filings.toolsItem 1. Condensed Consolidated Financial Statements (Unaudited)
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Item 1. Condensed Consolidated Financial Statements (Unaudited)
KEYSIGHT TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(in millions, except per share data)
(Unaudited)
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||
| April 30, | April 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Revenue: | |||||||||||||||||||||||
| Products | $ | 988 | $ | 909 | $ | 1,971 | $ | 1,861 | |||||||||||||||
| Services and other | 318 | 307 | 633 | 614 | |||||||||||||||||||
| Total revenue | 1,306 | 1,216 | 2,604 | 2,475 | |||||||||||||||||||
| Costs and expenses: | |||||||||||||||||||||||
| Cost of products | 386 | 358 | 761 | 709 | |||||||||||||||||||
| Cost of services and other | 106 | 95 | 209 | 190 | |||||||||||||||||||
| Total costs | 492 | 453 | 970 | 899 | |||||||||||||||||||
| Research and development | 250 | 228 | 499 | 460 | |||||||||||||||||||
| Selling, general and administrative | 360 | 361 | 721 | 723 | |||||||||||||||||||
| Other operating expense (income), net | (3) | (3) | (11) | (5) | |||||||||||||||||||
| Total costs and expenses | 1,099 | 1,039 | 2,179 | 2,077 | |||||||||||||||||||
| Income from operations | 207 | 177 | 425 | 398 | |||||||||||||||||||
| Interest income | 21 | 18 | 40 | 41 | |||||||||||||||||||
| Interest expense | (20) | (20) | (40) | (40) | |||||||||||||||||||
| Other income (expense), net | 112 | — | 94 | 5 | |||||||||||||||||||
| Income before taxes | 320 | 175 | 519 | 404 | |||||||||||||||||||
| Provision for income taxes | 63 | 49 | 93 | 106 | |||||||||||||||||||
| Net income | $ | 257 | $ | 126 | $ | 426 | $ | 298 | |||||||||||||||
| Net income per share: | |||||||||||||||||||||||
| Basic | $ | 1.49 | $ | 0.73 | $ | 2.47 | $ | 1.71 | |||||||||||||||
| Diluted | $ | 1.49 | $ | 0.72 | $ | 2.45 | $ | 1.70 | |||||||||||||||
| Weighted average shares used in computing net income per share: | |||||||||||||||||||||||
| Basic | 172 | 174 | 173 | 175 | |||||||||||||||||||
| Diluted | 173 | 175 | 174 | 175 |
The accompanying notes are an integral part of these condensed consolidated financial statements.
KEYSIGHT TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(in millions)
(Unaudited)
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||
| April 30, | April 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Net income | $ | 257 | $ | 126 | $ | 426 | $ | 298 | |||||||||||||||
| Other comprehensive income (loss): | |||||||||||||||||||||||
| Gain (loss) on derivative instruments, net of tax benefit (expense) of $1, $(1), $1 and zero | (1) | 3 | (2) | 1 | |||||||||||||||||||
| Amounts reclassified into earnings related to derivative instruments, net of tax benefit of $1, $1, $1 and $1 | (3) | (2) | (8) | (4) | |||||||||||||||||||
| Foreign currency translation, net of tax benefit (expense) of zero | 152 | (32) | 79 | (5) | |||||||||||||||||||
| Net defined benefit pension cost and post-retirement plan costs: | |||||||||||||||||||||||
| Change in net actuarial loss, net of tax expense of zero, $1, zero and $2 | 2 | 4 | 2 | 5 | |||||||||||||||||||
| Other comprehensive income (loss) | 150 | (27) | 71 | (3) | |||||||||||||||||||
| Total comprehensive income | $ | 407 | $ | 99 | $ | 497 | $ | 295 |
The accompanying notes are an integral part of these condensed consolidated financial statements.
KEYSIGHT TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEET
(in millions, except par value and share data)
(Unaudited)
| April 30, 2025 | October 31, 2024 | ||||||||||
| ASSETS | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 3,118 | $ | 1,796 | |||||||
| Accounts receivable, net | 744 | 857 | |||||||||
| Inventory | 1,026 | 1,022 | |||||||||
| Other current assets | 578 | 582 | |||||||||
| Total current assets | 5,466 | 4,257 | |||||||||
| Property, plant and equipment, net | 769 | 774 | |||||||||
| Operating lease right-of-use assets | 226 | 234 | |||||||||
| Goodwill | 2,433 | 2,388 | |||||||||
| Other intangible assets, net | 556 | 607 | |||||||||
| Long-term investments | 138 | 110 | |||||||||
| Long-term deferred tax assets | 379 | 378 | |||||||||
| Other assets | 568 | 521 | |||||||||
| Total assets | $ | 10,535 | $ | 9,269 | |||||||
| LIABILITIES AND EQUITY | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | 317 | $ | 313 | |||||||
| Employee compensation and benefits | 319 | 295 | |||||||||
| Deferred revenue | 612 | 561 | |||||||||
| Income and other taxes payable | 175 | 90 | |||||||||
| Operating lease liabilities | 46 | 43 | |||||||||
| Other accrued liabilities | 145 | 125 | |||||||||
| Total current liabilities | 1,614 | 1,427 | |||||||||
| Long-term debt | 2,532 | 1,790 | |||||||||
| Retirement and post-retirement benefits | 82 | 81 | |||||||||
| Long-term deferred revenue | 218 | 206 | |||||||||
| Long-term operating lease liabilities | 187 | 197 | |||||||||
| Other long-term liabilities | 425 | 463 | |||||||||
| Total liabilities | 5,058 | 4,164 | |||||||||
| Commitments and contingencies (Note 13) | |||||||||||
| Stockholders’ equity: | |||||||||||
| Preferred stock; $0.01 par value; 100 million shares authorized; none issued and outstanding | — | — | |||||||||
| Common stock; $0.01 par value; 1 billion shares authorized; 202 million and 201 million shares issued, respectively | 2 | 2 | |||||||||
| Treasury stock, at cost; 29.9 million shares and 28.4 million shares, respectively | (3,648) | (3,422) | |||||||||
| Additional paid-in-capital | 2,765 | 2,664 | |||||||||
| Retained earnings | 6,651 | 6,225 | |||||||||
| Accumulated other comprehensive loss | (293) | (364) | |||||||||
| Total stockholders' equity | 5,477 | 5,105 | |||||||||
| Total liabilities and equity | $ | 10,535 | $ | 9,269 |
The accompanying notes are an integral part of these condensed consolidated financial statements.
KEYSIGHT TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(in millions)
(Unaudited)
| Six Months Ended | |||||||||||
| April 30, | |||||||||||
| 2025 | 2024 | ||||||||||
| Cash flows from operating activities: | |||||||||||
| Net income | $ | 426 | $ | 298 | |||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
| Depreciation | 64 | 62 | |||||||||
| Amortization | 70 | 76 | |||||||||
| Share-based compensation | 98 | 82 | |||||||||
| Deferred tax expense (benefit) | (40) | (9) | |||||||||
| Excess and obsolete inventory-related charges | 22 | 18 | |||||||||
| Unrealized loss (gain) on equity and other investments | (23) | (6) | |||||||||
| Other non-cash expenses (income), net | 2 | 1 | |||||||||
| Changes in assets and liabilities, net of effects of businesses acquired: | |||||||||||
| Accounts receivable | 123 | 121 | |||||||||
| Inventory | (18) | (50) | |||||||||
| Accounts payable | 7 | (11) | |||||||||
| Employee compensation and benefits | 20 | (26) | |||||||||
| Deferred revenue | 52 | 14 | |||||||||
| Income taxes payable | 56 | (35) | |||||||||
| Other assets and liabilities | 3 | (97) | |||||||||
| Net cash provided by operating activities | 862 | 438 | |||||||||
| Cash flows from investing activities: | |||||||||||
| Investments in property, plant and equipment | (59) | (83) | |||||||||
| Acquisitions of businesses and intangible assets, net of cash acquired | (3) | (556) | |||||||||
| Other investing activities | (4) | 8 | |||||||||
| Net cash used in investing activities | (66) | (631) | |||||||||
| Cash flows from financing activities: | |||||||||||
| Proceeds from issuance of common stock under employee stock plans | 31 | 33 | |||||||||
| Payment of taxes related to net share settlement of equity awards | (29) | (28) | |||||||||
| Proceeds from issuance of long-term debt | 748 | — | |||||||||
| Acquisition of non-controlling interests | — | (458) | |||||||||
| Treasury stock repurchases, including excise tax payments | (228) | (139) | |||||||||
| Debt issuance costs | (7) | (5) | |||||||||
| Repayment of debt | — | (24) | |||||||||
| Net cash provided by (used in) financing activities | 515 | (621) | |||||||||
| Effect of exchange rate movements | 10 | — | |||||||||
| Net increase (decrease) in cash, cash equivalents, and restricted cash | 1,321 | (814) | |||||||||
| Cash, cash equivalents, and restricted cash at beginning of period | 1,814 | 2,488 | |||||||||
| Cash, cash equivalents, and restricted cash at end of period | $ | 3,135 | $ | 1,674 | |||||||
| Supplemental cash flow information: | |||||||||||
| Interest payments | $ | 39 | $ | 38 | |||||||
| Income tax paid, net | $ | 44 | $ | 146 | |||||||
| Investments in property, plant and equipment included in accounts payable | $ | 14 | $ | 14 |
The accompanying notes are an integral part of these condensed consolidated financial statements.
