10-Q

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:	July 31, 2021
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 number 001-37483

______________________________________________________________________________

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.)

11445 Compaq Center West Drive,	Houston,	Texas		77070
(Address of principal executive offices)				(Zip code)
(650)			687-5817
(Registrant's telephone number, including area code)

______________________________________________________________________________

Securities registered pursuant to Section 12(b) of the Exchange Act:
Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, par value $0.01 per share	HPE	New 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.

1

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller 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 August 30, 2021 was 1,308,050,014 shares, par value $0.01.

2

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Form 10-Q

For the Quarterly Period Ended July 31, 2021

Table of Contents

			Page
Forward-Looking Statements			4
Part I.	Financial Information
	Item 1.	Financial Statements (unaudited)	5
	Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	40
	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	61
	Item 4.	Controls and Procedures	61
Part II.	Other Information
	Item 1.	Legal Proceedings	62
	Item 1A.	Risk Factors	62
	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	62
	Item 5.	Other Information	62
	Item 6.	Exhibits	62
Exhibit Index			63
Signature			68

3

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", "optimistic", "intend", "aim", "will", "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 the scope and duration of the novel coronavirus pandemic ("COVID-19") and its impact on our business, operations, liquidity and capital resources, employees, customers, partners, supply chain, financial results and the world economy; any projections of revenue, margins, expenses, investments, effective tax rates, interest rates, the impact of the U.S. Tax Cuts and Jobs Act of 2017 and related guidance or 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; any projections of the amount, execution, timing and results of any transformation or impact of cost savings, restructuring plans, including estimates and assumptions related to the anticipated benefits, cost savings, or charges of implementing transformation and restructuring plans; any statements of the plans, strategies and objectives of management for future operations, as well as the execution of corporate transactions or contemplated acquisitions, 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 regarding current or future macroeconomic trends or events and the impact of those trends and events on Hewlett Packard Enterprise and its financial performance; any statements regarding pending investigations, claims or disputes; any statements of expectation or belief; 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; the need to manage third-party suppliers, the distribution of Hewlett Packard Enterprise's products and the delivery of Hewlett Packard Enterprise's services effectively; 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 pandemics and public health problems, such as the outbreak of COVID-19); 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; the execution and performance of contracts by Hewlett Packard Enterprise and its suppliers, customers, clients and partners, including any impact thereon resulting from events such as the COVID-19 pandemic; the hiring and retention of key employees; the execution, integration, and other risks associated with business combination and investment transactions; the impact of changes to 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; and other risks that are described herein, including but not limited to the items discussed in "Risk Factors" in Item 1A of Part II of this Quarterly Report on Form 10-Q and that are otherwise described or updated from time to time in Hewlett Packard Enterprise's reports filed 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

Part I. FINANCIAL INFORMATION

Item 1. Financial Statements

Index

	Page
Condensed Consolidated Statements of Earnings for the three and nine months ended July 31, 2021 and 2020 (Unaudited)	6
Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended July 31, 2021 and 2020 (Unaudited)	7
Condensed Consolidated Balance Sheets as of July 31, 2021 (Unaudited) and October 31, 2020 (Audited)	8
Condensed Consolidated Statements of Cash Flows for the nine months ended July 31, 2021 and 2020 (Unaudited)	9
Condensed Consolidated Statements of Stockholders' Equity for the three and nine months ended July 31, 2021 and 2020 (Unaudited)	10
Notes to Condensed Consolidated Financial Statements (Unaudited)	12
Note 1: Overview and Summary of Significant Accounting Policies	12
Note 2: Segment Information	15
Note 3: Transformation Programs	18
Note 4: Retirement Benefit Plans	20
Note 5: Taxes on Earnings	20
Note 6: Balance Sheet Details	21
Note 7: Accounting for Leases as a Lessor	23
Note 8: Goodwill	27
Note 9: Fair Value	28
Note 10: Financial Instruments	29
Note 11: Borrowings	34
Note 12: Stockholders' Equity	35
Note 13: Net Earnings (Loss) Per Share	35
Note 14: Litigation and Contingencies	36

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HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Condensed Consolidated Statements of Earnings

(Unaudited)

	Three Months Ended July 31,				Nine Months Ended July 31,
	2021		2020		2021		2020
	In millions, except per share amounts
Net revenue:
Products	$	4,230	$	4,193	$	12,365	$	11,760
Services	2,542		2,508		7,694		7,671
Financing income	125		115		371		343
Total net revenue	6,897		6,816		20,430		19,774
Costs and expenses:
Cost of products	2,908		3,088		8,567		8,376
Cost of services	1,556		1,596		4,742		4,926
Financing interest	51		65		164		209
Research and development	506		455		1,477		1,390
Selling, general and administrative	1,291		1,131		3,649		3,458
Amortization of intangible assets	82		95		276		299
Impairment of goodwill	—		—		—		865
Transformation costs	213		357		733		646
Disaster charges	5		2		6		24
Acquisition, disposition and other related charges	3		15		34		55
Total costs and expenses	6,615		6,804		19,648		20,248
Earnings (loss) from operations	282		12		782		(474)
Interest and other, net	(50)		(71)		(105)		(158)
Tax indemnification and related adjustments	76		(30)		60		(86)
Non-service net periodic benefit credit	19		28		53		101
Earnings from equity interests	79		27		109		50
Earnings (loss) before taxes	406		(34)		899		(567)
(Provision) benefit for taxes	(14)		43		(25)		88
Net earnings (loss)	$	392	$	9	$	874	$	(479)
Net earnings (loss) per share:
Basic	$	0.30	$	0.01	$	0.67	$	(0.37)
Diluted	$	0.29	$	0.01	$	0.66	$	(0.37)
Weighted-average shares used to compute net earnings (loss) per share:
Basic	1,314		1,292		1,308		1,294
Diluted	1,338		1,300		1,328		1,294

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

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HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Condensed Consolidated Statements of Comprehensive Income

(Unaudited)

	Three Months Ended July 31,				Nine Months Ended July 31,
	2021		2020		2021		2020
	In millions
Net earnings (loss)	$	392	$	9	$	874	$	(479)
Other comprehensive income (loss) before taxes:
Change in net unrealized gains (losses) on available-for-sale securities:
Net unrealized gains (losses) arising during the period	1		6		(1)		—
(Gains) losses reclassified into earnings	—		(1)		—		(8)
	1		5		(1)		(8)
Change in net unrealized gains (losses) on cash flow hedges:
Net unrealized gains (losses) arising during the period	101		(456)		(183)		(85)
Net (gains) losses reclassified into earnings	(36)		242		262		(41)
	65		(214)		79		(126)
Change in unrealized components of defined benefit plans:
Net unrealized gains (losses) arising during the period	6		(19)		29		(10)
Amortization of net actuarial loss and prior service benefit	70		61		212		183
Curtailments, settlements and other	—		7		2		8
	76		49		243		181
Change in cumulative translation adjustment	2		1		20		(46)
Other comprehensive income (loss) before taxes	144		(159)		341		1
(Provision) benefit for taxes	(13)		28		(33)		13
Other comprehensive income (loss), net of taxes	131		(131)		308		14
Comprehensive income (loss)	$	523	$	(122)	$	1,182	$	(465)

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

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HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

	As of
	July 31, 2021		October 31, 2020
	(Unaudited)		(Audited)
	In millions, except par value
ASSETS
Current assets:
Cash and cash equivalents	$	5,293	$	4,233
Accounts receivable, net of allowances	3,297		3,386
Financing receivables, net of allowances	3,814		3,794
Inventory	3,942		2,674
Assets held for sale	1		77
Other current assets	2,398		2,392
Total current assets	18,745		16,556
Property, plant and equipment	5,510		5,625
Long-term financing receivables and other assets	10,912		10,544
Investments in equity interests	2,286		2,170
Goodwill	18,092		18,017
Intangible assets	892		1,103
Total assets	$	56,437	$	54,015
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Notes payable and short-term borrowings	$	3,736	$	3,755
Accounts payable	6,526		5,383
Employee compensation and benefits	1,585		1,391
Taxes on earnings	152		148
Deferred revenue	3,434		3,430
Accrued restructuring	267		366
Other accrued liabilities	3,941		4,265
Total current liabilities	19,641		18,738
Long-term debt	12,489		12,186
Other non-current liabilities	7,234		6,995
Commitments and contingencies
Stockholders' equity
HPE stockholders' equity:
Preferred stock, $0.01 par value (300 shares authorized; none issued)	—		—
Common stock, $0.01 par value (9,600 shares authorized; 1,307 and 1,287 shares issued and outstanding at July 31, 2021 and October 31, 2020, respectively)	13		13
Additional paid-in capital	28,632		28,350
Accumulated deficit	(7,994)		(8,375)
Accumulated other comprehensive loss	(3,631)		(3,939)
Total HPE stockholders' equity	17,020		16,049
Non-controlling interests	53		47
Total stockholders' equity	17,073		16,096
Total liabilities and stockholders' equity	$	56,437	$	54,015

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

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HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows (Unaudited)

	Nine Months Ended July 31,
	2021		2020
	In millions
Cash flows from operating activities:
Net earnings (loss)	$	874	$	(479)
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities:
Depreciation and amortization	1,956		1,973
Impairment of goodwill	—		865
Stock-based compensation expense	304		215
Provision for inventory and doubtful accounts	149		208
Restructuring charges	492		553
Deferred taxes on earnings (loss)	(156)		(214)
Earnings from equity interests	(109)		(50)
Dividends received from equity investees	38		35
Other, net	117		115
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable	61		69
Financing receivables	26		(411)
Inventory	(1,352)		(1,253)
Accounts payable	1,150		431
Taxes on earnings	(6)		(85)
Restructuring	(426)		(350)
Other assets and liabilities	(203)		(129)
Net cash provided by operating activities	2,915		1,493
Cash flows from investing activities:
Investment in property, plant and equipment	(1,732)		(1,779)
Proceeds from sale of property, plant and equipment	274		623
Purchases of available-for-sale securities and other investments	(44)		(78)
Maturities and sales of available-for-sale securities and other investments	11		29
Financial collateral posted	(873)		(573)
Financial collateral received	780		637
Payments made in connection with business acquisitions, net of cash acquired	(133)		(13)
Net cash used in investing activities	(1,717)		(1,154)
Cash flows from financing activities:
Short-term borrowings with original maturities less than 90 days, net	(30)		36
Proceeds from debt, net of issuance costs	2,698		6,745
Payment of debt	(2,341)		(1,399)
Payments related to stock-based award activities, net	(18)		(34)
Repurchase of common stock	—		(355)
Cash dividends paid to non-controlling interests	(8)		(7)
Cash dividends paid to shareholders	(468)		(464)
Net cash (used in) provided by financing activities	(167)		4,522
Increase in cash, cash equivalents and restricted cash	1,031		4,861
Cash, cash equivalents and restricted cash at beginning of period	4,621		4,076
Cash, cash equivalents and restricted cash at end of period	$	5,652	$	8,937

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

9

Condensed Consolidated Statements of Stockholders' Equity (Unaudited)

	Common Stock
Three Months Ended July 31, 2021	Number of Shares	Par Value		Additional 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 at April 30, 2021	1,304,138	$	13	$	28,538	$	(8,229)	$	(3,762)	$	16,560	$	51	$	16,611
Net earnings						392				392		2		394
Other comprehensive income								131		131				131
Comprehensive income										523		2		525
Stock-based compensation expense				86						86				86
Tax withholding related to vesting of employee stock plans				(11)						(11)				(11)
Issuance of common stock in connection with employee stock plans and other	2,925			19						19				19
Cash dividends declared ($0.12 per share)						(157)				(157)				(157)
Balance at July 31, 2021	1,307,063	$	13	$	28,632	$	(7,994)	$	(3,631)	$	17,020	$	53	$	17,073

) Represents the impact of the adoption of the accounting standard on the measurement of credit losses on financial instruments.

	Common Stock
Nine Months Ended July 31, 2021	Number of Shares	Par Value		Additional 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 at October 31, 2020	1,287,010	$	13	$	28,350	$	(8,375)	$	(3,939)	$	16,049	$	47	$	16,096
Net earnings						874				874		6		880
Other comprehensive income								308		308				308
Comprehensive income										1,182		6		1,188
Stock-based compensation expense				304						304				304
Tax withholding related to vesting of employee stock plans				(72)						(72)				(72)
Issuance of common stock in connection with employee stock plans and other	20,053			50						50				50
Cash dividends declared ($0.36 per share)						(468)				(468)				(468)
Effects of adoption of accounting standard updates (1)						(25)				(25)				(25)
Balance at July 31, 2021	1,307,063	$	13	$	28,632	$	(7,994)	$	(3,631)	$	17,020	$	53	$	17,073

(1) Represents the impact of the adoption of the accounting standard on the measurement of credit losses on financial assets.

10

Condensed Consolidated Statements of Stockholders' Equity (Unaudited)

	Common Stock
Three Months Ended July 31, 2020	Number of Shares	Par Value		Additional 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 at April 30, 2020	1,282,253	$	13	$	28,207	$	(8,385)	$	(3,625)	$	16,210	$	48	$	16,258
Net earnings						9				9		3		12
Other comprehensive loss								(131)		(131)				(131)
Comprehensive income (loss)										(122)		3		(119)
Stock-based compensation expense				55						55				55
Tax withholding related to vesting of employee stock plans				(7)						(7)				(7)
Issuance of common stock in connection with employee stock plans and other	3,753			20		(1)				19				19
Balance at July 31, 2020	1,286,006	$	13	$	28,275	$	(8,377)	$	(3,756)	$	16,155	$	51	$	16,206

	Common Stock
Nine Months Ended July 31, 2020	Number of Shares	Par Value		Additional 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 at October 31, 2019	1,294,369	$	13	$	28,444	$	(7,632)	$	(3,727)	$	17,098	$	51	$	17,149
Net loss						(479)				(479)		7		(472)
Other comprehensive income								14		14				14
Comprehensive income (loss)										(465)		7		(458)
Stock-based compensation expense				216						216				216
Tax withholding related to vesting of employee stock plans				(85)						(85)				(85)
Issuance of common stock in connection with employee stock plans and other	16,393			46						46		1		47
Repurchases of common stock	(24,756)			(346)						(346)				(346)
Cash dividends declared ($0.24 per share)						(309)				(309)		(8)		(317)
Effects of adoption of accounting standard updates (1)						43		(43)		—				—
Balance at July 31, 2020	1,286,006	$	13	$	28,275	$	(8,377)	$	(3,756)	$	16,155	$	51	$	16,206

(1) Represents the impact of the adoption of an accounting standard update that allows for the reclassification of stranded tax effects from accumulated other comprehensive loss to

accumulated deficit.

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

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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 ("SMBs") to large global enterprises and governmental entities.

On November 1, 2015, the Company became an independent publicly-traded company through a pro rata distribution by HP Inc. ("former Parent" or "HPI"), formerly known as Hewlett-Packard Company ("HP Co."), of 100% of the outstanding shares of Hewlett Packard Enterprise Company to HP Inc.'s stockholders (the "Separation").

Acquisitions

On July 1, 2021, the Company entered into a definitive agreement to acquire Zerto Ltd., an industry leader in cloud data management and protection, in a transaction valued at $374 million. The transaction closed on August 31, 2021. Zerto's results of operations will be included within the Company's Storage segment. This acquisition expands HPE GreenLake and continues to deliver on Storage’s shift to a cloud-native, software-defined data services business.

