Exhibit 99.1
HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES
FISCAL 2014 SEGMENT INFORMATION (Revised)
(Unaudited)
(In millions)
| | REVISED AMOUNTS | | AMOUNTS AS PREVIOUSLY REPORTED (b) | | VARIANCE | |
| | Three months ended | | Twelve months
ended | | Three months ended | | Twelve months
ended | | Three months ended | | Twelve
months
ended | |
| | Jan. 31,
2014 | | Apr. 30,
2014 | | Jul. 31,
2014 | | Oct. 31,
2014 | | Oct. 31,
2014 | | Jan. 31,
2014 | | Apr. 30,
2014 | | Jul. 31,
2014 | | Oct. 31,
2014 | | Oct. 31,
2014 | | Jan. 31,
2014 | | Apr. 30,
2014 | | Jul. 31,
2014 | | Oct. 31,
2014 | | Oct. 31,
2014 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net revenue: (a) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Enterprise Group | | $ | 6,967 | | $ | 6,631 | | $ | 6,879 | | $ | 7,250 | | $ | 27,727 | | $ | 6,967 | | $ | 6,631 | | $ | 6,879 | | $ | 7,250 | | $ | 27,727 | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | |
Enterprise Services | | 5,595 | | 5,702 | | 5,590 | | 5,511 | | 22,398 | | 5,595 | | 5,702 | | 5,590 | | 5,511 | | 22,398 | | — | | — | | — | | — | | — | |
Software | | 916 | | 971 | | 959 | | 1,087 | | 3,933 | | 916 | | 971 | | 959 | | 1,087 | | 3,933 | | — | | — | | — | | — | | — | |
Financial Services | | 870 | | 867 | | 855 | | 906 | | 3,498 | | 870 | | 867 | | 855 | | 906 | | 3,498 | | — | | — | | — | | — | | — | |
Corporate Investments | | 4 | | — | | — | | — | | 4 | | 4 | | — | | — | | — | | 4 | | — | | — | | — | | — | | — | |
Total segments | | 14,352 | | 14,171 | | 14,283 | | 14,754 | | 57,560 | | 14,352 | | 14,171 | | 14,283 | | 14,754 | | 57,560 | | — | | — | | — | | — | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Elimination of intersegment net revenue and other | | (580 | ) | (597 | ) | (579 | ) | (681 | ) | (2,437 | ) | (580 | ) | (597 | ) | (579 | ) | (681 | ) | (2,437 | ) | — | | — | | — | | — | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total HPE consolidated and combined net revenue | | $ | 13,772 | | $ | 13,574 | | $ | 13,704 | | $ | 14,073 | | $ | 55,123 | | $ | 13,772 | | $ | 13,574 | | $ | 13,704 | | $ | 14,073 | | $ | 55,123 | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Earnings before taxes: (a) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Enterprise Group | | $ | 985 | | $ | 931 | | $ | 933 | | $ | 1,060 | | $ | 3,909 | | $ | 998 | | $ | 951 | | $ | 965 | | $ | 1,091 | | $ | 4,005 | | $ | (13 | ) | $ | (20 | ) | $ | (32 | ) | $ | (31 | ) | $ | (96 | ) |
Enterprise Services | | 58 | | 149 | | 225 | | 386 | | 818 | | 58 | | 149 | | 225 | | 386 | | 818 | | — | | — | | — | | — | | — | |
Software | | 145 | | 187 | | 203 | | 336 | | 871 | | 145 | | 187 | | 203 | | 336 | | 871 | | — | | — | | — | | — | | — | |
Financial Services | | 101 | | 99 | | 80 | | 109 | | 389 | | 101 | | 99 | | 80 | | 109 | | 389 | | — | | — | | — | | — | | — | |
Corporate Investments | | (87 | ) | (65 | ) | (63 | ) | (30 | ) | (245 | ) | (100 | ) | (85 | ) | (95 | ) | (61 | ) | (341 | ) | 13 | | 20 | | 32 | | 31 | | 96 | |
Total segment earnings from operations | | 1,202 | | 1,301 | | 1,378 | | 1,861 | | 5,742 | | 1,202 | | 1,301 | | 1,378 | | 1,861 | | 5,742 | | — | | — | | — | | — | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Corporate and unallocated costs and eliminations | | (111 | ) | (147 | ) | (150 | ) | (184 | ) | (592 | ) | (111 | ) | (147 | ) | (150 | ) | (184 | ) | (592 | ) | — | | — | | — | | — | | — | |
