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Segment Information
6 Months Ended
Apr. 30, 2021
Segment Reporting [Abstract]  
Segment Information Segment InformationAs 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 & MCS, 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 description of each segment follows.
Compute portfolio offers 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 BladeSystem, and HPE Synergy. Compute offerings also include operational and support services.
High Performance Computing & Mission-Critical Solutions portfolio offers specialized compute servers designed to support specific workloads. The HPC portfolio of products includes the HPE Apollo and Cray high performance computing products that are often sold as supercomputing systems, including exascale supercomputers. The MCS portfolio includes the HPE Superdome Flex, HPE Nonstop and HPE Integrity product lines. The HPC & MCS segment also includes the Converged Edge Systems business which consists of the HPE Moonshot and HPE Edgeline products. HPC & MCS offerings also include operational and support services.
Storage portfolio offers 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 HPE Primera, HPE Nimble Storage 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. 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.
Intelligent Edge portfolio offers wired and wireless local area network ("LAN"), campus and data center switching, software-defined wide-area-networking, 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 software products for 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 ("aaS") and consumption models for the Intelligent Edge portfolio of products.
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.
Corporate Investments and Other includes 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 incubates other software related technology innovation; 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; and the Hewlett Packard Labs which is responsible for research and development.
Segment Policy
There have been no changes to the Company's segment accounting policies disclosed in the Company's Annual Report on Form 10-K for the fiscal year ended October 31, 2020, except for the organizational changes and the change in allocation of stock based compensation expense described in Note 1, "Overview and Summary of Significant Accounting Policies".
Hewlett Packard Enterprise does not allocate to its segments certain operating expenses, which it manages at the corporate level. These unallocated operating 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, acquisition, disposition and other related charges.
Segment Operating Results
Segment net revenue and operating results were as follows:
 ComputeHPC & MCSStorageIntelligent EdgeFinancial
Services
Corporate
Investments and Other
Total
 In millions
Three months ended April 30, 2021     
Net revenue$2,926 $664 $1,128 $797 $835 $350 $6,700 
Intersegment net revenue50 21 — 86 
Total segment net revenue$2,976 $685 $1,137 $799 $839 $350 $6,786 
Segment earnings (loss) from operations$335 $19 $191 $124 $91 $(25)$735 
Three months ended April 30, 2020     
Net revenue$2,549 $582 $1,060 $661 $830 $327 $6,009 
Intersegment net revenue106 25 26 165 
Total segment net revenue$2,655 $607 $1,086 $665 $833 $328 $6,174 
Segment earnings (loss) from operations$155 $46 $171 $82 $77 $(51)$480 
Six months ended April 30, 2021
Net revenue$5,856 $1,410 $2,302 $1,600 $1,694 $671 $13,533 
Intersegment net revenue106 37 28 — 181 
Total segment net revenue$5,962 $1,447 $2,330 $1,605 $1,699 $671 $13,714 
Segment earnings (loss) from operations$677 $62 $426 $276 $175 $(56)$1,560 
Six months ended April 30, 2020
Net revenue$5,531 $1,413 $2,297 $1,376 $1,687 $654 $12,958 
Intersegment net revenue154 33 41 243 
Total segment net revenue$5,685 $1,446 $2,338 $1,385 $1,692 $655 $13,201 
Segment earnings (loss) from operations$479 $109 $422 $169 $152 $(104)$1,227 
The reconciliation of segment operating results to Hewlett Packard Enterprise Condensed Consolidated Financial statements was as follows:
 Three Months Ended
April 30,
Six Months Ended
April 30,
 2021202020212020
 In millions
Net Revenue:   
Total segments$6,786 $6,174 $13,714 $13,201 
Eliminations of intersegment net revenue(86)(165)(181)(243)
Total Hewlett Packard Enterprise consolidated net revenue$6,700 $6,009 $13,533 $12,958 
Earnings before taxes:    
Total segment earnings from operations$735 $480 $1,560 $1,227 
Unallocated corporate costs and eliminations(50)(48)(102)(100)
Stock-based compensation expense(98)(67)(208)(160)
Amortization of initial direct costs(2)(3)(4)(6)
Amortization of intangible assets(84)(84)(194)(204)
Transformation costs(209)(200)(520)(289)
Disaster charges(1)(22)(1)(22)
Acquisition, disposition and other related charges(13)(25)(31)(67)
Impairment of goodwill— (865)— (865)
Interest and other, net(11)(68)(55)(87)
Tax indemnification adjustments— (35)(16)(56)
Non-service net periodic benefit credit17 36 34 73 
Earnings (loss) from equity interests(10)30 23 
Total Hewlett Packard Enterprise consolidated earnings (loss) before taxes$288 $(911)$493 $(533)

Total assets by segment and the reconciliation of segment assets to Hewlett Packard Enterprise consolidated total assets were as follows:
As of
April 30, 2021October 31, 2020
In millions
Compute$15,458 $14,962 
HPC & MCS5,957 6,245 
Storage6,569 6,438 
Intelligent Edge4,421 4,352 
Financial Services14,433 14,765 
Corporate Investments and Other 1,163 1,124 
Corporate and unallocated assets6,131 6,129 
Total Hewlett Packard Enterprise consolidated total assets$54,132 $54,015 
The Company’s net revenue by geographic region was as follows:
Three Months Ended April 30,Six Months Ended April 30,
2021202020212020
In millions
Americas:
United States$2,018 $1,906 $4,196 $4,224 
Americas excluding U.S.461 410 896 878 
Total Americas2,479 2,316 5,092 5,102 
Europe, Middle East and Africa2,554 2,198 5,174 4,758 
Asia Pacific and Japan1,667 1,495 3,267 3,098 
Total Hewlett Packard Enterprise consolidated net revenue$6,700 $6,009 $13,533 $12,958