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8-K - 8-K - Hewlett Packard Enterprise Co | hpe-02122020x8k.htm |
Exhibit 99.1
HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES
FISCAL 2018 SEGMENT INFORMATION (Revised)
(Unaudited)
(In millions)
REVISED AMOUNTS | AMOUNTS AS PREVIOUSLY REPORTED | VARIANCE | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three months ended | Twelve months ended | Three months ended | Twelve months ended | Three months ended | Twelve months ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Jan. 31, 2018 | Apr. 30, 2018 | Jul. 31, 2018 | Oct. 31, 2018 | Oct. 31, 2018 | Jan. 31, 2018 | Apr. 30, 2018 | Jul. 31, 2018 | Oct. 31, 2018 | Oct. 31, 2018 | Jan. 31, 2018 | Apr. 30, 2018 | Jul. 31, 2018 | Oct. 31, 2018 | Oct. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||
Net revenue: (a) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Hybrid IT | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 6,158 | $ | 5,893 | $ | 6,109 | $ | 6,338 | $ | 24,498 | $ | (6,158 | ) | $ | (5,893 | ) | $ | (6,109 | ) | $ | (6,338 | ) | $ | (24,498 | ) | ||||||||||||||||||||||||
Compute | 3,864 | 3,591 | 3,840 | 3,847 | 15,142 | — | — | — | — | — | 3,864 | 3,591 | 3,840 | 3,847 | 15,142 | ||||||||||||||||||||||||||||||||||||||||||||
HPC & MCS | 687 | 703 | 733 | 864 | 2,987 | — | — | — | — | — | 687 | 703 | 733 | 864 | 2,987 | ||||||||||||||||||||||||||||||||||||||||||||
Storage | 1,297 | 1,282 | 1,247 | 1,332 | 5,158 | — | — | — | — | — | 1,297 | 1,282 | 1,247 | 1,332 | 5,158 | ||||||||||||||||||||||||||||||||||||||||||||
A & PS | 285 | 293 | 267 | 273 | 1,118 | — | — | — | — | — | 285 | 293 | 267 | 273 | 1,118 | ||||||||||||||||||||||||||||||||||||||||||||
Intelligent Edge | 681 | 730 | 807 | 795 | 3,013 | 656 | 706 | 785 | 773 | 2,920 | 25 | 24 | 22 | 22 | 93 | ||||||||||||||||||||||||||||||||||||||||||||
Financial Services | 888 | 916 | 928 | 939 | 3,671 | 888 | 916 | 928 | 939 | 3,671 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Corporate Investments | 136 | 134 | 134 | 139 | 543 | 136 | 134 | 134 | 139 | 543 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Total Segments | 7,838 | 7,649 | 7,956 | 8,189 | 31,632 | 7,838 | 7,649 | 7,956 | 8,189 | 31,632 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Elimination of intersegment net revenue and other | (164 | ) | (181 | ) | (192 | ) | (243 | ) | (780 | ) | (164 | ) | (181 | ) | (192 | ) | (243 | ) | (780 | ) | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Total HPE consolidated net revenue | $ | 7,674 | $ | 7,468 | $ | 7,764 | $ | 7,946 | $ | 30,852 | $ | 7,674 | $ | 7,468 | $ | 7,764 | $ | 7,946 | $ | 30,852 | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||||
Earnings before taxes: (a) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Hybrid IT | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 572 | $ | 591 | $ | 624 | $ | 716 | $ | 2,503 | $ | (572 | ) | $ | (591 | ) | $ | (624 | ) | $ | (716 | ) | $ | (2,503 | ) | ||||||||||||||||||||||||
Compute | 287 | 307 | 346 | 366 | 1,306 | — | — | — | — | — | 287 | 307 | 346 | 366 | 1,306 | ||||||||||||||||||||||||||||||||||||||||||||
HPC & MCS | 62 | 84 | 108 | 130 | 384 | — | — | — | — | — | 62 | 84 | 108 | 130 | 384 | ||||||||||||||||||||||||||||||||||||||||||||
Storage | 230 | 199 | 183 | 218 | 830 | — | — | — | — | — | 230 | 199 | 183 | 218 | 830 | ||||||||||||||||||||||||||||||||||||||||||||
A & PS | (21 | ) | (16 | ) | (29 | ) | (13 | ) | (79 | ) | — | — | — | — | — | (21 | ) | (16 | ) | (29 | ) | (13 | ) | (79 | ) | ||||||||||||||||||||||||||||||||||
