RETIREMENT PLANS AND POST RETIREMENT PENSION PLANS (Tables)
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12 Months Ended |
Oct. 31, 2017 |
|---|
| Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] |
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| Schedule of net pension and post-retirement benefit costs |
For the years ended October 31, 2017, 2016 and 2015, components of net periodic benefit cost and other amounts recognized in other comprehensive income were comprised of: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Pensions | | U.S. Post-Retirement Benefit Plans | | U.S. Plans | | Non-U.S. Plans | | | | | | | | | | | | | | | | | | | | | 2017 | | 2016 | | 2015 | | 2017 | | 2016 | | 2015 | | 2017 | | 2016 | | 2015 | | (in millions) | Net periodic benefit cost (benefit) | | | | | | | | | | | | | | | | | | Service cost — benefits earned during the period | $ | — |
| | $ | 12 |
| | $ | 25 |
| | $ | 19 |
| | $ | 19 |
| | $ | 18 |
| | $ | 1 |
| | $ | 1 |
| | $ | 2 |
| Interest cost on benefit obligation | 15 |
| | 16 |
| | 14 |
| | 12 |
| | 16 |
| | 23 |
| | 3 |
| | 4 |
| | 4 |
| Expected return on plan assets | (25 | ) | | (25 | ) | | (27 | ) | | (41 | ) | | (44 | ) | | (42 | ) | | (7 | ) | | (7 | ) | | (8 | ) | Amortization of net actuarial loss | 3 |
| | 3 |
| | 3 |
| | 36 |
| | 27 |
| | 25 |
| | 11 |
| | 10 |
| | 6 |
| Amortization of prior service benefit | — |
| | (3 | ) | | (5 | ) | | — |
| | — |
| | — |
| | (9 | ) | | (10 | ) | | (12 | ) | Total periodic benefit cost (benefit) | $ | (7 | ) | | $ | 3 |
| | $ | 10 |
| | $ | 26 |
| | $ | 18 |
| | $ | 24 |
| | $ | (1 | ) | | $ | (2 | ) | | $ | (8 | ) | Curtailments and settlements | $ | — |
| | $ | (16 | ) | | $ | — |
| | $ | (32 | ) | | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| Other changes in plan assets and benefit obligations recognized in other comprehensive (income) loss | | | | | | | | | | | | | | | | | | Net actuarial (gain) loss | $ | (19 | ) | | $ | 22 |
| | $ | 44 |
| | $ | (128 | ) | | $ | 149 |
| | $ | 32 |
| | $ | (9 | ) | | $ | 3 |
| | $ | 16 |
| Amortization of net actuarial loss | (3 | ) | | (3 | ) | | (3 | ) | | (36 | ) | | (27 | ) | | (25 | ) | | (11 | ) | | (10 | ) | | (6 | ) | Prior service cost (benefit) | — |
| | 15 |
| | — |
| | — |
| | — |
| | — |
| | 9 |
| | (7 | ) | | — |
| Amortization of prior service benefit | — |
| | 3 |
| | 5 |
| | — |
| | — |
| | — |
| | — |
| | 10 |
| | 12 |
| Gain due to settlement | — |
| | — |
| | — |
| | 32 |
| | — |
| | — |
| | — |
| | — |
| | — |
| Foreign currency | — |
| | — |
| | — |
| | 2 |
| | (3 | ) | | 10 |
| | — |
| | — |
| | — |
| Total recognized in other comprehensive (income) loss | $ | (22 | ) | | $ | 37 |
| | $ | 46 |
| | $ | (130 | ) | | $ | 119 |
| | $ | 17 |
| | $ | (11 | ) | | $ | (4 | ) | | $ | 22 |
| Total recognized in net periodic benefit cost (benefit) and other comprehensive (income) loss | $ | (29 | ) | | $ | 24 |
| | $ | 56 |
| | $ | (136 | ) | | $ | 137 |
| | $ | 41 |
| | $ | (12 | ) | | $ | (6 | ) | | $ | 14 |
|
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| Change in fair value of plan assets |
Funded status. As of October 31, 2017 and 2016, the funded status of the defined benefit and post-retirement benefit plans was:
| | | | | | | | | | | | | | | | | | | | | | | | | | U.S. Defined Benefit Plans | | Non-U.S. Defined Benefit Plans | | U.S. Post-Retirement Benefit Plans | | 2017 | | 2016 | | 2017 | | 2016 | | 2017 | | 2016 | | (in millions) | Change in fair value of plan assets: | | | | | | | | | | | | Fair value — beginning of year | $ | 341 |
| | $ | 347 |
| | $ | 774 |
| | $ | 778 |
| | $ | 88 |
| | $ | 91 |
| Actual return on plan assets | 66 |
| | 13 |
| | 81 |
| | 25 |
| | 14 |
| | 3 |
| Employer contributions | 25 |
| | — |
| | 21 |
| | 24 |
| | — |
| | — |
| Participants' contributions | — |
| | — |
| | — |
| | 1 |
| | — |
| | — |
| Benefits paid | (18 | ) | | (19 | ) | | (23 | ) | | (27 | ) | | (7 | ) | | (6 | ) | Settlements | — |
