-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, T6yhnInaBXI1n+O4j1JiQ0OEeYUxt6srjsUNqKkeuB+b9YzmV6oCYUaTWZ8hR3vx DW2JOkQM4okHjLi86+VT5Q== 0001140361-09-022500.txt : 20091005 0001140361-09-022500.hdr.sgml : 20091005 20091005131645 ACCESSION NUMBER: 0001140361-09-022500 CONFORMED SUBMISSION TYPE: 10-Q/A PUBLIC DOCUMENT COUNT: 33 CONFORMED PERIOD OF REPORT: 20090731 FILED AS OF DATE: 20091005 DATE AS OF CHANGE: 20091005 FILER: COMPANY DATA: COMPANY CONFORMED NAME: AGILENT TECHNOLOGIES INC CENTRAL INDEX KEY: 0001090872 STANDARD INDUSTRIAL CLASSIFICATION: INSTRUMENTS FOR MEAS & TESTING OF ELECTRICITY & ELEC SIGNALS [3825] IRS NUMBER: 770518772 STATE OF INCORPORATION: DE FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: 10-Q/A SEC ACT: 1934 Act SEC FILE NUMBER: 001-15405 FILM NUMBER: 091104881 BUSINESS ADDRESS: STREET 1: 5301 STEVENS CREEK BLVD CITY: SANTA CLARA STATE: CA ZIP: 95051 BUSINESS PHONE: 408-345-8647 MAIL ADDRESS: STREET 1: 5301 STEVENS CREEK BLVD, MS 1A-LC STREET 2: P.O. BOX 58059 CITY: SANTA CLARA STATE: CA ZIP: 95052-8059 FORMER COMPANY: FORMER CONFORMED NAME: HP MEASUREMENT INC DATE OF NAME CHANGE: 19990716 10-Q/A 1 form10qa.htm AGILENT TECHNOLOGIES INC 10-Q A 7-31-2009 form10qa.htm


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 10-Q/A
(Amendment No. 1)

(MARK ONE)

 
x
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

FOR THE QUARTERLY PERIOD ENDED JULY 31, 2009

OR

 
o
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

FOR THE TRANSITION PERIOD FROM              TO            

COMMISSION FILE NUMBER:  001-15405

AGILENT TECHNOLOGIES, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)

DELAWARE
77-0518772
(State or other jurisdiction of incorporation or organization)
(IRS employer Identification no.)
   
5301 STEVENS CREEK BLVD.,
 
SANTA CLARA, CALIFORNIA
95051
(Address of principal executive offices)
(Zip Code)

Registrant’s telephone number, including area code: (408) 553-2424

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by section 13 or 15(d) of the securities exchange act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes  x   No  o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes x    No  o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in rule 12b-2 of the exchange act.

Large accelerated filer  x
Accelerated filer  o
Non-accelerated filer  o
Smaller reporting company o
(do not check if a smaller reporting company)
 

Indicate by check mark whether the registrant is a shell company (as defined in rule 12b-2 of the exchange act).  Yes  o   No  x

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

CLASS
 
OUTSTANDING AT JULY 31, 2009
COMMON STOCK, $0.01 PAR VALUE
 
345,112,058 SHARES
 


 
 

 
TABLE OF CONTENTS

Part II.
Item 6.
Ex-101 Instance Document
Ex-101 Schema Document
Ex-101 Calculation Linkbase Document
Ex-101 Labels Linkbase Document
Ex-101 Presentation Linkbase Document
Ex-101 Definition Linkbase Document


Explanatory Note

Agilent Technologies, Inc. is filing this Amendment No. 1 (the “Form 10-Q/A”) to our Quarterly Report on Form 10-Q for the quarter ended July 31, 2009 (the “Form 10-Q”), filed with the U.S. Securities Exchange Commission on September 4, 2009, for the sole purpose of furnishing the Interactive Data as Exhibit 101 in accordance with Rule 405(a)(2) of Regulation S-T.

No other changes have been made to the Form 10-Q.  This Form 10-Q/A continues to speak as of the original filing date of the Form 10-Q, does not reflect events that may have occurred subsequent to the original filing date, and does not modify or update any related disclosures made in the Form 10-Q.


PART II — OTHER INFORMATION

 
ITEM 6. EXHIBITS

(a) Exhibits:

A list of exhibits is set forth in the Exhibit Index found on page 5.

AGILENT TECHNOLOGIES, INC.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Dated: October  5, 2009
By:
/s/ Adrian T. Dillon
   
Adrian T. Dillon
   
Executive Vice President,
   
Finance and Administration, Chief Financial Officer
   
(Principal Financial Officer)
     
     
Dated: October 5, 2009
By:
/s/ Didier Hirsch
   
Didier Hirsch
   
Vice President, Corporate Controllership and Tax
   
(Principal Accounting Officer)

 
AGILENT TECHNOLOGIES, INC.

EXHIBIT INDEX

Exhibit
Number
 
Description
2.1*
 
Agreement and Plan of Merger dated as of July 26, 2009, by and among Agilent Technologies, Inc., Cobalt Acquisition Corp. and Varian, Inc.
     
11.1*
 
See Note 5, “Net Income Per Share”, to our Condensed Consolidated Financial Statements on page 11.
     
31.1*
 
Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
     
31.2*
 
Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
     
32.1†
 
Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
     
32.2†
 
Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
     
101.INS§
 
XBRL Instance Document.
     
101.SCH§
 
XBRL Taxonomy Extension Schema Document.
     
101.CAL§
 
XBRL Taxonomy Extension Calculation Linkbase Document.
     
101.LAB§
 
XBRL Taxonomy Extension Label Linkbase Document.
     
101.PRE§
 
XBRL Taxonomy Extension Presentation Linkbase Document.
     
101.DEF§
 
XBRL Taxonomy Extension Definition Linkbase Document.

*
Previously Filed.
 
Previously Furnished.
 
§
Furnished herewith. In accordance with Rule 406T of Regulation S-T, the information in these exhibits shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to liability under that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, except as expressly set forth by specific reference in such filing.
 
 

