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Segment Information
12 Months Ended
Oct. 31, 2021
Segment Reporting [Abstract]  
Segment Information Segment Information
As described in Note 1, "Overview and Summary of Significant Accounting Policies", effective at the beginning of the first quarter of fiscal 2021, the Company implemented certain organizational changes to align its segment financial reporting more closely with its current business structure. Hewlett Packard Enterprise's operations are now organized into six segments for financial reporting purposes: Compute, HPC & AI, Storage, Intelligent Edge, Financial Services ("FS"), and Corporate Investments and Other. Hewlett Packard Enterprise's organizational structure is based on a number of factors that the Chief Operating Decision Maker ("CODM"), who is the Chief Executive Officer ("CEO"), uses to evaluate, view and run the Company's business operations, which include, but are not limited to, customer base and homogeneity of products and technology. The six segments are based on this organizational structure and information reviewed by Hewlett Packard Enterprise's management to evaluate segment results. A summary of the types of products and services within each segment is as follows:
Compute includes both general purpose servers for multi-workload computing and workload optimized servers to offer the best performance and value for demanding applications. This portfolio of products includes the HPE Proliant rack and tower servers; HPE Synergy and HPE BladeSystems. Compute offerings also include operational and support services and HPE GreenLake for Compute as-a-service.
High Performance Computing & Artificial Intelligence offers standard and custom hardware and software solutions designed to support specific use cases. The HPC hardware solutions are segmented into several categories, High Performance Computing (“HPC”), Data Solutions, and Edge Compute. The HPC portfolio of products includes the HPE Apollo and Cray products that are often sold as supercomputing systems, including exascale supercomputers. The Data Solutions portfolio (formerly named Mission Critical Solutions) includes the HPE Superdome Flex, HPE Nonstop and HPE Integrity product lines.
Edge Compute primarily offers HPE Edgeline products. HPC & AI offerings also include operational and support services and solutions delivered as-a-service through HPE GreenLake.
Storage provides workload optimized storage product and service offerings which include an intelligent hyperconverged infrastructure ("HCI") with HPE Nimble Storage dHCI and HPE SimpliVity. The portfolio also includes primary storage with HPE Primera, HPE Nimble Storage, HPE Alletra and HPE 3PAR Storage for mission-critical and general-purpose workloads, HPE Recovery Manager Central, HPE StoreOnce, HPE Cloud Volumes Backup and Big Data solutions running on Apollo servers. Storage also provides solutions for secondary workloads and traditional tape, storage networking and disk products, such as HPE Modular Storage Arrays ("MSA") and HPE XP. Storage offerings also include operational and support services, software subscription services, and solutions delivered as-a-service through HPE GreenLake.
Intelligent Edge offers wired and wireless local area network ("LAN"), campus and data center switching, software-defined wide-area-network (from the Silver Peak acquisition), network security, and associated services to enable secure connectivity for businesses of any size. The HPE Aruba product portfolio includes products such as Wi-Fi access points, switches, routers, and sensors. The HPE Aruba software and services portfolio includes cloud-based management, network management, network access control, analytics and assurance, location services software and professional and support services, as well as as-a-service and consumption models through HPE GreenLake for the Intelligent Edge portfolio of products. Intelligence Edge also offers an Edge Service Platform ("Aruba ESP") to help customers meet their connectivity, security, and financial requirements across campus, branch, data center, and remote worker environments, covering all aspects of wired, wireless LAN, and wide area networking.
Financial Services provides flexible investment solutions, such as leasing, financing, IT consumption, utility programs and asset management services, for customers that facilitate unique technology deployment models and the acquisition of complete IT solutions, including hardware, software and services from Hewlett Packard Enterprise and others. FS also supports financial solutions for on-premise flexible consumption models, such as HPE GreenLake.
Corporate Investments and Other includes the A & PS business which primarily offers consultative-led services, HPE and partner technology expertise and advice, implementation services as well as complex solution engagement capabilities; the Communications and Media Solutions business ("CMS") which primarily offers software and related services to the telecommunications industry; the HPE Software business which offers HPE Ezmeral Container Platform and HPE Ezmeral Data Fabric; and Hewlett Packard Labs which is responsible for research and development.
Segment Policy
Hewlett Packard Enterprise derives the results of its business segments directly from its internal management reporting system. The accounting policies that Hewlett Packard Enterprise uses to derive segment results are substantially the same as those the consolidated company uses. The CODM measures the performance of each segment based on several metrics, including earnings from operations. The CODM uses these results, in part, to evaluate the performance of, and to allocate resources to each of the segments.
