Segment Information (Tables)

6 Months Ended

Apr. 30, 2020

Segment Operating Results from Continuing Operations

Segment Operating Results

Segment net revenue and segment operating results were as follows:


	Compute		HPC & MCS		Storage		A & PS		Intelligent Edge		Financial Services		Corporate Investments		Total
	In millions
Three months ended April 30, 2020
Net revenue	$	2,534	$	564	$	1,060	$	236	$	661	$	830	$	124	$	6,009
Intersegment net revenue	106		25		26		1		4		3		—		165
Total segment net revenue	$	2,640	$	589	$	1,086	$	237	$	665	$	833	$	124	$	6,174
Segment earnings (loss) from operations	$	125	$	33	$	145	$	2	$	73	$	75	$	(28)	$	425
Three months ended April 30, 2019
Net revenue	$	3,193	$	696	$	1,303	$	258	$	681	$	894	$	125	$	7,150
Intersegment net revenue	125		25		15		2		4		2		—		173
Total segment net revenue	$	3,318	$	721	$	1,318	$	260	$	685	$	896	$	125	$	7,323
Segment earnings (loss) from operations	$	307	$	92	$	244	$	(14)	$	36	$	77	$	(29)	$	713
Six months ended April 30, 2020
Net revenue	$	5,497	$	1,380	$	2,295	$	478	$	1,376	$	1,687	$	245	$	12,958
Intersegment net revenue	154		32		41		2		9		5		—		243
Total segment net revenue	$	5,651	$	1,412	$	2,336	$	480	$	1,385	$	1,692	$	245	$	13,201
Segment earnings (loss) from operations	$	411	$	82	$	371	$	—	$	143	$	148	$	(55)	$	1,100
Six months ended April 30, 2019
Net revenue	$	6,702	$	1,424	$	2,640	$	497	$	1,387	$	1,810	$	243	$	14,703
Intersegment net revenue	191		76		34		4		3		5		—		313
Total segment net revenue	$	6,893	$	1,500	$	2,674	$	501	$	1,390	$	1,815	$	243	$	15,016
Segment earnings (loss) from operations	$	647	$	190	$	498	$	(46)	$	60	$	154	$	(57)	$	1,446

Reconciliation of Segment Operating Results

The reconciliation of segment operating results to Hewlett Packard Enterprise Condensed Consolidated Financial statements was as follows:


	Three Months Ended April 30,						Six Months Ended April 30,
	2020		2019		2020		2019
	In millions
Net Revenue:
Total segments	$	6,174	$	7,323	$	13,201	$	15,016
Eliminations of intersegment net revenue	(165)		(173)		(243)		(313)
Total Hewlett Packard Enterprise condensed consolidated net revenue	$	6,009	$	7,150	$	12,958	$	14,703
(Loss) earnings before taxes:
Total segment earnings from operations	$	425	$	713	$	1,100	$	1,446
Unallocated corporate costs and eliminations	(48)		(64)		(100)		(114)
Unallocated stock-based compensation expense	(12)		(15)		(33)		(29)
Amortization of initial direct costs	(3)		—		(6)		—
Amortization of intangible assets	(84)		(69)		(204)		(141)
Impairment of goodwill	(865)		—		(865)		—
Transformation costs	(200)		(54)		(289)		(132)
Disaster (charges) recovery	(22)		7		(22)		7
Acquisition, disposition and other related charges	(25)		(84)		(67)		(147)
Interest and other, net	(68)		(18)		(87)		(69)
Tax indemnification adjustments	(35)		4		(56)		223
Non-service net periodic benefit credit	36		17		73		33
(Loss) earnings from equity interests	(10)		3		23		18
Total Hewlett Packard Enterprise consolidated (loss) earnings before taxes	$	(911)	$	440	$	(533)	$	1,095

Schedule of Reconciliation of Assets from Segments to Consolidated

Total assets by segment and the reconciliation of segment assets to Hewlett Packard Enterprise consolidated total assets were as follows:


	As of
	April 30, 2020		October 31, 2019
	In millions
Compute⁽¹⁾	$	15,884	$	14,066
HPC & MCS⁽²⁾	6,006		6,819
Storage	7,137		7,214
A & PS	491		440
Intelligent Edge	3,537		3,318
Financial Services	14,702		14,700
Corporate Investments	505		461
Corporate and unallocated assets	6,253		4,785
Total Hewlett Packard Enterprise consolidated assets	$	54,515	$	51,803

(1) As of April 30, 2020, Compute segment asset increase was due primarily to a higher inventory and higher cash allocated from the issuance of Hewlett Packard Enterprise Senior Notes. For more information on Hewlett Packard Enterprise Senior Notes, see Note 12 “Borrowings”.

(2) HPC & MCS segment asset decrease was due primarily to a partial goodwill impairment charge recorded in the second quarter of fiscal 2020, as it was determined that the fair value of the HPC & MCS reporting unit was below the carrying value of its net assets. For more information on the impairment of goodwill, see Note 9 “Goodwill”.

Net Revenue by Geographic Areas

The Company’s net revenue by geographic region was as follows:


	Three Months Ended April 30,						Six Months Ended April 30,
	2020		2019		2020		2019
	In millions
Americas:
United States	$	1,906	$	2,184	$	4,224	$	4,685
Americas excluding U.S.	410		483		878		987
Total Americas	2,316		2,667		5,102		5,672
Europe, Middle East and Africa	2,198		2,727		4,758		5,637
Asia Pacific and Japan	1,495		1,756		3,098		3,394
Total Hewlett Packard Enterprise consolidated net revenue	$	6,009	$	7,150	$	12,958	$	14,703