Stock-based compensation expense | | (135 | ) | (97 | ) | (100 | ) | (95 | ) | (427 | ) | (135 | ) | (97 | ) | (100 | ) | (95 | ) | (427 | ) | — | | — | | — | | — | | — | |
Amortization of intangible assets | | (251 | ) | (243 | ) | (206 | ) | (206 | ) | (906 | ) | (251 | ) | (243 | ) | (206 | ) | (206 | ) | (906 | ) | — | | — | | — | | — | | — | |
Restructuring charges | | (122 | ) | (237 | ) | (565 | ) | (547 | ) | (1,471 | ) | (122 | ) | (237 | ) | (565 | ) | (547 | ) | (1,471 | ) | — | | — | | — | | — | | — | |
Acquisition and other related charges | | (2 | ) | (3 | ) | (3 | ) | (3 | ) | (11 | ) | (2 | ) | (3 | ) | (3 | ) | (3 | ) | (11 | ) | — | | — | | — | | — | | — | |
Interest and other, net | | (16 | ) | (31 | ) | (16 | ) | (28 | ) | (91 | ) | (16 | ) | (31 | ) | (16 | ) | (28 | ) | (91 | ) | — | | — | | — | | — | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total HPE consolidated and combined earnings before taxes | | $ | 565 | | $ | 543 | | $ | 338 | | $ | 798 | | $ | 2,244 | | $ | 565 | | $ | 543 | | $ | 338 | | $ | 798 | | $ | 2,244 | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | |
(a) Effective at the beginning of the fiscal 2016 the first quarter, HPE implemented organizational changes to align its segment financial reporting more closely with its current business structure. These organizational changes resulted in (i) within the Enterprise Group segment, the consolidation of the Industry Standard Servers and Business Critical Systems business units into the newly formed Servers business unit ; (ii) the transfer of certain Cloud-related marketing headcount activities from the Corporate Investment segment to the Enterprise Group segment. HPE reflected these changes to its segment information retrospectively to the earliest period presented, which resulted in: the consolidation of net revenue from the Industry Standard Servers and Business Critical Systems business units into the Servers business unit within the Enterprise Group segment; and the transfer of operating expenses from the Corporate Investment segment to the Enterprise Group segment. These changes had no impact on HPE’s previously reported consolidated and combined net revenue, earnings from operations, net earnings or net earnings per share.
(b) Derived based on the amounts presented in HPE’s filings with the SEC, Amendment No.2 and No.5 of Form 10, and the fiscal 2015 Form 10-K.
HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES
FISCAL 2014 SEGMENT INFORMATION (Revised)
(Unaudited)
| | REVISED AMOUNTS | | AMOUNTS AS PREVIOUSLY REPORTED (C) | | VARIANCE | |
| | Three months ended | | Twelve
months
ended | | Three months ended | | Twelve
months
ended | | Three months ended | | Twelve
months
ended | |
| | Jan. 31,
2014 | | Apr. 30,
2014 | | Jul. 31,
2014 | | Oct. 31,
2014 | | Oct. 31,
2014 | | Jan. 31,
2014 | | Apr. 30,
2014 | | Jul. 31,
2014 | | Oct. 31,
2014 | | Oct. 31,
2014 | | Jan. 31,
2014 | | Apr. 30,
2014 | | Jul. 31,
2014 | | Oct. 31,
2014 | | Oct. 31,
2014 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Segment operating margin: (a) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Enterprise Group | | 14.1 | % | 14.0 | % | 13.6 | % | 14.6 | % | 14.1 | % | 14.3 | % | 14.3 | % | 14.0 | % | 15.0 | % | 14.4 | % | (0.2 | )pts | (0.3 | )pts | (0.4 | )pts | (0.4 | )pts | (0.3 | )pts |
Enterprise Services | | 1.0 | % | 2.6 | % | 4.0 | % | 7.0 | % | 3.7 | % | 1.0 | % | 2.6 | % | 4.0 | % | 7.0 | % | 3.7 | % | — | | — | | — | | — | | — | |
