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SEGMENT INFORMATION
12 Months Ended
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