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and international markets.
−Removed: Many countries, including the United States, implemented measures such as quarantine, shelter-in-place, curfew, travel and activity restrictions and similar isolation measures, including government orders and other restrictions on the conduct of business operations at different times.
−Removed: Due to these measures, we experienced unpredictable reductions or increases in demand for certain of our products, disruptions or delays in shipments of certain materials or components of our products, and delays in installations and services due to the inability to access customer sites, primarily in the latter part of our second quarter.
−Removed: As an essential business throughout the COVID-19 pandemic, we have remained open with our top priority being the health and safety of our employees, customers and community.
−Removed: At every stage of the pandemic, we have taken decisive and appropriate precautions, including a mandatory work from home policy for all employees with the exception of manufacturing, distribution, and certain laboratory environments, as well as restrictions on all non-essential travel and visitors into our facilities.
−Removed: At this time, our factories continue to operate around the world in accordance with the guidance issued by local, state and national government authorities.
−Removed: Our digital workplace strategy and strategic technology investments have enabled us to provide modern connectivity and collaboration tools to our employees to meet remote working needs as this situation has escalated.
−Removed: We have taken and continue to take proactive measures to ensure the health and safety of our global employee base.
−Removed: We designed a multi-phase return-to-office process for the safe return of our employees to our sites.
−Removed: We developed and implemented rigorous return-to-office protocols to promote a safe work environment in all locations for employees who have been working on-site throughout the pandemic and for employees who will be returning in the future, as well as, for the safety of all customer and vendor interactions.
−Removed: At this time, the COVID-19 pandemic has not significantly impacted our manufacturing facilities or third parties to whom we outsource certain manufacturing processes, the distribution centers where our inventory is managed or the operations of our logistics and other service providers.
−Removed: We continue working with our customers and suppliers to understand the existing and potential future negative impacts to our delivery and supply chain and take actions in an effort to mitigate such impacts.
−Removed: The majority of the markets we serve, such as the pharmaceutical, biopharmaceutical, food, environmental and diagnostics and clinical markets, have continued to operate at various levels throughout the pandemic, and we continue working closely with
−Removed: our customers to ensure their seamless operations.
−Removed: From a customer-facing perspective, we continue leveraging digital demand generation activities, including virtual demonstrations across all regions, remote instrument repairs, virtual sales seminars, online product training, and rapid one-on-one communications over emails, phone and video conferencing.
−Removed: Despite the economic challenges due to the COVID-19 pandemic, we ended fiscal year 2020 with revenue growth of 3 percent year over year with revenue growth from most of our key end markets.
−Removed: In the latter part of the fiscal year, our Agilent CrossLab business began to see an increase in revenue for our on-demand services and installation services due to the re-opening of laboratories around the world, especially in Europe.
−Removed: While we began to see elective medical procedures resume in the fourth quarter, revenue from our diagnostics and genomics business continues to be negatively impacted by the COVID-19 pandemic.
−Removed: In our life sciences and applied markets business, we saw an increase in demand for some of our products for use in the COVID-19 testing, vaccine and therapeutic drug development.
−Removed: We also benefited from our cost savings actions which included reduction in travel and non-essential spending.
+Added: During the year ended October 31, 2021, many businesses and countries, including the U.S., continued applying preventative and precautionary measures to mitigate the spread of the virus including government orders and other restrictions on the conduct of business operations.
+Added: The health and safety of our employees is a top priority for us.
+Added: In response to the COVID-19 pandemic, we took proactive actions to protect the health and safety of our employees, customers, partners and suppliers.
+Added: We enacted safety measures, including social distancing protocols, encouraging employees to work from home when possible, suspending non-essential work travel, implementing various access controls at our facilities, frequently disinfecting our workspaces and providing appropriate personal protective equipment to employees who are physically present at our facilities.
+Added: As COVID-19 conditions improved, we began implementing a phased reopening process, required our U.S.
+Added: employees to be fully vaccinated pursuant to federal, state and local guidelines and continued to prioritize health and safety.
+Added: We expect to continue to implement appropriate safety measures until the COVID-19 pandemic is contained.
+Added: We may take further actions as government authorities require or recommend or as we determine to be in the best interests of our employees, customers, partners and suppliers.
+Added: Currently, most of our employees are still working from home.
+Added: When we determine it is safe for our employees to return to the office, we will be moving towards a hybrid work model, giving our employees the flexibility to work offsite or at our onsite locations.
The COVID-19 pandemic continues to be dynamic, and near-term challenges across the economy remain.
−Removed: Although we anticipate there will be vaccines distributed widely in the near future, we expect continued volatility and unpredictability related to the impact of COVID-19 on our business results.
−Removed: We continue to actively monitor the pandemic and we will continue to take appropriate steps to mitigate the adverse impacts on our business posed by the on-going spread of COVID-19.
+Added: The ongoing effects of COVID-19 remain difficult to predict due to numerous uncertainties, including the severity, duration and resurgence of the outbreak, new variants, the effectiveness of health and safety measures including vaccines, managing the different pace of return-to-office in different locations, the pace and strength of the economic recovery, and supply chain pressures, among others.
+Added: We will continue to actively monitor the effects of the pandemic and will continue to take appropriate steps to mitigate the impacts to our employees and on our business results.
+Added: Despite the economic challenges due to the COVID-19 pandemic, we ended our fiscal year 2021 with revenue growth of 18 percent year over year.
+Added: This revenue growth was primarily non-COVID related revenue and came from all of our segments, key end markets and geographies.
+Added: Revenue growth was also partly due to weakened sales in the prior year as the response to the early stages of the pandemic caused many of our customers to close or reduce operating capacity.
+Added: In fiscal year 2021, our overall business performance was strong which also resulted in significant expense increases from our variable pay and long-term performance plan-earnings per share ("LTPP-EPS") programs, along with sales commission increases year over year, which was partially offset by the continued cost savings actions which included reduction in travel and non-essential spending that we implemented last year.
+Added: On April 15, 2021 we completed the acquisition of privately-owned Resolution Bioscience, Inc., a biotechnology company focused on the development and commercialization of next-generation sequencing-based ("NGS") precision oncology solutions, for $561 million cash plus potential future contingent payments of up to $145 million upon the achievement of certain milestones which are based on certain revenue and technical targets.
+Added: Resolution Bioscience complements and expands our capabilities in NGS-based cancer diagnostics within our diagnostics and genomics segment and provides us with innovative technology to further serve the needs of the fast-growing precision medicine market.
+Added: The fair value of the contingent consideration as of October 31, 2021 was $89 million which included a decrease of $21 million from the estimated fair value as of the end of our third quarter.
2022 Senior Notes
−Removed: On June 4, 2020, we issued an aggregate principal amount of $500 million in senior notes ("2030 senior notes").
+Added: On January 21, 2021, we redeemed $100 million of the $400 million outstanding aggregate principal amount of our 2022 senior notes due October 1, 2022.
+Added: On April 5, 2021, we redeemed the remaining outstanding $300 million of our 2022 senior notes.
+Added: The total redemption price of approximately $417 million was computed in accordance with the terms of the 2022 senior notes as the present value of the remaining scheduled payments of principal and unpaid interest on the notes being redeemed.
+Added: During the year ended October 31, 2021, we recorded a loss on extinguishment of debt of $17 million in other income (expense), net in the consolidated statement of operations.
+Added: In addition, $1 million of accrued interest, up to but not including the applicable redemption date, was paid.
+Added: The make-whole premium less partial amortization of previously deferred interest rate swap gain together with the amortization of debt issuance costs and discount was recorded in other income (expense), net in the consolidated statement of operations.
+Added: 2031 Senior Notes
+Added: On March 12, 2021, we issued an aggregate principal amount of $850 million in senior notes ("2031 senior notes").
The 2031 senior notes were issued at 99.822% of their principal amount.
−Removed: The 2030 senior notes will mature on June 4, 2030, and bear interest at a fixed rate of 2.10% per annum.
−Removed: The interest is payable semi-annually on June 4th and December 4th of each year and payments commenced on December 4, 2020.
−Removed: In 2019, we acquired 100 percent of the stock of ACEA Biosciences Inc.
−Removed: ("ACEA"), a developer of cell analysis tools, for $250 million.
−Removed: In addition, we completed the acquisition of privately-owned Lionheart Technologies LLC ("BioTek"), a leader in the design, manufacture and distribution of innovative life science instrumentation for $1.17 billion.
−Removed: The financial results of these businesses have been included in our financial results from the date of the close.
+Added: The 2031 senior notes will mature on March 12, 2031, and bear interest at a fixed rate of 2.30% per annum.
+Added: The interest is payable semi-annually on March 12th and September 12th of each year and payments commenced on September 12, 2021.
Actual Results
Agilent's net revenue of $6,319 million in 2021 increased 18 percent when compared to 2020.
−Removed: Foreign currency movements for 2020 had an overall unfavorable impact on revenue of approximately 1 percentage point compared to 2019.
−Removed: In 2020, acquisitions from 2019 had an overall favorable impact of 3 percentage points when compared to 2019.
+Added: Foreign currency movements for 2021 had an overall favorable impact on revenue growth of 2 percentage points when compared to 2020.
+Added: Net revenue increased in all business segments, geographic regions and key end markets.
+Added: The favorable impact of COVID-related revenue and revenue from our recent acquisition for the year ended October 31, 2021 was not material.
Revenue in the life sciences and applied markets business increased 18 percent in 2021 when compared to 2020.
−Removed: In 2020 acquisitions from 2019 had an overall favorable impact of 7 percentage points when compared to 2019.
−Removed: Foreign currency movements had no overall impact on revenue in 2020 when compared to 2019.
+Added: Foreign currency movements had an overall favorable impact on revenue growth of 2 percentage points in 2021 when compared to 2020.
Revenue in the diagnostics and genomics business increased 24 percent in 2021 when compared to 2020.
−Removed: Foreign currency movements had an overall unfavorable impact on revenue of 1 percentage point in 2020 when compared to 2019.
+Added: Foreign currency movements had an overall favorable impact on revenue growth of 3 percentage points in 2021 when compared to 2020.
Revenue in the Agilent CrossLab business increased 16 percent in 2021 when compared to 2020.
−Removed: Foreign currency movements had an overall unfavorable impact on revenue of 1 percentage point in 2020 when compared to 2019.
+Added: Foreign currency movements had an overall favorable impact on revenue growth of 4 percentage points in 2021 when compared to 2020.
Agilent's net revenue of $5,339 million increased 3 percent in 2020 when compared to 2019.
−Removed: Foreign currency movements for 2019 had an overall unfavorable impact on revenue of approximately 2 percentage points compared to 2018.
+Added: Foreign currency movements for 2020 had an overall unfavorable impact on revenue growth of 1 percentage point when compared to 2019.
In 2020, acquisitions from 2019 had an overall favorable impact of 3 percentage points when compared to 2019.
Revenue in the life sciences and applied markets business increased 4 percent in 2020 when compared to 2019.