| | — |
| | (26 | ) | | — |
| | — |
| | — |
| Currency impact | — |
| | — |
| | 28 |
| | (27 | ) | | — |
| | — |
| Fair value — end of year | $ | 414 |
| | $ | 341 |
| | $ | 855 |
| | $ | 774 |
| | $ | 95 |
| | $ | 88 |
|
|
| Change in benefit obligation |
| | | | | | | | | | | | | | | | | | | | | | | | | | U.S. Defined Benefit Plans | | Non-U.S. Defined Benefit Plans | | U.S. Post-Retirement Benefit Plans | | 2017 | | 2016 | | 2017 | | 2016 | | 2017 | | 2016 | | (in millions) | Change in benefit obligation: | | | | | | | | | | | | Benefit obligation — beginning of year | $ | 434 |
| | $ | 415 |
| | $ | 1,002 |
| | $ | 900 |
| | $ | 103 |
| | $ | 112 |
| Service cost | — |
| | 12 |
| | 19 |
| | 19 |
| | 1 |
| | 1 |
| Interest cost | 15 |
| | 16 |
| | 12 |
| | 16 |
| | 3 |
| | 4 |
| Participants' contributions | — |
| | — |
| | — |
| | 1 |
| | — |
| | — |
| Plan amendment | — |
| | — |
| | (1 | ) | | — |
| | — |
| | (7 | ) | Actuarial (gain) loss | 15 |
| | 41 |
| | (43 | ) | | 130 |
| | (3 | ) | | (1 | ) | Benefits paid | (19 | ) | | (20 | ) | | (22 | ) | | (27 | ) | | (7 | ) | | (6 | ) | Curtailments | — |
| | (30 | ) | | — |
| | — |
| | — |
| | — |
| Settlements | — |
| | — |
| | (70 | ) | | — |
| | — |
| | — |
| Currency impact | — |
| | — |
| | 38 |
| | (37 | ) | | — |
| | — |
| Benefit obligation — end of year | $ | 445 |
| | $ | 434 |
| | $ | 935 |
| | $ | 1,002 |
| | $ | 97 |
| | $ | 103 |
| Overfunded (underfunded) status of PBO | $ | (31 | ) | | $ | (93 | ) | | $ | (80 | ) | | $ | (228 | ) | | $ | (2 | ) | | $ | (15 | ) |
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| Amounts recognized in the consolidated balance sheet |
| | | | | | | | | | | | | | | | | | | | | | | | | | U.S. Defined Benefit Plans | | Non-U.S. Defined Benefit Plans | | U.S. Post-Retirement Benefit Plans | | 2017 | | 2016 | | 2017 | | 2016 | | 2017 | | 2016 | | (in millions) | Amounts recognized in the consolidated balance sheet consist of: | | | | | | | | | | | | Other assets | $ | — |
| | $ | — |
| | $ | 86 |
| | $ | 1 |
| | $ | — |
| | $ | — |
| Employee compensation and benefits | (1 | ) | | (1 | ) | | — |
| | — |
| | — |
| | — |
| Retirement and post-retirement benefits | (30 | ) | | (92 | ) | | (166 | ) | | (229 | ) | | (2 | ) | | (15 | ) | Total net asset (liability) | $ | (31 | ) | | $ | (93 | ) | | $ | (80 | ) | | $ | (228 | ) | | $ | (2 | ) | | $ | (15 | ) |
|
| Amounts recognized in accumulated other comprehensive income (loss) |
| | | | | | | | | | | | | | | | | | | | | | | | | | U.S. Defined Benefit Plans | | Non-U.S. Defined Benefit Plans | | U.S. Post-Retirement Benefit Plans | | 2017 | | 2016 | | 2017 | | 2016 | | 2017 | | 2016 | Amounts Recognized in Accumulated Other Comprehensive Income (loss): | | | | | | | | | | | | Actuarial (gains) losses | $ | 65 |
| | $ | 93 |
| | $ | 243 |
| | $ | 375 |
| | $ | 20 |
| | $ | 41 |
| Prior service costs (benefits) | — |
| | — |
| | (1 | ) | | — |
| | (28 | ) | | (37 | ) | Total | $ | 65 |
| | $ | 93 |
| | $ | 242 |
| | $ | 375 |
| | $ | (8 | ) | | $ | 4 |
|
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| Amounts in accumulated other comprehensive income expected to be recognized as components of net expense during the next fiscal year |
The amounts in accumulated other comprehensive income expected to be recognized by Agilent as components of net expense during 2018 are as follows: | | | | | | | | | | | | | | U.S. Defined Benefit Plans | | Non-U.S. Defined Benefit Plans | | U.S. Post-Retirement Benefit Plans | | (in millions) | Amortization of net prior service cost (benefit) | $ | — |
| | $ | — |
| | $ | (8 | ) | Amortization of actuarial net loss (gain) | $ | 1 |
| | $ | 29 |
| | $ | 8 |
|
|
| Defined benefit plan assets by fair value hierarchy |
The following tables present the fair value of U.S. Defined Benefit Plans assets classified under the appropriate level of the fair value hierarchy as of October 31, 2017 and 2016.
