AGILENT TECHNOLOGIES, INC. - FORM 8-K - EX-99.1 - August 3, 2012

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8-K - 8-K - AGILENT TECHNOLOGIES, INC.a12-17659_18k.htm

Exhibit 99.1

 

Quarterly Segment Financial Summary Information — Fiscal Years

 Ended October 31, 2009, 2010, 2011, and 2012.

 

AGILENT TECHNOLOGIES, INC.

LIFE SCIENCES SEGMENT

(Unaudited)

 

 

 

FY 2012

 

(In millions, except margins and ROIC data)

 

Q1

 

Q2

 

Q3

 

Q4

 

Total

 

Orders

 

$

394

 

$

410

 

 

 

 

 

$

804

 

 

 

 

 

 

 

 

 

 

 

 

 

Net revenue

 

$

395

 

$

395

 

 

 

 

 

$

790

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross margin

 

50.9

%

48.9

%

 

 

 

 

49.9

%

 

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

$

58

 

$

44

 

 

 

 

 

$

102

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating margin %

 

14.6

%

11.2

%

 

 

 

 

12.9

%

 

 

 

 

 

 

 

 

 

 

 

 

Segment Assets

 

$

1,439

 

$

1,449

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return On Invested Capital (a) , %

 

17

%

14

%

 

 

 

 

 

 

 

 

 

FY 2011

 

 

 

Q1

 

Q2

 

Q3

 

Q4

 

Total

 

Orders

 

$

376

 

$

406

 

$

382

 

$

433

 

$

1,597

 

 

 

 

 

 

 

 

 

 

 

 

 

Net revenue

 

$

338

 

$

392

 

$

383

 

$

402

 

$

1,515

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross margin

 

52.1

%

50.4

%

49.8

%

49.5

%

50.4

%

 

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

$

42

 

$

52

 

$

51

 

$

57

 

$

202

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating margin %

 

12.3

%

13.4

%

13.3

%

14.2

%

13.3

%

 

 

 

 

 

 

 

 

 

 

 

 

Segment Assets

 

$

1,377

 

$

1,497

 

$

1,500

 

$

1,479

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return On Invested Capital (a) , %

 

14

%

16

%

15

%

16

%

 

 

 

 

 

FY 2010

 

 

 

Q1

 

Q2

 

Q3

 

Q4

 

Total

 

Orders

 

$

275

 

$

269

 

$

333

 

$

402

 

$

1,279

 

 

 

 

 

 

 

 

 

 

 

 

 

Net revenue

 

$

278

 

$

267

 

$

314

 

$

367

 

$

1,226

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross margin

 

54.0

%

53.5

%

52.8

%

50.1

%

52.4

%

 

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

$

52

 

$

41

 

$

52

 

$

58

 

$

203

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating margin %

 

18.7

%

15.2

%

16.7

%

16.0

%

16.6

%

 

 

 

 

 

 

 

 

 

 

 

 

Segment Assets

 

$

715

 

$

705

 

$

1,106

 

$

1,168

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return On Invested Capital (a) , %

 

35

%

27

%

19

%

22

%

 

 

 

 

 

FY 2009

 

 

 

Q1

 

Q2

 

Q3

 

Q4

 

Total

 

Orders

 

$

255

 

$

231

 

$

237

 

$

291

 

$

1,014

 

 

 

 

 

 

 

 

 

 

 

 

 

Net revenue

 

$

255

 

$

237

 

$

235

 

$

261

 

$

988

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross margin

 

54.3

%

53.4

%

51.9

%

53.5

%

53.3

%

 

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

$

43

 

$

36

 

$

35

 

$

46

 

$

160

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating margin %

 

17.0

%

15.3

%

14.7

%

17.5

%

16.2

%

 

 

 

 

 

 

 

 

 

 

 

 

Segment Assets

 

$

666

 

$

640

 

$

602

 

$

623

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return On Invested Capital (a) , %

 

26

%

25

%

24

%

34

%

 

 

 

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, charges related to the amortization of intangibles, the impact of restructuring charges, acquisition and integration 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.

 

(a) Return On Invested Capital (ROIC) is a non-GAAP measure and is defined as income from operations less other (income) expense and taxes, annualized, divided by the average of the two most recent quarter-end balances of assets less net current liabilities. The reconciliation of ROIC can be found on page 3 of these tables, along with additional information regarding the use of this non-GAAP measure.

 

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.

 

Historical amounts have been reclassified to conform with current period presentation.

 

Page 1


 

AGILENT TECHNOLOGIES, INC.

