8-KOther EventsExhibits & Filings

AGILENT TECHNOLOGIES, INC. 8-K Report, Corporate Update (Jul 1, 2008)

Filed July 1, 2008For Securities:A

Summary

Agilent Technologies, Inc. (Agilent) filed an 8-K on July 1, 2008, to report a change in its segment reporting practices regarding share-based compensation expenses. Previously, these expenses were recognized in GAAP results but excluded from segment reporting. Effective May 1, 2008, Agilent will now include share-based compensation expenses in its segment reporting. This change is intended to align the company with common industry practices and to attribute these costs more directly to business segment leadership, impacting performance evaluation and resource allocation. This adjustment will be applied retrospectively, with historical segment financial information for fiscal years 2006 and 2007, as well as for the first two quarters of fiscal year 2008, being restated to reflect this new methodology. While this change affects segment reporting, it does not alter the company's previously reported GAAP consolidated financial statements. Investors should note that the provided data in Exhibit 99.1 offers a consistent view of historical segment performance under the updated reporting standard.

Key Highlights

  • 1Agilent Technologies is changing its segment reporting to include share-based compensation expenses.
  • 2This change is effective May 1, 2008, and aligns with common industry practices.
  • 3The goal is to assign share-based compensation costs to segment leadership for performance evaluation and resource allocation.
  • 4Historical segment financial information for fiscal years 2006 and 2007 will be restated.
  • 5Quarterly segment information for the fiscal year 2008 (ending Jan 31 and Apr 30) will also be adjusted retrospectively.
  • 6This change impacts segment reporting only and does not revise previously issued GAAP consolidated financial statements.

Frequently Asked Questions

Agilent Technologies is changing how it reports share-based compensation expenses within its segment reporting. Previously, these expenses were excluded from segment results, but now they will be included.

The change is effective as of May 1, 2008. However, Agilent is applying this change retrospectively, meaning that financial information for fiscal years 2006 and 2007, as well as for the quarters ending January 31, 2008, and April 30, 2008, will be restated to reflect this new reporting approach.

No, this change is specific to segment reporting and does not revise or restate Agilent's previously issued GAAP Consolidated Statements of Earnings, Balance Sheets, Shareholders' Equity, or Cash Flows.

Agilent is making this change to be consistent with most publicly traded U.S. companies and to attribute ownership of share-based compensation costs more directly to the business segment leadership, which will use this information for performance evaluation and resource allocation.