Software | | 15.8 | % | 19.3 | % | 21.2 | % | 30.9 | % | 22.1 | % | 15.8 | % | 19.3 | % | 21.2 | % | 30.9 | % | 22.1 | % | — | | — | | — | | — | | — | |
Financial Services | | 11.6 | % | 11.4 | % | 9.4 | % | 12.0 | % | 11.1 | % | 11.6 | % | 11.4 | % | 9.4 | % | 12.0 | % | 11.1 | % | — | | — | | — | | — | | — | |
Corporate Investments (b) | | NM | | NM | | NM | | NM | | NM | | NM | | NM | | NM | | NM | | NM | | NM | | NM | | NM | | NM | | NM | |
Total segment earnings from operations | | 8.4 | % | 9.2 | % | 9.6 | % | 12.6 | % | 10.0 | % | 8.4 | % | 9.2 | % | 9.6 | % | 12.6 | % | 10.0 | % | — | | — | | — | | — | | — | |
(a) Effective at the beginning of the fiscal 2016 the first quarter, HPE implemented organizational changes to align its segment financial reporting more closely with its current business structure. These organizational changes resulted in (i) within the Enterprise Group segment, the consolidation of the Industry Standard Servers and Business Critical Systems business units into the newly formed Servers business unit; (ii)the transfer of certain Cloud-related marketing headcount activities from the Corporate Investment segment to the Enterprise Group segment. HPE reflected these changes to its segment information retrospectively to the earliest period presented, which resulted in: the consolidation of net revenue from the Industry Standard Servers and Business Critical Systems business units into the Servers business unit within the Enterprise Group segment; and the transfer of operating expenses from the Corporate Investment segment to the Enterprise Group segment. These changes had no impact on HPE’s previously reported consolidated and combined net revenue, earnings from operations, net earnings or net earnings per share.
(b) “NM” represents not meaningful.
(c) Derived based on the amounts presented in HPE’s filings with the SEC, Amendment No.2 and No.5 of Form 10, and the fiscal 2015 Form 10-K.
HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES
FISCAL 2014 SEGMENT / BUSINESS UNIT INFORMATION (Revised)
(Unaudited)
(In millions)
| | REVISED AMOUNTS | | AMOUNTS AS PREVIOUSLY REPORTED (b) | | VARIANCE | |
| | Three months ended | | Twelve
months
ended | | Three months ended | | Twelve
months
ended | | Three months ended | | Twelve
months
ended | |
| | Jan. 31,
2014 | | Apr. 30,
2014 | | Jul. 31,
2014 | | Oct. 31,
2014 | | Oct. 31,
2014 | | Jan. 31,
2014 | | Apr. 30,
2014 | | Jul. 31,
2014 | | Oct. 31,
2014 | | Oct. 31,
2014 | | Jan. 31,
2014 | | Apr. 30,
2014 | | Jul. 31,
2014 | | Oct. 31,
2014 | | Oct. 31,
2014 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net revenue: (a) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Enterprise Group | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Servers | | $ | 3,403 | | $ | 3,060 | | $ | 3,330 | | $ | 3,608 | | $ | 13,401 | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 3,403 | | $ | 3,060 | | $ | 3,330 | | $ | 3,608 | | $ | 13,401 | |
Technology Services | | 2,100 | | 2,106 | | 2,082 | | 2,095 | | 8,383 | | 2,100 | | 2,106 | | 2,082 | | 2,095 | | 8,383 | | — | | — | | — | | — | | — | |
Storage | | 834 | | 807 | | 796 | | 878 | | 3,315 | | 834 | | 807 | | 796 | | 878 | | 3,315 | | — | | — | | — | | — | | — | |
Networking | | 630 | | 658 | | 671 | | 669 | | 2,628 | | 630 | | 658 | | 671 | | 669 | | 2,628 | | — | | — | | — | | — | | — | |
Industry Standard Servers | | — | | — | | — | | — | | — | | 3,175 | | 2,830 | | 3,097 | | 3,370 | | 12,472 | | (3,175 | ) | (2,830 | ) | (3,097 | ) | (3,370 | ) | (12,472 | ) |
