Cover Page
Cover Page - shares | 9 Months Ended | |
Jul. 31, 2024 | Aug. 26, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jul. 31, 2024 | |
Entity Central Index Key | 0001601046 | |
Current Fiscal Year End Date | --10-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Document Transition Report | false | |
Entity File Number | 001-36334 | |
Entity Registrant Name | KEYSIGHT TECHNOLOGIES, INC. | |
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 $0.01 per share | |
Trading Symbol | KEYS | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 173,543,355 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2024 | Jul. 31, 2023 | Jul. 31, 2024 | Jul. 31, 2023 | |
Net revenue: | ||||
Revenues | $ 1,217 | $ 1,382 | $ 3,692 | $ 4,153 |
Costs and expenses: | ||||
Cost of Goods and Services Sold | 462 | 486 | 1,361 | 1,465 |
Research and development | 226 | 215 | 686 | 664 |
Selling, general and administrative | 329 | 319 | 1,052 | 994 |
Other operating expense (income), net | (5) | (3) | (10) | (11) |
Total costs and expenses | 1,012 | 1,017 | 3,089 | 3,112 |
Income from operations | 205 | 365 | 603 | 1,041 |
Interest income | 19 | 29 | 60 | 70 |
Interest expense | (21) | (19) | (61) | (58) |
Other income (expense), net | 10 | 14 | 15 | 28 |
Income before taxes | 213 | 389 | 617 | 1,081 |
Provision (benefit) for income taxes | (176) | 101 | (70) | 250 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest, Total | 389 | 288 | 691 | 831 |
Net income | $ 389 | $ 288 | $ 687 | $ 831 |
Net income per share: | ||||
Basic (in dollars per share) | $ 2.23 | $ 1.62 | $ 3.94 | $ 4.66 |
Diluted (in dollars per share) | $ 2.22 | $ 1.61 | $ 3.92 | $ 4.63 |
Weighted average shares used in computing net income per share: | ||||
Basic (in shares) | 174 | 178 | 174 | 178 |
Diluted (in shares) | 175 | 179 | 175 | 179 |
Retained Earnings [Member] | ||||
Costs and expenses: | ||||
Net income | $ 389 | $ 288 | $ 687 | $ 831 |
Products | ||||
Net revenue: | ||||
Revenues | 900 | 1,099 | 2,761 | 3,321 |
Costs and expenses: | ||||
Cost of Goods and Services Sold | 360 | 391 | 1,069 | 1,180 |
Services and other | ||||
Net revenue: | ||||
Revenues | 317 | 283 | 931 | 832 |
Costs and expenses: | ||||
Cost of Goods and Services Sold | $ 102 | $ 95 | $ 292 | $ 285 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2024 | Jul. 31, 2023 | Jul. 31, 2024 | Jul. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 389 | $ 288 | $ 687 | $ 831 |
Other comprehensive income (loss): | ||||
Gain (loss) on derivative instruments, net of tax benefit (expense) of zero, $(1), zero and $5 | 0 | 2 | 1 | (18) |
Amounts reclassified into earnings related to derivative instruments, net of tax benefit (expense) of zero, $1, $1 and $1 | (3) | 0 | (7) | (3) |
Foreign currency translation, net of tax benefit (expense) of zero | 32 | (9) | 27 | 61 |
Change in net actuarial loss, net of tax expense of $1, $1, $3 and $3 | 3 | 4 | 8 | 12 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent, Total | 32 | (3) | 29 | 52 |
Total comprehensive income | $ 421 | $ 285 | $ 716 | $ 883 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2024 | Jul. 31, 2023 | Jul. 31, 2024 | Jul. 31, 2023 | |
Other comprehensive income (loss), tax, parenthetical disclosures [Abstract] | ||||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification, Tax | $ 0 | $ (1) | $ 0 | $ 5 |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, Tax | 0 | 1 | 1 | 1 |
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 | $ 1 | $ 1 | $ 3 | $ 3 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited) - USD ($) $ in Millions | Jul. 31, 2024 | Oct. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 1,632 | $ 2,472 |
Accounts receivable, net | 802 | 900 |
Inventory | 1,026 | 985 |
Other current assets | 536 | 452 |
Total current assets | 3,996 | 4,809 |
Property, plant and equipment, net | 776 | 761 |
Operating lease right-of-use assets | 234 | 226 |
Goodwill | 2,391 | 1,640 |
Other intangible assets, net | 637 | 155 |
Long-term investments | 107 | 81 |
Long-term deferred tax assets | 678 | 671 |
Other assets | 504 | 340 |
Total assets | 9,323 | 8,683 |
Current liabilities: | ||
Current portion of long-term debt | 600 | 599 |
Accounts payable | 280 | 286 |
Employee compensation and benefits | 262 | 304 |
Deferred revenue | 537 | 541 |
Income and other taxes payable | 85 | 90 |
Operating lease liabilities | 43 | 40 |
Other accrued liabilities | 142 | 189 |
Total current liabilities | 1,949 | 2,049 |
Long-term debt | 1,196 | 1,195 |
Retirement and post-retirement benefits | 71 | 64 |
Long-term deferred revenue | 207 | 216 |
Long-term operating lease liabilities | 197 | 192 |
Other long-term liabilities | 473 | 313 |
Total liabilities | 4,093 | 4,029 |
Commitments and contingencies (Note 13) | ||
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; issued and outstanding shares: 201 million and 200 million, respectively | 2 | 2 |
Treasury stock, at cost; 27.5 million shares and 25.4 million shares, respectively | 3,270 | 2,980 |
Additional paid-in-capital | 2,637 | 2,487 |
Retained earnings | 6,298 | 5,611 |
Accumulated other comprehensive loss | (437) | (466) |
Total stockholders' equity | 5,230 | 4,654 |
Total liabilities and equity | $ 9,323 | $ 8,683 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited) (Parenthetical) - $ / shares shares in Thousands | Jul. 31, 2024 | Oct. 31, 2023 |
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, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 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 | 201,000 | 200,000 |
Treasury Stock, Common, Shares | 27,500 | 25,400 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Jul. 31, 2024 | Jul. 31, 2023 | |
Cash flows from operating activities: | ||
Net income | $ 687 | $ 831 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 94 | 90 |
Amortization | 108 | 72 |
Share-based compensation | 111 | 110 |
Deferred tax expense (benefit) | (21) | 10 |
Excess and obsolete inventory-related charges | 26 | 19 |
Other non-cash expense (income), net | (5) | (13) |
Changes in assets and liabilities: | ||
Accounts receivable | 130 | 32 |
Inventory | (51) | (126) |
Accounts payable | (4) | (54) |
Employee compensation and benefits | (69) | (87) |
Deferred revenue | (35) | 41 |
Income taxes payable | (24) | (28) |
Interest rate swap agreement termination proceeds | 0 | 107 |
Prepaid assets | (25) | (33) |
Long-term tax receivable | (165) | 0 |
Other assets and liabilities | (64) | 59 |
Net cash provided by operating activities | 693 | 1,030 |
Cash flows from investing activities: | ||
Investments in property, plant and equipment | (116) | (158) |
Acquisition of businesses and intangible assets, net of cash acquired | (673) | (85) |
Other investing activities | 8 | (7) |
Net cash used in investing activities | (781) | (250) |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock under employee stock plans | 65 | 67 |
Payment of taxes related to net share settlement of equity awards | (31) | (49) |
Acquisition of non-controlling interests | (458) | 0 |
Treasury stock repurchases | (289) | (276) |
Repayment of debt | (24) | 0 |
Other financing activities | (16) | (1) |
Net cash used in financing activities | (753) | (259) |
Effect of exchange rate movements | 2 | 10 |
Net increase (decrease) in cash, cash equivalents, and restricted cash | (839) | 531 |
Cash, cash equivalents, and restricted cash at beginning of period | 2,488 | 2,057 |
Cash, cash equivalents, and restricted cash at end of period | 1,649 | 2,588 |
Supplemental Cash Flow Elements [Abstract] | ||
Interest payments | 38 | 37 |
Income tax paid, net | 130 | 268 |
Investments in property, plant and equipment included in accounts payable | $ 17 | $ 23 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENT OF EQUITY Statement - USD ($) $ in Millions | Total | ESI Group SA | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock, Common | Retained Earnings [Member] | AOCI Including Portion Attributable to Noncontrolling Interest [Member] | Noncontrolling Interest ESI Group SA |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest, Total | $ 831 | |||||||
Common Stock, Shares, Outstanding beginning at Oct. 31, 2022 | 198,569,000 | |||||||
Treasury Stock, Shares beginning at Oct. 31, 2022 | (20,536,000) | |||||||
Stockholders' Equity, Balance beginning at Oct. 31, 2022 | 4,161 | $ 2 | $ 2,333 | $ (2,274) | $ 4,554 | $ (454) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of common stock (shares) | 1,179,000 | |||||||
Issuance of common stock | 67 | 67 | ||||||
Taxes related to net share settlement of equity awards | (49) | (49) | ||||||
Share-based compensation | $ 111 | 111 | ||||||
Treasury Stock, Shares, Acquired | (1,640,236) | (1,640,000) | ||||||
Repurchase of common stock | $ (276) | $ (276) | ||||||
Net income | 831 | 831 | ||||||
Other comprehensive income (loss), net of tax | 52 | 52 | ||||||
Common Stock, Shares, Outstanding ending at Jul. 31, 2023 | 199,748,000 | |||||||
Treasury Stock, Shares ending at Jul. 31, 2023 | (22,176,000) | |||||||
Stockholders' Equity, Balance ending at Jul. 31, 2023 | 4,897 | $ 2 | 2,462 | $ (2,550) | 5,385 | (402) | ||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest, Total | 288 | |||||||
Common Stock, Shares, Outstanding beginning at Apr. 30, 2023 | 199,398,000 | |||||||
Treasury Stock, Shares beginning at Apr. 30, 2023 | (21,247,000) | |||||||
Stockholders' Equity, Balance beginning at Apr. 30, 2023 | 4,705 | $ 2 | 2,404 | $ (2,399) | 5,097 | (399) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of common stock (shares) | 350,000 | |||||||
Issuance of common stock | 34 | 34 | ||||||
Taxes related to net share settlement of equity awards | (2) | (2) | ||||||
Share-based compensation | 26 | 26 | ||||||
Treasury Stock, Shares, Acquired | (929,000) | |||||||
Repurchase of common stock | (151) | $ (151) | ||||||
Net income | 288 | 288 | ||||||
Other comprehensive income (loss), net of tax | (3) | (3) | ||||||
Common Stock, Shares, Outstanding ending at Jul. 31, 2023 | 199,748,000 | |||||||
Treasury Stock, Shares ending at Jul. 31, 2023 | (22,176,000) | |||||||
Stockholders' Equity, Balance ending at Jul. 31, 2023 | 4,897 | $ 2 | 2,462 | $ (2,550) | 5,385 | (402) | ||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest, Total | $ 691 | |||||||
Common Stock, Shares, Outstanding beginning at Oct. 31, 2023 | 199,771,000 | |||||||
Treasury Stock, Shares beginning at Oct. 31, 2023 | 25,400,000 | (25,449,000) | ||||||
Stockholders' Equity, Balance beginning at Oct. 31, 2023 | $ 4,654 | $ 0 | $ 2 | 2,487 | $ (2,980) | 5,611 | (466) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of common stock (shares) | 1,199,000 | |||||||
Issuance of common stock | 65 | 65 | ||||||
Taxes related to net share settlement of equity awards | (31) | (31) | ||||||
Share-based compensation | $ 112 | 112 | ||||||
Treasury Stock, Shares, Acquired | (2,000,882) | (2,001,000) | ||||||
Repurchase of common stock | $ (290) | $ (290) | ||||||
Net income | 687 | 687 | ||||||
Other comprehensive income (loss), net of tax | 29 | 29 | ||||||
Net Income (Loss) Attributable to Noncontrolling Interest | $ 4 | |||||||
Noncontrolling Interest, Increase from Business Combination | 458 | 458 | ||||||
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests | $ (458) | 4 | $ (462) | |||||
Common Stock, Shares, Outstanding ending at Jul. 31, 2024 | 200,970,000 | |||||||
Treasury Stock, Shares ending at Jul. 31, 2024 | 27,500,000 | (27,450,000) | ||||||
Stockholders' Equity, Balance ending at Jul. 31, 2024 | $ 5,230 | 0 | $ 2 | 2,637 | $ (3,270) | 6,298 | (437) | |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest, Total | 389 | |||||||
Common Stock, Shares, Outstanding beginning at Apr. 30, 2024 | 200,655,000 | |||||||
Treasury Stock, Shares beginning at Apr. 30, 2024 | (26,376,000) | |||||||
Stockholders' Equity, Balance beginning at Apr. 30, 2024 | 4,903 | 0 | $ 2 | 2,580 | $ (3,119) | 5,909 | (469) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of common stock (shares) | 315,000 | |||||||
Issuance of common stock | 32 | 32 | ||||||
Taxes related to net share settlement of equity awards | (3) | (3) | ||||||
Share-based compensation | 28 | 28 | ||||||
Treasury Stock, Shares, Acquired | (1,074,000) | |||||||
Repurchase of common stock | (151) | $ (151) | ||||||
Net income | 389 | 389 | ||||||
Other comprehensive income (loss), net of tax | $ 32 | 32 | ||||||
Common Stock, Shares, Outstanding ending at Jul. 31, 2024 | 200,970,000 | |||||||
Treasury Stock, Shares ending at Jul. 31, 2024 | 27,500,000 | (27,450,000) | ||||||
Stockholders' Equity, Balance ending at Jul. 31, 2024 | $ 5,230 | $ 0 | $ 2 | $ 2,637 | $ (3,270) | $ 6,298 | $ (437) |
OVERVIEW, BASIS OF PRESENTATION
OVERVIEW, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Jul. 31, 2024 | |
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 global innovator in the computing, communications and electronics market, committed to advancing our customers’ business success by helping them solve critical challenges in the development and commercialization of their products and services. Our mission, “ accelerating innovation to connect and secure the world, ” speaks to the value we provide our customers in a world of ever-increasing technological complexity. We deliver this value through a broad range of design and test solutions that address the critical challenges our customers face in bringing their innovations to market faster. 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, 2024 and October 31, 2023, results of operations for the three and nine months ended July 31, 2024 and 2023, and cash flows for the nine months ended July 31, 2024 and 2023. Principles of consolidation. The condensed consolidated financial statements include the accounts of the company and our wholly- and majority-owned subsidiaries. All significant inter-company transactions have been eliminated. The condensed consolidated financial statements also reflect the impact of non-controlling interests. Non-controlling interests do not have a significant impact on the condensed consolidated results of operations; therefore, net income attributable to non-controlling interests for the nine months ended July 31, 2024 of $4 million is not presented separately and is included in “other income (expense), net” in the condensed consolidated statements of operations. 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. 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, 2023. New Accounting Pronouncements. Amendments to GAAP that do not require adoption until a future date are not expected to have a material impact on the condensed consolidated financial statements upon adoption. |
ACQUISITIONS
ACQUISITIONS | 9 Months Ended |
Jul. 31, 2024 | |
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract] | |
