Agilent Annual Report 2013

← All annual reports

FY2013 Annual Report · Agilent

Loading PDF…

2012
Building
ANNUAL REPORT
Two Great
Companies
From One

2013 ANNUAL REPORT

AGILENT TECHNOLOGIES, INC.
ANNUAL REPORT TO STOCKHOLDERS
ANNUAL REPORT CONSOLIDATED FINANCIAL STATEMENTS

263004_Compushare_CVR_Tabs.indd 2

1/22/14 2:03 PM

AGILENT TECHNOLOGIES, INC.
2013 ANNUAL REPORT

ANNUAL REPORT TO STOCKHOLDERS
ANNUAL REPORT CONSOLIDATED FINANCIAL STATEMENTS

This page is intentionally left blank.

Keysight Technologies

To our Shareholders,

On Sept. 19, 2013, we announced the separation of the company in order to create two

companies with greater strategy and management focus, each well positioned for growth in its

respective markets. Capitalizing on the strength of our electronic measurement business, we have

grown a life sciences, diagnostics and applied chemical business that is large enough to be an

independent company. With the separation, we will create two unique and compelling

investment profiles, each with a greater strategic focus on its distinct industries. Both companies

will be positioned to attract a more focused shareholder base.

The separation of the company is expected to be completed in early November 2014. Agilent

Technologies will focus 100 percent on the life science, diagnostic and applied chemical

markets. Keysight Technologies, the new electronic measurement company, will focus 100

percent on the communications, computer, semiconductors, aerospace and defense and industrial

markets. Agilent shareholders will receive a pro-rata distribution of shares in Keysight

Technologies via a tax free spinoff. Both companies will be well capitalized, have strong balance

sheets and expect investment-grade profiles. Agilent will continue to pay an annual dividend of

approximately $130 million per year, implying a yield at least equal to the current yield.

Keysight will not pay an initial dividend. During the separation process, Agilent expects to

continue both its dividend and a share repurchase intended to maintain the current share count. It

is expected that Agilent will remain a member of the S&P 500’s healthcare sector.

We are very pleased that Ron Nersesian will be the president and CEO of Keysight

Technologies. Ron has deep experience in the electronic measurement market, with a proven

track record of leading the business. He has the vision, enthusiasm and industry knowledge to

propel the new company to greater growth and success. Keysight Technologies will be launched

with the tagline of “unlocking measurement insights for 75 years,” a recognition of its long

heritage of technology leadership and innovation.

Agilent Technologies

Agilent Technologies will continue as a life sciences, diagnostics and applied chemical markets

company under my leadership as president and CEO. Our new mission is to be the premier

partner for our laboratory customers, as we work together to build a healthier world. Agilent will

compete in a $40 billion market from the strength of our position in food, environmental,

chemical and energy markets, with enormous opportunities in the pharmaceutical, biotech, life

science, academic, diagnostics and clinical markets. We believe we have a strong No. 2 position

in our markets that will enable healthy growth in the future.

While Agilent has made several strategic acquisitions over the past several years to complement

our organic growth rate, we are a company focused on delivering above-market organic growth.

We are able to do so as a result of our R&D investment, our ability to address the needs of

developing markets, and our commitment to deliver complete workflow solutions to our

To our Shareholders,

On Sept. 19, 2013, we announced the separation of the company in order to create two
companies with greater strategy and management focus, each well positioned for growth in its
respective markets. Capitalizing on the strength of our electronic measurement business, we have
grown a life sciences, diagnostics and applied chemical business that is large enough to be an
independent company. With the separation, we will create two unique and compelling
investment profiles, each with a greater strategic focus on its distinct industries. Both companies
will be positioned to attract a more focused shareholder base.

The separation of the company is expected to be completed in early November 2014. Agilent
Technologies will focus 100 percent on the life science, diagnostic and applied chemical
markets. Keysight Technologies, the new electronic measurement company, will focus 100
percent on the communications, computer, semiconductors, aerospace and defense and industrial
markets. Agilent shareholders will receive a pro-rata distribution of shares in Keysight
Technologies via a tax free spinoff. Both companies will be well capitalized, have strong balance
sheets and expect investment-grade profiles. Agilent will continue to pay an annual dividend of
approximately $130 million per year, implying a yield at least equal to the current yield.
Keysight will not pay an initial dividend. During the separation process, Agilent expects to
continue both its dividend and a share repurchase intended to maintain the current share count. It
is expected that Agilent will remain a member of the S&P 500’s healthcare sector.

Keysight Technologies

We are very pleased that Ron Nersesian will be the president and CEO of Keysight
Technologies. Ron has deep experience in the electronic measurement market, with a proven
track record of leading the business. He has the vision, enthusiasm and industry knowledge to
propel the new company to greater growth and success. Keysight Technologies will be launched
with the tagline of “unlocking measurement insights for 75 years,” a recognition of its long
heritage of technology leadership and innovation.

Agilent Technologies

Agilent Technologies will continue as a life sciences, diagnostics and applied chemical markets
company under my leadership as president and CEO. Our new mission is to be the premier
partner for our laboratory customers, as we work together to build a healthier world. Agilent will
compete in a $40 billion market from the strength of our position in food, environmental,
chemical and energy markets, with enormous opportunities in the pharmaceutical, biotech, life
science, academic, diagnostics and clinical markets. We believe we have a strong No. 2 position
in our markets that will enable healthy growth in the future.

While Agilent has made several strategic acquisitions over the past several years to complement
our organic growth rate, we are a company focused on delivering above-market organic growth.
We are able to do so as a result of our R&D investment, our ability to address the needs of
developing markets, and our commitment to deliver complete workflow solutions to our

ANNUAL REPORTAnnual Report

customer
consuma
capabiliti
in the lab

rs. With a str
ables and rea
ies, and expa
bs and correl

rong instrum
agent produc
and our core
late data from

ment profile f
t offerings, p
e data system
m research to

for the labor
provide total
m platforms t
o the clinic.

ratory, we w
l laboratory
to easily ena

ill continue
service and
able applicat

to expand ou
support
tion developm

ment

Our focu
faster tha

us on organic
an revenue, r

c growth, con
resulting in t

nsistent with
the creation

h Agilent’s o
of additiona

operating mo
al shareholde

odel, will dri
er value.

ive earnings

Bill Sulli
President

ivan
t and Chief E

Executive O

fficer

February

y 5, 2014

Agilent at a Glance

electronics industries.

pathology laboratories.

Agilent is the world's premier measurement company providing core bio-analytical and electronic

measurement solutions to the life sciences, diagnostics and genomics, chemical analysis, communications and

In June 2012, we acquired Dako A/S, a limited liability company incorporated under the laws of

Denmark. Dako provides antibodies, reagents, scientific instruments and software primarily to customers in

On September 19, 2013, Agilent announced plans to separate into two publicly traded companies, one

comprising of the life sciences, diagnostics and chemical analysis businesses that will retain the Agilent name

and the other that will be comprised of the electronic measurement business ("EM"). The separation is expected

to occur through a tax-free pro rata spin off of the EM company to Agilent shareholders and is expected to be

completed early in November 2014.

In addition to the announcement to separate into two companies, we formed a new operating segment in

the fourth fiscal quarter of 2013. The new life sciences and diagnostics segment was formed by the combination

of the life sciences business plus the diagnostics and genomics business. Following this reorganization, Agilent

has three business segments comprised of the life sciences and diagnostics business, the chemical analysis

business and the electronic measurement business.

Our life sciences and diagnostics business focuses on the pharmaceutical, academic and government, bio-

agriculture, food safety, clinical markets, biotechnology and contract research organization industries. Our

chemical analysis business focuses on the petrochemical, environmental, forensics and food safety industries.

Our electronic measurement business addresses the communications, electronics and other industries.

In addition to our three businesses, we conduct centralized manufacturing and order fulfillment through

Agilent Order Fulfillment ("AOF") as well as research through Agilent Technologies Laboratories (“Agilent

Labs”). Each of our three businesses, AOF and Agilent Labs, is supported by our global infrastructure

organization, which provides shared services in the areas of finance, information technology, legal, workplace

services and human resources.

We sell our products primarily through direct sales, but we also utilize distributors, resellers,

manufacturer's representatives, telesales and electronic commerce. Of our total net revenue of $6.8 billion for the

fiscal year ended October 31, 2013, we generated 30 percent in the U.S. and 70 percent outside the U.S. As of

October 31, 2013, we employed approximately 20,600 people worldwide. Our primary research and

development and manufacturing sites are in California, Colorado and Delaware in the U.S. and in Australia,

China, Denmark, Germany, India, Italy, Japan, Malaysia, Poland, Singapore and the United Kingdom.

Business Group

2013 Net Revenue

Life Sciences

$2.3 billion

and Diagnostics

Description

Summary: Our life sciences and diagnostics business provides

application-focused solutions that include reagents, instruments, software,

consumables, and services 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 level. We employed

approximately 6,100 people as of October 31, 2013 in our life sciences

and diagnostics business.

Markets: The markets for our life sciences and diagnostics group include

the pharmaceutical, biotechnology, contract research and contract

manufacturing organization market, the academic and government market

and the clinical market. The former market consists of “for-profit”

companies who participate across the pharmaceutical value chain in the

areas of therapeutic research, discovery & development, clinical trials,

customer

rs. With a str

rong instrum

ment profile f

for the labor

ratory, we w

ill continue

to expand ou

consuma

ables and rea

agent produc

t offerings, p

provide total

l laboratory

service and

support

capabiliti

ies, and expa

and our core

e data system

m platforms t

to easily ena

able applicat

tion developm

ment

in the lab

bs and correl

late data from

m research to

o the clinic.

Our focu

us on organic

c growth, con

nsistent with

h Agilent’s o

operating mo

odel, will dri

ive earnings

faster tha

an revenue, r

resulting in t

the creation

of additiona

al shareholde

er value.

Bill Sulli

ivan

President

t and Chief E

Executive O

fficer

February

y 5, 2014

Agilent at a Glance

Agilent is the world's premier measurement company providing core bio-analytical and electronic
measurement solutions to the life sciences, diagnostics and genomics, chemical analysis, communications and
electronics industries.

In June 2012, we acquired Dako A/S, a limited liability company incorporated under the laws of
Denmark. Dako provides antibodies, reagents, scientific instruments and software primarily to customers in
pathology laboratories.

On September 19, 2013, Agilent announced plans to separate into two publicly traded companies, one
comprising of the life sciences, diagnostics and chemical analysis businesses that will retain the Agilent name
and the other that will be comprised of the electronic measurement business ("EM"). The separation is expected
to occur through a tax-free pro rata spin off of the EM company to Agilent shareholders and is expected to be
completed early in November 2014.

In addition to the announcement to separate into two companies, we formed a new operating segment in
the fourth fiscal quarter of 2013. The new life sciences and diagnostics segment was formed by the combination
of the life sciences business plus the diagnostics and genomics business. Following this reorganization, Agilent
has three business segments comprised of the life sciences and diagnostics business, the chemical analysis
business and the electronic measurement business.

Our life sciences and diagnostics business focuses on the pharmaceutical, academic and government, bio-
agriculture, food safety, clinical markets, biotechnology and contract research organization industries. Our
chemical analysis business focuses on the petrochemical, environmental, forensics and food safety industries.
Our electronic measurement business addresses the communications, electronics and other industries.

In addition to our three businesses, we conduct centralized manufacturing and order fulfillment through
Agilent Order Fulfillment ("AOF") as well as research through Agilent Technologies Laboratories (“Agilent
Labs”). Each of our three businesses, AOF and Agilent Labs, is supported by our global infrastructure
organization, which provides shared services in the areas of finance, information technology, legal, workplace
services and human resources.

