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Published: 2024-02-07 00:00:00 ET
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EX-99.1 2 ex-991x02072024x8k.htm EX-99.1 Document

Exhibit 99.1

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES
FISCAL 2023 SEGMENT INFORMATION (Revised)
(Unaudited)
(In millions)
REVISED AMOUNTSAMOUNTS AS PREVIOUSLY REPORTED VARIANCE
Three months endedTwelve months endedThree months endedTwelve months endedThree months endedTwelve months ended
Jan. 31, 2023Apr. 30, 2023July 31, 2023Oct. 31, 2023Oct. 31, 2023Jan. 31, 2023Apr. 30, 2023July 31, 2023Oct. 31, 2023Oct. 31, 2023Jan. 31, 2023Apr. 30, 2023July 31, 2023Oct. 31, 2023Oct. 31, 2023
Net Revenue: (a)
Compute$3,508 $2,734 $2,589 $2,591 $11,422 $3,456 $2,761 $2,624 $2,595 $11,436 $52 $(27)$(35)$(4)$(14)
HPC & AI824 553 579 983 2,939 1,056 840 836 1,181 3,913 (232)(287)(257)(198)(974)
Storage— — — — — 1,187 1,043 1,074 1,111 4,415 (1,187)(1,043)(1,074)(1,111)(4,415)
Hybrid Cloud1,384 1,371 1,397 1,341 5,493 — — — — — 1,384 1,371 1,397 1,341 5,493 
Intelligent Edge1,169 1,344 1,456 1,410 5,379 1,127 1,304 1,415 1,358 5,204 42 40 41 52 175 
Financial Services873 858 873 876 3,480 873 858 873 876 3,480 — — — — — 
Corporate Investments and Other234 242 246 263 985 293 296 318 343 1,250 (59)(54)(72)(80)(265)
Total segments7,992 7,102 7,140 7,464 29,698 7,992 7,102 7,140 7,464 29,698 — — — — — 
Elimination of intersegment net revenue (183)(129)(138)(113)(563)(183)(129)(138)(113)(563)— — — — — 
Total HPE consolidated net revenue$7,809 $6,973 $7,002 $7,351 $29,135 $7,809 $6,973 $7,002 $7,351 $29,135 $— $— $— $— $— 
Earnings Before Taxes: (a)
Compute$675 $491 $329 $317 $1,812 $609 $420 $285 $255 $1,569 $66 $71 $44 $62 $243 
HPC & AI3 (18)(10)43 18 1 (2)(7)55 47 2 (16)(3)(12)(29)
Storage— — — — — 142 82 115 90 429 (142)(82)(115)(90)(429)
Hybrid Cloud80 26 75 51 232 — — — — — 80 26 75 51 232 
Intelligent Edge227 332 402 382 1,343 247 351 420 401 1,419 (20)(19)(18)(19)(76)
Financial Services63 76 72 70 281 82 84 73 78 317 (19)(8)(1)(8)(36)
Corporate Investments and Other(22)(19)(20)(16)(77)(55)(47)(38)(32)(172)33 28 18 16 95 
Total segment earnings from operations1,026 888 848 847 3,609 1,026 888 848 847 3,609 — — — — — 
Unallocated corporate costs and eliminations(108)(89)(130)(137)(464)(108)(89)(130)(137)(464)— — — — — 
Stock-based compensation expense(140)(126)(91)(71)(428)(140)(126)(91)(71)(428)— — — — — 
Amortization of intangible assets(73)(71)(72)(72)(288)(73)(71)(72)(72)(288)— — — — — 
Transformation costs(102)(60)(65)(56)(283)(102)(60)(65)(56)(283)— — — — — 
Disaster (charges) recoveries(1)(3)2 14 12 (1)(3)2 14 12 — — — — — 
Acquisition, disposition and other related charges
(11)(19)(21)(18)(69)(11)(19)(21)(18)(69)— — — — — 
Interest and other, net(25)(54)(50)(27)(156)(25)(54)(50)(27)(156)— — — — — 
Tax indemnification and other adjustments(1)6 45 5 55 (1)6 45 5 55 — — — — — 
Non-service net periodic benefit credit (cost)— 1 (3)(1)(3)— 1 (3)(1)(3)— — — — — 
Earnings from equity interests58 49 73 65 245 58 49 73 65 245 — — — — — 
Total HPE consolidated earnings before taxes$623 $522 $536 $549 $2,230 $623 $522 $536 $549 $2,230 $— $— $— $— $— 




HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES
FISCAL 2023 SEGMENT INFORMATION (Revised)
(Unaudited)
REVISED AMOUNTSAMOUNTS AS PREVIOUSLY REPORTED VARIANCE
Three months endedTwelve months endedThree months endedTwelve months endedThree months endedTwelve months ended
Jan. 31, 2023Apr. 30, 2023July 31, 2023Oct. 31, 2023Oct. 31, 2023Jan. 31, 2023Apr. 30, 2023July 31, 2023Oct. 31, 2023Oct. 31, 2023Jan. 31, 2023Apr. 30, 2023July 31, 2023Oct. 31, 2023Oct. 31, 2023
Segment Operating Margin:(a)
Compute19.2 %18.0 %12.7 %12.2 %15.9 %17.6 %15.2 %10.9 %9.8 %13.7 %1.6 pts2.8 pts1.8 pts2.4 pts2.2 pts
HPC & AI0.4 %(3.3)%(1.7)%4.4 %0.6 %0.1 %(0.2)%(0.8)%4.7 %1.2 %0.3 pts(3.1 pts)(0.9 pts)(0.3 pts)(0.6 pts)
StorageN/AN/AN/AN/AN/A12.0 %7.9 %10.7 %8.1 %9.7 %N/AN/AN/AN/AN/A
Hybrid Cloud5.8 %1.9 %5.4 %3.8 %4.2 %N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A
Intelligent Edge19.4 %24.7 %27.6 %27.1 %25.0 %21.9 %26.9 %29.7 %29.5 %27.3 %(2.5 pts)(2.2 pts)(2.1 pts)(2.4 pts)(2.3 pts)
Financial Services7.2 %8.9 %8.2 %8.0 %8.1 %9.4 %9.8 %8.4 %8.9 %9.1 %(2.2 pts)(0.9 pts)(0.2 pts)(0.9 pts)(1.0 pts)
Corporate Investments and Other(9.4)%(7.9)%(8.1)%(6.1)%(7.8)%(18.8)%(15.9)%(11.9)%(9.3)%(13.8)%9.4 pts8.0 pts3.8 pts3.2 pts6.0 pts
Total segment operating margin12.8 %12.5 %11.9 %11.3 %12.2 %12.8 %12.5 %11.9 %11.3 %12.2 %— pts— pts— pts— pts— pts



HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES
FISCAL 2022 SEGMENT INFORMATION (Revised)
(Unaudited)
(In millions)
REVISED AMOUNTSAMOUNTS AS PREVIOUSLY REPORTEDVARIANCE
Three months endedTwelve months endedThree months endedTwelve months endedThree months endedTwelve months ended
Jan. 31, 2022Apr. 30, 2022July 31, 2022Oct. 31, 2022Oct. 31, 2022Jan. 31, 2022Apr. 30, 2022July 31, 2022Oct. 31, 2022Oct. 31, 2022Jan. 31, 2022Apr. 30, 2022July 31, 2022Oct. 31, 2022Oct. 31, 2022
Net Revenue: (a)
Compute$3,177 $3,047 $3,077 $3,845 $13,146 $3,044 $3,011 $3,027 $3,768 $12,850 $133 $36 $50 $77 $296 
HPC & AI563 504 627 632 2,326 790 710 830 862 3,192 (227)(206)(203)(230)(866)
Storage— — — — — 1,128 1,072 1,129 1,274 4,603 (1,128)(1,072)(1,129)(1,274)(4,603)
Hybrid Cloud1,235 1,253 1,302 1,443 5,233 — — — — — 1,235 1,253 1,302 1,443 5,233 
Intelligent Edge950 913 982 1,012 3,857 901 867 941 965 3,674 49 46 41 47 183 
Financial Services842 823 817 857 3,339 842 823 817 857 3,339 — — — — — 
Corporate Investments and Other263 270 239 240 1,012 325 327 300 303 1,255 (62)(57)(61)(63)(243)
Total Segments7,030 6,810 7,044 8,029 28,913 7,030 6,810 7,044 8,029 28,913 — — — — — 
Elimination of intersegment net revenue(69)(97)(93)(158)(417)(69)(97)(93)(158)(417)— — — — — 
Total HPE consolidated net revenue$6,961 $6,713 $6,951 $7,871 $28,496 $6,961 $6,713 $6,951 $7,871 $28,496 $— $— $— $— $— 
Earnings Before Taxes: (a)
Compute$487 $460 $460 $644 $2,051 $427 $426 $408 $560 $1,821 $60 $34 $52 $84 $230 
HPC & AI(22)(62)10 (19)(93)(7)(40)28 30 11 (15)(22)(18)(49)(104)
Storage— — — — — 157 127 161 196 641 (157)(127)(161)(196)(641)
Hybrid Cloud103 98 112 155 468 — — — — — 103 98 112 155 468 
Intelligent Edge153 106 156 127 542 157 109 155 128 549 (4)(3)1 (1)(7)
Financial Services99 102 97 89 387 104 104 96 95 399 (5)(2)1 (6)(12)
Corporate Investments and Other7 (2)(18)(13)(26)(11)(24)(31)(26)(92)18 22 13 13 66 
Total segment earnings from operations827 702 817 983 3,329 827 702 817 983 3,329 — — — — — 
Unallocated corporate costs and eliminations (59)(75)(88)(81)(303)(59)(75)(88)(81)(303)— — — — — 
Stock-based compensation expense(128)(114)(64)(85)(391)(128)(114)(64)(85)(391)— — — — — 
Amortization of initial direct costs(1)(1)(1)(1)(4)(1)(1)(1)(1)(4)— — — — — 
Amortization of intangible assets(73)(74)(73)(73)(293)(73)(74)(73)(73)(293)— — — — — 
Impairment of goodwill— — — (905)(905)— — — (905)(905)— — — — — 
Transformation costs(111)(98)(80)(184)(473)(111)(98)(80)(184)(473)— — — — — 
Disaster recoveries (charges)1 (125)(36)1 (159)1 (125)(36)1 (159)— — — — — 
Acquisition, disposition and other related charges
(8)(8)(9)6 (19)(8)(8)(9)6 (19)— — — — — 
Interest and other, net(5)— (74)(109)(188)(5)— (74)(109)(188)— — — — — 
Tax indemnification and other adjustments(17)— (30)(20)(67)(17)— (30)(20)(67)— — — — — 
Non-service net periodic benefit credit36 36 34 28 134 36 36 34 28 134 — — — — — 
Earnings from equity interests31 33 68 83 215 31 33 68 83 215 — — — — — 
Total HPE consolidated earnings (loss) before taxes$493 $276 $464 $(357)$876 $493 $276 $464 $(357)$876 $— $— $— $— $— 


HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES
FISCAL 2022 SEGMENT INFORMATION (Revised)
(Unaudited)
REVISED AMOUNTSAMOUNTS AS PREVIOUSLY REPORTEDVARIANCE
Three months endedTwelve months endedThree months endedTwelve months endedThree months endedTwelve months ended
Jan. 31, 2022Apr. 30, 2022July 31, 2022Oct. 31, 2022Oct. 31, 2022Jan. 31, 2022Apr. 30, 2022July 31, 2022Oct. 31, 2022Oct. 31, 2022Jan. 31, 2022Apr. 30, 2022July 31, 2022Oct. 31, 2022Oct. 31, 2022
Segment Operating Margin:(a)
Compute15.3 %15.1 %14.9 %16.7 %15.6 %14.0 %14.1 %13.5 %14.9 %14.2 %1.3 pts1.0 pts1.4 pts1.8 pts1.4 pts
HPC & AI(3.9)%(12.3)%1.6 %(3.0)%(4.0)%(0.9)%(5.6)%3.4 %3.5 %0.3 %(3.0 pts)(6.7 pts)(1.8 pts)(6.5 pts)(4.3 pts)
StorageN/AN/AN/AN/AN/A13.9 %11.8 %14.3 %15.4 %13.9 %N/AN/AN/AN/AN/A
Hybrid Cloud8.3 %7.8 %8.6 %10.7 %8.9 %N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A
Intelligent Edge16.1 %11.6 %15.9 %12.5 %14.1 %17.4 %12.6 %16.5 %13.3 %14.9 %(1.3 pts)(1.0 pts)(0.6 pts)(0.8 pts)(0.8 pts)
Financial Services11.8 %12.4 %11.9 %10.4 %11.6 %12.4 %12.6 %11.8 %11.1 %11.9 %(0.6 pts)(0.2 pts)0.1 pts(0.7 pts)(0.3 pts)
Corporate Investments and Other2.7 %(0.7)%(7.5)%(5.4)%(2.6)%(3.4)%(7.3)%(10.3)%(8.6)%(7.3)%6.1 pts6.6 pts2.8 pts3.2 pts4.7 pts
Total segment operating margin11.8 %10.3 %11.6 %12.2 %11.5 %11.8 %10.3 %11.6 %12.2 %11.5 %— pts— pts— pts— pts— pts






(a) Effective at the beginning of the first quarter of fiscal 2024, in order to align its segment financial reporting more closely with its current business structure, Hewlett Packard Enterprise Company ("HPE") implemented an organizational change with the (i) creation of a new Hybrid Cloud business segment (which consists of the previous Storage business segment, HPE GreenLake for Compute that provides flexible compute as-a-Service IT infrastructure on a consumption basis, private cloud product and service solutions, and the HPE Software business), (ii) transfer of certain products and services, previously reported in the High Performance Computing & Artificial Intelligence segment, to the Compute and Hybrid Cloud segments, and (iii) transfer of the recently acquired Athonet business and certain components of our Communications and Media Solutions business, previously reported in Corporate Investments and Other, to the Intelligent Edge segment.
HPE reflected these changes to its segment information retrospectively to the fiscal 2023 and 2022 financial results, which primarily resulted in the realignment of net revenue and operating profit for each of the segments as described above. These changes had no impact on Hewlett Packard Enterprise’s previously reported consolidated net revenue, net earnings, net earnings per share or total assets.