EX-101.CAL 2 a-20090731_cal.xml EXHIBIT 101 CALCULATION EX-101.LAB 3 a-20090731_lab.xml EXHIBIT 101 LABEL Overview, Basis Of Presentation And Summary Of Significant Accounting Policies [Abstract] Organization Consolidation And Presentation Of Financial Statements Disclosure Text Block Overview, Basis Of Presentation And Summary Of Significant Accounting Policies New Accounting Pronouncements [Abstract] Schedule Of New Accounting Pronouncements And Changes In Accounting Principles [Text Block] New Accounting Pronouncements Disclosure Of Compensation Related Costs Share Based Payments [Text Block] Share-Based Compensation Provision For Taxes [Abstract] Income Tax Disclosure [Text Block] Income Tax Disclosure Net Income Loss Per Share [Abstract] Earnings Per Share [Text Block] Net Income (Loss) Per Share Inventory [Abstract] Inventory Disclosure [Text Block] Inventory Goodwill And Other Intangible Assets [Abstract] Goodwill And Intangible Assets Disclosure [Text Block] Goodwill and Other Intangible Assets Fair Value Measurements [Abstract] Derivatives [Abstract] Restructuring Costs Asset Impairments And Special Charges [Abstract] Pension Plans And Other Post Retirement Benefit Plans [Abstract] Warranties [Abstract] Short Term Debt [Abstract] Senior Notes [Abstract] Long Term Debt And Long Term Restricted Cash And Cash Equivalents [Abstract] Comprehensive Income [Abstract] Stock Repurchase Program [Abstract] Segment Information [Abstract] Long Term Debt And Long Term Restricted Cash And Cash Equivalents Long-Term Debt And Long-Term Restricted Cash And Cash Equivalents Disclosure of collateralized debt obligation which is secured by cash and equivalents whose use in restricted by contractual agreement. Fair Value Disclosures [Text Block] Fair Value Measurements Derivative Instruments And Hedging Activities Disclosure [Text Block] Derivatives Schedule Of Restructuring And Related Costs [Text Block] Restructuring Costs Asset Impairments And Special Charges Pension And Other Postretirement Benefits Disclosure [Text Block] Pension Plans and Other Post Retirement Benefit Plans Product Warranty Disclosure [Text Block] Warranties Short Term Debt [Text Block] Short-Term Debt Long Term Debt [Text Block] Senior Notes Comprehensive Income Note [Text Block] Comprehensive Income Schedule Of Treasury Stock By Class [Text Block] Stock Repurchase Program Segment Reporting Disclosure [Text Block] Segment Information Statement of Financial Position [Abstract] Statement [Table] Statement [Line Items] Assets [Abstract] Assets, Current [Abstract] Current assets: Cash and Cash Equivalents, at Carrying Value Cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period Short-term Investments Short-term investments Accounts Receivable, Net, Current Accounts receivable, net Inventory, Net Inventory Restricted Cash and Cash Equivalents, Current Current restricted cash and cash equivalents Other Assets, Current Other current assets Assets, Current Total current assets Total current assets Property, Plant and Equipment, Net Property, plant and equipment, net Goodwill Goodwill Intangible Assets, Net (Excluding Goodwill) Other intangible assets, net Restricted Cash and Cash Equivalents, Noncurrent Restricted cash and cash equivalents Long-term Investments Long-term investments Other Assets, Noncurrent other long-term assets Assets Total assets Total assets Liabilities and Stockholders' Equity [Abstract] Liabilities, Current [Abstract] Current liabilities: Accounts Payable, Current Accounts payable Employee-related Liabilities, Current Employee compensation and benefits Deferred Revenue, Current Deferred revenue Accrued Income Taxes, Current Income and other taxes payable Short-term Borrowings Short-term debt Other Liabilities, Current Other accrued liabilities Liabilities, Current Total current liabilities Total current liabilities Long Term Debt Noncurrent Long-term debt Long-term Debt, Excluding Current Maturities Senior notes Pension and Other Postretirement Defined Benefit Plans, Liabilities, Noncurrent Retirement and post-retirement benefits Other Liabilities, Noncurrent Other long-term liabilities Liabilities Total liabilities Total liabilities Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest [Abstract] Stockholders' equity: Commitments and Contingencies Commitments and Contingencies Preferred Stock, Value, Issued Preferred stock; $0.01 par value; 125 million shares authorized; none issued and outstanding Common Stock, Value, Issued Common stock; $0.01 par value; 2 billion shares authorized; 565 million shares at July 31, 2009 and 561 million shares at October 31, 2008 issued Treasury Stock, Value Treasury stock at cost Treasury stock at cost; 220 million shares at July 31, 2009 and 211 million shares at October 31, 2008 Retained Earnings (Accumulated Deficit) Retained earnings Additional Paid in Capital Additional paid-in-capital Accumulated Other Comprehensive Income (Loss), Net of Tax Accumulated other comprehensive loss Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest Total stockholders' equity Total stockholders' equity Liabilities and Stockholders' Equity Total liabilities and stockholders' equity Total liabilities and stockholders' equity Revenues [Abstract] Net revenue: Sales Revenue, Goods, Net Products Aggregate revenue during the period from services rendered in the normal course of business, after deducting allowances and discounts, combined with revenues from the sale of other goods or rendering of other services, not elsewhere specified in the taxonomy; net of (reduced by) sales adjustments, returns, allowances, and discounts. Services And Other Services and other Sales Revenue, Net Total net revenue Cost of Revenue [Abstract] Costs and expenses: Cost of Goods Sold Cost of products Cost Of Services And Other Cost of services and other Total costs related to services rendered by an entity during the reporting period, combined with the other costs incurred during the reporting period related to other revenue generating activities. Cost of Revenue Total costs Research and Development Expense Researchand development Selling, General and Administrative Expense Selling, general and administrative Gain (Loss) on Disposition of Property Gain on sale of Palo Alto and San Jose sites Operating Costs and Expenses Total costs and expenses Operating Income (Loss) Income (loss) from operations Investment Income, Interest Interest income Interest Expense, Deposits Interest expense Interest expense Other Nonoperating Income (Expense) Other income (expense), net Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Cumulative Effects of Changes in Accounting Principles, Noncontrolling Interest Income (loss) before taxes Income Tax Expense (Benefit) Provision (benefit) for income taxes Income (Loss) from Continuing Operations Attributable to Parent Income from continuing operations Net Income (Loss), Including Portion Attributable to Noncontrolling Interest Net income (loss) Net income (loss) Earnings Per Share, Basic Net income (loss) per share - 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OVERVIEW, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</font></div> </td> </tr></table> </div> &l t;div> <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent_1" width="100%" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"> <tr valign="top"> <td style="WIDTH: 12.25pt"> <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160; </font></div> </td> <td> <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div> </td> </tr></table> </div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-STYLE: italic">Overview. </font>Agilent Technologies,&#160;Inc. (&#8220;we&#8221;, &#8220; Agilent&#8221; or the &#8220;company&#8221;), incorporated in Delaware in May&#160;1999, is a measurement company, providing core bio-analytical and electronic measurement solutions to the communications, electronics, life sciences and chemical analysis industries.</font></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our fiscal year-end is October&#160;31, and our fiscal quarters end on January&#160;31, April&#160;30 and July&#160;31. Unless otherwise stated, all dates refer to our fiscal year and fiscal quarters.</font></div> <div style="DISPLAY: block; MARGIN-LEFT : 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-STYLE: italic">Proposed Acquisition of Varian,&#160;Inc.</font> On July&#160;26, 2009, Agilent, Varian,&#160;Inc. (&#8220;Varian&#8221;), and Cobalt Acquisition Corp., a direct, wholly-owned subsidiary of Agilent, entered into an Agreement and Plan of Merger (the &#8220;Merger Agreement&#8221;).&#160;Pursuant to the terms of the Merger Agreement, Varian would become a wholly-owned subsidiary of Agilent. Varian is a leading worldwide supplier of scientific instrumentation and associated consumables for life science and applied market applications. The estimated $1.5 billion total purchase price of Varian includes $52 cash per share of Varian&#8217;s common stock, the cashing out of in the money stock options (after acceleration) and assumed debt. The transaction is subject to approval by shareholders of Varian and will be completed after achieving customary closing conditions and regulatory approvals, which we expect before calendar year-end.</font></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-STYLE: italic">Revisions to Financial Statement Presentation</font>. We have revised our consolidated balance sheet as of October&a mp;#160;31, 2008 to correct an error in the classification of deferred tax assets and liabilities.&#160; This revision does not impact the consolidated statement of operations or the consolidated statement of cash flows for any period.&#160; During the April&#160;30, 2009 quarter-end process, we noted that the October&#160;31, 2008 U.S. deferred tax valuation allowances and certain deferred tax assets/deferred tax liabilities were misclassified on the balance sheet as a result of improperly applying the jurisdictional netting rules&#160;of SFAS No.&#160;109. We have therefore revised our balance sheet as of October&#160;31, 2008 by decreasing other long-term liabilities by $435 million and decreasing other long-term assets by $404 million, decreasing other current assets by $26 million and increasing other accrued liabilities by $5 million.</font></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; MARGIN-RIGHT: 0pt" align="left"& gt;<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-STYLE: italic">Basis of Presentation</font>. We have prepared the accompanying financial data for the three months and nine months ended July&#160;31, 2009 and 2008 pursuant to the rules&#160;and regulations of the Securities and Exchange Commission (&#8220;SEC&#8221;). Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles (&#8220;GAAP&#8221;) in the U.S. have been condensed or omitted pursuant to such rules&#160;and regulations. The following discussion should be read in conjunction with our 2008 Annual Report on Form &#160;10-K.