We sell our products primarily through direct sales, but we also utilize distributors, resellers,
manufacturer's representatives, telesales and electronic commerce. Of our total net revenue of $6.8 billion for the
fiscal year ended October 31, 2013, we generated 30 percent in the U.S. and 70 percent outside the U.S. As of
October 31, 2013, we employed approximately 20,600 people worldwide. Our primary research and
development and manufacturing sites are in California, Colorado and Delaware in the U.S. and in Australia,
China, Denmark, Germany, India, Italy, Japan, Malaysia, Poland, Singapore and the United Kingdom.

Business Group
Life Sciences
and Diagnostics

2013 Net Revenue
$2.3 billion

Description
Summary: Our life sciences and diagnostics business provides
application-focused solutions that include reagents, instruments, software,
consumables, and services 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 level. We employed
approximately 6,100 people as of October 31, 2013 in our life sciences
and diagnostics business.

Markets: The markets for our life sciences and diagnostics group include
the pharmaceutical, biotechnology, contract research and contract
manufacturing organization market, the academic and government market
and the clinical market. The former market consists of “for-profit”
companies who participate across the pharmaceutical value chain in the
areas of therapeutic research, discovery & development, clinical trials,

ANNUAL REPORTAnnual Report

Chemical
Analysis

$1.6 billion

manufacturing and quality assurance and quality control. The academic
and government market consists primarily of “not-for-profit”
organizations and includes academic institutions, large government
institutes and privately funded organizations, and plays an influential role
in technology adoption and therapeutic developments for Pharma and
molecular diagnostics companies. The clinical market consists primarily
of pathology labs throughout the world located in hospitals, medical
centers, and reference labs. The clinical market for genomics consists of
high complexity clinical labs performing patient testing, including “for-
profit” reference laboratories, hospital labs, and molecular diagnostic
companies.

Product areas: The key product categories for the life sciences and
diagnostics business include: liquid chromatography, mass spectrometry,
software and informatics, lab automation and robotics, automated
electrophoresis and microfluidics, NMR, MRI and XRD systems, life
sciences consumables and services, pathology products, specific proteins
and flow reagents, target enrichment, cytogenetic research solutions and
microarrays, and PCR and qPCR Instrumentation and molecular biology
reagents.
Summary: Our chemical analysis business provides application-focused
solutions that include instruments, software, consumables and services that
enable customers to identify, quantify and analyze the physical and
biological properties of substances and products. We employed
approximately 3,800 people as of October 31, 2013 in our chemical
analysis business.

Markets: The markets for our chemical analysis group include chemical
and energy testing, environmental and forensics, and food safety markets.
The natural gas and petroleum refining markets use our products to
measure and control the quality of their finished products and to verify the
environmental safety of their operations. Our instruments, software and
workflow solutions are used by the environmental market for applications
such as laboratory and field analysis of chemical pollutants in air, water,
soil and solid waste. Drug testing and forensics laboratories use our
instruments, software and workflow solutions for applications such as
analyzing evidence associated with crime, screening athletes for
performance enhancing drugs, analyzing samples for recreational drugs, or
detecting and identifying biological and chemical warfare agents. Our
instruments, software, and workflow solutions are used throughout the
food production chain, including incoming inspection, new product
development, quality control and assurance, and packaging.
Product areas: The key product categories for the chemical analysis
business include: gas chromatography systems, columns and components;
gas chromatography mass spectrometry systems; inductively coupled
plasma mass spectrometry instruments; atomic absorption instruments;
microwave plasma-atomic emission spectrometry instruments; inductively
coupled plasma optical emission spectrometry instruments; software and
data systems; vacuum pumps and measurement technologies; services
support and consumable for our products.

Business Group

Electronic

2013 Net Revenue

$2.9 billion

Measurement

Description

Summary: Our electronic measurement business provides electronic

measurement instruments and systems, software design tools and related

services that are used in the design, development, manufacture,

installation, deployment and operation of electronics equipment, and

microscopy products. Related services include start-up assistance,

instrument productivity and application services and instrument calibration

and repair. We also offer customization, consulting and optimization

services throughout the customer’s product lifecycle. Our electronic

measurement business employed approximately 8,300 people as of

October 31, 2013.

Markets: The markets for our electronic measurement business include

communications test and general purpose test. We market our electronic

measurement products and services to network equipment manufacturers,

wireless device manufacturers, and communications service providers,

including component manufacturers within the supply chain for these

customers. We market our general purpose test products and services to

the electronics industry and other industries with significant electronic

content such as the aerospace and defense, computer and semiconductor

industries.

Product areas: We divide our electronic measurement products into

communications test products and general purpose test products. We sell

products and services applicable to a wide range of communications

networks and systems including wireless communications and microwave

networks, voice, broadband, data, and fiber optic networks.

Test products include electronic design automation software, vector and

signal analyzers, signal generators, vector and signal analyzers, signal

generators, vector network analyzers, one box testers, oscilloscopes, logic

and protocol analyzers, and bit-error ratio testers. Also, we sell the following

types of products into the general purpose test market: general purpose

instruments, modular instruments and test software, digital test products,

semiconductor and board test solutions, electronics manufacturing test

equipment, atomic force microscopes and network surveillance solutions.

Chemical

Analysis

$1.6 billion

Summary: Our chemical analysis business provides application-focused

solutions that include instruments, software, consumables and services that

manufacturing and quality assurance and quality control. The academic

and government market consists primarily of “not-for-profit”

organizations and includes academic institutions, large government

institutes and privately funded organizations, and plays an influential role

in technology adoption and therapeutic developments for Pharma and

molecular diagnostics companies. The clinical market consists primarily

of pathology labs throughout the world located in hospitals, medical

centers, and reference labs. The clinical market for genomics consists of

high complexity clinical labs performing patient testing, including “for-

profit” reference laboratories, hospital labs, and molecular diagnostic

companies.

Product areas: The key product categories for the life sciences and

diagnostics business include: liquid chromatography, mass spectrometry,

software and informatics, lab automation and robotics, automated

electrophoresis and microfluidics, NMR, MRI and XRD systems, life

sciences consumables and services, pathology products, specific proteins

and flow reagents, target enrichment, cytogenetic research solutions and

microarrays, and PCR and qPCR Instrumentation and molecular biology

reagents.

enable customers to identify, quantify and analyze the physical and

biological properties of substances and products. We employed

approximately 3,800 people as of October 31, 2013 in our chemical

analysis business.

Markets: The markets for our chemical analysis group include chemical

and energy testing, environmental and forensics, and food safety markets.

The natural gas and petroleum refining markets use our products to

measure and control the quality of their finished products and to verify the

environmental safety of their operations. Our instruments, software and

workflow solutions are used by the environmental market for applications

such as laboratory and field analysis of chemical pollutants in air, water,

soil and solid waste. Drug testing and forensics laboratories use our

instruments, software and workflow solutions for applications such as

analyzing evidence associated with crime, screening athletes for

performance enhancing drugs, analyzing samples for recreational drugs, or

detecting and identifying biological and chemical warfare agents. Our

instruments, software, and workflow solutions are used throughout the

food production chain, including incoming inspection, new product

development, quality control and assurance, and packaging.

Product areas: The key product categories for the chemical analysis

business include: gas chromatography systems, columns and components;

gas chromatography mass spectrometry systems; inductively coupled

plasma mass spectrometry instruments; atomic absorption instruments;

microwave plasma-atomic emission spectrometry instruments; inductively

coupled plasma optical emission spectrometry instruments; software and

data systems; vacuum pumps and measurement technologies; services

support and consumable for our products.

Business Group
Electronic
Measurement

2013 Net Revenue
$2.9 billion

Description
Summary: Our electronic measurement business provides electronic
measurement instruments and systems, software design tools and related
services that are used in the design, development, manufacture,
installation, deployment and operation of electronics equipment, and
microscopy products. Related services include start-up assistance,
instrument productivity and application services and instrument calibration
and repair. We also offer customization, consulting and optimization
services throughout the customer’s product lifecycle. Our electronic
measurement business employed approximately 8,300 people as of
October 31, 2013.

Markets: The markets for our electronic measurement business include
communications test and general purpose test. We market our electronic
measurement products and services to network equipment manufacturers,
wireless device manufacturers, and communications service providers,
including component manufacturers within the supply chain for these
customers. We market our general purpose test products and services to
the electronics industry and other industries with significant electronic
content such as the aerospace and defense, computer and semiconductor
industries.
Product areas: We divide our electronic measurement products into
communications test products and general purpose test products. We sell
products and services applicable to a wide range of communications
networks and systems including wireless communications and microwave
networks, voice, broadband, data, and fiber optic networks.
Test products include electronic design automation software, vector and
signal analyzers, signal generators, vector and signal analyzers, signal
generators, vector network analyzers, one box testers, oscilloscopes, logic
and protocol analyzers, and bit-error ratio testers. Also, we sell the following
types of products into the general purpose test market: general purpose
instruments, modular instruments and test software, digital test products,
semiconductor and board test solutions, electronics manufacturing test
equipment, atomic force microscopes and network surveillance solutions.

ANNUAL REPORTAnnual Report

Agilent
Technologies
Research
Laboratories

Agilent Technologies Research Laboratories is our research organization based in Santa
Clara, California, with offices in Europe and Asia. The Research Labs creates competitive
advantage through high-impact technology, driving market leadership and growth in
Agilent’s core businesses and expanding Agilent’s measurement footprint into adjacent
markets. At the cross-roads of the organization, the Research Labs are able to identify and
enable synergies across Agilent’s businesses to create competitive differentiation and
compelling customer value. As of the end of October 2013, Research Labs employed
approximately 210 personnel worldwide.

Global
Infrastructure
Organization

We provide support to our businesses through our global infrastructure organization. This
support includes services in the areas of finance, legal, workplace services, human resources
and information technology. Generally these organizations are centrally operated from Santa
Clara, California, with services provided worldwide. As of the end of October 2013, our
global infrastructure organization employed approximately 2,200 people worldwide.

Agilent Order
Fulfillment
Organization

The Agilent Order Fulfillment (“AOF”) organization leverages our strength in
manufacturing, engineering, strategic sourcing and logistics for our life sciences and
diagnostics, chemical analysis and electronic measurement businesses. In general, AOF
employees are dedicated to specific businesses and business headcount numbers include
AOF employees. In the fourth quarter of 2013 we announced that the AOF organization
had been divided into two separate operations; one dedicated to the life sciences, diagnostics
and chemical analysis businesses and one dedicated to the electronic measurement business.

Board

Committees

Audit & Finance

Committee

Heidi Fields,

Chairperson

Paul N. Clark

Robert J. Herbold

Compensation Committee

Koh Boon Hwee,

Chairperson

David M. Lawrence, M.D.

A. Barry Rand

Tadataka Yamada, M.D.

Nominating/Corporate

Governance Committee

James G. Cullen

Chairperson

Paul N. Clark

Heidi Fields

Robert J. Herbold

Koh Boon Hwee

David M. Lawrence, M.D.

A. Barry Rand

Tadataka Yamada, M.D.

Executive Committee

James G. Cullen,

Chairperson

William P. Sullivan

Officers

Robert Cantrell

Directors

James G. Cullen

Vice President, Treasurer

Chairman of the Board of

Neil P. Doughterty

Vice President, Agilent

Chief Financial Officer,

Keysight Technologies, Inc.

Lonnie G. Justice

Vice President and

General Manager,

Sales, Service and Support

Chemical Analysis Group

John Pouk

Vice President Worldwide

Sales, Life Sciences and

Diagnostics Group

Michael Tang

Vice President, Assistant

General Counsel and

Assistant Secretary

Stephen D. Williams

Vice President, Assistant

General Counsel and

Assistant Secretary, Agilent

General Counsel, Keysight

Technologies, Inc.

Directors of Agilent,

Retired President and

Chief Operating Officer of

Bell Atlantic Corporation

(now known as Verizon)

Paul N. Clark

Retired Chief Executive

Officer and President of

ICOS Corporation

Heidi Fields

Retired Executive Vice

President and Chief Financial

Officer of Blue Shield

of California

Robert J. Herbold

Retired Executive Vice

President of Microsoft

Corporation

Koh Boon Hwee

Managing Partner of

Credence Capital Fund II

(Cayman) Ltd.

