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RETIREMENT PLANS AND POST RETIREMENT PENSION PLANS (Tables)
12 Months Ended
Oct. 31, 2016
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract]  
Schedule of net pension and post-retirement benefit costs
For the years ended October 31, 2016, 2015 and 2014, components of net periodic benefit cost and other amounts recognized in other comprehensive income were comprised of:
 
Pensions
 
U.S. Post-Retirement Benefit Plans
 
U.S. Plans
 
Non-U.S. Plans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2016
 
2015
 
2014
 
2016
 
2015
 
2014
 
2016
 
2015
 
2014
 
(in millions)
Net periodic benefit cost (benefit)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Service cost — benefits earned during the period
$
12

 
$
25

 
$
46

 
$
19

 
$
18

 
$
36

 
$
1

 
$
2

 
$
3

Interest cost on benefit obligation
16

 
14

 
34

 
16

 
23

 
74

 
4

 
4

 
12

Expected return on plan assets
(25
)
 
(27
)
 
(64
)
 
(44
)
 
(42
)
 
(118
)
 
(7
)
 
(8
)
 
(22
)
Amortization of net actuarial loss
3

 
3

 
1

 
27

 
25

 
48

 
10

 
6

 
14

Amortization of prior service benefit
(3
)
 
(5
)
 
(12
)
 

 

 
(1
)
 
(10
)
 
(12
)
 
(35
)
Total periodic benefit cost (benefit)
$
3

 
$
10

 
$
5

 
$
18

 
$
24

 
$
39

 
$
(2
)
 
$
(8
)
 
$
(28
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Summary of total periodic benefit cost (benefit):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Continuing operations
$
3

 
$
10

 
$
2

 
$
18

 
$
24

 
$
27

 
$
(2
)
 
$
(8
)
 
$
(14
)
Discontinued operations

 

 
3

 

 

 
12

 

 

 
(14
)
Total periodic benefit cost (benefit)
$
3

 
$
10

 
$
5

 
$
18

 
$
24

 
$
39

 
$
(2
)
 
$
(8
)
 
$
(28
)
Curtailments and settlements
$
(16
)
 
$

 
$

 
$

 
$

 
$

 
$

 
$

 
$

Other changes in plan assets and benefit obligations recognized in other comprehensive (income) loss
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net actuarial (gain) loss
$
22

 
$
44

 
$
86

 
$
149

 
$
32

 
$
173

 
$
3

 
$
16

 
$
12

Amortization of net actuarial loss
(3
)
 
(3
)
 
(1
)
 
(27
)
 
(25
)
 
(48
)
 
(10
)
 
(6
)
 
(14
)
Prior service cost (benefit)
15

 

 

 

 

 
(2
)
 
(7
)
 

 

Amortization of prior service benefit
3

 
5

 
12

 

 

 
1

 
10

 
12

 
35

Foreign currency

 

 

 
(3
)
 
10

 
(28
)
 

 

 

Total recognized in other comprehensive (income) loss
$
37

 
$
46

 
$
97

 
$
119

 
$
17

 
$
96

 
$
(4
)
 
$
22

 
$
33

Total recognized in net periodic benefit cost (benefit) and other comprehensive (income) loss
$
24

 
$
56

 
$
102

 
$
137

 
$
41

 
$
135

 
$
(6
)
 
$
14

 
$
5

Change in fair value of plan assets
Funded status.    As of October 31, 2016 and 2015, the funded status of the defined benefit and post-retirement benefit plans was:



 
U.S. Defined
Benefit Plans
 
Non-U.S. Defined
Benefit Plans
 
U.S.
Post-Retirement
Benefit Plans
 
2016
 
2015
 
2016
 
2015
 
2016
 
2015
 
(in millions)
Change in fair value of plan assets:
 
 
 
 
 
 
 
 
 
 
 
Fair value — beginning of year
$
347

 
$
837

 
$
778

 
$
2,108

 
$
91

 
$
284

Actual return on plan assets
13

 
6

 
25

 
53

 
3

 
2

Employer contributions

 
15

 
24

 
25

 

 

Participants' contributions

 

 
1

 
1

 

 

Benefits paid
(19
)
 
(21
)
 
(27
)
 
(20
)
 
(6
)
 
(8
)
Transfer due to Keysight separation

 
(490
)
 

 
(1,327
)
 

 
(187
)
Currency impact

 

 
(27
)
 
(62
)
 

 