Business Combination Disclosure | 2. ACQUISITIONS Acquisition of ESI Group SA On November 3, 2023, we acquired 50.6% of the share capital of ESI Group SA (“ESI Group”) for $477 million, net of cash acquired, using existing cash. During January 2024, we completed the acquisition of the remaining share capital of ESI Group for $458 million, using existing cash. The company entered into put/call agreements valued at $7 million for certain ESI Group equity awards, subject to a holding period that may extend beyond the explicit vesting period, for the right to receive a cash payment equal to the public tender offer consideration of 155 euros per share, which was substantially paid in the third quarter of fiscal year 2024. For the three and nine months ended July 31, 2024, ESI Group's net revenue was $25 million and $119 million, respectively. For the three and nine months ended July 31, 2024, ESI Group's net loss attributable to Keysight shareholders was $27 million and $47 million, respectively. The ESI Group acquisition was accounted for in accordance with the authoritative accounting guidance. The acquired assets and assumed liabilities were recorded by Keysight at their estimated fair values. Keysight determined the estimated fair values with the assistance of valuations performed by third party specialists, discounted cash flow analysis, and estimates made by management. The acquisition of ESI Group expands our application layer portfolio with simulation capabilities that are critical to accelerate innovation in multiple end markets. These factors, among others, contributed to a purchase price in excess of the estimated fair value of ESI Group's net identifiable assets acquired (see summary of net assets below), and, as a result, we have recorded goodwill in connection with this transaction. Goodwill was assigned to the Communications Solutions Group (“CSG”) and the Electronic Industrial Solutions Group (“EISG”) reportable segments, based on the expected benefits and synergies that are likely to be realized from the ESI Group acquisition. We do not expect the goodwill recognized or any potential impairment charges in the future to be deductible for income tax purposes. A portion of the overall purchase price was allocated to acquired intangible assets. Amortization expense associated with acquired intangible assets is not deductible for tax purposes. Therefore, a deferred tax liability of $98 million was established primarily for the future amortization of these intangibles and is included in “other long-term liabilities” in the table below. The following table summarizes the preliminary allocation of the purchase price to the estimated fair values of the assets acquired and liabilities assumed on the closing date: November 3, 2023 (in millions) Cash and cash equivalents $ 35 Short-term investments 12 Accounts receivable 28 Other current assets 18 Property, plant and equipment 4 Operating lease right-of-use assets 8 Goodwill 603 Other intangible assets 494 Other assets 3 Total assets acquired 1,205 Accounts payable (8) Employee compensation and benefits (23) Deferred revenue (14) Income and other taxes payable (11) Operating lease liabilities (3) Other accrued liabilities (18) Debt (24) Retirement and post-retirement benefits (7) Long-term operating lease liabilities (5) Other long-term liabilities (115) Net assets acquired $ 977 The fair values of cash and cash equivalents, short-term investments, accounts receivable, other current assets, accounts payable, employee compensation and benefits, and deferred revenue were generally determined using historical carrying values given the short-term nature of these assets and liabilities. The fair value for intangible assets was determined with the input from third-party valuation specialists. The fair values of property, plant and equipment and certain other liabilities were determined internally using historical carrying values and estimates made by management. During the second quarter of fiscal year 2024, the company decreased the deferred tax liability and goodwill by $8 million primarily for a timing difference in the recognition of research and development expenses. During the third quarter of fiscal year 2024, the company increased income and other taxes payable and other long-term liabilities by $3 million and $5 million, respectively, offset against goodwill, primarily for tax liabilities and uncertain tax positions. As additional information becomes available, we may revise the preliminary purchase price allocation during the remainder of the measurement period (which will not exceed 12 months from the acquisition date). Any such revisions or changes may be material. Valuation of Intangible Assets Acquired The components of intangible assets acquired in connection with the ESI Group acquisition were as follows: Estimated Fair Value Estimated useful life (in millions) (in years) Developed technology $ 270 6 Customer relationships 160 6 Backlog 15 3 Trademarks/Tradename 2 2 Total amortizable intangible assets 447 In-process research and development 47 Total intangible assets $ 494 As noted above, the intangible assets were valued with input from valuation specialists using the income approach, which includes the discounted cash flow, with and without, and relief from royalty methods. The in-process research and development was valued using the multi-period excess earnings method under the income approach by discounting forecasted cash flows directly related to the products expecting to result from the projects, net of returns on contributory assets. A discount rate of 12% was used to value the research and development projects to reflect the additional risks inherent in the acquired projects. The primary in-process projects acquired relate to next generation products which will be released in the near future. Total costs to complete for all ESI Group in-process research and development were estimated at approximately $7 million as of the close date. Acquisition and integration costs directly related to the ESI Group acquisition are recorded in selling, general and administrative expenses, other operating expense (income), net and other income (expense), net, and were $9 million and $30 million for the three and nine months ended July 31, 2024, respectively. For the three and nine months ended July 31, 2024, we incurred $3 million and $9 million, respectively, of acquisition-related compensation expense to redeem certain of ESI Group's outstanding unvested stock awards as of the date of the acquisition that were determined to relate to post-merger service periods. The following represents pro forma operating results as if ESI Group had been included in the company's condensed consolidated statements of operations as of the beginning of fiscal 2023: Three Months Ended Nine Months Ended July 31, July 31, 2024 2023 2024 2023 (in millions, except per-share amounts) Net revenue $ 1,217 $ 1,409 $ 3,692 $ 4,276 Net income $ 398 $ 260 $ 717 $ 785 Net income per share - Basic $ 2.28 $ 1.46 $ 4.11 $ 4.41 Net income per share - Diluted $ 2.27 $ 1.45 $ 4.09 $ 4.38 The unaudited pro forma financial information for the three and nine months ended July 31, 2024 and 2023 combines the historical results of Keysight and ESI Group for the three and nine months ended July 31, 2024 and 2023, assuming that the companies were combined as of November 1, 2022 and includes business combination accounting effects from the acquisition including amortization charges from acquired intangible assets and tax-related effects. The pro forma information as presented above is for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisition had taken place at the beginning of fiscal 2023. Acquisition of Riscure Holding B.V. On February 21, 2024, we acquired all the outstanding share capital of Riscure Holding B.V. (“Riscure”) for $78 million, net of cash acquired, expanding our automated security assessment capabilities and solutions for semiconductors, embedded systems, and connected devices. We recognized goodwill and other intangible assets of $52 million and $35 million, respectively, based on the preliminary allocation of the purchase price to the estimated fair values of the assets acquired and liabilities assumed. Goodwill was assigned to the CSG reportable segment, based on the expected benefits and synergies that are likely to be realized from the Riscure acquisition. We do not expect the goodwill recognized or any potential impairment charges in the future to be deductible for income tax purposes. Acquisition of AnaPico AG |
REVENUE (Notes)
REVENUE (Notes) | 9 Months Ended |
Jul. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | 3. 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, CSG and EISG. Three Months Ended July 31, 2024 2023 CSG EISG Total CSG EISG Total (in millions) Region Americas $ 402 $ 98 $ 500 $ 446 $ 110 $ 556 Europe 125 96 221 139 104 243 Asia Pacific 320 176 496 333 250 583 Total revenue $ 847 $ 370 $ 1,217 $ 918 $ 464 $ 1,382 End Market Aerospace, Defense & Government $ 275 $ — $ 275 $ 307 $ — $ 307 Commercial Communications 572 — 572 611 — 611 Electronic Industrial — 370 370 — 464 464 Total revenue $ 847 $ 370 $ 1,217 $ 918 $ 464 $ 1,382 Timing of Revenue Recognition Revenue recognized at a point in time $ 660 $ 298 $ 958 $ 749 $ 395 $ 1,144 Revenue recognized over time 187 72 259 169 69 238 Total revenue $ 847 $ 370 $ 1,217 $ 918 $ 464 $ 1,382 Nine Months Ended July 31, 2024 2023 CSG EISG Total CSG EISG Total (in millions) Region Americas $ 1,216 $ 290 $ 1,506 $ 1,322 $ 312 $ 1,634 Europe 384 320 704 414 315 729 Asia Pacific 926 556 1,482 1,058 732 1,790 Total revenue $ 2,526 $ 1,166 $ 3,692 $ 2,794 $ 1,359 $ 4,153 End Market Aerospace, Defense & Government $ 847 $ — $ 847 $ 927 $ — $ 927 Commercial Communications 1,679 — 1,679 1,867 — 1,867 Electronic Industrial — 1,166 1,166 — 1,359 1,359 Total revenue $ 2,526 $ 1,166 $ 3,692 $ 2,794 $ 1,359 $ 4,153 Timing of Revenue Recognition Revenue recognized at a point in time $ 1,972 $ 951 $ 2,923 $ 2,301 $ 1,165 $ 3,466 Revenue recognized over time 554 215 769 493 194 687 Total revenue $ 2,526 $ 1,166 $ 3,692 $ 2,794 $ 1,359 $ 4,153 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 represent revenue recognized upfront 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 upon 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 $91 million and $58 million as of July 31, 2024 and October 31, 2023, respectively, and is included in “accounts receivables, net” and “other assets” in the 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 $43 million as of July 31, 2024 and October 31, 2023, respectively, and are included in “other current assets” and “other assets” in the condensed consolidated balance sheet. The amortization expense associated with these capitalized costs was $13 million and $43 million for the three and nine months ended July 31, 2024, respectively, and $13 million and $50 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 products are shipped or 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, 2024 (in millions) Balance at October 31, 2023 $ 757 Deferral of revenue billed in current period, net of recognition 440 Deferred revenue arising out of acquisitions 19 Revenue recognized that was deferred as of the beginning of the period (475) Foreign currency translation impact 3 Balance at July 31, 2024 $ 744 Of the $475 million of revenue recognized in the nine months ended July 31, 2024 that was deferred as of the beginning of the period, approximately $105 million was recognized in the three months ended July 31, 2024. Remaining Performance Obligations Our remaining performance obligations, excluding contracts that have an original expected duration of one year or less, was approximately $570 million as of July 31, 2024, and represents the company’s obligation to deliver products and services and obtain customer acceptance on delivered products. As of July 31, 2024, we expect to fulfill 16 percent of these remaining performance obligations during the remainder of 2024, 51 percent during 2025, and 33 percent thereafter. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 9 Months Ended |
Jul. 31, 2024 | |
Share-Based Payment Arrangement, Noncash Expense [Abstract] | |
SHARE-BASED COMPENSATION | 4. 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 the condensed consolidated statement of operations was as follows: Three Months Ended Nine Months Ended July 31, July 31, 2024 2023 2024 2023 (in millions) Cost of products and services $ 7 $ 4 $ 22 $ 20 Research and development 8 8 30 31 Selling, general and administrative 17 15 66 60 Total share-based compensation expense $ 32 $ 27 $ 118 $ 111 For the three and nine months ended July 31, 2024, the total share-based compensation expense includes $3 million and $9 million, respectively, of ESI Group acquisition-related compensation to redeem certain outstanding unvested stock awards as of the date of the acquisition that were determined to relate to post-merger service periods. Share-based compensation capitalized within inventory was $2 million as of July 31, 2024 and 2023. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Jul. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 5. INCOME TAXES The following table provides income tax details: Three Months Ended Nine Months Ended July 31, July 31, 2024 2023 2024 2023 (in millions, except percentages) Income before taxes $ 213 $ 389 $ 617 $ 1,081 Provision (benefit) for income taxes $ (176) $ 101 $ (70) $ 250 Effective tax rate (81.9) % 25.8 % (11.2) % 23.1 % There was a tax benefit for the three and nine months ended July 31, 2024, as compared to the overall tax expense for the same periods last year, primarily due to one-time discrete tax benefits, as explained below, and a decrease in income before taxes in the current year. The income tax benefit for the three and nine months ended July 31, 2024 included a net discrete benefit of $179 million and $178 million, respectively. The income tax expense for the three and nine months ended July 31, 2023 included a net discrete expense of $19 million and $21 million, respectively. The discrete tax benefit for the three and nine months ended July 31, 2024 includes a $165 million benefit related to the deduction in the U.S. for intangible assets for purposes of determining income or loss under IRC § 951A(c). On June 14, 2019, the U.S. Department of the Treasury (“Treasury”) issued final regulations relating to Global Intangible Low Taxed Income (“GILTI”) under IRC § 951A (the “tax regulations”). The tax regulations contained language which disallowed GILTI tax deductions for intangible asset amortization resulting from the Singapore restructuring completed in 2018. During the quarter, the company concluded, in response to recent U.S. Supreme Court decisions on a number of relevant cases, the evolving global tax landscape and other changes in circumstances, that Treasury exceeded its regulatory authority and the intangible asset amortization should be deductible. The company amended its U.S. federal income tax returns for the open tax years to claim the deduction and recognized the discrete benefit in the condensed consolidated financial statements. The tax receivable resulting from the amended returns is reflected as “other assets” in the condensed consolidated balance sheet. The GILTI tax benefit for the fiscal year 2024 amortization is included in the annual effective tax rate, and the Singapore intangible assets will continue to be amortized for GILTI tax purposes until 2033. The company believes the position meets the more likely than not recognition threshold. The company intends to vigorously defend its position. The outcome cannot be predicted with certainty. If we are ultimately unsuccessful in defending our position, we may be required to reverse the benefit previously recorded. The discrete tax benefit for the three and nine months ended July 31, 2024 also includes a $61 million benefit for the settlement of a Malaysia uncertain tax position. In the fourth quarter of fiscal year 2017, Keysight was assessed and paid income tax and penalties in Malaysia on gains related to the transfer of intellectual property rights. The company disputed this assessment and filed an appeal with the Court of Appeal in Malaysia. The Court of Appeal’s decision was rendered in Keysight’s favor on May 24, 2024, and the company received a refund of the income tax and penalties. At the time of the original assessment, the company had recorded a tax reserve for the assessed amount; the tax reserve was released as a result of the Court of Appeal decision. Additionally, the income tax benefit for the three and nine months ended July 31, 2024 is offset by a discrete expense of $35 million due to a change in the potential U.S. benefit associated with the future resolution of non-U.S. tax reserves. Keysight benefits from tax incentives in several jurisdictions, most significantly in Singapore and Malaysia. The tax incentives provide lower rates of taxation on certain classes of income and require thresholds of investments and employment in those jurisdictions. The Malaysia tax incentive expires October 31, 2025. The Singapore tax incentive expired July 31, 2024. The expiration of the Singapore tax incentive in the current year has been reflected in the annual tax forecast. The impact of the tax incentives decreased the income tax provision by $35 million and $73 million for the nine months ended July 31, 2024 and 2023, respectively. The decrease in the tax benefit for the nine months ended July 31, 2024 is primarily due to a decrease in earnings taxed at incentive rates and the impact of the expiration of the Singapore tax incentive. The company is pursuing options to renew the Singapore tax incentive with retroactive effect to August 1, 2024. The open tax years for the U.S. federal income tax return and most state income tax returns are from November 1, 2019 through the current tax year. For the majority of our non-U.S. entities, the open tax years are from November 1, 2018 through the current tax year. At this time, management does not believe that the outcome of any future or currently ongoing examination will have a material impact on our consolidated financial statements. We believe that we have an adequate provision for any adjustments that may result from tax examinations. However, the outcome of 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 that 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, 2024 | |
