0001645590false10/312024Q1nine monthsP2YP5Y00016455902023-11-012024-01-3100016455902024-02-27xbrli:shares0001645590us-gaap:ProductMember2023-11-012024-01-31iso4217:USD0001645590us-gaap:ProductMember2022-11-012023-01-310001645590us-gaap:ServiceMember2023-11-012024-01-310001645590us-gaap:ServiceMember2022-11-012023-01-3100016455902022-11-012023-01-31iso4217:USDxbrli:shares00016455902024-01-3100016455902023-10-3100016455902022-10-3100016455902023-01-310001645590us-gaap:CommonStockMember2023-10-310001645590us-gaap:AdditionalPaidInCapitalMember2023-10-310001645590us-gaap:RetainedEarningsMember2023-10-310001645590us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-10-310001645590us-gaap:ParentMember2023-10-310001645590us-gaap:NoncontrollingInterestMember2023-10-310001645590hpe:TotalEquityMember2023-10-310001645590us-gaap:RetainedEarningsMember2023-11-012024-01-310001645590us-gaap:ParentMember2023-11-012024-01-310001645590us-gaap:NoncontrollingInterestMember2023-11-012024-01-310001645590hpe:TotalEquityMember2023-11-012024-01-310001645590us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-11-012024-01-310001645590us-gaap:AdditionalPaidInCapitalMember2023-11-012024-01-310001645590us-gaap:CommonStockMember2023-11-012024-01-310001645590us-gaap:CommonStockMember2024-01-310001645590us-gaap:AdditionalPaidInCapitalMember2024-01-310001645590us-gaap:RetainedEarningsMember2024-01-310001645590us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-01-310001645590us-gaap:ParentMember2024-01-310001645590us-gaap:NoncontrollingInterestMember2024-01-310001645590hpe:TotalEquityMember2024-01-310001645590us-gaap:CommonStockMember2022-10-310001645590us-gaap:AdditionalPaidInCapitalMember2022-10-310001645590us-gaap:RetainedEarningsMember2022-10-310001645590us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-10-310001645590us-gaap:ParentMember2022-10-310001645590us-gaap:NoncontrollingInterestMember2022-10-310001645590hpe:TotalEquityMember2022-10-310001645590us-gaap:RetainedEarningsMember2022-11-012023-01-310001645590us-gaap:ParentMember2022-11-012023-01-310001645590us-gaap:NoncontrollingInterestMember2022-11-012023-01-310001645590hpe:TotalEquityMember2022-11-012023-01-310001645590us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-11-012023-01-310001645590us-gaap:AdditionalPaidInCapitalMember2022-11-012023-01-310001645590us-gaap:CommonStockMember2022-11-012023-01-310001645590us-gaap:CommonStockMember2023-01-310001645590us-gaap:AdditionalPaidInCapitalMember2023-01-310001645590us-gaap:RetainedEarningsMember2023-01-310001645590us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-01-310001645590us-gaap:ParentMember2023-01-310001645590us-gaap:NoncontrollingInterestMember2023-01-310001645590hpe:TotalEquityMember2023-01-31hpe:segment0001645590hpe:ServerSegmentMember2023-11-012024-01-310001645590hpe:HybridCloudMember2023-11-012024-01-310001645590hpe:IntelligentEdgeMember2023-11-012024-01-310001645590hpe:FinancialServicesMember2023-11-012024-01-310001645590us-gaap:CorporateAndOtherMember2023-11-012024-01-310001645590hpe:ServerSegmentMemberus-gaap:IntersegmentEliminationMember2023-11-012024-01-310001645590hpe:HybridCloudMemberus-gaap:IntersegmentEliminationMember2023-11-012024-01-310001645590hpe:IntelligentEdgeMemberus-gaap:IntersegmentEliminationMember2023-11-012024-01-310001645590hpe:FinancialServicesMemberus-gaap:IntersegmentEliminationMember2023-11-012024-01-310001645590us-gaap:CorporateAndOtherMemberus-gaap:IntersegmentEliminationMember2023-11-012024-01-310001645590us-gaap:IntersegmentEliminationMember2023-11-012024-01-310001645590hpe:ServerSegmentMemberus-gaap:OperatingSegmentsMember2023-11-012024-01-310001645590hpe:HybridCloudMemberus-gaap:OperatingSegmentsMember2023-11-012024-01-310001645590us-gaap:OperatingSegmentsMemberhpe:IntelligentEdgeMember2023-11-012024-01-310001645590us-gaap:OperatingSegmentsMemberhpe:FinancialServicesMember2023-11-012024-01-310001645590us-gaap:OperatingSegmentsMemberus-gaap:CorporateAndOtherMember2023-11-012024-01-310001645590us-gaap:OperatingSegmentsMember2023-11-012024-01-310001645590hpe:ServerSegmentMember2022-11-012023-01-310001645590hpe:HybridCloudMember2022-11-012023-01-310001645590hpe:IntelligentEdgeMember2022-11-012023-01-310001645590hpe:FinancialServicesMember2022-11-012023-01-310001645590us-gaap:CorporateAndOtherMember2022-11-012023-01-310001645590hpe:ServerSegmentMemberus-gaap:IntersegmentEliminationMember2022-11-012023-01-310001645590hpe:HybridCloudMemberus-gaap:IntersegmentEliminationMember2022-11-012023-01-310001645590hpe:IntelligentEdgeMemberus-gaap:IntersegmentEliminationMember2022-11-012023-01-310001645590hpe:FinancialServicesMemberus-gaap:IntersegmentEliminationMember2022-11-012023-01-310001645590us-gaap:CorporateAndOtherMemberus-gaap:IntersegmentEliminationMember2022-11-012023-01-310001645590us-gaap:IntersegmentEliminationMember2022-11-012023-01-310001645590hpe:ServerSegmentMemberus-gaap:OperatingSegmentsMember2022-11-012023-01-310001645590hpe:HybridCloudMemberus-gaap:OperatingSegmentsMember2022-11-012023-01-310001645590us-gaap:OperatingSegmentsMemberhpe:IntelligentEdgeMember2022-11-012023-01-310001645590us-gaap:OperatingSegmentsMemberhpe:FinancialServicesMember2022-11-012023-01-310001645590us-gaap:OperatingSegmentsMemberus-gaap:CorporateAndOtherMember2022-11-012023-01-310001645590us-gaap:OperatingSegmentsMember2022-11-012023-01-310001645590us-gaap:MaterialReconcilingItemsMember2023-11-012024-01-310001645590us-gaap:MaterialReconcilingItemsMember2022-11-012023-01-310001645590country:US2023-11-012024-01-310001645590country:US2022-11-012023-01-310001645590hpe:AmericasExcludingUnitedStatesMember2023-11-012024-01-310001645590hpe:AmericasExcludingUnitedStatesMember2022-11-012023-01-310001645590srt:AmericasMember2023-11-012024-01-310001645590srt:AmericasMember2022-11-012023-01-310001645590us-gaap:EMEAMember2023-11-012024-01-310001645590us-gaap:EMEAMember2022-11-012023-01-310001645590hpe:AsiaPacificandJapanMember2023-11-012024-01-310001645590hpe:AsiaPacificandJapanMember2022-11-012023-01-310001645590hpe:CostOptimizationAndPrioritizationPlanMember2023-11-012024-01-310001645590hpe:CostOptimizationAndPrioritizationPlanMember2022-11-012023-01-310001645590hpe:HPENextMember2023-11-012024-01-310001645590hpe:HPENextMember2022-11-012023-01-310001645590us-gaap:EmployeeSeveranceMemberhpe:CostOptimizationAndPrioritizationPlanMember2023-10-310001645590hpe:InfrastructureAndOtherRestructuringItemsMemberhpe:CostOptimizationAndPrioritizationPlanMember2023-10-310001645590us-gaap:EmployeeSeveranceMemberhpe:HPENextMember2023-10-310001645590hpe:InfrastructureAndOtherRestructuringItemsMemberhpe:HPENextMember2023-10-310001645590us-gaap:EmployeeSeveranceMemberhpe:CostOptimizationAndPrioritizationPlanMember2023-11-012024-01-310001645590hpe:InfrastructureAndOtherRestructuringItemsMemberhpe:CostOptimizationAndPrioritizationPlanMember2023-11-012024-01-310001645590us-gaap:EmployeeSeveranceMemberhpe:HPENextMember2023-11-012024-01-310001645590hpe:InfrastructureAndOtherRestructuringItemsMemberhpe:HPENextMember2023-11-012024-01-310001645590us-gaap:EmployeeSeveranceMemberhpe:CostOptimizationAndPrioritizationPlanMember2024-01-310001645590hpe:InfrastructureAndOtherRestructuringItemsMemberhpe:CostOptimizationAndPrioritizationPlanMember2024-01-310001645590us-gaap:EmployeeSeveranceMemberhpe:HPENextMember2024-01-310001645590hpe:InfrastructureAndOtherRestructuringItemsMemberhpe:HPENextMember2024-01-310001645590hpe:HPENextAndCostOptimizationAndPrioritizationPlanMember2024-01-310001645590hpe:HPENextAndCostOptimizationAndPrioritizationPlanMember2023-10-310001645590hpe:OtherAccruedLiabilitiesMemberhpe:HPENextAndCostOptimizationAndPrioritizationPlanMember2024-01-310001645590hpe:OtherAccruedLiabilitiesMemberhpe:HPENextAndCostOptimizationAndPrioritizationPlanMember2023-10-310001645590hpe:HPENextAndCostOptimizationAndPrioritizationPlanMemberus-gaap:OtherNoncurrentLiabilitiesMember2024-01-310001645590hpe:HPENextAndCostOptimizationAndPrioritizationPlanMemberus-gaap:OtherNoncurrentLiabilitiesMember2023-10-310001645590us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2023-11-012024-01-310001645590us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2022-11-012023-01-31xbrli:pure00016455902016-11-012017-10-3100016455902017-11-012018-10-3100016455902018-11-012019-10-310001645590us-gaap:LandMember2024-01-310001645590us-gaap:LandMember2023-10-310001645590hpe:BuildingsandLeaseholdImprovementsMember2024-01-310001645590hpe:BuildingsandLeaseholdImprovementsMember2023-10-310001645590us-gaap:MachineryAndEquipmentMember2024-01-310001645590us-gaap:MachineryAndEquipmentMember2023-10-3100016455902022-11-012023-10-310001645590hpe:DebtCurrentMember2024-01-310001645590hpe:DebtCurrentMember2023-10-3100016455902024-02-012024-01-310001645590us-gaap:RiskLevelLowMember2024-01-310001645590us-gaap:RiskLevelMediumMember2024-01-310001645590us-gaap:RiskLevelHighMember2024-01-310001645590us-gaap:RiskLevelLowMember2023-10-310001645590us-gaap:RiskLevelMediumMember2023-10-310001645590us-gaap:RiskLevelHighMember2023-10-310001645590us-gaap:BilledRevenuesMemberus-gaap:FinancialAssetNotPastDueMember2024-01-310001645590us-gaap:BilledRevenuesMemberus-gaap:FinancialAssetNotPastDueMember2023-10-310001645590hpe:FinancialAsset31To60DaysPastDueMemberus-gaap:BilledRevenuesMember2024-01-310001645590hpe:FinancialAsset31To60DaysPastDueMemberus-gaap:BilledRevenuesMember2023-10-310001645590us-gaap:BilledRevenuesMemberhpe:FinancialAsset61To90DaysPastDueMember2024-01-310001645590us-gaap:BilledRevenuesMemberhpe:FinancialAsset61To90DaysPastDueMember2023-10-310001645590us-gaap:BilledRevenuesMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2024-01-310001645590us-gaap:BilledRevenuesMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2023-10-310001645590us-gaap:UnbilledRevenuesMember2024-01-310001645590us-gaap:UnbilledRevenuesMember2023-10-310001645590us-gaap:VariableInterestEntityPrimaryBeneficiaryMember2024-01-310001645590us-gaap:VariableInterestEntityPrimaryBeneficiaryMember2023-10-310001645590us-gaap:FinanceReceivablesMember2024-01-310001645590hpe:OperatingLeaseRightOfUseAssetMember2024-01-310001645590us-gaap:FinanceReceivablesMember2023-10-310001645590hpe:OperatingLeaseRightOfUseAssetMember2023-10-310001645590hpe:JuniperNetworksIncMember2024-01-090001645590hpe:JuniperNetworksIncMember2024-01-092024-01-09hpe:reportingUnit0001645590hpe:ServerSegmentMember2024-01-310001645590hpe:ServerSegmentMember2023-10-310001645590hpe:HybridCloudMember2023-10-310001645590hpe:HybridCloudMember2024-01-310001645590hpe:IntelligentEdgeMember2024-01-310001645590hpe:IntelligentEdgeMember2023-10-310001645590hpe:FinancialServicesMember2023-10-310001645590hpe:FinancialServicesMember2024-01-310001645590us-gaap:CorporateAndOtherMember2023-10-310001645590us-gaap:CorporateAndOtherMember2024-01-310001645590srt:MinimumMember2023-10-310001645590srt:MaximumMember2023-10-3100016455902023-11-010001645590hpe:ServerSegmentMemberhpe:ComputeSegmentMember2024-01-310001645590hpe:ServerSegmentMemberhpe:ComputeSegmentMember2023-11-010001645590hpe:ServerSegmentMemberhpe:HighPerformanceComputingAndArtificialIntelligenceMember2024-01-310001645590hpe:ServerSegmentMemberhpe:HighPerformanceComputingAndArtificialIntelligenceMember2023-11-010001645590us-gaap:BankTimeDepositsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2024-01-310001645590us-gaap:BankTimeDepositsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2024-01-310001645590us-gaap:FairValueInputsLevel3Memberus-gaap:BankTimeDepositsMemberus-gaap:FairValueMeasurementsRecurringMember2024-01-310001645590us-gaap:BankTimeDepositsMemberus-gaap:FairValueMeasurementsRecurringMember2024-01-310001645590us-gaap:BankTimeDepositsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2023-10-310001645590us-gaap:BankTimeDepositsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2023-10-310001645590us-gaap:FairValueInputsLevel3Memberus-gaap:BankTimeDepositsMemberus-gaap:FairValueMeasurementsRecurringMember2023-10-310001