| | | | | | | | | | | | | | | | | | | | | | | | Fair Value Measurement
at October 31, 2017 Using | | | | October 31,
2017 | | Quoted Prices in Active Markets for Identical Assets (Level 1) | | Significant Other Observable Inputs (Level 2) | | Significant Unobservable Inputs (Level 3) | | Not Subject to Leveling (1) | | (in millions) | Cash and Cash Equivalents | $ | 4 |
| | $ | 1 |
| | $ | — |
| | $ | — |
| | $ | 3 |
| Equity | 327 |
| | 88 |
| | — |
| | — |
| | 239 |
| Fixed Income | 76 |
| | 38 |
| | — |
| | — |
| | 38 |
| Other Investments | 7 |
| | — |
| | — |
| | 7 |
| | — |
| Total assets measured at fair value | $ | 414 |
| | $ | 127 |
| | $ | — |
| | $ | 7 |
| | $ | 280 |
|
(1) Investments measured at the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy.
| | | | | | | | | | | | | | | | | | | | | | | | Fair Value Measurement
at October 31, 2016 Using | | | | October 31,
2016 | | Quoted Prices in Active Markets for Identical Assets (Level 1) | | Significant Other Observable Inputs (Level 2) | | Significant Unobservable Inputs (Level 3) | | Not Subject to Leveling (1) | | (in millions) | Cash and Cash Equivalents | $ | 4 |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | 4 |
| Equity | 248 |
| | 62 |
| | — |
| | — |
| | 186 |
| Fixed Income | 80 |
| | 42 |
| | — |
| | — |
| | 38 |
| Other Investments | 9 |
| | — |
| | — |
| | 9 |
| | — |
| Total assets measured at fair value | $ | 341 |
| | $ | 104 |
| | $ | — |
| | $ | 9 |
| | $ | 228 |
|
(1) Investments measured at the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy.
The following tables present the fair value of U.S. Post-Retirement Benefit Plans assets classified under the appropriate level of the fair value hierarchy as of October 31, 2017 and 2016. .
| | | | | | | | | | | | | | | | | | | | | | | | Fair Value Measurement at
October 31, 2017 Using | | | | October 31,
2017 | | Quoted Prices in Active Markets for Identical Assets (Level 1) | | Significant Other Observable Inputs (Level 2) | | Significant Unobservable Inputs (Level 3) | | Not Subject to Leveling (1) | | (in millions) | Cash and Cash Equivalents | $ | 6 |
| | $ | 5 |
| | $ | — |
| | $ | — |
| | $ | 1 |
| Equity | 68 |
| | 18 |
| | — |
| | — |
| | 50 |
| Fixed Income | 17 |
| | 9 |
| | — |
| | — |
| | 8 |
| Other Investments | 4 |
| | — |
| | — |
| | 4 |
| | — |
| Total assets measured at fair value | $ | 95 |
| | $ | 32 |
| | $ | — |
| | $ | 4 |
| | $ | 59 |
|
(1) Investments measured at the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy.
| | | | | | | | | | | | | | | | | | | | | | | | Fair Value Measurement
at October 31, 2016 Using | | | | October 31,
2016 | | Quoted Prices in Active Markets for Identical Assets (Level 1) | | Significant Other Observable Inputs (Level 2) | | Significant Unobservable Inputs (Level 3) | | Not Subject to Leveling (1) | | (in millions) | Cash and Cash Equivalents | $ | 3 |
| | $ | 2 |
| | $ | — |
| | $ | — |
| | $ | 1 |
| Equity | 59 |
| | 15 |
| | — |
| | — |
| | 44 |
| Fixed Income | 21 |
| | 11 |
| | — |
| | — |
| | 10 |
| Other Investments | 5 |
| | — |
| | — |
| | 5 |
| | — |
| Total assets measured at fair value | $ | 88 |
| | $ | 28 |
| | $ | — |
| | $ | 5 |
| | $ | 55 |
| | | | | | | | | | |
(1) Investments measured at the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy.
