Exhibit 99.1
HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES
FISCAL 2015 SEGMENT INFORMATION (Revised)
(Unaudited)
(In millions)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | REVISED AMOUNTS | | AMOUNTS AS PREVIOUSLY REPORTED | | 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 | $ | 7,138 |
| | $ | 6,714 |
| | $ | 7,145 |
| | $ | 7,514 |
| | $ | 28,511 |
| | $ | 6,982 |
| | $ | 6,560 |
| | $ | 7,007 |
| | $ | 7,358 |
| | $ | 27,907 |
| | $ | 156 |
| | $ | 154 |
| | $ | 138 |
| | $ | 156 |
| | $ | 604 |
|
| Enterprise Services | 4,837 |
| | 4,662 |
| | 4,837 |
| | 4,861 |
| | 19,197 |
| | 4,993 |
| | 4,817 |
| | 4,976 |
| | 5,020 |
| | 19,806 |
| | (156 | ) | | (155 | ) | | (139 | ) | | (159 | ) | | (609 | ) |
| 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 |
| | 13,074 |
| | 13,691 |
| | 14,136 |
| | 54,553 |
| | 13,652 |
| | 13,075 |
| | 13,692 |
| | 14,139 |
| | 54,558 |
| | — |
| | (1 | ) | | (1 | ) | | (3 | ) | | (5 | ) |
| Elimination of intersegment net revenue and other | (599 | ) | | (525 | ) | | (634 | ) | | (688 | ) | | (2,446 | ) | | (599 | ) | | (526 | ) | | (635 | ) | | (691 | ) | | (2,451 | ) | | — |
| | 1 |
| | 1 |
| | 3 |
| | 5 |
|
| 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 | $ | 1,092 |
| | $ | 963 |
| | $ | 910 |
| | $ | 1,034 |
| | $ | 3,999 |
| | $ | 1,058 |
| | $ | 923 |
| | $ | 881 |
| | $ | 1,000 |
| | $ | 3,862 |
| | $ | 34 |
| | $ | 40 |
| | $ | 29 |
| | $ | 34 |
| | $ | 137 |
|
| Enterprise Services | 116 |
| | 132 |
| | 256 |
| | 378 |
| | 882 |
| | 150 |
| | 172 |
| | 285 |
| | 412 |
| | 1,019 |
| | (34 | ) | | (40 | ) | | (29 | ) | | (34 | ) | | (137 | ) |
| 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 | ) | | (91 | ) | | (108 | ) | | (109 | ) | | (115 | ) | | (423 | ) | | — |
| | — |
| | — |
| | — |
| | — |
|
| 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 | ) | | — |
| | — |
| | — |
| | — |
| | — |
|
| 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 | (16 | ) | | (30 | ) | | 4 |
| | (9 | ) | | (51 | ) | | (16 | ) | | (30 | ) | | 4 |
| | (9 | ) | | (51 | ) | | — |
| | — |
| | — |
| | — |
| | — |
|
| Loss from equity interests | (2 | ) | | — |
| | — |
| | — |
| | (2 | ) | | (2 | ) | | — |
| | — |
| | — |
| | (2 | ) | | — |
| | — |
| | — |
| | — |
| | — |
|
| 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 first quarter of fiscal 2017, the Company implemented organizational changes to align its segment financial reporting more closely with its current business structure. These organizational changes primarily resulted in the transfer of the Communications and Media Solutions product group previously reported within the Enterprise Services segment to the Technology Services business unit within the Enterprise Group segment.
The Company reflected these changes to its segment information retrospectively to the earliest period presented, which primarily resulted in the transfer of net revenue, related eliminations of interesegment revenues and operating profit related to the Communications and Media Solutions product group previously reported within the Enterprise Services segment to the Technology Services business unit within the Enterprise Group segment.
The change had no impact on Hewlett Packard Enterprise's previously reported consolidated net revenue, earnings from operations, net earnings or net earnings per share.
HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES
FISCAL 2015 SEGMENT INFORMATION (Revised)
(Unaudited)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | REVISED AMOUNTS | | AMOUNTS AS PREVIOUSLY REPORTED | | 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 | 15.3 | % | | 14.3 | % | | 12.7 | % | | 13.8 | % | | 14.0 | % | | 15.2 | % | | 14.1 | % | | 12.6 | % | | 13.6 | % | | 13.8 | % | | 0.1 | pts | | 0.2 | pts | | 0.1 | pts | | 0.2 | pts | | 0.2 | pts |
| Enterprise Services | 2.4 | % | | 2.8 | % | | 5.3 | % | | 7.8 | % | | 4.6 | % | | 3.0 | % | | 3.6 | % | | 5.7 | % | | 8.2 | % | | 5.1 | % | | (0.6 | pts) | | (0.8 | pts) | | (0.4 | pts) | | (0.4 | pts) | | (0.5 | pts) |
| 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 first quarter of fiscal 2017, the Company implemented organizational changes to align its segment financial reporting more closely with its current business structure. These organizational changes primarily resulted in the transfer of the Communications and Media Solutions product group previously reported within the Enterprise Services segment to the Technology Services business unit within the Enterprise Group segment.
The Company reflected these changes to its segment information retrospectively to the earliest period presented, which primarily resulted in the transfer of net revenue, related eliminations of intersegment revenues and operating profit related to the Communications and Media Solutions product group previously reported within the Enterprise Services segment to the Technology Services business unit within the Enterprise Group segment.
The change had no impact on Hewlett Packard Enterprise's previously reported consolidated net revenue, earnings from operations, net earnings or net earnings per share.
(b) “NM” represents not meaningful.
HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES
FISCAL 2015 SEGMENT / BUSINESS UNIT INFORMATION (Revised)
(Unaudited)
(In millions)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | REVISED AMOUNTS | | AMOUNTS AS PREVIOUSLY REPORTED | | 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 | $ | 3,590 |
| | $ | 3,329 |
| | $ | 3,516 |
| | $ | 3,767 |
| | $ | 14,202 |
| | $ | 3,595 |
| | $ | 3,332 |
| | $ | 3,520 |
| | $ | 3,772 |
| | $ | 14,219 |
| | $ | (5 | ) | | $ | (3 | ) | | $ | (4 | ) | | $ | (5 | ) | | $ | (17 | ) |
| Technology Services | 2,144 |
| | 2,086 |
| | 2,018 |
| | 2,018 |
| | 8,266 |
| | 1,988 |
| | 1,932 |
| | 1,880 |
| | 1,862 |
| | 7,662 |
| | 156 |
| | 154 |
| | 138 |
| | 156 |
| | 604 |
|
| Storage | 837 |
| | 740 |
| | 784 |
| | 819 |
| | 3,180 |
| | 837 |
| | 740 |
| | 784 |
| | 819 |
| | 3,180 |
| | — |
| | — |
| | — |
| | — |
| | — |
|
| Networking | 567 |
| | 559 |
| | 827 |
| | 910 |
| | 2,863 |
| | 562 |
| | 556 |
| | 823 |
| | 905 |
| | 2,846 |
| | 5 |
| | 3 |
| | 4 |
| | 5 |
| | 17 |
|
| Total Enterprise Group | 7,138 |
| | 6,714 |
| | 7,145 |
| | 7,514 |
| | 28,511 |
| | 6,982 |
| | 6,560 |
| | 7,007 |
| | 7,358 |
| | 27,907 |
| | 156 |
| | 154 |
| | 138 |
| | 156 |
| | 604 |
|
| 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 | 1,705 |
| | 1,791 |
| | 1,801 |
| | 1,793 |
| | 7,090 |
| | 1,861 |
| | 1,946 |
| | 1,940 |
| | 1,952 |
| | 7,699 |
| | (156 | ) | | (155 | ) | | (139 | ) | | (159 | ) | | (609 | ) |
| Total Enterprise Services | 4,837 |
| | 4,662 |
| | 4,837 |
| | 4,861 |
| | 19,197 |
| | 4,993 |
| | 4,817 |
| | 4,976 |
| | 5,020 |
| | 19,806 |
| | (156 | ) | | (155 | ) | | (139 | ) | | (159 | ) | | (609 | ) |
| 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 |
| | 13,074 |
| | 13,691 |
| | 14,136 |
| | 54,553 |
| | 13,652 |
| | 13,075 |
| | 13,692 |
| | 14,139 |
| | 54,558 |
| | — |
| | (1 | ) | | (1 | ) | | (3 | ) | | (5 | ) |
| Elimination of intersegment net revenue and other | (599 | ) | | (525 | ) | | (634 | ) | | (688 | ) | | (2,446 | ) | | (599 | ) | | (526 | ) | | (635 | ) | | (691 | ) | | (2,451 | ) | | — |
| | 1 |
| | 1 |
| | 3 |
| | 5 |
|
| 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 first quarter of fiscal 2017, the Company implemented organizational changes to align its segment financial reporting more closely with its current business structure. These organizational changes resulted in: (i) the transfer of the Communications and Media Solutions product group previously reported within the Enterprise Services segment to the Technology Services business unit within the Enterprise Group segment; and (ii) the transfer of the certain server technologies previously reported within the Servers business unit to the Networking business unit.