David M. Lawrence, M.D.

Retired Chairman

Emeritus of Kaiser

Foundation Health

Plan, Inc. and Kaiser

Foundation Hospitals

A. Barry Rand

Chief Executive Officer

of AARP

William P. Sullivan,

Chief Executive Officer of

Agilent Technologies, Inc.

Tadataka Yamada, M.D.

Chief Medical and

Scientific Officer of

Takeda Pharmaceuticals

International, Inc.

Senior

Executives

William P. Sullivan*

Chief Executive Officer

and President

Ronald S. Nersesian*

Executive Vice President, Agilent

Chief Executive Officer

and President, Keysight

Technologies, Inc.

Henrik Ancher-Jensen*

Senior Vice President, Agilent

President, Agilent Order

Fulfillment

Richard A. Burdsall

Senior Vice President,

Chief Infrastructure Officer

Gooi Soon Chai

Senior Vice President, Agilent

President, Electronic

Measurement Order

Fulfillment and Infrastructure

Solange Glaize*

Vice President, Chief

Accounting Officer

Jean M. Halloran*

Senior Vice President,

Human Resources

Didier Hirsch*

Senior Vice President and

Chief Financial Officer

Marie Oh Huber*

Senior Vice President,

General Counsel and

Secretary

Michael R. McMullen*

Senior Vice President, Agilent

President, Chemical Analysis

Shiela B. Robertson

Senior Vice President,

Corporate Development

and Strategy

Guy Séné*

Senior Vice President, Agilent

President, Electronic Measurement

Darlene J.S. Solomon, Ph.D.

Senior Vice President,

and Chief Technology Officer,

Life Sciences and Diagnostics

Fred Strohmeier*

Senior Vice President, Agilent

and President, Life Sciences and

Diagnostics

* These individuals are executive officers of Agilent under Section 16 of the Securities Exchange Act of 1934.

Agilent

Technologies

Research

Laboratories

Agilent Technologies Research Laboratories is our research organization based in Santa

Clara, California, with offices in Europe and Asia. The Research Labs creates competitive

advantage through high-impact technology, driving market leadership and growth in

Agilent’s core businesses and expanding Agilent’s measurement footprint into adjacent

markets. At the cross-roads of the organization, the Research Labs are able to identify and

enable synergies across Agilent’s businesses to create competitive differentiation and

compelling customer value. As of the end of October 2013, Research Labs employed

approximately 210 personnel worldwide.

Global

Infrastructure

Organization

We provide support to our businesses through our global infrastructure organization. This

support includes services in the areas of finance, legal, workplace services, human resources

and information technology. Generally these organizations are centrally operated from Santa

Clara, California, with services provided worldwide. As of the end of October 2013, our

global infrastructure organization employed approximately 2,200 people worldwide.

Agilent Order

Fulfillment

Organization

The Agilent Order Fulfillment (“AOF”) organization leverages our strength in

manufacturing, engineering, strategic sourcing and logistics for our life sciences and

diagnostics, chemical analysis and electronic measurement businesses. In general, AOF

employees are dedicated to specific businesses and business headcount numbers include

AOF employees. In the fourth quarter of 2013 we announced that the AOF organization

had been divided into two separate operations; one dedicated to the life sciences, diagnostics

and chemical analysis businesses and one dedicated to the electronic measurement business.

Board
Committees

Audit & Finance
Committee
Heidi Fields,
Chairperson
Paul N. Clark
Robert J. Herbold

Compensation Committee
Koh Boon Hwee,
Chairperson
David M. Lawrence, M.D.
A. Barry Rand
Tadataka Yamada, M.D.

Nominating/Corporate
Governance Committee
James G. Cullen
Chairperson
Paul N. Clark
Heidi Fields
Robert J. Herbold
Koh Boon Hwee
David M. Lawrence, M.D.
A. Barry Rand
Tadataka Yamada, M.D.

Executive Committee
James G. Cullen,
Chairperson
William P. Sullivan

Officers

Directors

Robert Cantrell
Vice President, Treasurer

Neil P. Doughterty
Vice President, Agilent
Chief Financial Officer,
Keysight Technologies, Inc.

Lonnie G. Justice
Vice President and
General Manager,
Sales, Service and Support
Chemical Analysis Group

John Pouk
Vice President Worldwide
Sales, Life Sciences and
Diagnostics Group

Michael Tang
Vice President, Assistant
General Counsel and
Assistant Secretary

Stephen D. Williams
Vice President, Assistant
General Counsel and
Assistant Secretary, Agilent
General Counsel, Keysight
Technologies, Inc.

James G. Cullen
Chairman of the Board of
Directors of Agilent,
Retired President and
Chief Operating Officer of
Bell Atlantic Corporation
(now known as Verizon)

Paul N. Clark
Retired Chief Executive
Officer and President of
ICOS Corporation

Heidi Fields
Retired Executive Vice
President and Chief Financial
Officer of Blue Shield
of California

Robert J. Herbold
Retired Executive Vice
President of Microsoft
Corporation

Koh Boon Hwee
Managing Partner of
Credence Capital Fund II
(Cayman) Ltd.

David M. Lawrence, M.D.
Retired Chairman
Emeritus of Kaiser
Foundation Health
Plan, Inc. and Kaiser
Foundation Hospitals

A. Barry Rand
Chief Executive Officer
of AARP

William P. Sullivan,
Chief Executive Officer of
Agilent Technologies, Inc.

Tadataka Yamada, M.D.
Chief Medical and
Scientific Officer of
Takeda Pharmaceuticals
International, Inc.

Senior
Executives

William P. Sullivan*
Chief Executive Officer
and President

Ronald S. Nersesian*
Executive Vice President, Agilent
Chief Executive Officer
and President, Keysight
Technologies, Inc.

Henrik Ancher-Jensen*
Senior Vice President, Agilent
President, Agilent Order
Fulfillment

Richard A. Burdsall
Senior Vice President,
Chief Infrastructure Officer

Gooi Soon Chai
Senior Vice President, Agilent
President, Electronic
Measurement Order
Fulfillment and Infrastructure

Solange Glaize*
Vice President, Chief
Accounting Officer

Jean M. Halloran*
Senior Vice President,
Human Resources

Didier Hirsch*
Senior Vice President and
Chief Financial Officer

Marie Oh Huber*
Senior Vice President,
General Counsel and
Secretary

Michael R. McMullen*
Senior Vice President, Agilent
President, Chemical Analysis

Shiela B. Robertson
Senior Vice President,
Corporate Development
and Strategy

Guy Séné*
Senior Vice President, Agilent
President, Electronic Measurement

Darlene J.S. Solomon, Ph.D.
Senior Vice President,
and Chief Technology Officer,
Life Sciences and Diagnostics

Fred Strohmeier*
Senior Vice President, Agilent
and President, Life Sciences and
Diagnostics

* These individuals are executive officers of Agilent under Section 16 of the Securities Exchange Act of 1934.

ANNUAL REPORTAnnual Report

Agilent’s annual meeting of stockholders will take place on Wednesday, March 19, 2014 at 8:00 a.m. at
Agilent’s headquarters located at 5301 Stevens Creek Boulevard, Building No. 5, Santa Clara, California.
Investor Information

Please see the full and audited financial statements and footnotes contained in this booklet. To receive paper
copies of the annual report, proxy statement, Form 10-K, earnings announcements and other financial
information, people in the United States and Canada should call our toll-free number: (877) 942-4200. In
addition, you can access this financial information at Agilent’s Investor Relations Web site. The address is
http://www.investor.agilent.com. This information is also available by writing to the address provided under the
Investor Contact heading below.
Corporate Governance, Business Conduct and Ethics

Agilent’s Amended and Restated Corporate Governance Standards, the charters of our Audit and Finance
Committee, our Compensation Committee, our Executive Committee and our Nominating/Corporate
Governance Committee, as well as our Standards of Business Conduct (including code of ethics provisions that
apply to our principal executive officer, principal financial officer, principal accounting officer and senior
financial officers) are available on our website at www.investor.agilent.com under “Corporate Governance”.
These items are also available in print to any stockholder in the United States and Canada who requests them by
calling (877) 942-4200. This information is also available by writing to the company at the address provided
below.
Agilent Headquarters

Agilent Technologies, Inc.
5301 Stevens Creek Boulevard
Santa Clara, CA 95051
Phone: (408) 345-8886

Transfer Agent and Registrar

Please contact our transfer agent, at the phone number or address listed below, with any questions about
stock certificates, transfer of ownership or other matters pertaining to your stock account.

Computershare Investor Services
250 Royall Street
Canton, MA 02021
United States
If calling from the United States or Canada: (877) 309-9856.
If calling from outside the United States and Canada: (312) 588-4672.
The e-mail address for general shareholder inquiries for Computershare is: www.computershare.com/contactus.
Investor Contact

Agilent Technologies, Inc.
Investor Relations Department
5301 Stevens Creek Boulevard
Santa Clara, CA 95051

You can also contact the Investor Relations Department via e-mail at the Agilent Investor Relations Web site

at http://www.investor.agilent.com. Click “Information Request” under the “Investor Information” tab to send a

message.

Common Stock

Our common stock is listed on the New York Stock Exchange with the ticker symbol “A”. The following

table sets forth the high and low sale prices and the dividend declarations per quarter for the 2012 and 2013 fiscal

years as reported in the consolidated transaction reporting system for the New York Stock Exchange:

Fiscal 2012

First Quarter (ended January 31, 2012)

Second Quarter (ended April 30, 2012)

Third Quarter (ended July 31, 2012)

Fourth Quarter (ended October 31, 2012)

Fiscal 2013

First Quarter (ended January 31, 2013)

Second Quarter (ended April 30, 2013)

Third Quarter (ended July 31, 2013)

Fourth Quarter (ended October 31, 2013)

High

44.85

46.28

43.27

40.97

High

45.55

45.66

47.47

53.47

Low

32.51

39.15

35.32

35.38

Low

35.45

40.19

41.24

45.32

Dividends

$0.10

N/A

$0.10

Dividends

$0.22

N/A

$0.12

As of December 1, 2013, there were 30,054 common stockholders of record.

During fiscal 2013, we issued four quarterly dividends, one of $0.10 per share and three of $0.12 per

share. All decisions regarding the declaration and payment of dividends are at the discretion of our Board of

Directors and will be evaluated regularly in light of our financial condition, earnings, growth prospects, funding

requirements, applicable law, and any other factors that our Board deems relevant. The information required by

this item with respect to equity compensation plans is included under the caption Equity Compensation Plans in

our proxy statement for the annual meeting of stockholders to be held March 19, 2014, to be filed with the

Securities and Exchange Commission pursuant to Regulation 14A, and is incorporated herein by reference.

Agilent’s annual meeting of stockholders will take place on Wednesday, March 19, 2014 at 8:00 a.m. at

Agilent’s headquarters located at 5301 Stevens Creek Boulevard, Building No. 5, Santa Clara, California.

Investor Information

Please see the full and audited financial statements and footnotes contained in this booklet. To receive paper

copies of the annual report, proxy statement, Form 10-K, earnings announcements and other financial

information, people in the United States and Canada should call our toll-free number: (877) 942-4200. In

addition, you can access this financial information at Agilent’s Investor Relations Web site. The address is

http://www.investor.agilent.com. This information is also available by writing to the address provided under the

Investor Contact heading below.

Corporate Governance, Business Conduct and Ethics

Agilent’s Amended and Restated Corporate Governance Standards, the charters of our Audit and Finance

Committee, our Compensation Committee, our Executive Committee and our Nominating/Corporate

Governance Committee, as well as our Standards of Business Conduct (including code of ethics provisions that

apply to our principal executive officer, principal financial officer, principal accounting officer and senior

financial officers) are available on our website at www.investor.agilent.com under “Corporate Governance”.