During the third quarter of fiscal 2021, the Company completed the acquisitions of Determined AI Inc., a leading player in the evolving machine learning software ecosystem and Ampool Inc., an innovative developer of a data platform designed to deliver a cloud-native, high performance Structured Query Language (“SQL”) analytics engine, for a purchase consideration of $117 million, which has primarily been allocated to goodwill of $86 million and amortizable intangible assets of $24 million. Determined AI’s results of operations have been included with High Performance Computing & Mission-Critical Solutions (HPC & MCS) segment. HPE will combine Determined AI’s unique software solution with its world-leading artificial intelligence and high performance computing offerings to enable machine learning engineers to easily implement and train machine learning models to provide faster and more accurate insights from their data in almost every industry. Ampool's results of operations have been included in the HPE Ezmeral software organization within Corporate Investments and Other segment and will play a pivotal role in accelerating hybrid analytics for customers.

Subsequent event

On September 7, 2021, the Company expects to redeem all $500 million aggregate principal amount of its outstanding 3.5% Notes due October 2021, and all $800 million aggregate principal amount of its outstanding Floating Rate Notes due October 2021.

Basis of Presentation

The Condensed Consolidated Financial Statements of the Company were prepared in accordance with United States ("U.S.") Generally Accepted Accounting Principles ("GAAP"). 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 July 31, 2021 and October 31, 2020, its results of operations for the three and nine months ended July 31, 2021 and 2020, its cash flows for the nine months ended July 31, 2021 and 2020, and its statements of stockholders' equity for the three and nine months ended July 31, 2021 and 2020.

The results of operations for the three and nine months ended July 31, 2021 and the cash flows for the nine months ended July 31, 2021 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, 2020, including "Management's Discussion and Analysis of Financial Condition and Results of Operations", "Quantitative and Qualitative Disclosures About Market Risk" and the Consolidated Financial Statements and notes thereto included in Items 7, 7A and 8, respectively.

12

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

Principles of Consolidation

The accompanying 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.

The Company consolidates a Variable Interest Entity (“VIE”) where it has been determined that the Company is the primary beneficiary of the entity’s operation. In evaluating whether the Company is the primary beneficiary, the Company evaluates its power to direct the most significant activities of the VIE by considering the purpose and design of the entity and the risks the entity was designed to create and pass through to its variable interest holders. The Company also evaluates its economic interests in the VIE.

The Company accounts for investments in companies over which it has the ability to exercise significant influence but does not hold a controlling interest under the equity method of accounting, and the Company records its proportionate share of income or losses in Earnings from equity interests in the Condensed Consolidated Statements of Earnings.

Non-controlling interests are presented as a separate component within Total stockholders' equity in the Condensed Consolidated Balance Sheets. Net earnings attributable to non-controlling interests are recorded within Interest and other, net in the Condensed Consolidated Statements of Earnings and are not presented separately, as they were not material for any periods presented.

Segment Realignment and Reclassifications

Effective at the beginning of the first quarter of fiscal 2021, HPE implemented certain organizational changes to align its segment financial reporting more closely with its current business structure. These organizational changes are:

(i) the transfer of the lifecycle event services business, previously reported within the Advisory and Professional Services ("A & PS") reportable segment to Compute, Storage and HPC & MCS reportable segments; (ii) the transfer of certain software and related services business, previously reported within the Compute, Storage and A & PS reportable segments to the Corporate Investments and Other reportable segment, to form a new Software operating segment; and (iii) the transfer of the remaining A & PS operating segment, previously reported as a separate reportable segment, to the Corporate Investments and Other reportable segment. As a result of these changes, the Corporate Investments and Other Segment now includes the A & PS operating segment, the Communications and Media Solutions operating segment, the Software operating segment, and Hewlett Packard Enterprise Labs which is responsible for research and development.

Additionally, effective at the beginning of the first quarter of fiscal 2021, the Company has excluded stock-based compensation expense from its segment earnings from operations.

The Company reflected these changes to its segment information retrospectively to the earliest period presented, which primarily resulted in the realignment of net revenue, operating profit and total assets 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

Except for the change in certain accounting policies upon adoption of the accounting standards described below, there have been no significant 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, 2020.

Recently Adopted Accounting Pronouncements

In January 2021, the FASB issued guidance to clarify that all derivative instruments affected by changes to the interest rates used for discounting, margining or contract price alignment can apply certain optional expedients and exceptions mentioned in its reference rate reform guidance even though they do not reference to LIBOR or a rate being discontinued. This guidance was effective upon issuance. The Company adopted the guidance in the first quarter of fiscal 2021 and there was no impact on its Condensed Consolidated Financial Statements upon adoption.

In December 2019, the FASB amended the existing accounting standards for income taxes. The amendments clarify and simplify the accounting for income taxes by eliminating certain exceptions to the general principles. The Company adopted the

13

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

guidance in the first quarter of fiscal 2021 and there was no material impact on its Condensed Consolidated Financial Statements.

In August 2018, the FASB issued guidance on a customer's accounting for implementation costs incurred in cloud-computing arrangements that are hosted by a vendor. Certain types of implementation costs should be capitalized and amortized over the term of the hosting arrangement. The Company adopted the guidance in the first quarter of fiscal 2021 and there was no material impact on its Condensed Consolidated Financial Statements.

In August 2018, the FASB issued guidance which changes the disclosure requirements for fair value measurements and defined benefit pension plans. The Company adopted the guidance in the first quarter of fiscal 2021 and there was no impact on its Condensed Consolidated Financial Statements. However, the Company expects to have additional disclosures relating to retirement and post-retirement benefit plans in its Annual Report on Form 10-K for the fiscal year ended October 31, 2021.

In June 2016, the FASB amended the existing accounting standards for the measurement of credit losses with additional amendments in 2018, 2019 and 2020. These amendments primarily require the measurement and recognition of current expected credit losses for financial assets held at amortized cost. The amended accounting standard replaces the existing incurred loss impairment model with an expected loss model, which requires the use of forward-looking information to calculate credit loss estimates. It also eliminates the concept of other-than-temporary impairment and requires credit losses related to available-for-sale debt securities to be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. These changes will result in earlier recognition of credit losses. The Company adopted the Current Expected Credit Losses standard (the “CECL standard”) as of November 1, 2020 using the modified retrospective method, with the cumulative-effect adjustment recorded to the opening balance of Accumulated deficit within stockholders’ equity in the Condensed Consolidated Balance Sheets. The cumulative effect of adopting the CECL standard resulted in an increase of $28 million to the allowance for expected credit losses within financing receivables, and a corresponding increase of $25 million, net of $3 million of deferred taxes to Accumulated deficit as of November 1, 2020.

The allowance for expected credit losses related to accounts receivables is comprised of a general reserve and a specific reserve. The Company may record a specific reserve for individual accounts when the Company becomes aware of specific customer circumstances, such as in the case of a bankruptcy filing or deterioration in the customer's operating results or financial position. If there are additional changes in circumstances related to the specific customer, the Company further adjusts estimates of the recoverability of receivables. The Company maintains an allowance for credit losses for all other customers based on a variety of factors, including the use of third-party credit risk models that generate quantitative measures of default probabilities based on market factors, the financial condition of customers and the length of time receivables are past due. These qualitative factors are subjective and require a degree of management judgement. The past due or delinquency status of a receivable is based on the contractual payment terms of the receivable. The Company establishes an allowance for expected credit losses related to accounts receivable, including unbilled receivables.

The allowance for expected credit losses related to financing receivables is comprised of a general reserve and a specific reserve. The Company establishes a specific reserve for financing receivables with identified exposures, such as customer defaults, bankruptcy or other events, that make it unlikely the Company will recover its investment. For individually evaluated receivables, the Company determines the expected cash flow for the receivable, which includes consideration of estimated proceeds from disposition of the collateral and calculates an estimate of the potential loss and the probability of loss. For those accounts where a loss is considered probable, the Company records a specific reserve. The Company maintains a general reserve using a credit loss model on a regional basis and bases such percentages on several factors, including consideration of historical credit losses and portfolio delinquencies, trends in the overall weighted-average risk rating of the portfolio, current economic conditions, and forward-looking information, including reasonable and supportable forecasts. The Company believes the economic forecasts employed represent reasonable and supportable forecasts, followed by a reversion to long term trends. The Company excludes accounts evaluated as part of the specific reserve from the general reserve analysis. The Company generally writes off a receivable or records a specific reserve when a receivable becomes 180 days past due, or sooner if the Company determines that the receivable is not collectible.

The Company’s debt securities are generally considered available-for-sale and are reported at fair value with unrealized gains and losses, net of applicable taxes, recorded in Accumulated other comprehensive loss in the Condensed Consolidated Balance Sheets. Realized gains and losses for available-for-sale securities are calculated based on the specific identification method and included in Interest and other, net in the Condensed Consolidated Statements of Earnings. The Company monitors its investment portfolio for potential impairment on a quarterly basis. When the carrying amount of an investment in debt securities exceeds its fair value and the decline in value is determined to be due to credit-related factors, the Company recognizes the impairment by way of an allowance for credit loss in Interest and other, net in the Condensed Consolidated

14

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

Statement of Earnings while the impairment that is not credit related is recorded in Accumulated other comprehensive loss in the Condensed Consolidated Balance Sheets.

Recently Enacted Accounting Pronouncements

In January 2020, the FASB issued guidance to clarify certain interactions between the guidance to account for equity securities, the guidance to account for investments under the equity method of accounting, and the guidance to account for derivatives and hedging. The new guidance clarifies the application of measurement alternatives and the accounting for certain forward contracts and purchased options to acquire investments. The Company is required to adopt the guidance in the first quarter of fiscal 2022, though early adoption is permitted. The Company does not expect the impact on adoption of these amendments on its Consolidated Financial Statements to be material.

Note 2: Segment Information

As described in Note 1, "Overview and Summary of Significant Accounting Policies", effective at the beginning of the first quarter of fiscal 2021, the Company implemented certain organizational changes to align its segment financial reporting more closely with its current business structure. Hewlett Packard Enterprise's operations are now organized into six reportable segments for financial reporting purposes: Compute, HPC & MCS, Storage, 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 ("CEO"), uses to evaluate, view and run the Company's business operations, which include, but are not limited to, customer base and homogeneity of products and technology. The six segments are based on this organizational structure and information reviewed by Hewlett Packard Enterprise's management to evaluate segment results. A summary description of each segment follows.

Compute portfolio offers both general purpose servers for multi-workload computing and workload optimized servers to

offer the best performance and value for demanding applications. This portfolio of products includes the HPE Proliant rack and

tower servers; HPE BladeSystem, and HPE Synergy. Compute offerings also include related operational and support services.

High Performance Computing & Mission-Critical Solutions portfolio offers specialized compute servers designed to support specific workloads. The HPC portfolio of products includes the HPE Apollo and Cray high performance computing products that are often sold as supercomputing systems, including exascale supercomputers. The MCS portfolio includes the HPE Superdome Flex, HPE Nonstop and HPE Integrity product lines. The HPC & MCS segment also includes the Converged Edge Systems business which consists of the HPE Moonshot and HPE Edgeline products. HPC & MCS offerings also include related operational and support services

Storage portfolio offers workload optimized storage product and service offerings which include an intelligent hyperconverged infrastructure ("HCI") with HPE Nimble Storage dHCI and HPE SimpliVity. The portfolio also includes HPE Primera, HPE Nimble Storage, HPE Alletra and HPE 3PAR Storage for mission-critical and general-purpose workloads, HPE Recovery Manager Central, HPE StoreOnce, HPE Cloud Volumes Backup and Big Data solutions. Storage also provides solutions for secondary workloads and traditional tape, storage networking and disk products, such as HPE Modular Storage Arrays ("MSA") and HPE XP. Storage offerings also include related operational and support services.

Intelligent Edge portfolio offers wired and wireless local area network ("LAN"), campus and data center switching, software-defined wide-area-networking, security, and associated services to enable secure connectivity for businesses of any size. The Intelligent Edge product portfolio includes products such as Wi-Fi access points, switches, routers, and sensors. The Intelligent Edge software and services portfolio includes software products for cloud-based management, network management, network access control, analytics and assurance, location services software and professional and support services, as well as as-a Service ("aaS") and consumption models for the Intelligent Edge portfolio of products.

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.

Corporate Investments and Other includes the Communications and Media Solutions business ("CMS") which primarily offers software and related services to the telecommunications industry; the Software business which offers HPE Ezmeral Container Platform and HPE Ezmeral Data Fabric, and incubates other software related technology innovation; the 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; and the Hewlett Packard Labs which is responsible for research and development.

15

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

Segment Policy

There have been no changes to the Company's segment accounting policies disclosed in the Company's Annual Report on Form 10-K for the fiscal year ended October 31, 2020, except for the organizational changes and the change in allocation of stock based compensation expense described in Note 1, "Overview and Summary of Significant Accounting Policies".

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 initial direct costs, amortization of intangible assets, impairment of goodwill, transformation costs, disaster charges, acquisition, disposition and other related charges.

Segment Operating Results

Segment net revenue and operating results were as follows:

	Compute		HPC & MCS		Storage		Intelligent Edge		Financial Services		Corporate Investments and Other		Total
	In millions
Three months ended July 31, 2021
Net revenue	$	3,033	$	671	$	1,154	$	865	$	842	$	332	$	6,897
Intersegment net revenue	71		70		22		2		2		—		167
Total segment net revenue	$	3,104	$	741	$	1,176	$	867	$	844	$	332	$	7,064
Segment earnings (loss) from operations	$	347	$	29	$	178	$	137	$	94	$	(28)	$	757
Three months ended July 31, 2020
Net revenue	$	3,265	$	650	$	1,109	$	682	$	807	$	303	$	6,816
Intersegment net revenue	144		17		23		2		4		—		190
Total segment net revenue	$	3,409	$	667	$	1,132	$	684	$	811	$	303	$	7,006
Segment earnings (loss) from operations	$	318	$	47	$	170	$	71	$	66	$	(68)	$	604
Nine months ended July 31, 2021
Net revenue	$	8,889	$	2,081	$	3,456	$	2,465	$	2,536	$	1,003	$	20,430
Intersegment net revenue	177		107		50		7		7		—		348
Total segment net revenue	$	9,066	$	2,188	$	3,506	$	2,472	$	2,543	$	1,003	$	20,778
Segment earnings (loss) from operations	$	1,024	$	91	$	604	$	413	$	269	$	(84)	$	2,317
Nine months ended July 31, 2020
Net revenue	$	8,796	$	2,063	$	3,406	$	2,058	$	2,494	$	957	$	19,774
Intersegment net revenue	298		50		64		11		9		1		433
Total segment net revenue	$	9,094	$	2,113	$	3,470	$	2,069	$	2,503	$	958	$	20,207
Segment earnings (loss) from operations	$	797	$	156	$	592	$	240	$	218	$	(172)	$	1,831

16

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

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

	Three Months Ended July 31,				Nine Months Ended July 31,
	2021		2020		2021		2020
	In millions
Net Revenue:
Total segments	$	7,064	$	7,006	$	20,778	$	20,207
Eliminations of intersegment net revenue	(167)		(190)		(348)		(433)
Total Hewlett Packard Enterprise consolidated net revenue	$	6,897	$	6,816	$	20,430	$	19,774
Earnings before taxes:
Total segment earnings from operations	$	757	$	604	$	2,317	$	1,831
Unallocated corporate costs and eliminations	(84)		(65)		(186)		(165)
Stock-based compensation expense	(86)		(55)		(294)		(215)
Amortization of initial direct costs	(2)		(3)		(6)		(9)
Amortization of intangible assets	(82)		(95)		(276)		(299)
Transformation costs	(213)		(357)		(733)		(646)
Disaster charges	(5)		(2)		(6)		(24)
Acquisition, disposition and other related charges	(3)		(15)		(34)		(82)
Impairment of goodwill	—		—		—		(865)
Interest and other, net	(50)		(71)		(105)		(158)
Tax indemnification and related adjustments	76		(30)		60		(86)
Non-service net periodic benefit credit	19		28		53		101
Earnings from equity interests	79		27		109		50
Total Hewlett Packard Enterprise consolidated earnings (loss) before taxes	$	406	$	(34)	$	899	$	(567)

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

	As of
	July 31, 2021		October 31, 2020
	In millions
Compute	$	16,339	$	14,962
HPC & MCS	6,502		6,245
Storage	6,674		6,438
Intelligent Edge	4,473		4,352
Financial Services	14,651		14,765
Corporate Investments and Other	1,244		1,124
Corporate and unallocated assets	6,554		6,129
Total Hewlett Packard Enterprise consolidated total assets	$	56,437	$	54,015

17

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

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

	Three Months Ended July 31,				Nine Months Ended July 31,
	2021		2020		2021		2020
	In millions
Americas:
United States	$	2,237	$	2,362	$	6,433	$	6,586
Americas excluding U.S.	461		395		1,357		1,273
Total Americas	$	2,698	$	2,757	$	7,790	$	7,859
Europe, Middle East and Africa	2,510		2,448		7,684		7,206
Asia Pacific and Japan	1,689		1,611		4,956		4,709
Total Hewlett Packard Enterprise consolidated net revenue	$	6,897	$	6,816	$	20,430	$	19,774

Note 3: Transformation Programs

Transformation programs are comprised of the cost optimization and prioritization plan, and the HPE Next initiative.