−Removed: Foreign currency movements had an overall unfavorable impact on revenue of 2 percentage points in 2019 when compared to 2018.
+Added: In 2020 acquisitions from 2019 had an overall favorable impact of 7 percentage points when compared to 2019.
+Added: Foreign currency movements had no overall
+Added: impact on revenue growth in 2020 when compared to 2019.
Revenue in the diagnostics and genomics business increased 2 percent in 2020 when compared to 2019.
−Removed: Foreign currency movements had an overall unfavorable impact of 3 percentage points on revenue in 2019 when compared to 2018.
+Added: Foreign currency movements had an overall unfavorable impact on revenue growth of 1 percentage point in 2020 when compared to 2019.
Revenue in the Agilent CrossLab business increased 3 percent in 2020 when compared to 2019.
−Removed: Foreign currency movements had an overall unfavorable impact on revenue of 3 percentage points in 2019 when compared to 2018.
+Added: Foreign currency movements had an overall unfavorable impact on revenue growth of 1 percentage point in 2020 when compared to 2019.
Net income was $1,210 million in 2021 compared to net income of $719 million and $1,071 million in 2020 and 2019, respectively.
−Removed: Net income in 2020 was impacted by revenue declines in certain of our businesses associated with the COVID-19 pandemic and increased costs and expenses which included an impairment charge of $98 million related to the closure of our
−Removed: sequencer development program.
+Added: Net income in 2021 was impacted by higher sales volume and net gains on fair value of equity securities partially offset by significant expense increases from our variable pay, share-based compensation expense and sales commissions.
+Added: Net income for the year ended October 31, 2020 was impacted by revenue declines in certain of our businesses associated with the COVID-19 pandemic and increased costs and expenses which included an impairment charge of $98 million related to the closure of our sequencer development program.
Net income for the year ended October 31, 2019 was impacted by a discrete tax benefit of $299 million related to the extension of the company's tax incentives in Singapore.
−Removed: Net income for the year ended October 31, 2018 was impacted by a discrete tax charge of $552 million related to the enactment of the Tax Act that was passed on December 22, 2017.
As of October 31, 2021 and 2020, we had cash and cash equivalents balances of $1,484 million and $1,441 million, respectively.
−Removed: On May 28, 2015 we announced that our board of directors had approved a share repurchase program (the "2015 repurchase program").
−Removed: The 2015 share repurchase program authorizes the purchase of up to $1.14 billion of our common stock at the company's discretion through and including November 1, 2018.
−Removed: The 2015 repurchase program did not require the company to acquire a specific number of shares and could have been suspended or discontinued at any time.
−Removed: During the year ended October 31, 2018, we repurchased and retired approximately 6.4 million shares for $422 million under this authorization.
−Removed: As of October 31, 2018, we had remaining authorization to repurchase up to $188 million of our common stock under this program which expired on November 1, 2018.
On November 19, 2018 we announced that our board of directors had approved a new share repurchase program (the "2019 repurchase program") designed, among other things, to reduce or eliminate dilution resulting from issuance of stock under the company's employee equity incentive programs.
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During the year ended October 31, 2019, we repurchased and retired 10.4 million shares for $723 million under this authorization.
+Added: During the year ended October 31, 2020, we repurchased and retired 5.2 million shares for $469 million under this authorization.
During the year ended October 31, 2021, we repurchased and retired approximately 3.1 million shares for $365 million under this authorization.
−Removed: As of October 31, 2020, we had remaining authorization to repurchase up to $558 million of our common stock under this program.
+Added: Effective February 18, 2021, the 2019 repurchase program was terminated and replaced by the new share repurchase program.
+Added: The remaining authorization under the 2019 repurchase plan of $193 million expired on February 18, 2021.
+Added: On February 16, 2021 we announced that our board of directors had approved a new share repurchase program (the "2021 repurchase program") designed, among other things, to reduce or eliminate dilution resulting from issuance of stock under the company's employee equity incentive programs.
+Added: The 2021 repurchase program authorizes the purchase of up to $2.0 billion of our common stock at the company's discretion and has no fixed termination date.
+Added: The 2021 repurchase program which became effective on February 18, 2021, replaced and terminated the 2019 repurchase program on that date.
+Added: The 2021 repurchase program does not require the company to acquire a specific number of shares and may be suspended, amended or discontinued at any time.
+Added: During the year ended October 31, 2021, we repurchased and retired 3.0 million shares for $423 million under this authorization.
+Added: As of October 31, 2021, we had remaining authorization to repurchase up to approximately $1.577 billion of our common stock under the 2021 repurchase program.
During the year ended October 31, 2021, cash dividends of 0.776 per share, or $236 million were declared and paid on the company's outstanding common stock.
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The timing and amounts of any future dividends are subject to determination and approval by our board of directors.
−Removed: Looking forward, our top priority continues to be the health and safety of our employees, customers and community, as well as supporting our customers' operations.
−Removed: We also remain focused on improving our customers’ experience, differentiating product solutions and productivity especially during these extraordinary times.
−Removed: Our focus on meeting our customers’ needs supported several aspects of the COVID-19 research and testing along with therapeutic and vaccine development.
−Removed: While uncertainties remain as the spread of COVID-19 begins to rise, we are cautiously optimistic that in the short-term our financial results can continue to improve as the global economy continues its path towards recovery.
+Added: Looking forward, as we continue to navigate the impacts of the COVID-19 pandemic, our top priority continues to be the health and safety of our employees, customers and community, as well as supporting our customers' operations.
+Added: We expect to face additional logistical pressures, such as longer lead times and limited sources of supply in the near term that we will continue to mitigate through various sourcing strategies.
+Added: We also remain focused on improving our customers’ experience, differentiating product solutions and productivity.
+Added: We continue supporting our customers' needs related to the development of new therapies and vaccines.
+Added: With our strong results in fiscal year 2021 and the continued recovery in our end markets, we remain optimistic about our long-term growth opportunities in all of our end markets.
Critical Accounting Policies and Estimates
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We estimate the standalone selling price by calculating the average historical selling price of our products and services per country for each performance obligation.
−Removed: Stand-alone selling prices are determined for each distinct good or service in the contract and then we allocate the transaction price in proportion to those standalone selling prices by performance obligations.
+Added: Stand-alone selling
+Added: prices are determined for each distinct good or service in the contract and then we allocate the transaction price in proportion to those standalone selling prices by performance obligations.
A portion of our revenue relates to lease arrangements.
−Removed: Standalone lease arrangements are outside the scope of ASC 606 and are therefore accounted for in accordance with ASC 842, Leases.
−Removed: Each of these contracts is evaluated as a lease arrangement, either as an operating lease or a sales-type capital lease using the current lease classification guidance.
+Added: Standalone lease arrangements are outside the scope of ASC 606 and are therefore accounted for in accordance with ASC 842, Leases ("ASC 842") beginning in 2020 and ASC 840, Leases ("ASC 840") for prior periods.
+Added: Each of these contracts is evaluated as a lease arrangement, either as an operating lease or a sales-type finance lease using the current lease classification guidance.
In a lease arrangement that is a multiple-element arrangement that contains equipment leases and the supply of consumables, the revenue associated with the instrument rental is treated under the lease accounting standard ASC 842, whereas the revenue associated with the consumables, the non-lease component, is recognized in accordance with the ASC 606 revenue standard.
18 unchanged sentences
In 2021, discount rates for the U.S.
−Removed: plans decreased compared to the previous year due to the decrease in the corporate bond rates.
+Added: retiree medical plans increased marginally compared to the previous year due to the increase in the corporate bond rates.
For 2021 and 2020, the discount rates for non-U.S.
−Removed: plans were generally based on published rates for high quality corporate bonds and in 2020, decreased marginally compared to the previous year.
+Added: plans were generally based on published rates for high quality corporate bonds and in 2021, increased marginally compared to the previous year.
If we changed our discount rate by 1 percent, the impact would be less than $1 million in U.S.
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Post-Retirement Benefit Plans, gains and losses are amortized using a separate layer for each year's gains and losses.
−Removed: In the U.S., target asset allocations for our retirement and post-retirement benefit plans are approximately 80 percent to equities and approximately 20 percent to fixed income investments.
+Added: In the U.S., target asset allocations for our retirement and post-retirement benefit plans were approximately 80 percent to equities and approximately 20 percent to fixed income investments as of October 31, 2020 and were changed to approximately 50 percent to equities and approximately 50 percent to fixed income investments as of October 31, 2021.
Our Deferred Profit-Sharing Plan target asset allocation is approximately 60 percent to equities and approximately 40 percent to fixed income investments.
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If we changed our estimated return on assets by 1 percent, the impact would be $5 million on U.S.
−Removed: pension expense and $9 million on non-U.S.
+Added: pension expense and $10 milion on non-U.S.
pension expense.
−Removed: The net periodic pension and post-retirement benefit costs recorded were a $22 million expense in 2020, $10 million expense in 2019 and $3 million benefit in 2018.
−Removed: The year ended October 31, 2020 included a loss on settlement of $4 million.
−Removed: The year ended October 31, 2018 included a settlement gain of $5 million.
+Added: The net periodic pension and post-retirement benefit costs recorded were a $24 million expense in 2021, $22 million expense in 2020 and $10 million expense in 2019.
+Added: The years ended October 31, 2021 and 2020 included a loss on settlement of $1 million and $4 million, respectively.
Goodwill and Purchased Intangible Assets.
+Added: We assess our goodwill and purchased intangible assets for impairment annually or whenever events or changes in circumstances indicate that the carrying value may not be recoverable.
Under the authoritative guidance, we have the option to perform a qualitative assessment to determine whether further impairment testing is necessary.
−Removed: The accounting standard gives an entity the option to first assess qualitative factors to determine whether performing the two-step test is necessary.
+Added: The accounting standard gives an entity the option to first assess qualitative factors to determine whether performing the quantitative test is necessary.
If an entity believes, as a result of its qualitative assessment, that it is more-likely-than-not (i.e., greater than 50% chance) that the fair value of a reporting unit is less than its carrying amount, the quantitative impairment test will be required.
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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.
−Removed: If it is determined, as a result of the qualitative assessment, that it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount, the provisions of authoritative guidance require that we perform a two-step impairment test on goodwill.
−Removed: In the first step, we compare the fair value of each reporting unit to its carrying value.
−Removed: The second step (if necessary) measures the amount of impairment by applying fair-value-based tests to the individual assets and liabilities within each reporting unit.
+Added: If it is determined, as a result of the qualitative assessment, that it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount, then we are required to perform a quantitative impairment test on goodwill to identify and measure the amount of a goodwill impairment loss to be recognized.
+Added: A goodwill impairment loss, if any, is measured as the amount by which a reporting unit's carrying value, including goodwill, exceeds its fair value, not to exceed the carrying amount of goodwill.
As defined in the authoritative guidance, a reporting unit is an operating segment, or one level below an operating segment.
