Agilent Corporate Citizenship Report 2013

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DISCLOSURE ON MANAGEMENT APPROACH EC

Agilent is a technology leader in communications, electronics, life sciences, and chemical analysis. With four primary business segments—Life Sciences, Chemical Analysis, Diagnostics and Genomics, and Electronic Measurement—we have 20,600 employees and serve customers in more than 100 countries. Agilent had revenue of $6.8 billion in fiscal year 2013. The company's stock trades on the New York Stock Exchange under the ticker symbol “A.” During fiscal 2013, we issued four quarterly dividends, one of $0.10 per share and three of $0.12 per share. All decisions regarding the declaration and payment of dividends are at the discretion of our Board of Directors and will be evaluated regularly in light of our financial condition, earnings, growth prospects, funding requirements, applicable law, and any other factors that our Board deems relevant.

The company's financials are reported publically on its external website at Agilent Investor Information.

Agilent sells its products worldwide and is subject to risks associated with doing business internationally. We expect that revenue from international operations will continue to represent a large percentage of our total business. In addition, many employees, contract manufacturers, suppliers, job functions, and manufacturing facilities are increasingly located outside the U.S. Agilent articulates a variety of risk factors in its regular 10-K and 10-Q filings with the U.S. Securities and Exchange Commission. For more information, go to Agilent Investor Relations..

Agilent recognizes ISO 26000 as a reference document that provides guidance on social responsibility. Agilent aligns with ISO 26000 standards as part of our social responsibility practices. As such, Agilent's economic-related practices and processes align with ISO core subjects: Organizational Governance 6.2 and Fair Operating Practices 6.6 and Community Involvement and Development 6.8

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DIRECT ECONOMIC VALUE GENERATED AND DISTRIBUTED, INCLUDING REVENUES, OPERATING COSTS, EMPLOYEE COMPENSATION, DONATIONS AND OTHER COMMUNITY INVESTMENTS, RETAINED EARNINGS, AND PAYMENTS TO CAPITAL PROVIDERS AND GOVERNMENTS

In Agilent's fiscal 2013, annual revenues of $6.8 billion represented a decrease of 1 percent over fiscal 2012. In June 2012, we acquired Dako A/S, a limited liability company incorporated under the laws of Denmark. Dako provides antibodies, reagents, scientific instruments and software primarily to customers in pathology laboratories and on September 19, 2013, Agilent announced plans to separate into two publicly traded companies, one comprising of the life sciences, diagnostics and chemical analysis businesses that will retain the Agilent name, the other company, Keysight Technologies, will be comprised of the electronic measurement business (“EM”). The separation is expected to be completed early in November 2014.

In addition to the announcement to separate into two companies, we formed a new operating segment in the fourth fiscal quarter of 2013. The new life sciences and diagnostics segment was formed by the combination of the life sciences business plus the diagnostics and genomics business. Following this reorganization, Agilent has three business segments comprised of the life sciences and diagnostics business, the chemical analysis business and the electronic measurement business.

For more information, go to the Agilent 2013 Annual Report.

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FINANCIAL IMPLICATIONS AND OTHER RISKS AND OPPORTUNITIES FOR THE ORGANIZATION'S ACTIVITIES DUE TO CLIMATE CHANGE

Agilent had no financial implications or other risks and opportunities due to climate change.

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COVERAGE OF THE ORGANIZATION'S DEFINED BENEFIT PLAN OBLIGATIONS
Refer to Agilent's 2013 Annual Report: Agilent 2013 Annual Report.

Agilent's defined benefit plans are fully funded at or above required levels:

  • We contributed $30 million, $30 million and $33 million to our U.S. defined benefit plans in 2013, 2012, and 2011, respectively.
  • We contributed $89 million, $54 million and $59 million to our non-U.S. defined benefit plans in 2013, 2012, and 2011, respectively.We contributed $1 million to our U.S. post-retirement benefit plans in 2013 and did not contribute to our US post-retirement benefits plans in 2012 or 2011.
  • Our non-U.S. defined benefit plans are generally funded ratably throughout the year.
  • Total contributions in 2013 were $120 million, or 43 percent more than 2012.
  • Total contributions in 2012 were $84 million, or 9 percent less than in 2011.