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, including a new hybrid workforce model called Edge-to-Office, real estate strategies and simplifying and evolving our product portfolio strategy. The changes to the workforce will vary by country, based on business needs, local legal requirements and consultations with employee works councils and other employee representatives, as appropriate. The implementation period of the cost optimization and prioritization plan is through fiscal 2023. During this time the Company expects to incur transformation costs predominantly related to labor restructuring, non-labor restructuring, IT investments, design and execution charges and real estate initiatives.

During the third quarter of fiscal 2017, the Company launched an initiative called HPE Next to put in place a purpose-built company designed to compete and win in the markets where it participates. Through this program, the Company is simplifying the operating model, and streamlining our offerings, business processes and business systems to improve our execution. The implementation period of the HPE Next initiative is through fiscal 2023. As of October 31, 2020, the headcount exits under HPE Next Plan are complete. During the remaining implementation period, the Company expects to incur transformation costs predominantly related to IT infrastructure costs for streamlining, upgrading and simplifying back-end operations, and real estate initiatives. These costs are expected to be partially offset by gains from real estate sales.

Transformation Costs

During the three and nine months ended July 31, 2021, the Company incurred $147 million and $552 million, respectively, of charges related to the cost optimization and prioritization plan of which $146 million and $549 million were recorded within Transformation costs, and $1 million and $3 million, respectively, was recorded within Non-service net periodic benefit credit in the Condensed Consolidated Statements of Earnings. During the three and nine months ended July 31, 2020, the Company incurred $238 million of charges related to the cost optimization and prioritization plan which was recorded within Transformation costs in the Condensed Consolidated Statements of Earnings, the components of which were as follows:

	Three months ended July 31,				Nine months ended July 31,
	2021		2020		2021		2020
	In millions
Program management	$	17	$	14	$	72	$	14
IT Costs	6		4		9		4
Restructuring charges	124		220		471		220
Total	$	147	$	238	$	552	$	238

18

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

During the three and nine months ended July 31, 2021, the Company incurred $67 million and $184 million, respectively, and during the three and nine months ended July 31, 2020, the Company incurred $119 million and $408 million, respectively, of net charges associated with HPE Next which were recorded within Transformation costs in the Condensed Consolidated Statements of Earnings. The components of Transformation costs relating to HPE Next were as follows:

	Three months ended July 31,				Nine months ended July 31,
	2021		2020		2021		2020
	In millions
Program management	$	5	$	10	$	10	$	28
IT costs	54		25		126		71
Restructuring charges	2		84		21		332
Gain on real estate sales	—		(7)		(3)		(44)
Impairment on real estate assets	—		—		4		—
Other	6		7		26		21
Total	$	67	$	119	$	184	$	408

Restructuring Plan

Restructuring activities related to the Company's employees and infrastructure under the cost optimization and prioritization plan and HPE Next Plan, were presented in the table below:

	Cost Optimization and Prioritization Plan				HPE Next Plan
	Employee Severance		Infrastructure and other		Employee Severance		Infrastructure and other
	In millions
Liability as of October 31, 2020	$	210	$	68	$	144	$	52
Charges	199		272		—		21
Cash payments	(214)		(86)		(94)		(29)
Non-cash items	1		(68)		3		(4)
Liability as of July 31, 2021	$	196	$	186	$	53	$	40
Total costs incurred to date, as of July 31, 2021	$	429	$	371	$	1,261	$	246
Total expected costs to be incurred as of July 31, 2021	$	700	$	610	$	1,261	$	248

The current restructuring liability related to the transformation programs, reported in Condensed Consolidated Balance Sheets as of July 31, 2021 and October 31, 2020, was $263 million and $359 million, respectively, in accrued restructuring, and $29 million and $24 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 July 31, 2021 and October 31, 2020, was $183 million and $91 million, respectively.

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HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

Note 4: Retirement Benefit Plans

The Company's net pension benefit (credit) cost for defined benefit plans recognized in the Condensed Consolidated Statements of Earnings was as follows:

	Three months ended July 31,				Nine months ended July 31,
	2021		2020		2021		2020
	In millions
Service cost	$	24	$	23	$	73	$	69
Interest cost(1)	30		35		89		106
Expected return on plan assets(1)	(121)		(133)		(360)		(402)
Amortization and deferrals(1):
Actuarial loss	74		65		223		194
Prior service benefit	(3)		(3)		(10)		(10)
Net periodic benefit (credit) cost	4		(13)		15		(43)
Settlement loss(1)	—		7		1		8
Special termination benefits(1)	1		—		3		1
Total net benefit (credit) cost	$	5	$	(6)	$	19	$	(34)

(1)These non-service components of net periodic benefit cost were included in Non-service net periodic benefit credit in the Condensed Consolidated Statements of Earnings.

Note 5: Taxes on Earnings

Provision for Taxes

For the three and nine months ended July 31, 2021, the Company recorded income tax expense of $14 million and $25 million, respectively, which reflect an effective tax rate of 3.4% and 2.8%, respectively. For the three and nine months ended July 31, 2020, the Company recorded income tax benefit of $43 million and $88 million, respectively, which reflect an effective tax rate of 126.5% and 15.5%, 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. The effective tax rate for the nine months ended July 31, 2020 also included the effects of the non-deductible goodwill impairment.

For the three and nine months ended July 31, 2021, the Company recorded $99 million and $222 million of net income tax benefits, respectively, related to various items discrete to the period. For the three months ended July 31, 2021, this amount primarily included $88 million of deferred income tax benefits related to tax law changes and $31 million of income tax benefits related to transformation costs, and acquisition, disposition and other related charges, partially offset by income tax charges related to the recovery of two social contribution taxes in Brazil ("PIS" and "COFINS") of $5 million and $23 million, respectively. For the nine months ended July 31, 2021, this amount primarily included $138 million of income tax benefits related to transformation costs, and acquisition, disposition and other related charges, $88 million of deferred income tax benefits related to tax law changes, and $30 million of income tax benefits related to the change in pre-Separation tax liabilities, primarily those for which we share joint and several liability with HP Inc. and for which we are indemnified by HP Inc., partially offset by income tax charges related to the recovery of PIS and COFINS of $5 million and $23 million, respectively.

For the three and nine months ended July 31, 2020, the Company recorded $86 million and $253 million of net income tax benefits, respectively, related to various items discrete to the period. For the three months ended July 31, 2020, the amount primarily included $72 million of income tax benefits related to transformation costs, and acquisition, disposition and other related charges and $30 million of income tax benefits related to tax rate changes on deferred taxes. For the nine months ended July 31, 2020, the amount primarily included $120 million of income tax benefits related to transformation costs, and acquisition, disposition and other related charges, $57 million of income tax benefits related to Indian distribution tax rate changes, $56 million of income tax benefits related to the change in pre-Separation tax liabilities for which the Company shares joint and several liability with HP Inc. and for which the Company is indemnified by HP Inc., and $30 million of income tax benefits related to tax rate changes on deferred taxes.

20

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

Uncertain Tax Positions

As of July 31, 2021 and October 31, 2020, the amount of unrecognized tax benefits was $2.1 billion and $2.2 billion, respectively, of which up to $709 million and $731 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) benefit for taxes in the Condensed Consolidated Statements of Earnings. As of July 31, 2021 and October 31, 2020, the Company had accrued $127 million and $119 million, respectively, for interest and penalties in the Condensed Consolidated Balance Sheets.

The Company engages in continuous discussions and negotiations with tax authorities regarding tax matters in various jurisdictions. The Company does not expect complete resolution of any U.S. Internal Revenue Service ("IRS") audit cycle within the next 12 months. However, it is reasonably possible that certain federal, foreign and state tax issues may be concluded in the next 12 months, including issues involving resolution of certain intercompany transactions, joint and several tax liabilities and other matters. Accordingly, the Company believes it is reasonably possible that its existing unrecognized tax benefits may be reduced by an amount up to $75 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
	July 31, 2021		October 31, 2020
	In millions
Deferred tax assets	$	2,025	$	1,778
Deferred tax liabilities	(384)		(290)
Deferred tax assets net of deferred tax liabilities	$	1,641	$	1,488

Note 6: Balance Sheet Details

Balance sheet details were as follows:

Cash, cash equivalents and restricted cash

	As of
	July 31, 2021		October 31, 2020
	In millions
Cash and cash equivalents	$	5,293	$	4,233
Restricted cash(1)	359		388
Total	$	5,652	$	4,621

(1) Restricted cash is included within Other current assets in the accompanying Condensed Consolidated Balance Sheets and is primarily related to cash received under the Company's collateral securities agreements for its derivative instruments and cash restricted under the fixed-term securitization program for the issuance of asset-backed debt securities.

Inventory

	As of
	July 31, 2021		October 31, 2020
	In millions
Finished goods	$	1,373	$	1,197
Purchased parts and fabricated assemblies	2,569		1,477
Total	$	3,942	$	2,674

21

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

Property, Plant and Equipment

	As of
	July 31, 2021		October 31, 2020
	In millions
Land	$	75	$	89
Buildings and leasehold improvements	1,697		1,886
Machinery and equipment, including equipment held for lease	9,855		9,624
	11,627		11,599
Accumulated depreciation	(6,117)		(5,974)
Total	$	5,510	$	5,625

Warranties

The Company's aggregate product warranty liability as of July 31, 2021, and changes were as follows:

	Nine Months Ended July 31, 2021
	In millions
Balance at beginning of period	$	385
Charges	159
Adjustments related to pre-existing warranties	(27)
Settlements made	(180)
Balance at end of period	$	337

Contract balances

The Company’s contract balances consist of contract assets, contract liabilities, and costs to obtain a contract with a customer.

Contract Assets

A summary of accounts receivable, net, including unbilled receivables was as follows:

	As of
	July 31, 2021		October 31, 2020
	In millions
Accounts receivable, net
Accounts receivable	$	3,125	$	3,227
Unbilled receivables	214		205
Allowances	(42)		(46)
Total	$	3,297	$	3,386

The allowances for credit losses related to accounts receivable and changes therein were as follows:

	As of
	July 31, 2021		October 31, 2020
	In millions
Balance at beginning of the period	$	46	$	31
Provision for credit losses	8		29
Write off's, net of recoveries	(12)		(14)
Balance at end of the period	$	42	$	46

22

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

Sale of Trade Receivables

The Company has third-party revolving short-term financing arrangements intended to facilitate the working capital requirements of certain customers. During the three and nine months ended July 31, 2021, the Company sold $1 billion and $3.1 billion of trade receivables, respectively. During the fiscal year ended October 31, 2020, the Company sold $3.9 billion of trade receivables. The Company recorded an obligation of $66 million and $75 million in Notes payable and short-term borrowings in its Condensed Consolidated Balance Sheets as of July 31, 2021 and October 31, 2020 respectively, related to the trade receivables sold and collected from the third-party for which the revenue recognition was deferred.

Contract Liabilities

Contract liabilities consist of deferred revenue. The aggregate balance of current and non-current deferred revenue was $6.4 billion and $6.2 billion as of July 31, 2021 and October 31, 2020, respectively. During the nine months ended July 31, 2021, approximately $2.7 billion of the deferred revenue as of October 31, 2020 was recognized as revenue.

Remaining Performance Obligations

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.

Remaining performance obligations consist of deferred revenue. As of July 31, 2021, the aggregate amount of remaining performance obligations was $6.4 billion. The Company expects to recognize approximately 21% of this amount as revenue over the remainder of the fiscal year.

Costs to Obtain a Contract

As of July 31, 2021, the current and non-current portions of the capitalized costs to obtain a contract were $60 million and $86 million, respectively. As of October 31, 2020, the current and non-current portions of the capitalized costs to obtain a contract were $54 million and $76 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 Sheet. For the three and nine months ended July 31, 2021, the Company amortized $16 million and $48 million respectively, of capitalized costs to obtain a contract. For the three and nine months ended July 31, 2020, the Company amortized $15 million and $43 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 Statement of Earnings.

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
	July 31, 2021		October 31, 2020
	In millions
Minimum lease payments receivable	$	9,346	$	9,448
Unguaranteed residual value	386		364
Unearned income	(725)		(754)
Financing receivables, gross	9,007		9,058
Allowance for credit losses	(234)		(154)
Financing receivables, net	8,773		8,904
Less: current portion	(3,814)		(3,794)
Amounts due after one year, net	$	4,959	$	5,110

23

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

As of July 31, 2021 and October 31, 2020, scheduled maturities of the Company's minimum lease payments receivable were as follows:

	As of
	July 31, 2021		October 31, 2020
Fiscal year	In millions
Remainder of fiscal 2021	$	1,496	$	4,182
2022	3,389		2,662
2023	2,306		1,572
2024	1,326		720
2025	609		252
Thereafter	220		60
Total undiscounted cash flows	$	9,346	$	9,448
Present value of lease payments (recognized as finance receivables)	$	8,621	$	8,694
Unearned income	$	725	$	754

Sale of Financing Receivables

The Company enters into arrangements to transfer the contractual payments due under certain financing receivables to third party financial institutions. During the three and nine months ended July 31, 2021 the Company sold $30 million and $110 million of financing receivables, respectively. During the fiscal year ended October 31, 2020, the Company sold $103 million of financing receivables.

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 financing receivables, based on internal risk ratings as of July 31, 2021, presented on amortized cost basis by year of origination was as follows:

	As of July 31, 2021
	Risk Rating
	Low		Moderate		High
Fiscal Year	In millions
2021	$	1,341	$	1,156	$	40
2020	1,607		1,203		94
2019	965		880		95
2018	469		491		88
2017 and prior	198		271		109
Total	$	4,580	$	4,001	$	426

24

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, 2020, was as follows:

	As of
	October 31, 2020
	In millions
Risk Rating:
Low	$	4,590
Moderate	4,091
High	377
Total	$	9,058

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. Effective November 1, 2020, under the new guidance for credit losses, the Company discloses its credit quality by year of origination. 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 July 31, 2021 and October 31, 2020 and the respective changes during the nine and twelve months then ended were as follows:

	As of
	July 31, 2021		October 31, 2020
	In millions
Balance at beginning of period	$	154	$	131
Adjustment for adoption of the new credit loss standard	28		—
Provision for credit losses	59		43
Adjustment to the existing allowance	19		—
Write-offs	(26)		(20)
Balance at end of period	$	234	$	154

Non-Accrual and Past-Due Financing Receivables

The following table summarizes the aging and non-accrual status of gross financing receivables:

	As of
	July 31, 2021		October 31, 2020
	In millions
Billed:(1)
Current 1-30 days	$	347	$	340
Past due 31-60 days	38		43
Past due 61-90 days	17		22
Past due > 90 days	121		140
Unbilled sales-type and direct-financing lease receivables	8,484		8,513
Total gross financing receivables	$	9,007	$	9,058
Gross financing receivables on non-accrual status(2)	$	285	$	364
Gross financing receivables 90 days past due and still accruing interest(2)	$	92	$	74

(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.