645590us-gaap:BankTimeDepositsMemberus-gaap:FairValueMeasurementsRecurringMember2023-10-310001645590us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMember2024-01-310001645590us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMember2024-01-310001645590us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMember2024-01-310001645590us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMember2024-01-310001645590us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMember2023-10-310001645590us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMember2023-10-310001645590us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMember2023-10-310001645590us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMember2023-10-310001645590us-gaap:EquitySecuritiesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2024-01-310001645590us-gaap:EquitySecuritiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2024-01-310001645590us-gaap:EquitySecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2024-01-310001645590us-gaap:EquitySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2024-01-310001645590us-gaap:EquitySecuritiesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2023-10-310001645590us-gaap:EquitySecuritiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2023-10-310001645590us-gaap:EquitySecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2023-10-310001645590us-gaap:EquitySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2023-10-310001645590us-gaap:ForeignGovernmentDebtMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2024-01-310001645590us-gaap:ForeignGovernmentDebtMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2024-01-310001645590us-gaap:FairValueInputsLevel3Memberus-gaap:ForeignGovernmentDebtMemberus-gaap:FairValueMeasurementsRecurringMember2024-01-310001645590us-gaap:ForeignGovernmentDebtMemberus-gaap:FairValueMeasurementsRecurringMember2024-01-310001645590us-gaap:ForeignGovernmentDebtMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2023-10-310001645590us-gaap:ForeignGovernmentDebtMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2023-10-310001645590us-gaap:FairValueInputsLevel3Memberus-gaap:ForeignGovernmentDebtMemberus-gaap:FairValueMeasurementsRecurringMember2023-10-310001645590us-gaap:ForeignGovernmentDebtMemberus-gaap:FairValueMeasurementsRecurringMember2023-10-310001645590us-gaap:FairValueInputsLevel1Memberus-gaap:OtherDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2024-01-310001645590us-gaap:FairValueInputsLevel2Memberus-gaap:OtherDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2024-01-310001645590us-gaap:FairValueInputsLevel3Memberus-gaap:OtherDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2024-01-310001645590us-gaap:OtherDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2024-01-310001645590us-gaap:FairValueInputsLevel1Memberus-gaap:OtherDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2023-10-310001645590us-gaap:FairValueInputsLevel2Memberus-gaap:OtherDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2023-10-310001645590us-gaap:FairValueInputsLevel3Memberus-gaap:OtherDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2023-10-310001645590us-gaap:OtherDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2023-10-310001645590us-gaap:ForeignExchangeContractMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2024-01-310001645590us-gaap:ForeignExchangeContractMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2024-01-310001645590us-gaap:FairValueInputsLevel3Memberus-gaap:ForeignExchangeContractMemberus-gaap:FairValueMeasurementsRecurringMember2024-01-310001645590us-gaap:ForeignExchangeContractMemberus-gaap:FairValueMeasurementsRecurringMember2024-01-310001645590us-gaap:ForeignExchangeContractMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2023-10-310001645590us-gaap:ForeignExchangeContractMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2023-10-310001645590us-gaap:FairValueInputsLevel3Memberus-gaap:ForeignExchangeContractMemberus-gaap:FairValueMeasurementsRecurringMember2023-10-310001645590us-gaap:ForeignExchangeContractMemberus-gaap:FairValueMeasurementsRecurringMember2023-10-310001645590us-gaap:OtherContractMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2024-01-310001645590us-gaap:OtherContractMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2024-01-310001645590us-gaap:FairValueInputsLevel3Memberus-gaap:OtherContractMemberus-gaap:FairValueMeasurementsRecurringMember2024-01-310001645590us-gaap:OtherContractMemberus-gaap:FairValueMeasurementsRecurringMember2024-01-310001645590us-gaap:OtherContractMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2023-10-310001645590us-gaap:OtherContractMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2023-10-310001645590us-gaap:FairValueInputsLevel3Memberus-gaap:OtherContractMemberus-gaap:FairValueMeasurementsRecurringMember2023-10-310001645590us-gaap:OtherContractMemberus-gaap:FairValueMeasurementsRecurringMember2023-10-310001645590us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2024-01-310001645590us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2024-01-310001645590us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2024-01-310001645590us-gaap:FairValueMeasurementsRecurringMember2024-01-310001645590us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2023-10-310001645590us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2023-10-310001645590us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2023-10-310001645590us-gaap:FairValueMeasurementsRecurringMember2023-10-310001645590us-gaap:InterestRateContractMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2024-01-310001645590us-gaap:InterestRateContractMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2024-01-310001645590us-gaap:FairValueInputsLevel3Memberus-gaap:InterestRateContractMemberus-gaap:FairValueMeasurementsRecurringMember2024-01-310001645590us-gaap:InterestRateContractMemberus-gaap:FairValueMeasurementsRecurringMember2024-01-310001645590us-gaap:InterestRateContractMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2023-10-310001645590us-gaap:InterestRateContractMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2023-10-310001645590us-gaap:FairValueInputsLevel3Memberus-gaap:InterestRateContractMemberus-gaap:FairValueMeasurementsRecurringMember2023-10-310001645590us-gaap:InterestRateContractMemberus-gaap:FairValueMeasurementsRecurringMember2023-10-310001645590us-gaap:EstimateOfFairValueFairValueDisclosureMember2024-01-310001645590us-gaap:EstimateOfFairValueFairValueDisclosureMember2023-10-310001645590us-gaap:CarryingReportedAmountFairValueDisclosureMember2024-01-310001645590us-gaap:CarryingReportedAmountFairValueDisclosureMember2023-10-310001645590hpe:AlternativeInvestmentMeasurementAlternativeMember2023-11-012024-01-310001645590hpe:AlternativeInvestmentMeasurementAlternativeMember2022-11-012023-01-310001645590us-gaap:FairValueMeasurementsNonrecurringMemberhpe:AlternativeInvestmentMeasurementAlternativeMember2024-01-310001645590us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:BankTimeDepositsMember2024-01-310001645590us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:BankTimeDepositsMember2024-01-310001645590us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:BankTimeDepositsMember2023-10-310001645590us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:BankTimeDepositsMember2023-10-310001645590us-gaap:MoneyMarketFundsMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2024-01-310001645590us-gaap:MoneyMarketFundsMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2024-01-310001645590us-gaap:MoneyMarketFundsMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2023-10-310001645590us-gaap:MoneyMarketFundsMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2023-10-310001645590us-gaap:ForeignGovernmentDebtMember2024-01-310001645590us-gaap:ForeignGovernmentDebtMember2023-10-310001645590us-gaap:OtherDebtSecuritiesMember2024-01-310001645590us-gaap:OtherDebtSecuritiesMember2023-10-310001645590us-gaap:DebtSecuritiesMember2024-01-310001645590us-gaap:DebtSecuritiesMember2023-10-310001645590hpe:AlternativeInvestmentFairValueMeasurementMember2024-01-310001645590hpe:AlternativeInvestmentFairValueMeasurementMember2023-10-310001645590hpe:AlternativeInvestmentFairValueMeasurementMember2023-11-012024-01-310001645590hpe:AlternativeInvestmentFairValueMeasurementMember2022-11-012023-01-310001645590hpe:AlternativeInvestmentMeasurementAlternativeMember2024-01-310001645590hpe:AlternativeInvestmentMeasurementAlternativeMember2023-10-310001645590us-gaap:FairValueHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateContractMember2024-01-310001645590us-gaap:FairValueHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherCurrentAssetsMemberus-gaap:InterestRateContractMember2024-01-310001645590us-gaap:FairValueHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateContractMemberus-gaap:OtherNoncurrentAssetsMember2024-01-310001645590us-gaap:FairValueHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherCurrentLiabilitiesMemberus-gaap:InterestRateContractMember2024-01-310001645590us-gaap:FairValueHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateContractMemberus-gaap:OtherNoncurrentLiabilitiesMember2024-01-310001645590us-gaap:FairValueHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateContractMember2023-10-310001645590us-gaap:FairValueHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherCurrentAssetsMemberus-gaap:InterestRateContractMember2023-10-310001645590us-gaap:FairValueHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateContractMemberus-gaap:OtherNoncurrentAssetsMember2023-10-310001645590us-gaap:FairValueHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherCurrentLiabilitiesMemberus-gaap:InterestRateContractMember2023-10-310001645590us-gaap:FairValueHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateContractMemberus-gaap:OtherNoncurrentLiabilitiesMember2023-10-310001645590us-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMember2024-01-310001645590us-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherCurrentAssetsMemberus-gaap:CashFlowHedgingMember2024-01-310001645590us-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMemberus-gaap:OtherNoncurrentAssetsMember2024-01-310001645590us-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherCurrentLiabilitiesMemberus-gaap:CashFlowHedgingMember2024-01-310001645590us-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMemberus-gaap:OtherNoncurrentLiabilitiesMember2024-01-310001645590us-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMember2023-10-310001645590us-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherCurrentAssetsMemberus-gaap:CashFlowHedgingMember2023-10-310001645590us-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMemberus-gaap:OtherNoncurrentAssetsMember2023-10-310001645590us-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherCurrentLiabilitiesMemberus-gaap:CashFlowHedgingMember2023-10-310001645590us-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMemberus-gaap:OtherNoncurrentLiabilitiesMember2023-10-310001645590us-gaap:NetInvestmentHedgingMemberus-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2024-01-310001645590us-gaap:NetInvestmentHedgingMemberus-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherCurrentAssetsMember2024-01-310001645590us-gaap:NetInvestmentHedgingMemberus-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherNoncurrentAssetsMember2024-01-310001645590us-gaap:NetInvestmentHedgingMemberus-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherCurrentLiabilitiesMember2024-01-310001645590us-gaap:NetInvestmentHedgingMemberus-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherNoncurrentLiabilitiesMember2024-01-310001645590us-gaap:NetInvestmentHedgingMemberus-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-10-310001645590us-gaap:NetInvestmentHedgingMemberus-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherCurrentAssetsMember