Loading…

Flash Player 9 (or above) is needed to view presentations.
We have detected that you do not have it on your computer. To install it, go here.

Like this document? Why not share!

agilent Q106Reconciliation4

on

  • 393 views

 

Statistics

Views

Total Views
393
Views on SlideShare
393
Embed Views
0

Actions

Likes
0
Downloads
1
Comments
0

0 Embeds 0

No embeds

Accessibility

Categories

Upload Details

Uploaded via

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

agilent Q106Reconciliation4 agilent Q106Reconciliation4 Document Transcript

  • Reconciliation of Book to Bill (in millions) Q1'06 Q106 Q105 YOY Change Revenue from continuing operations 1,336 1,212 10% Revenue from discontinued operations 141 446 Total revenue adjusted for discontinued operations 1,477 1,658 -11% Orders from continuing operations 1,353 1,176 Orders adjusted for discontinued operations 1,165 1,605 GAAP book to bill 1.01 0.97 Non-GAAP book to bill 0.79 0.97 The GAAP book to bill is calcuated by dividing orders from continuing operations by revenue from continuing operations. The Non-GAAP book to bill is calculated by dividing orders adjusted for discontinued operations by revenue adjusted for discontinued operation.
  • AGILENT TECHNOLOGIES, INC RECONCILIATION FROM GAAP TO NON-GAAP NET INCOME THREE MONTHS ENDED JANUARY 31, 2006 (Unaudited) Restructuring and Business Disposal Gain on Sale of Gain on Sale Share-Based Unallocated SPG Other, Principally Adjustment for (In millions, except per share amounts) GAAP Asset Impairment and Related Costs Investments of Lumileds Compensation Expense Corporate Charges Other Intangibles Discontinued Operations Non-GAAP Change year over year Orders 15% $1,353 $- $- $- $- $- $- $- $- $1,353 Change year over Net revenue year 10% $1,336 $- $- $- $- $- $- $- $- $1,336 Costs and expenses: Cost of products and services Gross margin 51% 657 (5) - - - (8) (2) (4) (7) 631 Research and development As a % of revenue 14% 189 (3) - - - (8) (2) - (5) 171 Selling, general and administrative As a % of revenue 33% 445 (12) (13) - - (20) (3) (1) (27) 369 Total costs and expenses 1,291 (20) (13) - - (36) (7) (5) (39) 1,171 Income from operations Operating Margin 3% 45 20 13 - - 36 7 5 39 - 165 Other income (expense), net 48 - - (5) - - - - (3) ## # 40 Income before taxes 93 - 20 - 13 - (5) - - - 36 - 7 5 36### 205 Tax rate (incl. Provision for taxes Valuation allowance) 16% 15 - - - - - - - 36 51 Income from continuing operations before equity in net income 78 - 20 - 13 - (5) - - - 36 - 7 5 - 154 Equity in net income of unconsolidated affiliate (including gain) - Lumileds 901 - - - (901) - - - - - Income from continuing operations 979 20 13 (5) (901) 36 7 5 - 154 Income from and gain on sale of discontinued operations 1,837 - - - - - - - (1,837) - Net income $2,816 $20 $13 $(5) $(901) $36 $7 $5 $(1,837) $154 Net income per share - Basic and Diluted: Basic Income from continuing operations $2.07 $0.04 $0.03 $(0.01) $(1.90) $0.07 $0.02 $0.01 $- $0.33 Income from discontinued operations, net of tax 3.88 - - - - - - - (3.88) - Net Income $5.95 $0.04 $0.03 $(0.01) $(1.90) $0.07 $0.02 $0.01 $(3.88) $0.33 Diluted Income from continuing operations $2.03 $0.04 $0.03 $(0.01) $(1.87) $0.07 $0.02 $0.01 $- $0.32 Income from discontinued operations, net of tax 3.80 - - - - - - - (3.80) - Net Income $5.83 $0.04 $0.03 $(0.01) $(1.87) $0.07 $0.02 $0.01 $(3.80) $0.32 Weighted average shares used in computing net income per share: Basic 473 473 473 473 473 473 473 473 473 473 Diluted 483 483 483 483 483 483 483 483 483 483