The Company reflected these changes to its segment information retrospectively to the earliest period presented, which resulted in: (i) the transfer of net revenue, related eliminations of intersegment revenues and operating profit related to the Communications and Media Solutions product group previously reported within the Enterprise Services segment to the Technology Services business unit within the Enterprise Group segment; and (ii) the transfer of net revenue from certain server technologies previously reported within the Servers business unit to the Networking business unit.
These changes had no impact on Hewlett Packard Enterprise's previously reported consolidated net revenue, earnings from operations, net earnings or net earnings per share.
HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES
FISCAL 2016 SEGMENT INFORMATION (Revised)
(Unaudited)
(In millions)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | REVISED AMOUNTS | | AMOUNTS AS PREVIOUSLY REPORTED | | VARIANCE |
| | Three months ended | | Twelve months ended | | Three months ended | | Twelve months ended | | Three months ended | | Twelve months ended |
| | Jan. 31, 2016 | | Apr. 30, 2016 | | Jul. 31, 2016 | | Oct. 31, 2016 | | Oct. 31, 2016 | | Jan. 31, 2016 | | Apr. 30, 2016 | | Jul. 31, 2016 | | Oct. 31, 2016 | | Oct. 31, 2016 | | Jan. 31, 2016 | | Apr. 30, 2016 | | Jul. 31, 2016 | | Oct. 31, 2016 | | Oct. 31, 2016 |
Net revenue: (a) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Enterprise Group | $ | 7,182 |
| | $ | 7,159 |
| | $ | 6,615 |
| | $ | 6,823 |
| | $ | 27,779 |
| | $ | 7,051 |
| | $ | 7,010 |
| | $ | 6,476 |
| | $ | 6,682 |
| | $ | 27,219 |
| | $ | 131 |
| | $ | 149 |
| | $ | 139 |
| | $ | 141 |
| | $ | 560 |
|
| Enterprise Services | 4,555 |
| | 4,569 |
| | 4,582 |
| | 4,590 |
| | 18,296 |
| | 4,688 |
| | 4,723 |
| | 4,725 |
| | 4,736 |
| | 18,872 |
| | (133 | ) | | (154 | ) | | (143 | ) | | (146 | ) | | (576 | ) |
| Software | 780 |
| | 774 |
| | 738 |
| | 903 |
| | 3,195 |
| | 780 |
| | 774 |
| | 738 |
| | 903 |
| | 3,195 |
| | — |
| | — |
| | — |
| | — |
| | — |
|
| Financial Services | 776 |
| | 788 |
| | 812 |
| | 814 |
| | 3,190 |
| | 776 |
| | 788 |
| | 812 |
| | 814 |
| | 3,190 |
| | — |
| | — |
| | — |
| | — |
| | — |
|
| Corporate Investments | 1 |
| | 2 |
| | — |
| | — |
| | 3 |
| | 1 |
| | 2 |
| | — |
| | — |
| | 3 |
| | — |
| | — |
| | — |
| | — |
| | — |
|
| Total segments | 13,294 |
| | 13,292 |
| | 12,747 |
| | 13,130 |
| | 52,463 |
| | 13,296 |
| | 13,297 |
| | 12,751 |
| | 13,135 |
| | 52,479 |
| | (2 | ) | | (5 | ) | | (4 | ) | | (5 | ) | | (16 | ) |
| Elimination of intersegment net revenue and other | (570 | ) | | (581 | ) | | (537 | ) | | (652 | ) | | (2,340 | ) | | (572 | ) | | (586 | ) | | (541 | ) | | (657 | ) | | (2,356 | ) | | 2 |
| | 5 |
| | 4 |
| | 5 |
| | 16 |
|
| Total HPE consolidated net revenue | $ | 12,724 |
| | $ | 12,711 |
| | $ | 12,210 |
| | $ | 12,478 |
| | $ | 50,123 |
| | $ | 12,724 |
| | $ | 12,711 |
| | $ | 12,210 |
| | $ | 12,478 |
| | $ | 50,123 |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
|
Earnings before taxes: (a) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Enterprise Group | $ | 964 |
| | $ | 847 |
| | $ | 849 |
| | $ | 909 |
| | $ | 3,569 |
| | $ | 944 |
| | $ | 817 |
| | $ | 815 |
| | $ | 883 |
| | $ | 3,459 |
| | $ | 20 |
| | $ | 30 |
| | $ | 34 |
