Agilent (A) 8-K Condensed Consolidated Statement of Operations

AGILENT TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

(In millions, except per share amounts)

	Three Months Ended
	January 31, 2018
	As Previously Reported			Pension Adjustment	As Adjusted
Net revenue	$	1,211			$	1,211
Costs and expenses:
Cost of products and services	538			3	541
Research and development	93			1	94
Selling, general and administrative	341			6	347
Total costs and expenses	972				982
Income from operations	239				229
Interest income	9				9
Interest expense	(20		)		(20		)
Other income (expense), net	5			10	15
Income before taxes	233				233
Provision for income taxes	553				553
Net loss	$	(320	)		$	(320	)
Net loss per share:
Basic	$	(0.99	)		$	(0.99	)
Diluted	$	(0.99	)		$	(0.99	)
Weighted average shares used in computing net loss per share:
Basic	323				323
Diluted	323				323
Cash dividends declared per common share	$	0.149			$	0.149

AGILENT TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

(In millions, except per share amounts)

	Three Months Ended							Six Months Ended
	April 30, 2018							April 30, 2018
	As Previously Reported			Pension Adjustment	As Adjusted			As Previously Reported			Pension Adjustment	As Adjusted
Net revenue	$	1,206			$	1,206		$	2,417			$	2,417
Costs and expenses:
Cost of products and services	562			1	563			1,100			4	1,104
Research and development	91			1	92			184			2	186
Selling, general and administrative	338			3	341			679			9	688
Total costs and expenses	991				996			1,963				1,978
Income from operations	215				210			454				439
Interest income	10				10			19				19
Interest expense	(19		)		(19		)	(39		)		(39		)
Other income (expense), net	21			5	26			26			15	41
Income before taxes	227				227			460				460
Provision for income taxes	22				22			575				575
Net income (loss)	$	205			$	205		$	(115	)		$	(115	)
Net income (loss) per share:
Basic	$	0.64			$	0.64		$	(0.36	)		$	(0.36	)
Diluted	$	0.63			$	0.63		$	(0.36	)		$	(0.36	)
Weighted average shares used in computing net income (loss) per share:
Basic	322				322			323				323
Diluted	326				326			323				323
Cash dividends declared per common share	$	0.149			$	0.149		$	0.298			$	0.298

AGILENT TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

(In millions, except per share amounts)

	Three Months Ended							Nine Months Ended
	July 31, 2018							July 31, 2018
	As Previously Reported			Pension Adjustment	As Adjusted			As Previously Reported			Pension Adjustment	As Adjusted
Net revenue	$	1,203			$	1,203		$	3,620			$	3,620
Costs and expenses:
Cost of products and services	542			2	544			1,642			6	1,648
Research and development	97			—	97			281			2	283
Selling, general and administrative	339			2	341			1,018			11	1,029
Total costs and expenses	978				982			2,941				2,960
Income from operations	225				221			679				660
Interest income	9				9			28				28
Interest expense	(18		)		(18		)	(57		)		(57		)
Other income (expense), net	26			4	30			52			19	71
Income before taxes	242				242			702				702
Provision for income taxes	6				6			581				581
Net income	$	236			$	236		$	121			$	121
Net income per share:
Basic	$	0.74			$	0.74		$	0.38			$	0.38
Diluted	$	0.73			$	0.73		$	0.37			$	0.37
Weighted average shares used in computing net income per share:
Basic	320				320			322				322
Diluted	324				324			326				326
Cash dividends declared per common share	$	0.149			$	0.149		$	0.447			$	0.447

AGILENT TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

(In millions, except per share amounts)

	Three Months Ended							Year Ended
	October 31, 2018							October 31, 2018
	As Previously Reported			Pension Adjustment	As Adjusted			As Previously Reported			Pension Adjustment	As Adjusted
Net revenue	$	1,294			$	1,294		$	4,914			$	4,914
Costs and expenses:
Cost of products and services	585			1	586			2,227			7	2,234
Research and development	104			—	104			385			2	387
Selling, general and administrative	356			4	360			1,374			15	1,389
Total costs and expenses	1,045				1,050			3,986				4,010
Income from operations	249				244			928				904
Interest income	10				10			38				38
Interest expense	(18		)		(18		)	(75		)		(75		)
Other income (expense), net	3			5	8			55			24	79
Income before taxes	244				244			946				946
Provision for income taxes	49				49			630				630
Net income	$	195			$	195		$	316			$	316
Net income per share:
Basic	$	0.61			$	0.61		$	0.98			$	0.98
Diluted	$	0.61			$	0.61		$	0.97			$	0.97
Weighted average shares used in computing net income per share:
Basic	319				319			321				321
Diluted	322				322			325				325
Cash dividends declared per common share	$	0.149			$	0.149		$	0.596			$	0.596