Earnings Per Share [Abstract] | |
NET INCOME PER SHARE | 6. 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, 2024 2023 2024 2023 (in millions, except per-share amounts) Net income $ 389 $ 288 $ 687 $ 831 Basic weighted-average shares 174 178 174 178 Potential common shares 1 1 1 1 Diluted weighted-average shares 175 179 175 179 Net income per share - basic $ 2.23 $ 1.62 $ 3.94 $ 4.66 Net income per share - diluted $ 2.22 $ 1.61 $ 3.92 $ 4.63 |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 9 Months Ended |
Jul. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | 7. GOODWILL AND OTHER INTANGIBLE ASSETS The goodwill balance as of July 31, 2024 and October 31, 2023 and the activity for the nine months ended July 31, 2024 for each of our reportable operating segments were as follows: CSG EISG Total (in millions) Goodwill at October 31, 2023 $ 1,057 $ 583 $ 1,640 Foreign currency translation impact 3 5 8 Goodwill arising from acquisitions 185 558 743 Goodwill at July 31, 2024 $ 1,245 $ 1,146 $ 2,391 There were no impairments for the three and nine months ended July 31, 2024 and 2023. As of July 31, 2024 and October 31, 2023, accumulated impairment losses on goodwill was $709 million. Other intangible assets as of July 31, 2024 and October 31, 2023 consisted of the following: July 31, 2024 October 31, 2023 Gross Accumulated Net Book Gross Accumulated Net Book (in millions) Developed technology $ 1,367 $ 1,000 $ 367 $ 1,033 $ 949 $ 84 Backlog 37 23 14 19 17 2 Trademark/Tradename 38 35 3 36 33 3 Customer relationships 587 387 200 406 340 66 Total amortizable intangible assets $ 2,029 $ 1,445 $ 584 $ 1,494 $ 1,339 $ 155 In-Process R&D 53 — 53 — — — Total $ 2,082 $ 1,445 $ 637 $ 1,494 $ 1,339 $ 155 During the nine months ended July 31, 2024, we recognized additions to goodwill and other intangible assets of $743 million and $582 million, respectively, based on the preliminary allocation of the purchase price to the estimated fair values of the assets acquired and liabilities assumed from the acquisition of ESI Group and other acquisition activity. See Note 2, “Acquisitions,” for additional information. During the nine months ended July 31, 2024, 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, 2024. During the nine months ended July 31, 2024, foreign exchange translation had a favorable impact of $6 million on other intangible assets. Amortization of other intangible assets was $31 million and $106 million, respectively, for the three and nine months ended July 31, 2024. Amortization of other intangible assets was $23 million and $71 million, respectively, for the three and nine months ended July 31, 2023. Estimated intangible assets amortization expense for each of the five succeeding fiscal years is as follows: Amortization expense (in millions) 2024 (remainder) $ 32 2025 $ 124 2026 $ 111 2027 $ 99 2028 $ 96 2029 $ 88 Thereafter $ 34 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Jul. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | 8. 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, 2024 and October 31, 2023 were as follows: Fair Value Measurements at July 31, 2024 October 31, 2023 Total Level 1 Level 2 Level 3 Other Total Level 1 Level 2 Level 3 Other (in millions) Assets: Short-term Money market funds $ 989 $ 989 $ — $ — $ — $ 1,934 $ 1,934 $ — $ — $ — Derivative instruments (foreign exchange contracts) 14 — 14 — — 18 — 18 — — Long-term Equity investments 78 78 — — — 56 56 — — — Other investments 29 — — — 29 25 — — — 25 Total assets measured at fair value $ 1,110 $ 1,067 $ 14 $ — $ 29 $ 2,033 $ 1,990 $ 18 $ — $ 25 Liabilities: Short-term Derivative instruments (foreign exchange contracts) $ 8 $ — $ 8 $ — $ — $ 54 $ — $ 54 $ — $ — Long-term Deferred compensation liability 33 — 33 — — 27 — 27 — — Total liabilities measured at fair value $ 41 $ — $ 41 $ — $ — $ 81 $ — $ 81 $ — $ — During the nine months ended July 31, 2024, we purchased an equity investment for $10 million. Our money market funds and equity investments with readily determinable fair values are measured at fair value using quoted market prices and, therefore, are classified within Level 1 of the fair value hierarchy. Equity and fixed income investments or convertible notes without readily determinable fair values that are either measured at cost, adjusted for observable changes in price or impairments, or accounted for under a measurement alternative are not categorized in the fair value hierarchy and are presented as “other investments” in the table above. Our deferred compensation liability is classified as Level 2 because the inputs used in the calculations are observable, although the values are not directly based on quoted market prices. Our derivative financial instruments are classified within Level 2 as there is not an active market for each hedge contract, but the inputs used to calculate the value of the instruments are tied to active markets. Equity investments, including securities that are earmarked to pay the deferred compensation liability, and the deferred compensation liability are reported at fair value, with gains or losses resulting from changes in fair value recognized in earnings. Certain derivative instruments are reported at fair value, with unrealized gains and losses, net of tax, included in “accumulated other comprehensive income (loss).” The changes in fair value of the equity investment are recorded within “other income (expense), net” in the condensed consolidated statement of operations. Net recognized gain (loss) on sale of our equity and other investments were as follows: Three Months Ended Nine Months Ended July 31, July 31, 2024 2023 2024 2023 (in millions) Net realized gain (loss) on equity and other investments sold $ — $ — $ — $ — Net unrealized gain (loss) on equity and other investments still held $ 3 $ 13 $ 13 $ 20 |
DERIVATIVES
DERIVATIVES | 9 Months Ended |
Jul. 31, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES | 9. 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 2020, we entered into forward-starting interest rate swap agreements with an aggregate notional amount of $600 million associated with future interest payments on anticipated debt issuances through fiscal year 2024. In 2023, we terminated the interest rate swap agreements, resulting in a deferred gain of $107 million recognized in accumulated other comprehensive income (loss) to be amortized to interest expense over the term of the anticipated debt. As part of the ESI Group acquisition, we assumed two interest rate swap agreements with an aggregate notional amount of 5 million euros to hedge the variable interest rate of the syndicate loan. In April 2024, we terminated these interest rate swap agreements resulting in an immaterial impact on earnings. Non-designated Hedges Additionally, we periodically enter into foreign exchange contracts to hedge monetary assets and liabilities that are denominated in currencies other than the functional currency of our subsidiaries. In connection with the acquisition of the ESI Group, we entered into foreign exchange forward contracts to mitigate the currency exchange risk associated with the payment of the purchase price in euros. The aggregate notional amount of the currencies hedged was 930 million euros as of October 31, 2023. These foreign exchange contracts did not qualify for hedge accounting treatment and were not designated as hedging instruments. During the nine months ended July 31, 2024, these foreign exchange forward contracts were settled using existing cash of $63 million, resulting in a loss of $18 million recorded in “other income (expense), net” in the condensed consolidated statement of operations. During the third quarter of fiscal year 2024, we entered into foreign exchange forward contracts with an aggregate notional amount of 1.2 billion pounds sterling to mitigate the currency exchange risk associated with a planned acquisition. These foreign exchange contracts do not qualify for hedge accounting treatment and are not designated as hedging instruments. The resulting net unrealized gain on outstanding contracts was $7 million and was recorded in “other income (expense), net” in the condensed consolidated statement of operations and in “other assets” and “other accrued liabilities” in the condensed consolidated balance sheet for the three and nine months ended July 31, 2024. The aggregate number of open foreign exchange forward contracts designated as “cash flow hedges” and “not designated as hedging instruments” was 207 and 85, respectively, as of July 31, 2024. The net notional amounts by currency and designation as of July 31, 2024 were as follows: Derivatives in Cash Flow Hedging Relationships Derivatives Not Designated as Hedging Instruments Forward Forward Currency Buy/(Sell) Buy/(Sell) (in millions) Euro $ 21 $ 44 Pound Sterling 9 1,541 Singapore Dollar 35 4 Malaysian Ringgit 104 11 Japanese Yen (103) (66) Other currencies (34) (31) Total $ 32 $ 1,503 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, 2024 and October 31, 2023 were as follows: Fair Values of Derivative Instruments Assets Derivatives Liabilities Derivatives Fair Value Fair Value Balance Sheet Location July 31, 2024 October 31, 2023 Balance Sheet Location July 31, 2024 October 31, 2023 (in millions) Derivatives designated as hedging instruments: Cash flow hedges Foreign exchange contracts Other current assets $ 4 $ 16 Other accrued liabilities $ 3 $ 7 Derivatives not designated as hedging instruments: Foreign exchange contracts Other current assets 10 2 Other accrued liabilities 5 47 Total derivatives $ 14 $ 18 $ 8 $ 54 The effect of derivative instruments for foreign exchange contracts designated as hedging instruments and for those not designated as hedging instruments in the condensed consolidated statement of operations was as follows: Three Months Ended Nine Months Ended July 31, July 31, 2024 2023 2024 2023 (in millions) Derivatives designated as hedging instruments: Cash Flow Hedges Interest rate swap contracts: Gain (loss) recognized in accumulated other comprehensive income (loss) $ — $ — $ — $ (26) 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 $ 3 $ 1 $ 9 $ 5 Selling, general and administrative $ — $ — $ (1) $ (1) Gain (loss) excluded from effectiveness testing recognized in earnings based on amortization approach: Cost of products $ — $ 2 $ 3 $ 4 Selling, general and administrative $ (1) $ — $ (1) $ — Derivatives not designated as hedging instruments: Gain (loss) recognized in: Other income (expense), net $ 8 $ (2) $ (12) $ (2) The estimated amount as of July 31, 2024 expected to be reclassified from accumulated other comprehensive income (loss) to earnings within the next twelve months is a gain of $9 million. |
DEBT
DEBT | 9 Months Ended |
Jul. 31, 2024 | |
Debt Disclosure [Abstract] | |
DEBT | 10. DEBT The following table summarizes the components of our debt: July 31, 2024 October 31, 2023 (in millions) 2024 Senior Notes at 4.55% ($600 face amount less unamortized costs of zero and $1) $ 600 $ 599 2027 Senior Notes at 4.60% ($700 face amount less unamortized costs of $2 and $2) 698 698 2029 Senior Notes at 3.00% ($500 face amount less unamortized costs of $2 and $3) 498 497 Total debt 1,796 1,794 Less: Current portion of long-term debt 600 599 Long-Term Debt $ 1,196 $ 1,195 Revolving Credit Facility On July 30, 2021, we entered into an amended and restated credit agreement (the “Revolving Credit Facility”) which provides a $750 million five-year unsecured revolving credit facility that expires on July 30, 2026 with an annual interest rate of LIBOR + 1 percent along with a facility fee of 0.125 percent per annum. On February 17, 2023, we entered into the first amendment to the Revolving Credit Facility to change the annual interest rate from LIBOR + 1 percent to SOFR + 1.1 percent. In addition, the Revolving Credit Facility 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 Revolving Credit Facility for general corporate purposes. As of July 31, 2024 and October 31, 2023, 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, 2024. Senior Notes 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, 2024 as compared to the senior notes described in our Annual Report on Form 10-K for the fiscal year ended October 31, 2023. The fair value of our debt, which is calculated from quoted prices that are primarily Level 1 inputs under the accounting guidance fair value hierarchy was approximately $1,751 million and $1,679 million as of July 31, 2024 and October 31, 2023, respectively. Bridge Facility On March 28, 2024, we entered into a bridge credit agreement (the “Bridge Facility”) pursuant to which certain lenders agreed to provide a senior unsecured 364-day bridge credit facility of up to 1,350 million pounds sterling for the purpose of providing the financing to support a planned acquisition. On July 25, 2024, the Bridge Facility was decreased to 1,232 million pounds sterling. We incurred costs in connection with the Bridge Facility of $7 million that are included in “other current assets” in the condensed consolidated balance sheet and are being amortized to interest expense over the term of the Bridge Facility. Letters of credit As of July 31, 2024 and October 31, 2023, we had $43 million and $41 million, respectively, of outstanding letters of credit and surety bonds unrelated to the credit facility that were issued by various lenders. ESI Group debt and credit facility assumed As part of the ESI Group acquisition, we assumed debt of $24 million, of which $10 million was payable within one year. The debt included a syndicated loan of $11 million payable through yearly installments until April 2025 with an annual interest rate of EURIBOR + 2 to 2.5 percent. We also assumed various fixed interest rate state-guaranteed loans and other bank borrowings of $13 million. During the nine months ended July 31, 2024, we repaid the debt assumed as part of the acquisition. As part of the ESI Group acquisition, we assumed a revolving credit facility of 10 million euros that was subsequently terminated in April 2024. |
RETIREMENT PLANS AND POST RETIR
