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item number . managements discussion and analysis of financial condition and results of operations unaudited the following discussion should be read in conjunction with the condensed consolidated financial statements and notes thereto included elsewhere in this form and our annual report on form this report contains statements including without limitation statements regarding growth opportunities including for revenue and our end markets strength and drivers of the markets we sell into sales funnels our strategic direction new product and service introductions and the position of our current products and services market demand for and adoption of our products the ability of our products and solutions to address customer needs and meet industry requirements our focus on differentiating our product solutions improving our customers experience and growing our earnings future financial results our operating margin mix our investments including in manufacturing infrastructure research and development and expanding and improving our applications and solutions portfolios expanding our position in developing countries and emerging markets our focus on balanced capital allocation our contributions to our pension and other defined benefit plans impairment of goodwill and other intangible assets the effect of the tax cuts and jobs act of date and and other tariffs the impact of foreign currency movements our hedging programs and other actions to offset the effects of tariffs and foreign currency movements our future effective tax rate tax valuation allowance and unrecognized tax benefits the impact of local government regulations on our ability to pay vendors or conduct operations our ability to satisfy our liquidity requirements including through cash generated from operations the potential impact of adopting new accounting pronouncements indemnification source and supply of materials used in our products our sales our purchase commitments our capital expenditures the integration and effects of our acquisitions and other transactions our stock repurchase program and dividends that involve risks and uncertainties . our actual results could differ materially from the results contemplated by these statements due to various factors including those discussed in part ii item and elsewhere in this form . basis of presentation the financial information presented in this form is not audited and is not necessarily indicative of our future consolidated financial position results of operations comprehensive income loss or cash flows . our fiscal is october number and our fiscal quarters end on january number april number and july number . unless otherwise stated these dates refer to our fiscal year and fiscal periods . executive summary agilent technologies we agilent or the company incorporated in delaware in may date is a global leader in life sciences diagnostics and applied chemical markets providing application focused solutions that include instruments software services and consumables for the entire laboratory workflow . on november number date we acquired number percent of the stock of acea biosciences acea a developer of cell analysis tools for approximately number million in cash . the financial results of acea have been included within our financial results from the date of the close . net revenue of number million year . foreign currency movements for the three months ended january approximately number percentage points when compared to the same period last year . revenue in the life sciences and applied markets business year . foreign currency movements for the three months ended january when compared to the same period last year . revenue in the diagnostics and genomics business year . foreign currency movements for the three months ended january when compared to the same period last year . revenue generated by agilent crosslab in the three months ended january year . foreign currency movements for the three months ended january when compared to the same period last year . net income for the three months ended january number date was number million compared to net loss of number million for the corresponding period last year . net income for the three months ended january number date was impacted by a discrete benefit of number million related to the restructuring and extension of the companys tax incentive in net income for the three months ended january number date was impacted by a discrete tax charge of number million related to the enactment of the tax cuts and jobs act the tax act . see note number income taxes for more details . in the three months ended january number date cash generated from operations was number million compared to number million in the same period last year . for the three months ended january number date and date cash dividends of number million and number million respectively were paid on the company outstanding common stock . on november number date we announced that our board of directors had approved a new share repurchase program the date repurchase program designed among other things to reduce or eliminate dilution resulting from issuance of stock under the company employee equity incentive programs . the date repurchase program authorizes the purchase of up to number billion of our common stock at the company discretion and has no fixed termination date . the date repurchase program does not require the company to acquire a specific number of shares and may be suspended amended or discontinued at any time . during the three months ended january number date we repurchased and retired approximately number million shares for number million under this authorization . as of january number date we had remaining authorization to repurchase up to number billion of our common stock under this program . on may number date we announced that our board of directors had approved a new share repurchase program the date repurchase program . the date repurchase program authorized the purchase of up to number billion of our common stock at the company discretion through and including november number the date repurchase program did not require the company to acquire a specific number of shares and could have been suspended or discontinued at any time . during the three months ended january number date we repurchased number shares for number million under this authorization . as of january number date we retired approximately number shares of the number shares purchased in the period and the remaining number shares purchased were retired in februaryon november number date the remaining authorization of number million under this repurchase program expired . looking forward we continue to focus on differentiating product solutions improving our customers experience and growing our earnings . in addition we remain focused on a balanced capital allocation through our dividend and share repurchase programs . we expect foreign currency to negatively impact revenue for the rest of date but we also anticipate the contribution from our recent acquisitions to partially offset the currency impact . critical accounting policies and estimates managements discussion and analysis of financial condition and results of operations is based upon our condensed consolidated financial statements which have been prepared in accordance with generally accepted accounting principles gaap in the the preparation of condensed consolidated financial statements in conformity with gaap in the requires management to make estimates judgments and assumptions that affect the amounts reported in our condensed consolidated financial statements and accompanying notes . our critical accounting policies are those that affect our financial statements materially and involve difficult subjective or complex judgments by management . those policies are revenue recognition inventory valuation compensation retirement and benefit plan assumptions goodwill and purchased intangible assets and accounting for income taxes . other than accounting for revenue recognition and income taxes as described below there have been no significant changes to our critical accounting policies as described in our annual report on form for the fiscal year ended october number management bases its estimates on historical experience and various other assumptions believed to be reasonable . although these estimates are based on managements best knowledge of current events and actions that may impact the company in the future actual results may be different from the estimates . an accounting policy is deemed to be critical if it requires an accounting estimate to be made based on assumptions about matters that are highly uncertain at the time the estimate is made and if different estimates that reasonably could have been used or changes in the accounting estimate that are reasonably likely to occur could materially change the financial statements . revenue recognition . on november number date we adopted accounting standard codification topic number revenue from contracts with customers asc number . we enter into agreements to sell products hardware software services and other arrangements multiple element arrangements that include combinations of products and services . we derive revenue primarily from the sale of analytical and diagnostics products and services . a performance obligation is a promise in a contract to transfer a distinct product or service to a customer and is the unit of account under asc number . revenue is recognized when control of the promised products or services is transferred to our customers and the performance obligation is fulfilled in an amount that reflects the consideration that we expect to be entitled to in exchange for those products or services the transaction price . for equipment consumables and most software licenses sold by us control transfers to the customer at a point in time . we use present right to payment legal title physical possession of the asset and risks and rewards of ownership as indicators to determine the transfer of control to the customer . where acceptance is not a formality the customer must have documented their acceptance of the product or service . for products that include installation if the installation meets the criteria to be considered a separate performance obligation product revenue is recognized when control has passed to the customer and recognition of installation revenue occurs once completed . product revenue including sales to resellers and distributors is reduced for provisions for warranties returns and other adjustments in the period the related sales are recorded . revenue from services includes extended warranty customer and software support including : software as a service post contract support consulting including companion diagnostics and training and education . instrument service contracts and software maintenance contracts are typically annual contracts which are billed at the beginning of the contract or maintenance period . these contracts are recognized on a basis to revenue over the service period as a measure of progress best reflects our performance in satisfying this obligation . there are no deferred costs associated with the service contract as the cost of the service is recorded when the service is performed . service calls are recognized to revenue at the time a service is performed . we have sales from standalone software . these arrangements typically include software licenses and maintenance contracts both of which we have determined are distinct performance obligations . we determine the amount of the transaction price to allocate to the license and maintenance contract based on the relative standalone selling price of each performance obligation . software license revenue is recognized at the point in time when control has been transferred to the customer . the revenue allocated to the software maintenance contract is recognized on a basis over the maintenance period which is the contractual term of the contract as a measure of progress best reflects our performance in satisfying this obligation . unspecified rights to software upgrades are typically sold as part of the maintenance contract on a basis . our arrangements are generally comprised of a combination of instruments installation or other services software support or services . hardware and software elements are typically delivered at the same time and revenue is recognized when control passes to the customer . service revenue is deferred and recognized over the contractual period or as services are rendered and accepted by the customer . our arrangements generally do not include any provisions for cancellation termination or refunds that would significantly impact recognized revenue . for contracts with multiple performance obligations we allocate the consideration to which we expect to be entitled to each performance obligation based on relative standalone selling prices and recognize the related revenue when or as control of each individual performance obligation is transferred to customers . we estimate the standalone selling price by calculating the average historical selling price of our products and services per country for each performance obligation . selling prices are determined at contract inception for each distinct good or service in the contract and then we allocate the transaction price in proportion to those standalone selling prices by performance obligations . certain of our revenue relate to lease arrangements . standalone lease arrangements are outside the scope of asc number and are therefore accounted for in accordance with asc number leases . each of these contracts is evaluated as a lease arrangement either as an operating lease or a capital lease using the current lease classification guidance . accounting for income taxes . we must make certain estimates and judgments in determining income tax expense for financial statement purposes . these estimates and judgments occur in the calculation of tax credits benefits and deductions and in the calculation of certain tax assets and liabilities which arise from differences in the timing of recognition of revenue and expense for tax and financial statement purposes as well as interest and penalties related to uncertain tax positions . significant changes to these estimates may result in an increase or decrease to our tax provision in a subsequent period . on a quarterly basis we provide for income taxes based upon an estimated annual effective tax rate . the effective tax rate is highly dependent upon the geographic composition of worldwide earnings tax regulations governing each region availability of tax credits and the effectiveness of our tax planning strategies . we monitor the changes in many factors and adjust our effective income tax rate on a timely basis . if actual results differ from these estimates this could have a material effect on our financial condition and results of operations . significant management judgment is also required in determining whether deferred tax assets will be realized in full or in part . when it is that all or some portion of deferred tax assets may not be realized a valuation allowance must be established against such deferred tax assets . we consider all available positive and negative evidence on a basis when assessing whether it is more likely than not that deferred tax assets are recoverable . we consider evidence such as our past operating results the existence of losses in recent years and our forecast of future taxable income . at january number date we continue to recognize a valuation allowance for certain and state and foreign deferred tax assets . we intend to maintain a valuation allowance in these jurisdictions until sufficient positive evidence exists to support its reversal . the calculation of our tax liabilities involves dealing with uncertainties in the application of complex tax law and regulations in a multitude of jurisdictions . although the guidance on the accounting for uncertainty in income taxes prescribes the use of a recognition and measurement model the determination of whether an uncertain tax position has met those thresholds will continue to require significant judgment by management . in accordance with the guidance on the accounting for uncertainty in income taxes for all and other tax jurisdictions we recognize potential liabilities for anticipated tax audit issues based on our estimate of whether and the extent to which additional taxes and interest will be due . the ultimate resolution of tax uncertainties may differ from what is currently estimated which could result in a material impact on income tax expense . if our estimate of income tax liabilities proves to be less than the ultimate assessment a further charge to expense would be required . if events occur and the payment of these amounts ultimately proves to be unnecessary the reversal of the liabilities would result in tax benefits being recognized in the period when we determine the liabilities are no longer necessary . we include interest and penalties related to unrecognized tax benefits within the provision for income taxes on the consolidated statements of operations . on december number date the tax act was enacted into law . the tax act significantly changes the existing tax law and includes numerous provisions that affect our business . there were no substantial changes from our date annual report on form to the transition tax expenses amount . the company will continue to assess the impact of the further guidance from federal and state tax authorities on its business and consolidated financial statements . any future adjustments will be recognized as discrete income tax expense or benefit in the period the adjustments are determined . we have completed our analysis and elected to treat gilti as current period cost . see note number income taxes for more details . adoption of new pronouncements see note number new accounting pronouncements to the condensed consolidated financial statements for a description of new accounting pronouncements . foreign currency our revenues costs and expenses and monetary assets and liabilities are exposed to changes in foreign currency exchange rates as a result of our global operating and financing activities . the unfavorable effects of changes in foreign currency exchange rates has decreased revenue by approximately number percentage points in the three months ended january number when movements in foreign currency exchange rates have a negative impact on revenue it will also have a positive impact on our costs and expenses . we calculate the impact of foreign currency exchange rates movements by applying the actual foreign currency exchange rates in effect during the last month of each quarter of the current year to both the applicable current and prior year periods . we hedge revenues expenses and balance sheet exposures that are not denominated in the functional currencies of our subsidiaries on a short term and anticipated basis . we do experience some fluctuations within individual lines of the condensed consolidated statement of operations and balance sheet because our hedging program is not designed to offset the currency movements in each category of revenues expenses monetary assets and liabilities . our hedging program is designed to hedge currency movements on a relatively basis up to a rolling period . therefore we are exposed to currency fluctuations over the longer term . to the extent that we are required to pay for all or portions of an acquisition price in foreign currencies we may enter into foreign exchange contracts to reduce the risk that currency movements will impact the dollar cost of the transaction . results from operations net revenue net revenue of number million year . foreign currency movements for the three months ended january number date had a unfavorable impact on revenue of approximately number percentage points when compared to the same period last year . services and other revenue increased number percent for the three months ended january number date when compared to the same period last year . services and other revenue primarily consists of revenue generated from agilent crosslab services and services in the diagnostics and genomics business including consulting services related to the companion diagnostics and nucleic acid businesses . some of the prominent services include repair and maintenance on instruments compliance services and installation services . for the three months ended january number date agilent crosslab business service revenue increased number percent with a number percentage point unfavorable currency impact when compared to the same period last year . the increase in the agilent crosslab and diagnostics and genomics service revenue continuing business growth in nearly the entire portfolio in all regions . net revenue by segment revenue in the life sciences and applied markets business year . foreign currency movements for the three months ended january when compared to the same period last year . for the three months ended january number date revenue growth was led by continued strength in the pharmaceutical market . revenue growth was also strong in the academia and government and environmental markets partially offset by a decline in growth in the food and chemical and energy markets in the three months ended january number revenue in the diagnostics and genomics business year . foreign currency movements for the three months ended january when compared to the same period last year . for the three months ended january number date revenue growth within the diagnostics and clinical market continued to improve across all businesses led by strong performance from our nucleic acid solutions business . revenue generated by agilent crosslab in the three months ended january year . foreign currency movements for the three months ended january when compared to the same period last year . for the three months ended january number date revenue grew across all key end markets with strong growth in the academia and government forensics and environmental and pharmaceutical markets . operating results total gross margin for the three months ended january number date was relatively flat when compared to the same period last year . gross margin for the three months ended january number date reflects higher sales volume and lower compensation expense offset by increased wages higher expenses related to tariffs and higher amortization expense of intangible assets . research and development expenses in the three months ended january year . research and development expenses increased due to increased program spending on new products related to all of our businesses in addition to higher wages and additional expenses related to acquired businesses when compared to spending in the same period last year . selling general and administrative expenses increased number percent in the three months ended january number date when compared to the same period last year . the increase in selling general and administrative expenses for the three months ended january number date was due to increased wages higher acquisition and integration costs partially offset by lower compensation expenses and favorable currency impact . total operating margin for the three months ended january number date increased approximately number percentage point when compared to the same period last year . operating margin for the three months ended january number date was impacted by higher sales volume and lower compensation expense partially offset by increased wages higher acquisition and integration costs higher expenses related to tariffs and higher amortization expense of intangible assets . at january number date our headcount was approximately number as compared to approximately number at january number the increase in headcount is mainly due to the acquisition of several businesses and employees in our service business . other income expense net in the three months ended january number date and date other income expense net includes number million of income in both periods related to the provision of site service costs to and lease income from keysight technologies the costs associated with these services are reported within income from operations . also included in other income expense net for the three months ended january number date is a number million pension settlement gain related to the substitutional portion of the defined benefit pension plans established under the japanese welfare pension insurance law . income taxes for the three months ended january number date the company income tax benefit was number million with an effective tax rate of number percent . for the three months ended january number date our effective tax rate and the resulting provision for income taxes were significantly impacted by the discrete benefit of number million related to the restructuring and extension of the companys tax incentive in singapore . the income taxes for the three months ended january number date also includes the excess tax benefits of number million from compensation . we completed a restructuring of our operations in singapore in december date which extended and the companys tax incentive restructuring with the application of the new accounting rules under transfer of assets on november number date resulted in a number million tax benefit in the first quarter of fiscal the three months ended january number date the company income tax expense was number million with an effective tax rate ofpercent . the effective tax rate and the provision for income taxes were significantly impacted by a discrete charge of number million related to the enactment of the tax cuts and jobs act the tax act . the income taxes provision for the three months ended january number date also includes the excess tax benefits of number million from stock based . tax reform tax cuts and jobs act on december number date the tax act was enacted into law . the tax act enacted significant changes affecting our fiscal year date including but not limited to number reducing the federal corporate tax rate and number imposing a transition tax on certain unrepatriated earnings of foreign subsidiaries that had not been previously taxed in the the tax act also establishes new tax provisions affecting our fiscal year date including but not limited to number creating a new provision designed to tax global intangible income gilti ; number generally eliminating federal taxes on dividends from foreign subsidiaries ; number eliminating the corporate alternative minimum tax amt ; number creating the base erosion tax beat ; number establishing a deduction for foreign derived intangible income fdii ; number repealing the domestic production activity deduction ; and number establishing new limitations on deductible interest expense and certain executive compensation . gilti : the tax act subjects a corporation to tax on its gilti . the gaap allows companies to make an accounting policy election to either number treat taxes due on future gilti inclusions in the taxable income as a expense when incurred period cost method or number factoring such amounts into a companys measurement of its deferred taxes deferred method . we have completed our analysis and elected to treat gilti as a current period cost . in the tax years remain open back to the year date for federal income tax purposes and the year date for significant states . in other major jurisdictions where the company conducts business the tax years generally remain open back to the yearthere were no substantial changes from our date annual report on form to the status of the open tax years in the first three months of fiscal yearit is reasonably possible there could be significant changes to our unrecognized tax benefits in the next twelve months due to either the expiration of a statute of limitation or a tax audit settlement . given the number of years and numerous matters that remain subject to examination in various tax jurisdictions management is unable to estimate the range of possible changes to the balance of our unrecognized tax benefits . segment overview in date we adopted new guidance related to the presentation of the net periodic pension and postretirement benefit cost . see note number new accounting