  • AGILENT TECHNOLOGIES, INC RECONCILIATION FROM GAAP TO NON-GAAP NET INCOME THREE MONTHS ENDED JANUARY 31, 2005 (Unaudited) Non-GAAP Adjustments Other Restructuring and Gain on Sale Investment Adjustments for Adjustment for (In millions, except per share amounts) GAAP Intangibles Asset Impairment of Investments Impairments Other Disc. Operations Income Taxes Non-GAAP Change year over Change year over Orders year 2% $1,176 $- $- $- $- $- $- $- $1,176 2% year Change year over Change year over Net revenue 3% $1,212 $- $- $- $- $- $- $- 1,212 3% year year Costs and expenses: Cost of products and services Gross margin 48.8% 621 (2) (2) - - 1 (11) - 607 49.9% Gross margin Research and development As a % of revenue 14.4% 175 - (1) - - - (6) - 168 13.9% As a % of revenue Selling, general and administrative As a % of revenue 31.2% 378 (1) (3) - - - (16) - 358 29.5% As a % of revenue Total costs and expenses 1,174 (3) (6) - - 1 (33) - 1,133 Income from operations Operating Margin 3.1% 38 3 6 - - (1) 33 - 79 6.5% Operating Margin Other income (expense), net 20 - - (7) 4 - (1) - 16 Income before taxes 58 3 6 (7) 4 (1) 32 - 95 Tax rate (incl. Tax rate (incl. Tax Provision 26% 15 - - - - - (1) 10 24 25% Valuation allowance) Valuation allowance) Equity in net income of unconsolidated affiliate (including gain) - Lumileds 8 - - - - (8) - - - Income (loss) from continuing operations 51 3 6 (7) 4 (9) 33 (10) 71 Income (loss) from discontinued operations 52 - - - - - (52) - - $103 $3 $6 $(7) $4 $(9) $(19) $(10) $71 Net income Net income per share - Basic and Diluted: Basic: $0.10 $0.01 $0.01 $(0.01) $0.01 $(0.02) $0.07 $(0.02) $0.15 Income (Loss) from continuing operations $0.11 $- $- $- $- $- $(0.11) $- $- Income (loss) from discontinued operations, net Net loss $0.21 $0.01 $0.01 $(0.01) $0.01 $(0.02) $(0.04) $(0.02) $0.15 Diluted: $0.10 $0.01 $0.01 $(0.01) $0.01 $(0.02) $0.06 $(0.02) $0.14 Income (Loss) from continuing operations $0.11 $- $- $- $- $- $(0.10) $- $0.01 Income (loss) from discontinued operations, net Net loss $0.21 $0.01 $0.01 $(0.01) $0.01 $(0.02) $(0.04) $(0.02) $0.15 (1) Weighted average shares used in computing net income per share: Basic 491 491 491 491 491 491 491 491 491 Diluted 496 532 532 532 532 532 532 532 532 (1) (1) In order to calculate non-GAAP diluted net income per share, we added 36 million shares and approximately $7 million of after-tax interest expense to non-GAAP net income to treat our senior convertible debentures as if they were converted. There was no impact of this to our diluted earning per share.
  • AGILENT TECHNOLOGIES, INC RECONCILIATION FROM GAAP TO NON-GAAP NET INCOME THREE MONTHS ENDED APRIL 30, 2005 (Unaudited) Non-GAAP Adjustments Other Restructuring and Gain on Sale of Gain on Camera Gain On Camera Investment Donation to Adjustments for Adjustment for (In millions, except per share amounts) GAAP Intangibles Asset Impairment Equity Investments Module Divestiture Sale of Assets Module Charge Impairments Agilent Foundation Other Disc. Operations Income Taxes Non-GAAP Change year over Change year over year year Orders -4% $1,315 $- $- $- $- $- $- $- $- $- $- $- $1,315 -4% Change year over Change year over Net revenue year -2% $1,278 $- $- $- $- $- $- $- $- $- $1 $- $1,279 -2% year Costs and expenses: Cost of products and services Gross margin 50.1% 638 (2) - - - 10 (5) - - (3) (7) - 631 50.7% Gross margin Research and development As a % of revenue 14.8% 189 - - - - - - - - (2) (7) - 180 14.1% As a % of revenue Selling, general and administrative As a % of revenue 32.0% 409 (1) (3) - - - - - (10) (5) (14) - 376 29.4% As a % of revenue Total costs and expenses 1,236 (3) (3) - - 10 (5) - (10) (10) (28) - 1,187 Income from operations Operating Margin 3.3% 42 3 3 - - (10) 5 - 10 10 29 - 92 7.2% Operating Margin Other income (expense), net 15 - - (8) (12) - - 9 - (1) 13 - 16 Income before taxes 57 3 3 (8) (12) (10) 5 9 10 9 42 - 108 Tax rate (incl. Tax rate (incl. Valuation allowance) 22% Valuation allowance) Tax Provision 33% 19 - - - - - - - - - 2 3 24 Equity in net income of unconsolidated affiliate (including gain) - Lumileds 15 - - - - - - - - (15) - - - Income (loss) from continuing operations 53 3 3 (8) (12) (10) 5 9 10 (6) 40 (3) 84 84 Income (loss) from discontinued operations 42 - - - - - - - - - (42) - - $95 $3 $3 $(8) $(12) $(10) $5 $9 $10 $(6) $(2) $(3) $84 Net income Net income per share - Basic and Diluted: Basic: $0.11 $- $0.01 $(0.01) $(0.02) $(0.02) $0.01 $0.02 $0.02 $(0.01) $0.08 $(0.01) $0.17 Income (Loss) from continuing operations Income (loss) from discontinued operations, net $0.08 $- $- $- $- $- $- $- $- $- $(0.08) $- $- Net loss $0.19 $- $0.01 $(0.01) $(0.02) $(0.02) $0.01 $0.02 $0.02 $(0.01) $0.00 $(0.01) $0.17 Diluted: Income (Loss) from continuing operations $0.11 $- $0.01 $(0.02) $(0.02) $(0.02) $0.01 $0.02 $0.02 $(0.01) $0.08 $(0.01) $0.17 $0.08 $- $- $- $- $- $- $- $- $- $(0.08) $- $- Income (loss) from discontinued operations, net Net loss $0.19 $- $0.01 $(0.02) $(0.02) $(0.02) $0.01 $0.02 $0.02 $(0.01) $- $(0.01) $0.17 (1) Weighted average shares used in computing net income per share: Basic 491 491 491 491 491 491 491 491 491 491 491 491 491 Diluted 496 532 532 532 532 532 532 532 532 532 532 532 532 (1) (1) In order to calculate non-GAAP diluted net income per share, we added 36 million shares and approximately $7 million of after-tax interest expense to non-GAAP net income to treat our senior convertible debentures as if they were converted. There was no impact of this to our diluted earning per share.
  • AGILENT TECHNOLOGIES, INC RECONCILIATION FROM GAAP TO NON-GAAP NET INCOME THREE MONTHS ENDED JULY 31, 2005 (Unaudited) Non-GAAP Adjustments Other Restructuring and Loss On Camera Business Disposal Adjustments for Adjustment for (In millions, except per share amounts) GAAP Intangibles Asset Impairment Sale of Assets Module Charge and related costs Other Disc. Operations Income Taxes Non-GAAP Change year over Change year over Orders year 0% $1,301 $- $- $- $- $- $- $- $- $1,301 0% year Change year over Change year over Net revenue year -8% $1,242 $- $- $- $- $- $- $(1) $- $1,241 -8% year Costs and expenses: Cost of products and services Gross margin 48.0% 646 (2) (16) (1) (3) - (2) (3) - 619 50.1% Gross margin Research and development As a % of revenue 14.7% 183 - (12) - - - (1) (2) - 168 13.5% As a % of revenue Selling, general and administrative As a % of revenue 30.4% 378 (2) (12) - - (7) - (8) - 349 28.1% As a % of revenue Total costs and expenses 1,207 (4) (40) (1) (3) (7) (3) (13) - 1,136 0 Income from operations Operating Margin 2.8% 35 4 40 1 3 7 3 12 - 105 8.5% Operating Margin Other income (expense), net 25 - - - - - (1) (3) - 