Baker Hughes, a GE company
|
|
Baker Hughes, a GE company, LLC
|
|
|
|
|
|
|
|
|
|
|
|
Delaware
|
|
1-38143
|
|
81-4403168
|
|
Delaware
|
|
1-09397
|
|
76-0207995
|
(State of Incorporation)
|
|
(Commission File No.)
|
|
(I.R.S. Employer
Identification No.)
|
|
(State of Incorporation)
|
|
(Commission File No.)
|
|
(I.R.S. Employer
Identification No.)
|
17021 Aldine Westfield Road, Houston, Texas
|
77073
|
||
(Address of Principal Executive Offices)
|
(Zip Code)
|
¨
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
¨
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
¨
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
¨
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
99.1*
|
News Release of Baker Hughes, a GE company dated October 20, 2017 - Baker Hughes, a GE company Announces Third Quarter Results
|
99.2 *
|
News Release of Baker Hughes, a GE company dated October 20, 2017 - Reconciliation of GAAP and Combined Business Basis measures used in Earnings Release
|
|
|
|
|
|
|
|
BAKER HUGHES, A GE COMPANY
|
||
|
|
|
||
Dated: October 20, 2017
|
|
By:
|
|
/s/ Lee Whitley
|
|
|
|
|
Lee Whitley
Corporate Secretary
|
|
|
|
|
|
|
|
BAKER HUGHES, A GE COMPANY, LLC
|
||
|
|
|
||
Dated: October 20, 2017
|
|
By:
|
|
/s/ Lee Whitley
|
|
|
|
|
Lee Whitley
Corporate Secretary
|
|
|
|
Exhibit No.
|
|
Description
|
|
||
|
|
News Release
|
•
|
Orders of $5.7 billion for the quarter, up 2% sequentially and 18% year-over-year on a combined business basis*
|
•
|
Revenue of $5.4 billion for the quarter, down 1% sequentially and flat year-over-year on a combined business basis
|
•
|
GAAP operating loss was $122 million for the quarter decreased 17% sequentially and decreased 22% year-over-year on a combined business basis
|
•
|
Adjusted operating income (a non-GAAP measure) was $240 million for the quarter, up 105% sequentially and down 13% year-over-year on a combined business basis
|
•
|
GAAP net loss per share of $(0.24) for the quarter which included $0.29 per share of adjusting items
|
•
|
Basic loss per share were $(0.24) for the quarter, adjusted basic earnings per share (a non-GAAP measure) were $0.05
|
•
|
Cash flows used in operating activities were $(195) million for the quarter. Free cash flow (a non-GAAP measure) for the quarter was $(405) million
|
Baker Hughes, a GE company News Release
|
|
Baker Hughes, a GE company Announces Third
Quarter
Results
|
|
|
Three Months Ended
|
|
|
|||||||||
|
|
Combined Business Basis
|
|
Variance
|
||||||||
(in millions except per share amounts)
|
September 30, 2017
|
June 30, 2017
|
September 30, 2016
|
|
Sequential
|
Year-over-year
|
||||||
Orders
|
$
|
5,722
|
|
$
|
5,590
|
|
$
|
4,831
|
|
|
2%
|
18%
|
Revenue
|
5,375
|
|
5,412
|
|
5,375
|
|
|
(1)%
|
—%
|
|||
Operating loss
|
(122
|
)
|
(147
|
)
|
(156
|
)
|
|
17%
|
22%
|
|||
Adjusted operating income (non-GAAP)*
|
240
|
|
117
|
|
275
|
|
|
105%
|
(13)%
|
|||
Net loss attributable to BHGE
|
(104
|
)
|
N/A
|
|
N/A
|
|
|