RETIREMENT PLANS AND POST RETIREMENT PENSION PLANS | 3 Months Ended |
Jul. 31, 2024 | |
Retirement Benefits [Abstract] | |
RETIREMENT PLANS AND POST RETIREMENT PENSION PLANS | 11. RETIREMENT PLANS AND POST-RETIREMENT BENEFIT PLANS For the three and nine months ended July 31, 2024 and 2023, our net pension and post-retirement benefit cost (benefit) consisted of the following: Pensions U.S. Defined Benefit Plans Non-U.S. Defined Benefit U.S. Post-Retirement Three Months Ended July 31, 2024 2023 2024 2023 2024 2023 (in millions) Service cost—benefits earned during the period $ 4 $ 4 $ 3 $ 2 $ — $ — Interest cost on benefit obligation 10 10 9 8 2 2 Expected return on plan assets (12) (13) (13) (13) (3) (3) Amortization of net actuarial loss 2 2 2 3 — — Net periodic benefit cost (benefit) $ 4 $ 3 $ 1 $ — $ (1) $ (1) Pensions U.S. Defined Benefit Plans Non-U.S. Defined Benefit U.S. Post-Retirement Nine Months Ended July 31, 2024 2023 2024 2023 2024 2023 (in millions) Service cost—benefits earned during the period $ 11 $ 12 $ 7 $ 7 $ — $ — Interest cost on benefit obligation 30 28 27 23 6 6 Expected return on plan assets (36) (37) (39) (39) (9) (9) Amortization of net actuarial loss 7 6 6 7 — 1 Net periodic benefit cost (benefit) $ 12 $ 9 $ 1 $ (2) $ (3) $ (2) We record the service cost component of net periodic benefit cost (benefit) in the same line item as other employee compensation costs. The non-service components of net periodic benefit cost (benefit), such as interest cost, expected return on assets, amortization of prior service cost, and actuarial gains or losses, are recorded within “other income (expense), net” in the condensed consolidated statement of operations. We did not contribute to our U.S. defined benefit plans or U.S. post-retirement benefit plan during the three and nine months ended July 31, 2024 and 2023. We contributed $3 million and $8 million, respectively, to our non-U.S. defined benefit plans during the three and nine months ended July 31, 2024. We contributed $2 million and $7 million, respectively, to our non-U.S. defined benefit plans during the three and nine months ended July 31, 2023. For the remainder of 2024, 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, employee retirements, market conditions, interest rates and other factors. |
SUPPLEMENTAL FINANCIAL INFORMAT
SUPPLEMENTAL FINANCIAL INFORMATION (Notes) | 9 Months Ended |
Jul. 31, 2024 | |
Disclosure Text Block [Abstract] | |
Additional Financial Information Disclosure | 12. SUPPLEMENTAL FINANCIAL INFORMATION The following tables provide details of selected balance sheet items: Cash, cash equivalents, and restricted cash July 31, 2024 October 31, 2023 (in millions) Cash and cash equivalents $ 1,632 $ 2,472 Restricted cash included in other assets 17 16 Total cash, cash equivalents, and restricted cash shown in the statement of cash flows $ 1,649 $ 2,488 Restricted cash relates primarily 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, 2024 October 31, 2023 (in millions) Finished goods $ 379 $ 376 Purchased parts and fabricated assemblies 647 609 Total inventory $ 1,026 $ 985 Leases The following table summarizes the components of our lease cost: Three Months Ended Nine Months Ended July 31, July 31, 2024 2023 2024 2023 (in millions) Operating lease cost $ 16 $ 14 $ 47 $ 40 Variable lease cost $ 5 $ 5 $ 16 $ 15 Supplemental information related to our operating leases was as follows: Nine Months Ended July 31, 2024 2023 (in millions) Cash payment for operating leases $ 42 $ 40 Right-of-use assets obtained in exchange for operating lease obligations $ 32 $ 32 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 liabilities” and “other long-term liabilities” in the condensed consolidated balance sheet, is as follows: Nine Months Ended July 31, 2024 2023 (in millions) Beginning balance $ 36 $ 32 Accruals for warranties, including change in estimates 16 23 Settlements made during the period (20) (21) Ending balance $ 32 $ 34 Accruals for warranties due within one year $ 20 $ 20 Accruals for warranties due after one year 12 14 Ending balance $ 32 $ 34 Other current assets July 31, 2024 October 31, 2023 (in millions) Prepaid assets $ 328 $ 284 Other current assets 208 168 Total other current assets $ 536 $ 452 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Jul. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 13. COMMITMENTS AND CONTINGENCIES Commitments During the nine months ended July 31, 2024, there were no material changes to the purchase commitments as reported in our Annual Report on Form 10-K for the fiscal year ended October 31, 2023. 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 (“DTCC”) 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 was suspended and designated for remediation activities over three years, including employment of a special compliance officer. The suspended portion of the penalty was satisfied by amounts spent on qualifying compliance activities. On April 23, 2024, we made the final payment on the penalty, bringing the total amount paid to $4.1 million. On May 3, 2024, we submitted a certification letter to the DTCC certifying that Keysight had implemented all aspects of the Consent Agreement and that Keysight’s compliance program is adequate to identify, prevent, detect, correct, and report violations of the ITAR. On May 22, 2024, the DTCC closed the Consent Agreement based on this certification and their conclusion that Keysight had fulfilled the terms of the Consent Agreement. On January 1, 2022, Centripetal Networks filed a lawsuit in Federal District Court in Virginia, alleging that certain 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 violated Section 337 of the Tariff Act (“Section 337”) and should be enjoined from importing certain products that are manufactured outside of the U.S. and which are alleged to infringe Centripetal patents. On December 5, 2023, the ITC issued its Notice of Determination that Keysight did not unfairly import products in violation of Section 337 and the investigation was terminated. Centripetal has appealed this determination. On August 21, 2024, Keysight was served in Germany with a complaint filed in the Unified Patent Court alleging that certain Keysight products sold in Germany, France, Italy and the Netherlands infringe a European Centripetal patent. We deny the allegations and are aggressively defending each case. Although there are no matters pending that we currently believe are probable and reasonably possible of having a material impact to our business, consolidated financial position, or results of operations or cash flows, the outcome of litigation is inherently uncertain and is difficult to predict. An adverse outcome in any outstanding lawsuit or proceeding could result in significant monetary damages or injunctive relief. If adverse results are above management’s expectations or are unforeseen, management may not have accrued for the liability, which could impact our results in future periods. 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, 2024 | |
Statement of Comprehensive Income [Abstract] | |
STOCKHOLDERS EQUITY | 14. STOCKHOLDERS' EQUITY Stock Repurchase Program On March 6, 2023, our board of directors approved a stock repurchase program authorizing the purchase of up to $1,500 million of the company’s common stock, of which $635 million remained as of July 31, 2024. 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, 2024, we repurchased 2,000,882 shares of common stock for $289 million. For the nine months ended July 31, 2023, we repurchased 1,640,236 shares of common stock for $276 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, 2024 and 2023 were as follows: Foreign currency translation Net defined benefit pension cost and post-retirement plan costs Gains (losses) on derivatives Total Actuarial losses Prior service credits (in millions) As of April 30, 2024 $ (172) $ (377) $ (6) $ 86 $ (469) Other comprehensive income (loss) before reclassifications 32 — — — 32 Amounts reclassified out of accumulated other comprehensive gain (loss) — 4 — (3) 1 Tax benefit (expense) — (1) — — (1) Other comprehensive income (loss) 32 3 — (3) 32 As of July 31, 2024 $ (140) $ (374) $ (6) $ 83 $ (437) As of October 31, 2023 $ (167) $ (382) $ (6) $ 89 $ (466) Other comprehensive income (loss) before reclassifications 27 — — 1 28 Amounts reclassified out of accumulated other comprehensive gain (loss) — 11 — (8) 3 Tax benefit (expense) — (3) — 1 (2) Other comprehensive income (loss) 27 8 — (6) 29 As of July 31, 2024 $ (140) $ (374) $ (6) $ 83 $ (437) As of April 30, 2023 $ (115) $ (365) $ (6) $ 87 $ (399) Other comprehensive income (loss) before reclassifications (9) — — 3 (6) Amounts reclassified out of accumulated other comprehensive gain (loss) — 5 — (1) 4 Tax benefit (expense) — (1) — — (1) Other comprehensive income (loss) (9) 4 — 2 (3) As of July 31, 2023 $ (124) $ (361) $ (6) $ 89 $ (402) As of October 31, 2022 $ (185) $ (373) $ (6) $ 110 $ (454) Other comprehensive income (loss) before reclassifications 61 — — (23) 38 Amounts reclassified out of accumulated other comprehensive gain (loss) — 15 — (4) 11 Tax benefit (expense) — (3) — 6 3 Other comprehensive income (loss) 61 12 — (21) 52 As of July 31, 2023 $ (124) $ (361) $ (6) $ 89 $ (402) Reclassifications out of accumulated other comprehensive loss into earnings for the three and nine months ended July 31, 2024 and 2023 were as follows: Details about accumulated other comprehensive loss components Amounts reclassified from accumulated other comprehensive loss Affected line item in statement of operations Three Months Ended Nine Months Ended July 31, July 31, 2024 2023 2024 2023 (in millions) Gain (loss) on derivatives $ 3 $ 1 $ 9 $ 5 Cost of products — — (1) (1) Selling, general and administrative — (1) (1) (1) Benefit (provision) for income tax 3 — 7 3 Net of income tax Net defined benefit pension cost and post-retirement plan costs: Net actuarial loss (4) (5) (11) (15) Other income (expense), net 1 1 3 3 Benefit (provision) for income tax (3) (4) (8) (12) Net of income tax Total reclassifications for the period $ — $ (4) $ (1) $ (9) Net of income tax |
SEGMENT INFORMATION
SEGMENT INFORMATION | 9 Months Ended |
Jul. 31, 2024 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | 15. SEGMENT INFORMATION We report our results in two reportable segments: CSG and 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, 2024 2023 CSG EISG Total CSG EISG Total (in millions) Revenue $ 847 $ 370 $ 1,217 $ 918 $ 464 $ 1,382 Segment income from operations $ 223 $ 74 $ 297 $ 276 $ 157 $ 433 Nine Months Ended July 31, 2024 2023 CSG EISG Total CSG EISG Total (in millions) Revenue $ 2,526 $ 1,166 $ 3,692 $ 2,794 $ 1,359 $ 4,153 Segment income from operations $ 672 $ 274 $ 946 $ 811 $ 454 $ 1,265 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, 2024 2023 2024 2023 (in millions) Total reportable operating segments' income from operations $ 297 $ 433 $ 946 $ 1,265 Share-based compensation (32) (27) (118) (111) Amortization of acquisition-related balances (31) (23) (106) (71) Acquisition and integration costs (23) (6) (59) (11) Restructuring and others (6) (12) (60) (31) Income from operations, as reported 205 365 603 1,041 Interest income 19 29 60 70 Interest expense (21) (19) (61) (58) Other income (expense), net 10 14 15 28 Income before taxes, as reported $ 213 $ 389 $ 617 $ 1,081 The following table presents segment assets directly managed by each segment: July 31, 2024 October 31, 2023 CSG EISG Total CSG EISG Total (in millions) Segment assets $ 4,686 $ 2,966 $ 7,652 $ 4,410 $ 1,920 $ 6,330 The increase in segment assets for the nine months ended July 31, 2024 primarily represents assets acquired as part of the ESI Group acquisition. See Note 2, “Acquisitions,” for additional information. The following table reconciles segment assets to our total assets: July 31, 2024 October 31, 2023 (in millions) Total reportable segments' assets $ 7,652 $ 6,330 Cash and cash equivalents 1,632 2,472 Long-term investments 107 81 Long-term deferred tax assets 678 671 Accumulated amortization of other intangibles (1,445) (1,339) Long-term tax receivables 169 — Pension and other assets 530 468 Total assets $ 9,323 $ 8,683 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2024 | Jul. 31, 2023 | Jul. 31, 2024 | Jul. 31, 2023 | |
Pay vs Performance Disclosure | ||||
Net income | $ 389 | $ 288 | $ 687 | $ 831 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jul. 31, 2024 shares | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Satish Dhanasekaran [Member] | |
Trading Arrangements, by Individual | |
Name | Satish Dhanasekaran |
Title | President and Chief Executive Officer |
Rule 10b5-1 Arrangement Adopted | true |
Non-Rule 10b5-1 Arrangement Adopted | false |
Adoption Date | June 4, 2024 |
Expiration Date | June 2, 2025 |
Aggregate Available | 43,433 |
Soon Chai Gooi [Member] | |
Trading Arrangements, by Individual | |
Name | Soon Chai Gooi |
Title | Senior Vice President, Order Fulfillment and Digital Operations |
Rule 10b5-1 Arrangement Adopted | true |
Non-Rule 10b5-1 Arrangement Adopted | false |
Adoption Date | May 30, 2024 |
Expiration Date | December 6, 2024 |
Aggregate Available | 10,589 |
Jeffrey K Li [Member] | |
Trading Arrangements, by Individual | |
Name | Jeffrey K Li |
Title | Senior Vice President, General Counsel, and Secretary |
Rule 10b5-1 Arrangement Adopted | true |
Non-Rule 10b5-1 Arrangement Adopted | false |
Adoption Date | June 4, 2024 |
Expiration Date | December 6, 2024 |
Aggregate Available | 10,802 |
John Page [Member] | |
Trading Arrangements, by Individual | |
Name | John Page |
Title | Senior Vice President and President of Global Services |
Rule 10b5-1 Arrangement Adopted | true |
Non-Rule 10b5-1 Arrangement Adopted | false |
Adoption Date | June 28, 2024 |
Expiration Date | June 27, 2025 |
Aggregate Available | 20,327 |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 9 Months Ended |
Jul. 31, 2024 | |
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the preliminary allocation of the purchase price to the estimated fair values of the assets acquired and liabilities assumed on the closing date: November 3, 2023 (in millions) Cash and cash equivalents $ 35 Short-term investments 12 Accounts receivable 28 Other current assets 18 Property, plant and equipment 4 Operating lease right-of-use assets 8 Goodwill 603 Other intangible assets 494 Other assets 3 Total assets acquired 1,205 Accounts payable (8) Employee compensation and benefits (23) Deferred revenue (14) Income and other taxes payable (11) Operating lease liabilities (3) Other accrued liabilities (18) Debt (24) Retirement and post-retirement benefits (7) Long-term operating lease liabilities (5) Other long-term liabilities (115) Net assets acquired $ 977 |
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination | The components of intangible assets acquired in connection with the ESI Group acquisition were as follows: Estimated Fair Value Estimated useful life (in millions) (in years) Developed technology $ 270 6 Customer relationships 160 6 Backlog 15 3 Trademarks/Tradename 2 2 Total amortizable intangible assets 447 In-process research and development 47 Total intangible assets $ 494 |
Business Acquisition, Pro Forma Information | The following represents pro forma operating results as if ESI Group had been included in the company's condensed consolidated statements of operations as of the beginning of fiscal 2023: Three Months Ended Nine Months Ended July 31, July 31, 2024 2023 2024 2023 (in millions, except per-share amounts) Net revenue $ 1,217 $ 1,409 $ 3,692 $ 4,276 Net income $ 398 $ 260 $ 717 $ 785 Net income per share - Basic $ 2.28 $ 1.46 $ 4.11 $ 4.41 Net income per share - Diluted $ 2.27 $ 1.45 $ 4.09 $ 4.38 |
REVENUE (Tables)
REVENUE (Tables) | 9 Months Ended |
Jul. 31, 2024 | |
