EX-12 5 ex-12x10312018.htm EXHIBIT 12 Exhibit


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,
 
 
2018
 
2017
 
2016
 
2015
 
2014
 
 
In millions, except ratios
Earnings:
 
 

 
 

 
 

 
 

 
 

Earnings from continuing operations before taxes
 
$
268

 
$
272

 
$
3,860

 
$
1,935

 
$
2,833

Adjustments:
 
 

 
 

 
 

 
 

 
 

Non-controlling interests in the income of subsidiaries with fixed charges
 
6

 
9

 
46

 
46

 
42

Undistributed (earnings) loss of equity method investees
 
(38
)
 
23

 
76

 
2

 
2

Distributed earnings of equity method investees
 
164

 
98

 
—

 
—

 
—

Fixed charges
 
751

 
692

 
644

 
395

 
416

 

$
1,151


$
1,094


$
4,626


$
2,378


$
3,293

Fixed charges:
 
 

 
 

 
 

 
 

 
 

Total interest expense, including interest expense on borrowings, amortization of debt discount and premium on all indebtedness and other
 
$
632

 
$
610

 
$
558

 
$
255

 
$
292

Interest included in rent
 
119

 
82

 
86

 
140

 
124

Total fixed charges

$
751


$
692


$
644


$
395


$
416

Ratio of earnings to fixed charges (excess of fixed charges over earnings)               
 
1.5x

 
1.6x

 
7.2x

 
6.0x

 
7.9x

_______________________________________________________________________________
(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 (earnings) 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.