</font></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In the opinion of management, the accompanying condensed consolidated financial statements contain all normal and recurring adjustments necessary to present fairly our condensed consolidated balance sheet as of July&#160;31, 2009 and October&#160;31, 2008, condensed consolidated statement of operations for the three and nine months ended July&#160;31, 2009 and 2008, and condensed consolidated statement of cash flows for the nine months ended July&#160;31, 2009 and 2008.</font></div> <div style="DISPLAY: block; MA RGIN-LEFT: 0pt; TEXT-INDENT: 27pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The preparation of condensed consolidated financial statements in accordance with GAAP in the U.S. requires management to make estimates and assumptions that affect the amounts reported in our condensed consolidated financial statements and accompanying notes. Management bases its estimates on historical experience and various other assumptions believed to be reasonable. Although these estimates are based on management&#8217;s best knowledge of current events and actions that may impact the company in the future, actual results may be different from the estimates. Our critical accounting policies are those that affect our financial statements materially and involve difficult, subjective or complex judgments by management. Those policies are revenue recognition, inventory valuation, investment impairments, share-based compensation, retirement and post-retirement benefit plan assumptions, restructuring and asset impairment charges, valuation of long-lived assets and accounting for income taxes.</font></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-STYLE: italic">Fair Value of Financial Instruments.</font> The carrying values of certain of our financial instruments including cash and cash eq uivalents, restricted cash and cash equivalents, short-term debt, accrued compensation and other accrued liabilities approximate fair value because of their short maturities.&#160; Agilent determines the fair value of short-term and long-term investments in debt securities considering information obtained from independent pricing sources. The fair value of long-term equity investments is determined using quoted market prices for those securities when available. The fair value of our long-term debt approximates the carrying value. The fair value of foreign currency contracts used for hedging purposes is estimated internally by using inputs tied to active markets. See also Note 8, &#8220;Fair Value Measurements&#8221; for additional information on the fair value of financial instruments.</font></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times N ew Roman">&#160;</font></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-STYLE: italic">Goodwill and Purchased Intangible Assets</font>. We review goodwill for impairment annually as of September&#160;30 and whenever events or changes in circumstances indicate the carrying value of an asset may not be recoverable in accordance with SFAS No.&#160;142,</font></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"&g t;&#8220;Goodwill and Other Intangible Assets&#8221; (&#8220;SFAS No.&#160;142&#8221;). &#160;&#160;The circumstances that could trigger a goodwill impairment could include, but are not limited to, the following items to the extent that management believes the occurrence of one or more would make it more likely than not that we would fail the first step of the goodwill impairment test (as described in the next paragraph): significant adverse change in legal factors or in the business climate, an adverse action or assessment by a regulator, unanticipated competition, a loss of key personnel, a more-likely-than-not expectation that a reporting unit or a significant portion of a reporting unit will be sold or otherwise disposed of, a portion of a reporting unit&#8217;s goodwill has been included in the carrying amounts of a business that will be disposed or if our market capitalization is below our net book value.</font></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The provisions of SFAS No.&#160;142 require that we perform a two-step impairment test on goodwill. In the first step, we compare the fair value of each reporting unit to its carrying value. The second step (if necessary) measures the amount of impairment by applying fair-value-based tests to the individual assets and liabilities within each reporting unit. As defined in SFAS No.&#160;142, paragraph 30, a reporting unit is an operating segment, or one level below an operating segment. In accordance with paragraph 30 of SFAS No.&#160;142, we have aggregated components of an operating segment that have simi lar economic characteristics into our reporting units. At the time of an acquisition, we assign goodwill to the reporting unit that is expected to benefit from the synergies of the combination. For the nine months ended July&#160;31, 2009, Agilent had three reporting units, which were the same as our operating segments: electronic measurement, bio-analytical measurement and semiconductor and board test.</font></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The process of evaluating the potential impairment of goodwill is highly subjective and requires significant judgment, as our businesses operate in a number of markets and geographical regions. We determine the fair value of our reporting units based on an income approach, whereby we calculate the fair value of each reporting unit based on the present value of estimated future cash flows, which are formed by evaluating historical trends, current budgets, operating plans and industry data. We evaluate the reasonableness of the fair value calculations of our reporting units by reconciling the total of the fair values of all of our reporting units to our total market capitalization, taking into account an appropriate control premium. 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The adoption of SFAS No.&#160;157 for financial assets and financial liabilities did not have a material impact on the company&#8217;s results of operations or the fair values of its financial assets and liabilities. 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SFAS No.&#160;16 1 also requires disclosures about credit risk-related contingent features in derivative agreements. SFAS No.&#160;161 is effective for fiscal years and interim periods beginning after November&#160;15, 2008 and will be applied prospectively. Effective February&#160;1, 2009 we adopted the additional disclosures required under SFAS No.&#160;161. The adoption of SFAS No.&#160;161 did not have a material impact on our condensed consolidated financial statements. 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FSP No.&#160;107-1 extends the disclosure requirements of SFAS No.&#160;107, &#8220;Disclosures about Fair Value of Financial Instruments,&#8221; to interim period financial statements, in addition to the existing requirements for annual periods and reiterates SFAS No.&#160;107&#8217;s requirement to disclose the methods and significant assumptions used to estimate fair value. FSP No.&#160;107-1 is effective for interim and annual periods ending after June&#160;15, 2009. We adopted FSP No.&#160;107-1 in the quar ter ended July&#160;31, 2009. The required disclosures are included in Note 8, &#8220;Fair Value Measurements&#8221;.</font></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In April&#160;2009, the FASB issued FSP FAS No.&#160;115-2 and FAS No.&#160;124-2, &#8220;Recognition and Presentation of Other-Than-Temporary Impairments&#8221; (&#8220;FSP No.&#160;115-2&#8221;). FSP No.&#160;115-2 establishes a new method for recognizing and reporting other-than-temporary impairment of debt securities and also contains additional disclosure requirements for both debt and equity secur ities. FSP No.&#160;115-2 is effective for interim and annual periods ending after June&#160;15, 2009. We adopted FSP No.&#160;115-2&#160;in the quarter ended July&#160;31, 2009 and there was no material impact on our condensed consolidated financial statements.</font></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In April&#160;2009, the FASB issued FSP FAS No.&#160;157-4, &#8220;Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly&#8221; (&#8220;FSP No.&#160;1 57-4&#8221;). FSP No.&#160;157-4 provides additional guidance for estimating fair value when the market activity for an asset or liability has declined significantly. FSP No.&#160;157-4 is effective for interim and annual periods ending after June&#160;15, 2009 and will be applied prospectively. We adopted FSP FAS No.&#160;157-4 in the quarter ended July&#160;31, 2009. The adoption of FSP No.&#160;157-4 did not have a significant impact on our condensed consolidated financial statements.</font></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In May&#160;2009, the FASB issued SFAS No.& #160;165, &#8220;Subsequent Events&#8221;, (&#8220;SFAS No.&#160;165&#8221;)<font style="DISPLAY: inline; FONT-STYLE: italic">&#160; </font>&#160;SFAS No.&#160;165 is intended to establish general standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued or are available to be issued.&#160; It requires the disclosure of the date through which an entity has evaluated subsequent events and the basis for that date&#8212;that is, whether that date represents the date the financial statements were issued or were available to be issued.&#160; SFAS No.&#160;165 is effective for interim and annual periods ending after June&#160;15, 2009 and shall be applied prospectively. We adopted SFAS No.&#160;165 in the quarter ended July&#160;31, 2009 and evaluated all events or transactions that occurred after July&#160;31, 2009 and up to September&#160;4, 200 9, the date we issued these financial statements. During this period, we did not have any material recognizable subsequent events that have not already been disclosed.</font></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In June&#160;2009, the FASB issued SFAS No.&#160;166, &#8220;Accounting for Transfers of Financial Assets&#8221; (&#8220;SFAS No.&#160;166&#8221;). SFAS No.&#160;166 is a revision to FASB Statement No.&#160;140, Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities, and will require more information about transfers of financi al assets, including securitization transactions, and where entities have continuing exposure to the risks related to transferred financial assets.&#160; It eliminates the concept of a &#8220;qualifying special-purpose entity,&#8221; changes the requirements for derecognizing financial assets, and requires additional disclosures. It enhances information reported to users of financial statements by providing greater transparency about transfers of financial assets and an entity&#8217;s continuing involvement in transferred financial assets.&#160; SFAS No.&#160;166 will be effective as of the beginning of the first annual reporting period that begins after November&#160;15, 2009 and will be applied prospectively. &#160;We do not expect SFAS No.&#160;166 to have a significant impact on our financial statements.</font></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY : inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In June&#160;2009, the FASB issued SFAS No.