25

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

Operating Leases

Operating lease assets included in Property, plant and equipment in the Condensed Consolidated Balance Sheets were as follows:

	As of
	July 31, 2021		October 31, 2020
	In millions
Equipment leased to customers	$	7,166	$	7,184
Accumulated depreciation	(3,223)		(3,157)
Total	$	3,943	$	4,027

Minimum future rentals on non-cancelable operating leases related to leased equipment were as follows:

	As of
	July 31, 2021
Fiscal year	In millions
Remainder of fiscal 2021	$	510
2022	1,524
2023	873
2024	300
2025	44
Thereafter	11
Total	$	3,262

If a lease is classified as an operating lease, the Company records lease revenue on a straight line basis over the lease term. At commencement of an operating lease, initial direct costs are deferred and are expensed over the lease term on the same basis as the lease revenue is recorded.

The following table presents amounts included in the Condensed Consolidated Statement of Earnings related to lessor activity:

	Three Months Ended July 31,				Nine Months Ended July 31,
	2021		2020		2021		2020
	In millions
Sales-type leases and direct financing leases:
Interest income	$	125	$	115	$	371	$	343
Lease income - operating leases	598		588		1,797		1,821
Total lease income	$	723	$	703	$	2,168	$	2,164

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 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.

26

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

The following table presents the assets and liabilities held by the consolidated VIE as of July 31, 2021, 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
	July 31, 2021		October 31, 2020
Assets held by VIE	In millions
Other current assets	$	179	$	120
Financing receivables
Short-term	$	805	$	531
Long-term	$	882	$	584
Property, plant and equipment	$	1,010	$	665
Liabilities held by VIE
Notes payable and short-term borrowings, net of unamortized debt issuance costs	$	1,389	$	886
Long-term debt, net of unamortized debt issuance costs	$	1,198	$	834

Note 8: Goodwill

The following table represents the carrying value of goodwill, by reportable segment as of October 31, 2020 and July 31, 2021:

	Compute		HPC & MCS		Storage		Intelligent Edge		Financial Services		Corporate Investments and Other		Total
	In millions
Balance at October 31, 2020 (1) (2)	$	7,532	$	3,616	$	3,946	$	2,566	$	144	213		$	18,017
Goodwill from current period acquisitions	—		86		—		—		—		—		86
Goodwill adjustments	—		—		—		(11)		—		—		(11)
Balance at July 31, 2021 (2)	$	7,532	$	3,702	$	3,946	$	2,555	$	144	$	213	$	18,092

(1)As a result of the organizational realignments which were effective as of November 1, 2020, (described in Note 1, "Overview and Summary of Significant Accounting Policies"), $213 million of goodwill was reallocated from Storage segment to Corporate Investments and Other segment as of the beginning of the period using a relative fair value approach.

(2)Goodwill is net of accumulated impairment losses of $953 million. Of this amount, $865 million related to the HPC & MCS reporting unit was recorded during the second quarter of 2020 and $88 million related to the CMS reporting unit within Corporate Investments and Other was recorded during the fourth quarter of fiscal 2018. There is no goodwill remaining in the CMS reporting unit.

Effective at the beginning of the first quarter of fiscal 2021, the Company's operations were realigned into six segments for financial reporting purposes. The Company's reporting units containing goodwill are consistent with the reportable segments identified in Note 2, "Segment Information" with the exception of Corporate Investments and Other which is made up of three reporting units, A & PS, CMS, and Software, of which only Software has goodwill. As a result of this realignment, the Company performed an interim quantitative goodwill impairment test for all of its reporting units as of November 1, 2020, which did not result in any goodwill impairment charges. The fair value of all reporting units continued to exceed the carrying value of their net assets. The excess of fair value over carrying value for our reporting units ranged from approximately 8% to 37% of the respective carrying values. In order to evaluate the sensitivity of the estimated fair value of our reporting units in the goodwill impairment test, the Company applied a hypothetical 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 HPC & MCS reporting unit.

As of the interim test date, the HPC & MCS reporting unit has goodwill of $3.6 billion and an excess of fair value over carrying value of net assets of 8%. The fair value of the HPC & MCS reporting unit was based on a weighting of fair values derived most significantly from the income approach, and to a lesser extent, the market approach. The HPC & MCS business is facing challenges on the current and projected future results as the revenue growth is dependent on timing of delivery and related achievement of customer acceptance milestones. If the Company is not successful in addressing these challenges, the

27

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

projected revenue growth rates or operating margins could decline resulting in a decrease in the fair value of the HPC & MCS reporting unit. The fair value of the HPC & MCS reporting unit could also be negatively impacted by changes in its weighted average cost of capital, changes in management's business strategy or significant and sustained declines in the stock price, which could result in an indicator of impairment.

In addition, should economic conditions deteriorate, estimates of future cash flows for each of the Company's reporting units may be insufficient to support the carrying value and the goodwill assigned to them, requiring impairment charges. Further impairment charges, if any, may be material to the results of operations and financial position.

The Company will continue to evaluate the recoverability of goodwill on an annual basis as of the beginning of its fourth fiscal quarter and whenever events or changes in circumstances indicate there may be a potential impairment.

Note 9: 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.

The following table presents the Company's assets and liabilities that are measured at fair value on a recurring basis:

	As of July 31, 2021								As of October 31, 2020
	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
Assets
Cash Equivalents and Investments:
Time deposits	$	—	$	1,398	$	—	$	1,398	$	—	$	939	$	—	$	939
Money market funds	2,003		—		—		2,003		1,167		—		—		1,167
Equity securities	2		—		92		94		—		—		—		—
Foreign bonds	1		125		—		126		—		125		—		125
Other debt securities	—		—		43		43		—		—		21		21
Derivative Instruments:
Interest rate contracts	—		153		—		153		—		220		—		220
Foreign exchange contracts	—		211		—		211		—		290		—		290
Other derivatives	—		1		—		1		—		—		—		—
Total assets	$	2,006	$	1,888	$	135	$	4,029	$	1,167	$	1,574	$	21	$	2,762
Liabilities
Derivative Instruments:
Interest rate contracts	$	—	$	—	$	—	$	—	$	—	$	2	$	—	$	2
Foreign exchange contracts	—		190		—		190		—		189		—		189
Other derivatives	—		—		—		—		—		3		—		3
Total liabilities	$	—	$	190	$	—	$	190	$	—	$	194	$	—	$	194

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.

28

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

Other Fair Value Disclosures

Short-Term and Long-Term Debt: As of July 31, 2021 and October 31, 2020, the estimated fair value of the Company's short-term and long-term debt was $17.6 billion and $17.1 billion, respectively. As of July 31, 2021 and October 31, 2020, the carrying value of the Company's short-term and long-term debt was $16.2 billion and $15.9 billion, respectively. If measured at fair value in the Consolidated Balance Sheets, short-term and long-term debt would be classified in Level 2 of the fair value hierarchy.

Equity investments without readily determinable fair value: Equity Investments are recorded at cost and measured at fair value, when they are deemed to be impaired or when there is an adjustment from observable price changes. During the nine months ended July 31, 2021, the Company recognized a gain of $25 million, in Interest and other, net in the Condensed Consolidated Statements of Earnings, based on observable price changes for certain equity investments without readily determinable fair value. If measured at fair value in the Consolidated Balance Sheets, these would generally be classified in Level 3 of the fair value hierarchy.

Non-Financial Assets: The Company's non-financial assets, such as intangible assets, goodwill and property, plant and equipment, are recorded at cost. The Company records right-of-use ("ROU") assets based on the lease liability, adjusted for lease prepayments, lease incentives received, and the lessee's initial direct costs. Fair value adjustments are made to these non-financial assets in the period an impairment charge is recognized.

During the three and nine months ended July 31, 2021, the Company recorded a ROU asset impairment charge of $4 million and $72 million, respectively in Transformation costs in the Condensed Consolidated Statements of Earnings as the carrying value of certain ROU assets exceeded its fair value. If measured at fair value in the Condensed Consolidated Balance Sheets, these would generally be classified in Level 3 of the fair value hierarchy.

In the second quarter of fiscal 2020, the Company recorded a goodwill impairment charge of $865 million associated with the HPC & MCS reporting unit. The fair value of the Company's reporting units was classified in Level 3 of the fair value hierarchy due to the significance of unobservable inputs developed using company-specific information. For more information on the goodwill impairment, see Note 8 "Goodwill".

Note 10: Financial Instruments

Cash Equivalents and Available-for-Sale Debt Investments

Cash equivalents and available-for-sale debt investments were as follows:

	As of July 31, 2021						As of October 31, 2020
	Cost		Gross Unrealized Gain		Fair Value		Cost		Gross Unrealized Gain		Fair Value
	In millions
Cash Equivalents:
Time deposits	$	1,398	$	—	$	1,398	$	939	$	—	$	939
Money market funds	2,003		—		2,003		1,167		—		1,167
Total cash equivalents	3,401		—		3,401		2,106		—		2,106
Available-for-Sale Debt Investments:
Foreign bonds	110		16		126		108		17		125
Other debt securities	42		1		43		20		1		21
Total available-for-sale debt investments	152		17		169		128		18		146
Total cash equivalents and available-for-sale debt investments	$	3,553	$	17	$	3,570	$	2,234	$	18	$	2,252

As of July 31, 2021 and October 31, 2020, the carrying amount of cash equivalents approximated fair value due to the short period of time to maturity. Time deposits were primarily issued by institutions outside of the U.S. as of July 31, 2021 and October 31, 2020. The estimated fair value of the available-for-sale debt investments may not be representative of values that will be realized in the future.

29

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

Contractual maturities of available-for-sale debt investments were as follows:

	July 31, 2021
	Amortized Cost		Fair Value
	In millions
Due in one to five years	$	25	$	25
Due in more than five years	127		144
	$	152	$	169

Non-marketable equity investments in privately held companies are included in Long-term financing receivables and other assets in the Condensed Consolidated Balance Sheets. These non-marketable equity investments are carried either at fair value or under the measurement alternative.

The carrying amount of those non-marketable equity investments accounted for under the measurement alternative amounted to $252 million and $295 million as of July 31, 2021 and October 31, 2020, respectively. During the nine months ended July 31, 2021, the Company recorded an unrealized gain of $25 million on these investments.

The carrying amount of those non-marketable equity investments accounted for under the fair value option amounted to $92 million as of July 31, 2021. During the nine months ended July 31, 2021, the Company recorded an unrealized gain of $34 million on these investments.

Investments in equity securities that are accounted for using the equity method are included in Investments in equity interests in the Condensed Consolidated Balance Sheets. These amounted to $2.3 billion and $2.2 billion as of July 31, 2021 and October 31, 2020. For the three and nine months ended July 31, 2021, the Company recorded earnings from equity interests of $79 million and $109 million, respectively.

Fair Value of Derivative Instruments in the Condensed Consolidated Balance Sheets

The gross notional and fair value of derivative instruments in the Condensed Consolidated Balance Sheets were as follows:

	As of July 31, 2021										As of October 31, 2020
			Fair Value										Fair Value
	Outstanding Gross Notional		Other Current Assets		Long-Term Financing Receivables and Other Assets		Other Accrued Liabilities		Long-Term Other Liabilities		Outstanding Gross Notional		Other Current Assets		Long-Term Financing Receivables and Other Assets		Other Accrued Liabilities		Long-Term Other Liabilities
	In millions
Derivatives designated as hedging instruments
Fair value hedges:
Interest rate contracts	$	3,850	$	—	$	153	$	—	$	—	$	3,850	$	—	$	220	$	—	$	—
Cash flow hedges:
Foreign currency contracts	7,872		89		46		65		62		7,652		75		85		95		38
Interest rate contracts	—		—		—		—		—		500		—		—		2		—
Net investment hedges:
Foreign currency contracts	1,821		25		24		18		20		1,804		34		44		11		9
Total derivatives designated as hedging instruments	13,543		114		223		83		82		13,806		109		349		108		47
Derivatives not designated as hedging instruments
Foreign currency contracts	5,923		20		7		23		2		6,157		43		9		35		1
Other derivatives	113		1		—		—		—		105		—		—		3		—
Total derivatives not designated as hedging instruments	6,036		21		7		23		2		6,262		43		9		38		1
Total derivatives	$	19,579	$	135	$	230	$	106	$	84	$	20,068	$	152	$	358	$	146	$	48

30

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

Offsetting of Derivative Instruments

The Company recognizes all derivative instruments on a gross basis in the Condensed Consolidated Balance Sheets. The Company's derivative instruments are subject to master netting arrangements and collateral security arrangements. The Company does not offset the fair value of its derivative instruments against the fair value of cash collateral posted under collateral security agreements. The information related to the potential effect of the Company's use of the master netting agreements and collateral security agreements were as follows:

	As of July 31, 2021
	In the Condensed Consolidated Balance Sheets
	(i)		(ii)		(iii) = (i)–(ii)		(iv)		(v)			(vi) = (iii)–(iv)–(v)
							Gross Amounts Not Offset
	Gross Amount Recognized		Gross Amount Offset		Net Amount Presented		Derivatives		Financial Collateral			Net Amount
	In millions
Derivative assets	$	365	$	—	$	365	$	154	$	203	(1)	$	8
Derivative liabilities	$	190	$	—	$	190	$	154	$	30	(2)	$	6

	As of October 31, 2020
	In the Condensed Consolidated Balance Sheets
	(i)		(ii)		(iii) = (i)–(ii)		(iv)		(v)			(vi) = (iii)–(iv)–(v)
							Gross Amounts Not Offset
	Gross Amount Recognized		Gross Amount Offset		Net Amount Presented		Derivatives		Financial Collateral			Net Amount
	In millions
Derivative assets	$	510	$	—	$	510	$	137	$	321	(1)	$	52
Derivative liabilities	$	194	$	—	$	194	$	137	$	55	(2)	$	2

(1)Represents the cash collateral posted by counterparties as of the respective reporting date for the Company's asset position, net of derivative amounts that could be offset, as of, generally, two business days prior to the respective reporting date.

(2)Represents the collateral posted by the Company in cash or through the re-use of counterparty cash collateral as of the respective reporting date for the Company's liability position, net of derivative amounts that could be offset, as of, generally, two business days prior to the respective reporting date. As of July 31, 2021, of the $30 million of collateral posted, $5 million was in cash and $25 million was through re-use of counterparty collateral. As of October 31, 2020, $55 million of collateral posted was entirely by way of re-use of counterparty collateral.

The amounts recorded on the Condensed Consolidated Balance Sheets related to cumulative basis adjustments for fair value hedges were as follows:

	Carrying amount of the hedged assets/ (liabilities)				Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged assets/ (liabilities)
	As of				As of
	July 31, 2021		October 31, 2020		July 31, 2021		October 31, 2020
	In millions				In millions
Long-term debt	$	(3,994)	$	(4,059)	$	(153)	$	(220)

31

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

The pre-tax effect of derivative instruments in cash flow and net investment hedging relationships recognized in Other Comprehensive Income ("OCI") were as follows:

	Gains (Losses) Recognized in OCI on Derivatives
	Three months ended July 31, 2021		Three months ended July 31, 2020		Nine months ended July 31, 2021		Nine months ended July 31, 2020
	In millions
Derivatives in Cash Flow Hedging relationship
Foreign exchange contracts	$	101	$	(456)	$	(183)	$	(79)
Interest rate contracts	—				—		(6)
Derivatives in Net Investment Hedging relationship
Foreign exchange contracts	16		(83)		(61)		50
Total	$	117	$	(539)	$	(244)	$	(35)

As of July 31, 2021, the Company expects to reclassify an estimated net accumulated other comprehensive gain of approximately $42 million, net of taxes, to earnings in the next twelve months along with the earnings effects of the related forecasted transactions associated with cash flow hedges.