AGILENT TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

(In millions, except per share amounts)

	Three Months Ended
	January 31, 2017
	As Previously Reported			Pension Adjustment	As Adjusted
Net revenue	$	1,067			$	1,067
Costs and expenses:
Cost of products and services	493			10	503
Research and development	79			3	82
Selling, general and administrative	289			19	308
Total costs and expenses	861				893
Income from operations	206				174
Interest income	4				4
Interest expense	(20		)		(20		)
Other income (expense), net	3			32	35
Income before taxes	193				193
Provision for income taxes	25				25
Net income	$	168			$	168
Net income per share:
Basic	$	0.52			$	0.52
Diluted	$	0.52			$	0.52
Weighted average shares used in computing net income per share:
Basic	322				322
Diluted	326				326
Cash dividends declared per common share	$	0.132			$	0.132

AGILENT TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

(In millions, except per share amounts)

	Three Months Ended							Six Months Ended
	April 30, 2017							April 30, 2017
	As Previously Reported			Pension Adjustment	As Adjusted			As Previously Reported			Pension Adjustment	As Adjusted
Net revenue	$	1,102			$	1,102		$	2,169			$	2,169
Costs and expenses:
Cost of products and services	510			—	510			1,003			10	1,013
Research and development	84			—	84			163			3	166
Selling, general and administrative	307			1	308			596			20	616
Total costs and expenses	901				902			1,762				1,795
Income from operations	201				200			407				374
Interest income	5				5			9				9
Interest expense	(20		)		(20		)	(40		)		(40		)
Other income (expense), net	5			1	6			8			33	41
Income before taxes	191				191			384				384
Provision for income taxes	27				27			52				52
Net income	$	164			$	164		$	332			$	332
Net income per share:
Basic	$	0.51			$	0.51		$	1.03			$	1.03
Diluted	$	0.50			$	0.50		$	1.02			$	1.02
Weighted average shares used in computing net income per share:
Basic	321				321			322				322
Diluted	325				325			325				325
Cash dividends declared per common share	$	0.132			$	0.132		$	0.264			$	0.264

AGILENT TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

(In millions, except per share amounts)

	Three Months Ended							Nine Months Ended
	July 31, 2017							July 31, 2017
	As Previously Reported			Pension Adjustment	As Adjusted			As Previously Reported			Pension Adjustment	As Adjusted
Net revenue	$	1,114			$	1,114		$	3,283			$	3,283
Costs and expenses:
Cost of products and services	518			—	518			1,521			10	1,531
Research and development	87			(1)	86			250			2	252
Selling, general and administrative	308			1	309			904			21	925
Total costs and expenses	913				913			2,675				2,708
Income from operations	201				201			608				575
Interest income	6				6			15				15
Interest expense	(19		)		(19		)	(59		)		(59		)
Other income (expense), net	5				5			13			33	46
Income before taxes	193				193			577				577
Provision for income taxes	18				18			70				70
Net income	$	175			$	175		$	507			$	507
Net income per share:
Basic	$	0.55			$	0.55		$	1.57			$	1.57
Diluted	$	0.54			$	0.54		$	1.56			$	1.56
Weighted average shares used in computing net income per share:
Basic	321				321			322				322
Diluted	326				326			325				325
Cash dividends declared per common share	$	0.132			$	0.132		$	0.396			$	0.396

AGILENT TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

(In millions, except per share amounts)

	Three Months Ended							Year Ended
	October 31, 2017							October 31, 2017
	As Previously Reported			Pension Adjustment	As Adjusted			As Previously Reported			Pension Adjustment	As Adjusted
Net revenue	$	1,189			$	1,189		$	4,472			$	4,472
Costs and expenses:
Cost of products and services	542			—	542			2,063			10	2,073
Research and development	89			—	89			339			2	341
Selling, general and administrative	325			1	326			1,229			22	1,251
Total costs and expenses	956				957			3,631				3,665
Income from operations	233				232			841				807
Interest income	7				7			22				22
Interest expense	(20		)		(20		)	(79		)		(79		)
Other income (expense), net	6			1	7			19			34	53
Income before taxes	226				226			803				803
Provision for income taxes	49				49			119				119
Net income	$	177			$	177		$	684			$	684
Net income per share:
Basic	$	0.55			$	0.55		$	2.12			$	2.12
Diluted	$	0.54			$	0.54		$	2.10			$	2.10
Weighted average shares used in computing net income per share:
Basic	322				322			322				322
Diluted	326				326			326				326
Cash dividends declared per common share	$	0.132			$	0.132		$	0.528			$	0.528