&#160;167, &#8220;Amendments to FASB Interpretation No.&#160;46(R)&#8221; (&#8220;SFAS No.&#160;167&#8221;). SFAS No.&#160;167 eliminates a required quantitative approach to determine whether a variable interest gives the entity a controlling financial interest in a variable interest entity in favor of a qualitatively focused analysis. It requires an ongoing reassessment of whether an</font></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div> &l t;div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">entity is the primary beneficiary. SFAS No.&#160;167 will be effective as of the beginning of the first annual reporting period that begins after November&#160;15, 2009 and will be applied retrospectively. &#160;We are currently evaluating the impact, if any, that the adoption of SFAS No.&#160;167 will have on our financial statements.</font></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In June&#160;2009, the FASB iss ued SFAS No.&#160;168, &#8220;The FASB Accounting Standards Codification TM&#160;and the Hierarchy of Generally Accepted Accounting Principles, a replacement of FASB Statement No.&#160;162&#8221; (&#8220;SFAS No.&#160;168&#8221;). The codification, which was launched on July&#160;1, 2009, became the single source of authoritative nongovernmental U.S. GAAP, superseding existing FASB, American Institute of Certified Public Accountants (AICPA), Emerging Issues Task Force (EITF) and related literature. The codification eliminates the GAAP hierarchy contained in SFAS No.&#160;162 and establishes one level of authoritative GAAP. All other literature is considered non-authoritative.&#160; SFAS No.&#160;168 is effective for financial statements issued for interim and annual periods ending after September&#160;15, 2009.&#160; We will adopt SFAS No.&#160;168 in the quarter ending October&#160;31, 2009. 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FONT-FAMILY: times new roman">&#160; </font></td> <td align="right" valign="bottom" width="9%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160; </font></td> <td align="left" valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160; </font></td> <td align="right" valign="bottom" width="9%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160; </font></td> <td align="left" valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160; </font>< /td> </tr><tr bgcolor="#cceeff"> <td align="left" valign="bottom" width="26%"> <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Weighted average risk-free interest rate</font></div> </td> <td align="left" valign="bottom" width="2%"><font style="DISPLAY: inline; 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FONT-SIZE: 10pt; FONT-FAMILY: times new roman">%</font></div> </td> <td align="right" valign="bottom" width="9%"> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">N/A</font></div> </td> <td align="left" valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160; </font></td> <td align="right" valign="bottom" width="9%"> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">0</font></div> </td> <td align="left" valign="bottom" width="1%"> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">%</font></div> </td> </tr><tr bgcolor="#cceeff"> <td align="left" valign="bottom" width="26%"> <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Weighted average volatility</font></div> </td> <td align="left" valign="bottom" width="2%"><font sty le="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160; </font></td> <td align="right" valign="bottom" width="9%"> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">N/A</font></div> </td> <td align="left" valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160; </font></td> <td align="right" valign="bottom" width="9%"> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">30</font></div> </td> <td align="left" valign="bottom" width="2%"> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">%</font></div> </td> <td align="right" valign="bottom" width="9%"> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">N/A</font></div> </td> <td align="left" valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160; </font></td> <td align="right" valign="bottom" width="9%"> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">31</font></div> </td > <td align="left" valign="bottom" width="1%"> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">%</font></div> </td> </tr><tr bgcolor="white"> <td align="left" valign="bottom" width="26%"> <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Expected life</font></div> </td> <td align="left" valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160; </font></td> <td align="right" valign="bottom" width="9%"> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">N/A</font></div> </td> <td align="left" valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160; </font></td> <td align="right" valign="bottom" width="9%"> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">0.5 yr</font></div> </td> <td align="left" valign="bottom" width="2%"><font style="DISPLAY: inline; 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FONT-FAMILY: times new roman">&#160; </font></td> <td align="left" valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160; </font></td> </tr><tr bgcolor="white"> <td align="left" valign="bottom" width="26%"> <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">LTPP:</font></div> </td> <td align="left" valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160; </font></td> <td align="right" valign="bottom" width="9%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160; </font></td> <td align="left" valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160; </font></td> <td align="right" valign="bottom" width="9%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160; </font></td> <td align="left" valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160; </font></td> <td align="right" valign="bottom" width="9%"><font style="DISPLAY: inline; FO NT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160; </font></td> <td align="left" valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160; </font></td> <td align="right" valign="bottom" width="9%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160; </font></td> <td align="left" valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160; </font></td> </tr><tr bgcolor="#cceeff"> <td align="left" valign="bottom" width="26%"> <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Volatility of Agilent shares</font></div> </td& gt; 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Effective November&#160;1, 2008, the Compensation Committee of the Board of Directors approved a change to our ESPP that eliminated the 24-month look back period. The ESPP continues to allow eligible employees to purchase shares of our common stock at 85&#160;percent of the purchase price, but only uses the purchase date to establish the fair market value. As a result of the change in our plan, for the three and nine months ended July&#160;31, 2009 no Black-Scholes assumptions were required in the valuation of awards granted under our current ESPP. Shares granted under the LTPP were valued using a Monte Carlo simulation model. Both the Black-Scholes and Monte Carlo simulation fair value models require the use of highly subjective and complex assumptions, including the option&#8217;s expected life and the price volatility of the underlying stock. 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The income tax benefits for the three and nine mon ths ended July&#160;31, 2009 include net discrete benefits of $25 million and $67 million, respectively, relating primarily to benefits associated with valuation allowance adjustments based on changes in other comprehensive income (&#8220;OCI&#8221;) items,&#160; lapses of statutes of limitations and tax settlements. The discrete tax benefits relating to the valuation allowance adjustments based on OCI items are $24 million and $32 million, respectively for the three and nine months ended July&#160;31, 2009. 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SFAS No.&#160;157 defines fair value, establishes a framework for measuring fair value in accordance with U.S.&#160;GAAP, and expands disclosures about fair value measurements. SFAS No.&#160;157 does not require any new fair value measurements; rather, it applies to other accounting pronouncements that require or permit fair value measurements. In February&#160;2008, the FASB issued FASB Staff Position (&#8220;FSP&#8221;) No.&#160;157-2, &#8220;Effective Date of FASB Statement No.&#160;157&#8221; (&#8220;FSP No.&#160;157-2&#8221;). FSP No.&#160;157-2 delays the effective date of SFAS No.&#160;157 for nonfinancial assets and nonfinancial liabilities, except for certain items that are recognized or disclosed at fair value in the financial statements on a recurring basis (at least annually). Effective November&#160;1, 2008, we adopted the measurement and disclosure requirements related to financial assets and financial liabilities. Th e adoption of SFAS No.&#160;157 for financial assets and financial liabilities did not have a material impact on the company&#8217;s results of operations or the fair values of its financial assets and liabilities. We will be required to apply the provisions of SFAS No.&#160;157 to nonfinancial assets and nonfinancial liabilities as of November&#160;1, 2009 and are currently evaluating the impact of the application of SFAS No.&#160;157 as it pertains to these items.</font></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In February&#160;2007, the FASB issued SFAS No.&#160;159, &#8220;The Fair Value Option for Financial Assets and Financial Liabilities&#160;&#8212; including an amendment of FAS&#160;115&#8221; (&#8220;SFAS No.&#160;159&#8221;). SFAS No.&#160;159 allows companies to choose, at specified election dates, to measure eligible financial assets and liabilities at fair value that are not otherwise required to be measured at fair value. Unrealized gains and losses shall be reported on items for which the fair value option has been elected in earnings at each subsequent reporting date. SFAS No.&#160;159 also establishes presentation and disclosure requirements. 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SFAS No.&#160;161 also requires disclosures about credit risk-related contingent features in deriv ative agreements. SFAS No.&#160;161 is effective for fiscal years and interim periods beginning after November&#160;15, 2008 and will be applied prospectively. Effective February&#160;1, 2009 we adopted the additional disclosures required under SFAS No.&#160;161. The adoption of SFAS No.&#160;161 did not have a material impact on our condensed consolidated financial statements. 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SFAS No.&#160;166 is a revision to FASB Statement No.&#160;140, Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities, and will require more information about transfers of financial assets, including securitization transactions, and where entities have continui ng exposure to the risks related to transferred financial assets.