2023-10-310001645590us-gaap:NetInvestmentHedgingMemberus-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherNoncurrentAssetsMember2023-10-310001645590us-gaap:NetInvestmentHedgingMemberus-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherCurrentLiabilitiesMember2023-10-310001645590us-gaap:NetInvestmentHedgingMemberus-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherNoncurrentLiabilitiesMember2023-10-310001645590us-gaap:DesignatedAsHedgingInstrumentMember2024-01-310001645590us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherCurrentAssetsMember2024-01-310001645590us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherNoncurrentAssetsMember2024-01-310001645590us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherCurrentLiabilitiesMember2024-01-310001645590us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherNoncurrentLiabilitiesMember2024-01-310001645590us-gaap:DesignatedAsHedgingInstrumentMember2023-10-310001645590us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherCurrentAssetsMember2023-10-310001645590us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherNoncurrentAssetsMember2023-10-310001645590us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherCurrentLiabilitiesMember2023-10-310001645590us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherNoncurrentLiabilitiesMember2023-10-310001645590us-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMember2024-01-310001645590us-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMemberus-gaap:OtherCurrentAssetsMember2024-01-310001645590us-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMemberus-gaap:OtherNoncurrentAssetsMember2024-01-310001645590us-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMemberus-gaap:OtherCurrentLiabilitiesMember2024-01-310001645590us-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMemberus-gaap:OtherNoncurrentLiabilitiesMember2024-01-310001645590us-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMember2023-10-310001645590us-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMemberus-gaap:OtherCurrentAssetsMember2023-10-310001645590us-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMemberus-gaap:OtherNoncurrentAssetsMember2023-10-310001645590us-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMemberus-gaap:OtherCurrentLiabilitiesMember2023-10-310001645590us-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMemberus-gaap:OtherNoncurrentLiabilitiesMember2023-10-310001645590us-gaap:OtherContractMemberus-gaap:NondesignatedMember2024-01-310001645590us-gaap:OtherContractMemberus-gaap:NondesignatedMemberus-gaap:OtherCurrentAssetsMember2024-01-310001645590us-gaap:OtherContractMemberus-gaap:NondesignatedMemberus-gaap:OtherNoncurrentAssetsMember2024-01-310001645590us-gaap:OtherContractMemberus-gaap:NondesignatedMemberus-gaap:OtherCurrentLiabilitiesMember2024-01-310001645590us-gaap:OtherContractMemberus-gaap:NondesignatedMemberus-gaap:OtherNoncurrentLiabilitiesMember2024-01-310001645590us-gaap:OtherContractMemberus-gaap:NondesignatedMember2023-10-310001645590us-gaap:OtherContractMemberus-gaap:NondesignatedMemberus-gaap:OtherCurrentAssetsMember2023-10-310001645590us-gaap:OtherContractMemberus-gaap:NondesignatedMemberus-gaap:OtherNoncurrentAssetsMember2023-10-310001645590us-gaap:OtherContractMemberus-gaap:NondesignatedMemberus-gaap:OtherCurrentLiabilitiesMember2023-10-310001645590us-gaap:OtherContractMemberus-gaap:NondesignatedMemberus-gaap:OtherNoncurrentLiabilitiesMember2023-10-310001645590us-gaap:NondesignatedMember2024-01-310001645590us-gaap:NondesignatedMemberus-gaap:OtherCurrentAssetsMember2024-01-310001645590us-gaap:NondesignatedMemberus-gaap:OtherNoncurrentAssetsMember2024-01-310001645590us-gaap:NondesignatedMemberus-gaap:OtherCurrentLiabilitiesMember2024-01-310001645590us-gaap:NondesignatedMemberus-gaap:OtherNoncurrentLiabilitiesMember2024-01-310001645590us-gaap:NondesignatedMember2023-10-310001645590us-gaap:NondesignatedMemberus-gaap:OtherCurrentAssetsMember2023-10-310001645590us-gaap:NondesignatedMemberus-gaap:OtherNoncurrentAssetsMember2023-10-310001645590us-gaap:NondesignatedMemberus-gaap:OtherCurrentLiabilitiesMember2023-10-310001645590us-gaap:NondesignatedMemberus-gaap:OtherNoncurrentLiabilitiesMember2023-10-310001645590us-gaap:OtherCurrentAssetsMember2024-01-310001645590us-gaap:OtherNoncurrentAssetsMember2024-01-310001645590us-gaap:OtherCurrentLiabilitiesMember2024-01-310001645590us-gaap:OtherNoncurrentLiabilitiesMember2024-01-310001645590us-gaap:OtherCurrentAssetsMember2023-10-310001645590us-gaap:OtherNoncurrentAssetsMember2023-10-310001645590us-gaap:OtherCurrentLiabilitiesMember2023-10-310001645590us-gaap:OtherNoncurrentLiabilitiesMember2023-10-31hpe:businessDay0001645590hpe:LongtermDebtandLeaseObligationMember2024-01-310001645590hpe:LongtermDebtandLeaseObligationMember2023-10-310001645590us-gaap:ForeignExchangeContractMember2023-11-012024-01-310001645590us-gaap:ForeignExchangeContractMember2022-11-012023-01-310001645590hpe:RevenuesMemberus-gaap:InterestRateContractMember2023-11-012024-01-310001645590us-gaap:NonoperatingIncomeExpenseMemberus-gaap:InterestRateContractMember2023-11-012024-01-310001645590hpe:RevenuesMemberus-gaap:InterestRateContractMember2022-11-012023-01-310001645590us-gaap:NonoperatingIncomeExpenseMemberus-gaap:InterestRateContractMember2022-11-012023-01-310001645590us-gaap:DesignatedAsHedgingInstrumentMemberhpe:RevenuesMemberus-gaap:InterestRateContractMember2023-11-012024-01-310001645590us-gaap:NonoperatingIncomeExpenseMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateContractMember2023-11-012024-01-310001645590us-gaap:DesignatedAsHedgingInstrumentMemberhpe:RevenuesMemberus-gaap:InterestRateContractMember2022-11-012023-01-310001645590us-gaap:NonoperatingIncomeExpenseMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateContractMember2022-11-012023-01-310001645590us-gaap:ForeignExchangeContractMemberhpe:RevenuesMember2023-11-012024-01-310001645590us-gaap:NonoperatingIncomeExpenseMemberus-gaap:ForeignExchangeContractMember2023-11-012024-01-310001645590us-gaap:ForeignExchangeContractMemberhpe:RevenuesMember2022-11-012023-01-310001645590us-gaap:NonoperatingIncomeExpenseMemberus-gaap:ForeignExchangeContractMember2022-11-012023-01-310001645590us-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMemberhpe:RevenuesMember2023-11-012024-01-310001645590us-gaap:NonoperatingIncomeExpenseMemberus-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMember2023-11-012024-01-310001645590us-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMemberhpe:RevenuesMember2022-11-012023-01-310001645590us-gaap:NonoperatingIncomeExpenseMemberus-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMember2022-11-012023-01-310001645590us-gaap:OtherContractMemberus-gaap:NondesignatedMemberhpe:RevenuesMember2023-11-012024-01-310001645590us-gaap:NonoperatingIncomeExpenseMemberus-gaap:OtherContractMemberus-gaap:NondesignatedMember2023-11-012024-01-310001645590us-gaap:OtherContractMemberus-gaap:NondesignatedMemberhpe:RevenuesMember2022-11-012023-01-310001645590us-gaap:NonoperatingIncomeExpenseMemberus-gaap:OtherContractMemberus-gaap:NondesignatedMember2022-11-012023-01-310001645590hpe:RevenuesMember2023-11-012024-01-310001645590us-gaap:NonoperatingIncomeExpenseMember2023-11-012024-01-310001645590hpe:RevenuesMember2022-11-012023-01-310001645590us-gaap:NonoperatingIncomeExpenseMember2022-11-012023-01-310001645590us-gaap:AssetBackedSecuritiesMember2024-01-310001645590us-gaap:AssetBackedSecuritiesMemberhpe:AssetBackedDebtSecuritiesIssuedJanuary2024Member2024-01-31hpe:tranche0001645590us-gaap:CommercialPaperMember2024-01-31hpe:program0001645590hpe:EuroCommercialPaperProgramMemberus-gaap:CommercialPaperMember2024-01-310001645590hpe:EuroCommercialPaperCertificateofDepositProgrammeMemberus-gaap:CommercialPaperMember2024-01-310001645590us-gaap:CommercialPaperMember2023-10-310001645590hpe:EuroCommercialPaperCertificateofDepositProgrammeMemberhpe:HewlettPackardEnterpriseMemberus-gaap:CommercialPaperMember2024-01-310001645590hpe:EuroCommercialPaperCertificateofDepositProgrammeMemberhpe:HewlettPackardEnterpriseMemberus-gaap:CommercialPaperMember2023-10-310001645590hpe:UnsecuredRevolvingCreditFacilityMember2021-12-310001645590hpe:UnsecuredRevolvingCreditFacilityMember2021-12-012021-12-310001645590hpe:UnsecuredRevolvingCreditFacilityMember2023-10-310001645590hpe:UnsecuredRevolvingCreditFacilityMember2024-01-310001645590us-gaap:RevolvingCreditFacilityMemberhpe:UncommittedCreditFacilityMember2023-09-300001645590us-gaap:RevolvingCreditFacilityMemberhpe:UncommittedCreditFacilityMember2023-09-012023-09-300001645590us-gaap:RevolvingCreditFacilityMemberhpe:UncommittedCreditFacilityMember2023-10-310001645590us-gaap:RevolvingCreditFacilityMemberhpe:UncommittedCreditFacilityMember2024-01-310001645590hpe:SeniorUnsecuredDelayedDrawTermLoanMember2024-01-090001645590us-gaap:LineOfCreditMemberhpe:SeniorUnsecuredDelayedDrawTermLoanMember2024-01-090001645590us-gaap:LineOfCreditMemberhpe:SeniorUnsecuredDelayedDrawTermLoanMember2024-01-092024-01-090001645590us-gaap:LineOfCreditMemberhpe:SeniorUnsecuredDelayedDrawTermLoanMember2024-01-090001645590us-gaap:LineOfCreditMemberhpe:SeniorUnsecuredDelayedDrawTermLoanMember2024-01-092024-01-090001645590hpe:SeniorUnsecuredDelayedDrawTermLoanMember2024-01-310001645590hpe:SeniorUnsecuredDelayedDrawTermLoanMember2023-11-012024-01-310001645590us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2023-10-310001645590us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-10-310001645590us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2023-10-310001645590us-gaap:AccumulatedTranslationAdjustmentMember2023-10-310001645590us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2023-11-012024-01-310001645590us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-11-012024-01-310001645590us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2023-11-012024-01-310001645590us-gaap:AccumulatedTranslationAdjustmentMember2023-11-012024-01-310001645590us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2024-01-310001645590us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2024-01-310001645590us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2024-01-310001645590us-gaap:AccumulatedTranslationAdjustmentMember2024-01-310001645590us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-10-310001645590us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-10-310001645590us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-10-310001645590us-gaap:AccumulatedTranslationAdjustmentMember2022-10-310001645590us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-11-012023-01-310001645590us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-11-012023-01-310001645590us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-11-012023-01-310001645590us-gaap:AccumulatedTranslationAdjustmentMember2022-11-012023-01-310001645590us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2023-01-310001645590us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-01-310001645590us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2023-01-310001645590us-gaap:AccumulatedTranslationAdjustmentMember2023-01-310001645590hpe:ShareRepurchaseProgramMember2023-11-012024-01-310001645590hpe:ShareRepurchaseProgramMember2024-01-310001645590hpe:IndiaDirectorateOfRevenueIntelligenceProceedingsMember2010-04-302010-05-10hpe:employee0001645590hpe:BangaloreCommissionerOfCustomsMember2012-04-110001645590hpe:BangaloreCommissionerOfCustomsMember2012-04-200001645590hpe:ECTMember2006-11-012008-10-31hpe:contract0001645590hpe:ECTMember2011-07-012011-07-310001645590hpe:ECTMembersrt:MaximumMember2011-09-012011-09-300001645590hpe:ECTMembersrt:MinimumMember2011-09-012011-09-300001645590hpe:Forsythetal.vsHPInc.andHewlettPackardEnterpriseMembersrt:MinimumMember2016-08-182016-08-180001645590hpe:Q3NetworkingLitigationMember2020-09-212020-09-22hpe:patent0001645590hpe:H3CMember2022-12-300001645590hpe:H3CMember2023-05-26
Table of Content

