Months Ended July 31, July 31, 2022 2021 2022 2021 (in millions) (in millions) Operating lease cost $ 13 $ 13 $ 38 $ 39 Variable lease cost $ 4 $ 4 $ 12 $ 11 Supplemental cash flow information related to our operating leases was as follows: Nine Months Ended July 31, 2022 2021 (in millions) Cash payment for operating leases $ 36 $ 40 Right-of-use assets obtained in exchange for operating lease obligations $ 40 $ 78 |
Schedule of Product Warranty Liability [Table Text Block] | 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: Nine Months Ended July 31, 2022 2021 (in millions) Beginning balance $ 34 $ 33 Accruals for warranties, including change in estimates 16 23 Settlements made during the period (18) (21) Ending balance $ 32 $ 35 Accruals for warranties due within one year $ 19 $ 21 Accruals for warranties due after one year 13 14 Ending balance $ 32 $ 35 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 9 Months Ended |
Jul. 31, 2022 | |
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 and nine months ended July 31, 2022 and 2021 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 April 30, 2022 $ (106) $ (440) $ (6) $ 78 $ (474) Other comprehensive income (loss) before reclassifications (20) — — (14) (34) Amounts reclassified out of accumulated other comprehensive gain (loss) — 9 — (1) 8 Tax benefit (expense) — (3) — 3 — Other comprehensive income (loss) (20) 6 — (12) (26) As of July 31, 2022 $ (126) $ (434) $ (6) $ 66 $ (500) As of October 31, 2021 $ (20) $ (456) $ (6) $ 40 $ (442) Other comprehensive income (loss) before reclassifications (106) — — 36 (70) Amounts reclassified out of accumulated other comprehensive gain (loss) — 29 — (3) 26 Tax benefit (expense) — (7) — (7) (14) Other comprehensive income (loss) (106) 22 — 26 (58) As of July 31, 2022 $ (126) $ (434) $ (6) $ 66 $ (500) As of April 30, 2021 $ 7 $ (569) $ (5) $ 56 $ (511) Other comprehensive income (loss) before reclassifications (7) — — (29) (36) Amounts reclassified out of accumulated other comprehensive gain (loss) — 19 — (1) 18 Tax benefit (expense) — (6) — 7 1 Other comprehensive income (loss) (7) 13 — (23) (17) As of July 31, 2021 $ — $ (556) $ (5) $ 33 $ (528) As of October 31, 2020 $ (10) $ (600) $ (5) $ 16 $ (599) Other comprehensive income (loss) before reclassifications 10 (14) — 22 18 Amounts reclassified out of accumulated other comprehensive gain (loss) — 74 — (1) 73 Tax benefit (expense) — (16) — (4) (20) Other comprehensive income (loss) 10 44 — 17 71 As of July 31, 2021 $ — $ (556) $ (5) $ 33 $ (528) |
Reclassification out of Accumulated Other Comprehensive Income | Reclassifications out of accumulated other comprehensive loss for the three and nine months ended July 31, 2022 and 2021 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 Nine Months Ended July 31, July 31, 2022 2021 2022 2021 (in millions) Unrealized gain (loss) on derivatives $ 5 $ 1 $ 9 $ (1) Cost of products (4) — (6) 2 Selling, general and administrative — — — — Benefit (provision) for income tax 1 1 3 1 Net of income tax Net defined benefit pension cost and post retirement plan costs: Net actuarial loss (9) (19) (29) (74) 3 5 7 19 Benefit (provision) for income tax (6) (14) (22) (55) Net of income tax Total reclassifications for the period $ (5) $ (13) $ (19) $ (54) |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 9 Months Ended |
Jul. 31, 2022 | |
Segment Reporting Information [Line Items] | |
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | Three Months Ended July 31, 2022 2021 CSG EISG Total CSG EISG Total (in millions) Revenue $ 970 $ 406 $ 1,376 $ 875 $ 371 $ 1,246 Segment income from operations $ 288 $ 127 $ 415 $ 224 $ 115 $ 339 Nine Months Ended July 31, 2022 2021 CSG EISG Total CSG EISG Total (in millions) Revenue $ 2,811 $ 1,166 $ 3,977 $ 2,604 $ 1,043 $ 3,647 Segment income from operations $ 796 $ 359 $ 1,155 $ 670 $ 309 $ 979 |
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 Nine Months Ended July 31, July 31, 2022 2021 2022 2021 (in millions) Total reportable operating segments' income from operations $ 415 $ 339 $ 1,155 $ 979 Share-based compensation (26) (19) (103) (84) Amortization of acquisition-related balances (26) (33) (78) (147) Acquisition and integration costs (2) (2) (7) (8) Restructuring and others (4) (1) (12) (9) Income from operations, as reported 357 284 955 731 Interest income 4 1 6 2 Interest expense (20) (20) (59) (59) Other income (expense), net 5 5 15 (1) Income before taxes, as reported $ 346 $ 270 $ 917 $ 673 |
REVENUE (Details)
REVENUE (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2022 | Jul. 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 1,376 | $ 1,246 | $ 3,977 | $ 3,647 |
