Item 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

AGILENT TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

(in millions, except per share data)

(Unaudited)

			Three Months Ended												Nine Months Ended
			July 31,												July 31,
			2024						2023						2024						2023
Net revenue:
Products			$	1,121					$	1,222					$	3,455					$	3,819
Services and other			457						450						1,354						1,326
Total net revenue			1,578						1,672						4,809						5,145
Costs and expenses:
Cost of products			491						784						1,486						1,890
Cost of services and other			232						230						704						705
Total costs			723						1,014						2,190						2,595
Research and development			127						118						368						367
Selling, general and administrative			395						407						1,171						1,241
Total costs and expenses			1,245						1,539						3,729						4,203
Income from operations			333						133						1,080						942
Interest income			19						13						56						34
Interest expense			(22)						(24)						(64)						(73)
Other income (expense), net			13						10						48						16
Income before taxes			343						132						1,120						919
Provision for income taxes			61						21						182						154
Net income			$	282					$	111					$	938					$	765
Net income per share:
Basic			$	0.97					$	0.38					$	3.21					$	2.59
Diluted			$	0.97					$	0.38					$	3.20					$	2.58
Weighted average shares used in computing net income per share:
Basic			290						294						292						295
Diluted			291						295						293						296

The accompanying notes are an integral part of these condensed consolidated financial statements.

AGILENT TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS)

(in millions)

(Unaudited)

			Three Months Ended												Nine Months Ended
			July 31,												July 31,
			2024						2023						2024						2023
Net income			$	282					$	111					$	938					$	765
Other comprehensive income (loss):
Unrealized gain (loss) on derivative instruments, net of tax expense (benefit) of $0, $0, $(1) and $(5)			(3)						2						(3)						(13)
Amounts reclassified into earnings related to derivative instruments, net of tax expense (benefit) of $(1), $1, $(2) and $0			(2)						1						(5)						—
Foreign currency translation, net of tax expense (benefit) of $0, $(1), $0 and $(2)			13						9						10						87
Net defined benefit pension cost and post retirement plan costs:
Change in actuarial net gain (loss), net of tax expense (benefit) of $(2), $0, $(4) and $0			(2)						(1)						(6)						3
Change in net prior service benefit, net of tax expense of $0, $0, $0 and $0			—						—						—						(1)
Other comprehensive income (loss)			6						11						(4)						76
Total comprehensive income			$	288					$	122					$	934					$	841

The accompanying notes are an integral part of these condensed consolidated financial statements.

AGILENT TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED BALANCE SHEET

(in millions, except par value and share data)

(Unaudited)

			July 31, 2024						October 31, 2023
ASSETS
Current assets:
Cash and cash equivalents			$	1,779					$	1,590
Accounts receivable, net			1,227						1,291
Inventory			978						1,031
Other current assets			272						274
Total current assets			4,256						4,186
Property, plant and equipment, net			1,446						1,270
Goodwill			3,965						3,960
Other intangible assets, net			392						475
Long-term investments			186						164
Other assets			751						708
Total assets			$	10,996					$	10,763
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable			$	497					$	418
Employee compensation and benefits			309						371
Deferred revenue			524						505
Short-term debt			795						—
Other accrued liabilities			264						309
Total current liabilities			2,389						1,603
Long-term debt			2,137						2,735
Retirement and post-retirement benefits			96						103
Other long-term liabilities			471						477
Total liabilities			5,093						4,918
Commitments and contingencies (Notes 9 and 12)
Total equity:
Stockholders’ equity:
Preferred stock; $0.01 par value; 125,000,000 shares authorized; none issued and outstanding at July 31, 2024 and October 31, 2023			—						—
Common stock; $0.01 par value; 2,000,000,000 shares authorized; 287,529,636 shares at July 31, 2024 and 292,123,241 shares at October 31, 2023 issued and outstanding			3						3
Additional paid-in-capital			5,458						5,387
Retained earnings			773						782
Accumulated other comprehensive loss			(331)						(327)
Total stockholders' equity			5,903						5,845
Total liabilities and stockholders' equity			$	10,996					$	10,763

The accompanying notes are an integral part of these condensed consolidated financial statements.

AGILENT TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(in millions)

(Unaudited)

			Nine Months Ended
			July 31,
			2024						2023
Cash flows from operating activities:
Net income			$	938					$	765
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			188						209
Share-based compensation			103						97
Deferred taxes			(8)						(69)
Excess and obsolete inventory related charges			33						27
Net (gain) loss on equity securities			(6)						13
Asset impairment charges			8						277
Change in fair value of contingent consideration			—						1
Other non-cash (income) expense, net			2						4
Changes in assets and liabilities:
Accounts receivable, net			67						113
Inventory			15						(53)
Accounts payable			78						(117)
Employee compensation and benefits			(65)						(137)
Other assets and liabilities			(83)						126
Net cash provided by operating activities			1,270						1,256
Cash flows from investing activities:
Payments to acquire property, plant and equipment			(285)						(214)
Proceeds from sale of equity securities			—						5
Payments to acquire equity securities			(5)						(3)
Proceeds from convertible note			—						4
Payments in exchange for convertible note			(11)						(11)
Payments to acquire businesses and intangible assets, net of cash acquired			(3)						(51)
Net cash used in investing activities			(304)						(270)
Cash flows from financing activities:
Proceeds from issuance of common stock under employee stock plans			76						65
Payments of taxes related to net share settlement of equity awards			(27)						(53)
Payments for repurchase of common stock			(815)						(495)
Payments of dividends			(206)						(199)
Repayments of long-term debt			(180)						—
Net proceeds from (repayments of) short-term debt			375						20
Payment for contingent consideration			—						(67)
Net cash used in financing activities			(777)						(729)
Effect of exchange rate movements			—						19
Net increase (decrease) in cash, cash equivalents and restricted cash			189						276
Cash, cash equivalents and restricted cash at beginning of period			1,593						1,056
Cash, cash equivalents and restricted cash at end of period			$	1,782					$	1,332
Supplemental cash flow information:
Income tax paid, net of refunds received			$	284					$	143
Interest payments, net of capitalized interest			$	50					$	60
Net change in property, plant and equipment included in accounts payable and accrued liabilities-increase (decrease)			$	—					$	(20)

The accompanying notes are an integral part of these condensed consolidated financial statements.

AGILENT TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED STATEMENT OF EQUITY

(in millions, except number of shares in thousands)

(Unaudited)

			Common Stock																								Accumulated Other Comprehensive Loss
Three Months Ended July 31, 2024			Number of Shares						Par Value						Additional Paid-in Capital						Retained Earnings						Total Stockholders' Equity
Balance as of April 30, 2024			291,588						$	3					$	5,458					$	1,090					$	(337)					$	6,214
Components of comprehensive income, net of tax:
Net income			—						—						—						282						—						282
Other comprehensive income (loss)			—						—						—						—						6						6
Total comprehensive income																																	288
Cash dividends declared ($0.236 per common share)			—						—						—						(68)						—						(68)
Share-based awards issued, net of tax of $1			339						—						31						—						—						31
Repurchase of common stock, including excise taxes			(4,397)						—						(59)						(531)						—						(590)
Share-based compensation			—						—						28						—						—						28
Balance as of July 31, 2024			287,530						$	3					$	5,458					$	773					$	(331)					$	5,903

			Common Stock																								Accumulated Other Comprehensive Loss
Nine Months Ended July 31, 2024			Number of Shares						Par Value						Additional Paid-in Capital						Retained Earnings						Total Stockholders' Equity
Balance as of October 31, 2023			292,123						$	3					$	5,387					$	782					$	(327)					$	5,845
Components of comprehensive income, net of tax:
Net income			—						—						—						938						—						938
Other comprehensive income (loss)			—						—						—						—						(4)						(4)
Total comprehensive income																																	934
Cash dividends declared ($0.708 per common share)			—						—						—						(206)						—						(206)
Share-based awards issued, net of tax of $27			1,398						—						48						—						—						48
Repurchase of common stock, including excise taxes			(5,991)						—						(80)						(741)						—						(821)
Share-based compensation			—						—						103						—						—						103
Balance as of July 31, 2024			287,530						$	3					$	5,458					$	773					$	(331)					$	5,903

			Common Stock																								Accumulated Other Comprehensive Loss
Three Months Ended July 31, 2023			Number of Shares						Par Value						Additional Paid-in Capital						Retained Earnings						Total Stockholders' Equity
Balance as of April 30, 2023			295,261						$	3					$	5,360					$	700					$	(282)					$	5,781
Components of comprehensive income, net of tax:
Net income			—						—						—						111						—						111
Other comprehensive income (loss)			—						—						—						—						11						11
Total comprehensive income																																	122
Cash dividends declared ($0.225 per common share)			—						—						—						(66)						—						(66)
Share-based awards issued, net of tax of $1			298						—						29						—						—						29
Repurchase of common stock, including excise taxes			(2,812)						—						(36)						(301)						—						(337)
Share-based compensation			—						—						29						—						—						29
Balance as of July 31, 2023			292,747						$	3					$	5,382					$	444					$	(271)					$	5,558

			Common Stock																								Accumulated Other Comprehensive Loss
Nine Months Ended July 31, 2023			Number of Shares						Par Value						Additional Paid-in Capital						Retained Earnings						Total Stockholders' Equity
Balance as of October 31, 2022			295,259						$	3					$	5,325					$	324					$	(347)					$	5,305
Components of comprehensive income, net of tax:
Net income			—						—						—						765						—						765
Other comprehensive income (loss)			—						—						—						—						76						76
Total comprehensive income																																	841
Cash dividends declared ($0.675 per common share)			—						—						—						(199)						—						(199)
Share-based awards issued, net of tax of $53			1,405						—						11						—						—						11
Repurchase of common stock, including excise taxes			(3,917)						—						(51)						(446)						—						(497)
Share-based compensation			—						—						97						—						—						97
Balance as of July 31, 2023			292,747						$	3					$	5,382					$	444					$	(271)					$	5,558

The accompanying notes are an integral part of these condensed consolidated financial statements.