21 Income before taxes 60 4 40 1 3 7 2 9 - 126 Tax rate (incl. Tax rate (incl. Valuation allowance) 25% Valuation allowance) Tax Provision 32% 19 - - - - - - (6) 18 31 Equity in net income of unconsolidated affiliate (including gain) - Lumileds 13 - - - - - (13) - - - Income (loss) from continuing operations 54 4 40 1 3 7 (11) 15 (18) 95 Income (loss) from discontinued operations 50 - - - - - - (50) - - $104 $4 $40 $1 $3 $7 $(11) $(35) $(18) $95 Net income Net income per share - Basic and Diluted: Basic: Income (Loss) from continuing operations $0.11 $0.01 $0.08 $0.00 $0.01 $0.01 $(0.02) $0.03 $(0.04) $0.19 Income (loss) from discontinued operations, net $0.10 $- $- $- $- $- $- $(0.10) $- $- Net loss $0.21 $0.01 $0.08 $0.00 $0.01 $0.01 $(0.02) $(0.07) $(0.04) $0.19 Diluted: Income (Loss) from continuing operations $0.10 $0.01 $0.08 $0.01 $0.01 $0.01 $(0.02) $0.03 $(0.03) $0.19 Income (loss) from discontinued operations, net $0.10 $- $- $- $- $- $- $(0.10) $- $- Net loss $0.20 $0.01 $0.08 $0.01 $0.01 $0.01 $(0.02) $(0.07) $(0.03) $0.19 Weighted average shares used in computing net income per share: Basic 494 494 494 494 494 494 494 494 494 494 Diluted 499 535 535 535 535 535 535 535 535 535 (1) (1) In order to calculate non-GAAP diluted net income per share, we added 36 million shares and approximately $7 million of after-tax interest expense to non-GAAP net income to treat our senior convertible debentures as if they were converted. There was no impact of this to our diluted earning per share.
  • AGILENT TECHNOLOGIES, INC RECONCILIATION FROM GAAP TO NON-GAAP NET INCOME THREE MONTHS ENDED OCTOBER 31, 2005 (Unaudited) Non-GAAP Adjustments Restructuring and Investment Convertible Debt Other Adjustments for Adjustment for (In millions, except per share amounts) GAAP Asset Impairment Impairments Repurchase including Disposal costs Disc. Operations Income Taxes Non-GAAP Change year over Change year over year $1,504 Change year over year year Orders 26% $1,504 $- $- $- $- $- $- Change year over Change year over Net revenue year 5% $1,407 $- $- $- $- $- $- $1,407 Change year over year year Costs and expenses: Cost of products and services Gross margin 49.4% 712 (19) - - (1) (19) - 673 52.2% Gross margin Research and development As a % of revenue 13.6% 191 (11) - - 1 (13) - 168 11.9% As a % of revenue Selling, general and administrative As a % of revenue 31.1% 438 (37) - - (35) 6 - 372 26.4% As a % of revenue Total costs and expenses 1,341 (67) - - (35) (26) - 1,213 Income from operations Operating Margin 4.7% 66 67 - - 35 26 - 194 13.8% Other income (expense), net 14 - 9 6 (6) (7) - 16 Income before taxes 79 67 9 6 29 19 - 210 Tax rate (incl. Tax rate (incl. Valuation allowance) 31% Valuation allowance) Tax Provision 129% 102 (4) (1) - (1) 17 (48) 65 Equity in net income of unconsolidated affiliate (including gain) - Lumileds 6 - - - (6) - - - Income (loss) from continuing operations (17) 71 10 6 24 2 48 145 Income (loss) from discontinued operations 42 - - - - (42) - - $25 $71 $10 $6 $24 $(40) $48 $145 Net income Net income per share - Basic and Diluted: Basic: $(0.03) $0.14 $0.02 $0.01 $0.05 $0.00 $0.10 $0.29 Income (Loss) from continuing operations $0.08 $- $- $- $- $(0.08) $- $- Income (loss) from discontinued operations, net Net loss $0.05 $0.14 $0.02 $0.01 $0.05 $(0.08) $0.10 $0.29 Diluted: Income (Loss) from continuing operations $(0.03) $0.14 $0.02 $0.01 $0.05 $0.00 $0.09 $0.28 Income (loss) from discontinued operations, net $0.08 $- $- $- $- $(0.08) $- $- Net loss $0.05 $0.14 $0.02 $0.01 $0.05 $(0.08) $0.09 $0.28 Weighted average shares used in computing net income per share: Basic 500 500 500 500 500 500 500 500 Diluted 512 512 512 512 512 512 512 512