Revenue from Contract with Customer [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, CSG and EISG. Three Months Ended July 31, 2024 2023 CSG EISG Total CSG EISG Total (in millions) Region Americas $ 402 $ 98 $ 500 $ 446 $ 110 $ 556 Europe 125 96 221 139 104 243 Asia Pacific 320 176 496 333 250 583 Total revenue $ 847 $ 370 $ 1,217 $ 918 $ 464 $ 1,382 End Market Aerospace, Defense & Government $ 275 $ — $ 275 $ 307 $ — $ 307 Commercial Communications 572 — 572 611 — 611 Electronic Industrial — 370 370 — 464 464 Total revenue $ 847 $ 370 $ 1,217 $ 918 $ 464 $ 1,382 Timing of Revenue Recognition Revenue recognized at a point in time $ 660 $ 298 $ 958 $ 749 $ 395 $ 1,144 Revenue recognized over time 187 72 259 169 69 238 Total revenue $ 847 $ 370 $ 1,217 $ 918 $ 464 $ 1,382 Nine Months Ended July 31, 2024 2023 CSG EISG Total CSG EISG Total (in millions) Region Americas $ 1,216 $ 290 $ 1,506 $ 1,322 $ 312 $ 1,634 Europe 384 320 704 414 315 729 Asia Pacific 926 556 1,482 1,058 732 1,790 Total revenue $ 2,526 $ 1,166 $ 3,692 $ 2,794 $ 1,359 $ 4,153 End Market Aerospace, Defense & Government $ 847 $ — $ 847 $ 927 $ — $ 927 Commercial Communications 1,679 — 1,679 1,867 — 1,867 Electronic Industrial — 1,166 1,166 — 1,359 1,359 Total revenue $ 2,526 $ 1,166 $ 3,692 $ 2,794 $ 1,359 $ 4,153 Timing of Revenue Recognition Revenue recognized at a point in time $ 1,972 $ 951 $ 2,923 $ 2,301 $ 1,165 $ 3,466 Revenue recognized over time 554 215 769 493 194 687 Total revenue $ 2,526 $ 1,166 $ 3,692 $ 2,794 $ 1,359 $ 4,153 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 represent revenue recognized upfront 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 upon 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, 2024 (in millions) Balance at October 31, 2023 $ 757 Deferral of revenue billed in current period, net of recognition 440 Deferred revenue arising out of acquisitions 19 Revenue recognized that was deferred as of the beginning of the period (475) Foreign currency translation impact 3 Balance at July 31, 2024 $ 744 Of the $475 million of revenue recognized in the nine months ended July 31, 2024 that was deferred as of the beginning of the period, approximately $105 million was recognized in the three months ended July 31, 2024. |
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 $570 million as of July 31, 2024, and represents the company’s obligation to deliver products and services and obtain customer acceptance on delivered products. As of July 31, 2024, we expect to fulfill 16 percent of these remaining performance obligations during the remainder of 2024, 51 percent during 2025, and 33 percent thereafter. |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 9 Months Ended |
Jul. 31, 2024 | |
Share-Based Payment Arrangement, Noncash Expense [Abstract] | |
Allocated Share-based compensation expense disclosure | Three Months Ended Nine Months Ended July 31, July 31, 2024 2023 2024 2023 (in millions) Cost of products and services $ 7 $ 4 $ 22 $ 20 Research and development 8 8 30 31 Selling, general and administrative 17 15 66 60 Total share-based compensation expense $ 32 $ 27 $ 118 $ 111 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Jul. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | The following table provides income tax details: Three Months Ended Nine Months Ended July 31, July 31, 2024 2023 2024 2023 (in millions, except percentages) Income before taxes $ 213 $ 389 $ 617 $ 1,081 Provision (benefit) for income taxes $ (176) $ 101 $ (70) $ 250 Effective tax rate (81.9) % 25.8 % (11.2) % 23.1 % |
NET INCOME PER SHARE (Tables)
NET INCOME PER SHARE (Tables) | 9 Months Ended |
Jul. 31, 2024 | |
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, 2024 2023 2024 2023 (in millions, except per-share amounts) Net income $ 389 $ 288 $ 687 $ 831 Basic weighted-average shares 174 178 174 178 Potential common shares 1 1 1 1 Diluted weighted-average shares 175 179 175 179 Net income per share - basic $ 2.23 $ 1.62 $ 3.94 $ 4.66 Net income per share - diluted $ 2.22 $ 1.61 $ 3.92 $ 4.63 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Jul. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill balances and movements for each reportable segments during the period | The goodwill balance as of July 31, 2024 and October 31, 2023 and the activity for the nine months ended July 31, 2024 for each of our reportable operating segments were as follows: CSG EISG Total (in millions) Goodwill at October 31, 2023 $ 1,057 $ 583 $ 1,640 Foreign currency translation impact 3 5 8 Goodwill arising from acquisitions 185 558 743 Goodwill at July 31, 2024 $ 1,245 $ 1,146 $ 2,391 There were no impairments for the three and nine months ended July 31, 2024 and 2023. As of July 31, 2024 and October 31, 2023, accumulated impairment losses on goodwill was $709 million. |
Components of other intangibles during the period | Other intangible assets as of July 31, 2024 and October 31, 2023 consisted of the following: July 31, 2024 October 31, 2023 Gross Accumulated Net Book Gross Accumulated Net Book (in millions) Developed technology $ 1,367 $ 1,000 $ 367 $ 1,033 $ 949 $ 84 Backlog 37 23 14 19 17 2 Trademark/Tradename 38 35 3 36 33 3 Customer relationships 587 387 200 406 340 66 Total amortizable intangible assets $ 2,029 $ 1,445 $ 584 $ 1,494 $ 1,339 $ 155 In-Process R&D 53 — 53 — — — Total $ 2,082 $ 1,445 $ 637 $ 1,494 $ 1,339 $ 155 |
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) 2024 (remainder) $ 32 2025 $ 124 2026 $ 111 2027 $ 99 2028 $ 96 2029 $ 88 Thereafter $ 34 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Jul. 31, 2024 | |
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, 2024 and October 31, 2023 were as follows: Fair Value Measurements at July 31, 2024 October 31, 2023 Total Level 1 Level 2 Level 3 Other Total Level 1 Level 2 Level 3 Other (in millions) Assets: Short-term Money market funds $ 989 $ 989 $ — $ — $ — $ 1,934 $ 1,934 $ — $ — $ — Derivative instruments (foreign exchange contracts) 14 — 14 — — 18 — 18 — — Long-term Equity investments 78 78 — — — 56 56 — — — Other investments 29 — — — 29 25 — — — 25 Total assets measured at fair value $ 1,110 $ 1,067 $ 14 $ — $ 29 $ 2,033 $ 1,990 $ 18 $ — $ 25 Liabilities: Short-term Derivative instruments (foreign exchange contracts) $ 8 $ — $ 8 $ — $ — $ 54 $ — $ 54 $ — $ — Long-term Deferred compensation liability 33 — 33 — — 27 — 27 — — Total liabilities measured at fair value $ 41 $ — $ 41 $ — $ — $ 81 $ — $ 81 $ — $ — |
Debt Securities, Trading, and Equity Securities, FV-NI | Net recognized gain (loss) on sale of our equity and other investments were as follows: Three Months Ended Nine Months Ended July 31, July 31, 2024 2023 2024 2023 (in millions) Net realized gain (loss) on equity and other investments sold $ — $ — $ — $ — Net unrealized gain (loss) on equity and other investments still held $ 3 $ 13 $ 13 $ 20 |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 9 Months Ended |
Jul. 31, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Aggregated notional amounts by currency and designation | The net notional amounts by currency and designation as of July 31, 2024 were as follows: Derivatives in Cash Flow Hedging Relationships Derivatives Not Designated as Hedging Instruments Forward Forward Currency Buy/(Sell) Buy/(Sell) (in millions) Euro $ 21 $ 44 Pound Sterling 9 1,541 Singapore Dollar 35 4 Malaysian Ringgit 104 11 Japanese Yen (103) (66) Other currencies (34) (31) Total $ 32 $ 1,503 |
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, 2024 and October 31, 2023 were as follows: Fair Values of Derivative Instruments Assets Derivatives Liabilities Derivatives Fair Value Fair Value Balance Sheet Location July 31, 2024 October 31, 2023 Balance Sheet Location July 31, 2024 October 31, 2023 (in millions) Derivatives designated as hedging instruments: Cash flow hedges Foreign exchange contracts Other current assets $ 4 $ 16 Other accrued liabilities $ 3 $ 7 Derivatives not designated as hedging instruments: Foreign exchange contracts Other current assets 10 2 Other accrued liabilities 5 47 Total derivatives $ 14 $ 18 $ 8 $ 54 |
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 the condensed consolidated statement of operations was as follows: Three Months Ended Nine Months Ended July 31, July 31, 2024 2023 2024 2023 (in millions) Derivatives designated as hedging instruments: Cash Flow Hedges Interest rate swap contracts: Gain (loss) recognized in accumulated other comprehensive income (loss) $ — $ — $ — $ (26) 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 $ 3 $ 1 $ 9 $ 5 Selling, general and administrative $ — $ — $ (1) $ (1) Gain (loss) excluded from effectiveness testing recognized in earnings based on amortization approach: Cost of products $ — $ 2 $ 3 $ 4 Selling, general and administrative $ (1) $ — $ (1) $ — Derivatives not designated as hedging instruments: Gain (loss) recognized in: Other income (expense), net $ 8 $ (2) $ (12) $ (2) |
DEBT (Tables)
DEBT (Tables) | 9 Months Ended |
Jul. 31, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | The following table summarizes the components of our debt: July 31, 2024 October 31, 2023 (in millions) 2024 Senior Notes at 4.55% ($600 face amount less unamortized costs of zero and $1) $ 600 $ 599 2027 Senior Notes at 4.60% ($700 face amount less unamortized costs of $2 and $2) 698 698 2029 Senior Notes at 3.00% ($500 face amount less unamortized costs of $2 and $3) 498 497 Total debt 1,796 1,794 Less: Current portion of long-term debt 600 599 Long-Term Debt $ 1,196 $ 1,195 |
RETIREMENT PLANS AND POST RET_2
RETIREMENT PLANS AND POST RETIREMENT PENSION PLANS (Tables) | 9 Months Ended |
Jul. 31, 2024 | |
Retirement Benefits [Abstract] | |
Schedule of net pension and post-retirement benefit costs | For the three and nine months ended July 31, 2024 and 2023, our net pension and post-retirement benefit cost (benefit) consisted of the following: Pensions U.S. Defined Benefit Plans Non-U.S. Defined Benefit U.S. Post-Retirement Three Months Ended July 31, 2024 2023 2024 2023 2024 2023 (in millions) Service cost—benefits earned during the period $ 4 $ 4 $ 3 $ 2 $ — $ — Interest cost on benefit obligation 10 10 9 8 2 2 Expected return on plan assets (12) (13) (13) (13) (3) (3) Amortization of net actuarial loss 2 2 2 3 — — Net periodic benefit cost (benefit) $ 4 $ 3 $ 1 $ — $ (1) $ (1) Pensions U.S. Defined Benefit Plans Non-U.S. Defined Benefit U.S. Post-Retirement Nine Months Ended July 31, 2024 2023 2024 2023 2024 2023 (in millions) Service cost—benefits earned during the period $ 11 $ 12 $ 7 $ 7 $ — $ — Interest cost on benefit obligation 30 28 27 23 6 6 Expected return on plan assets (36) (37) (39) (39) (9) (9) Amortization of net actuarial loss 7 6 6 7 — 1 Net periodic benefit cost (benefit) $ 12 $ 9 $ 1 $ (2) $ (3) $ (2) |
SUPPLEMENTAL FINANCIAL INFORM_2
SUPPLEMENTAL FINANCIAL INFORMATION (Tables) | 9 Months Ended |
Jul. 31, 2024 | |
Disclosure Text Block [Abstract] | |
Cash, cash equivalents and restricted cash [Table Text Block] | Cash, cash equivalents, and restricted cash July 31, 2024 October 31, 2023 (in millions) Cash and cash equivalents $ 1,632 $ 2,472 Restricted cash included in other assets 17 16 Total cash, cash equivalents, and restricted cash shown in the statement of cash flows $ 1,649 $ 2,488 |
Schedule of Inventory, Current [Table Text Block] | Inventory July 31, 2024 October 31, 2023 (in millions) Finished goods $ 379 $ 376 Purchased parts and fabricated assemblies 647 609 Total inventory $ 1,026 $ 985 |
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, 2024 2023 2024 2023 (in millions) Operating lease cost $ 16 $ 14 $ 47 $ 40 Variable lease cost $ 5 $ 5 $ 16 $ 15 Supplemental information related to our operating leases was as follows: Nine Months Ended July 31, 2024 2023 (in millions) Cash payment for operating leases $ 42 $ 40 Right-of-use assets obtained in exchange for operating lease obligations $ 32 $ 32 |
Schedule of Product Warranty Liability [Table Text Block] | 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 liabilities” and “other long-term liabilities” in the condensed consolidated balance sheet, is as follows: Nine Months Ended July 31, 2024 2023 (in millions) Beginning balance $ 36 $ 32 Accruals for warranties, including change in estimates 16 23 Settlements made during the period (20) (21) Ending balance $ 32 $ 34 Accruals for warranties due within one year $ 20 $ 20 Accruals for warranties due after one year 12 14 Ending balance $ 32 $ 34 |
Schedule of Other Current Assets | Other current assets July 31, 2024 October 31, 2023 (in millions) Prepaid assets $ 328 $ 284 Other current assets 208 168 Total other current assets $ 536 $ 452 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 9 Months Ended |
Jul. 31, 2024 | |
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, 2024 and 2023 were as follows: Foreign currency translation Net defined benefit pension cost and post-retirement plan costs Gains (losses) on derivatives Total Actuarial losses Prior service credits (in millions) As of April 30, 2024 $ (172) $ (377) $ (6) $ 86 $ (469) Other comprehensive income (loss) before reclassifications 32 — — — 32 Amounts reclassified out of accumulated other comprehensive gain (loss) — 4 — (3) 1 Tax benefit (expense) — (1) — — (1) Other comprehensive income (loss) 32 3 — (3) 32 As of July 31, 2024 $ (140) $ (374) $ (6) $ 83 $ (437) As of October 31, 2023 $ (167) $ (382) $ (6) $ 89 $ (466) Other comprehensive income (loss) before reclassifications 27 — — 1 28 Amounts reclassified out of accumulated other comprehensive gain (loss) — 11 — (8) 3 Tax benefit (expense) — (3) — 1 (2) Other comprehensive income (loss) 27 8 — (6) 29 As of July 31, 2024 $ (140) $ (374) $ (6) $ 83 $ (437) As of April 30, 2023 $ (115) $ (365) $ (6) $ 87 $ (399) Other comprehensive income (loss) before reclassifications (9) — — 3 (6) Amounts reclassified out of accumulated other comprehensive gain (loss) — 5 — (1) 4 Tax benefit (expense) — (1) — — (1) Other comprehensive income (loss) (9) 4 — 2 (3) As of July 31, 2023 $ (124) $ (361) $ (6) $ 89 $ (402) As of October 31, 2022 $ (185) $ (373) $ (6) $ 110 $ (454) Other comprehensive income (loss) before reclassifications 61 — — (23) 38 Amounts reclassified out of accumulated other comprehensive gain (loss) — 15 — (4) 11 Tax benefit (expense) — (3) — 6 3 Other comprehensive income (loss) 61 12 — (21) 52 As of July 31, 2023 $ (124) $ (361) $ (6) $ 89 $ (402) |
Reclassification out of Accumulated Other Comprehensive Income | Reclassifications out of accumulated other comprehensive loss into earnings for the three and nine months ended July 31, 2024 and 2023 were as follows: Details about accumulated other comprehensive loss components Amounts reclassified from accumulated other comprehensive loss Affected line item in statement of operations Three Months Ended Nine Months Ended July 31, July 31, 2024 2023 2024 2023 (in millions) Gain (loss) on derivatives $ 3 $ 1 $ 9 $ 5 Cost of products — — (1) (1) Selling, general and administrative — (1) (1) (1) Benefit (provision) for income tax 3 — 7 3 Net of income tax Net defined benefit pension cost and post-retirement plan costs: Net actuarial loss (4) (5) (11) (15) Other income (expense), net 1 1 3 3 Benefit (provision) for income tax (3) (4) (8) (12) Net of income tax Total reclassifications for the period $ — $ (4) $ (1) $ (9) Net of income tax |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 9 Months Ended |
Jul. 31, 2024 | |
Segment Reporting Information [Line Items] | |
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | Three Months Ended July 31, 2024 2023 CSG EISG Total CSG EISG Total (in millions) Revenue $ 847 $ 370 $ 1,217 $ 918 $ 464 $ 1,382 Segment income from operations $ 223 $ 74 $ 297 $ 276 $ 157 $ 433 Nine Months Ended July 31, 2024 2023 CSG EISG Total CSG EISG Total (in millions) Revenue $ 2,526 $ 1,166 $ 3,692 $ 2,794 $ 1,359 $ 4,153 Segment income from operations $ 672 $ 274 $ 946 $ 811 $ 454 $ 1,265 |