pronouncements for more information . as a result we have recast our historical segment results to conform to this new presentation required under this guidance . also in the third quarter of date we our operating segments and moved the microfluidics business from our life sciences and applied markets operating segment to our diagnostics and genomics operating segment . following this we continue to have three business segments comprised of the life sciences and applied markets business diagnostics and genomics business and the agilent crosslab business . all historical financial segment information for both the life sciences and applied markets segment and the diagnostics and genomics segment has been recast to reflect this reorganization in our financial statements . life sciences and applied markets our life sciences and applied markets business provides solutions that include instruments and software that enable customers to identify quantify and analyze the physical and biological properties of substances and products as well as enable customers in the clinical and life sciences research areas to interrogate samples at the molecular and cellular level . key product categories include : liquid chromatography lc systems and components ; liquid chromatography mass spectrometry lcms systems ; gas chromatography gc systems and components ; gas chromatography mass spectrometry gcms systems ; inductively coupled plasma mass spectrometry instruments ; atomic absorption aa instruments ; microwave emission spectrometry instruments ; inductively coupled plasma optical emission spectrometry instruments ; raman spectroscopy ; cell analysis plate based assays ; flow cytometer ; cell analyzer ; laboratory software for sample tracking ; information management and analytics ; laboratory automation and robotic systems ; dissolution testing ; vacuum pumps and measurement technologies . net revenue life sciences and applied markets business revenue year . foreign currency movements for the three months ended january when compared to the same period last year . revenue from our recent acquisition contributed number percentage points to our revenue growth in the three months ended january number geographically revenue increased number percent in the americas with number percentage point unfavorable currency impact decreased number percent in europe with a number percentage point unfavorable currency impact and increased number percent in asia pacific with a number percentage point unfavorable currency impact for the three months ended january number date compared to the same period last year . strong revenue growth during the three months ended january number date in liquid chromatography gas chromatography mass spectrometry informatics and cell analysis products was partially offset by weaker sales in liquid chromatography mass spectrometry and gas chromatography when compared to the same period last year . for the three months ended january number date revenue results by end markets were mixed with the pharmaceutical and environmental markets continuing to deliver strong revenue growth while the food and chemical and energy markets delivered weaker results when compared to the same period last year . revenue growth in the academia and government markets was also strong driven by performance of our cell analysis products which includes products from our recent acquisition . looking forward we are optimistic about our growth opportunities in the life sciences and applied markets as our broad portfolio of products and solutions are well suited to address customer needs . we anticipate strong sales funnels given new product introductions as we continue to invest in expanding and improving our applications and solutions portfolio . while we anticipate volatility in our markets we expect continued growth across most end markets . operating results gross margin for products and services for the three months ended january number date was flat when compared to the same period last year . gross margin for the three months ended january number date was impacted by higher expenses related to tariffs and logistics costs which was offset by favorable currency impact . research and development expenses year . the increase in research and development for the three months ended january number date was due to additional expenses related to our recent acquisition as well as annual wage and benefit increases partially offset by favorable currency impact . selling general and administrative expenses for the three months ended january number date was flat when compared to the same period last year . selling general and administrative expenses for the three months ended january number date was impacted by annual wage and benefit increases and additional expenses related to our recent acquisition offset by lower spending and planned operational savings and favorable currency impact . operating margin for product and services for the three months ended january number date increased when compared to the same period last year . operating margin for the three months ended january number date reflects moderate revenue growth and the favorable impact of currency on selling general and administrative expenses . income from operations income from operations million on a corresponding revenue increase of number million . diagnostics and genomics our diagnostics and genomics business includes the genomics nucleic acid contract manufacturing and research and development pathology companion diagnostics reagent partnership and biomolecular analysis businesses . our diagnostics and genomics business is comprised of six areas of activity providing active pharmaceutical ingredients apis for therapeutics as well as solutions that include reagents instruments software and consumables which enable customers in the clinical and life sciences research areas to interrogate samples at the cellular and molecular level . first our genomics business includes arrays for dna mutation detection genotyping gene copy number determination identification of gene rearrangements dna methylation profiling gene expression profiling as well as next generation sequencing ngs target enrichment and genetic data management and interpretation support software . this business also includes solutions that enable clinical labs to identify dna variants associated with genetic disease and help direct cancer therapy . second our nucleic acid solutions business provides equipment and expertise focused on production of synthesized oligonucleotides under pharmaceutical good manufacturing practices gmp conditions for use as api in an emerging class of drugs that utilize nucleic acid molecules for disease therapy . third our pathology solutions business is focused on product offerings for cancer diagnostics and anatomic pathology workflows . the broad portfolio of offerings includes immunohistochemistry ihc in situ hybridization ish hematoxylin and eosin h e staining and special staining . fourth we also collaborate with a number of major pharmaceutical companies to develop new potential pharmacodiagnostics also known as companion diagnostics which may be used to identify patients most likely to benefit from a specific targeted therapy . fifth the reagent partnership business is a provider of reagents used for turbidimetry and flow cytometry . finally our biomolecular analysis business provides complete workflow solutions including instruments consumables and software for quality control analysis of nucleic acid samples . samples are analyzed using quantitative and qualitative techniques to ensure accuracy in further genomics analysis techniques utilized in clinical and life science research applications . net revenue diagnostics and genomics business revenue year . foreign currency movements for the three months ended january when compared to the same period last year . geographically revenue increased number percent in the americas with a number percentage point unfavorable currency impact increased number percent in europe with a number percentage point unfavorable currency impact and increased number percent in asia pacific with a number percentage point unfavorable currency impact for the three months ended january number date compared to the same period last year . for the three months ended january number date the growth in americas was driven by strong growth in our nucleic acid solutions and companion diagnostic businesses and continued strength in our pathology and microfluidics businesses . the performance in europe was driven by growth in our reagent partnership and genomics businesses . in asia pacific the growth was driven by our reagent partnership and pathology businesses . for the three months ended january number date the diagnostics and genomics business revenue grew by number percent with positive growth in all businesses and regions . the global growth was led by very strong revenue performance in our nucleic acid solutions business . the end markets in diagnostics and clinical research remain strong and growing driven by an aging population and unhealthy lifestyle . looking forward we are optimistic about our growth opportunities in the diagnostics markets and continue to invest in expanding and improving our applications and solutions portfolio . we remain positive about our growth in these markets as our omnis products assays and surefish continue to gain strength with our customers in clinical oncology applications and our next generation sequencing target enrichment solutions continue to be adopted . market demand in the nucleic acid solutions business related to therapeutic oligo programs continues to be strong . we are investing in building further capacity in our nucleic acid solutions business to address the future demand for the oligos . we will continue to invest in research and development and seek to expand our position in developing countries and emerging markets . operating results gross margin for products and services for the three months ended january number date was flat when compared to the same period last year as gains from higher volumes were partially offset by an unfavorable product mix . research and development expenses year . the increase in research and development for the three months ended january number date was due to prior year acquisitions higher wages and benefits and increased spending around the development of clinical applications and solutions . selling general and administrative expenses for the three months ended january number date was flat when compared to the same period last year . this was by a favorable currency impact lower spending and planned savings in field selling costs offset by incremental expenses from our prior year acquisitions . operating margin for product and services percentage points when compared to the same period last year . the increase in operating margin for the three months ended january number date was mainly due to higher revenue volumes . income from operations income from operations million on a corresponding revenue increase of number million due to higher revenue volumes . agilent crosslab the agilent crosslab business spans the entire lab with its extensive consumables and services portfolio which is designed to improve customer outcomes . most of the portfolio is vendor neutral meaning agilent can serve and supply customers regardless of their instrument purchase choices . solutions range from chemistries and supplies to services and software helping to connect the entire lab . key product categories in consumables include gc and lc columns sample preparation products custom chemistries and a large selection of laboratory instrument supplies . services include startup operational training and compliance support software as a service as well as asset management and consultative services that help increase customer productivity . custom service and consumable bundles are tailored to meet the specific application needs of various industries and to keep instruments fully operational and compliant with the respective industry requirements . net revenue agilent crosslab business revenue year . foreign currency movements for the three months ended january when compared to the same period last year . geographically revenue increased number percent in the americas with a number percentage point unfavorable currency impact increased number percent in europe with a number percentage point unfavorable currency impact and increased number percent in asia pacific with a number percentage point unfavorable currency impact for the three months ended january number date compared to the same period last year . during the three months ended january number date the revenue growth was driven by growth in nearly our entire service portfolio and our remarketed instrument business . for the three months ended january number date the agilent crosslab business saw revenue growth in all key end markets . the growth was especially strong in the academia and government forensics and environmental and the pharmaceutical markets . looking forward we anticipate that the balanced strength in nearly all key end markets will continue to drive the revenue growth in the near term . the agilent crosslab portfolio of products and services are well positioned to succeed in both and market conditions in any of our key end markets . geographically the business is well diversified across all regions to swiftly take advantage of regional market opportunities and to help hedge against volatility in any one region . other factors for near term revenue growth include the geographic expansion of our remarketed instrument business and in our continuing expansion of our sales channel . operating results gross margin for products and services percentage point when compared to the same period last year primarily due to gains from currency hedging contracts and lower compensation expense . in addition gross margin was positively impacted by improvements to the operational efficiency of the service delivery business . research and development expenses periods last year . the increase in research and development for the three months ended january number date was primarily due to higher wages which were partially offset by favorable impact from foreign currency movements and lower compensation expense . selling general and administrative expenses year . the increase in selling general and administrative expenses for the three months ended january number date was primarily due to higher wages which was partially offset by a favorable impact from foreign currency movements and lower compensation expense . operating margin for product and services for the three months ended january number date increased approximately number percentage points when compared to the same period last year . the improvement was driven by the strong growth in revenues combined with only a modest growth in the operating expenses which was by the lower compensation expense . income from operations income from operations million on a corresponding revenue increase of number million . financial condition liquidity and capital resources our financial position as of january number date consisted of cash and cash equivalents of number million as compared to number million as of october number as of january number date number million of our cash and cash equivalents was held outside of the in our foreign subsidiaries and can be repatriated to the as local working capital and other regulatory conditions permit . as a result of the tax act our cash and cash equivalents are no longer subjected to federal tax on into the we utilize a variety of funding strategies to ensure that our worldwide cash is available in the locations in which it is needed . as a result of the tax act we are required to pay a transition tax of number million on deferred foreign income not previously subject to federal income tax . the transition tax is payable beginning this fiscal year over eight years with number percent due in each of the first years number percent in year six number percent in year seven and number percent in year eight . we believe our cash and cash equivalents cash generated from operations and ability to access capital markets and credit lines will satisfy for at least the next twelve months our liquidity requirements both globally and domestically including the following : working capital needs capital expenditures business acquisitions stock repurchases cash dividends contractual obligations commitments principal and interest payments on debt and other liquidity requirements associated with our operations . net cash provided by operating activities net cash inflow from operating activities was number million for the three months ended january number date compared to cash inflow of number million for the same period inin the three months ended january number date we paid approximately number million under our variable and incentive pay programs as compared to a total of number million paid during the same period ofnet cash paid for income taxes was approximately number million and number million in the three months ended january number date and date respectively . for the three months ended january number date the net change in assets and liabilities related to the enactment of the tax act of zero compared to number million in the same period in the prior year which primarily consisted of an estimated provision of number million of transition tax on deemed repatriated earnings of subsidiaries as well as an estimated number million associated with the impact of the decreased corporate income tax rate . for the three months ended january number date deferred taxes used cash of number million compared to cash used of number million in the same period inthe cash used in january number date primarily to the restructuring of our operations in singapore of number million . for the three months ended january number date other assets and liabilities have cash inflow of number million compared to cash inflow of number million for the same period incash inflow in the three months ended january number date and date in other assets and liabilities was related to changes in transaction tax receivables and deferred revenue . in the three months ended january number date accounts receivable used cash of number million compared to cash used of number million for the same period indays sales outstanding as of january number date and date was number days and number days respectively . accounts payable used cash of number million for the three months ended january number date compared to cash used of number million in the same period incash used for inventory was number million for the three months ended january number date compared to cash used of number million for the same period ininventory days was number days as of january number date contributed approximately number million to our defined benefit plans in both the three months ended january number date and date respectively . our annual contributions are highly dependent on the relative performance of our assets versus our projected liabilities among other factors . we expect to contribute approximately number million to our defined benefit plans during the remainder ofnet cash used in investing activities net cash used in investing activities was number million for the three months ended january number date as compared to net cash used in investing activities of number million in the same period ofinvestments in property plant and equipment were number million for the three months ended january number date compared to number million in the same period ofwe expect that total capital expenditures for the current year will be approximately number million . in the three months ended january number date we invested number million in acquisitions net of cash acquired compared to number million in acquisitions in the same period last year . net cash used in financing activities net cash used in financing activities for the three months ended january number date was number million compared to cash provided by number million for the same period oftreasury stock repurchases on november number date we announced that our board of directors had approved a new share repurchase program the date repurchase program designed among other things to reduce or eliminate dilution resulting from issuance of stock under the company employee equity incentive programs . the date repurchase program authorizes the purchase of up to number billion of our common stock at the company discretion and has no fixed termination date . the date repurchase program does not require the company to acquire a specific number of shares and may be suspended amended or discontinued at any time . during the three months ended january number date we repurchased and retired approximately number million shares for number million under this authorization . as of january number date we had remaining authorization to repurchase up to number billion of our common stock under this program . on may number date we announced that our board of directors had approved a new share repurchase program the date repurchase program . the date repurchase program authorized the purchase of up to number billion of our common stock at the company discretion through and including november number the date repurchase program did not require the company to acquire a specific number of shares and could have been suspended or discontinued at any time . during the three months ended january number date we repurchased number shares for number million under this authorization . as of january number date we retired approximately number shares of the number shares purchased in the period and the remaining number shares purchased were retired in februaryon november number date the remaining authorization of number million under this repurchase program expired . dividends during the three months ended january number date we paid cash dividends of number per common share or number million on the company common stock . during the three months ended january number date we paid cash dividends of number per common share or number million on the company common stock . the timing and amounts of any future dividends are subject to determination and approval by our board of directors . credit facilities on september number date agilent entered into a credit agreement with a group of financial institutions which provides for a number million unsecured credit facility that will expire on september number on june number date the commitments under the existing credit facility were increased by number million and on july number date the commitments under the existing credit facility were increased by an additional number million so that the aggregate commitments under the facility now total number billion . as of january number date the company had no borrowings outstanding under the credit facility . we were in compliance with the covenants for the credit facility during the three months ended january number debt there have been no other changes to the principal maturity interest rates and interest payment terms of the agilent outstanding senior notes in the three months ended january number date as compared to the senior notes as described in our annual report on form for the fiscal year ended october number other as of january number date our contractual obligations reported under other purchase commitments were approximately number million an increase of approximately number million from fiscal year date primarily due to the new contracts that were during the period . there were no other substantial changes from our date annual report on form to our contractual commitments in the first three months of fiscalwe have contractual commitments for operating leases . we have no other material guarantees or commitments . other liabilities as of january number date and october number date include number million and number million respectively related to income tax liabilities . of these amounts number million and number million related to uncertain tax positions of continuing operations as of january number date and october number date respectively . we are unable to accurately predict when these amounts will be realized or released . however it is reasonably possible that there could be significant changes to our unrecognized tax benefits in the next twelve months due to either the expiration of a statute of limitations or a tax audit settlement . item . risk factors risks uncertainties and other factors that may affect future results our operating results and financial condition could be harmed if the markets into which we sell our products decline or do not grow as anticipated . visibility into our markets is limited . our quarterly sales and operating results are highly dependent on the volume and timing of orders received during the fiscal quarter which are difficult to forecast and may be cancelled by our customers . in addition our revenue and earnings forecasts for future fiscal quarters are often based on the expected seasonality of our markets . however the markets we serve do not always experience the seasonality that we expect as customer spending policies and budget allocations particularly for capital items may change . any decline in our customers markets or in general economic conditions would likely result in a reduction in demand for our products and services . also if our customers markets decline we may not be able to collect on outstanding amounts due to us . such declines could harm our consolidated financial position results of operations cash flows and stock price and could limit our profitability . also in such an environment pricing pressures could intensify . since a significant portion of our operating expenses is relatively fixed in nature due to sales research and development and manufacturing costs if we were unable to respond quickly enough these pricing pressures could further reduce our operating margins . if we do not introduce successful new products and services in a timely manner to address increased competition through frequent new product and service introductions rapid technological changes and changing industry standards our products and services may become obsolete and our operating results may suffer . we generally sell our products in industries that are characterized by increased competition through frequent new product and service introductions rapid technological changes and changing industry standards . without the timely introduction of new products services and enhancements our products and services may become technologically obsolete over time in which case our revenue and operating results could suffer . the success of our new products and services will depend on several factors including our ability to : properly identify customer needs and predict future needs ; innovate and develop new technologies services and applications ; appropriately allocate our research and development spending to products and services with higher growth prospects ; successfully commercialize new technologies in a timely manner ; manufacture and deliver new products in sufficient volumes and on time ; differentiate our offerings from our competitors offerings ; price our products competitively ; anticipate our competitors development of new products services or technological innovations ; and control product quality in our manufacturing process . in addition if we fail to accurately predict future customer needs and preferences or fail to produce viable technologies we may invest in research and development of products and services that do not lead to significant revenue which would adversely affect our profitability . even if we successfully innovate and develop new and enhanced products and services we may incur substantial costs in doing so and our operating results may suffer . in addition promising new products may fail to reach the market or realize only limited commercial success because of real or perceived concerns of our customers . furthermore as we collaborate with pharmaceutical customers to develop drugs such as companion diagnostics assays or providing drug components like active pharmaceutical ingredients we face risks that those drug programs may be cancelled upon clinical trial failures . general economic conditions may adversely affect our