AGILENT TECHNOLOGIES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

1. OVERVIEW, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Overview. Agilent Technologies, Inc. ("we," "Agilent" or the "company"), incorporated in Delaware in May 1999, is a global leader in life sciences, diagnostics and applied chemical markets, providing application focused solutions that include instruments, software, services and consumables for the entire laboratory workflow.

Our fiscal year-end is October 31, and our fiscal quarters end on January 31, April 30 and July 31. Unless otherwise stated, these dates refer to our fiscal year and fiscal quarters.

New Segment Structure. In the first quarter of fiscal year 2024, we announced a change in our operating segments to move our cell analysis business from our life sciences and applied markets segment to our diagnostics and genomics operating segment in order to further strengthen growth opportunities for both organizations. Following this reorganization, we continue to have three business segments comprised of life sciences and applied markets, diagnostics and genomics and Agilent CrossLab, each of which continues to comprise a reportable segment. We began reporting under this new structure beginning with the Quarterly Report on Form 10-Q for the period ended January 31, 2024. All historical financial segment information has been recast to conform to this new presentation in our financial statements and accompanying notes. There was no change to our Agilent CrossLab business segment.

Acquisition. On July 21, 2024 we signed an agreement to acquire BIOVECTRA, a leading specialized contract development and manufacturing organization for $925 million in cash. The acquisition is subject to certain customary closing conditions, including receipt of regulatory approvals. The financial results of BIOVECTRA will be included within our financial results from the date of the close, which is expected to occur before calendar year 2025.

Basis of Presentation. We have prepared the accompanying financial data for the three and nine months ended July 31, 2024 and 2023 pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles (“GAAP”) in the U.S. have been condensed or omitted pursuant to such rules and regulations. The October 31, 2023 condensed balance sheet data was derived from audited financial statements but does not include all the disclosures required in audited financial statements by U.S. GAAP. The accompanying financial data and information should be read in conjunction with our Annual Report on Form 10-K for the fiscal year ended October 31, 2023.

In the opinion of management, the accompanying condensed consolidated financial statements contain all normal and recurring adjustments necessary for a fair statement of our condensed consolidated balance sheet as of July 31, 2024 and October 31, 2023, condensed consolidated statement of comprehensive income (loss) for the three and nine months ended July 31, 2024 and 2023, condensed consolidated statement of operations for the three and nine months ended July 31, 2024 and 2023, condensed consolidated statement of cash flows for the nine months ended July 31, 2024 and 2023 and condensed consolidated statement of equity for the three and nine months ended July 31, 2024 and 2023.

Use of Estimates. 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’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, valuation of goodwill and purchased intangible assets, inventory valuation, retirement and post-retirement benefit plan assumptions and accounting for income taxes.

AGILENT TECHNOLOGIES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - (Continued)

Restricted Cash and Restricted Cash Equivalents. Restricted cash and restricted cash equivalents are included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. A reconciliation of cash, cash equivalents and restricted cash to the condensed consolidated balance sheet follows:

			July 31,						October 31,
			2024						2023
			(in millions)
Cash and cash equivalents			$	1,779					$	1,590
Restricted cash included in other assets			3						3
Total cash, cash equivalents and restricted cash			$	1,782					$	1,593

Leases. As of July 31, 2024 and October 31, 2023, operating lease right-of-use assets where we are the lessee were $178 million and $154 million, respectively, and were included within other assets in the accompanying condensed consolidated balance sheet. The associated operating lease liabilities were $184 million and $164 million as of July 31, 2024 and October 31, 2023, respectively, and were included in other accrued liabilities and other long-term liabilities in the accompanying condensed consolidated balance sheet.

Variable Interest Entities. We make a determination upon entering into an arrangement whether an entity in which we have made an investment is considered a Variable Interest Entity (“VIE”). We evaluate our investments in privately held companies on an ongoing basis. We have determined that as of July 31, 2024 and October 31, 2023, there were no VIEs required to be consolidated in our consolidated financial statements because we do not have a controlling financial interest in any of the VIEs in which we have invested nor are we the primary beneficiary. We account for these investments under either the equity method or as equity investments without readily determinable fair value ("RDFV"), depending on the circumstances. We periodically reassess whether we are the primary beneficiary of a VIE. The reassessment process considers whether we have acquired the power to direct the most significant activities of the VIE through changes in governing documents or other circumstances. We also reconsider whether entities previously determined not to be VIEs have become VIEs and vice-versa, based on changes in facts and circumstances including changes in contractual arrangements and capital structure.

As of July 31, 2024 and October 31, 2023, the total carrying value of investments and loans in privately held companies considered as VIEs was $93 million and $82 million, respectively. The maximum exposure is equal to the carrying value because we do not have future funding commitments. The investments are included on the long-term investments line and the loans on the other current assets and other assets lines (depending upon tenure of loan) on the condensed consolidated balance sheet.

Fair Value of Financial Instruments. The carrying values of certain of our financial instruments including cash and cash equivalents, accounts receivable, accounts payable, accrued compensation and other accrued liabilities approximate fair value because of their short maturities. The fair value of long-term equity investments which are readily determinable, and which are not accounted under the equity method are reported at fair value using quoted market prices for those securities when available with gains and losses included in net income. The fair value of long-term equity investments which are not readily determinable, and which are not accounted under the equity method are reported at cost with adjustments for observable changes in prices or impairments included in net income. As of July 31, 2024 and October 31, 2023, the fair value of the term loan approximates its carrying value. As of July 31, 2024, the fair value of our senior notes was $1,905 million with a carrying value of $2,137 million. This compares to the fair value of our senior notes of $1,747 million with a carrying value of $2,135 million as of October 31, 2023. The change in the fair value compared to carrying value in the nine months ended July 31, 2024 is primarily due to decreased market interest rates. The fair value was calculated from quoted prices which are primarily Level 1 inputs under the accounting guidance. The fair value of foreign currency contracts used for hedging purposes is estimated internally by using inputs tied to active markets. These inputs, for example, interest rate yield curves, foreign exchange rates, and forward and spot prices for currencies are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. See also Note 9, "Fair Value Measurements" for additional information on the fair value of financial instruments and contingent consideration.

AGILENT TECHNOLOGIES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - (Continued)

2. NEW ACCOUNTING PRONOUNCEMENTS

There were no additions to the new accounting pronouncements not yet adopted as described in our Annual Report on Form 10-K for the fiscal year ended October 31, 2023.

Other amendments to GAAP in the U.S. that have been issued by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on our condensed consolidated financial statements upon adoption.

3. REVENUE

The following table presents the company’s total revenue and segment revenue disaggregated by geographical region:

			Three Months Ended July 31,
			2024																								2023
			Life Sciences and Applied Markets						Agilent CrossLab						Diagnostics and Genomics						Total						Life Sciences and Applied Markets						Agilent CrossLab						Diagnostics and Genomics						Total
			(in millions)
Revenue by Region
Americas			$	251					$	170					$	205					$	626					$	270					$	159					$	238					$	667
Europe			193						113						126						432						203						108						121						432
Asia Pacific			338						128						54						520						381						129						63						573
Total			$	782					$	411					$	385					$	1,578					$	854					$	396					$	422					$	1,672

			Nine Months Ended July 31,
			2024																								2023
			Life Sciences and Applied Markets						Agilent CrossLab						Diagnostics and Genomics						Total						Life Sciences and Applied Markets						Agilent CrossLab						Diagnostics and Genomics						Total
			(in millions)
Revenue by Region
Americas			$	735					$	501					$	657					$	1,893					$	819					$	467					$	744					$	2,030
Europe			605						335						376						1,316						649						309						363						1,321
Asia Pacific			1,042						382						176						1,600						1,203						388						203						1,794
Total			$	2,382					$	1,218					$	1,209					$	4,809					$	2,671					$	1,164					$	1,310					$	5,145

The following table presents the company’s total revenue disaggregated by end markets and by revenue type:

			Three Months Ended												Nine Months Ended
			July 31,												July 31,
			2024						2023						2024						2023
			(in millions)
Revenue by End Markets
Pharmaceutical			$	540					$	592					$	1,647					$	1,843
Chemicals and Advanced Materials			356						378						1,110						1,162
Diagnostics and Clinical			242						241						709						730
Food			144						151						440						472
Academia and Government			128						146						417						451
Environmental and Forensics			168						164						486						487
Total			$	1,578					$	1,672					$	4,809					$	5,145
Revenue by Type
Instrumentation			$	556					$	643					$	1,734					$	2,091
Non-instrumentation and other			1,022						1,029						3,075						3,054
Total			$	1,578					$	1,672					$	4,809					$	5,145

AGILENT TECHNOLOGIES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - (Continued)

Revenue by region is based on the ship to location of the customer. Revenue by end market is determined by the market indicator of the customer and by customer type. Instrumentation revenue includes sales from instruments, remarketed instruments and third-party products. Non-instrumentation and other revenue include sales from contract and per incident services, our companion diagnostics and our nucleic acid solutions businesses as well as sales from spare parts, consumables, reagents, vacuum pumps, subscriptions, software licenses and associated services.