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Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

Effect of Derivative Instruments on the Condensed Consolidated Statements of Earnings

The pre-tax effect of derivative instruments on the Condensed Consolidated Statements of Earnings were as follows:

	Gains (Losses) Recognized in Income
	Three months ended July 31, 2021				Three months ended July 31, 2020				Nine months ended July 31, 2021				Nine months ended July 31, 2020
	Net revenue		Interest and other, net		Net revenue		Interest and other, net		Net revenue		Interest and other, net		Net revenue		Interest and other, net
	In millions
Total amounts of income and expense line items presented in the Condensed Consolidated Statements of Earnings in which the effects of fair value hedges, cash flow hedges and derivatives not designated as hedging instruments are recorded	$	6,897	$	(50)	$	6,816	$	(71)	$	20,430	$	(105)	$	19,774	$	(158)
Gains (losses) on derivatives in fair value hedging relationships
Interest rate contracts
Hedged items	$	—	$	(3)	$	—	$	(13)	$	—	$	67	$	—	$	(198)
Derivatives designated as hedging instruments	—		3		—		13		—		(67)		—		198
Gains (losses) on derivatives in cash flow hedging relationships
Foreign exchange contracts
Amount of gains (losses) reclassified from accumulated other comprehensive income into income	(14)		50		23		(264)		(113)		(147)		97		(55)
Interest rate contracts
Amount of gains (losses) reclassified from accumulated other comprehensive income into income	—		—		—		(1)		—		(2)		—		(1)
Gains (losses) on derivatives not designated as hedging instruments
Foreign exchange contracts	—		(33)		—		8		—		(61)		—		53
Other derivatives	—		(1)		—		(6)		—		3		—		(1)
Total gains (losses)	$	(14)	$	16	$	23	$	(263)	$	(113)	$	(207)	$	97	$	(4)

33

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

Note 11: Borrowings

Notes Payable, Short-Term Borrowings and Long-Term Debt

Notes payable, short-term borrowings, including the current portion of long-term debt, and long-terms debt were as follows:

	As of
	July 31, 2021		October 31, 2020
	In millions
Current portion of long-term debt	$	2,741	$	2,768
FS commercial paper	694		677
Notes payable to banks, lines of credit and other	301		310
Total notes payable and short-term borrowings	$	3,736	$	3,755
Long-term debt	12,489		12,186
Total Debt	$	16,225	$	15,941

Unsecured Senior Notes

In March 2021, the Company repaid $500 million of three-month USD LIBOR plus 0.68% Senior Notes on their original maturity date.

Asset-backed Debt Securities

In June 2021, the Company issued $753 million of asset-backed debt securities in six tranches at a weighted average price of 99.99% and a weighted average interest rate of 0.58%, payable monthly from August 2021 with a stated final maturity date of March 2029.

In March 2021, the Company issued $1.0 billion of asset-backed debt securities in six tranches at a weighted average price of 99.99% and a weighted average interest rate of 0.49%, payable monthly from April 2021 with a stated final maturity date of March 2031.

Commercial Paper

Hewlett Packard Enterprise maintains two commercial paper programs, "the Parent Programs", and a wholly-owned subsidiary maintains a third program. Hewlett Packard Enterprise's U.S. program provides for the issuance of U.S. dollar-denominated commercial paper up to a maximum aggregate principal amount of $4.75 billion. Hewlett Packard Enterprise's euro commercial paper program provides for the issuance of commercial paper outside of the U.S. denominated in U.S. dollars, euros or British pounds up to a maximum aggregate principal amount of $3.0 billion or the equivalent in those alternative currencies. The combined aggregate principal amount of commercial paper outstanding under those two programs at any one time cannot exceed the $4.75 billion as authorized by Hewlett Packard Enterprise's Board of Directors. In addition, the Hewlett Packard Enterprise subsidiary's euro Commercial Paper/Certificate of Deposit Program provides for the issuance of commercial paper in various currencies of up to a maximum aggregate principal amount of $1.0 billion. As of July 31, 2021 and October 31, 2020, no borrowings were outstanding under the Parent Programs, and $694 million and $677 million, respectively, were outstanding under the subsidiary’s program.

34

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

Note 12: Stockholders' Equity

The components of Accumulated other comprehensive loss, net of taxes as of July 31, 2021, and changes during the nine months ended July 31, 2021 were as follows:

	Net unrealized gains (losses) on available-for-sale securities		Net unrealized gains (losses) on cash flow hedges		Unrealized components of defined benefit plans		Cumulative translation adjustment		Accumulated other comprehensive loss
	In millions
Balance at beginning of period	$	18	$	(7)	$	(3,473)	$	(477)	$	(3,939)
Other comprehensive income (loss) before reclassifications	(1)		(183)		29		20		(135)
Reclassifications of (gains) losses into earnings	—		262		214		—		476
Tax (provision) benefit	—		(14)		(15)		(4)		(33)
Balance at end of period	$	17	$	58	$	(3,245)	$	(461)	$	(3,631)

The components of Accumulated other comprehensive loss, net of taxes as of July 31, 2020, and changes during the nine months ended July 31, 2020 were as follows:

	Net unrealized gains (losses) on available-for-sale securities		Net unrealized gains (losses) on cash flow hedges		Unrealized components of defined benefit plans		Cumulative translation adjustment		Accumulated other comprehensive loss
	In millions
Balance at beginning of period	$	23	$	53	$	(3,366)	$	(437)	$	(3,727)
Effect of change in accounting principle (1)	—		(10)		—		(33)		(43)
Other comprehensive income (loss) before reclassifications	—		(85)		(10)		(46)		(141)
Reclassifications of (gains) losses into earnings	(8)		(41)		191		—		142
Tax (provision) benefit	—		20		(11)		4		13
Balance at end of period	$	15	$	(63)	$	(3,196)	$	(512)	$	(3,756)

(1) Reflects the impact of the adoption of an accounting standard update that allows for the reclassification of stranded tax effects from accumulated other comprehensive loss to accumulated deficit.

Share Repurchase Program

On April 6, 2020, the Company announced that it suspended purchases under its share repurchase program in response to the global economic uncertainty that resulted from the worldwide spread of COVID-19. As of July 31, 2021, the Company had a remaining authorization of $2.1 billion for future share repurchases.

Note 13: Net Earnings (Loss) Per Share

The Company calculates basic net EPS using net earnings and the weighted-average number of shares outstanding during the reporting period. Diluted net EPS includes the weighted-average dilutive effect of outstanding restricted stock units, stock options, and performance-based awards.

35

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

The reconciliations of the numerators and denominators of each of the basic and diluted net EPS calculations were as follows:

	Three Months Ended July 31,				Nine Months Ended July 31,
	2021		2020		2021		2020
	In millions, except per share amounts
Numerator:
Net earnings (loss)	$	392	$	9	$	874	$	(479)
Denominator:
Weighted-average shares used to compute basic net EPS	1,314		1,292		1,308		1,294
Dilutive effect of employee stock plans	24		8		20		—
Weighted-average shares used to compute diluted net EPS	1,338		1,300		1,328		1294
Net earnings (loss) per share:
Basic	$	0.30	$	0.01	$	0.67	$	(0.37)
Diluted	$	0.29	$	0.01	$	0.66	$	(0.37)
Anti-dilutive weighted-average stock awards(1)	1		21		7		48

(1)The Company excludes shares potentially issuable under employee stock plans that could dilute basic net EPS in the future from the calculation of diluted net earnings per share, as their effect, if included, would have been anti-dilutive for the periods presented.

Note 14: Litigation and Contingencies

Hewlett Packard Enterprise is involved in various lawsuits, claims, investigations and proceedings including those consisting of intellectual property, commercial, securities, employment, employee benefits and environmental matters, which arise in the ordinary course of business. In addition, as part of the Separation and Distribution Agreement, Hewlett Packard Enterprise and HP Inc. (formerly known as "Hewlett-Packard Company") agreed to cooperate with each other in managing certain existing litigation related to both parties' businesses. The Separation and Distribution Agreement included provisions that allocate liability and financial responsibility for pending litigation involving the parties, as well as provide for cross-indemnification of the parties against liabilities to one party arising out of liabilities allocated to the other party. The Separation and Distribution Agreement also included provisions that assign to the parties responsibility for managing pending and future litigation related to the general corporate matters of HP Inc. arising prior to the Separation. Hewlett Packard Enterprise records a liability when it believes that it is both probable that a liability has been incurred and the amount of loss can be reasonably estimated. Significant judgment is required to determine both the probability of having incurred a liability and the estimated amount of the liability. Hewlett Packard Enterprise reviews these matters at least quarterly and adjusts these liabilities to reflect the impact of negotiations, settlements, rulings, advice of legal counsel and other updated information and events pertaining to a particular matter. Litigation is inherently unpredictable. However, Hewlett Packard Enterprise believes it has valid defenses with respect to legal matters pending against us. Nevertheless, cash flows or results of operations could be materially affected in any particular period by the resolution of one or more of these contingencies. Hewlett Packard Enterprise believes it has recorded adequate provisions for any such matters and, as of July 31, 2021, it was not reasonably possible that a material loss had been incurred in connection with such matters in excess of the amounts recognized in its financial statements.

Litigation, Proceedings and Investigations

Ross and Rogus v. Hewlett Packard Enterprise Company. On November 8, 2018, a putative class action complaint was filed in the Superior Court of California, County of Santa Clara alleging that HPE pays its California-based female employees “systemically lower compensation” than HPE pays male employees performing substantially similar work. The complaint alleges various California state law claims, including California’s Equal Pay Act, Fair Employment and Housing Act, and Unfair Competition Law, and seeks certification of a California-only class of female employees employed in certain “Covered Positions.” The complaint seeks damages, statutory and civil penalties, attorneys’ fees and costs. On April 2, 2019, HPE filed a demurrer to all causes of action and an alternative motion to strike portions of the complaint. On July 2, 2019, the court denied HPE’s demurrer as to the claims of the putative class and granted HPE’s demurrer as to the claims of the individual plaintiffs.

36

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

India Directorate of Revenue Intelligence Proceedings. On April 30 and May 10, 2010, the India Directorate of Revenue Intelligence (the "DRI") issued show cause notices to Hewlett-Packard India Sales Private Ltd ("HP India"), a subsidiary of HP Inc., seven HP India employees and one former HP India employee alleging that HP India underpaid customs duties while importing products and spare parts into India and seeking to recover an aggregate of approximately $370 million, plus penalties. Prior to the issuance of the show cause notices, HP India deposited approximately $16 million with the DRI and agreed to post a provisional bond in exchange for the DRI's agreement to not seize HP India products and spare parts and to not interrupt the transaction of business by HP India.

On April 11, 2012, the Bangalore Commissioner of Customs issued an order on the products-related show cause notice affirming certain duties and penalties against HP India and the named individuals of approximately $386 million, of which HP India had already deposited $9 million. On December 11, 2012, HP India voluntarily deposited an additional $10 million in connection with the products-related show cause notice. On April 20, 2012, the Commissioner issued an order on the parts-related show cause notice affirming certain duties and penalties against HP India and certain of the named individuals of approximately $17 million, of which HP India had already deposited $7 million. After the order, HP India deposited an additional $3 million in connection with the parts-related show cause notice to avoid certain penalties.

HP India filed appeals of the Commissioner's orders before the Customs Tribunal along with applications for waiver of the pre-deposit of remaining demand amounts as a condition for hearing the appeals. The Customs Department has also filed cross-appeals before the Customs Tribunal. On January 24, 2013, the Customs Tribunal ordered HP India to deposit an additional $24 million against the products order, which HP India deposited in March 2013. The Customs Tribunal did not order any additional deposit to be made under the parts order. In December 2013, HP India filed applications before the Customs Tribunal seeking early hearing of the appeals as well as an extension of the stay of deposit as to HP India and the individuals already granted until final disposition of the appeals. On February 7, 2014, the application for extension of the stay of deposit was granted by the Customs Tribunal until disposal of the appeals. On October 27, 2014, the Customs Tribunal commenced hearings on the cross-appeals of the Commissioner's orders. The Customs Tribunal rejected HP India's request to remand the matter to the Commissioner on procedural grounds. The hearings were scheduled to reconvene on April 6, 2015, and again on November 3, 2015, April 11, 2016, and January 15, 2019, but were canceled at the request of the Customs Tribunal. The hearing was again rescheduled for January 20, 2021 but was postponed and has not yet been rescheduled.

ECT Proceedings. In January 2011, the postal service of Brazil, Empresa Brasileira de Correios e Telégrafos ("ECT"), notified a former subsidiary of HP Inc. in Brazil ("HP Brazil") that it had initiated administrative proceedings to consider whether to suspend HP Brazil's right to bid and contract with ECT related to alleged improprieties in the bidding and contracting processes whereby employees of HP Brazil and employees of several other companies allegedly coordinated their bids and fixed results for three ECT contracts in 2007 and 2008. In late July 2011, ECT notified HP Brazil it had decided to apply the penalties against HP Brazil and suspend HP Brazil's right to bid and contract with ECT for five years, based upon the evidence before it. In August 2011, HP Brazil appealed ECT's decision. In April 2013, ECT rejected HP Brazil's appeal, and the administrative proceedings were closed with the penalties against HP Brazil remaining in place. In parallel, in September 2011, HP Brazil filed a civil action against ECT seeking to have ECT's decision revoked. HP Brazil also requested an injunction suspending the application of the penalties until a final ruling on the merits of the case. The court of first instance has not issued a decision on the merits of the case, but it has denied HP Brazil's request for injunctive relief. HP Brazil appealed the denial of its request for injunctive relief to the intermediate appellate court, which issued a preliminary ruling denying the request for injunctive relief but reducing the length of the sanctions from five to two years. HP Brazil appealed that decision and, in December 2011, obtained a ruling staying enforcement of ECT's sanctions until a final ruling on the merits of the case. HP Brazil expects any appeal of the decision on the merits to last several years.

Forsyth, et al. vs. HP Inc. and Hewlett Packard Enterprise. This purported class and collective action was filed on August 18, 2016 and an amended complaint was filed on December 19, 2016 in the United States District Court for the Northern District of California, against HP Inc. and Hewlett Packard Enterprise (collectively, “Defendants”) alleging Defendants violated the Federal Age Discrimination in Employment Act ("ADEA"), the California Fair Employment and Housing Act, California public policy and the California Business and Professions Code by terminating older workers and replacing them with younger workers. Plaintiffs seek to certify a nationwide collective action under the ADEA comprised of all individuals age 40 years and older who had their employment terminated by an HP entity pursuant to a work force reduction ("WFR") plan on or after December 9, 2014 for individuals terminated in deferral states and on or after April 8, 2015 in non-deferral states. Plaintiffs also seek to certify a Rule 23 class under California law comprised of all persons 40 years or older employed by Defendants in the state of California and terminated pursuant to a WFR plan on or after August 18, 2012. Following the filing of Plaintiffs' Fourth Amended Complaint, Plaintiffs filed a Motion for Preliminary Class Certification on December 30, 2020. On April 14, 2021, Plaintiffs’ Motion for Conditional Class Certification was granted. The conditionally

37

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

certified collective action consists of all individuals who had their employment terminated by Defendants pursuant to a WFR Plan on or after November 1, 2015, and who were 40 years or older at the time of such termination. The collective action excludes all individuals who signed a Waiver and General Release Agreement or an Agreement to Arbitrate Claims.