operating results and financial condition . our business is sensitive to negative changes in general economic conditions both inside and outside the united states . slower global economic growth and uncertainty in the markets in which we operate may adversely impact our business resulting in : reduced demand for our products delays in the shipment of orders or increases in order cancellations ; increased risk of excess and obsolete inventories ; increased price pressure for our products and services ; and greater risk of impairment to the value and a detriment to the liquidity of our investment portfolio . failure to adjust our purchases due to changing market conditions or failure to accurately estimate our customers demand could adversely affect our income . our income could be harmed if we are unable to adjust our purchases to reflect market fluctuations including those caused by the seasonal nature of the markets in which we operate . the sale of our products and services are dependent to a large degree on customers whose industries are subject to seasonal trends in the demand for their products . during a market upturn we may not be able to purchase sufficient supplies or components to meet increasing product demand which could materially affect our results . in the past we have experienced a shortage of parts for some of our products . in addition some of the parts that require custom design are not readily available from alternate suppliers due to their unique design or the length of time necessary for design work . should a supplier cease manufacturing such a component we would be forced to reengineer our product . in addition to discontinuing parts suppliers may also extend lead times limit supplies or increase prices due to capacity constraints or other factors . in order to secure components for the production of products we may continue to enter into purchase commitments with vendors or at times make advance payments to suppliers which could impact our ability to adjust our inventory to declining market demands . if demand for our products is less than we expect we may experience additional excess and obsolete inventories and be forced to incur additional expenses . demand for some of our products and services depends on the capital spending policies of our customers research and development budgets and on government funding policies . our customers include pharmaceutical companies laboratories universities healthcare providers government agencies and public and private research institutions . many factors including public policy spending priorities available resources mergers and consolidations institutional and governmental budgetary policies and spending priorities and product and economic cycles have a significant effect on the capital spending policies of these entities . fluctuations in the research and development budgets at these organizations could have a significant effect on the demand for our products and services . research and development budgets fluctuate due to changes in available resources consolidation spending priorities general economic conditions and institutional and governmental budgetary policies . the timing and amount of revenue from customers that rely on government funding or research may vary significantly due to factors that can be difficult to forecast including changes in spending authorizations and budgetary priorities for our products and services . if demand for our products and services is adversely affected our revenue and operating results would suffer . economic political foreign currency and other risks associated with international sales and operations could adversely affect our results of operations . because we sell our products worldwide our business is subject to risks associated with doing business internationally . we anticipate that revenue from international operations will continue to represent a majority of our total revenue . international revenue and costs are subject to the risk that fluctuations in foreign currency exchange rates could adversely affect our financial results when translated into dollars for financial reporting purposes . the unfavorable effects of changes in foreign currency exchange rates has decreased revenues by approximately number percentage points in the three months ended january number when movements in foreign currency exchange rates have a negative impact on revenue it will also have a positive impact on our costs and expenses . in addition many of our employees contract manufacturers suppliers job functions outsourcing activities and manufacturing facilities are located outside the united states . accordingly our future results could be harmed by a variety of factors including : interruption to transportation flows for delivery of parts to us and finished goods to our customers ; changes in a specific country or region political economic or other conditions ; changes in diplomatic and trade relationships such as the united kingdom exit from the european union including new tariffs trade protection measures import or export licensing requirements new or different customs duties trade embargoes and sanctions and other trade barriers ; tariffs imposed by the on goods from other countries and tariffs imposed by other countries on goods including the tariffs enacted and proposed by the government on various imports from china and by the chinese government on certain goods the scope and duration of which if implemented remains uncertain ; negative consequences from changes in or differing interpretations of laws and regulations including those related to tax and ; difficulty in staffing and managing widespread operations ; differing labor regulations ; differing protection of intellectual property ; unexpected changes in regulatory requirements ; and geopolitical uncertainty or turmoil including terrorism and war . we sell our products into many countries and we also source many components and materials for our products from various countries . tariffs recently announced and implemented could have negative impact on our business results of operations and financial condition . further additional tariffs which have been proposed or threatened and the potential escalation of a trade war and retaliatory measures could have a material adverse effect on our business results of operations and financial condition . most of our accounting and tax processes including general accounting cost accounting accounts payable accounts receivables and tax functions are centralized at locations in india and malaysia . if conditions change in those countries it may adversely affect operations including impairing our ability to pay our suppliers and collect our receivables . our results of operations as well as our liquidity may be adversely affected and possible delays may occur in reporting financial results . in addition although the majority of our products are priced and paid for in dollars a significant amount of certain types of expenses such as payroll utilities tax and marketing expenses are paid in local currencies . our hedging programs reduce but do not always entirely eliminate within any given period the impact of currency exchange rate movements and therefore fluctuations in exchange rates including those caused by currency controls could impact our business operating results and financial condition by resulting in lower revenue or increased expenses . for expenses beyond that period our hedging strategy does not mitigate our exposure . in addition our currency hedging programs involve third party financial institutions as counterparties . the weakening or failure of financial institution counterparties may adversely affect our hedging programs and our financial condition through among other things a reduction in available counterparties increasingly unfavorable terms and the failure of the counterparties to perform under hedging contracts . our strategic initiatives to adjust our cost structure could have adverse effects on our business and we may not realize the operational or financial benefits from such actions . we have implemented multiple strategic initiatives across our businesses to adjust our cost structure and we may engage in similar activities in the future . these strategic initiatives and our regular ongoing cost reduction activities may distract management could slow improvements in our products and services and limit our ability to increase production quickly if demand for our products increases . in addition delays in implementing our strategic initiatives unexpected costs or failure to meet targeted improvements may diminish the operational and financial benefits we realize from such actions . any of the above circumstances could have an adverse effect on our business and operating results and financial condition . our business will suffer if we are not able to retain and hire key personnel . our future success depends partly on the continued service of our key research engineering sales marketing manufacturing executive and administrative personnel . if we fail to retain and hire a sufficient number of these personnel we will not be able to maintain or expand our business . the markets in which we operate are very dynamic and our businesses continue to respond with reorganizations workforce reductions and site closures . we believe our pay levels are very competitive within the regions that we operate . however there is an intense competition for certain highly technical specialties in geographic areas where we continue to recruit and it may become more difficult to hire and retain our key employees . our acquisitions strategic investments and alliances joint ventures exiting of businesses and divestitures may result in financial results that are different than expected . in the normal course of business we frequently engage in discussions with third parties relating to possible acquisitions strategic investments and alliances joint ventures and divestitures and generally expect to complete several transactions per year . in addition we may decide to exit a particular business within our product portfolio . as a result of such transactions our financial results may differ from our own or the investment community expectations in a given fiscal quarter or over the long term . we may have difficulty developing manufacturing and marketing the products of a newly acquired company in a way that enhances the performance of our combined businesses or product lines . acquired businesses may also expose us to new risks and new markets and we may have difficulty addressing these risks in a cost effective and timely manner . transactions such as acquisitions have resulted and may in the future result in unexpected significant costs and expenses . in the future we may be required to record charges to earnings during the period if we determine there is an impairment of goodwill or intangible assets up to the full amount of the value of the assets or in the case of strategic investments and alliances consolidate results including losses of third parties or write down investment values or loans and convertible notes related to the strategic investment . integrating the operations of acquired businesses within agilent could be a difficult costly and process that involves a number of risks . acquisitions and strategic investments and alliances may require us to integrate and collaborate with a different company culture management team business business infrastructure and sales and distribution and assimilate and retain geographically dispersed decentralized operations and personnel . depending on the size and complexity of an acquisition our successful integration of the entity depends on a variety of factors including introducing new products and meeting revenue targets as expected the retention of key employees and key customers increased exposure to certain governmental regulations and compliance requirements and increased costs and use of resources . further the integration of acquired businesses is likely to result in our systems and internal controls becoming increasingly complex and more difficult to manage . any difficulties in the assimilation of acquired businesses into our control system could harm our operating results or cause us to fail to meet our financial reporting obligations . even if we are able to successfully integrate acquired businesses within agilent we may not be able to realize the revenue and other synergies and growth that we anticipated from the acquisition in the time frame that we expected and the costs of achieving these benefits may be higher than what we expected . as a result the acquisition and integration of acquired businesses may not contribute to our earnings as expected we may not achieve our operating margin targets when expected or at all and we may not achieve the other anticipated strategic and financial benefits of such transaction . a successful divestiture depends on various factors including our ability to effectively transfer liabilities contracts facilities and employees to the purchaser identify and separate the intellectual property to be divested from the intellectual property that we wish to keep and reduce fixed costs previously associated with the divested assets or business . in addition if customers of the divested business do not receive the same level of service from the new owners this may adversely affect our other businesses to the extent that these customers also purchase other agilent products . in exiting a business we may still retain liabilities associated with the support and warranty of those businesses and other indemnification obligations . all of these efforts require varying levels of management resources which may divert our attention from other business operations . if we do not realize the expected benefits or synergies of such transactions our consolidated financial position results of operations cash flows and stock price could be negatively impacted . if we fail to maintain an effective system of internal controls we may not be able to accurately report our financial results which could lead to a loss of investor confidence in our financial statements and have an adverse effect on our stock price . effective internal controls are necessary for us to provide reliable and accurate financial statements and to effectively prevent fraud . we devote significant resources and time to comply with the internal control over financial reporting requirements of the sarbanes oxley act of date and continue to enhance our controls . however we can not be certain that we will be able to prevent future significant deficiencies or material weaknesses . inadequate internal controls could cause investors to lose confidence in our reported financial information which could have a negative effect on investor confidence in our financial statements the trading price of our stock and our access to capital . our customers and we are subject to various governmental regulations . compliance with or changes in such regulations may cause us to incur significant expenses and if we fail to maintain satisfactory compliance with certain regulations we may be forced to recall products and cease their manufacture and distribution and we could be subject to civil or criminal penalties . our customers and we are subject to various significant international federal state and local regulations including but not limited to regulations in the areas of health and safety packaging product content employment labor and immigration controls trade restrictions and . in addition as a global organization we are subject to data privacy and security laws regulations and controls in numerous jurisdictions as a result of having access to and processing confidential personal sensitive patient health data in the course of our business . the eu general data protection regulation gdpr which became effective in may date applies to all of our activities related to products and services that we offer to eu customers and workers . the gdpr established new requirements regarding the handling of personal data and includes significant penalties for including possible fines of up to number percent of total company revenue . other governmental authorities around the world are considering similar types of legislative and regulatory proposals concerning data protection . each of these privacy security and data protection laws and regulations could impose significant limitations and increase our cost of providing our products and services where we process end user personal data and could harm our results of operations and expose us to significant fines penalties and other damages . we must also comply with complex foreign and laws and regulations such as the foreign corrupt practices act the bribery act and other local laws prohibiting corrupt payments to governmental officials regulations and sanctions imposed by the office of foreign assets control and other similar laws and regulations . violations of these laws and regulations could result in fines and penalties criminal sanctions restrictions on our business conduct and on our ability to offer our products in one or more countries and could also materially affect our brand our ability to attract and retain employees our international operations our business and our operating results . although we have implemented policies and procedures designed to ensure compliance with these laws and regulations there can be no assurance that our employees contractors or agents will not violate our policies . these regulations are complex change frequently and have tended to become more stringent over time . we may be required to incur significant expenses to comply with these regulations or to remedy any violations of these regulations . any failure by us to comply with applicable government regulations could also result in the cessation of our operations or portions of our operations product recalls or impositions of fines and restrictions on our ability to carry on or expand our operations . in addition because many of our products are regulated or sold into regulated industries we must comply with additional regulations in marketing our products . we develop configure and market our products to meet customer needs created by these regulations . any significant change in these regulations could reduce demand for our products force us to modify our products to comply with new regulations or increase our costs of producing these products . if demand for our products is adversely affected or our costs increase our operating results and business would suffer . our products and operations are also often subject to the rules of industrial standards bodies like the international standards organization as well as regulation by other agencies such as the fda . we also must comply with work safety rules . if we fail to adequately address any of these regulations our businesses could be harmed . we are subject to extensive regulation by the fda and certain similar foreign regulatory agencies and failure to comply with such regulations could harm our reputation business financial condition and results of operations . a number of our products are subject to regulation by the fda and certain similar foreign regulatory agencies . in addition a number of our products may in the future be subject to regulation by the fda and certain similar foreign regulatory agencies . these regulations govern a wide variety of activities from quality management design and development to labeling manufacturing promotion sales and distribution . if we or any of our suppliers or distributors fail to comply with fda and other applicable regulatory requirements or are perceived to potentially have failed to comply we may face among other things warning letters adverse publicity affecting both us and our customers ; investigations or notices of fines injunctions and civil penalties ; import or export restrictions ; partial suspensions or total shutdown of production facilities or the imposition of operating restrictions ; increased difficulty in obtaining required fda clearances or approvals or foreign equivalents ; seizures or recalls of our products or those of our customers ; or the inability to sell our products . any such fda or other regulatory agency actions could disrupt our business and operations lead to significant remedial costs and have a material adverse impact on our financial position and results of operations . some of our products are subject to particularly complex regulations such as regulations of toxic substances and failure to comply with such regulations could harm our business . some of our products and related consumables are used in conjunction with chemicals whose manufacture processing distribution and notification requirements are regulated by the environmental protection agency epa under the toxic substances control act and by regulatory bodies in other countries under similar laws . the toxic substances control act regulations govern among other things the testing manufacture processing and distribution of chemicals the testing of regulated chemicals for their effects on human health and safety and the import and export of chemicals . the toxic substances control act prohibits persons from manufacturing any chemical in the united states that has not been reviewed by epa for its effect on health and safety and placed on an epa inventory of chemical substances . we must ensure conformance of the manufacturing processing distribution of and notification about these chemicals to these laws and adapt to regulatory requirements in all applicable countries as these requirements change . if we fail to comply with the notification and other requirements in the manufacture or distribution of our products then we could be subject to civil penalties criminal prosecution and in some cases prohibition from distributing or marketing our products until the products or component substances are brought into compliance . our business may suffer if we fail to comply with government contracting laws and regulations . we derive a portion of our revenue from direct and indirect sales to state local and foreign governments and their respective agencies . such contracts are subject to various procurement laws and regulations and contract provisions relating to their formation administration and performance . failure to comply with these laws regulations or provisions in our government contracts could result in the imposition of various civil and criminal penalties termination of contracts forfeiture of profits suspension of payments or suspension from future government contracting . if our government contracts are terminated if we are suspended from government work or if our ability to compete for new contracts is adversely affected our business could suffer . our reputation ability to do business and financial statements may be harmed by improper conduct by any of our employees agents or business partners . we can not provide assurance that our internal controls and compliance systems will always protect us from acts committed by employees agents or business partners of ours or of businesses we acquire or partner with that would violate laws including the laws governing payments to government officials bribery fraud kickbacks and false claims pricing sales and marketing practices conflicts of interest competition export and import compliance money laundering and data privacy . in particular the foreign corrupt practices act the bribery act and similar laws in other jurisdictions generally prohibit companies and their intermediaries from making improper payments to government officials for the purpose of obtaining or retaining business and we operate in many parts of the world that have experienced governmental corruption to some degree . any such improper actions or allegations of such acts could damage our reputation and subject us to civil or criminal investigations in the united states and in other jurisdictions and related shareholder lawsuits could lead to substantial civil and criminal monetary and penalties and could cause us to incur significant legal and investigatory fees . in addition the government may seek to hold us liable as a successor for violations committed by companies in which we invest or that we acquire . we also rely on our suppliers to adhere to our supplier standards of conduct and material violations of such standards of conduct could occur that could have a material effect on our business reputation and financial statements . our retirement and post retirement pension plans are subject to financial market risks that could adversely affect our future results of operations and cash flows . we have significant retirement and post retirement pension plan assets and obligations . the performance of the financial markets and interest rates impact our plan expenses and funding obligations . significant decreases in market interest rates decreases in the fair value of plan assets and investment losses on plan assets will increase our funding obligations and adversely impact our results of operations and cash flows . the impact of consolidation and acquisitions of competitors is difficult to predict and may harm our business . the life sciences industry is intensely competitive and has been subject to increasing consolidation . consolidation in our industries could result in existing competitors increasing their market share through business combinations and result in stronger competitors which could have a material adverse effect on our business financial condition and results of operations . we may not be able to compete successfully in increasingly consolidated industries and can not predict with certainty how industry consolidation will affect our competitors or us . if we are unable to successfully manage the consolidation and streamlining of our manufacturing operations we may not achieve desired efficiencies and our ability to deliver products to our customers could be disrupted . although we utilize manufacturing facilities throughout the world we have been consolidating and may continue to consolidate our manufacturing operations to certain of our plants to achieve efficiencies and gross margin improvements . additionally we typically consolidate the production of products from our acquisitions into our supply chain and manufacturing processes which are technically complex and require expertise to operate . if we are unable to establish processes to efficiently and effectively produce high quality products in the consolidated locations we may not achieve the anticipated synergies and production may be disrupted which could adversely affect our business and operating results . our operating results may suffer if our manufacturing capacity does not match the demand for our products . because we can not immediately adapt our production capacity and related cost structures to rapidly changing market conditions when demand does not meet our expectations our manufacturing capacity may exceed our production requirements . if during an economic downturn we had excess manufacturing capacity then our fixed costs associated with excess manufacturing capacity would adversely affect our gross margins and operating results . if during a general market upturn or an upturn in one of our segments we can not increase our manufacturing capacity to meet product demand we may not be able to fulfill orders in a timely manner which could lead to order cancellations contract breaches or indemnification obligations . this inability could materially and adversely limit our ability to improve our results . dependence on contract manufacturing and outsourcing other portions of our supply chain including logistics and package delivery services may adversely affect our ability to bring products to market and damage our reputation . dependence on outsourced information technology and other administrative functions may impair our ability to operate effectively . as part of our efforts to streamline operations and to manage costs we outsource aspects of our manufacturing processes and other functions and continue to evaluate additional outsourcing . if our contract manufacturers or other outsourcers fail to perform their obligations in a timely manner or at satisfactory quality levels our ability to bring products to market and our reputation