Intelligent Edge | 48 | 73 | 117 | 101 | 339 | 34 | 56 | 101 | 86 | 277 | 14 | 17 | 16 | 15 | 62 | ||||||||||||||||||||||||||||||||||||||||||||
Financial Services | 71 | 72 | 72 | 71 | 286 | 71 | 72 | 72 | 71 | 286 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Corporate Investments | (26 | ) | (28 | ) | (25 | ) | (12 | ) | (91 | ) | (26 | ) | (28 | ) | (25 | ) | (12 | ) | (91 | ) | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Total segment earnings from operations(b) | 651 | 691 | 772 | 861 | 2,975 | 651 | 691 | 772 | 861 | 2,975 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Unallocated corporate costs and eliminations | (59 | ) | (61 | ) | (49 | ) | (90 | ) | (259 | ) | (59 | ) | (61 | ) | (49 | ) | (90 | ) | (259 | ) | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Unallocated stock-based compensation expense | (30 | ) | (20 | ) | (14 | ) | (9 | ) | (73 | ) | (30 | ) | (20 | ) | (14 | ) | (9 | ) | (73 | ) | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Amortization of intangible assets | (78 | ) | (72 | ) | (72 | ) | (72 | ) | (294 | ) | (78 | ) | (72 | ) | (72 | ) | (72 | ) | (294 | ) | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Restructuring charges | (5 | ) | (10 | ) | 1 | (5 | ) | (19 | ) | (5 | ) | (10 | ) | 1 | (5 | ) | (19 | ) | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Transformation costs | (245 | ) | (120 | ) | (126 | ) | 77 | (414 | ) | (245 | ) | (120 | ) | (126 | ) | 77 | (414 | ) | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Acquisition and other related charges | (30 | ) | (16 | ) | (24 | ) | (12 | ) | (82 | ) | (30 | ) | (16 | ) | (24 | ) | (12 | ) | (82 | ) | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Separation costs | 24 | (26 | ) | 2 | (9 | ) | (9 | ) | 24 | (26 | ) | 2 | (9 | ) | (9 | ) | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||
Impairment of goodwill | — | — | — | (88 | ) | (88 | ) | — | — | — | (88 | ) | (88 | ) | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Interest and other, net | (21 | ) | (78 | ) | (64 | ) | (111 | ) | (274 | ) | (21 | ) | (78 | ) | (64 | ) | (111 | ) | (274 | ) | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Tax indemnification adjustments | (919 | ) | (425 | ) | 2 | (12 | ) | (1,354 | ) | (919 | ) | (425 | ) | 2 | (12 | ) | (1,354 | ) | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Non-service net periodic benefit credit | 33 | 31 | 26 | 31 | 121 | 33 | 31 | 26 | 31 | 121 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Earnings (loss) from equity interests | 22 | (10 | ) | 11 | 15 | 38 | 22 | (10 | ) | 11 | 15 | 38 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Total HPE consolidated (loss) earnings before taxes | $ | (657 | ) | $ | (116 | ) | $ | 465 | $ | 576 | $ | 268 | $ | (657 | ) | $ | (116 | ) | $ | 465 | $ | 576 | $ | 268 | $ | — | $ | — | $ | — | $ | — | $ | — |
HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES
FISCAL 2018 SEGMENT INFORMATION (Revised)
(Unaudited)
REVISED AMOUNTS | AMOUNTS AS PREVIOUSLY REPORTED | VARIANCE | ||||||||||||||||||||||||||||||||||||||||||
Three months ended | Twelve months ended | Three months ended | Twelve months ended | Three months ended | Twelve months ended | |||||||||||||||||||||||||||||||||||||||
Jan. 31, 2018 | Apr. 30, 2018 | Jul. 31, 2018 | Oct. 31, 2018 | Oct. 31, 2018 | Jan. 31, 2018 | Apr. 30, 2018 | Jul. 31, 2018 | Oct. 31, 2018 | Oct. 31, 2018 | Jan. 31, 2018 | Apr. 30, 2018 | Jul. 31, 2018 | Oct. 31, 2018 | Oct. 31, 2018 | ||||||||||||||||||||||||||||||