KEYSIGHT TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENT OF EQUITY
(in millions, except number of shares in thousands)
(Unaudited)
| Common Stock | Treasury Stock | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Number of Shares | Par Value | Additional Paid-in Capital | Number of Shares | Treasury Stock at Cost | Retained Earnings | Accumulated Other Comprehensive Loss | Non-controlling Interests | Total Stockholders' Equity | |||||||||||||||||||||||||||||||||||||||||||||
| Balance as of January 31, 2025 | 201,681 | $ | 2 | $ | 2,731 | (28,873) | $ | (3,497) | $ | 6,394 | $ | (443) | $ | — | $ | 5,187 | |||||||||||||||||||||||||||||||||||||
| Net income | — | — | — | — | — | 257 | — | — | 257 | ||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive income (loss), net of tax | — | — | — | — | — | — | 150 | — | 150 | ||||||||||||||||||||||||||||||||||||||||||||
| Issuance of common stock | 23 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
| Share-based compensation | — | — | 34 | — | — | — | — | — | 34 | ||||||||||||||||||||||||||||||||||||||||||||
| Repurchase of common stock, including excise tax | — | — | — | (1,041) | (151) | — | — | — | (151) | ||||||||||||||||||||||||||||||||||||||||||||
| Balance as of April 30, 2025 | 201,704 | $ | 2 | $ | 2,765 | (29,914) | $ | (3,648) | $ | 6,651 | $ | (293) | $ | — | $ | 5,477 | |||||||||||||||||||||||||||||||||||||
| Balance as of October 31, 2024 | 201,008 | $ | 2 | $ | 2,664 | (28,424) | $ | (3,422) | $ | 6,225 | $ | (364) | $ | — | $ | 5,105 | |||||||||||||||||||||||||||||||||||||
| Net income | — | — | — | — | — | 426 | — | — | 426 | ||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive income (loss), net of tax | — | — | — | — | — | — | 71 | — | 71 | ||||||||||||||||||||||||||||||||||||||||||||
| Issuance of common stock | 696 | — | 31 | — | — | — | — | — | 31 | ||||||||||||||||||||||||||||||||||||||||||||
| Taxes related to net share settlement of equity awards | — | — | (29) | — | — | — | — | — | (29) | ||||||||||||||||||||||||||||||||||||||||||||
| Share-based compensation | — | — | 99 | — | — | — | — | — | 99 | ||||||||||||||||||||||||||||||||||||||||||||
| Repurchase of common stock, including excise tax | — | — | — | (1,490) | (226) | — | — | — | (226) | ||||||||||||||||||||||||||||||||||||||||||||
| Balance as of April 30, 2025 | 201,704 | $ | 2 | $ | 2,765 | (29,914) | $ | (3,648) | $ | 6,651 | $ | (293) | $ | — | $ | 5,477 | |||||||||||||||||||||||||||||||||||||
| Balance as of January 31, 2024 | 200,621 | $ | 2 | $ | 2,547 | (26,074) | $ | (3,073) | $ | 5,783 | $ | (442) | $ | — | $ | 4,817 | |||||||||||||||||||||||||||||||||||||
| Net income | — | — | — | — | — | 126 | — | — | 126 | ||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive income (loss), net of tax | — | — | — | — | — | — | (27) | — | (27) | ||||||||||||||||||||||||||||||||||||||||||||
| Issuance of common stock | 34 | — | 1 | — | — | — | — | — | 1 | ||||||||||||||||||||||||||||||||||||||||||||
| Share-based compensation | — | — | 32 | — | — | — | — | — | 32 | ||||||||||||||||||||||||||||||||||||||||||||
| Repurchase of common stock, including excise tax | — | — | — | (302) | (46) | — | — | — | (46) | ||||||||||||||||||||||||||||||||||||||||||||
| Balance as of April 30, 2024 | 200,655 | $ | 2 | $ | 2,580 | (26,376) | $ | (3,119) | $ | 5,909 | $ | (469) | $ | — | $ | 4,903 | |||||||||||||||||||||||||||||||||||||
| Balance as of October 31, 2023 | 199,771 | $ | 2 | $ | 2,487 | (25,449) | $ | (2,980) | $ | 5,611 | $ | (466) | $ | — | $ | 4,654 | |||||||||||||||||||||||||||||||||||||
| Net income | — | — | — | — | — | 298 | — | 4 | 302 | ||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive income (loss), net of tax | — | — | — | — | — | — | (3) | — | (3) | ||||||||||||||||||||||||||||||||||||||||||||
| ESI Group acquisition | — | — | — | — | — | — | — | 458 | 458 | ||||||||||||||||||||||||||||||||||||||||||||
| Issuance of common stock | 884 | — | 33 | — | — | — | — | — | 33 | ||||||||||||||||||||||||||||||||||||||||||||
| Taxes related to net share settlement of equity awards | — | — | (28) | — | — | — | — | — | (28) | ||||||||||||||||||||||||||||||||||||||||||||
| Share-based compensation | — | — | 84 | — | — | — | — | — | 84 | ||||||||||||||||||||||||||||||||||||||||||||
| Repurchase of common stock, including excise tax | — | — | — | (927) | (139) | — | — | — | (139) | ||||||||||||||||||||||||||||||||||||||||||||
| Acquisition of non-controlling interests | — | — | 4 | — | — | — | — | (462) | (458) | ||||||||||||||||||||||||||||||||||||||||||||
| Balance as of April 30, 2024 | 200,655 | $ | 2 | $ | 2,580 | (26,376) | $ | (3,119) | $ | 5,909 | $ | (469) | $ | — | $ | 4,903 |
The accompanying notes are an integral part of these condensed consolidated financial statements.
KEYSIGHT TECHNOLOGIES, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1. OVERVIEW AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Overview. Keysight Technologies, Inc. (“we,” “us,” “our,” “Keysight” or “the company”), incorporated in Delaware on December 6, 2013, is a global innovator in the computing, communications and electronics market, committed to advancing our customers’ business success by helping them solve critical challenges in the development and commercialization of their products and services. Our mission, “accelerating innovation to connect and secure the world,” speaks to the value we provide our customers in a world of ever-increasing technological complexity. We deliver this value through a broad range of design and test solutions that address the critical challenges our customers face in bringing their innovations to market on ever-shorter schedules.
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.
Basis of Presentation. We have prepared the accompanying financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the U.S. (“GAAP”) have been condensed or omitted pursuant to such rules and regulations. The accompanying financial statements and information should be read in conjunction with our Annual Report on Form 10-K.
In the opinion of management, the accompanying condensed consolidated financial statements contain all normal and recurring adjustments necessary to state fairly our financial position as of April 30, 2025 and October 31, 2024, results of operations for the three and six months ended April 30, 2025 and 2024, and cash flows for the six months ended April 30, 2025 and 2024.
Principles of consolidation. The condensed consolidated financial statements include the accounts of the company and our wholly- and majority-owned subsidiaries. All significant inter-company transactions have been eliminated. The condensed consolidated financial statements also reflect the impact of non-controlling interests. Non-controlling interests do not have a significant impact on the condensed consolidated results of operations; therefore, net income attributable to non-controlling interests for the six months ended April 30, 2024 of $4 million is not presented separately and is included in “other income (expense), net” in the condensed consolidated statements of operations.
