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| 8-K - 8-K - Keysight Technologies, Inc. | form8-k.htm |
Exhibit 99.1
Keysight Technologies Announces Change to Segment Reporting
SANTA ROSA, Calif., Jan. 16, 2019 - Keysight Technologies, Inc. (NYSE: KEYS), a leading technology company that helps enterprises, service providers, and governments accelerate innovation to connect and secure the world, today announced that, in the first quarter of fiscal year 2019, it completed an organizational change to align its services business with its customers and end markets.
The alignment of services to the Communications Solutions Group (CSG) and Electronic Industrial Solutions Group (EISG) segments is a logical next step in Keysight’s customer solutions oriented go-to-market strategy, to fully reflect our services delivery within the markets served and further enable services growth. With this change from four reported segments to three, services, which was previously reported as Services Solutions Group (SSG), will now be reported in the segment in which the services are delivered.
Beginning in the first quarter of fiscal year 2019, the company will report segment operating results for: Communications Solutions Group (CSG), Electronic Industrial Solutions Group (EISG) and Ixia Solutions Group (ISG).
Historical Financial Information
Historical financial segment information under the new operating segment structure for the four quarters and full year for fiscal years 2016, 2017 and 2018 is provided below. In addition, the new segment reporting structure also reflects the retrospective application of ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, which the company adopted on November 1, 2018. Additional segment information is available on the company’s website at investor.keysight.com. Keysight historical results in aggregate remain unchanged.
About Keysight Technologies
Keysight Technologies, Inc. (NYSE: KEYS) is a leading technology company that helps enterprises, service providers, and governments accelerate innovation to connect and secure the world. Keysight's solutions optimize networks and bring electronic products to market faster and at a lower cost with offerings from design simulation, to prototype validation, to manufacturing test, to optimization in networks and cloud environments. Customers span the worldwide communications ecosystem, aerospace and defense, automotive, energy, semiconductor and general electronics end markets. Keysight generated revenues of $3.9B in fiscal year 2018. More information is available at www.keysight.com.
# # #
1
Additional information about Keysight Technologies is available in the newsroom at www.keysight.com/go/news and on Facebook, Google+, LinkedIn, Twitter and YouTube.
EDITORIAL CONTACT:
Denise Idone
+ 1 631-849-3500
denise.idone@keysight.com
INVESTOR CONTACT:
Jason Kary
+1 707-577-6916
jason.kary@keysight.com
Source: IR-KEYS
2
Keysight Technologies, Inc.
Communications Solutions Group (CSG)
Restated for ASU 2017-07 and Services Solutions Group (SSG) Realignment
(Unaudited)
2018 | Q1 | Q2 | Q3 | Q4 | FY18 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