Communications Solutions Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 970 | 875 | 2,811 | 2,604 |
Electronic Industrial Solutions Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 406 | 371 | 1,166 | 1,043 |
Revenue recognized at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,156 | 1,051 | 3,348 | 3,079 |
Revenue recognized at a point in time | Communications Solutions Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 807 | 729 | 2,342 | 2,172 |
Revenue recognized at a point in time | Electronic Industrial Solutions Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 349 | 322 | 1,006 | 907 |
Revenue recognized over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 220 | 195 | 629 | 568 |
Revenue recognized over time | Communications Solutions Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 163 | 146 | 469 | 432 |
Revenue recognized over time | Electronic Industrial Solutions Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 57 | 49 | 160 | 136 |
Aerospace, Defense & Government | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 275 | 280 | 860 | 845 |
Aerospace, Defense & Government | Communications Solutions Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 275 | 280 | 860 | 845 |
Aerospace, Defense & Government | Electronic Industrial Solutions Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Commercial Communications | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 695 | 595 | 1,951 | 1,759 |
Commercial Communications | Communications Solutions Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 695 | 595 | 1,951 | 1,759 |
Commercial Communications | Electronic Industrial Solutions Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Electronic Industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 406 | 371 | 1,166 | 1,043 |
Electronic Industrial | Communications Solutions Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Electronic Industrial | Electronic Industrial Solutions Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 406 | 371 | 1,166 | 1,043 |
Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 562 | 499 | 1,608 | 1,451 |
Americas | Communications Solutions Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 468 | 418 | 1,340 | 1,228 |
Americas | Electronic Industrial Solutions Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 94 | 81 | 268 | 223 |
Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 207 | 201 | 651 | 602 |
Europe | Communications Solutions Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 121 | 122 | 395 | 380 |
Europe | Electronic Industrial Solutions Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 86 | 79 | 256 | 222 |
Asia Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 607 | 546 | 1,718 | 1,594 |
Asia Pacific | Communications Solutions Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 381 | 335 | 1,076 | 996 |
Asia Pacific | Electronic Industrial Solutions Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 226 | $ 211 | $ 642 | $ 598 |
REVENUE Contract Assets (Detail
REVENUE Contract Assets (Details) - USD ($) $ in Millions | Jul. 31, 2022 | Oct. 31, 2021 |
Accounts Receivable [Member] | ||
Contract with Customer, Asset, after Allowance for Credit Loss, Current | $ 59 | $ 84 |
REVENUE Capitalized Contractual
REVENUE Capitalized Contractual Cost (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2022 | Jul. 31, 2021 | Oct. 31, 2021 | |
Capitalized Contract Cost [Line Items] | |||||
Capitalized Contract Cost, Net | $ 37 | $ 37 | $ 39 | ||
Capitalized Contract Cost, Amortization | $ 19 | $ 20 | $ 64 | $ 58 |
REVENUE CONTRACT LIABILITIES RO
REVENUE CONTRACT LIABILITIES ROLL FORWARD (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Jul. 31, 2022 | Jul. 31, 2022 | |
Balance at October 31 | $ 665 | |
Deferral of revenue billed in current period, net of recognition | 479 | |
Revenue recognized that was deferred as of the beginning of the period | $ (88) | (425) |
Foreign currency translation impact | (23) | |
Balance at July 31 | $ 696 | $ 696 |
REVENUE Remaining performance o
REVENUE Remaining performance obligations (Details) $ in Millions | 9 Months Ended |
Jul. 31, 2022 USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Revenue, Remaining Performance Obligation, Amount | $ 399 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Document Period End Date | Jul. 31, 2022 |
Revenue, Remaining Performance Obligation, Amount | $ 399 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-08-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 3 months |
Revenue, Remaining Performance Obligation, Percentage | 16% |