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)  
 QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended:January 31, 2024
Or
 TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from            to            
Commission file number001-37483
HEWLETT PACKARD ENTERPRISE COMPANY
(Exact name of registrant as specified in its charter)
Delaware 47-3298624
(State or other jurisdiction of
incorporation or organization)
 (I.R.S. employer
identification no.)
1701 East Mossy Oaks Road,Spring,Texas77389
(Address of principal executive offices)(Zip code)
(678)259-9860
(Registrant's telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Exchange Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common stock, par value $0.01 per shareHPENew York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 (the "Exchange Act") during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes  No 
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes  No 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer", "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filerAccelerated filer
Non-accelerated filerSmaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes  No 
The number of shares of Hewlett Packard Enterprise Company common stock outstanding as of February 27, 2024 was 1,300 million shares, par value $0.01.


Table of Content

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES
Form 10-Q
For the Quarterly Period Ended January 31, 2024

Table of Contents
   Page
 
 



2

Table of Content

Forward-Looking Statements
This Quarterly Report on Form 10-Q, including "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Item 2 of Part I, contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks, uncertainties, and assumptions. If the risks or uncertainties ever materialize or the assumptions prove incorrect, the results of Hewlett Packard Enterprise Company and its consolidated subsidiaries ("Hewlett Packard Enterprise") may differ materially from those expressed or implied by such forward-looking statements and assumptions. The words "believe", "expect", "anticipate", “guide”, “optimistic”, "intend", “aim”, "will", "estimates", "may", "could", "should" and similar expressions are intended to identify such forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including but not limited to any anticipated financial or operational benefits associated with the recent segment realignment; any projections, estimations, or expectations of addressable markets and their sizes, revenue (including annualized revenue run-rate), margins, expenses (including stock-based compensation expenses), investments, effective tax rates, interest rates, the impact of tax law changes and related guidance and regulations, net earnings, net earnings per share, cash flows, liquidity and capital resources, inventory, goodwill, impairment charges, hedges and derivatives and related offsets, order backlog, benefit plan funding, deferred tax assets, share repurchases, currency exchange rates, repayments of debts including our asset-backed debt securities, or other financial items; recent amendments to accounting guidance and any potential impacts on our financial reporting therefrom; any projections or estimations of future orders, including as-a-service orders; any statements of the plans, strategies, and objectives of management for future operations, as well as the execution and consummation of corporate transactions or contemplated acquisitions (including but not limited to our proposed acquisition of Juniper Networks, Inc.) and dispositions (including but not limited to the disposition of H3C shares and the receipt of proceeds therefrom), research and development expenditures, and any resulting benefit, cost savings, charges, or revenue or profitability improvements; any statements concerning the expected development, performance, market share, or competitive performance relating to products or services; any statements concerning technological and market trends, the pace of technological innovation, and adoption of new technologies, including artificial intelligence and products and services offered by Hewlett Packard Enterprise; any statements regarding current or future macroeconomic trends or events and the impacts of those trends and events on Hewlett Packard Enterprise and our financial performance, including but not limited to supply chain, demand for our products and services, and access to liquidity, and our actions to mitigate such impacts on our business; the scope and duration of outbreaks, epidemics, pandemics, or public health crises, and the ongoing conflicts between Russia and Ukraine and in the Middle East, our actions in response thereto, and their impacts on our business, operations, liquidity and capital resources, employees, customers, partners, supply chain, financial results, and the world economy; any statements regarding future regulatory trends and the resulting legal and reputational exposure, including but not limited to those relating to environmental, social, and governance issues; any statements regarding pending investigations, claims, or disputes; any statements of expectation or belief, including those relating to future guidance and the financial performance of Hewlett Packard Enterprise; and any statements of assumptions underlying any of the foregoing. Risks, uncertainties, and assumptions include the need to address the many challenges facing Hewlett Packard Enterprise’s businesses; the competitive pressures faced by Hewlett Packard Enterprise’s businesses; risks associated with executing Hewlett Packard Enterprise’s strategy; the impact of macroeconomic and geopolitical trends and events, including but not limited to supply chain constraints, the use and development of artificial intelligence, the inflationary environment, the ongoing conflicts between Russia and Ukraine and in the Middle East, and the relationship between China and the U.S.; the need to effectively manage third-party suppliers and distribute Hewlett Packard Enterprise's products and services; the protection of Hewlett Packard Enterprise's intellectual property assets, including intellectual property licensed from third parties and intellectual property shared with its former parent; risks associated with Hewlett Packard Enterprise's international operations (including from public health crises, such as pandemics or epidemics, and geopolitical events, such as those mentioned above); the development and transition of new products and services and the enhancement of existing products and services to meet customer needs and respond to emerging technological trends (including the desirability of a unified hybrid-cloud offering); the execution of Hewlett Packard Enterprise’s transformation and mix shift of its portfolio of offerings; the execution and performance of contracts by Hewlett Packard Enterprise and its suppliers, customers, clients, and partners, including any impact thereon resulting from macroeconomic or geopolitical events, such as those mentioned above, the prospect of a shutdown of the U.S. federal government; the hiring and retention of key employees; the execution, integration, consummation, and other risks associated with business combination, disposition, and investment transactions, including but not limited to the risks associated with the completion of our proposed acquisition of Juniper Networks, Inc. and our ability to integrate and implement our plans, forecasts, and other expectations with respect to the consolidated business; the impact of changes to privacy, cybersecurity, environmental, global trade, and other governmental regulations; changes in our product, lease, intellectual property, or real estate portfolio; the payment or non-payment of a dividend for any period; the efficacy of using non-GAAP, rather than GAAP, financial measures in business projections and planning; the judgments required in connection with determining revenue recognition; impact of company policies and related compliance; utility of segment realignments; allowances for recovery of receivables and warranty obligations; provisions for, and resolution of, pending investigations, claims, and disputes; the impacts of tax law changes and related guidance or regulations; and other risks that are described herein, including but not limited to the items discussed in "Risk Factors" in Item 1A of Part I of the Annual Report on Form 10-K for the fiscal year ended October 31, 2023 and that are otherwise described or updated from time to time in Hewlett Packard
3

Table of Content

Enterprise's Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and in other filings made with the Securities and Exchange Commission. Hewlett Packard Enterprise assumes no obligation and does not intend to update these forward-looking statements, except as required by applicable law.
4