Use of Estimates. The preparation of condensed consolidated financial statements in accordance with GAAP 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 knowledge of current events and actions that may impact the company in the future, actual results may be different from the estimates.
Update to Significant Accounting Policies. There have been no material changes to our significant accounting policies as described in our Annual Report on Form 10-K for the fiscal year ended October 31, 2024.
New Accounting Pronouncements.
Accounting Standards Update (“ASU”) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. In November 2023, the Financial Accounting Standards Board (“FASB”) issued guidance that requires disclosure of significant segment expenses and other segment items used by the Chief Operating Decision Maker (“CODM”) on an annual and interim basis as well as provide in interim periods substantially all disclosures about a reportable segment’s profit or loss and assets that are currently required annually. Additionally, the ASU requires the disclosure of the title and position of the CODM. The new standard is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. This ASU will have no impact on our results of operations, cash flows or financial condition. We will apply the amendments in this ASU retrospectively to all prior period disclosures presented in the financial statements upon adoption.
ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. In December 2023, the FASB issued guidance that requires disclosure of disaggregated income taxes paid, prescribes standard categories for the components of the effective tax rate reconciliation, and modifies other income tax related disclosures. This standard is effective for fiscal years beginning after December 15, 2024. We are currently evaluating the impact of adopting this ASU on our consolidated financial statements and disclosures.
ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. In November 2024, the FASB issued guidance that requires disclosure of additional expense information on an annual and interim basis, including inventory purchases, employee compensation, depreciation and intangible asset amortization included within each income statement expense caption. This standard is effective for fiscal years beginning after December 15, 2026. We are currently evaluating the impact of adopting this ASU on our consolidated financial statements and disclosures.
Other amendments to GAAP 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.
2. ACQUISITIONS
On November 3, 2023, we acquired 50.6% of the share capital of ESI Group SA (“ESI Group”) for $477 million, net of cash acquired, using existing cash. During January 2024, we completed the acquisition of the remaining share capital of ESI Group for $458 million, using existing cash. The company entered into put/call agreements valued at $7 million for certain ESI Group equity awards, subject to a holding period that may extend beyond the explicit vesting period, for the right to receive a cash payment equal to the public tender offer consideration of 155 euros per share, which was substantially paid in the third quarter of fiscal year 2024.
The following represents pro forma operating results as if ESI Group had been included in the company's consolidated statements of operations as of the beginning of fiscal 2023:
| Three Months Ended | Six Months Ended | |||||||||||||
| April 30, 2024 | April 30, 2024 | |||||||||||||
| (in millions, except per share amounts) | ||||||||||||||
| Net revenue | $ | 1,216 | $ | 2,475 | ||||||||||
| Net income | $ | 133 | $ | 319 | ||||||||||
| Net income per share - Basic | $ | 0.76 | $ | 1.83 | ||||||||||
| Net income per share - Diluted | $ | 0.76 | $ | 1.82 |
The unaudited pro forma financial information for the three and six months ended April 30, 2024 combines the historical results of Keysight and ESI Group for the three and six months ended April 30, 2024, assuming that the companies were combined as of November 1, 2022 and includes business combination accounting effects from the acquisition including amortization charges from acquired intangible assets and tax-related effects. The pro forma information as presented above is for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisition had taken place at the beginning of fiscal 2023.
3. REVENUE
Disaggregation of Revenue
We disaggregate our revenue from contracts with customers by geographic region, end market, and timing of revenue recognition, as we believe these categories best depict how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. Disaggregated revenue is presented for each of our reportable segments, Communications Solutions Group (“CSG”) and Electronics Industrial Solutions Group (“EISG”).
| Three Months Ended | |||||||||||||||||||||||||||||||||||
| April 30, | |||||||||||||||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||||||||||||||
| CSG | EISG | Total | CSG | EISG | Total | ||||||||||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||||||||||
| Region | |||||||||||||||||||||||||||||||||||
| Americas | $ | 408 | $ | 102 | $ | 510 | $ | 397 | $ | 95 | $ | 492 | |||||||||||||||||||||||
| Europe | 128 | 95 | 223 | 127 | 101 | 228 | |||||||||||||||||||||||||||||
| Asia Pacific | 377 | 196 | 573 | 316 | 180 | 496 | |||||||||||||||||||||||||||||
| Total revenue | $ | 913 | $ | 393 | $ | 1,306 | $ | 840 | $ | 376 | $ | 1,216 | |||||||||||||||||||||||
| End Market | |||||||||||||||||||||||||||||||||||
| Aerospace, Defense & Government | $ | 301 | $ | — | $ | 301 | $ | 277 | $ | — | $ | 277 | |||||||||||||||||||||||
| Commercial Communications | 612 | — | 612 | 563 | — | 563 | |||||||||||||||||||||||||||||
| Electronic Industrial | — | 393 | 393 | — | 376 | 376 | |||||||||||||||||||||||||||||
| Total revenue | $ | 913 | $ | 393 | $ | 1,306 | $ | 840 | $ | 376 | $ | 1,216 | |||||||||||||||||||||||
| Timing of Revenue Recognition | |||||||||||||||||||||||||||||||||||
| Revenue recognized at a point in time | $ | 730 | $ | 326 | $ | 1,056 | $ | 658 | $ | 307 | $ | 965 | |||||||||||||||||||||||
| Revenue recognized over time | 183 | 67 | 250 | 182 | 69 | 251 | |||||||||||||||||||||||||||||
| Total revenue | $ | 913 | $ | 393 | $ | 1,306 | $ | 840 | $ | 376 | $ | 1,216 |
| Six Months Ended | |||||||||||||||||||||||||||||||||||
| April 30, | |||||||||||||||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||||||||||||||
| CSG | EISG | Total | CSG | EISG | Total | ||||||||||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||||||||||
| Region | |||||||||||||||||||||||||||||||||||
| Americas | $ | 856 | $ | 205 | $ | 1,061 | $ | 814 | $ | 192 | $ | 1,006 | |||||||||||||||||||||||
| Europe | 265 | 217 | 482 | 259 | 224 | 483 | |||||||||||||||||||||||||||||
| Asia Pacific | 675 | 386 | 1,061 | 606 | 380 | 986 | |||||||||||||||||||||||||||||
| Total revenue | $ | 1,796 | $ | 808 | $ | 2,604 | $ | 1,679 | $ | 796 | $ | 2,475 | |||||||||||||||||||||||
| End Market | |||||||||||||||||||||||||||||||||||
| Aerospace, Defense & Government | $ | 612 | $ | — | $ | 612 | $ | 572 | $ | — | $ | 572 | |||||||||||||||||||||||
| Commercial Communications | 1,184 | — | 1,184 | 1,107 | — | 1,107 | |||||||||||||||||||||||||||||
| Electronic Industrial | — | 808 | 808 | — | 796 | 796 | |||||||||||||||||||||||||||||
| Total revenue | $ | 1,796 | $ | 808 | $ | 2,604 | $ | 1,679 | $ | 796 | $ | 2,475 | |||||||||||||||||||||||
| Timing of Revenue Recognition | |||||||||||||||||||||||||||||||||||
| Revenue recognized at a point in time | $ | 1,430 | $ | 672 | $ | 2,102 | $ | 1,312 | $ | 653 | $ | 1,965 | |||||||||||||||||||||||
| Revenue recognized over time | 366 | 136 | 502 | 367 | 143 | 510 | |||||||||||||||||||||||||||||
| Total revenue | $ | 1,796 | $ | 808 | $ | 2,604 | $ | 1,679 | $ | 796 | $ | 2,475 |
Contract Balances
Contract assets
Contract assets consist of unbilled receivables that are recorded when revenue is recognized in advance of scheduled billings to our customers. These amounts are primarily related to solutions and support arrangements when transfer of control has occurred, but we have not yet invoiced. The contract assets balance was $97 million and $88 million as of April 30, 2025 and October 31, 2024, respectively, and is included in “accounts receivables, net” and “other assets” in the condensed consolidated balance sheet.
Contract costs
We capitalize costs incurred to acquire contracts for which the associated revenue is expected to be recognized in future periods. We have determined that certain employee and third-party representative commission programs meet the requirements to be capitalized. These costs are initially deferred and typically amortized over the term of the customer contract, which corresponds to the period of benefit. Capitalized contract costs were $36 million and $35 million as of April 30, 2025 and October 31, 2024, respectively, and are included in “other current assets” and “other assets” in the condensed consolidated balance sheet. The amortization expense associated with these capitalized costs was $15 million and $29 million for the three and six months ended April 30, 2025, respectively, and $14 million and $30 million for the corresponding periods last year.
