WARRANTY, COMMITMENTS AND CONTINGENCIES

6 Months Ended

Apr. 30, 2019

Commitments and Contingencies Disclosure [Abstract]

Standard Warranty

The Keysight warranty on products sold through direct sales channel is primarily one year. Warranties for products sold through distribution channels continue to be primarily three years. We accrue for standard warranty costs based on historical trends in warranty charges. The accrual is reviewed regularly and periodically adjusted to reflect changes in warranty cost estimates. Estimated warranty charges are recorded within cost of products at the time related product revenue is recognized.

Activity related to the standard warranty accrual, which is included in other accrued and other long-term liabilities in our condensed consolidated balance sheet, is as follows:



	Six Months Ended
	April 30,
	2019			2018
	(in millions)
Beginning balance	$	45		$	45
Accruals for warranties including change in estimate	15			18
Settlements made during the period	(18		)	(17		)
Ending balance	$	42		$	46

Accruals for warranties due within one year	$	24		$	26
Accruals for warranties due after one year	18			20
Ending balance	$	42		$	46

Commitments

During the six months ended April 30, 2019, there were no material changes to the operating and capital lease commitments reported in the company’s 2018 Annual Report on Form 10-K.

Contingencies

We are involved in lawsuits, claims, investigations and proceedings, including, but not limited to, patent, commercial and environmental matters, which arise in the ordinary course of business. There are no matters pending that we currently believe are reasonably possible of having a material impact to our business, consolidated financial condition, results of operations or cash flows.