We aggregate components of an operating segment that have similar economic characteristics into our reporting units.
−Removed: In fiscal year 2020, we assessed goodwill impairment for our three reporting units which consisted of three segments:
+Added: In fiscal year 2021, we assessed goodwill impairment for our three reporting units which consisted of our three segments:
life sciences and applied markets, diagnostics and genomics and Agilent CrossLab.
−Removed: We performed a qualitative test for goodwill impairment of the three reporting units as of September 30, 2020.
+Added: We performed a qualitative test for goodwill impairment of the three reporting units, as of September 30, 2021, our annual impairment test date.
Based on the results of our qualitative testing, we believe that it is more-likely-than-not that the fair value of each reporting unit is greater than its respective carrying value.
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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.
−Removed: During 2018, we recorded an impairment charge of $21 million related to purchased intangible assets within the diagnostics and genomics segment that were deemed unrecoverable.
Our indefinite-lived intangible assets are IPR&D intangible assets.
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Each quarter we review the events and circumstances to determine if impairment of indefinite-lived intangible assets is indicated.
−Removed: During fiscal year 2020, we recorded an impairment of in-process research and development of $90 million related to the shutdown of our sequencer development program in our diagnostics and genomics segment.
+Added: During the year ended October 31, 2020, we recorded an impairment of in-process research and development of $90 million related to the shutdown of our sequencer development program in our diagnostics and genomics segment.
During the year ended October 31, 2021 and 2019 there were no impairments of indefinite-lived intangible assets.
4 unchanged sentences
On a quarterly basis, we provide for income taxes based upon an estimated annual effective tax rate.
−Removed: The effective tax rate is highly dependent
−Removed: upon the geographic composition of worldwide earnings, tax regulations governing each region, availability of tax credits and the effectiveness of our tax planning strategies.
+Added: The effective tax rate is highly dependent upon the geographic composition of worldwide earnings, tax regulations governing each region, availability of tax credits and the effectiveness of our tax planning strategies.
We monitor the changes in many factors and adjust our effective income tax rate on a timely basis.
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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.
−Removed: Foreign currency movements for the year ended October 31, 2020 had an overall unfavorable impact on revenue of 1 percentage point when compared to the same period last year.
−Removed: The unfavorable effects of changes in foreign currency exchange rates have decreased revenue by approximately 2 percentage points for the year ended October 31, 2019.
−Removed: When movements in foreign currency exchange rates have a negative impact on revenue, they will also have a positive impact on our costs and expenses.
+Added: Foreign currency movements for the year ended October 31, 2021 had an overall favorable impact on revenue of 2 percentage points when compared to the same period last year.
+Added: Foreign currency movements for the year ended October 31, 2020, had an overall unfavorable impact on revenue of 1 percentage point when compared to 2019.
+Added: When movements in foreign currency exchange rates have a positive impact on revenue, they will also have a negative impact by increasing our costs and expenses.
We calculate the impact of movements in foreign currency exchange rates by applying the actual foreign currency exchange rates in effect during the last month of each quarter of the current year to both the applicable current and prior year periods.
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% of total net revenue:
−Removed: Products 75 % 75 % 76 % — (1) ppt
−Removed: Services and other 25 % 25 % 24 % — 1 ppt
+Added: Products 75 % 75 % 75 % — —
+Added: Services and other 25 % 25 % 25 % — —
Total 100 % 100 % 100 %
Agilent's net revenue of $6,319 million for the year ended October 31, 2021 increased 18 percent when compared to 2020.
−Removed: Foreign currency movements for 2020 had an unfavorable impact of approximately 1 percentage point when compared to 2019.
+Added: Foreign currency movements had an overall favorable impact on revenue growth of 2 percentage points in 2021 when compared to 2020.
+Added: The favorable impact of COVID-related revenue and revenue from our recent acquisition for the year ended October 31, 2021 was not material.
+Added: Net revenue increased in all business segments, geographic regions and key end markets led by strong growth from the pharmaceutical, chemical and energy and diagnostics and clinical markets when compared to 2020.
Agilent's net revenue of $5,339 million increased 3 percent in 2020 when compared to 2019.
−Removed: Foreign currency movements for 2019 had an unfavorable impact of approximately 2 percentage points when compared to 2018.
+Added: Foreign currency movements had an overall unfavorable impact on revenue growth of 1 percentage point in 2020 when compared to 2019.
Product revenue includes revenue generated from the sales of our analytical instrumentation, software and consumables.
Revenue from products increased 19 percent for the year ended October 31, 2021, when compared to 2020.
+Added: The growth in product revenue was driven by increased sales within our liquid chromatography and mass spectrometry businesses with continued strong growth in our nucleic acid solutions and cell analysis businesses.
+Added: Revenue from products increased 3 percent for the year ended October 31, 2020, when compared to 2019.
Revenue in 2020 was impacted by the global COVID-19 pandemic within most of our product lines as customers curtailed equipment spending at various times when countries around the world were in the lockdown phase of the COVID-19 pandemic.
Growth was due to our cell analysis business, automation products and our nucleic acid solutions business.
−Removed: The increase in the cell analysis business is primarily due to the contributions from our acquisitions and the increased demand for our products for use in COVID-19 testing and vaccine research.
−Removed: Revenue from products increased 3 percent for the year ended October 31, 2019, when compared to 2018.
−Removed: The growth in product revenue was impacted by increased sales within our cell analysis business, mainly due to contributions from our recent acquisitions.
−Removed: In addition, product revenue growth was impacted by strong sales in our consumables and nucleic acid solutions businesses partially offset by revenue weakness in our liquid chromatography, gas chromatography, liquid chromatography mass spectrometry and spectroscopy products.
−Removed: Services and other revenue increased 5 percent in 2020 as compared to 2019.
−Removed: Services and other revenue increased 10 percent in 2019 as compared to 2018.
+Added: The increase in the cell analysis business was primarily due to the contributions from our acquisitions and the increased demand for our products for use in COVID-19 testing and vaccine research.
Services and other revenue consist of revenue generated from our three business segments:
3 unchanged sentences
Services in the life science and applied markets business include repair and maintenance and installation services.
−Removed: For the year ended October 31, 2020, the service revenue from the Agilent CrossLab business increased 4 percent when compared to the same period last year, with a 1 percentage point unfavorable currency impact.
+Added: Services and other revenue increased 16 percent in 2021 as compared to 2020.
+Added: Service revenue from the Agilent CrossLab business increased 16 percent, with a 3 percentage point favorable currency impact, for the year ended October 31, 2021 when compared to the same period last year.
+Added: This strength in the Agilent CrossLab service business was evident across all service regions and from contract services, on-demand repairs and nearly all other service types.
+Added: Services sold with instrument sales grew more than twice as fast as the growth in after-market service revenue during that same period.
+Added: For the year ended October 31, 2021, service revenue within our diagnostics and genomics business increased 22 percent when compared to 2020, primarily due to increases from our companion diagnostics and pathology businesses.
+Added: For the year ended October 31, 2021, service revenue within our life sciences and applied markets business increased 16 percent when compared to 2020, primarily due to increases from our cell analysis business.
+Added: Services and other revenue increased 5 percent in 2020 as compared to 2019.
+Added: For the year ended October 31, 2020, the service revenue from the Agilent CrossLab business increased 4 percent when compared to 2019, with a 1 percentage point unfavorable currency impact.
This growth for the year ended October 31, 2020 is reflective of the resilience of the contracted service business throughout the year, as well as the recovery of the on-demand and installation service businesses in the latter half of 2020, as customer sites gradually reopened following their COVID-19 related closures earlier in the year.
Those site re-openings were fastest in China.
−Removed: Services and other revenue in the Agilent CrossLab business increased 9 percent in 2019 as compared to 2018, with a 3 percentage point unfavorable currency impact.
−Removed: Nearly all major service offerings from the Agilent CrossLab business contributed to the revenue growth across all geographic regions.
−Removed: For the year ended October 31, 2020, the service revenue from the diagnostics and genomics business remained flat when compared to the same period last year.
−Removed: Services in the diagnostics and genomics business in 2019 increased due to growth in service revenue throughout all our businesses when compared to 2018.
−Removed: For the year ended October 31, 2020, the service revenue from the life sciences and applied markets business increased 28 percent when compared to the same period last year.
−Removed: The increase in life sciences and applied markets service revenue is due to the additional service revenue within the cell analysis business due to the Lionheart Technologies LLC ("BioTek") acquisition.
−Removed: Services and other revenue in the life sciences and applied markets business increased in 2019 as compared to 2018 due to the impact of acquisitions made in 2019.
+Added: For the year ended October 31, 2020, the service revenue from the diagnostics and genomics business remained flat when compared to 2019.
+Added: For the year ended October 31, 2020, the service revenue from the life sciences and applied markets business increased 28 percent when compared to 2019.
+Added: The increase in life sciences and applied markets service revenue was due to the additional service revenue within the cell analysis business due to the Lionheart Technologies LLC ("BioTek") acquisition.
Net Revenue By Segment
9 unchanged sentences
Revenue in the life sciences and applied markets business increased 18 percent in 2021 when compared to 2020.
−Removed: Foreign currency movements had no overall impact on revenue in 2020 when compared to 2019.
−Removed: Acquisitions had an overall favorable impact on revenue growth of 7 percentage points and primarily impacted the overall growth in the pharmaceutical and academia and government markets.
−Removed: Revenue growth within the life sciences and applied markets was driven by strong growth in the academia and government, the pharmaceutical and the diagnostics and clinical markets with moderate growth from the food market partially offset by declines in revenue within the environmental and forensics and chemical and energy markets.
+Added: Foreign currency movements had an overall favorable impact on revenue growth of 2 percentage points in 2021 when compared to 2020.
+Added: For the year ended October 31, 2021, we saw revenue growth across all key end markets when compared to the same period last year.
+Added: Revenue growth was led by strong demand for our products within the pharmaceutical and the chemical and energy markets when compared to the same periods last year.
Revenue in the life sciences and applied markets business increased 4 percent in 2020 when compared to 2019.
−Removed: Foreign currency movements had an overall unfavorable impact of 2 percentage points in 2019 when compared to 2018.
−Removed: Acquisitions had an overall favorable impact on revenue growth of 4 percentage points and primarily impacted the pharmaceutical and academia and government markets when compared to 2018.
−Removed: For the year ended October 31, 2019, revenue growth was favorable within academia and government, moderate within the pharmaceutical and the environmental and forensics markets which was mostly offset by declines in revenue from the food market and to a lesser extent from the chemical and energy market when compared to 2018.
+Added: Foreign currency movements had no overall impact on revenue growth in 2020 when compared to 2019.
+Added: Revenue growth within the life sciences and applied markets was driven by strong growth in the academia and government, the pharmaceutical and the diagnostics and clinical markets with moderate growth from the food market partially offset by declines in revenue within the environmental and forensics and chemical and energy markets.