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 $101 million to our U.S. and non-U.S. defined benefit plans and $2 million to our U.S. postretirement benefit plans during 2014.

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SIGNIFICANT FINANCIAL ASSISTANCE RECEIVED FROM GOVERNMENT

Agilent received no financial assistance from any government agency in fiscal 2013.

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RANGE OF RATIOS OF STANDARD ENTRY-LEVEL WAGE BY GENDER COMPARED TO LOCAL MINIMUM WAGE AT SIGNIFICANT LOCATIONS OF OPERATION

Agilent provides competitive levels of compensation above minimum wage requirements.

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POLICY, PRACTICES, AND PROPORTION OF SPENDING ON LOCALLY-BASED SUPPLIERS AT SIGNIFICANT LOCATIONS OF OPERATION

Diversity and inclusion are Agilent's core values and as such extend down through our supply chain. Agilent has a proactive Supplier Diversity program which focuses on the procurement of materials, components, equipment, supplies, and services from Small Diverse Businesses. We use a specific methodology when sourcing suppliers that includes the evaluation and inclusion of small diversified suppliers with in our supply chain.

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PROCEDURES FOR LOCAL HIRING AND PROPORTION OF SENIOR MANAGEMENT HIRED FROM THE LOCAL COMMUNITY AT SIGNIFICANT LOCATIONS OF OPERATION

Hiring top talent around the globe helps ensure that Agilent maintains its leadership position. To attract and retain talent, Agilent provides everything from forwardthinking workplace design to community involvement to total compensation packages that rank with the leaders in the high-technology and life science industries. We understand the value—to our business, our employees, and our communities—of an inclusive environment that respects and celebrates unique perspectives and life experiences. Our policies and strategies create a pipeline of diverse skills and viewpoints, ensuring that our rich cultural diversity is leveraged for our competitive advantage. Agilent actively recruits top talent from underrepresented groups around the world, and works to build an inclusive environment that develops and retains employees.

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DEVELOPMENT AND IMPACT OF INFRASTRUCTURE INVESTMENTS AND SERVICES PROVIDED PRIMARILY FOR PUBLIC BENEFIT THROUGH COMMERCIAL, IN-KIND, OR PRO BONO ENGAGEMENT

In fiscal 2013, through our businesses, employee programs, and foundation, our philanthropic efforts totaled over $17 million.

Agilent and the Agilent Technologies Foundation's philanthropic investments in university research totaled $6,691,912.

Agilent donated approximately $7,179,277 in equipment to universities.

Agilent and the Agilent Technologies Foundation invested $1,289,426 in science education, reaching approximately 600,000 students and 6,000 teachers worldwide.

Approximately 25 percent of Agilent employees around the world volunteered approximately 50,000 hours in our communities.

For more information about Agilent Technologies Foundation's giving, see the 2013 Audited Financial Statements.

Because of our longstanding commitment to our communities, we have a wide range of programs that provide feedback on community needs, and therefore we do not conduct a community assessment.

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UNDERSTANDING AND DESCRIBING SIGNIFICANT INDIRECT ECONOMIC IMPACTS, INCLUDING THE EXTENT OF IMPACTS

Agilent Technologies is committed to conducting business in an ethical, socially responsible, and environmentally sustainable manner. Our citizenship objective is to be an economic, intellectual, and social asset to each nation and community in which we operate. As part of our Corporate Social Responsibility mandate, we are focused primarily on science education in communities where Agilent has a presence.

At a global level, we partner with United Way, which identifies local CSR projects, conducts due diligence, and supports the implementation of the initiative on an ongoing basis. Apart from this, there are several independent programs across countries that are supported by the Agilent Technologies Foundation.

For more information, go to Community Relations.


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