Contract Balances

Contract Assets

Contract assets (unbilled accounts receivable) primarily relate to the company's right to consideration for work completed but not billed at the reporting date. The unbilled receivables are reclassified to trade receivables when billed to customers. Contract assets are generally classified as current assets and are included in "Accounts receivable, net" in the condensed consolidated balance sheet. The balances of contract assets as of July 31, 2024 and October 31, 2023, were $244 million and $252 million, respectively.

Contract Liabilities

The following table provides information about contract liabilities (deferred revenue) and the significant changes in the balances during the nine months ended July 31, 2024:

						Contract Liabilities
						(in millions)
Ending balance as of October 31, 2023						$	616
Net revenue deferred in the period						456
Revenue recognized that was included in the contract liability balance at the beginning of the period						(422)
Change in deferrals from customer cash advances, net of revenue recognized						(8)
Currency translation and other adjustments						4
Ending balance as of July 31, 2024						$	646

During the nine months ended July 31, 2023 revenue recognized that was included in the contract liability balance at October 31, 2022 was $368 million.

Contract liabilities primarily relate to multiple element arrangements for which billing has occurred but transfer of control of all elements to the customer has either partially or not occurred at the balance sheet date. This includes cash received from customers for products and related installation and services in advance of the transfer of control. Contract liabilities are classified as either current in deferred revenue or long-term in other long-term liabilities in the condensed consolidated balance sheet based on the timing of when we expect to complete our performance obligation.

Contract Costs

Incremental costs of obtaining a contract with a customer are recognized as an asset if we expect the benefit of those costs to be longer than one year. We have determined that certain sales incentive programs meet the requirements to be capitalized. The change in total capitalized costs to obtain a contract was immaterial during the three and nine months ended July 31, 2024, and was included in other current and long-term assets on the condensed consolidated balance sheet. We have applied the practical expedient to expense costs as incurred for costs to obtain a contract with a customer when the amortization period would have been one year or less. These costs include the company's internal sales force compensation program, as we have determined that annual compensation is commensurate with annual sales activities.

Transaction Price Allocated to the Remaining Performance Obligations

We have applied the practical expedient in ASC 606-10-50-14 and have not disclosed information about transaction price allocated to remaining performance obligations that have original expected durations of one year or less.

AGILENT TECHNOLOGIES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - (Continued)

The estimated revenue expected to be recognized for remaining performance obligations that have an original term of more than one year, as of July 31, 2024, was $344 million, the majority of which is expected to be recognized over the next 12 months. Remaining performance obligations primarily include extended warranty, customer manufacturing contracts, software maintenance contracts and revenue associated with lease arrangements.

4. SHARE-BASED COMPENSATION

We account for share-based awards in accordance with the provisions of the authoritative accounting guidance which requires the measurement and recognition of compensation expense for all share-based payment awards made to our employees and directors including employee stock options, 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.

We have two LTPP performance stock award programs, which are administered under the 2018 Stock Plan, for our executive officers and other key employees. Participants in our LTPP Total Stockholders’ Return (“TSR”) and LTPP Earnings Per Share (“EPS”) programs are entitled to receive shares of the company's stock after the end of a three-year period, if specified performance targets for the programs are met. The LTPP-TSR awards are generally designed to meet the criteria of a performance award with the performance metrics and peer group comparison based on the TSR set at the beginning of the performance period. The LTPP-EPS awards are based on the company’s EPS performance over a three-year period. The performance targets for the LTPP-EPS for year 2 and year 3 of the performance period are set in the first quarter of year 2 and year 3, respectively. All LTPP awards are subject to a one-year post-vest holding period.

The final LTPP award may vary from 0 percent to 200 percent of the target award. We consider the dilutive impact of these programs in our diluted net income per share calculation only to the extent that the performance conditions are expected to be met. Restricted stock units generally vest, with some exceptions, at a rate of 25 percent per year over a period of four years from the date of grant.

Stock options granted under the 2018 Stock Plan may be either "incentive stock options", as defined in Section 422 of the Internal Revenue Code, or non-statutory. Options generally vest at a rate of 25 percent per year over a period of four years from the date of grant with a maximum contractual term of ten years. The exercise price for stock options is generally not less than 100 percent of the fair market value of our common stock on the date the stock award is granted. We issue new shares of common stock when employee stock options are exercised.

The impact on our results for share-based compensation was as follows:

			Three Months Ended												Nine Months Ended
			July 31,												July 31,
			2024						2023						2024						2023
			(in millions)
Cost of products and services			$	9					$	8					$	32					$	28
Research and development			4						5						13						13
Selling, general and administrative			15						16						59						57
Total share-based compensation expense			$	28					$	29					$	104					$	98

At July 31, 2024 and October 31, 2023, no share-based compensation was capitalized within inventory.

AGILENT TECHNOLOGIES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - (Continued)

The following assumptions were used to estimate the fair value of awards granted.

			Three Months Ended												Nine Months Ended
			July 31,												July 31,
			2024						2023						2024						2023
Stock Option Plans:
Weighted average risk-free interest rate			4.5%						3.8%						4.4%						3.9%
Dividend yield			0.7%						0.7%						0.8%						0.6%
Weighted average volatility			29%						29%						29%						28%
Expected life			5.5 years						5.5 years						5.5 years						5.5 years
LTPP:
Volatility of Agilent shares			28%						31%						28%						31%
Volatility of selected peer-company shares			16%-70%						22%-84%						16%-70%						22%-84%
Pair-wise correlation with selected peers			30%						42%						30%						42%
Post-vest holding restriction discount for all executive awards			6.4%						7.1%						6.4%						7.1%

The fair value of share-based awards for our employee stock option awards was estimated using the Black-Scholes option pricing model. Shares granted under the LTPP (TSR) were valued using a Monte Carlo simulation model. The Monte Carlo simulation fair value model requires the use of highly subjective and complex assumptions, including the price volatility of the underlying stock. For the volatility of our LTPP (TSR) grants, we used our own historical stock price volatility.

The ESPP allows eligible employees to purchase shares of our common stock at 85 percent of the price at purchase and uses the purchase date to establish the fair market value.

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 executives, which we believe is representative of future behavior.

The estimated fair value of restricted stock units and LTPP (EPS) awards is determined based on the market price of our common stock on the date of grant adjusted for expected dividend yield. The compensation cost for LTPP (EPS) reflects the cost of awards that are probable to vest at the end of the performance period.

All LTPP awards granted to our senior management employees have a one-year post-vest holding restriction. The estimated discount associated with post-vest holding restrictions is calculated using the Finnerty model. The model calculates the potential lost value if the employees were able to sell the shares during the lack of marketability period, instead of being required to hold the shares. The model used the same historical stock price volatility and dividend yield assumption used for the Monte Carlo simulation model and an expected dividend yield to compute the discount.

5. INCOME TAXES

For the three and nine months ended July 31, 2024, our income tax expense was $61 million with an effective tax rate of 17.8 percent and $182 million with an effective tax rate of 16.3 percent, respectively. For the three months ended July 31, 2024, there were no significant discrete items. For the nine months ended July 31, 2024, our effective tax rate and the resulting provision for income taxes were impacted by the tax expense of $12 million related to the settlement of an audit in Singapore.

For the three and nine months ended July 31, 2023, our income tax expense was $21 million with an effective tax rate of 15.9 percent and $154 million with an effective tax rate of 16.8 percent, respectively. For the three and nine months ended July 31, 2023, our effective tax rate and the resulting provision for income taxes were impacted by the tax benefit of $63 million due to the asset impairment charge related to the shutdown of our Resolution Bioscience business. For the nine months ended July 31, 2023, our effective tax rate and the resulting provision for income taxes were also impacted by the excess tax benefits from stock-based compensation of $13 million along with the expiration of various foreign statutes of limitations which resulted in the recognition of previously unrecognized tax benefits of $10 million.

AGILENT TECHNOLOGIES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - (Continued)

In the U.S., tax years remain open back to the year 2020 for federal income tax purposes and 2019 for significant states. In other major jurisdictions where the company conducts business, the tax years generally remain open back to the year 2014.

With these jurisdictions and the U.S., it is reasonably possible that some tax audits may be completed over the next twelve months. However, management is not able to provide a reasonably reliable estimate of the timing of any other future tax payments or change in unrecognized tax benefits, if any.

6. NET INCOME PER SHARE

The following is a reconciliation of the numerator and denominator of the basic and diluted net income per share computations for the periods presented below:

			Three Months Ended												Nine Months Ended
			July 31,												July 31,
			2024						2023						2024						2023
			(in millions)
Numerator:
Net income			$	282					$	111					$	938					$	765
Denominator:
Basic weighted-average shares			290						294						292						295
Potential common shares— stock options and other employee stock plans			1						1						1						1
Diluted weighted-average shares			291						295						293						296

The dilutive effect of share-based awards is reflected in diluted net income per share by application of the treasury stock method, which includes consideration of unamortized share-based compensation expense and the dilutive effect of in-the-money options and non-vested restricted stock units. Under the treasury stock method, the amount the employee must pay for exercising stock options and unamortized share-based compensation expense collectively are assumed proceeds to be used to repurchase hypothetical shares. An increase in the fair market value of the company's common stock can result in a greater dilutive effect from potentially dilutive awards.