Revenue in the diagnostics and genomics business increased 24 percent in 2021 when compared to 2020.
−Removed: Foreign currency movements had an overall unfavorable impact on revenue of 1 percentage point in 2020 when compared to 2019.
−Removed: Revenue growth within the diagnostics and genomics business was driven by strong growth in our nucleic acid solutions and biomolecular analysis businesses partially offset by declines in our genomics business.
+Added: Foreign currency movements had an overall favorable impact on revenue growth of 3 percentage points in 2021 when compared to
+Added: For the year ended October 31, 2021, we saw revenue growth across all key end markets when compared to the same period last year.
+Added: Revenue growth was strong within the pharmaceutical market led by performance from our nucleic acid solutions and biomolecular analysis businesses.
+Added: Revenue growth was strong within the diagnostics and clinical markets led by performance from our pathology, companion diagnostics and genomics businesses.
Revenue in the diagnostics and genomics business increased 2 percent in 2020 when compared to 2019.
−Removed: Foreign currency movements had an overall unfavorable impact on revenue of 3 percentage points in 2019 when compared to 2018.
−Removed: Revenue growth within the diagnostics and clinical market and the pharmaceutical market continued to be strong led by performance from our nucleic acid solutions and biomolecular analysis businesses.
+Added: Foreign currency movements had an overall unfavorable impact on revenue growth of 1 percentage point in 2020 when compared to 2019.
+Added: Revenue growth within the diagnostics and genomics business was driven by strong growth in our nucleic acid solutions and biomolecular analysis businesses partially offset by declines in our genomics business.
Revenue in the Agilent CrossLab business increased 16 percent in 2021 when compared to 2020.
−Removed: Foreign currency movements had an overall unfavorable impact on revenue of 1 percentage point in 2020 when compared to 2019.
−Removed: Revenue growth within Agilent CrossLab business was strong within the pharmaceutical and food markets which was partially offset by declines in the academia and government and clinical and diagnostics markets.
+Added: Foreign currency movements had an overall favorable impact on revenue growth of 4 percentage points in 2021 when compared to 2020.
+Added: For the year ended October 31, 2021, we saw revenue growth across all key end markets led by strong growth from the pharmaceutical and chemical and energy and food markets when compared to the same period last year.
Revenue generated by Agilent CrossLab increased 3 percent in 2020 when compared to 2019.
−Removed: Foreign currency movements had an overall unfavorable impact of 3 percentage points in 2019 when compared to 2018.
−Removed: Our performance in the Agilent CrossLab business saw continued growth in all key end markets with strong growth in the pharmaceutical, academia and government and food markets compared to 2018.
+Added: Foreign currency movements had an overall unfavorable impact on revenue growth of 1 percentage point in 2020 when compared to 2019.
+Added: Revenue growth within Agilent CrossLab business was strong within the pharmaceutical and food markets which was partially offset by declines in the academia and government and clinical and diagnostics markets.
Costs and Expenses
3 unchanged sentences
(in millions, except margin data)
−Removed: Gross margin on products 55.0 % 56.7 % 57.4 % (2) ppts (1) ppt
−Removed: Gross margin on services and other 47.5 % 47.3 % 45.3 % — 2 ppts
+Added: Gross margin on products 56.3 % 55.0 % 56.7 % 1 ppt.
+Added: Gross margin on services and other 46.7 % 47.5 % 47.3 % (1) ppt.
Total gross margin 53.9 % 53.1 % 54.3 % 1 ppt.
2 unchanged sentences
Operating margin 21.3 % 15.8 % 18.2 % 6 ppts.
+Added: Total gross margin for the year ended October 31, 2021 increased 1 percentage point when compared to 2020.
+Added: Total gross margin increased due to higher sales volume and favorable product mix which was partially offset by higher wages and variable pay, higher shipping and logistics costs, higher intangible amortization expense and higher share-based compensation expense.
Total gross margin for the year ended October 31, 2020 decreased 1 percentage point when compared to 2019.
Gross margin declined due to the impacts of pricing pressure, higher intangible amortization expense, higher wages, net unfavorable currency impact and higher fixed costs related to the new manufacturing facility in Frederick, Colorado, partially offset by lower period and travel costs.
−Removed: Total gross margin for the year ended October 31, 2019 was flat when compared to 2018.
−Removed: Total gross margin reflects the impact of efficiency gains, lower inventory charges and favorable currency impact on costs offset by higher wages and variable pay, product mix, higher expenses related to tariffs and higher amortization expense of intangible assets.
Gross inventory charges were $29 million in 2021, $28 million in 2020 and $19 million in 2019.
Sales of previously written down inventory were $8 million in 2021, $7 million in 2020 and $6 million in 2019.
−Removed: Research and development expenses increased 22 percent for the year ended October 31, 2020 when compared to 2019.
+Added: Research and development expenses for the year ended October 31, 2021 decreased 11 percent when compared to 2020.
+Added: Excluding the intangible and other assets impairments recorded in 2020, research and development expenses for the year ended October 31, 2021 increased 11 percent due to increased wages and variable pay, higher program investments in our life sciences and applied markets and diagnostics and genomics businesses, additional expenses related to our recent acquisition, and higher share-based compensation expense.
+Added: Research and development expenses for the year ended October 31, 2020 increased 22 percent when compared to 2019.
Research and development expenses increased primarily due to intangible and other asset impairments of $97 million related to the shutdown of our sequencer development program.
−Removed: The increase is also due to higher wages and additional expenses related to our acquisition of BioTek partially offset by lower discretionary expenditures including lower travel costs and favorable currency impact.
−Removed: Research and development expenses increased 5 percent for the year ended October 31, 2019 when compared to 2018.
−Removed: Research and development expenses increased due to increased program spending on new products related to all of our businesses in addition to higher wages and variable pay and additional expenses related to acquired businesses partially offset by favorable currency movements when compared to spending in 2018.
+Added: The increase was also due to higher wages and additional expenses related to our acquisition of BioTek partially offset by lower discretionary expenditures including lower travel costs and favorable currency impact.
Selling, general and administrative expenses increased 8 percent in 2021 when compared to 2020.
−Removed: The increase in selling, general and administrative expenses was due to higher wages, higher intangible amortization expense and higher transformational initiative expenses, which was partially offset by lower discretionary expenditures including lower travel costs and favorable currency impact.
+Added: The increase was due to higher wages and variable pay, higher commissions and higher share-based compensation expense partially offset by a decrease related to the change in the fair value of contingent consideration for our recent acquisition, lower legal costs and lower transformational initiatives expenses.
Selling, general and administrative expenses increased 2 percent in 2020 compared to 2019.
−Removed: Selling, general and administrative expenses increased due to increased wages and variable pay, higher commissions, higher legal expenses, higher acquisition and integration costs and higher transformation initiatives expenses partially offset by operational efficiencies and savings and favorable currency impact.
−Removed: Total operating margin decreased 2 percentage points for the year ended October 31, 2020, when compared to 2019.
+Added: The increase in selling, general and administrative expenses was due to higher wages, higher intangible amortization
+Added: expense and higher transformational initiative expenses, which was partially offset by lower discretionary expenditures including lower travel costs and favorable currency impact.
+Added: Total operating margin for the year ended October 31, 2021 increased 6 percentage points when compared to 2020.
+Added: Operating margin increased due to higher sales volume and increased gross margin partially offset by increases in wages and variable pay, commissions, share-based compensation expense and amortization of intangible assets.
+Added: Total operating margin for the year ended October 31, 2020, decreased 2 percentage points when compared to 2019.
Operating margin declined due to intangible and other asset impairments, higher wages, higher intangible amortization expense and higher transformational initiative expenses partially offset by lower discretionary expenditures including lower travel costs and favorable currency impact.
−Removed: Total operating margin was flat for the year ended October 31, 2019, when compared to 2018.
−Removed: Total operating margin was impacted by higher wages and variable pay, higher acquisition and integration costs, higher expenses related to tariffs and higher transformation initiatives expenses offset by operational efficiencies and savings and favorable currency impact.
Interest income for the year ended October 31, 2021, 2020 and 2019 was $2 million, $8 million and $36 million, respectively.
−Removed: The decrease in interest income in 2020 was primarily due to lower interest rates for our cash and cash equivalents.
+Added: The decrease in interest income in 2021 and 2020 was primarily due to lower interest rates for our cash and cash equivalents.
Interest expense for the years ended October 31, 2021, 2020 and 2019 was $81 million, $78 million and $74 million, respectively, and relates to the interest charged on our senior notes, credit facilities, commercial paper and the amortization of the deferred loss recorded upon termination of the forward starting interest rate swap contracts partially offset by the amortization of deferred gains recorded upon termination of interest rate swap contracts.
4 unchanged sentences
The costs associated with these services are reported within income from operations.
−Removed: Other income (expense), net also includes net gains on the fair value of equity investments of approximately $27 million and income of $22 million related to the settlement of our legal claim against Twist Bioscience Corporation.
−Removed: For the year ended October 31, 2019, other income (expense), net includes income of $12 million related to the provision of site service costs to, and lease income from, Keysight Technologies, Inc.
−Removed: ("Keysight") and $9 million loss on the extinguishment of debt.
−Removed: For the year ended October 31, 2018, other income (expense), net includes the net gain of $20 million related to the step-up of our initial investment in Lasergen, $15 million of income related to a special one-time settlement with a third-party, a $5 million pension settlement gain related to the substitutional portion of the defined benefit pension plans established under the Japanese Welfare Pension Insurance Law and income of $12 million related to the provision of site service costs to, and lease income from, Keysight.
+Added: Other income (expense), net includes a $17 million loss on extinguishment of debt and net gains on the fair value of equity securities of approximately $98 million.
+Added: For the year ended October 31, 2020, other income (expense), net includes income of $12 million related to the provision of site service costs to, and lease income from, Keysight.
+Added: The costs associated with these services are reported within income from operations.
+Added: Other income (expense), net also includes net gains on the fair value of equity securities of approximately $27 million and income of $22 million related to the settlement of our legal claim against Twist Bioscience Corporation.
+Added: For the year ended October 31, 2019, other income (expense), net includes income of $12 million related to the provision of site service costs to, and lease income from, Keysight and $9 million loss on the extinguishment of debt.
Years Ended October 31,
2 unchanged sentences
Provision (benefit) for income taxes $ 150 $ 123 $ (152)
−Removed: For 2020, the company's income tax expense was $123 million with an effective tax rate of 14.6 percent.
+Added: For 2021, our income tax expense was $150 million with an effective tax rate of 11 percent.
+Added: For the year ended October 31, 2021, our effective tax rate and the resulting provision for income taxes were impacted by the discrete benefit of $93 million related to the release of tax reserves in various jurisdictions due to audit settlements and the expiration of statutes of limitations.
+Added: The income taxes for the year ended October 31, 2021 also include the excess tax benefits from stock-based compensation of $29 million.
