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SHARE-BASED COMPENSATION | 6 Months Ended
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Apr. 30, 2019
Share-based Compensation [Abstract] |
SHARE-BASED COMPENSATION | SHARE-BASED COMPENSATION Keysight accounts for share-based awards in accordance with the provisions of the authoritative accounting guidance, which requires the measurement and recognition of compensation expense for all share-based payment awards made to our employees and directors, including employee stock option awards, restricted stock units ("RSUs"), employee stock purchases made under our Employee Stock Purchase Plan (“ESPP”) and performance share awards granted to selected members of our senior management under the Long-Term Performance (“LTP”) Program based on estimated fair values. The impact of share-based compensation on our results was as follows:
| Three Months Ended |  | Six Months Ended
| April 30, |  | April 30,
| 2019 |  | 2018 |  | 2019 |  | 2018
| (in millions)
Cost of products and services | $ | 5 |  |  | $ | 4 |  |  | $ | 9 |  |  | $ | 7 |
Research and development | 3 |  |  | 2 |  |  | 9 |  |  | 6 |
Selling, general and administrative | 15 |  |  | 9 |  |  | 32 |  |  | 21 |
Total share-based compensation expense | $ | 23 |  |  | $ | 15 |  |  | $ | 50 |  |  | $ | 34 |
The expense for the three and six months ended April 30, 2019 includes a mark-to-market adjustment of $4 million for financial metrics-based performance awards. At both April 30, 2019 and 2018, there was no share-based compensation capitalized within inventory. The following assumptions were used to estimate the fair value of awards granted under the LTP Program that are based on total shareholder return ("TSR"):
| Three Months Ended |  | Six Months Ended
| April 30, |  | April 30,
| 2019 |  | 2018 |  | 2019 |  | 2018
Volatility of Keysight shares | 26 | % |  | 25 | % |  | 25 | % |  | 25 | %
Volatility of selected index | 13 | % |  | 14 | % |  | 12 | % |  | 14 | %
Price-wise correlation with selected peers | 57 | % |  | 57 | % |  | 57 | % |  | 57 | %
The TSR-based performance awards were valued using a Monte Carlo simulation model, which requires the use of highly subjective and complex assumptions, including the price volatility of the underlying stock. The estimated fair value of restricted stock awards and the financial metrics-based performance awards is determined based on the market price of Keysight’s common stock on the grant date. We did not grant any option awards for the three and six months ended April 30, 2019 and 2018, respectively.

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- Definition The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -URI http://asc.fasb.org/subtopic&trid=2208855 + Details
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