($ in millions, except margins data) | As Reported | ASU 2017-07 | SSG | Restated | As Reported | ASU 2017-07 | SSG | Restated | As Reported | ASU 2017-07 | SSG | Restated | As Reported | ASU 2017-07 | SSG | Restated | As Reported | ASU 2017-07 | SSG | Restated | |||||||||||||||||||||||||||||||||||||||||||||
Net revenue | $ | 420 | $ | — | $ | 80 | $ | 500 | $ | 536 | $ | — | $ | 91 | $ | 627 | $ | 515 | $ | — | $ | 89 | $ | 604 | $ | 566 | $ | — | $ | 94 | $ | 661 | $ | 2,037 | $ | — | $ | 354 | $ | 2,392 | |||||||||||||||||||||||||
Cost of goods sold | 164 | 2 | 48 | 214 | 206 | 2 | 54 | 262 | 197 | 2 | 54 | 253 | 205 | 2 | 56 | 263 | 772 | 8 | 212 | 992 | |||||||||||||||||||||||||||||||||||||||||||||
Gross margin % | 60.9 | % | 57.2 | % | 61.7 | % | 58.2 | % | 61.7 | % | 58.1 | % | 63.7 | % | 60.1 | % | 62.1 | % | 58.5 | % | |||||||||||||||||||||||||||||||||||||||||||||
Research and development | 80 | 3 | — | 84 | 87 | 3 | — | 89 | 81 | 3 | 1 | 85 | 83 | 3 | 1 | 87 | 331 | 11 | 2 | 345 | |||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative | 118 | 4 | 20 | 142 | 120 | 3 | 23 | 146 | 124 | 3 | 22 | 149 | 124 | 3 | 26 | 153 | 486 | 13 | 91 | 590 | |||||||||||||||||||||||||||||||||||||||||||||
Other operating expense (income), net | (2 | ) | — | — | (2 | ) | (2 | ) | — | (1 | ) | (3 | ) | (2 | ) | — | — | (2 | ) | (1 | ) | — | (1 | ) | (2 | ) | (7 | ) | — | (2 | ) | (9 | ) | ||||||||||||||||||||||||||||||||
Income from operations | 59 | (8 | ) | 12 | 63 | 126 | (9 | ) | 14 | 132 | 114 | (7 | ) | 13 | 120 | 155 | (8 | ) | 12 | 159 | 454 | (33 | ) | 51 | 474 | ||||||||||||||||||||||||||||||||||||||||
Operating margin % | 14.0 | % | 12.6 | % | 23.5 | % | 21.0 | % | 22.2 | % | 19.8 | % | 27.4 | % | 24.1 | % | 22.3 | % | 19.8 | % | |||||||||||||||||||||||||||||||||||||||||||||
Segment assets | $ | 1,700 | $ | 240 | $ | 1,940 | $ | 1,801 | $ | 254 | $ | 2,055 | $ | 1,801 | $ | 258 | $ | 2,059 | $ | 1,854 | $ | 261 | $ | 2,115 | $ | 1,854 | $ | 261 | $ | 2,115 | |||||||||||||||||||||||||||||||||||
2017 | Q1 | Q2 | Q3 | Q4 | FY17 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
($ in millions, except margins data) | As Reported | ASU 2017-07 | SSG | Restated | As Reported | ASU 2017-07 | SSG | Restated | As Reported | ASU 2017-07 | SSG | Restated | As Reported | ASU 2017-07 | SSG | Restated | As Reported | ASU 2017-07 | SSG | Restated | |||||||||||||||||||||||||||||||||||||||||||||
Net revenue | $ | 434 | $ | — | $ | 76 | $ | 510 | $ | 424 | $ | — | $ | 78 | $ | 502 | $ | 418 | $ | — | $ | 86 | $ | 504 | $ | 462 | $ | — | $ | 86 | $ | 548 | $ | 1,738 | $ | — | $ | 326 | $ | 2,064 | |||||||||||||||||||||||||
Cost of goods sold | 171 | 1 | 46 | 218 | 164 | 1 | 47 | 212 | 163 | 1 | 48 | 212 | 171 | 1 | 50 | 223 | 669 | 3 | 192 | 865 | |||||||||||||||||||||||||||||||||||||||||||||
Gross margin % | 60.5 | % | 57.2 | % | 61.3 | % | 57.7 | % | 61.2 | % | 58.1 | % | 62.9 | % | 59.4 | % | 61.5 | % | 58.1 | % | |||||||||||||||||||||||||||||||||||||||||||||
Research and development | 76 | 2 | — | 78 | 73 | 2 | — | 75 | 75 | 1 | — | 77 | 78 | 2 | — | 80 | 302 | 6 | 1 | 310 | |||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative | 117 | 2 | 19 | 137 | 114 | 2 | 20 | 136 | 116 | 1 | 20 | 138 | 116 | 2 | 23 | 140 | 463 | 6 | 82 | 551 | |||||||||||||||||||||||||||||||||||||||||||||
