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Item 1. Business

2023-12-15 compared with 2022-12-15 · 249 added, 367 removed, 186 unchanged (77% of the section changed)

Keysight Technologies, Inc.

("we," "us," "Keysight" or the "company"), incorporated in Delaware on December 6, 2013, is a technology company that helps enterprises, service providers and governments accelerate innovation to connect and secure the world by providing electronic design and test solutions that are used in the simulation, design, validation, manufacture, installation, optimization and secure operation of electronics systems in the communications, networking and electronics industries.

We also offer customization, consulting and optimization services throughout the customer's product development lifecycle, including start-up assistance, asset management, up-time services, application services and instrument calibration and repair.

("we," "us," "Keysight" or the "company"), incorporated in Delaware on December 6, 2013, is a global innovator in the computing, communications and electronics market, committed to advancing our customers’ business success by helping them solve critical challenges in the development and commercialization of their products and services.

Our mission, " accelerating innovation to connect and secure the world," speaks to the value we provide our customers in a world of ever-increasing technological complexity.

We deliver this value through a broad range of design and test solutions that address the critical challenges our customers face in bringing their innovations to market faster.

Keysight’s portfolio of hardware, software, and services enables our customers’ engineering workflows as they design, manufacture, deploy, and optimize their products and solutions.

Our revenue is derived primarily from solutions addressing research and development ("R&D") applications, and to a lesser degree, applications in manufacturing and operations.

The accelerating pace of technological innovation and engineering intensity are long-term secular drivers of demand for Keysight’s solutions and services.

We serve a global set of customers in over 100 countries across a wide range of industry segments, including communications, aerospace defense, government, automotive, energy, industrial, general electronics, and semiconductor.

We generated $5.5 billion, $5.4 billion and $4.9 billion of revenue in 2023, 2022, and 2021, respectively.

Revenue, income from operations and assets by business segment as of and for the fiscal years ended October 31, 2023, 2022, and 2021, are provided in Note 16, "Segment Information," to our consolidated financial statements.

We had more than 18,000 direct customers for our solutions and services in 2022 and over 30,000 customers globally, including indirect channels.

No single customer represented 10 percent or more of our revenue.

With a focus on electronic design, test and optimization, we deliver market-leading solutions across a wide range of industries, including commercial communications;

aerospace, defense and government;

semiconductor;

general electronics;

and education.

Our software and hardware solutions support our customers' design and test challenges across the entire product lifecycle and help accelerate their time to market.

We provide simulation, prototype development and validation solutions for research and development ("R&D"), high-volume manufacturing test solutions, as well as handheld and other solutions for operational test and optimization, including user experience in the field.

Our objective is to increase the productivity of our customers.

Keysight's solutions utilize a common portfolio of market-leading software and hardware technologies along with a suite of valued-added services.

This broad portfolio of solutions enables our customers to efficiently develop and deploy their products to address the most rapidly evolving new technologies and market opportunities.

The following section represents our significant strategies and the key underlying initiatives:

• Keysight Software Solutions - Expanding our software offerings to meet customer needs and increase recurring revenue

Keysight's software solutions can be characterized in the following three categories :

◦ Instrument software applications.

Instrument software applications are designed to optimize the value that our customers derive from our instruments by providing faster insight and analytics through a combined hardware and software application solution.

This solution includes core software used to run our instruments and related applications that are pre-installed on our instruments.

◦ Software application solutions.

Software applications unify multiple instruments into industry-specific solutions to provide faster time to insight across industries, technologies and lifecycle phases.

Examples include solutions for 5G and 6G communications, autonomous and electric vehicles, defense modernization, Internet of Things ("IoT"), Open Radio Access Network ("ORAN") and quantum computing.

◦ Standalone software.

Our standalone software solutions enable customers to accelerate their digital design and test workflows and address their design, simulation, emulation, automation, and quality assurance needs in the R&D lab and beyond.

These solutions are built on our open and scalable Pathwave software platform and enable our customers to translate virtual designs into real products.

Our software test automation platform uses artificial intelligence and machine learnings ("AI/ML") to accelerate customer productivity in software test creation and execution.

• Providing complete solutions with services

◦ The breadth of our service offerings enables Keysight to provide customers with complete solutions that incorporate both leading product capabilities with services and support.

We have expanded and deepened our service offerings, beyond a strong foundation of calibration and repair to include customization, consulting and optimization services.

Support offerings, such as KeysightCare, asset optimization, technology refresh and other value-added services enable us to provide complete customer solutions across a broad set of communications and electronics markets, technologies and industries.

• Investing early to achieve first-to-market solutions

◦ Wireless communication measurement solutions.

We are investing in the development of new wireless communications design and test solutions to satisfy the commercial communications end market and provide the industry with new capabilities for development of next-generation devices, as well as wireless and wireline networks.

Our technical breadth combined with our engagement with market-leading customers has enabled our development of leading-edge and first-to-market solutions in 5G and virtual network applications, such as ORAN.

We continue to make strategic investments to support the delivery of a comprehensive, innovative 5G portfolio.

◦ 6G solution development.

Keysight has been investing in solutions and technology for the academic, commercial, and government research communities, who are exploring a wide breadth of technologies required to address another new generation of wireless capabilities.

The expansion of large-scale commercial wireless technologies into healthcare, transportation, finance, manufacturing, and agriculture is expected to drive investment in new technologies in radio and satellite systems, new networking technologies, and the pervasive use of artificial intelligence.

Keysight is well positioned to be a preferred strategic partner with leading innovative solutions driving the long-term path to 6G.

◦ Automotive design and measurement solutions.

We are investing in the development of new automotive test solutions to address the rapidly emerging electric, hybrid electric, connected and autonomous vehicle segments.

In recent years, we have introduced new design and test solutions covering vehicle intelligence, radar scene emulation, connectivity, power and security, including the first-to-market integrated vehicle-to-everything ("V2X") solution for 4G/5G networks with integrated traffic scenario testing, Advanced Driver Assistance Systems ("ADAS") and an Autonomous Drive Emulation ("ADE") platform that enables real sensor data streaming to a decision-making computer.

The Automotive Cybersecurity Program validates the resiliency of connected components of a vehicle.

In addition, Keysight delivers extensive security validations of the 4G/5G radio access network (RAN) infrastructure that connects vehicles with back-end data centers.

We also deliver application-optimized, customer-specific test solutions for the development and production of charging technology and infrastructure, energy storage, battery management systems, inverters and DC/DC converters.

Keysight’s innovative solutions focus on the entire value chain of electric vehicles from battery formation through manufacturing and operations.

◦ Network applications .

Keysight's market-leading network test solutions provide network equipment manufacturers and service providers with critical capability for testing next-generation network technologies.

We continue to invest to

provide first-to-market solutions to meet the needs of our customers in this rapidly evolving market as network speeds and complexity increase with virtualization and software control.

Our network visibility solutions allow enterprises and service providers to optimize their network operations by efficiently providing network visibility for enhanced performance and security.

We are investing to bring this powerful capability to a broad range of increasingly software-driven environments, such as data centers and the cloud.

Together, these solutions enable network and data center operators to continuously update their networks to deliver higher levels of performance, improve quality of service, and enhance network security, necessitated by the rapid growth of high-speed, connected devices and applications.

◦ Network transformation solutions.

Market drivers are leading to a transformation of both wireless and wired network technologies.

In particular, the low-latency and high-bandwidth requirements of 5G are impacting network capabilities.

We are making investments to enable the next generation of networks and beyond.

We provide both wireless and wired network communications design and test solutions that address all seven layers of the communications stack.

In addition, these solutions address customer needs across the entire communications ecosystem, from chipsets to devices to network access and then into the core network, data centers and the cloud.

Our electronic measurement business originated in Silicon Valley in 1939.

Our legacy encompasses more than 80 years of innovation, measurement science expertise and deep customer relationships.

We conduct business annually with over 30,000 customers globally, including many Fortune 1000 companies that are developing new electronic technologies, networks, systems, devices and components.

The following strengths are significant:

• Industry-focused organization structure to support customer success.

Our industry-focused organization structure enables customer alignment and allows us to partner closely with market leaders to enable new technologies and provide first-to-market solutions for emerging applications.

Our solution-centric industry groups provide end-to-end design, test and optimization solutions driven by customer specifications and timetables.

Keysight is viewed as a trusted adviser and partner across multiple industries.

• Technology leadership as a competitive differentiator.

Proprietary software and hardware technologies unavailable in the commercial market and developed by our R&D technology centers around the world enable many Keysight products to deliver the best design and measurement solution capability available for our customers’ engineering requirements.

Some of Keysight’s hardware technologies are designed and manufactured in our own in-house integrated circuit fabrication facilities, which were purpose-built and optimized to deliver leading-edge performance and capabilities across the broad portfolio of Keysight instruments.

This differentiation enables Keysight to be recognized as a leader in seven core measurement platforms:

radio-frequency ("RF") and microwave design simulation software, network test, network analyzers, oscilloscopes, signal analyzers, signal sources and network emulation solutions.

Keysight’s technology leadership supports our strategy to deliver first-to-market solutions for our customers, which in turn enables them to be first to market with their products and gain a competitive advantage.

• Broad portfolio of solutions and products to address customer needs.

Keysight has a broad portfolio of electronic design and test solutions and products, which we continue to expand.

