Hewlett Packard Enterprise (HPE) 8-K Results of Operations and Financial Condition

Exhibit 99.1

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

FISCAL 2022 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, 2022		Apr. 30, 2022		July 31, 2022		Oct. 31, 2022		Oct. 31, 2022		Jan. 31, 2022		Apr. 30, 2022		July 31, 2023		Oct. 31, 2022		Oct. 31, 2022		Jan. 31, 2022		Apr. 30, 2022		July 31, 2023		Oct. 31, 2022		Oct. 31, 2022
Net revenue: (a)
Compute	$	3,044	$	3,011	$	3,027	$	3,768	$	12,850	$	3,016	$	2,985	$	3,004	$	3,737	$	12,742	$	28	$	26	$	23	$	31	$	108
HPC & MCS	790		710		830		862		3,192		790		710		830		862		3,192		—		—		—		—		—
Storage	1,128		1,072		1,129		1,274		4,603		1,156		1,098		1,152		1,305		4,711		(28)		(26)		(23)		(31)		(108)
Intelligent Edge	901		867		941		965		3,674		901		867		941		965		3,674		—		—		—		—		—
Financial Services	842		823		817		857		3,339		842		823		817		857		3,339		—		—		—		—		—
Corporate Investments and Other	325		327		300		303		1,255		325		327		300		303		1,255		—		—		—		—		—
Total segments	7,030		6,810		7,044		8,029		28,913		7,030		6,810		7,044		8,029		28,913		—		—		—		—		—
Elimination of intersegment net revenue	(69)		(97)		(93)		(158)		(417)		(69)		(97)		(93)		(158)		(417)		—		—		—		—		—
Total HPE consolidated net revenue	$	6,961	$	6,713	$	6,951	$	7,871	$	28,496	$	6,961	$	6,713	$	6,951	$	7,871	$	28,496	$	—	$	—	$	—	$	—	$	—
Earnings before taxes: (a)
Compute	$	427	$	426	$	408	$	560	$	1,821	$	416	$	415	$	400	$	549	$	1,780	$	11	$	11	$	8	$	11	$	41
HPC & MCS	(7)		(40)		28		30		11		(7)		(40)		28		30		11		—		—		—		—		—
Storage	157		127		161		196		641		168		138		169		207		682		(11)		(11)		(8)		(11)		(41)
Intelligent Edge	157		109		155		128		549		157		109		155		128		549		—		—		—		—		—
Financial Services	104		104		96		95		399		104		104		96		95		399		—		—		—		—		—
Corporate Investments and Other	(11)		(24)		(31)		(26)		(92)		(11)		(24)		(31)		(26)		(92)		—		—		—		—		—
Total segment earnings from operations	827		702		817		983		3,329		827		702		817		983		3,329		—		—		—		—		—
Unallocated corporate costs and eliminations	(59)		(75)		(88)		(81)		(303)		(59)		(75)		(88)		(81)		(303)		—		—		—		—		—
Stock-based compensation expense	(128)		(114)		(64)		(85)		(391)		(128)		(114)		(64)		(85)		(391)		—		—		—		—		—
Amortization of initial direct cost	(1)		(1)		(1)		(1)		(4)		(1)		(1)		(1)		(1)		(4)		—		—		—		—		—
Amortization of intangible assets	(73)		(74)		(73)		(73)		(293)		(73)		(74)		(73)		(73)		(293)		—		—		—		—		—
Impairment of goodwill	—		—		—		(905)		(905)		—		—		—		(905)		(905)		—		—		—		—		—
Transformation costs	(111)		(98)		(80)		(184)		(473)		(111)		(98)		(80)		(184)		(473)		—		—		—		—		—
Disaster recoveries (charges)	1		(125)		(36)		1		(159)		1		(125)		(36)		1		(159)		—		—		—		—		—
Acquisition, disposition and other related charges	(8)		(8)		(9)		6		(19)		(8)		(8)		(9)		6		(19)		—		—		—		—		—
Interest and other, net	(5)		—		(74)		(109)		(188)		(5)		—		(74)		(109)		(188)		—		—		—		—		—
Tax indemnification adjustments	(17)		—		(30)		(20)		(67)		(17)		—		(30)		(20)		(67)		—		—		—		—		—
Non-service net periodic benefit credit	36		36		34		28		134		36		36		34		28		134		—		—		—		—		—
Earnings from equity interests	31		33		68		83		215		31		33		68		83		215		—		—		—		—		—
Total HPE consolidated earnings (loss) before taxes	$	493	$	276	$	464	$	(357)	$	876	$	493	$	276	$	464	$	(357)	$	876	$	—	$	—	$	—	$	—	$	—