Business Critical Systems | | — | | — | | — | | — | | — | | 228 | | 230 | | 233 | | 238 | | 929 | | (228 | ) | (230 | ) | (233 | ) | (238 | ) | (929 | ) |
Total Enterprise Group | | 6,967 | | 6,631 | | 6,879 | | 7,250 | | 27,727 | | 6,967 | | 6,631 | | 6,879 | | 7,250 | | 27,727 | | — | | — | | — | | — | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Enterprise Services | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Infrastructure Technology Outsourcing | | 3,500 | | 3,597 | | 3,495 | | 3,446 | | 14,038 | | 3,500 | | 3,597 | | 3,495 | | 3,446 | | 14,038 | | — | | — | | — | | — | | — | |
Application and Business Services | | 2,095 | | 2,105 | | 2,095 | | 2,065 | | 8,360 | | 2,095 | | 2,105 | | 2,095 | | 2,065 | | 8,360 | | — | | — | | — | | — | | — | |
Total Enterprise Services | | 5,595 | | 5,702 | | 5,590 | | 5,511 | | 22,398 | | 5,595 | | 5,702 | | 5,590 | | 5,511 | | 22,398 | | — | | — | | — | | — | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Software | | 916 | | 971 | | 959 | | 1,087 | | 3,933 | | 916 | | 971 | | 959 | | 1,087 | | 3,933 | | — | | — | | — | | — | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Financial Services | | 870 | | 867 | | 855 | | 906 | | 3,498 | | 870 | | 867 | | 855 | | 906 | | 3,498 | | — | | — | | — | | — | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Corporate Investments | | 4 | | — | | — | | — | | 4 | | 4 | | — | | — | | — | | 4 | | — | | — | | — | | — | | — | |
Total segments | | 14,352 | | 14,171 | | 14,283 | | 14,754 | | 57,560 | | 14,352 | | 14,171 | | 14,283 | | 14,754 | | 57,560 | | — | | — | | — | | — | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Elimination of intersegment net revenue and other | | (580 | ) | (597 | ) | (579 | ) | (681 | ) | (2,437 | ) | (580 | ) | (597 | ) | (579 | ) | (681 | ) | (2,437 | ) | — | | — | | — | | — | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total HPE consolidated and combined net revenue | | $ | 13,772 | | $ | 13,574 | | $ | 13,704 | | $ | 14,073 | | $ | 55,123 | | $ | 13,772 | | $ | 13,574 | | $ | 13,704 | | $ | 14,073 | | $ | 55,123 | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | |
(a) Effective at the beginning of the fiscal 2016 the first quarter, HPE implemented organizational changes to align its segment financial reporting more closely with its current business structure. These organizational changes resulted in (i) within the Enterprise Group segment, the consolidation of the Industry Standard Servers and Business Critical Systems business units into the newly formed Servers business unit; (ii)the transfer of certain Cloud-related marketing headcount activities from the Corporate Investment segment to the Enterprise Group segment. HPE reflected these changes to its segment information retrospectively to the earliest period presented, which resulted in: the consolidation of net revenue from the Industry Standard Servers and Business Critical Systems business units into the Servers business unit within the Enterprise Group segment; and the transfer of operating expenses from the Corporate Investment segment to the Enterprise Group segment. These changes had no impact on HPE’s previously reported consolidated and combined net revenue, earnings from operations, net earnings or net earnings per share.
(b) Derived based on the amounts presented in HPE’s filings with the SEC, Amendment No.2 and No.5 of Form 10, and the fiscal 2015 Form 10-K.
HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES
FISCAL 2015 SEGMENT INFORMATION (Revised)
(Unaudited)
(In millions)
| | REVISED AMOUNTS | | AMOUNTS AS PREVIOUSLY REPORTED (b) | | VARIANCE | |
| | Three months ended | | Twelve months
ended | | Three months ended | | Twelve
months
ended | | Three months ended | | Twelve
months
ended | |
| | Jan. 31,
2015 | | Apr. 30,
2015 | | Jul. 31,
2015 | | Oct. 31,
2015 | | Oct. 31,
2015 | | Jan. 31,
2015 | | Apr. 30,
2015 | | Jul. 31,
2015 | | Oct. 31,
2015 | | Oct. 31,
2015 | | Jan. 31,
2015 | | Apr. 30,
2015 | | Jul. 31,
2015 | | Oct. 31,
2015 | | Oct. 31,
2015 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net revenue: (a) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Enterprise Group | | $ | 6,982 | | $ | 6,560 | | $ | 7,007 | | $ | 7,358 | | $ | 27,907 | | $ | 6,982 | | $ | 6,560 | | $ | 7,007 | | $ | 7,358 | | $ | 27,907 | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | |
Enterprise Services | | 4,993 | | 4,817 | | 4,976 | | 5,020 | | 19,806 | | 4,993 | | 4,817 | | 4,976 | | 5,020 | | 19,806 | | — | | — | | — | | — | | — | |
Software | | 870 | | 892 | | 901 | | 959 | | 3,622 | | 870 | | 892 | | 901 | | 959 | | 3,622 | | — | | — | | — | | — | | — | |
Financial Services | | 803 | | 805 | | 807 | | 801 | | 3,216 | | 803 | | 805 | | 807 | | 801 | | 3,216 | | — | | — | | — | | — | | — | |
Corporate Investments | | 4 | | 1 | | 1 | | 1 | | 7 | | 4 | | 1 | | 1 | | 1 | | 7 | | — | | — | | — | | — | | — | |
Total segments | | 13,652 | | 13,075 | | 13,692 | | 14,139 | | 54,558 | | 13,652 | | 13,075 | | 13,692 | | 14,139 | | 54,558 | | — | | — | | — | | — | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Elimination of intersegment net revenue and other | | (599 | ) | (526 | ) | (635 | ) | (691 | ) | (2,451 | ) | (599 | ) | (526 | ) | (635 | ) | (691 | ) | (2,451 | ) | — | | — | | — | | — | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total HPE consolidated and combined net revenue | | $ | 13,053 | | $ | 12,549 | | $ | 13,057 | | $ | 13,448 | | $ | 52,107 | | $ | 13,053 | | $ | 12,549 | | $ | 13,057 | | $ | 13,448 | | $ | 52,107 | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Earnings before taxes: (a) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Enterprise Group | | $ | 1,058 | | $ | 923 | | $ | 881 | | $ | 1,000 | | $ | 3,862 | | $ | 1,091 | | $ | 950 | | $ | 911 | | $ | 1,029 | | $ | 3,981 | | $ | (33 | ) | $ | (27 | ) | $ | (30 | ) | $ | (29 | ) | $ | (119 | ) |
Enterprise Services | | 150 | | 172 | | 285 | | 412 | | 1,019 | | 150 | | 172 | | 285 | | 412 | | 1,019 | | — | | — | | — | | — | | — | |
Software | | 157 | | 159 | | 185 | | 287 | | 788 | | 157 | | 159 | | 185 | | 287 | | 788 | | — | | — | | — | | — | | — | |
Financial Services | | 90 | | 85 | | 87 | | 87 | | 349 | | 90 | | 85 | | 87 | | 87 | | 349 | | — | | — | | — | | — | | — | |
Corporate Investments | | (91 | ) | (108 | ) | (109 | ) | (115 | ) | (423 | ) | (124 | ) | (135 | ) | (139 | ) | (144 | ) | (542 | ) | 33 | | 27 | | 30 | | 29 | | 119 | |