| | $ | 26 |
| | $ | 110 |
|
| Enterprise Services | 218 |
| | 287 |
| | 359 |
| | 483 |
| | 1,347 |
| | 238 |
| | 317 |
| | 393 |
| | 509 |
| | 1,457 |
| | (20 | ) | | (30 | ) | | (34 | ) | | (26 | ) | | (110 | ) |
| Software | 136 |
| | 192 |
| | 131 |
| | 290 |
| | 749 |
| | 136 |
| | 192 |
| | 131 |
| | 290 |
| | 749 |
| | — |
| | — |
| | — |
| | — |
| | — |
|
| Financial Services | 100 |
| | 73 |
| | 80 |
| | 83 |
| | 336 |
| | 100 |
| | 73 |
| | 80 |
| | 83 |
| | 336 |
| | — |
| | — |
| | — |
| | — |
| | — |
|
| Corporate Investments | (99 | ) | | (87 | ) | | (83 | ) | | (79 | ) | | (348 | ) | | (99 | ) | | (87 | ) | | (83 | ) | | (79 | ) | | (348 | ) | | — |
| | — |
| | — |
| | — |
| | — |
|
| Total segment earnings from operations | 1,319 |
| | 1,312 |
| | 1,336 |
| | 1,686 |
| | 5,653 |
| | 1,319 |
| | 1,312 |
| | 1,336 |
| | 1,686 |
| | 5,653 |
| | — |
| | — |
| | — |
| | — |
| | — |
|
| Corporate and unallocated costs and eliminations | (125 | ) | | (176 | ) | | (128 | ) | | (169 | ) | | (598 | ) | | (125 | ) | | (176 | ) | | (128 | ) | | (169 | ) | | (598 | ) | | — |
| | — |
| | — |
| | — |
| | — |
|
| Stock-based compensation expense | (165 | ) | | (138 | ) | | (129 | ) | | (126 | ) | | (558 | ) | | (165 | ) | | (138 | ) | | (129 | ) | | (126 | ) | | (558 | ) | | — |
| | — |
| | — |
| | — |
| | — |
|
| Amortization of intangible assets | (218 | ) | | (201 | ) | | (210 | ) | | (126 | ) | | (755 | ) | | (218 | ) | | (201 | ) | | (210 | ) | | (126 | ) | | (755 | ) | | — |
| | — |
| | — |
| | — |
| | — |
|
| Restructuring charges | (311 | ) | | (161 | ) | | (369 | ) | | (395 | ) | | (1,236 | ) | | (311 | ) | | (161 | ) | | (369 | ) | | (395 | ) | | (1,236 | ) | | — |
| | — |
| | — |
| | — |
| | — |
|
| Acquisition and other related charges | (37 | ) | | (53 | ) | | (37 | ) | | (51 | ) | | (178 | ) | | (37 | ) | | (53 | ) | | (37 | ) | | (51 | ) | | (178 | ) | | — |
| | — |
| | — |
| | — |
| | — |
|
| Separation costs | (79 | ) | | (91 | ) | | (135 | ) | | (293 | ) | | (598 | ) | | (79 | ) | | (91 | ) | | (135 | ) | | (293 | ) | | (598 | ) | | — |
| | — |
| | — |
| | — |
| | — |
|
| Gain on H3C and MphasiS divestitures | — |
| | — |
| | 2,169 |
| | 251 |
| | 2,420 |
| | — |
| | — |
| | 2,169 |
| | 251 |
| | 2,420 |
| | — |
| | — |
| | — |
| | — |
| | — |
|
| Interest and other, net | (80 | ) | | (60 | ) | | (78 | ) | | (94 | ) | | (312 | ) | | (80 | ) | | (60 | ) | | (78 | ) | | (94 | ) | | (312 | ) | | — |
| | — |
| | — |
| | — |
| | — |
|
| Tax indemnification adjustments | 15 |
| | (69 | ) | | 60 |
| | 311 |
| | 317 |
| | 15 |
| | (69 | ) | | 60 |
| | 311 |
| | 317 |
| | — |
| | — |
| | — |
| | — |
| | — |
|
| Loss from equity interests | — |
| | — |
| | (72 | ) | | (4 | ) | | (76 | ) | | — |
| | — |
| | (72 | ) | | (4 | ) | | (76 | ) | | — |
| | — |
| | — |
| | — |
| | — |
|
| Total HPE consolidated earnings before taxes | $ | 319 |
| | $ | 363 |
| | $ | 2,407 |
| | $ | 990 |
| | $ | 4,079 |
| | $ | 319 |
| | $ | 363 |
| | $ | 2,407 |
| | $ | 990 |
| | $ | 4,079 |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
|
(a) Effective at the beginning of the first quarter of fiscal 2017, the Company implemented organizational changes to align its segment financial reporting more closely with its current business structure. These organizational changes primarily resulted in the transfer of the Communications and Media Solutions product group previously reported within the Enterprise Services segment to the Technology Services business unit within the Enterprise Group segment.