Fair value — end of year
$
341

 
$
347

 
$
774

 
$
778

 
$
88

 
$
91

Change in benefit obligation
 
U.S. Defined
Benefit Plans
 
Non-U.S. Defined
Benefit Plans
 
U.S.
Post-Retirement
Benefit Plans
 
2016
 
2015
 
2016
 
2015
 
2016
 
2015
 
(in millions)
Change in benefit obligation:
 
 
 
 
 
 
 
 
 
 
 
Benefit obligation — beginning of year
$
415

 
$
889

 
$
900

 
$
2,344

 
$
112

 
$
309

Service cost
12

 
25

 
19

 
18

 
1

 
2

Interest cost
16

 
14

 
16

 
23

 
4

 
4

Participants' contributions

 

 
1

 
1

 

 

Plan amendment

 

 

 

 
(7
)
 

Actuarial (gain) loss
41

 
23

 
130

 
40

 
(1
)
 
11

Benefits paid
(20
)
 
(22
)
 
(27
)
 
(20
)
 
(6
)
 
(8
)
Curtailments
(30
)
 

 

 

 

 

Transfer due to Keysight separation

 
(514
)
 

 
(1,429
)
 

 
(206
)
Currency impact

 

 
(37
)
 
(77
)
 

 

Benefit obligation — end of year
$
434

 
$
415

 
$
1,002

 
$
900

 
$
103

 
$
112

Overfunded (underfunded) status of PBO
$
(93
)
 
$
(68
)
 
$
(228
)
 
$
(122
)
 
$
(15
)
 
$
(21
)
Amounts recognized in the consolidated balance sheet
 
U.S. Defined
Benefit Plans
 
Non-U.S. Defined
Benefit Plans
 
U.S.
Post-Retirement
Benefit Plans
 
2016
 
2015
 
2016
 
2015
 
2016
 
2015
 
(in millions)
Amounts recognized in the consolidated balance sheet consist of:
 
 
 
 
 
 
 
 
 
 
 
Other assets
$

 
$

 
$
1

 
$
26

 
$

 
$

Employee compensation and benefits
(1
)
 
(2
)
 

 

 

 

Retirement and post-retirement benefits
(92
)
 
(66
)
 
(229
)
 
(148
)
 
(15
)
 
(21
)
Total net asset (liability)
$
(93
)
 
$
(68
)
 
$
(228
)
 
$
(122
)
 
$
(15
)
 
$
(21
)
Amounts recognized in accumulated other comprehensive income (loss)
 
U.S. Defined
Benefit Plans
 
Non-U.S. Defined
Benefit Plans
 
U.S.
Post-Retirement
Benefit Plans
 
2016
 
2015
 
2016
 
2015
 
2016
 
2015
Amounts Recognized in Accumulated Other Comprehensive Income (loss):
 
 
 
 
 
 
 
 
 
 
 
Actuarial (gains) losses
$
93

 
$
73

 
$
375

 
$
256

 
$
41

 
$
49

Prior service costs (benefits)

 
(18
)
 

 

 
(37
)
 
(40
)
Total
$
93

 
$
55

 
$
375

 
$
256

 
$
4

 
$
9

Fair value of plan assets and Benefit obligation transferred to Keysight
In connection with the separation of Keysight Technologies on November 1, 2014, Agilent transferred certain liabilities and assets of the U.S. and Non-U.S. defined benefit pension plans, and U.S. Post-Retirement Benefit Plans to similar plans created for Keysight Technologies employees. Total transfers are as follows:

 
U.S. Defined
Benefit Plans
 
Non-U.S. Defined
Benefit Plans
 
U.S. Post-Retirement
Benefit Plans
 
(in millions)
Fair value of plan assets transferred to Keysight
$
490

 
$
1,327

 
$
187

Benefit obligation transferred to Keysight
$
514

 
$
1,429

 
$
206

Amounts in accumulated other comprehensive income expected to be recognized as components of net expense during the next fiscal year
The amounts in accumulated other comprehensive income expected to be recognized by Agilent as components of net expense during 2017 are as follows:
 
U.S. Defined
Benefit Plans
 
Non-U.S. Defined
Benefit Plans
 
U.S. Post-Retirement
Benefit Plans
 
(in millions)
Amortization of net prior service cost (benefit)
$

 
$

 
$
(9
)
Amortization of actuarial net loss (gain)
$
3

 
$
35

 
$
11

Defined benefit plan assets by fair value hierarchy
The following tables present the fair value of U.S. Defined Benefit Plans assets classified under the appropriate level of the fair value hierarchy as of October 31, 2016 and 2015.