Table of Content

PART I. FINANCIAL INFORMATION
Item 1. Financial Statements.
Index
 Page

5

Table of Content

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES
Condensed Consolidated Statements of Earnings
(Unaudited)
 For the three months ended January 31,
 20242023
 In millions, except per share amounts
Net Revenue:  
Products$3,956 $5,114 
Services2,643 2,572 
Financing income156 123 
Total net revenue6,755 7,809 
Costs and Expenses:  
Cost of products2,543 3,460 
Cost of services1,636 1,613 
Financing cost119 78 
Research and development582 623 
Selling, general and administrative1,216 1,257 
Amortization of intangible assets71 73 
Transformation costs20 102 
Disaster charges 1 
Acquisition, disposition and other related charges43 11 
Total costs and expenses6,230 7,218 
Earnings from operations525 591 
Interest and other, net(88)(26)
Earnings from equity interests46 58 
Earnings before provision for taxes483 623 
Provision for taxes(96)(122)
Net earnings $387 $501 
Net Earnings Per Share:  
Basic$0.30 $0.39 
Diluted$0.29 $0.38 
Weighted-average Shares Used to Compute Net Earnings Per Share:  
Basic1,301 1,298 
Diluted1,316 1,315 

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
6

Table of Content

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES
Condensed Consolidated Statements of Comprehensive Income
(Unaudited)
 For the three months ended January 31,
 20242023
 In millions
Net earnings$387 $501 
Other Comprehensive Loss Before Taxes  
Change in Net Unrealized Gains on Available-for-sale Securities:  
Net unrealized gains arising during the period6 5 
6 5 
Change in Net Unrealized Losses on Cash Flow Hedges:  
Net unrealized losses arising during the period(204)(518)
Net losses reclassified into earnings114 247 
(90)(271)
Change in Unrealized Components of Defined Benefit Plans:  
Amortization of net actuarial loss and prior service benefit34 35 
34 35 
Change in Cumulative Translation Adjustment13 20 
Other Comprehensive Loss Before Taxes(37)(211)
Benefit for Taxes13 53 
Other Comprehensive Loss, Net of Taxes(24)(158)
Comprehensive Income$363 $343 


The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
7

Table of Content

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
 As of
 January 31, 2024October 31, 2023
(Unaudited)(Audited)
 In millions, except par value
ASSETS  
Current Assets:  
Cash and cash equivalents$3,758 $4,270 
Accounts receivable, net of allowances3,781 3,481 
Financing receivables, net of allowances3,629 3,543 
Inventory6,049 4,607 
Other current assets3,027 3,047 
Total current assets20,244 18,948 
Property, plant and equipment, net5,997 5,989 
Long-term financing receivables and other assets11,542 11,377 
Investments in equity interests2,249 2,197 
Goodwill17,988 17,988 
Intangible assets582 654 
Total assets$58,602 $57,153 
LIABILITIES AND STOCKHOLDERS' EQUITY  
Current Liabilities:  
Notes payable and short-term borrowings$4,957 $4,868 
Accounts payable8,125 7,136 
Employee compensation and benefits1,027 1,724 
Taxes on earnings182 155 
Deferred revenue3,718 3,658 
Accrued restructuring121 180 
Other accrued liabilities4,505 4,161 
Total current liabilities22,635 21,882 
Long-term debt7,840 7,487 
Other non-current liabilities6,659 6,546 
Commitments and Contingencies
Stockholders' Equity  
HPE Stockholders' Equity:  
Common stock, $0.01 par value (9,600 shares authorized; 1,300 and 1,283 shares issued and outstanding as of January 31, 2024 and October 31, 2023, respectively)
13 13 
Additional paid-in capital28,239 28,199 
Accumulated deficit(3,728)(3,946)
Accumulated other comprehensive loss(3,108)(3,084)
Total HPE stockholders' equity21,416 21,182 
Non-controlling interests 52 56 
Total stockholders' equity21,468 21,238 
Total liabilities and stockholders' equity$58,602 $57,153 
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
8

Table of Content

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows (Unaudited)
 For the three months ended January 31,
 20242023
 In millions
Cash Flows from Operating Activities:  
Net earnings $387 $501 
Adjustments to Reconcile Net Earnings to Net Cash Provided by (Used in) Operating Activities:  
Depreciation and amortization657 656 
Stock-based compensation expense141 140 
Provision for inventory and credit losses32 45 
Restructuring charges7 72 
Deferred taxes on earnings (22)20 
Earnings from equity interests(46)(58)
Other, net72 (60)
Changes in Operating Assets and Liabilities, Net of Acquisitions:
Accounts receivable(310)(112)
Financing receivables(190)(523)
Inventory(1,461)495 
Accounts payable1,041 (2,195)
Taxes on earnings67 46 
Restructuring(78)(96)
Other assets and liabilities(233)240 
Net cash provided by (used in) operating activities64 (829)
Cash Flows from Investing Activities:  
Investment in property, plant and equipment(656)(794)
Proceeds from sale of property, plant and equipment96 159 
Purchases of investments(16) 
Proceeds from maturities and sales of investments4 4 
Financial collateral posted(439)(682)
Financial collateral received271 108 
Payments made in connection with business acquisitions, net of cash acquired (32)
Net cash used in investing activities(740)(1,237)
Cash Flows from Financing Activities:  
Short-term borrowings with original maturities less than 90 days, net(17)745 
Proceeds from debt, net of issuance costs859 261 
Payment of debt(515)(661)
Net payments related to stock-based award activities(94)(107)
Repurchase of common stock(3)(73)
Cash dividends paid to non-controlling interests, net of contributions(8) 
Cash dividends paid to shareholders(169)(156)
Net cash provided by financing activities53 9 
Effect of exchange rate changes on cash, cash equivalents, and restricted cash14 138 
Decrease in cash, cash equivalents and restricted cash(609)(1,919)
Cash, cash equivalents and restricted cash at beginning of period4,581 4,763 
Cash, cash equivalents and restricted cash at end of period$3,972 $2,844 
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
9

Table of Content

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES
Condensed Consolidated Statements of Stockholders' Equity (Unaudited)
Common Stock
For the three months ended January 31, 2024Number of SharesPar ValueAdditional Paid-in CapitalAccumulated DeficitAccumulated
Other
Comprehensive
Loss
Equity
Attributable
to the
Company
Non-
controlling
Interests
Total
Equity
 In millions, except number of shares in thousands
Balance as of October 31, 20231,282,630 $13 $28,199 $(3,946)$(3,084)$21,182 $56 $21,238 
Net earnings387 387 4 391 
Other comprehensive loss(24)(24)(24)
Comprehensive income363 4 367 
Stock-based compensation expense141 141 141 
Tax withholding related to vesting of employee stock plans(122)(122)(122)
Issuance of common stock in connection with employee stock plans and other17,138 21 21 21 
Repurchases of common stock  
Cash dividends declared ($0.13 per share)
(169)(169)(8)(177)
Balance as of January 31, 20241,299,768 $13 $28,239 $(3,728)$(3,108)$21,416 $52 $21,468 

) Represents the impact of the adoption of the accounting standard on the s on financial instruments.
Common Stock
For the three months ended January 31, 2023Number of SharesPar ValueAdditional Paid-in Capital Accumulated Deficit Accumulated
Other
Comprehensive
Loss
Equity
Attributable
to the
Company
Non-
controlling
Interests
Total
Equity
 In millions, except number of shares in thousands
Balance as of October 31, 20221,281,037 $13 $28,299 $(5,350)$(3,098)$19,864 $45 $19,909 
Net earnings501 501 7 508 
Other comprehensive loss(158)(158)(158)
Comprehensive income343 7 350 
Stock-based compensation expense140 140 140 
Tax withholding related to vesting of employee stock plans(134)(134)(134)
Issuance of common stock in connection with employee stock plans and other20,352 24  24 24 
Repurchases of common stock(4,505)(70)(70)(70)
Cash dividends declared ($0.12 per share)
(156)(156)(156)
Balance as of January 31, 20231,296,884 $13 $28,259 $(5,005)$(3,256)$20,011 $52 $20,063 

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
10

Table of Content
HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
(Unaudited)
Note 1: Overview and Summary of Significant Accounting Policies
Background
Hewlett Packard Enterprise Company ("Hewlett Packard Enterprise," "HPE," or the "Company") is a global technology leader focused on developing intelligent solutions that allow customers to capture, analyze and act upon data seamlessly from edge-to-cloud. Hewlett Packard Enterprise enables customers to accelerate business outcomes by driving new business models, creating new customer and employee experiences, and increasing operational efficiency today and into the future. Hewlett Packard Enterprise's customers range from small- and medium-sized businesses to large global enterprises and governmental entities.
Basis of Presentation and Consolidation
The Condensed Consolidated Financial Statements of the Company were prepared in accordance with United States ("U.S.") Generally Accepted Accounting Principles ("GAAP"). The Company’s unaudited Condensed Consolidated Financial Statements include the accounts of the Company and all subsidiaries and affiliates in which the Company has a controlling financial interest or is the primary beneficiary. All intercompany transactions and accounts within the consolidated businesses of the Company have been eliminated. In the opinion of management, the accompanying unaudited Condensed Consolidated Financial Statements of Hewlett Packard Enterprise contain all adjustments, including normal recurring adjustments, necessary to present fairly the Company's financial position as of January 31, 2024 and October 31, 2023, its results of operations for the three months ended January 31, 2024 and 2023, its cash flows for the three months ended January 31, 2024 and 2023, and its statements of stockholders' equity for the three months ended January 31, 2024 and 2023.
The results of operations and the cash flows for the three months ended January 31, 2024 are not necessarily indicative of the results to be expected for the full year. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the Company's Annual Report on Form 10-K for the fiscal year ended October 31, 2023, as filed with the U.S. Securities and Exchange Commission ("SEC") on December 22, 2023.
Segment Realignment
As previously disclosed, effective as of the beginning of the first quarter of fiscal 2024, in order to align the segment financial reporting more closely with its business structure, the Company established two new reportable segments, Hybrid Cloud and Server. Hybrid Cloud includes the historical Storage segment, HPE GreenLake Flex Solutions (which provides flexible as-a-service IT infrastructure through the HPE GreenLake edge-to-cloud platform and was previously reported under the Compute and the High Performance Computing & Artificial Intelligence ("HPC & AI") segments), Private Cloud, and Software (previously reported under the Corporate Investments and Other segment). The Server segment combines the previously separately reported Compute and HPC & AI segments, with adjustments for certain product lines that are now reported in Hybrid Cloud. Additionally, certain products and services previously reported in the financial results for the HPC & AI segment were moved to be reported in the Hybrid Cloud segment, and the Athonet business and certain components of the Communications and Media Solutions (“CMS”) business, both previously reported in the financial results for Corporate Investments and Other, moved to be reported in the Intelligent Edge segment.
As a result, the Company’s new organizational structure consists of the following segments: (i) Server; (ii) Hybrid Cloud; (iii) Intelligent Edge; (iv) Financial Services; and (v) Corporate Investments and Other. The Company is reporting under this re-aligned segment structure beginning with the results of the first quarter of fiscal 2024 included in this Quarterly Report.
The Company has reflected these changes to its segment information retrospectively to the earliest period presented, 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.
Significant Accounting Policies
There have been no changes to the Company's significant accounting policies described in Part II, Item 8, Note 1, "Overview and Summary of Significant Accounting Policies," of the Company's Annual Report on Form 10-K for the fiscal year ended October 31, 2023.
11