+Added: For 2020, our income tax expense was $123 million with an effective tax rate of 14.6 percent.
For the year ended October 31, 2020, our effective tax rate and the resulting provision for income taxes were impacted by foreign income taxed at lower rates.
−Removed: For 2019, the company's income tax benefit was $152 million with an effective tax rate of (16.5) percent.
+Added: For 2019, our income tax benefit was $152 million with an effective tax rate of (16.5) percent.
For the year ended October 31, 2019, our effective tax rate and the resulting provision for income taxes were significantly impacted by the discrete benefit of $299 million related to the extension of the company’s tax incentive in Singapore.
−Removed: For 2018, the company's income tax expense was $630 million with an effective tax rate of 66.6 percent.
−Removed: For the year ended October 31, 2018, our effective tax rate and the resulting provision for income taxes were significantly impacted by the discrete charge of $552 million related to the enactment of the U.S.
−Removed: Tax Cuts and Jobs Act (the “Tax Act”) consisting of (1) an expense of $499 million of U.S.
−Removed: transition tax and correlative items on deemed repatriated earnings of non-U.S.
−Removed: subsidiaries and (2) an expense of $53 million associated with the impact on deferred taxes resulting from the decreased U.S.
−Removed: corporate tax rate.
−Removed: The company has negotiated tax holidays in several different jurisdictions, most significantly in Singapore.
−Removed: The tax holidays provide lower rates of taxation on certain classes of income and require various thresholds of investments and employment or specific types of income in those jurisdictions.
+Added: We have negotiated a tax holiday in Singapore.
+Added: The tax holiday provides a lower rate of taxation on certain classes of income and requires various thresholds of investments and employment or specific types of income.
In December 2018, the tax holiday in Singapore was renegotiated and extended through 2027.
−Removed: As a result of the incentives, the impact of the tax holidays decreased income taxes by $71 million, $368 million, and $87 million in 2020, 2019, and 2018, respectively.
−Removed: The benefit of the tax holidays on net income per share (diluted) was approximately $0.23, $1.16, and $0.27 in 2020, 2019 and 2018, respectively.
+Added: As a result of the incentive, the impact of the tax holiday decreased income taxes by $35 million, $71 million, and $368 million in 2021, 2020, and 2019, respectively.
+Added: The benefit of the tax holiday on net income per share (diluted) was approximately $0.11, $0.23, and $1.16 in 2021, 2020 and 2019, respectively.
Of the $1.16 benefit of the tax incentives on net income per share (diluted) in 2019, $0.94 of the benefit relates to one-time items from the extension of the company’s tax incentive in Singapore.
38 unchanged sentences
Life science and applied markets business revenue in 2021 increased 18 percent compared to 2020.
−Removed: Foreign currency movements for 2020 had no impact on revenue growth when compared to the same period last year.
−Removed: Acquisitions had an overall favorable impact on revenue growth of 7 percentage points when compared to the same period last year.
+Added: Foreign currency movements had an overall favorable impact on revenue growth of 2 percentage points in 2021 when compared to the same period last year.
+Added: Geographically, revenue increased 21 percent in the Americas with no currency impact, increased 22 percent
+Added: in Europe with a 5 percentage point favorable currency impact and increased 14 percent in Asia Pacific with a 3 percentage point favorable currency impact.
+Added: In 2021, revenue increases were broad based across our portfolio driven primarily by liquid chromatography, liquid chromatography mass spectrometry, cell analysis and spectroscopy products when compared to the same period last year.
+Added: End market revenue performance in 2021 was mixed with pharmaceutical, chemical and energy, diagnostics and clinical and food markets delivering strong results, academia and government delivering moderate results and forensics and environmental markets delivering modest results.
+Added: The revenue growth in the pharmaceutical end market was driven by liquid chromatography, liquid chromatography mass spectrometry and cell analysis products led by broad based strength across all regions.
+Added: Revenue growth in the chemical and energy market was mainly driven by strength in spectroscopy, vacuum, gas chromatography, and gas chromatography mass spectrometry products with broad based strength across regions.
+Added: Revenue growth in the food and diagnostics and clinical markets was across all products and regions.
+Added: Revenue growth in the academia and government end market was moderate with strong growth in cell analysis partially offset by declines in gas phase mass spectrometry and spectroscopy products.
+Added: Environmental and forensics delivered modest growth with vacuum products delivering strong growth and the rest of the products delivering modest results.
+Added: Life science and applied markets business revenue in 2020 increased 4 percent compared to 2019.
+Added: Foreign currency movements for 2020 had no overall impact on revenue growth when compared to 2019.
+Added: Acquisitions had an overall favorable impact on revenue growth of 7 percentage points when compared to 2019.
Geographically, revenue increased 13 percent in the Americas with a 1 percentage point unfavorable currency impact, decreased 2 percent in Europe with no currency impact and increased 1 percent in Asia Pacific with no currency impact.
3 unchanged sentences
The growth in the diagnostics and clinical business was also due to the strength in liquid phase mass spectrometry and cell analysis products.
−Removed: Life science and applied markets business revenue in 2019 increased 1 percent compared to 2018.
−Removed: Foreign currency movements for 2019 had an overall unfavorable currency impact of 2 percentage points on revenue growth when compared to 2018.
−Removed: Acquisitions had an overall favorable impact on revenue growth of 3 percentage points when compared to 2018.
−Removed: Geographically, revenue increased 12 percent in the Americas with a 1 percentage point unfavorable currency impact, decreased 4 percent in Europe with a 3 percentage point unfavorable currency impact and decreased 2 percent in Asia Pacific with a 1 percentage point unfavorable currency impact.
−Removed: From a product standpoint, revenue was driven by strength in sales in our gas chromatography mass spectrometry and cell analysis primarily due to contributions from our acquisitions and informatics businesses which was offset by weakness in our liquid chromatography, gas chromatography, liquid chromatography mass spectrometry and spectroscopy products when compared to 2018.
−Removed: End market performance in 2019 was mixed with the pharmaceutical, academia and government, diagnostics and clinical and forensics markets delivering strong revenue growth, environmental delivering moderate growth while chemical and energy markets decreased modestly, and food delivered weak results compared to 2018.
Looking forward, despite short term uncertainties and the adverse effects of the COVID-19 pandemic, we are optimistic about our long-term growth opportunities in the life sciences and applied markets as our broad portfolio of products and solutions are well suited to address customer needs.
7 unchanged sentences
(in millions, except margin data)
−Removed: Total gross margin 59.2 % 61.0 % 61.3 % (2) ppts —
+Added: Total gross margin 59.8 % 59.2 % 61.0 % 1 ppt.
Research and development $ 246 $ 219 $ 216 12% 1%
Selling, general and administrative $ 721 $ 650 $ 646 11% 1%
−Removed: Operating margin 22.9 % 23.5 % 23.9 % (1) ppt —
+Added: Operating margin 25.6 % 22.9 % 23.5 % 3 ppts.
Income from operations $ 722 $ 548 $ 542 32% 1%
+Added: Gross margin increased 1 percentage point in 2021 compared to 2020.
+Added: Gross margin was favorably impacted by higher sales volume which was partially offset by higher wage and variable pay, higher material costs and unfavorable currency impact and hedging losses.
Gross margin decreased 2 percentage points in 2020 compared to 2019.
Gross margin declined due to the increased impact of pricing pressures and a net unfavorable impact from currency movements partially offset by favorable product mix and material cost savings.
−Removed: Gross margin was flat in 2019 compared to 2018.
−Removed: Gross margin was impacted by unfavorable mix and higher expenses related to tariffs which was offset by favorable currency impact.
Research and development expenses increased 12 percent in 2021 when compared to 2020.
+Added: Research and development expenses increased due to higher wage and variable pay, higher program investments in informatics and cell analysis, unfavorable currency impact and higher share-based compensation expense.
+Added: Research and development expenses increased 1 percent in 2020 when compared to 2019.
Research and development expenses increased due to higher wages and additional expenses related to the BioTek acquisition partially offset by lower discretionary spending and favorable impact from foreign currency movements.
−Removed: Research and development expenses decreased 1 percent in 2019 when compared to 2018.
−Removed: Research and development decreased due to lower discretionary spending and a favorable currency offset by additional expenses related to acquisitions as well as higher wages and variable pay.
Selling, general and administrative expenses increased 11 percent in 2021 compared to 2020.
−Removed: Selling, general and administrative expenses increased due to higher wages and additional expenses related to the BioTek acquisition partially offset by favorable impact from foreign currency movements and lower travel costs.
+Added: Selling, general and administrative expenses increased due to higher wages and variable pay, higher commissions, higher share-based compensation expense and unfavorable currency movements.
Selling, general and administrative expenses increased 1 percent in 2020 compared to 2019.
−Removed: Selling, general and administrative expenses were impacted by higher wages and variable pay and additional expenses related to our recent acquisitions partially offset by operational savings and a favorable currency impact.
+Added: Selling, general and administrative expenses increased due to higher wages and additional expenses related to the BioTek acquisition partially offset by favorable impact from foreign currency movements and lower travel costs.
+Added: Operating margin increased 3 percentage points in 2021 compared to 2020.
+Added: Operating margin increased due to higher sales volume and favorable impact of currency on revenue which was partially offset by higher wages and variable pay, unfavorable impact of currency on expenses and higher share-based compensation.
Operating margin decreased 1 percentage point in 2020 compared to 2019.
Operating margin declined due to additional expenses related to our recent acquisitions and unfavorable gross margin due to pricing pressures partially offset by operational savings and favorable currency impact.
−Removed: Operating margin was relatively flat in 2019 compared to 2018.
−Removed: Operating margin reflects relatively flat revenue growth partially offset by an increase in selling, general and administrative expenses.
Income from Operations
−Removed: Income from operations in 2020 increased by $6 million or increased by 1 percent when compared to 2019 on a revenue increase of $90 million.
+Added: Income from operations in 2021 increased by $174 million or 32 percent when compared to 2020 on a revenue increase of $431 million.
+Added: The increase in income from operations was primarily due to higher sales volume.
+Added: Income from operations in 2020 increased by $6 million or 1 percent when compared to 2019 on a revenue increase of $90 million.
The increase in income from operations was mainly due to the impact of the BioTek acquisition.
−Removed: Income from operations in 2019 decreased by $1 million or was relatively flat when compared to 2018 on a revenue increase of $32 million.
−Removed: The decrease was due to the impact of acquisitions.
Diagnostics and Genomics
6 unchanged sentences
The broad portfolio of offerings includes immunohistochemistry ("IHC"), in situ hybridization ("ISH"), hematoxylin and eosin ("H&E") staining and special staining.
−Removed: Fourth, we also collaborate with a number of major pharmaceutical companies to develop new potential pharmacodiagnostics, also known as companion diagnostics, which may be used to identify patients most likely to benefit from a specific targeted therapy.
