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SHARE-BASED COMPENSATION (Tables)

12 Months Ended

Oct. 31, 2013

Allocated Share-based compensation expense disclosure

The impact on our results for share-based compensation was as follows:



	Years Ended October 31,
	2013		2012		2011
	(in millions)
Cost of products and services	$	20	$	16	$	16
Research and development	12		10		10
Selling, general and administrative	56		50		47
Total share-based compensation expense	$	88	$	76	$	73

Share-based compensation arrangement by share-based payment award fair value assumptions and methodology schedule

The following assumptions were used to estimate the fair value of employee stock options and LTPP grants.



	Years Ended October 31,
	2013	2012	2011
Stock Option Plans:
Weighted average risk-free interest rate	0.86%	0.88%	1.49%
Dividend yield	1%	0%	0%
Weighted average volatility	39%	38%	35%
Expected life	5.8 years	5.8 years	5.8 years
LTPP:
Volatility of Agilent shares	37%	41%	40%
Volatility of selected peer-company shares	6%-64%	17%-75%	20%-76%
Price-wise correlation with selected peers	49%	62%	55%

Summary of stock option award activity

The following table summarizes employee stock option award activity made to our employees and directors for 2013:



	Options Outstanding		Weighted Average Exercise Price
	(in thousands)
Outstanding at October 31, 2012	12,077		$	30
Granted	1,596		$	36
Exercised	(4,037	)	$	28
Cancelled/Forfeited/Expired	(27	)	$	17
Outstanding at October 31, 2013	9,609		$	32

Forfeited and expired options from total cancellations in 2013 were as follows:



	Options Cancelled	Weighted Average Exercise Price
	(in thousands)
Forfeited	—	$	—
Expired	27	$	17
Total Options Cancelled during 2013	27	$	17

Schedule of share-based compensation, shares authorized under stock option plans, by exercise price range

The options outstanding and exercisable for equity share-based payment awards at October 31, 2013 were as follows:



	Options Outstanding						Options Exercisable
Range of Exercise Prices	Number Outstanding	Weighted Average Remaining Contractual Life	Weighted Average Exercise Price		Aggregate Intrinsic Value		Number Exercisable	Weighted Average Remaining Contractual Life	Weighted Average Exercise Price		Aggregate Intrinsic Value
	(in thousands)	(in years)			(in thousands)		(in thousands)	(in years)			(in thousands)
$0 - 25	1,507	2.4	$	20	$	45,750	1,507	2.4	$	20	$	45,750
$25.01 - 30	1,051	5.9	$	29	22,418		691	5.8	$	29	14,727
$30.01 - 40	7,045	5.6	$	35	112,829		3,870	3.4	$	34	66,448
$40.01 & over	6	8.4	$	45	33		1	8.4	$	45	8
	9,609	5.1	$	32	$	181,030	6,069	3.4	$	30	$	126,933

Schedule of intrinsic value of options exercised and the fair value of options granted

The following table summarizes the aggregate intrinsic value of options exercised and the fair value of options granted in 2013, 2012 and 2011:



	Aggregate Intrinsic Value		Weighted Average Exercise Price		Per Share Value Using Black-Scholes Model
	(in thousands)
Options exercised in fiscal 2011	$	164,738	$	27
Black-Scholes per share value of options granted during fiscal 2011					$	12
Options exercised in fiscal 2012	$	38,188	$	23
Black-Scholes per share value of options granted during fiscal 2012					$	14
Options exercised in fiscal 2013	$	71,499	$	28
Black-Scholes per share value of options granted during fiscal 2013					$	12

Non-vested award activity disclosure

The following table summarizes non-vested award activity in 2013 primarily for our LTPP and restricted stock unit awards:



	Shares		Weighted Average Grant Price
	(in thousands)
Non-vested at October 31, 2012	3,514		$	35
Granted	1,394		$	38
Vested	(1,251	)	$	35
Forfeited	(76	)	$	38
Change in LTPP shares vested in the year due to performance conditions	(35	)	$	36
Non-vested at October 31, 2013	3,546		$	37

- Definition

Tabular disclosure of components of a stock option or other award plan under which equity-based compensation is awarded to employees, typically comprised of the amount of unearned compensation (deferred compensation cost), compensation expense, and changes in the quantity and fair value of the shares (or other type of equity) granted, exercised, forfeited, and issued and outstanding pertaining to that plan. Disclosure may also include nature and general terms of such arrangements that existed during the period and potential effects of those arrangements on shareholders, effect of compensation cost arising from equity-based payment arrangements on the income statement, method of estimating the fair value of the goods or services received, or the fair value of the equity instruments granted, during the period, cash flow effects resulting from equity-based payment arrangements and, for registrants that accelerate vesting of out of the money share options, reasons for the decision to accelerate.

+ References+ Details