Our hardware product portfolio spans many technologies and price points.

Products are available in various physical form factors, such as benchtop instruments, handheld units, custom or industry-standard modular formats, and others.

We address time and frequency domain applications with RF, microwave, high-speed digital and general instrumentation.

We also address network test, visibility and security applications.

In addition, we have a broad portfolio of software solutions and products to enable our customers' success, including electronic design automation ("EDA") software for RF and high-speed digital design, software tools for programming, automation, and data analysis, and a broad range of application-specific software for our instruments, many of which leverage our open and scalable Pathwave software platform.

Finally, we offer an expanding set of services and support delivered under our KeysightCare offering.

Our broad portfolio of solutions and products includes, among others, the following:

• Industry-leading commitment to product quality and reliability.

Keysight has a reputation in the industry for high-quality and high-reliability electronic measurement instrumentation and software.

Ensuring quality and reliability is an integral part of our new product development processes.

• Global sales channel and reach.

We have a comprehensive global sales channel with experienced management teams and highly technical sales and application engineers, including a strong local presence in emerging markets.

As part of our sales channel strategy, we have more than doubled our direct sales force over the past six years.

This global direct channel is focused on addressing the needs of our customers by selling Keysight products, systems, solutions and services.

A part of this direct sales channel is focused on subscription software and services, which add value to our customers' design workflows and create recurring revenue for Keysight.

Approximately 80 percent of our business comes from customer interactions with our direct sales organization.

In countries with low sales volumes, sales are made through various representatives and channel and distribution partners.

To ensure broad geographic coverage and drive further growth, we maintain a network of over 800 channel partners and an e-commerce platform to complement our direct sales force and extend the digital buying experience for our customers.

The combination of our direct and indirect channels contribute to new customer acquisition, resulting in the addition of more than 1,900 new customers in 2022.

• Large installed base.

The breadth of our solutions portfolio and our long history of producing high-performance and high-quality solutions have resulted in our large worldwide installed base of equipment.

This installed base enables a strong and growing services solutions portfolio, which provides a wide range of calibration and repair services on both a per-incident and contract basis, as well as technical support through KeysightCare.

It also provides additional sales opportunities as loyal customers refresh or upgrade their equipment.

• Centralized order fulfillment.

Our centralized order fulfillment organization allows us to leverage the scale and scope of our business to provide high-quality, market-leading instrument solutions to our customers while generating competitive gross margins.

Keysight has a centralized order fulfillment organization that supplies solutions to customers across geographies.

Our Penang, Malaysia site is our largest manufacturing facility, with a proven track record of operational excellence, technology capability and quality.

We have an established network of suppliers and subcontractors, especially in Asia, that complements our in-house capabilities.

• Flexible business model.

Our operating model incorporates a substantial amount of cost structure flexibility with the intent to be materially profitable across a range of economic and market conditions.

Our variable compensation programs, sales channel strategy and the outsourced components of our supply chain have been implemented to improve the flexibility of our cost structure.

The Keysight Leadership Model

The Keysight Leadership Model (“KLM”) is the company's framework to continuously deliver value to our customers, stockholders and employees and provides the structure to execute Keysight's strategy.

This model encompasses seven interlinked areas of focus that are centered around our customers and include:

Customer Success, Market Insight, Capital Allocation, First-to-Market Solutions, Operational Excellence, Employee Growth and Keysight Values.

• Customer Success is the heart of everything we do, embodying our relentless drive to deeply understand our customers challenges and help them achieve positive, sustained outcomes through the application of new insights and the use of Keysight solutions.

• Market Insight is enabled by our deep customer relationships and focuses our product and solution roadmaps, informs our mergers and acquisitions priorities, and factors into our hiring priorities and talent development plans.

Our market insight allows us to move with speed and focus delivering first-to-market solutions that enable customers to address their engineering challenges.

• Capital Allocation is how we direct our financial and human capital to business opportunities, projects and processes that align with our strategy to generate financial returns, which create value for the company, shareholders and employees.

The threshold for our capital allocation is an expected return on invested capital that is above our cost to procure that capital.

• First-to-Market Solutions is what we strive to deliver to our customers across the industries we serve.

By being first-to-market with the right solutions, we enable our customers to also be first-to-market with their products.

• Operational Excellence across all functions is a relentless focus.

It allows us to accelerate R&D by developing common technology platforms, maximize margins through cost reductions and supply optimization, implement LEAN+ processes for continuous improvement, and leverage general and administrative spend as the company grows.

We believe this focus drives long-term competitive advantage and growth while building customer loyalty.

• Employee Growth is enabled in a diverse, inclusive and respectful work environment, where employees are offered challenging assignments, development opportunities, competitive salaries and a safe workplace.

This environment supports employees throughout their careers with the goal of connecting their passions to business results.

• Keysight Values of Speed and Courage, Uncompromising Integrity, High Performance, Social Responsibility and One Keysight foster a dynamic and inspiring environment conducive to collaboration, innovation and experimentation.

Our values help us attract and retain top talent and guide how we work with each other and engage with our customers, suppliers and communities.

Keysight Leadership Model

We trace our heritage back over 80 years to the beginning of Silicon Valley.

The fundamental elements of our culture are represented in our Keysight Leadership Model ("KLM"), which provides a framework for sustained value creation for customers, shareholders, and employees.

The KLM centers on delivering customer success via a continuous activity system and core values that guide and drive our actions as a company and as individuals.

The activities are summarized as an ongoing cycle

of market insight that drives capital allocation and yields timely solutions that are optimized via operational excellence.

More information on the KLM can be found at https://about.keysight.com/en/companyinfo/leadership.shtml.

Competitive Advantages

Keysight conducts business with global customers, including many Fortune 1000 companies that are developing new electronic technologies, networks, systems, devices, and components.

The following advantages enable us to deliver on our commitment of sustained value creation for our stakeholders.

Deep, long-term global customer relationships

Keysight’s history of collaborative innovation is demonstrated by our service to leading companies across the diverse markets that we address.

Our customers trust Keysight to deliver the technological expertise, leading-edge capabilities, and broad solutions portfolio that they need to execute on their product development goals.

Keysight primarily employs a comprehensive global direct sales channel with experienced management and highly technical sales and application engineers, including a strong local presence in emerging markets.

These teams are supported by tight collaboration with the engineering teams who create the solutions used by our customers so that problems can be addressed efficiently, and solutions enhanced quickly, to enable customer success.

Our legacy of over 80 years of contribution in measurement science and the resulting breadth of our products and solutions yields a large, global installed base.

This base of customers enables a large and growing services portfolio and offers additional sales opportunities as customers upgrade their products over time.

Unique technology expertise and capabilities

Keysight is a technology-driven company, investing in R&D to align our business with available markets and position the company for growth.

As our customers’ trusted test and measurement partner, we innovate at the leading edge of the technologies they seek to utilize in their electronic systems under development.

We employ a combination of strategies to lead in this area, including engagement with top standards bodies and industry consortia and close collaboration with top research programs in universities and industry.

Our central R&D team, Keysight Labs, focuses on developing breakthrough hardware and software technologies that are deployed in application-specific contexts by our business-specific engineering teams.

We develop and incorporate proprietary semiconductor and packaging technology to address the specific needs of our solutions, enabling differentiated performance within our industry.

Differentiated, first-to-market solutions portfolio

Keysight’s industry-focused organizational structure emphasizes our engagement with leading customers across our end markets.

We leverage these relationships, together with our technology expertise, to identify market opportunities and seek to maximize the lifecycle value of our design and test contributions beginning in R&D.

Our development teams leverage the broad array of Keysight hardware, software, and services, adding new capability as necessary, to create market-leading solutions.

Providing leading-edge, application-focused solutions for our customers in line with their project schedules is key to our differentiation and value delivery and facilitates the continuous advancement of electronics technology.

With a software-centric

solutions and customer-centered focus, we continue to make strategic investments to expand the R&D mix of our revenue and grow the software and services content of our business, which has the added benefit of increasing recurring revenue.

Durable and resilient business model

Our operating model incorporates cost structure flexibility that has allowed Keysight to deliver profitability across a range of economic and market conditions.

We employ variable pay mechanisms across our entire employee population and complement this with the strategic use of contingent staffing.

We have a diversified go-to-market approach with indirect sales partners and electronic commerce to complement our direct sales force.

This approach provides flexibility with the added benefit of expanding our reach and providing improved transactional purchase capability.

We use a centralized order fulfillment organization that supplies solutions to customers worldwide, allowing us to leverage the scale of our business to provide high-quality products while maintaining competitive gross margins.

We complement our in-house capabilities with an extensive network of suppliers and subcontractors, which allows us to adapt to changing market conditions.

The durability and resilience of our business model has provided strategic flexibility and enabled the company to continue to allocate capital and invest in growth through different market environments.

Innovative culture

Keysight's culture has at its foundation the operating principles and values embodied in the Keysight Leadership Model, with innovation as a key source of our strength.

Our employees across the world embrace these principles and deliver industry-leading capabilities across a range of fields that are not only technical in nature but encompass a wide range of contributions to our business, customers, and shareholders.

Keysight is increasingly recognized as a great place to work.

We strive to enable employee growth in a diverse, inclusive, and respectful work environment that offers challenging assignments, development opportunities, competitive compensation, and a safe workplace.