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 | 1 year |
Revenue, Remaining Performance Obligation, Percentage | 43% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Year | 2023 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-11-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | |
Revenue, Remaining Performance Obligation, Percentage | 41% |
SHARE-BASED COMPENSATION (Alloc
SHARE-BASED COMPENSATION (Allocation of period costs) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2022 | Jul. 31, 2021 | |
Share-based Compensation Expense, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based Compensation Expense | $ 26 | $ 19 | $ 103 | $ 84 |
Cost of products and services | ||||
Share-based Compensation Expense, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based Compensation Expense | 5 | 3 | 19 | 16 |
Research and development | ||||
Share-based Compensation Expense, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based Compensation Expense | 6 | 4 | 22 | 17 |
Selling, general and administrative | ||||
Share-based Compensation Expense, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based Compensation Expense | $ 15 | $ 12 | $ 62 | $ 51 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2022 | Jul. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Income before taxes | $ 346 | $ 270 | $ 917 | $ 673 |
Provision for income taxes | $ 8 | $ 16 | $ 92 | $ 61 |
Effective Income Tax Rate, Percent | 2.30% | 5.90% | 10% | 9% |
Net Discrete Expense (Benefit) | $ (38) | $ (26) | $ (47) | $ (46) |
Decrease in income tax provision due to tax incentives, Aggregate Dollar Amount | $ 63 | $ 41 |
INCOME TAXES INCOME TAXES (Tax
INCOME TAXES INCOME TAXES (Tax incentives) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Decrease in income tax provision due to tax incentives, Aggregate Dollar Amount | $ 63 | $ 41 |
INCOME TAXES INCOME TAXES (Inco
INCOME TAXES INCOME TAXES (Income tax examination) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Oct. 31, 2017 | Jul. 31, 2022 | |
Income Tax Examination [Line Items] | ||
Income Tax Examination, Description | . This tax year pre-dates our separation from Agilent. However, pursuant to the agreement between Agilent and Keysight pertaining to tax matters, as finalized at the time of separation, for certain entities, including Malaysia, any historical tax liability is the responsibility of Keysight. | |
Malaysia Tax Authority [Member] | ||
Income Tax Examination [Line Items] | ||
Tax Adjustments, Settlements, and Unusual Provisions | $ 68 |
NET INCOME PER SHARE NET INCOME
NET INCOME PER SHARE NET INCOME PER SHARE (Computation) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2022 | Jul. 31, 2021 | |
Numerator: | ||||
Net income | $ 338 | $ 254 | $ 825 | $ 612 |
Denominator: | ||||
Basic weighted-average shares | 179 | 184 | 181 | 185 |
Potential common shares— stock options and other employee stock plans | 2 | 2 | 1 | 2 |
Diluted weighted-average shares | 181 | 186 | 182 | 187 |
Net income per share - basic | $ 1.89 | $ 1.38 | $ 4.56 | $ 3.31 |
Net income per share - diluted | $ 1.87 | $ 1.36 | $ 4.52 | $ 3.27 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS (Goodwill Roll forward) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Jul. 31, 2022 | Oct. 31, 2021 | |
Goodwill [Roll Forward] | ||
Goodwill | $ 1,606 | $ 1,628 |
Foreign currency translation impact | (42) | |
Goodwill, Acquired During Period | 20 | |
Goodwill, Impaired, Accumulated Impairment Loss | 709 | 709 |
Communications Solutions Group | ||
Goodwill [Roll Forward] | ||
Goodwill | 1,043 | 1,069 |
Foreign currency translation impact | (35) | |
Goodwill, Acquired During Period | 9 | |
Electronic Industrial Solutions Group | ||
Goodwill [Roll Forward] | ||
Goodwill | 563 | $ 559 |
Foreign currency translation impact | (7) | |
Goodwill, Acquired During Period | $ 11 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS (Disclosures and Components of Purchased Other Intangibles) (Details) - USD ($) $ in Millions | Jul. 31, 2022 | Oct. 31, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Amortizable intangible assets, Gross carrying amount | $ 1,440 | $ 1,411 |
Accumulated Amortization and impairments | 1,224 | 1,146 |
Amortizable intangible assets, Net book value | 216 | 265 |
In-Process R&D | 0 | 7 |
Intangible Assets, Gross (Excluding Goodwill) | 1,440 | 1,418 |
Intangible Assets, Net (Excluding Goodwill) | 216 | 272 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortizable intangible assets, Gross carrying amount | 993 | 969 |
Accumulated Amortization and impairments | 903 | 866 |
Amortizable intangible assets, Net book value | 90 | 103 |
