2.0.0.10 false 3. SHARE-BASED COMPENSATION 006020 - Disclosure - 3. SHARE-BASED COMPENSATION true false false false 1 usd $ 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 2 Notes To Financial Statements [Abstract] 0 a_NotesToFinancialStatementsAbstract a false na duration string No definition available. false false false false false true false false false false false false 1 false false false false 0 0 false false false No definition available. false 3 SHARE-BASED COMPENSATION 1 us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock us-gaap true na duration string No definition available. false false false false false false false false false false false terselabel false 1 false false false false 0 0 <div> <div> <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent_0" width="100%" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"> <tr valign="top"> <td style="WIDTH: 13.2pt"> <div>  </div> </td> <td> <div align="left">3. SHARE-BASED COMPENSATION</div> </td> </tr></table> </div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; MARGIN-RIGHT: 0pt" align="justify">Agilent accounts for share-based awards in accordance with the provisions of the revised accounting guidance which requires the measurement and recognition of compensation expense for all share-based compensation awards made to our employees and directors including employee stock option awards, restricted stock units, employee stock purchases made under our employee stock purchase plan (“ESPP”) and performance share awards granted to selected members of our senior management under the long-term performance plan (“LTPP”) based on estimated fair values.</div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; MARGIN-RIGHT: 0pt" align="justify">The impact on our results for share-based compensation was as follows:</div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div> <div align="left"> <table cellpadding="0" cellspacing="0" width="100%" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"> <tr> <td valign="bottom">  </td> <td valign="bottom"> </td> <td colspan="6" valign="bottom"> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">Three Months Ended</div> </td> <td nowrap="nowrap" valign="bottom" style="TEXT-ALIGN: left"> </td> <td valign="bottom"> </td> <td colspan="6" valign="bottom"> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">Six Months Ended</div> </td> <td nowrap="nowrap" valign="bottom" style="TEXT-ALIGN: left"> </td> </tr><tr> <td valign="bottom" style="PADDING-BOTTOM: 2px">  </td> <td valign="bottom" style="PADDING-BOTTOM: 2px"> </td> <td colspan="6" valign="bottom" style="BORDER-BOTTOM: black 2px solid"> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">April 30,</div> </td> <td nowrap="nowrap" valign="bottom" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"> </td> <td valign="bottom" style="PADDING-BOTTOM: 2px"> </td> <td colspan="6" valign="bottom" style="BORDER-BOTTOM: black 2px solid"> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">April 30,</div> </td> <td nowrap="nowrap" valign="bottom" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"> </td> </tr><tr> <td valign="bottom" style="PADDING-BOTTOM: 2px">  </td> <td valign="bottom" style="PADDING-BOTTOM: 2px"> </td> <td colspan="2" valign="bottom" style="BORDER-BOTTOM: black 2px solid"> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">2010</div> </td> <td nowrap="nowrap" valign="bottom" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"> </td> <td valign="bottom" style="PADDING-BOTTOM: 2px"> </td> <td colspan="2" valign="bottom" style="BORDER-BOTTOM: black 2px solid"> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">2009</div> </td> <td nowrap="nowrap" valign="bottom" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"> </td> <td valign="bottom" style="PADDING-BOTTOM: 2px"> </td> <td colspan="2" valign="bottom" style="BORDER-BOTTOM: black 2px solid"> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">2010</div> </td> <td nowrap="nowrap" valign="bottom" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"> </td> <td valign="bottom" style="PADDING-BOTTOM: 2px"> </td> <td colspan="2" valign="bottom" style="BORDER-BOTTOM: black 2px solid"> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">2009</div> </td> <td nowrap="nowrap" valign="bottom" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"> </td> </tr><tr> <td valign="bottom">  </td> <td valign="bottom"> </td> <td colspan="14" valign="bottom"> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">(in millions)</div> </td> <td nowrap="nowrap" valign="bottom" style="TEXT-ALIGN: left"> </td> </tr><tr> <td align="left" valign="bottom" width="52%"> <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left">Cost of products and services</div> </td> <td align="right" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left">$</td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right">2</td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td align="right" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left">$</td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right">3</td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td align="right" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left">$</td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right">8</td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td align="right" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left">$</td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right">8</td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> </tr><tr> <td align="left" valign="bottom" width="52%"> <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left">Research and development</div> </td> <td