These items are also available in print to any stockholder in the United States and Canada who requests them by

calling (877) 942-4200. This information is also available by writing to the company at the address provided

below.

Agilent Headquarters

Agilent Technologies, Inc.

5301 Stevens Creek Boulevard

Santa Clara, CA 95051

Phone: (408) 345-8886

Transfer Agent and Registrar

Computershare Investor Services

250 Royall Street

Canton, MA 02021

United States

Investor Contact

Agilent Technologies, Inc.

Investor Relations Department

5301 Stevens Creek Boulevard

Santa Clara, CA 95051

Please contact our transfer agent, at the phone number or address listed below, with any questions about

stock certificates, transfer of ownership or other matters pertaining to your stock account.

If calling from the United States or Canada: (877) 309-9856.

If calling from outside the United States and Canada: (312) 588-4672.

The e-mail address for general shareholder inquiries for Computershare is: www.computershare.com/contactus.

You can also contact the Investor Relations Department via e-mail at the Agilent Investor Relations Web site
at http://www.investor.agilent.com. Click “Information Request” under the “Investor Information” tab to send a
message.
Common Stock

Our common stock is listed on the New York Stock Exchange with the ticker symbol “A”. The following
table sets forth the high and low sale prices and the dividend declarations per quarter for the 2012 and 2013 fiscal
years as reported in the consolidated transaction reporting system for the New York Stock Exchange:

Fiscal 2012
First Quarter (ended January 31, 2012)
Second Quarter (ended April 30, 2012)
Third Quarter (ended July 31, 2012)
Fourth Quarter (ended October 31, 2012)

Fiscal 2013
First Quarter (ended January 31, 2013)
Second Quarter (ended April 30, 2013)
Third Quarter (ended July 31, 2013)
Fourth Quarter (ended October 31, 2013)

High
44.85
46.28
43.27
40.97

High
45.55
45.66
47.47
53.47

$
$
$
$

Low
32.51
39.15
35.32
35.38

Low
35.45
40.19
41.24
45.32

$
$
$
$

Dividends
$0.10
N/A
$0.10
$0.10

Dividends
$0.22
N/A
$0.12
$0.12

As of December 1, 2013, there were 30,054 common stockholders of record.

During fiscal 2013, we issued four quarterly dividends, one of $0.10 per share and three of $0.12 per
share. All decisions regarding the declaration and payment of dividends are at the discretion of our Board of
Directors and will be evaluated regularly in light of our financial condition, earnings, growth prospects, funding
requirements, applicable law, and any other factors that our Board deems relevant. The information required by
this item with respect to equity compensation plans is included under the caption Equity Compensation Plans in
our proxy statement for the annual meeting of stockholders to be held March 19, 2014, to be filed with the
Securities and Exchange Commission pursuant to Regulation 14A, and is incorporated herein by reference.

ANNUAL REPORTAnnual Report

STOCK PRICE PERFORMANCE GRAPH

The graph below shows the cumulative total stockholder return, assuming the investment of $100 (and the
reinvestment of any dividends thereafter) for the period beginning on October 31, 2008, and ending on October
31, 2013, on each of: Agilent’s common stock; the S&P 500 Index; and our Peer Group which includes all
companies in the S&P Information Technology Sector, the S&P Healthcare Sector, and the S&P Industrials
Sector. A complete list of the companies in the Peer Group is provided below. Agilent’s stock price performance
shown in the following graph is not indicative of future stock price performance. The data for this performance
graph was compiled for us by Standard and Poor’s.

Comparison of 5 Years (10/31/2008 to 10/31/2013) Cumulative Total Return
Comparison of 5 Years (10/31/2008 to 10/31/2013) Cumulative Total Return
Among Agilent Technologies, the S&P 500 Index, and the Peer Group Index
Among Agilent Technologies, the S&P 500 Index, and the Peer Group Index

$250

$200

[INSERT STOCK PRICE PERFORMANCE GRAPH HERE]

$150

$100

$50

Agilent Technologies

S&P 500

Peer Group

Peer Group
(Companies in the S&P Information Technology Sector, the S&P Healthcare Sector, and the S&P Industrials Sector)

3M Co
Abbott Laboratories
AbbVie Inc
Accenture PLC
Actavis Plc
Adobe Systems Inc
ADT Corp (The)
Aetna Inc.
Agilent Technologies Inc
Akamai Technologies Inc
Alexion Pharmaceuticals Inc
Allergan Inc.
Altera Corp
AmerisourceBergen Corp
AMETEK Inc
Amgen Inc.
Amphenol Corp
Analog Devices Inc.
Apple Inc
Applied Materials Inc.

Autodesk Inc.
Automatic Data Processing Inc.
Bard (C.R.) Inc
Baxter International Inc
Becton, Dickinson and Co
Biogen Idec Inc
Boeing Co (The)
Boston Scientific Corp
Bristol-Myers Squibb Co
Broadcom Corp
C.H. Robinson Worldwide Inc.
CA Inc
Cardinal Health Inc
CareFusion Corp
Caterpillar Inc
Celgene Corp
Cerner Corp
Cigna Corp
Cintas Corp
Cisco Systems Inc

STOCK PRICE PERFORMANCE GRAPH

The graph below shows the cumulative total stockholder return, assuming the investment of $100 (and the

reinvestment of any dividends thereafter) for the period beginning on October 31, 2008, and ending on October

31, 2013, on each of: Agilent’s common stock; the S&P 500 Index; and our Peer Group which includes all

companies in the S&P Information Technology Sector, the S&P Healthcare Sector, and the S&P Industrials

Sector. A complete list of the companies in the Peer Group is provided below. Agilent’s stock price performance

shown in the following graph is not indicative of future stock price performance. The data for this performance

graph was compiled for us by Standard and Poor’s.

Comparison of 5 Years (10/31/2008 to 10/31/2013) Cumulative Total Return

Among Agilent Technologies, the S&P 500 Index, and the Peer Group Index

[INSERT STOCK PRICE PERFORMANCE GRAPH HERE]

Autodesk Inc.

Automatic Data Processing Inc.

Bard (C.R.) Inc

Baxter International Inc

Becton, Dickinson and Co

Biogen Idec Inc

Boeing Co (The)

Boston Scientific Corp

Bristol-Myers Squibb Co

Broadcom Corp

C.H. Robinson Worldwide Inc.

CA Inc

Cardinal Health Inc

CareFusion Corp

Caterpillar Inc

Celgene Corp

Cerner Corp

Cigna Corp

Cintas Corp

Cisco Systems Inc

Peer Group
(Companies in the S&P Information Technology Sector, the S&P Healthcare Sector, and the S&P Industrials Sector)

Citrix Systems Inc.
Cognizant Technology Solutions Corp
Computer Sciences Corp
Corning Inc
Covidien Plc
CSX Corp
Cummins Inc.
Danaher Corp
DaVita HealthCare Partners Inc
Deere & Co
Delta Air Lines Inc.
DENTSPLY International Inc.
Dover Corp
Dun & Bradstreet Corp (The)
Eaton Corp Plc
eBay Inc.
Edwards Lifesciences Corp
Electronic Arts Inc.
Eli Lilly and Co
EMC Corp
Emerson Electric Co.
Equifax Inc.
Expeditors International of Washington Inc.
Express Scripts Holding Co
F5 Networks Inc
Fastenal Co
FedEx Corp.
Fidelity National Information Services Inc
First Solar Inc
Fiserv Inc.
FLIR Systems Inc
Flowserve Corp.
Fluor Corp.
Forest Laboratories Inc
General Dynamics Corp
General Electric Co
Gilead Sciences Inc
Google Inc
Grainger (W W) Inc.
Harris Corp
Hewlett-Packard Co
Honeywell International Inc.
Hospira Inc
Humana Inc.
Illinois Tool Works Inc.
Ingersoll-Rand Plc
Intel Corp
International Business Machines Corp
Intuit Inc.
Intuitive Surgical Inc
Iron Mountain Inc
Jabil Circuit Inc
Jacobs Engineering Group Inc.

JDS Uniphase Corp
Johnson & Johnson
Joy Global Inc
Juniper Networks Inc
Kansas City Southern
KLA-Tencor Corp
L-3 Communications Holdings Inc
Laboratory Corporation of America Holdings
Lam Research Corp
Life Technologies Corp
Linear Technology Corp
Lockheed Martin Corp
LSI Corp
Masco Corp
MasterCard Inc
McKesson Corp
Medtronic Inc
Merck & Co Inc.
Microchip Technology Inc
Micron Technology Inc.
Microsoft Corp
Molex Inc.
Motorola Solutions Inc
Mylan Inc
NetApp Inc
Nielsen Holdings NV
Norfolk Southern Corp
Northrop Grumman Corp
NVIDIA Corp
Oracle Corp
PACCAR Inc
Pall Corp
Parker-Hannifin Corp
Patterson Companies Inc
Paychex Inc.
Pentair Ltd
PerkinElmer Inc.
Perrigo Co
Pfizer Inc
Pitney Bowes Inc.
Precision Castparts Corp.
QUALCOMM Inc.
Quanta Services Inc.
Quest Diagnostics Inc
Raytheon Co.
Red Hat Inc
Regeneron Pharmaceuticals Inc
Republic Services Inc.
Robert Half International Inc.
Rockwell Automation Inc.
Rockwell Collins Inc.
Roper Industries Inc.
Ryder System Inc

ANNUAL REPORTAnnual Report

Peer Group
(Companies in the S&P Information Technology Sector, the S&P Healthcare Sector, and the S&P Industrials Sector)

salesforce.com inc
SanDisk Corp
Seagate Technology Plc
Snap-On Inc
Southwest Airlines Co.
St. Jude Medical Inc.
Stanley Black & Decker Inc
Stericycle Inc
Stryker Corp
Symantec Corp
TE Connectivity Ltd
Tenet Healthcare Corp
Teradata Corp
Teradyne Inc.
Texas Instruments Inc
Textron Inc.
Thermo Fisher Scientific Inc
Total System Services Inc.
Tyco International Ltd

Additional Information

Union Pacific Corp
United Parcel Service Inc
United Technologies Corp
Unitedhealth Group Inc
Varian Medical Systems Inc
Verisign Inc
Vertex Pharmaceuticals Inc
Visa Inc
Waste Management Inc.
Waters Corp
WellPoint Inc
Western Digital Corp
Western Union Co
Xerox Corp
Xilinx Inc.
Xylem Inc
Yahoo Inc
Zimmer Holdings Inc
Zoetis Inc

This annual report, including the letter titled “To our shareholders,” contains forward-looking statements
including, without limitation, statements regarding trends, seasonality, cyclicality and growth in, and drivers of,
the markets we sell into, our strategic direction, our future effective tax rate and tax valuation allowance,
earnings from our foreign subsidiaries, remediation activities, new product and service introductions, the ability
of our products to meet market needs, changes to our manufacturing processes, the use of contract
manufacturers, the impact of local government regulations on our ability to pay vendors or conduct operations,
our liquidity position, our ability to generate cash from operations, growth in our businesses, our investments, the
potential impact of adopting new accounting pronouncements, our financial results, our purchase commitments,
our contributions to our pension plans, the selection of discount rates and recognition of any gains or losses for
our benefit plans, our cost-control activities, savings and headcount reduction recognized from our restructuring
programs and other cost saving initiatives, uncertainties relating to Food and Drug Administration ("FDA") and
other regulatory approvals, the integration of our acquisitions and other transactions, the separation of the
electronic measurement business, our stock repurchase program, our declared dividends, our transition to lower-
cost regions, and the existence of economic instability, that involve risks and uncertainties. Our actual results
could differ materially from the results contemplated by these forward-looking statements due to various factors,
including those detailed in Agilent’s filings with the Securities and Exchange Commission, including our Annual
Report on Form 10-K for the year ended October 31, 2013.