Hewlett-Packard Company v. Oracle (Itanium). On June 15, 2011, HP Inc. filed suit against Oracle in the Superior Court of California, County of Santa Clara in connection with Oracle's March 2011 announcement that it was discontinuing software support for HP Inc.’s Itanium-based line of mission critical servers. HP Inc. asserted, among other things, that Oracle’s actions breached the contract that was signed by the parties as part of the settlement of the litigation relating to Oracle’s hiring of Mark Hurd. Trial was bifurcated into two phases. HP Inc. prevailed in the first phase of the trial, in which the court ruled that the contract at issue required Oracle to continue to offer its software products on HP Inc.'s Itanium-based servers for as long as HP Inc. decided to sell such servers. Phase 2 of the trial was then postponed by Oracle’s appeal of the trial court’s denial of Oracle’s “anti-SLAPP” motion, in which Oracle argued that HP Inc.’s damages claim infringed on Oracle’s First Amendment rights. On August 27, 2015, the California Court of Appeal rejected Oracle’s appeal. The matter was remanded to the trial court for Phase 2 of the trial, which began on May 23, 2016, and was submitted to the jury on June 29, 2016. On June 30, 2016, the jury returned a verdict in favor of HP Inc., awarding HP Inc. approximately $3 billion in damages: $1.7 billion for past lost profits and $1.3 billion for future lost profits. On October 20, 2016, the court entered judgment for this amount with interest accruing until the judgment is paid. Oracle’s motion for a new trial was denied on December 19, 2016, and Oracle filed its notice of appeal from the trial court’s judgment on January 17, 2017. On February 2, 2017, HP Inc. filed a notice of cross-appeal challenging the trial court’s denial of prejudgment interest. On May 16, 2019, HP Inc. filed its application to renew the judgment. As of May 16, 2019, the renewed judgment is approximately $3.8 billion. Daily interest on the renewed judgment is now accruing at $1 million and will be recorded upon receipt. On June 14, 2021, the California Court of Appeal affirmed the judgment of the trial court. Oracle filed a Petition for Rehearing with the California Court of Appeal, which was denied on July 8, 2021. On July 26, 2021, Oracle filed a Petition for Review with the California Supreme Court. HP, Inc. filed an Answer to the Petition for Review on August 16, 2021. Pursuant to the terms of the Separation and Distribution Agreement, HP Inc. and Hewlett Packard Enterprise will share equally in any recovery from Oracle once Hewlett Packard Enterprise has been reimbursed for all costs incurred in the prosecution of the action prior to the HP Inc. /Hewlett Packard Enterprise separation on November 1, 2015.

Oracle America, Inc., et al. v. Hewlett Packard Enterprise Company (Terix copyright matter). On March 22, 2016, Oracle filed a complaint against HPE in the United States District Court for the Northern District of California, alleging copyright infringement, interference with contract, intentional interference with prospective economic relations, and unfair competition. Oracle’s claims arise out of HPE’s prior use of a third-party maintenance provider named Terix Computer Company, Inc. (“Terix”). Oracle contends that in connection with HPE’s use of Terix as a subcontractor for certain customers of HPE’s multivendor support business, Oracle’s copyrights were infringed, and HPE is liable for vicarious and contributory infringement and related claims. The lawsuit against HPE follows a prior lawsuit brought by Oracle against Terix in 2013 relating to Terix’s alleged unauthorized provision of Solaris patches to customers on Oracle hardware. On January 29, 2019, the court granted HPE’s Motion for Summary Judgment as to all of Oracle’s claims. On February 20, 2019, the court entered judgment in favor of HPE, dismissing Oracle’s claims in their entirety. Oracle appealed the trial court’s ruling to the United States Court of Appeals for the Ninth Circuit. On August 20, 2020, the United States Court of Appeals for the Ninth Circuit issued its ruling, affirming in part and reversing in part the trial court’s decision granting summary judgment in favor of HPE. On October 6, 2020, the matter was remanded to the United States District Court for the Northern District of California. On June 4, 2021, the Court issued an order denying HPE’s motion for summary judgment and granting-in-part Oracle’s motion for partial summary judgment as to a certain of HPE’s defenses. The Court has set trial to begin on November 29, 2021.

Network-1 Technologies, Inc. v. Alcatel-Lucent USA Inc., et al. This patent infringement action was filed on September 15, 2011 in the United States District Court for the Eastern District of Texas, alleging that various Hewlett Packard Enterprise switches and access points infringe Network-1’s patent relating to the 802.3af and 802.3at “Power over Ethernet” standards. Network-1 seeks damages, attorneys’ fees and costs, and declaratory and injunctive relief. A jury trial was conducted beginning on November 6, 2017. On November 13, 2017, the jury returned a verdict in favor of HPE, finding that HPE did not infringe Network-1’s patent and that the patent was invalid. On August 29, 2018, the court denied Network-1's motion for a new trial on infringement and entered the jury's verdict finding that HPE does not infringe the relevant Network-1 patent. The court also granted Network-1's motion for Judgment as a Matter of Law on validity. Network-1 appealed the jury verdict of non-infringement to the United States Court of Appeals for the Federal Circuit. HPE cross-appealed the court’s decision to grant Network-1's motion for Judgment as a Matter of Law on validity. On September 24, 2020, the Federal Circuit issued its ruling, affirming-in-part and reversing-in-part the jury's verdict, and finding that an erroneous claim construction was presented to the jury that prejudiced Network-1. The matter has been remanded back to United States District Court for the Eastern District of Texas for further proceedings consistent with the Federal Circuit's ruling. On May 7, 2021, the District Court issued

38

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Continued)

(Unaudited)

an order granting Network-1's motion for a new trial. The parties have agreed to the terms of a settlement that resolves the litigation with no material financial statements impact. The lawsuit was dismissed on August 13, 2021 and the matter is now closed.

Q3 Networking Litigation. On September 21 and September 22, 2020, Q3 Networking LLC filed complaints against HPE, Aruba Networks, Commscope and Netgear in the United States District Court for the District of Delaware and the United States International Trade Commission (“ITC”). Both complaints allege infringement of four patents, and the ITC complaint defines the “accused products” as “routers, access points, controllers, network management servers, other networking products, and hardware and software components thereof.” The ITC action was instituted on October 23, 2020. The evidentiary hearing before the ITC has been completed and an initial determination is expected in 2021. The District of Delaware action has been stayed pending resolution of the ITC action.

Shared Litigation with HP Inc., DXC and Micro Focus

As part of the Separation and Distribution Agreements between Hewlett Packard Enterprise and HP Inc., Hewlett Packard Enterprise and DXC, and Hewlett Packard Enterprise and Seattle SpinCo, the parties to each agreement agreed to cooperate with each other in managing certain existing litigation related to both parties' businesses. The Separation and Distribution Agreements also included provisions that assign to the parties responsibility for managing pending and future litigation related to the general corporate matters of HP Inc. (in the case of the separation of Hewlett Packard Enterprise from HP Inc.) or of Hewlett Packard Enterprise (in the case of the separation of DXC from Hewlett Packard Enterprise and the separation of Seattle SpinCo from Hewlett Packard Enterprise), in each case arising prior to the applicable separation.

Environmental

The Company's operations and products are or may in the future become subject to various federal, state, local and foreign laws and regulations concerning environmental protection, including laws addressing the discharge of pollutants into the air and water, the management and disposal of hazardous substances and wastes, the clean-up of contaminated sites, the substances and materials used in the Company's products, the energy consumption of products, services and operations and the operational or financial responsibility for recycling, treatment and disposal of those products. This includes legislation that makes producers of electrical goods, including servers and networking equipment, financially responsible for specified collection, recycling, treatment and disposal of past and future covered products (sometimes referred to as "product take-back legislation"). The Company could incur substantial costs, its products could be restricted from entering certain jurisdictions, and it could face other sanctions, if it were to violate or become liable under environmental laws or if its products become non-compliant with environmental laws. The Company's potential exposure includes impacts on revenue, fines and civil or criminal sanctions, third-party property damage or personal injury claims and clean-up costs. The amount and timing of costs to comply with environmental laws are difficult to predict.

In particular, the Company may become a party to, or otherwise involved in, proceedings brought by U.S. or state environmental agencies under the Comprehensive Environmental Response, Compensation and Liability Act ("CERCLA"), known as "Superfund," or other federal, state or foreign laws and regulations addressing the clean-up of contaminated sites, and may become a party to, or otherwise involved in, proceedings brought by private parties for contribution towards clean-up costs. The Company is also contractually obligated to make financial contributions to address actions related to certain environmental liabilities, both ongoing and arising in the future, pursuant to its Separation and Distribution Agreement with HP Inc.

39

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

This Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") is organized as follows:

•Executive Overview.  A discussion of our business and summary analysis of financial and other highlights, including non-GAAP financial measures, affecting the Company in order to provide context to the remainder of the MD&A.

•Critical Accounting Policies and Estimates.  A discussion of accounting policies and estimates that we believe are important to understanding the assumptions and judgments incorporated in our reported financial results.

•Results of Operations.  An analysis of our financial results comparing the three and nine months ended July 31, 2021 to the prior-year periods. A discussion of the results of operations at the consolidated level is followed by a discussion of the results of operations at the segment level.

•Liquidity and Capital Resources.  An analysis of changes in our cash flows and a discussion of our financial condition and liquidity.

•Contractual and Other Obligations.  An overview of contractual obligations, retirement benefit plan funding, restructuring plans, uncertain tax positions, and off-balance sheet arrangements.

We intend the discussion of our financial condition and results of operations that follows to provide information that will assist the reader in understanding our Condensed Consolidated Financial Statements, the changes in certain key items in those financial statements from period-to-period, and the primary factors that accounted for those changes, as well as how certain accounting principles, policies and estimates affect our Condensed Consolidated Financial Statements. This discussion should be read in conjunction with our Condensed Consolidated Financial Statements and the related notes that appear elsewhere in this document.

The following Executive Overview, Results of Operations and Liquidity discussions and analysis compare the three and nine months ended July 31, 2021 to the prior-year periods, unless otherwise noted. The Capital Resources and Contractual and Other Obligations discussions present information as of July 31, 2021, unless otherwise noted.

For purposes of this MD&A section, we use the terms "Hewlett Packard Enterprise", "HPE", the "Company", "we", "us" and "our" to refer to Hewlett Packard Enterprise Company.

EXECUTIVE OVERVIEW

We are a global technology leader focused on developing intelligent solutions that allow customers to capture, analyze and act upon data seamlessly from edge to cloud. We enable 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. Our legacy dates to a partnership founded in 1939 by William R. Hewlett and David Packard, and we strive every day to uphold and enhance that legacy through our dedication to providing innovative technological solutions to our customers.

The global pandemic brought a renewed focus on digital transformation as businesses had to rethink everything from remote work and collaboration to business continuity and data insight. Businesses are starting to look ahead, beyond the immediate demands of COVID-19, and treating digital transformation as a strategic imperative. The overall demand environment is improving and we are seeing traction across our portfolio. Customers are looking for secure connectivity, faster insights from data, and a cloud experience everywhere. Our edge-to-cloud platform and services help customers transform their businesses, optimize their applications, and extract insight from their data across an increasingly distributed world, so they are prepared for tomorrow’s challenges.

Our operations are organized into six reportable segments for financial reporting purposes: Compute; High Performance Computing & Mission-Critical Solutions ("HPC & MCS"); Storage; Intelligent Edge; HPE Financial Services ("FS"); and Corporate Investments and Other. Our Fiscal 2021 third quarter total net revenue of $6.9 billion was up 1.2% or down 1.9% when adjusted for currency compared to prior-year period, primarily due to improvement in the overall demand environment and favorable foreign currency fluctuations, partially offset by decrease in unit shipments resulting from material constraints.

40

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Management's Discussion and Analysis of

Financial Condition and Results of Operations (Continued)

We delivered strong gross profit margin and operating profit margin during the third quarter of fiscal 2021. Our GAAP gross margin was 34.5%, up 4.2 percentage points and non-GAAP gross profit margin was 34.7%, up 4.2 percentage points compared to the prior-year period, primarily due to pricing discipline, cost savings from our transformation programs, and continued mix shift towards higher-margin software-rich offerings. Our GAAP operating profit margin was 4.1%, up 3.9 percentage points compared to prior-year period and our non-GAAP operating profit margin was 9.8%, up 1.9 percentage points from the prior-year period, primarily due to strong operational execution during the current year period. For the nine months ended July 31, 2021, we generated $2.9 billion of cash flow from operations and $1.5 billion of free cash flows through disciplined execution, strong expense management and working capital benefits.

Financial Results

The following table summarizes our consolidated GAAP financial results:

	Three Months Ended July 31,							Nine Months Ended July 31,
	2021			2020			Change	2021			2020			Change
	In millions, except per share amounts							In millions, except per share amounts
Net revenue	$	6,897		$	6,816		1.2%	$	20,430		$	19,774		3.3%
Gross profit	$	2,382		$	2,067		15.2%	$	6,957		$	6,263		11.1%
Gross profit margin	34.5		%	30.3		%	4.2pts	34.1		%	31.7		%	2.4pts
Earnings (loss) from operations	$	282		$	12		2,250%	$	782		$	(474)		265%
Operating profit margin	4.1		%	0.2		%	3.9pts	3.8		%	(2.4)		%	6.2pts
Net earnings (loss)	$	392		$	9		4,255.6%	$	874		$	(479)		282.5%
Diluted net earnings (loss) per share	$	0.29		$	0.01		$0.28	$	0.66		$	(0.37)		$1.03
Cash flow from operations	$	1,130		$	1,472		$(342)	$	2,915		$	1,493		$1,422

The following table summarizes our consolidated Non-GAAP financial results:

	Three Months Ended July 31,							Nine Months Ended July 31,
	2021			2020			Change	2021			2020			Change
	In millions, except per share amounts							In millions, except per share amounts
Net revenue adjusted for currency	$	6,688		$	6,816		(1.9)%	$	20,012		$	19,774		1.2%
Non-GAAP gross profit	$	2,393		$	2,078		15.2%	$	6,996		$	6,329		10.5%
Non-GAAP gross profit margin	34.7		%	30.5		%	4.2pts	34.2		%	32.0		%	2.2pts
Non-GAAP earnings from operations	$	673		$	539		24.9%	$	2,131		$	1,666		27.9%
Non-GAAP operating profit margin	9.8		%	7.9		%	1.9pts	10.4		%	8.4		%	2.0pts
Non-GAAP net earnings	$	623		$	467		33.4%	$	1,914		$	1,468		30.4%
Non-GAAP diluted net earnings per share	$	0.47		$	0.36		$0.11	$	1.44		$	1.13		$0.31
Free cash flow	$	526		$	924		$(398)	$	1,457		$	337		$1,120

Each non-GAAP measure has been reconciled to the most directly comparable GAAP measure herein. Please refer to the section "GAAP to Non-GAAP Reconciliations" included in this MD&A for these reconciliations, usefulness of non-GAAP financial measures, and material limitations associated with the use of non-GAAP financial measures.

Returning capital to our shareholders remains an important part of capital allocation framework that consist of capital returns to shareholders and strategic investments. During the third quarter of fiscal 2021, we paid a quarterly dividend of $0.12 per share to our shareholders. On September 2, 2021 we declared our fiscal 2021 fourth quarterly dividend of $0.12 per share, payable on or about October 6, 2021, to stockholders of record as of the close of business on September 13, 2021. We temporarily suspended our share repurchases due to global economic uncertainty created by COVID-19, and as such, no purchases were made during the nine months ended July 31, 2021. However, we expect to resume share repurchase activity in the fourth quarter of fiscal 2021. As of July 31, 2021, we had a remaining authorization of $2.1 billion for future share repurchases.

