Agilent 8K/A Other Events | A 21 Dec 15



AGILENT TECHNOLOGIES, INC.
RECONCILIATION FROM GAAP TO NON-GAAP

THREE MONTHS ENDED JANUARY 31, 2014
(Unaudited)
							NON-GAAP ADJUSTMENTS

(in millions, except per share amounts)				GAAP (As Revised)			Restructuring & Other Related Costs			Intangible Amortization			Transformational Initiatives			Acquisition & Integrations Costs			Pre-Separation Costs			Unallocated Corporate Costs			Other			Adjustment for taxes			Non-GAAP

Net Revenue	Change Year Over Year	5%		$	1,008		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	1,008		5%	Change Year Over Year

Costs and expenses:
Cost of products and services	Gross Margin	50.6%		498			1			(31		)	(3		)	(1		)	—			—			(1		)	—			463			54.1%	Gross Margin
Research and development	As a % of Revenue	8.7%		88			—			—			—			(1		)	(1		)	—			—			—			86			8.5%	As a % of Revenue
Selling, general and administrative	As a % of Revenue	29.6%		298			1			(18		)	—			(4		)	(1		)	(10		)	—			—			266			26.4%	As a % of Revenue
Total costs and expenses				884			2			(49		)	(3		)	(6		)	(2		)	(10		)	(1		)	—			815

Income from operations	Operating Margin	12.3%		124			(2		)	49			3			6			2			10			1			—			193			19.2%	Operating Margin

Other income(expense), net				(27		)	—			—			—			—			—			—			—			—			(27		)

Income (loss) from continuing operations before taxes				97			(2		)	49			3			6			2			10			1			—			166

Provision (benefit) for income taxes	Tax Rate	(27	)%	(26		)	—			—			—			—			—			—			—			52			26			16%	Tax Rate

Income (loss) from continuing operations	Net Margin	12.2	%	$	123		$	(2	)	$	49		$	3		$	6		$	2		$	10		$	1		$	(52	)	$	140		13.9%	Net Margin

Income (loss) from continuing operations per share - Basic and Diluted:
Basic				$	0.37		$	(0.01	)	$	0.14		$	0.01		$	0.02		$	0.01		$	0.03		$	—		$	(0.15	)	$	0.42
Diluted				$	0.36		$	(0.01	)	$	0.14		$	0.01		$	0.02		$	0.01		$	0.03		$	—		$	(0.15	)	$	0.41

Weighted average shares used in computing net income (loss) per share:
Basic				333			333			333			333			333			333			333			333			333			333
Diluted				338			338			338			338			338			338			338			338			338			338

The reconciliation from GAAP to Non-GAAP income from continuing operations is based on our current information.



AGILENT TECHNOLOGIES, INC.
RECONCILIATION FROM GAAP TO NON-GAAP

THREE MONTHS ENDED APRIL 30, 2014
(Unaudited)
							NON-GAAP ADJUSTMENTS

(in millions, except per share amounts)				GAAP (As Revised)			Intangible Amortization			Transformational Initiatives			Acquisition & Integration Costs			Pre-Separation Costs			Unallocated Corporate Costs			Other			Adjustment for Taxes			Non-GAAP

Net Revenue	Change Year Over Year	2	%	$	988		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	988		2	%	Change Year Over Year

Costs and expenses:
Cost of products and services	Gross Margin	49.1	%	503			(32		)	(5		)	—			(1		)	1			—			—			466			52.9	%	Gross Margin
Research and development	As a % of Revenue	8.8	%	87			—			(1		)	—			—			(1		)	—			—			85			8.6	%	As a % of Revenue
Selling, general and administrative	As a % of Revenue	30.8	%	304			(17		)	(2		)	(2		)	(1		)	(10		)	(2		)	—			270			27.3	%	As a % of Revenue
Total costs and expenses				894			(49		)	(8		)	(2		)	(2		)	(10		)	(2		)	—			821

Income from operations	Operating Margin	9.5	%	94			49			8			2			2			10			2			—			167			16.9	%	Operating Margin

Other income(expense), net				(25		)	—			—			—			—			—			—			—			(25		)

Income from continuing operations before taxes				69			49			8			2			2			10			2			—			142

Provision for income taxes	Tax Rate	23	%	16			—			—			—			—			—			—			7			23			16	%	Tax Rate

Income (loss) from continuing operations	Net Margin	5.4	%	$	53		$	49		$	8		$	2		$	2		$	10		$	2		$	(7	)	$	119		12.0	%	Net Margin

Income (loss) from continuing operations per share - Basic and Diluted:
Basic				$	0.16		$	0.14		$	0.02		$	0.01		$	0.01		$	0.03		$	0.01		$	(0.02	)	$	0.36
Diluted				$	0.16		$	0.14		$	0.02		$	0.01		$	0.01		$	0.03		$	0.01		$	(0.03	)	$	0.35

Weighted average shares used in computing net income (loss) per share:
Basic				333			333			333			333			333			333			333			333			333
Diluted				337			337			337			337			337			337			337			337			337

The reconciliation from GAAP to Non-GAAP income from continuing operations is based on our current information.