Backlog | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortizable intangible assets, Gross carrying amount | 17 | 17 |
Accumulated Amortization and impairments | 17 | 17 |
Amortizable intangible assets, Net book value | 0 | 0 |
Trademark/Tradename | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortizable intangible assets, Gross carrying amount | 36 | 36 |
Accumulated Amortization and impairments | 30 | 28 |
Amortizable intangible assets, Net book value | 6 | 8 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortizable intangible assets, Gross carrying amount | 394 | 389 |
Accumulated Amortization and impairments | 274 | 235 |
Amortizable intangible assets, Net book value | $ 120 | $ 154 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS (Acquisition Narratives) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | ||
Payments to Acquire Businesses, Net of Cash Acquired | $ 33 | $ 136 |
Goodwill, Acquired During Period | 20 | |
Finite-lived Intangible Assets Acquired | $ 23 |
GOODWILL AND OTHER INTANGIBLE_6
GOODWILL AND OTHER INTANGIBLE ASSETS (Intangible assets narratives) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2022 | Jul. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Finite Lived Intangible Assets, Foreign Currency Translation Gain (Loss) | $ 1 | |||
Amortization of Intangible Assets | $ 26 | $ 33 | 78 | $ 147 |
Indefinite-lived Intangible Assets [Line Items] | ||||
Amortization of Intangible Assets | $ 26 | $ 33 | 78 | $ 147 |
In Process Research and Development | ||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Finite-Lived Intangible Assets, Period Increase (Decrease) | (7) | |||
Indefinite-lived Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Assets, Period Increase (Decrease) | $ (7) |
GOODWILL AND OTHER INTANGIBLE_7
GOODWILL AND OTHER INTANGIBLE ASSETS (Finite-Lived Assets Future Amortization Expense) (Details) $ in Millions | Jul. 31, 2022 USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
2022 (remainder) | $ 25 |
2023 | 83 |
2024 | 43 |
2025 | 26 |
2026 | 16 |
Thereafter | $ 23 |
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 | Jul. 31, 2022 | Oct. 31, 2021 |
Assets Short - term [Abstract] | ||
Money market funds | $ 1,151 | $ 1,296 |
Derivative instruments (foreign exchange contracts) | 12 | 6 |
Assets, Long-term [Abstract] | ||
Interest Rate Derivative Assets, at Fair Value | 85 | 48 |
Equity investments | 63 | 60 |
Equity investments - other | 9 | 10 |
Total assets measured at fair value | 1,320 | 1,420 |
Liabilities, Short-term [Abstract] | ||
Derivative instruments (foreign exchange contracts) | 13 | 4 |
Liabilities Long-term [Abstract] | ||
Deferred compensation liability | 23 | 24 |
Total liabilities measured at fair value | 36 | 28 |
Level 1 | ||
Assets Short - term [Abstract] | ||
Money market funds | 1,151 | 1,296 |
Derivative instruments (foreign exchange contracts) | 0 | 0 |
Assets, Long-term [Abstract] | ||
Interest Rate Derivative Assets, at Fair Value | 0 | 0 |
Equity investments | 63 | 60 |
Equity investments - other | 0 | 0 |
Total assets measured at fair value | 1,214 | 1,356 |
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) | 12 | 6 |
Assets, Long-term [Abstract] | ||
Interest Rate Derivative Assets, at Fair Value | 85 | 48 |
Equity investments | 0 | 0 |
Equity investments - other | 0 | 0 |
Total assets measured at fair value | 97 | 54 |
Liabilities, Short-term [Abstract] | ||
Derivative instruments (foreign exchange contracts) | 13 | 4 |
Liabilities Long-term [Abstract] | ||
Deferred compensation liability | 23 | 24 |
Total liabilities measured at fair value | 36 | 28 |
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 | 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 | 9 Months Ended | ||
Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2022 | Jul. 31, 2021 | |
Debt and Equity Securities, Gain (Loss) [Abstract] | ||||
Equity Securities, FV-NI, Realized Gain | $ 0 | $ 0 | $ 0 | $ 0 |
Equity Securities, FV-NI, Unrealized Gain (Loss) | $ (8) | $ 1 | $ (24) | $ 2 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) $ in Millions | 3 Months Ended |
Jul. 31, 2022 USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Impairment, Long-Lived Asset, Held-for-Use | $ 3 |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |
Equity Securities, FV-NI, Cost | 30 |
Carrying value for Russia assets | 3 |
Fair value of Russia assets | $ 0 |
DERIVATIVES Derivative, interes
DERIVATIVES Derivative, interest rate swaps (Details) $ in Millions | Oct. 31, 2020 USD ($) |
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 | Jul. 31, 2022 USD ($) contracts |
Cash Flow Hedging | |
Derivative [Line Items] | |
