Income from operations reflect the results of our reportable segments under Keysight's management reporting system which are not necessarily in conformity with GAAP financial measures. Income from operations of our reporting segments exclude, among other things, charges related to the amortization of intangibles, the impact of restructuring charges, transformational initiatives, acquisition and integration costs and separation costs.

In general, recorded orders represent firm purchase commitments from our customers with established terms and conditions for products and services that will be delivered within six months.

Readers are reminded that non-GAAP numbers are merely a supplement to, and not a replacement for, GAAP financial measures. They should be read in conjunction with the GAAP financial measures. It should be noted as well that our non-GAAP information may be different from the non-GAAP information provided by other companies.

The preliminary segment information is estimated based on our current information.

Page 5

KEYSIGHT TECHNOLOGIES, INC.
RECONCILIATION OF ROIC
(In millions)
(Unaudited)
PRELIMINARY
			KEYSIGHT				KEYSIGHT				KEYSIGHT
Numerator:			Q1'15				Q1'14				Q4'14
Non-GAAP income from operations			$	120			$	118			$	168
Less:
Taxes and Other (income)/expense				15				19				23
Quarterly return (a)				105				99				145
Quarter return annualized			$	420			$	396			$	580
Denominator:
Segment assets (b)			$	1,805			$	1,929			$	1,976
Less:
Net current liabilities (c)				462				508				498
Invested capital			$	1,343			$	1,421			$	1,478
Average invested capital			$	1,411			$	1,441			$	1,469
ROIC				30	%			28	%			39	%

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