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, 2024 2023 2024 2023 (in millions) Total reportable operating segments' income from operations $ 297 $ 433 $ 946 $ 1,265 Share-based compensation (32) (27) (118) (111) Amortization of acquisition-related balances (31) (23) (106) (71) Acquisition and integration costs (23) (6) (59) (11) Restructuring and others (6) (12) (60) (31) Income from operations, as reported 205 365 603 1,041 Interest income 19 29 60 70 Interest expense (21) (19) (61) (58) Other income (expense), net 10 14 15 28 Income before taxes, as reported $ 213 $ 389 $ 617 $ 1,081 |
Assets And Capital Expenditures Directly Managed By Each Segment | The following table presents segment assets directly managed by each segment: July 31, 2024 October 31, 2023 CSG EISG Total CSG EISG Total (in millions) Segment assets $ 4,686 $ 2,966 $ 7,652 $ 4,410 $ 1,920 $ 6,330 The increase in segment assets for the nine months ended July 31, 2024 primarily represents assets acquired as part of the ESI Group acquisition. See Note 2, “Acquisitions,” for additional information. The following table reconciles segment assets to our total assets: July 31, 2024 October 31, 2023 (in millions) Total reportable segments' assets $ 7,652 $ 6,330 Cash and cash equivalents 1,632 2,472 Long-term investments 107 81 Long-term deferred tax assets 678 671 Accumulated amortization of other intangibles (1,445) (1,339) Long-term tax receivables 169 — Pension and other assets 530 468 Total assets $ 9,323 $ 8,683 |
OVERVIEW, BASIS OF PRESENTATI_2
OVERVIEW, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Millions | 9 Months Ended |
Jul. 31, 2024 USD ($) | |
ESI Group SA | Other Nonoperating Income (Expense) | |
Reclassification [Line Items] | |
Net Income (Loss) Attributable to Noncontrolling Interest | $ 4 |
ACQUISITIONS OF ESI (Narrative)
ACQUISITIONS OF ESI (Narrative) (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Nov. 03, 2023 USD ($) | Jul. 31, 2024 USD ($) | Jan. 31, 2024 USD ($) | Jul. 31, 2023 USD ($) | Jul. 31, 2024 USD ($) | Jul. 31, 2024 USD ($) | Jul. 31, 2023 USD ($) | Nov. 03, 2023 € / shares | |
Business Acquisition [Line Items] | ||||||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 673 | $ 85 | ||||||
Acquisition of non-controlling interests | 458 | 0 | ||||||
Share-based Compensation Expense | $ 32 | $ 27 | $ 118 | $ 111 | ||||
ESI Group SA | ||||||||
Business Acquisition [Line Items] | ||||||||
Business Acquisition, Effective Date of Acquisition | Nov. 03, 2023 | |||||||
Business Acquisition, Percentage of Voting Interests Acquired | 50.60% | |||||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 477 | |||||||
Acquisition of non-controlling interests | $ 458 | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | $ 7 | |||||||
Business Acquisition, Share Price | € / shares | € 155 | |||||||
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual | 25 | $ 119 | ||||||
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual | 27 | 47 | ||||||
Discount rate used to value In Process R&D | 12% | |||||||
Payments to Acquire in Process Research and Development | $ 7 | |||||||
Business Combination, Integration Related Costs | 9 | $ 30 | ||||||
Share-based Compensation Expense | 3 | 9 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities | 98 | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Other | 115 | 5 | 5 | 5 | ||||
Income and other taxes payable | $ (11) | $ 3 | $ 3 | $ 3 |
ACQUISITIONS (Allocation of Pur
ACQUISITIONS (Allocation of Purchase Price) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Nov. 03, 2023 | Apr. 30, 2024 | Jul. 31, 2024 | |
Asset Acquisition [Line Items] | |||
Goodwill | $ 743 | ||
ESI Group SA | |||
Asset Acquisition [Line Items] | |||
Cash and cash equivalents | $ 35 | ||
Short-term investments | 12 | ||
Accounts receivable | 28 | ||
Other current assets | 18 | ||
Property, plant and equipment | 4 | ||
Operating lease right-of-use assets | 8 | ||
Goodwill | 603 | ||
Other intangible assets | 494 | ||
Other assets | 3 | ||
Total assets acquired | 1,205 | ||
Accounts payable | (8) | ||
Employee compensation and benefits | (23) | ||
Deferred revenue | (14) | ||
Income and other taxes payable | (11) | 3 | |
Operating lease liabilities | (3) | ||
Other accrued liabilities | (18) | ||
Debt | (24) | ||
Retirement and post-retirement benefits | (7) | ||
Long-term operating lease liabilities | (5) | ||
Other long-term liabilities | (115) | $ (5) | |
Net assets acquired | $ 977 | ||
Goodwill, Measurement Period Adjustment | $ 8 |
ACQUISITIONS (Intangible Assets
ACQUISITIONS (Intangible Assets Acquired) (Details) - USD ($) $ in Millions | Nov. 03, 2023 | Jul. 31, 2024 | Oct. 31, 2023 |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amortizable intangible assets, Gross carrying amount | $ 2,029 | $ 1,494 | |
Total intangible assets | 2,082 | 1,494 | |
ESI Group SA | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amortizable intangible assets, Gross carrying amount | $ 447 | ||
Total intangible assets | 494 | ||
In Process Research and Development | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
In-process research and development | 53 | 0 | |
In Process Research and Development | ESI Group SA | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
In-process research and development | 47 | ||
Developed technology | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amortizable intangible assets, Gross carrying amount | 1,367 | 1,033 | |
Developed technology | ESI Group SA | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amortizable intangible assets, Gross carrying amount | $ 270 | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 6 years | ||
Customer relationships | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amortizable intangible assets, Gross carrying amount | 587 | 406 | |
Customer relationships | ESI Group SA | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amortizable intangible assets, Gross carrying amount | $ 160 | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 6 years | ||
Backlog | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amortizable intangible assets, Gross carrying amount | $ 37 | $ 19 | |
Backlog | ESI Group SA | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amortizable intangible assets, Gross carrying amount | $ 15 | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 3 years | ||
Trademarks and Trade Names | ESI Group SA | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amortizable intangible assets, Gross carrying amount | $ 2 | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 2 years |
ACQUISITIONS (Pro Forma Informa
ACQUISITIONS (Pro Forma Information) (Details) - ESI Group SA - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2024 | Jul. 31, 2023 | Jul. 31, 2024 | Jul. 31, 2023 | |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||
Net revenue | $ 1,217 | $ 1,409 | $ 3,692 | $ 4,276 |
Net income | $ 398 | $ 260 | $ 717 | $ 785 |
Net income per share - Basic | $ 2.28 | $ 1.46 | $ 4.11 | $ 4.41 |
Net income per share - Diluted | $ 2.27 | $ 1.45 | $ 4.09 | $ 4.38 |
ACQUISITION OF RISCURE (Details
ACQUISITION OF RISCURE (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Feb. 21, 2024 | Jul. 31, 2024 | Jul. 31, 2023 | |
Business Acquisition [Line Items] | |||
Payments to Acquire Businesses, Net of Cash Acquired | $ 673 | $ 85 | |
Goodwill | $ 743 | ||
Riscure [Member] | |||
Business Acquisition [Line Items] | |||
Business Acquisition, Effective Date of Acquisition | Feb. 21, 2024 | ||
Payments to Acquire Businesses, Net of Cash Acquired | $ 78 | ||
Goodwill | 52 | ||
Other intangible assets | $ 35 |
ACQUISITIONS OF ANAPICO (Detail
ACQUISITIONS OF ANAPICO (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Jun. 12, 2024 | Jul. 31, 2024 | Jul. 31, 2023 | |
Business Acquisition [Line Items] | |||
Payments to Acquire Businesses, Net of Cash Acquired | $ 673 | $ 85 | |
Goodwill | $ 743 | ||
AnaPico AG [Member] | |||
Business Acquisition [Line Items] | |||
Business Acquisition, Effective Date of Acquisition | Jun. 12, 2024 | ||
Payments to Acquire Businesses, Net of Cash Acquired | $ 117 | ||
Goodwill | 65 | ||
Other intangible assets | $ 53 |
REVENUE (Details)
REVENUE (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2024 | Jul. 31, 2023 | Jul. 31, 2024 | Jul. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Including Assessed Tax | $ 1,217 | $ 1,382 | $ 3,692 | $ 4,153 |
Communications Solutions Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Including Assessed Tax | 847 | 918 | 2,526 | 2,794 |
Electronic Industrial Solutions Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Including Assessed Tax | 370 | 464 | 1,166 | 1,359 |
Revenue recognized at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Including Assessed Tax | 958 | 1,144 | 2,923 | 3,466 |
Revenue recognized at a point in time | Communications Solutions Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Including Assessed Tax | 660 | 749 | 1,972 | 2,301 |
Revenue recognized at a point in time | Electronic Industrial Solutions Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Including Assessed Tax | 298 | 395 | 951 | 1,165 |
Revenue recognized over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Including Assessed Tax | 259 | 238 | 769 | 687 |
Revenue recognized over time | Communications Solutions Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Including Assessed Tax | 187 | 169 | 554 | 493 |
Revenue recognized over time | Electronic Industrial Solutions Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Including Assessed Tax | 72 | 69 | 215 | 194 |
Aerospace, Defense & Government | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Including Assessed Tax | 275 | 307 | 847 | 927 |
Aerospace, Defense & Government | Communications Solutions Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Including Assessed Tax | 275 | 307 | 847 | 927 |
Aerospace, Defense & Government | Electronic Industrial Solutions Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Including Assessed Tax | 0 | 0 | 0 | 0 |
Commercial Communications | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Including Assessed Tax | 572 | 611 | 1,679 | 1,867 |
Commercial Communications | Communications Solutions Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Including Assessed Tax | 572 | 611 | 1,679 | 1,867 |
Commercial Communications | Electronic Industrial Solutions Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Including Assessed Tax | 0 | 0 | 0 | 0 |
Electronic Industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Including Assessed Tax | 370 | 464 | 1,166 | 1,359 |
Electronic Industrial | Communications Solutions Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Including Assessed Tax | 0 | 0 | 0 | 0 |
Electronic Industrial | Electronic Industrial Solutions Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Including Assessed Tax | 370 | 464 | 1,166 | 1,359 |
Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Including Assessed Tax | 500 | 556 | 1,506 | 1,634 |
Americas | Communications Solutions Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Including Assessed Tax | 402 | 446 | 1,216 | 1,322 |
Americas | Electronic Industrial Solutions Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Including Assessed Tax | 98 | 110 | 290 | 312 |
Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Including Assessed Tax | 221 | 243 | 704 | 729 |
Europe | Communications Solutions Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Including Assessed Tax | 125 | 139 | 384 | 414 |
Europe | Electronic Industrial Solutions Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Including Assessed Tax | 96 | 104 | 320 | 315 |
Asia Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Including Assessed Tax | 496 | 583 | 1,482 | 1,790 |
Asia Pacific | Communications Solutions Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Including Assessed Tax | 320 | 333 | 926 | 1,058 |
Asia Pacific | Electronic Industrial Solutions Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Including Assessed Tax | $ 176 | $ 250 | $ 556 | $ 732 |
REVENUE Contract Assets (Detail
REVENUE Contract Assets (Details) - USD ($) $ in Millions | Jul. 31, 2024 | Oct. 31, 2023 |
Accounts Receivable [Member] | ||
Contract with Customer, Asset, after Allowance for Credit Loss, Current | $ 91 | $ 58 |
Other Noncurrent Assets [Member] | ||
Contract with Customer, Asset, after Allowance for Credit Loss, Current | $ 91 | $ 58 |
REVENUE Capitalized Contractual
REVENUE Capitalized Contractual Cost (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jul. 31, 2024 | Jul. 31, 2023 | Jul. 31, 2024 | Jul. 31, 2023 | Oct. 31, 2023 | |
Capitalized Contract Cost [Line Items] | |||||
Capitalized Contract Cost, Amortization | $ 13 | $ 13 | $ 43 | $ 50 | |
Other Assets [Member] | |||||
Capitalized Contract Cost [Line Items] | |||||
Capitalized Contract Cost, Net | $ 37 | $ 37 | $ 43 |
REVENUE CONTRACT LIABILITIES RO
REVENUE CONTRACT LIABILITIES ROLL FORWARD (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Jul. 31, 2024 | Jul. 31, 2024 | |
Balance at October 31, 2023 | $ 757 | |
Deferral of revenue billed in current period, net of recognition | 440 | |
Deferred revenue arising out of acquisitions | 19 | |
Revenue recognized that was deferred as of the beginning of the period | $ (105) | (475) |
Foreign currency translation impact | 3 | |
Balance at July 31, 2024 | $ 744 | $ 744 |
REVENUE Remaining performance o
REVENUE Remaining performance obligations (Details) $ in Millions | Jul. 31, 2024 USD ($) |
Revenue from Contract with Customer [Abstract] | |
Revenue, Remaining Performance Obligation, Amount | $ 570 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 570 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-08-01 | |
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 | 2024 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-11-01 | |
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 | 51% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Year | 2025 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-11-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | |
Revenue, Remaining Performance Obligation, Percentage | 33% |
SHARE-BASED COMPENSATION (Alloc
SHARE-BASED COMPENSATION (Allocation of period costs) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2024 | Jul. 31, 2023 | Jul. 31, 2024 | Jul. 31, 2023 | |
Share-based Compensation Expense, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based Compensation Expense | $ 32 | $ 27 | $ 118 | $ 111 |
ESI Group SA | ||||
Share-based Compensation Expense, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based Compensation Expense | 3 | 9 | ||
Cost of products and services | ||||
Share-based Compensation Expense, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based Compensation Expense | 7 | 4 | 22 | 20 |
Research and development | ||||
Share-based Compensation Expense, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based Compensation Expense | 8 | 8 | 30 | 31 |
Selling, general and administrative | ||||
Share-based Compensation Expense, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based Compensation Expense | $ 17 | $ 15 | $ 66 | $ 60 |
SHARE-BASED COMPENSATION SHARE-
SHARE-BASED COMPENSATION SHARE-BASED COMPENSATION (Textuals) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Jul. 31, 2024 | Jul. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | ||
Share-based Compensation, Capitalized within inventory | $ 2 | $ 2 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2024 | Jul. 31, 2023 | Jul. 31, 2024 | Jul. 31, 2023 | |
Income Tax Disclosure [Abstract] | ||||
Income before taxes | $ 213 | $ 389 | $ 617 | $ 1,081 |