align="right" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right">2</td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td align="right" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right">2</td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td align="right" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right">6</td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td align="right" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right">6</td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> </tr><tr> <td align="left" valign="bottom" width="52%" style="PADDING-BOTTOM: 2px"> <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left">Selling, general and administrative</div> </td> <td align="right" valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td> <td valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"> </td> <td valign="bottom" width="9%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right">9</td> <td nowrap="nowrap" valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"> </td> <td align="right" valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td> <td valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"> </td> <td valign="bottom" width="9%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right">13</td> <td nowrap="nowrap" valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"> </td> <td align="right" valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td> <td valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"> </td> <td valign="bottom" width="9%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right">24</td> <td nowrap="nowrap" valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"> </td> <td align="right" valign="bottom" width="1%" style="PADDING-BOTTOM: 2px"> </td> <td valign="bottom" width="1%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left"> </td> <td valign="bottom" width="9%" style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right">25</td> <td nowrap="nowrap" valign="bottom" width="1%" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"> </td> </tr><tr> <td align="left" valign="bottom" width="52%" style="PADDING-BOTTOM: 4px"> <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left">Total share-based compensation expense</div> </td> <td align="right" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"> </td> <td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left">$</td> <td valign="bottom" width="9%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right">13</td> <td nowrap="nowrap" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left"> </td> <td align="right" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"> </td> <td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left">$</td> <td valign="bottom" width="9%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right">18</td> <td nowrap="nowrap" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left"> </td> <td align="right" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"> </td> <td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left">$</td> <td valign="bottom" width="9%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right">38</td> <td nowrap="nowrap" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left"> </td> <td align="right" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px"> </td> <td valign="bottom" width="1%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left">$</td> <td valign="bottom" width="9%" style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right">39</td> <td nowrap="nowrap" valign="bottom" width="1%" style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left"> </td> </tr></table> </div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"> </div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">         Included in the expense amount for the three months ended April 30, 2010 and April 30, 2009 is approximately $1 million and $3 million, respectively, of incremental expense for the acceleration of share-based compensation related to the announced workforce reduction plan. Upon termination of the employees impacted by workforce reduction, the non-vested Agilent awards held by these employees immediately vest. Employees have a period of up to three months in which to exercise the Agilent options before such options are cancelled. In addition, during the three months ended April 30, 2010, we reversed approximately $3 million of expense for the cancellation of non-vested awards related to the separation of a senior executive.</div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">         At April 30, 2010 there was no share-based compensation capitalized within inventory. The windfall tax benefit realized from exercised stock options and similar awards was not material for the three and six months ended April 30, 2010 and 2009.</div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; MARGIN-RIGHT: 0pt" align="justify">The following assumptions were used to estimate the fair value of the options and LTPP grants.