Segment operating margin:(a) | ||||||||||||||||||||||||||||||||||||||||||||
Hybrid IT | — | % | — | % | — | % | — | % | — | % | 9.3 | % | 10.0 | % | 10.2 | % | 11.3 | % | 10.2 | % | (9.3 | pts) | (10.0 | pts) | (10.2 | pts) | (11.3 | pts) | (10.2 | pts) | ||||||||||||||
Compute | 7.4 | % | 8.5 | % | 9.0 | % | 9.5 | % | 8.6 | % | — | % | — | % | — | % | — | % | — | % | 7.4 | pts | 8.5 | pts | 9.0 | pts | 9.5 | pts | 8.6 | pts | ||||||||||||||
HPC & MCS | 9.0 | % | 11.9 | % | 14.7 | % | 15.0 | % | 12.9 | % | — | % | — | % | — | % | — | % | — | % | 9.0 | pts | 11.9 | pts | 14.7 | pts | 15.0 | pts | 12.9 | pts | ||||||||||||||
Storage | 17.7 | % | 15.5 | % | 14.7 | % | 16.4 | % | 16.1 | % | — | % | — | % | — | % | — | % | — | % | 17.7 | pts | 15.5 | pts | 14.7 | pts | 16.4 | pts | 16.1 | pts | ||||||||||||||
A & PS | (7.4 | )% | (5.5 | )% | (10.9 | )% | (4.8 | )% | (7.1 | )% | — | % | — | % | — | % | — | % | — | % | (7.4 | pts) | (5.5 | pts) | (10.9 | pts) | (4.8 | pts) | (7.1 | pts) | ||||||||||||||
Intelligent Edge | 7.0 | % | 10.0 | % | 14.5 | % | 12.7 | % | 11.3 | % | 5.2 | % | 7.9 | % | 12.9 | % | 11.1 | % | 9.5 | % | 1.8 | pts | 2.1 | pts | 1.6 | pts | 1.6 | pts | 1.8 | pts | ||||||||||||||
Financial Services | 8.0 | % | 7.9 | % | 7.8 | % | 7.6 | % | 7.8 | % | 8.0 | % | 7.9 | % | 7.8 | % | 7.6 | % | 7.8 | % | — | — | — | — | — | |||||||||||||||||||
Corporate Investments | (19.1 | )% | (20.9 | )% | (18.7 | )% | (8.6 | )% | (16.8 | )% | (19.1 | )% | (20.9 | )% | (18.7 | )% | (8.6 | )% | (16.8 | )% | — | — | — | — | — | |||||||||||||||||||
Total segment earnings from operations | 8.3 | % | 9.0 | % | 9.7 | % | 10.5 | % | 9.4 | % | 8.3 | % | 9.0 | % | 9.7 | % | 10.5 | % | 9.4 | % | — | — | — | — | — |
HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES
FISCAL 2018 SEGMENT / BUSINESS UNIT INFORMATION (Revised)
(Unaudited)
(In millions)
REVISED AMOUNTS | AMOUNTS AS PREVIOUSLY REPORTED | VARIANCE | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three months ended | Twelve months ended | Three months ended | Twelve months ended | Three months ended | Twelve months ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Jan. 31, 2018 | Apr. 30, 2018 | Jul. 31, 2018 | Oct. 31, 2018 | Oct. 31, 2018 | Jan. 31, 2018 | Apr. 30, 2018 | Jul. 31, 2018 | Oct. 31, 2018 | Oct. 31, 2018 | Jan. 31, 2018 | Apr. 30, 2018 | Jul. 31, 2018 | Oct. 31, 2018 | Oct. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||
Net revenue: (a) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Hybrid IT | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compute | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 3,518 | $ | 3,263 | $ | 3,569 | $ | 3,707 | $ | 14,057 | $ | (3,518 | ) | $ | (3,263 | ) | $ | (3,569 | ) | $ | (3,707 | ) | $ | (14,057 | ) | ||||||||||||||||||||||||
Storage | — | — | — | — | — | 948 | 912 | 887 | 959 | 3,706 | (948 | ) | (912 | ) | (887 | ) | (959 | ) | (3,706 | ) | |||||||||||||||||||||||||||||||||||||||
HPE Pointnext | — | — | — | — | — | 1,692 | 1,718 | 1,653 | 1,672 | 6,735 | (1,692 | ) | (1,718 | ) | (1,653 | ) | (1,672 | ) | (6,735 | ) | |||||||||||||||||||||||||||||||||||||||
Compute | 3,864 | 3,591 | 3,840 | 3,847 | 15,142 | — | — | — | — | — | 3,864 | 3,591 | 3,840 | 3,847 | 15,142 | ||||||||||||||||||||||||||||||||||||||||||||
HPC & MCS | 687 | 703 | 733 | 864 | 2,987 | — | — | — | — | — | 687 | 703 | 733 | 864 | 2,987 | ||||||||||||||||||||||||||||||||||||||||||||