+Added: Fourth, we also collaborate with a number of major pharmaceutical companies to develop new potential tissue and liquid-based pharmacodiagnostics, also known as companion diagnostics, which may be used to identify patients most likely to benefit from a specific targeted therapy.
Fifth, the reagent partnership business is a provider of reagents used for turbidimetry and flow cytometry.
6 unchanged sentences
Net revenue $ 1,296 $ 1,047 $ 1,021 24% 2%
+Added: Diagnostics and genomics business revenue increased 24 percent in 2021 compared to 2020.
+Added: Foreign currency movements for 2021 had an overall favorable impact on revenue growth of 3 percentage points when compared to the same period last year.
+Added: Geographically, revenue increased 35 percent in the Americas with a 1 percentage point favorable currency impact, increased 12 percent in Europe with a 5 percentage point favorable currency impact and increased 16 percent in Asia Pacific with a 2 percentage point favorable currency impact.
+Added: The increase in the Americas was driven by strong performance in our nucleic acid solutions and genomics portfolios.
+Added: In Europe, we saw strong demand for our genomics solutions as well as an increase in our companion diagnostics and pathology businesses.
+Added: In Asia Pacific, revenue growth was driven by our pathology and genomics product portfolios.
+Added: In 2021 revenue performance in the diagnostics and genomics business was led by double-digit revenue growth in our nucleic acid solutions, pathology and genomics businesses.
+Added: The broad-based growth in the genomics product portfolio was driven by our next generation sequencing quality control product portfolio.
+Added: Pathology testing volume returning to pre-pandemic levels drove strong growth throughout all pathology product families.
+Added: All key end markets had revenue increases when compared to 2020.
Diagnostics and genomics business revenue in 2020 increased 2 percent compared to 2019.
−Removed: Foreign currency movements for 2020 had an overall unfavorable impact on revenue growth of 1 percentage point when compared to the same period last year.
+Added: Foreign currency movements had an overall unfavorable impact on revenue growth of 1 percentage point in 2020 when compared to 2019.
Geographically, revenue increased 2 percent in the Americas with no currency impact, increased 1 percent in Europe with no currency impact and increased 7 percent in Asia Pacific with no currency impact.
6 unchanged sentences
The diagnostics and clinical research end markets remain strong long-term and growing driven by an aging population and lifestyle developments such as poor diet and physical inactivity.
−Removed: Diagnostics and genomics business revenue in 2019 increased 8 percent compared to 2018.
−Removed: Foreign currency movements for 2019 had an overall unfavorable impact on revenue growth of 3 percentage points when compared to 2018.
−Removed: Geographically,
−Removed: revenue increased 17 percent in the Americas with a 1 percentage point unfavorable currency impact, was flat in Europe with a 4 percentage point unfavorable currency impact and increased 2 percent in Asia Pacific with a 2 percentage point unfavorable currency impact.
−Removed: The growth in Americas was driven by strong growth in our nucleic acid solutions, companion diagnostics and biomolecular analysis business.
−Removed: In Europe we saw strong growth in the biomolecular analysis business offset by softness in the genomics business.
−Removed: In Asia Pacific the growth was driven by our biomolecular analysis business and negatively impacted by softness in the genomics business.
−Removed: The revenue growth in 2019 was led by strong revenue performance in our nucleic acid solutions, companion diagnostics and biomolecular analysis business.
−Removed: The diagnostics and clinical research market remains strong and growing driven by an aging population and unhealthy lifestyle developments such as poor diet and physical inactivity.
−Removed: Looking forward, although we see short-term impacts to routine and cancer testing due to COVID-19 which will affect our revenue growth, we are optimistic about our long-term growth opportunities in our end markets and continue to invest in expanding and improving our applications and solutions portfolio.
−Removed: We remain positive about our growth in our end markets as our product portfolio around OMNIS, PD-L1 assays and SureFISH continue to gain strength with our customers in clinical oncology applications, and our next generation sequencing target enrichment solutions continue to be adopted.
+Added: Looking forward, we are optimistic about our long-term growth opportunities in our end markets and continue to invest in expanding and improving our applications and solutions portfolio.
+Added: We remain positive about our growth in our end markets as our product portfolio around OMNIS, PD-L1 assays and SureFISH continues to gain strength with our customers in clinical oncology applications, and our next generation sequencing target enrichment solutions continue to be adopted.
Market demand in the nucleic acid solutions business related to therapeutic oligo programs continues, and with our newly opened and planned extension of our nucleic acid solutions production facility in Frederick, Colorado, we are well positioned to serve more of the market demand.
+Added: The acquisition of Resolution Bioscience will expand our capabilities in NGS-based cancer diagnostics and provide innovative technology to further serve the needs of the fast-growing precision medicine market.
We will continue to invest in research and development and seek to expand our position in developing countries and emerging markets.
5 unchanged sentences
(in millions, except margin data)
−Removed: Total gross margin 51.9 % 54.7 % 56.3 % (3) ppts (2) ppts
+Added: Total gross margin 52.8 % 51.9 % 54.7 % 1 ppt.
Research and development $ 128 $ 114 $ 125 12% (9)%
Selling, general and administrative $ 283 $ 238 $ 248 19% (4)%
−Removed: Operating margin 18.3 % 18.2 % 18.4 % — —
+Added: Operating margin 21.0 % 18.3 % 18.2 % 3 ppts.
Income from operations $ 273 $ 192 $ 185 42% 3%
+Added: Gross margin increased 1 percentage point in 2021 when compared to 2020.
+Added: Gross margin increased due to higher sales volume more than offsetting higher wages, variable pay, inventory charges and logistics expenses.
Gross margin decreased 3 percentage points in 2020 when compared to 2019.
Gross margin was impacted by unfavorable product mix and higher fixed costs related to the new manufacturing facility in Frederick, Colorado, partially offset by lower period and travel costs.
−Removed: Gross margin decreased 2 percentage points in 2019 when compared to 2018.
−Removed: The decrease in gross margin was driven by an unfavorable product mix and a higher fixed cost structure due to the addition of a second nucleic acid manufacturing facility that offset gains from higher sales volumes.
+Added: Research and development expenses increased 12 percent in 2021 when compared to 2020.
+Added: Research and development expenses included higher program investments related to satisfying regulatory requirements such as the EU IVDR guidelines, wages and variable pay, and additional expenses related to our recent acquisition which were partially offset by the shutdown of the sequencer development program in 2020.
Research and development expenses decreased 9 percent in 2020 when compared to 2019.
Research and development expenses decreased due to the shutdown of our sequencer development program and a reduction in discretionary expenditures including travel costs.
−Removed: Research and development expenses increased 15 percent in 2019 when compared to 2018.
−Removed: The increase was due to additional expenses related to prior year's acquisitions, higher wages and variable pay and increased spending around the development of clinical applications and solutions.
+Added: Selling, general and administrative expenses increased 19 percent in 2021 when compared to 2020.
+Added: Selling, general and administrative expenses increased due to higher commissions, share based compensation expenses, higher wages and variable pay.
Selling, general and administrative expenses decreased 4 percent in 2020 when compared to 2019.
Selling, general and administrative expenses decreased due to a reduction in discretionary expenditures including travel costs partially offset by an increase in wages.
−Removed: Selling, general and administrative expenses were flat in 2019 when compared to 2018.
−Removed: Selling, general and administrative expenses were impacted by efficiency gains offsetting higher wages and variable pay.
−Removed: Operating margin was relatively flat in 2020 when compared to 2019.
+Added: Operating margin increased 3 percentage points in 2021 when compared to 2020.
+Added: Operating margin improved as revenue growth more than offset the increase in commissions, wages and variable pay.
+Added: Operating margin was flat in 2020 when compared to 2019.
Operating margin was aided by savings in operating expenses which were offset by gross margin decline.
−Removed: Operating margin was relatively flat in 2019 when compared to 2018.
−Removed: Operating margin was impacted by higher sales volume, offsetting the gross margin deterioration and the increase in research and development spending.
Income from Operations
Income from operations in 2021 increased by $81 million or 42 percent when compared to 2020 on a revenue increase of $249 million.
−Removed: The increase was driven by gains from higher volume and lower operating expenses more than offsetting the gross margin percentage decline.
+Added: Income from operations increased due to strong sales performance.
Income from operations in 2020 increased by $7 million or 3 percent when compared to 2019 on a revenue increase of $26 million.
−Removed: The increase was due to higher volume partially offset by the gross margin percentage decline and higher research and development expenses.
+Added: The increase was driven by gains from higher volume and lower operating expenses more than offsetting the gross margin percentage decline.
Agilent CrossLab
10 unchanged sentences
Total net revenue $ 2,200 $ 1,900 $ 1,840 16% 3%
−Removed: Agilent CrossLab business revenue in 2020 increased 3 percent when compared to 2019.
−Removed: Foreign currency movements for 2020 had an overall unfavorable impact of 1 percentage point when compared to 2019.
+Added: Agilent CrossLab business revenue increased 16 percent in 2021 when compared to 2020.
+Added: Foreign currency movements for 2021 had an overall favorable impact on revenue growth of 4 percentage points when compared to 2020.
+Added: Geographically, revenue increased 13 percent in the Americas with no currency impact, increased 15 percent in Europe with a 6 percentage point favorable currency impact and increased 18 percent in Asia Pacific with a 5 percentage point favorable currency impact.
+Added: During the year ended October 31, 2021, the solid growth across the regions reflected consistently high demand for products and services across the entire product portfolio and end markets.
+Added: Revenue growth also reflected last year's weakened sales when many of our customers closed their sites or reduced their operating capacity in response to the COVID-19 pandemic.
+Added: Agilent CrossLab business revenue increased 3 percent in 2020 when compared to 2019.
+Added: Foreign currency movements had an overall unfavorable impact on revenue growth of 1 percentage point in 2020 when compared to 2019.
Geographically, revenue was flat in the Americas with a 1 percentage point unfavorable currency impact, increased 2 percent in Europe with a 1 percentage point favorable currency impact and increased 7 percent in Asia Pacific with a 1 percentage point unfavorable currency impact.
3 unchanged sentences
Among our major end markets, the pharmaceutical market and the food market generated the strongest revenue growth when compared to 2019.
−Removed: Agilent CrossLab business revenue in 2019 increased 8 percent when compared to 2018.
−Removed: Foreign currency movements for 2019 had an overall unfavorable impact of 3 percentage points when compared to 2018.
−Removed: Acquisitions in 2018 added 1 percentage point to the revenue growth reported for 2019.
−Removed: Revenue growth in 2019 was driven broadly by our entire services and consumables portfolio.
−Removed: Geographically, revenue increased 9 percent in the Americas with a 1 percentage point unfavorable currency impact, increased 5 percent in Europe with a 5 percentage point unfavorable currency impact and increased 10 percent in Asia Pacific with a 3 percentage point unfavorable currency impact.
−Removed: Agilent CrossLab business saw strong revenue growth in all key end markets, except in the diagnostics and clinical market, when compared to 2018.