Number of Foreign Currency Derivatives Held | contracts | 213 |
Not Designated as Hedging Instrument | |
Derivative [Line Items] | |
Number of Foreign Currency Derivatives Held | contracts | 69 |
Designated as Hedging Instruments | Buy | Cash Flow Hedging | |
Derivative [Line Items] | |
Derivative Liability, Notional Amount | $ (35) |
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 | (24) |
Designated as Hedging Instruments | Buy | Singapore Dollar | Cash Flow Hedging | |
Derivative [Line Items] | |
Derivative Liability, Notional Amount | (32) |
Designated as Hedging Instruments | Buy | Malaysian Ringgit | Cash Flow Hedging | |
Derivative [Line Items] | |
Derivative Liability, Notional Amount | (106) |
Designated as Hedging Instruments | Buy | Other currencies | Cash Flow Hedging | |
Derivative [Line Items] | |
Derivative Liability, Notional Amount | (13) |
Designated as Hedging Instruments | Sell | Japanese Yen | Cash Flow Hedging | |
Derivative [Line Items] | |
Derivative Liability, Notional Amount | (161) |
Not Designated as Hedging Instrument | Buy | Euro | |
Derivative [Line Items] | |
Derivative Liability, Notional Amount | (38) |
Not Designated as Hedging Instrument | Buy | Singapore Dollar | |
Derivative [Line Items] | |
Derivative Liability, Notional Amount | (34) |
Not Designated as Hedging Instrument | Buy | Malaysian Ringgit | |
Derivative [Line Items] | |
Derivative Liability, Notional Amount | (10) |
Not Designated as Hedging Instrument | Sell | |
Derivative [Line Items] | |
Derivative Liability, Notional Amount | (28) |
Not Designated as Hedging Instrument | Sell | British Pound | |
Derivative [Line Items] | |
Derivative Liability, Notional Amount | (78) |
Not Designated as Hedging Instrument | Sell | Japanese Yen | |
Derivative [Line Items] | |
Derivative Liability, Notional Amount | (12) |
Not Designated as Hedging Instrument | Sell | Other currencies | |
Derivative [Line Items] | |
Derivative Liability, Notional Amount | $ (20) |
DERIVATIVES, Fair value of deri
DERIVATIVES, Fair value of derivative instruments and Consolidated Balance Sheet location (Details) - USD ($) $ in Millions | 9 Months Ended | |
Jul. 31, 2022 | Oct. 31, 2021 | |
Derivative Fair Value by Balance Sheet Location [Abstract] | ||
Total derivatives Asset | $ 97 | $ 54 |
Total derivatives Liabilities | 13 | 4 |
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | (1) | |
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 | 11 | 5 |
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 | 10 | 1 |
Designated as Hedging Instruments | Cash Flow Hedging | Treasury Lock | Other Assets [Member] | ||
Derivative Fair Value by Balance Sheet Location [Abstract] | ||
Total derivatives Asset | 85 | 48 |
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 | $ 3 | $ 3 |
DERIVATIVES, Effect of derivati
DERIVATIVES, Effect of derivative instruments on Consolidated Statement of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2022 | Jul. 31, 2021 | Oct. 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] | |||||
Fair Value, Net Derivative Asset (Liability), Recurring Basis, Still Held, Unrealized Gain (Loss), OCI | $ (11) | $ (29) | 37 | $ 19 | |
Designated as Hedging Instruments | Cash Flow Hedging | Foreign Exchange Contracts | Accumulated Other Comprehensive Income (Loss) | |||||
Derivative [Line Items] | |||||
Fair Value, Asset (Liability), Recurring Basis, Still Held, Unrealized Gain (Loss), OCI | (3) | 0 | (1) | 3 | |
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: | (4) | 0 | (6) | 2 | |
Gain excluded from effectiveness testing recognized in earnings based on changes in fair value: | 0 | 1 | 1 | 1 | |
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: | 5 | 1 | 9 | (1) | |
Not Designated as Hedging Instrument | Other (income) expense, net | |||||
Derivative [Line Items] | |||||
Derivatives not designated as hedging instruments: | 0 | (2) | 13 | (5) | |
Not Designated as Hedging Instrument | Cost of products and services | |||||
Derivative [Line Items] | |||||
Derivatives not designated as hedging instruments: | $ 0 | $ 0 | $ 0 | $ 1 |
DEBT Long Term Debt (Details)
DEBT Long Term Debt (Details) - USD ($) $ in Millions | Jul. 31, 2022 | Oct. 31, 2021 |
Debt Instrument | ||
Total debt | $ 1,792 | $ 1,791 |
Letters of Credit Outstanding, Amount | 39 | 40 |
Long-Term Debt, Fair Value | 1,784 | 1,977 |
Senior Notes 2024 | ||
Debt Instrument | ||
Debt Instrument, Face Amount | $ 600 | |
Debt Instrument, Interest Rate, Stated Percentage | 4.55% | |
Senior Notes 2027 | ||
Debt Instrument | ||
Debt Instrument, Face Amount | $ 700 | |
Debt Instrument, Interest Rate, Stated Percentage | 4.60% | |