The materials contained in this annual report are as of December 19, 2013, unless otherwise noted. The

content of this annual report contains time-sensitive information that is accurate only as of this date. If any
portion of this annual report is redistributed at a later date, Agilent will not be reviewing or updating the material
in this report. The information on page 7 regarding our senior executives, officers and directors is current as
of February 5, 2014.

This annual report contains Agilent’s 2013 audited financial statements and notes thereto in the following

section of this booklet with the tab “Annual Report Financials.” Within the Annual Report Financials, please
refer to “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risks,
Uncertainties and Other Factors That May Affect Future Results” for more complete information on each of our
businesses and Agilent as a whole.

AGILENT TECHNOLOGIES, INC.

2013 ANNUAL REPORT

ANNUAL REPORT TO STOCKHOLDERS

ANNUAL REPORT CONSOLIDATED FINANCIAL STATEMENTS

Additional Information

This annual report, including the letter titled “To our shareholders,” contains forward-looking statements

including, without limitation, statements regarding trends, seasonality, cyclicality and growth in, and drivers of,

the markets we sell into, our strategic direction, our future effective tax rate and tax valuation allowance,

earnings from our foreign subsidiaries, remediation activities, new product and service introductions, the ability

of our products to meet market needs, changes to our manufacturing processes, the use of contract

manufacturers, the impact of local government regulations on our ability to pay vendors or conduct operations,

our liquidity position, our ability to generate cash from operations, growth in our businesses, our investments, the

potential impact of adopting new accounting pronouncements, our financial results, our purchase commitments,

our contributions to our pension plans, the selection of discount rates and recognition of any gains or losses for

our benefit plans, our cost-control activities, savings and headcount reduction recognized from our restructuring

programs and other cost saving initiatives, uncertainties relating to Food and Drug Administration ("FDA") and

other regulatory approvals, the integration of our acquisitions and other transactions, the separation of the

electronic measurement business, our stock repurchase program, our declared dividends, our transition to lower-

cost regions, and the existence of economic instability, that involve risks and uncertainties. Our actual results

could differ materially from the results contemplated by these forward-looking statements due to various factors,

including those detailed in Agilent’s filings with the Securities and Exchange Commission, including our Annual

Report on Form 10-K for the year ended October 31, 2013.

The materials contained in this annual report are as of December 19, 2013, unless otherwise noted. The

content of this annual report contains time-sensitive information that is accurate only as of this date. If any

portion of this annual report is redistributed at a later date, Agilent will not be reviewing or updating the material

in this report. The information on page 7 regarding our senior executives, officers and directors is current as

of February 5, 2014.

This annual report contains Agilent’s 2013 audited financial statements and notes thereto in the following

section of this booklet with the tab “Annual Report Financials.” Within the Annual Report Financials, please

refer to “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risks,

Uncertainties and Other Factors That May Affect Future Results” for more complete information on each of our

businesses and Agilent as a whole.

AGILENT TECHNOLOGIES, INC.
2013 ANNUAL REPORT

ANNUAL REPORT TO STOCKHOLDERS
ANNUAL REPORT CONSOLIDATED FINANCIAL STATEMENTS

s
S
l
L
a
A
i
c
I
C
n
a
N
n
A
i
N
F
I
t
F
r
o
T
R
p
e
O
R
P
E
l
R
a
u
L
n
A
n
U
A
N
N
A
T
R
O
P
E
R
L
A
U
N
N
A

TABLE OF CONTENTS

Selected Financial Data ...................................................................................................................................

Management’s Discussion and Analysis of Financial Condition and Results of Operations ............................

Quantitative and Qualitative Disclosures About Market Risk ..........................................................................

Report of Independent Registered Public Accounting Firm . ...........................................................................

Consolidated Statement of Operations for each of the three years in the period ended October 31, 2013 .......

Consolidated Statement of Comprehensive Income for the three years in the period ended October 31, 2013 ........

Consolidated Balance Sheet at October 31, 2013 and 2012 ...........................................................................

Consolidated Statement of Cash Flows for each of the three years in the period ended October 31, 2013 ......

Consolidated Statement of Equity for each of the three years in the period ended October 31, 2013 ..............

Notes to Consolidated Financial Statements ...................................................................................................

Quarterly Summary (unaudited) .....................................................................................................................

Risks, Uncertainties and Other Factors That May Affect Future Results ........................................................

Controls and Procedures ...................................................................................................................................

Page

This page is intentionally left blank.

TABLE OF CONTENTS

Selected Financial Data ...................................................................................................................................
Management’s Discussion and Analysis of Financial Condition and Results of Operations ............................
Quantitative and Qualitative Disclosures About Market Risk ..........................................................................
Report of Independent Registered Public Accounting Firm . ...........................................................................
Consolidated Statement of Operations for each of the three years in the period ended October 31, 2013 .......
Consolidated Statement of Comprehensive Income for the three years in the period ended October 31, 2013 ........
Consolidated Balance Sheet at October 31, 2013 and 2012 ...........................................................................
Consolidated Statement of Cash Flows for each of the three years in the period ended October 31, 2013 ......
Consolidated Statement of Equity for each of the three years in the period ended October 31, 2013 ..............
Notes to Consolidated Financial Statements ...................................................................................................
Quarterly Summary (unaudited) .....................................................................................................................
Risks, Uncertainties and Other Factors That May Affect Future Results ........................................................
Controls and Procedures ...................................................................................................................................

Page

1
2
24
25
26
27
28
29
30
31
80
81
93

s
l
a
i
c
n
a
n
i
F

t
r
o
p
e
R

l
a
u
n
n
A

T
R
O
P
E
R
L
A
U
N
N
A

SELECTED FINANCIAL DATA

(Unaudited)

2013

2012

2011

2010

2009

Years Ended October 31,

Consolidated Statement of Operations Data:

Net revenue

Income before taxes

Net income (loss)

Net income (loss) per share — Basic:

Net income (loss) per share — Diluted:

Weighted average shares used in computing basic net

income (loss) per share

Weighted average shares used in computing diluted net

income (loss) per share

$ 6,782

859

724

2.12

2.10

341

345

Cash dividends declared per common share

0.46

(in millions, except per share data)

(2)

6,858

1,043

1,153

3.31

3.27

6,615

1,032

1,012

2.92

2.85

(1)

5,444

692

684

1.97

1.94

348

353

0.30

347

355

—

347

353

—

4,481

(31)

(0.09)

346

—

Consolidated Balance Sheet Data:

Cash and cash equivalents and short-term investments

Long-term restricted cash and cash equivalents

— $

Working capital

Total assets

Long-term debt

Stockholders' equity

October 31,

(in millions)

2013

2012

2011

2010

2009

2,675

3,381

10,686

2,699

5,286

(2)

2,351

2,736

10,536

2,112

5,182

3,527

3,732

—

9,057

1,932

4,308

(1)

2,649

3,086

—

9,696

2,190

3,228

2,493

2,838

1,566

7,612

2,904

2,506

(1) Consolidated financial data includes Varian, acquired on May 14, 2010.

(2) Consolidated financial data includes Dako, acquired on June 21, 2012 and a non-recurring tax benefit relating to the

reversal of U.S. valuation allowance of $280 million.

This page is intentionally left blank.

SELECTED FINANCIAL DATA
(Unaudited)

2013

2012

2011

2010

2009

Years Ended October 31,

Consolidated Statement of Operations Data:
Net revenue
Income before taxes
Net income (loss)
Net income (loss) per share — Basic:
Net income (loss) per share — Diluted:
Weighted average shares used in computing basic net
income (loss) per share
Weighted average shares used in computing diluted net
income (loss) per share

$ 6,782
859
$
724
$
2.12
$
2.10
$

341

345

Cash dividends declared per common share

0.46

(in millions, except per share data)

(2)
6,858
1,043
1,153
3.31
3.27

$
$
$
$
$

6,615
1,032
1,012
2.92
2.85

$
$
$
$
$

(1)
5,444
692
684
1.97
1.94

$
$
$
$
$

348

353

0.30

347

355

—

347

353

—

4,481
7
(31)
(0.09)
(0.09)

346

—

October 31,

2013

2012

2011

2010

2009

(in millions)

Consolidated Balance Sheet Data:
Cash and cash equivalents and short-term investments
Working capital
Long-term restricted cash and cash equivalents
Total assets
Long-term debt
Stockholders' equity

$
$
$
$
$
$

2,675
3,381

$
$
— $
$
$
$

10,686
2,699
5,286

(2)
2,351
2,736

$
$
— $
$
$
$

10,536
2,112
5,182

3,527
3,732
—
9,057
1,932
4,308

$
$
$
$
$
$

(1)
2,649
3,086
—
9,696
2,190
3,228

$
$
$
$
$
$

2,493
2,838
1,566
7,612
2,904
2,506

(1) Consolidated financial data includes Varian, acquired on May 14, 2010.
(2) Consolidated financial data includes Dako, acquired on June 21, 2012 and a non-recurring tax benefit relating to the
reversal of U.S. valuation allowance of $280 million.

s
l
a
i
c
n
a
n
i
F

t
r
o
p
e
R

l
a
u
n
n
A

T
R
O
P
E
R
L
A
U
N
N
A

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS

The following discussion should be read in conjunction with the consolidated financial statements and
notes thereto included elsewhere in this annual report. This report contains forward-looking statements including,
without limitation, statements regarding trends, seasonality, cyclicality and growth in, and drivers of, the markets
we sell into, our strategic direction, our future effective tax rate and tax valuation allowance, earnings from our
foreign subsidiaries, remediation activities, new product and service introductions, the ability of our products to
meet market needs, changes to our manufacturing processes, the use of contract manufacturers, the impact of
local government regulations on our ability to pay vendors or conduct operations, our liquidity position, our
ability to generate cash from operations, growth in our businesses, our investments, the potential impact of
adopting new accounting pronouncements, our financial results, our purchase commitments, our contributions to
our pension plans, the selection of discount rates and recognition of any gains or losses for our benefit plans, our
cost-control activities, savings and headcount reduction recognized from our restructuring programs and other
cost saving initiatives, uncertainties relating to Food and Drug Administration ("FDA") and other regulatory
approvals, the integration of our acquisitions and other transactions, the separation of the electronic measurement
business, our stock repurchase program, our declared dividends, our transition to lower-cost regions, and the
existence of economic instability, that involve risks and uncertainties. Our actual results could differ materially
from the results contemplated by these forward-looking statements due to various factors, including those
discussed in this annual report.

Overview and Executive Summary

Agilent Technologies, Inc. (“we”, “Agilent” or the “company”), incorporated in Delaware in May 1999, is
the world's premier measurement company providing core bio-analytical and electronic measurement solutions
to the life sciences, diagnostics and genomics, chemical analysis, communications and electronics industries. Our
fiscal year end is October 31. Unless otherwise stated, all years and dates refer to our fiscal year.

On June 21, 2012, we completed our acquisition of Dako A/S through the acquisition of 100% of the share
capital of Dako A/S, a limited liability company incorporated under the laws of Denmark (“Dako”), under the
share purchase agreement, dated May 16, 2012. Dako provides antibodies, reagents, scientific instruments and
software primarily to customers in pathology laboratories. As a result of the acquisition, Dako became a wholly-
owned subsidiary of Agilent. The consideration paid was approximately $2,143 million, of which $1,400 million
was paid directly to the seller and $743 million was paid to satisfy the outstanding debt of Dako. Agilent funded
the acquisition using existing cash. The acquisition has been accounted for in accordance with the authoritative
accounting guidance and the results of Dako are included in Agilent's consolidated financial statements from the
date of acquisition. The acquisition of Dako and its portfolio is another step to increase our growth in several
rapidly expanding areas of diagnostics, including anatomic pathology and molecular diagnostics, as well as
strengthen our existing offerings with a focus on product development to help in the fight against cancer. For
additional details related to the acquisition of Dako, see Note 3, "Acquisitions".

