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SEGMENT INFORMATION | 12 Months Ended
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Oct. 31, 2015
Segment Reporting [Abstract] |
SEGMENT INFORMATION | SEGMENT INFORMATION Description of segments. We provide core electronic design and test solutions to the communications and electronics industries. We have two reportable operating segments, measurement solutions and customer support and services. The two operating segments were determined based primarily on how the chief operating decision maker views and evaluates our operations. Operating results are regularly reviewed by the chief operating decision maker to make decisions about resources to be allocated to the segment and to assess its performance. Other factors, including market separation and customer specific applications, go-to-market channels, products and services and manufacturing are considered in determining the formation of these operating segments. A description of our two reportable segments is as follows: Our measurement solutions business provides electronic measurement instruments and systems with related software and software design tools that are used in the design, development, manufacture, installation, deployment and operation of electronics equipment. We provide startup assistance, consulting, optimization and application support throughout the customer's product lifecycle. The customer support and services business provides hardware repair and calibration services and facilitates the resale of used equipment. Our customer support and services business enables our customers to maximize the value from their electronic measurement equipment and strengthens customer loyalty. Providing these services assures a high level of instrument performance and availability while minimizing the cost of ownership and downtime. A significant portion of the segments' expenses arise from shared services and infrastructure that we have historically provided to the segments in order to realize economies of scale and to efficiently use resources. These expenses, collectively called corporate charges, include costs of centralized research and development, legal, accounting, real estate, insurance services, information technology services, finance, human resources and other corporate infrastructure expenses. Charges are allocated to the segments, and the allocations have been determined on a basis that we consider to be a reasonable reflection of the utilization of services provided to or benefits received by the segments. The following tables reflect the results of our reportable segments under our management reporting system. These results are not necessarily in conformity with U.S. GAAP. The performance of each segment is measured based on several metrics, including income from operations. These results are used, in part, by the chief operating decision maker in evaluating the performance of, and in allocating resources to, each of the segments. The profitability of each of the segments is measured after excluding share-based compensation expense, restructuring and asset impairment charges, investment gains and losses, interest income, interest expense, acquisition and integration costs, separation and related costs, acquisition related fair value adjustments, non-cash amortization and other items as noted in the reconciliations below.
| Measurement Solutions |  | Customer Support and Services |  | Total Segments
| (in millions)
Year ended October 31, 2015: |  |  |  |  |
Total segment revenue | $ | 2,461 |  |  | $ | 401 |  |  | $ | 2,862 |
Acquisition related fair value adjustments | (6 | ) |  | — |  |  | (6 | )
Total net revenue | $ | 2,455 |  |  | $ | 401 |  |  | $ | 2,856 |
Income from operations | $ | 487 |  |  | $ | 72 |  |  | $ | 559 |
Depreciation expense | $ | 68 |  |  | $ | 13 |  |  | $ | 81 |
Year ended October 31, 2014: |  |  |  |  |
Total net revenue | $ | 2,533 |  |  | $ | 400 |  |  | $ | 2,933 |
Income from operations | $ | 508 |  |  | $ | 93 |  |  | $ | 601 |
Depreciation expense | $ | 64 |  |  | $ | 10 |  |  | $ | 74 |
Year ended October 31, 2013: |  |  |  |  |
Total net revenue | $ | 2,493 |  |  | 395 |  |  | $ | 2,888 |
Income from operations | $ | 484 |  |  | $ | 99 |  |  | $ | 583 |
Depreciation expense | $ | 56 |  |  | $ | 9 |  |  | $ | 65 |
The following table reconciles reportable segments' income from operations to our total enterprise income before taxes:
| Years Ended October 31,
| 2015 |  | 2014 |  | 2013
| (in millions)
Total reportable segments' income from operations | $ | 559 |  |  | $ | 601 |  |  | $ | 583 |
Restructuring related costs | (14 | ) |  | 3 |  |  | (15 | )
Asset impairments | (1 | ) |  | — |  |  | (1 | )
Transformational programs | — |  |  | (1 | ) |  | (4 | )
Amortization of intangibles | (14 | ) |  | (8 | ) |  | (9 | )
Acquisition and integration costs | (16 | ) |  | (1 | ) |  | (8 | )
Share-based compensation expense | (55 | ) |  | (44 | ) |  | (43 | )
Acquisition related fair value adjustments | (9 | ) |  | — |  |  | — |
Separation and related costs | (20 | ) |  | (78 | ) |  | (2 | )
Other | 1 |  |  | (3 | ) |  | (5 | )
Interest Income | 1 |  |  | — |  |  | — |
Interest expense | (46 | ) |  | (3 | ) |  | — |
Other income (expense), net | 2 |  |  | 9 |  |  | 5 |
Income before taxes, as reported | $ | 388 |  |  | $ | 475 |  |  | $ | 501 |
Major customers. No customer represented 10 percent or more of our total net revenue in 2015, 2014 or 2013. The following table presents assets and capital expenditures directly managed by each segment. Unallocated assets primarily consist of cash, cash equivalents, investments, long-term and other receivables and other assets.