Senior Notes 2029 | ||
Debt Instrument | ||
Debt Instrument, Face Amount | $ 500 | |
Debt Instrument, Interest Rate, Stated Percentage | 3% | |
Senior Notes 2024 | ||
Debt Instrument | ||
Total debt | $ 599 | 599 |
Unamortized costs | 1 | 1 |
Senior Notes 2027 | ||
Debt Instrument | ||
Total debt | 697 | 696 |
Unamortized costs | 3 | 4 |
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) - USD ($) $ in Millions | 9 Months Ended | ||
Jul. 30, 2021 | Jul. 31, 2022 | Oct. 31, 2021 | |
Line of Credit facility | |||
Document Period End Date | Jul. 31, 2022 | ||
Facility, Initiation Date | Jul. 30, 2021 | ||
Facility, Maximum Borrowing Capacity | $ 750 | ||
Facility, Expiration Date | Jul. 30, 2026 | ||
Additional drawings on credit facility | $ 250 | ||
Facility, Covenant Compliance | We were in compliance with the covenants of the Revolving Credit Facility during the nine months ended July 31, 2022 | ||
Revolving Credit Facility | |||
Line of Credit facility | |||
Facility, Outstanding | $ 0 | $ 0 | |
London Interbank Offered Rate (LIBOR) | Revolving Credit Facility | |||
Line of Credit facility | |||
Debt Instrument, Description of Variable Rate Basis | LIBOR + 1 percent along with a facility fee of 0.125 percent per annum. |
DEBT Debt (Textuals) (Details)
DEBT Debt (Textuals) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Jul. 31, 2022 | Oct. 31, 2021 | |
Short-term Debt [Line Items] | ||
Debt Instrument, Covenant Compliance | We were in compliance with the covenants of our senior notes during the nine months ended July 31, 2022. | |
Letters of Credit Outstanding, Amount | $ 39 | $ 40 |
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 | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2021 | Jul. 31, 2022 | Jul. 31, 2021 | Apr. 30, 2021 | Jul. 31, 2022 | Jul. 31, 2021 | |
Defined Benefit Plan Disclosure | ||||||
Loss on settlement of pension plan | $ 0 | $ 16 | ||||
Pension Expense (Reversal of Expense), Noncash | $ 3 | |||||
Other Postretirement Benefits Expense (Reversal of Expense), Noncash | $ 16 | |||||
Defined benefit plan | United States | ||||||
Defined Benefit Plan Disclosure | ||||||
Service cost—benefits earned during the period | $ 7 | $ 6 | 19 | 18 | ||
Interest cost on benefit obligation | 6 | 6 | 18 | 17 | ||
Expected return on plan assets | (16) | (13) | (46) | (39) | ||
Amortization of net actuarial loss | 3 | 6 | 8 | 18 | ||
Settlement loss | 0 | 0 | ||||
Net periodic benefit cost (benefit) | 0 | 5 | (1) | 14 | ||
Defined benefit plan | Foreign Plan | ||||||
Defined Benefit Plan Disclosure | ||||||
Service cost—benefits earned during the period | 3 | 4 | 10 | 11 | ||
Interest cost on benefit obligation | 4 | 3 | 12 | 11 | ||
Expected return on plan assets | (15) | (19) | (45) | (58) | ||
Amortization of net actuarial loss | 6 | 10 | 18 | 31 | ||
Settlement loss | 0 | 16 | ||||
Net periodic benefit cost (benefit) | (2) | (2) | (5) | 11 | ||
Post-retirement Benefits Plan | United States | ||||||
Defined Benefit Plan Disclosure | ||||||
Service cost—benefits earned during the period | 1 | 1 | 1 | 1 | ||
Interest cost on benefit obligation | 1 | 1 | 3 | 3 | ||
Expected return on plan assets | (4) | (3) | (11) | (9) | ||
Amortization of net actuarial loss | 0 | 3 | 1 | 8 | ||
Settlement loss | 0 | 0 | ||||
Net periodic benefit cost (benefit) | $ (2) | $ 2 | $ (6) | $ 3 |
RETIREMENT PLANS AND POST RET_4
RETIREMENT PLANS AND POST RETIREMENT PENSION PLANS (Contributions) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2022 | Jul. 31, 2021 | |
United States | Defined benefit plan | ||||
Defined Benefit Plan Disclosure | ||||
Contributions by employer | $ 0 | $ 0 | $ 0 | $ 0 |
Estimated future employer contributions in remainder of current fiscal year | 0 | 0 | ||
United States | Post-retirement Benefits Plan | ||||
Defined Benefit Plan Disclosure | ||||
Contributions by employer | 0 | 0 | 0 | 0 |
Estimated future employer contributions in remainder of current fiscal year | 0 | 0 | ||
Foreign Plan | Defined benefit plan | ||||
Defined Benefit Plan Disclosure | ||||
Contributions by employer | 2 | $ 1 | 6 | $ 6 |
Estimated future employer contributions in remainder of current fiscal year | $ 2 | $ 2 |
SUPPLEMENTAL CASH FLOW INFORMAT
SUPPLEMENTAL CASH FLOW INFORMATION (Cash, cash equivalents an restricted cash reconciliation) (Details) - USD ($) $ in Millions | Jul. 31, 2022 | Oct. 31, 2021 | Jul. 31, 2021 | Oct. 31, 2020 |
Cash and cash equivalents | $ 1,847 | $ 2,052 | ||
Restricted Cash and Cash Equivalents, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other Assets, Noncurrent | Other Assets, Noncurrent | ||
Restricted cash included in other assets | $ 16 | $ 16 | ||