Contract liabilities
Our contract liabilities consist of deferred revenue that arises when we receive consideration in advance of providing the goods or services promised in the contract. Contract liabilities are primarily generated from customer deposits received in advance of shipments for products or rendering of services and are recognized as revenue when products are shipped or services are provided to the customer. We classify deferred revenue as current or non-current based on the timing of when we expect to recognize revenue.
The following table provides a roll-forward of our contract liabilities, current and non-current:
| Six Months Ended | |||||
| April 30, 2025 | |||||
| (in millions) | |||||
| Balance at October 31, 2024 | $ | 767 | |||
| Deferral of revenue billed in current period, net of recognition | 397 | ||||
| Revenue recognized that was deferred as of the beginning of the period | (343) | ||||
| Foreign currency translation impact | 9 | ||||
| Balance at April 30, 2025 | $ | 830 |
Of the $343 million of revenue recognized in the six months ended April 30, 2025 that was deferred as of the beginning of the period, approximately $139 million was recognized in the three months ended April 30, 2025.
Remaining Performance Obligations
Our expected remaining performance obligations, excluding contracts that have an original expected duration of one year or less, was approximately $557 million as of April 30, 2025, and represents the company’s obligation to deliver products and services and obtain customer acceptance on delivered products. As of April 30, 2025, we expect to fulfill 36 percent of these remaining performance obligations during the remainder of 2025, 37 percent during 2026, and 27 percent thereafter.
4. SHARE-BASED COMPENSATION
Keysight accounts 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 restricted stock units (“RSUs”), 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 (“LTP”) Program, based on estimated fair values. The impact of share-based compensation expense on the condensed consolidated statement of operations was as follows:
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||
| April 30, | April 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
| Cost of products and services | $ | 9 | $ | 7 | $ | 20 | $ | 15 | |||||||||||||||
| Research and development | 9 | 9 | 25 | 22 | |||||||||||||||||||
| Selling, general and administrative | 19 | 20 | 54 | 49 | |||||||||||||||||||
| Total share-based compensation expense | $ | 37 | $ | 36 | $ | 99 | $ | 86 |
Share-based compensation capitalized within inventory was $2 million as of April 30, 2025 and 2024.
5. INCOME TAXES
The following table provides income tax details:
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||
| April 30, | April 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| (in millions, except percentages) | |||||||||||||||||||||||
| Income before taxes | $ | 320 | $ | 175 | $ | 519 | $ | 404 | |||||||||||||||
| Provision for income taxes | $ | 63 | $ | 49 | $ | 93 | $ | 106 | |||||||||||||||
| Effective tax rate | 19.5 | % | 27.6 | % | 17.9 | % | 25.8 | % |
The effective tax rate for the three and six months ended April 30, 2025 was lower than the U.S. statutory federal income tax rate primarily due to a lower effective tax rate on foreign earnings, partially offset by U.S. taxes on those earnings and the impact of Pillar Two minimum taxes.
The Organization for Economic Cooperation and Development (“OECD”) reached agreement among certain member countries to implement a global minimum tax framework, commonly referred to as Pillar Two, which established a minimum 15 percent income tax rate. Various countries have passed legislation to comply with the Pillar Two model rules. A subset of these rules became effective for Keysight in the current fiscal year. While we expect to meet transitional safe harbor requirements in most jurisdictions, there are a limited number of jurisdictions where we expect Pillar Two taxes to apply. The income tax provision for the three and six months ended April 30, 2025 included the effects of Pillar Two taxes based on currently enacted legislation and administrative guidance. We continue to closely monitor Pillar Two developments, including the release of additional administrative guidance and the U.S. response to Pillar Two.
The tax expense for the three and six months ended April 30, 2025 was lower compared to the same periods last year primarily due to a decrease in Global Intangible Low Taxed Income (“GILTI”) tax and a lower effective tax rate on foreign earnings.
On June 14, 2019, the U.S. Department of the Treasury (“Treasury”) issued final regulations relating to GILTI under IRC § 951A (the “tax regulations”). The tax regulations contained language that disallowed GILTI tax deductions for intangible asset amortization resulting from the Singapore restructuring completed in 2018. In the third quarter of 2024, we concluded that Treasury exceeded its regulatory authority and the intangible asset amortization should be deductible. We amended our U.S. federal income tax returns for the open tax years to claim the deduction and filed a lawsuit seeking a tax refund. See Note 13, “Commitments and Contingencies,” for additional information. The GILTI tax benefit resulting from the current year intangible amortization was considered in the tax expense for the three and six months ended April 30, 2025, but not in the comparable period. The Singapore intangible assets will continue to be amortized for GILTI tax purposes until 2033. If we are ultimately unsuccessful in defending our refund claim, we will be required to reverse the benefit previously recorded, which would most likely result in a material increase in the effective tax rate and our income tax liability.
The income tax expense for the three and six months ended April 30, 2025 included a net discrete expense of $11 million and $10 million, respectively. The income tax expense for the three and six months ended April 30, 2024 included a net discrete
benefit of $1 million and a net discrete expense of $1 million, respectively. The discrete tax expense for the three and six months ended April 30, 2025 was higher compared to the same periods last year primarily due to the impact of tax rate changes in non-U.S. jurisdictions.
Keysight benefits from tax incentives in several jurisdictions, most significantly in Singapore and Malaysia. The tax incentives provide lower rates of taxation on certain classes of income and require thresholds of investments and employment in those jurisdictions. The Malaysia tax incentive expires October 31, 2025. The Singapore tax incentive expires July 31, 2029. The impact of the tax incentives decreased income taxes by $33 million for the six months ended April 30, 2025.
The open tax years for the U.S. federal income tax return and most state income tax returns are from November 1, 2019 through the current tax year. Keysight’s U.S. federal income tax returns for 2021 and 2022 are currently under audit by the Internal Revenue Service (“IRS”). For the majority of our non-U.S. entities, the open tax years are from November 1, 2019 through the current tax year.
At this time, management does not believe that the outcome of any future or currently ongoing examination will have a material impact on our consolidated financial statements. We believe that we have adequate provisions for any adjustments that may result from tax examinations. However, the outcome of tax examinations cannot be predicted with certainty. Given the numerous tax years and matters that remain subject to examination in various tax jurisdictions, the ultimate resolution of current and future tax examinations could be inconsistent with management’s current expectations. If that were to occur, it could have an impact on our effective tax rate in the period in which such examinations are resolved.
6. NET INCOME PER SHARE
The following table presents the calculation of basic and diluted net income per share:
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||
| April 30, | April 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| (in millions, except per-share amounts) | |||||||||||||||||||||||
| Net income | $ | 257 | $ | 126 | $ | 426 | $ | 298 | |||||||||||||||
| Basic weighted-average shares | 172 | 174 | 173 | 175 | |||||||||||||||||||
| Potential common shares | 1 | 1 | 1 | — | |||||||||||||||||||
| Diluted weighted-average shares | 173 | 175 | 174 | 175 | |||||||||||||||||||
| Net income per share - basic | $ | 1.49 | $ | 0.73 | $ | 2.47 | $ | 1.71 | |||||||||||||||
| Net income per share - diluted | $ | 1.49 | $ | 0.72 | $ | 2.45 | $ | 1.70 | |||||||||||||||
Potentially dilutive shares whose effect would have been antidilutive are excluded from the computation of diluted net income per share. The number of shares excluded was not material for the three and six months ended April 30, 2025 and 2024.
7. GOODWILL AND OTHER INTANGIBLE ASSETS
The goodwill balances as of April 30, 2025 and October 31, 2024 and the activity for the six months ended April 30, 2025 for each of our reportable segments were as follows:
| CSG | EISG | Total | |||||||||||||||
| (in millions) | |||||||||||||||||
| Goodwill at October 31, 2024 | $ | 1,240 | $ | 1,148 | $ | 2,388 | |||||||||||
| Foreign currency translation impact | 17 | 25 | 42 | ||||||||||||||
| Goodwill arising from acquisitions | 2 | 1 | 3 | ||||||||||||||
| Goodwill at April 30, 2025 | $ | 1,259 | $ | 1,174 | $ | 2,433 |
There were no impairments of goodwill for the three and six months ended April 30, 2025 and 2024. As of April 30, 2025 and October 31, 2024, the accumulated impairment loss on goodwill was $709 million as recorded within the CSG reportable segment.