41

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Management's Discussion and Analysis of

Financial Condition and Results of Operations (Continued)

We believe our existing balances of cash, cash equivalents and marketable securities, along with commercial paper and other short-term liquidity arrangements, are sufficient to satisfy our working capital needs, capital asset purchases, dividends, debt repayments and other liquidity requirements associated with our existing operations. As of July 31, 2021, our cash, cash equivalents and restricted cash were $5.7 billion, compared to the October 31, 2020 balance of $4.6 billion. We maintain a $4.75 billion five year senior unsecured committed credit facility that was entered into in August 2019. As of July 31, 2021 no borrowings were outstanding under this credit facility.

Trends and Uncertainties

We are in the process of addressing many challenges facing our business, including effects of COVID-19, a discussion of which is available in sections entitled "Risk Factors" in Item 1A of Part I and "Trends and Uncertainties" in Item 7 of our Annual Report on Form 10-K for the fiscal year ended October 31, 2020.

Updates to the COVID-19 response included in 10-K for the fiscal year ended October 31, 2020

COVID-19 vaccines are now broadly distributed and administered, and starting October 4, 2021, in the U.S., HPE will require proof of vaccination for team members, contingent workers, and guests returning to HPE sites, where permitted by local laws and regulations. This policy also applies to HPE-sponsored and third-party events. HPE is committed to help support costs for the vaccine through HPE health benefits or other programs, to the extent not covered by government programs, medical plans or other sources.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

Management's Discussion and Analysis of Financial Condition and Results of Operations is based on our Condensed Consolidated Financial Statements, which have been prepared in accordance with United States ("U.S.") Generally Accepted Accounting Principles ("GAAP"). The preparation of these financial statements requires management to make estimates, judgments and assumptions that affect the reported amounts of assets, liabilities, net revenues and expenses, and disclosure of contingent liabilities. Estimates are assessed each period and updated to reflect current information, such as the economic considerations related to the impact that COVID-19 could have on our significant accounting estimates. Significant estimates that are based on a forecast include inventory reserves, provision for taxes, valuation allowance for deferred taxes, and impairment assessment of goodwill, intangible assets and other long-lived assets. The Company believes that these estimates, judgements and assumptions are reasonable under the circumstances, and are subject to significant uncertainties, some of which are beyond the Company’s control. Should any of these estimates change, it could adversely affect Company’s results of operations. Additionally, as the extent and duration of the impacts from COVID-19 remain unclear, the Company’s estimates, judgements and assumptions may evolve as conditions change. Management believes that there have been no significant changes during the nine months ended July 31, 2021, with the exception of certain accounting policies that were updated resulting from our adoption of the Current Expected Credit Losses standard (See Note 1 in Item 1, "Overview and Summary of Significant Accounting Policies"), to the items that we disclosed as our critical accounting policies and estimates in Management's Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the fiscal year ended October 31, 2020.

ACCOUNTING PRONOUNCEMENTS

For a summary of recent accounting pronouncements applicable to our Condensed Consolidated Financial Statements, see Note 1 in Item 1, "Overview and Summary of Significant Accounting Policies".

RESULTS OF OPERATIONS

Revenue from our international operations has historically represented, and we expect will continue to represent, a majority of our overall net revenue. As a result, our revenue growth has been impacted, and we expect will continue to be impacted, by fluctuations in foreign currency exchange rates. In order to provide a framework for assessing performance excluding the impact of foreign currency fluctuations, we present the year-over-year percentage change in revenue on a constant currency basis, which assumes no change in foreign currency exchange rates from the prior-year period and does not adjust for any repricing or demand impacts from changes in foreign currency exchange rates. This change in revenue on a constant currency basis is calculated as the quotient of (a) current year revenue converted to U.S. dollars using the prior-year period's foreign currency exchange rates divided by (b) the prior-year period revenue. This information is provided so that revenue can be viewed without the effect of fluctuations in foreign currency exchange rates, which is consistent with how management evaluates our revenue results and trends. This constant currency disclosure is provided in addition to, and not as a

42

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Management's Discussion and Analysis of

Financial Condition and Results of Operations (Continued)

substitute for, the year-over-year percentage change in revenue on a GAAP basis. Other companies may calculate and define similarly labeled items differently, which may limit the usefulness of this measure for comparative purposes.

Results of operations in dollars and as a percentage of net revenue were as follows:

	Three Months Ended July 31,								Nine Months Ended July 31,
	2021				2020				2021				2020
	Dollars		% of Revenue		Dollars		% of Revenue		Dollars		% of Revenue		Dollars		% of Revenue
	Dollars in millions
Net revenue	$	6,897	100.0	%	$	6,816	100.0	%	$	20,430	100.0	%	$	19,774	100.0	%
Cost of sales	4,515		65.5		4,749		69.7		13,473		65.9		13,511		68.3
Gross profit	2,382		34.5		2,067		30.3		6,957		34.1		6,263		31.7
Research and development	506		7.3		455		6.7		1,477		7.2		1,390		7.0
Selling, general and administrative	1,291		18.7		1,131		16.6		3,649		17.9		3,458		17.6
Amortization of intangible assets	82		1.2		95		1.4		276		1.4		299		1.4
Impairment of goodwill	—		—		—		—		—		—		865		4.4
Transformation costs	213		3.1		357		5.2		733		3.6		646		3.3
Disaster charges	5		0.1		2		—		6		—		24		0.1
Acquisition, disposition and other related charges	3		—		15		0.2		34		0.2		55		0.3
Earnings (loss) from operations	282		4.1		12		0.2		782		3.8		(474)		(2.4)
Interest and other, net	(50)		(0.8)		(71)		(1.0)		(105)		(0.5)		(158)		(0.8)
Tax indemnification and related adjustments	76		1.2		(30)		(0.5)		60		0.3		(86)		(0.5)
Non-service net periodic benefit credit	19		0.3		28		0.4		53		0.3		101		0.5
Earnings from equity interests	79		1.1		27		0.4		109		0.5		50		0.3
Earnings (loss) before taxes	406		5.9		(34)		(0.5)		899		4.4		(567)		(2.9)
(Provision) benefit for taxes	(14)		(0.2)		43		0.6		(25)		(0.1)		88		0.5
Net earnings (loss)	$	392	5.7	%	$	9	0.1	%	$	874	4.3	%	$	(479)	(2.4)	%

Stock-based compensation expense is included within costs and expenses presented in the table above as follows:

	Three Months Ended July 31,				Nine Months Ended July 31,
	2021		2020		2021		2020
	In millions
Cost of sales	$	9	$	8	$	33	$	30
Research and development	28		16		96		62
Selling, general and administrative	49		31		165		123
Acquisition, disposition and other related charges	—		—		10		1
Total	$	86	$	55	$	304	$	216

On April 14, 2021 (the "Approval Date"), shareholders of the Company approved the Hewlett Packard Enterprise Company 2021 Stock Incentive Plan (the "2021 Plan") that replaced the Company’s 2015 Stock Incentive Plan (the “2015 Plan”). The 2021 Plan provides for the grant of various types of awards including restricted stock awards, stock options and performance-based awards. These awards generally vest over 3 years from the grant date. The maximum number of shares that may be delivered to the participants under the 2021 Plan shall not exceed 7 million shares, plus 35.8 million shares that were available for grant under the 2015 Plan as of the Approval Date and any awards granted under the 2015 Plan prior to the Approval Date that were cash-settled, forfeited, terminated or lapsed after the Approval Date. As of July 31, 2021, the Company had remaining authorization of 42.7 million shares under the 2021 Plan.

43

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Management's Discussion and Analysis of

Financial Condition and Results of Operations (Continued)

Net Revenue

For the three months ended July 31, 2021, total net revenue was $6.9 billion, increased by $81 million, or 1.2% (decreased 1.9% on a constant currency basis), as compared to the prior-year period. U.S. net revenue decreased by $125 million, or 5.3%, to $2.2 billion, and net revenue from outside of the U.S. increased by $206 million, or 4.6%, to $4.7 billion. For the nine months ended July 31, 2021, total net revenue was $20.4 billion, increased by $656 million, or 3.3% (increased 1.2% on a constant currency basis), as compared to the prior-year period. U.S. net revenue decreased by $153 million, or 2.3%, to $6.4 billion, and net revenue from outside of the U.S. increased by $809 million, or 6.1%, to $14.0 billion.

The net revenue increase for the three and nine months ended July 31, 2021, as compared to the prior-year periods, was due to multiple factors which include strong momentum of revenue growth in our Switching product offerings, additional revenue from the Silver Peak acquisition, favorable demand environment, achievement of more customer acceptance milestones and growth in software-defined offerings, partially offset by decrease in unit shipments resulting from material constraints. Additionally, the general weakening of the U.S. dollar relative to certain foreign currencies during the three and nine months ended July 31, 2021 compared to prior-year periods, had a favorable impact on net revenue.

From a segment perspective, for the three months ended July 31, 2021, as compared to the prior-year period, we experienced net revenue increase in all the segments except Compute, primarily led by Intelligent Edge and HPC & MCS segments. The net revenue increase for the nine months ended July 31, 2021, as compared to the prior-year period was driven by all segments, except Compute which declined slightly year over year. The components of the weighted net revenue change by segment were as follows:

	Three Months Ended July 31, 2021	Nine Months Ended July 31, 2021
	Percentage points
Compute	(4.5)	(0.1)
HPC & MCS	1.1	0.4
Storage	0.7	0.2
Intelligent Edge	2.7	2.0
Financial Services	0.5	0.2
Corporate Investments and Other	0.4	0.2
Total Segment	0.9	2.9
Elimination of Intersegment net revenue	0.3	0.4
Total HPE	1.2	3.3

Please refer to the section "Segment Information" below for the discussion of the segment result on each of our reportable segments.

Gross Profit

For the three and nine months ended July 31, 2021, as compared to the prior-year periods, total gross profit margin increased 4.2 and 2.4 percentage points respectively. The gross profit margin increase for both periods were due primarily to disciplined pricing, lower supply chain overhead costs, and favorable currency fluctuations, partially offset by higher variable compensation expense.

Research and Development

R&D expense increased by $51 million, or 11% for the three months ended July 31, 2021, as compared to the prior-year period, due primarily to on-going expenses from business acquisitions and higher employee compensation expense in the current year period.

R&D expense increased by $87 million, or 6% for the nine months ended July 31, 2021, as compared to the prior-year period, due primarily to higher employee compensation expense and on-going expenses from business acquisitions, partially offset by the cost savings achieved as we rationalize our R&D through transformation programs by focusing investment in growth areas.

44

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Management's Discussion and Analysis of

Financial Condition and Results of Operations (Continued)

Selling, General and Administrative

Selling, general and administrative expense increased by $160 million, or 14%, and by $191 million, or 6%, for the three and nine months ended July 31, 2021, respectively, as compared to the prior-year periods, due primarily to higher investment in sales and marketing, unfavorable currency fluctuations, on-going expenses from business acquisitions, and higher employee compensation expense, partially offset by cost savings achieved through our transformation programs. For the nine months ended July 31, 2021, the increase in expense is also partially offset by lower travel expenses as compared to the prior-year period.

Amortization of Intangible Assets

Amortization of intangible assets decreased by $13 million, or 14%, and by $23 million, or 8%, for the three and nine months ended July 31, 2020, respectively, as compared to the prior-year periods, due to certain intangible assets associated with prior acquisitions reaching the end of their amortization period and higher write-off of certain intangible assets in the prior-year period, partially offset by an increase in the amortization of intangible assets from recent acquisitions.

Impairment of Goodwill

Impairment of goodwill for the nine months ended July 31, 2020, represents a partial goodwill impairment charge of $865 million 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.

We performed an interim quantitative goodwill impairment test for all of our reporting units as of November 1, 2020, which did not result in any goodwill impairment charges. The fair value of all reporting units continued to exceed the carrying value of their net assets and did not result in impairment. The excess of fair value over carrying value for our reporting units ranged from approximately 8% to 37% of the respective carrying values. In order to evaluate the sensitivity of the estimated fair value of our reporting units in the goodwill impairment test, we applied a hypothetical 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 HPC & MCS reporting unit. Should economic conditions deteriorate, estimates of future cash flows for each of our reporting units may be insufficient to support the carrying value and the goodwill assigned to them, requiring impairment charges. Further impairment charges, if any, may be material to the results of operations and financial position. We will continue to evaluate the recoverability of goodwill on an annual basis as of the beginning of its fourth fiscal quarter and whenever events or changes in circumstances indicate there may be a potential impairment.

Transformation Costs

Transformation programs are comprised of the cost optimization and prioritization plan we introduced in May 2020, and the HPE Next Initiative.

Transformation costs decreased by $144 million, or 40%, for the three months ended July 31, 2021, as compared to the prior-year period, due primarily to lower restructuring charges recorded in the current year period, partially offset by higher IT costs in the current year period.

Transformation costs increased by $87 million or 13%, for the nine months ended July 31, 2021, as compared to the prior-year period, due primarily to higher IT costs and program management charges recorded in the current year, and lower gains on real estate sales, partially offset by lower restructuring charges.

See Note 3, "Transformation Programs", for discussion on the Transformation Costs.

Disaster Charges

Disaster charges decreased by $18 million, or 75%, for the nine months ended July 31, 2021, as compared with the prior-year period, due primarily to higher direct costs resulting from COVID-19 for HPE hosted, co-hosted, or sponsored events which were converted to a virtual format or cancelled in the prior-year period.

Acquisition, Disposition and Other Related Charges

Acquisition, disposition and other related charges decreased by $12 million, or 80%, and by $21 million, or 38%, for the three and nine months ended July 31, 2021, respectively, as compared with the prior-year periods, due primarily to lower business acquisition costs related to retention bonuses and integration activities in the current year periods.

45

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Management's Discussion and Analysis of

Financial Condition and Results of Operations (Continued)

Interest and Other, Net

Interest and other, net expense decreased by $21 million for the three months ended July 31, 2021, as compared to the prior-year period, due primarily to lower interest expense from lower average borrowings, higher gain on the sale of certain assets and interest income on the recovery of two Brazilian social contribution taxes, partially offset by unfavorable currency fluctuations in the current period.

Interest and other, net expense decreased by $53 million for the nine months ended July 31, 2021, as compared to the prior-year period, due primarily to higher gains from equity investments, lower unfavorable currency fluctuations, lower interest expense from lower average borrowings, and interest income on the recovery of two Brazilian social contribution taxes, partially offset by lower gain on the sale of certain assets in the current year period.

Tax Indemnification and Related Adjustments

We recorded changes in certain pre-Separation tax liabilities for which we shared joint and several liability with HP Inc. and for which we were indemnified under the Termination and Mutual Release Agreement within Tax Indemnification and related Adjustments. We also record changes to certain pre-Separation and pre-divestiture tax liabilities and tax receivables for which we remain liable on behalf of the separated or divested business, but which may not be subject to indemnification.

We recorded tax indemnification income of $76 million and tax indemnification expense of $30 million for the three months ended July 31, 2021 and 2020, respectively, and tax indemnification income of $60 million and tax indemnification expense of $86 million for the nine months ended July 31, 2021 and 2020, respectively.

For the three and nine months ended July 31, 2021, the amount primarily included the impacts of a Brazilian Supreme Court decision received regarding the base on which PIS and COFINS are imposed. As a result of this decision, the Company is entitled to recover credits and associated interest related to the overpayment of these transaction taxes imposed between 2005 and 2019 to be used to offset future Brazilian tax liabilities. As such, we have recorded benefits of $16 million and $72 million, both net of taxes, for the recovery of PIS and COFINS, respectively, during the third quarter of fiscal 2021, of which $26 million was included in Net revenue, $12 million related to interest income was included in Interest and other, net, and $78 million related to pre-Separation liabilities was included in Tax indemnification and related adjustments. The corresponding income taxes of $28 million as a result of this recovery were included in (Provision) benefit for taxes in the Condensed Consolidated Statement of Earnings.