| Measurement Solutions |  | Customer Support & Services |  | Total Segments
| (in millions)
As of October 31, 2015: |  |  |  |  |
Assets | $ | 2,531 |  |  | $ | 265 |  |  | $ | 2,796 |
Capital expenditures | $ | 77 |  |  | $ | 15 |  |  | $ | 92 |
As of October 31, 2014: |  |  |  |  |
Assets | $ | 1,740 |  |  | $ | 236 |  |  | $ | 1,976 |
Capital expenditures | $ | 60 |  |  | $ | 10 |  |  | $ | 70 |
The following table reconciles segment assets to our total assets:
| October 31,
| 2015 |  | 2014
| (in millions)
Total reportable segments' assets | $ | 2,796 |  |  | $ | 1,976 |
Cash, cash equivalents and short-term investments | 483 |  |  | 810 |
Prepaid expenses | 98 |  |  | 51 |
Other current assets | 2 |  |  | 9 |
Investments | 70 |  |  | 63 |
Long-term and other receivables | 57 |  |  | 33 |
Other | 2 |  |  | 108 |
Total assets | $ | 3,508 |  |  | $ | 3,050 |
The other category primarily includes pension assets and also represents the difference between how segments report deferred taxes and intangible assets at the initial purchased amount. The following table presents summarized information for net revenue and long-lived assets by geographic region. Revenues from external customers are generally attributed to countries based upon the location of the Agilent sales representative. Long lived assets consist of property, plant, and equipment, long-term receivables and other long-term assets excluding intangible assets. The rest of the world primarily consists of rest of Asia and Europe.
| United States |  | China |  | Japan |  | Rest of the World |  | Total
| (in millions)
Net revenue: |  |  |  |  |  |  |  |  |
Year ended October 31, 2015 | $ | 991 |  |  | $ | 531 |  |  | $ | 311 |  |  | $ | 1,023 |  |  | $ | 2,856 |
Year ended October 31, 2014 | $ | 945 |  |  | $ | 548 |  |  | $ | 331 |  |  | $ | 1,109 |  |  | $ | 2,933 |
Year ended October 31, 2013 | $ | 966 |  |  | $ | 512 |  |  | $ | 364 |  |  | $ | 1,046 |  |  | $ | 2,888 |
| United States |  | Japan |  | Malaysia |  | Rest of the World |  | Total
| (in millions)
Long-lived assets: |  |  |  |  |  |  |  |  |
October 31, 2015 | $ | 251 |  |  | $ | 144 |  |  | $ | 80 |  |  | $ | 191 |  |  | $ | 666 |
October 31, 2014 | $ | 218 |  |  | $ | 157 |  |  | $ | 86 |  |  | $ | 142 |  |  | $ | 603 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8981-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9038-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8971-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8595-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8984-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9031-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8538-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8864-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8924-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8906-108599 + Details
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