Other intangible assets as of April 30, 2025 and October 31, 2024 consisted of the following:
| April 30, 2025 | October 31, 2024 | ||||||||||||||||||||||||||||||||||
| Gross Carrying Amount | Accumulated Amortization | Net Book Value | Gross Carrying Amount | Accumulated Amortization | Net Book Value | ||||||||||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||||||||||
| Developed technology | $ | 1,411 | $ | 1,055 | $ | 356 | $ | 1,377 | $ | 1,018 | $ | 359 | |||||||||||||||||||||||
| Backlog | 38 | 29 | 9 | 37 | 25 | 12 | |||||||||||||||||||||||||||||
| Trademark/Tradename | 38 | 37 | 1 | 38 | 36 | 2 | |||||||||||||||||||||||||||||
| Customer relationships | 587 | 420 | 167 | 587 | 398 | 189 | |||||||||||||||||||||||||||||
| Total amortizable intangible assets | $ | 2,074 | $ | 1,541 | $ | 533 | $ | 2,039 | $ | 1,477 | $ | 562 | |||||||||||||||||||||||
| In-Process R&D | 23 | — | 23 | 45 | — | 45 | |||||||||||||||||||||||||||||
| Total | $ | 2,097 | $ | 1,541 | $ | 556 | $ | 2,084 | $ | 1,477 | $ | 607 |
During the six months ended April 30, 2025, we recognized additions to goodwill of $3 million for acquisition activity. During the six months ended April 30, 2025, we transferred $22 million from in-process R&D to developed technology as projects were successfully completed. During the six months ended April 30, 2025, foreign exchange translation had a favorable impact of $13 million on other intangible assets. Amortization of other intangible assets was $32 million and $64 million, respectively, for the three and six months ended April 30, 2025. Amortization of other intangible assets was $37 million and $75 million, respectively, for the three and six months ended April 30, 2024.
Goodwill is assessed for impairment on a reporting unit basis at least annually in the fourth quarter of each year, or more frequently when events and circumstances occur indicating that the recorded goodwill may be impaired. The company has not identified any triggering events that indicate an impairment of goodwill for the six months ended April 30, 2025.
Estimated intangible assets amortization expense for each of the five succeeding fiscal years is as follows:
| Amortization expense | |||||
| (in millions) | |||||
| 2025 (remainder) | $ | 65 | |||
| 2026 | $ | 119 | |||
| 2027 | $ | 107 | |||
| 2028 | $ | 104 | |||
| 2029 | $ | 95 | |||
| 2030 | $ | 17 | |||
| Thereafter | $ | 26 |
8. 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 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.
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 April 30, 2025 and October 31, 2024 were as follows:
| Fair Value Measurements at | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| April 30, 2025 | October 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total | Level 1 | Level 2 | Level 3 | Other | Total | Level 1 | Level 2 | Level 3 | Other | ||||||||||||||||||||||||||||||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Assets: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Short-term | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cash equivalents | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Money market funds | $ | 2,649 | $ | 2,649 | $ | — | $ | — | $ | — | $ | 1,141 | $ | 1,141 | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||||||||||||||
| Derivative instruments (foreign exchange contracts) | 33 | — | 33 | — | — | 38 | — | 38 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| Long-term | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Equity investments | 104 | 104 | — | — | — | 80 | 80 | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| Investments - other | 34 | — | — | — | 34 | 29 | — | — | — | 29 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Total assets measured at fair value | $ | 2,820 | $ | 2,753 | $ | 33 | $ | — | $ | 34 | $ | 1,288 | $ | 1,221 | $ | 38 | $ | — | $ | 29 | |||||||||||||||||||||||||||||||||||||||
| Liabilities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Short-term | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Derivative instruments (foreign exchange contracts) | $ | 15 | $ | — | $ | 15 | $ | — | $ | — | $ | 6 | $ | — | $ | 6 | $ | — | $ | — | |||||||||||||||||||||||||||||||||||||||
| Long-term | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Deferred compensation liability | 34 | — | 34 | — | — | 34 | — | 34 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| Total liabilities measured at fair value | $ | 49 | $ | — | $ | 49 | $ | — | $ | — | $ | 40 | $ | — | $ | 40 | $ | — | $ | — |
As of April 30, 2025, the money market funds investments included net proceeds from the issuance of the 2030 Senior Notes. See Note 10, “ Debt,” for additional information.
Our investments in money market funds and equity investments with readily determinable fair values are measured at fair value using quoted market prices and, therefore, are classified within Level 1 of the fair value hierarchy. Equity and fixed income investments or convertible notes without readily determinable fair values that are either measured at cost, adjusted for observable changes in price or impairments, or accounted for under a measurement alternative are not categorized in the fair value hierarchy and are presented as “investments - other” in the table above. Our deferred compensation liability is classified as Level 2 because the inputs used in the calculations are observable, although the values are not directly based on quoted market prices. 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.
Equity investments, including securities that are earmarked to pay the deferred compensation liability, are reported at fair value, with gains or losses resulting from changes in fair value recognized in earnings within “other income (expense), net” in the condensed consolidated statement of operations. Certain derivative instruments are reported at fair value, with unrealized gains and losses, net of tax, included in “accumulated other comprehensive income (loss).”
There were no realized gains or losses from the sale of investments for the three and six months ended April 30, 2025 and 2024, respectively. Net unrealized gain (loss) on our equity and other investments was as follows:
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||
| April 30, | April 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
| Net unrealized gain (loss) on equity and other investments still held | $ | (15) | $ | 3 | $ | 23 | $ | 10 |
9. 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, 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 based on a rolling period of up to twelve months. These derivative instruments are designated and qualify as cash flow hedges under the criteria prescribed in the authoritative guidance.
In 2020, we entered into forward-starting interest rate swaps with an aggregate notional amount of $600 million in connection with future interest payments on the issuance of $600 million in unsecured senior notes (“2034 Senior Notes”). In 2023, we terminated the interest rate swap agreements, resulting in a deferred gain of $107 million recognized in “accumulated other comprehensive income (loss)” that is being amortized to interest expense over the term of the 2034 Senior Notes. The remaining gain to be amortized related to the interest rate swap agreements was $101 million as of April 30, 2025.
Non-designated Hedges
Additionally, we periodically enter into foreign exchange contracts to hedge monetary assets and liabilities that are denominated in currencies other than the functional currency of our subsidiaries.
In 2024, we entered into foreign exchange forward contracts with an aggregate notional amount of 1.2 billion pounds sterling to mitigate the currency exchange risk associated with a planned acquisition. These foreign exchange contracts did not qualify for hedge accounting treatment and were not designated as hedging instruments. During the three and six months ended April 30, 2025, the settlement of these contracts provided $60 million in cash. In April 2025, we entered into new foreign exchange contracts with the same aggregate notional amount. For the three and six months ended April 30, 2025, the aggregate net gain on all these foreign exchange contracts was $115 million and $47 million, respectively, recorded in “other income (expense), net” in the condensed consolidated statement of operations. As of April 30, 2025, the net unrealized gain on outstanding contracts was $10 million, recorded in “other current assets” in the condensed consolidated balance sheet.
In connection with the acquisition of ESI Group, we entered into foreign exchange forward contracts to mitigate the currency exchange risk associated with the payment of the purchase price in euros. The aggregate notional amount of the currencies hedged was 930 million euros as of October 31, 2023. These foreign exchange contracts did not qualify for hedge accounting treatment and were not designated as hedging instruments. For the six months ended April 30, 2024, these foreign exchange forward contracts were settled using existing cash of $63 million, resulting in a loss of $18 million recorded in “other income (expense), net” in the condensed consolidated statement of operations.