Provision (benefit) for income taxes | $ (176) | $ 101 | $ (70) | $ 250 |
Effective Income Tax Rate, Percent | (81.90%) | 25.80% | (11.20%) | 23.10% |
Net Discrete Expense (Benefit) | $ (179) | $ 19 | $ 178 | $ 21 |
Discrete tax benefit (expense) [Line Items] | 165 | 165 | ||
Discrete tax expense [Line Items] | $ 35 | 35 | ||
Decrease in income tax provision due to tax incentives, Aggregate Dollar Amount | $ 35 | $ 73 |
INCOME TAXES INCOME TAXES (Tax
INCOME TAXES INCOME TAXES (Tax incentives) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Jul. 31, 2024 | Jul. 31, 2023 | |
Income Tax Disclosure [Abstract] | ||
Tax incentives, Description | Keysight benefits from tax incentives in several jurisdictions, most significantly in Singapore and Malaysia. The tax incentives provide lower rates of taxation on certain classes of income and require thresholds of investments and employment in those jurisdictions. The Malaysia tax incentive expires October 31, 2025. The Singapore tax incentive expired July 31, 2024. The expiration of the Singapore tax incentive in the current year has been reflected in the annual tax forecast. The impact of the tax incentives decreased the income tax provision | |
Decrease in income tax provision due to tax incentives, Aggregate Dollar Amount | $ 35 | $ 73 |
INCOME TAXES INCOME TAXES (Inco
INCOME TAXES INCOME TAXES (Income tax examination) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Jul. 31, 2024 | Jul. 31, 2024 | |
Malaysia Tax Authority [Member] | ||
Income Tax Examination [Line Items] | ||
Tax Adjustments, Settlements, and Unusual Provisions | $ 61 | $ 61 |
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, 2024 | Jul. 31, 2023 | Jul. 31, 2024 | Jul. 31, 2023 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 389 | $ 288 | $ 687 | $ 831 |
Basic weighted-average shares | 174 | 178 | 174 | 178 |
Potential common shares | 1 | 1 | 1 | 1 |
Diluted weighted-average shares | 175 | 179 | 175 | 179 |
Net income per share - basic | $ 2.23 | $ 1.62 | $ 3.94 | $ 4.66 |
Net income per share - diluted | $ 2.22 | $ 1.61 | $ 3.92 | $ 4.63 |
NET INCOME PER SHARE (Narrative
NET INCOME PER SHARE (Narratives) (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2024 | Jul. 31, 2023 | Jul. 31, 2024 | Jul. 31, 2023 | |
Antidilutive Securities Excluded from EPS Computation | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Number | 0 | 0 | 0 | 0 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS (Goodwill Roll forward) (Details) $ in Millions | 9 Months Ended |
Jul. 31, 2024 USD ($) | |
Goodwill [Roll Forward] | |
Goodwill at October 31, 2023 | $ 1,640 |
Foreign currency translation impact | 8 |
Goodwill | 743 |
Goodwill at July 31, 2024 | 2,391 |
Communications Solutions Group | |
Goodwill [Roll Forward] | |
Goodwill at October 31, 2023 | 1,057 |
Foreign currency translation impact | 3 |
Goodwill | 185 |
Goodwill at July 31, 2024 | 1,245 |
Electronic Industrial Solutions Group | |
Goodwill [Roll Forward] | |
Goodwill at October 31, 2023 | 583 |
Foreign currency translation impact | 5 |
Goodwill | 558 |
Goodwill at July 31, 2024 | $ 1,146 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS IMPAIRMENT (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jul. 31, 2024 | Jul. 31, 2023 | Jul. 31, 2024 | Jul. 31, 2023 | Oct. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||||
Goodwill, Impairment Loss | $ 0 | $ 0 | $ 0 | $ 0 | |
Goodwill, Impaired, Accumulated Impairment Loss | $ 709 | $ 709 | $ 709 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS (Disclosures and Components of Purchased Other Intangibles) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Jul. 31, 2024 | Oct. 31, 2023 | |
Finite-Lived Intangible Assets [Line Items] | ||
Amortizable intangible assets, Gross carrying amount | $ 2,029 | $ 1,494 |
Accumulated Amortization and impairments | 1,445 | 1,339 |
Amortizable intangible assets, Net book value | 584 | 155 |
In Process Research and Development | ||
Finite-Lived Intangible Assets [Line Items] | ||
In-process research and development | 53 | 0 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortizable intangible assets, Gross carrying amount | 1,367 | 1,033 |
Accumulated Amortization and impairments | 1,000 | 949 |
Amortizable intangible assets, Net book value | 367 | 84 |
Backlog | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortizable intangible assets, Gross carrying amount | 37 | 19 |
Accumulated Amortization and impairments | 23 | 17 |
Amortizable intangible assets, Net book value | 14 | 2 |
Trademark/Tradename | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortizable intangible assets, Gross carrying amount | 38 | 36 |
Accumulated Amortization and impairments | 35 | 33 |
Amortizable intangible assets, Net book value | 3 | 3 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortizable intangible assets, Gross carrying amount | 587 | 406 |
Accumulated Amortization and impairments | 387 | 340 |
Amortizable intangible assets, Net book value | 200 | $ 66 |
In Process Research and Development | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Period Increase (Decrease) | $ 7 |
GOODWILL AND OTHER INTANGIBLE_6
GOODWILL AND OTHER INTANGIBLE ASSETS (Acquisition Narratives) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Nov. 03, 2023 | Jul. 31, 2024 | |
Business Acquisition [Line Items] | ||
Goodwill | $ 743 | |
Finite-lived Intangible Assets Acquired | $ 582 | |
ESI Group SA | ||
Business Acquisition [Line Items] | ||
Goodwill | $ 603 | |
Other intangible assets | $ 494 |
GOODWILL AND OTHER INTANGIBLE_7
GOODWILL AND OTHER INTANGIBLE ASSETS (Intangible assets narratives) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2024 | Jul. 31, 2023 | Jul. 31, 2024 | Jul. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Finite Lived Intangible Assets, Foreign Currency Translation Gain (Loss) | $ 6 | |||
Amortization of Intangible Assets | $ 31 | $ 23 | $ 106 | $ 71 |
GOODWILL AND OTHER INTANGIBLE_8
GOODWILL AND OTHER INTANGIBLE ASSETS (Finite-Lived Assets Future Amortization Expense) (Details) $ in Millions | Jul. 31, 2024 USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
2024 (remainder) | $ 32 |
2025 | 124 |
2026 | 111 |
2027 | 99 |
2028 | 96 |
2029 | 88 |
Thereafter | $ 34 |
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, 2024 | Oct. 31, 2023 |
Assets Short - term [Abstract] | ||
Money market funds | $ 989 | $ 1,934 |
Derivative instruments (foreign exchange contracts) | 14 | 18 |
Assets, Long-term [Abstract] | ||
Equity investments | 78 | 56 |
Equity investments - other | 29 | 25 |
Total assets measured at fair value | 1,110 | 2,033 |
Liabilities, Short-term [Abstract] | ||
Derivative instruments (foreign exchange contracts) | 8 | 54 |
Liabilities Long-term [Abstract] | ||
Deferred compensation liability | 33 | 27 |
Total liabilities measured at fair value | 41 | 81 |
Level 1 | ||
Assets Short - term [Abstract] | ||
Money market funds | 989 | 1,934 |
Derivative instruments (foreign exchange contracts) | 0 | 0 |
Assets, Long-term [Abstract] | ||
Equity investments | 78 | 56 |
Equity investments - other | 0 | 0 |
Total assets measured at fair value | 1,067 | 1,990 |
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) | 14 | 18 |
Assets, Long-term [Abstract] | ||
Equity investments | 0 | 0 |
Equity investments - other | 0 | 0 |
Total assets measured at fair value | 14 | 18 |
Liabilities, Short-term [Abstract] | ||
Derivative instruments (foreign exchange contracts) | 8 | 54 |
Liabilities Long-term [Abstract] | ||
Deferred compensation liability | 33 | 27 |
Total liabilities measured at fair value | 41 | 81 |
Level 3 | ||
Assets Short - term [Abstract] | ||
Money market funds | 0 | 0 |
Derivative instruments (foreign exchange contracts) | 0 | 0 |
Assets, Long-term [Abstract] | ||
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, 2024 | Jul. 31, 2023 | Jul. 31, 2024 | Jul. 31, 2023 | |
Debt and Equity Securities, Gain (Loss) [Abstract] | ||||
Equity Securities, FV-NI, Realized Gain | $ 0 | $ 0 | $ 0 | $ 0 |
Equity Securities, FV-NI, Unrealized Gain (Loss) | 3 | $ 13 | 13 | $ 20 |
Equity Method Investments | $ 10 | $ 10 |
DERIVATIVES Derivative, interes
DERIVATIVES Derivative, interest rate swaps (Details) € in Millions, $ in Millions | 9 Months Ended | |||
Jul. 31, 2024 USD ($) | Jul. 31, 2023 USD ($) | Jul. 31, 2024 EUR (€) | Oct. 31, 2020 USD ($) | |
Derivative [Line Items] | ||||
Interest rate swap agreement termination proceeds | $ 0 | $ 107 | ||
Treasury Lock | ||||
Derivative [Line Items] | ||||
Derivative Liability, Notional Amount | $ 600 | |||
Interest Rate Swap [Member] | ||||
Derivative [Line Items] | ||||
Derivative Liability, Notional Amount | € | € 5 |
DERIVATIVES ACQUISITION (Detail
DERIVATIVES ACQUISITION (Details) € in Millions, £ in Millions, $ in Millions | 9 Months Ended | 13 Months Ended | ||||
Jul. 31, 2024 USD ($) | Jul. 31, 2024 USD ($) | Jul. 31, 2024 EUR (€) | Jul. 31, 2024 GBP (£) | Oct. 31, 2023 EUR (€) | Oct. 31, 2020 USD ($) | |
Derivative [Line Items] | ||||||
Derivative, Loss on Derivative | $ 18 | |||||
ESI Group SA | ||||||
Derivative [Line Items] | ||||||
Derivative, Loss on Derivative | $ 63 | |||||
Treasury Lock | ||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||
Derivative Liability, Notional Amount | $ 600 | |||||
Derivative [Line Items] | ||||||
Derivative Liability, Notional Amount | $ 600 | |||||
Interest Rate Swap [Member] | ||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||
Derivative Liability, Notional Amount | € | € 5 | |||||
Derivative [Line Items] | ||||||
Derivative Liability, Notional Amount | € | € 5 | |||||
Foreign Exchange Forward | Not Designated as Hedging Instrument | ||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||
Derivative Liability, Notional Amount | £ 1,200 | € 930 | ||||
Derivative [Line Items] | ||||||
Derivative Liability, Notional Amount | £ 1,200 | € 930 | ||||
Derivatives not designated as hedging instruments: | $ 7 |
DERIVATIVES, Disclosures and de
DERIVATIVES, Disclosures and derivative instrument aggregated notional amounts by currency and designations (Details) $ in Millions | Jul. 31, 2024 USD ($) contracts |
Open Forward Foreign Currency Contract, Identifier [Axis]: Euro - Cash Flow Hedging | |
Derivative [Line Items] | |
Derivative Liability, Notional Amount | $ 21 |
Open Forward Foreign Currency Contract, Identifier [Axis]: Euro - Not Designated as Hedging Instrument | |
Derivative [Line Items] | |
Derivative Liability, Notional Amount | 44 |
Open Forward Foreign Currency Contract, Identifier [Axis]: Japanese Yen - Cash Flow Hedging | |
Derivative [Line Items] | |
Derivative Asset | 103 |
Open Forward Foreign Currency Contract, Identifier [Axis]: Japanese Yen - Not Designated as Hedging Instrument | |
Derivative [Line Items] | |
Derivative Asset | 66 |
Open Forward Foreign Currency Contract, Identifier [Axis]: Malaysian Ringgit - Cash Flow Hedging | |
Derivative [Line Items] | |
Derivative Liability, Notional Amount | 104 |
Open Forward Foreign Currency Contract, Identifier [Axis]: Malaysian Ringgit - Not Designated as Hedging Instrument | |
Derivative [Line Items] | |
Derivative Liability, Notional Amount | 11 |
Open Forward Foreign Currency Contract, Identifier [Axis]: Other Currencies - Cash Flow Hedging | |
Derivative [Line Items] | |
Derivative Asset | 34 |
Open Forward Foreign Currency Contract, Identifier [Axis]: Other currencies - Not Designated as Hedging Instrument | |
Derivative [Line Items] | |
Derivative Liability, Notional Amount | 31 |
Open Forward Foreign Currency Contract, Identifier [Axis]: Pound Sterling - Cash Flow Hedging | |
Derivative [Line Items] | |
Derivative Liability, Notional Amount | 9 |
Open Forward Foreign Currency Contract, Identifier [Axis]: Pound Sterling - Not Designated as Hedging Instrument | |
Derivative [Line Items] | |
Derivative Liability, Notional Amount | 1,541 |
Open Forward Foreign Currency Contract, Identifier [Axis]: Singapore Dollar - Cash Flow Hedging | |
Derivative [Line Items] | |
Derivative Liability, Notional Amount | 35 |
Open Forward Foreign Currency Contract, Identifier [Axis]: Singapore Dollar - Not Designated as Hedging Instrument | |
Derivative [Line Items] | |
Derivative Liability, Notional Amount | 4 |
Open Forward Foreign Currency Contract, Identifier [Axis]: Total - Cash Flow Hedging | |
Derivative [Line Items] | |
Derivative Liability, Notional Amount | 32 |
Open Forward Foreign Currency Contract, Identifier [Axis]: Total - Not Designated as Hedging Instrument | |
Derivative [Line Items] | |
Derivative Liability, Notional Amount | $ 1,503 |
Foreign Exchange Forward | Cash Flow Hedging | |
Derivative [Line Items] | |
Number of Foreign Currency Derivatives Held | contracts | 207 |
Foreign Exchange Forward | Not Designated as Hedging Instrument | |
Derivative [Line Items] | |
Number of Foreign Currency Derivatives Held | contracts | 85 |
DERIVATIVES, Fair value of deri
DERIVATIVES, Fair value of derivative instruments and Consolidated Balance Sheet location (Details) - USD ($) $ in Millions | Jul. 31, 2024 | Oct. 31, 2023 |
Derivative Fair Value by Balance Sheet Location [Abstract] | ||
Total derivatives Asset | $ 14 | $ 18 |
Total derivatives Liabilities | 8 | 54 |
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 | 4 | 16 |
Designated as Hedging Instruments | Cash Flow Hedging | Foreign Exchange Contracts | Other Current Liabilities [Member] | ||
Derivative Fair Value by Balance Sheet Location [Abstract] | ||
Total derivatives Liabilities | 3 | 7 |
Not Designated as Hedging Instrument | Foreign Exchange Contracts | Other Current Assets [Member] | ||
Derivative Fair Value by Balance Sheet Location [Abstract] | ||
Total derivatives Asset | 10 | 2 |
Not Designated as Hedging Instrument | Foreign Exchange Contracts | Other Current Liabilities [Member] | ||
Derivative Fair Value by Balance Sheet Location [Abstract] | ||
Total derivatives Liabilities | $ 5 | $ 47 |
DERIVATIVES, Effect of derivati
DERIVATIVES, Effect of derivative instruments on Consolidated Statement of Operations (Details) € in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Jul. 31, 2024 USD ($) | Jul. 31, 2023 USD ($) | Jul. 31, 2024 USD ($) | Jul. 31, 2023 USD ($) | Jul. 31, 2024 EUR (€) | Oct. 31, 2020 USD ($) | |
Derivative [Line Items] | ||||||
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $ 9 | |||||
Other Nonoperating Income (Expense) | ||||||
Derivative [Line Items] | ||||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | $ 8 | $ (2) | (12) | $ (2) | ||
Interest Rate Swap [Member] | ||||||
Derivative [Line Items] | ||||||
Derivative Liability, Notional Amount | € | € 5 | |||||
Treasury Lock | ||||||
Derivative [Line Items] | ||||||
Derivative Liability, Notional Amount | $ 600 | |||||
Designated as Hedging Instruments | Cash Flow Hedging | Interest Rate Swap [Member] | ||||||
Derivative [Line Items] | ||||||
Fair Value, Net Derivative Asset (Liability), Recurring Basis, Still Held, Unrealized Gain (Loss), OCI | 0 | 0 | 0 | (26) | ||
Designated as Hedging Instruments | Cash Flow Hedging | Foreign Exchange Contracts | ||||||
Derivative [Line Items] | ||||||
Fair Value, Asset (Liability), Recurring Basis, Still Held, Unrealized Gain (Loss), OCI | 0 | 3 | 1 | 3 | ||
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: | 3 | 1 | 9 | 5 | ||
Gain excluded from effectiveness testing recognized in earnings based on changes in fair value: | 0 | 2 | 3 | 4 | ||
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: | 0 | 0 | (1) | (1) | ||
Gain excluded from effectiveness testing recognized in earnings based on changes in fair value: | $ (1) | $ 0 | $ (1) | $ 0 |
DEBT Summary of Long Term Debt
DEBT Summary of Long Term Debt incl. unamortized cost (Details) - USD ($) $ in Millions | Jul. 31, 2024 | Oct. 31, 2023 |
Debt Instrument | ||
