Segment Information (Tables)
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6 Months Ended |
Apr. 30, 2018 |
|---|
| Segment Reporting [Abstract] |
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| Segment Operating Results from Continuing Operations |
Segment Operating Results from Continuing Operations | | | | | | | | | | | | | | | | | | | | | | Hybrid IT | | Intelligent Edge | | Financial
Services | | Corporate
Investments | | Total | | In millions | Three months ended April 30, 2018 | |
| | |
| | |
| | |
| | |
| Net revenue | $ | 5,851 |
| | $ | 703 |
| | $ | 914 |
| | $ | — |
| | $ | 7,468 |
| Intersegment net revenue and other | 172 |
| | 7 |
| | 2 |
| | — |
| | 181 |
| Total segment net revenue | $ | 6,023 |
| | $ | 710 |
| | $ | 916 |
| | $ | — |
| | $ | 7,649 |
| Segment earnings (loss) from operations | $ | 621 |
| | $ | 46 |
| | $ | 72 |
| | $ | (22 | ) | | $ | 717 |
| Three months ended April 30, 2017 | |
| | |
| | |
| | |
| | |
| Net revenue | $ | 5,348 |
| | $ | 595 |
| | $ | 865 |
| | $ | — |
| | $ | 6,808 |
| Intersegment net revenue and other(1) | 289 |
| | 11 |
| | 7 |
| | — |
| | 307 |
| Total segment net revenue | $ | 5,637 |
| | $ | 606 |
| | $ | 872 |
| | $ | — |
| | $ | 7,115 |
| Segment earnings (loss) from operations | $ | 457 |
| | $ | 46 |
| | $ | 77 |
| | $ | (28 | ) | | $ | 552 |
| Six months ended April 30, 2018 | |
| | |
| |
|
| | |
| | |
| Net revenue | $ | 12,027 |
| | $ | 1,316 |
| | $ | 1,800 |
| | $ | (1 | ) | | $ | 15,142 |
| Intersegment net revenue and other | 327 |
| | 14 |
| | 4 |
| | — |
| | 345 |
| Total segment net revenue | $ | 12,354 |
| | $ | 1,330 |
| | $ | 1,804 |
| | $ | (1 | ) | | $ | 15,487 |
| Segment earnings (loss) from operations | $ | 1,229 |
| | $ | 64 |
| | $ | 144 |
| | $ | (43 | ) | | $ | 1,394 |
| Six months ended April 30, 2017 | |
| | |
| | |
| | |
| | |
| Net revenue | $ | 10,884 |
| | $ | 1,157 |
| | $ | 1,669 |
| | $ | — |
| | $ | 13,710 |
| Intersegment net revenue and other(1) | 508 |
| | 19 |
| | 26 |
| | — |
| | 553 |
| Total segment net revenue | $ | 11,392 |
| | $ | 1,176 |
| | $ | 1,695 |
| | $ | — |
| | $ | 14,263 |
| Segment earnings (loss) from operations | $ | 1,190 |
| | $ | 62 |
| | $ | 153 |
| | $ | (61 | ) | | $ | 1,344 |
|
| | (1) | For the three and six months ended April 30, 2017, the amounts include the elimination of pre-separation intercompany sales to the former Enterprise Services and Software segments, which are included within Net loss from discontinued operations in the Condensed Consolidated Statements of Earnings. |
|
| Reconciliation of Segment Operating Results |
The reconciliation of segment operating results to Hewlett Packard Enterprise condensed consolidated results was as follows: | | | | | | | | | | | | | | | | | | Three Months Ended
April 30, | | Six Months Ended
April 30, | | 2018 | | 2017 | | 2018 | | 2017 | | In millions | Net Revenue: | | | |
| | |
| | |
| Total segments | $ | 7,649 |
| | $ | 7,115 |
| | $ | 15,487 |
| | $ | 14,263 |
| Elimination of intersegment net revenue and other | (181 | ) | | (307 | ) | | (345 | ) | | (553 | ) | Total Hewlett Packard Enterprise condensed consolidated net revenue | $ | 7,468 |
| | $ | 6,808 |
| | $ | 15,142 |
| | $ | 13,710 |