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

FISCAL 2022 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, 2022		Apr. 30, 2022		July 31, 2022		Oct. 31, 2022		Oct. 31, 2022		Jan. 31, 2022		Apr. 30, 2022		July 31, 2023		Oct. 31, 2022		Oct. 31, 2022		Jan. 31, 2022		Apr. 30, 2022		July 31, 2023		Oct. 31, 2022		Oct. 31, 2022
Segment operating margin:(a)
Compute	14.0	%	14.1	%	13.5	%	14.9	%	14.2	%	13.8	%	13.9	%	13.3	%	14.7	%	14.0	%	0.2	pts	0.2	pts	0.2	pts	0.2	pts	0.2	pts
HPC & MCS	(0.9)	%	(5.6)	%	3.4	%	3.5	%	0.3	%	(0.9)	%	(5.6)	%	3.4	%	3.5	%	0.3	%	—	pts	—	pts	—	pts	—	pts	—	pts
Storage	13.9	%	11.8	%	14.3	%	15.4	%	13.9	%	14.5	%	12.6	%	14.7	%	15.9	%	14.5	%	(0.6	pts)	(0.8	pts)	(0.4	pts)	(0.5	pts)	(0.6	pts)
Intelligent Edge	17.4	%	12.6	%	16.5	%	13.3	%	14.9	%	17.4	%	12.6	%	16.5	%	13.3	%	14.9	%	—	pts	—	pts	—	pts	—	pts	—	pts
Financial Services	12.4	%	12.6	%	11.8	%	11.1	%	11.9	%	12.4	%	12.6	%	11.8	%	11.1	%	11.9	%	—	pts	—	pts	—	pts	—	pts	—	pts
Corporate Investments and Other	(3.4)	%	(7.3)	%	(10.3)	%	(8.6)	%	(7.3)	%	(3.4)	%	(7.3)	%	(10.3)	%	(8.6)	%	(7.3)	%	—	pts	—	pts	—	pts	—	pts	—	pts
Total segment operating margin	11.8	%	10.3	%	11.6	%	12.2	%	11.5	%	11.8	%	10.3	%	11.6	%	12.2	%	11.5	%	—	pts	—	pts	—	pts	—	pts	—	pts

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

FISCAL 2021 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, 2021		Apr. 30, 2021		July 31, 2021		Oct. 31, 2021		Oct. 31, 2021		Jan. 31, 2021		Apr. 30, 2021		July 31, 2021		Oct. 31, 2021		Oct. 31, 2021		Jan. 31, 2021		Apr. 30, 2021		July 31, 2021		Oct. 31, 2021		Oct. 31, 2021
Net revenue: (a)
Compute	$	3,018	$	3,004	$	3,133	$	3,254	$	12,409	$	2,984	$	2,974	$	3,102	$	3,224	$	12,284	$	34	$	30	$	31	$	30	$	125
HPC & MCS	761		684		740		999		3,184		761		684		740		999		3,184		—		—		—		—		—
Storage	1,158		1,106		1,144		1,227		4,635		1,192		1,136		1,175		1,257		4,760		(34)		(30)		(31)		(30)		(125)
Intelligent Edge	810		803		871		818		3,302		810		803		871		818		3,302		—		—		—		—		—
Financial Services	860		839		844		858		3,401		860		839		844		858		3,401		—		—		—		—		—
Corporate Investments and Other	321		350		332		353		1,356		321		350		332		353		1,356		—		—		—		—		—
Total Segments	6,928		6,786		7,064		7,509		28,287		6,928		6,786		7,064		7,509		28,287		—		—		—		—		—
Elimination of intersegment net revenue	(95)		(86)		(167)		(155)		(503)		(95)		(86)		(167)		(155)		(503)		—		—		—		—		—
Total HPE consolidated net revenue	$	6,833	$	6,700	$	6,897	$	7,354	$	27,784	$	6,833	$	6,700	$	6,897	$	7,354	$	27,784	$	—	$	—	$	—	$	—	$	—
Earnings before taxes: (a)
Compute	$	358	$	348	$	361	$	315	$	1,382	$	341	$	334	$	346	$	302	$	1,323	$	17	$	14	$	15	$	13	$	59
HPC & MCS	43		18		28		142		231		43		18		28		142		231		—		—		—		—		—
Storage	217		177		162		160		716		234		191		177		173		775		(17)		(14)		(15)		(13)		(59)
Intelligent Edge	154		126		140		89		509		154		126		140		89		509		—		—		—		—		—
Financial Services	84		91		94		121		390		84		91		94		121		390		—		—		—		—		—
Corporate Investments and Other	(31)		(25)		(28)		(11)		(95)		(31)		(25)		(28)		(11)		(95)		—		—		—		—		—
Total segment earnings from operations	825		735		757		816		3,133		825		735		757		816		3,133		—		—		—		—		—
Unallocated corporate costs and eliminations	(52)		(50)		(84)		(99)		(285)		(52)		(50)		(84)		(99)		(285)		—		—		—		—		—
Stock-based compensation expense	(110)		(98)		(86)		(78)		(372)		(110)		(98)		(86)		(78)		(372)		—		—		—		—		—
Amortization of initial direct costs	(2)		(2)		(2)		(2)		(8)		(2)		(2)		(2)		(2)		(8)		—		—		—		—		—
Amortization of intangible assets	(110)		(84)		(82)		(78)		(354)		(110)		(84)		(82)		(78)		(354)		—		—		—		—		—
Transformation costs	(311)		(209)		(213)		(197)		(930)		(311)		(209)		(213)		(197)		(930)		—		—		—		—		—
Disaster charges	—		(1)		(5)		(10)		(16)		—		(1)		(5)		(10)		(16)		—		—		—		—		—
Acquisition, disposition and other related charges	(18)		(13)		(3)		(2)		(36)		(18)		(13)		(3)		(2)		(36)		—		—		—		—		—
Interest and other, net	(44)		(11)		(50)		(6)		(111)		(44)		(11)		(50)		(6)		(111)		—		—		—		—		—
Tax indemnification adjustments	(16)		—		76		5		65		(16)		—		76		5		65		—		—		—		—		—
Non-service net periodic benefit credit	17		17		19		17		70		17		17		19		17		70		—		—		—		—		—
Litigation judgment	—		—		—		2,351		2,351		—		—		—		2,351		2,351		—		—		—		—		—
Early debt redemption costs	—		—		—		(100)		(100)		—		—		—		(100)		(100)		—		—		—		—		—
Earnings from equity interests	26		4		79		71		180		26		4		79		71		180		—		—		—		—		—
Total HPE consolidated earnings before taxes	$	205	$	288	$	406	$	2,688	$	3,587	$	205	$	288	$	406	$	2,688	$	3,587	$	—	$	—	$	—	$	—	$	—