Total segment earnings from operations | | 1,364 | | 1,231 | | 1,329 | | 1,671 | | 5,595 | | 1,364 | | 1,231 | | 1,329 | | 1,671 | | 5,595 | | — | | — | | — | | — | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Corporate and unallocated costs and eliminations | | (110 | ) | (76 | ) | (104 | ) | (164 | ) | (454 | ) | (110 | ) | (76 | ) | (104 | ) | (164 | ) | (454 | ) | — | | — | | — | | — | | — | |
Unallocated costs related to stock-based compensation expense | | (139 | ) | (97 | ) | (117 | ) | (212 | ) | (565 | ) | (139 | ) | (97 | ) | (117 | ) | (212 | ) | (565 | ) | — | | — | | — | | — | | — | |
Amortization of intangible assets | | (203 | ) | (204 | ) | (225 | ) | (220 | ) | (852 | ) | (203 | ) | (204 | ) | (225 | ) | (220 | ) | (852 | ) | — | | — | | — | | — | | — | |
Restructuring charges | | (132 | ) | (248 | ) | (24 | ) | (550 | ) | (954 | ) | (132 | ) | (248 | ) | (24 | ) | (550 | ) | (954 | ) | — | | — | | — | | — | | — | |
Acquisition and other related charges | | (4 | ) | (19 | ) | (46 | ) | (20 | ) | (89 | ) | (4 | ) | (19 | ) | (46 | ) | (20 | ) | (89 | ) | — | | — | | — | | — | | — | |
Separation costs | | (44 | ) | (159 | ) | (255 | ) | (339 | ) | (797 | ) | (44 | ) | (159 | ) | (255 | ) | (339 | ) | (797 | ) | — | | — | | — | | — | | — | |
Defined benefit plan settlement charges | | — | | — | | (178 | ) | (47 | ) | (225 | ) | — | | — | | (178 | ) | (47 | ) | (225 | ) | — | | — | | — | | — | | — | |
Impairment of data center assets | | — | | — | | (136 | ) | | | (136 | ) | — | | — | | (136 | ) | | | (136 | ) | — | | — | | — | | — | | — | |
Interest and other, net | | (18 | ) | (30 | ) | 4 | | (9 | ) | (53 | ) | (18 | ) | (30 | ) | 4 | | (9 | ) | (53 | ) | — | | — | | — | | — | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total HPE consolidated and combined earnings before taxes | | $ | 714 | | $ | 398 | | $ | 248 | | $ | 110 | | $ | 1,470 | | $ | 714 | | $ | 398 | | $ | 248 | | $ | 110 | | $ | 1,470 | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | |
(a) Effective at the beginning of the fiscal 2016 the first quarter, HPE implemented organizational changes to align its segment financial reporting more closely with its current business structure. These organizational changes resulted in (i) within the Enterprise Group segment, the consolidation of the Industry Standard Servers and Business Critical Systems business units into the newly formed Servers business unit; (ii)the transfer of certain Cloud-related marketing headcount activities from the Corporate Investment segment to the Enterprise Group segment. HPE reflected these changes to its segment information retrospectively to the earliest period presented, which resulted in: the consolidation of net revenue from the Industry Standard Servers and Business Critical Systems business units into the Servers business unit within the Enterprise Group segment; and the transfer of operating expenses from the Corporate Investment segment to the Enterprise Group segment. These changes had no impact on HPE’s previously reported consolidated and combined net revenue, earnings from operations, net earnings or net earnings per share.
(b) Derived based on the amounts presented in HPE’s filings with the SEC, Amendment No.2 and No.5 of Form 10, and the fiscal 2015 Form 10-K.
HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES
FISCAL 2015 SEGMENT INFORMATION (Revised)
(Unaudited)
| | REVISED AMOUNTS | | AMOUNTS AS PREVIOUSLY REPORTED (C) | | VARIANCE | |
| | Three months ended | | Twelve
months
ended | | Three months ended | | Twelve
months
ended | | Three months ended | | Twelve
months
ended | |
| | Jan. 31,
2015 | | Apr. 30,
2015 | | Jul. 31,
2015 | | Oct. 31,
2015 | | Oct. 31,
2015 | | Jan. 31,
2015 | | Apr. 30,
2015 | | Jul. 31,
2015 | | Oct. 31,
2015 | | Oct. 31,
2015 | | Jan. 31,
2015 | | Apr. 30,
2015 | | Jul. 31,
2015 | | Oct. 31,
2015 | | Oct. 31,
2015 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Segment operating margin: (a) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Enterprise Group | | 15.2 | % | 14.1 | % | 12.6 | % | 13.6 | % | 13.8 | % | 15.6 | % | 14.5 | % | 13.0 | % | 14.0 | % | 14.3 | % | (0.4 | )pts | (0.4 | )pts | (0.4 | )pts | (0.4 | )pts | (0.5 | )pts |
Enterprise Services | | 3.0 | % | 3.6 | % | 5.7 | % | 8.2 | % | 5.1 | % | 3.0 | % | 3.6 | % | 5.7 | % | 8.2 | % | 5.1 | % | — | | — | | — | | — | | — | |
Software | | 18.0 | % | 17.8 | % | 20.5 | % | 29.9 | % | 21.8 | % | 18.0 | % | 17.8 | % | 20.5 | % | 29.9 | % | 21.8 | % | — | | — | | — | | — | | — | |
Financial Services | | 11.2 | % | 10.6 | % | 10.8 | % | 10.9 | % | 10.9 | % | 11.2 | % | 10.6 | % | 10.8 | % | 10.9 | % | 10.9 | % | — | | — | | — | | — | | — | |
Corporate Investments (b) | | NM | | NM | | NM | | NM | | NM | | NM | | NM | | NM | | NM | | NM | | NM | | NM | | NM | | NM | | NM | |
Total segment earnings from operations | | 10.0 | % | 9.4 | % | 9.7 | % | 11.8 | % | 10.3 | % | 10.0 | % | 9.4 | % | 9.7 | % | 11.8 | % | 10.3 | % | — | | — | | — | | — | | — | |
(a) Effective at the beginning of the fiscal 2016 the first quarter, HPE implemented organizational changes to align its segment financial reporting more closely with its current business structure. These organizational changes resulted in (i) within the Enterprise Group segment, the consolidation of the Industry Standard Servers and Business Critical Systems business units into the newly formed Servers business unit; (ii)the transfer of certain Cloud-related marketing headcount activities from the Corporate Investment segment to the Enterprise Group segment. HPE reflected these changes to its segment information retrospectively to the earliest period presented, which resulted in: the consolidation of net revenue from the Industry Standard Servers and Business Critical Systems business units into the Servers business unit within the Enterprise Group segment; and the transfer of operating expenses from the Corporate Investment segment to the Enterprise Group segment. These changes had no impact on HPE’s previously reported consolidated and combined net revenue, earnings from operations, net earnings or net earnings per share.
(b) “NM” represents not meaningful.
(c) Derived based on the amounts presented in HPE’s filings with the SEC, Amendment No.2 and No.5 of Form 10, and the fiscal 2015 Form 10-K.
HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES
FISCAL 2015 SEGMENT / BUSINESS UNIT INFORMATION (Revised)
(Unaudited)
(In millions)
| | REVISED AMOUNTS | | AMOUNTS AS PREVIOUSLY REPORTED (b) | | VARIANCE | |
| | Three months ended | | Twelve
months
ended | | Three months ended | | Twelve
months
ended | | Three months ended | | Twelve
months
ended | |
| | Jan. 31,
2015 | | Apr. 30,
2015 | | Jul. 31,
2015 | | Oct. 31,
2015 | | Oct. 31,
2015 | | Jan. 31,
2015 | | Apr. 30,
2015 | | Jul. 31,
2015 | | Oct. 31,
2015 | | Oct. 31,
2015 | | Jan. 31,
2015 | | Apr. 30,
2015 | | Jul. 31,
2015 | | Oct. 31,
2015 | | Oct. 31,
2015 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net revenue: (a) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Enterprise Group | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Servers | | $ | 3,595 | | $ | 3,332 | | $ | 3,520 | | $ | 3,772 | | $ | 14,219 | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 3,595 | | $ | 3,332 | | $ | 3,520 | | $ | 3,772 | | $ | 14,219 | |