Debt, Long-Term and Short-Term, Combined Amount | $ 1,796 | $ 1,794 |
Current portion of long-term debt | 600 | 599 |
Long-term Debt, Excluding Current Maturities | 1,196 | 1,195 |
Senior Notes 2024 | ||
Debt Instrument | ||
Senior Notes | 600 | 599 |
Unamortized costs | 0 | 1 |
Debt Instrument, Face Amount | $ 600 | |
Debt Instrument, Interest Rate, Stated Percentage | 4.55% | |
Senior Notes 2027 | ||
Debt Instrument | ||
Senior Notes | $ 698 | 698 |
Unamortized costs | 2 | 2 |
Debt Instrument, Face Amount | $ 700 | |
Debt Instrument, Interest Rate, Stated Percentage | 4.60% | |
Senior Notes 2029 | ||
Debt Instrument | ||
Senior Notes | $ 498 | 497 |
Unamortized costs | 2 | $ 3 |
Debt Instrument, Face Amount | $ 500 | |
Debt Instrument, Interest Rate, Stated Percentage | 3% |
DEBT (Short-Term Debt - Revolvi
DEBT (Short-Term Debt - Revolving Credit Facility) (Details) € in Millions, $ in Millions | 9 Months Ended | |||
Jul. 31, 2024 USD ($) | Jul. 31, 2024 USD ($) | Nov. 03, 2023 EUR (€) | Oct. 31, 2023 USD ($) | |
Line of Credit facility | ||||
Facility, Maximum Borrowing Capacity | $ 750 | $ 750 | ||
ESI Group SA | ||||
Line of Credit facility | ||||
Facility, Maximum Borrowing Capacity | € | € 10 | |||
Debt Instrument, Description of Variable Rate Basis | EURIBOR + 2 to 2.5 percent | |||
Revolving Credit Facility | ||||
Line of Credit facility | ||||
Facility, Initiation Date | Jul. 30, 2021 | |||
Facility, Expiration Date | Jul. 30, 2026 | |||
Additional drawings on credit facility | $ 250 | |||
Facility, Outstanding | $ 0 | $ 0 | $ 0 | |
Facility, Covenant Compliance | We were in compliance with the covenants of the Revolving Credit Facility during the nine months ended July 31, 2024. | |||
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Revolving Credit Facility | ||||
Line of Credit facility | ||||
Debt Instrument, Description of Variable Rate Basis | On February 17, 2023, we entered into the first amendment to the Revolving Credit Facility to change the annual interest rate from LIBOR + 1 percent to SOFR + 1.1 percent. |
DEBT ESI assumed (Details)
DEBT ESI assumed (Details) - USD ($) $ in Millions | 9 Months Ended | |||
Jul. 31, 2024 | Jul. 31, 2024 | Jul. 31, 2023 | Nov. 03, 2023 | |
Debt Instrument | ||||
Repayment of debt | $ 24 | $ 0 | ||
ESI Group SA | ||||
Debt Instrument | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-Term Debt | $ 24 | |||
Loans Payable, Current | 10 | |||
Debt Instrument, Description of Variable Rate Basis | EURIBOR + 2 to 2.5 percent | |||
ESI Group SA | Syndicated loan | ||||
Debt Instrument | ||||
Loans Payable | 11 | |||
ESI Group SA | State-guaranteed loans | ||||
Debt Instrument | ||||
Loans Payable | 13 | |||
ESI Group SA | Other bank borrowings | ||||
Debt Instrument | ||||
Loans Payable | $ 13 |
DEBT letter of credits (Details
DEBT letter of credits (Details) £ in Millions, $ in Millions | Jul. 31, 2024 USD ($) | Jul. 31, 2024 GBP (£) | Oct. 31, 2023 USD ($) |
Short-term Debt [Line Items] | |||
Facility, Maximum Borrowing Capacity | $ 750 | ||
Letters of Credit Outstanding, Amount | 43 | $ 41 | |
Letters of Credit Outstanding, Amount | $ 43 | $ 41 | |
Bridge Loan | |||
Short-term Debt [Line Items] | |||
Facility, Maximum Borrowing Capacity | £ | £ 1,232 |
DEBT FAIR VALUE (Details)
DEBT FAIR VALUE (Details) - USD ($) $ in Millions | Jul. 31, 2024 | Oct. 31, 2023 |
Debt Disclosure [Abstract] | ||
Long-Term Debt, Fair Value | $ 1,751 | $ 1,679 |
DEBT Bridge Loan Facility (Deta
DEBT Bridge Loan Facility (Details) - 9 months ended Jul. 31, 2024 £ in Millions, $ in Millions | USD ($) | GBP (£) |
Line of Credit facility | ||
Facility, Maximum Borrowing Capacity | $ 750 | |
Payments of Financing Costs | 7 | |
Payments of Financing Costs | $ 7 | |
Bridge Loan | ||
Line of Credit facility | ||
Facility, Description | On March 28, 2024, we entered into a bridge credit agreement (the “Bridge Facility”) pursuant to which certain lenders agreed to provide a senior unsecured 364-day bridge credit facility of up to 1,350 million pounds sterling for the purpose of providing the financing to support a planned acquisition. On July 25, 2024, the Bridge Facility was decreased to 1,232 million pounds sterling. We incurred costs in connection with the Bridge Facility of $7 million that are included in “other current assets” in the condensed consolidated balance sheet and are being amortized to interest expense over the term of the Bridge Facility. | |
Facility, Maximum Borrowing Capacity | £ | £ 1,232 | |
Facility, Initiation Date | Mar. 28, 2024 | |
Line of Credit Facility, Expiration Period | 364 days | |
LineOfCreditFacilityOriginalBorrowingCapacity | £ | £ 1,350 |
RETIREMENT PLANS AND POST RET_3
RETIREMENT PLANS AND POST RETIREMENT PENSION PLANS (Net Pension and post-retirement benefit cost(benefit) components) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2024 | Jul. 31, 2023 | Jul. 31, 2024 | Jul. 31, 2023 | |
Defined benefit plan | United States | ||||
Defined Benefit Plan Disclosure | ||||
Service cost—benefits earned during the period | $ 4 | $ 4 | $ 11 | $ 12 |
Interest cost on benefit obligation | 10 | 10 | 30 | 28 |
Expected return on plan assets | (12) | (13) | (36) | (37) |
Amortization of net actuarial loss | 2 | 2 | 7 | 6 |
Net periodic benefit cost (benefit) | 4 | 3 | 12 | 9 |
Defined benefit plan | Foreign Plan | ||||
Defined Benefit Plan Disclosure | ||||
Service cost—benefits earned during the period | 3 | 2 | 7 | 7 |
Interest cost on benefit obligation | 9 | 8 | 27 | 23 |
Expected return on plan assets | (13) | (13) | (39) | (39) |
Amortization of net actuarial loss | 2 | 3 | 6 | 7 |
Net periodic benefit cost (benefit) | 1 | 0 | 1 | (2) |
Post-retirement Benefits Plan | United States | ||||
Defined Benefit Plan Disclosure | ||||
Service cost—benefits earned during the period | 0 | 0 | 0 | 0 |
Interest cost on benefit obligation | 2 | 2 | 6 | 6 |
Expected return on plan assets | (3) | (3) | (9) | (9) |
Amortization of net actuarial loss | 0 | 0 | 0 | 1 |
Net periodic benefit cost (benefit) | $ (1) | $ (1) | $ (3) | $ (2) |
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, 2024 | Jul. 31, 2023 | Jul. 31, 2024 | Jul. 31, 2023 | |
Malaysia Tax Authority [Member] | ||||
Defined Benefit Plan Disclosure | ||||
Tax Adjustments, Settlements, and Unusual Provisions | $ 61 | $ 61 | ||
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 | 3 | $ 2 | 8 | $ 7 |
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, 2024 | Oct. 31, 2023 | Jul. 31, 2023 | Oct. 31, 2022 |
Cash and cash equivalents | $ 1,632 | $ 2,472 | ||
Restricted cash included in other assets | 17 | 16 | ||
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows | $ 1,649 | $ 2,488 | $ 2,588 | $ 2,057 |
INVENTORY (Details)
INVENTORY (Details) - USD ($) $ in Millions | Jul. 31, 2024 | Oct. 31, 2023 |
Inventory, Net [Abstract] | ||
Finished goods | $ 379 | $ 376 |
Purchased parts and fabricated assemblies | 647 | 609 |
Inventory, Net | $ 1,026 | $ 985 |
Lease (Details)
Lease (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2024 | Jul. 31, 2023 | Jul. 31, 2024 | Jul. 31, 2023 | |
Leases [Abstract] | ||||
Operating lease cost | $ 16 | $ 14 | $ 47 | $ 40 |
Variable lease cost | $ 5 | $ 5 | 16 | 15 |
Cash payment for operating leases | 42 | 40 | ||
Right-of-use assets obtained in exchange for operating lease obligations | $ 32 | $ 32 |
WARRANTIES (Details)
WARRANTIES (Details) - USD ($) $ in Millions | 9 Months Ended | |
Jul. 31, 2024 | Jul. 31, 2023 | |
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 | $ 36 | $ 32 |
Accruals for warranties, including change in estimates | 16 | 23 |
Settlements made during the period | (20) | (21) |
Ending balance | 32 | 34 |
Standard Product Warranty Disclosure [Abstract] | ||
Accruals for warranties due within one year | 20 | 20 |
Accruals for warranties due after one year | 12 | 14 |
Ending balance | $ 32 | $ 34 |
SUPPLEMENTAL FINANCIAL INFORM_3
SUPPLEMENTAL FINANCIAL INFORMATION - Other assets (Details) - USD ($) $ in Millions | Jul. 31, 2024 | Oct. 31, 2023 |
Prepaid Expense and Other Assets, Current [Abstract] | ||
Prepaid assets | $ 328 | $ 284 |
Other current assets | 208 | 168 |
Total other current assets | 536 | 452 |
Advances on Inventory Purchases | $ 221 | $ 210 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Millions | 9 Months Ended | |
Jul. 31, 2024 | Aug. 03, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Loss Contingency, Estimate of Possible Loss | $ 6.6 | |
Loss Contingency, Range of Possible Loss, Portion Not Accrued | $ 2.5 | |
Loss Contingency Accrual, Payments | $ 4.1 |
STOCKHOLDERS' EQUITY (Stock Rep
STOCKHOLDERS' EQUITY (Stock Repurchase Program) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Jul. 31, 2024 | Jul. 31, 2024 | Jul. 31, 2023 | Jul. 31, 2024 | Jul. 31, 2023 | Mar. 06, 2023 | |
Condensed Balance Sheet Statements, Captions [Line Items] | ||||||
Stock Repurchase Program, Authorized Amount | $ 1,500 | |||||
Stockholders' Equity, Average Amount Outstanding | $ 635 | |||||
Treasury Stock, Shares, Acquired | 2,000,882 | 1,640,236 | ||||
Treasury Stock, Value, Acquired, Cost Method | $ 151 | $ 151 | $ 290 | $ 276 | ||
Payments for Repurchase of Common Stock | $ 289 | $ 276 |
STOCKHOLDER'S EQUITY - Accumula
STOCKHOLDER'S EQUITY - Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2024 | Jul. 31, 2023 | Jul. 31, 2024 | Jul. 31, 2023 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | $ (469) | $ (399) | $ (466) | $ (454) |
Other comprehensive income (loss) before reclassifications | 32 | (6) | 28 | 38 |
Amounts reclassified out of accumulated other comprehensive gain (loss) | 1 | 4 | 3 | 11 |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | (1) | (1) | (2) | 3 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent, Total | 32 | (3) | 29 | 52 |
Ending balance | (437) | (402) | (437) | (402) |
Foreign currency translation | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (172) | (115) | (167) | (185) |
Other comprehensive income (loss) before reclassifications | 32 | (9) | 27 | 61 |
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 | 32 | (9) | 27 | 61 |
Ending balance | (140) | (124) | (140) | (124) |
Actuarial losses | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (377) | (365) | (382) | (373) |
Other comprehensive income (loss) before reclassifications | 0 | 0 | 0 | 0 |
Amounts reclassified out of accumulated other comprehensive gain (loss) | 4 | 5 | 11 | 15 |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | (1) | (1) | (3) | (3) |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent, Total | 3 | 4 | 8 | 12 |
Ending balance | (374) | (361) | (374) | (361) |
Prior service credits | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (6) | (6) | (6) | (6) |
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) | (6) | (6) | (6) |
Gains (losses) on derivatives | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | 86 | 87 | 89 | 110 |
Other comprehensive income (loss) before reclassifications | 0 | 3 | 1 | (23) |
Amounts reclassified out of accumulated other comprehensive gain (loss) | (3) | (1) | (8) | (4) |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | 0 | 0 | 1 | 6 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent, Total | (3) | 2 | (6) | (21) |
Ending balance | $ 83 | $ 89 | $ 83 | $ 89 |
STOCKHOLDERS' EQUITY - Reclassi
STOCKHOLDERS' EQUITY - Reclassifications out of accumulated comprehensive income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2024 | Jul. 31, 2023 | Jul. 31, 2024 | Jul. 31, 2023 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification, Tax | $ 0 | $ (1) | $ (1) | $ (1) |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, after Tax | 3 | 0 | 7 | 3 |
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, before Tax | (4) | (5) | (11) | (15) |
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, Tax | 1 | 1 | 3 | 3 |
Change in net actuarial loss, net of tax expense of $1, $1, $3 and $3 | 3 | 4 | 8 | 12 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | (4) | (1) | (9) |
Cost of products and services | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax | 3 | 1 | 9 | 5 |
Selling, general and administrative | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax | $ 0 | $ 0 | $ (1) | $ (1) |
SEGMENT INFORMATION Profitabili
SEGMENT INFORMATION Profitability (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2024 USD ($) | Jul. 31, 2023 USD ($) | Jul. 31, 2024 USD ($) segment | Jul. 31, 2023 USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of Reportable Segments | segment | 2 | |||
Revenues, Total | $ 1,217 | $ 1,382 | $ 3,692 | $ 4,153 |
Operating Income (Loss) | 205 | 365 | 603 | 1,041 |
Communications Solutions Group | ||||
Segment Reporting Information [Line Items] | ||||
Revenues, Total | 847 | 918 | 2,526 | 2,794 |
Electronic Industrial Solutions Group | ||||
Segment Reporting Information [Line Items] | ||||
Revenues, Total | 370 | 464 | 1,166 | 1,359 |
Total segments | ||||
Segment Reporting Information [Line Items] | ||||
Operating Income (Loss) | 297 | 433 | 946 | 1,265 |
Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating Income (Loss) | 297 | 433 | 946 | 1,265 |
Operating Segments [Member] | Communications Solutions Group | ||||
Segment Reporting Information [Line Items] | ||||
Operating Income (Loss) | 223 | 276 | 672 | 811 |
Operating Segments [Member] | Electronic Industrial Solutions Group | ||||
Segment Reporting Information [Line Items] | ||||
Operating Income (Loss) | $ 74 | $ 157 | $ 274 | $ 454 |
SEGMENT INFORMATION Reconciliat
SEGMENT INFORMATION Reconciliation of Reportable Results (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2024 | Jul. 31, 2023 | Jul. 31, 2024 | Jul. 31, 2023 | |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Abstract] | ||||
Total reportable operating segments' income from operations | $ 205 | $ 365 | $ 603 | $ 1,041 |
Share-based Payment Arrangement, Expensed and Capitalized, Amount | (32) | (27) | (118) | (111) |
Amortization of acquisition-related balances | (31) | (23) | (106) | (71) |
Acquisition and integration costs | (23) | (6) | (59) | (11) |
Restructuring and others | (6) | (12) | (60) | (31) |
Income from operations | 205 | 365 | 603 | 1,041 |
Interest income | 19 | 29 | 60 | 70 |
Interest Expense | 21 | 19 | 61 | 58 |
Other Nonoperating Gains (Losses) | 10 | 14 | 15 | 28 |
Income before taxes | 213 | 389 | 617 | 1,081 |
Total segments | ||||
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Abstract] | ||||
Total reportable operating segments' income from operations | 297 | 433 | 946 | 1,265 |
Income from operations | $ 297 | $ 433 | $ 946 | $ 1,265 |
SEGMENT INFORMATION ASSETS (Det
SEGMENT INFORMATION ASSETS (Details) - USD ($) $ in Millions | Jul. 31, 2024 | Oct. 31, 2023 |
Segment Reporting Information [Line Items] | ||
Total reportable segments' assets | $ 7,652 | $ 6,330 |
Total segments | ||
Segment Reporting Information [Line Items] | ||
Total reportable segments' assets | 7,652 | 6,330 |
Operating Segments [Member] | Communications Solutions Group | ||
Segment Reporting Information [Line Items] | ||
Total reportable segments' assets | 4,686 | 4,410 |
Operating Segments [Member] | Electronic Industrial Solutions Group | ||
Segment Reporting Information [Line Items] | ||
Total reportable segments' assets | $ 2,966 | $ 1,920 |
SEGMENT INFORMATION ASSETS RECO
SEGMENT INFORMATION ASSETS RECON (Details) - USD ($) $ in Millions | Jul. 31, 2024 | Oct. 31, 2023 |
Segment Reporting [Abstract] | ||
Total reportable segments' assets | $ 7,652 | $ 6,330 |
Cash and cash equivalents | 1,632 | 2,472 |
Long-term Investments | 107 | 81 |
Long-term deferred tax assets | 678 | 671 |
Finite-Lived Intangible Assets, Accumulated Amortization | (1,445) | (1,339) |
Long-term tax receivables | 169 | 0 |
Pension and other assets | 530 | 468 |
Assets | $ 9,323 | $ 8,683 |