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

FISCAL 2021 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, 2021		Apr. 30, 2021		July 31, 2021		Oct. 31, 2021		Oct. 31, 2021		Jan. 31, 2021		Apr. 30, 2021		July 31, 2021		Oct. 31, 2021		Oct. 31, 2021		Jan. 31, 2021		Apr. 30, 2021		July 31, 2021		Oct. 31, 2021		Oct. 31, 2021
Segment operating margin:(a)
Compute	11.9	%	11.6	%	11.5	%	9.7	%	11.1	%	11.4	%	11.2	%	11.2	%	9.4	%	10.8	%	0.5	pts	0.4	pts	0.3	pts	0.3	pts	0.3	pts
HPC & MCS	5.7	%	2.6	%	3.8	%	14.2	%	7.3	%	5.7	%	2.6	%	3.8	%	14.2	%	7.3	%	—	pts	—	pts	—	pts	—	pts	—	pts
Storage	18.7	%	16.0	%	14.2	%	13.0	%	15.4	%	19.6	%	16.8	%	15.1	%	13.8	%	16.3	%	(0.9	pts)	(0.8	pts)	(0.9	pts)	(0.8	pts)	(0.9	pts)
Intelligent Edge	19.0	%	15.7	%	16.1	%	10.9	%	15.4	%	19.0	%	15.7	%	16.1	%	10.9	%	15.4	%	—	pts	—	pts	—	pts	—	pts	—	pts
Financial Services	9.8	%	10.8	%	11.1	%	14.1	%	11.5	%	9.8	%	10.8	%	11.1	%	14.1	%	11.5	%	—	pts	—	pts	—	pts	—	pts	—	pts
Corporate Investments and Other	(9.7)	%	(7.1)	%	(8.4)	%	(3.1)	%	(7.0)	%	(9.7)	%	(7.1)	%	(8.4)	%	(3.1)	%	(7.0)	%	—	pts	—	pts	—	pts	—	pts	—	pts
Total segment operating margin	11.9	%	10.8	%	10.7	%	10.9	%	11.1	%	11.9	%	10.8	%	10.7	%	10.9	%	11.1	%	—	pts	—	pts	—	pts	—	pts	—	pts

(a) Effective at the beginning of the first quarter of fiscal 2023, in order to align its segment financial reporting more closely with its current business structure, the Company implemented an organizational change with the transfer of certain storage networking products, previously reported within the Storage reportable segment, to the Compute reportable segment.

The Company reflected these changes to its segment information retrospectively to the fiscal 2021 and 2022 financial results, which primarily resulted in the realignment of net revenue and operating profit for each of the segments as described above. These changes had no impact on Hewlett Packard Enterprise’s previously reported consolidated net revenue, net earnings, net earnings per share ("EPS") or total assets.