could suffer . for example during a market upturn our contract manufacturers may be unable to meet our demand requirements which may preclude us from fulfilling our customers orders on a timely basis . the ability of these manufacturers to perform is largely outside of our control . if one or more of the package delivery providers experiences a significant disruption in services or institutes a significant price increase we may have to seek alternative providers our costs could increase and the delivery of our products could be prevented or delayed . additionally changing or replacing our contract manufacturers logistics providers or other outsourcers could cause disruptions or delays . in addition we outsource significant portions of our information technology it and other administrative functions . since it is critical to our operations any failure to perform on the part of our it providers could impair our ability to operate effectively . in addition to the risks outlined above problems with manufacturing or it outsourcing could result in lower revenue and unexecuted efficiencies and impact our results of operations and our stock price . environmental contamination from past and ongoing operations could subject us to substantial liabilities . certain properties we have previously owned or leased are undergoing remediation for subsurface contamination . although we are indemnified for liability relating to the required remediation at some of those properties we may be subject to liability if these indemnification obligations are not fulfilled . in other cases we have agreed to indemnify the current owners of certain properties for liabilities related to contamination including companies with which we have previously been affiliated such as hp enterprise formerly company and varian medical systems further other properties we have previously owned or leased at which we have operated in the past or for which we have otherwise contractually assumed or provided indemnities for certain actual or contingent environmental liabilities may or do require remediation . while we are not aware of any material liabilities associated with any potential environmental contamination at any of those properties or facilities we may be exposed to material liability if environmental contamination at material levels is found to exist . in addition in connection with the acquisition of certain companies we have assumed other costs and potential or contingent liabilities for environmental matters . any significant costs or liabilities could have an adverse effect on results of operations . our current and historical manufacturing processes and operations involve or have involved the use of certain substances regulated under various foreign federal state and local environment protection and health and safety laws and regulations . as a result we may become subject to liabilities for environmental contamination and these liabilities may be substantial . although our policy is to apply strict standards for environmental protection and health and safety at our sites inside and outside the united states we may not be aware of all conditions that could subject us to liability . failure to comply with these environmental protection and health and safety laws and regulations could result in civil criminal regulatory administrative or contractual sanction including fines penalties or suspensions . if we have any violations of or incur liabilities pursuant to these laws or regulations our financial condition and operating results could be adversely affected . third parties may claim that we are infringing their intellectual property and we could suffer significant litigation or licensing expenses or be prevented from selling products or services . from time to time third parties may claim that one or more of our products or services infringe their intellectual property rights . we analyze and take action in response to such claims on a case by case basis . any dispute or litigation regarding patents or other intellectual property could be costly and due to the complexity of our technology and the uncertainty of intellectual property litigation and could divert our management and key personnel from our business operations . a claim of intellectual property infringement could force us to enter into a costly or restrictive license agreement which might not be available under acceptable terms or at all could require us to redesign our products which would be costly and could subject us to significant damages or to an injunction against the development and sale of certain of our products or services . our intellectual property portfolio may not be useful in asserting a counterclaim or negotiating a license in response to a claim of intellectual property infringement . in certain of our businesses we rely on third party intellectual property licenses and we can not ensure that these licenses will continue to be available to us in the future or can be expanded to cover new products on favorable terms or at all . third parties may infringe our intellectual property and we may suffer competitive injury or expend significant resources enforcing our rights . our success depends in large part on our proprietary technology including technology we obtained through acquisitions . we rely on various intellectual property rights including patents copyrights trademarks and trade secrets as well as confidentiality provisions and licensing arrangements to establish our proprietary rights . if we do not enforce our intellectual property rights successfully our competitive position may suffer which could harm our operating results . our pending patent copyright and trademark registration applications may not be allowed or competitors may challenge the validity or scope of our patents copyrights or trademarks . in addition our patents copyrights trademarks and other intellectual property rights may not provide us with a significant competitive advantage . we may need to spend significant resources monitoring and enforcing our intellectual property rights and we may not be aware of or able to detect or prove infringement by third parties . our competitive position may be harmed if we can not detect infringement and enforce our intellectual property rights quickly or at all . in some circumstances we may choose to not pursue enforcement because an infringer has a dominant intellectual property position or for other business reasons . in addition competitors might avoid infringement by designing around our intellectual property rights or by developing competing technologies . intellectual property rights and our ability to enforce them may be unavailable or limited in some countries which could make it easier for competitors to capture market share and could result in lost revenues . furthermore some of our intellectual property is licensed to others which may allow them to compete with us using that intellectual property . changes in tax laws unfavorable resolution of tax examinations or exposure to additional tax liabilities could have a material adverse effect on our results of operations financial condition and liquidity . we are subject to taxes in the singapore and various foreign jurisdictions . governments in the jurisdictions in which we operate implement changes to tax laws and regulations periodically . any implementation of tax laws that fundamentally change the taxation of corporations in the or singapore could materially impact our effective tax rate and could have a significant adverse impact on our financial results . the date united states tax and jobs act tax act significantly changed the taxation of based multinational corporations . our compliance with the tax act requires the use of estimates in our financial statements and exercise of significant judgment in accounting for its provisions . the implementation of the tax act requires interpretations and implementing regulations by the internal revenue service as well as state tax authorities . the legislation could be subject to potential amendments and technical corrections any of which could materially lessen or increase certain adverse impacts of the legislation . as regulations and guidance evolve with respect to the tax act and as we gather information and perform more analysis our results may differ from previous estimates and may materially affect our financial position . we are also subject to examinations of our tax returns by tax authorities in various jurisdictions around the world . we regularly assess the likelihood of adverse outcomes resulting from ongoing tax examinations to determine the adequacy of our provision for taxes . these assessments can require a high degree of judgment and estimation . intercompany transactions associated with the sale of inventory services intellectual property and cost share arrangements are complex and affect our tax liabilities . the calculation of our tax liabilities involves dealing with uncertainties in the application of complex tax laws and regulations in multiple jurisdictions . there can be no assurance that the outcomes from ongoing tax examinations will not have an adverse effect on our operating results and financial condition . a difference in the ultimate resolution of tax uncertainties from what is currently estimated could have an adverse effect on our financial results and condition . if tax incentives change or cease to be in effect our income taxes could increase significantly . we benefit from tax incentives extended to our foreign subsidiaries to encourage investment or employment . several jurisdictions have granted us tax incentives which require renewal at various times in the future . the incentives are conditioned on achieving various thresholds of investments and employment or specific types of income . our taxes could increase if the incentives are not renewed upon expiration . if we can not or do not wish to satisfy all or parts of the tax incentive conditions we may lose the related tax incentive and could be required to refund tax incentives previously realized . as a result our effective tax rate could be higher than it would have been had we maintained the benefits of the tax incentives . we have outstanding debt and may incur other debt in the future which could adversely affect our financial condition liquidity and results of operations . we currently have outstanding an aggregate principal amount of number billion in senior unsecured notes . we also are party to a unsecured revolving credit facility which in june number date we increased the commitments under the existing credit facility by number million and on july number date the commitments under the existing credit facility were increased by an additional number million so that the aggregate commitments under the facility now total number billion . as of january number date we had no borrowings outstanding under the credit facility . we may borrow additional amounts in the future and use the proceeds from any future borrowing for general corporate purposes future acquisitions expansion of our business or repurchases of our outstanding shares of common stock . our incurrence of this debt and increases in our aggregate levels of debt may adversely affect our operating results and financial condition by among other things : increasing our vulnerability to downturns in our business to competitive pressures and to adverse economic and industry conditions ; requiring the dedication of an increased portion of our expected cash flows from operations to service our indebtedness thereby reducing the amount of expected cash flows available for other purposes including capital expenditures acquisitions stock repurchases and dividends ; and limiting our flexibility in planning for or reacting to changes in our business and our industry . our current revolving credit facility imposes restrictions on us including restrictions on our ability to create liens on our assets and the ability of our subsidiaries to incur indebtedness and requires us to maintain compliance with specified financial ratios . our ability to comply with these ratios may be affected by events beyond our control . in addition the indenture governing our senior notes contains covenants that may adversely affect our ability to incur certain liens or engage in certain types of sale and leaseback transactions . if we breach any of the covenants and do not obtain a waiver from the lenders then subject to applicable cure periods our outstanding indebtedness could be declared immediately due and payable . if we suffer a loss to our factories facilities or distribution system due to catastrophe our operations could be seriously harmed . our factories facilities and distribution system are subject to catastrophic loss due to fire flood terrorism or other natural or disasters . in particular several of our facilities could be subject to a catastrophic loss caused by earthquake due to their locations . our production facilities headquarters and laboratories in california and our production facilities in japan are all located in areas with seismic activity . if any of our facilities were to experience a catastrophic loss it could disrupt our operations delay production shipments and revenue and result in large expenses to repair or replace the facility . if such a disruption were to occur we could breach agreements our reputation could be harmed and our business and operating results could be adversely affected . in addition because we have consolidated our manufacturing facilities and we may not have redundant manufacturing capability readily available we are more likely to experience an interruption to our operations in the event of a catastrophe in any one location . although we carry insurance for property damage and business interruption we do not carry insurance or financial reserves for interruptions or potential losses arising from earthquakes or terrorism . also our third party insurance coverage will vary from time to time in both type and amount depending on availability cost and our decisions with respect to risk retention . economic conditions and uncertainties in global markets may adversely affect the cost and other terms upon which we are able to obtain third party insurance . if our third party insurance coverage is adversely affected or to the extent we have elected to we may be at a greater risk that our financial condition will be harmed by a catastrophic loss . if we experience a significant disruption in or breach in security of our information technology systems or if we fail to implement new systems and software successfully our business could be adversely affected . we rely on several centralized information technology systems throughout our company to provide products and services keep financial records process orders manage inventory process shipments to customers and operate other critical functions . our information technology systems may be susceptible to damage disruptions or shutdowns due to power outages hardware failures computer viruses attacks by computer hackers telecommunication failures user errors catastrophes or other unforeseen events . our information technology systems also may experience interruptions delays or cessations of service or produce errors in connection with system integration software upgrades or system migration work that takes place from time to time . if we were to experience a prolonged system disruption in the information technology systems that involve our interactions with customers or suppliers it could result in the loss of sales and customers and significant incremental costs which could adversely affect our business . in addition security breaches of our information technology systems could result in the misappropriation or unauthorized disclosure of confidential information belonging to us or to our employees partners customers or suppliers which could result in our suffering significant financial or reputational damage . adverse conditions in the global banking industry and credit markets may adversely impact the value of our cash investments or impair our liquidity . as of january number date we had cash and cash equivalents of approximately number billion invested or held in a mix of money market funds time deposit accounts and bank demand deposit accounts . disruptions in the financial markets may in some cases result in an inability to access assets such as money market funds that traditionally have been viewed as highly liquid . any failure of our counterparty financial institutions or funds in which we have invested may adversely impact our cash and cash equivalent positions and in turn our operating results and financial condition . regulations related to conflict minerals may cause us to incur additional expenses and could limit the supply and increase the cost of certain metals used in manufacturing our products . we are subject to the rules of the securities and exchange sec which require disclosures by public companies of specified minerals known as conflict minerals that are necessary to the functionality or production of products manufactured or contracted to be manufactured . the rule which requires an annual disclosure report to be filed with the sec by may of each year requires companies to perform due diligence disclose and report whether or not such minerals originate from the democratic republic of congo or an adjoining country . our ongoing implementation of these rules could affect sourcing at competitive prices and availability in sufficient quantities of certain minerals used in the manufacture of our products including tin tantalum gold and tungsten . the number of suppliers who provide minerals may be limited . in addition there may be material costs associated with complying with the disclosure requirements such as costs related to the due diligence process of determining the source of certain minerals used in our products as well as costs of possible changes to products processes or sources of supply as a consequence of such verification activities . as our supply chain is complex and we use contract manufacturers for some of our products we may not be able to sufficiently verify the origins of the relevant minerals used in our products through the due diligence procedures that we implement which may harm our reputation . we may also encounter challenges to satisfy those customers who require that all of the components of our products be certified as which could place us at a competitive disadvantage if we are unable to do so . we could incur significant liabilities if the distribution of keysight common stock to our shareholders is determined to be a taxable transaction . we have received an opinion from outside tax counsel to the effect that the separation and distribution of keysight qualifies as a transaction that is described in sections number a and number a number d of the internal revenue code . the opinion relies on certain facts assumptions representations and undertakings from keysight and us regarding the past and future conduct of the companies respective businesses and other matters . if any of these facts assumptions representations or undertakings are incorrect or not satisfied our shareholders and we may not be able to rely on the opinion of tax counsel and could be subject to significant tax liabilities . notwithstanding the opinion of tax counsel we received the irs could determine on audit that the separation is taxable if it determines that any of these facts assumptions representations or undertakings are not correct or have been violated or if it disagrees with the conclusions in the opinion . if the separation is determined to be taxable for federal income tax purposes our shareholders that are subject to federal income tax and we could incur significant federal income tax liabilities . we can not assure that we will continue to pay dividends on our common stock . since the first quarter of fiscal year date we have paid a quarterly dividend on our common stock . the timing declaration amount and payment of any future dividends fall within the discretion of our board of directors and will depend on many factors including our available cash estimated cash needs earnings financial condition operating results capital requirements as well as limitations in our contractual agreements applicable law regulatory constraints industry practice and other business considerations that our board of directors considers relevant . a change in our dividend program could have an adverse effect on the market price of our common stock . : number : into a material agreement on agilent technologies the company entered into a credit agreement among the company the lenders party thereto and bnp paribas as administrative the credit agreement . the credit agreement provides for a number unsecured credit facility the facility that will on . the facility the companys existing credit facility which was terminated on the closing date of the facility . the company may subject to obtaining commitments from existing or additional lenders and of certain customary conditions on one or more increase commitments under the facility or create new incremental term facilities in an amount not to exceed number million in the aggregate each an incremental facility and may extend the maturity date for a period of one year . each lender will have discretion to determine whether it will in an incremental facility or in any such extension of the maturity date . the company will use amounts under the facility for general corporate purposes including stock repurchases and potential acquisitions . the company is not borrowing under the facility at this time but may borrow under the facility from time to time as opportunities and needs arise . loans under the credit agreement will interest at the companys either at : the alternate base rate which is defined as the of a the rate in effect from time to time the federal funds effective rate in effect from time to time plus of number or the applicable london interbank offered rate for loans plus number in each case plus the applicable margin for such loans or ii the applicable london or euro interbank offered rate plus the applicable margin for such loans . the applicable margin for loans bearing interest at the alternate base rate ranges between number and number and the applicable margin for loans bearing interest based on the london or euro interbank offered rate ranges between number and number in each case based on the companys senior debt credit ratings as global ratings investors service and ratings at the companys current credit ratings the applicable margin for alternate base rate loans is number and the applicable margin for london or euro interbank offered rate loans is number . the company is required to pay to each lender based on such lenders a quarterly facility fee during the term of the credit agreement which depending on the companys credit ratings . at the companys current credit ratings the facility fee will be number per year or number per year . the company is also required to pay letter of credit participation fees from number to number per annum based on the companys credit ratings and a fee of number per annum in each case based on the average amount of outstanding letters of credit . at the companys current credit ratings the letter of credit participation fees will be number per year . the credit agreement contains customary representations and warranties as well as customary affirmative and negative covenants . negative covenants include among others limitations on incurrence of liens limitations on incurrence of indebtedness by the companys subsidiaries and limitations on transactions . these covenants are subject to a number of significant and limitations . in addition the credit agreement requires that the companys of consolidated financial indebtedness to consolidated not be greater than number to number as of the end of any of its fiscal quarters . the credit agreement also contains customary events of default . upon the and during the of an event of default the lenders may the outstanding and all other obligations under the credit agreement immediately due and payable . in addition if the company or certain of its material subsidiaries the subject of or under any or similar law then any outstanding obligations under the credit agreement will become immediately due and payable . bnp paribas securities incorporated and securities as joint lead and joint for the credit agreement . the description of the credit agreement herein is in its by reference to the credit agreement a copy of which is filed as exhibit number to this current report on form and is incorporated herein by reference . some of the lenders under the credit facility their respective have from time to time performed and may in the future perform various commercial banking investment banking and other financial advisory services for the company its subsidiaries in the course of business for which received or will receive customary fees and . of a direct financial obligation or an obligation under an sheet arrangement of a the information set forth in item number of this current report on form is incorporated by reference into this statements and exhibits d exhibits credit agreement by and among the company the lenders party thereto and bnp paribas as administrative : number : of matters to a vote of security the annual meeting of of agilent technologies the company was held on the annual meeting . a total of number shares of common stock approximately number of the shares outstanding were represented at the annual meeting . the results for each item of business properly presented at the annual meeting as certified by the companys independent of are set forth below : proposal no . number the election of three number directors for a term of three years . the below received the affirmative vote of a majority of the by the shares present in or represented by and entitled to vote at the annual meeting and were each elected to serve a term . for against abstain broker number number number number number number . number number number directors and continued in office following the annual meeting . proposal no . number the proposal to number shares for issuance under the companys date stock plan as amended was approved as set forth below . for against abstain broker number number number proposal no . number the advisory vote to the compensation of the companys executive was approved as set forth below . for against abstain broker number number number proposal no . number the proposal to the audit and of as the companys independent public accounting for the date fiscal year was approved as set forth below . for against abstain broker number number number number pursuant to the rules of the new stock exchange this proposal a . therefore were to vote without of from : number : results of operations and financial condition the information in this item number of form and exhibit number attached is furnished and shall not be deemed filed for purposes of section number of the securities exchange act of date as amended nor shall it be deemed incorporated by reference in any filing under the securities act of date as amended . on agilent technologies the company its press release announcing financial results for the second fiscal quarter ended . a copy of this press release is attached as company provides financial information in order to provide supplemental information regarding its operational performance and to enhance its investors overall of its current financial performance and its prospects for the future . the company that its investors benefit from its results through the of management in addition to the gaap presentation . management measures segment and enterprise performance using measures such as those that are in this release . this information managements internal comparisons to the companys historical operating results and comparisons to competitors operating results . information allows for greater to supplemental information used by management in its financial and operations making . the company has reported similar information to its investors and believe that the of provides in its financial reporting . this information is not in accordance with or an alternative for generally accepted accounting principles in the united states . it