&#160; It eliminates the concept of a &#8220;qualifying special-purpose entity,&#8221; changes the requirements for derecognizing financial assets, and requires additional disclosures. 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OVERVIEW, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</font></div> </td> </tr></table> </div> <div> <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent_1" width="100%" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"> <tr valign="top"> <td style="WIDTH: 12.25pt"> <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160; </font></div> </td> <td> <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div> </td> </tr></table> </div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-STYLE: italic">Overview. </font>Agilent Technologies,&#160;Inc. (&#8220;we&#8221;, &#8220;Agilent&#8221; or the &#8220;company&#8221;), incorporated in Delaware i n May&#160;1999, is a measurement company, providing core bio-analytical and electronic measurement solutions to the communications, electronics, life sciences and chemical analysis industries.</font></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our fiscal year-end is October&#160;31, and our fiscal quarters end on January&#160;31, April&#160;30 and July&#160;31. Unless otherwise stated, all dates refer to our fiscal year and fiscal quarters.</font></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-STYLE: italic">Proposed Acquisition of Varian,&#160;Inc.</font> On July&#160;26, 2009, Agilent, Varian,&#160;Inc. (&#8220;Varian&#8221;), and Cobalt Acquisition Corp., a direct, wholly-owned subsidiary of Agilent, entered into an Agreement and Plan of Merger (the &#8220;Merger Agreement&#8221;).&#160;Pursuant to the terms of the Merger Agreement, Varian would become a wholly-owned subsidiary of Agilent. Varian is a leading worldwide supplier of scientific instrumentation and associated consumables for life science and applied market applications. The estimated $1.5 billion total purchase price of Varian includes $52 cash per share of Varian&a mp;#8217;s common stock, the cashing out of in the money stock options (after acceleration) and assumed debt. The transaction is subject to approval by shareholders of Varian and will be completed after achieving customary closing conditions and regulatory approvals, which we expect before calendar year-end.</font></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-STYLE: italic">Revisions to Financial Statement Presentation</font>. We have revised our consolidated balance sheet as of October&#160;31, 2008 to correct an error in the classification of deferred tax assets an d liabilities.&#160; This revision does not impact the consolidated statement of operations or the consolidated statement of cash flows for any period.&#160; During the April&#160;30, 2009 quarter-end process, we noted that the October&#160;31, 2008 U.S. deferred tax valuation allowances and certain deferred tax assets/deferred tax liabilities were misclassified on the balance sheet as a result of improperly applying the jurisdictional netting rules&#160;of SFAS No.&#160;109. We have therefore revised our balance sheet as of October&#160;31, 2008 by decreasing other long-term liabilities by $435 million and decreasing other long-term assets by $404 million, decreasing other current assets by $26 million and increasing other accrued liabilities by $5 million.</font></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"> ;&#160;</font></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-STYLE: italic">Basis of Presentation</font>. We have prepared the accompanying financial data for the three months and nine months ended July&#160;31, 2009 and 2008 pursuant to the rules&#160;and regulations of the Securities and Exchange Commission (&#8220;SEC&#8221;). Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles (&#8220;GAAP&#8221;) in the U.S. have been condensed or omitted pursuant to such rules&#160;and regulations. The following discussion should be read in conjunction with our 2008 Annual Report on Form&#160;10-K.</font></div> <div style="DISPLAY: block; MARGIN- LEFT: 0pt; TEXT-INDENT: 27pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In the opinion of management, the accompanying condensed consolidated financial statements contain all normal and recurring adjustments necessary to present fairly our condensed consolidated balance sheet as of July&#160;31, 2009 and October&#160;31, 2008, condensed consolidated statement of operations for the three and nine months ended July&#160;31, 2009 and 2008, and condensed consolidated statement of cash flows for the nine months ended July&#160;31, 2009 and 2008.</font></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; MARGIN-RIGHT: 0pt" align="left"><font style= "DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The preparation of condensed consolidated financial statements in accordance with GAAP in the U.S. requires management to make estimates and assumptions that affect the amounts reported in our condensed consolidated financial statements and accompanying notes. Management bases its estimates on historical experience and various other assumptions believed to be reasonable. Although these estimates are based on management&#8217;s best knowledge of current events and actions that may impact the company in the future, actual results may be different from the estimates. Our critical accounting policies are those that affect our financial statements materially and involve difficult, subjective or complex judgme nts by management. Those policies are revenue recognition, inventory valuation, investment impairments, share-based compensation, retirement and post-retirement benefit plan assumptions, restructuring and asset impairment charges, valuation of long-lived assets and accounting for income taxes.</font></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-STYLE: italic">Fair Value of Financial Instruments.</font> The carrying values of certain of our financial instruments including cash and cash equivalents, restricted cash and cash equivalents, short-term debt, accrued compensati on and other accrued liabilities approximate fair value because of their short maturities.&#160; Agilent determines the fair value of short-term and long-term investments in debt securities considering information obtained from independent pricing sources. The fair value of long-term equity investments is determined using quoted market prices for those securities when available. The fair value of our long-term debt approximates the carrying value. The fair value of foreign currency contracts used for hedging purposes is estimated internally by using inputs tied to active markets. See also Note 8, &#8220;Fair Value Measurements&#8221; for additional information on the fair value of financial instruments.</font></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-STYLE: italic">Goodwill and Purchased Intangible Assets</font>. We review goodwill for impairment annually as of September&#160;30 and whenever events or changes in circumstances indicate the carrying value of an asset may not be recoverable in accordance with SFAS No.&#160;142,</font></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8220;Goodwill and Other Intangible Assets&#8221; (&#8220;SFAS No.&am p;#160;142&#8221;). &#160;&#160;The circumstances that could trigger a goodwill impairment could include, but are not limited to, the following items to the extent that management believes the occurrence of one or more would make it more likely than not that we would fail the first step of the goodwill impairment test (as described in the next paragraph): significant adverse change in legal factors or in the business climate, an adverse action or assessment by a regulator, unanticipated competition, a loss of key personnel, a more-likely-than-not expectation that a reporting unit or a significant portion of a reporting unit will be sold or otherwise disposed of, a portion of a reporting unit&#8217;s goodwill has been included in the carrying amounts of a business that will be disposed or if our market capitalization is below our net book value.</font></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; MARGIN-RIGHT: 0pt" align="left"><f ont style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The provisions of SFAS No.&#160;142 require that we perform a two-step impairment test on goodwill. In the first step, we compare the fair value of each reporting unit to its carrying value. The second step (if necessary) measures the amount of impairment by applying fair-value-based tests to the individual assets and liabilities within each reporting unit. As defined in SFAS No.&#160;142, paragraph 30, a reporting unit is an operating segment, or one level below an operating segment. In accordance with paragraph 30 of SFAS No.&#160;142, we have aggregated components of an operating segment that have similar economic characteristics into our reporting units. At the time of an acquisition , we assign goodwill to the reporting unit that is expected to benefit from the synergies of the combination. For the nine months ended July&#160;31, 2009, Agilent had three reporting units, which were the same as our operating segments: electronic measurement, bio-analytical measurement and semiconductor and board test.</font></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The process of evaluating the potential impairment of goodwill is highly subjective and requires significant judgment, as our businesses operate in a number of markets and geographical regions. We determine the fair value of our reporting uni ts based on an income approach, whereby we calculate the fair value of each reporting unit based on the present value of estimated future cash flows, which are formed by evaluating historical trends, current budgets, operating plans and industry data. We evaluate the reasonableness of the fair value calculations of our reporting units by reconciling the total of the fair values of all of our reporting units to our total market capitalization, taking into account an appropriate control premium. We then compare the carrying value of our reporting units to the fair value calculations based on the income approach noted above.</font></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY : inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">If the estimated fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is not impaired and the second step of the impairment test is not necessary. If the carrying amount of a reporting unit exceeds its estimated fair value, then the second step of the goodwill impairment test must be performed. 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No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. Aggregate revenue during the period from services rendered in the normal course of business, after deducting allowances and discounts, combined with revenues from the sale of other goods or rendering of other services, not elsewhere specified in the taxonomy; net of (reduced by) sales adjustments, returns, allowances, and discounts. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. 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Total costs related to services rendered by an entity during the reporting period, combined with the other costs incurred during the reporting period related to other revenue generating activities. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. 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MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The estimated net amount of existing losses at July&#160;31, 2009 that is expected to be re classified from other comprehensive income to the cost of sales within the next twelve months is $2 million.</font></div> </div> 9. DERIVATIVES &#160; We are exposed to foreign exchange rate risks in the normal course of business. We enter into foreign exchange contracts, false false No definition available. No authoritative reference available. false false 1 2 false UnKnown UnKnown UnKnown false true XML 28 R1.xml IDEA: CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS 1.0.0.3 false CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (USD $) In Millions, except Share data false 1 $ false false u000 Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 u001 Standard http://www.xbrl.org/2003/instance shares xbrli 0 u002 Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 false 2 $ false false u000 Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 u001 Standard http://www.xbrl.org/2003/instance shares xbrli 0 u002 Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 false 3 $ false false u000 Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 u001 Standard http://www.xbrl.org/2003/instance shares xbrli 0 u002 Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 false 4 $ false false u000 Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 u001 Standard http://www.xbrl.org/2003/instance shares xbrli 0 u002 Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 5 3 us-gaap_RevenuesAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false 3 false false 0 0 false false 4 false false 0 0 false false No definition available. false 6 4 us-gaap_SalesRevenueGoodsNet us-gaap true credit duration monetary No definition available. false false false false false false false false false 1 true true 835000000 835 false false 2 true true 1195000000 1195 false false 3 true true 2636000000 2636 false false 4 true true 3570000000 3570 false false No definition available. No authoritative reference available. false 7 4 a_ServicesAndOther a false na duration monetary Aggregate revenue during the period from services rendered in the normal course of business, after deducting allowances and... false false false false false false false false false 1 false true 222000000 222 false false 2 false true 249000000 249 false false 3 false true 678000000 678 false false 4 false true 723000000 723 false false Aggregate revenue during the period from services rendered in the normal course of business, after deducting allowances and discounts, combined with revenues from the sale of other goods or rendering of other services, not elsewhere specified in the taxonomy; net of (reduced by) sales adjustments, returns, allowances, and discounts. No authoritative reference available. false 8 4 us-gaap_SalesRevenueNet us-gaap true credit duration monetary No definition available. false false false false false false false false false 1 false true 1057000000 1057 false false 2 false true 1444000000 1444 false false 3 false true 3314000000 3314 false false 4 false true 4293000000 4293 false false No definition available. 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No authoritative reference available. false 12 4 us-gaap_CostOfRevenue us-gaap true debit duration monetary No definition available. false false false false false false false false false 1 false true 518000000 518 false false 2 false true 641000000 641 false false 3 false true 1656000000 1656 false false 4 false true 1927000000 1927 false false No definition available. No authoritative reference available. true 13 4 us-gaap_ResearchAndDevelopmentExpense us-gaap true debit duration monetary No definition available. false false false false false false false false false 1 false true 153000000 153 false false 2 false true 170000000 170 false false 3 false true 492000000 492 false false 4 false true 534000000 534 false false No definition available. No authoritative reference available. false 14 4 us-gaap_SellingGeneralAndAdministrativeExpense us-gaap true debit duration monetary No definition available. false false false false false false false false false 1 false true 387000000 387 false false 2 false true 415000000 415 false false 3 false true 1190000000 1190 false false 4 false true 1289000000 1289 false false No definition available. No authoritative reference available. false 15 4 us-gaap_OperatingCostsAndExpenses us-gaap true debit duration monetary No definition available. false false false false false false false false false 1 false true 1058000000 1058 false false 2 false true 1226000000 1226 false false 3 false true 3338000000 3338 false false 4 false true 3750000000 3750 false false No definition available. 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No authoritative reference available. false 18 3 us-gaap_InterestExpenseDeposits us-gaap true debit duration monetary No definition available. false false false false false false false false false 1 false true -21000000 -21 false false 2 false true -31000000 -31 false false 3 false true -67000000 -67 false false 4 false true -90000000 -90 false false No definition available. No authoritative reference available. false 19 3 us-gaap_OtherNonoperatingIncomeExpense us-gaap true credit duration monetary No definition available. false false false false false false false false false 1 false true -24000000 -24 false false 2 false true 5000000 5 false false 3 false true -6000000 -6 false false 4 false true 16000000 16 false false No definition available. No authoritative reference available. false 20 3 us-gaap_IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments us-gaap true credit duration monetary No definition available. false false false false false false false false false 1 false true -41000000 -41 false false 2 false true 215000000 215 false false 3 false true -72000000 -72 false false 4 false true 558000000 558 false false No definition available. No authoritative reference available. true 21 3 us-gaap_IncomeTaxExpenseBenefit us-gaap true debit duration monetary No definition available. false false false false false false false false false 1 false true -22000000 -22 false false 2 false true 46000000 46 false false 3 false true -16000000 -16 false false 4 false true 96000000 96 false false No definition available. No authoritative reference available. false 22 3 us-gaap_ProfitLoss us-gaap true credit duration monetary No definition available. false false false false false false false false false 1 true true -19000000 -19 false false 2 true true 169000000 169 false false 3 true true -56000000 -56 false false 4 true true 462000000 462 false false No definition available. No authoritative reference available. true 23 3 us-gaap_EarningsPerShareBasic us-gaap true na duration decimal No definition available. false false false false false false false false true 1 true true -0.06 -0.06 false false 2 true true 0.47 0.47 false false 3 true true -0.16 -0.16 false false 4 true true 1.27 1.27 false false No definition available. No authoritative reference available. false 24 3 us-gaap_EarningsPerShareDiluted us-gaap true na duration decimal No definition available. false false false false false false false false true 1 true true -0.06 -0.06 false false 2 true true 0.45 0.45 false false 3 true true -0.16 -0.16 false false 4 true true 1.23 1.23 false false No definition available. No authoritative reference available. false 25 3 a_WeightedAvergeSharesUsedInComputingNetIncomeLossPerShareAbstract a false na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false 3 false false 0 0 false false 4 false false 0 0 false false No definition available. false 26 4 us-gaap_WeightedAverageNumberOfSharesOutstandingBasic us-gaap true na duration shares No definition available. false false false false false false false false false 1 false true 345000000 345000000.00 false false 2 false true 362000000 362000000.00 false false 3 false true 347000000 347000000.00 false false 4 false true 365000000 365000000.00 false false No definition available. No authoritative reference available. false 27 4 us-gaap_WeightedAverageNumberOfDilutedSharesOutstanding us-gaap true na duration shares No definition available. false false false false false false false false false 1 false true 345000000 345000000.00 false false 2 false true 372000000 372000000.00 false false 3 false true 347000000 347000000.00 false false 4 false true 375000000 375000000.00 false false No definition available. No authoritative reference available. false false 4 23 false Millions NoRounding NoRounding false true XML 29 R2.xml IDEA: CONDENSED CONSOLIDATED BALANCE SHEET 1.0.0.3 false CONDENSED CONSOLIDATED BALANCE SHEET (USD $) In Millions false 1 $ false false u000 Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 u001 Standard http://www.xbrl.org/2003/instance shares xbrli 0 false 2 $ false false u000 Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 u001 Standard http://www.xbrl.org/2003/instance shares xbrli 0 6 4 us-gaap_AssetsCurrentAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false No definition available. false 7 5 us-gaap_CashAndCashEquivalentsAtCarryingValue us-gaap true debit instant monetary No definition available. false false false false false false false false false 1 true true 1479000000 1479 false false 2 true true 1405000000 1405 false false No definition available. No authoritative reference available. false 8 5 us-gaap_ShortTermInvestments us-gaap true debit instant monetary No definition available. false false false false false false false false false 1 false true 20000000 20 false false 2 false true 24000000 24 false false No definition available. No authoritative reference available. false 9 5 us-gaap_AccountsReceivableNetCurrent us-gaap true debit instant monetary No definition available. false false false false false false false false false 1 false true 544000000 544 false false 2 false true 770000000 770 false false No definition available. No authoritative reference available. false 10 5 us-gaap_InventoryNet us-gaap true debit instant monetary No definition available. false false false false false false false false false 1 false true 571000000 571 false false 2 false true 646000000 646 false false No definition available. No authoritative reference available. false 11 5 us-gaap_OtherAssetsCurrent us-gaap true debit instant monetary No definition available. false false false false false false false false false 1 false true 283000000 283 false false 2 false true 337000000 337 false false No definition available. No authoritative reference available. false 12 5 us-gaap_AssetsCurrent us-gaap true debit instant monetary No definition available. false false false false false