EX-99.1 2 a16-5570_1ex99d1.htm EX-99.1

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.