−Removed: Looking forward, the Agilent CrossLab portfolio of products and services capabilities is well positioned to continue to succeed in our key end markets.
−Removed: With less predictable access to customer sites during the global COVID-19 pandemic, the business is taking advantage of digital and remote capabilities to offer services and consumables to customers.
−Removed: Despite the current COVID-19 environment, we remain confident about the long-term growth opportunities as customer feedback remains very positive on the value Agilent CrossLab brings to customer labs.
−Removed: Geographically, the business is well diversified across all regions to take advantage of local market opportunities as they reopen to commerce.
+Added: Looking forward, the Agilent CrossLab products and services are well positioned to continue their success in our key end markets and with a growing installed base of instruments to support.
+Added: We have been taking advantage of digital and remote capabilities to offer services and consumables to customers and will continue to do so.
+Added: Geographically, the business is well diversified across all regions to take advantage of local market opportunities and to hedge against weakness in any one region.
Gross Margin and Operating Margin
4 unchanged sentences
(in millions, except margin data)
−Removed: Total gross margin 52.2 % 51.8 % 50.4 % — 1 ppt
+Added: Total gross margin 52.3 % 52.2 % 51.8 % — —
Research and development $ 60 $ 58 $ 58 5% —
Selling, general and administrative $ 473 $ 417 $ 421 13% (1)%
−Removed: Operating margin 27.2 % 25.8 % 22.8 % 1 ppt 3 ppts
+Added: Operating margin 28.1 % 27.2 % 25.8 % 1 ppt 1 ppt
Income from operations $ 618 $ 516 $ 475 20% 9%
+Added: Gross margin for products and services was flat in 2021 when compared to 2020.
+Added: Higher volumes and targeted price increases did help elevate margins, but those benefits were offset by higher service delivery costs, higher variable pay and higher hedging losses.
Gross margin for products and services was relatively flat in 2020 when compared to 2019.
−Removed: Gross margin benefited from lower service delivery costs which include travel, parts and labor as well as improved productivity in manufacturing in the consumables business.
+Added: Gross margin benefited from lower service delivery costs which included travel, parts and labor as well as improved productivity in manufacturing in the consumables business.
Those operational gains were offset by a net unfavorable impact from currency movements.
−Removed: Gross margin for products and services increased 1 percentage point in 2019 when compared to 2018.
−Removed: Gross margin was impacted by higher sales volume, combined with efficiency gains in the service delivery operation and in the logistics and manufacturing processes for the consumables business.
−Removed: Some of those gains were offset by higher wages and higher variable costs and increased headcount.
−Removed: Research and development expenses were relatively flat in 2020 when compared to 2019.
−Removed: The higher wages and variable pay in research and development expenses were offset by lower travel costs and the reduction of other discretionary expenditures.
Research and development expenses increased 5 percent in 2021 when compared to 2020.
−Removed: Research and development increased due to higher wages and higher variable pay and additional research and development expenditures from acquisitions made in 2018.
+Added: Research and development investment within the Agilent CrossLab business increased due to higher wages and a continued focus on digital service offerings.
+Added: Research and development expenses were relatively flat in 2020 when compared to 2019.
+Added: The higher wages and
+Added: variable pay in research and development expenses were offset by lower travel costs and the reduction of other discretionary expenditures.
+Added: Selling, general and administrative expenses increased 13 percent in 2021 when compared to 2020.
+Added: Selling, general and administrative expenses increased due to higher wages and variable pay, sales commissions and share-based compensation expense.
Selling, general and administrative expenses decreased 1 percent in 2020 when compared to 2019.
Selling, general and administrative expenses decreased due to favorable currency movements, reduced travel and training by the sales organization, lower sales commissions, and a reduction in discretionary expenditures which were partially offset by higher wages.
−Removed: Selling, general and administrative expenses increased 2 percent in 2019 when compared to 2018.
−Removed: Selling, general and administrative expenses were higher due to additional operating expenses from our acquisitions made in 2018, in addition to higher wages and higher variable pay.
−Removed: Those increases were partially offset by a favorable impact from foreign currency movements.
Operating margin increased 1 percentage point in 2021 when compared to 2020.
+Added: Operating margin grew slightly in 2021 due to higher sales volume offset by higher wages and variable pay, higher service delivery costs and hedging losses.
+Added: Operating margin increased 1 percentage point in 2020 when compared to 2019.
The increase was primarily due to the growth in revenue while lowering service delivery and selling costs and the reduction of discretionary expenditures, partially offset by higher wages.
−Removed: Operating margin increased 3 percentage points in 2019 when compared to 2018.
−Removed: The increase in operating margin was driven by the higher sales volume, combined with efficiency gains across the service delivery operations, order fulfillment processes and other operations.
Income from Operations
Income from operations in 2021 increased by $102 million or 20 percent when compared to 2020 on a revenue increase of $300 million.
−Removed: The increase was primarily due to the growth in revenue while lowering service delivery and selling costs and the reduction of discretionary expenditures, partially offset by higher wages.
+Added: Income from operations increased primarily due to higher sales.
Income from operations in 2020 increased by $41 million or 9 percent when compared to 2019 on a revenue increase of $60 million.
−Removed: The increase was driven by the higher sales volume, combined with efficiency gains across the service delivery operations, order fulfillment processes and other operations.
+Added: The increase was primarily due to the growth in revenue while lowering service delivery and selling costs and the reduction of discretionary expenditures, partially offset by higher wages.
Financial Condition
7 unchanged sentences
In March 2020 in the U.S., the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act") was enacted to provide for tax relief and government loans, subsidies and other relief for entities in affected industries.
−Removed: As of October 31, 2020, the CARES Act and other government benefits outside the U.S.
+Added: In March 2021 in the U.S., the American Rescue Plan Act ("ARP Act") was enacted.
+Added: The ARP Act strengthens and extends certain federal programs enacted through the CARES Act and other COVID-19 relief measures and establishes new federal programs.
+Added: As of October 31, 2021, the CARES Act, the ARP Act and other government benefits outside the U.S.
did not have a material impact on our consolidated financial statements and related disclosures.
Our financial position as of October 31, 2021 consisted of cash and cash equivalents of $1,484 million as compared to $1,441 million as of October 31, 2020.
−Removed: As of October 31, 2020, approximately $1,395 million of our cash and cash equivalents is held outside of the U.S.
−Removed: by our foreign subsidiaries and can be repatriated to the U.S.
−Removed: as local working capital and other regulatory conditions permit.
−Removed: We utilize a variety of funding strategies to ensure that our worldwide cash is available in the locations in which it is needed.
We may, from time to time, retire certain outstanding debt of ours through open market cash purchases, privately-negotiated transactions or otherwise.
2 unchanged sentences
Net cash provided by operating activities was $1,485 million in 2021 as compared to $921 million provided in 2020 and $1,021 million provided in 2019.
−Removed: We paid approximately $79 million under our variable and incentive pay programs in 2020, as compared to a total of $118 million in 2019 and $103 million in 2018.
−Removed: The decrease in the amount for variable and incentive pay programs paid in 2020 is primarily due to changes made for certain incentive pay programs which are now paid annually versus semi-annually as was done in 2019 and 2018.
−Removed: Net cash paid for income taxes was approximately $361 million in 2020 which included a one-time payment of $231 million related to the transfer of intellectual property compared to incomes taxes paid of $159 million in 2019 and $102 million in 2018.
−Removed: For the years ended October 31, 2020 and 2019, the net change in tax related assets and liabilities due to the Tax Act was zero compared to $552 million in the same period of 2018.
−Removed: In 2018, $552 million in tax-related assets and liabilities related to the enactment of the U.S.
−Removed: Tax Act, which primarily consisted of an estimated provision of $499 million of U.S.
−Removed: transition tax on deemed repatriated earnings of non-U.S.
−Removed: subsidiaries as well as an estimated $53 million associated with the impact on deferred taxes resulting from the decreased U.S.
−Removed: corporate income tax rate.
−Removed: Deferred tax inflows were $29 million in 2020 compared to cash outflows of $255 million 2019, which included $266 million related to the extension of the company's tax incentive in Singapore, and cash outflows of $16 million in 2018.
−Removed: In 2020, there was a net unrealized gain on fair value of equity investments of $28 million.
−Removed: In 2020, there was an impairment charge of $99 million mainly related to the shutdown of our sequencer development program compared to impairment charges of zero in 2019, and $21 million in 2018.
+Added: Net cash paid for income taxes was approximately $211 million in 2021 compared to income taxes paid of $361 million, which included a one-time payment of $231 million related to the transfer of intellectual property, in 2020 and $159 million in 2019.
For the years ended October 31, 2021, 2020 and 2019, other assets and liabilities used cash of $14 million, $182 million and $40 million, respectively.
+Added: The cash outflow for the year ended October 31, 2021 in other assets and liabilities was primarily due to tax payments and changes in deferred revenue.
The cash outflow in the year ended October 31, 2020 was largely the result of increased income tax payments, interest payments on senior notes and changes in deferred revenue.
−Removed: Cash outflow for the year ended October 31, 2019 and 2018 in other assets and liabilities is primarily due to tax payments and interest on senior notes.
+Added: Cash outflow for the year ended October 31, 2019 in other assets and liabilities is primarily due to tax payments and interest on senior notes.
In 2021, the change in accounts receivable used cash of $128 million, $107 million in 2020, and $106 million in 2019.
2 unchanged sentences
Cash used in inventory was $136 million in 2021, $68 million in 2020 and $36 million in 2019.
−Removed: Inventory days on-hand decreased to 93 days in 2020 compared to 97 days in 2019 and decreased compared to 98 days in 2018.
−Removed: In the year ended October 31, 2020, we increased our inventory levels to meet our customer needs in response to the COVID-19 pandemic.
+Added: Inventory days on-hand increased to 98 days in 2021 compared to 93 days in 2020 and increased compared to 97 days in 2019.
+Added: In the year ended October 31, 2021, we increased our inventory levels to meet our customer needs in response to the COVID-19 pandemic and to compensate for long lead time in ordering from our suppliers.
+Added: The change in the employee compensation and benefits liability was $112 million for year ended October 31, 2021 compared to cash provided of $29 million in 2020 and $23 million in 2019.
+Added: This was largely due to an increase in the vacation liability and variable and incentive pay liability.
+Added: We paid approximately $119 million in 2021 under our variable and incentive pay programs compared to $79 million in 2020 and $118 million in 2019.
+Added: The decrease in the amount for variable and incentive pay programs paid in 2020 was primarily due to changes made for certain incentive pay programs which were paid annually versus semi-annually as was done in 2019.
We made no contributions to our U.S defined benefit plans in 2021, 2020 and 2019.
−Removed: We contributed $31 million in 2020 and $21 million each year in 2019 and 2018 to our non-U.S.
+Added: We contributed $19 million in 2021 and $31 million in 2020 and $21 million 2019 to our non-U.S.
defined benefit plans, respectively.