This environment supports our employees to achieve their full potential and enables collaboration to innovate at the speed of our customers.

S trategic Priorities

Keysight’s business strategy is exemplified in four key objectives:

Invest to deliver differentiated, first-to-market solutions

This priority is central to our value contribution for our customers in their world of increasing technology complexity and decreasing time-to-market.

To this end, our intent is to invest approximately 16% of our revenue in R&D annually.

In 2023, R&D investment totaled $882 million.

We employ vertical technology integration that leverages investments in core hardware technology, such as advanced semiconductor capability provided by our in-house fab, custom packaging from our technology centers, and other unique competencies.

We integrate these hardware technologies with core software capabilities, enabled by our software engineering teams (representing the majority of our R&D staff) and accelerated by leveraging our broad portfolio and layering relevant services to deliver differentiated solutions that meet the needs of the market.

Deep relationships with market-defining customers provide detailed understanding of their needs and schedules.

This enables us to work at our customers’ pace to deliver solutions that enable their development cycles with first-to-market timing.

Capture opportunities in our served addressable market and expand in attractive adjacencies

Building on our industry-leading position, we are investing to capitalize on emerging technologies, expanding our portfolio of solutions and engaging earlier in our customers’ design and innovation life cycles to enhance our value and ensure we hit technology inflections.

This is an important aspect of our capital allocation strategy to deliver sustainable and profitable growth.

We continue to work on multiple potential vectors for growth as we expand Keysight’s contributions across the technology stack, building on our core strength in physical layer test and adding new protocol layer test and system emulation capabilities, as well as new application layer solutions that address opportunities in design and data management.

In 2023, Keysight acquired Cliosoft Inc., adding design and intellectual property data management capabilities to complement our design software portfolio.

In November 2023, we acquired a controlling block of share capital of ESI Group SA, which helps broaden our software capabilities and further our strategy of moving upstream into the earlier stages of our customers’ design cycles.

Grow recurring revenue

This component of our strategy builds on the increasing software content in our solutions and delivering value to customers throughout the solution lifecycle.

It also leverages our broad services portfolio as we provide unique and high-value services to extend the value of our solutions.

We have a dedicated global enterprise software sales force to drive this priority and maximize cross-selling opportunities across our go-to-market channels.

Be good stewards of capital

Keysight strives to be a good steward of capital.

Leveraging the strength of our differentiated portfolio and flexible operating model, together with our strong balance sheet and cash generation, we maintain our disciplined approach to capital allocation, balancing investment for organic growth, mergers and acquisitions ("M&A"), and return of capital.

Broad Portfolio of Design and Test Solutions

Keysight delivers a portfolio of products and solutions that enable our customers to efficiently develop, deploy, and optimize their product offerings.

The main components of our portfolio are hardware, software, and services that are delivered on a standalone basis or combined into application-specific solutions.

Application-specific solutions employ a software-centric approach that directly leverages the breadth of our portfolio by combining relevant hardware, software, and services into solutions that address high-value applications and specific industry requirements.

This approach allows Keysight to deliver differentiated value to our customers, built from a foundation of industry-leading products and services that can be customized to meet their needs.

Hardware products include a broad range of platforms delivering precise measurement and control of numerous electrical and information properties in signals.

These products consist of modular and integrated instruments in a variety of form factors.

Some of the major product categories are:

• Spectrum and Signal Analyzers – a line of products providing detailed analysis of complex communications and radar signals across a wide range of frequencies, including radio frequency ("RF"), microwave ("uW"), and optical.

• Network Analyzers – an array of products providing detailed characterization of the behavior of electronic components and systems when stimulated by a range of input signals.

• Power Analyzers – a range of products to accurately measure voltage, current, and power characteristics of an electronic device or system under a range of operating conditions.

• Protocol Analyzers – a range of products allowing the debug, validation, and optimization of electronic systems employing various protocols for data transmission, usually defined by widely adopted standards, such as PCI Express ("PCIe") or Universal Serial Bus ("USB"), as well as others.

• Oscilloscopes – a range of products offering precise visualization, debug, and characterization of time domain signals across a wide range of operating conditions.

• Digital Multimeters – a range of products delivering accurate and reliable measurement of basic electrical parameters in a variety of form factors.

• Signal Generators (Signal Sources) – a range of products offering flexibility and precise control of the generation of a broad variety of signals used to provide stimulus to electronic devices and systems under test.

• Power Supplies – a range of products used to provide precise control of power delivery to electrical and electronic systems under test.

• Network Test Products – a range of systems to debug, validate, and characterize communication networks and network components across a range of operating conditions and measurement types.

• Network Visibility Products – a portfolio of products and solutions delivering rich data insight about network traffic, applications, and users across any networking environment to ensure they remain connected and secure.

This summary is only a subset of Keysight’s industry-leading array of hardware product offerings.

More details can be found on our website using the link at the end of this section.

Software products are characterized in the following three categories:

• Instrument software applications are designed to optimize the value that our customers derive from our instruments, providing faster insight and analytics by integrating the instrument’s hardware and software into an application-focused solution.

This approach typically builds on the basic software used to operate our instruments by adding software applications that are pre-installed to deliver measurements tailored to a specific application.

For example, customers may purchase a signal analyzer equipped with a software application to analyze specific signals such as satellite communications signals.

• Software application solutions unify multiple instruments into an application-specific measurement solution, providing faster time to insight across industry-specific applications, technologies, and lifecycle phases.

An example of this is software that enables a signal generator and signal analyzer to be used as a stimulus-response tester for performance characterization of a communications component or device.

• Our standalone software solutions enable customers to address their design, simulation, emulation, test automation, and quality assurance needs in the R&D lab and beyond.

These solutions are built on our open and scalable PathWave software platform and enable our customers to efficiently translate virtual designs into physical products.

Our software test automation platform uses artificial intelligence and machine learning ("AI-ML") to accelerate customer productivity in software test creation and execution.

Keysight Global Services provide support services to enable our customers’ success with their Keysight products and solutions.

Our global scale is complemented by localized presence with trained engineers and technicians delivering our services via regional support centers located near customers or on-site teams.

This approach increases the efficiency and uniformity of our services offerings and allows for close collaboration with our engineering and go-to-market teams.

Our services offerings are summarized as follows:

• Product support services deliver comprehensive support that includes repair, parts, and accredited calibrations of Keysight products and solutions.

• Technical and application support for hardware, software, and solutions, known as KeysightCare, allows customers to maximize their productivity and the utility of our products and solutions in their application environment.

• Professional services, including installation, training, and engineering services, optimize equipment and solution adoption, utilization, and integration into customers’ unique environments.

More information on our broad portfolio of products and services can be found at https://www.keysight.com/us/en/products.html.

Operating Segments

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Communications Solutions Group

The Communications Solutions Group serves customers spanning the worldwide commercial communications and aerospace, defense and government end markets.

The group's solutions consist of electronic design and test software, electronic measurement instruments, systems and related services.

These solutions are used in the simulation, design, validation, manufacturing, installation and optimization of electronic equipment and networks.

This business generated revenue of $3,803 million in 2022, $3,523 million in 2021 and $3,132 million in 2020.

Communications Solutions Group Markets

Our Communications Solutions Group serves the following two markets:

Commercial Communications Market

We market our electronic design and test solutions to chipset providers, network equipment manufacturers (“NEMs”), wireless device providers and component providers within the supply chain for these customers as well as network operators, including communications and hyperscale cloud service providers and enterprises.

Growth in mobile data traffic and increasing complexity in semiconductors and components are driving test demand across the communications ecosystem.

We provide end-to-end solutions for design and development of mobile chipsets, connected smart sensors/devices (i.e., IoT), wireless base stations, networks, data centers and cloud.

Our leading-edge solutions enable and accelerate critical new technology waves, such as 5G and 6G wireless, O-RAN, Wi-Fi 6, 400/800G+ telecom and optical, and PCIe Gen5 high-speed digital.

Our ability to design and deliver first-to-market solutions is enabled by our technical expertise, as well as our strategic engagements with market-leading customers across the commercial communications ecosystem.

NEMs and chipset providers design and manufacture products to enable the transmission of voice, data and video traffic.

The NEMs’ customers are communications and hyperscale cloud service providers and enterprises that deploy and operate the networks and deliver services, as well as distribute end‑user subscriber devices such as wireless smart phones, tablets and other connected devices.

To meet their customers’ demands, NEMs require test and measurement instruments, systems and solutions for the development, production and installation of each optical, electrical and wireless network technology.

The chipset providers' customers are device makers who design and manufacture network infrastructure equipment, smartphones, tablets, wearables, IoT, etc.

They are also module makers who design and manufacture communication modules with cellular, bluetooth and/or wireless LAN connection capabilities for laptop, cars and other devices.

To meet their customers' requirements, device makers and module makers need test and measurement solutions for development, validation, production and regulatory confirmation to cover all supported communication technologies.

Wireless device providers require design and test solutions for the design, development, manufacture and repair of a variety of mobile and connected devices, including both smart phones and tablets.

These mobile devices are used for voice, data and video delivery to individuals who connect wirelessly to the service provider’s network.

The device manufacturers’ customers are large and small service providers, enterprises and consumers who purchase directly from retailers.