The number of open foreign exchange forward contracts designated as “cash flow hedges” and “not designated as hedging instruments” was 190 and 83, respectively, as of April 30, 2025. The aggregated notional amounts by currency and designation as of April 30, 2025 were as follows:
| Derivatives in Cash Flow Hedging Relationships | Derivatives Not Designated as Hedging Instruments | |||||||||||||
| Forward Contracts | Forward Contracts | |||||||||||||
| Currency | Buy/(Sell) | Buy/(Sell) | ||||||||||||
| (in millions) | ||||||||||||||
| Euro | $ | 10 | $ | 130 | ||||||||||
| Pounds Sterling | 10 | 1,651 | ||||||||||||
| Singapore Dollar | 30 | 16 | ||||||||||||
| Malaysian Ringgit | 118 | 11 | ||||||||||||
| Japanese Yen | (122) | (125) | ||||||||||||
| Other currencies | (35) | 53 | ||||||||||||
| Total | $ | 11 | $ | 1,736 |
Derivative instruments are subject to master netting arrangements and are disclosed at their gross fair value in the condensed consolidated balance sheet. The gross fair values and balance sheet presentation of derivative instruments held as of April 30, 2025 and October 31, 2024 were as follows:
| Fair Values of Derivative Instruments | ||||||||||||||||||||||||||||||||
| Assets Derivatives | Liabilities Derivatives | |||||||||||||||||||||||||||||||
| Fair Value | Fair Value | |||||||||||||||||||||||||||||||
| Balance Sheet Location | April 30, 2025 | October 31, 2024 | Balance Sheet Location | April 30, 2025 | October 31, 2024 | |||||||||||||||||||||||||||
| (in millions) | ||||||||||||||||||||||||||||||||
| Derivatives designated as hedging instruments: | ||||||||||||||||||||||||||||||||
| Cash flow hedges | ||||||||||||||||||||||||||||||||
| Foreign exchange contracts | ||||||||||||||||||||||||||||||||
| Other current assets | $ | 6 | $ | 8 | Other accrued liabilities | $ | 7 | $ | 2 | |||||||||||||||||||||||
| Derivatives not designated as hedging instruments: | ||||||||||||||||||||||||||||||||
| Foreign exchange contracts | ||||||||||||||||||||||||||||||||
| Other current assets | 27 | 30 | Other accrued liabilities | 8 | 4 | |||||||||||||||||||||||||||
| Total derivatives | $ | 33 | $ | 38 | $ | 15 | $ | 6 |
The effect of derivative instruments for foreign exchange contracts designated as hedging instruments and not designated as hedging instruments in the condensed consolidated statement of operations was as follows:
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||
| April 30, | April 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
| Derivatives designated as hedging instruments: | |||||||||||||||||||||||
| Cash flow hedges | |||||||||||||||||||||||
| Foreign exchange contracts: | |||||||||||||||||||||||
| Gain (loss) recognized in accumulated other comprehensive income (loss) | $ | (2) | $ | 4 | $ | (3) | $ | 1 | |||||||||||||||
| Gain (loss) reclassified from accumulated other comprehensive income (loss) into earnings: | |||||||||||||||||||||||
| Cost of products | $ | 2 | $ | 3 | $ | 4 | $ | 6 | |||||||||||||||
| Selling, general and administrative | $ | — | $ | — | $ | — | $ | (1) | |||||||||||||||
| Interest expense | $ | 2 | $ | — | $ | 5 | $ | — | |||||||||||||||
| Gain (loss) excluded from effectiveness testing recognized in earnings based on amortization approach: | |||||||||||||||||||||||
| Cost of products | $ | 1 | $ | 2 | $ | 2 | $ | 3 | |||||||||||||||
| Derivatives not designated as hedging instruments: | |||||||||||||||||||||||
| Gain (loss) recognized in: | |||||||||||||||||||||||
| Other income (expense), net | $ | 127 | $ | (3) | $ | 55 | $ | (20) |
The estimated amount as of April 30, 2025 expected to be reclassified from accumulated other comprehensive income (loss) to earnings within the next twelve months is a net gain of $9 million.
10. DEBT
The following table summarizes the components of our debt:
| April 30, 2025 | October 31, 2024 | ||||||||||
| (in millions) | |||||||||||
| 2027 Senior Notes at 4.60% ($700 face amount less unamortized costs of $1 and $2) | $ | 699 | $ | 698 | |||||||
| 2029 Senior Notes at 3.00% ($500 face amount less unamortized costs of $2 and $2) | 498 | 498 | |||||||||
| 2030 Senior Notes at 5.35% ($750 face amount less unamortized costs of $9) | 741 | — | |||||||||
| 2034 Senior Notes at 4.95% ($600 face amount less unamortized costs of $6 and $6) | 594 | 594 | |||||||||
| Total debt | $ | 2,532 | $ | 1,790 |
Senior Notes
2030 Senior Notes
In April 2025, the company issued an aggregate principal amount of $750 million in unsecured senior notes (“2030 Senior Notes”). The 2030 Senior Notes were issued at 99.760 percent of their principal amount. The notes will mature on July 30, 2030 and bear interest at a fixed rate of 5.35 percent per annum. The interest is payable semi-annually on January 30 and July 30, commencing on January 30, 2026. We incurred issuance costs of $7 million in connection with the 2030 Senior Notes that, along with the debt discount, are being amortized to interest expense over the term of the senior notes.
There have been no changes to the principal, maturity, interest rates and interest payment terms of our other senior notes during the six months ended April 30, 2025 as compared to the senior notes described in our Annual Report on Form 10-K for the fiscal year ended October 31, 2024.
The fair value of our debt, calculated from quoted prices that are Level 1 inputs under the accounting guidance fair value hierarchy, is approximately $2,518 million and $1,739 million as of April 30, 2025 and October 31, 2024, respectively.
Revolving Credit Facility
On July 30, 2021, we entered into an amended and restated credit agreement (the “Revolving Credit Facility”), which provides a $750 million five-year unsecured revolving credit facility that expires on July 30, 2026. Borrowings under the facility bear an annual interest rate of SOFR + 1.1 percent along with a facility fee of 0.1 percent per annum. In addition, the Revolving Credit Facility permits the company, subject to certain customary conditions, on one or more occasions to request to increase the total commitments under the Revolving Credit Facility by up to $250 million in the aggregate. We may use amounts borrowed under the Revolving Credit Facility for general corporate purposes. As of April 30, 2025 and October 31, 2024, we had no borrowings outstanding under the Revolving Credit Facility. We were in compliance with the covenants of the Revolving Credit Facility during the six months ended April 30, 2025.
Bridge Facility
On March 28, 2024, we entered into a bridge credit agreement (the “Bridge Facility”) pursuant to which certain lenders agreed to provide a senior unsecured bridge credit facility of up to 1,350 million pounds sterling for the purpose of providing the financing to support a planned acquisition. On July 25, 2024, the Bridge Facility decreased to 1,232 million pounds sterling. On May 8, 2025, the Bridge Facility was decreased to 752 million pounds sterling. In connection with this decrease, the net proceeds from the 2030 Senior Notes have been restricted to support a planned acquisition and are held in a designated money market fund. We incurred costs in connection with the Bridge Facility of $7 million that have been fully amortized to interest expense. As of April 30, 2025 and October 31, 2024, we had no borrowings outstanding under the Bridge Facility.
Letters of Credit
As of April 30, 2025 and October 31, 2024, we had $42 million and $43 million, respectively, of outstanding letters of credit and surety bonds that were issued by various lenders.
