Hewlett Packard Enterprise (HPE) 10-K 2017 FY Annual report

Exhibit 12

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Statements of Computation of Ratio of Earnings to Fixed Charges⁽¹⁾ 

	For the fiscal years ended October 31,
	2017		2016		2015		2014		2013
	In millions, except ratios
Earnings:
Earnings from continuing operations before taxes	$	272	$	3,860	$	1,935	$	2,833	$	3,266
Adjustments:
Non-controlling interests in the income of subsidiaries with fixed charges	9		46		46		42		61
Undistributed loss of equity method investees	23		76		2		2		—
Distributed earnings of equity method investees	98		—		—		—		—
Fixed charges	692		644		395		416		433
	$	1,094	$	4,626	$	2,378	$	3,293	$	3,760
Fixed charges:
Total interest expense, including interest expense on borrowings, amortization of debt discount and premium on all indebtedness and other	$	610	$	558	$	255	$	292	$	328
Interest included in rent	82		86		140		124		105
Total fixed charges	$	692	$	644	$	395	$	416	$	433
Ratio of earnings to fixed charges (excess of fixed charges over earnings)	1.6x		7.2x		6.0x		7.9x		8.7x

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(1) The Company computed the ratio of earnings to fixed charges by dividing earnings (earnings from continuing operations before taxes, adjusted for fixed charges, non-controlling interests in the income of subsidiaries with fixed charges, undistributed loss of equity method investees and distributed earnings of equity method investees) by fixed charges for the periods indicated. Fixed charges include (i) interest expense on borrowings and amortization of debt discount or premium on all indebtedness and other, and (ii) a reasonable approximation of the interest factor deemed to be included in rent expense.