N/A
|
N/A
|
|||
Adjusted net earnings (non-GAAP) attributable to BHGE*
|
23
|
|
N/A
|
|
N/A
|
|
|
N/A
|
N/A
|
|||
EPS attributable to Class A shareholders
|
(0.24
|
)
|
N/A
|
|
N/A
|
|
|
N/A
|
N/A
|
|||
Adjusted EPS (non-GAAP)* attributable to Class A shareholders
|
0.05
|
|
N/A
|
|
N/A
|
|
|
N/A
|
N/A
|
|||
Cash flow used in operations
|
(195
|
)
|
N/A
|
|
N/A
|
|
|
N/A
|
N/A
|
|||
Free cash flow (non-GAAP)*
|
(405
|
)
|
N/A
|
|
N/A
|
|
|
N/A
|
N/A
|
Baker Hughes, a GE company News Release
|
|
Baker Hughes, a GE company Announces Third
Quarter
Results
|
|
Baker Hughes, a GE company News Release
|
|
Baker Hughes, a GE company Announces Third
Quarter
Results
|
|
Baker Hughes, a GE company News Release
|
|
Baker Hughes, a GE company Announces Third
Quarter
Results
|
|
|
Three Months Ended
|
|
|
|||||||||||
(in millions)
|
|
Combined Business Basis
|
|
Variance
|
||||||||||
Consolidated segment orders
|
September 30, 2017
|
June 30, 2017
|
September 30, 2016
|
|
Sequential
|
Year-over-year
|
||||||||
Oilfield Services
|
$
|
2,635
|
|
$
|
2,530
|
|
$
|
2,448
|
|
|
4
|
%
|
8
|
%
|
Oilfield Equipment
|
760
|
|
797
|
|
524
|
|
|
(5
|
)%
|
45
|
%
|
|||
Turbomachinery & Process Solutions
|
1,410
|
|
1,589
|
|
1,218
|
|
|
(11
|
)%
|
16
|
%
|
|||
Digital Solutions
|
917
|
|
674
|
|
641
|
|
|
36
|
%
|
43
|
%
|
|||
Total
|
$
|
5,722
|
|
$
|
5,590
|
|
$
|
4,831
|
|
|
2
|
%
|
18
|
%
|
|
Three Months Ended
|
|
|
|||||||||||
(in millions)
|
|
Combined Business Basis
|
|
Variance
|
||||||||||
Consolidated segment revenue
|
September 30, 2017
|
June 30, 2017
|
September 30, 2016
|
|
Sequential
|
Year-over-year
|
||||||||
Oilfield Services
|
$
|
2,635
|
|
$
|
2,528
|
|
$
|
2,426
|
|
|
4
|
%
|
9
|
%
|
Oilfield Equipment
|
600
|
|
688
|
|
829
|
|
|
(13
|
)%
|
(28
|
)%
|
|||
Turbomachinery & Process Solutions
|
1,511
|
|
1,589
|
|
1,480
|
|
|
(5
|
)%
|
2
|
%
|
|||
Digital Solutions
|
629
|
|
607
|
|
640
|
|
|
4
|
%
|
(2
|
)%
|
|||
Total
|
$
|
5,375
|
|
$
|
5,412
|
|
$
|
5,375
|
|
|
(1
|
)%
|
—
|
%
|
Baker Hughes, a GE company News Release
|
|
Baker Hughes, a GE company Announces Third
Quarter
Results
|
|
|
Three Months Ended
|
|
|
|
||||||||||
(in millions)
|
|
Combined Business Basis
|
|
Variance
|
||||||||||
Segment operating income (loss)
|
September 30, 2017
|
June 30, 2017
|
September 30, 2016
|
|
Sequential
|
Year-over-year
|
||||||||
Oilfield Services
|
$
|
75
|
|
$
|
27
|
|
$
|
(40
|
)
|
|
F
|
|
F
|
|
Oilfield Equipment
|
(43
|
)
|
15
|
|
61
|
|
|
U
|
|
U
|
|
|||
Turbomachinery & Process Solutions
|
210
|
|
134
|
|
258
|
|
|
57
|
%
|
(19
|
)%
|
|||
Digital Solutions
|
87
|
|
50
|
|
109
|
|
|
74
|
%
|
(20
|
)%
|
|||
Total segment operating income
|
$
|
329
|
|
$
|
226
|
|
$
|
388
|
|
|
46
|
%
|
(15
|
)%
|
Corporate
|
(89
|
)
|
(109
|
)
|
(113
|
)
|
|
18
|
%
|
21
|
%
|
|||
Inventory impairment
|
(12
|
)
|
(4
|
)
|
(24
|
)
|
|
U
|
|
50
|
%
|
|||
Restructuring, impairment & other charges
|
(191
|
)
|
(126
|
)
|
(388
|
)
|
|
(52
|
)%