AGILENT TECHNOLOGIES, INC.
RECONCILIATION FROM GAAP TO NON-GAAP

THREE MONTHS ENDED JULY 31, 2014
(Unaudited)
							NON-GAAP ADJUSTMENTS

(in millions, except per share amounts)				GAAP (As Revised)			Intangible Amortization			Transformational Initiatives			Acquisition & Integration Costs			Pre-Separation Costs			Net Loss on Extinguishment of Debt		Unallocated Corporate Costs			Other			Adjustment for Taxes			Non-GAAP

Net Revenue	Change Year Over Year	6	%	$	1,009		$	—		$	—		$	—		$	—		$	—	$	—		$	—		$	—		$	1,009		6	%	Change Year Over Year

Costs and expenses:
Cost of products and services	Gross Margin	49.8	%	507			(29		)	(5		)	(1		)	(1		)	—		—			—			—			471			53.3	%	Gross Margin
Research and development	As a % of Revenue	8.5	%	86			—			—			(1		)	2			—		—			—			—			87			8.6	%	As a % of Revenue
Selling, general and administrative	As a % of Revenue	28.2	%	285			(17		)	(2		)	—			(5		)	—		(10		)	10			—			261			25.9	%	As a % of Revenue
Total costs and expenses				878			(46		)	(7		)	(2		)	(4		)	—		(10		)	10			—			819

Income from operations	Operating Margin	13	%	131			46			7			2			4			—		10			(10		)	—			190			18.8	%	Operating Margin

Other income(expense), net				(46		)	—			—			—			—			21		2			(3		)	—			(26		)

Income (loss) from continuing operations before taxes				85			46			7			2			4			21		12			(13		)	—			164

Provision (benefit) for income taxes	Tax Rate	36	%	31			—			—			—			—			—		—			—			(4		)	27			16	%	Tax Rate

Income (loss) from continuing operations	Net Margin	5.4	%	$	54		$	46		$	7		$	2		$	4		$	21	$	12		$	(13	)	$	4		$	137		13.6	%	Net Margin

Income (loss) from continuing operations per share - Basic and Diluted:
Basic				$	0.16		$	0.14		$	0.02		$	0.01		$	0.01		$	0.06	$	0.04		$	(0.04	)	$	0.01		$	0.41
Diluted				$	0.16		$	0.14		$	0.02		$	0.01		$	0.01		$	0.06	$	0.04		$	(0.04	)	$	0.01		$	0.41

Weighted average shares used in computing net income (loss) per share:
Basic				334			334			334			334			334			334		334			334			334			334
Diluted				338			338			338			338			338			338		338			338			338			338

The reconciliation from GAAP to Non-GAAP income from continuing operations is based on our current information.



AGILENT TECHNOLOGIES, INC.
RECONCILIATION FROM GAAP TO NON-GAAP

THREE MONTHS ENDED OCTOBER 31, 2014
(Unaudited)
							NON-GAAP ADJUSTMENTS

(in millions, except per share amounts)				GAAP (As Revised)			Asset Impairments & Write-downs			Acceleration of Share-based Compensation Related to Workforce Reduction			Intangible Amortization			Transformational Initiatives			Acquisition & Integration Costs			Pre-Separation Costs			Net Loss on Extinguishment of Debt		Nuclear Magnetic Resonance Business Exit			Unallocated Corporate Costs			Other			Adjustment for Taxes			Non-GAAP

Net Revenue	Change Year Over Year	3	%	$	1,043		$	—		$	—		$	—		$	—		$	—		$	—		$	—	$	—		$	—		$	—		$	—		$	1,043		3	%	Change Year Over Year

Costs and expenses:
Cost of products and services	Gross Margin	45.9	%	564			—			—			(29		)	(6		)	(1		)	1			—		(47		)	(1		)	1			—			482			53.8	%	Gross Margin
Research and development	As a % of Revenue	9.3	%	97			(4		)	—			—			(2		)	(1		)	1			—		(5		)	2			(1		)	—			87			8.3	%	As a % of Revenue
Selling, general and administrative	As a % of Revenue	29.9	%	312			—			(1		)	(16		)	(3		)	1			(8		)	—		(16		)	(11		)	3			—			261			25.0	%	As a % of Revenue
Total costs and expenses				973			(4		)	(1		)	(45		)	(11		)	(1		)	(6		)	—		(68		)	(10		)	3			—			830