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows | $ 1,863 | $ 2,068 | $ 2,170 | $ 1,767 |
INVENTORY (Details)
INVENTORY (Details) - USD ($) $ in Millions | Jul. 31, 2022 | Oct. 31, 2021 |
Inventory, Net [Abstract] | ||
Finished goods | $ 303 | $ 329 |
Purchased parts and fabricated assemblies | 534 | 448 |
Inventory, Net | $ 837 | $ 777 |
Property Plant and Equipment, N
Property Plant and Equipment, Net (Details) - USD ($) $ in Millions | Jul. 31, 2022 | Oct. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | $ 2,223 | $ 2,174 |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | (1,555) | (1,524) |
Property, plant and equipment, net | 668 | 650 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 53 | 61 |
Building and Building Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 798 | 785 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | $ 1,372 | $ 1,328 |
PPE Other (Details)
PPE Other (Details) - USD ($) $ in Millions | 9 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation | $ 88 | $ 87 |
Lease (Details)
Lease (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2022 | Jul. 31, 2021 | |
Leases [Abstract] | ||||
Operating Lease, Cost | $ 13 | $ 13 | $ 38 | $ 39 |
Variable Lease, Cost | $ 4 | $ 4 | 12 | 11 |
Operating Lease, Payments | 36 | 40 | ||
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | $ 40 | $ 78 | ||
Lessee, Operating Lease, Lease Not yet Commenced, Description | we have additional operating leases, primarily for real estate, that have not yet commenced | |||
Lessee, Operating Lease, Lease Not yet Commenced, Term of Contract | 15 years | 15 years | ||
Leases that have not yet commenced present value | $ 16 | $ 16 |
WARRANTIES (Details)
WARRANTIES (Details) - USD ($) $ in Millions | 9 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
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. | |
Standard Product Warranty, Policy | 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. | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Beginning balance | $ 34 | $ 33 |
Accruals for warranties, including change in estimates | 16 | 23 |
Settlements made during the period | (18) | (21) |
Ending balance | 32 | 35 |
Standard Product Warranty Disclosure [Abstract] | ||
Accruals for warranties due within one year | 19 | 21 |
Accruals for warranties due after one year | 13 | 14 |
Ending balance | $ 32 | $ 35 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Jul. 31, 2022 | Oct. 31, 2021 | Aug. 03, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Unrecorded Unconditional Purchase Obligation | $ 536 | $ 444 | |
Loss Contingency, Estimate of Possible Loss | $ 6.6 | ||
Loss Contingency, Range of Possible Loss, Portion Not Accrued | 2.5 | ||
Loss Contingencies [Line Items] | |||
Loss Contingency, Estimate of Possible Loss | $ 6.6 | ||
Loss Contingency Accrual, Payments | $ 1.1 |
STOCKHOLDERS' EQUITY (Stock Rep
STOCKHOLDERS' EQUITY (Stock Repurchase Program) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Oct. 31, 2021 | Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2022 | Jul. 31, 2021 | Nov. 18, 2021 | |
Condensed Balance Sheet Statements, Captions [Line Items] | ||||||
Stock Repurchase Program, Authorized Amount | $ 1,200 | |||||
Stockholders' Equity, Average Amount Outstanding | $ 77 | |||||
Treasury Stock, Shares, Acquired | 4,646,427 | 2,297,600 | ||||
Treasury Stock, Value, Acquired, Cost Method | $ 228 | $ 80 | $ 723 | $ 320 |
STOCKHOLDER'S EQUITY - Accumula
STOCKHOLDER'S EQUITY - Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2022 | Jul. 31, 2021 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | $ (474) | $ (511) | $ (442) | $ (599) |
Other comprehensive income (loss) before reclassifications | (34) | (36) | (70) | 18 |
Amounts reclassified out of accumulated other comprehensive gain (loss) | 8 | 18 | 26 | 73 |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | 0 | 1 | (14) | (20) |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent, Total | (26) | (17) | (58) | 71 |
Ending balance | (500) | (528) | (500) | (528) |
Foreign currency translation | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (106) | 7 | (20) | (10) |
Other comprehensive income (loss) before reclassifications | (20) | (7) | (106) | 10 |
Amounts reclassified out of accumulated other comprehensive gain (loss) | 0 | 0 | 0 | 0 |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | 0 | 0 | 0 | 0 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent, Total | (20) | (7) | (106) | 10 |
Ending balance | (126) | 0 | (126) | 0 |
Actuarial losses | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (440) | (569) | (456) | (600) |