Component providers design, develop and manufacture electronic and optical components and modules used in network equipment and mobile devices.

The component providers require test and measurement products to verify that the components and modules interoperate properly and that their performance meets the specifications of their customers.

Communications and hyperscale cloud service providers and enterprises require reliable data center and network equipment that enables new service offerings and allows their networks to operate with ever‑increasing capacities.

To achieve this, enterprises and service providers require a range of sophisticated test instruments and systems to ensure conformance to communication standards and network requirements and to evaluate and optimize network performance.

These customers also require solutions to improve management of data centers to preserve resources, save valuable IT time and maximize return on IT investments.

Aerospace, Defense and Government Market

We market our electronic design and test solutions to manufacturers and research laboratories within the aerospace and defense industries.

This market includes commercial and government customers and their contracted suppliers.

Electromagnetic

spectrum operations, digital transformation and modernization of satellites, radars and surveillance systems worldwide are the drivers of design and test demand within the aerospace, defense and government market.

Government customers include departments or ministries of defense and related agencies around the world.

Prime contractors, sub-contractors and component manufacturers support the government customers by providing design and manufacturing capabilities for a variety of programs.

Commercial customers include aerospace and satellite equipment manufacturers and related component suppliers.

Customers use our electronic design and test solutions to develop and manufacture a wide variety of electronic components and systems used in aerospace and defense industries, including electromagnetic spectrum operations, radar, signal monitoring, space, satellite, commercial and military aircraft, public safety and emerging applications.

Customers test the electrical parameters of a broad spectrum of components and assemblies and final products and often require large systems containing multiple electronic instruments.

We do not manufacture or sell weapons, munitions or components therein.

Solutions with industry-specific features or software for our defense customers represented less than 5 percent of total consolidated company revenue in 2022.

Communications Solutions Group Solutions

Our electronic design and test solutions include software design tools, RF, microwave (“uW”) instruments, and digital instruments and various other general purpose test instruments and targeted test solutions.

Our technical breadth and expertise enables leading-edge solutions across commercial and government applications.

Electronic Design Automation Software

Our EDA software models, simulates and analyzes product designs at the circuit and system levels across RF/uW, high-speed digital, power electronics and semiconductor applications.

R&D engineers use the software to predict the behavior of designs prior to building a physical prototype.

They identify and correct issues with the design and optimize performance in a virtual environment, thus reducing the number of design iterations, time to market and cost.

RF and Microwave Solutions

Our software-driven RF and microwave test solutions and related software tools are used mainly in commercial, wireless and aerospace and defense applications.

These solutions are required for the design and production of wireless network products, communications links, radars, mobile devices and base stations.

RF and microwave test instruments include signal analyzers, signal generators, network analyzers, network emulation tools and power meters.

Our measurement application software is an integrated extension of our hardware solutions and enables a wide range of measurement capability used to design and manufacture next-generation electronic components and products.

Digital Solutions

Our software-driven digital test solutions are used by R&D engineers across a broad range of customers to validate the function and performance of their digital product and system designs.

These designs include a wide range of products from simple digital control circuits to complex high-speed systems, such as network equipment and computer servers.

The test solutions offered include oscilloscopes, logic and serial protocol analyzers, logic‑signal sources, arbitrary waveform generators and bit error rate testers.

Our customers also use our high‑frequency EDA software tools to model signal integrity in digital design applications as digital speeds continue to increase.

Network Applications Solutions

We offer a comprehensive suite of hardware and virtual network test platforms and software applications that provide customers with the ability to perform a broad range of testing for layers 2-7 of the network stack.

These solutions measure and analyze the performance, functionality, interoperability, service quality and conformance of network equipment and networks, as well as applications and services that run on these networks.

Our technology-specific application test solutions address data center, routing and switching, Software Defined Networking ("SDN"), security and encryption.

We also test network applications and services, including voice, video and wireless technologies such as 4G, 5G and Wi-Fi.

Keysight's network visibility solutions provide real-time, end-to-end visibility, insight and security for physical, virtual and cloud-based software defined networks.

Our solutions deliver the control, coverage, intelligence and performance customers need to protect and optimize critical networking, data center and cloud business assets.

Our comprehensive network visibility platform, proprietary software, and advanced processing technologies enable crucial intelligence and functionality to enhance network efficiency and security.

Other Measurement Solutions and Product Offerings

Our suite of fiber optic test solutions measures and analyzes a wide variety of critical optical and electrical parameters in fiber optic networks and their components.

Components that can be tested with our solutions include source lasers, optical amplifiers, filters and other passive components.

Our test solutions include optical modulation analyzers, optical component analyzers, optical power meters and optical laser source solutions.

Additionally, we provide resale of refurbished used Keysight equipment, including Keysight Premium Used, which ensures the same high quality as our new equipment.

Communications Solutions Group Customers

Our customers include commercial companies and government agencies around the world.

We have customers across the entire communications ecosystem that design, develop, manufacture, install and operate a wide variety of commercial and government communications equipment.

Commercial customers include original equipment and contract manufacturers of electronic and optical components, semiconductors, chipsets, wireless devices and network equipment, as well as network and cloud service providers and enterprises that implement, maintain and manage communication networks and services.

Other communications customers include defense contractors and sub-contractors.

Government customers include departments or ministries of defense, government agencies and related research institutes.

Our customers use our solutions to research, design, develop, validate, manufacture, install and securely operate radio frequency, microwave frequency, digital, semiconductor and optical products and systems.

These products and systems range from passive components that require basic electrical measurements through complex networks and data centers that require integrated measurement solutions to optimize reliability, performance and security.

No single customer represented 10 percent or more of the group's revenue.

Communications Solutions Group Competition

The market for electronic design and test solutions is highly competitive across our targeted markets.

In the commercial communications market, our competitors within various sub-markets include Anritsu Corporation, Fortive Corporation, Gigamon, National Instruments Corporation, Rohde & Schwarz GmbH & Co.

KG, Spirent Communications plc, Teledyne Technologies, Teradyne Inc., and VIAVI Solutions Inc.

In the aerospace, defense and government market, our competitors include Fortive Corporation, National Instruments Corporation, Rohde & Schwarz GmbH & Co.

KG, and VIAVI Solutions Inc.

We offer complete solutions that include a wide range of products, related software and services that compete primarily on the basis of differentiated capability, first-to-market leading-edge technology, product quality and long-term value to our customers.

The Communications Solutions Group ("CSG") serves customers spanning the global commercial communications and aerospace, defense, and government end markets.

The group’s solutions consist of electronic design and test software, instrumentation, systems, and related services.

These solutions are used in the simulation, design, validation, manufacturing, installation, and optimization of communication systems in wireless, wireline, enterprise, and aerospace, defense and government end markets.

In addition, the group provides automated software test solutions that include AI-ML to automatically identify, build, and execute tests critical to digital business success and a strong customer experience.

Commercial Communications

The market for Keysight’s commercial communications solutions spans the communications ecosystem from design through operations and across the industry’s broad spectrum of components, devices, equipment, and services.

Our solutions address the communications lifecycle in both wireless and wireline domains, from design and simulation, validation, and characterization, through manufacturing, deployment, and optimization, including cybersecurity.

Keysight’s commercial communications customers develop and deploy communications products and services and operate communications networks around the world.

Our customers represent a diverse group of suppliers across the global industry value chain and include original equipment and contract manufacturers supplying wireless and wireline semiconductors, chipsets, modules, and devices.

Our customers also include network equipment manufacturers ("NEMs") as well as those operating communications and computing networks, including enterprises, communications network service providers, and cloud computing service providers.

These customers require design, simulation, and measurement tools to validate the correct functional operation, conformance to standards, and parametric performance of their products and systems under development.

Their needs span the wide range of technologies employed in modern wired and wireless communications system designs such as 5G, 6G, 800Gb/sec, 1.6Tb/sec, and many others.

These needs have also evolved rapidly given the continuous advancement of digital, communications, and computing standards.

Keysight’s broad portfolio of products and solutions serve their many specific

applications, accelerating the development, validation, and quality manufacturing and deployment of their products and services, as well as aiding in their secure and efficient operation, service, and repair.

Aerospace, Defense and Government

The market for Keysight’s aerospace, defense and government solutions consists of applications addressing secure and highly reliable communications, space and satellite equipment development and operations, and government research across a wide spectrum of electronics technologies used in aerospace and defense.

Typical applications include electromagnetic spectrum operations (e.g., communications, radar, signal intelligence), cybersecurity, and others, often incorporating ruggedized and high-reliability designs for military equipment.

Research applications are wide-ranging and include these areas and others, such as quantum communications and computing, cyber-physical control systems (e.g., battery, control systems, smart grid technologies), energy as well as materials science research.

Our aerospace, defense and government customers are research agencies and manufacturers serving the aerospace and defense industries, including commercial and government customers and their contracted suppliers.

Commercial suppliers include aerospace, defense, and satellite equipment prime contractors, subcontractors, and related component suppliers.

Government customers include a range of government agencies, such as departments and ministries of defense, security agencies, and related government research entities.

Our customers need to accelerate the modernization of their defense systems to realize the benefits of the continuous evolution in electronic systems.

They strive to embrace new space, energy, and communications advances, and ensure secure supply chains.