items such as restructuring and amortization that may have a material effect on the companys expenses and earnings per share in accordance with gaap . management these items to ensure that expenses are in with expectations and that the company gaap results are stated but does not use them to measure the ongoing operating performance of the company . the information the company provides may be different from the information provided by other companies . additional of information is provided in statements and exhibits d exhibits the following is furnished as an exhibit to this report and shall not be deemed filed for purposes of section number of the securities exchange act of date as amended nor shall it be deemed incorporated by reference in any filing under the securities act of date as amended : press release announcing financial results for the second fiscal quarter ended : number : item number . managements discussion and analysis of financial condition and results of operations unaudited the following discussion should be read in conjunction with the condensed consolidated financial statements and notes thereto included elsewhere in this form and our annual report on form this report contains statements including without limitation statements regarding growth opportunities including for revenue and our end markets strength and drivers of the markets we sell into sales funnels our strategic direction new product and service introductions and the position of our current products and services market demand for and adoption of our products the ability of our products and solutions to address customer needs and meet industry requirements our focus on differentiating our product solutions improving our customers experience and growing our earnings future financial results our operating margin mix our investments including in manufacturing infrastructure research and development and expanding and improving our applications and solutions portfolios expanding our position in developing countries and emerging markets our focus on balanced capital allocation our contributions to our pension and other defined benefit plans impairment of goodwill and other intangible assets the effect of the tax cuts and jobs act of date the tax act and and other tariffs the impact of foreign currency movements our hedging programs and other actions to offset the effects of tariffs and foreign currency movements our future effective tax rate tax valuation allowance and unrecognized tax benefits the impact of local government regulations on our ability to pay vendors or conduct operations our ability to satisfy our liquidity requirements including through cash generated from operations the potential impact of adopting new accounting pronouncements indemnification source and supply of materials used in our products our sales our purchase commitments our capital expenditures the integration and effects of our acquisitions and other transactions our stock repurchase program and dividends that involve risks and uncertainties . our actual results could differ materially from the results contemplated by these statements due to various factors including those discussed in part ii item and elsewhere in this form . basis of presentation the financial information presented in this form is not audited and is not necessarily indicative of our future consolidated financial position results of operations comprehensive income loss or cash flows . our fiscal is october number and our fiscal quarters end on january number april number and july number . unless otherwise stated these dates refer to our fiscal year and fiscal periods . executive summary agilent technologies we agilent or the company incorporated in delaware in may date is a global leader in life sciences diagnostics and applied chemical markets providing application focused solutions that include instruments software services and consumables for the entire laboratory workflow . on november number date we acquired number percent of the stock of acea biosciences acea a developer of cell analysis tools for approximately number million in cash . the financial results of acea have been included within our financial results from the date of the close . on march number date agilent entered into a credit agreement with a group of financial institutions which provides for a number billion unsecured credit facility that will expire on march number the credit facility replaces the existing credit facility which was terminated on the closing date of the new facility . as of april number date the company had no borrowings outstanding under the credit facility . net revenue of number million and number million increased number percent and number percent foreign currency movements approximately number percentage points for both periods when compared to the same periods last year . revenue in the life sciences and applied markets business decreased number percent and was flat foreign currency movements for both periods when compared to the same periods last year . revenue in the diagnostics and genomics business increased number percent and number percent foreign currency movements and number percentage points revenue generated by agilent crosslab in the three and six months ended april number date increased number percent and number percent foreign currency movements and number percentage points net income for the three months ended april number date was number million compared to net income of number million for the corresponding period last year . net income for the six months ended april number date was number million compared to net loss of number million for the corresponding period last year . net income for the six months ended april number date was impacted by a discrete tax benefit of number million related to the restructuring and extension of the companys tax incentive in singapore . net loss for the six months ended april number date was impacted by a discrete tax charge of number million related to the enactment of the tax act . see note number income taxes for more details . in the six months ended april number date cash generated from operations was number million compared to number million in the same period last year . for the six months ended april number date and date cash dividends of number million and number million respectively were paid on the company outstanding common stock . on november number date we announced that our board of directors had approved a new share repurchase program the date repurchase program designed among other things to reduce or eliminate dilution resulting from issuance of stock under the company employee equity incentive programs . the date repurchase program authorizes the purchase of up to number billion of our common stock at the company discretion and has no fixed termination date . the date repurchase program does not require the company to acquire a specific number of shares and may be suspended amended or discontinued at any time . during the three and six months ended april number date we repurchased approximately number shares for number million andmillion shares for number million respectively under this authorization . during the three and six months ended april number date we retired approximately number shares for number million andmillion shares for number million respectively . the remaining number treasury shares were retired on may number as of april number date we had remaining authorization to repurchase up to number billion of our common stock under this program . on may number date we announced that our board of directors had approved a new share repurchase program the date repurchase program . the date repurchase program authorized the purchase of up to number billion of our common stock at the company discretion through and including november number the date repurchase program did not require the company to acquire a specific number of shares and could have been suspended or discontinued at any time . during the three and six months ended april number date we repurchased number shares for number million and number million shares for number million respectively under this authorization . during the three and six months ended april number date we retired approximately number treasury shares for number million and number million treasury shares for number million respectively . on november number date the remaining authorization of number million under this repurchase program expired . looking forward despite market conditions we continue to focus on differentiating product solutions improving our customers experience and growing our earnings . in addition we remain focused on a balanced capital allocation through our dividend and share repurchase programs . we expect foreign currency to negatively impact revenue for the rest of date but we also anticipate the contribution from our several acquisitions in the past year to partially offset the currency impact . critical accounting policies and estimates managements discussion and analysis of financial condition and results of operations is based upon our condensed consolidated financial statements which have been prepared in accordance with generally accepted accounting principles gaap in the the preparation of condensed consolidated financial statements in conformity with gaap in the requires management to make estimates judgments and assumptions that affect the amounts reported in our condensed consolidated financial statements and accompanying notes . our critical accounting policies are those that affect our financial statements materially and involve difficult subjective or complex judgments by management . those policies are revenue recognition inventory valuation compensation retirement and benefit plan assumptions goodwill and purchased intangible assets and accounting for income taxes . other than accounting for revenue recognition and income taxes as described below there have been no significant changes to our critical accounting policies as described in our annual report on form for the fiscal year ended october number management bases its estimates on historical experience and various other assumptions believed to be reasonable . although these estimates are based on managements best knowledge of current events and actions that may impact the company in the future actual results may be different from the estimates . an accounting policy is deemed to be critical if it requires an accounting estimate to be made based on assumptions about matters that are highly uncertain at the time the estimate is made and if different estimates that reasonably could have been used or changes in the accounting estimate that are reasonably likely to occur could materially change the financial statements . revenue recognition . on november number date we adopted accounting standard codification topic number revenue from contracts with customers asc number . we enter into agreements to sell products hardware software services and other arrangements multiple element arrangements that include combinations of products and services . we derive revenue primarily from the sale of analytical and diagnostics products and services . a performance obligation is a promise in a contract to transfer a distinct product or service to a customer and is the unit of account under asc number . revenue is recognized when control of the promised products or services is transferred to our customers and the performance obligation is fulfilled in an amount that reflects the consideration that we expect to be entitled to in exchange for those products or services the transaction price . for equipment consumables and most software licenses sold by us control transfers to the customer at a point in time . we use present right to payment legal title physical possession of the asset and risks and rewards of ownership as indicators to determine the transfer of control to the customer . where acceptance is not a formality the customer must have documented their acceptance of the product or service . for products that include installation if the installation meets the criteria to be considered a separate performance obligation product revenue is recognized when control has passed to the customer and recognition of installation revenue occurs once completed . product revenue including sales to resellers and distributors is reduced for provisions for warranties returns and other adjustments in the period the related sales are recorded . revenue from services includes extended warranty customer and software support including : software as a service post contract support consulting including companion diagnostics and training and education . instrument service contracts and software maintenance contracts are typically annual contracts which are billed at the beginning of the contract or maintenance period . these contracts are recognized on a basis to revenue over the service period as a measure of progress best reflects our performance in satisfying this obligation . there are no deferred costs associated with the service contract as the cost of the service is recorded when the service is performed . service calls are recognized to revenue at the time a service is performed . we have sales from standalone software . these arrangements typically include software licenses and maintenance contracts both of which we have determined are distinct performance obligations . we determine the amount of the transaction price to allocate to the license and maintenance contract based on the relative standalone selling price of each performance obligation . software license revenue is recognized at the point in time when control has been transferred to the customer . the revenue allocated to the software maintenance contract is recognized on a basis over the maintenance period which is the contractual term of the contract as a measure of progress best reflects our performance in satisfying this obligation . unspecified rights to software upgrades are typically sold as part of the maintenance contract on a basis . our arrangements are generally comprised of a combination of instruments installation or other services software support or services . hardware and software elements are typically delivered at the same time and revenue is recognized when control passes to the customer . service revenue is deferred and recognized over the contractual period or as services are rendered and accepted by the customer . our arrangements generally do not include any provisions for cancellation termination or refunds that would significantly impact recognized revenue . for contracts with multiple performance obligations we allocate the consideration to which we expect to be entitled to each performance obligation based on relative standalone selling prices and recognize the related revenue when or as control of each individual performance obligation is transferred to customers . we estimate the standalone selling price by calculating the average historical selling price of our products and services per country for each performance obligation . selling prices are determined at contract inception for each distinct good or service in the contract and then we allocate the transaction price in proportion to those standalone selling prices by performance obligations . certain of our revenue relate to lease arrangements . standalone lease arrangements are outside the scope of asc number and are therefore accounted for in accordance with asc number leases . each of these contracts is evaluated as a lease arrangement either as an operating lease or a capital lease using the current lease classification guidance . accounting for income taxes . we must make certain estimates and judgments in determining income tax expense for financial statement purposes . these estimates and judgments occur in the calculation of tax credits benefits and deductions and in the calculation of certain tax assets and liabilities which arise from differences in the timing of recognition of revenue and expense for tax and financial statement purposes as well as interest and penalties related to uncertain tax positions . significant changes to these estimates may result in an increase or decrease to our tax provision in a subsequent period . on a quarterly basis we provide for income taxes based upon an estimated annual effective tax rate . the effective tax rate is highly dependent upon the geographic composition of worldwide earnings tax regulations governing each region availability of tax credits and the effectiveness of our tax planning strategies . we monitor the changes in many factors and adjust our effective income tax rate on a timely basis . if actual results differ from these estimates this could have a material effect on our financial condition and results of operations . significant management judgment is also required in determining whether deferred tax assets will be realized in full or in part . when it is that all or some portion of deferred tax assets may not be realized a valuation allowance must be established against such deferred tax assets . we consider all available positive and negative evidence on a basis when assessing whether it is more likely than not that deferred tax assets are recoverable . we consider evidence such as our past operating results the existence of losses in recent years and our forecast of future taxable income . at april number date we continue to recognize a valuation allowance for certain and state and foreign deferred tax assets . we intend to maintain a valuation allowance in these jurisdictions until sufficient positive evidence exists to support its reversal . the calculation of our tax liabilities involves dealing with uncertainties in the application of complex tax law and regulations in a multitude of jurisdictions . although the guidance on the accounting for uncertainty in income taxes prescribes the use of a recognition and measurement model the determination of whether an uncertain tax position has met those thresholds will continue to require significant judgment by management . in accordance with the guidance on the accounting for uncertainty in income taxes for all and other tax jurisdictions we recognize potential liabilities for anticipated tax audit issues based on our estimate of whether and the extent to which additional taxes and interest will be due . the ultimate resolution of tax uncertainties may differ from what is currently estimated which could result in a material impact on income tax expense . if our estimate of income tax liabilities proves to be less than the ultimate assessment a further charge to expense would be required . if events occur and the payment of these amounts ultimately proves to be unnecessary the reversal of the liabilities would result in tax benefits being recognized in the period when we determine the liabilities are no longer necessary . we include interest and penalties related to unrecognized tax benefits within the provision for income taxes on the consolidated statements of operations . on december number date the tax act was enacted into law . the tax act significantly changes the existing tax law and includes numerous provisions that affect our business . there were no substantial changes from our date annual report on form to the transition tax expenses amount . the company will continue to assess the impact of the further guidance from federal and state tax authorities on its business and consolidated financial statements . any future adjustments will be recognized as discrete income tax expense or benefit in the period the adjustments are determined . we have completed our analysis and elected to treat global intangible income gilti as current period cost . see note number income taxes for more details . adoption of new pronouncements see note number new accounting pronouncements to the condensed consolidated financial statements for a description of new accounting pronouncements . foreign currency our revenues costs and expenses and monetary assets and liabilities are exposed to changes in foreign currency exchange rates as a result of our global operating and financing activities . the unfavorable effects of changes in foreign currency exchange rates has decreased revenue by approximately number percentage points in the six months ended april number when movements in foreign currency exchange rates have a negative impact on revenue it will also have a positive impact on our costs and expenses . we calculate the impact of foreign currency exchange rates movements by applying the actual foreign currency exchange rates in effect during the last month of each quarter of the current year to both the applicable current and prior year periods . we hedge revenues expenses and balance sheet exposures that are not denominated in the functional currencies of our subsidiaries on a short term and anticipated basis . we do experience some fluctuations within individual lines of the condensed consolidated statement of operations and balance sheet because our hedging program is not designed to offset the currency movements in each category of revenues expenses monetary assets and liabilities . our hedging program is designed to hedge currency movements on a relatively basis up to a rolling period . therefore we are exposed to currency fluctuations over the longer term . to the extent that we are required to pay for all or portions of an acquisition price in foreign currencies we may enter into foreign exchange contracts to reduce the risk that currency movements will impact the dollar cost of the transaction . results from operations net revenue net revenue of number million for the three months ended april year . net revenue of number million for the six months ended april year . foreign currency movements had an unfavorable impact on revenue of approximately number percentage points in both periods when compared to the same periods last year . services and other revenue increased number percent and number percent services and other revenue primarily consists of revenue generated from agilent crosslab services and services in the diagnostics and genomics business . some of the prominent services in the agilent crosslab business include repair and maintenance on instruments compliance services and installation services . some of the prominent services in the diagnostics and genomics business include consulting services related to the companion diagnostics and nucleic acid businesses . the service revenue from the agilent crosslab business increased number percent in both periods with a number percentage point unfavorable currency impact in both periods when compared to the same periods last year . the growth in the service revenue from the agilent crosslab business for both periods were driven by the improving connect service rate on current instrument base as well as increase in higher value service offerings . the service revenue from the diagnostics and genomics business increased number percent and number percent the increase in diagnostics and genomics service revenue reflects strong growth in both periods throughout the entire portfolio . net revenue by segment revenue in the life sciences and applied markets business decreased number percent and was flat foreign currency movements in both periods when compared to the same periods last year . for the three months ended april number date revenue growth within the academia and government and forensics markets was strong but was more than offset by weaker revenue from the food market and to a lesser extend from the pharmaceutical and chemical and energy markets when compared to the same period last year . for the six months ended april number date revenue growth within the academia and government and forensics markets was strong with modest revenue growth within the pharmaceutical market that was fully offset by weaker revenue from the food market and to a lesser extent from the chemical and energy market when compared to the same period last year . revenue in the diagnostics and genomics business increased number percent and number percent foreign currency movements and number percentage points revenue growth within the diagnostics and clinical market continued to be strong led by performance from our nucleic acid solutions and biomolecular analysis businesses . revenue generated by agilent crosslab in the three and six months ended april number date increased number percent and number percent foreign currency movements and number percentage points revenue grew across all key end markets with strong growth in the food and academia and government markets . revenue growth was driven broadly by our entire service and supplies portfolio . operating results total gross margin increased number percentage point and was relatively flat gross margin reflects the impact of lower inventory charges lower materials costs and favorable currency impact on costs offset by increased wages higher expenses related to tariffs and higher amortization expense of intangible assets . research and development expenses in the three and six months ended april number date increased number percent in both periods when compared to the same periods last year . research and development expenses increased due to increased program spending on new products related to all of our businesses in addition to higher wages and additional expenses related to acquired businesses when compared to spending in the same period last year . selling general and administrative expenses increased number percent and number percent in the three and six months ended april number date the increase in selling general and administrative expenses for the three months ended april number date was due to increased wages higher compensation expense and higher acquisition and integration costs partially offset by operational efficiencies and savings and favorable currency impact . the increase in selling general and administrative expenses for the six months ended april number date was due to increased wages and higher acquisition and integration costs partially offset by operational efficiencies and savings and favorable currency impact . total operating margin was relatively flat in both periods when compared to the same periods last year . operating margin was impacted by increased wages higher acquisition and integration costs higher expenses related to tariffs and higher amortization expense of intangible assets offset by lower spending and planned operational savings and favorable currency impact . at april number date our headcount was approximately number as compared to approximately number at april number the increase in headcount is mainly due to the acquisition of several businesses and employees in our service business . other income expense net in the three and six months ended april number date and date other income expense net includes number million and number million respectively of income in both periods related to the provision of site service costs to and lease income from keysight technologies the costs associated with these services are reported within income from operations . also included in other income expense net for the six months ended april number date is approximately number million of income related to a special settlement with a and a number million pension settlement gain related to the substitutional portion of the defined benefit pension plans established under the japanese welfare pension insurance law . income taxes the company income tax expense was number million with an effective tax rate of number percent and an income tax benefit of number million with an effective tax rate of number percent respectively . for the six months ended april number date our effective tax rate and the resulting provision for income taxes were significantly impacted by the discrete benefit of number million related to the restructuring and extension of the companys tax incentive in singapore . the income tax provision also includes the excess tax benefits from compensation of number million and number million respectively . the company income tax expense was number million with an effective tax rate of number percent and number million with an effective tax rate ofpercent respectively . the effective tax rate and the provision for income taxes were significantly impacted by a discrete charge of number million