  • AGILENT TECHNOLOGIES, INC RECONCILIATION FROM GAAP TO NON-GAAP RETURN ON INVESTED CAPITAL (In millions) (unaudited) Q1 05 Q2 05 Q3 05 Q4 05 Numerator: GAAP Net income 103 95 104 25 GAAP Return Annualized 412 380 416 100 Non-GAAP Net income 71 84 95 145 Less: Other (income) expense and taxes (5) (6) (10) (9) Non-GAAP Return 66 78 85 136 Non-GAAP Return Annualized 264 312 340 544 Denominator: Components: Shareholders' Equity 4,888 4,990 5,061 5,154 Accumulated Goodwill and Intangible Amortization 297 298 222 234 Long-Term Debt 1,150 1,151 1,151 - Cash and Equivalent 2,456 2,656 2,752 2,226 Net Assets Previously Allocated to SPG 1,120 1,025 1,073 923 Invested capital 2,760 2,757 2,609 2,239 Average Invested capital 2,723 2,759 2,683 2,424 ROIC GAAP 15% 14% 16% 4% ROIC Non-GAAP 10% 11% 13% 22% Quarterly ROIC calculation:(annualized current quarter net income)/(average of the two most recent quarter-end balances of Invested Capital) Historical amounts were reclassified to conform with current period presentation.
  • Total Agilent ROIC Q1'06 (in millions) (unaudited) GAAP Non-GAAP Net Income Net Income Numerator: Q1'06 $2,728 $154 Net interest income after tax (24) ROIC Net income $2,728 $130 Annualized factor 4 4 10,912 520 Denominator: October 2005 January 2006 Long-Term debt $- $1,501 Stockholder's equity adjusted for estimate of tax valuation allowance and SPG divestiture and sale of Lumileds 4,231 3,607 Accumulated goodwill amortization 234 239 $4,465 $5,347 Less: Cash & Cash equivalents $2,226 $2,737 Agilent invested capital $2,239 $2,610 Average of quarter end balance $2,425 GAAP ROIC (GAAP Net Income / Average of quarter end balances) 450% Non-GAAP ROIC (Non-GAAP net income / Average of quarter end balances) 21% Historical amounts were reclassified to conform with current period presentation.
  • AGILENT TECHNOLOGIES, INC RECONCILIATION FROM GAAP TO NON-GAAP RETURN ON INVESTED CAPITAL (SEGMENT) (In millions) (Unaudited) FY 2003 FY 2004 FY 2005 FY 2003 FY 2004 FY 2005 FY 2003 FY 2004 FY 2005 BAM BAM BAM EM EM EM New Agilent New Agilent New Agilent Numerator: Segment income (loss) from operations $141 $186 $197 $(336) $279 $360 $(225) $465 $560 Less: Net interest income, after tax (5) (6) 29 Other (income) expense and taxes 52 73 48 (160) 82 60 (143) 144 97 Segment return $89 $113 $149 $(176) $197 $300 $(77) $327 $434 Denominator: Segment assets (1) $696 $732 $690 $2,616 $2,513 $2,009 $3,312 $3,192 $2,847 Less: Net current liabilities (2) 181 181 207 511 455 492 $716 $778 $827 Invested capital $515 $551 $483 $2,105 $2,058 $1,517 $2,596 $2,414 $2,020 Average Invested capital $471 $537 $520 $2,166 $2,143 $1,837 $2,638 $2,660 $2,345 ROIC 19% 21% 29% -8% 9% 16% -3% 12% 19% ROIC calculation:(annual segment return)/(average of the five most recent quarter-end balances of Segment Invested Capital) Segment assets consist of inventory, accounts receivable, property plant and equipment, gross (1) goodwill and other intangibles, deferred taxes and allocated corporate assets. Includes accounts payable, employee compensation and benefits, other accrued liabilities and allocated corporate liabilities. (2) Historical amounts were reclassified to conform with current period presentation.