These customers require design, simulation, and measurement tools to accelerate their efforts to ensure the proper operation and performance of the devices and systems they are developing, deploying, and operating.

They use Keysight’s products and solutions to explore design alternatives, validate their component and system designs and prototypes, ensure quality manufacturing, and operate, service, and repair their systems in the field.

Electronic Industrial Solutions Group

The Electronic Industrial Solutions Group provides test and measurement solutions and related services across a broad set of electronic industrial end markets, focusing on high-value applications in the automotive and energy industries and measurement solutions for consumer electronics, education, general electronics design and manufacturing, and semiconductor design and manufacturing.

The group provides electronic measurement instruments, design and test software and systems, and related services used in the simulation, design, validation, manufacturing, installation and optimization of electronic equipment, as well as automated test software that uses artificial intelligence and machine learning to automate test creation and test execution.

This business generated revenue of $1,617 million in 2022, $1,418 million in 2021 and $1,089 million in 2020.

Electronic Industrial Solutions Group Markets

We market our electronic design and test solutions to customers incorporating significant electronic content in their products across a broad set of automotive and energy, general electronics and semiconductor markets.

Our customers are electronic component companies, original equipment manufacturers ("OEMs") and contract manufacturers and include their supply chain ecosystem suppliers for printed circuit assemblies, components/ICs, interconnected devices and software applications, including cloud services.

These customers design, develop and manufacture a wide range of products, including those produced in high volumes, such as computers, computer peripherals, electronic components, consumer electronics, enterprise servers, storage networks and automotive electronics.

Other industrial applications for our electronic industrial solutions include power, energy, automotive, medical, and university research and teaching labs.

Customers use our test solutions in developing, manufacturing and operating a wide variety of electronic components and systems.

Customer requirements include testing the electrical parameters of digital, radio frequency, and microwave frequency semiconductors, components and assemblies;

testing multiple parameters of the printed circuit boards used in almost every electronic device;

testing of the final product;

and testing of systems containing multiple electronic devices.

Electronic Industrial Solutions Group Solutions

Our electronic industrial solutions include design and design verification tools, a broad range of electronic test and measurement instruments, comprehensive manufacturing test systems, material analysis and education solutions to teach and train the next generation of engineers and scientists, and solutions to enable scientific discovery in university research labs in a variety of fields.

Design tools include design-for-test software for printed circuit assemblies and automotive radar, and EDA software for the design and simulation of wireless and wired communication links in industrial, automotive and power semiconductor devices.

Design verification tools include physical signal characterization and protocol compliance systems used for testing in industrial, energy and automotive devices and products.

Major automotive and battery manufacturers are electrifying transportation and changing how electrical energy is generated, stored and controlled.

Examples of verification solutions include those that help design engineers qualify and characterize power semiconductor devices, photo-voltaic/electrical vehicle/storage inverters, AC power analysis, DC battery cells/modules and automotive body/safety/engine electronic modules.

High-precision and higher-bandwidth power analysis products address the increased power efficiency required with the proliferation of battery-powered and energy-efficient devices.

We also provide the solutions required to test and validate the components in the electrified drive train.

We offer a broad portfolio of general-purpose precision measurement solutions, from handheld test tools to bench measurement instruments and measurement solutions.

Many of these products are designed for demanding industrial environments and provide high performance capabilities and include digital multimeters, function generators, frequency counters, data acquisition systems, audio analyzers, LCR meters, thermal imagers, source measure units, ultra-high precision device current analyzers, test executive software platforms and a wide variety of power supplies ranging from bench to highly scalable AC/DC modular supplies and electronically programmable loads.

These instruments are increasingly integrated with solution-specific software that enables our customers to dramatically accelerate and improve the effectiveness of their product design, design validation, manufacturing and support activities.

Our solutions also support fundamental measurement science for voltage, current, frequency, signal pulse width, sub-nanometer distance and other complex electronic measurements.

This enables industry and government customers to measure fundamental electrical parameters.

Comprehensive manufacturing test systems include printed-circuit-board-assembly testers that ensure complex boards and components are assembled properly, integrated circuit parametric testers that ensure semiconductor wafers are processed consistently with high precision, and sub-nano-meter positioning sub-assemblies for semiconductor wafer manufacturing.

We provide effective and efficient manufacturing test solutions for complex transportation electronic control/safety systems that include radar, autonomous driving capability, and state-of-the-art wired and wireless components that enable advanced communications capabilities.

Our flexible and scalable manufacturing systems enable our manufacturing customers to deliver outstanding yield, quality and productivity resulting in lower overall cost of test.

Our highly regarded test and measurement products and software have a long history of broad adoption and use in universities and research centers that teach the next generation of engineers and scientists and enable basic research to flourish.

Increasing global competition in education is driving the need for efficient and timely education solutions, and we are making those available in areas such as IoT, 5G and 6G communications technology and smart devices.

Our market-leading software test automation platform has pioneered the concept of intelligent test automation by integrating AI-powered testing that identifies and builds tests automatically.

This has reduced the time-to-market of solutions by

reducing the time taken for test.

Our test automation can analyze and control applications and websites through the user interface in the same way a user would interact and this has extended Keysight’s capabilities into the application layer and user experience.

Our solutions are agnostic across devices and software platforms and are widely used across various industries, including aerospace and defense, healthcare, automotive, networking, retail, e-commerce and the financial sector.

Electronic Industrial Solutions Group Customers

Our electronic industrial products and services customers include semiconductor and component manufacturers, OEMs and contract manufactures in the automotive, semiconductor and general electronics industry.

Our customers use our solutions to perform R&D and to design, manufacture and support their products and services.

Customer products include electronic modules and systems that go into a wide range of electronic industrial products, such as electric/autonomous vehicles, connected consumer and industrial devices, digital healthcare devices in the IoT domain, semiconductor equipment and devices, and printed circuit assemblies.

Our customers range from the largest multi-national global companies to the smallest start-ups and include universities and government agencies around the world.

Our automotive customers use Keysight's solutions to develop, test and manufacture the electrified drive train, battery management systems, e-mobility and advanced vehicle-to-everything ("V2X") communications that will enable electric and hybrid-electric vehicles to be fully autonomous.

In order to address the growing needs of customers involved in the design and development of the latest automotive electronic technologies, we also operate four automotive application centers in Boeblingen, Germany;

Michigan, United States;

Shanghai, China;

and Nagoya, Japan.

These centers enable us to collaborate with and serve customers on a local basis and in close proximity to the world’s major automotive development ecosystems.

They include electronic test and measurement labs, technical experts, and state-of-the-art design and test software and hardware, as well as a customer training facility for hands-on workshops and seminars.

These centers address the next-generation technology needs of our automotive industry customers, including OEMs, electronic components suppliers, semiconductor chipset manufacturers, battery and charging infrastructure providers and compliance labs, where we provide solutions across the entire ecosystem for the connected “smart” vehicle.

No single customer represented 10 percent or more of the group's revenue.

Electronic Industrial Solutions Group Competition

The market for electronic industrial design and test solutions is highly competitive across our targeted markets.

In the electronic industrial test market, our competitors within various sub-markets include Fortive Corporation, National Instruments Corporation and Rohde & Schwarz GmbH & Co.

Our electronic industrial design and test solutions offer a wide range of products and related software and compete primarily on the basis of differentiated capability, first-to-market leading edge technology, product quality and long-term value to our customers.

The following discussions of Research and Development, Services, Sales, Manufacturing, Marketing, Human Capital, Backlog, Intellectual Property, Materials, Government Regulations and Acquisition of Material Assets include information common to each of our businesses.

The Electronic Industrial Solutions Group ("EISG") serves customers across a diverse set of end markets focused on automotive and energy, semiconductor solutions, and general electronics.

The group's solutions consist of electronic design and test software, instrumentation, systems, and related services.

These solutions are used in the simulation, design, validation, manufacturing, installation, and optimization of electronic equipment.

Automotive and Energy

The market for Keysight’s automotive and energy solutions consists of design and measurement applications addressing the major transformational trends in these industries.

These applications include the growth of electric and autonomous vehicles, the evolution of energy systems to incorporate alternative forms of generation and advanced control, and the many new subsystem and component technologies under development to enable and advance these trends.

Our automotive and energy customers include automotive original equipment manufacturers and Tier 1 and 2 suppliers, along with the component and subsystem suppliers that support them.

We also count as customers the suppliers of alternative energy systems for green energy generation, storage, and control, as well as suppliers of enabling electronics technology such as high-power semiconductors and control systems.

Our customers are innovating in energy management and advanced cyber-physical control systems that are the building blocks of these complex and transformative systems.

These customers, many of whom are pioneering new standards and capabilities involving the application of advanced communications, computing, and applied materials research, require advanced design, simulation, and measurement capability to fully explore these new application areas and enable the development of their products and services.

They rely on Keysight’s software-centric solutions to analyze and validate their concepts and products, thereby increasing their productivity and ultimately speeding the arrival of their products to market.

Semiconductor

The market for Keysight’s semiconductor solutions consists of design and measurement applications to enable continued innovation in leading-edge semiconductors to address the demand for smaller, more power efficient, and highly integrated chips and chipsets.

This innovation requires new approaches to design and measurement to enable realization of the design in the fab along with efficient testing at scale to preserve yield.