|
51
|
%
|
|||
Goodwill impairment
|
—
|
|
—
|
|
(17
|
)
|
|
NA
|
|
100
|
%
|
|||
Merger and related costs
|
(159
|
)
|
(134
|
)
|
(2
|
)
|
|
(19
|
)%
|
U
|
|
|||
Operating loss
|
$
|
(122
|
)
|
$
|
(147
|
)
|
$
|
(156
|
)
|
|
17
|
%
|
22
|
%
|
Adjusted operating income*
|
$
|
240
|
|
$
|
117
|
|
$
|
275
|
|
|
105
|
%
|
(13
|
)%
|
Baker Hughes, a GE company News Release
|
|
Baker Hughes, a GE company Announces Third
Quarter
Results
|
|
Baker Hughes, a GE company News Release
|
|
Baker Hughes, a GE company Announces Third
Quarter
Results
|
|
|
Three Months Ended
|
|
|
|||||||||||
(in millions)
|
|
Combined Business Basis
|
|
Variance
|
||||||||||
Oilfield Services
|
September 30, 2017
|
June 30, 2017
|
September 30, 2016
|
|
Sequential
|
Year-over-year
|
||||||||
Revenue
|
$
|
2,635
|
|
$
|
2,528
|
|
$
|
2,426
|
|
|
4
|
%
|
9
|
%
|
Operating income/(loss)
|
$
|
75
|
|
$
|
27
|
|
$
|
(40
|
)
|
|
F
|
|
F
|
|
Operating income/(loss) margin
|
2.8
|
%
|
1.1
|
%
|
(1.6
|
)%
|
|
1.7pts
|
|
4.4pts
|
|
(in millions)
|
Three Months Ended
|
|
Variance
|
|||||||||||
Oilfield Equipment
|
September 30, 2017
|
June 30, 2017
|
September 30, 2016
|
|
Sequential
|
Year-over-year
|
||||||||
Orders
|
$
|
760
|
|
$
|
797
|
|
$
|
524
|
|
|
(5
|
)%
|
45
|
%
|
Revenue
|
$
|
600
|
|
$
|
688
|
|
$
|
829
|
|
|
(13
|
)%
|
(28
|
)%
|
Operating income/(loss)
|
$
|
(43
|
)
|
$
|
15
|
|
$
|
61
|
|
|
U
|
|
U
|
|
Operating income/(loss) margin
|
(7.2
|
)%
|
2.2
|
%
|
7.4
|
%
|
|
(9.4)pts
|
|
(14.6)pts
|
|
Baker Hughes, a GE company News Release
|
|
Baker Hughes, a GE company Announces Third
Quarter
Results
|
|
|
Three Months Ended
|
|
|
|||||||||||
(in millions)
|
|
Combined Business Basis
|
|
Variance
|
||||||||||
Digital Solutions
|
September 30, 2017
|
June 30, 2017
|
September 30, 2016
|
|
Sequential
|
Year-over-year
|
||||||||
Orders
|
$
|
917
|
|
$
|
674
|
|
$
|
641
|
|
|
36
|
%
|
43
|
%
|
Revenue
|
$
|
629
|
|
$
|
607
|
|
$
|
640
|
|
|
4
|
%
|
(2
|
)%
|
Operating income
|
$
|
87
|
|
$
|
50
|
|
$
|
109
|
|
|
74
|
%
|
(20
|
)%
|
Operating income margin
|
13.8
|
%
|
8.2
|
%
|
17.0
|
%
|
|
5.6pts
|
|
(3.2)pts
|
|
Baker Hughes, a GE company News Release
|
|
Baker Hughes, a GE company Announces Third
Quarter
Results
|
|
Baker Hughes, a GE company News Release
|
|
Baker Hughes, a GE company Announces Third
Quarter
Results
|
|
|
Three Months Ended
|
||||||||
|
|
Combined Business Basis
|
|||||||
(in millions)
|
September 30, 2017
|
June 30, 2017
|
September 30, 2016
|
||||||
Operating loss (GAAP)
|
$
|
(122
|
)
|
$
|
(147
|
)
|
$
|
(156
|
)
|
Change in control charges
|
82
|
|
—
|
|
—
|
|
|||
Merger-related costs
|
39
|
|
98
|
|
2
|
|
|||
Integration costs
|
38
|
|
36
|
|
—
|
|
|||
Litigation settlements
|
—
|
|
67
|
|
41
|
|
|||
Restructuring
|
191
|
|
59
|
|
364
|
|
|||
Inventory impairment
|
12
|
|
4
|
|
24
|
|
|||
Total operating income adjustments
|
$
|
362
|
|
$
|
264
|
|
$
|
431
|
|
Adjusted operating income (non-GAAP)
|
$
|
240
|
|
$
|
117