DIAGNOSTICS AND GENOMICS GROUP

(Unaudited)

 

 

 

FY 2012

 

(In millions, except margins and ROIC data)

 

Q1

 

Q2

 

Q3

 

Q4

 

Total

 

Orders

 

$

69

 

$

66

 

 

 

 

 

$

135

 

 

 

 

 

 

 

 

 

 

 

 

 

Net revenue

 

$

66

 

$

74

 

 

 

 

 

$

140

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross margin

 

62.6

%

65.3

%

 

 

 

 

64.0

%

 

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

$

8

 

$

15

 

 

 

 

 

$

23

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating margin %

 

11.9

%

20.1

%

 

 

 

 

16.2

%

 

 

 

 

 

 

 

 

 

 

 

 

Segment Assets

 

$

381

 

$

377

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return On Invested Capital (a) , %

 

9

%

15

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FY 2011

 

 

 

Q1

 

Q2

 

Q3

 

Q4

 

Total

 

Orders

 

$

66

 

$

73

 

$

63

 

$

76

 

$

278

 

 

 

 

 

 

 

 

 

 

 

 

 

Net revenue

 

$

66

 

$

72

 

$

70

 

$

69

 

$

277

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross margin

 

59.7

%

61.8

%

59.2

%

63.2

%

61.0

%

 

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

$

6

 

$

9

 

$

9

 

$

11

 

$

35

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating margin %

 

9.5

%

12.2

%

12.6

%

15.5

%

12.5

%

 

 

 

 

 

 

 

 

 

 

 

 

Segment Assets

 

$

330

 

$

355

 

$

355

 

$

358

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return On Invested Capital (a) , %

 

7

%

10

%

10

%

11

%

 

 

 

 

 

FY 2010

 

 

 

Q1

 

Q2

 

Q3

 

Q4

 

Total

 

Orders

 

$

61

 

$

62

 

$

58

 

$

66

 

$

247

 

 

 

 

 

 

 

 

 

 

 

 

 

Net revenue

 

$

62

 

$

67

 

$

60

 

$

64

 

$

253

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross margin

 

56.6

%

60.8

%

59.4

%

58.0

%

58.7

%

 

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

$

3

 

$

7

 

$

4

 

$

4

 

$

18

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating margin %

 

5.3

%

10.6

%

6.4

%

5.9

%

7.1

%

 

 

 

 

 

 

 

 

 

 

 

 

Segment Assets

 

$

447

 

$

402

 

$

387

 

$

396

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return On Invested Capital (a) , %

 

3

%

6

%

3

%

3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FY 2009

 

 

 

Q1

 

Q2

 

Q3

 

Q4

 

Total

 

Orders

 

$

52

 

$

56

 

$

51

 

$

61

 

$

220

 

 

 

 

 

 

 

 

 

 

 

 

 

Net revenue

 

$

54

 

$

61

 

$

58

 

$

58

 

$

231

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross margin

 

55.8

%

59.7

%

58.3

%

58.4

%

58.1

%

 

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

$

1

 

$

8

 

$

4

 

$

1

 

$

14

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating margin %

 

1.7

%

12.5

%

7.8

%

2.1

%

6.2

%

 

 

 

 

 

 

 

 

 

 

 

 

Segment Assets

 

407

 

412

 

395

 

397

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return On Invested Capital (a) , %

 

1

%

8

%

4

%

2

%

 

 

 

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, charges related to the amortization of intangibles, the impact of restructuring charges, acquisition and integration 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.

 

(a) Return On Invested Capital (ROIC) is a non-GAAP measure and is defined as income from operations less other (income) expense and taxes, annualized, divided by the average of the two most recent quarter-end balances of assets less net current liabilities. The reconciliation of ROIC can be found on page 4 of these tables, along with additional information regarding the use of this non-GAAP measure.

 

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.

 

Historical amounts have been reclassified to conform with current period presentation.

 

Page 2


 

AGILENT TECHNOLOGIES, INC.

LIFE SCIENCES RETURN ON INVESTED CAPITAL

 

(Unaudited)

 

 

 

FY 2012

 

FY 2011

 

FY 2010

 

FY 2009

 

(in millions)

 

Q1

 

Q2

 

Q1

 

Q2

 

Q3

 

Q4

 

Q1

 

Q2

 

Q3

 

Q4

 

Q1

 

Q2

 

Q3

 

Q4

 

Numerator:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted income from operations

 

$

58

 

$

44

 

$

42

 

$

52

 

$

51

 

$

57

 

$

52

 

$

41

 

$

52

 

$

58

 

$

43

 

$

36

 

$

35

 

$

46

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxes and other (income)/expense

 

10

 

5

 

7

 

7

 

8

 

9

 

9

 

7

 

10

 

9

 

10

 

4

 

7

 

8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment return

 

48

 

39

 

35

 

45

 

43

 

48

 

43

 

34

 

42

 

49

 

33

 

32

 

28

 

38

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment return annualized

 

$

192

 

$

156

 

$

140

 

$

180

 

$

172

 

$

192

 

$

172

 

$

136

 

$

168

 

$

195

 

$

132

 

$

128

 

$

112

 

$

152

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Denominator:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment assets (a)

 

$

1,439

 

$

1,449

 

$

1,377

 

$

1,497

 

$

1,500

 

$

1,479

 

$

715

 

$

705

 

$

1,106

 

$

1,168

 

$

666

 

$

640

 

$

602

 

$

623

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net current liabilities (b)

 

284

 

314

 

272

 

331

 

306

 

