Segment Information (Tables)
|
9 Months Ended |
Jul. 31, 2018 |
|---|
| Segment Reporting [Abstract] |
|
| Segment Operating Results from Continuing Operations |
Segment Operating Results | | | | | | | | | | | | | | | | | | | | | | Hybrid IT | | Intelligent Edge | | Financial
Services | | Corporate
Investments | | Total | | In millions | Three months ended July 31, 2018 | |
| | |
| | |
| | |
| | |
| Net revenue | $ | 6,058 |
| | $ | 784 |
| | $ | 922 |
| | $ | — |
| | $ | 7,764 |
| Intersegment net revenue and other | 185 |
| | 1 |
| | 6 |
| | — |
| | 192 |
| Total segment net revenue | $ | 6,243 |
| | $ | 785 |
| | $ | 928 |
| | $ | — |
| | $ | 7,956 |
| Segment earnings (loss) from operations | $ | 661 |
| | $ | 91 |
| | $ | 73 |
| | $ | (24 | ) | | $ | 801 |
| Three months ended July 31, 2017 | |
| | |
| | |
| | |
| | |
| Net revenue | $ | 5,898 |
| | $ | 707 |
| | $ | 896 |
| | $ | — |
| | $ | 7,501 |
| Intersegment net revenue and other(1) | 182 |
| | 4 |
| | 1 |
| | — |
| | 187 |
| Total segment net revenue | $ | 6,080 |
| | $ | 711 |
| | $ | 897 |
| | $ | — |
| | $ | 7,688 |
| Segment earnings (loss) from operations | $ | 482 |
| | $ | 104 |
| | $ | 69 |
| | $ | (24 | ) | | $ | 631 |
| Nine months ended July 31, 2018 | |
| | |
| |
|
| | |
| | |
| Net revenue | $ | 18,086 |
| | $ | 2,100 |
| | $ | 2,721 |
| | $ | (1 | ) | | $ | 22,906 |
| Intersegment net revenue and other | 511 |
| | 15 |
| | 11 |
| | — |
| | 537 |
| Total segment net revenue | $ | 18,597 |
| | $ | 2,115 |
| | $ | 2,732 |
| | $ | (1 | ) | | $ | 23,443 |
| Segment earnings (loss) from operations | $ | 1,890 |
| | $ | 155 |
| | $ | 217 |
| | $ | (67 | ) | | $ | 2,195 |
| Nine months ended July 31, 2017 | |
| | |
| | |
| | |
| | |
| Net revenue | $ | 16,782 |
| | $ | 1,864 |
| | $ | 2,565 |
| | $ | — |
| | $ | 21,211 |
| Intersegment net revenue and other(1) | 690 |
| | 23 |
| | 27 |
| | — |
| | 740 |
| Total segment net revenue | $ | 17,472 |
| | $ | 1,887 |
| | $ | 2,592 |
| | $ | — |
| | $ | 21,951 |
| Segment earnings (loss) from operations | $ | 1,672 |
| | $ | 166 |
| | $ | 222 |
| | $ | (85 | ) | | $ | 1,975 |
|
| | (1) | For the three and nine months ended July 31, 2017, the amounts include the elimination of pre-separation intercompany sales to the former Software segment, which are included within Net loss from discontinued operations in the Condensed Consolidated Statements of Earnings. The nine months ended July 31, 2017 also includes the elimination of pre-separation intercompany sales to the former Enterprise Services segment. |
|
| Reconciliation of Segment Operating Results |
The reconciliation of segment operating results to Hewlett Packard Enterprise condensed consolidated results was as follows: | | | | | | | | | | | | | | | | | | Three Months Ended
July 31, | | Nine Months Ended
July 31, | | 2018 | | 2017 | | 2018 | | 2017 | | In millions | Net Revenue: | | | |
| | |
| | |