 
 
 
Fair Value Measurement
at October 31, 2016 Using
 
October 31,
2016
 
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
(in millions)
Cash and Cash Equivalents
$
4

 
$
1

 
$
3

 
$

Equity
248

 
62

 
186

 

Fixed Income
80

 
24

 
56

 

Other Investments
9

 

 

 
9

Total assets measured at fair value
$
341

 
$
87

 
$
245

 
$
9



 
 
 
Fair Value Measurement
at October 31, 2015 Using
 
October 31,
2015
 
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
(in millions)
Cash and Cash Equivalents
$
3

 
$
1

 
$
2

 
$

Equity
258

 
61

 
197

 

Fixed Income
76

 
22

 
54

 

Other Investments
10

 

 
1

 
9

Total assets measured at fair value
$
347

 
$
84

 
$
254

 
$
9


The following tables present the fair value of U.S. Post-Retirement Benefit Plans assets classified under the appropriate level of the fair value hierarchy as of October 31, 2016 and 2015.
.

 
 
 
Fair Value Measurement at
October 31, 2016 Using
 
October 31,
2016
 
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
(in millions)
Cash and Cash Equivalents
$
3

 
$
2

 
$
1

 
$

Equity
59

 
15

 
44

 

Fixed Income
21

 
6

 
15

 

Other Investments
5

 

 

 
5

Total assets measured at fair value
$
88

 
$
23

 
$
60

 
$
5


 
 
 
Fair Value Measurement
at October 31, 2015 Using
 
October 31,
2015
 
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
(in millions)
Cash and Cash Equivalents
$
3

 
$
2

 
$
1

 
$

Equity
62

 
15

 
47

 

Fixed Income
20

 
6

 
14

 

Other Investments
6

 

 

 
6

Total assets measured at fair value
$
91

 
$
23

 
$
62

 
$
6

 
 
 
 
 
 
 
 

The following tables present the fair value of non-U.S. Defined Benefit Plans assets classified under the appropriate level of the fair value hierarchy as of October 31, 2016 and 2015:

 
 
 
Fair Value Measurement
at October 31, 2016 Using
 
October 31,
2016
 
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
(in millions)
Cash and Cash Equivalents
$
26

 
$
18

 
$
8

 
$

Equity
422

 
156

 
266

 

Fixed Income
325

 
9

 
316

 

Other Investments
1

 

 
1

 

Total assets measured at fair value
$
774

 
$
183

 
$
591

 
$




 
 
 
Fair Value Measurement
at October 31, 2015 Using
 
October 31,
2015
 
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
(in millions)
Cash and Cash Equivalents
$
3

 
$
1

 
$
2

 
$

Equity
396

 
172

 
224

 

Fixed Income
379

 
13

 
366

 

Other Investments

 

 

 

Total assets measured at fair value
$
778

 
$
186

 
$
592

 
$

Defined benefit plans assets measured at fair value using significant unobservable inputs (level 3)
For U.S. Defined Benefit Plans assets measured at fair value using significant unobservable inputs (level 3), the following table summarizes the change in balances during 2016 and 2015 for continuing operations:

 
Years Ended
October 31.
 
2016
 
2015
Balance, beginning of year
$
9

 
$
14

Realized gains/(losses)

 
(1
)
Unrealized gains/(losses)
3

 
(2
)
Purchases, sales, issuances, and settlements
(3
)
 
(2
)
Transfers in (out)

 

Balance, end of year
$
9

 
$
9


For U.S. Post-Retirement Benefit Plans assets measured at fair value using significant unobservable inputs (level 3), the following table summarizes the change in balances during 2016 and 2015 for continuing operations:

 
Years Ended
October 31,
 
2016
 
2015
Balance, beginning of year
$
6

 
$
8

Realized gains/(losses)

 
(1
)
Unrealized gains/(losses)
1

 

Purchases, sales, issuances, and settlements
(2
)
 
(1
)
Transfers in (out)

 

 
$
5

 
$
6



For non-U.S. Defined Benefit Plans, assets measured at fair value using significant unobservable inputs (level 3), the following table summarizes the changes in balances during 2016 and 2015 for continuing operations:

 
 
Year Ended

 
 
October 31, 2015
Balance, beginning of year
 
$
4

Realized gains/(losses)
 
1

Unrealized gains/(losses)
 

Purchases, sales, issuances, and settlements
 
(5
)
Transfers in (out)
 

Balance, end of year
 
$

Combined projected benefit obligation, accumulated benefit obligations and fair value of plan assets
The table below presents the combined projected benefit obligation ("PBO"), accumulated benefit obligation ("ABO") and fair value of plan assets, grouping plans using comparisons of the PBO and ABO relative to the plan assets for continuing operations as of October 31, 2016 or 2015.
 