related to the enactment of the tax act . the income taxes provision also included the excess tax benefits from compensation of number million and number million . tax reform tax cuts and jobs act on december number date the tax act was enacted into law . the tax act enacted significant changes affecting our fiscal year date including but not limited to number reducing the federal corporate tax rate and number imposing a transition tax on certain unrepatriated earnings of foreign subsidiaries that had not been previously taxed in the the tax act also establishes new tax provisions affecting our fiscal year date including but not limited to number creating a new provision designed to tax global intangible income gilti ; number generally eliminating federal taxes on dividends from foreign subsidiaries ; number eliminating the corporate alternative minimum tax amt ; number creating the base erosion tax beat ; number establishing a deduction for foreign derived intangible income fdii ; number repealing the domestic production activity deduction ; and number establishing new limitations on deductible interest expense and certain executive compensation . gilti : the tax act subjects a corporation to tax on its gilti . gaap allows companies to make an accounting policy election to either number treat taxes due on future gilti inclusions in the taxable income as a expense when incurred period cost method or number factoring such amounts into a companys measurement of its deferred taxes deferred method . we have completed our analysis and elected to treat gilti as a current period cost . in the tax years remain open back to the year date for federal income tax purposes and the year date for significant states . in other major jurisdictions where the company conducts business the tax years generally remain open back to the yearthere were no substantial changes from our date annual report on form to the status of the open tax years in the first six months of fiscal yearit is reasonably possible there could be significant changes to our unrecognized tax benefits in the next twelve months due to either the expiration of a statute of limitation or a tax audit settlement . given the number of years and numerous matters that remain subject to examination in various tax jurisdictions management is unable to estimate the range of possible changes to the balance of our unrecognized tax benefits . the company will continue to assess the impact of the further guidance from federal and state tax authorities on its business and consolidated financial statements . any future adjustments will be recognized as discrete income tax expense or benefit in the period the adjustments are determined . segment overview in date we adopted new guidance related to the presentation of the net periodic pension and postretirement benefit cost . see note number new accounting pronouncements for more information . as a result we have recast our historical segment results to conform to this new presentation required under this guidance . also in the third quarter of date we our operating segments and moved the microfluidics business from our life sciences and applied markets operating segment to our diagnostics and genomics operating segment . following this we continue to have three business segments comprised of the life sciences and applied markets business diagnostics and genomics business and the agilent crosslab business . all historical financial segment information for both the life sciences and applied markets segment and the diagnostics and genomics segment has been recast to reflect this reorganization in our financial statements . life sciences and applied markets our life sciences and applied markets business provides solutions that include instruments and software that enable customers to identify quantify and analyze the physical and biological properties of substances and products as well as enable customers in the clinical and life sciences research areas to interrogate samples at the molecular and cellular level . key product categories include : liquid chromatography lc systems and components ; liquid chromatography mass spectrometry lcms systems ; gas chromatography gc systems and components ; gas chromatography mass spectrometry gcms systems ; inductively coupled plasma mass spectrometry instruments ; atomic absorption aa instruments ; microwave emission spectrometry instruments ; inductively coupled plasma optical emission spectrometry instruments ; raman spectroscopy ; cell analysis plate based assays ; flow cytometer ; cell analyzer ; laboratory software for sample tracking ; information management and analytics ; laboratory automation and robotic systems ; dissolution testing ; vacuum pumps and measurement technologies . net revenue life sciences and applied markets business revenue decreased number percent and was flat foreign currency movements in both periods when compared to the same periods last year . revenue from our recent acquisitions in the past year contributed number percentage points to our revenue growth in the three months ended april number geographically revenue increased number percent in the americas with a number percentage point unfavorable currency impact decreased number percent in europe with a number percentage point unfavorable currency impact and decreased number percent in asia pacific with a number percentage point unfavorable currency impact for the three months ended april number date compared to the same period last year . the revenue decline during the three months ended april number date was driven by a decrease in sales of lc and lcms products partially offset by strong performance in our cell analysis products and atomic absorption products . revenue increased number percent in the americas with a number percentage point unfavorable currency impact decreased number percent in europe with a number percentage point unfavorable currency impact and increased number percent in asia pacific with a number percentage point unfavorable currency impact for the six months ended april number date compared to the same period last year . flat revenue growth during the six months ended april number date was driven by in sales in our lc lcms and spectroscopy businesses which was offset by strength in informatics and cell analysis products when compared to the same period last year . for the three months ended april number date revenue results by end markets were mixed with the academia and government and forensics markets delivering strong revenue growth while the food market and to a lesser extent the pharmaceutical and chemical and energy markets delivered weaker results when compared to the same period last year . revenue growth in the academia and government markets was also strong due to performance of our cell analysis products which includes products from our recent acquisitions . for the six months ended april number date revenue results by end markets were mixed with the academia and government and forensics markets delivering strong revenue growth pharmaceutical and environmental markets delivering moderate growth while the food and chemical and energy markets delivered weaker results when compared to the same period last year . looking forward despite short term uncertainties we are optimistic about our growth opportunities in the life sciences and applied markets as our broad portfolio of products and solutions are well suited to address customer needs . we anticipate strong sales funnels given new product introductions as we continue to invest in expanding and improving our applications and solutions portfolio . while we anticipate volatility in our markets we expect continued growth across most end markets . operating results gross margin for products and services increased number percentage point and was flat gross margin for the three months ended april number date was impacted by favorable product mix lower manufacturing material costs and favorable currency impact on costs partially offset by higher expenses related to tariffs and logistics costs . gross margin for the six months ended april number date was impacted by higher expenses related to tariffs and logistics costs which was offset by favorable currency impact and lower manufacturing material costs . research and development expenses was flat and increased number percent research and development for the three months ended april number date was impacted by additional expenses related to our recent acquisitions as well as annual wage and benefit increases offset by favorable currency impact and lower expenses . the increase in research and development for the six months ended april number date was due to additional expenses related to our recent acquisitions as well as annual wage and benefit increases partially offset by favorable currency impact . selling general and administrative expenses increased number percent and number percent selling general and administrative expenses for the three months ended april number date was impacted by annual wage and benefit increases and additional expenses related to our recent acquisitions partially offset by operational efficiencies and savings and favorable currency impact . selling general and administrative expenses for the six months ended april number date was impacted by annual wage and benefit increases and additional expenses related to our recent acquisitions offset by lower spending and planned operational savings and favorable currency impact . operating margin for product and services decreased number percentage point and was flat operating margin for the three months ended april number date reflects the slight revenue decline partially offset by the favorable impact of currency on selling general and administrative expenses . operating margin for the six months ended april number date reflects flat revenue growth partially offset by the favorable impact of currency on selling general and administrative expenses . income from operations income from operations decreased number million and number million respectively on a corresponding revenue decrease of number million and increase of number million respectively . diagnostics and genomics our diagnostics and genomics business includes the genomics nucleic acid contract manufacturing and research and development pathology companion diagnostics reagent partnership and biomolecular analysis businesses . our diagnostics and genomics business is comprised of six areas of activity providing active pharmaceutical ingredients apis for therapeutics as well as solutions that include reagents instruments software and consumables which enable customers in the clinical and life sciences research areas to interrogate samples at the cellular and molecular level . first our genomics business includes arrays for dna mutation detection genotyping gene copy number determination identification of gene rearrangements dna methylation profiling gene expression profiling as well as next generation sequencing ngs target enrichment and genetic data management and interpretation support software . this business also includes solutions that enable clinical labs to identify dna variants associated with genetic disease and help direct cancer therapy . second our nucleic acid solutions business provides equipment and expertise focused on production of synthesized oligonucleotides under pharmaceutical good manufacturing practices gmp conditions for use as api in an emerging class of drugs that utilize nucleic acid molecules for disease therapy . third our pathology solutions business is focused on product offerings for cancer diagnostics and anatomic pathology workflows . the broad portfolio of offerings includes immunohistochemistry ihc in situ hybridization ish hematoxylin and eosin h e staining and special staining . fourth we also collaborate with a number of major pharmaceutical companies to develop new potential pharmacodiagnostics also known as companion diagnostics which may be used to identify patients most likely to benefit from a specific targeted therapy . fifth the reagent partnership business is a provider of reagents used for turbidimetry and flow cytometry . finally our biomolecular analysis business provides complete workflow solutions including instruments consumables and software for quality control analysis of nucleic acid samples . samples are analyzed using quantitative and qualitative techniques to ensure accuracy in further genomics analysis techniques utilized in clinical and life science research applications . net revenue diagnostics and genomics business revenue increased number percent and number percent foreign currency movements and number percentage points geographically revenue increased number percent in the americas with a number percentage point unfavorable currency impact decreased number percent in europe with a number percentage point unfavorable currency impact and decreased number percent in asia pacific with a number percentage point unfavorable currency impact for the three months ended april number date compared to the same period last year . for the three months ended april number date the growth in americas was driven by strong growth in our companion diagnostic businesses and continued strength in our nucleic acid solutions biomolecular analysis and genomics businesses . the performance in europe was driven by growth in our reagent partnership and companion diagnostics businesses and offset by a decrease in the genomics business . in asia pacific the growth was driven by our pathology and biomolecular analysis businesses and negatively impacted by a decrease in the genomics business . revenue increased number percent in the americas with a number percentage point unfavorable currency impact increased number percent in europe with a number percentage point unfavorable currency impact and increased number percent in asia pacific with a number percentage point unfavorable currency impact for the six months ended april number date compared to the same period last year . for the six months ended april number date the growth in americas was driven by strong growth in our nucleic acid solutions and companion diagnostic businesses and continued strength in our biomolecular analysis businesses . the performance in europe was driven by growth in our reagent partnership and biomolecular analysis businesses . in asia pacific the growth was driven by our pathology and biomolecular analysis businesses . for the three months ended april number date the diagnostics and genomics business revenue grew by number percent . the global growth was led by very strong revenue performance in our companion diagnostics business . the diagnostics and clinical research market remains strong and growing driven by an aging population and unhealthy lifestyle . for the six months ended april number date the diagnostics and genomics business revenue grew by number percent driven by the same market . looking forward we are optimistic about our growth opportunities in our end markets and continue to invest in expanding and improving our applications and solutions portfolio . we remain positive about our growth in our end markets as our omnis products assays and surefish continue to gain strength with our customers in clinical oncology applications and our next generation sequencing target enrichment solutions continue to be adopted . market demand in the nucleic acid solutions business related to therapeutic oligo programs continues to be strong . we are investing in building further capacity in our nucleic acid solutions business to address the future demand for the oligos . we will continue to invest in research and development and seek to expand our position in developing countries and emerging markets . operating results gross margin for products and services was flat for both periods when compared to the same periods last year . gross margin in the three and six months ended april number date was impacted as gains from higher volumes were mainly offset by an unfavorable product mix . research and development expenses increased number percent and number percent the increase in research and development for the three months ended april number date was due to additional expenses related to prior year acquisitions higher wages and benefits and increased spending around the development of clinical applications and solutions . selling general and administrative expenses was flat for both periods when compared to the same periods last year . selling general and administrative expenses in both periods was impacted by a favorable currency impact operational efficiencies and savings in field selling costs offset by incremental expenses related to our prior year acquisitions . operating margin for product and services decreased number percentage point and increased number percentage point the decrease in operating margin for the three months ended april number date was mainly due to higher research and development investments related to prior years acquisitions . the increase in operating margin for the six months ended april number date was mainly due to higher revenue volumes more than the research and development investments related to prior years acquisitions . income from operations income from operations increased number million and number million respectively on a corresponding revenue increase of number million and number million respectively due to higher revenue volumes . agilent crosslab the agilent crosslab business spans the entire lab with its extensive consumables and services portfolio which is designed to improve customer outcomes . most of the portfolio is vendor neutral meaning agilent can serve and supply customers regardless of their instrument purchase choices . solutions range from chemistries and supplies to services and software helping to connect the entire lab . key product categories in consumables include gc and lc columns sample preparation products custom chemistries and a large selection of laboratory instrument supplies . services include startup operational training and compliance support software as a service as well as asset management and consultative services that help increase customer productivity . custom service and consumable bundles are tailored to meet the specific application needs of various industries and to keep instruments fully operational and compliant with the respective industry requirements . net revenue agilent crosslab business revenue increased number percent and number percent foreign currency movements and number percentage points revenue from our recent acquisitions in the past year contributed number percentage points to our revenue growth for both the three and six months ended april number date when compared to the same periods last year . geographically revenue increased number percent in the americas with a number percentage point unfavorable currency impact increased number percent in europe with a number percentage point unfavorable currency impact and increased number percent in asia pacific with a number percentage point unfavorable currency impact for the three months ended april number date compared to the same period last year . recent acquisitions contributed number percentage points in the americas and number percentage point in europe for the three months ended april number revenue increased number percent in the americas with a number percentage point unfavorable currency impact increased number percent in europe with a number percentage point unfavorable currency impact and increased number percent in asia pacific with a number percentage point unfavorable currency impact for the six months ended april number date compared to the same period last year . recent acquisitions contributed number percentage points in the americas and number percentage point in europe for the six months ended april number during the three and six months ended april number date revenue growth was driven broadly by our entire service and supplies portfolio . for the three months ended april number date the agilent crosslab business saw revenue growth in all key end markets but the growth was especially strong in the food academia and government chemical and energy markets when the impact of recent acquisitions . for the six months ended april number date the agilent crosslab business saw revenue growth across all key end markets . looking forward we anticipate strength in all key end markets will continue to drive our revenue growth in the near term . the agilent crosslab portfolio of products and services are well positioned to succeed in changing market conditions in any of our key end markets . geographically the business is well diversified across all regions to swiftly take advantage of regional market opportunities and to help hedge against volatility in any one region . other factors for near term revenue growth include our continuing expansion of our sales channel . operating results gross margin for products and services increased number percentage point for both periods when compared to the same periods last year primarily due to favorable currency impact on costs . in addition the gross margin was positively impacted by improvements to the operational efficiency of the service delivery business . research and development expenses was relatively flat when compared to the same periods last year . the slight increase was primarily due to higher wages and additional research and development expenses from recent acquisitions . selling general and administrative expenses increased number percent for both periods when compared to the same periods last year . the increase in selling general and administrative expenses for the three months ended april number date was primarily due to additional operating expenses from recent acquisitions higher wages and higher compensation expense partially offset by a favorable impact from foreign currency movements . the increase in selling general and administrative expenses for the six months ended april number date was primarily due to additional operating expenses from recent acquisitions and higher wages partially offset by a favorable impact from foreign currency movements . operating margin for product and services increased approximately number percentage points for both periods when compared to the same periods last year . the improvement in the operating margin for both of those periods were driven by strong growth in revenues and gross margins combined with only a modest growth in operating expenses . income from operations income from operations increased number million and number million respectively on a corresponding revenue increase of number million and number million respectively . financial condition liquidity and capital resources our financial position as of april number date consisted of cash and cash equivalents of number million as compared to number million as of october number as of april number date number million of our cash and cash equivalents was held outside of the in our foreign subsidiaries and can be repatriated to the as local working capital and other regulatory conditions permit . as a result of the tax act in general our cash and cash equivalents are no longer subjected to federal tax when repatriated into the we utilize a variety of funding strategies to ensure that our worldwide cash is available in the locations in which it is needed . as a result of the tax act we are required to pay a transition tax of number million on deferred foreign income not previously subject to federal income tax . the first of number million was paid in the second quarter of date and the remaining will be paid over the next seven years . we believe our cash and cash equivalents cash generated from operations and ability to access capital markets and credit lines will satisfy for at least the next twelve months our liquidity requirements both globally and domestically including the following : working capital needs capital expenditures business acquisitions stock repurchases cash dividends contractual obligations commitments principal and interest payments on debt and other liquidity requirements associated with our operations . net cash provided by operating activities net cash inflow from operating activities was number million for the six months ended april number date compared to cash inflow of number million for the same period inin the six months ended april number date we paid approximately number million under our variable and incentive pay programs as compared to a total of number million paid during the same period ofnet cash paid for income taxes was approximately number million and number million in the six months ended april number date and date respectively . for the six months ended april number date the net change in assets and liabilities related to the enactment of the tax act of zero compared to number million in the same period in the prior year which primarily consisted of an estimated provision of number million of transition tax on deemed repatriated earnings of subsidiaries as well as an estimated number million associated with the impact of the decreased corporate income tax rate . for the six months ended april number date deferred taxes used cash of number million compared to cash used of number million in the same period inthe change of cash in the six months ended april number date primarily related to the restructuring of our operations in singapore of number million . for the six months ended april number date other assets and liabilities had cash outflow of number million compared to cash inflow of number million for the same period incash outflow in the six months ended april number date was largely the result of increased income tax payments interest payments on senior notes and changes in deferred revenue . cash inflow for the six months ended april number date in other assets and liabilities were related to changes in the transaction taxes and deferred revenue . in the six months ended april number date accounts receivable used cash of number million compared to cash used of number million for the same period indays sales outstanding as of april number date and date was number days and number days respectively . accounts payable used cash of number million for the six months ended april number date compared to cash used of number million in the same period incash used for inventory was number million for the six months ended april number date compared to cash used of number million for the same period ininventory days was number days as of april number date compared to number days as of april number we contributed approximately number million to our defined benefit plans in both the six months ended april number date annual contributions are highly dependent on the relative performance of our assets versus our projected liabilities among other factors . we expect to contribute approximately number million to our defined benefit plans during the remainder ofnet cash used in investing activities net cash used in investing activities was number million for the six months ended april number date as compared to net cash used in investing activities of number million in the same period ofinvestments in property plant and equipment were number million for the six months ended april number date compared to number million in the same period ofwe expect that total capital expenditures for the current year will be approximately number million . cash used to purchase fair value investments for the six months ended april number date was number million compared to number million in the same period inin the six months ended april number date we invested number million in our acquisition of acea net of cash acquired compared to number million in acquisitions in the same period last year . net cash used in financing activities net cash used in financing activities for the six months ended april number date was number million compared to net cash used in financing activities of number million for the same period oftreasury stock repurchases on november number date we announced that our board of directors had approved the date repurchase program designed among other things to reduce or eliminate dilution resulting from issuance of stock under the company employee equity incentive programs . the date repurchase program authorizes the purchase of up to number billion