Provision for Income Taxes	9 Months Ended
Jul. 31, 2011
Provision for Income Taxes [Abstract]
Provision for Income Taxes	5. PROVISION FOR INCOME TAXES For the three and nine months ended July 31, 2011, we recorded an income tax benefit of $49 million and an income tax provision of $16 million, respectively, compared to an income tax provision of $22 million and $57 million, respectively, for the same periods last year. The income tax benefit and provision for the three and nine months ended July 31, 2011, respectively, includes net discrete tax benefits of $72 million and $55 million, respectively and are primarily associated with the recognition of previously unrecognized tax benefits and the reversal of the related interest accruals due to the reassessment of certain foreign uncertain tax positions. The income tax provision for the nine months ended July 31, 2011 also includes a $29 million out of period adjustment to reduce the carrying value of certain U.K. deferred tax assets, which was recorded in the prior quarter ended April 30, 2011. The overstatement of these deferred tax assets resulted in an overstatement of the U.K. valuation allowance release in the fourth quarter of 2010. The income tax provision for the three and nine months ended July 31, 2010 includes a net discrete tax expense netting to zero and $3 million, respectively, relating primarily to tax settlements and lapses of statutes of limitations. Without considering interest and penalties, the effective tax rate reflects taxes in all jurisdictions except the U.S. and foreign jurisdictions in which income tax expense or benefit continues to be offset by adjustments to valuation allowances. As of July 31, 2011 we intend to maintain partial or full valuation allowances in these jurisdictions until sufficient positive evidence exists to support its reversal. We currently have a valuation allowance of $334 million of which $269 million relates to U.S. jurisdictions. Due to improvements in the U.S. operating results over the past three years, management believes a reasonable possibility exists that, within the next year, sufficient positive evidence may become available to reach a conclusion that a significant portion of the U.S. valuation allowance will no longer be needed. In the U.S., tax years remain open back to the year 2006 for federal income tax purposes and the year 2000 for state purposes. In other major jurisdictions where we conduct business, the tax years generally remain open back to the year 2003. With these jurisdictions and the U.S., it is possible that there could be significant changes to our unrecognized tax benefits in the next twelve months due to either the expiration of a statute of limitation or a tax audit settlement. Because of the uncertainty as to the timing of a potential settlement or the completion of tax audits, an estimate cannot be made of the range of tax increases or decreases that could occur in the next twelve months. In December 2010, Agilent reached an agreement with the Internal Revenue Service (IRS) for tax years 2003-2005. In addition, Agilent and the IRS reached an agreement on transfer pricing issues covering years 2003-2007. Tax adjustments resulting from these agreements were offset by applying available net operating losses and tax credit carry forwards. Agilent's U.S. federal income tax returns for 2006 through 2007 are currently under audit by the IRS. As a result of these agreements with the IRS and agreements with other tax jurisdictions, unrecognized tax benefits were reduced from $656 million at October 31, 2010 to $489 million at July 31, 2011.

5. PROVISION FOR INCOME TAXES

For the three and nine months ended July 31, 2011, we recorded an income tax benefit of $49 million and an income tax provision of $16 million, respectively, compared to an income tax provision of $22 million and $57 million, respectively, for the same periods last year. The income tax benefit and provision for the three and nine months ended July 31, 2011, respectively, includes net discrete tax benefits of $72 million and $55 million, respectively and are primarily associated with the recognition of previously unrecognized tax benefits and the reversal of the related interest accruals due to the reassessment of certain foreign uncertain tax positions. The income tax provision for the nine months ended July 31, 2011 also includes a $29 million out of period adjustment to reduce the carrying value of certain U.K. deferred tax assets, which was recorded in the prior quarter ended April 30, 2011. The overstatement of these deferred tax assets resulted in an overstatement of the U.K. valuation allowance release in the fourth quarter of 2010.

The income tax provision for the three and nine months ended July 31, 2010 includes a net discrete tax expense netting to zero and $3 million, respectively, relating primarily to tax settlements and lapses of statutes of limitations.

Without considering interest and penalties, the effective tax rate reflects taxes in all jurisdictions except the U.S. and foreign jurisdictions in which income tax expense or benefit continues to be offset by adjustments to valuation allowances. As of July 31, 2011 we intend to maintain partial or full valuation allowances in these jurisdictions until sufficient positive evidence exists to support its reversal. We currently have a valuation allowance of $334 million of which $269 million relates to U.S. jurisdictions. Due to improvements in the U.S. operating results over the past three years, management believes a reasonable possibility exists that, within the next year, sufficient positive evidence may become available to reach a conclusion that a significant portion of the U.S. valuation allowance will no longer be needed.

In the U.S., tax years remain open back to the year 2006 for federal income tax purposes and the year 2000 for state purposes. In other major jurisdictions where we conduct business, the tax years generally remain open back to the year 2003. With these jurisdictions and the U.S., it is possible that there could be significant changes to our unrecognized tax benefits in the next twelve months due to either the expiration of a statute of limitation or a tax audit settlement. Because of the uncertainty as to the timing of a potential settlement or the completion of tax audits, an estimate cannot be made of the range of tax increases or decreases that could occur in the next twelve months.

In December 2010, Agilent reached an agreement with the Internal Revenue Service (IRS) for tax years 2003-2005. In addition, Agilent and the IRS reached an agreement on transfer pricing issues covering years 2003-2007. Tax adjustments resulting from these agreements were offset by applying available net operating losses and tax credit carry forwards. Agilent's U.S. federal income tax returns for 2006 through 2007 are currently under audit by the IRS. As a result of these agreements with the IRS and agreements with other tax jurisdictions, unrecognized tax benefits were reduced from $656 million at October 31, 2010 to $489 million at July 31, 2011.