Other operating expense (income), net | (2 | ) | — | — | (2 | ) | (2 | ) | — | (1 | ) | (3 | ) | (1 | ) | — | (1 | ) | (2 | ) | (2 | ) | — | — | (2 | ) | (7 | ) | — | (2 | ) | (9 | ) | ||||||||||||||||||||||||||||||||
Income from operations | 72 | (4 | ) | 11 | 79 | 75 | (5 | ) | 11 | 81 | 66 | (3 | ) | 17 | 80 | 98 | (4 | ) | 13 | 107 | 311 | (16 | ) | 53 | 347 | ||||||||||||||||||||||||||||||||||||||||
Operating margin % | 16.7 | % | 15.6 | % | 17.6 | % | 16.1 | % | 15.7 | % | 15.9 | % | 21.3 | % | 19.5 | % | 17.9 | % | 16.8 | % | |||||||||||||||||||||||||||||||||||||||||||||
Segment assets | $ | 1,661 | $ | 198 | $ | 1,859 | $ | 1,674 | $ | 207 | $ | 1,881 | $ | 1,679 | $ | 230 | $ | 1,909 | $ | 1,739 | $ | 237 | $ | 1,976 | $ | 1,739 | $ | 237 | $ | 1,976 | |||||||||||||||||||||||||||||||||||
2016 | Q1 | Q2 | Q3 | Q4 | FY16 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
($ in millions, except margins data) | As Reported | ASU 2017-07 | SSG | Restated | As Reported | ASU 2017-07 | SSG | Restated | As Reported | ASU 2017-07 | SSG | Restated | As Reported | ASU 2017-07 | SSG | Restated | As Reported | ASU 2017-07 | SSG | Restated | |||||||||||||||||||||||||||||||||||||||||||||
Net revenue | $ | 440 | $ | — | $ | 73 | $ | 513 | $ | 446 | $ | — | $ | 72 | $ | 519 | $ | 424 | $ | — | $ | 79 | $ | 503 | $ | 442 | $ | — | $ | 83 | $ | 525 | $ | 1,752 | $ | — | $ | 309 | $ | 2,060 | |||||||||||||||||||||||||
Cost of goods sold | 175 | 1 | 44 | 221 | 174 | 1 | 44 | 219 | 162 | 1 | 45 | 209 | 176 | 2 | 48 | 225 | 687 | 6 | 182 | 874 | |||||||||||||||||||||||||||||||||||||||||||||
Gross margin % | 60.1 | % | 57.0 | % | 61.1 | % | 57.8 | % | 61.7 | % | 58.5 | % | 60.3 | % | 57.1 | % | 60.8 | % | 57.6 | % | |||||||||||||||||||||||||||||||||||||||||||||
Research and development | 76 | 2 | 2 | 79 | 76 | 1 | 2 | 79 | 75 | 1 | — | 77 | 76 | 2 | — | 78 | 303 | 6 | 4 | 313 | |||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative | 113 | 2 | 18 | 133 | 115 | 2 | 19 | 137 | 112 | 3 | 19 | 133 | 117 | 3 | 20 | 141 | 457 | 11 | 76 | 544 | |||||||||||||||||||||||||||||||||||||||||||||
Other operating expense (income), net | (3 | ) | — | — | (3 | ) | (2 | ) | — | — | (3 | ) | (2 | ) | — | — | (2 | ) | (2 | ) | — | — | (3 | ) | (9 | ) | — | (2 | ) | (11 | ) | ||||||||||||||||||||||||||||||||||
Income from operations | 78 | (5 | ) | 11 | 83 | 84 | (5 | ) | 7 | 87 | 77 | (5 | ) | 15 | 86 | 75 | (7 | ) | 16 | 84 | 314 | (23 | ) | 49 | 340 | ||||||||||||||||||||||||||||||||||||||||
Operating margin % | 17.7 | % | 16.2 | % | 18.9 | % | 16.7 | % | 18.1 | % | 17.2 | % | 17.1 | % | 15.9 | % | 17.9 | % | 16.5 | % | |||||||||||||||||||||||||||||||||||||||||||||
Segment assets | $ | 1,744 | $ | 198 | $ | 1,942 | $ | 1,798 | $ | 204 | $ | 2,002 | $ | 1,792 | $ | 210 | $ | 2,002 | $ | 1,805 | $ | 210 | $ | 2,015 | $ | 1,805 | $ | 210 | $ | 2,015 | |||||||||||||||||||||||||||||||||||
Keysight adopted ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, retrospectively effective November 1, 2018.