We exclude stock options with exercise prices greater than the average market price of our common stock from the calculation of diluted earnings per share because their effect would be anti-dilutive. In addition, we exclude from the calculation of diluted earnings per share stock options, ESPP, LTPP and restricted stock awards whose combined exercise price and unamortized fair value were greater than the average market price of our common stock because their effect would also be anti-dilutive.

For both the three and nine months ended July 31, 2024 and 2023, potential common shares excluded from the calculation of diluted earnings per share were not material.

7. INVENTORY

Inventory as of July 31, 2024 and October 31, 2023 consisted of the following:

			July 31, 2024						October 31, 2023
			(in millions)
Finished goods			$	538					$	570
Purchased parts and fabricated assemblies			440						461
Inventory			$	978					$	1,031

AGILENT TECHNOLOGIES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - (Continued)

8. GOODWILL AND OTHER INTANGIBLE ASSETS

The following table presents goodwill balances and the movements for each of our reportable segments during the nine months ended July 31, 2024:

			Life Sciences and Applied Markets						Diagnostics and Genomics						Agilent CrossLab						Total
			(in millions)
Goodwill as of October 31, 2023			$	1,579					$	2,124					$	257					$	3,960
Foreign currency translation impact			3						—						2						5
Goodwill as of July 31, 2024			$	1,582					$	2,124					$	259					$	3,965

In the first quarter of fiscal year 2024, we reorganized our operating segments and moved our cell analysis business from our life sciences and applied markets business segment to our diagnostics and genomics business segment. As a result, we reassigned approximately $168 million of goodwill from our life sciences and applied markets business segment to our diagnostics and genomics business segment using the relative fair value allocation approach. Goodwill balances as of October 31, 2023, have been recast to conform to this new presentation. As a result of the reorganization, there was no change to our reporting units. In addition, we performed a goodwill impairment test, and the results of the analysis indicated that the fair values for all three of our reporting units were in excess of their carrying values by substantial amounts; therefore, no impairment was indicated.

The component parts of other intangible assets as of October 31, 2023 and July 31, 2024 are shown in the table below:

			Other Intangible Assets
			Gross Carrying Amount						Accumulated Amortization						Net Book Value
			(in millions)
As of October 31, 2023
Purchased technology			$	1,467					$	1,093					$	374
Trademark/Tradename			196						163						33
Customer relationships			149						112						37
Third-party technology and licenses			34						13						21
Total amortizable intangible assets			1,846						1,381						465
In-Process R&D			10						—						10
Total			$	1,856					$	1,381					$	475
As of July 31, 2024
Purchased technology			$	1,476					$	1,151					$	325
Trademark/Tradename			196						173						23
Customer relationships			149						121						28
Third-party technology and licenses			33						17						16
Total amortizable intangible assets			1,854						1,462						392
In-Process R&D			—						—						—
Total			$	1,854					$	1,462					$	392

During the nine months ended July 31, 2024, there were no additions to goodwill. During the nine months ended July 31, 2024, we recorded $3 million in additions to other intangible assets related to an acquisition. During the nine months ended July 31, 2024, we reclassified $4 million of in-process research and development intangible assets to purchased technology upon the completion of a project. During the nine months ended July 31, 2024, there was no change to other intangibles due to the impact of foreign currency.

In general, for U.S. federal tax purposes, goodwill from asset purchases is amortizable; however, any goodwill created as part of a stock acquisition is not deductible.

AGILENT TECHNOLOGIES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - (Continued)

Each quarter we review the events and circumstances to determine if impairment of indefinite-lived intangible assets and goodwill is indicated. During the three months ended July 31, 2024, we did not identify any triggering events or circumstances which would indicate an impairment of goodwill or indefinite-lived intangible assets. During the nine months ended July 31, 2024, we recorded an impairment of in-process research and development of $6 million in research and development in the condensed consolidated statement of operations related to a project in our life sciences and applied markets segment. During the nine months ended July 31, 2024 we did not identify any triggering events or circumstances which would indicate an impairment of goodwill.

During the three and nine months ended July 31, 2023, we did not identify any triggering events or circumstances which would indicate an impairment of goodwill or indefinite-lived intangible assets. During the three and nine months ended July 31, 2023, we recorded an impairment of finite-lived intangible assets of $258 million related to the shutdown of our Resolution Bioscience business in our diagnostics and genomics segment. Of the $258 million, $249 million was recorded in cost of sales and $9 million was recorded in selling general and administrative expenses on our condensed consolidated statement of operations in both the three and nine months ended July 31, 2023.

Amortization expense of intangible assets was $25 million and $78 million for the three and nine months ended July 31, 2024, respectively. Amortization expense of intangible assets was $39 million and $113 million for the three and nine months ended July 31, 2023, respectively.

Future amortization expense related to existing finite-lived purchased intangible assets for the remainder of fiscal year 2024 and for each of the next five fiscal years and thereafter is estimated below:

Estimated future amortization expense:
(in millions)
Remainder of 2024			$	23
2025			$	84
2026			$	55
2027			$	53
2028			$	46
2029			$	42
Thereafter			$	89

9. FAIR VALUE MEASUREMENTS

The authoritative guidance defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, we consider the principal or most advantageous market and assumptions that market participants would use when pricing the asset or liability.

Fair Value Hierarchy

The guidance establishes a fair value hierarchy that prioritizes the use of inputs used in valuation techniques into three levels. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. There are three levels of inputs that may be used to measure fair value:

Level 1- applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.

Level 2- applies to assets or liabilities for which there are inputs other than quoted prices included within level 1 that are observable, either directly or indirectly, for the asset or liability such as: quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in less active markets; or other inputs that can be derived principally from, or corroborated by, observable market data.

Level 3- applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.

AGILENT TECHNOLOGIES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - (Continued)

Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis

Financial assets and liabilities measured at fair value on a recurring basis as of July 31, 2024 were as follows:

									Fair Value Measurement at July 31, 2024 Using
			July 31, 2024						Quoted Prices in Active Markets for Identical Assets (Level 1)						Significant Other Observable Inputs (Level 2)						Significant Unobservable Inputs (Level 3)
			(in millions)
Assets:
Short-term
Cash equivalents (money market funds)			$	1,185					$	1,185					$	—					$	—
Derivative instruments (foreign exchange contracts)			9						—						9						—
Long-term
Trading securities			43						43						—						—
Other investments			31						—						31						—
Total assets measured at fair value			$	1,268					$	1,228					$	40					$	—
Liabilities:
Short-term
Derivative instruments (foreign exchange contracts)			$	7					$	—					$	7					$	—
Contingent consideration			1						—						—						1
Long-term
Deferred compensation liability			43						—						43						—
Total liabilities measured at fair value			$	51					$	—					$	50					$	1

Financial assets and liabilities measured at fair value on a recurring basis as of October 31, 2023 were as follows:

									Fair Value Measurement at October 31, 2023 Using
			October 31, 2023						Quoted Prices in Active Markets for Identical Assets (Level 1)						Significant Other Observable Inputs (Level 2)						Significant Unobservable Inputs (Level 3)
			(in millions)
Assets:
Short-term
Cash equivalents (money market funds)			$	994					$	994					$	—					$	—
Derivative instruments (foreign exchange contracts)			19						—						19						—
Long-term
Trading securities			36						36						—						—
Other investments			26						—						26						—
Total assets measured at fair value			$	1,075					$	1,030					$	45					$	—
Liabilities:
Short-term
Derivative instruments (foreign exchange contracts)			$	2					$	—					$	2					$	—
Contingent consideration			1						—						—						1
Long-term
Deferred compensation liability			36						—						36						—
Total liabilities measured at fair value			$	39					$	—					$	38					$	1

AGILENT TECHNOLOGIES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - (Continued)

Our money market funds and trading securities are generally valued using quoted market prices and therefore are classified within level 1 of the fair value hierarchy. Our derivative financial instruments are classified within level 2, as there is not an active market for each hedge contract, but the inputs used to calculate the value of the instruments are tied to active markets. Our deferred compensation liability is classified as level 2 because, although the values are not directly based on quoted market prices, the inputs used in the calculations are observable.

Other investments represent shares we own in a special fund that targets underlying investments of approximately 40 percent in debt securities and 60 percent in equity securities. These shares have been classified as level 2 because, although the shares of the fund are not traded on any active stock exchange, each of the individual underlying securities are or can be derived from similar securities traded on an active market and hence we have a readily determinable value for the underlying securities, from which we are able to determine the fair market value for the special fund itself.

Trading securities, which are comprised of mutual funds, bonds and other similar instruments, other investments and deferred compensation liability are reported at fair value, with gains or losses resulting from changes in fair value recognized currently in net income. Certain derivative instruments are reported at fair value, with unrealized gains and losses, net of tax, included in accumulated other comprehensive income (loss) within stockholders' equity. Realized gains and losses from the sale of these instruments are recorded in net income.

Gains and losses reflected in other income (expense), net for our equity investments with readily determinable fair value ("RDFV") and equity investments without RDFV are summarized below:

			Three Months Ended												Nine Months Ended
			July 31,												July 31,
			2024						2023						2024						2023
			(in millions)
Net gain (loss) recognized during the period on equity securities			$	2					$	1					$	6					$	(13)
Less: Net gain (loss) on equity securities sold during the period			$	—					$	—					$	—					$	(15)
Unrealized gain (loss) on equity securities			$	2					$	1					$	6					$	2

Contingent Consideration. As of July 31, 2024, the fair value of the contingent consideration liability relates to a potential milestone payment in connection with one acquisition.