11. RETIREMENT PLANS AND POST-RETIREMENT BENEFIT PLANS
For the three and six months ended April 30, 2025 and 2024, our net pension and post-retirement benefit cost (benefit) consisted of the following:
| Pensions | |||||||||||||||||||||||||||||||||||
| U.S. Defined Benefit Plans | Non-U.S. Defined Benefit Plans | U.S. Post-Retirement Benefit Plan | |||||||||||||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||||||||||||
| April 30, | |||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||||||||||
| Service cost—benefits earned during the period | $ | 5 | $ | 3 | $ | 2 | $ | 2 | $ | — | $ | — | |||||||||||||||||||||||
| Interest cost on benefit obligation | 9 | 10 | 8 | 9 | 2 | 2 | |||||||||||||||||||||||||||||
| Expected return on plan assets | (13) | (12) | (14) | (13) | (3) | (3) | |||||||||||||||||||||||||||||
| Amortization of net actuarial loss (gain) | 2 | 3 | (1) | 2 | (1) | — | |||||||||||||||||||||||||||||
| Net periodic benefit cost (benefit) | $ | 3 | $ | 4 | $ | (5) | $ | — | $ | (2) | $ | (1) | |||||||||||||||||||||||
| Pensions | |||||||||||||||||||||||||||||||||||
| U.S. Defined Benefit Plans | Non-U.S. Defined Benefit Plans | U.S. Post-Retirement Benefit Plan | |||||||||||||||||||||||||||||||||
| Six months ended | |||||||||||||||||||||||||||||||||||
| April 30, | |||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||||||||||
| Service cost—benefits earned during the period | $ | 9 | $ | 7 | $ | 4 | $ | 4 | $ | — | $ | — | |||||||||||||||||||||||
| Interest cost on benefit obligation | 19 | 20 | 17 | 18 | 4 | 4 | |||||||||||||||||||||||||||||
| Expected return on plan assets | (26) | (24) | (29) | (26) | (6) | (6) | |||||||||||||||||||||||||||||
| Amortization of net actuarial loss (gain) | 3 | 5 | (2) | 4 | (1) | — | |||||||||||||||||||||||||||||
| Net periodic benefit cost (benefit) | $ | 5 | $ | 8 | $ | (10) | $ | — | $ | (3) | $ | (2) |
We record the service cost component of net periodic benefit cost (benefit) in the same line item as other employee compensation costs. The non-service components of net periodic benefit cost (benefit), such as interest cost, expected return on assets, amortization of prior service cost, and actuarial gains or losses, are recorded within “other income (expense), net” in the condensed consolidated statement of operations.
We did not contribute to our U.S. defined benefit plans or U.S. post-retirement benefit plan during the three and six months ended April 30, 2025 and 2024. We contributed $2 million and $5 million to our non-U.S. defined benefit plans during the three and six months ended April 30, 2025 and 2024, respectively.
For the remainder of 2025, we do not expect to contribute to our U.S. defined benefit plan and U.S. post-retirement benefit plan, and we expect to contribute $6 million to our non-U.S. defined benefit plans. The amounts we contribute depend upon, among other things, legal requirements, underlying asset returns, the plan’s funded status, the anticipated tax deductibility of the contribution, local practices, employee retirements, market conditions, interest rates and other factors.
12. SUPPLEMENTAL FINANCIAL INFORMATION
The following tables provide details of selected balance sheet items:
Cash, cash equivalents, and restricted cash
| April 30, 2025 | October 31, 2024 | ||||||||||
| (in millions) | |||||||||||
| Cash and cash equivalents | $ | 3,118 | $ | 1,796 | |||||||
| Restricted cash included in other assets | 17 | 18 | |||||||||
| Total cash, cash equivalents, and restricted cash shown in the statement of cash flows | $ | 3,135 | $ | 1,814 | |||||||
Restricted cash relates primarily to deficit reduction contributions to an escrow account for one of our non-U.S. defined benefit pension plans and deposits held as collateral against bank guarantees.
As of April 30, 2025, cash and cash equivalents included net proceeds from the issuance of the 2030 Senior Notes. Subsequently, in May 2025, these net proceeds have been restricted to support a planned acquisition in connection with the decrease of the Bridge Facility. See Note 10, “Debt,” for additional information.
Inventory
| April 30, 2025 | October 31, 2024 | ||||||||||
| (in millions) | |||||||||||
| Finished goods | $ | 388 | $ | 375 | |||||||
| Purchased parts and fabricated assemblies | 638 | 647 | |||||||||
| Total inventory | $ | 1,026 | $ | 1,022 |
Leases
The following table summarizes the components of our lease cost:
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||
| April 30, | April 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
| Operating lease cost | $ | 15 | $ | 16 | $ | 30 | $ | 31 | |||||||||||||||
| Variable lease cost | $ | 5 | $ | 4 | $ | 10 | $ | 11 |
Supplemental information related to our operating leases was as follows:
| Six Months Ended | |||||||||||
| April 30, | |||||||||||
| 2025 | 2024 | ||||||||||
| (in millions) | |||||||||||
| Cash payment for operating leases | $ | 27 | $ | 28 | |||||||
| Right-of-use assets obtained in exchange for operating lease obligations | $ | 13 | $ | 28 |
Standard warranty
Warranties on products sold through direct sales channels are primarily for one year. Warranties for products sold through distribution channels are primarily for three years. We accrue for standard warranty costs based on historical trends in warranty charges. The accrual is reviewed regularly and periodically adjusted to reflect changes in warranty cost estimates. Estimated warranty charges are recorded within “cost of products” at the time related product revenue is recognized.
Activity related to the standard warranty accrual, which is included in “other accrued liabilities” and “other long-term liabilities” in the condensed consolidated balance sheet, was as follows:
| Six Months Ended | |||||||||||
| April 30, | |||||||||||
| 2025 | 2024 | ||||||||||
| (in millions) | |||||||||||
| Beginning balance | $ | 31 | $ | 36 | |||||||
| Accruals for warranties, including change in estimates | 10 | 10 | |||||||||
| Settlements made during the period | (12) | (13) | |||||||||
| Ending balance | $ | 29 | $ | 33 | |||||||
| Accruals for warranties due within one year | $ | 18 | $ | 20 | |||||||
| Accruals for warranties due after one year | 11 | 13 | |||||||||
| Ending balance | $ | 29 | $ | 33 |
Other current assets
| April 30, 2025 | October 31, 2024 | ||||||||||
| (in millions) | |||||||||||
| Prepaid assets | $ | 303 | $ | 287 | |||||||
| Tax receivables | 112 | 138 | |||||||||
| Other current assets | 163 | 157 | |||||||||
| Total other current assets | $ | 578 | $ | 582 |
Prepaid assets include deposits paid in advance to contract manufacturers of $199 million and $200 million as of April 30, 2025 and October 31, 2024, respectively.
13. COMMITMENTS AND CONTINGENCIES
Commitments
During the six months ended April 30, 2025, there were no material changes to the purchase commitments as reported in our Annual Report on Form 10-K for the fiscal year ended October 31, 2024.
Contingencies
On January 1, 2022, Centripetal Networks filed a lawsuit in Federal District Court in Virginia, alleging that certain Keysight products infringe certain of Centripetal’s patents. In addition, in February 2022 Centripetal filed complaints in Germany alleging infringement of certain of Centripetal’s German patents, and in April 2022 Centripetal filed a complaint with the International Trade Commission (“ITC”) requesting that they investigate whether Keysight violated Section 337 of the Tariff Act (“Section 337”) and should be enjoined from importing certain products that are manufactured outside of the U.S. and which are alleged to infringe Centripetal patents. On December 5, 2023, the ITC issued its Notice of Determination that Keysight did not unfairly import products in violation of Section 337 and the investigation was terminated. Centripetal has appealed this determination. On August 21, 2024, Keysight was served in Germany with a complaint filed in the Unified Patent Court alleging that certain Keysight products sold in Germany, France, Italy and the Netherlands infringe a European Centripetal patent. We deny the allegations and are aggressively defending each case.
On June 14, 2019, the U.S. Treasury issued final regulations relating to GILTI under the tax regulations. The tax regulations contained language which disallowed GILTI tax deductions for intangible asset amortization resulting from the Singapore restructuring completed in 2018. During the third quarter of fiscal year 2024, we concluded, in response to recent U.S. Supreme Court decisions on a number of relevant cases, the evolving global tax landscape and other changes in circumstances, that Treasury exceeded its regulatory authority and the intangible asset amortization should be deductible. In response, we amended our U.S. federal income tax returns for the open tax years to claim the deduction and recognized the discrete benefit in the condensed consolidated financial statements. We believe the position meets the more likely than not recognition threshold.
On January 23, 2025, we filed a lawsuit against the United States of America in the United States Court of Federal Claims seeking a tax refund of $107 million, or such greater amount allowed by law, plus any other amount, including interest and cost, allowed by law. We intend to vigorously defend our position. The outcome cannot be predicted with certainty. If we are ultimately unsuccessful in defending our refund claim, we will be required to reverse the benefit previously recorded, most likely resulting in a material increase in the effective tax rate and income tax liability.
Although there are no matters pending that we currently believe are probable and reasonably possible of having a material impact to our business, consolidated financial position, or results of operations or cash flows, the outcome of litigation is inherently uncertain and is difficult to predict. An adverse outcome in any outstanding lawsuit or proceeding could result in significant monetary damages or injunctive relief. If adverse results are above management’s expectations or are unforeseen, management may not have accrued for the liability, which could impact our results in future periods.