Table of Content
HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements (Continued)
(Unaudited)
Recently Adopted Accounting Pronouncements
In September 2022, FASB issued guidance to enhance the transparency of supplier finance programs. The amendments require the disclosure of sufficient information about the program to allow a user of the financial statements to understand the program’s nature, activity during the period, changes from period to period and potential magnitude. The Company adopted this guidance in the first quarter of fiscal 2024 except for the disclosure on the roll forward information, which is effective for fiscal 2025. The Company enters into supplier financing arrangements with external financial institutions. Under these arrangements, suppliers can choose to settle outstanding payment obligations at a discount. The Company holds no economic interest in suppliers' participation, nor does it provide guarantees or pledge assets under these arrangements. Invoices are settled with the financial institutions based on the original supplier payment terms. These arrangements do not alter the Company's rights and obligations towards suppliers, including scheduled payment terms. Liabilities associated with the funded participation in these arrangements, as presented within Accounts Payable on the Condensed Consolidated Balance Sheets, amounted to $387 million, and $295 million as of January 31, 2024 and October 31, 2023, respectively.
Recently Enacted Accounting Pronouncements
Although there are new accounting pronouncements issued by the Financial Accounting Standards Board ("FASB") that the Company will adopt, as applicable, the Company does not believe any of these accounting pronouncements will have a material impact on its Condensed Consolidated Financial Statements.
In December 2023, the FASB issued guidance to provide disaggregated income tax disclosures on the rate reconciliation and income taxes paid. The Company is required to adopt the guidance in the first quarter of fiscal 2026, though early adoption is permitted. The Company is currently evaluating the impact of this amendment on its Condensed Consolidated Financial Statements.
In November 2023, the FASB issued guidance to improve the disclosures about a public entity’s reportable segments and address requests from investors for additional, more detailed information about a reportable segment’s expenses. The Company is required to adopt the guidance in the first quarter of fiscal 2025, though early adoption is permitted. The Company is currently evaluating the impact of this amendment on its Condensed Consolidated Financial Statements.
In March 2023, the FASB issued a guidance which amends certain provisions of ASC 842 that apply to arrangements between related parties under common control. It requires that leasehold improvements associated with common control leases be amortized by the lessee over the useful life of the leasehold improvements to the common control group as long as the lessee controls the use of the underlying asset through a lease. In addition, leasehold improvements associated with common control leases should be accounted for as a transfer between entities under common control through an adjustment to equity if, and when, the lessee no longer controls the use of the underlying asset. The Company is required to adopt the guidance in the first quarter of fiscal 2025, though early adoption is permitted. The Company is currently evaluating the impact of this amendment on its Condensed Consolidated Financial Statements.
Note 2: Segment Information
Hewlett Packard Enterprise's operations are organized into five segments for financial reporting purposes: Server, Hybrid Cloud, Intelligent Edge, Financial Services ("FS"), and Corporate Investments and Other. Hewlett Packard Enterprise's organizational structure is based on a number of factors that the Chief Operating Decision Maker (“CODM”), who is the Chief Executive Officer, uses to evaluate, view, and run the Company's business operations, which include, but are not limited to, customer base and homogeneity of products, services and technology. The five segments are based on this organizational structure and information reviewed by Hewlett Packard Enterprise's management to evaluate segment results. Effective as of the beginning of the first quarter of fiscal 2024, in order to align the Company’s segment financial reporting more closely with its current business structure, the Company realigned its’ reportable segments, see Note 1, "Overview and Summary of Significant Accounting Policies" to the Condensed Consolidated Financial Statements for additional information. A summary description of each segment follows:
Server consists of general-purpose servers for multi-workload computing and workload-optimized servers to deliver the best performance and value for demanding applications, and integrated systems comprised of software and hardware designed to address High-Performance Computing and Supercomputing (including exascale applications), Artificial Intelligence (“AI”), Data Analytics, and Transaction Processing workloads for government and commercial customers globally. This portfolio of products includes our secure and versatile HPE ProLiant Rack and Tower servers; HPE Synergy, a composable infrastructure for traditional and cloud-native applications; HPE Scale Up Servers product lines for critical applications, including large
12

Table of Content
HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements (Continued)
(Unaudited)
enterprise software applications and data analytics platforms; HPE Edgeline servers; HPE Cray EX; HPE Cray XD (formerly known as HPE Apollo); and HPE NonStop. Server offerings also include operational and support services sold with systems and as standalone services.
Hybrid Cloud offers a wide variety of cloud-native and hybrid solutions across storage, private cloud and the infrastructure software-as-a-service space. Storage includes data storage and data management offerings with the HPE Alletra Storage portfolio; unstructured data solutions and analytics for AI; data protection and archiving; and storage networking. It also includes AIOps-driven intelligence with HPE InfoSight and HPE CloudPhysics. In private cloud, our HPE GreenLake offerings include new cloud-native offerings and capabilities for virtual machines, containers, and bare metal; a full suite of private cloud offerings that enable customers to self-manage or choose a fully managed experience; and a portfolio of world-class AI infrastructure delivered as-a-service. This segment also provides self-service private cloud on-demand with HPE GreenLake for Private Cloud Business Edition. Infrastructure software includes monitoring and observability for day two operations and beyond through our acquisition of OpsRamp and unified data access through our HPE Ezmeral Data Fabric and analytics suite, which helps move and transform data for use in AI and other applications. Hybrid Cloud segment also includes data lifecycle management and protection through our suite of offerings, including Zerto Disaster Recovery.
Intelligent Edge offers wired and wireless local area networks, campus, branch, and data center switching, software-defined wide-area-networks, private and public cellular network software, network security, and associated services that enable secure connectivity for businesses of any size. The HPE Aruba Networking product portfolio includes hardware products such as Wi-Fi access points, switches, and gateways. The HPE Aruba Networking software and services portfolio includes cloud-based management, network management, network access control, software-defined wide-area networking, network security, analytics and assurance, location services software, private and public cellular core software, and professional and support services, as well as as-a-service and consumption models through the HPE GreenLake edge-to-cloud platform for the Intelligent Edge portfolio of products. Intelligent Edge offerings are consolidated in the edge service platform, which takes a cloud-native approach that provides customers with a unified framework to meet their connectivity, security, and financial needs across campus, branch, data center, and remote worker environments.
Financial Services provides flexible investment solutions, such as leasing, financing, IT consumption, utility programs, and asset management services, for customers that facilitate unique technology deployment models and the acquisition of complete IT solutions, including hardware, software, and services from Hewlett Packard Enterprise and others. FS also supports financial solutions for on-premise flexible consumption models, such as the HPE GreenLake edge-to-cloud platform.
Corporate Investments and Other includes the Advisory and Professional Services ("A & PS") business, which primarily offers consultative-led services, HPE and partner technology expertise and advice, implementation services as well as complex solution engagement capabilities; CMS, which primarily offers software and related services to the telecommunications industry; and Hewlett Packard Labs, which is responsible for research and development.
Segment Policy
Hewlett Packard Enterprise does not allocate to its segments certain operating expenses, which it manages at the corporate level. These unallocated operating costs include certain corporate costs and eliminations, stock-based compensation expense, amortization of intangible assets, transformation costs, disaster recovery/charges, and acquisition, disposition and other related charges. Total assets by segment are not presented as that information is not used to allocate resources or assess performance at the segment level and is not reviewed by our CODM.
13

Table of Content
HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements (Continued)
(Unaudited)
Segment Operating Results
Segment net revenue and operating results were as follows:
 ServerHybrid CloudIntelligent EdgeFinancial
Services
Corporate
Investments and Other
Total
In millions
Three months ended January 31, 2024:
     
Net revenue$3,246 $1,206 $1,193 $872 $238 $6,755 
Intersegment net revenue106 42 8 1  157 
Total segment net revenue$3,352 $1,248 $1,201 $873 $238 $6,912 
Segment earnings (loss) from operations$383 $47 $353 $74 $(10)$847 
Three months ended January 31, 2023:
     
Net revenue$4,184 $1,361 $1,163 $867 $234 $7,809 
Intersegment net revenue148 23 6 6  183 
Total segment net revenue$4,332 $1,384 $1,169 $873 $234 $7,992 
Segment earnings (loss) from operations$678 $80 $227 $63 $(22)$1,026 
    The reconciliation of segment operating results to Condensed Consolidated Statements of Earnings was as follows:
 For the three months ended January 31,
 20242023
 In millions
Net Revenue: 
Total segments$6,912 $7,992 
Eliminations of intersegment net revenue(157)(183)
Total consolidated net revenue$6,755 $7,809 
Earnings Before Taxes:  
Total segment earnings from operations$847 $1,026 
Unallocated corporate costs and eliminations(72)(108)
Stock-based compensation expense(141)(140)
Amortization of intangible assets(71)(73)
Transformation costs(20)(102)
Disaster recovery (charges)
25 (1)
Acquisition, disposition and other related charges(43)(11)
Interest and other, net(88)(26)
Earnings from equity interests46 58 
Total earnings before provision for taxes$483 $623 
14

Table of Content
HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements (Continued)
(Unaudited)
Geographic Information
Net revenue by geographic region was as follows:
For the three months ended January 31,
20242023
In millions
Americas:
United States$2,294 $2,885 
Americas excluding U.S.507 569 
Total Americas2,801 3,454 
Europe, Middle East and Africa2,434 2,680 
Asia Pacific and Japan1,520 1,675 
Total consolidated net revenue$6,755 $7,809 
Note 3: Transformation Programs
Transformation programs are comprised of the Cost Optimization and Prioritization Plan and the HPE Next Plan. During the third quarter of fiscal 2020, the Company launched the Cost Optimization and Prioritization Plan, which focuses on realigning the workforce to areas of growth, real estate strategies, and simplifying and evolving our product portfolio strategy. The transformation costs predominantly related to labor restructuring, non-labor restructuring, IT investments, design and execution charges and real estate initiatives. The primary elements of the Cost Optimization and Prioritization Plan have been substantially completed by the end of fiscal 2023.
During the third quarter of fiscal 2017, the Company launched the HPE Next Plan to put in place a purpose-built company designed to compete and win in the markets where it participates. Through this program, the Company has been simplifying the operating model, and streamlining its offerings, business processes and business systems to improve its strategy execution. The primary elements of the HPE Next Plan have been substantially completed by the end of fiscal 2023.
Cost Optimization and Prioritization Plan
The components of transformation costs relating to the Cost Optimization and Prioritization Plan were as follows:
 For the three months ended January 31,
20242023
 In millions
Program management$1 $1 
IT costs4 8 
Restructuring charges8 71 
Total $13 $80 
HPE Next Plan
The components of transformation costs relating to HPE Next Plan were as follows:
 For the three months ended January 31,
20242023
 In millions
IT costs9 21 
Restructuring (credits) charges(1)1 
Total $8 $22 
15