of our common stock at the company discretion and has no fixed termination date . the date repurchase program does not require the company to acquire a specific number of shares and may be suspended amended or discontinued at any time . during the six months ended april number date we shares for number million under this authorization . during the six months ended april number date we retired shares for number million . the remaining number treasury shares were retired on may number as of april number date we had remaining authorization to repurchase up to number billion of our common stock under this program . in the third quarter of date we anticipate more shares than our quarterly repurchases . on may number date we announced that our board of directors had approved a new share repurchase program the date repurchase program . the date repurchase program authorized the purchase of up to number billion of our common stock at the company discretion through and including november number the date repurchase program did not require the company to acquire a specific number of shares and could have been suspended or discontinued at any time . during the six months ended april number date we repurchased and retired number million shares for number million under this authorization . on november number date the remaining authorization of number million under this repurchase program expired . dividends during the six months ended april number date and date we paid cash dividends of number per common share or number million and number per common share or number million respectively on the company common stock . on may number date our board of directors declared a quarterly dividend of number per share of common stock or approximately number million which will be paid on july number date to all shareholders of record at close of business on july number the timing and amounts of any future dividends are subject to determination and approval by our board of directors . credit facilities on march number date agilent entered into a credit agreement with a group of financial institutions which provides for a number billion unsecured credit facility that will expire on march number the credit facility replaces the existing credit facility which was terminated the closing date of the new facility . as of april number date the company had no borrowings outstanding under the credit facility . we were in compliance with the covenants for all the credit facilities during the six months ended april number debt there have been no other changes to the principal maturity interest rates and interest payment terms of the agilent outstanding senior notes in the six months ended april number date as compared to the senior notes as described in our annual report on form for the fiscal year ended october number other there were no substantial changes from our date annual report on form to our contractual commitments in the first six months of fiscalwe have contractual commitments for operating leases . we have no other material guarantees or commitments . other liabilities as of april number date and october number date include number million and number million respectively related to income tax liabilities . of these amounts number million and number million related to uncertain tax positions of continuing operations as of april number date and october number date respectively . we are unable to accurately predict when these amounts will be realized or released . however it is reasonably possible that there could be significant changes to our unrecognized tax benefits in the next twelve months due to either the expiration of a statute of limitations or a tax audit settlement . item . risk factors risks uncertainties and other factors that may affect future results our operating results and financial condition could be harmed if the markets into which we sell our products decline or do not grow as anticipated . visibility into our markets is limited . our quarterly sales and operating results are highly dependent on the volume and timing of orders received during the fiscal quarter which are difficult to forecast and may be cancelled by our customers . in addition our revenue and earnings forecasts for future fiscal quarters are often based on the expected seasonality of our markets . however the markets we serve do not always experience the seasonality that we expect as customer spending policies and budget allocations particularly for capital items may change . any decline in our customers markets or in general economic conditions would likely result in a reduction in demand for our products and services . also if our customers markets decline we may not be able to collect on outstanding amounts due to us . such declines could harm our consolidated financial position results of operations cash flows and stock price and could limit our profitability . also in such an environment pricing pressures could intensify . since a significant portion of our operating expenses is relatively fixed in nature due to sales research and development and manufacturing costs if we were unable to respond quickly enough these pricing pressures could further reduce our operating margins . if we do not introduce successful new products and services in a timely manner to address increased competition through frequent new product and service introductions rapid technological changes and changing industry standards our products and services may become obsolete and our operating results may suffer . we generally sell our products in industries that are characterized by increased competition through frequent new product and service introductions rapid technological changes and changing industry standards . without the timely introduction of new products services and enhancements our products and services may become technologically obsolete over time in which case our revenue and operating results could suffer . the success of our new products and services will depend on several factors including our ability to : properly identify customer needs and predict future needs ; innovate and develop new technologies services and applications ; appropriately allocate our research and development spending to products and services with higher growth prospects ; successfully commercialize new technologies in a timely manner ; manufacture and deliver new products in sufficient volumes and on time ; differentiate our offerings from our competitors offerings ; price our products competitively ; anticipate our competitors development of new products services or technological innovations ; and control product quality in our manufacturing process . in addition if we fail to accurately predict future customer needs and preferences or fail to produce viable technologies we may invest in research and development of products and services that do not lead to significant revenue which would adversely affect our profitability . even if we successfully innovate and develop new and enhanced products and services we may incur substantial costs in doing so and our operating results may suffer . in addition promising new products may fail to reach the market or realize only limited commercial success because of real or perceived concerns of our customers . furthermore as we collaborate with pharmaceutical customers to develop drugs such as companion diagnostics assays or provide drug components like active pharmaceutical ingredients we face risks that those drug programs may be cancelled upon clinical trial failures . general economic conditions may adversely affect our operating results and financial condition . our business is sensitive to negative changes in general economic conditions both inside and outside the united states . slower global economic growth and uncertainty in the markets in which we operate may adversely impact our business resulting in : reduced demand for our products delays in the shipment of orders or increases in order cancellations ; increased risk of excess and obsolete inventories ; increased price pressure for our products and services ; and greater risk of impairment to the value and a detriment to the liquidity of our investment portfolio . failure to adjust our purchases due to changing market conditions or failure to accurately estimate our customers demand could adversely affect our income . our income could be harmed if we are unable to adjust our purchases to reflect market fluctuations including those caused by the seasonal nature of the markets in which we operate . the sale of our products and services are dependent to a large degree on customers whose industries are subject to seasonal trends in the demand for their products . during a market upturn we may not be able to purchase sufficient supplies or components to meet increasing product demand which could materially affect our results . in the past we have experienced a shortage of parts for some of our products . in addition some of the parts that require custom design are not readily available from alternate suppliers due to their unique design or the length of time necessary for design work . should a supplier cease manufacturing such a component we would be forced to reengineer our product . in addition to discontinuing parts suppliers may also extend lead times limit supplies or increase prices due to capacity constraints or other factors . in order to secure components for the production of products we may continue to enter into purchase commitments with vendors or at times make advance payments to suppliers which could impact our ability to adjust our inventory to declining market demands . if demand for our products is less than we expect we may experience additional excess and obsolete inventories and be forced to incur additional expenses . demand for some of our products and services depends on the capital spending policies of our customers research and development budgets and on government funding policies . our customers include pharmaceutical companies laboratories universities healthcare providers government agencies and public and private research institutions . many factors including public policy spending priorities available resources mergers and consolidations institutional and governmental budgetary policies and spending priorities and product and economic cycles have a significant effect on the capital spending policies of these entities . fluctuations in the research and development budgets at these organizations could have a significant effect on the demand for our products and services . research and development budgets fluctuate due to changes in available resources consolidation spending priorities general economic conditions and institutional and governmental budgetary policies . the timing and amount of revenue from customers that rely on government funding or research may vary significantly due to factors that can be difficult to forecast including changes in spending authorizations and budgetary priorities for our products and services . if demand for our products and services is adversely affected our revenue and operating results would suffer . economic political foreign currency and other risks associated with international sales and operations could adversely affect our results of operations . because we sell our products worldwide our business is subject to risks associated with doing business internationally . we anticipate that revenue from international operations will continue to represent a majority of our total revenue . international revenue and costs are subject to the risk that fluctuations in foreign currency exchange rates could adversely affect our financial results when translated into dollars for financial reporting purposes . the unfavorable effects of changes in foreign currency exchange rates has decreased revenues by approximately number percentage points in the six months ended april number when movements in foreign currency exchange rates have a negative impact on revenue it will also have a positive impact on our costs and expenses . in addition many of our employees contract manufacturers suppliers job functions outsourcing activities and manufacturing facilities are located outside the united states . accordingly our future results could be harmed by a variety of factors including : interruption to transportation flows for delivery of parts to us and finished goods to our customers ; changes in a specific country or region political economic or other conditions ; changes in diplomatic and trade relationships such as the united kingdom exit from the european union including new tariffs trade protection measures import or export licensing requirements new or different customs duties trade embargoes and sanctions and other trade barriers ; tariffs imposed by the on goods from other countries and tariffs imposed by other countries on goods including the tariffs enacted and proposed by the government on various imports from china and by the chinese government on certain goods negative consequences from changes in or differing interpretations of laws and regulations including those related to tax and ; difficulty in staffing and managing widespread operations ; differing labor regulations ; differing protection of intellectual property ; unexpected changes in regulatory requirements ; and geopolitical uncertainty or turmoil including terrorism and war . we sell our products into many countries and we also source many components and materials for our products from various countries . tariffs recently announced and implemented could have negative impact on our business results of operations and financial condition . further additional tariffs the scope and duration of which if implemented remains uncertain which have been proposed or threatened and the potential escalation of a trade war and retaliatory measures could have a material adverse effect on our business results of operations and financial condition . most of our accounting and tax processes including general accounting cost accounting accounts payable accounts receivables and tax functions are centralized at locations in india and malaysia . if conditions change in those countries it may adversely affect operations including impairing our ability to pay our suppliers and collect our receivables . our results of operations as well as our liquidity may be adversely affected and possible delays may occur in reporting financial results . in addition although the majority of our products are priced and paid for in dollars a significant amount of certain types of expenses such as payroll utilities tax and marketing expenses are paid in local currencies . our hedging programs reduce but do not always entirely eliminate within any given period the impact of currency exchange rate movements and therefore fluctuations in exchange rates including those caused by currency controls could impact our business operating results and financial condition by resulting in lower revenue or increased expenses . for expenses beyond that period our hedging strategy does not mitigate our exposure . in addition our currency hedging programs involve third party financial institutions as counterparties . the weakening or failure of financial institution counterparties may adversely affect our hedging programs and our financial condition through among other things a reduction in available counterparties increasingly unfavorable terms and the failure of the counterparties to perform under hedging contracts . our strategic initiatives to adjust our cost structure could have adverse effects on our business and we may not realize the operational or financial benefits from such actions . we have implemented multiple strategic initiatives across our businesses to adjust our cost structure and we may engage in similar activities in the future . these strategic initiatives and our regular ongoing cost reduction activities may distract management could slow improvements in our products and services and limit our ability to increase production quickly if demand for our products increases . in addition delays in implementing our strategic initiatives unexpected costs or failure to meet targeted improvements may diminish the operational and financial benefits we realize from such actions . any of the above circumstances could have an adverse effect on our business and operating results and financial condition . our business will suffer if we are not able to retain and hire key personnel . our future success depends partly on the continued service of our key research engineering sales marketing manufacturing executive and administrative personnel . if we fail to retain and hire a sufficient number of these personnel we will not be able to maintain or expand our business . the markets in which we operate are very dynamic and our businesses continue to respond with reorganizations workforce reductions and site closures . we believe our pay levels are very competitive within the regions that we operate . however there is intense competition for certain highly technical specialties in geographic areas where we continue to recruit and it may become more difficult to hire and retain our key employees . our acquisitions strategic investments and alliances joint ventures exiting of businesses and divestitures may result in financial results that are different than expected . in the normal course of business we frequently engage in discussions with third parties relating to possible acquisitions strategic investments and alliances joint ventures and divestitures and generally expect to complete several transactions per year . in addition we may decide to exit a particular business within our product portfolio . as a result of such transactions our financial results may differ from our own or the investment community expectations in a given fiscal quarter or over the long term . we may have difficulty developing manufacturing and marketing the products of a newly acquired company in a way that enhances the performance of our combined businesses or product lines . acquired businesses may also expose us to new risks and new markets and we may have difficulty addressing these risks in a cost effective and timely manner . transactions such as acquisitions have resulted and may in the future result in unexpected significant costs and expenses . in the future we may be required to record charges to earnings during the period if we determine there is an impairment of goodwill or intangible assets up to the full amount of the value of the assets or in the case of strategic investments and alliances consolidate results including losses of third parties or write down investment values or loans and convertible notes related to the strategic investment . integrating the operations of acquired businesses within agilent could be a difficult costly and process that involves a number of risks . acquisitions and strategic investments and alliances may require us to integrate and collaborate with a different company culture management team business model business infrastructure and sales and distribution and assimilate and retain geographically dispersed decentralized operations and personnel . depending on the size and complexity of an acquisition our successful integration of the entity depends on a variety of factors including introducing new products and meeting revenue targets as expected the retention of key employees and key customers increased exposure to certain governmental regulations and compliance requirements and increased costs and use of resources . further the integration of acquired businesses is likely to result in our systems and internal controls becoming increasingly complex and more difficult to manage . any difficulties in the assimilation of acquired businesses into our control system could harm our operating results or cause us to fail to meet our financial reporting obligations . even if we are able to successfully integrate acquired businesses within agilent we may not be able to realize the revenue and other synergies and growth that we anticipated from the acquisition in the time frame that we expected and the costs of achieving these benefits may be higher than what we expected . as a result the acquisition and integration of acquired businesses may not contribute to our earnings as expected we may not achieve our operating margin targets when expected or at all and we may not achieve the other anticipated strategic and financial benefits of such transactions . a successful divestiture depends on various factors including our ability to effectively transfer liabilities contracts facilities and employees to the purchaser identify and separate the intellectual property to be divested from the intellectual property that we wish to keep and reduce fixed costs previously associated with the divested assets or business . in addition if customers of the divested business do not receive the same level of service from the new owners this may adversely affect our other businesses to the extent that these customers also purchase other agilent products . in exiting a business we may still retain liabilities associated with the support and warranty of those businesses and other indemnification obligations . all of these efforts require varying levels of management resources which may divert our attention from other business operations . if we do not realize the expected benefits or synergies of such transactions our consolidated financial position results of operations cash flows and stock price could be negatively impacted . if we fail to maintain an effective system of internal controls we may not be able to accurately report our financial results which could lead to a loss of investor confidence in our financial statements and have an adverse effect on our stock price . effective internal controls are necessary for us to provide reliable and accurate financial statements and to effectively prevent fraud . we devote significant resources and time to comply with the internal control over financial reporting requirements of the sarbanes oxley act of date and continue to enhance our controls . however we can not be certain that we will be able to prevent future significant deficiencies or material weaknesses . inadequate internal controls could cause investors to lose confidence in our reported financial information which could have a negative effect on investor confidence in our financial statements the trading price of our stock and our access to capital . our customers and we are subject to various governmental regulations . compliance with or changes in such regulations may cause us to incur significant expenses and if we fail to maintain satisfactory compliance with certain regulations we may be forced to recall products and cease their manufacture and distribution and we could be subject to civil or criminal penalties . our customers and we are subject to various significant international federal state and local regulations including but not limited to regulations in the areas of health and safety packaging product content employment labor and immigration controls trade restrictions and . in addition as a global organization we are subject to data privacy and security laws regulations and controls in numerous jurisdictions as a result of having access to and processing confidential personal sensitive patient health data in the course of our business . the eu general data protection regulation gdpr which became effective in may date applies to all of our activities related to products and services that we offer to eu customers and workers . the gdpr established new requirements regarding the handling of personal data and includes significant penalties for including possible fines of up to number percent of total company revenue . other governmental authorities around the world are considering similar types of legislative and regulatory proposals concerning data protection . each of these privacy security and data protection laws and regulations could impose significant limitations and increase our cost of providing our products and services where we process end user personal data and could harm our results of operations and expose us to significant fines penalties and other damages . we must also comply with complex foreign and laws and regulations such as the foreign corrupt practices act the bribery act and other local laws prohibiting corrupt payments to governmental officials regulations and sanctions imposed by the office of foreign assets control and other similar laws and regulations . violations of these laws and regulations could result in fines and penalties criminal sanctions restrictions on our business conduct and on our ability to offer our products in one or more countries and could also materially affect our brand our ability to attract and retain employees our international operations our business and our operating results . although we have implemented policies and procedures designed to ensure compliance with these laws and regulations there can be no assurance that our employees contractors or agents will not violate our policies . these regulations are complex change frequently and have tended to become more stringent over time . we may be required to incur significant expenses to comply with these regulations or to remedy any violations of these regulations . any failure by us to comply with applicable government regulations could also result in the cessation of our operations or portions of our operations product recalls or impositions of fines and restrictions on our ability to carry on or expand our operations . in addition because many of our products are regulated or sold into regulated industries we must comply with additional regulations in marketing our products . we develop configure and market our products to meet customer needs created by these regulations . any significant change in these regulations could reduce demand for our products force us to modify our products to comply with new regulations or increase our costs of producing these products . if demand for our products is adversely affected or our costs increase our operating results and business would suffer . our products and operations are also often subject to the rules of industrial standards bodies like the international standards organization as well as regulation by other agencies such as the fda . we also must comply with work safety rules . if we fail to adequately address any of these regulations our businesses could be harmed . we are subject to extensive regulation by the fda and certain similar foreign regulatory agencies and failure to comply with such regulations could harm our reputation business financial condition and results of operations . a number of our products are subject to regulation by the fda and certain similar foreign regulatory agencies . in addition a number of our products may in the future be subject to regulation by the fda and certain similar foreign regulatory agencies . these regulations govern a wide variety of activities from quality management design and development to labeling manufacturing promotion sales and distribution . if we or any of our suppliers or distributors fail to comply with fda and other applicable regulatory requirements or are perceived to potentially have failed to comply we may face among other things warning letters ; adverse publicity affecting both us and our customers ; investigations or notices of fines injunctions and civil penalties ; import or export restrictions ; partial suspensions or total shutdown of production facilities or the imposition of operating restrictions ; increased difficulty in obtaining required fda clearances or approvals or foreign equivalents ; seizures or recalls of our products or those of our customers ; or the inability to sell our products . any such fda or other regulatory agency actions could disrupt our business and operations lead to significant remedial costs and have a material adverse impact on our financial position and results of operations . some of our products are subject to particularly complex regulations such as regulations of toxic substances and failure to comply with such regulations could harm our business . some of our products and related consumables are used in conjunction with chemicals whose manufacture processing distribution and notification requirements