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TRANSACTIONS WITH AGILENT
 12 Months Ended
Oct. 31, 2015
Related Party Transactions [Abstract]  
TRANSACTIONS WITH AGILENT
TRANSACTIONS WITH AGILENT
Prior to the separation, we were the Electronic Measurement segment of Agilent. After the Capitalization and prior to November 1, 2014, our transactions with Agilent were considered related-party transactions since Agilent owned 100% of our outstanding common stock.
The amount of materials and services sold by us to other Agilent businesses was immaterial for the years ended October 31, 2015, 2014 and 2013 and we did not purchase any materials from the other Agilent businesses for those respective periods.
Allocated Costs
The combined and consolidated statement of operations includes our direct expenses for cost of products and services sold, research and development, sales and marketing, distribution, and administration as well as allocations of expenses arising from shared services and infrastructure provided by Agilent to us. Prior to Separation, these allocated expenses include costs of information technology, accounting and legal services, real estate and facilities, corporate advertising, insurance services, treasury and other corporate and infrastructure services and costs for central research and development efforts. In addition, other costs allocated to us include restructuring costs, share-based compensation expense and retirement plan expenses related to Agilent’s corporate and shared services employees and are included in the table below. These expenses are allocated to us using estimates that we consider to be a reasonable reflection of the utilization of services provided to or benefits received by us. These costs have been allocated to us on the basis of direct usage when identifiable, with the remainder allocated on a pro-rata basis of revenue, square footage, headcount or other measures.
Allocated costs included in the accompanying combined statement of operations are as follows:
 
Years ended October 31,
 
2015
 
2014
 
2013
Cost of products and services
$
—

 
$
96

 
$
93

Research and development
—

 
44

 
54

Selling, general and administrative
—

 
273

 
257

Other (income) expense
—

 
(4
)
 
(4
)
Total allocated costs
$
—

 
$
409

 
$
400

Fiscal 2014 includes allocated costs related to the period prior to the Capitalization.

Receivable from and Payable to Agilent
 
October 31,
 
2015
 
2014
Receivable from Agilent
$
—

 
$
23

Payable to Agilent
$
—

 
$
125



The payable to Agilent was reduced by $25 million during the first quarter of fiscal 2015 as a result of finalization of discussions with Agilent as provided in the separation and distribution agreement. This adjustment was reflected as an increase in additional paid-in-capital in the condensed consolidated balance sheet. The remaining receivables from and payables to Agilent were settled as of October 31, 2015.