</div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div> <div align="left"> <table cellpadding="0" cellspacing="0" width="100%" style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"> <tr> <td valign="bottom">  </td> <td valign="bottom"> </td> <td colspan="6" valign="bottom"> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">Three Months Ended</div> </td> <td nowrap="nowrap" valign="bottom" style="TEXT-ALIGN: left"> </td> <td valign="bottom"> </td> <td colspan="6" valign="bottom"> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">Six Months Ended</div> </td> <td nowrap="nowrap" valign="bottom" style="TEXT-ALIGN: left"> </td> </tr><tr> <td valign="bottom" style="PADDING-BOTTOM: 2px">  </td> <td valign="bottom" style="PADDING-BOTTOM: 2px"> </td> <td colspan="6" valign="bottom" style="BORDER-BOTTOM: black 2px solid"> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">April 30,</div> </td> <td nowrap="nowrap" valign="bottom" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"> </td> <td valign="bottom" style="PADDING-BOTTOM: 2px"> </td> <td colspan="6" valign="bottom" style="BORDER-BOTTOM: black 2px solid"> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">April 30,</div> </td> <td nowrap="nowrap" valign="bottom" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"> </td> </tr><tr> <td valign="bottom" style="PADDING-BOTTOM: 2px">  </td> <td valign="bottom" style="PADDING-BOTTOM: 2px"> </td> <td colspan="2" valign="bottom" style="BORDER-BOTTOM: black 2px solid"> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">2010</div> </td> <td nowrap="nowrap" valign="bottom" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"> </td> <td valign="bottom" style="PADDING-BOTTOM: 2px"> </td> <td colspan="2" valign="bottom" style="BORDER-BOTTOM: black 2px solid"> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">2009</div> </td> <td nowrap="nowrap" valign="bottom" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"> </td> <td valign="bottom" style="PADDING-BOTTOM: 2px"> </td> <td colspan="2" valign="bottom" style="BORDER-BOTTOM: black 2px solid"> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">2010</div> </td> <td nowrap="nowrap" valign="bottom" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"> </td> <td valign="bottom" style="PADDING-BOTTOM: 2px"> </td> <td colspan="2" valign="bottom" style="BORDER-BOTTOM: black 2px solid"> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">2009</div> </td> <td nowrap="nowrap" valign="bottom" style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left"> </td> </tr><tr> <td valign="bottom">  </td> <td valign="bottom"> </td> <td colspan="2" valign="bottom"> </td> <td nowrap="nowrap" valign="bottom" style="TEXT-ALIGN: left"> </td> <td valign="bottom"> </td> <td colspan="2" valign="bottom"> </td> <td nowrap="nowrap" valign="bottom" style="TEXT-ALIGN: left"> </td> <td valign="bottom"> </td> <td colspan="2" valign="bottom"> </td> <td nowrap="nowrap" valign="bottom" style="TEXT-ALIGN: left"> </td> <td valign="bottom"> </td> <td colspan="2" valign="bottom"> </td> <td nowrap="nowrap" valign="bottom" style="TEXT-ALIGN: left"> </td> </tr><tr> <td align="left" valign="bottom"> <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left">Stock Option Plans:</div> </td> <td valign="bottom"> </td> <td colspan="2" valign="bottom"> </td> <td nowrap="nowrap" valign="bottom" style="TEXT-ALIGN: left"> </td> <td valign="bottom"> </td> <td colspan="2" valign="bottom"> </td> <td nowrap="nowrap" valign="bottom" style="TEXT-ALIGN: left"> </td> <td valign="bottom"> </td> <td colspan="2" valign="bottom"> </td> <td nowrap="nowrap" valign="bottom" style="TEXT-ALIGN: left"> </td> <td valign="bottom"> </td> <td colspan="2" valign="bottom"> </td> <td nowrap="nowrap" valign="bottom" style="TEXT-ALIGN: left"> </td> </tr><tr> <td align="left" valign="bottom" width="52%"> <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left">Weighted average risk-free interest rate</div> </td> <td align="right" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right">2.4 </td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left">%</td> <td align="right" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right">1.8 </td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left">%</td> <td align="right" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right">2.2 </td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left">%</td> <td align="right" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right">2.3 </td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left">%</td> </tr><tr> <td align="left" valign="bottom" width="52%"> <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left">Dividend yield</div> </td> <td align="right" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right">0 </td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left">%</td> <td align="right" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right">0 </td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left">%</td> <td align="right" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right">0 </td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left">%</td> <td align="right" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right">0 </td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left">%</td> </tr><tr> <td align="left" valign="bottom" width="52%"> <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left">Weighted average volatility</div> </td> <td align="right" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right">36 </td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left">%</td> <td align="right" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right">36 </td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left">%</td> <td align="right" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right">37 </td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left">%</td> <td align="right" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right">32 </td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left">%</td> </tr><tr> <td align="left" valign="bottom"> <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left">Expected life</div> </td> <td align="right" valign="bottom"> </td> <td align="right" colspan="2" valign="bottom"> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right">4.4 yrs</div> </td> <td nowrap="nowrap" valign="bottom" style="TEXT-ALIGN: left"> </td> <td align="right" valign="bottom"> </td> <td