Segment revenue includes revenues from sales to external customers and intersegment revenues that reflect transactions between the segments on an arm's-length basis. Intersegment revenues primarily consist of sales of hardware and software that are sourced internally and, in the majority of the cases, are financed as operating leases by FS to our customers. Hewlett Packard Enterprise's consolidated net revenue is derived and reported after the elimination of intersegment revenues from such arrangements.
Financing interest in the Consolidated Statements of Earnings reflects interest expense on borrowing and funding-related activity associated with FS and its subsidiaries, and debt issued by Hewlett Packard Enterprise for which a portion of the proceeds benefited FS.
Hewlett Packard Enterprise does not allocate to its segments certain operating expenses, which it manages at the corporate level. These unallocated costs include certain corporate costs and eliminations, stock-based compensation expense, amortization of initial direct costs, amortization of intangible assets, impairment of goodwill, transformation costs, disaster charges and acquisition, disposition and other related charges.
Segment Operating Results
 ComputeHPC & AIStorageIntelligent EdgeFinancial ServicesCorporate Investments and OtherTotal
 In millions
2021    
Net revenue$12,041 $3,041 $4,681 $3,277 $3,388 $1,356 $27,784 
Intersegment net revenue251 147 82 10 13 — 503 
Total segment net revenue$12,292 $3,188 $4,763 $3,287 $3,401 $1,356 $28,287 
Segment earnings (loss) from operations$1,326 $234 $778 $500 $390 $(95)$3,133 
2020    
Net revenue$11,905 $3,014 $4,592 $2,838 $3,340 $1,293 $26,982 
Intersegment net revenue380 91 93 17 12 598 
Total segment net revenue$12,285 $3,105 $4,685 $2,855 $3,352 $1,298 $27,580 
Segment earnings (loss) from operations$1,007 $285 $813 $337 $284 $(206)$2,520 
2019    
Net revenue$13,332 $2,861 $5,183 $2,901 $3,573 $1,285 $29,135 
Intersegment net revenue398 122 72 12 615 
Total segment net revenue$13,730 $2,983 $5,255 $2,913 $3,581 $1,288 $29,750 
Segment earnings (loss) from operations$1,719 $365 $1,009 $216 $310 $(314)$3,305 
The reconciliation of segment operating results to Consolidated Statement of Earnings results was as follows:
 For the fiscal years ended October 31,
 202120202019
 In millions
Net revenue:   
Total segments$28,287 $27,580 $29,750 
Elimination of intersegment net revenue(503)(598)(615)
Total consolidated net revenue$27,784 $26,982 $29,135 
Earnings before taxes:   
Total segment earnings from operations$3,133 $2,520 $3,305 
Unallocated corporate costs and eliminations(285)(238)(286)
Stock-based compensation expense(372)(274)(268)
Amortization of initial direct costs(8)(10)— 
Amortization of intangible assets(354)(379)(267)
Impairment of goodwill— (865)— 
Transformation costs(930)(950)(453)
Disaster (charge) recovery(16)(26)
Acquisition, disposition and other related charges(36)(107)(764)
Interest and other, net(211)(215)(177)
Tax indemnification adjustments65 (101)377 
Non-service net periodic benefit credit70 136 59 
Litigation judgment2,351 — — 
Earnings from equity interests180 67 20 
Total earnings (loss) before (provision) benefit for taxes$3,587 $(442)$1,553 
Segment Assets
Hewlett Packard Enterprise allocates assets to its business segments based on the segments primarily benefiting from the assets. Total assets by segment and the reconciliation of segment assets to total assets as per Consolidated Balance Sheets were as follows:
 As of October 31,
 20212020
 In millions
Compute$16,208 $14,962 
HPC & AI6,726 6,245 
Storage7,097 6,438 
Intelligent Edge4,435 4,352 
Financial Services14,951 14,765 
Corporate Investments and Other1,209 1,124 
Corporate and unallocated assets7,073 6,129 
Total assets$57,699 $54,015 
Major Customers
No single customer represented 10% or more of the Company's total net revenue in any fiscal year presented.
Geographic Information
Net revenue by country is based upon the sales location that predominately represents the customer location. For each of the fiscal years of 2021, 2020 and 2019, other than the U.S., no country represented more than 10% of the Company's net revenue.
Net revenue by country was as follows:
 For the fiscal years ended October 31,
 202120202019
 In millions
Americas
U.S.$8,850 $9,162 $9,582 
Americas excluding U.S.1,825 1,700 1,922 
Total Americas10,675 10,862 11,504 
Europe, Middle East and Africa10,329 9,745 10,828 
Asia Pacific and Japan6,780 6,375 6,803 
Total consolidated net revenue$27,784 $26,982 $29,135 
Property, plant and equipment by country in which the Company's operates was as follows:
 As of October 31,
 20212020
 In millions
U.S. $2,811 $2,762 
Other countries2,802 2,863 
Total property, plant and equipment$5,613 $5,625