Our semiconductor customers are primarily design and production teams in semiconductor and capital equipment companies who are looking to differentiate their offerings by implementing innovative new silicon architectures and continuing

to advance the state of the art in semiconductor device capability.

These innovations are the foundation of advances in electronics that are powering many new technologies in today’s high-tech world.

These teams require close collaboration with their design and measurement solutions suppliers to continue to advance their capability in this challenging environment of ever-advancing complexity and scale.

Keysight is a trusted supplier to the leaders in the semiconductor ecosystem as they engage with our solutions to enable their next-generation offerings.

General Electronics

The market for Keysight’s general electronics solutions spans a broad set of design and measurement applications that enable electronics designers and manufacturers across a wide range of industrial and academic settings.

These applications represent basic and advanced design, simulation, and measurement capability that support the electronics industry and is driven by digital transformation and the growth of connected devices (Internet of Things), including consumer electronics, digital health applications, smart manufacturing, and the growth of digital classroom learning.

Our general electronics customers include design teams in leading and emerging companies that are innovating to bring higher levels of connectivity, utility, and automation, along with new business models, to their customers.

In many cases they are embracing new communications technology and working to incorporate the latest electronics to enable longer battery life, higher performance, or other differentiators for their systems.

They trust Keysight's design and measurement solutions to accelerate their development and productization processes, while enhancing quality and profitability for their business.

The following discussions include information common to each of our businesses.

Keysight operates in a highly competitive and rapidly changing global marketplace.

We believe that our technology leadership serves as a competitive differentiator.

The proprietary software and hardware technologies unavailable in the commercial markets and developed by our R&D technology centers around the world enable many Keysight products to deliver differentiated design and measurement solution capability to address our customers' engineering requirements.

We compete with a variety of organizations that offer similar services and solutions, but none of our competitors offer the full range of product and services at the scale we do or serve all the same markets in the aggregate or by segment.

Our competitors include companies or divisions of companies with substantial sales, marketing, research, and financial capabilities, as well as well-established regional competitors who are more specialized than we are in particular markets.

We also face increased competition in a number of our served markets as a result of the entry of new competitors or consolidation among industries or customers.

For a discussion of risks related to competition, please refer to “Item 1A.

Risk Factors.”

Research and Development

We are committed to investing in R&D and have focused our development efforts on key strategic opportunities that align our business with available markets, and position the company for growth.

We are committed to investing in R&D and have focused our development efforts on strategic opportunities that align our business with available markets and position the company for growth.

Our R&D investments focus on the development of first-to-market solutions with differentiated software and hardware, as well as improvements to existing software and hardware products to provide complete customer solutions addressing the evolving requirements of industries that we serve.

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enabling technologies, system design, simulation, and measurement, with the aim of building a strong foundation for next-generation and longer-term solutions.

Our most significant technology development centers are in California, Colorado and Texas in the United States, and in Romania, Malaysia, India, China, United Kingdom, Spain, Germany and Japan.

We anticipate that we will continue to have significant R&D expenditures in order to maintain our competitive position with a continuous flow of innovative, high-quality software and hardware embedded in customer solutions, products and services.

Service Solutions

Our service solutions include product support services, technical support and training and consulting.

Customer demand is fulfilled by trained engineers and technicians through regional support and service centers located near customers or through on-site teams.

Our global presence with localized service proximity is an important factor in sustaining our customers’ solutions, uptime and utilization requirements.

We also provide industry-specific services to deliver complete Keysight

solutions and help customers reduce the total cost of ownership for their design and test equipment.

Our service solutions include the following general types of services:

• Product support services.

Comprehensive support that includes repair, parts, and accredited calibrations of Keysight products and solutions.

• Technical support for software and hardware.

Customer support for the usage and utilization of our products such as KeysightCare.

• Professional services.

Installation, training and engineering services to optimize equipment adoption, utilization, and design of test processes.

The Chief Customer Officer is responsible for developing and executing the company’s customer-centric vision by enhancing the end-to-end customer experience;

enabling customer success through the seamless delivery of first-to-market solutions to a diverse, global customer base;

and expanding Keysight’s go-to-market strategies across all regions and ecosystems.

Our most significant technology development centers are in the United States (California, Colorado and Texas), India, Malaysia, Romania, Germany, China, Japan, United Kingdom, Spain, Singapore and Finland.

We anticipate that we will continue to maintain R&D expenditures to deliver a continuous flow of innovative, high-quality customer solutions, products, and services.

Our Chief Customer Officer is responsible for developing and executing the company’s customer-centric vision by enhancing the end-to-end customer experience, enabling customer success through the seamless delivery of first-to-market solutions to a diverse, global customer base, and expanding Keysight’s go-to-market strategies across all regions and ecosystems.

Our direct sales force focuses on addressing the needs of our global and regional customers by selling Keysight products, systems, solutions, software, and services.

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Our application engineers bring deep solution and application expertise to provide a combination of consulting, systems integration and software engineering services that span all stages of the sale, deployment and support of our complex systems and solutions.

Our direct sales organizations serve customers globally across the commercial communications, aerospace, defense and government, automotive and energy, semiconductor, general electronics, network test and network visibility markets.

To complement our direct sales force, we have an extensive network of channel partners around the world.

We also have a global software subscription and renewals channel, selling our standalone enterprise software solutions including computer-aided engineering and design workflow solutions.

Together, all of our direct sales organizations serve customers globally across the commercial

communications, aerospace, defense and government, automotive and energy, semiconductor and general electronics markets.

More than 80 percent of our business comes from customer interactions with our direct sales organization.

To complement our direct sales force, we have an extensive network of over 800 channel partners around the world.

These channel partners include resellers, manufacturer’s representatives, and distributors.

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They are expected to provide the same level of service and support as our direct sales force for the products they sell and generate new sales opportunities to extend our reach.

In addition, we work with a number of strategic solution partners who add value to our products and solutions for certain verticals like network application and test.

Electronic commerce and telesales channels are also in place for transactional, lower-touch sales.

For certain verticals such as network monitoring and performance management, our go-to-market solution strategy is based on strategic relationships with technical partners to provide the customer with a complete solution.

In these cases, we work with technical partners in two main ways:

(i) through customer referrals and recommendations, and (ii) through automation integration/interoperability that provides a differentiated solution for our customers.

Manufacturing

To maximize our productivity and our ability to respond to market conditions, we have significant in-house manufacturing capabilities that are supplemented by contract manufacturers.

Our in-house manufacturing efforts are focused on the highest value added, more complex and highly technical aspects of production, and we use contract manufacturers for assembly, printed circuit board production and chassis assembly.

Keysight Global Marketing builds the company brand and drives growth through programs that increase awareness, demand, and engagement for Keysight’s design, simulation, emulation, and test solutions.

We employ a multi-pronged marketing strategy to enhance brand equity, as well as proving our presence and thought leadership in existing and emerging markets, resulting in one powerful brand voice for Keysight.

We fuel growth initiatives through online digital transformation, high-value content, new product launches, and sophisticated digital and physical demand generation programs tailored to local markets to attract new accounts and deepen relationships with existing customers.

We continuously evolve our marketing practices and technology stack to support a data-driven approach to our sales and marketing initiatives.

Our continued evolution includes a focus on intent-based marketing as we continue to adjust to how our prospects prefer to discover, learn, and buy.

Manufacturing and Materials

We utilize a combination of both in-house manufacturing and contract manufacturers to maximize our productivity and our ability to respond to market conditions.

Our in-house manufacturing efforts are focused on the highest value added, more complex and highly technical aspects of production and plating.

We use contract manufacturers for assembly, printed circuit board production and chassis assembly.

We have centralized manufacturing in Penang, Malaysia, our largest manufacturing facility, which focuses on the final assembly of our most sophisticated instruments and on final tuning, calibration and test of instruments across the broader portfolio.

Our other principal manufacturing facilities are in California and Colorado in the United States, and Germany and Japan outside of the United States.

Our other principal finished good manufacturing facilities are in California and Colorado in the United States, and Germany and Japan outside of the United States.

We also operate three technology centers located in Santa Rosa, California;

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We plan our supply chain based on forecasts, and generally manufacture and configure the finished products upon receipt of firm orders.

Keysight Global Marketing builds the company brand and drives growth through programs that increase awareness, reputation, and demand for Keysight’s design, simulation, emulation, and test solutions.

We employ a multi-pronged marketing strategy to enhance brand equity, including articulating a strong, cohesive brand purpose, establishing our presence and thought leadership in existing and promising emerging markets, resulting in one powerful brand voice for Keysight.

We fuel growth initiatives through online digital transformation, high-value content, new product launches, and sophisticated digital demand

generation programs tailored to local markets, to attract new accounts.

As the world enters the post-pandemic era, we’re blending virtual and physical events to broaden our reach, while capitalizing on the benefits of physical interactions.

We continue to expand Keysight University, an online learning hub for engineers, with inbound marketing events and compelling courses that deliver key insights from registrants into Keysight’s marketing engine.

At our premium Keysight World virtual events around the globe, we bring together customers, industry visionaries, and Keysight experts to share the applications and benefits of emerging technologies to accelerate industry breakthroughs.

We continuously evolve our marketing practices and technology stack in order to support a data-driven approach to our sales and marketing.

Our manufacturing operations employ a wide variety of semiconductors, electromechanical components and assemblies, and raw materials, such as plastic resins and sheet metal.