Segment data reflect the results of our reportable segments under Keysight's management reporting system which are not necessarily in conformity with GAAP financial measures. Net revenue for Communications Solutions Group excludes the impact of fair value adjustments to acquisition related deferred revenue balances for the Anite acquisition of $5 million for Q1'16, $4 million for Q2'16, $3 million for Q3'16, $1 million for Q2'17 and $1 million for Q2'18, respectively. Income from operations of our reporting segments exclude, among other things, charges related to the amortization of acquisition-related balances, share based compensation, restructuring and related costs, acquisition and integration costs, separation and related costs, Northern California wildfire-related costs and Goodwill impairment.
The sum of the quarters may not tie to total due to rounding.
1
Keysight Technologies, Inc.
Electronic Industrial Solutions Group (EISG)
Restated for ASU 2017-07 and Services Solutions Group (SSG) Realignment
(Unaudited)
2018 | Q1 | Q2 | Q3 | Q4 | FY18 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
($ in millions, except margins data) | As Reported | ASU 2017-07 | SSG | Restated | As Reported | ASU 2017-07 | SSG | Restated | As Reported | ASU 2017-07 | SSG | Restated | As Reported | ASU 2017-07 | SSG | Restated | As Reported | ASU 2017-07 | SSG | Restated | |||||||||||||||||||||||||||||||||||||||||||||
Net revenue | $ | 203 | $ | 26 | $ | 229 | $ | 255 | $ | — | $ | 26 | $ | 282 | $ | 258 | $ | — | $ | 27 | $ | 285 | $ | 249 | $ | — | $ | 27 | $ | 275 | $ | 965 | $ | — | $ | 106 | $ | 1,071 | |||||||||||||||||||||||||||
Cost of goods sold | 83 | 1 | 15 | 99 | 99 | 1 | 16 | 116 | 95 | 1 | 16 | 112 | 98 | 1 | 15 | 114 | 375 | 3 | 62 | 441 | |||||||||||||||||||||||||||||||||||||||||||||
Gross margin % | 59.0 | % | 56.6 | % | 61.3 | % | 59.0 | % | 63.1 | % | 60.9 | % | 60.6 | % | 58.7 | % | 61.1 | % | 58.9 | % | |||||||||||||||||||||||||||||||||||||||||||||
Research and development | 33 | 1 | — | 34 | 36 | 1 | — | 37 | 36 | 1 | — | 37 | 36 | 1 | — | 37 | 141 | 4 | 1 | 145 | |||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative | 50 | 2 | 6 | 58 | 55 | 1 | 7 | 63 | 55 | 1 | 7 | 63 | 54 | 1 | 7 | 61 | 212 | 5 | 27 | 245 | |||||||||||||||||||||||||||||||||||||||||||||
Other operating expense (income), net | (1 | ) | — | — | (1 | ) | (1 | ) | — | — | (1 | ) | (1 | ) | — | — | (1 | ) | (1 | ) | — | — | (1 | ) | (4 | ) | — | (1 | ) | (4 | ) | ||||||||||||||||||||||||||||||||||
Income from operations | 37 | (3 | ) | 4 | 38 | 67 | (3 | ) | 4 | 68 | 74 | (3 | ) | 5 | 75 | 63 | (3 | ) | 4 | 64 | 241 | (12 | ) | 17 | 245 | ||||||||||||||||||||||||||||||||||||||||
Operating margin % | 18.5 | % | 16.9 | % | 26.0 | % | 23.9 | % | 28.5 | % | 26.5 | % | 25.5 | % | 23.3 | % | 25.0 | % | 22.9 | % | |||||||||||||||||||||||||||||||||||||||||||||
Segment assets | $ | 774 | $ | 72 | $ | 846 | $ | 813 | $ | 75 | $ | 888 | $ | 828 | $ | 77 | $ | 905 | $ | 812 | $ | 76 | $ | 888 | $ | 812 | $ | 76 | $ | 888 | |||||||||||||||||||||||||||||||||||
2017 | Q1 | Q2 | Q3 | Q4 | FY17 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