Income from operations	Operating Margin	6.7	%	70			4			1			45			11			1			6			—		68			10			(3		)	—			213			20.4	%	Operating Margin

Other income(expense), net				(92		)	—			—			—			—			—			1			68		—			2			—			—			(21		)

Income (loss) from continuing operations before taxes				(22		)	4			1			45			11			1			7			68		68			12			(3		)	—			192

Provision (benefit) for income taxes	Tax Rate	109	%	(24		)	—			—			—			—			—			—			—		—			—			—			55			31			16	%	Tax Rate

Income (loss) from continuing operations	Net Margin	0.2	%	$	2		$	4		$	1		$	45		$	11		$	1		$	7		$	68	$	68		$	12		$	(3	)	$	(55	)	$	161		15.4	%	Net Margin

Income (loss) from continuing operations per share - Basic and Diluted:
Basic				$	0.01		$	0.01		$	—		$	0.13		$	0.03		$	—		$	0.02		$	0.21	$	0.21		$	0.04		$	(0.01	)	$	(0.17	)	$	0.48
Diluted				$	0.01		$	0.01		$	—		$	0.13		$	0.03		$	—		$	0.02		$	0.21	$	0.21		$	0.04		$	(0.01	)	$	(0.17	)	$	0.48

Weighted average shares used in computing net income (loss) per share:
Basic				334			334			334			334			334			334			334			334		334			334			334			334			334
Diluted				338			338			338			338			338			338			338			338		338			338			338			338			338

The reconciliation from GAAP to Non-GAAP income from continuing operations is based on our current information. .



AGILENT TECHNOLOGIES, INC.
RECONCILIATION FROM GAAP TO NON-GAAP

SIX MONTHS ENDED APRIL 30, 2014
(Unaudited)
							NON-GAAP ADJUSTMENTS

(in millions, except per share amounts)				GAAP (As Revised)			Restructuring & Other Related Costs			Intangible Amortization			Transformational Initiatives			Acquisition & Integration Costs			Pre-Separation Costs			Unallocated Corporate Costs			Other			Adjustment for Taxes			Non-GAAP

Net Revenue	Change Year Over Year	3	%	$	1,996		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	1,996		3	%	Change Year Over Year

Costs and expenses:
Cost of products and services	Gross Margin	49.8	%	1,001			1			(63		)	(8		)	(1		)	(1		)	1			(1		)	—			929			53.5	%	Gross Margin
Research and development	As a % of Revenue	8.8	%	175			—			—			(1		)	(1		)	(1		)	(1		)	—			—			171			8.6	%	As a % of Revenue
Selling, general and administrative	As a % of Revenue	30.2	%	602			1			(35		)	(2		)	(6		)	(2		)	(20		)	(2		)	—			536			26.9	%	As a % of Revenue
Total costs and expenses				1,778			2			(98		)	(11		)	(8		)	(4		)	(20		)	(3		)	—			1,636

Income from operations	Operating Margin	10.9	%	218			(2		)	98			11			8			4			20			3			—			360			18.0	%	Operating Margin

Other income(expense), net				(52		)	—			—			—			—			—			—			—			—			(52		)

Income (loss) from continuing operations before taxes				166			(2		)	98			11			8			4			20			3			—			308

Provision (benefit) for income taxes	Tax Rate	(6	)%	(10		)	—			—			—			—			—			—			—			59			49			16	%	Tax Rate

Income (loss) from continuing operations	Net Margin	8.8	%	$	176		$	(2	)	$	98		$	11		$	8		$	4		$	20		$	3		$	(59	)	$	259		13.0	%	Net Margin

Income (loss) from continuing operations per share - Basic and Diluted:
Basic				$	0.53		$	(0.01	)	$	0.30		$	0.03		$	0.02		$	0.01		$	0.06		$	0.01		$	(0.17	)	$	0.78
Diluted				$	0.52		$	(0.01	)	$	0.29		$	0.03		$	0.02		$	0.01		$	0.06		$	0.01		$	(0.16	)	$	0.77

Weighted average shares used in computing net income (loss) per share:
Basic				333			333			333			333			333			333			333			333			333			333
Diluted				338			338			338			338			338			338			338			338			338			338

The reconciliation from GAAP to Non-GAAP income from continuing operations is based on our current information.



