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SEGMENT INFORMATION | 9 Months Ended
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Jul. 31, 2016
Segment Reporting [Abstract] |
SEGMENT INFORMATION | SEGMENT INFORMATION We provide electronic design and test instruments and systems and related software, software design tools, and related services that are used in the design, development, manufacture, installation, deployment and operation of electronics equipment. Related services include start-up assistance, instrument productivity and application services and instrument calibration and repair. We also offer customization, consulting and optimization services throughout the customer's product lifecycle. We have completed our previously announced organizational change to align our organization with the industries we serve. As a result of this organizational realignment, we now have three reportable operating segments, Communications Solutions Group (“CSG”), Electronic Industrial Solutions Group (“EISG”), and Services Solutions Group (“SSG”). CSG and EISG are from our previous Measurement Solutions segment, while SSG was formerly reported as the company's Customer Support and Services segment. The new organizational structure continues to include centralized enterprise functions that provide support across the groups. Prior period amounts were revised to conform to the current presentation. Our three operating segments were determined based primarily on how the chief operating decision maker views and evaluates our operations. Segment operating results are regularly reviewed by the chief operating decision maker to make decisions about resources to be allocated to each segment and to assess 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. Descriptions of our three reportable segments are as follows: The Communications Solutions Group serves customers spanning the worldwide commercial communications end market, which includes internet infrastructure, and the aerospace, defense and government end market. The group provides electronic design and test software, instruments, and systems used in the simulation, design, validation, manufacturing, installation and optimization of electronic equipment. The Electronic Industrial Solutions Group provides test and measurement solutions across a broad set of industries within the electronic industrial end market, focusing on high-growth applications in the automotive and energy industry and measurement solutions for semiconductor design and manufacturing, consumer electronics, education and general electronics manufacturing. The group provides electronic design and test software, instruments, and systems used in the simulation, design, validation, manufacturing, installation and optimization of electronic equipment. The Services Solutions Group provides repair, calibration and consulting services, and remarkets used Keysight equipment. In addition to providing repair and calibration support for Keysight equipment, we also calibrate non-Keysight equipment. The group serves the same markets as Keysight’s Communications Solutions and Electronic Industrial Solutions Groups, providing industry-specific services to deliver complete Keysight solutions and help customers reduce their total cost of ownership for their design and test equipment. 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, treasury 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 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, among other things, charges related to the amortization of intangibles, the impact of restructuring and related costs, asset impairments, acquisition and integration costs, share-based compensation, separation and related costs, acquisition related fair value adjustments, interest income and interest expense as noted in the reconciliations below.
| Communications Solutions Group |  | Electronic Industrial Solutions Group |  | Services Solutions Group |  | Total Segments
| (in millions)
Three Months Ended July 31, 2016: |  |  |  |  |  |  |  |  |  |
Total segment revenue | $ | 424 |  |  | $ | 191 |  |  | $ | 103 |  |  | $ | 718 |
Acquisition related fair value adjustments | (3 | ) |  | — |  |  | — |  |  | (3 | )
Total net revenue | $ | 421 |  |  | $ | 191 |  |  | $ | 103 |  |  | $ | 715 |
Segment income from operations | $ | 77 |  |  | $ | 44 |  |  | $ | 19 |  |  | $ | 140 |
Three Months Ended July 31, 2015: |  |  |  |  |  |  |  |  |  |
Total net revenue | $ | 389 |  |  | $ | 175 |  |  | $ | 101 |  |  | $ | 665 |
Segment income from operations | $ | 72 |  |  | $ | 32 |  |  | $ | 20 |  |  | $ | 124 |
| Communications Solutions Group |  | Electronic Industrial Solutions Group |  | Services Solutions Group |  | Total Segments
| (in millions)
Nine Months Ended July 31, 2016: |  |  |  |  |  |  |  |  |  |
Total segment revenue | $ | 1,310 |  |  | $ | 575 |  |  | $ | 294 |  |  | $ | 2,179 |
Acquisition related fair value adjustments | (12 | ) |  | — |  |  | — |  |  | (12 | )
Total net revenue | $ | 1,298 |  |  | $ | 575 |  |  | $ | 294 |  |  | $ | 2,167 |
Segment income from operations | $ | 239 |  |  | $ | 122 |  |  | $ | 43 |  |  | $ | 404 |
Nine Months Ended July 31, 2015: |  |  |  |  |  |  |  |  |  |
Total net revenue | $ | 1,250 |  |  | $ | 558 |  |  | $ | 298 |  |  | $ | 2,106 |
Segment income from operations | $ | 240 |  |  | $ | 110 |  |  | $ | 52 |  |  | $ | 402 |
The following table reconciles reportable segments’ income from operations to our total enterprise income before taxes:
| Three Months Ended |  | Nine Months Ended
| July 31, |  | July 31,
| 2016 |  | 2015 |  | 2016 |  | 2015
| (in millions)
Total reportable segments' income from operations | $ | 140 |  |  | $ | 124 |  |  | $ | 404 |  |  | $ | 402 |
Share-based compensation expense | (10 | ) |  | (7 | ) |  | (39 | ) |  | (49 | )
Restructuring and related costs | — |  |  | (10 | ) |  | — |  |  | (10 | )
Amortization of intangibles | (12 | ) |  | (2 | ) |  | (34 | ) |  | (6 | )
Acquisition and integration costs | (4 | ) |  | (2 | ) |  | (11 | ) |  | (2 | )
Separation and related costs | (6 | ) |  | (3 | ) |  | (16 | ) |  | (15 | )
Acquisition related fair value adjustments | (3 | ) |  | — |  |  | (12 | ) |  | — |
Other | 1 |  |  | — |  |  | 7 |  |  | — |
Interest income | 1 |  |  | — |  |  | 2 |  |  | 1 |
Interest expense | (11 | ) |  | (12 | ) |  | (35 | ) |  | (35 | )
Other income (expense), net | 1 |  |  | (1 | ) |  | 2 |  |  | 1 |
Income before taxes, as reported | $ | 97 |  |  | $ | 87 |  |  | $ | 268 |  |  | $ | 287 |
The following table presents assets directly managed by each segment. Unallocated assets primarily consist of cash and cash equivalents, investments and other assets.
| Communications Solutions Group |  | Electronic Industrial Solutions Group |  | Services Solutions Group |  | Total Segments
| (in millions)
Assets: |  |  |  |  |  |  |  |  |  |
As of July 31, 2016 | $ | 1,794 |  |  | $ | 772 |  |  | $ | 274 |  |  | $ | 2,840 |
As of October 31, 2015 | $ | 1,779 |  |  | $ | 752 |  |  | $ | 265 |  |  | $ | 2,796 |

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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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