|
|
$
|
275
|
|
(in millions)
|
Three Months Ended September 30, 2017
|
||
Net loss attributable to BHGE (GAAP)
|
$
|
(104
|
)
|
Total identified items
|
362
|
|
|
Tax on total identified items
|
(23
|
)
|
|
Total adjustments, net of income tax
|
339
|
|
|
Less: adjustments attributable to noncontrolling interests
|
212
|
|
|
Adjustments attributable to BHGE
|
$
|
127
|
|
Adjusted net income attributable to BHGE (non-GAAP)
|
$
|
23
|
|
|
|
||
|
|
||
Denominator:
|
|
||
Weighted-average shares of Class A common stock outstanding basic (millions)
|
428
|
|
|
Adjusted earnings per Class A share—basic and diluted
|
$
|
0.05
|
|
(In millions)
|
Three Months Ended September 30, 2017
|
||
Cash flow from operating activities (GAAP)
|
$
|
(195
|
)
|
Add: cash used in capital expenditures, net of proceeds from disposal of assets
|
(210
|
)
|
|
Free cash flow (non-GAAP)*
|
$
|
(405
|
)
|
Baker Hughes, a GE company News Release
|
|
Baker Hughes, a GE company Announces Third
Quarter
Results
|
|
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
||||||||||
(In millions, except per share amounts)
|
2017
|
2016
|
2017
|
2016
|
||||||||
Revenue
|
$
|
5,375
|
|
$
|
3,024
|
|
$
|
11,496
|
|
$
|
9,753
|
|
Costs and expenses:
|
|
|
|
|
||||||||
Cost of revenue
|
4,355
|
|
2,294
|
|
9,159
|
|
7,440
|
|
||||
Selling, general and administrative expenses
|
792
|
|
475
|
|
1,750
|
|
1,476
|
|
||||
Restructuring, impairment and other
|
191
|
|
77
|
|
292
|
|
452
|
|
||||
Merger and related costs
|
159
|
|
2
|
|
310
|
|
10
|
|
||||
Total costs and expenses
|
5,497
|
|
2,848
|
|
11,511
|
|
9,378
|
|
||||
Operating income (loss)
|
(122
|
)
|
176
|
|
(15
|
)
|
375
|
|
||||
Other non operating income (loss), net
|
(3
|
)
|
6
|
|
65
|
|
18
|
|
||||
Interest expense, net
|
(42
|
)
|
(21
|
)
|
(75
|
)
|
(74
|
)
|
||||
Income (loss) before income taxes and equity in loss of affiliate
|
(167
|
)
|
161
|
|
(25
|
)
|
319
|
|
||||
Equity in loss of affiliate
|
(13
|
)
|
—
|
|
(13
|
)
|
—
|
|
||||
Provision for income taxes
|
(93
|
)
|
(70
|
)
|
(122
|
)
|
(132
|
)
|
||||
Net income (loss)
|
(273
|
)
|
91
|
|
(160
|
)
|
187
|
|
||||
Less: Net income (loss) attributable to GE Oil & Gas pre-merger
|
—
|
|
96
|
|
109
|
|
255
|
|
||||
Less: Net income (loss) attributable to noncontrolling interests
|
(169
|
)
|
(5
|
)
|
(165
|
)
|
(68
|
)
|
||||
Net income (loss) attributable to BHGE
|
$
|
(104
|
)
|
$
|
—
|
|
$
|
(104
|
)
|
$
|
—
|
|
|
|
|
|
|
||||||||
Per share amounts (for the period from July 3, 2017 to September 30, 2017):
|
|
|
|
|||||||||
Basic and diluted loss per Class A common share
|
$
|
(0.24
|
)
|
|
|
$
|
(0.24
|
)
|
|
|
||
|
|
|
|
|
|
|
|
|
||||
Cash dividend per Class A common share
|
$
|
0.17
|
|
|
|
$
|
0.17
|
|
|
|
||
Special dividend per Class A common share
|
$
|
17.50
|
|
|
|
$
|
17.50
|
|
|
|
Baker Hughes, a GE company News Release
|
|
Baker Hughes, a GE company Announces Third
Quarter
Results
|
|
(In millions)
|
September 30, 2017