We are also involved in lawsuits, claims, investigations and proceedings, including, but not limited to, patent, employment, commercial and environmental matters, which arise in the ordinary course of business.
14. STOCKHOLDERS' EQUITY
Stock Repurchase Program
On March 6, 2023, our board of directors approved a stock repurchase program authorizing the purchase of up to $1,500 million of the company’s common stock, of which $260 million remained as of April 30, 2025.
Under our stock repurchase program, shares may be purchased from time to time, subject to general business and market conditions and other investment opportunities, through open market purchases, privately negotiated transactions or other means. All such shares and related costs are held as treasury stock and accounted for at the trade date using the cost method. The stock repurchase program may be commenced, suspended or discontinued at any time at the company’s discretion and does not have an expiration date.
For the six months ended April 30, 2025, we repurchased 1,490,118 shares of common stock for $225 million. Additionally, we accrued $1 million related to excise tax levied on share repurchases, net of issuances. For the six months ended April 30, 2024, we repurchased 926,861 shares of common stock for $139 million.
Accumulated Other Comprehensive Loss
Changes in accumulated other comprehensive loss by component and related tax effects for the three and six months ended April 30, 2025 and 2024 were as follows:
| Foreign currency translation | Net defined benefit pension cost and post-retirement plan costs | Gains (losses) on derivatives | Total | |||||||||||||||||||||||||||||
| (in millions) | ||||||||||||||||||||||||||||||||
| As of January 31, 2025 | $ | (209) | $ | (317) | $ | 83 | $ | (443) | ||||||||||||||||||||||||
| Other comprehensive income (loss) before reclassifications | 152 | — | (2) | 150 | ||||||||||||||||||||||||||||
| Amounts reclassified out of accumulated other comprehensive gain (loss) | — | 2 | (4) | (2) | ||||||||||||||||||||||||||||
| Tax benefit (expense) | — | — | 2 | 2 | ||||||||||||||||||||||||||||
| Other comprehensive income (loss) | 152 | 2 | (4) | 150 | ||||||||||||||||||||||||||||
| As of April 30, 2025 | $ | (57) | $ | (315) | $ | 79 | $ | (293) | ||||||||||||||||||||||||
| As of October 31, 2024 | $ | (136) | $ | (317) | $ | 89 | $ | (364) | ||||||||||||||||||||||||
| Other comprehensive income (loss) before reclassifications | 79 | — | (3) | 76 | ||||||||||||||||||||||||||||
| Amounts reclassified out of accumulated other comprehensive gain (loss) | — | 2 | (9) | (7) | ||||||||||||||||||||||||||||
| Tax benefit (expense) | — | — | 2 | 2 | ||||||||||||||||||||||||||||
| Other comprehensive income (loss) | 79 | 2 | (10) | 71 | ||||||||||||||||||||||||||||
| As of April 30, 2025 | $ | (57) | $ | (315) | $ | 79 | $ | (293) | ||||||||||||||||||||||||
| As of January 31, 2024 | $ | (140) | $ | (387) | $ | 85 | $ | (442) | ||||||||||||||||||||||||
| Other comprehensive income (loss) before reclassifications | (32) | — | 4 | (28) | ||||||||||||||||||||||||||||
| Amounts reclassified out of accumulated other comprehensive gain (loss) | — | 5 | (3) | 2 | ||||||||||||||||||||||||||||
| Tax benefit (expense) | — | (1) | — | (1) | ||||||||||||||||||||||||||||
| Other comprehensive income (loss) | (32) | 4 | 1 | (27) | ||||||||||||||||||||||||||||
| As of April 30, 2024 | $ | (172) | $ | (383) | $ | 86 | $ | (469) | ||||||||||||||||||||||||
| As of October 31, 2023 | $ | (167) | $ | (388) | $ | 89 | $ | (466) | ||||||||||||||||||||||||
| Other comprehensive income (loss) before reclassifications | (5) | — | 1 | (4) | ||||||||||||||||||||||||||||
| Amounts reclassified out of accumulated other comprehensive gain (loss) | — | 7 | (5) | 2 | ||||||||||||||||||||||||||||
| Tax benefit (expense) | — | (2) | 1 | (1) | ||||||||||||||||||||||||||||
| Other comprehensive income (loss) | (5) | 5 | (3) | (3) | ||||||||||||||||||||||||||||
| As of April 30, 2024 | $ | (172) | $ | (383) | $ | 86 | $ | (469) |
Reclassifications out of accumulated other comprehensive loss into earnings for the three and six months ended April 30, 2025 and 2024 were as follows:
| Details about accumulated other comprehensive loss components | Amounts reclassified from accumulated other comprehensive loss | Affected line item in statement of operations | ||||||||||||||||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||
| April 30, | April 30, | |||||||||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||||||||||||
| (in millions) | ||||||||||||||||||||||||||||||||
| Gain (loss) on derivatives | $ | 2 | $ | 3 | $ | 4 | $ | 6 | Cost of products | |||||||||||||||||||||||
| — | — | — | (1) | Selling, general and administrative | ||||||||||||||||||||||||||||
| 2 | — | 5 | — | Interest expense | ||||||||||||||||||||||||||||
| (1) | (1) | (1) | (1) | Benefit (provision) for income tax | ||||||||||||||||||||||||||||
| 3 | 2 | 8 | 4 | Net of income tax | ||||||||||||||||||||||||||||
| Net defined benefit pension cost and post-retirement plan costs: | ||||||||||||||||||||||||||||||||
| Net actuarial loss | (2) | (5) | (2) | (7) | Other income (expense), net | |||||||||||||||||||||||||||
| — | 1 | — | 2 | Benefit (provision) for income tax | ||||||||||||||||||||||||||||
| (2) | (4) | (2) | (5) | Net of income tax | ||||||||||||||||||||||||||||
| Total reclassifications for the period | $ | 1 | $ | (2) | $ | 6 | $ | (1) | Net of income tax |
15. SEGMENT INFORMATION
We report our results in two reportable segments: CSG and EISG. The results of our reportable segments are based on our management reporting system and are not necessarily in conformity with GAAP. The performance of each segment is measured based on several metrics, including 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 share-based compensation expense, amortization of acquisition-related balances, acquisition and integration costs, restructuring costs, interest income, interest expense and other items as noted in the reconciliations below.
| Three Months Ended | |||||||||||||||||||||||||||||||||||
| April 30, | |||||||||||||||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||||||||||||||
| CSG | EISG | Total | CSG | EISG | Total | ||||||||||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||||||||||
| Revenue | $ | 913 | $ | 393 | $ | 1,306 | $ | 840 | $ | 376 | $ | 1,216 | |||||||||||||||||||||||
| Segment income from operations | $ | 236 | $ | 92 | $ | 328 | $ | 223 | $ | 71 | $ | 294 | |||||||||||||||||||||||
| Six Months Ended | |||||||||||||||||||||||||||||||||||
| April 30, | |||||||||||||||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||||||||||||||
| CSG | EISG | Total | CSG | EISG | Total | ||||||||||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||||||||||
| Revenue | $ | 1,796 | $ | 808 | $ | 2,604 | $ | 1,679 | $ | 796 | $ | 2,475 | |||||||||||||||||||||||
| Segment income from operations | $ | 476 | $ | 206 | $ | 682 | $ | 449 | $ | 200 | $ | 649 |
The following table reconciles total reportable operating segments’ income from operations to our income before taxes, as reported:
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||
| April 30, | April 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
| Total reportable segments' income from operations | $ | 328 | $ | 294 | $ | 682 | $ | 649 | |||||||||||||||
| Share-based compensation | (37) | (36) | (99) | (86) | |||||||||||||||||||
| Amortization of acquisition-related balances | (34) | (37) | (67) | (75) | |||||||||||||||||||
| Acquisition and integration costs | (39) | (19) | (67) | (36) | |||||||||||||||||||
| Restructuring and other | (11) | (25) | (24) | (54) | |||||||||||||||||||
| Income from operations, as reported | 207 | 177 | 425 | 398 | |||||||||||||||||||
| Interest income | 21 | 18 | 40 | 41 | |||||||||||||||||||
| Interest expense | (20) | (20) | (40) | (40) | |||||||||||||||||||
| Other income (expense), net | 112 | — | 94 | 5 | |||||||||||||||||||
| Income before taxes, as reported | $ | 320 | $ | 175 | $ | 519 | $ | 404 |
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