The following tables present the fair value of non-U.S. Defined Benefit Plans assets classified under the appropriate level of the fair value hierarchy as of October 31, 2017 and 2016:
| | | | | | | | | | | | | | | | | | | | | | | | Fair Value Measurement
at October 31, 2017 Using | | | | October 31,
2017 | | Quoted Prices in Active Markets for Identical Assets (Level 1) | | Significant Other Observable Inputs (Level 2) | | Significant Unobservable Inputs (Level 3) | | Not Subject to Leveling (1) | | (in millions) | Cash and Cash Equivalents | $ | 8 |
| | $ | — |
| | $ | 8 |
| | $ | — |
| | $ | — |
| Equity | 539 |
| | 326 |
| | 28 |
| | — |
| | 185 |
| Fixed Income | 307 |
| | 60 |
| | 229 |
| | — |
| | 18 |
| Other Investments | 1 |
| | — |
| | 1 |
| | — |
| | — |
| Total assets measured at fair value | $ | 855 |
| | $ | 386 |
| | $ | 266 |
| | $ | — |
| | $ | 203 |
|
(1) Investments measured at the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy.
| | | | | | | | | | | | | | | | | | | | | | | | Fair Value Measurement
at October 31, 2016 Using | | | | October 31,
2016 | | Quoted Prices in Active Markets for Identical Assets (Level 1) | | Significant Other Observable Inputs (Level 2) | | Significant Unobservable Inputs (Level 3) | | Not Subject to Leveling (1) | | (in millions) | Cash and Cash Equivalents | $ | 26 |
| | $ | 18 |
| | $ | 8 |
| | $ | — |
| | $ | — |
| Equity | 422 |
| | 239 |
| | 23 |
| | — |
| | 160 |
| Fixed Income | 325 |
| | 83 |
| | 222 |
| | — |
| | 20 |
| Other Investments | 1 |
| | — |
| | 1 |
| | — |
| | — |
| Total assets measured at fair value | $ | 774 |
| | $ | 340 |
| | $ | 254 |
| | $ | — |
| | $ | 180 |
|
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| Defined benefit plans assets measured at fair value using significant unobservable inputs (level 3) |
For U.S. Defined Benefit Plans assets measured at fair value using significant unobservable inputs (level 3), the following table summarizes the change in balances during 2017 and 2016:
| | | | | | | | | | Years Ended October 31. | | 2017 | | 2016 | Balance, beginning of year | $ | 9 |
| | $ | 9 |
| Realized gains/(losses) | (3 | ) | | — |
| Unrealized gains/(losses) | 3 |
| | 3 |
| Purchases, sales, issuances, and settlements | (2 | ) | | (3 | ) | Transfers in (out) | — |
| | — |
| Balance, end of year | $ | 7 |
| | $ | 9 |
|
For U.S. Post-Retirement Benefit Plans assets measured at fair value using significant unobservable inputs (level 3), the following table summarizes the change in balances during 2017 and 2016:
| | | | | | | | | | Years Ended October 31, | | 2017 | | 2016 | Balance, beginning of year | $ | 5 |
| | $ | 6 |
| Realized gains/(losses) | (2 | ) | | — |
| Unrealized gains/(losses) | 2 |
| | 1 |
| Purchases, sales, issuances, and settlements | (1 | ) | | (2 | ) | Transfers in (out) | — |
| | — |
| | $ | 4 |
| | $ | 5 |
|
|
| Combined projected benefit obligation, accumulated benefit obligations and fair value of plan assets |
The table below presents the combined projected benefit obligation ("PBO"), accumulated benefit obligation ("ABO") and fair value of plan assets, grouping plans using comparisons of the PBO and ABO relative to the plan assets as of October 31, 2017 or 2016. | | | | | | | | | | | | | | | | | | 2017 | | 2016 | | Benefit Obligation | | | | Benefit Obligation | | | | Fair Value of Plan Assets | | Fair Value of Plan Assets | | PBO | | PBO | | | (in millions) | U.S. defined benefit plans where PBO exceeds the fair value of plan assets | $ | 445 |