We purchase materials from various suppliers globally.

Some of the parts that require custom design work are not readily available from alternate suppliers due to their unique design or the length of time necessary for design work.

Our long-term relationships with suppliers allow us to proactively manage technology road maps and product discontinuance plans and monitor their financial health.

To address the potential disruption in, and other risks related to, our supply chain, we use a number of techniques, including qualifying multiple sources of supply and redesign of solutions for alternative components.

In addition, while we generally attempt to keep our inventory at optimal levels, we do purchase incremental inventory as circumstances warrant to protect the supply chain.

For a further discussion of risks related to the manufacturing and materials and components required for our operations, please refer to “Item 1A.

Risk Factors.”

Human Capital

We have a diverse, inclusive, and respectful work environment, where employees are offered challenging assignments, development opportunities, competitive salaries and a safe workplace.

As of October 31, 2022, we had approximately 15,000 employees worldwide representing more than 80 self-identified nationalities working in 30 countries.

Of those employees, 5,500 are located in the Americas (including 5,300 in the U.S.), 2,800 are located in Europe and 6,700 are located in Asia.

As of October 31, 2023, we had approximately 14,900 employees worldwide representing more than 80 nationalities working in 30 countries.

Of those employees, 5,500 are located in the Americas (including 5,300 in the United States), 2,800 are located in Europe, and 6,600 are located in Asia Pacific.

Culture, Values and Standards

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We adhere to the tenets of the United Nations Guiding Principles on Business and Human Rights, and core International Labor Organization conventions, and we are an affiliate member of the Responsible Business Alliance.

We comply with the labor and employment laws of all countries in which we operate, prioritizing fair employment practices, labor compliance, non-discrimination and equal employment opportunity.

We comply with the labor and employment laws of all countries in which we operate, prioritizing fair employment practices, labor compliance, non-

discrimination, and equal employment opportunity.

The KLM is the framework for how we do business, enabling us to execute on our strategies for the benefit of our customers, stockholders and employees, while operating within our values of Speed and Courage, Uncompromising Integrity, High Performance, Social Responsibility and One Keysight.

We believe our culture, which fosters employee inclusion, engagement, and innovation, is a competitive advantage.

We are committed to maintaining a work environment founded on respect for all, regardless of race, color, age, gender, sexual orientation, gender identity and expression, ethnicity, religion, disability, veteran status, national origin, or any protected class.

We are committed to maintaining a work environment founded on respect for all, regardless of race, color, age, sex, sexual orientation, gender identity and expression, ethnicity, religion, disability, veteran status, national origin, or any protected class.

Our Harassment Policy requires that all who work for Keysight be treated with dignity, respect, and courtesy.

Our Keysight Standards of Business Conduct ("SBC") govern our dealings with our customers, competitors, suppliers, third-party partners, as well as with our fellow employees, and is available for review on our website.

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Hiring, Retention and Succession Planning

We understand that Science, Technology, Engineering and Math ("STEM") education is critical to creating a pipeline of future engineers, and we provide global support for STEM education through a variety of company-sponsored and employee-led programs, which introduce school-age students to engineering.

We understand that Science, Technology, Engineering and Math ("STEM") education is critical to creating a pipeline of future engineers.

We provide global support for STEM education through a variety of company-sponsored and employee-led programs, which introduce school-age students to engineering.

Our talent acquisition and Human Resources teams work with business leaders to understand and align on how our business goals and strategies impact our talent needs.

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As part of our talent acquisition strategy, we provide training to recruiters and hiring managers to assist them in recruiting and hiring top talent.

We had a global job acceptance rate of 83.2 percent in 2022.

The number of software engineers in our R&D function have more than doubled since we became an independent company in 2014.

We had a global job offer acceptance rate of 86.8 percent in 2023.

Our business leaders are required to periodically evaluate employee contributions to the company and to identify key contributors, as well as those in need of improvement.

Our annual rewards process provides employees with feedback on their

performance over the past fiscal year and rewards achievement.

At least annually, we provide employees with feedback on their performance over the past fiscal year.

Working with Human Resources, business leaders develop retention strategies and initiatives to keep critical talent focused and engaged and to minimize attrition.

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These reviews provide visibility to top talent, potential leadership gaps, and development plans.

Globally, 4 percent of our employee population is eligible to retire.

and Japan, employees eligible to retire are 24.8 percent and 17.3 percent, respectively.

We recognize that many of these employees have valuable skills and historical information and that knowledge transfer is critical.

We have created knowledge transfer practices to enable us to retain critical knowledge.

In the U.S., we have a program specifically designed to enable retirement-ready critical talent to gradually reduce hours leading up to retirement, giving us time to transfer critical information and processes.

Globally, many of our employee population is eligible to retire.

These employees often have valuable skills and historical information and knowledge transfer is critical.

We have knowledge transfer practices and programs to enable us to retain critical knowledge.

In the United States, we have programs specifically designed for retirement-ready employees.

We have a retirement planning program that provides a severance payment in exchange for extended notice of retirement.

Those who are considered critical talent are given an opportunity to gradually reduce hours leading up to retirement, giving us time to transfer critical information and processes.

Once retired, these former employees are given the opportunity to consult with us on a limited basis to provide on-going mentoring and training.

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We are an equal opportunity employer, and we are committed to maintaining a diverse and inclusive work environment that is free from harassment and discrimination.

The value we place on diversity, equity and inclusion ("DE&I") is a competitive advantage, and it helps us attract and retain the best talent and drive high performance through innovation and collaboration.

The value we place on diversity, equity and inclusion ("DEI") is a competitive advantage, and it helps us attract and retain the best talent and drive high performance through innovation and collaboration.

We benefit from the innovation that results when people with differing experiences, perspectives, and cultures work together.

DE&I is among our top priorities.

In addition to our broader DE&I initiatives, we set near-term objectives to increase representation of women globally and under-represented minorities in the U.S.

We have a DE&I Director who is responsible for driving strategy and for implementation of new and ongoing DE&I initiatives.

In order to increase the pool of diverse candidates for open positions, we participate in diversity-focused career fairs and conferences in the U.S., Asia and Europe.

We identify diversity recruiting business champions to develop business-specific talent acquisition plans, and we have partnerships with universities worldwide that are aligned with our strategic talent needs, including Historically Black Colleges and Universities ("HBCU") in the United States.

We have a DEI Director who is responsible for driving strategy and for implementing new and ongoing DEI initiatives.

To increase the pool of diverse candidates for open positions, we participate in diversity-focused career fairs and conferences in the United States, Asia, and Europe.

We identify diversity recruiting business champions who develop business-specific talent acquisition plans, and we have partnerships with universities worldwide that are aligned with our strategic talent needs, including Historically Black Colleges and Universities in the United States.

In an effort to enable employees to be successful, we provide mentoring programs, inclusive benefits, access to employee network groups, and training for every stage of employment.

As of October 31, 2022, women represented 30.6 percent of our global workforce, and underrepresented minorities represented 37.7 percent of the U.S.

The percentage of women in leadership positions (Officer, Senior Vice President, Vice President, Senior Manager, Integrating Manager, Operating Manager and Supervisor) globally was 24.4 percent and the percentage of underrepresented minorities in the U.S.

was 33.3 percent.

As of October 31, 2023, women represented 31 percent of our global workforce, and underrepresented minorities represented 44.4 percent of the United States workforce.

The percentage of leadership positions (Officer, Senior Vice President, Vice President, Senior Manager, Integrating Manager, Operating Manager and Supervisor) held by women globally was 25.2 percent and the percentage of leadership positions held by underrepresented minorities in the United States was 39.9 percent.

At the senior executive level (Officer, Senior Vice President, Vice President), 27.6 percent were women and 31.8 percent were underrepresented minorities.

Our Board has eleven members, three of whom are women, and three are self-identified underrepresented minorities.

In the rest of the workforce, we seek to expand hiring of women globally and underrepresented minorities in the U.S.

Our Board of Directors has eleven members, three of whom are women, and three are self-identified underrepresented minorities.

In the rest of the workforce, we seek to expand hiring of women globally and underrepresented minorities in the United States.

We established annual hiring goals to improve our workforce diversity.

In 2022, 32.6 percent of our global external new hires were women, falling short of our 2022 goal of 35.4 percent.

In 2022, 49.1 percent of external new hires in the U.S.

were underrepresented minorities, exceeding our goal of 47.4 percent.

For fiscal year 2023, the adjusted hiring goals for global external new hires being women is 33.6 percent, and external new hires in the U.S.

being underrepresented minorities is 50.1 percent.

In 2023, 33.9 percent of our global external new hires were women, exceeding our 2023 goal of 33.6 percent.

In 2023, 61.1 percent of external new hires in the United States were underrepresented minorities, exceeding our goal of 50.1 percent.

For fiscal year 2024, the adjusted hiring goals for global external new women hires is 34.4 percent, and external new underrepresented minorities hires in the United States is 50.1 percent.

A metric in our short-term executive compensation program for fiscal year 2024 is tied to the achievement of these goals.

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We believe that learning is a lifelong pursuit that creates a mindset of professional growth and continuous improvement.

We emphasize on-the-job learning through stretch assignments and development opportunities, as well as education.

We prioritize on-the-job learning through stretch assignments, development opportunities, and educational resources.

