Exhibit 99.1
TANDEM COMPUTERS INCORPORATED AND SUBSIDIARIES
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September 30,
1996 December 31, 1996
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Historical
Historical Consolidated Pro-Forma
Consolidated Balance Sheet Pro-Forma Consolidated
(In thousands except per share amount) Balance Sheet (Unaudited) Adjustments Balance Sheet
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Assets
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Current assets
Cash and equivalents $ 87,813 $ 128,326 $ 93,200 (a) $ 221,526
Accounts receivable, net 475,464 399,510 399,510
Current portion of lease receivables 74,624 75,738 75,738
Inventories 115,320 119,140 119,140
Prepaid expenses and other 43,749 65,307 11,800 (a) 77,107
Net current assets of discontinued operations 62,593 60,985 (60,985) (d) --
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Total current assets 859,563 849,006 44,015 893,021
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Property, plant, and equipment, at cost 1,246,950 1,255,413 1,255,413
Accumulated depreciation and amortization (696,140) (721,634) (721,634)
Net property, plant, and equipment of discontinued
operations 30,402 29,533 (29,533) (d) --
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Net property, plant, and equipment 581,212 563,312 (29,533) 533,779
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Lease receivables 86,618 91,214 91,214
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Other assets 217,580 230,311 1,600 (b) 231,911
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Total assets $1,744,973 $1,733,843 $ 16,082 $1,749,925
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Liabilities and stockholders' investment
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Current liabilities
Accounts payable $ 135,821 $ 133,099 $ 133,099
Accrued liabilities 353,765 326,213 $ 13,096 (c) 339,309
Current maturities of long-term obligations 93,740 91,195 91,195
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Total current liabilities 583,326 550,507 13,096 563,603
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Long-term obligations 75,225 77,171 77,171
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Stockholders' investment
Common Stock $.025 par value, authorized 400,000
shares, outstanding 122,020 shares at December 31
and 121,318 shares at September 30 3,033 3,050 3,050
Additional paid-in capital 710,264 717,474 717,474
Retained earnings 420,363 432,043 2,986 435,029
Accumulated translation adjustments 3,629 4,460 4,460
Treasury stock, at cost (50,867) (50,862) (50,862)
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Total stockholders' investment 1,086,422 1,106,165 2,986 1,109,151
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Total liabilities and stockholders' investment $1,744,973 $1,733,843 $ 16,082 $1,749,925
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(a) Represents sale proceeds of $118 million (cash and escrow deposit) received
by the Company at closing, less $13 million estimated cash disbursements to
or on behalf of UB Networks between the effective date and January 17, 1997.
(b) Represents miscellaneous assets UB Networks retained by the Company.
(c) Represents estimated net liability for UB Networks employee transition
arrangements and other costs and expenses related to the transaction.
(d) Represents elimination of the net assets of UB Networks.