The Company reflected these changes to its segment information retrospectively to the earliest period presented, which primarily resulted in the transfer of net revenue, related eliminations of interesegment revenues and operating profit related to the Communications and Media Solutions product group previously reported within the Enterprise Services segment to the Technology Services business unit within the Enterprise Group segment.
The change between the Enterprise Services and Enterprise Group segments had no impact on Hewlett Packard Enterprise's previously reported consolidated net revenue, earnings from operations, net earnings or net earnings per share.
HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES
FISCAL 2016 SEGMENT INFORMATION (Revised)
(Unaudited)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | REVISED AMOUNTS | | AMOUNTS AS PREVIOUSLY REPORTED | | VARIANCE |
| | Three months ended | | Twelve months ended | | Three months ended | | Twelve months ended | | Three months ended | | Twelve months ended |
| | Jan. 31, 2016 | | Apr. 30, 2016 | | Jul. 31, 2016 | | Oct. 31, 2016 | | Oct. 31, 2016 | | Jan. 31, 2016 | | Apr. 30, 2016 | | Jul. 31, 2016 | | Oct. 31, 2016 | | Oct. 31, 2016 | | Jan. 31, 2016 | | Apr. 30, 2016 | | Jul. 31, 2016 | | Oct. 31, 2016 | | Oct. 31, 2016 |
Segment operating margin: (a) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Enterprise Group | 13.4 | % | | 11.8 | % | | 12.8 | % | | 13.3 | % | | 12.8 | % | | 13.4 | % | | 11.7 | % | | 12.6 | % | | 13.2 | % | | 12.7 | % | | — |
| | 0.1 | pts | | 0.2 | pts | | 0.1 | pts | | 0.1 | pts |
| Enterprise Services | 4.8 | % | | 6.3 | % | | 7.8 | % | | 10.5 | % | | 7.4 | % | | 5.1 | % | | 6.7 | % | | 8.3 | % | | 10.7 | % | | 7.7 | % | | (0.3 | pts) | | (0.4 | pts) | | (0.5 | pts) | | (0.2 | pts) | | (0.3 | pts) |
| Software | 17.4 | % | | 24.8 | % | | 17.8 | % | | 32.1 | % | | 23.4 | % | | 17.4 | % | | 24.8 | % | | 17.8 | % | | 32.1 | % | | 23.4 | % | | — |
| | — |
| | — |
| | — |
| | — |
|
| Financial Services | 12.9 | % | | 9.3 | % | | 9.9 | % | | 10.2 | % | | 10.5 | % | | 12.9 | % | | 9.3 | % | | 9.9 | % | | 10.2 | % | | 10.5 | % | | — |
| | — |
| | — |
| | — |
| | — |
|
Corporate Investments (b) | NM |
| | NM |
| | NM |
| | NM |
| | NM |
| | NM |
| | NM |
| | NM |
| | NM |
| | NM |
| | NM |
| | NM |
| | NM |
| | NM |
| | NM |
|
| Total segment earnings from operations | 9.9 | % | | 9.9 | % | | 10.5 | % | | 12.8 | % | | 10.8 | % | | 9.9 | % | | 9.9 | % | | 10.5 | % | | 12.8 | % | | 10.8 | % | | — |
| | — |
| | — |
| | — |
| | — |
|
(a) Effective at the beginning of the first quarter of fiscal 2017, the Company 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, primarily, the transfer of the big data storage product group previously reported within the Servers business unit to the Storage business unit; the transfer of the Aruba services capabilities previously reported within the Networking business unit into the Technology Services business unit; and (ii) the transfer of the Communications and Media Solutions product group previously reported within the Enterprise Services segment to the Technology Services business unit within the Enterprise Group segment.