The contingent consideration liability is our only recurring Level 3 asset or liability. A summary of the Level 3 activity follows:

			Three Months Ended												Nine Months Ended
			July 31,												July 31,
			2024						2023						2024						2023
			(in millions)
Beginning balance			$	1					$	8					$	1					$	67
Additions to contingent consideration (including measurement period adjustment)			$	—					$	—					—						5
Payments			$	—					$	(5)					—						(70)
Change in fair value (included within selling, general and administrative expenses)			$	—					$	—					—						1
Ending balance			$	1					$	3					$	1					$	3

The fair value of the contingent consideration liability as of July 31, 2024, was estimated to be $1 million which was recorded in other accrued liabilities on the condensed consolidated balance sheet. During the nine months ended July 31, 2023, we made contingent consideration payments totaling $70 million related to the achievement of certain technical milestones associated with our acquisition of Resolution Bioscience and another acquisition.

Resolution Bioscience. In the third quarter of fiscal year 2023, we decided to exit the Resolution Bioscience business and subsequently divested our interest in the business in the fourth quarter of fiscal year 2023. We project that there are no potential future milestone payments related to the Resolution Bioscience business.

Impairment of Investments. There were no impairments of investments for the three and nine months ended July 31, 2024 and 2023.

AGILENT TECHNOLOGIES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - (Continued)

Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis

For the three months ended July 31, 2024, there were no impairments of long-lived assets held and used. For the nine months ended July 31, 2024, long-lived assets held and used with a carrying value of $8 million were written down to their fair value of zero resulting in an impairment of $8 million. For the three and nine months ended July 31, 2024, there were no impairments of long-lived assets held for sale.

For the three and nine months ended July 31, 2023, long-lived assets held and used with a carrying value of $277 million were written down to their fair value of zero resulting in an impairment charge of $277 million primarily related to the shutdown of our Resolution Bioscience business in our diagnostics and genomics segment. For the three and nine months ended July 31, 2023, there were no impairments of long-lived assets held for sale.

Non-Marketable Equity Securities

For the three and nine months ended July 31, 2024 and 2023, there were no impairments or unrealized gain (loss) adjustments to the carrying value of non-marketable securities without readily determinable fair value based on an observable market transaction.

As of July 31, 2024, the cumulative net gain (loss) on our non-marketable equity securities without readily determinable fair values was comprised of a $40 million gain and a $30 million loss, and the carrying amount was $112 million. As of July 31, 2023, the cumulative net gain (loss) on our non-marketable equity securities without readily determinable fair values was comprised of a $36 million gain and $1 million loss, and the carrying amount was $124 million.

Fair values for the non-marketable securities included in long-term investments on the condensed consolidated balance sheet were measured using Level 3 inputs because they are primarily equity stock issued by private companies without quoted market prices. To estimate the fair value of our non-marketable securities, we use the measurement alternative to record these investments at cost and adjust for impairments and observable price changes (orderly transactions for the identical or a similar security from the same issuer) as and when they occur.

10. DERIVATIVES

We are exposed to foreign currency exchange rate fluctuations and interest rate changes in the normal course of our business. As part of our risk management strategy, we use derivative instruments, primarily forward contracts and purchased options to hedge economic and/or accounting exposures resulting from changes in foreign currency exchange rates.

Cash Flow Hedges

We enter into foreign exchange contracts to hedge our forecasted operational cash flow exposures resulting from changes in foreign currency exchange rates. These foreign exchange contracts, carried at fair value, have maturities between one and twelve months. These derivative instruments are designated and qualify as cash flow hedges under the criteria prescribed in the authoritative guidance and are assessed for effectiveness against the underlying exposure every reporting period. For open contracts as of July 31, 2024, changes in the time value of the foreign exchange contract are excluded from the assessment of hedge effectiveness and are recognized in cost of sales over the life of the foreign exchange contract. The changes in fair value of the effective portion of the derivative instrument are recognized in accumulated other comprehensive income (loss). Amounts associated with cash flow hedges are reclassified to cost of sales in the condensed consolidated statement of operations when the forecasted transaction occurs. If it becomes probable that the forecasted transaction will not occur, the hedge relationship will be de-designated and amounts accumulated in other comprehensive income (loss) will be reclassified to other income (expense), net in the current period. Changes in the fair value of the ineffective portion of derivative instruments are recognized in other income (expense), net in the condensed consolidated statement of operations in the current period. We record the premium paid (time value) of an option on the date of purchase as an asset. For options designated as cash flow hedges, changes in the time value are excluded from the assessment of hedge effectiveness and are recognized in cost of sales over the life of the option contract. For the three and nine months ended July 31, 2024 and 2023, ineffectiveness and gains and losses recognized in other income (expense), net due to de-designation of cash flow hedge contracts were not significant.

AGILENT TECHNOLOGIES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - (Continued)

In February 2016, Agilent executed three forward-starting pay fixed/receive variable interest rate swaps for the notional amount of $300 million in connection with future interest payments to be made on our 2026 senior notes issued on September 15, 2016. These derivative instruments were designated and qualified as cash flow hedges under the criteria prescribed in the authoritative guidance. The swap arrangements were terminated on September 15, 2016 with a payment of $10 million, and we recognized this as a deferred loss in accumulated other comprehensive income (loss) which is being amortized to interest expense over the life of the 2026 senior notes. The remaining loss to be amortized related to the interest rate swap agreements at July 31, 2024 was $2 million.

In August 2019, Agilent executed treasury lock agreements for $250 million in connection with future interest payments to be made on our 2029 senior notes issued on September 16, 2019. We designated the treasury lock as a cash flow hedge. The treasury lock contracts were terminated on September 6, 2019, and we recognized a deferred loss of $6 million in accumulated other comprehensive income (loss) which is being amortized to interest expense over the life of the 2029 senior notes. The remaining loss to be amortized related to the treasury lock agreements at July 31, 2024 was $3 million.

Net Investment Hedges

We enter into foreign exchange contracts to hedge net investments in foreign operations to mitigate the risk of adverse movements in exchange rates. These foreign exchange contracts are carried at fair value and are designated and qualify as net investment hedges under the criteria prescribed in the authoritative guidance. Changes in fair value of the effective portion of the derivative instrument are recognized in accumulated other comprehensive income (loss)- translation adjustment and are assessed for effectiveness against the underlying exposure every reporting period. If the company’s net investment changes during the year, the hedge relationship will be assessed and de-designated if the hedge notional amount is outside of prescribed tolerance with a gain/loss reclassified from other comprehensive income (loss) to other income (expense) in the current period. For the three and nine months ended July 31, 2024, ineffectiveness and the resultant effect of any gains or losses recognized in other income (expense) due to de-designation of the hedge contracts were not significant.

Other Hedges

Additionally, we enter into foreign exchange contracts to hedge monetary assets and liabilities that are denominated in currencies other than the functional currency of our subsidiaries. These foreign exchange contracts are carried at fair value and do not qualify for hedge accounting treatment and are not designated as hedging instruments. Changes in value of the derivative instruments are recognized in other income (expense), net in the condensed consolidated statement of operations, in the current period, along with the offsetting foreign currency gain or loss on the underlying assets or liabilities.

Our use of derivative instruments exposes us to credit risk to the extent that the counterparties may be unable to meet the terms of the agreement. We do, however, seek to mitigate such risks by limiting our counterparties to major financial institutions which are selected based on their credit ratings and other factors. We have established policies and procedures for mitigating credit risk that include establishing counterparty credit limits, monitoring credit exposures, and continually assessing the creditworthiness of counterparties.

A number of our derivative agreements contain threshold limits to the net liability position with counterparties and are dependent on our corporate credit rating determined by the major credit rating agencies. The counterparties to the derivative instruments may request collateralization, in accordance with derivative agreements, on derivative instruments in net liability positions.

The aggregate fair value of all derivative instruments with credit-risk-related contingent features that were in a net liability position as of July 31, 2024, was not material. The credit-risk-related contingent features underlying these agreements had not been triggered as of July 31, 2024.

AGILENT TECHNOLOGIES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - (Continued)

The number of open foreign exchange forward contracts and aggregated notional amounts by designation as of July 31, 2024 were as follows:

						Number of Open Forward Contracts						Aggregate Notional Amount USD
									Buy/(Sell)
												($ in millions)
Derivatives designated as hedging instruments:
Cash Flow Hedges
Foreign exchange forward contracts						303						$	(514)
Net Investment Hedges
Foreign exchange forward contracts						3						$	(33)
Derivatives not designated as hedging instruments:
Foreign exchange forward contracts						184						$	(24)

Derivative instruments are subject to master netting arrangements and are disclosed gross in the balance sheet in accordance with the authoritative guidance.