AGILENT TECHNOLOGIES, INC.
LIFE SCIENCES AND APPLIED MARKETS SEGMENT
(Unaudited)
All periods below were revised to include the impact of the adoption of ASU 2017-07.
(In millions, except margins data)		2018
		Q1			Q2			Q3			Q4			Total
	Gross margin %	62.1		%	59.7		%	61.3		%	62.1		%	61.3		%
	Research and development expenses	$	54		$	54		$	54		$	58		$	220
	Selling, general and administrative expenses	$	162		$	154		$	155		$	159		$	630
	Income from operations	$	154		$	113		$	122		$	154		$	543
	Operating margin %	25.9		%	21.0		%	22.7		%	25.7		%	23.9		%
		2017
		Q1			Q2			Q3			Q4			Total
	Gross margin %	59.9		%	60.2		%	60.0		%	61.2		%	60.3		%
	Research and development expenses	$	48		$	50		$	50		$	51		$	199
	Selling, general and administrative expenses	$	141		$	145		$	147		$	154		$	587
	Income from operations	$	123		$	106		$	109		$	132		$	470
	Operating margin %	23.6		%	21.3		%	21.5		%	23.9		%	22.6		%

Income from operations reflect the results of our reportable segments under Agilent'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, asset impairments, charges related to amortization of intangibles, business exit and divestiture costs, transformational initiatives, acquisition and integration costs, NASD site costs, and special compliance costs.

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.

9

AGILENT TECHNOLOGIES, INC.
DIAGNOSTICS AND GENOMICS SEGMENT
(Unaudited)
All periods below were revised to include the impact of the adoption of ASU 2017-07.
(In millions, except margins data)		2018
		Q1			Q2			Q3			Q4			Total
	Gross margin %	54.2		%	54.8		%	56.8		%	59.0		%	56.3		%
	Research and development expenses	$	25		$	24		$	30		$	30		$	109
	Selling, general and administrative expenses	$	63		$	61		$	62		$	63		$	249
	Income from operations	$	24		$	48		$	43		$	58		$	173
	Operating margin %	11.7		%	19.9		%	18.0		%	22.7		%	18.4		%
		2017
		Q1			Q2			Q3			Q4			Total
	Gross margin %	54.6		%	57.5		%	52.8		%	55.6		%	55.2		%
	Research and development expenses	$	21		$	21		$	24		$	23		$	89
	Selling, general and administrative expenses	$	52		$	55		$	54		$	57		$	218
	Income from operations	$	27		$	53		$	37		$	50		$	167
	Operating margin %	14.7		%	23.7		%	17.0		%	21.3		%	19.4		%

Income from operations reflect the results of our reportable segments under Agilent'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, asset impairments, charges related to amortization of intangibles, business exit and divestiture costs, transformational initiatives, acquisition and integration costs, NASD site costs, and special compliance costs.

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.

10

AGILENT TECHNOLOGIES, INC.
AGILENT CROSSLAB SEGMENT
(Unaudited)
All periods below were revised to include the impact of the adoption of ASU 2017-07.
(In millions, except margins data)		2018
		Q1			Q2			Q3			Q4			Total
	Gross margin %	50.4		%	50.0		%	50.1		%	51.0		%	50.4		%
	Research and development expenses	$	14		$	14		$	13		$	15		$	56
	Selling, general and administrative expenses	$	105		$	103		$	102		$	103		$	413
	Income from operations	$	87		$	96		$	98		$	107		$	388
	Operating margin %	21.2		%	22.5		%	23.1		%	24.2		%	22.8		%
		2017
		Q1			Q2			Q3			Q4			Total
	Gross margin %	48.5		%	49.6		%	49.9		%	49.6		%	49.4		%
	Research and development expenses	$	12		$	12		$	12		$	14		$	50
	Selling, general and administrative expenses	$	91		$	94		$	91		$	95		$	371
	Income from operations	$	73		$	81		$	90		$	92		$	336
	Operating margin %	20.1		%	21.5		%	23.2		%	22.7		%	21.9		%

Income from operations reflect the results of our reportable segments under Agilent'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, asset impairments, charges related to amortization of intangibles, business exit and divestiture costs, transformational initiatives, acquisition and integration costs, NASD site costs, and special compliance costs.

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.

11