Technology Services | | 1,988 | | 1,932 | | 1,880 | | 1,862 | | 7,662 | | 1,988 | | 1,932 | | 1,880 | | 1,862 | | 7,662 | | — | | — | | — | | — | | — | |
Storage | | 837 | | 740 | | 784 | | 819 | | 3,180 | | 837 | | 740 | | 784 | | 819 | | 3,180 | | — | | — | | — | | — | | — | |
Networking | | 562 | | 556 | | 823 | | 905 | | 2,846 | | 562 | | 556 | | 823 | | 905 | | 2,846 | | — | | — | | — | | — | | — | |
Industry Standard Servers | | — | | — | | — | | — | | — | | 3,387 | | 3,137 | | 3,336 | | 3,552 | | 13,412 | | (3,387 | ) | (3,137 | ) | (3,336 | ) | (3,552 | ) | (13,412 | ) |
Business Critical Systems | | — | | — | | — | | — | | — | | 208 | | 195 | | 184 | | 220 | | 807 | | (208 | ) | (195 | ) | (184 | ) | (220 | ) | (807 | ) |
Total Enterprise Group | | 6,982 | | 6,560 | | 7,007 | | 7,358 | | 27,907 | | 6,982 | | 6,560 | | 7,007 | | 7,358 | | 27,907 | | — | | — | | — | | — | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Enterprise Services | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Infrastructure Technology Outsourcing | | 3,132 | | 2,871 | | 3,036 | | 3,068 | | 12,107 | | 3,132 | | 2,871 | | 3,036 | | 3,068 | | 12,107 | | — | | — | | — | | — | | — | |
Application and Business Services | | 1,861 | | 1,946 | | 1,940 | | 1,952 | | 7,699 | | 1,861 | | 1,946 | | 1,940 | | 1,952 | | 7,699 | | — | | — | | — | | — | | — | |
Total Enterprise Services | | 4,993 | | 4,817 | | 4,976 | | 5,020 | | 19,806 | | 4,993 | | 4,817 | | 4,976 | | 5,020 | | 19,806 | | — | | — | | — | | — | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Software | | 870 | | 892 | | 901 | | 959 | | 3,622 | | 870 | | 892 | | 901 | | 959 | | 3,622 | | — | | — | | — | | — | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Financial Services | | 803 | | 805 | | 807 | | 801 | | 3,216 | | 803 | | 805 | | 807 | | 801 | | 3,216 | | — | | — | | — | | — | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Corporate Investments | | 4 | | 1 | | 1 | | 1 | | 7 | | 4 | | 1 | | 1 | | 1 | | 7 | | — | | — | | — | | — | | — | |
Total segments | | 13,652 | | 13,075 | | 13,692 | | 14,139 | | 54,558 | | 13,652 | | 13,075 | | 13,692 | | 14,139 | | 54,558 | | — | | — | | — | | — | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Elimination of intersegment net revenue and other | | (599 | ) | (526 | ) | (635 | ) | (691 | ) | (2,451 | ) | (599 | ) | (526 | ) | (635 | ) | (691 | ) | (2,451 | ) | — | | — | | — | | — | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total HPE consolidated and combined net revenue | | $ | 13,053 | | $ | 12,549 | | $ | 13,057 | | $ | 13,448 | | $ | 52,107 | | $ | 13,053 | | $ | 12,549 | | $ | 13,057 | | $ | 13,448 | | $ | 52,107 | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | |
(a)Effective at the beginning of the fiscal 2016 the first quarter, HPE implemented organizational changes to align its segment financial reporting more closely with its current business structure. These organizational changes resulted in (i) within the Enterprise Group segment, the consolidation of the Industry Standard Servers and Business Critical Systems business units into the newly formed Servers business unit; (ii) the transfer of certain Cloud-related marketing headcount activities from the Corporate Investment segment to the Enterprise Group segment. HPE reflected these changes to its segment information retrospectively to the earliest period presented, which resulted in: the consolidation of net revenue from the Industry Standard Servers and Business Critical Systems business units into the Servers business unit within the Enterprise Group segment; and the transfer of operating expenses from the Corporate Investment segment to the Enterprise Group segment. These changes had no impact on HPE’s previously reported consolidated and combined net revenue, earnings from operations, net earnings or net earnings per share.
(b) Derived based on the amounts presented in HPE’s filings with the SEC, Amendment No.2 and No.5 of Form 10, and the fiscal 2015 Form 10-K.