Our employees have access to a wide range of programs, workshops, classes, and resources to help them excel in their careers.

Our Keysight University platform offers training and development programs, as well as learning resources.

Educational Assistance Program provides financial and management support to eligible employees, allowing them to pursue academic degrees related to their field of work.

Our Employee Educational Assistance Program provides financial and management support to eligible employees, allowing them to pursue academic degrees related to their field of work.

Many of our employees are required to take annual training courses related to their work, including those pertaining to the environment, data privacy, contributing to an inclusive workplace, and workplace health and safety.

We also have leadership development programs including training for new managers and development through ExecOnline.

We hold an annual Keysight Executive Development ("KED") program with senior leaders to align on strategy and key focus areas for the company.

We hold an annual Keysight Executive Development program with senior leaders to align on strategy and key focus areas for the company.

Compensation and Benefits

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Our programs include recognition and control of workplace hazards, ergonomics training, a global travel health program, and robust emergency and disaster recovery plans.

We promote the health and wellness of our employees through our Employee Well Being programs and workplace accessibility and accommodations.

We promote the health and wellness of our employees through our Employee Well Being programs, our Employee and Family Assistance Program (which includes twelve free sessions with therapists and mental health coaches per year), and workplace accessibility and accommodations.

Backlog represents the amount of revenue expected from orders that have already been booked, including orders for goods and services that have not been delivered to customers, orders invoiced but not yet recognized as revenue (booked as deferred revenue), and orders for goods that were shipped but not yet recognized, awaiting acceptance by customers and/or completion of a commitment to a customer.

At October 31, 2022, our backlog was approximately $2,550 million as compared to approximately $2,115 million at October 31, 2021, primarily driven by strong order growth, supply-chain constraints, and an increase in solution sales with a longer order-to-revenue conversion cycle, partially offset by the impact of foreign currency exchange movements.

At October 31, 2023, our backlog was approximately $2,290 million compared to approximately $2,550 million at October 31, 2022.

The decrease in year-over-year backlog is a result of revenue outpacing orders, primarily driven by the fulfillment of orders and shipments with the easing of supply chain constraints along with the year-over-year decline in orders.

In accordance with our order acceptance policy, we continue to expect the majority of backlog to be recognized as revenue within six months.

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Although we believe that our licenses, patents, and other intellectual property rights have value, in general no single license, patent, or other intellectual property right is in itself material, other than the Keysight mark.

Our manufacturing operations employ a wide variety of semiconductors, electromechanical components and assemblies and raw materials, such as plastic resins and sheet metal.

We purchase materials from thousands of suppliers on a global basis.

Some of the parts that require custom design work are not readily available from alternate suppliers due to their unique design or the length of time necessary for design work.

Our long-term relationships with suppliers allow us to proactively manage technology road maps and product discontinuance plans and monitor their financial health.

In addition, while we generally attempt to keep our inventory at optimal levels, we do purchase incremental inventory as circumstances warrant to protect the supply chain.

With the global shortages and increased lead-times for materials such as semiconductors and passive components, we align our purchase lead-times

through placement of advance of purchase orders where necessary.

For a further discussion of risks related to the materials and components required for our operations, please refer to “Item 1A.

Risk Factors.”

Government Regulations

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We cannot be sure that HP will continue to fulfill its remediation obligations or that Agilent will continue to fulfill its indemnification obligations.

On December 17, 2021, Keysight and HP signed a restrictive covenant related to our Santa Rosa facility which prohibits certain uses of the property (such as running a daycare facility, hospital or school) and terminates HP’s remediation obligation related to that facility.

On December 17, 2021, Keysight and HP signed a restrictive covenant related to our Santa Rosa facility that prohibits certain uses of the property (such as running a daycare facility, hospital, or school) and terminates HP’s

remediation obligation related to that facility.

HP’s remediation obligations relating to Keysight’s Colorado Springs facility are ongoing.

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Import/Export Regulations

We sell products and solutions to customers all over the world and are required to comply with the U.S Export Administration Regulations and economic and trade sanctions programs limiting or banning sales into certain countries.

Countries outside of the U.S.

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The following is information regarding our executive officers as of December 1, 2023.

Nersesian, 63, has served as Executive Chair of the Board of Directors since May 2022.

From December 2013 to May 2022, Mr.

Nersesian served as President and Chief Executive Officer of Keysight.

From September 2013 to December 2013, he served as Executive Vice President of Agilent.

Nersesian served as President of Agilent and Chief Operating Officer, Agilent from November 2012 to September 2013.

He served as Executive Vice President, Agilent and Chief Operating Officer from November 2011 to September 2013.

Nersesian has served as a Director on our board of directors since the December 2013, and as Chair of our board of directors since November 2019.

Satish Dhanasekaran, 51, has served as President and Chief Executive Officer of Keysight since May 2022.

He served as Senior Vice President and Chief Operating Officer since October 2020.

He was Senior Vice President and President of the Communications Solutions Group from July 2017 to September 2020.

He served as Senior Vice President and Chief Operating Officer from October 2020 to May 2022.

He was Senior Vice President and President of the Communications Solutions Group from July 2017 to October 2020.

From May 2016 to July 2017, Mr.

Dhanasekaran served as Keysight’s Vice President and General Manager, Wireless Devices and Operators Business Unit.

From June 2015 to May 2016, Mr.

June 2015 to May 2016, Mr.

Dhanasekaran served as the General Manager of the Mobile Broadband Operation, and from November 2014 through June 2015, he led the marketing function for the Signal Analysis and Signal Sources Division.

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Huei Sin Ee, 57, has served as Keysight’s Senior Vice President and President of the Electronic Industrial Solutions Group since October 2020.

Previously, she was Vice President and General Manager of Keysight’s General Electronics Measurement Solutions from November 2015 to September 2020.

Ee concurrently served as Vice President of Keysight Education from September 2018 to September 2020.

From June 2013 to October 2015, Ms.

Previously, she was Vice President and General Manager of Keysight’s General Electronics Measurement Solutions from November 2015 to October 2020.

Ee concurrently served as Vice President of Keysight Education from September 2018 to October 2020.

From June 2013 to November 2015, Ms.

Ee was the Vice President and General Manager of Keysight’s General-Purpose Electronic Measurement Division.

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Previously, she served as Keysight’s Senior Vice President, Human Resources from December 2013 until August 2017.

From 2011 until December 2013, she served as Vice President and General Manager of Global Sourcing of Agilent from 2011.

Soon Chai Gooi , 61, has served as Senior Vice President, Order Fulfillment and Digital Operations since October 2020 and as Senior Vice President and President of the Electronic Industrial Solutions Group since November 2015.

From 2011 until December 2013, she served as Vice President and General Manager of Global Sourcing of Agilent.

Soon Chai Gooi , 62, has served as Senior Vice President, Order Fulfillment and Digital Operations since October 2020 and as Senior Vice President and President of the Electronic Industrial Solutions Group from November 2015 to October 2020.

From December 2013 to November 2015, Mr.

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Jeffrey Li , 54, has served as Senior Vice President, General Counsel, and Secretary since July 2019.

From December 2013 through July 2019, Mr.

From December 2013 to July 2019, Mr.

Li served as Vice President, Assistant General Counsel, and Assistant Secretary of Keysight, and as Senior Counsel of Agilent from 2011 to December 2013.

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from 2010 to 2014.

John Skinner , 60, has served as Vice President, Corporate Controller and Principal Accounting Officer of Keysight since December 2013.

Prior to that, Mr.

Skinner served as Vice President, Agilent and Controller of Global Infrastructure and Enterprise Financial Planning and Analysis from April 2012 to December 2013.

Lisa Poole , 58, has served as Vice President, Corporate Controller and Principal Accounting Officer of Keysight since August 2023.

From May 2022 to August 2023, Ms.

Poole served as Vice President, Assistant Corporate Controller.

Poole served as Senior Director, Global Financial Reporting and Compliance from May 2021 to May 2022, and from March 2014 to May 2021, she served as the Director, External Financial Reporting.

Mark Wallace, 58, has served as Senior Vice President, Chief Customer Officer since September 2022 and as Senior Vice President of Worldwide Sales from November 2016 to September 2022.

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We make available, free of charge, printed copies of our annual report on Form 10-K, current reports on Form 8-K, and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act as soon as reasonably practicable after filing such material electronically or otherwise furnishing it to the SEC.

Our Corporate Governance Guidelines, the charters of our Audit and Finance Committee, Compensation and Human Capital Committee, Nominating and Corporate Governance Committee, Executive Committee as well as our SBC and Corporate Social Responsibilities reports are available on our website at www.investor.keysight.com under “Corporate Governance.” These items are also available in print to any stockholder in the United States and Canada who requests them by calling (800) 829-4444.

Our Corporate Governance Guidelines, the charters of our Audit and Finance Committee, Compensation and Human Capital Committee, Nominating and Corporate Governance Committee, and Executive Committee, as well as our SBC and Corporate Social Responsibilities reports are available on our website at www.investor.keysight.com under “Corporate Governance.” These items are also available in print to any stockholder in the United States and Canada who requests them by calling (800) 829-4444.

This information is also available by writing to the company at the address on the cover of this Annual Report on Form 10-K.

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.

What changed 10-K

Item 1. Business