  • AGILENT TECHNOLOGIES, INC RECONCILIATION FROM GAAP TO NON-GAAP RETURN ON INVESTED CAPITAL (SEGMENT) (In millions) (Unaudited) Q1 FY06 Q1 FY06 STS New Agilent Numerator: Income (loss) from operations $16 $144 Less: Other (income) expense and taxes 5 5 Return 11 139 Return Annualized $44 $556 Denominator: Assets (1) $399 $3,069 Less: 87 771 Net current liabilities (2) Invested capital $312 $2,298 Average Invested capital $266 $2,159 ROIC 17% 26% Quarterly ROIC calculation:(annualized current quarter net income)/(average of the two most recent quarter-end balances of Invested Capital) Segment assets consist of inventory, accounts receivable, property plant and equipment, gross (1) goodwill and other intangibles, deferred taxes and allocated corporate assets. Includes accounts payable, employee compensation and benefits, other accrued liabilities and allocated corporate liabilities. (2) Historical amounts were reclassified to conform with current period presentation.
  • AGILENT TECHNOLOGIES, INC. Reconciliation of Segment ROIC (In millions) (Unaudited) Q1 FY06 Q1 FY05 Numerator: EM EM Segment income (loss) from operations $89 $68 Less: Other (income) expense and taxes 15 13 Segment return 74 55 Segment return annualized $296 $220 Denominator: $2,248 $2,384 Segment assets (a) Less: 532 457 Net current liabilities (b) Invested capital $1,716 $1,927 Average Invested capital $1,617 $1,993 ROIC 18% 11% ROIC calculation:(annualized current quarter segment return)/(average of the two most recent quarter-end balances of Segment Invested Capital) Segment assets consist of inventory, accounts receivable, property plant and equipment, gross (a) goodwill and other intangibles, deferred taxes and allocated corporate assets. Includes accounts payable, employee compensation and benefits, other accrued liabilities and allocated corporate liabilities. (b)
  • AGILENT TECHNOLOGIES, INC. Reconciliation of Segment ROIC (In millions) (Unaudited) Q1 FY06 Q1 FY05 Numerator: BAM BAM Segment income (loss) from operations $52 $51 Less: Other (income) expense and taxes 15 13 Segment return 37 38 Segment return annualized $148 $152 Denominator: Segment assets (a) $802 $704 Less: Net current liabilities (b) 220 203 Invested capital $582 $501 Average Invested capital $532 $526 ROIC 28% 29% ROIC calculation:(annualized current quarter segment return)/(average of the two most recent quarter-end balances of Segment Invested Capital) Segment assets consist of inventory, accounts receivable, property plant and equipment, gross (a) goodwill and other intangibles, deferred taxes and allocated corporate assets. Includes accounts payable, employee compensation and benefits, other accrued liabilities and allocated corporate liabilities. (b)
  • AGILENT TECHNOLOGIES, INC RECONCILIATION FROM GAAP TO NON-GAAP DAYS ON HAND (DOH) (In millions, except days on hand) Q105 Q205 Q305 Q405 Q106 GAAP Costs of Products and Services 621 638 646 712 657 Net Inventory 806 770 751 722 740 GAAP Inventory Days 117 109 105 91 101 Non-GAAP Costs of Products and Services 621 638 646 712 657 Amortization of Intangibles (2) (2) (2) (3) (3) Restructuring and asset impairments (5) - (16) (19) (10) Inventory Charges (14) (17) (12) (32) (18) Other/Discontinued operations adjustments (2) (3) (9) (4) (12) Adjusted Costs of Products and Services 598 616 607 654 614 Net Inventory 806 770 751 722 740 Non-GAAP Inventory Days 121 112 111 99 108 Non-GAAP DOH Formula: (Quarter end net inventory x 90 Days)/(Current quarter's COGS - Inventory Charges - Non-GAAP Adjustments) GAAP DOH Formula: (Quarter-end net inventory x 90 Days)/(Current quarter's COGS )