320

 

190

 

208

 

254

 

285

 

148

 

152

 

154

 

177

 

Invested capital

 

$

1,155

 

$

1,135

 

$

1,105

 

$

1,166

 

$

1,194

 

$

1,159

 

$

525

 

$

497

 

$

852

 

$

883

 

$

518

 

$

488

 

$

448

 

$

446

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average invested capital

 

$

1,157

 

$

1,145

 

$

994

 

$

1,136

 

$

1,180

 

$

1,176

 

$

485

 

$

511

 

$

886

 

$

868

 

$

503

 

$

503

 

$

468

 

$

447

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ROIC

 

17

%

14

%

14

%

16

%

15

%

16

%

35

%

27

%

19

%

22

%

26

%

25

%

24

%

34

%

 

ROIC calculation:(annualized current quarter segment return)/(average of the two most recent quarter-end balances of Segment Invested Capital)

 

(a) Segment assets consist of inventory, accounts receivable, property plant and equipment, gross goodwill and other intangibles, deferred taxes and allocated corporate assets.

 

(b) Includes accounts payable, employee compensation and benefits,deferred revenue, certain other accrued liabilities and allocated corporate liabilities.

 

Historical amounts were reclassified to conform with current period presentation.

 

Return on invested capital (ROIC) is a non-GAAP measure that management believes provides useful supplemental information for management and the investor.  ROIC is a tool by which we track how much value we are creating for our shareholders.  Management uses ROIC as a performance measure for our businesses, and our senior managers’ compensation is linked to ROIC improvements as well as other performance criteria.  We believe that ROIC provides our management with a means to analyze and improve their business, measuring segment profitability in relation to net asset investments.  We acknowledge that ROIC may not be calculated the same way by every company. 

 

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.

 

Page 3


 

AGILENT TECHNOLOGIES, INC.

DIAGNOSTICS AND GENOMICS RETURN ON INVESTED CAPITAL

 

(Unaudited)

 

 

 

FY 2012

 

FY 2011

 

FY 2010

 

FY 2009

 

(in millions)

 

Q1

 

Q2

 

Q1

 

Q2

 

Q3

 

Q4

 

Q1

 

Q2

 

Q3

 

Q4

 

Q1

 

Q2

 

Q3

 

Q4

 

Numerator:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted income from operations

 

$

8

 

$

15

 

$

6

 

$

9

 

$

9

 

$

11

 

$

3

 

$

7

 

$

4

 

$

4

 

$

1

 

$

8

 

$

4

 

$

1

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxes and other (income)/expense

 

1

 

2

 

—

 

2

 

1

 

2

 

—

 

1

 

1

 

1

 

—

 

1

 

—

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment return

 

7

 

13

 

6

 

7

 

8

 

9

 

3

 

6

 

3

 

3

 

1

 

7

 

4

 

1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment return annualized

 

$

28

 

$

52

 

$

24

 

$

29

 

$

32

 

$

36

 

$

12

 

$

24

 

$

12

 

$

12

 

$

4

 

$

29

 

$

16

 

$

6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Denominator:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment assets (a)

 

$

381

 

$

377

 

$

330

 

$

355

 

$

355

 

$

358

 

$

447

 

$

402

 

$

387

 

$

396

 

$

407

 

$

412

 

$

395

 

$

397

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net current liabilities (b)

 

40

 

44

 

40

 

44

 

41

 

44

 

31

 

37

 

36

 

43

 

25

 

27

 

25

 

30

 

Invested capital

 

$

341

 

$

333

 

$

290

 

$

311

 

$

314

 

$

314

 

$

416

 

$

365

 

$

351

 

$

353

 

$

382

 

$

385

 

$

370

 

$

367

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average invested capital

 

$

327

 

$

337

 

$

322

 

$

300

 

$

312

 

$

314

 

$

391

 

$

390

 

$

358

 

$

352

 

$

354

 

$

383

 

$

377

 

$

368

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ROIC

 

9

%

15

%

7

%

10

%

10

%

11

%

3

%

6

%

3

%

3

%

1

%

8

%

4

%

2

%

 

ROIC calculation:(annualized current quarter segment return)/(average of the two most recent quarter-end balances of Segment Invested Capital)

 

(a) Segment assets consist of inventory, accounts receivable, property plant and equipment, gross goodwill and other intangibles, deferred taxes and allocated corporate assets.

 

(b) Includes accounts payable, employee compensation and benefits, certain other accrued liabilities and allocated corporate liabilities.

 

Historical amounts were reclassified to conform with current period presentation.

 

Return on invested capital (ROIC) is a non-GAAP measure that management believes provides useful supplemental information for management and the investor.  ROIC is a tool by which we track how much value we are creating for our shareholders.  Management uses ROIC as a performance measure for our businesses, and our senior managers’ compensation is linked to ROIC improvements as well as other performance criteria.  We believe that ROIC provides our management with a means to analyze and improve their business, measuring segment profitability in relation to net asset investments.  We acknowledge that ROIC may not be calculated the same way by every company. 

 

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.

 

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