EX-99.1 2 ex991reconciliationasc606t.htm EXHIBIT 99.1 Exhibit
Exhibit 99.1

Avaya Holdings Corp.
Reconciliation of ASC 606 to ASC 605 GAAP results
Three months ended December 31, 2018
(Unaudited; in millions)




 
 
Q1 FY19 results
under ASC 606
 
ASC 606 Impact
 
Q1 FY19 results
under ASC 605
REVENUE
 
 
 
 
 
 
Products
 
$
324

 
$
30

 
$
294

Services
 
414

 
20

 
394

 
 
738

 
50

 
688

COSTS
 
 
 
 
 
 
Products:
 
 
 
 
 
 
Costs
 
115

 
6

 
109

Amortization of technology intangible assets
 
43

 
—

 
43

Services
 
173

 
6

 
167

 
 
331

 
12

 
319

GROSS PROFIT
 
407

 
38

 
369

OPERATING EXPENSES
 
 
 
 
 
 
Selling, general and administrative
 
257

 
(8
)
 
265

Research and development
 
53

 
—

 
53

Amortization of intangible assets
 
40

 
—

 
40

Restructuring charges, net
 
7

 
—

 
7

 
 
357

 
(8
)
 
365

OPERATING INCOME
 
$
50

 
$
46

 
$
4