($ in millions, except margins data) | As Reported | ASU 2017-07 | SSG | Restated | As Reported | ASU 2017-07 | SSG | Restated | As Reported | ASU 2017-07 | SSG | Restated | As Reported | ASU 2017-07 | SSG | Restated | As Reported | ASU 2017-07 | SSG | Restated | |||||||||||||||||||||||||||||||||||||||||||||
Net revenue | $ | 192 | $ | — | $ | 24 | $ | 216 | $ | 220 | $ | — | $ | 24 | $ | 244 | $ | 218 | $ | — | $ | 21 | $ | 239 | $ | 206 | $ | — | $ | 24 | $ | 230 | $ | 836 | $ | — | $ | 93 | $ | 929 | |||||||||||||||||||||||||
Cost of goods sold | 77 | — | 14 | 91 | 84 | — | 13 | 98 | 85 | — | 14 | 99 | 80 | — | 13 | 93 | 326 | 1 | 54 | 381 | |||||||||||||||||||||||||||||||||||||||||||||
Gross margin % | 59.9 | % | 57.6 | % | 61.8 | % | 60.0 | % | 61.1 | % | 58.7 | % | 61.3 | % | 59.6 | % | 61.1 | % | 59.0 | % | |||||||||||||||||||||||||||||||||||||||||||||
Research and development | 28 | — | — | 28 | 31 | — | — | 32 | 30 | — | — | 30 | 32 | 1 | — | 33 | 121 | 2 | — | 123 | |||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative | 46 | 1 | 6 | 53 | 49 | 1 | 6 | 55 | 49 | — | 5 | 55 | 50 | 1 | 6 | 56 | 194 | 3 | 23 | 219 | |||||||||||||||||||||||||||||||||||||||||||||
Other operating expense (income), net | (1 | ) | — | — | (1 | ) | (1 | ) | — | — | (1 | ) | (1 | ) | — | — | (1 | ) | — | — | — | (1 | ) | (3 | ) | — | (1 | ) | (4 | ) | |||||||||||||||||||||||||||||||||||
Income from operations | 42 | (1 | ) | 4 | 44 | 57 | (2 | ) | 5 | 61 | 55 | (1 | ) | 2 | 56 | 45 | (2 | ) | 5 | 48 | 199 | (6 | ) | 15 | 209 | ||||||||||||||||||||||||||||||||||||||||
Operating margin % | 21.7 | % | 20.4 | % | 26.1 | % | 24.8 | % | 25.3 | % | 23.4 | % | 21.8 | % | 21.0 | % | 23.8 | % | 22.5 | % | |||||||||||||||||||||||||||||||||||||||||||||
Segment assets | $ | 746 | $ | 59 | $ | 805 | $ | 764 | $ | 63 | $ | 827 | $ | 772 | $ | 65 | $ | 837 | $ | 798 | $ | 68 | $ | 866 | $ | 798 | $ | 68 | $ | 866 | |||||||||||||||||||||||||||||||||||
2016 | Q1 | Q2 | Q3 | Q4 | FY16 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
($ in millions, except margins data) | As Reported | ASU 2017-07 | SSG | Restated | As Reported | ASU 2017-07 | SSG | Restated | As Reported | ASU 2017-07 | SSG | Restated | As Reported | ASU 2017-07 | SSG | Restated | As Reported | ASU 2017-07 | SSG | Restated | |||||||||||||||||||||||||||||||||||||||||||||
Net revenue | $ | 191 | $ | — | $ | 22 | $ | 213 | $ | 193 | $ | — | $ | 24 | $ | 216 | $ | 191 | $ | — | $ | 24 | $ | 215 | $ | 201 | $ | — | $ | 25 | $ | 226 | $ | 776 | $ | — | $ | 94 | $ | 870 | |||||||||||||||||||||||||
Cost of goods sold | 82 | — | 13 | 96 | 78 | 1 | 14 | 93 | 75 | — | 14 | 89 | 81 | 1 | 15 | 97 | 316 | 2 | 56 | 375 | |||||||||||||||||||||||||||||||||||||||||||||
Gross margin % | 57.2 | % | 55.0 | % | 59.4 | % | 57.0 | % | 60.7 | % | 58.3 | % | 59.6 | % | 57.2 | % | 59.2 | % | 56.9 | % | |||||||||||||||||||||||||||||||||||||||||||||
Research and development | 27 | — | — | 28 | 27 | — | 1 | 29 | 27 | — | — | 27 | 27 | 1 | — | 28 | 108 | 2 | 1 | 112 | |||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative | 46 | 1 | 5 | 52 | 47 | 1 | 6 | 54 | 46 | 1 | 6 | 52 | 47 | 1 | 6 | 54 | 186 | 4 | 23 | 212 | |||||||||||||||||||||||||||||||||||||||||||||