| Earnings before taxes: | |
| | |
| | |
| | |
| Total segment earnings from operations | $ | 717 |
| | $ | 552 |
| | $ | 1,394 |
| | $ | 1,344 |
| Unallocated corporate costs and eliminations | (54 | ) | | (124 | ) | | (108 | ) | | (220 | ) | Unallocated stock-based compensation expense | (20 | ) | | (24 | ) | | (50 | ) | | (67 | ) | Amortization of intangible assets | (72 | ) | | (72 | ) | | (150 | ) | | (138 | ) | Restructuring charges | (9 | ) | | (69 | ) | | (12 | ) | | (152 | ) | Transformation costs | (123 | ) | | — |
| | (368 | ) | | — |
| Acquisition and other related charges | (16 | ) | | (50 | ) | | (46 | ) | | (94 | ) | Separation costs | (26 | ) | | (30 | ) | | (2 | ) | | (41 | ) | Defined benefit plan settlement (charges) and remeasurement benefit | — |
| | 12 |
| | — |
| | 16 |
| Interest and other, net | (78 | ) | | (86 | ) | | (99 | ) | | (164 | ) | Tax indemnification adjustments | (425 | ) | | 7 |
| | (1,344 | ) | | (11 | ) | (Loss) earnings from equity interests | (10 | ) | | (3 | ) | | 12 |
| | (25 | ) | Total Hewlett Packard Enterprise condensed consolidated (loss) earnings from continuing operations before taxes | $ | (116 | ) | | $ | 113 |
| | $ | (773 | ) | | $ | 448 |
|
|
| Reconciliation of Assets from Segment to Consolidated |
Total assets by segment and the reconciliation of segment assets to Hewlett Packard Enterprise condensed consolidated assets were as follows: | | | | | | | | | | As of | | April 30, 2018 | | October 31, 2017 | | In millions | Hybrid IT | $ | 26,488 |
| | $ | 25,923 |
| Intelligent Edge | 3,042 |
| | 3,002 |
| Financial Services | 13,560 |
| | 13,470 |
| Corporate Investments | 160 |
| | 161 |
| Corporate and unallocated assets | 16,626 |
| | 18,850 |
| Total Hewlett Packard Enterprise condensed consolidated assets | $ | 59,876 |
| | $ | 61,406 |
|
|
| Schedule of Net Revenue by Segment and Business Unit |
Net revenue by segment and business unit was as follows: | | | | | | | | | | | | | | | | | | Three Months Ended
April 30, | | Six Months Ended
April 30, | | 2018 | | 2017 | | 2018 | | 2017 | | In millions | Hybrid IT | | | | | | | | Hybrid IT Product | | | | | | | | Compute | $ | 3,213 |
| | $ | 3,033 |
| | $ | 6,705 |
| | $ | 6,176 |
| Storage | 912 |
| | 734 |
| | 1,860 |
| | 1,498 |
| DC Networking | 46 |
| | 45 |
| | 108 |
| | 94 |
| Total Hybrid IT Product | 4,171 |
| | 3,812 |
| | 8,673 |
| | 7,768 |
| HPE Pointnext | 1,852 |
| | 1,825 |
| | 3,681 |
| | 3,624 |
| Total Hybrid IT | 6,023 |
| | 5,637 |
| | 12,354 |
| | 11,392 |
| Intelligent Edge | | | | | | | | HPE Aruba Product | 635 |
| | 538 |
| | 1,184 |
| | 1,041 |
| HPE Aruba Services | 75 |
| | 68 |
| | 146 |
| | 135 |
| Total Intelligent Edge | 710 |
| | 606 |
| | 1,330 |
| | 1,176 |
| Financial Services | 916 |
| | 872 |
| | 1,804 |
| | 1,695 |
| Corporate Investments | — |
| | — |
| | (1 | ) | | — |
| Total segment net revenue | 7,649 |
| | 7,115 |
| | 15,487 |
| | 14,263 |
| Eliminations of intersegment net revenue and other | (181 | ) | | (307 | ) | | (345 | ) | | (553 | ) | Total Hewlett Packard Enterprise condensed consolidated net revenue | $ | 7,468 |
| | $ | 6,808 |
| | $ | 15,142 |
| | $ | 13,710 |
|
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