The gross fair values and balance sheet location of derivative instruments held in the condensed consolidated balance sheet as of July 31, 2024, and October 31, 2023, were as follows:

Fair Values of Derivative Instruments
Asset Derivatives																		Liability Derivatives
						Fair Value																		Fair Value
Balance Sheet Location						July 31, 2024						October 31, 2023						Balance Sheet Location						July 31, 2024						October 31, 2023
(in millions)
Derivatives designated as hedging instruments:
Cash flow hedges
Foreign exchange contracts
Other current assets						$	5					$	15					Other accrued liabilities						$	3					$	1
Net investment hedges
Foreign exchange contracts
Other current assets						$	—					$	1					Other accrued liabilities						$	—					$	—
Derivatives not designated as hedging instruments:
Foreign exchange contracts
Other current assets						$	4					$	3					Other accrued liabilities						$	4					$	1
Total derivatives						$	9					$	19											$	7					$	2

AGILENT TECHNOLOGIES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - (Continued)

The effects of derivative instruments for foreign exchange contracts designated as hedging instruments and not designated as hedging instruments in our condensed consolidated statement of operations were as follows:

			Three Months Ended												Nine Months Ended
			July 31,												July 31,
			2024						2023						2024						2023
			(in millions)
Derivatives designated as hedging instruments:
Cash Flow Hedges
Foreign exchange contracts:
Gain (loss) recognized in accumulated other comprehensive loss			$	(3)					$	2					$	(4)					$	(18)
Loss reclassified from accumulated other comprehensive loss into interest expense			$	—					$	—					$	(1)					$	(1)
Gain (loss) reclassified from accumulated other comprehensive loss into cost of sales			$	3					$	(2)					$	8					$	1
Gain on time value of forward contracts recorded in cost of sales			$	2					$	2					$	5					$	5
Net Investment Hedges
Foreign exchange contracts:
Gain (loss) recognized in accumulated other comprehensive loss - translation adjustment			$	—					$	—					$	—					$	(1)
Derivatives not designated as hedging instruments:
Gain (loss) recognized in other income (expense)			$	1					$	5					$	2					$	(1)

At July 31, 2024, the amount of existing net gain that is expected to be reclassified from accumulated other comprehensive income (loss) is $8 million. Within the next twelve months it is estimated that $1 million of loss included within the net amount of accumulated other comprehensive income (loss) will be reclassified to cost of sales in respect of cash flow hedges.

AGILENT TECHNOLOGIES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - (Continued)

11. RETIREMENT PLANS AND POST RETIREMENT PENSION PLANS

Components of net periodic benefit cost (income). For the three and nine months ended July 31, 2024 and 2023, our net pension and post retirement benefit cost (income) were comprised of the following:

			Three Months Ended July 31,
			U.S. Pension Plans												Non-U.S. Pension Plans												U.S. Post Retirement Benefit Plans
			2024						2023						2024						2023						2024						2023
			(in millions)
Service cost—benefits earned during the period			$	—					$	—					$	5					$	5					$	—					$	—
Interest cost on benefit obligation			6						5						7						6						1						1
Expected return on plan assets			(5)						(5)						(9)						(9)						(1)						(1)
Amortization of net actuarial (gain) loss			—						—						(4)						—						—						—
Total net periodic benefit cost (income)			$	1					$	—					$	(1)					$	2					$	—					$	—

			Nine Months Ended July 31,
			U.S. Pension Plans												Non-U.S. Pension Plans												U.S. Post Retirement Benefit Plans
			2024						2023						2024						2023						2024						2023
			(in millions)
Service cost—benefits earned during the period			$	—					$	—					$	13					$	13					$	—					$	—
Interest cost on benefit obligation			16						15						20						18						3						3
Expected return on plan assets			(15)						(14)						(28)						(27)						(3)						(3)
Amortization of net actuarial (gain) loss			1						—						(12)						(1)						(1)						—
Amortization of prior service benefit			—						—						—						—						—						(1)
Total net periodic benefit cost (income)			$	2					$	1					$	(7)					$	3					$	(1)					$	(1)

The service cost component is recorded in cost of sales and operating expenses in the condensed consolidated statement of operations. All other cost components are recorded in other income (expense), net in the condensed consolidated statement of operations.

Employer contributions and expected future employer contributions for the remainder of the year were as follows:

			Three Months Ended												Nine Months Ended												Employer Contributions
			July 31,												July 31,												For Remainder of Year
			2024						2023						2024						2023									2024
			(in millions)
U.S. defined benefit plans			$	—					$	—					$	—					$	—								$	—
Non-U.S. defined benefit plans			$	7					$	8					$	16					$	17								$	4

12. WARRANTIES AND CONTINGENCIES

Warranties

We accrue for standard warranty costs based on historical trends in actual warranty charges over the past 12 months. The accrual is reviewed regularly and periodically adjusted to reflect changes in warranty cost over the period. The standard warranty accrual balances are held in other accrued and other long-term liabilities on our condensed consolidated balance sheet. Our standard warranty terms typically extend to one year from the date of delivery, depending on the product.

AGILENT TECHNOLOGIES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - (Continued)

A summary of the standard warranty accrual activity is shown in the table below:

			Nine Months Ended
			July 31,
			2024						2023
			(in millions)
Standard warranty accrual, beginning balance			$	29					$	30
Accruals for warranties including change in estimates			45						42
Settlements made during the period			(44)						(44)
Standard warranty accrual, ending balance			$	30					$	28
Accruals for warranties due within one year			$	30					$	28

Bank Guarantees

Guarantees consist primarily of outstanding standby letters of credit and bank guarantees and were approximately $37 million and $39 million as of July 31, 2024 and October 31, 2023, respectively. A standby letter of credit is a guarantee of payment issued by a bank on behalf of us that is used as payment of last resort should we fail to fulfill a contractual commitment with a third party. A bank guarantee is a promise from a bank or other lending institution that if we default on a loan, the bank will cover the loss.

Contingencies

We are involved in lawsuits, claims, investigations and proceedings, including, but not limited to, intellectual property, commercial, real estate, environmental and employment matters, which arise in the ordinary course of business. There are no matters pending that we currently believe are reasonably possible of having a material impact to our business, condensed consolidated financial condition, results of operations or cash flows.

13. RESTRUCTURING AND OTHER RELATED COSTS

Summary of Restructuring Plans. In fiscal year 2024 and 2023, we announced restructuring plans that were both designed to reduce costs and expenses in response to recent macroeconomic conditions. These actions impact all three of our business segments. The costs associated with these restructuring plans were not allocated to our business segments' results; however, each business segment will benefit from the future cost savings from these actions. When completed, the restructuring programs are expected to result in the reduction in annual cost of sales and operating expenses over the three business segments.

AGILENT TECHNOLOGIES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - (Continued)

A summary of our aggregate liability relating to both restructuring plans and the total restructuring expense since inception of those plans are shown in the table below:

			Workforce Reduction						Consolidation of Excess Facilities												Total
			(in millions)
Balance at October 31, 2023			$	31					$	5											$	36
Income statement expense			2						1												3
Non-cash settlement			—						(1)												(1)
Cash payments			(25)						(2)												(27)
Balance at January 31, 2024			$	8					$	3											$	11
Income statement expense			1						—												1
Cash payments			(5)						(1)												(6)
Balance at April 30, 2024			$	4					$	2											$	6
Income statement expense			67						—												67
Non-cash settlement			(6)						—												(6)
Cash payments			(20)						(1)												(21)
Balance at July 31, 2024			$	45					$	1											$	46
Total restructuring expense since inception of all plans																					$	117

The aggregate restructuring liability of $46 million at July 31, 2024, is recorded in other accrued liabilities on the condensed consolidated balance sheet and reflects estimated future cash outlays.

A summary of the charges in the condensed consolidated statement of operations resulting from both restructuring plans is shown below:

						Three Months Ended						Nine Months Ended
						July 31,						July 31,
						2024						2024
						(in millions)
Cost of products and services						$	12					$	12
Research and Development						18						20
Selling, general and administrative						37						39
Total restructuring costs						$	67					$	71

Fiscal Year 2024 Plan ("FY24 Plan"). In the third quarter of fiscal year 2024, we announced a new restructuring plan designed to further reduce costs and expenses in response to current macroeconomic conditions. The plan includes a reduction of our total headcount by approximately 500 regular employees, representing approximately 3 percent of our global workforce. The timing and scope of the workforce reductions will vary based on local legal requirements. The costs associated with this workforce reduction include severance and other personnel-related costs. While the majority of the workforce reduction will be completed by the end of fiscal year 2024, we expect to substantially complete the remaining restructuring activities by the second quarter of fiscal year 2025.

In connection with the FY24 Plan, we have recorded approximately $67 million in restructuring and other related costs in both the three and nine months ended July 31, 2024.

AGILENT TECHNOLOGIES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - (Continued)

A summary of the FY24 Plan activity is shown in the table below:

			Workforce Reduction
			(in millions)
Balance at April 30, 2024			$	—
Income statement expense			67
Non-cash settlement (accelerated share-based compensation expense)			(6)
Cash payments			(19)
Balance at July 31, 2024			$	42
Total restructuring expense since inception of FY 24 Plan			$	67

Fiscal Year 2023 Plan ("FY23 Plan"). In the fourth quarter of fiscal year 2023, we initiated the restructuring plan designed to reduce costs and expenses in response to the macroeconomic conditions. The plan included a reduction of our total headcount by approximately 400 regular employees, representing approximately 2 percent of our global workforce, and the consolidation of our excess facilities, including some site closures.

In connection with this plan, we have recorded approximately zero and $4 million in restructuring and other related costs in the three and nine months ended July 31, 2024, respectively. The restructuring plan costs include severance and other personnel costs associated with the workforce reduction. The consolidation of excess facilities includes accelerated depreciation expenses of right-of-use ("ROU") and machinery and equipment assets, and other facilities-related costs. The timing and scope of the workforce reductions will vary based on local legal requirements. While the majority of the workforce reduction was completed in the first quarter of 2024, we expect to substantially complete the remaining restructuring activities by the end of fiscal year 2024.