Agilent's total orders in 2013 were $6,827 million, a decrease of 1 percent when compared to 2012.
Foreign currency movements had an unfavorable impact of approximately 2 percentage points for the year ended

October 31, 2013 when compared to 2012. The increase in orders associated with the Dako acquisition accounted

for approximately 3 percentage points of total order growth for the year ended October 31, 2013 when compared

to 2012. Within our life sciences and diagnostics business orders increased 16 percent in 2013 compared to 2012

with 13 percentage points of order increase attributable to the Dako acquisition. Chemical analysis orders

increased 2 percent in 2013 when compared to 2012 and electronic measurement businesses orders decreased 13

percent when compared to 2012. Agilent's total orders in 2012 increased 2 percent when compared to 2011. The

increase in orders associated with the Dako acquisition accounted for 2 percentage points of order growth for the

year ended October 31, 2012 when compared to 2011.

Agilent's net revenue of $6,782 million decreased 1 percent when compared to 2012. Foreign currency

movements for 2013 had an unfavorable impact of approximately 1 percentage point compared to 2012. Revenue

associated with the Dako acquisition accounted for approximately 4 percentage points of the revenue growth for

the year ended October 31, 2013 when compared to 2012. Within our life sciences and diagnostics business

revenue increased 16 percent in 2013 compared to 2012 with 13 percentage points of revenue increase

attributable to the Dako acquisition. Excluding the effects of the Dako acquisition, there was growth in demand

for life sciences and diagnostics products and services led by pharmaceutical and biotechnology and clinical

markets. There was a decrease in demand from the academic and government market for the year ended

October 31, 2013, when compared to the prior year. Within our chemical analysis business revenue grew 2

percent in 2013 compared with the prior year. There were modest increases in revenue from the food safety and

petrochemical markets, but environmental and forensics markets were down when compared to the prior year.

Within electronic measurement, total revenue decreased when compared to the prior year by 13 percent. General

purpose markets decreased with aerospace and defense flat and computer and semi-conductor markets down

when compared to 2012. Also within electronic measurement, the communications test business decreased for

the year ended October 31, 2013 when compared to the prior year with wireless R&D down moderately but

wireless manufacturing showing a significant shortfall compared to the prior year mostly driven by the loss of

business from a large customer with whom we could not agree on contractual terms. Agilent's total net revenue

in 2012 increased 4 percent when compared to 2011. The revenue increase associated with the Dako acquisition

accounted for approximately 2 percentage points of revenue increase for the year ended October 31, 2012 when

compared to 2011. Foreign currency movements for 2012 had an unfavorable impact of approximately 1

percentage point compared to 2011.

Net income was $724 million in 2013 compared to net income of $1,153 million and $1,012 million in

2012 and 2011, respectively. In 2013, 2012 and 2011 we generated operating cash flows of $1,152 million,

$1,228 million and $1,260 million, respectively. As of October 31, 2013 and 2012 we had cash and cash

equivalents balances of $2,675 million and $2,351 million, respectively.

Looking forward, in the near term we are in a slow-growth environment within electronic measurement

which remains challenging. There are indications that our electronic measurement business will return to a

growth position next year. We expect positive trends to continue in our other businesses.

Critical Accounting Policies and Estimates

The preparation of financial statements in accordance with accounting principles generally accepted in the

U.S. requires management to make estimates and assumptions that affect the amounts reported in our

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. An accounting policy is deemed to be critical if it requires an

accounting estimate to be made based on assumptions about matters that are highly uncertain at the time the

estimate is made, and if different estimates that reasonably could have been used or changes in the accounting

estimate that are reasonably likely to occur could materially change the financial statements. Our critical

accounting policies are those that affect our financial statements materially and involve difficult, subjective or

complex judgments by management. Those policies are revenue recognition, inventory valuation, share-based

compensation, retirement and post-retirement plan assumptions, valuation of goodwill and purchased intangible

assets, restructuring and accounting for income taxes.

October 31, 2013 when compared to 2012. The increase in orders associated with the Dako acquisition accounted
for approximately 3 percentage points of total order growth for the year ended October 31, 2013 when compared
to 2012. Within our life sciences and diagnostics business orders increased 16 percent in 2013 compared to 2012
with 13 percentage points of order increase attributable to the Dako acquisition. Chemical analysis orders
increased 2 percent in 2013 when compared to 2012 and electronic measurement businesses orders decreased 13
percent when compared to 2012. Agilent's total orders in 2012 increased 2 percent when compared to 2011. The
increase in orders associated with the Dako acquisition accounted for 2 percentage points of order growth for the
year ended October 31, 2012 when compared to 2011.

Agilent's net revenue of $6,782 million decreased 1 percent when compared to 2012. Foreign currency
movements for 2013 had an unfavorable impact of approximately 1 percentage point compared to 2012. Revenue
associated with the Dako acquisition accounted for approximately 4 percentage points of the revenue growth for
the year ended October 31, 2013 when compared to 2012. Within our life sciences and diagnostics business
revenue increased 16 percent in 2013 compared to 2012 with 13 percentage points of revenue increase
attributable to the Dako acquisition. Excluding the effects of the Dako acquisition, there was growth in demand
for life sciences and diagnostics products and services led by pharmaceutical and biotechnology and clinical
markets. There was a decrease in demand from the academic and government market for the year ended
October 31, 2013, when compared to the prior year. Within our chemical analysis business revenue grew 2
percent in 2013 compared with the prior year. There were modest increases in revenue from the food safety and
petrochemical markets, but environmental and forensics markets were down when compared to the prior year.
Within electronic measurement, total revenue decreased when compared to the prior year by 13 percent. General
purpose markets decreased with aerospace and defense flat and computer and semi-conductor markets down
when compared to 2012. Also within electronic measurement, the communications test business decreased for
the year ended October 31, 2013 when compared to the prior year with wireless R&D down moderately but
wireless manufacturing showing a significant shortfall compared to the prior year mostly driven by the loss of
business from a large customer with whom we could not agree on contractual terms. Agilent's total net revenue
in 2012 increased 4 percent when compared to 2011. The revenue increase associated with the Dako acquisition
accounted for approximately 2 percentage points of revenue increase for the year ended October 31, 2012 when
compared to 2011. Foreign currency movements for 2012 had an unfavorable impact of approximately 1
percentage point compared to 2011.

Net income was $724 million in 2013 compared to net income of $1,153 million and $1,012 million in
2012 and 2011, respectively. In 2013, 2012 and 2011 we generated operating cash flows of $1,152 million,
$1,228 million and $1,260 million, respectively. As of October 31, 2013 and 2012 we had cash and cash
equivalents balances of $2,675 million and $2,351 million, respectively.

Looking forward, in the near term we are in a slow-growth environment within electronic measurement
which remains challenging. There are indications that our electronic measurement business will return to a
growth position next year. We expect positive trends to continue in our other businesses.

Critical Accounting Policies and Estimates

The preparation of financial statements in accordance with accounting principles generally accepted in the
U.S. requires management to make estimates and assumptions that affect the amounts reported in our
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. An accounting policy is deemed to be critical if it requires an
accounting estimate to be made based on assumptions about matters that are highly uncertain at the time the
estimate is made, and if different estimates that reasonably could have been used or changes in the accounting
estimate that are reasonably likely to occur could materially change the financial statements. Our critical
accounting policies are those that affect our financial statements materially and involve difficult, subjective or
complex judgments by management. Those policies are revenue recognition, inventory valuation, share-based
compensation, retirement and post-retirement plan assumptions, valuation of goodwill and purchased intangible
assets, restructuring and accounting for income taxes.

s
l
a
i
c
n
a
n
i
F

t
r
o
p
e
R

l
a
u
n
n
A

T
R
O
P
E
R
L
A
U
N
N
A

Revenue recognition. We enter into agreements to sell products (hardware or software), services, and
other arrangements (multiple element arrangements) that include combinations of products and services.
Revenue from product sales, net of trade discounts and allowances, is recognized provided that persuasive
evidence of an arrangement exists, delivery has occurred, the price is fixed or determinable, and collectability is
reasonably assured. Delivery is considered to have occurred when title and risk of loss have transferred to the
customer. Revenue is reduced for estimated product returns, when appropriate. For sales that include customer-
specified acceptance criteria, revenue is recognized after the acceptance criteria have been met. For products that
include installation, if the installation meets the criteria to be considered a separate element, product revenue is
recognized upon delivery, and recognition of installation revenue occurs when the installation is complete.
Otherwise, neither the product nor the installation revenue is recognized until the installation is complete.
Revenue from services is deferred and recognized over the contractual period or as services are rendered and
accepted by the customer. We allocate revenue to each element in our multiple-element arrangements based upon
their relative selling prices. We determine the selling price for each deliverable based on a selling price
hierarchy. The selling price for a deliverable is based on our vendor specific objective evidence (VSOE) if
available, third-party evidence (TPE) if VSOE is not available, or estimated selling price (ESP) if neither VSOE
nor TPE is available. Revenue from the sale of software products that are not required to deliver the tangible
product's essential functionality are accounted for under software revenue recognition rules. Revenue allocated to
each element is then recognized when the basic revenue recognition criteria for that element have been met. The
amount of product revenue recognized is affected by our judgments as to whether an arrangement includes
multiple elements.

We use VSOE of selling price in the selling price allocation in all instances where it exists. VSOE of
selling price for products and services is determined when a substantial majority of the selling prices fall within a
reasonable range when sold separately. TPE of selling price can be established by evaluating largely
interchangeable competitor products or services in standalone sales to similarly situated customers. As our
products contain a significant element of proprietary technology and the solution offered differs substantially
from that of competitors, it is difficult to obtain the reliable standalone competitive pricing necessary to establish
TPE. ESP represents the best estimate of the price at which we would transact a sale if the product or service
were sold on a standalone basis. We determine ESP for a product or service by using historical selling prices
which reflect multiple factors including, but not limited to customer type, geography, market conditions,
competitive landscape, gross margin objectives and pricing practices. The determination of ESP is made through
consultation with and approval by management. We may modify or develop new pricing practices and strategies
in the future. As these pricing strategies evolve changes may occur in ESP. The aforementioned factors may
result in a different allocation of revenue to the deliverables in multiple element arrangements, which may
change the pattern and timing of revenue recognition for these elements but will not change the total revenue
recognized for the arrangement.

Inventory valuation. We assess the valuation of our inventory on a periodic basis and make adjustments
to the value for estimated excess and obsolete inventory based upon estimates about future demand and actual
usage. Such estimates are difficult to make under most economic conditions. The excess balance determined by
this analysis becomes the basis for our excess inventory charge. Our excess inventory review process includes
analysis of sales forecasts, managing product rollovers and working with manufacturing to maximize recovery of
excess inventory. If actual market conditions are less favorable than those projected by management, additional
write-downs may be required. If actual market conditions are more favorable than anticipated, inventory
previously written down may be sold to customers, resulting in lower cost of sales and higher income from
operations than expected in that period.

Share-based compensation. We account for share-based awards in accordance with the authoritative
guidance. Under the authoritative guidance, share-based compensation expense is primarily based on estimated
grant date fair value and is recognized on a straight line basis. The fair value of share-based awards for employee
stock option awards was estimated using the Black-Scholes option pricing model. Shares granted under the
Long-Term Performance Program ("LTPP") were valued using the Monte Carlo simulation model. The estimated
fair value of restricted stock unit awards is determined based on the market price of Agilent's common stock on
the date of grant adjusted for expected dividend yield. On January 17, 2012, the company's Board of Directors
approved the initiation of quarterly cash dividends to the company's shareholders. The fair value of all the
awards granted prior to the declaration of quarterly cash dividend was measured based on an expected dividend

yield of 0%. The Employee Stock Purchase Plan ("ESPP") allows eligible employees to purchase shares of our

common stock at 85 percent of the fair market value at the purchase date.

Both the Black-Scholes and Monte Carlo simulation fair value models require the use of highly subjective

and complex assumptions, including the option's expected life and the price volatility of the underlying stock.