The Company reflected these changes to its segment information retrospectively to the earliest period presented, which resulted in: (i) within the Enterprise Group segment, primarily, the transfer of net revenue of the big data storage product group previously reported within the Servers business unit to the Storage business unit; the transfer of net revenue of the Aruba services capabilities previously reported within the Networking business unit into the Technology Services business unit; and (ii) the transfer of net revenue, related eliminations of intersegment revenues and operating profit related to the Communications and Media Solutions product group previously reported within the Enterprise Services segment to the Technology Services business unit within the Enterprise Group segment.
The changes within the Enterprise Group segment had no impact on Hewlett Packard Enterprise’s previously reported Enterprise Group segment net revenue and earnings from operations. The change between the Enterprise Services and Enterprise Group segments had no impact on Hewlett Packard Enterprise's previously reported consolidated net revenue, earnings from operations, net earnings or net earnings per share.
(b) “NM” represents not meaningful.
HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES
FISCAL 2016 SEGMENT / BUSINESS UNIT INFORMATION (Revised)
(Unaudited)
(In millions)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | REVISED AMOUNTS | | AMOUNTS AS PREVIOUSLY REPORTED | | VARIANCE |
| | Three months ended | | Twelve months ended | | Three months ended | | Twelve months ended | | Three months ended | | Twelve months ended |
| | Jan. 31, 2016 | | Apr. 30, 2016 | | Jul. 31, 2016 | | Oct. 31, 2016 | | Oct. 31, 2016 | | Jan. 31, 2016 | | Apr. 30, 2016 | | Jul. 31, 2016 | | Oct. 31, 2016 | | Oct. 31, 2016 | | Jan. 31, 2016 | | Apr. 30, 2016 | | Jul. 31, 2016 | | Oct. 31, 2016 | | Oct. 31, 2016 |
Net revenue: (a) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Enterprise Group | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Servers | $ | 3,536 |
| | $ | 3,498 |
| | $ | 3,316 |
| | $ | 3,463 |
| | $ | 13,813 |
| | $ | 3,568 |
| | $ | 3,561 |
| | $ | 3,368 |
| | $ | 3,522 |
| | $ | 14,019 |
| | $ | (32 | ) | | $ | (63 | ) | | $ | (52 | ) | | $ | (59 | ) | �� | $ | (206 | ) |
| Technology Services | 1,985 |
| | 2,019 |
| | 1,933 |
| | 1,974 |
| | 7,911 |
| | 1,810 |
| | 1,823 |
| | 1,745 |
| | 1,782 |
| | 7,160 |
| | 175 |
| | 196 |
| | 188 |
| | 192 |
| | 751 |
|
| Storage | 837 |
| | 808 |
| | 763 |
| | 827 |
| | 3,235 |
| | 810 |
| | 752 |
| | 724 |
| | 779 |
| | 3,065 |
| | 27 |
| | 56 |
| | 39 |
| | 48 |
| | 170 |
|
| Networking | 824 |
| | 834 |
| | 603 |
| | 559 |
| | 2,820 |
| | 863 |
| | 874 |
| | 639 |
| | 599 |
| | 2,975 |
| | (39 | ) | | (40 | ) | | (36 | ) | | (40 | ) | | (155 | ) |
| Total Enterprise Group | 7,182 |
| | 7,159 |
| | 6,615 |
| | 6,823 |
| | 27,779 |
| | 7,051 |
| | 7,010 |
| | 6,476 |
| | 6,682 |
| | 27,219 |
| | 131 |
| | 149 |
| | 139 |
| | 141 |
| | 560 |
|
| Enterprise Services | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Infrastructure Technology Outsourcing | 2,874 |
| | 2,839 |
| | 2,866 |
| | 2,846 |
| | 11,425 |
| | 2,874 |
| | 2,839 |
| | 2,866 |
| | 2,846 |
| | 11,425 |
| | — |
| | — |
| | — |
| | — |
| | — |
|
| Application and Business Services | 1,681 |
| | 1,730 |
