Discontinued Operations

12 Months Ended

Oct. 31, 2019

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 Consolidated Statements of Earnings for fiscal 2017 and 2018. All activities related to discontinued operations were completed in fiscal 2018.

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

	Fiscal years ended October 31,
	2018			2017
	In millions
Net revenue	$	—		$	8,511
Cost of revenue(1)	—			5,890
Expenses(2)	51			3,063
Interest and other, net	58			39
Loss from discontinued operations before taxes	(109		)	(481		)
Benefit for taxes	5			389
Net loss from discontinued operations	$	(104	)	$	(92	)

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

(2) For the periods following the Everett and Seattle Transactions in fiscal 2017, expenses primarily consist of separation costs, which relate to third-party consulting, contractor fees and other incremental costs arising from the transactions. Prior to the Everett and Seattle Transactions, expenses in fiscal 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 remeasurement benefit.

For the fiscal year ended October 31, 2017, significant non-cash items of discontinued operations consisted of depreciation and amortization of $526 million. For the fiscal year ended October 31, 2017, purchases of property, plant and equipment of discontinued operations consisted of $158 million.