The expected stock price volatility assumption was determined using the historical volatility of Agilent's stock

option over the most recent historical period equivalent to the expected life. A 10 percent increase in our

estimated volatility from 39 percent to 49 percent for our most recent employee stock option grant would

generally increase the value of an award and the associated compensation cost by approximately 23 percent if no

other factors were changed.

For the grants awarded under the 2009 stock plan after November 1, 2010, we increased the period

available to retirement eligible employees to exercise their options from three years at retirement date to the full

contractual term of ten years. In developing our estimated life of our employee stock options of 5.8 years for

2011 to 2013, we considered the historical option exercise behavior of our executive employees who were

granted the majority of the options in the annual grants, which we believe is representative of future behavior.

See Note 4, "Share-based Compensation," to the consolidated financial statements for more information.

The assumptions used in calculating the fair value of share-based awards represent our best estimates, but

these estimates involve inherent uncertainties and the application of management judgment. Although we believe

the assumptions and estimates we have made are reasonable and appropriate, changes in assumptions could

materially impact our reported financial results.

Retirement and post-retirement benefit plan assumptions. Retirement and post-retirement benefit plan

costs are a significant cost of doing business. They represent obligations that will ultimately be settled sometime

in the future and therefore are subject to estimation. Pension accounting is intended to reflect the recognition of

future benefit costs over the employees' average expected future service to Agilent based on the terms of the

plans and investment and funding decisions. To estimate the impact of these future payments and our decisions

concerning funding of these obligations, we are required to make assumptions using actuarial concepts within the

framework of accounting principles generally accepted in the U.S. Two critical assumptions are the discount rate

and the expected long-term return on plan assets. Other important assumptions include, expected future salary

increases, expected future increases to benefit payments, expected retirement dates, employee turnover, retiree

mortality rates, and portfolio composition. We evaluate these assumptions at least annually.

The discount rate is used to determine the present value of future benefit payments at the measurement

date - October 31 for both U.S. and non-U.S. plans. For 2013 and 2012, the U.S. discount rates were based on the

results of matching expected plan benefit payments with cash flows from a hypothetically constructed bond

portfolio and increased in 2013 from the previous year. For 2013 and 2012, the discount rate for non-U.S. plans

was generally based on published rates for high quality corporate bonds and remained largely unchanged. If we

changed our discount rate by 1 percent, the impact would be $8 million on U.S. pension expense and $23 million

on non-U.S. pension expense. Lower discount rates increase present values and subsequent year pension

expense; higher discount rates decrease present values and subsequent year pension expense.

The company uses alternate methods of amortization as allowed by the authoritative guidance which

amortizes the actuarial gains and losses on a consistent basis for the years presented. For U.S. Plans, gains and

losses are amortized over the average future working lifetime. For most Non-U.S. Plans and U.S. Post-

Retirement Benefit Plans, gains and losses are amortized using a separate layer for each year's gains and losses.

The expected long-term return on plan assets is estimated using current and expected asset allocations as well as

historical and expected returns. Plan assets are valued at fair value. If we changed our estimated return on assets

by 1 percent, the impact would be $8 million on U.S. pension expense and $17 million on non-U.S. pension

expense. For 2013, actual return on assets was above expectations which, along with contributions during the

year, reduced next year’s pension cost as well as improved the funded status at year end. The net periodic

pension and post-retirement benefit costs recorded in operations excluding curtailments and settlements were

$58 million in 2013, $52 million in 2012, and $58 million in 2011.

Goodwill and purchased intangible assets. Agilent reviews goodwill for impairment annually during our

fourth fiscal quarter and whenever events or changes in circumstances indicate the carrying value may not be

yield of 0%. The Employee Stock Purchase Plan ("ESPP") allows eligible employees to purchase shares of our
common stock at 85 percent of the fair market value at the purchase date.

Both the Black-Scholes and Monte Carlo simulation fair value models require the use of highly subjective
and complex assumptions, including the option's expected life and the price volatility of the underlying stock.
The expected stock price volatility assumption was determined using the historical volatility of Agilent's stock
option over the most recent historical period equivalent to the expected life. A 10 percent increase in our
estimated volatility from 39 percent to 49 percent for our most recent employee stock option grant would
generally increase the value of an award and the associated compensation cost by approximately 23 percent if no
other factors were changed.

For the grants awarded under the 2009 stock plan after November 1, 2010, we increased the period
available to retirement eligible employees to exercise their options from three years at retirement date to the full
contractual term of ten years. In developing our estimated life of our employee stock options of 5.8 years for
2011 to 2013, we considered the historical option exercise behavior of our executive employees who were
granted the majority of the options in the annual grants, which we believe is representative of future behavior.
See Note 4, "Share-based Compensation," to the consolidated financial statements for more information.

The assumptions used in calculating the fair value of share-based awards represent our best estimates, but
these estimates involve inherent uncertainties and the application of management judgment. Although we believe
the assumptions and estimates we have made are reasonable and appropriate, changes in assumptions could
materially impact our reported financial results.

Retirement and post-retirement benefit plan assumptions. Retirement and post-retirement benefit plan
costs are a significant cost of doing business. They represent obligations that will ultimately be settled sometime
in the future and therefore are subject to estimation. Pension accounting is intended to reflect the recognition of
future benefit costs over the employees' average expected future service to Agilent based on the terms of the
plans and investment and funding decisions. To estimate the impact of these future payments and our decisions
concerning funding of these obligations, we are required to make assumptions using actuarial concepts within the
framework of accounting principles generally accepted in the U.S. Two critical assumptions are the discount rate
and the expected long-term return on plan assets. Other important assumptions include, expected future salary
increases, expected future increases to benefit payments, expected retirement dates, employee turnover, retiree
mortality rates, and portfolio composition. We evaluate these assumptions at least annually.

The discount rate is used to determine the present value of future benefit payments at the measurement
date - October 31 for both U.S. and non-U.S. plans. For 2013 and 2012, the U.S. discount rates were based on the
results of matching expected plan benefit payments with cash flows from a hypothetically constructed bond
portfolio and increased in 2013 from the previous year. For 2013 and 2012, the discount rate for non-U.S. plans
was generally based on published rates for high quality corporate bonds and remained largely unchanged. If we
changed our discount rate by 1 percent, the impact would be $8 million on U.S. pension expense and $23 million
on non-U.S. pension expense. Lower discount rates increase present values and subsequent year pension
expense; higher discount rates decrease present values and subsequent year pension expense.

The company uses alternate methods of amortization as allowed by the authoritative guidance which
amortizes the actuarial gains and losses on a consistent basis for the years presented. For U.S. Plans, gains and
losses are amortized over the average future working lifetime. For most Non-U.S. Plans and U.S. Post-
Retirement Benefit Plans, gains and losses are amortized using a separate layer for each year's gains and losses.
The expected long-term return on plan assets is estimated using current and expected asset allocations as well as
historical and expected returns. Plan assets are valued at fair value. If we changed our estimated return on assets
by 1 percent, the impact would be $8 million on U.S. pension expense and $17 million on non-U.S. pension
expense. For 2013, actual return on assets was above expectations which, along with contributions during the
year, reduced next year’s pension cost as well as improved the funded status at year end. The net periodic
pension and post-retirement benefit costs recorded in operations excluding curtailments and settlements were
$58 million in 2013, $52 million in 2012, and $58 million in 2011.

Goodwill and purchased intangible assets. Agilent reviews goodwill for impairment annually during our
fourth fiscal quarter and whenever events or changes in circumstances indicate the carrying value may not be

s
l
a
i
c
n
a
n
i
F

t
r
o
p
e
R

l
a
u
n
n
A

T
R
O
P
E
R
L
A
U
N
N
A

recoverable. As defined in the authoritative guidance, a reporting unit is an operating segment, or one level
below an operating segment. We aggregated components of an operating segment that have similar economic
characteristics into our reporting units. At the time of an acquisition, we assign goodwill to the reporting unit that
is expected to benefit from the synergies of the combination. In the fourth quarter of 2013, we combined the life
sciences and diagnostics and genomics segments to form the life sciences and diagnostics segment. As a result,
Agilent now has three segments, life sciences and diagnostics, chemical analysis, and electronic measurement
segments.

In September 2011, the FASB approved changes to the goodwill impairment guidance which are intended
to reduce the cost and complexity of the annual impairment test. The changes provide entities an option to
perform a qualitative assessment to determine whether further impairment testing is necessary. The revised
standard gives an entity the option to first assess qualitative factors to determine whether performing the current
two-step test is necessary. If an entity believes, as a result of its qualitative assessment, that it is more-likely-
than-not (i.e. > 50% chance) that the fair value of a reporting unit is less than its carrying amount, the
quantitative impairment test will be required. Otherwise, no further testing will be required.

The revised guidance includes examples of events and circumstances that might indicate that a reporting
unit's fair value is less than its carrying amount. These include macro-economic conditions such as deterioration
in the entity's operating environment or industry or market considerations; entity-specific events such as
increasing costs, declining financial performance, or loss of key personnel; or other events such as an expectation
that a reporting unit will be sold or a sustained decrease in the stock price on either an absolute basis or relative
to peers.

The qualitative indicators replace those previously used to determine whether an interim goodwill

impairment test is required. Agilent opted to early adopt this guidance for the year ended October 31, 2011.

assets in 2011.

In fiscal year 2013, we assessed goodwill impairment for our four reporting units which consisted of two
segments: chemical analysis and electronic measurement; and two reporting units under the life sciences and
diagnostics segment. The first of these two reporting units related to our life sciences business and the second
related to our diagnostics business. We performed a qualitative test for goodwill impairment of the following
three reporting units, as of September 30, 2013: the chemical analysis segment, the electronic measurement
segment, and the reporting unit relating to life sciences. Based on the results of our qualitative testing, we believe
that it is more-likely-than-not that the fair value of these reporting units are greater than their respective carrying
values. We performed a quantitative test for goodwill impairment of the reporting unit related to our diagnostics
business as of September 30, 2013. Based on the results of our quantitative testing, the fair value was
significantly in excess of the carrying value. There was no impairment of goodwill during the years ended
October 31, 2013, 2012 and 2011. Each quarter we review the events and circumstances to determine if goodwill
impairment is indicated.

Purchased intangible assets consist primarily of acquired developed technologies, proprietary know-how,
trademarks, and customer relationships and are amortized using the straight-line method over estimated useful
lives ranging from 6 months to 15 years. In-process research and development (IPR&D) is initially capitalized at
fair value as an intangible asset with an indefinite life and assessed for impairment thereafter. When the IPR&D
project is complete, it is reclassified as an amortizable purchased intangible asset and is amortized over its
estimated useful life. If an IPR&D project is abandoned, Agilent will record a charge for the value of the related
intangible asset to Agilent's consolidated statement of operations in the period it is abandoned.

allows the option to first assess qualitative factors (events and circumstances) that could affect the significant

inputs used in determining the fair value of the indefinite-lived intangible asset. The qualitative factors assist in

determining whether it is more likely than not (meaning a likelihood of more than 50 percent) that the indefinite-

lived intangible asset is impaired. An organization may choose to bypass the qualitative assessment for any

indefinite-lived intangible asset in any period and proceed directly to calculating its fair value. The amendments

are effective for annual and interim impairment tests performed for fiscal years beginning after September 15,

2012. Early adoption was permitted. Agilent adopted this guidance for the year ended October 31, 2012. Based

on the quantitative test, we recorded an impairment of $1 million in 2013 and an impairment of $1 million in

2012, both relating to IPR&D projects that were abandoned. In all other instances we used the qualitative test and

concluded that it was more likely than not that all other indefinite-lived intangible assets were not impaired. No

impairments were recorded in 2011.