|
December 31, 2016
|
||||
ASSETS
|
||||||
Current assets:
|
|
|
||||
Cash and equivalents
|
$
|
4,777
|
|
$
|
981
|
|
Current receivables, net
|
5,194
|
|
2,563
|
|
||
Inventories, net
|
5,309
|
|
3,224
|
|
||
All other current assets
|
1,301
|
|
633
|
|
||
Total current assets
|
16,581
|
|
7,401
|
|
||
Property, plant and equipment - less accumulated depreciation
|
6,255
|
|
2,325
|
|
||
Goodwill
|
20,395
|
|
6,680
|
|
||
Other intangible assets, net
|
6,826
|
|
2,449
|
|
||
Contract assets
|
2,761
|
|
1,967
|
|
||
All other assets
|
1,992
|
|
899
|
|
||
Total assets
|
$
|
54,810
|
|
$
|
21,721
|
|
LIABILITIES AND EQUITY
|
||||||
Current liabilities:
|
|
|
||||
Accounts payable
|
$
|
3,203
|
|
$
|
1,898
|
|
Short-term debt and current portion of long-term debt
|
1,866
|
|
239
|
|
||
Progress collections
|
1,543
|
|
1,596
|
|
||
All other current liabilities
|
2,120
|
|
1,201
|
|
||
Total current liabilities
|
8,732
|
|
4,934
|
|
||
Long-term debt
|
3,039
|
|
38
|
|
||
Liabilities for pensions and other postretirement benefits
|
1,262
|
|
519
|
|
||
All other liabilities
|
1,629
|
|
1,375
|
|
||
Equity
|
40,147
|
|
14,855
|
|
||
Total liabilities and equity
|
$
|
54,809
|
|
$
|
21,721
|
|
Baker Hughes, a GE company News Release
|
|
Baker Hughes, a GE company Announces Third
Quarter
Results
|
|
|
Nine Months Ended September 30,
|
|||||
(In millions)
|
2017
|
2016
|
||||
Cash flows from operating activities:
|
|
|
||||
Net income (loss)
|
$
|
(160
|
)
|
$
|
187
|
|
Less: Net loss attributable to noncontrolling interests
|
(165
|
)
|
(68
|
)
|
||
Net income after noncontrolling interests
|
5
|
|
255
|
|
||
Adjustments to reconcile net income (loss) to net cash flows from operating activities:
|
|
|
||||
Depreciation and amortization
|
716
|
|
439
|
|
||
Working capital and other operating items, net
|
(1,306
|
)
|
(889
|
)
|
||
Net cash flows used in operating activities
|
(585
|
)
|
(195
|
)
|
||
Cash flows from investing activities:
|
|
|
||||
Expenditures for capital assets
|
(417
|
)
|
(330
|
)
|
||
Proceeds from disposal of assets
|
76
|
|
21
|
|
||
Net cash received from acquisitions
|
(3,365
|
)
|
(1
|
)
|
||
Other investing items, net
|
(173
|
)
|
(36
|
)
|
||
Net cash flows used in investing activities
|
(3,879
|
)
|
(346
|
)
|
||
Cash flows from financing activities:
|
|
|
||||
Dividends paid
|
(76
|
)
|
—
|
|
||
Distributions to noncontrolling interest
|
(122
|
)
|
—
|
|
||
Contribution received from GE
|
7,400
|
|
—
|
|
||
Other financing items, net
|
1,010
|
|
229
|
|
||
Net cash flows from financing activities
|
8,212
|
|
229
|
|
||
Effect of currency exchange rate changes on cash and equivalents
|
48
|
|
(122
|
)
|
||
Increase/(decrease) in cash and equivalents
|
3,796
|
|
(434
|
)
|
||
Cash and equivalents, beginning of period
|
981
|
|
1,432
|
|
||
Cash and equivalents, end of period
|
$
|
4,777
|
|
$
|
998
|
|
Baker Hughes, a GE company News Release
|
|
Baker Hughes, a GE company Announces Third