AGILENT TECHNOLOGIES, INC.
RECONCILIATION FROM GAAP TO NON-GAAP

NINE MONTHS ENDED JULY 31, 2014
(Unaudited)
							NON-GAAP ADJUSTMENTS

(in millions, except per share amounts)				GAAP (As Revised)			Restructuring & Other Related Costs			Intangible Amortization			Transformational Initiatives			Acquisition & Integration Costs			Pre-Separation Costs			Net Loss on Extinguishment of Debt		Unallocated Corporate Costs			Other			Adjustment for Taxes			Non-GAAP

Net Revenue	Change Year Over Year	4	%	$	3,005		$	—		$	—		$	—		$	—		$	—		$	—	$	—		$	—		$	—		$	3,005		4	%	Change Year Over Year

Costs and expenses:
Cost of products and services	Gross Margin	49.8	%	1,508			1			(92		)	(13		)	(2		)	(2		)	—		1			(1		)	—			1,400			53.4	%	Gross Margin
Research and development	As a % of Revenue	8.7	%	261			—			—			(1		)	(2		)	1			—		(1		)	—			—			258			8.6	%	As a % of Revenue
Selling, general and administrative	As a % of Revenue	29.5	%	887			1			(52		)	(4		)	(6		)	(7		)	—		(30		)	8			—			797			26.5	%	As a % of Revenue
Total costs and expenses				2,656			2			(144		)	(18		)	(10		)	(8		)	—		(30		)	7			—			2,455

Income from operations	Operating Margin	11.6	%	349			(2		)	144			18			10			8			—		30			(7		)	—			550			18.3	%	Operating Margin

Other income(expense), net				(98		)	—			—			—			—			—			21		2			(3		)	—			(78		)

Income (loss) from continuing operations before taxes				251			(2		)	144			18			10			8			21		32			(10		)	—			472

Provision for income taxes	Tax Rate	8	%	21			—			—			—			—			—			—		—			—			55			76			16	%	Tax Rate

Income (loss) from continuing operations	Net Margin	7.7	%	$	230		$	(2	)	$	144		$	18		$	10		$	8		$	21	$	32		$	(10	)	$	(55	)	$	396		13.2	%	Net Margin

Income (loss) from continuing operations per share - Basic and Diluted:
Basic				$	0.69		$	(0.01	)	$	0.43		$	0.05		$	0.03		$	0.02		$	0.06	$	0.10		$	(0.03	)	$	(0.15	)	$	1.19
Diluted				$	0.68		$	(0.01	)	$	0.43		$	0.05		$	0.03		$	0.02		$	0.06	$	0.09		$	(0.03	)	$	(0.15	)	$	1.17

Weighted average shares used in computing net income (loss) per share:
Basic				333			333			333			333			333			333			333		333			333			333			333
Diluted				338			338			338			338			338			338			338		338			338			338			338

The reconciliation from GAAP to Non-GAAP income from continuing operations is based on our current information.



AGILENT TECHNOLOGIES, INC.
RECONCILIATION FROM GAAP TO NON-GAAP

YEAR ENDED OCTOBER 31, 2014
(Unaudited)
							NON-GAAP ADJUSTMENTS

(in millions, except per share amounts)				GAAP (As Revised)			Restructuring & Other Related Costs			Asset Impairments & Write-downs			Acceleration of Share-based Compensation Related to Workforce Reduction			Intangible Amortization			Transformational Initiatives			Acquisition & Integration Costs			Pre-Separation Costs			Net Loss on Extinguishment of Debt		Nuclear Magnetic Resonance Business Exit			Unallocated Corporate Costs			Other			Adjustment for Taxes			Non-GAAP

Net Revenue	Change Year Over Year	4	%	$	4,048		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—	$	—		$	—		$	—		$	—		$	4,048		4	%	Change Year Over Year

Costs and expenses:
Cost of products and services	Gross Margin	48.8	%	2,072			1			—			—			(121		)	(19		)	(3		)	(1		)	—		(47		)	—			—			—			1,882			53.5	%	Gross Margin
Research and development	As a % of Revenue	8.8	%	358			—			(4		)	—			—			(3		)	(3		)	2			—		(5		)	1			(1		)	—			345			8.5	%	As a % of Revenue
Selling, general and administrative	As a % of Revenue	29.6	%	1,199			1			—			(1		)	(68		)	(7		)	(5		)	(15		)	—		(16		)	(41		)	11			—			1,058			26.1	%	As a % of Revenue
Total costs and expenses				3,629			2			(4		)	(1		)	(189		)	(29		)	(11		)	(14		)	—		(68		)	(40		)	10			—			3,285