Storage | 1,297 | 1,282 | 1,247 | 1,332 | 5,158 | — | — | — | — | — | 1,297 | 1,282 | 1,247 | 1,332 | 5,158 | ||||||||||||||||||||||||||||||||||||||||||||
A & PS | 285 | 293 | 267 | 273 | 1,118 | — | — | — | — | — | 285 | 293 | 267 | 273 | 1,118 | ||||||||||||||||||||||||||||||||||||||||||||
Total Hybrid IT | 6,133 | 5,869 | 6,087 | 6,316 | 24,405 | 6,158 | 5,893 | 6,109 | 6,338 | 24,498 | (25 | ) | (24 | ) | (22 | ) | (22 | ) | (93 | ) | |||||||||||||||||||||||||||||||||||||||
Hybrid IT Group Products(b) | 4,442 | 4,153 | 4,433 | 4,638 | 17,666 | 4,466 | 4,175 | 4,456 | 4,666 | 17,763 | (24 | ) | (22 | ) | (23 | ) | (28 | ) | (97 | ) | |||||||||||||||||||||||||||||||||||||||
Hybrid IT Group Services (a) (b) | 1,691 | 1,716 | 1,654 | 1,678 | 6,739 | 1,692 | 1,718 | 1,653 | 1,672 | 6,735 | (1 | ) | (2 | ) | 1 | 6 | 4 | ||||||||||||||||||||||||||||||||||||||||||
Intelligent Edge | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
HPE Aruba Products | 582 | 629 | 703 | 685 | 2,599 | 582 | 629 | 703 | 685 | 2,599 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
HPE Aruba Services | 99 | 101 | 104 | 110 | 414 | 74 | 77 | 82 | 88 | 321 | 25 | 24 | 22 | 22 | 93 | ||||||||||||||||||||||||||||||||||||||||||||
Total Intelligent Edge | 681 | 730 | 807 | 795 | 3,013 | 656 | 706 | 785 | 773 | 2,920 | 25 | 24 | 22 | 22 | 93 | ||||||||||||||||||||||||||||||||||||||||||||
Financial Services | 888 | 916 | 928 | 939 | 3,671 | 888 | 916 | 928 | 939 | 3,671 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Corporate Investments | 136 | 134 | 134 | 139 | 543 | 136 | 134 | 134 | 139 | 543 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Total segments | 7,838 | 7,649 | 7,956 | 8,189 | 31,632 | 7,838 | 7,649 | 7,956 | 8,189 | 31,632 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Elimination of intersegment net revenue and other | (164 | ) | (181 | ) | (192 | ) | (243 | ) | (780 | ) | (164 | ) | (181 | ) | (192 | ) | (243 | ) | (780 | ) | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Total HPE consolidated net revenue | $ | 7,674 | $ | 7,468 | $ | 7,764 | $ | 7,946 | $ | 30,852 | $ | 7,674 | $ | 7,468 | $ | 7,764 | $ | 7,946 | $ | 30,852 | $ | — | $ | — | $ | — | $ | — | $ | — |
HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES
FISCAL 2019 SEGMENT INFORMATION (Revised)
(Unaudited)
(In millions)
REVISED AMOUNTS | AMOUNTS AS PREVIOUSLY REPORTED | VARIANCE | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three months ended | Twelve months ended | Three months ended | Twelve months ended | Three months ended | Twelve months ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Jan. 31, 2019 | Apr. 30, 2019 | Jul. 31, 2019 | Oct. 31, 2019 | Oct. 31, 2019 | Jan. 31, 2019 | Apr. 30, 2019 | Jul. 31, 2019 | Oct. 31, 2019 | Oct. 31, 2019 | Jan. 31, 2019 | Apr. 30, 2019 | Jul. 31, 2019 | Oct. 31, 2019 | Oct. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||
Net revenue: (a) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Hybrid IT | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 5,970 | $ | 5,636 | $ | 5,549 | $ | 5,670 | $ | 22,825 | $ | (5,970 | ) | $ | (5,636 | ) | $ | (5,549 | ) | $ | (5,670 | ) | $ | (22,825 | ) | ||||||||||||||||||||||||
Compute | 3,575 | 3,318 | 3,400 | 3,349 | 13,642 | — | — | — | — | — | 3,575 | 3,318 | 3,400 | 3,349 | 13,642 | ||||||||||||||||||||||||||||||||||||||||||||
HPC & MCS | 779 | 721 | 633 | 777 | 2,910 | — | — | — | — | — | 779 | 721 | 633 | 777 | 2,910 | ||||||||||||||||||||||||||||||||||||||||||||