align="right" colspan="2" valign="bottom"> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right">4.4 yrs</div> </td> <td nowrap="nowrap" valign="bottom" style="TEXT-ALIGN: left"> </td> <td align="right" valign="bottom"> </td> <td align="right" colspan="2" valign="bottom"> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right">4.4 yrs</div> </td> <td nowrap="nowrap" valign="bottom" style="TEXT-ALIGN: left"> </td> <td align="right" valign="bottom"> </td> <td align="right" colspan="2" valign="bottom"> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right">4.4 yrs</div> </td> <td nowrap="nowrap" valign="bottom" style="TEXT-ALIGN: left"> </td> </tr><tr> <td valign="bottom" width="52%">  </td> <td valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right"> </td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right"> </td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right"> </td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right"> </td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> </tr><tr> <td align="left" valign="bottom" width="52%"> <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left">LTPP:</div> </td> <td valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right"> </td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right"> </td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right"> </td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right"> </td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> </tr><tr> <td align="left" valign="bottom" width="52%"> <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left">Volatility of Agilent shares</div> </td> <td align="right" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right">39 </td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left">%</td> <td align="right" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right">33 </td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left">%</td> <td align="right" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right">39 </td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left">%</td> <td align="right" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right">33 </td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left">%</td> </tr><tr> <td align="left" valign="bottom" width="52%"> <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left">Volatility of selected peer-company shares</div> </td> <td align="right" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right">21%-79 </td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left">%</td> <td align="right" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right">17%-62 </td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left">%</td> <td align="right" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right">20%-80 </td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left">%</td> <td align="right" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right">17%-62 </td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left">%</td> </tr><tr> <td align="left" valign="bottom" width="52%"> <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left">Price-wise correlation with selected peers</div> </td> <td align="right" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right">53 </td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left">%</td> <td align="right" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right">35 </td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left">%</td> <td align="right" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right">53 </td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left">%</td> <td align="right" valign="bottom" width="1%"> </td> <td valign="bottom" width="1%" style="TEXT-ALIGN: left"> </td> <td valign="bottom" width="9%" style="TEXT-ALIGN: right">35 </td> <td nowrap="nowrap" valign="bottom" width="1%" style="TEXT-ALIGN: left">%</td> </tr></table> </div> <div style="DISPLAY: block; TEXT-INDENT: 0pt"> </div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; MARGIN-RIGHT: 0pt" align="justify">The fair value of share-based awards for employee stock option awards was estimated using the Black-Scholes option pricing model. 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’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’s common stock on the date of grant. The ESPP allows eligible employees to purchase shares of our common stock at 85 percent of the purchase price and uses the purchase date to establish the fair market value.</div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; MARGIN-RIGHT: 0pt" align="left">We use historical volatility to estimate the expected stock price volatility assumption for employee stock option awards. In reaching the conclusion, we have considered many factors including the extent to which our options are currently traded and our ability to find traded options in the current market with similar terms and prices to the options we are valuing. In estimating the expected life of our options granted we considered the historical option exercise behavior of our employees, which we believe is representative of future behavior.</div> </div>   3. SHARE-BASED COMPENSATION   Agilent accounts for false false false Disclosure of compensation-related costs for share-based compensation which may include disclosure of policies, compensation plan details, allocation of stock compensation, incentive distributions, share-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 123R -Paragraph 64, 65, A240 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Statement of Position (SOP) -Number 93-6 -Paragraph 53 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 14 false false 1 2 false UnKnown UnKnown UnKnown false true