Income from operations	Operating Margin	10.4	%	419			(2		)	4			1			189			29			11			14			—		68			40			(10		)	—			763			18.8	%	Operating Margin

Other income(expense), net				(190		)	—			—			—			—			—			—			1			89		—			4			(3		)	—			(99		)

Income (loss) from continuing operations before taxes				229			(2		)	4			1			189			29			11			15			89		68			44			(13		)	—			664

Provision (benefit) for income taxes	Tax Rate	(1	)%	(3		)	—			—			—			—			—			—			—			—		—			—			—			110			107			16	%	Tax Rate

Income (loss) from continuing operations	Net Margin	5.7	%	$	232		$	(2	)	$	4		$	1		$	189		$	29		$	11		$	15		$	89	$	68		$	44		$	(13	)	$	(110	)	$	557		13.8	%	Net Margin

Income (loss) from continuing operations per share - Basic and Diluted:
Basic				$	0.70		$	(0.01	)	$	0.01		$	—		$	0.57		$	0.09		$	0.03		$	0.05		$	0.27	$	0.20		$	0.13		$	(0.04	)	$	(0.33	)	$	1.67
Diluted				$	0.69		$	(0.01	)	$	0.01		$	—		$	0.56		$	0.09		$	0.03		$	0.05		$	0.26	$	0.20		$	0.13		$	(0.04	)	$	(0.32	)	$	1.65

Weighted average shares used in computing net income (loss) per share:
Basic				333			333			333			333			333			333			333			333			333		333			333			333			333			333
Diluted				338			338			338			338			338			338			338			338			338		338			338			338			338			338

The reconciliation from GAAP to Non-GAAP income from continuing operations is based on our current information.



AGILENT TECHNOLOGIES, INC.
RECONCILIATION FROM GAAP TO NON-GAAP

YEAR ENDED OCTOBER 31, 2013
(Unaudited)
							NON-GAAP ADJUSTMENTS

(in millions, except per share amounts)				GAAP (As Revised)			Restructuring & Other Related Costs			Asset Impairments & Write-downs			Acceleration of Share-based Compensation Related to Workforce Reduction			Intangible Amortization			Transformational Initiatives			Acquisition & Integration Costs			Unallocated Corporate Costs			Other			Adjustment for Taxes			Non-GAAP

Net Revenue	Change Year Over Year	10	%	$	3,894		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	3,894		10	%	Change Year Over Year

Costs and expenses:
Cost of products and services	Gross Margin	49.0	%	1,987			(17		)	—			(1		)	(120		)	(12		)	(4		)	(5		)	(7		)	—			1,821			53.2	%	Gross Margin
Research and development	As a % of Revenue	8.7	%	337			(5		)	(1		)	—			—			(1		)	(3		)	(5		)	(1		)	—			321			8.2	%	As a % of Revenue
Selling, general and administrative	As a % of Revenue	30.4	%	1,184			(12		)	(1		)	(1		)	(70		)	(6		)	(15		)	(54		)	(5		)	—			1,020			26.2	%	As a % of Revenue
Total costs and expenses				3,508			(34		)	(2		)	(2		)	(190		)	(19		)	(22		)	(64		)	(13		)	—			3,162

Income from operations	Operating Margin	9.9	%	386			34			2			2			190			19			22			64			13			—			732			18.8	%	Operating Margin

Other income(expense), net				(93		)	—			—			—			—			—			—			(2		)	1			—			(94		)

Income from continuing operations before taxes				293			34			2			2			190			19			22			62			14			—			638

Provision for income taxes	Tax Rate	23.2	%	68			—			—			—			—			—			—			—			—			35			103			16	%	Tax Rate

Income (loss) from continuing operations	Net Margin	5.8	%	$	225		$	34		$	2		$	2		$	190		$	19		$	22		$	62		$	14		$	(35	)	$	535		13.7	%	Net Margin

Income (loss) from continuing operations per share - Basic and Diluted:
Basic				$	0.66		$	0.10		$	0.01		$	0.01		$	0.56		$	0.06		$	0.06		$	0.18		$	0.04		$	(0.11	)	$	1.57
Diluted				$	0.65		$	0.10		$	0.01		$	0.01		$	0.55		$	0.06		$	0.06		$	0.18		$	0.04		$	(0.11	)	$	1.55

Weighted average shares used in computing net income (loss) per share:
Basic				341			341			341			341			341			341			341			341			341			341			341
Diluted				345			345			345			345			345			345			345			345			345			345			345

The reconciliation from GAAP to Non-GAAP income from continuing operations is based on our current information.

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