Table of Content
HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements (Continued)
(Unaudited)
Restructuring Plan
Restructuring activities related to the Company's employees and infrastructure under the Cost Optimization and Prioritization Plan and HPE Next Plan are presented in the table below:
Cost Optimization and Prioritization PlanHPE Next Plan
Employee
Severance
Infrastructure
and other
Employee
Severance
Infrastructure
and other
In millions
Liability as of October 31, 2023
$152 $127 $6 $27 
Charges (credits)10 (2) (1)
Cash payments(64)(12)(1)(1)
Non-cash items1 1 1 (1)
Liability as of January 31, 2024
$99 $114 $6 $24 
Total costs incurred to date, as of January 31, 2024
$803 $559 $1,267 $270 
Total expected costs to be incurred as of January 31, 2024
$820 $560 $1,267 $270 
The current restructuring liability related to the transformation programs, reported in the Condensed Consolidated Balance Sheets as of January 31, 2024 and October 31, 2023, was $121 million and $180 million, respectively, in accrued restructuring, and $20 million and $22 million, respectively, in Other accrued liabilities. The non-current restructuring liability related to the transformation programs, reported in Other non-current liabilities in the Condensed Consolidated Balance Sheets as of January 31, 2024 and October 31, 2023, was $102 million and $110 million, respectively.
Note 4: Retirement Benefit Plans
The Company's net pension benefit cost for defined benefit plans recognized in the Condensed Consolidated Statements of Earnings was as follows:
 For the three months ended January 31,
 20242023
 In millions
Service cost$12 $13 
Interest cost(1)
101 93 
Expected return on plan assets(1)
(136)(130)
Amortization and Deferrals(1):
  
Actuarial loss37 39 
Prior service benefit(2)(3)
Net periodic benefit cost12 12 
Settlement loss and special termination benefits(1)
1  
Total net benefit cost$13 $12 
(1)These non-service components were included in Interest and other, net in the Condensed Consolidated Statements of Earnings.
Note 5: Taxes on Earnings
Provision for Taxes
For the three months ended January 31, 2024 and 2023, the Company recorded income tax expense of $96 million and $122 million, respectively, which reflects an effective tax rate of 19.9% and 19.6%, respectively. The effective tax rate generally differs from the U.S. federal statutory rate of 21% due to favorable tax rates associated with certain earnings from the Company’s operations in lower tax jurisdictions throughout the world but are also impacted by discrete tax adjustments during each fiscal period.
16

Table of Content
HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements (Continued)
(Unaudited)
For the three months ended January 31, 2024, the Company recorded immaterial net income tax charges related to various items discrete to the period.
For the three months ended January 31, 2023, the Company recorded $11 million of net income tax benefits related to various items discrete to the period. The amount primarily included $22 million of net income tax benefits related to transformation costs, and acquisition, disposition and other related charges and $13 million of net excess tax benefits related to stock-based compensation, partially offset by $23 million of net income tax charges related to tax audit settlements and changes in uncertain tax positions.
Uncertain Tax Positions
As of January 31, 2024 and October 31, 2023, the amount of unrecognized tax benefits was $674 million and $672 million, respectively, of which up to $372 million and $354 million, respectively, would affect the Company's effective tax rate if realized as of their respective periods.
For tax liabilities pertaining to unrecognized tax benefits, the Company recognizes interest income from favorable settlements and interest expense and penalties in Provision for taxes in the Condensed Consolidated Statements of Earnings. As of January 31, 2024 and October 31, 2023, the Company had accrued $57 million and $56 million, respectively, for interest and penalties in the Condensed Consolidated Balance Sheets.
The Company engages in continuous discussion and negotiation with tax authorities regarding tax matters in various jurisdictions. The Company is no longer subject to U.S. federal tax audits for years prior to 2017. The IRS is conducting audits of the Company's fiscal 2017 through 2022 U.S. federal income tax returns. During the fourth quarter of fiscal 2023, the IRS issued notices of proposed adjustments (“NOPAs”) for 2017, 2018, and 2019 relating to HPE’s intercompany transfer pricing. During the fiscal quarter, the IRS issued a Revenue Agent Report (“RAR”) finalizing their position on the NOPAs for the same issues and same fiscal years. The IRS is seeking to increase taxable income across the three fiscal years by $904 million. As of the balance sheet date, HPE has sufficient tax credit carryforwards to offset any incremental tax liability from the adjustments in the RAR. However, HPE disagrees with the IRS’ adjustments and believes the positions taken on its tax returns are more likely than not to prevail on technical merits, and the Company will defend these positions through the IRS administrative processes, as necessary. Accordingly, no changes have been made to the Company’s reserves for uncertain tax positions as of January 31, 2024 relating to the IRS’ adjustments. With respect to major state and foreign tax jurisdictions, the Company is no longer subject to tax authority examinations for years prior to 2005. Additionally, it is reasonably possible that certain foreign and state tax issues may be concluded in the next 12 months, including issues involving resolution of certain intercompany transactions and other matters; accordingly, the Company believes it is reasonably possible that its existing unrecognized tax benefits for these matters may be reduced by an amount up to $8 million within the next 12 months.
Deferred Tax Assets and Liabilities
Deferred tax assets and liabilities included in the Condensed Consolidated Balance Sheets were as follows:
 As of
 January 31, 2024October 31, 2023
 In millions
Deferred tax assets$2,328 $2,264 
Deferred tax liabilities(331)(326)
Deferred tax assets net of deferred tax liabilities$1,997 $1,938 
17

Table of Content
HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements (Continued)
(Unaudited)
Note 6: Balance Sheet Details
Cash, Cash Equivalents and Restricted Cash
As of
January 31, 2024October 31, 2023
In millions
Cash and cash equivalents $3,758 $4,270 
Restricted cash(1)
214 311 
Total$3,972 $4,581 
(1)    The Company included restricted cash in Other current assets in the accompanying Condensed Consolidated Balance Sheets.
Inventory
 As of
 January 31, 2024October 31, 2023
 In millions
Purchased parts and fabricated assemblies$4,733 $2,940 
Finished goods1,316 1,667 
Total $6,049 $4,607 
Property, Plant and Equipment, net
 As of
 January 31, 2024October 31, 2023
 In millions
Land$66 $66 
Buildings and leasehold improvements1,547 1,521 
Machinery and equipment, including equipment held for lease10,564 10,382 
Gross property, plant and equipment12,177 11,969 
Accumulated depreciation(6,180)(5,980)
Property, plant and equipment, net$5,997 $5,989 
Warranties
The Company's aggregate product warranty liabilities and changes for the three months ended January 31, 2024, and the fiscal year ended October 31, 2023 were as follows:
 As of
January 31, 2024October 31, 2023
 In millions
Balance at beginning of period$318 $360 
Charges38 184 
Adjustments related to pre-existing warranties2 (18)
Settlements made (46)(208)
Balance at end of period$312 $318 
Contract Balances
The Company’s contract balances consist of contract assets, contract liabilities, and costs to obtain a contract with a customer.
18

Table of Content
HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements (Continued)
(Unaudited)
Contract Assets
A summary of accounts receivable, net, including unbilled receivables was as follows:
As of
January 31, 2024October 31, 2023
In millions
Accounts receivable$3,540 $3,254 
Unbilled receivables277 264 
Allowances(36)(37)
Total$3,781 $3,481 
The allowances for credit losses related to accounts receivable and changes for the three months ended January 31, 2024, and the fiscal year ended October 31, 2023 were as follows:
 As of
 January 31, 2024October 31, 2023
 In millions
Balance at beginning of period$37 $25 
Provision for credit losses17 29 
Adjustments to existing allowances, including write offs(18)(17)
Balance at end of period$36 $37 
Sale of Trade Receivables
The Company has third-party revolving short-term financing arrangements intended to facilitate the working capital requirements of certain customers. For the three months ended January 31, 2024, the Company sold $0.8 billion and for the fiscal year ended October 31, 2023, the Company sold $4.1 billion of trade receivables. The Company recorded an obligation of $50 million and $80 million within Notes payable and short-term borrowings in its Condensed Consolidated Balance Sheets as of January 31, 2024 and October 31, 2023, respectively, related to the trade receivables sold and collected from the third-party for which the revenue recognition was deferred.
Contract Liabilities and Remaining Performance Obligations
As of January 31, 2024 and October 31, 2023, current deferred revenue of $3.7 billion and $3.6 billion, respectively, were recorded in Deferred revenue, and non-current deferred revenue of $3.4 billion and $3.3 billion, respectively, were recorded in Other non-current liabilities in the Condensed Consolidated Balance Sheets. For the three months ended January 31, 2024, approximately $1.3 billion of revenue was recognized relating to contract liabilities recorded as of October 31, 2023.
Revenue allocated to remaining performance obligations represents contract work that has not yet been performed and does not include contracts where the customer is not committed. Remaining performance obligations estimates are subject to change and are affected by several factors, including contract terminations, changes in the scope of contracts, adjustments for revenue that has not materialized and adjustments for currency. As of January 31, 2024, the aggregate amount of remaining performance obligations, or deferred revenue, was $7.1 billion. The Company expects to recognize approximately 45% of this balance over fiscal 2024 with the remainder to be recognized thereafter.
Costs to Obtain a Contract
As of January 31, 2024, the current and non-current portions of the capitalized costs to obtain a contract were $87 million and $138 million, respectively. As of October 31, 2023, the current and non-current portions of the capitalized costs to obtain a contract were $86 million and $138 million, respectively. The current and non-current portions of the capitalized costs to obtain a contract were included in Other current assets, and Long-term financing receivables and other assets, respectively, in the Condensed Consolidated Balance Sheets. For the three months ended January 31, 2024 and 2023, the Company amortized $26 million and $22 million respectively, of capitalized costs to obtain a contract. The amortized capitalized costs to obtain a contract are included in Selling, general and administrative expense in the Condensed Consolidated Statements of Earnings.
19