We continually monitor events and changes in circumstances that could indicate carrying amounts of

long-lived assets, including purchased intangible assets, may not be recoverable. When such events or changes in

circumstances occur, we assess the recoverability of long-lived assets by determining whether the carrying value

of such assets will be recovered through undiscounted expected future cash flows. If the total of the undiscounted

future cash flows is less than the carrying amount of those assets, we recognize an impairment loss based on the

excess of the carrying amount over the fair value of the assets. In 2013, we recorded $1 million of impairments

of other intangibles related to cancellation of an in-process research and development project. We also recorded

$3 million of impairments related to other long-lived assets in 2013. In 2012, we recorded $1 million of

impairments of other intangibles related to the cancellation of an in-process research and development project.

We also recorded $1 of impairments related to other long-lived assets in 2012. We performed impairment

analyses of purchased intangible assets in 2011 and recorded $3 million of impairment charges primarily related

to a business where we ceased operations. We also recorded $8 million of impairments related to other long-lived

Restructuring. The main component of our restructuring plan is related to workforce reductions.

Workforce reduction charges are accrued when payment of benefits becomes probable that the employees are

entitled to the severance and the amounts can be estimated. If the amounts and timing of cash flows from

restructuring activities are significantly different from what we have estimated, the actual amount of

restructuring and other related charges could be materially different, either higher or lower, than those we have

recorded.

Accounting for income taxes. We must make certain estimates and judgments in determining income tax

expense for financial statement purposes. These estimates and judgments occur in the calculation of tax credits,

benefits and deductions, and in the calculation of certain tax assets and liabilities which arise from differences in

the timing of recognition of revenue and expense for tax and financial statement purposes, as well as interest and

penalties related to uncertain tax positions. Significant changes to these estimates may result in an increase or

decrease to our tax provision in a subsequent period.

Significant management judgment is also required in determining whether deferred tax assets will be

realized in full or in part. When it is more-likely-than-not that all or some portion of specific deferred tax assets

such as net operating losses or foreign tax credit carryforwards will not be realized, a valuation allowance must

be established for the amount of the deferred tax assets that cannot be realized. We consider all available positive

and negative evidence on a jurisdiction-by-jurisdiction basis when assessing whether it is more likely than not

that deferred tax assets are recoverable. We consider evidence such as our past operating results, the existence of

losses in recent years and our forecast of future taxable income. In the fourth quarter of fiscal 2012 we released

the valuation allowance for the majority of our U.S. deferred tax assets. At October 31, 2013, we continue to

recognize a valuation allowance for certain U.S. state and foreign deferred tax assets. We intend to maintain a

valuation allowance in these jurisdictions until sufficient positive evidence exists to support its reversal.

We have not provided for all U.S. federal income and foreign withholding taxes on the undistributed

earnings of some of our foreign subsidiaries because we intend to reinvest such earnings indefinitely. Should we

decide to remit this income to the U.S. in a future period, our provision for income taxes will increase materially

in that period.

The calculation of our tax liabilities involves dealing with uncertainties in the application of complex tax

allows the option to first assess qualitative factors (events and circumstances) that could affect the significant
inputs used in determining the fair value of the indefinite-lived intangible asset. The qualitative factors assist in
determining whether it is more likely than not (meaning a likelihood of more than 50 percent) that the indefinite-
lived intangible asset is impaired. An organization may choose to bypass the qualitative assessment for any
indefinite-lived intangible asset in any period and proceed directly to calculating its fair value. The amendments
are effective for annual and interim impairment tests performed for fiscal years beginning after September 15,
2012. Early adoption was permitted. Agilent adopted this guidance for the year ended October 31, 2012. Based
on the quantitative test, we recorded an impairment of $1 million in 2013 and an impairment of $1 million in
2012, both relating to IPR&D projects that were abandoned. In all other instances we used the qualitative test and
concluded that it was more likely than not that all other indefinite-lived intangible assets were not impaired. No
impairments were recorded in 2011.

We continually monitor events and changes in circumstances that could indicate carrying amounts of
long-lived assets, including purchased intangible assets, may not be recoverable. When such events or changes in
circumstances occur, we assess the recoverability of long-lived assets by determining whether the carrying value
of such assets will be recovered through undiscounted expected future cash flows. If the total of the undiscounted
future cash flows is less than the carrying amount of those assets, we recognize an impairment loss based on the
excess of the carrying amount over the fair value of the assets. In 2013, we recorded $1 million of impairments
of other intangibles related to cancellation of an in-process research and development project. We also recorded
$3 million of impairments related to other long-lived assets in 2013. In 2012, we recorded $1 million of
impairments of other intangibles related to the cancellation of an in-process research and development project.
We also recorded $1 of impairments related to other long-lived assets in 2012. We performed impairment
analyses of purchased intangible assets in 2011 and recorded $3 million of impairment charges primarily related
to a business where we ceased operations. We also recorded $8 million of impairments related to other long-lived
assets in 2011.

Restructuring. The main component of our restructuring plan is related to workforce reductions.
Workforce reduction charges are accrued when payment of benefits becomes probable that the employees are
entitled to the severance and the amounts can be estimated. If the amounts and timing of cash flows from
restructuring activities are significantly different from what we have estimated, the actual amount of
restructuring and other related charges could be materially different, either higher or lower, than those we have
recorded.

Accounting for income taxes. We must make certain estimates and judgments in determining income tax
expense for financial statement purposes. These estimates and judgments occur in the calculation of tax credits,
benefits and deductions, and in the calculation of certain tax assets and liabilities which arise from differences in
the timing of recognition of revenue and expense for tax and financial statement purposes, as well as interest and
penalties related to uncertain tax positions. Significant changes to these estimates may result in an increase or
decrease to our tax provision in a subsequent period.

Significant management judgment is also required in determining whether deferred tax assets will be
realized in full or in part. When it is more-likely-than-not that all or some portion of specific deferred tax assets
such as net operating losses or foreign tax credit carryforwards will not be realized, a valuation allowance must
be established for the amount of the deferred tax assets that cannot be realized. We consider all available positive
and negative evidence on a jurisdiction-by-jurisdiction basis when assessing whether it is more likely than not
that deferred tax assets are recoverable. We consider evidence such as our past operating results, the existence of
losses in recent years and our forecast of future taxable income. In the fourth quarter of fiscal 2012 we released
the valuation allowance for the majority of our U.S. deferred tax assets. At October 31, 2013, we continue to
recognize a valuation allowance for certain U.S. state and foreign deferred tax assets. We intend to maintain a
valuation allowance in these jurisdictions until sufficient positive evidence exists to support its reversal.

We have not provided for all U.S. federal income and foreign withholding taxes on the undistributed
earnings of some of our foreign subsidiaries because we intend to reinvest such earnings indefinitely. Should we
decide to remit this income to the U.S. in a future period, our provision for income taxes will increase materially
in that period.

The calculation of our tax liabilities involves dealing with uncertainties in the application of complex tax

s
l
a
i
c
n
a
n
i
F

t
r
o
p
e
R

l
a
u
n
n
A

T
R
O
P
E
R
L
A
U
N
N
A

law and regulations in a multitude of jurisdictions. Although the guidance on the accounting for uncertainty in
income taxes prescribes the use of a recognition and measurement model, the determination of whether an
uncertain tax position has met those thresholds will continue to require significant judgment by management. In
accordance with the guidance on the accounting for uncertainty in income taxes, for all U.S. and other tax
jurisdictions, we recognize potential liabilities for anticipated tax audit issues based on our estimate of whether,
and the extent to which, additional taxes and interest will be due. The ultimate resolution of tax uncertainties may
differ from what is currently estimated, which could result in a material impact on income tax expense. If our
estimate of income tax liabilities proves to be less than the ultimate assessment, a further charge to expense
would be required. If events occur and the payment of these amounts ultimately proves to be unnecessary, the
reversal of the liabilities would result in tax benefits being recognized in the period when we determine the
liabilities are no longer necessary. We include interest and penalties related to unrecognized tax benefits within
the provision for income taxes on the consolidated statements of operations.

As a part of our accounting for business combinations, intangible assets are recognized at fair values and
goodwill is measured as the excess of consideration transferred over the net estimated fair values of assets
acquired. Impairment charges associated with goodwill are generally not tax deductible and will result in an
increased effective income tax rate in the period that any impairment is recorded. Amortization expenses
associated with acquired intangible assets are generally not tax deductible and therefore deferred tax liabilities
have been recorded for non-deductible amortization expenses as a part of the accounting for business
combinations.

Adoption of New Pronouncements

See Note 2, "New Accounting Pronouncements," to the consolidated financial statements for a description

of new accounting pronouncements.

Restructuring

In the second quarter of 2013, we accrued for a targeted restructuring program that is expected to reduce
Agilent's total headcount by approximately 450 regular employees, representing approximately 2 percent of our
global workforce. The timing and scope of workforce reductions will vary based on local legal requirements.
When completed, the restructuring program is expected to result in an approximately $50 million reduction in
annual cost of sales and operating expenses. In addition we have been streamlining our manufacturing
operations. As part of this action, we anticipate the reduction of approximately 250 positions to reduce our
annual cost of sales.

For the year ended October 31, 2013 we accrued $53 million associated with the headcount reductions.
Within the U.S, we have substantially completed these restructuring activities. Internationally, we expect to
complete the majority of these restructuring activities by the end of the second half of fiscal 2014. As of October
31, 2013, approximately 250 employees were terminated and $29 million was paid under the targeted
restructuring program and 100 employees were terminated under the streamlining of manufacturing.

Foreign Currency

Our revenues, costs and expenses, and monetary assets and liabilities are exposed to changes in foreign
currency exchange rates as a result of our global operating and financing activities. We hedge revenues, expenses
and balance sheet exposures that are not denominated in the functional currencies of our subsidiaries on a short
term and anticipated basis. We do experience some fluctuations within individual lines of the consolidated
statement of operations and balance sheet because our hedging program is not designed to offset the currency
movements in each category of revenues, expenses, monetary assets and liabilities. Our hedging program is
designed to hedge currency movements on a relatively short-term basis (up to a rolling twelve month period).
Therefore, we are exposed to currency fluctuations over the longer term. To the extent that we are required to
pay for all, or portions, of an acquisition price in foreign currencies, Agilent may enter into foreign exchange
contracts to reduce the risk that currency movements will impact the U.S. dollar cost of the transaction.

Results from Operations

Orders and Net Revenue

Orders

Net revenue:

Products

Services and other

Total net revenue

2013

6,827

5,534

1,248

6,782

Years Ended October 31,

2012

(in millions)

6,877

5,659

1,199

6,858

2011

6,769

5,482

1,133

6,615

2013 over 2012

% Change

2012 over 2011

% Change

(1)%

(2)%

(1)%

Years Ended October 31,

2013

2012

2011

2013 over 2012

Ppts Change

2012 over 2011

Ppts Change

% of total net revenue:

Products

Services and other

Total

82%

18%

100%

83%

17%

100%

83%

17%

100%

(1) ppt

1 ppt

—

In general, recorded orders represent firm purchase commitments from our customers with established

terms and conditions for products and services that will be delivered within six months. Agilent's total orders in

2013 were $6,827 million, a decrease of 1 percent when compared to 2012. Foreign currency movements had an

unfavorable impact of approximately 2 percentage points for the year ended October 31, 2013 when compared to

2012. The increase in orders associated with the Dako acquisition accounted for approximately 3 percentage

points of total order growth for the year ended October 31, 2013 when compared to 2012. Within our life

sciences and diagnostics business orders increased 16 percent in 2013 compared to 2012 with 13 percentage

points of order increase attributable to the Dako acquisition. Chemical analysis orders increased 2 percent in

2013 when compared to 2012 and electronic measurement businesses orders decreased 13 percent when

compared to 2012. Agilent's total orders in 2012 increased 2 percent when compared to 2011. The increase in

orders associated with the Dako acquisition accounted for 2 percentage points of order growth for the year ended

October 31, 2012 when compared to 2011. Within our life sciences and diagnostics business orders increased due

to the Dako acquisition and were flat in chemical analysis and electronic measurement when compared to 2011.