  • AGILENT TECHNOLOGIES, INC RECONCILIATION FROM GAAP TO NON-GAAP DAYS ON HAND (DOH) (In millions, except days on hand) FY2003 FY2004 FY2005 GAAP Costs of Products and Services 2,633 2,723 2,617 Net Inventory 822 809 722 GAAP Inventory Days 112 107 99 Non-GAAP Costs of Products and Services 2,633 2,723 2,617 Amortization of Intangibles (46) (19) (9) Restructuring and asset impairments (111) (54) (40) Inventory Charges (11) (5) (75) Other/Discontinued Operations adjustments 75 (32) 80 Adjusted Costs of Products and Services 2,540 2,613 2,573 Net Inventory 822 809 722 Non-GAAP Inventory Days 116 111 101 Non-GAAP DOH Formula: (Year end net inventory x 360 Days)/(Year's COGS - Inventory Charges - Non-GAAP Adjustments) GAAP DOH Formula: (Year end net inventory x 360 Days)/(Year's COGS )
  • AGILENT TECHNOLOGIES, INC. GAAP TO NON-GAAP RECONCILIATION CASHFLOWS Twelve Months Condensed ended and labelled as October 31, follows 2003 2004 2005 Cash flows from operating activities: Net income (loss) $(2,058) $369 $327 None Less: income (loss) from discontinued operations None $(13) $242 $186 Income (loss) from continuing operations Earnings $(2,045) $127 $141 Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Depreciation and amortization Depreciation & Amort. 279 218 186 Deferred taxes Other Operating 1,071 (53) (12) Excess and obsolete inventory-related charges Other Operating 17 19 84 Non-cash restructuring and asset impairment charges Other Operating 46 34 26 Retirement plans curtailment loss Other Operating 5 - - Net gain on sale of investments Other Operating - - (8) Undistributed equity in net income of Lumileds (including gain) Other Operating (9) (29) (42) Net gain on sale of assets and divestitures Other Operating (5) - (18) Stock-based compensation Other Operating 6 7 9 Other Other Operating - - 8 Adoption of SFAS No.142 Other Operating 268 - - Changes in assets and liabilities: Accounts receivable Working Capital (4) 117 29 Inventory Working Capital 112 (10) 2 Accounts payable Working Capital 25 47 21 Employee compensation and benefits Other Operating (18) 28 17 Income taxes and other taxes payable Other Operating (63) (50) 122 Other current assets and liabilities Other Operating (5) (40) (5) Other long-term assets and liabilities Other Operating (89) 17 83 Net cash provided by (used in) operating activities of continuing operations Cash From Operations (409) 432 643 Net cash provided by operating activities of discontinued operations 251 238 256 Net cash provided by (used in) operating activities (158) 670 899 Cash flows from investing activities: Investments in property, plant and equipment Capital Expenditures (171) (84) (139) Proceeds from the sale of property, plant and equipment Other 2 34 54 Investments in equity securities Other (4) (14) (13) Proceeds from the sale of investments Other - - 22 Proceeds from divestitures Other - - 8 Increase in restricted cash Other - - (22) Payment of loan receivable Other - - 6 Proceeds (purchases) of short-term investments, net Other - - (25) Acquitsitions of businesses and intangible assets, net of cash acquired Other - (18) (64) Net cash