| | 1,716 |
| | 1,744 |
| | 6,871 |
| | 1,814 |
| | 1,884 |
| | 1,859 |
| | 1,890 |
| | 7,447 |
| | (133 | ) | | (154 | ) | | (143 | ) | | (146 | ) | | (576 | ) |
| Total Enterprise Services | 4,555 |
| | 4,569 |
| | 4,582 |
| | 4,590 |
| | 18,296 |
| | 4,688 |
| | 4,723 |
| | 4,725 |
| | 4,736 |
| | 18,872 |
| | (133 | ) | | (154 | ) | | (143 | ) | | (146 | ) | | (576 | ) |
| Software | 780 |
| | 774 |
| | 738 |
| | 903 |
| | 3,195 |
| | 780 |
| | 774 |
| | 738 |
| | 903 |
| | 3,195 |
| | — |
| | — |
| | — |
| | — |
| | — |
|
| Financial Services | 776 |
| | 788 |
| | 812 |
| | 814 |
| | 3,190 |
| | 776 |
| | 788 |
| | 812 |
| | 814 |
| | 3,190 |
| | — |
| | — |
| | — |
| | — |
| | — |
|
| Corporate Investments | 1 |
| | 2 |
| | — |
| | — |
| | 3 |
| | 1 |
| | 2 |
| | — |
| | — |
| | 3 |
| | — |
| | — |
| | — |
| | — |
| | — |
|
| Total segments | 13,294 |
| | 13,292 |
| | 12,747 |
| | 13,130 |
| | 52,463 |
| | 13,296 |
| | 13,297 |
| | 12,751 |
| | 13,135 |
| | 52,479 |
| | (2 | ) | | (5 | ) | | (4 | ) | | (5 | ) | | (16 | ) |
| Elimination of intersegment net revenue and other | (570 | ) | | (581 | ) | | (537 | ) | | (652 | ) | | (2,340 | ) | | (572 | ) | | (586 | ) | | (541 | ) | | (657 | ) | | (2,356 | ) | | 2 |
| | 5 |
| | 4 |
| | 5 |
| | 16 |
|
| Total HPE consolidated net revenue | $ | 12,724 |
| | $ | 12,711 |
| | $ | 12,210 |
| | $ | 12,478 |
| | $ | 50,123 |
| | $ | 12,724 |
| | $ | 12,711 |
| | $ | 12,210 |
| | $ | 12,478 |
| | $ | 50,123 |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
|
(a) Effective at the beginning of the first quarter of fiscal 2017, the Company 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, primarily, the transfer of the big data storage product group previously reported within the Servers business unit to the Storage business unit; the transfer of the Aruba services capabilities previously reported within the Networking business unit into the Technology Services business unit; and (ii) the transfer of the Communications and Media Solutions product group previously reported within the Enterprise Services segment to the Technology Services business unit within the Enterprise Group segment.
The Company reflected these changes to its segment information retrospectively to the earliest period presented, which resulted in: (i) within the Enterprise Group segment, primarily, the transfer of net revenue of the big data storage product group previously reported within the Servers business unit to the Storage business unit; the transfer of net revenue of the Aruba services capabilities previously reported within the Networking business unit into the Technology Services business unit; and (ii) the transfer of net revenue, related eliminations of intersegment revenues and operating profit related to the Communications and Media Solutions product group previously reported within the Enterprise Services segment to the Technology Services business unit within the Enterprise Group segment.
The changes within the Enterprise Group segment had no impact on Hewlett Packard Enterprise’s previously reported Enterprise Group segment net revenue and earnings from operations. The change between the Enterprise Services and Enterprise Group segments had no impact on Hewlett Packard Enterprise's previously reported consolidated net revenue, earnings from operations, net earnings or net earnings per share.
