INCOME TAXES	3 Months Ended
Jan. 31, 2015
Income Tax Disclosure [Abstract]
INCOME TAXES	5. INCOME TAXES Our combined and consolidated financial statements for fiscal 2014 and prior reflect the calculation of certain deferred tax assets and deferred tax liabilities based on a separate return methodology. Subsequent to the Separation, Keysight will file tax returns on its own behalf and certain current and non-current deferred tax assets and deferred tax liabilities have been adjusted to reflect Keysight's stand-alone income tax positions. The current deferred tax assets and non-current deferred tax assets have decreased by approximately $3 million and $33 million, respectively, while the non-current deferred tax liabilities have increased by $2 million. The decrease in net non-current deferred tax assets of $33 million was primarily due to the decrease in tax attributes of $83 million offset by a decrease in the deferred tax liability related to foreign unremitted earnings of approximately $53 million. Our best estimate of the remaining deferred tax liability for foreign unremitted earnings is $0. This decrease is due to the current existing circumstances under the ongoing discussion with Agilent regarding the allocation of certain deferred tax liability balances related to foreign unremitted earnings in accordance with the separation agreements. Under the terms of the tax matters agreement, current taxes payable for fiscal 2014 will be paid by the legal entity that files the tax return for such tax year. As a result of the Separation, income and other taxes payable were reduced by $26 million to reflect the amounts we expect to pay with our 2014 returns. The combined and consolidated financial statements for fiscal 2014 and prior include an allocation of liabilities for uncertain tax positions. As a result of the Separation, other long-term liabilities has been reduced by $74 million, which reflects the difference between the reserves that were allocated to us prior to the Separation using the separate return methodology and the actual reserves we retained. The company’s effective tax rate was 10.1 percent and 19.5 percent for the three months ended January 31, 2015 and 2014, respectively. Income tax expense was $8 million and $18 million for the three months ended January 31, 2015 and 2014, respectively. The income tax provision for the three months ended January 31, 2015 included a net discrete tax benefit of $10 million. The income tax provision for the three months ended January 31, 2014 included a net discrete expense of $9 million primarily due to the recognition of tax expense related to the repatriation of earnings to the U.S., offset somewhat by the settlement of an IRS audit in the U.S. The open tax years for the IRS, state and most foreign audit authorities are from August 1, 2014 through the current tax year. For certain historical Agilent foreign entities that Keysight retained as part of the Separation, the tax years generally remain open back to the year 2005. We do not believe it is reasonably possible that a change to our unrecognized tax benefits will occur in the next twelve months due to either the expiration of a statute of limitation or a tax audit settlement.

5. INCOME TAXES

Our combined and consolidated financial statements for fiscal 2014 and prior reflect the calculation of certain deferred tax assets and deferred tax liabilities based on a separate return methodology. Subsequent to the Separation, Keysight will file tax returns on its own behalf and certain current and non-current deferred tax assets and deferred tax liabilities have been adjusted to reflect Keysight's stand-alone income tax positions. The current deferred tax assets and non-current deferred tax assets have decreased by approximately $3 million and $33 million, respectively, while the non-current deferred tax liabilities have increased by $2 million. The decrease in net non-current deferred tax assets of $33 million was primarily due to the decrease in tax attributes of $83 million offset by a decrease in the deferred tax liability related to foreign unremitted earnings of approximately $53 million. Our best estimate of the remaining deferred tax liability for foreign unremitted earnings is $0. This decrease is due to the current existing circumstances under the ongoing discussion with Agilent regarding the allocation of certain deferred tax liability balances related to foreign unremitted earnings in accordance with the separation agreements.

Under the terms of the tax matters agreement, current taxes payable for fiscal 2014 will be paid by the legal entity that files the tax return for such tax year. As a result of the Separation, income and other taxes payable were reduced by $26 million to reflect the amounts we expect to pay with our 2014 returns. The combined and consolidated financial statements for fiscal 2014 and prior include an allocation of liabilities for uncertain tax positions. As a result of the Separation, other long-term liabilities has been reduced by $74 million, which reflects the difference between the reserves that were allocated to us prior to the Separation using the separate return methodology and the actual reserves we retained.

The company’s effective tax rate was 10.1 percent and 19.5 percent for the three months ended January 31, 2015 and 2014, respectively. Income tax expense was $8 million and $18 million for the three months ended January 31, 2015 and 2014, respectively.

The income tax provision for the three months ended January 31, 2015 included a net discrete tax benefit of $10 million. The income tax provision for the three months ended January 31, 2014 included a net discrete expense of $9 million primarily due to the recognition of tax expense related to the repatriation of earnings to the U.S., offset somewhat by the settlement of an IRS audit in the U.S.

The open tax years for the IRS, state and most foreign audit authorities are from August 1, 2014 through the current tax year. For certain historical Agilent foreign entities that Keysight retained as part of the Separation, the tax years generally remain open back to the year 2005. We do not believe it is reasonably possible that a change to our unrecognized tax benefits will occur in the next twelve months due to either the expiration of a statute of limitation or a tax audit settlement.