Storage | 1,356 | 1,318 | 1,255 | 1,256 | 5,185 | — | — | — | — | — | 1,356 | 1,318 | 1,255 | 1,256 | 5,185 | ||||||||||||||||||||||||||||||||||||||||||||
A & PS | 241 | 260 | 242 | 269 | 1,012 | — | — | — | — | — | 241 | 260 | 242 | 269 | 1,012 | ||||||||||||||||||||||||||||||||||||||||||||
Intelligent Edge | 705 | 685 | 781 | 742 | 2,913 | 686 | 666 | 762 | 723 | 2,837 | 19 | 19 | 19 | 19 | 76 | ||||||||||||||||||||||||||||||||||||||||||||
Financial Services | 919 | 896 | 888 | 878 | 3,581 | 919 | 896 | 888 | 878 | 3,581 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Corporate Investments | 118 | 125 | 130 | 134 | 507 | 118 | 125 | 130 | 134 | 507 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Total segments | 7,693 | 7,323 | 7,329 | 7,405 | 29,750 | 7,693 | 7,323 | 7,329 | 7,405 | 29,750 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Elimination of intersegment net revenue and other | (140 | ) | (173 | ) | (112 | ) | (190 | ) | (615 | ) | (140 | ) | (173 | ) | (112 | ) | (190 | ) | (615 | ) | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Total HPE consolidated net revenue | $ | 7,553 | $ | 7,150 | $ | 7,217 | $ | 7,215 | $ | 29,135 | $ | 7,553 | $ | 7,150 | $ | 7,217 | $ | 7,215 | $ | 29,135 | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||||
Earnings before taxes: (a) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Hybrid IT | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 675 | $ | 645 | $ | 704 | $ | 780 | $ | 2,804 | $ | (675 | ) | $ | (645 | ) | $ | (704 | ) | $ | (780 | ) | $ | (2,804 | ) | ||||||||||||||||||||||||
Compute | 340 | 307 | 439 | 464 | 1,550 | — | — | — | — | — | 340 | 307 | 439 | 464 | 1,550 | ||||||||||||||||||||||||||||||||||||||||||||
HPC & MCS | 98 | 92 | 51 | 79 | 320 | — | — | — | — | — | 98 | 92 | 51 | 79 | 320 | ||||||||||||||||||||||||||||||||||||||||||||
Storage | 254 | 244 | 207 | 219 | 924 | — | — | — | — | — | 254 | 244 | 207 | 219 | 924 | ||||||||||||||||||||||||||||||||||||||||||||
A & PS | (32 | ) | (14 | ) | (9 | ) | 1 | (54 | ) | — | — | — | — | — | (32 | ) | (14 | ) | (9 | ) | 1 | (54 | ) | ||||||||||||||||||||||||||||||||||||
Intelligent Edge | 24 | 36 | 53 | 46 | 159 | 9 | 20 | 37 | 29 | 95 | 15 | 16 | 16 | 17 | 64 | ||||||||||||||||||||||||||||||||||||||||||||
Financial Services | 77 | 77 | 77 | 74 | 305 | 77 | 77 | 77 | 74 | 305 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Corporate Investments | (28 | ) | (29 | ) | (25 | ) | (26 | ) | (108 | ) | (28 | ) | (29 | ) | (25 | ) | (26 | ) | (108 | ) | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Total segment earnings from operations | 733 | 713 | 793 | 857 | 3,096 | 733 | 713 | 793 | 857 | 3,096 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Unallocated corporate costs and eliminations | (50 | ) | (64 | ) | (65 | ) | (107 | ) | (286 | ) | (50 | ) | (64 | ) | (65 | ) | (107 | ) | (286 | ) | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Unallocated stock-based compensation expense | (14 | ) | (15 | ) | (13 | ) | (17 | ) | (59 | ) | (14 | ) | (15 | ) | (13 | ) | (17 | ) | (59 | ) | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Amortization of intangible assets | (72 | ) | (69 | ) | (58 | ) | (68 | ) | (267 | ) | (72 | ) | (69 | ) | (58 | ) | (68 | ) | (267 | ) | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Transformation costs | (78 | ) | (54 | ) | (170 | ) | (151 | ) | (453 | ) | (78 | ) | (54 | ) | (170 | ) | (151 | ) | (453 | ) | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Disaster recoveries | — | 7 | — | — | 7 | — | 7 | — | — | 7 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Acquisition and other related charges | (63 | ) | (84 | ) | (563 | ) | (54 | ) | (764 | ) | (63 | ) | (84 | ) | (563 | ) | (54 | ) | (764 | ) | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Interest and other, net | (51 | ) | (18 | ) | (70 | ) | (38 | ) | (177 | ) | (51 | ) | (18 | ) | (70 | ) | (38 | ) | (177 | ) | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Tax indemnification adjustments | 219 | 4 | (134 | ) | 288 | 377 | 219 | 4 | (134 | ) | 288 | 377 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Non-service net periodic benefit credit | 16 | 17 | 12 | 14 | 59 | 16 | 17 | 12 | 14 | 59 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Earnings (loss) from equity interests | 15 | 3 | 3 | (1 | ) | 20 | 15 | 3 | 3 | (1 | ) | 20 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Total HPE consolidated earnings (loss) before taxes | $ | 655 | $ | 440 | $ | (265 | ) | $ | 723 | $ | 1,553 | $ | 655 | $ | 440 | $ | (265 | ) | $ | 723 | $ | 1,553 | $ | — | $ | — | $ | — | $ | — | $ | — |
HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES
FISCAL 2019 SEGMENT INFORMATION (Revised)
(Unaudited)
REVISED AMOUNTS | AMOUNTS AS PREVIOUSLY REPORTED | VARIANCE | ||||||||||||||||||||||||||||||||||||||||||
Three months ended | Twelve months ended | Three months ended | Twelve months ended | Three months ended | Twelve months ended | |||||||||||||||||||||||||||||||||||||||
Jan. 31, 2019 | Apr. 30, 2019 | Jul. 31, 2019 | Oct. 31, 2019 | Oct. 31, 2019 | Jan. 31, 2019 | Apr. 30, 2019 | Jul. 31, 2019 | Oct. 31, 2019 | Oct. 31, 2019 | Jan. 31, 2019 | Apr. 30, 2019 | Jul. 31, 2019 | Oct. 31, 2019 | Oct. 31, 2019 | ||||||||||||||||||||||||||||||
Segment operating margin:(a) | ||||||||||||||||||||||||||||||||||||||||||||
Hybrid IT | — | % | — | % | — | % | — | % | — | % | 11.3 | % | 11.4 | % | 12.7 | % | 13.8 | % | 12.3 | % | (11.3 | pts) | (11.4 | pts) | (12.7 | pts) | (13.8 | pts) | (12.3 | pts) | ||||||||||||||
Compute | 9.5 | % | 9.3 | % | 12.9 | % | 13.9 | % | 11.4 | % | — | % | — | % | — | % | — | % | — | % | 9.5 | pts | 9.3 | pts | 12.9 | pts | 13.9 | pts | 11.4 | pts | ||||||||||||||
HPC & MCS | 12.6 | % | 12.8 | % | 8.1 | % | 10.2 | % | 11.0 | % | — | % | — | % | — | % | — | % | — | % | 12.6 | pts | 12.8 | pts | 8.1 | pts | 10.2 | pts | 11.0 | pts | ||||||||||||||
Storage | 18.7 | % | 18.5 | % | 16.5 | % | 17.4 | % | 17.8 | % | — | % | — | % | — | % | — | % | — | % | 18.7 | pts | 18.5 | pts | 16.5 | pts | 17.4 | pts | 17.8 | pts | ||||||||||||||
A & PS | (13.3 | )% | (5.4 | )% | (3.7 | )% | 0.4 | % | (5.3 | )% | — | % | — | % | — | % | — | % | — | % | (13.3 | pts) | (5.4 | pts) | (3.7 | pts) | 0.4 | pts | (5.3 | pts) | ||||||||||||||
Intelligent Edge | 3.4 | % | 5.3 | % | 6.8 | % | 6.2 | % | 5.5 | % | 1.3 | % | 3.0 | % | 4.9 | % | 4.0 | % | 3.3 | % | 2.1 | pts | 2.3 | pts | 1.9 | pts | 2.2 | pts | 2.2 | pts | ||||||||||||||
Financial Services | 8.4 | % | 8.6 | % | 8.7 | % | 8.4 | % | 8.5 | % | 8.4 | % | 8.6 | % | 8.7 | % | 8.4 | % | 8.5 | % | — | — | — | — | — | |||||||||||||||||||
Corporate Investments | (23.7 | )% | (23.2 | )% | (19.2 | )% | (19.4 | )% | (21.3 | )% | (23.7 | )% | (23.2 | )% | (19.2 | )% | (19.4 | )% | (21.3 | )% | — | — | — | — | — | |||||||||||||||||||
Total segment earnings from operations | 9.5 | % | 9.7 | % | 10.8 | % | 11.6 | % | 10.4 | % | 9.5 | % | 9.7 | % | 10.8 | % | 11.6 | % | 10.4 | % | — | — | — | — | — |
HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES
FISCAL 2019 SEGMENT / BUSINESS UNIT INFORMATION (Revised)
(Unaudited)
(In millions)
REVISED AMOUNTS | AMOUNTS AS PREVIOUSLY REPORTED | VARIANCE | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three months ended | Twelve months ended | Three months ended | Twelve months ended | Three months ended | Twelve months ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Jan. 31, 2019 | Apr. 30, 2019 | Jul. 31, 2019 | Oct. 31, 2019 | Oct. 31, 2019 | Jan. 31, 2019 | Apr. 30, 2019 | Jul. 31, 2019 | Oct. 31, 2019 | Oct. 31, 2019 | Jan. 31, 2019 | Apr. 30, 2019 | Jul. 31, 2019 | Oct. 31, 2019 | Oct. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||
Net revenue: (a) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Hybrid IT | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compute | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 3,402 | $ | 3,093 | $ | 3,151 | $ | 3,233 | $ | 12,879 | $ | (3,402 | ) | $ | (3,093 | ) | $ | (3,151 | ) | $ | (3,233 | ) | $ | (12,879 | ) | ||||||||||||||||||||||||
Storage | — | — | — | — | — | 975 | 942 | 844 | 848 | 3,609 | (975 | ) | (942 | ) | (844 | ) | (848 | ) | (3,609 | ) | |||||||||||||||||||||||||||||||||||||||
HPE Pointnext | — | — | — | — | — | 1,593 | 1,601 | 1,554 | 1,589 | 6,337 | (1,593 | ) | (1,601 | ) | (1,554 | ) | (1,589 | ) | (6,337 | ) | |||||||||||||||||||||||||||||||||||||||
Compute | 3,575 | 3,318 | 3,400 | 3,349 | 13,642 | — | — | — | — | — | 3,575 | 3,318 | 3,400 | 3,349 | 13,642 | ||||||||||||||||||||||||||||||||||||||||||||
HPC & MCS | 779 | 721 | 633 | 777 | 2,910 | — | — | — | — | — | 779 | 721 | 633 | 777 | 2,910 | ||||||||||||||||||||||||||||||||||||||||||||
Storage | 1,356 | 1,318 | 1,255 | 1,256 | 5,185 | — | — | — | — | — | 1,356 | 1,318 | 1,255 | 1,256 | 5,185 | ||||||||||||||||||||||||||||||||||||||||||||
A & PS | 241 | 260 | 242 | 269 | 1,012 | — | — | — | — | — | 241 | 260 | 242 | 269 | 1,012 | ||||||||||||||||||||||||||||||||||||||||||||
Total Hybrid IT | 5,951 | 5,617 | 5,530 | 5,651 | 22,749 | 5,970 | 5,636 | 5,549 | 5,670 | 22,825 | (19 | ) | (19 | ) | (19 | ) | (19 | ) | (76 | ) | |||||||||||||||||||||||||||||||||||||||
Hybrid IT Group Products(b) | 4,350 | 4,006 | 3,963 | 4,031 | 16,350 | 4,377 | 4,035 | 3,995 | 4,081 | 16,488 | (27 | ) | (29 | ) | (32 | ) | (50 | ) | (138 | ) | |||||||||||||||||||||||||||||||||||||||
Hybrid IT Group Services(a) (b) | 1,601 | 1,611 | 1,567 | 1,620 | 6,399 | 1,593 | 1,601 | 1,554 | 1,589 | 6,337 | 8 | 10 | 13 | 31 | 62 | ||||||||||||||||||||||||||||||||||||||||||||
Intelligent Edge | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
HPE Aruba Products | 597 | 577 | 668 | 620 | 2,462 | 597 | 577 | 668 | 620 | 2,462 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
HPE Aruba Services | 108 | 108 | 113 | 122 | 451 | 89 | 89 | 94 | 103 | 375 | 19 | 19 | 19 | 19 | 76 | ||||||||||||||||||||||||||||||||||||||||||||
Total Intelligent Edge | 705 | 685 | 781 | 742 | 2,913 | 686 | 666 | 762 | 723 | 2,837 | 19 | 19 | 19 | 19 | 76 | ||||||||||||||||||||||||||||||||||||||||||||