false false false false 1 false true 2897000000 2897 false false 2 false true 3182000000 3182 false false No definition available. No authoritative reference available. true 13 4 us-gaap_PropertyPlantAndEquipmentNet us-gaap true debit instant monetary No definition available. false false false false false false false false false 1 false true 839000000 839 false false 2 false true 824000000 824 false false No definition available. No authoritative reference available. false 14 4 us-gaap_Goodwill us-gaap true debit instant monetary No definition available. false false false false false false false false false 1 false true 642000000 642 false false 2 false true 646000000 646 false false No definition available. No authoritative reference available. false 15 4 us-gaap_IntangibleAssetsNetExcludingGoodwill us-gaap true debit instant monetary No definition available. false false false false false false false false false 1 false true 178000000 178 false false 2 false true 228000000 228 false false No definition available. No authoritative reference available. false 16 4 us-gaap_RestrictedCashAndCashEquivalentsNoncurrent us-gaap true debit instant monetary No definition available. false false false false false false false false false 1 false true 1568000000 1568 false false 2 false true 1582000000 1582 false false No definition available. No authoritative reference available. false 17 4 us-gaap_LongTermInvestments us-gaap true debit instant monetary No definition available. false false false false false false false false false 1 false true 153000000 153 false false 2 false true 206000000 206 false false No definition available. No authoritative reference available. false 18 4 us-gaap_OtherAssetsNoncurrent us-gaap true debit instant monetary No definition available. false false false false false false false false false 1 false true 296000000 296 false false 2 false true 339000000 339 false false No definition available. No authoritative reference available. false 19 4 us-gaap_Assets us-gaap true debit instant monetary No definition available. false false false false false false false false false 1 false true 6573000000 6573 false false 2 false true 7007000000 7007 false false No definition available. No authoritative reference available. true 21 4 us-gaap_LiabilitiesCurrentAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false No definition available. false 22 5 us-gaap_AccountsPayableCurrent us-gaap true credit instant monetary No definition available. false false false false false false false false false 1 false true 250000000 250 false false 2 false true 308000000 308 false false No definition available. No authoritative reference available. false 23 5 us-gaap_EmployeeRelatedLiabilitiesCurrent us-gaap true credit instant monetary No definition available. false false false false false false false false false 1 false true 277000000 277 false false 2 false true 409000000 409 false false No definition available. No authoritative reference available. false 24 5 us-gaap_DeferredRevenueCurrent us-gaap true credit instant monetary No definition available. false false false false false false false false false 1 false true 286000000 286 false false 2 false true 280000000 280 false false No definition available. No authoritative reference available. false 25 5 us-gaap_AccruedIncomeTaxesCurrent us-gaap true credit instant monetary No definition available. false false false false false false false false false 1 false true 38000000 38 false false 2 false true 128000000 128 false false No definition available. No authoritative reference available. false 26 5 us-gaap_OtherLiabilitiesCurrent us-gaap true credit instant monetary No definition available. false false false false false false false false false 1 false true 140000000 140 false false 2 false true 205000000 205 false false No definition available. No authoritative reference available. false 27 5 us-gaap_LiabilitiesCurrent us-gaap true credit instant monetary No definition available. false false false false false false false false false 1 false true 991000000 991 false false 2 false true 1330000000 1330 false false No definition available. No authoritative reference available. true 28 4 us-gaap_LongTermDebtNoncurrent us-gaap true credit instant monetary No definition available. false false false false false false false false false 1 false true 1515000000 1515 false false 2 false true 1514000000 1514 false false No definition available. No authoritative reference available. false 29 4 us-gaap_OtherLongTermDebtNoncurrent us-gaap true credit instant monetary No definition available. false false false false false false false false false 1 false true 638000000 638 false false 2 false true 611000000 611 false false No definition available. No authoritative reference available. false 30 4 us-gaap_PensionAndOtherPostretirementDefinedBenefitPlansLiabilitiesNoncurrent us-gaap true credit instant monetary No definition available. false false false false false false false false false 1 false true 378000000 378 false false 2 false true 324000000 324 false false No definition available. No authoritative reference available. false 31 4 us-gaap_OtherLiabilitiesNoncurrent us-gaap true credit instant monetary No definition available. false false false false false false false false false 1 false true 562000000 562 false false 2 false true 669000000 669 false false No definition available. No authoritative reference available. false 32 4 us-gaap_Liabilities us-gaap true credit instant monetary No definition available. false false false false false false false false false 1 false true 4084000000 4084 false false 2 false true 4448000000 4448 false false No definition available. No authoritative reference available. true 33 4 us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false No definition available. false 34 5 us-gaap_PreferredStockValue us-gaap true credit instant monetary No definition available. false false false false false false false false false 1 false true 0 0 false false 2 false true 0 0 false false No definition available. No authoritative reference available. false 35 5 us-gaap_CommonStockValue us-gaap true credit instant monetary No definition available. false false false false false false false false false 1 false true 6000000 6 false false 2 false true 6000000 6 false false No definition available. No authoritative reference available. false 36 5 us-gaap_TreasuryStockValue us-gaap true debit instant monetary No definition available. false false false false false false false false false 1 false true -7627000000 -7627 false false 2 false true -7470000000 -7470 false false No definition available. No authoritative reference available. false 37 5 us-gaap_AdditionalPaidInCapital us-gaap true credit instant monetary No definition available. false false false false false false false false false 1 false true 7516000000 7516 false false 2 false true 7410000000 7410 false false No definition available. No authoritative reference available. false 38 5 us-gaap_RetainedEarningsAccumulatedDeficit us-gaap true credit instant monetary No definition available. false false false false false false false false false 1 false true 2735000000 2735 false false 2 false true 2791000000 2791 false false No definition available. No authoritative reference available. false 39 5 us-gaap_AccumulatedOtherComprehensiveIncomeLossNetOfTax us-gaap true credit instant monetary No definition available. false false false false false false false false false 1 false true -141000000 -141 false false 2 false true -178000000 -178 false false No definition available. No authoritative reference available. false 40 5 us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest us-gaap true credit instant monetary No definition available. false false false false false false false false false 1 false true 2489000000 2489 false false 2 false true 2559000000 2559 false false No definition available. No authoritative reference available. true 41 5 us-gaap_LiabilitiesAndStockholdersEquity us-gaap true credit instant monetary No definition available. false false false false false false false false false 1 true true 6573000000 6573 false false 2 true true 7007000000 7007 false false No definition available. No authoritative reference available. true false 2 35 false Millions UnKnown UnKnown false true XML 30 FilingSummary.xml IDEA: XBRL DOCUMENT 1.0.0.3 true Sheet 1000 - Statement - CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS R1.xml false Sheet 2000 - Statement - CONDENSED CONSOLIDATED BALANCE SHEET CONDENSED CONSOLIDATED BALANCE SHEET R2.xml false Sheet 2100 - Statement - PARENTHETICAL DATA TO CONDENSED CONSOLIDATED BALANCE SHEET PARENTHETICAL DATA TO CONDENSED CONSOLIDATED BALANCE SHEET R3.xml false Sheet 3000 - Statement - CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS R4.xml false Sheet 6010 - Disclosure - OVERVIEW, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES OVERVIEW, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES R5.xml false Sheet 6020 - Disclosure - NEW ACCOUNTING PRONOUNCEMENTS NEW ACCOUNTING PRONOUNCEMENTS R6.xml false Sheet 6030 - Disclosure - SHARE BASED COMPENSATION SHARE BASED COMPENSATION R7.xml false Sheet 6040 - Disclosure - PROVISION FOR TAXES PROVISION FOR TAXES R8.xml false Sheet 6050 - Disclosure - NET INCOME (LOSS) PER SHARE NET INCOME (LOSS) PER SHARE R9.xml false Sheet 6060 - Disclosure - INVENTORY INVENTORY R10.xml false Sheet 6070 - Disclosure - GOODWILL AND OTHER INTANGIBLE ASSETS GOODWILL AND OTHER INTANGIBLE ASSETS R11.xml false Sheet 6080 - Disclosure - FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS R12.xml false Sheet 6090 - Disclosure - DERIVATIVES DERIVATIVES R13.xml false Sheet 6100 - Disclosure - RESTRUCTURING COSTS, ASSET IMPAIRMENTS AND OTHER SPECIAL CHARGES RESTRUCTURING COSTS, ASSET IMPAIRMENTS AND OTHER SPECIAL CHARGES R14.xml false Sheet 6110 - Disclosure - PENSION PLANS AND OTHER POST RETIREMENT BENEFIT PLANS PENSION PLANS AND OTHER POST RETIREMENT BENEFIT PLANS R15.xml false Sheet 6120 - Disclosure - WARRANTIES WARRANTIES R16.xml false Sheet 6130 - Disclosure - SHORT TERM DEBT SHORT TERM DEBT R17.xml false Notes 6140 - Disclosure - SENIOR NOTES SENIOR NOTES R18.xml false Sheet 6150 - Disclosure - LONG TERM DEBT AND LONG TERM RESTRICTED CASH AND CASH EQUIVALENTS LONG TERM DEBT AND LONG TERM RESTRICTED CASH AND CASH EQUIVALENTS R19.xml false Sheet 6160 - Disclosure - COMPREHENSIVE INCOME (LOSS) COMPREHENSIVE INCOME (LOSS) R20.xml false Sheet 6170 - Disclosure - STOCK REPURCHASE PROGRAM STOCK REPURCHASE PROGRAM R21.xml false Sheet 6180 - Disclosure - SEGMENT INFORMATION SEGMENT INFORMATION R22.xml false Sheet 995200 - Document - Document Information Document Information R23.xml false Sheet 995400 - Document - Entity Information Entity Information R24.xml false Book All Reports All Reports 1 9 0 0 3 125 false false c00003 41 c00001 20 c00002 54 c00008 1 c00004 40 c00005 20 c00007 1 c00000 83 c00006 1 true true EXCEL 31 Financial_Report.xls IDEA: XBRL DOCUMENT begin 644 Financial_Report.xls MT,\1X*&Q&N$`````````````````````/@`#`/[_"0`&```````````````" M`````0``````````$```Z@````$```#^____```````````"````________ M____________________________________________________________ M____________________________________________________________ M____________________________________________________________ M____________________________________________________________ M____________________________________________________________ M____________________________________________________________ M____________________________________________________________ M____________________________________________________________ M____________________________________________________________ M_______________________]_____O____W___\$````!0````8````'```` M"`````D````*````"P````P````-````#@````\````0````$0```!