| Total segments | $ | 7,956 |
| | $ | 7,688 |
| | $ | 23,443 |
| | $ | 21,951 |
| Eliminations of intersegment net revenue and other | (192 | ) | | (187 | ) | | (537 | ) | | (740 | ) | Total Hewlett Packard Enterprise condensed consolidated net revenue | $ | 7,764 |
| | $ | 7,501 |
| | $ | 22,906 |
| | $ | 21,211 |
| Earnings before taxes: | |
| | |
| | |
| | |
| Total segment earnings from operations | $ | 801 |
| | $ | 631 |
| | $ | 2,195 |
| | $ | 1,975 |
| Unallocated corporate costs and eliminations | (44 | ) | | (88 | ) | | (152 | ) | | (308 | ) | Unallocated stock-based compensation expense | (14 | ) | | (23 | ) | | (64 | ) | | (90 | ) | Amortization of intangible assets | (72 | ) | | (97 | ) | | (222 | ) | | (235 | ) | Restructuring charges | (2 | ) | | (152 | ) | | (14 | ) | | (304 | ) | Transformation costs | (131 | ) | | (31 | ) | | (499 | ) | | (31 | ) | Acquisition and other related charges | (24 | ) | | (56 | ) | | (70 | ) | | (150 | ) | Separation costs | 2 |
| | (5 | ) | | — |
| | (46 | ) | Defined benefit plan settlement (charges) and remeasurement benefit | — |
| | 22 |
| | — |
| | 38 |
| Interest and other, net | (64 | ) | | (87 | ) | | (163 | ) | | (251 | ) | Tax indemnification adjustments | 2 |
| | 10 |
| | (1,342 | ) | | (1 | ) | Earnings (loss) from equity interests | 11 |
| | 1 |
| | 23 |
| | (24 | ) | Total Hewlett Packard Enterprise condensed consolidated earnings (loss) from continuing operations before taxes | $ | 465 |
| | $ | 125 |
| | $ | (308 | ) | | $ | 573 |
|
|
| Schedule of Net Revenue by Segment and Business Unit |
Net revenue by segment and business unit was as follows: | | | | | | | | | | | | | | | | | | Three Months Ended
July 31, | | Nine Months Ended
July 31, | | 2018 | | 2017 | | 2018 | | 2017 | | In millions | Hybrid IT | | | | | | | | Hybrid IT Product | | | | | | | | Compute | $ | 3,510 |
| | $ | 3,340 |
| | $ | 10,215 |
| | $ | 9,516 |
| Storage | 887 |
| | 877 |
| | 2,747 |
| | 2,375 |
| DC Networking | 59 |
| | 63 |
| | 167 |
| | 157 |
| Total Hybrid IT Product | 4,456 |
| | 4,280 |
| | 13,129 |
| | 12,048 |
| HPE Pointnext | 1,787 |
| | 1,800 |
| | 5,468 |
| | 5,424 |
| Total Hybrid IT | 6,243 |
| | 6,080 |
| | 18,597 |
| | 17,472 |
| Intelligent Edge | | | | | | | | HPE Aruba Product | 706 |
| | 642 |
| | 1,890 |
| | 1,683 |
| HPE Aruba Services | 79 |
| | 69 |
| | 225 |
| | 204 |
| Total Intelligent Edge | 785 |
| | 711 |
| | 2,115 |
| | 1,887 |
| Financial Services | 928 |
| | 897 |
| | 2,732 |
| | 2,592 |
| Corporate Investments | — |
| | — |
| | (1 | ) | | — |
| Total segment net revenue | 7,956 |
| | 7,688 |
| | 23,443 |
| | 21,951 |
| Eliminations of intersegment net revenue and other | (192 | ) | | (187 | ) | | (537 | ) | | (740 | ) | Total Hewlett Packard Enterprise condensed consolidated net revenue | $ | 7,764 |
| | $ | 7,501 |
| | $ | 22,906 |
| | $ | 21,211 |
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