| Disposal Groups, Including Discontinued Operations |
The following table presents the financial results for HPE's discontinued operations up to the completion of the separation on April 1, 2017. For the period following the completion of the Everett Transaction, discontinued operations primarily includes separation costs related to third-party consulting, contractor fees and other incremental costs arising from the transaction: | | | | | | | | | | | | | | | | | | Three Months Ended
April 30, | | Six Months Ended
April 30, | | 2017 | | 2016 | | 2017 | | 2016 | | In millions | Net Revenue | $ | 2,487 |
| | $ | 4,202 |
| | $ | 6,338 |
| | $ | 8,394 |
| Cost of revenue(1) | 2,073 |
| | 3,601 |
| | 5,357 |
| | 7,312 |
| Expenses(2) | 643 |
| | 560 |
| | 1,203 |
| | 1,129 |
| Interest and other, net | 4 |
| | 8 |
| | 4 |
| | 14 |
| (Loss) earnings from discontinued operations before taxes | (233 | ) | | 33 |
| | (226 | ) | | (61 | ) | Benefit (provision) for taxes | 108 |
| | (35 | ) | | 113 |
| | (36 | ) | Net loss from discontinued operations | $ | (125 | ) | | $ | (2 | ) | | $ | (113 | ) | | $ | (97 | ) |
| | (1) | Cost of revenue includes cost of products and cost of services. |
| | (2) | Expenses for the three and six months ended April 30, 2017 and 2016 include expenses primarily consisting of selling, general and administrative (“SG&A”) expenses, research and development (“R&D”) expenses, restructuring charges, separation costs related to the Everett Transaction, amortization of intangible assets, acquisition and other related charges, and defined benefit plan settlement charges and remeasurement (benefit). |
For the three and six months ended April 30, 2017 and 2016, significant non-cash items and capital expenditures of discontinued operations are outlined below: | | | | | | | | | | | | | | | | | | Three Months Ended
April 30, | | Six Months Ended
April 30, | | 2017 | | 2016 | | 2017 | | 2016 | | In millions | Depreciation and amortization | $ | 129 |
| | $ | 358 |
| | $ | 388 |
| | $ | 734 |
| Purchases of property, plant and equipment | $ | 53 |
| | $ | 224 |
| | $ | 131 |
| | $ | 486 |
|
The following table presents assets and liabilities that are presented as discontinued operations in the Consolidated Balance Sheet as of October 31, 2016 and that were transferred to Everett as of April 1, 2017: | | | | | | As of | | October 31, 2016 | | | Accounts receivable | $ | 3,093 |
| Inventory | 34 |
| Other current assets | 1,116 |
| Total current assets of discontinued operations | $ | 4,243 |
| Property, plant and equipment | $ | 3,332 |
| Long-term financing receivables and other non-current assets | 1,591 |
| Total non-current assets of discontinued operations | $ | 4,923 |
| Notes payable and short-term borrowings | $ | 3 |
| Accounts payable | 933 |
| Employee compensation and benefits | 838 |
| Taxes on earnings | 55 |
| Deferred revenue | 849 |
| Other accrued liabilities | 1,504 |
| Total current liabilities of discontinued operations | $ | 4,182 |
| Long-term debt | $ | 392 |
| Other non-current liabilities | 3,621 |
| Total non-current liabilities of discontinued operations | $ | 4,013 |
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