are regulated by the environmental protection agency epa under the toxic substances control act and by regulatory bodies in other countries under similar laws . the toxic substances control act regulations govern among other things the testing manufacture processing and distribution of chemicals the testing of regulated chemicals for their effects on human health and safety and the import and export of chemicals . the toxic substances control act prohibits persons from manufacturing any chemical in the united states that has not been reviewed by the epa for its effect on health and safety and placed on an epa inventory of chemical substances . we must ensure conformance of the manufacturing processing distribution of and notification about these chemicals to these laws and adapt to regulatory requirements in all applicable countries as these requirements change . if we fail to comply with the notification and other requirements in the manufacture or distribution of our products then we could be subject to civil penalties criminal prosecution and in some cases prohibition from distributing or marketing our products until the products or component substances are brought into compliance . our business may suffer if we fail to comply with government contracting laws and regulations . we derive a portion of our revenue from direct and indirect sales to state local and foreign governments and their respective agencies . such contracts are subject to various procurement laws and regulations and contract provisions relating to their formation administration and performance . failure to comply with these laws regulations or provisions in our government contracts could result in the imposition of various civil and criminal penalties termination of contracts forfeiture of profits suspension of payments or suspension from future government contracting . if our government contracts are terminated if we are suspended from government work or if our ability to compete for new contracts is adversely affected our business could suffer . our reputation ability to do business and financial statements may be harmed by improper conduct by any of our employees agents or business partners . we can not provide assurance that our internal controls and compliance systems will always protect us from acts committed by employees agents or business partners of ours or of businesses we acquire or partner with that would violate laws including the laws governing payments to government officials bribery fraud kickbacks and false claims pricing sales and marketing practices conflicts of interest competition export and import compliance money laundering and data privacy . in particular the foreign corrupt practices act the bribery act and similar laws in other jurisdictions generally prohibit companies and their intermediaries from making improper payments to government officials for the purpose of obtaining or retaining business and we operate in many parts of the world that have experienced governmental corruption to some degree . any such improper actions or allegations of such acts could damage our reputation and subject us to civil or criminal investigations in the united states and in other jurisdictions and related shareholder lawsuits could lead to substantial civil and criminal monetary and penalties and could cause us to incur significant legal and investigatory fees . in addition the government may seek to hold us liable as a successor for violations committed by companies in which we invest or that we acquire . we also rely on our suppliers to adhere to our supplier standards of conduct and material violations of such standards of conduct could occur that could have a material effect on our business reputation and financial statements . our retirement and post retirement pension plans are subject to financial market risks that could adversely affect our future results of operations and cash flows . we have significant retirement and post retirement pension plan assets and obligations . the performance of the financial markets and interest rates impact our plan expenses and funding obligations . significant decreases in market interest rates decreases in the fair value of plan assets and investment losses on plan assets will increase our funding obligations and adversely impact our results of operations and cash flows . the impact of consolidation and acquisitions of competitors is difficult to predict and may harm our business . the life sciences industry is intensely competitive and has been subject to increasing consolidation . consolidation in our industries could result in existing competitors increasing their market share through business combinations and result in stronger competitors which could have a material adverse effect on our business financial condition and results of operations . we may not be able to compete successfully in increasingly consolidated industries and can not predict with certainty how industry consolidation will affect our competitors or us . if we are unable to successfully manage the consolidation and streamlining of our manufacturing operations we may not achieve desired efficiencies and our ability to deliver products to our customers could be disrupted . although we utilize manufacturing facilities throughout the world we have been consolidating and may continue to consolidate our manufacturing operations to certain of our plants to achieve efficiencies and gross margin improvements . additionally we typically consolidate the production of products from our acquisitions into our supply chain and manufacturing processes which are technically complex and require expertise to operate . if we are unable to establish processes to efficiently and effectively produce high quality products in the consolidated locations we may not achieve the anticipated synergies and production may be disrupted which could adversely affect our business and operating results . our operating results may suffer if our manufacturing capacity does not match the demand for our products . because we can not immediately adapt our production capacity and related cost structures to rapidly changing market conditions when demand does not meet our expectations our manufacturing capacity may exceed our production requirements . if during an economic downturn we had excess manufacturing capacity then our fixed costs associated with excess manufacturing capacity would adversely affect our gross margins and operating results . if during a general market upturn or an upturn in one of our segments we can not increase our manufacturing capacity to meet product demand we may not be able to fulfill orders in a timely manner which could lead to order cancellations contract breaches or indemnification obligations . this inability could materially and adversely limit our ability to improve our results . dependence on contract manufacturing and outsourcing other portions of our supply chain including logistics and package delivery services may adversely affect our ability to bring products to market and damage our reputation . dependence on outsourced information technology and other administrative functions may impair our ability to operate effectively . as part of our efforts to streamline operations and to manage costs we outsource aspects of our manufacturing processes and other functions and continue to evaluate additional outsourcing . if our contract manufacturers or other outsourcers fail to perform their obligations in a timely manner or at satisfactory quality levels our ability to bring products to market and our reputation could suffer . for example during a market upturn our contract manufacturers may be unable to meet our demand requirements which may preclude us from fulfilling our customers orders on a timely basis . the ability of these manufacturers to perform is largely outside of our control . if one or more of the package delivery providers experiences a significant disruption in services or institutes a significant price increase we may have to seek alternative providers our costs could increase and the delivery of our products could be prevented or delayed . additionally changing or replacing our contract manufacturers logistics providers or other outsourcers could cause disruptions or delays . in addition we outsource significant portions of our information technology it and other administrative functions . since it is critical to our operations any failure to perform on the part of our it providers could impair our ability to operate effectively . in addition to the risks outlined above problems with manufacturing or it outsourcing could result in lower revenue and unexecuted efficiencies and impact our results of operations and our stock price . environmental contamination from past and ongoing operations could subject us to substantial liabilities . certain properties we have previously owned or leased are undergoing remediation for subsurface contamination . although we are indemnified for liability relating to the required remediation at some of those properties we may be subject to liability if these indemnification obligations are not fulfilled . in other cases we have agreed to indemnify the current owners of certain properties for liabilities related to contamination including companies with which we have previously been affiliated such as hp enterprise formerly company and varian medical systems further other properties we have previously owned or leased at which we have operated in the past or for which we have otherwise contractually assumed or provided indemnities for certain actual or contingent environmental liabilities may or do require remediation . while we are not aware of any material liabilities associated with any potential environmental contamination at any of those properties or facilities we may be exposed to material liability if environmental contamination at material levels is found to exist . in addition in connection with the acquisition of certain companies we have assumed other costs and potential or contingent liabilities for environmental matters . any significant costs or liabilities could have an adverse effect on results of operations . our current and historical manufacturing processes and operations involve or have involved the use of certain substances regulated under various foreign federal state and local environment protection and health and safety laws and regulations . as a result we may become subject to liabilities for environmental contamination and these liabilities may be substantial . although our policy is to apply strict standards for environmental protection and health and safety at our sites inside and outside the united states we may not be aware of all conditions that could subject us to liability . further in the event that any future change legislation would require that standards be imposed by domestic or international environmental regulatory authorities we may be required to make certain changes and to our manufacturing processes . failure to comply with these environmental protection and health and safety laws and regulations could result in civil criminal regulatory administrative or contractual sanction including fines penalties or suspensions . if we have any violations of or incur liabilities pursuant to these laws or regulations our financial condition and operating results could be adversely affected . third parties may claim that we are infringing their intellectual property and we could suffer significant litigation or licensing expenses or be prevented from selling products or services . from time to time third parties may claim that one or more of our products or services infringe their intellectual property rights . we analyze and take action in response to such claims on a case by case basis . any dispute or litigation regarding patents or other intellectual property could be costly and due to the complexity of our technology and the uncertainty of intellectual property litigation and could divert our management and key personnel from our business operations . a claim of intellectual property infringement could force us to enter into a costly or restrictive license agreement which might not be available under acceptable terms or at all could require us to redesign our products which would be costly and could subject us to significant damages or to an injunction against the development and sale of certain of our products or services . our intellectual property portfolio may not be useful in asserting a counterclaim or negotiating a license in response to a claim of intellectual property infringement . in certain of our businesses we rely on third party intellectual property licenses and we can not ensure that these licenses will continue to be available to us in the future or can be expanded to cover new products on favorable terms or at all . third parties may infringe our intellectual property and we may suffer competitive injury or expend significant resources enforcing our rights . our success depends in large part on our proprietary technology including technology we obtained through acquisitions . we rely on various intellectual property rights including patents copyrights trademarks and trade secrets as well as confidentiality provisions and licensing arrangements to establish our proprietary rights . if we do not enforce our intellectual property rights successfully our competitive position may suffer which could harm our operating results . our pending patent copyright and trademark registration applications may not be allowed or competitors may challenge the validity or scope of our patents copyrights or trademarks . in addition our patents copyrights trademarks and other intellectual property rights may not provide us with a significant competitive advantage . we may need to spend significant resources monitoring and enforcing our intellectual property rights and we may not be aware of or able to detect or prove infringement by third parties . our competitive position may be harmed if we can not detect infringement and enforce our intellectual property rights quickly or at all . in some circumstances we may choose to not pursue enforcement because an infringer has a dominant intellectual property position or for other business reasons . in addition competitors might avoid infringement by designing around our intellectual property rights or by developing competing technologies . intellectual property rights and our ability to enforce them may be unavailable or limited in some countries which could make it easier for competitors to capture market share and could result in lost revenues . furthermore some of our intellectual property is licensed to others which may allow them to compete with us using that intellectual property . changes in tax laws unfavorable resolution of tax examinations or exposure to additional tax liabilities could have a material adverse effect on our results of operations financial condition and liquidity . we are subject to taxes in the singapore and various foreign jurisdictions . governments in the jurisdictions in which we operate implement changes to tax laws and regulations periodically . any implementation of tax laws that fundamentally change the taxation of corporations in the or singapore could materially impact our effective tax rate and could have a significant adverse impact on our financial results . the tax act significantly changed the taxation of based multinational corporations . our compliance with the tax act requires the use of estimates in our financial statements and exercise of significant judgment in accounting for its provisions . the implementation of the tax act requires interpretations and implementing regulations by the internal revenue service irs as well as state tax authorities . the legislation could be subject to potential amendments and technical corrections any of which could materially lessen or increase certain adverse impacts of the legislation . as regulations and guidance evolve with respect to the tax act and as we gather information and perform more analysis our results may differ from previous estimates and may materially affect our financial position . we are also subject to examinations of our tax returns by tax authorities in various jurisdictions around the world . we regularly assess the likelihood of adverse outcomes resulting from ongoing tax examinations to determine the adequacy of our provision for taxes . these assessments can require a high degree of judgment and estimation . intercompany transactions associated with the sale of inventory services intellectual property and cost share arrangements are complex and affect our tax liabilities . the calculation of our tax liabilities involves dealing with uncertainties in the application of complex tax laws and regulations in multiple jurisdictions . there can be no assurance that the outcomes from ongoing tax examinations will not have an adverse effect on our operating results and financial condition . a difference in the ultimate resolution of tax uncertainties from what is currently estimated could have an adverse effect on our financial results and condition . if tax incentives change or cease to be in effect our income taxes could increase significantly . we benefit from tax incentives extended to our foreign subsidiaries to encourage investment or employment . several jurisdictions have granted us tax incentives which require renewal at various times in the future . the incentives are conditioned on achieving various thresholds of investments and employment or specific types of income . our taxes could increase if the incentives are not renewed upon expiration . if we can not or do not wish to satisfy all or parts of the tax incentive conditions we may lose the related tax incentive and could be required to refund tax incentives previously realized . as a result our effective tax rate could be higher than it would have been had we maintained the benefits of the tax incentives . we have outstanding debt and may incur other debt in the future which could adversely affect our financial condition liquidity and results of operations . on march number date agilent entered into a credit agreement with a group of financial institutions which provides for a number billion unsecured credit facility that will expire on march number the credit facility replaces the existing credit facility which was terminated on the closing date of the new facility . as of april number date the company had no borrowings outstanding under the credit facility . we also currently have outstanding an aggregate principal amount of number billion in senior unsecured notes . we may borrow additional amounts in the future and use the proceeds from any future borrowing for general corporate purposes future acquisitions expansion of our business or repurchases of our outstanding shares of common stock . our incurrence of this debt and increases in our aggregate levels of debt may adversely affect our operating results and financial condition by among other things : increasing our vulnerability to downturns in our business to competitive pressures and to adverse economic and industry conditions ; requiring the dedication of an increased portion of our expected cash flows from operations to service our indebtedness thereby reducing the amount of expected cash flows available for other purposes including capital expenditures acquisitions stock repurchases and dividends ; and limiting our flexibility in planning for or reacting to changes in our business and our industry . our credit facility imposes restrictions on us including restrictions on our ability to create liens on our assets and engage in certain types of sale and leaseback transactions and the ability of our subsidiaries to incur indebtedness and requires us to maintain compliance with specified financial ratios . our ability to comply with these ratios may be affected by events beyond our control . in addition the indenture governing our senior notes contains covenants that may adversely affect our ability to incur certain liens or engage in certain types of sale and leaseback transactions . if we breach any of the covenants and do not obtain a waiver from the lenders or then subject to applicable cure periods our outstanding indebtedness could be declared immediately due and payable . if we suffer a loss to our factories facilities or distribution system due to catastrophe our operations could be seriously harmed . our factories facilities and distribution system are subject to catastrophic loss due to fire flood terrorism increasing or of events or other natural or disasters . in particular several of our facilities could be subject to a catastrophic loss caused by earthquake due to their locations . our production facilities headquarters and laboratories in california and our production facilities in japan are all located in areas with seismic activity . if any of our facilities were to experience a catastrophic loss it could disrupt our operations delay production shipments and revenue and result in large expenses to repair or replace the facility . if such a disruption were to occur we could breach agreements our reputation could be harmed and our business and operating results could be adversely affected . in addition because we have consolidated our manufacturing facilities and we may not have redundant manufacturing capability readily available we are more likely to experience an interruption to our operations in the event of a catastrophe in any one location . although we carry insurance for property damage and business interruption we do not carry insurance or financial reserves for interruptions or potential losses arising from earthquakes or terrorism . also our third party insurance coverage will vary from time to time in both type and amount depending on availability cost and our decisions with respect to risk retention . economic conditions and uncertainties in global markets may adversely affect the cost and other terms upon which we are able to obtain third party insurance . if our third party insurance coverage is adversely affected or to the extent we have elected to we may be at a greater risk that our financial condition will be harmed by a catastrophic loss . if we experience a significant disruption in or breach in security of our information technology systems or if we fail to implement new systems and software successfully our business could be adversely affected . we rely on several centralized information technology systems throughout our company to provide products and services keep financial records process orders manage inventory process shipments to customers and operate other critical functions . our information technology systems may be susceptible to damage disruptions or shutdowns due to power outages hardware failures computer viruses attacks by computer hackers telecommunication failures user errors catastrophes or other unforeseen events . our information technology systems also may experience interruptions delays or cessations of service or produce errors in connection with system integration software upgrades or system migration work that takes place from time to time . if we were to experience a prolonged system disruption in the information technology systems that involve our interactions with customers or suppliers it could result in the loss of sales and customers and significant incremental costs which could adversely affect our business . in addition security breaches of our information technology systems could result in the misappropriation or unauthorized disclosure of confidential information belonging to us or to our employees partners customers or suppliers which could result in our suffering significant financial or reputational damage . adverse conditions in the global banking industry and credit markets may adversely impact the value of our cash investments or impair our liquidity . as of april number date we had cash and cash equivalents of approximately number billion invested or held in a mix of money market funds time deposit accounts and bank demand deposit accounts . disruptions in the financial markets may in some cases result in an inability to access assets such as money market funds that traditionally have been viewed as highly liquid . any failure of our counterparty financial institutions or funds in which we have invested may adversely impact our cash and cash equivalent positions and in turn our operating results and financial condition . regulations related to conflict minerals may cause us to incur additional expenses and could limit the supply and increase the cost of certain metals used in manufacturing our products . we are subject to the rules of the sec which require disclosures by public companies of specified minerals known as conflict minerals that are necessary to the functionality or production of products manufactured or contracted to be manufactured . the rule which requires an annual disclosure report to be filed with the sec by may of each year requires companies to perform due diligence disclose and report whether or not such minerals originate from the democratic republic of congo or an adjoining country . our ongoing implementation of these rules could affect sourcing at competitive prices and availability in sufficient quantities of certain minerals used in the manufacture of our products including tin tantalum gold and tungsten . the number of suppliers who provide minerals may be limited . in addition there may be material costs associated with complying with the disclosure requirements such as costs related to the due diligence process of determining the source of certain minerals used in our products as well as costs of possible changes to products processes or sources of supply as a consequence of such verification activities . as our supply chain is complex and we use contract manufacturers for some of our products we may not be able to sufficiently verify the origins of the relevant minerals used in our products through the due diligence procedures that we implement which may harm our reputation . we may also encounter challenges to satisfy those customers who require that all of the components of our products be certified as which could place us at a competitive disadvantage if we are unable to do so . we could incur significant liabilities if the distribution of keysight common stock to our shareholders is determined to be a taxable transaction . we have received an opinion from outside tax counsel to the effect that the separation and distribution of keysight qualifies as a transaction that is described in sections number a and number a number d of the internal revenue code . the opinion relies on certain facts assumptions representations and undertakings from keysight and us regarding the past and future conduct of the companies respective businesses and other matters . if any of these facts assumptions representations or undertakings are incorrect or not satisfied our shareholders and we may not be able to rely on the opinion of tax counsel and could be subject to significant tax liabilities . notwithstanding the opinion of tax counsel we received the irs could determine on audit that the separation is taxable if it determines that any of these facts assumptions representations or undertakings are not correct or have been violated or if it disagrees with the conclusions in the opinion . if the separation is determined to be taxable for federal income tax purposes our shareholders that are subject to federal income tax and we could incur significant federal income tax liabilities . we can not assure that we will continue to pay dividends on our common stock . since the first quarter of fiscal year date we have paid a quarterly dividend on our common stock . the timing declaration amount and payment of any future dividends fall within the discretion of our board of directors and will depend on many factors including our available cash estimated cash needs earnings financial condition operating results capital requirements as well as limitations in our contractual agreements applicable law regulatory constraints industry practice and other business considerations that our board of directors considers relevant . a change in our dividend program could have an adverse effect on the market price of our common stock . : number :