Quarter
Results
|
|
Baker Hughes, a GE company News Release
|
|
Baker Hughes, a GE company Announces Third
Quarter
Results
|
|
|
News Release
|
Three months ended September 30, 2016
|
|||||||||||
(in millions)
|
GE O&G
|
|
|
Add: Baker Hughes*
|
|
|
Combined Business Basis
|
|
|||
Consolidated results
|
|
|
|
|
|
||||||
Orders
|
$
|
2,480
|
|
|
$
|
2,351
|
|
|
$
|
4,831
|
|
Revenue
|
3,024
|
|
|
2,351
|
|
|
5,375
|
|
|||
Operating income/(loss) (GAAP)
|
176
|
|
|
(332
|
)
|
|
(156
|
)
|
|||
Operating income/(loss) (adjusted)
|
279
|
|
|
(4
|
)
|
|
275
|
|
|||
Corporate operating loss
|
(75
|
)
|
|
(38
|
)
|
|
(113
|
)
|
|||
Impairment of goodwill
|
—
|
|
|
(17
|
)
|
|
(17
|
)
|
|||
Inventory impairment
|
(24
|
)
|
|
—
|
|
|
(24
|
)
|
|||
Restructuring, impairment & other
|
(77
|
)
|
|
(311
|
)
|
|
(388
|
)
|
|||
Merger and related costs
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
|||
Oilfield Services
|
|
|
|
|
|
||||||
Orders
|
$
|
214
|
|
|
$
|
2,234
|
|
|
$
|
2,448
|
|
Revenue
|
192
|
|
|
2,234
|
|
|
2,426
|
|
|||
Operating income/(loss)
|
(66
|
)
|
|
26
|
|
|
(40
|
)
|
|||
|
|
|
|
|
|
||||||
Digital Solutions
|
|
|
|
|
|
||||||
Orders
|
$
|
524
|
|
|
$
|
117
|
|
|
$
|
641
|
|
Revenue
|
523
|
|
|
117
|
|
|
640
|
|
|||
Operating income/(loss)
|
101
|
|
|
8
|
|
|
109
|
|
Three months ended June 30, 2017
|
|||||||||||
(in millions)
|
GE O&G
|
|
|
Add: Baker Hughes*
|
|
|
Combined Business Basis
|
|
|||
Consolidated results
|
|
|
|
|
|
||||||
Orders
|
$
|
3,188
|
|
|
$
|
2,402
|
|
|
$
|
5,590
|
|
Revenue
|
3,010
|
|
|
2,402
|
|
|
5,412
|
|
|||
Operating income/(loss) (GAAP)
|
(68
|
)
|
|
(79
|
)
|
|
(147
|
)
|
|||
Operating income/(loss) (adjusted)
|
80
|
|
|
37
|
|
|
117
|
|
|||
Corporate operating loss
|
(71
|
)
|
|
(38
|
)
|
|
(109
|
)
|
|||
Inventory impairment
|
(4
|
)
|
|
—
|
|
|
(4
|
)
|
|||
Restructuring, impairment & other
|
(59
|
)
|
|
(67
|
)
|
|
(126
|
)
|
|||
Merger and related costs
|
(85
|
)
|
|
(49
|
)
|
|
(134
|
)
|
|||
Oilfield Services
|
|
|
|
|
|
||||||
Orders
|
$
|
228
|
|
|
$
|
2,302
|
|
|
$
|
2,530
|
|
Revenue
|
226
|
|
|
2,302
|
|
|
2,528
|
|
|||
Operating income/(loss)
|
(65
|
)
|
|
92
|
|
|
27
|
|
|||
|
|
|
|
|
|
||||||
Digital Solutions
|
|
|
|
|
|
||||||
Orders
|
$
|
574
|
|
|
$
|
100
|
|
|
$
|
674
|
|
Revenue
|
507
|
|
|
100
|
|
|
607
|
|
|||
Operating income/(loss)
|
67
|
|
|
(17
|
)
|
|
50
|
|
•
|
Adjusted orders and revenue to exclude royalty income by
$(2) million
in both 2016 and 2017.
|
•
|
Adjusted operating income, both GAAP and adjusted, to exclude other income and royalties originally of $9 million and $2 million in 2016, respectively, and $21 million and $2 million in 2017, respectively.
|
•
|
Reclassified $34 million of inventory market adjustment credits from operating income to restructuring, impairment & other in 2016.
|
•
|
Reclassified $41 million of litigation charges in 2016 and $67 million in 2017 from operating income to restructuring, impairment & other.
|