Other operating expense (income), net | (1 | ) | — | — | (1 | ) | (1 | ) | — | — | (1 | ) | (1 | ) | — | — | (1 | ) | (1 | ) | — | — | (1 | ) | (4 | ) | — | — | (4 | ) | |||||||||||||||||||||||||||||||||||
Income from operations | 38 | (2 | ) | 3 | 38 | 40 | (2 | ) | 3 | 42 | 44 | (2 | ) | 4 | 47 | 47 | (3 | ) | 4 | 48 | 169 | (8 | ) | 14 | 175 | ||||||||||||||||||||||||||||||||||||||||
Operating margin % | 19.7 | % | 18.1 | % | 20.9 | % | 19.1 | % | 23.1 | % | 21.5 | % | 23.3 | % | 21.4 | % | 21.8 | % | 20.1 | % | |||||||||||||||||||||||||||||||||||||||||||||
Segment assets | $ | 748 | $ | 59 | $ | 807 | $ | 770 | $ | 63 | $ | 833 | $ | 773 | $ | 64 | $ | 837 | $ | 773 | $ | 63 | $ | 836 | $ | 773 | $ | 63 | $ | 836 | |||||||||||||||||||||||||||||||||||
Keysight adopted ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, retrospectively effective November 1, 2018.
Segment data reflect the results of our reportable segments under Keysight's management reporting system which are not necessarily in conformity with GAAP financial measures. Income from operations of our reporting segments exclude, among other things, charges related to the amortization of acquisition-related balances, share based compensation, restructuring and related costs, acquisition and integration costs, separation and related costs, Northern California wildfire-related costs and Goodwill impairment.
The sum of the quarters may not tie to total due to rounding.
2
Keysight Technologies, Inc.
Ixia Solutions Group (ISG)
Restated for ASU 2017-07 and Services Solutions Group (SSG) Realignment
(Unaudited)
2018 | Q1 | Q2 | Q3 | Q4 | FY18 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
($ in millions, except margins data) | As Reported | ASU 2017-07 | SSG | Restated | As Reported | ASU 2017-07 | SSG | Restated | As Reported | ASU 2017-07 | SSG | Restated | As Reported | ASU 2017-07 | SSG | Restated | As Reported | ASU 2017-07 | SSG | Restated | |||||||||||||||||||||||||||||||||||||||||||||
Net revenue | $ | 127 | $ | — | $ | — | $ | 127 | $ | 90 | $ | — | $ | — | $ | 90 | $ | 119 | $ | — | $ | — | $ | 119 | $ | 115 | $ | — | $ | — | $ | 115 | $ | 451 | $ | — | $ | — | $ | 451 | |||||||||||||||||||||||||
Cost of goods sold | 31 | — | — | 31 | 22 | — | — | 22 | 29 | — | — | 29 | 34 | — | — | 34 | 116 | — | — | 116 | |||||||||||||||||||||||||||||||||||||||||||||
Gross margin % | 75.6 | % | 75.5 | % | 75.8 | % | 75.6 | % | 75.6 | % | 75.5 | % | 70.5 | % | 70.3 | % | 74.3 | % | 74.2 | % | |||||||||||||||||||||||||||||||||||||||||||||
Research and development | 25 | — | — | 26 | 30 | — | — | 30 | 31 | — | — | 31 | 32 | — | — | 32 | 118 | 1 | — | 119 | |||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative | 52 | — | — | 53 | 46 | 1 | — | 47 | 49 | 1 | — | 50 | 49 | 1 | — | 49 | 196 | 3 | — | 199 | |||||||||||||||||||||||||||||||||||||||||||||
Other operating expense (income), net | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Income from operations | 18 | — | — | 18 | (7 | ) | (2 | ) | — | (10 | ) | 10 | (1 | ) | — | 9 | — | (1 | ) | — | (1 | ) | 21 | (4 | ) | — | 16 | ||||||||||||||||||||||||||||||||||||||
Operating margin % | 14.5 | % | 14.1 | % | (8.4 | )% | (10.6 | )% | 8.1 | % | 7.1 | % | 0.4 | % | (0.5 | )% | 4.7 | % | 3.6 | % | |||||||||||||||||||||||||||||||||||||||||||||