(````3 M````%````!4````6````%P```!@````9````&@```!L````<````'0```!X` M```?````(````"$````B````(P```"0````E````)@```"<````H````*0`` M`"H````K````+````"T````N````+P```#`````Q````,@```#,````T```` M-0```#8````W````.````#D````Z````.P```#P````]````/@```#\```!` M````00```$(```!#````1````$4```!&````1P```$@```!)````2@```$L` M``!,````30```$X```!/````4````%$```!2````4P```%0```!5````5@`` M`%<```!8````60```%H```!;````7````%T```!>````7P```&````!A```` M8@```&,```!D````90```&8```!G````:````&D```!J````:P```&P```!M M````;@```&\```!P````<0```'(```!S````=````'4```!V````=P```'@` M``!Y````>@```'L```!\````?0```'X```!_````@````%(`;P!O`'0`(`!% M`&X`=`!R`'D````````````````````````````````````````````````` M```````````6``4`__________\"```````````````````````````````` M`````````-":;N[?1````GP```*````"A M````H@```*,```"D````I0```*8```"G````J````*D```"J````JP```*P` M``"M````K@```*\```"P````L0```+(```"S````M````+4```"V````MP`` M`+@```"Y````N@```+L```"\````O0```+X```"_````P````,$```#"```` MPP```,0```#%````Q@```,<```#(````R0```,H```#+````S````,T```#. 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FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160; </font></td> </tr>< tr bgcolor="white"> <td align="left" valign="bottom" width="26%"> <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">ESPP:</font></div> </td> <td align="left" valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160; </font></td> <td align="right" valign="bottom" width="9%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160; </font></td> <td align="left" valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160; </font></td> <td align="right" valign="bottom" width="9%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160; </font></td> <td align="left" valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160; </font></td> <td align="right" valign="bottom" width="9%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160; </font></td> <td align="left" valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160; </font></td> <td align="right" valign="bottom" width="9%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160; </font></td> <td align="left" valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160; </font></td> </tr><tr bgcolor="#cceeff"> <td align="left" valign="bottom" width="26%"> <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Weighted average risk-free interest rate</font></div> </td> <td align="left" valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160; </font></td> <td align="right" valign="bottom" width="9%"> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">N/A</font></div> </td> <td align="left" valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160; </font></td > <td align="right" valign="bottom" width="9%"> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">1.7</font></div> </td> <td align="left" valign="bottom" width="2%"> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">%</font></div> </td> <td align="right" valign="bottom" width="9%"> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; 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FONT-FAMILY: times new roman">&#160; </font></td> <td align="left" valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160; </font></td> </tr><tr bgcolor="white"> <td align="left" valign="bottom" width="26%"> <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">LTPP:</font></div> </td> <td align="left" valign="bottom" width=" 2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160; </font></td> <td align="right" valign="bottom" width="9%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160; </font></td> <td align="left" valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160; </font></td> <td align="right" valign="bottom" width="9%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160; </font></td> <td align="left" valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160; </font></td> <td align="right" valign="bottom" width="9%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160; </fon t></td> <td align="left" valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160; </font></td> <td align="right" valign="bottom" width="9%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160; </font></td> <td align="left" valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160; </font></td> </tr><tr bgcolor="#cceeff"> <td align="left" valign="bottom" width="26%"> <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Volatility of Agilent shares</font></div> </td> <td align="left" valign="bottom" width="2%">&l t;font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160; </font></td> <td align="right" valign="bottom" width="9%"> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">33</font></div> </td> <td align="left" valign="bottom" width="2%"> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">%</font></div> </td> <td align="right" valign="bottom" width="9%"> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#8212;& lt;/font></div> </td> <td align="left" valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160; </font></td> <td align="right" valign="bottom" width="9%"> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">33</font></div> </td> <td align="left" valign="bottom" width="2%"> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">%</font></div> </td> <td align="right" valign="bottom" width="9%"> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">27</font></div> </td> <td align="left" valign="bottom" width="1%"> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">%</font></div> </td> </tr><tr bgcolor="white"> <td align="left" valign="bottom" width="26%"> <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Volatility of selected peer-company shares</font></div> </td> <td align="left" valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">& #160; </font></td> <td align="right" valign="bottom" width="9%"> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">18%-62</font></div> </td> <td align="left" valign="bottom" width="2%"> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">%</font></div> </td> <td align="right" valign="bottom" width="9%"> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#8212;</font></div> </td> <td align="left" v align="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160; </font></td> <td align="right" valign="bottom" width="9%"> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">17%-62</font></div> </td> <td align="left" valign="bottom" width="2%"> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">%</font></div> </td> <td align="right" valign="bottom" width="9%"> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMIL Y: times new roman">17%-52</font></div> </td> <td align="left" valign="bottom" width="1%"> <div style="DISPLAY: block; 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Effective November&#160;1, 2008, the Compensation Committee of the Board of Directors approved a change to our ESPP that eliminated the 24-month look back period. The ESPP continues to allow eligible employees to purchase shares of our common stock at 85&#160;percent of the purchase price, but only uses the purchase date to establish the fair market value. As a result of the change in our plan, for the three and nine months ended July&#160;31, 2009 no Black-Scholes assumptions were required in the valuation of awards granted under our current ESPP. Shares granted under the LTPP were valued using a Monte Carlo simulation model. Both the Black-Scholes and Monte Carlo simulation fair value models require the use of highly subjective and complex assumptions, including the option&#8217;s expected life and the price volatility of the underlying stock. The estimated fair value of restricted stock unit awards is determined based on the market price of Agilent&#8217;s common stock on the date of grant.</font></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDE NT: 27pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Effective November&#160;1, 2008 we moved to historical volatility to estimate the expected stock price volatility assumption for employee stock option awards. Management believes that based on current data these estimates of volatility are more appropriate than implied volatility. In reaching this conclusion, we have considered many factors including the limited number of Agilent options currently traded and our limited ability to find traded options in the current market with similar terms and prices to the options we are valuing. For the three and nine months ended July&#160;31, 2008, we used implied volatility of Agilent&#8217;s public ly traded, similarly priced, stock options to estimate the expected stock price volatility assumption for employee stock option awards.</font></div> </div> &#160; &#160; 3. SHARE-BASED COMPENSATION false false No definition available. 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The company may use amounts borrowed under the facility for general corporate purposes.&#160; As of July&#160;31, 2009 the company has no bor rowings outstanding under the credit facility.</font></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On August&#160;17, 2009 the credit agreement was amended to provide additional financing flexibility in advance of the pending acquisition of Varian,&#160;Inc.&#160; The amendment allows for up to $1 billion of additional indebtedness, incurred during the period from August&#160;17, 2009 through the closing of the acquisition, to be excluded from the leverage ratio covenant until the later of the first day of the month following the ninth full calendar month after the closing of the acquisition or Augus t&#160;1, 2010; it also temporarily reduces the basket for other secured financing we are permitted to incur from $300 million to $75 million during this period. The amendment also increases by $500 million the amount of repurchase obligations (such as those of Agilent Technologies World Trade,&#160;Inc., a consolidated wholly-owned subsidiary of Agilent (&#8220;World Trade&#8221;) (see Note 15, &#8220;Long-Term Debt and Long-Term Restricted Cash and Cash Equivalents&#8221;)), that we are permitted&#160; to incur.</font></div> </div> 13. SHORT-TERM DEBT &#160; On May&#160;11, 2007, we entered into a five-year credit agreement, which provides for a $300 million unsecured false false No definition available. No authoritative reference available. false false 1 2 false UnKnown UnKnown UnKnown false true
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