Table of Content
HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements (Continued)
(Unaudited)
Note 7: Accounting for Leases as a Lessor
Financing receivables represent sales-type and direct-financing leases of the Company and third-party products. These receivables typically have terms ranging from two to five years and are usually collateralized by a security interest in the underlying assets. Financing receivables also include billed receivables from operating leases. The allowance for credit losses represents future expected credit losses over the life of the receivables based on past experience, current information and forward-looking economic considerations. The components of financing receivables were as follows:
 As of
 January 31, 2024October 31, 2023
 In millions
Minimum lease payments receivable$9,535 $9,363 
Unguaranteed residual value463 438 
Unearned income(1,037)(987)
Financing receivables, gross8,961 8,814 
Allowance for credit losses
(226)(243)
Financing receivables, net8,735 8,571 
Less: current portion(3,629)(3,543)
Amounts due after one year, net$5,106 $5,028 
Sale of Financing Receivables
The Company enters into arrangements to transfer the contractual payments due under certain financing receivables to third party financial institutions. For the three months ended January 31, 2024 and the fiscal year ended October 31, 2023, the Company sold $23 million and $237 million of financing receivables, respectively.
Credit Quality Indicators
Due to the homogeneous nature of its leasing transactions, the Company manages its financing receivables on an aggregate basis when assessing and monitoring credit risk. Credit risk is generally diversified due to the large number of entities comprising the Company's customer base and their dispersion across many different industries and geographic regions. The Company evaluates the credit quality of an obligor at lease inception and monitors that credit quality over the term of a transaction. The Company assigns risk ratings to each lease based on the creditworthiness of the obligor and other variables that augment or mitigate the inherent credit risk of a particular transaction and periodically updates the risk ratings when there is a change in the underlying credit quality. Such variables include the underlying value and liquidity of the collateral, the essential use of the equipment, the term of the lease, and the inclusion of credit enhancements, such as guarantees, letters of credit or security deposits.
The credit risk profile of gross financing receivables, based on internal risk ratings as of January 31, 2024, presented on amortized cost basis by year of origination was as follows:
 
As of January 31, 2024
Risk Rating
LowModerateHigh
Fiscal YearIn millions
2024$396 $194 $4 
20232,200 1,241 44 
20221,572 969 52 
2021771 564 63 
2020 and prior366 410 115 
Total$5,305 $3,378 $278 
20

Table of Content
HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements (Continued)
(Unaudited)
The credit risk profile of gross financing receivables, based on internal risk ratings as of October 31, 2023, presented on amortized cost basis by year of origination was as follows:
 As of October 31, 2023
Risk Rating
LowModerateHigh
Fiscal YearIn millions
2023$2,100 $1,196 $31 
20221,681 1,052 51 
2021868 645 57 
2020336 285 35 
2019 and prior155 223 99 
Total$5,140 $3,401 $273 
Accounts rated low risk typically have the equivalent of a Standard & Poor's rating of BBB– or higher, while accounts rated moderate risk generally have the equivalent of BB+ or lower. The Company classifies accounts as high risk when it considers the financing receivable to be impaired or when management believes there is a significant near-term risk of impairment. The credit quality indicators do not reflect any mitigation actions taken to transfer credit risk to third parties.
Allowance for Credit Losses
The allowance for credit losses for financing receivables as of January 31, 2024 and October 31, 2023 and the respective changes for the three and twelve months then ended were as follows:
 As of
 January 31, 2024October 31, 2023
 In millions
Balance at beginning of period$243 $325 
Provision for credit losses11 58 
Write-offs(28)(140)
Balance at end of period$226 $243 
Non-Accrual and Past-Due Financing Receivables
The following table summarizes the aging and non-accrual status of gross financing receivables:
 As of
 January 31, 2024October 31, 2023
 In millions
Billed:(1)
  
Current 1-30 days$374 $320 
Past due 31-60 days38 30 
Past due 61-90 days25 13 
Past due > 90 days89 100 
Unbilled sales-type and direct-financing lease receivables8,435 8,351 
Total gross financing receivables$8,961 $8,814 
Gross financing receivables on non-accrual status(2)
$224 $227 
Gross financing receivables 90 days past due and still accruing interest(2)
$83 $81 
(1)Includes billed operating lease receivables and billed sales-type and direct-financing lease receivables.
(2)Includes billed operating lease receivables and billed and unbilled sales-type and direct-financing lease receivables.
21

Table of Content
HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements (Continued)
(Unaudited)
The following table presents amounts included in the Condensed Consolidated Statements of Earnings related to lessor activity:
For the three months ended January 31,
Location20242023
In millions
Interest income from sales-type leases and direct financing leasesFinancing Income$156 $123 
Lease income from operating leasesServices599 589 
Total lease income$755 $712 
Variable Interest Entities
The Company has issued asset-backed debt securities under a fixed-term securitization program to private investors. The asset-backed debt securities are collateralized by the U.S. fixed-term financing receivables and leased equipment in the offering, which is held by a Special Purpose Entity ("SPE"). The SPE meets the definition of a Variable Interest Entity ("VIE") and is consolidated, along with the associated debt, into the Condensed Consolidated Financial Statements as the Company is the primary beneficiary of the VIE. The SPE is a bankruptcy-remote legal entity with separate assets and liabilities. The purpose of the SPE is to facilitate the funding of customer receivables and leased equipment in the capital markets.
The Company’s risk of loss related to securitized receivables and leased equipment is limited to the amount by which the Company’s right to receive collections for assets securitized exceeds the amount required to pay interest, principal, and fees and expenses related to the asset-backed securities.
The following table presents the assets and liabilities held by the consolidated VIE as of January 31, 2024 and October 31, 2023, which are included in the Condensed Consolidated Balance Sheets. The assets in the table below include those that can be used to settle the obligations of the VIE. Additionally, general creditors do not have recourse to the assets of the VIE.
As of
 January 31, 2024October 31, 2023
Assets held by VIE:In millions
Other current assets$162 $145 
Financing receivables
Short-term888 764 
Long-term1,219 983 
Property, plant and equipment, net1,355 1,214 
Liabilities held by VIE:
Notes payable and short-term borrowings, net of unamortized debt issuance costs1,528 1,392 
Long-term debt, net of unamortized debt issuance costs$1,369 $1,082 
For the three months ended January 31, 2024, financing receivables and leased equipment transferred via securitization through the SPE were $0.6 billion and $0.3 billion, respectively. For the fiscal year ended October 31, 2023, financing receivables and leased equipment transferred via securitization through the SPE were $0.8 billion and $0.7 billion, respectively.
Note 8: Acquisitions
Pending Merger with Juniper Networks, Inc.
On January 9, 2024, the Company entered into a definitive merger agreement under which HPE will acquire Juniper Networks, Inc. (“Juniper Networks”) in an all-cash transaction for $40.00 per share, representing an equity value of approximately $14 billion. The transaction was unanimously approved by the boards of directors of both companies. The transaction is expected to be funded based on financing commitments for $14 billion in term loans. Such financing will ultimately be replaced, in part, with a combination of new debt, mandatory convertible preferred securities, and cash on the
22

Table of Content
HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements (Continued)
(Unaudited)
balance sheet. The closing of the transaction remains subject to receipt of regulatory approvals, approval of the transaction by Juniper Networks shareholders, and satisfaction of other customary closing conditions.
Note 9: Goodwill
Goodwill is tested for impairment at the reporting unit level. As of January 31, 2024, the Company's reporting units are consistent with the reportable segments identified in Note 2, “Segment Information”, with the exception of Server and Corporate Investments and Other. The Server segment contains two reporting units, Compute and HPC & AI. The Corporate Investments and Other segment contains two reporting units, A & PS and CMS. The following table represents the carrying value of goodwill, by reportable segment as of January 31, 2024 and October 31, 2023.
 ServerHybrid CloudIntelligent EdgeFinancial ServicesCorporate Investments and OtherTotal
 In millions
Balance as of October 31, 2023 and
January 31, 2024
$10,220 $4,716 $2,908 $144 $ $17,988 
Goodwill is tested annually for impairment, as of the first day of the fourth quarter, at the reporting unit level. As a result of the realignment, the Company performed an interim quantitative goodwill impairment test for all of its reporting units as of November 1, 2023, which did not result in any goodwill impairment charges. There has been no change to the accumulated impairment loss from the Company's Annual Report on Form 10-K for the fiscal year ended October 31, 2023. The fair value of all reporting units continued to exceed the carrying amount of their net assets. The excess of fair value over carrying amount for our reporting units ranged from approximately 4% to 184% of the respective carrying amounts. In order to evaluate the sensitivity of the estimated fair value of our reporting units in the goodwill impairment test, the Company applied a 10% decrease to the fair value of each reporting unit. Based on the results of this hypothetical 10% decrease, all of the reporting units had an excess of fair value over carrying value with the exception of the Compute and HPC & AI reporting units.
The Compute reporting unit has goodwill of $8.2 billion as of January 31, 2024, and excess of fair value over carrying value of 4% as of the interim test date. The Compute business is cyclical in nature. Over the last several years, digital transformation drove increased investment to modernize infrastructure. However, in the current macroeconomic and inflationary environment, customers have slowed their investments resulting in lower server demand and competitive pricing. These dynamics are further compounded by higher supply chain costs. During this cycle, the Compute business continues to focus on capturing market share while maintaining operating margin. If the global macroeconomic or geopolitical conditions worsen, projected revenue growth rates or operating margins decline, weighted average cost of capital increases, or if the Company has significant or sustained decline in its stock price, it is possible its estimates about the Compute reporting unit's ability to successfully address the current challenges may change, which could result in the carrying value of the Compute reporting unit exceeding its estimated fair value and potential impairment charges.
The HPC & AI reporting unit has goodwill of $2.0 billion as of January 31, 2024, and excess of fair value over carrying value of 4% as of the interim test date. The HPC & AI business continues to face challenges related to supply chain constraints of key components and other operational challenges impacting our ability to achieve certain customer acceptance milestones required for revenue recognition and resulting cost increases associated with fulfilling contracts over longer than originally anticipated timelines. We currently believe these challenges will be successfully addressed as the supply chain constraints continue to improve. If the global macroeconomic or geopolitical conditions worsen, projected revenue growth rates or operating margins decline, weighted average cost of capital increases, or if the Company has significant or sustained decline in its stock price, it is possible its estimates about the HPC & AI reporting unit's ability to successfully address the current challenges may change, which could result in the carrying value of the HPC & AI reporting unit exceeding its estimated fair value and potential impairment charges.
Note 10: Fair Value
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date.
23

Table of Content
HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements (Continued)
(Unaudited)
The Company uses valuation techniques that are based upon observable and unobservable inputs. Observable inputs are developed using market data such as publicly available information and reflect the assumptions market participants would use, while unobservable inputs are developed using the best information available about the assumptions market participants would use.
The following table presents the Company's assets and liabilities that are measured at fair value on a recurring basis:
 As of January 31, 2024As of October 31, 2023
 Fair Value
Measured Using
Fair Value
Measured Using
 
Quoted Prices in Active Markets for Identical Assets
(Level 1)
Significant Other Observable Remaining Inputs (Level 2)
Significant Other Unobservable Remaining Inputs
(Level 3)
Total
Quoted Prices in Active Markets for Identical Assets
(Level 1)
Significant Other Observable Remaining Inputs (Level 2)
Significant Other Unobservable Remaining Inputs
(Level 3)
Total
 In millions