Segment assets | $ | 2,056 | $ | — | $ | 2,056 | $ | 2,018 | $ | — | $ | 2,018 | $ | 2,036 | $ | — | $ | 2,036 | $ | 1,327 | $ | — | $ | 1,327 | $ | 1,327 | $ | — | $ | 1,327 | |||||||||||||||||||||||||||||||||||
2017 | Q1 | Q2(a) | Q3 | Q4 | FY17 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
($ in millions, except margins data) | As Reported | ASU 2017-07 | SSG | Restated | As Reported | ASU 2017-07 | SSG | Restated | As Reported | ASU 2017-07 | SSG | Restated | As Reported | ASU 2017-07 | SSG | Restated | As Reported | ASU 2017-07 | SSG | Restated | |||||||||||||||||||||||||||||||||||||||||||||
Net revenue | — | — | — | — | $ | 12 | $ | — | $ | — | $ | 12 | $ | 120 | $ | — | $ | — | $ | 120 | $ | 124 | $ | — | $ | — | $ | 124 | $ | 256 | $ | — | $ | — | $ | 256 | |||||||||||||||||||||||||||||
Cost of goods sold | — | — | — | — | 3 | — | — | 3 | 27 | — | — | 27 | 30 | — | — | 30 | 60 | — | — | 60 | |||||||||||||||||||||||||||||||||||||||||||||
Gross margin % | — | — | — | — | 77.1 | % | 77.0 | % | 77.0 | % | 76.8 | % | 76.2 | % | 76.2 | % | 76.6 | % | 76.5 | % | |||||||||||||||||||||||||||||||||||||||||||||
Research and development | — | — | — | — | 4 | — | — | 4 | 21 | — | — | 21 | 25 | — | — | 26 | 50 | — | — | 51 | |||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative | — | — | — | — | 7 | — | — | 7 | 47 | — | — | 47 | 49 | — | — | 49 | 103 | — | — | 103 | |||||||||||||||||||||||||||||||||||||||||||||
Other operating expense (income), net | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Income from operations | — | — | — | — | (2 | ) | — | — | (2 | ) | 24 | — | — | 24 | 20 | — | — | 20 | 42 | — | — | 42 | |||||||||||||||||||||||||||||||||||||||||||
Operating margin % | — | — | — | — | (12.9 | )% | (13.1 | )% | 19.9 | % | 19.6 | % | 16.4 | % | 16.2 | % | 16.6 | % | 16.3 | % | |||||||||||||||||||||||||||||||||||||||||||||
Segment assets | — | — | — | — | $ | 1,959 | $ | — | $ | 1,959 | $ | 2,055 | $ | — | $ | 2,055 | $ | 2,063 | $ | — | $ | 2,063 | $ | 2,063 | $ | — | $ | 2,063 | |||||||||||||||||||||||||||||||||||||
(a) The Ixia Solutions Group operating results include activity for 13 days during the period, from the date of acquisition, April 18, 2017, through April 30, 2017.
Keysight adopted ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, retrospectively effective November 1, 2018.
Segment data reflect the results of our reportable segments under Keysight's management reporting system which are not necessarily in conformity with GAAP financial measures. Net revenue for Ixia Solutions Group excludes the impact of fair value adjustments to acquisition related deferred revenue balances for the Ixia acquisition of $4 million for Q2'17, $31 million for Q3'17, $24 million for Q4'17, $19 million for Q1'18, $8 million for Q2'18, $4 million for Q3'18 and $4 million for Q4'18, respectively. Income from operations of our reporting segments exclude, among other things, charges related to the amortization of acquisition-related balances, share based compensation, restructuring and related costs, acquisition and integration costs, separation and related costs, Northern California wildfire-related costs, Goodwill impairment.
The sum of the quarters may not tie to total due to rounding.
3