A summary of the FY23 Plan activity is shown in the table below:

			Workforce Reduction						Consolidation of Excess Facilities												Total
			(in millions)
Balance at October 31, 2023			$	31					$	5											$	36
Income statement expense			2						1												3
Non-cash settlement (accelerated depreciation expense of right-of-use assets)			—						(1)												(1)
Cash payments			(25)						(2)												(27)
Balance at January 31, 2024			$	8					$	3											$	11
Income statement expense			1						—												1
Cash payments			(5)						(1)												(6)
Balance at April 30, 2024			$	4					$	2											$	6
Cash payments			(1)						(1)												(2)
Balance at July 31, 2024			$	3					$	1											$	4
Total restructuring expense since inception of FY23 Plan																					$	50

14. SHORT-TERM DEBT

Credit Facilities

On June 7, 2023, we entered into a credit agreement with a group of financial institutions which provides for a $1.5 billion five-year unsecured credit facility that will expire on June 7, 2028 and an incremental revolving credit facility in an aggregate amount of up to $750 million. The credit facility replaced the existing credit facility which was terminated on the closing date of the new facility. During the nine months ended July 31, 2024, we made no borrowings or repayments under these credit facilities. As of both July 31, 2024 and October 31, 2023, we had no borrowings outstanding under either the credit facility or the incremental revolving credit facility.

AGILENT TECHNOLOGIES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - (Continued)

On June 2, 2023, we entered into an Uncommitted Money Market Line Credit agreement with Societe Generale which provides for an aggregate borrowing capacity of $300 million. The credit facility is an uncommitted short-term cash advance facility where each request must be at least $1 million. The interest rate is set by the lender at the time of the borrowing and is fixed for the duration of the advance. During the nine months ended July 31, 2024, we made no borrowings or repayments under this credit facility. As of both July 31, 2024 and October 31, 2023, we had no borrowings outstanding under the credit facility.

We were in compliance with the covenants for the credit facilities during the nine months ended July 31, 2024.

Commercial Paper

Under our U.S. commercial paper program, the company may issue and sell unsecured, short-term promissory notes in the aggregate principal amount not to exceed $1.5 billion with up to 397-day maturities. At any point in time, the company intends to maintain available commitments under its revolving credit facility in an amount at least equal to the amount of the commercial paper notes outstanding. Amounts available under the program may be borrowed, repaid and re-borrowed from time to time. The proceeds from issuances under the program may be used for general corporate purposes. During the nine months ended July 31, 2024, we borrowed $610 million and repaid $235 million under our commercial paper program. As of July 31, 2024 we had borrowings of $375 million outstanding under our U.S. commercial paper program and a weighted average annual interest rate of 5.53 percent. As of October 31, 2023 we had no borrowings outstanding under our U.S. commercial paper program.

Term Loan Facility

On April 15, 2022, we entered into a term loan agreement with a group of financial institutions, which provided for a $600 million delayed draw term loan that will mature on April 15, 2025. Loans under the term loan agreement bear interest, at our option, either at: (i) the alternate base rate, as defined in the term loan agreement, plus the applicable margin for such loans or (ii) adjusted term SOFR, as defined in the term loan agreement, plus the applicable margin for such loans. The term loan agreement contains customary representations and warranties as well as customary affirmative and negative covenants. We were in compliance with the covenants for the term loan during the nine months ended July 31, 2024.

As of July 31, 2024, the remaining $420 million borrowings outstanding under the term loan facility with a weighted average interest rate of 6.19 percent have been reclassified to short-term debt.

15. LONG-TERM DEBT

Senior Notes

The following table summarizes the company’s long-term senior notes:

			July 31, 2024						October 31, 2023
			Amortized Principal						Amortized Principal
			(in millions)
2026 Senior Notes			$	299					$	299
2029 Senior Notes			496						496
2030 Senior Notes			497						496
2031 Senior Notes			845						844
Total Senior Notes			$	2,137					$	2,135

AGILENT TECHNOLOGIES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - (Continued)

All outstanding notes listed above are unsecured and rank equally in right of payment with all of Agilent’s other senior unsecured indebtedness. There have been no other changes to the principal, maturity, interest rates and interest payment terms of the Agilent senior notes, detailed in the table above, in the nine months ended July 31, 2024, as compared to the senior notes described in our Annual Report on Form 10-K for the fiscal year ended October 31, 2023.

Term Loan Facility

As of October 31, 2023, we had $600 million borrowings outstanding under the term loan facility and had a weighted average interest rate of 6.22 percent. During the nine months ended July 31, 2024, we prepaid a total of $180 million on our term loan and reclassified the remaining balance to short-term debt. See Note 14, "Short-term Debt" for more details on the term loan.

16. STOCKHOLDERS' EQUITY

Stock Repurchase Programs

On February 16, 2021 we announced that our board of directors had approved a new share repurchase program (the "2021 repurchase program") designed, among other things, to reduce or eliminate dilution resulting from issuance of stock under the company's employee equity incentive programs. The 2021 repurchase program authorized the purchase of up to $2.0 billion of our common stock at the company's discretion and had no fixed termination date. The 2021 repurchase program which became effective on February 18, 2021, replaced and terminated the 2019 repurchase program on that date. The 2021 repurchase program does not require the company to acquire a specific number of shares and may be suspended, amended or discontinued at any time. During the nine months ended July 31, 2023, we repurchased and retired 661,739 shares for $99 million under this authorization. On March 1, 2023, the 2021 repurchase program was terminated and the remaining authorization of $339 million expired.

On January 9, 2023, we announced that our board of directors had approved a share repurchase program (the "2023 repurchase program") designed, among other things, to reduce or eliminate dilution resulting from issuance of stock under the company's employee equity incentive programs. The 2023 repurchase program authorizes the purchase of up to $2.0 billion, excluding excise taxes, of our common stock at the company's discretion and has no fixed termination date. The 2023 repurchase program does not require the company to acquire a specific number of shares and may be suspended, amended or discontinued at any time. The 2023 repurchase program commenced on March 1, 2023, and also terminated and replaced the 2021 repurchase program. During the three and nine months ended July 31, 2023, we repurchased and retired 2.812 million shares for $335 million, excluding excise taxes of $2.4 million and 3.256 million shares for $396 million, excluding excise taxes of $2.4 million, respectively, under this authorization. During the three and nine months ended July 31, 2024, we repurchased and retired 4.397 million shares for $585 million, excluding excise taxes of $5.4 million and 5.991 million shares for $815 million, excluding excise taxes of $6.4 million, respectively, under this authorization. As of July 31, 2024, we had remaining authorization to repurchase up to approximately $709 million of our common stock under the 2023 repurchase program.

On May 29, 2024, we announced that our board of directors had approved a new share repurchase program (the "2024 repurchase program") designed, among other things, to reduce or eliminate dilution resulting from issuance of stock under the company's employee equity incentive programs. The 2024 repurchase program authorizes the purchase of up to $2.0 billion, excluding excise taxes, of our common stock at the company's discretion and has no fixed termination date. The 2024 repurchase program does not require the company to acquire a specific number of shares and may be suspended, amended or discontinued at any time. The 2024 repurchase program became effective on August 1, 2024 and will commence upon the termination of our 2023 repurchase program.

Cash Dividends on Shares of Common Stock

During the three and nine months ended July 31, 2024, we paid cash dividends of $0.236 per common share or $68 million and $0.708 per common share or $206 million, respectively, on the company's common stock. During the three and nine months ended July 31, 2023, we paid cash dividends of $0.225 per common share or $66 million and $0.675 per common share or $199 million, respectively, on the company's common stock. The timing and amounts of any future dividends are subject to determination and approval by our board of directors.

AGILENT TECHNOLOGIES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - (Continued)

Accumulated Other Comprehensive Income (Loss)

Changes in accumulated other comprehensive income (loss) by component and related tax effects were as follows (in millions):

																		Net defined benefit pension cost and post retirement plan costs
Three Months Ended July 31, 2024												Foreign currency translation						Prior service credits						Actuarial Losses						Unrealized gains (losses) on derivatives						Total
												(in millions)
As of April 30, 2024												$	(304)					$	122					$	(169)					$	14					$	(337)
Other comprehensive income (loss) before reclassifications												13						—						—						(3)						10
Amounts reclassified out of accumulated other comprehensive income (loss)												—						—						(4)						(3)						(7)
Tax (expense) benefit												—						—						2						1						3
Other comprehensive income (loss)												13						—						(2)						(5)						6
As of July 31, 2024												$	(291)					$	122					$	(171)					$	9					$	(331)
Nine Months Ended July 31, 2024
As of October 31, 2023												$	(301)					$	122					$	(165)					$	17					$	(327)
Other comprehensive income (loss) before reclassifications												18						—						2						(4)						16
Amounts reclassified out of accumulated other comprehensive income (loss)												(8)						—						(12)						(7)						(27)
Tax (expense) benefit												—						—						4						3						7
Other comprehensive income (loss)												10						—						(6)						(8)						(4)
As of July 31, 2024												$	(291)					$	122					$	(171)					$	9					$	(331)

AGILENT TECHNOLOGIES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - (Continued)

Reclassifications out of accumulated other comprehensive income (loss) for the three and nine months ended July 31, 2024 and 2023 were as follows (in millions):

Details about accumulated other comprehensive income (loss) components						Amounts Reclassified from other comprehensive income (loss)																								Affected line item in statement of operations
						Three Months Ended												Nine Months Ended
						July 31,												July 31,
						2024						2023						2024						2023
Foreign currency translation						$	—					$	—					$	8					$	—					Other income (expense)
						—						—						8						—						Total before income tax
						—						—						—						—						(Provision) benefit for income tax
						—						—						8						—						Total net of income tax
Unrealized gain (loss) on derivatives						3						(2)						8						1						Cost of products
Unrealized gain (loss) on derivatives						—						—						(1)						(1)						Interest expense
						3						(2)						7						—						Total before income tax
						(1)						1						(2)						—						(Provision) benefit for income tax
						2						(1)						5						—						Total net of income tax
Net defined benefit pension cost and post retirement plan costs:
Actuarial net gain (loss)						4						1						12						1						Other income (expense)
Prior service benefit						—						—						—						1						Other income (expense)
						4						1						12						2						Total before income tax
						(2)						—						(4)						(1)						(Provision) benefit for income tax
						2						1						8						1						Total net of income tax
Total reclassifications for the period						$	4					$	—					$	21					$	1

Amounts in parentheses indicate reductions to income and increases to other comprehensive income (loss).

