Discontinued Operations

6 Months Ended

Apr. 30, 2018

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations

On April 1, 2017 and September 1, 2017, the Company completed the Everett and Seattle Transactions, respectively. As a result, the financial results of Everett and Seattle are presented as Net loss from discontinued operations in the Condensed Consolidated Statements of Earnings.

The following table presents the financial results for HPE's discontinued operations.

	Three Months Ended April 30,						Six Months Ended April 30,
	2018			2017			2018			2017
	In millions
Net revenue	$	—		$	3,124		$	—		$	7,629
Cost of revenue(1)	—			2,201			—			5,620
Expenses(2)	—			1,165			51			2,241
Interest and other, net(3)	72			3			68			3
Loss from discontinued operations before taxes	(72		)	(245		)	(119		)	(235		)
Benefit for taxes	—			111			1			117
Net loss from discontinued operations	$	(72	)	$	(134	)	$	(118	)	$	(118	)

(1) Cost of revenue includes cost of products and services.

(2) Expenses for the six months ended April 30, 2018 primarily consist of separation costs. Expenses for the three and six months ended April 30, 2017 primarily consist of selling, general and administrative (“SG&A”) expenses, research and development (“R&D”) expenses, restructuring charges, separation costs, amortization of intangible assets, acquisition and other related charges, and defined benefit plan settlement charges and remeasurement (benefit).

(3) Interest and other, net for the three and six months ended April 30, 2018 primarily consists of tax indemnification adjustments in connection with the Everett and Seattle Transactions.

For the three and six months ended April 30, 2017, significant non-cash items and capital expenditures of discontinued operations consisted of depreciation and amortization of $171 million and $470 million, respectively, and purchases of property, plant and equipment of $62 million and $147 million, respectively.