12 unchanged sentences
Investments in property, plant and equipment were $188 million in 2021, $119 million in 2020 and $155 million in 2019.
−Removed: In 2020 we made no acquisitions of businesses.
−Removed: In 2019 we invested $1,408 million in acquisitions of businesses and intangible assets, net of cash acquired, for the acquisition of two businesses compared to the acquisition of seven businesses for $516 million in 2018.
+Added: Our anticipated capital expenditures for fiscal year 2022 will be $300 million.
+Added: In 2021 we invested $546 million in a business and intangible assets, net of cash acquired for our acquisition of Resolution Bioscience compared to no acquisitions in 2020 and $1,408 million invested in our acquisition of two businesses in 2019.
In 2021 cash used to purchase fair value investments was $22 million compared to $20 million outlay in 2020 and $23 million in 2019.
2 unchanged sentences
Treasury Stock Repurchases
−Removed: On May 28, 2015 we announced that our board of directors had approved a share repurchase program (the "2015 repurchase program").
−Removed: The 2015 share repurchase program authorizes the purchase of up to $1.14 billion of our common stock at the company's discretion through and including November 1, 2018.
−Removed: The 2015 repurchase program did not require the company to acquire a specific number of shares and could have been suspended or discontinued at any time.
−Removed: During the year ended October 31, 2018, we repurchased and retired approximately 6.4 million shares for $422 million under this authorization.
−Removed: As of October 31, 2018, we had remaining authorization to repurchase up to $188 million of our common stock under this program which expired on November 1, 2018.
On November 19, 2018 we announced that our board of directors had approved a new share repurchase program (the "2019 repurchase program") designed, among other things, to reduce or eliminate dilution resulting from issuance of stock under the company's employee equity incentive programs.
−Removed: The 2019 repurchase program authorizes the purchase of up to $1.75 billion of our common stock at the company's discretion and has no fixed termination date.
+Added: The 2019 share repurchase program authorizes the purchase of up to $1.75 billion of our common stock at the company's discretion and has no fixed termination date.
The 2019 repurchase program does not require the company to acquire a specific number of shares and may be suspended, amended or discontinued at any time.
+Added: During the year ended October 31, 2019, we repurchased and retired 10.4 million shares for $723 million under this
+Added: authorization.
During the year ended October 31, 2020, we repurchased and retired 5.2 million shares for $469 million under this authorization.
During the year ended October 31, 2021, we repurchased and retired approximately 3.1 million shares for $365 million under this authorization.
−Removed: As of October 31, 2020, we had remaining authorization to repurchase up to $558 million of our common stock under this program.
+Added: Effective February 18, 2021, the 2019 repurchase program was terminated and replaced by the new share repurchase program.
+Added: The remaining authorization under the 2019 repurchase plan of $193 million expired on February 18, 2021.
+Added: On February 16, 2021 we announced that our board of directors had approved a new share repurchase program (the "2021 repurchase program") designed, among other things, to reduce or eliminate dilution resulting from issuance of stock under the company's employee equity incentive programs.
+Added: The 2021 repurchase program authorizes the purchase of up to $2.0 billion of our common stock at the company's discretion and has no fixed termination date.
+Added: The 2021 repurchase program which became effective on February 18, 2021, replaced and terminated the 2019 repurchase program on that date.
+Added: The 2021 repurchase program does not require the company to acquire a specific number of shares and may be suspended, amended or discontinued at any time.
+Added: During the year ended October 31, 2021, we repurchased and retired 3.0 million shares for $423 million under this authorization.
+Added: As of October 31, 2021, we had remaining authorization to repurchase up to approximately $1.577 billion of our common stock under the 2021 repurchase program.
For the years ended October 31, 2021, 2020 and 2019 cash dividends of $236 million, $222 million and $206 million were paid on the company's outstanding common stock, respectively.
2 unchanged sentences
Credit Facilities
−Removed: On March 13, 2019, we entered into a credit agreement with a group of financial institutions which provides for a $1 billion five-year unsecured credit facility that will expire on March 13, 2024.
−Removed: For the year ended October 31, 2020, we borrowed $798 million and repaid $913 million under the credit facility.
−Removed: As of October 31, 2020, the company had no borrowings outstanding under the credit facility.
−Removed: On August 7, 2019, we entered into an amendment to the credit agreement, which provides for a $500 million short-term loan facility that was used in full to complete the BioTek acquisition and which was repaid in full as of October 31, 2020.
−Removed: On October 21, 2019, we entered into a second amendment to the credit agreement, which refreshed the amount available for additional incremental term loan facilities under the credit agreement to permit additional incremental facilities of up to $500 million.
−Removed: We had no borrowings under the additional incremental facilities as of October 31, 2020.
−Removed: On April 17, 2020, we entered into a third amendment to the credit agreement which provides the company with the option to request the consent of the applicable class of lenders to extend the maturity date of revolving borrowings and swingline loans for an additional period of one year and of the 2019 incremental term loans for an additional period of up to 364 days.
+Added: On March 13, 2019, we entered into a credit agreement with a group of financial institutions which, as amended, provides for a $1 billion five-year unsecured credit facility that will expire on March 13, 2024 and incremental term loan facilities in an aggregate amount of up to $500 million.
+Added: On April 21, 2021, we entered into an incremental assumption agreement, pursuant to which the aggregate amount available for borrowing under the revolving credit facility was increased to $1.35 billion and the aggregate amount available for incremental facilities was refreshed to remain at $500 million.
+Added: As of both October 31, 2021 and 2020, we had no borrowings outstanding under the credit facility and we had no borrowings under the incremental facilities.
We were in compliance with the covenants for the credit facility during the year ended October 31, 2021.
2 unchanged sentences
commercial paper program, under which the company may issue and sell unsecured, short-term promissory notes in the aggregate principal amount not to exceed $1.0 billion with up to 397-day maturities.
+Added: On June 18, 2021, we increased the authorized maximum amount of notes that may be outstanding to $1.35 billion.
At any point in time, the company intends to maintain available commitments under its revolving credit facility in an amount at least equal to the amount of the commercial paper notes outstanding.
1 unchanged sentence
The proceeds from issuances under the program may be used for general corporate purposes.
−Removed: As of October 31, 2020, borrowings outstanding under our U.S.
−Removed: commercial paper program had a weighted average annual interest rate of 0.17 percent and a weighted average remaining maturity of approximately five days.
+Added: As of October 31, 2021 , we had no borrowings outstanding under our U.S.
+Added: commercial paper program.
We had borrowings of $75 million outstanding under the U.S.
6 unchanged sentences
The interest is payable semi-annually on April 1st and October 1st of each year and payments commenced on April 1, 2013.
−Removed: In July 2012, Agilent executed treasury lock agreements for $400 million in connection with future interest payments to be made on our 2022 senior notes issued on September 13, 2012.
−Removed: The treasury lock contracts were terminated on September 10, 2012 and we recognized a deferred gain in accumulated other comprehensive income (loss) which is being amortized to interest expense over the life of the 2022 senior notes.
−Removed: The remaining gain to be amortized related to the treasury lock agreements at October 31, 2020 was less than $1 million.
+Added: On January 21, 2021, we redeemed $100 million of the $400 million outstanding aggregate principal amount of our 2022 senior notes due October 1, 2022.
+Added: On April 5, 2021, we redeemed the remaining outstanding $300 million of our 2022 senior notes.
+Added: The total redemption price of approximately $417 million was computed in accordance with the terms of the 2022 senior notes as the present value of the remaining scheduled payments of principal and unpaid interest on the notes being redeemed.
+Added: During the year ended October 31, 2021, we recorded a loss on extinguishment of debt of $17 million in other income (expense), net in the consolidated statement of operations.
+Added: In addition, $1 million of accrued interest, up to but not including the applicable redemption date, was paid.
+Added: The make-whole premium less partial amortization of previously deferred interest rate swap gain together with the amortization of debt issuance costs and discount was recorded in other income (expense), net in the consolidated statement of operations.
2023 Senior Notes
9 unchanged sentences
In February 2016, Agilent executed three forward-starting pay fixed/receive variable interest rate swaps for the notional amount of $300 million in connection with future interest payments to be made on our 2026 senior notes issued on September 15, 2016.
−Removed: The swap arrangements were terminated on September 15, 2016 with a payment of $10 million, and we recognized this as a deferred loss in accumulated other comprehensive income (loss) which is being amortized to interest expense over the
−Removed: life of the 2026 senior notes.
+Added: The swap arrangements were terminated on September 15, 2016 with a payment of $10 million, and we recognized this as a deferred loss in accumulated other comprehensive income (loss) which is being amortized to interest expense over the life of the 2026 senior notes.
The remaining loss to be amortized related to the interest rate swap agreements at October 31, 2021 was $5 million.
13 unchanged sentences
The interest is payable semi-annually on June 4th and December 4th of each year and payments commenced on December 4, 2020.
+Added: 2031 Senior Notes
+Added: On March 12, 2021, we issued an aggregate principal amount of $850 million in senior notes ("2031 senior notes").
+Added: The 2031 senior notes were issued at 99.822% of their principal amount.
+Added: The 2031 senior notes will mature on March 12, 2031, and bear interest at a fixed rate of 2.30% per annum.
+Added: The interest is payable semi-annually on March 12th and September 12th of each year and payments commenced on September 12, 2021.
Off Balance Sheet Arrangements and Other
25 unchanged sentences
For those contracts that are not cancelable without penalties, there are termination fees and costs or commitments for continued spending that we are obligated to pay to a supplier under each contact's termination period before such contract can be cancelled.
−Removed: Our contractual obligations with these suppliers under "other purchase commitments" were approximately $85 million within the next year.
−Removed: Approximately $23 million of the contracts relate to penalties that will reduce over the next 13 years.
+Added: Our contractual obligations with these suppliers under "other purchase commitments" were approximately $83 million.
+Added: Approximately $22 million of the penalties for the new contracts will reduce over the next 12 years.
Retirement Plans.
10 unchanged sentences
Senior notes $ — $ 600 $ 300 $ 1,850
−Removed: Commercial paper 75 — — —
Interest expense 76 129 106 171
3 unchanged sentences
Other long-term liabilities as of October 31, 2021 and October 31, 2020 include $241 million and $323 million, respectively, related to long-term income tax liabilities.
−Removed: Of these amounts, $199 million related to uncertain tax positions as of both October 31, 2020 and October 31, 2019, respectively.
+Added: Of these amounts, $117 million and $199 million related to uncertain tax positions as of October 31, 2021 and October 31, 2020, respectively.
We are unable to accurately predict when these amounts will be realized or released.
However, it is reasonably possible that there could be significant changes to our unrecognized tax benefits in the next twelve months due to either the expiration of a statute of limitations or a tax audit settlement.
−Removed: The remaining $124 million in other long-term liabilities relates to the one-time transition tax payable.
+Added: The remaining $124 million included in other long-term liabilities relates to the one-time transition tax payable.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.