Reclassifications out of accumulated other comprehensive income (loss) of actuarial net gain (loss) and prior service benefit in respect of retirement plans and post retirement pension plans are included in the computation of net periodic benefit cost (income) (see Note 11, "Retirement Plans and Post Retirement Pension Plans").

17. SEGMENT INFORMATION

Description of segments. We are a global leader in life sciences, diagnostics and applied chemical markets, providing application focused solutions that include instruments, software, services and consumables for the entire laboratory workflow.

In the first quarter of fiscal year 2024, we announced a change in our operating segments to move our cell analysis business from our life sciences and applied markets segment to our diagnostics and genomics operating segment in order to further strengthen growth opportunities for both organizations. All historical financial segment information has been recast to conform to this new presentation. There was no change to our Agilent CrossLab business segment.

Following this reorganization, we continue to have three business segments comprised of life sciences and applied markets, diagnostics and genomics and Agilent CrossLab, each of which continues to comprise a reportable segment. The three operating segments were determined based primarily on how the chief operating decision maker views and evaluates our operations. Operating results are regularly reviewed by the chief operating decision maker to make decisions about resources to

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - (Continued)

be allocated to the segment and to assess its performance. Other factors, including market separation and customer specific applications, go-to-market channels, products and services and manufacturing are considered in determining the formation of these operating segments.

A description of our three reportable segments is as follows:

Our life sciences and applied markets business provides application-focused solutions that include instruments, consumables and software that enable customers to identify, quantify and analyze the physical and biological properties of substances and products, as well as enable customers in the clinical and life sciences research areas to interrogate samples at the molecular and cellular level. Key product categories include: liquid chromatography ("LC") systems and components; liquid chromatography mass spectrometry ("LCMS") systems; gas chromatography ("GC") systems and components; gas chromatography mass spectrometry ("GCMS") systems; inductively coupled plasma mass spectrometry ("ICP-MS") instruments; atomic absorption ("AA") instruments; microwave plasma-atomic emission spectrometry ("MP-AES") instruments; inductively coupled plasma optical emission spectrometry ("ICP-OES") instruments; raman spectroscopy; laboratory software for sample tracking; information management and analytics; laboratory automation and robotic systems; dissolution testing; vacuum pumps and measurement technologies. Our consumables portfolio is designed to improve customer outcomes. Most of the portfolio is vendor neutral, meaning Agilent can serve and supply customers regardless of their instrument purchase choices. Solutions range from chemistries to supplies. Key product categories in consumables include GC and LC columns, sample preparation products, custom chemistries, and a large selection of laboratory instrument supplies.

Our diagnostics and genomics business is comprised of seven areas of activity providing active pharmaceutical ingredients ("APIs") for oligo-based therapeutics as well as solutions that include reagents, instruments, software and consumables, which enable customers in the clinical and life sciences research areas to interrogate samples at the cellular and molecular level. First, our cell analysis business includes instruments, reagents, software, and labware associated with unique live-cell analysis platforms in addition to mainstream flow cytometers, plate-readers, and plate washers/dispensers which are used across a broad range of applications. Second, our nucleic acid solutions business is a contract and development manufacturing organization that provides services related to and the production of synthesized oligonucleotides under pharmaceutical good manufacturing practices ("GMP") conditions for use as API in a class of drugs that utilize nucleic acid molecules for disease therapy. Third, our pathology solutions business is focused on product offerings for cancer diagnostics and anatomic pathology workflows. The broad portfolio of offerings includes immunohistochemistry ("IHC"), in situ hybridization ("ISH"), hematoxylin and eosin ("H&E") staining and special staining. Fourth, we also collaborate with a number of major pharmaceutical companies to develop new potential tissue pharmacodiagnostics, also known as companion diagnostics, which may be used to identify patients most likely to benefit from a specific targeted therapy. Fifth, the reagent partnership business provides clinical flow cytometry reagents for routine cancer diagnostics. This business also provides bulk antibodies as raw materials and associated assay development services to IVD manufacturers, biotechnology and pharmaceutical companies. Sixth, our genomics business includes arrays and next generation sequencing ("NGS"). This business also includes solutions that enable clinical labs to identify DNA variants associated with genetic disease and help direct cancer therapy. Finally, our biomolecular analysis business provides complete workflow solutions, including instruments, consumables and software, for quality control analysis of nucleic acid samples. Samples are analyzed using quantitative and qualitative techniques to ensure accuracy in further genomics analysis techniques including NGS, utilized in clinical and life science research applications

The Agilent CrossLab business spans the entire lab with its extensive services portfolio, which is designed to improve customer outcomes. The majority of the portfolio is vendor neutral, meaning we can serve and supply customers regardless of their instrument purchase choices. The services portfolio includes repairs, parts, maintenance, installations, training, compliance support, software as a service, asset management, consulting and various other custom services to support the customers' laboratory operations. Custom services are tailored to meet the specific application needs of various industries and to keep instruments fully operational and compliant with the respective industry requirements.

A significant portion of the segments' expenses arise from shared services and infrastructure that we have historically provided to the segments in order to realize economies of scale and to efficiently use resources. These expenses, collectively called corporate charges, include legal, accounting, tax, real estate, insurance services, information technology services, treasury, order administration, other corporate infrastructure expenses, costs of centralized research and development and joint sales and marketing costs. Charges are allocated to the segments, and the allocations have been determined on a basis that we consider to be a reasonable reflection of the utilization of services provided to or benefits received by the segments. In addition, we do not allocate amortization of acquisition-related intangible assets, asset impairments, acquisition and integration costs, transformational initiatives expenses, restructuring and other related costs and certain other charges to the operating margin for each segment because management does not include this information in its measurement of the performance of the operating

AGILENT TECHNOLOGIES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - (Continued)

segments. Transformational initiatives include expenses associated with targeted cost reduction activities such as manufacturing transfers, site consolidations, legal entity and other business reorganizations, in-sourcing or outsourcing of activities.

The following tables reflect the results of our reportable segments under our management reporting system. The performance of each segment is measured based on several metrics, including segment income from operations. These results are used, in part, by the chief operating decision maker in evaluating the performance of, and in allocating resources to, each of the segments.

The profitability of each of the segments is measured after excluding items such as transformational initiatives, acquisition and integration costs, amortization of intangible assets related to business combinations, interest income, interest expense and other items as noted in the reconciliations below:

			Three Months Ended												Nine Months Ended
			July 31,												July 31,
			2024						2023						2024						2023
			(in millions)
Net Revenue:
Life Sciences and Applied Markets			$	782					$	854					$	2,382					$	2,671
Diagnostics and Genomics			385						422						1,209						1,310
Agilent CrossLab			411						396						1,218						1,164
Total net revenue			$	1,578					$	1,672					$	4,809					$	5,145
Segment Income From Operations:
Life Sciences and Applied Markets			$	222					$	265					$	644					$	809
Diagnostics and Genomics			70						96						226						262
Agilent CrossLab			140						129						385						335
Total segment income from operations			$	432					$	490					$	1,255					$	1,406

AGILENT TECHNOLOGIES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - (Continued)

The following table reconciles segment income from operations to Agilent’s total enterprise income before taxes:

			Three Months Ended												Nine Months Ended
			July 31,												July 31,
			2024						2023						2024						2023
			(in millions)
Total segment income from operations			$	432					$	490					$	1,255					$	1,406
Unallocated costs:
Amortization of intangible assets related to business combinations			(25)						(38)						(77)						(112)
Acquisition and integration costs			(4)						(5)						(5)						(12)
Transformational initiatives			(1)						(19)						(5)						(31)
Asset impairment			—						(277)						(8)						(277)
Change in fair value of contingent consideration			—						—						—						(1)
Restructuring and other related costs			(67)						—						(71)						—
Other			(2)						(18)						(9)						(31)
Total unallocated costs			(99)						(357)						(175)						(464)
Income from operations			333						133						1,080						942
Interest income			19						13						56						34
Interest expense			(22)						(24)						(64)						(73)
Other income (expense), net (1)			13						10						48						16
Income before taxes, as reported			$	343					$	132					$	1,120					$	919

(1) For the nine months ended July 31, 2024, other income (expense), net includes primarily income related to foreign currency translation reclassified out of accumulated comprehensive income (loss) and the defined benefit retirement and post-retirement benefit plans.

The following table reflects segment and unallocated assets. Segment assets include allocations of corporate assets, goodwill, net other intangibles and other assets. Unallocated assets primarily consist of cash, cash equivalents, short-term and long-term investments, deferred tax assets, right-of-use assets and other assets.

			July 31, 2024						October 31, 2023
			(in millions)
Assets:
Life Sciences and Applied Markets			$	3,106					$	3,161
Diagnostics and Genomics			3,986						3,966
Agilent CrossLab			916						897
Unallocated Assets			2,988						2,739
Total assets			$	10,996					$	10,763