2016
 
2015
 
Benefit
Obligation
 
 
 
Benefit
Obligation
 
 
 
Fair Value of
Plan Assets
 
Fair Value of
Plan Assets
 
PBO
 
PBO
 
 
(in millions)
U.S. defined benefit plans where PBO exceeds the fair value of plan assets
$
434

 
$
341

 
$
415

 
$
347

U.S. defined benefit plans where fair value of plan assets exceeds PBO

 

 

 

Total
$
434

 
$
341

 
$
415

 
$
347

 
 
 
 
 
 
 
 
Non-U.S. defined benefit plans where PBO exceeds or is equal to the fair value of plan assets
$
970

 
$
741

 
$
771

 
$
623

Non-U.S. defined benefit plans where fair value of plan assets exceeds PBO
32

 
33

 
129

 
155

Total
$
1,002

 
$
774

 
$
900

 
$
778

 
 
 
 
 
 
 
 
 
ABO
 
 
 
ABO
 
 
U.S. defined benefit plans where ABO exceeds the fair value of plan assets
$
434

 
$
341

 
$
389

 
$
347

U.S. defined benefit plans where the fair value of plan assets exceeds ABO

 

 

 

Total
$
434

 
$
341

 
$
389

 
$
347

 
 
 
 
 
 
 
 
Non-U.S. defined benefit plans where ABO exceeds or is equal to the fair value of plan assets
$
737

 
$
542

 
$
732

 
$
623

Non-U.S. defined benefit plans where fair value of plan assets exceeds ABO
226

 
232

 
127

 
155

Total
$
963

 
$
774

 
$
859

 
$
778

Schedule of expected benefit payments
The following table presents expected future benefit payments for the next 10 years:

 
U.S. Defined
Benefit Plans
 
Non-U.S. Defined
Benefit Plans
 
U.S. Post-Retirement
Benefit Plans
 
(in millions)
2017
$
27

 
$
48

 
$
8

2018
$
25

 
$
22

 
$
8

2019
$
26

 
$
24

 
$
8

2020
$
28

 
$
25

 
$
7

2021
$
27

 
$
27

 
$
7

2022 - 2026
$
137

 
$
168

 
$
35

Assumptions used to calculate the net periodic cost and benefit obligation
Assumptions used to calculate the net periodic cost in each year were as follows:

 
For years ended October 31,
 
2016
 
2015
 
2014
U.S. defined benefit plans:
 
 
 
 
 
Discount rate
4.20%
 
4.00%
 
4.00-4.50%
Average increase in compensation levels
3.50%
 
3.50%
 
3.50%
Expected long-term return on assets
7.50%
 
8.00%
 
8.00%
Non-U.S. defined benefit plans:
 
 
 
 
 
Discount rate
0.77-3.76%
 
1.50-4.00%
 
1.50-4.50%
Average increase in compensation levels
2.25-4.00%
 
2.50-3.25%
 
2.50-3.25%
Expected long-term return on assets
4.25-6.50%
 
4.00-6.50%
 
4.00-6.50%
U.S. post-retirement benefits plans:
 
 
 
 
 
Discount rate
4.00%
 
4.00%
 
4.00-4.25%
Expected long-term return on assets
7.50%
 
8.00%
 
8.00%
Current medical cost trend rate
7.00%
 
8.00%
 
8.00%
Ultimate medical cost trend rate
3.50%
 
3.50%
 
3.50%
Medical cost trend rate decreases to ultimate rate in year
2029
 
2028
 
2028

Assumptions used to calculate the benefit obligation were as follows:

 
As of the Years Ending October 31,
 
2016
 
2015
U.S. defined benefit plans:
 
 
 
Discount rate
3.75%
 
4.20%
Average increase in compensation levels
N/A
 
3.50%
Non-U.S. defined benefit plans:
 
 
 
Discount rate
0.40-2.62%
 
0.77-3.76%
Average increase in compensation levels
2.00-4.25%
 
2.25-4.00%
U.S. post-retirement benefits plans:
 
 
 
Discount rate
3.50%
 
4.00%
Current medical cost trend rate
6.00%
 
7.00%
Ultimate medical cost trend rate
3.50%
 
3.50%
Medical cost trend rate decreases to ultimate rate in year
2029
 
2029