| | $ | 414 |
| | $ | 434 |
| | $ | 341 |
| U.S. defined benefit plans where fair value of plan assets exceeds PBO | — |
| | — |
| | — |
| | — |
| Total | $ | 445 |
| | $ | 414 |
| | $ | 434 |
| | $ | 341 |
| | | | | | | | | Non-U.S. defined benefit plans where PBO exceeds or is equal to the fair value of plan assets | $ | 563 |
| | $ | 397 |
| | $ | 970 |
| | $ | 741 |
| Non-U.S. defined benefit plans where fair value of plan assets exceeds PBO | 372 |
| | 458 |
| | 32 |
| | 33 |
| Total | $ | 935 |
| | $ | 855 |
| | $ | 1,002 |
| | $ | 774 |
| | | | | | | | | | ABO | | | | ABO | | | U.S. defined benefit plans where ABO exceeds the fair value of plan assets | $ | 445 |
| | $ | 414 |
| | $ | 434 |
| | $ | 341 |
| U.S. defined benefit plans where the fair value of plan assets exceeds ABO | — |
| | — |
| | — |
| | — |
| Total | $ | 445 |
| | $ | 414 |
| | $ | 434 |
| | $ | 341 |
| | | | | | | | | Non-U.S. defined benefit plans where ABO exceeds or is equal to the fair value of plan assets | $ | 539 |
| | $ | 397 |
| | $ | 737 |
| | $ | 542 |
| Non-U.S. defined benefit plans where fair value of plan assets exceeds ABO | 365 |
| | 458 |
| | 226 |
| | 232 |
| Total | $ | 904 |
| | $ | 855 |
| | $ | 963 |
| | $ | 774 |
|
|
| Schedule of expected benefit payments |
The following table presents expected future benefit payments for the next 10 years:
| | | | | | | | | | | | | | U.S. Defined Benefit Plans | | Non-U.S. Defined Benefit Plans | | U.S. Post-Retirement Benefit Plans | | (in millions) | 2018 | $ | 29 |
| | $ | 23 |
| | $ | 8 |
| 2019 | $ | 28 |
| | $ | 25 |
| | $ | 8 |
| 2020 | $ | 31 |
| | $ | 26 |
| | $ | 8 |
| 2021 | $ | 29 |
| | $ | 29 |
| | $ | 7 |
| 2022 | $ | 30 |
| | $ | 32 |
| | $ | 7 |
| 2023 - 2027 | $ | 145 |
| | $ | 176 |
| | $ | 34 |
|
|
| Assumptions used to calculate the net periodic cost and benefit obligation |
Assumptions used to calculate the net periodic cost in each year were as follows:
| | | | | | | | For years ended October 31, | | 2017 | | 2016 | | 2015 | U.S. defined benefit plans: | | | | | | Discount rate | 3.75% | | 4.20% | | 4.00% | Average increase in compensation levels | n/a | | 3.50% | | 3.50% | Expected long-term return on assets | 7.25% | | 7.50% | | 8.00% | Non-U.S. defined benefit plans: | | | | | | Discount rate | 0.22-2.66% | | 0.77-3.76% | | 1.50-4.00% | Average increase in compensation levels | 2.00-4.25% | | 2.25-4.00% | | 2.50-3.25% | Expected long-term return on assets | 4.00-6.25% | | 4.25-6.50% | | 4.00-6.50% | U.S. post-retirement benefits plans: | | | | | | Discount rate | 3.50% | | 4.00% | | 4.00% | Expected long-term return on assets | 7.25% | | 7.50% | | 8.00% | Current medical cost trend rate | 6.00% | | 7.00% | | 8.00% | Ultimate medical cost trend rate | 3.50% | | 3.50% | | 3.50% | Medical cost trend rate decreases to ultimate rate in year | 2029 | | 2029 | | 2028 |
Assumptions used to calculate the benefit obligation were as follows:
| | | | | | As of the Years Ending October 31, | | 2017 | | 2016 | U.S. defined benefit plans: | | | | Discount rate | 3.75% | | 3.75% | Non-U.S. defined benefit plans: | | | | Discount rate | 0.67-2.52% | | 0.40-2.62% | Average increase in compensation levels | 2.00-3.25% | | 2.00-4.25% | U.S. post-retirement benefits plans: | | | | Discount rate | 3.50% | | 3.50% | Current medical cost trend rate | 6.00% | | 6.00% | Ultimate medical cost trend rate | 3.50% | | 3.50% | Medical cost trend rate decreases to ultimate rate in year | 2029 | | 2029 |
|