used in investing activities of continuing operaitons (173) (82) (173) Net cash used in investing activities of discontinued operations (30) (32) (27) Net cash used in investing activities (203) (114) (200) Cash flows from financing activities: Treasury stock repurchases None - - (290) Redemption of convertible debentures, net None - - (684) Issuance of common stock under employee stock plans None 106 137 198 Net payments (borrowings) related to notes payable and short-term borrowings None (2) 1 (4) Net cash provided by (used in) financing activities of continuing operations Financing & Exchange 104 138 (780) Effect of exchange rate movements Financing & Exchange 20 14 (8) Net increase (decrease) in cash and cash equivalents Change in cash (237) 708 (89) Cash and cash equivalents at beginning of year None 1,844 1,607 2,315 Cash and cash equivalents at end of year Cash & Equiv., EOP $1,607 $2,315 $2,226
  • AGILENT TECHNOLOGIES, INC. GAAP TO NON-GAAP RECONCILIATION PROJECTED CASHFLOWS Agilent’s forecast cashflows for fiscal years 2006 and 2007 exclude stock-based compensation, the impact of the impact of the spin off of STS, which cannot be estimated reliably.
  • AGILENT TECHNOLOGIES, INC. GAAP TO NON-GAAP RECONCILIATION FORECAST RATIOS Days on hand, ROIC of Agilent, quot;New Agilentquot; and its segments cannot be estimated on a GAAP basis for fiscal 2006 and 2007 Days on hand as presented is based on a forecast non-GAAP cost of sales number that excludes restructuring which cannot be estimated ROIC as presented is based on a forecast balance sheet and earnings that exclude a number of items that cannot ne estimated, such as restructuring, the impact of the spin off of STS.
  • Reconciliation of Free Cash Flow from Operations (in millions) FY04 FY05 Net cash provided by operating activities 663 899 Investments in property, plant and equipment, including SPG (118) (191) Free cash flow from operations $545 $708
  • Reconciliation of Net Cash as of Q1 06 (in millions) Q106 Cash and cash equivalents $2,737 Short term investments - Restricted investments 1,601 Less: long term debt 1,500 Net cash $2,838
  • Q1'06 Reconciliation for Operating Margin Incremental (in millions) Q1'06 Q1'05 $ Change Revenue $1,336 $1,212 $124 GAAP Operating Profit 45 38 $7 Adjustments (See GAAP to Non-GAAP reconciliation) 119 41 Non-GAAP Operating Profit $164 $79 $85 GAAP Operating Margin Incremental1 6% Non-GAAP Operating Margin Incremental 1 69% Incremental calculated as change in operating profit / change in revenue 1
  • AGILENT TECHNOLOGIES, INC RECONCILIATION FROM GAAP TO NON-GAAP OPERATIONS SUPPORT SYSTEMS GROUP (OSSG) RETURN ON INVESTED CAPITAL (In millions) (Unaudited) Q3'05 Q4'05 Numerator: OSSG income from operations 4.3 3.4 Less: Other (income) expense and taxes - (0.3) OSSG return 4.3 3.7 OSSG return annualized 17 15 Denominator: OSSG assets (1) 130 116 Less: Net current liabilities (2) 48 53 Invested capital 82 63 Average Invested capital 83 73 ROIC 21% 21% ROIC calculation:(annualized current quarter OSSG return)/(average of the two most recent quarter-end balances of OSSG Invested Capital) OSSG assets consist of inventory, accounts receivable, property plant and equipment, gross (1) goodwill and other intangibles, deferred taxes and allocated corporate assets. Includes accounts payable, employee compensation and benefits, other accrued liabilities and allocated corporate liabilities. (2)