Financial Services | 919 | 896 | 888 | 878 | 3,581 | 919 | 896 | 888 | 878 | 3,581 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Corporate Investments | 118 | 125 | 130 | 134 | 507 | 118 | 125 | 130 | 134 | 507 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Total segments | 7,693 | 7,323 | 7,329 | 7,405 | 29,750 | 7,693 | 7,323 | 7,329 | 7,405 | 29,750 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Elimination of intersegment net revenue and other | (140 | ) | (173 | ) | (112 | ) | (190 | ) | (615 | ) | (140 | ) | (173 | ) | (112 | ) | (190 | ) | (615 | ) | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Total HPE consolidated net revenue | $ | 7,553 | $ | 7,150 | $ | 7,217 | $ | 7,215 | $ | 29,135 | $ | 7,553 | $ | 7,150 | $ | 7,217 | $ | 7,215 | $ | 29,135 | $ | — | $ | — | $ | — | $ | — | $ | — |
(a) Effective at the beginning of the first quarter of fiscal 2020, Hewlett Packard Enterprise Company ("the Company") implemented certain organizational changes to align its segment financial reporting more closely with its current business structure. As a result of these organizational changes, the Company created four new financial reporting segments, Compute, High Performance Compute & Mission-Critical Systems ("HPC & MCS"), Storage and Advisory and Professional Services ("A & PS"), and eliminated the Hybrid IT segment and the Compute, Storage and HPE Pointnext business units within it.
The Compute segment consists of the general purpose server and certain workload optimized server portfolios that were previously a part of the Compute business unit and the related operational services business that was previously a part of the HPE Pointnext business unit, both of which were previously a part of the Hybrid IT segment. The HPC & MCS segment consists of high performance compute, mission-critical systems, and edge compute offerings that were previously a part of the Compute business unit and the related operational services business that was previously a part of the HPE Pointnext business unit, both of which were previously a part of the Hybrid IT segment. The Storage segment consists of the former Storage business unit, the related operational services business that was previously a part of the HPE Pointnext business unit and the hyperconverged infrastructure products that were previously a part of the Compute business unit, all of which were previously a part of the Hybrid IT segment. The A & PS segment consists of the consultative-led services that were previously a part of the HPE Pointnext business unit of the Hybrid IT segment.
In addition, the HPE Aruba Services business unit of the Intelligent Edge segment now includes the Data Center Networking ("DC Networking") operational services business that was previously a part of the HPE Pointnext business unit of the Hybrid IT segment. The DC Networking business, other than operational services, had been transferred to the Intelligent Edge segment in a prior realignment.
The Compute, HPC & MCS, Storage and A & PS segments are structured beneath a broader Hybrid IT Group. While Hybrid IT is no longer a reportable segment, HPE aggregates these segments and provides financial data in order to provide a supplementary view of the Hybrid IT Group.
The Company reflected these changes to its segment information retrospectively to the earliest period presented, which primarily resulted in the transfer of net revenue and operating profit for each of the businesses as described above.
(b) Certain operational services revenue previously reported within the Storage business unit, has been realigned retrospectively to Hybrid IT Group Services revenue.
These changes had no impact on Hewlett Packard Enterprise's previously reported consolidated net revenue, earnings from operations, net earnings or net earnings per share.