Other comprehensive income (loss) before reclassifications | 0 | 0 | 0 | (14) |
Amounts reclassified out of accumulated other comprehensive gain (loss) | 9 | 19 | 29 | 74 |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | (3) | (6) | (7) | (16) |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent, Total | 6 | 13 | 22 | 44 |
Ending balance | (434) | (556) | (434) | (556) |
Prior service credits | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (6) | (5) | (6) | (5) |
Other comprehensive income (loss) before reclassifications | 0 | 0 | 0 | 0 |
Amounts reclassified out of accumulated other comprehensive gain (loss) | 0 | 0 | 0 | 0 |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | 0 | 0 | 0 | 0 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent, Total | 0 | 0 | 0 | 0 |
Ending balance | (6) | (5) | (6) | (5) |
Unrealized gains (losses) on derivatives | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | 78 | 56 | 40 | 16 |
Other comprehensive income (loss) before reclassifications | (14) | (29) | 36 | 22 |
Amounts reclassified out of accumulated other comprehensive gain (loss) | (1) | (1) | (3) | (1) |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | 3 | 7 | (7) | (4) |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent, Total | (12) | (23) | 26 | 17 |
Ending balance | $ 66 | $ 33 | $ 66 | $ 33 |
STOCKHOLDERS' EQUITY - Reclassi
STOCKHOLDERS' EQUITY - Reclassifications out of accumulated comprehensive income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2022 | Jul. 31, 2021 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Cost of products | $ 499 | $ 458 | $ 1,437 | $ 1,415 |
Selling, general and administrative | 317 | 302 | 962 | 900 |
Benefit (provision) for income tax | (8) | (16) | (92) | (61) |
Net income | 338 | 254 | 825 | 612 |
Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Net income | (5) | (13) | (19) | (54) |
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 | 5 | 1 | 9 | (1) |
Selling, general and administrative | (4) | 0 | (6) | 2 |
Benefit (provision) for income tax | 0 | 0 | 0 | 0 |
Net income | 1 | 1 | 3 | 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 | (9) | (19) | (29) | (74) |
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 | 3 | 5 | 7 | 19 |
Net income | $ (6) | $ (14) | $ (22) | $ (55) |
SEGMENT INFORMATION Profitabili
SEGMENT INFORMATION Profitability (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2022 USD ($) | Jul. 31, 2021 USD ($) | Jul. 31, 2022 USD ($) segment | Jul. 31, 2021 USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of Reportable Segments | segment | 2 | |||
Revenue | $ 1,376 | $ 1,246 | $ 3,977 | $ 3,647 |
Segment income from operations | 357 | 284 | 955 | 731 |
Communications Solutions Group | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 970 | 875 | 2,811 | 2,604 |
Electronic Industrial Solutions Group | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 406 | 371 | 1,166 | 1,043 |
Total segments | ||||
Segment Reporting Information [Line Items] | ||||
Segment income from operations | 415 | 339 | 1,155 | 979 |
Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Segment income from operations | 415 | 339 | 1,155 | 979 |
Operating Segments [Member] | Communications Solutions Group | ||||
Segment Reporting Information [Line Items] | ||||
Segment income from operations | 288 | 224 | 796 | 670 |
Operating Segments [Member] | Electronic Industrial Solutions Group | ||||
Segment Reporting Information [Line Items] | ||||
Segment income from operations | $ 127 | $ 115 | $ 359 | $ 309 |
SEGMENT INFORMATION Reconciliat
SEGMENT INFORMATION Reconciliation of Reportable Results (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2022 | Jul. 31, 2021 | |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Abstract] | ||||
Total reportable operating segments' income from operations | $ 357 | $ 284 | $ 955 | $ 731 |
Share-based Payment Arrangement, Expensed and Capitalized, Amount | (26) | (19) | (103) | (84) |
Amortization of acquisition-related balances | (26) | (33) | (78) | (147) |
Acquisition and integration costs | (2) | (2) | (7) | (8) |
Restructuring and others | (4) | (1) | (12) | (9) |
Income from operations | 357 | 284 | 955 | 731 |
Interest income | 4 | 1 | 6 | 2 |
Interest Expense, Deposits | (20) | (20) | (59) | (59) |
Other Nonoperating Gains (Losses) | 5 | 5 | 15 | (1) |
Income before taxes | 346 | 270 | 917 | 673 |
Total segments | ||||
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Abstract] | ||||
Total reportable operating segments' income from operations | 415 | 339 | 1,155 | 979 |
Income from operations | $ 415 | $ 339 | $ 1,155 | $ 979 |