For the nine months ended July 31, 2021 and 2020, these amounts also resulted from changes in certain pre-Separation tax liabilities for which we share joint and several liability with HP Inc. and for which we are indemnified under the Termination and Mutual Release Agreement and changes to certain pre-Separation and pre-divestiture tax liabilities and tax receivables.

Non-service Net Periodic Benefit

Non-service net periodic benefit credit decreased by $9 million and $48 million for the three and nine months ended July 31, 2021, as compared to the prior-year periods, due primarily to lower expected returns on plan assets.

Earnings from Equity Interests

Earnings from equity interests primarily represents our 49% interest in H3C Technologies' ("H3C") earnings and the amortization of our interest in a basis difference. For the three and nine months ended July 31, 2021, earnings from equity interests increased by $52 million and $59 million, respectively, as compared to the prior-year periods, due to higher net income earned by H3C and gains from certain venture investments.

(Provision) Benefit for Taxes

For the three and nine months ended July 31, 2021, we recorded income tax expense of $14 million and $25 million, respectively, which reflect an effective tax rate of 3.4% and 2.8%, respectively. For the three and nine months ended July 31, 2020, the Company recorded income tax benefit of $43 million and $88 million, respectively, which reflect an effective tax rate of 126.5% and 15.5%, respectively. Our effective tax rate generally differs from the U.S. federal statutory rate of 21% due to favorable tax rates associated with certain earnings from our operations in lower tax jurisdictions throughout the world but may also be materially impacted by discrete tax adjustments during the fiscal year. The effective tax rate for the nine months ended July 31, 2020 also included the effects of the non-deductible goodwill impairment.

See Note 5, "Taxes on Earnings", for discussion on provision for taxes.

46

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Management's Discussion and Analysis of

Financial Condition and Results of Operations (Continued)

Segment Information

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 ("CEO"), uses to evaluate, view and run our business operations, which include, but are not limited to, customer base and homogeneity of products and technology. The segments are based on this organizational structure and information reviewed by Hewlett Packard Enterprise's management to evaluate segment results.

As described in Item 1, Note 1, "Overview and Summary of Significant Accounting Policies", effective at the beginning of the first quarter of fiscal 2021, we (a) excluded stock-based compensation expense from our segment earnings from operations; and (b) implemented certain organizational changes to align our segment financial reporting more closely with our current business structure. As a result of these organizational changes, our operations are now organized into six segments for financial reporting purposes: Compute, HPC & MCS, Storage, Intelligent Edge, FS, and Corporate Investments and Other. The Corporate Investments and Other Segment now includes the A & PS operating segment, the Communications and Media Solutions operating segment, the Software operating segment, and the Hewlett Packard Enterprise Labs which is responsible for research and development. We reflected these changes in our 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. These changes had no impact on Hewlett Packard Enterprise's previously reported consolidated results.

Segment Results

The following provides an overview of our key financial metrics by segment for the three months ended July 31, 2021, as compared to the prior-year period:

	Compute			HPC & MCS			Storage			Intelligent Edge			Financial Services			Corporate Investments and Other			HPE Consolidated
Net revenue(1)	$	3,104		$	741		$	1,176		$	867		$	844		$	332		$	6,897
Year-over-year change %	(8.9)		%	11.1		%	3.9		%	26.8		%	4.1		%	9.6		%	1.2		%
Earnings (loss) from operations(2)	$	347		$	29		$	178		$	137		$	94		$	(28)		$	282
Earnings (loss) from operations as a % of net revenue	11.2		%	3.9		%	15.1		%	15.8		%	11.1		%	(8.4)		%	4.1		%
Year-over-year change percentage points	1.9 pts			(3.1) pts			0.1 pts			5.4 pts			3.0 pts			14.0 pts			3.9 pts

The following provides an overview of our key financial metrics by segment for the nine months ended July 31, 2021, as compared to the prior-year period:

	Compute			HPC & MCS			Storage			Intelligent Edge			Financial Services			Corporate Investments and Other			HPE Consolidated
Net revenue(1)	$	9,066		$	2,188		$	3,506		$	2,472		$	2,543		$	1,003		$	20,430
Year-over-year change %	(0.3)		%	3.5		%	1.0		%	19.5		%	1.6		%	4.7		%	3.3		%
Earnings (loss) from operations(2)	$	1,024		$	91		$	604		$	413		$	269		$	(84)		$	782
Earnings (loss) from operations as a % of net revenue	11.3		%	4.2		%	17.2		%	16.7		%	10.6		%	(8.4)		%	3.8		%
Year-over-year change percentage points	2.5 pts			(3.2) pts			0.1 pts			5.1 pts			1.9 pts			9.6 pts			6.2 pts

(1)HPE consolidated net revenue excludes intersegment net revenue.

(2)Segment earnings from operations exclude certain unallocated corporate costs and eliminations, stock-based compensation expense, amortization of initial direct costs, amortization of intangible assets, transformation costs, disaster charges and acquisition, disposition and other related charges.

47

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Management's Discussion and Analysis of

Financial Condition and Results of Operations (Continued)

Compute

	Three Months Ended July 31, 2021
	2021			2020			% Change
	Dollars in millions
Net revenue	$	3,104		$	3,409		(8.9)	%
Earnings from operations	$	347		$	318		9.1	%
Earnings from operations as a % of net revenue	11.2		%	9.3		%

	Nine Months Ended July 31, 2021
	2021			2020			% Change
	Dollars in millions
Net revenue	$	9,066		$	9,094		(0.3)	%
Earnings from operations	$	1,024		$	797		28.5	%
Earnings from operations as a % of net revenue	11.3		%	8.8		%

Three months ended July 31, 2021 compared with three months ended July 31, 2020

Compute net revenue decreased by $305 million, or 8.9% (decreased 11.8% on a constant currency basis), for the three months ended July 31, 2021 as compared to the prior-year period. Net revenue in Compute decreased primarily due to a decrease in unit shipments resulting from material constraints partially offset by higher average unit prices and favorable currency fluctuations. Prior year period also included the impact of additional unit shipments due to elevated backlog entering the quarter.

Compute earnings from operations as a percentage of net revenue increased 1.9 percentage points for the three months ended July 31, 2021, as compared to the prior-year period, due to a decrease in costs of products and services as a percentage of net revenue partially offset by an increase in operating expense as a percentage of net revenue. The decrease in costs of products and services as a percentage of net revenue was primarily due to favorable currency fluctuations, disciplined pricing, lower supply chain overhead costs and favorable product mix partially offset by higher variable compensation expense. The increase in operating expense as a percentage of net revenue was primarily due to strategic investments and higher variable compensation expense.

Nine months ended July 31, 2021 compared with nine months ended July 31, 2020

Compute net revenue decreased by $28 million, or 0.3% (decreased 2.3% on a constant currency basis), for the nine months ended July 31, 2021 as compared to the prior-year period. Net revenue in Compute decreased primarily due to a decrease in unit shipments resulting from material constraints. This was partially offset by higher average unit prices and favorable currency fluctuations. In additional prior year third quarter also reflected higher unit shipments as a result of elevated backlog entering the quarter.

Compute earnings from operations as a percentage of net revenue increased 2.5 percentage points for the nine months ended July 31, 2021, as compared to the prior-year period, due to decreases in costs of products and services as a percentage of net revenue and operating expenses as a percentage of net revenue. The decrease in costs of products and services as a percentage of net revenue was primarily due to lower supply chain overhead costs, favorable currency fluctuations and disciplined pricing partially offset by variable compensation expense. The decrease in operating expense as a percentage of net revenue was primarily due to cost savings from our transformation programs partially offset by higher variable compensation expense.

48

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Management's Discussion and Analysis of

Financial Condition and Results of Operations (Continued)

HPC & MCS

	Three Months Ended July 31,
	2021			2020			% Change
	Dollars in millions
Net revenue	$	741		$	667		11.1	%
Earnings from operations	$	29		$	47		(38.3)	%
Earnings from operations as a % of net revenue	3.9		%	7.0		%

	Nine Months Ended July 31,
	2021			2020			% Change
	Dollars in millions
Net revenue	$	2,188		$	2,113		3.5	%
Earnings from operations	$	91		$	156		(41.7)	%
Earnings from operations as a % of net revenue	4.2		%	7.4		%

Three months ended July 31, 2021 compared with three months ended July 31, 2020

HPC & MCS net revenue increased by $74 million, or 11.1% (increased 9.4% on a constant currency basis), for the three months ended July 31, 2021, as compared to the prior-year period, primarily due to favorable demand environment, eased competitive pricing pressures, favorable foreign currency fluctuations and as we achieved more customer acceptance milestones.

HPC & MCS earnings from operations as a percentage of net revenue decreased 3.1 percentage points for the three months ended July 31, 2021, as compared to the prior-year period, primarily due to increases in cost of products and services as a percentage of net revenue and operating expenses as a percentage of net revenue. The increase in cost of products and services as a percentage of net revenue was primarily due to lower mix of revenue from services and high-margin MCS products partially offset by lower competitive pricing pressures and savings from our transformation programs. The increase in operating expenses as a percentage of net revenue was primarily due to higher field selling costs partially offset by cost savings from our transformation programs.

Nine months ended July 31, 2021 compared with nine months ended July 31, 2020

HPC & MCS net revenue increased by $75 million or 3.5% (increased 2.7% on a constant currency basis), for the nine months ended July 31, 2021, as compared to the prior-year period, as we achieved more customer acceptance milestones.

HPC & MCS earnings from operations as a percentage of net revenue decreased 3.2 percentage points for the nine months ended July 31, 2021, as compared to the prior-year period, primarily due to increases in cost of products and services as a percentage of net revenue and operating expenses as a percentage of net revenue. The increase in cost of products and services as a percentage of net revenue was primarily due to competitive pricing pressures during the first half of fiscal 2021, higher variable compensation expense along with lower mix of revenue from services and high-margin MCS products partially offset by cost savings from our transformation programs. The increase in operating expenses as a percentage of net revenue was primarily due to higher field selling costs and variable compensation expense partially offset by cost savings from our transformation programs.

49

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Management's Discussion and Analysis of

Financial Condition and Results of Operations (Continued)

Storage

	Three Months Ended July 31,
	2021			2020			% Change
	Dollars in millions
Net revenue	$	1,176		$	1,132		3.9	%
Earnings from operations	$	178		170			4.7	%
Earnings from operations as a % of net revenue	15.1		%	15.0		%

	Nine Months Ended July 31,
	2021			2020			% Change
	Dollars in millions
Net revenue	$	3,506		$	3,470		1.0	%
Earnings from operations	$	604		$	592		2.0	%
Earnings from operations as a % of net revenue	17.2		%	17.1		%

Three months ended July 31, 2021 compared with three months ended July 31, 2020

Storage net revenue increased by $44 million or 3.9% (increased 1.1% on a constant currency basis), for the three months ended July 31, 2021 as compared to the prior-year period due primarily to favorable currency fluctuations and revenue growth in HPE Primera products and Storage Services, partially offset by revenue decline in HPE 3PAR products as we continue our transition to more software-rich products in the hyperconverged portfolio and primary storage market. The increase in Storage net revenue was also favorably impacted by a large deal in Traditional Storage.

Storage earnings from operations as a percentage of net revenue increased 0.1 percentage point for the three months ended July 31, 2021, as compared to the prior-year period, due to a decrease in cost of products and services as a percentage of net revenue, partially offset by an increase in operating expenses as a percentage of net revenue. The decrease in cost of products and services as a percentage of net revenue was due primarily to a higher margin large deal for HPE Primera and favorable currency fluctuations, the effects of which were partially offset by higher competitive pricing pressures and customer satisfaction settlement. The increase in operating expenses as a percentage of net revenue was due primarily to higher variable compensation expense and field selling costs.

Nine months ended July 31, 2021 compared with nine months ended July 31, 2020

Storage net revenue increased by $36 million or 1.0% (decreased 0.8% on a constant currency basis), for the nine months ended July 31, 2021 as compared to the prior-year period due primarily to favorable currency fluctuations and growth in HPE Primera products, Nimble Storage, and Storage Services, partially offset by revenue decline in HPE 3PAR and Simplivity products as we continue our transition to more software-rich products in the hyperconverged portfolio and primary storage market respectively. Storage net revenue in the first nine months of fiscal 2021 was also favorably impacted by a large deal in Traditional Storage.

Storage earnings from operations as a percentage of net revenue increased 0.1 percentage point for the nine months ended July 31, 2021, as compared to the prior-year period, due to a decrease in cost of products and services as a percentage of net revenue, partially offset by an increase in operating expenses as a percentage of net revenue. The decrease in cost of products and services as a percentage of net revenue was due primarily to favorable currency fluctuations, lower supply chain overhead costs, higher margin large deal for HPE Primera, and lower delivery cost in storage service, the effects of which were partially offset by higher variable compensation expense. The increase in operating expenses as a percentage of net revenue was due primarily to higher variable compensation expense.

50

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Management's Discussion and Analysis of

Financial Condition and Results of Operations (Continued)

Intelligent Edge

	Three Months Ended July 31,
	2021			2020			% Change
	Dollars in millions
Net revenue	$	867		$	684		26.8	%
Earnings from operations	$	137		$	71		93.0	%
Earnings from operations as a % of net revenue	15.8		%	10.4		%

	Nine Months Ended July 31,
	2021			2020			% Change
	Dollars in millions
Net revenue	$	2,472		$	2,069		19.5	%
Earnings from operations	$	413		$	240		72.1	%
Earnings from operations as a % of net revenue	16.7		%	11.6		%

Three months ended July 31, 2021 compared with three months ended July 31, 2020

Intelligent Edge net revenue increased by $183 million, or 26.8% (increased 23.0% on a constant currency basis), for the three months ended July 31, 2021, as compared to the prior-year period primarily due to revenue growth in switching products, additional revenue from the Silver Peak acquisition, and favorable foreign currency fluctuations.

Intelligent Edge earnings from operations as a percentage of net revenue increased 5.4 percentage points for the three months ended July 31, 2021 as compared to the prior year period due primarily to a decrease in cost of products and services as a percentage of net revenue while operating expenses as a percentage of net revenue remained relatively flat. The decrease in cost of product and services as a percentage of net revenue was primarily due to lower cost of Switching products, favorable supply chain costs and impact of the Silver Peak acquisition partially offset by lower mix of revenue from services and higher variable compensation expense. Operating expenses as a percentage of net revenue remained relatively flat primarily due to improved operational efficiencies including cost savings from transformation programs offset by higher variable compensation expense, additional expenses from the Silver Peak acquisition and a legal settlement.

Nine months ended July 31, 2021 compared with nine months ended July 31, 2020

Intelligent Edge net revenue increased by $403 million, or 19.5% (increased 16.8% on a constant currency basis), for the nine months ended July 31, 2021, as compared to the prior-year period primarily due to revenue growth in Switching and WLAN products, additional revenue from the Silver Peak acquisition, and favorable foreign currency fluctuations.

Intelligent Edge earnings from operations as a percentage of net revenue increased 5.1 percentage points for the nine months ended July 31, 2021 as compared to the prior year period due primarily to decreases in operating expenses as a percentage of net revenue and cost of products and services as a percentage of net revenue. The decrease in cost of product and services as a percentage of net revenue was primarily due to lower cost of Switching and WLAN products, and the favorable impact of the Silver Peak acquisition partially offset by higher variable compensation expense and logistics expense. The decrease in operating expenses as a percentage of net revenue was primarily due to improved operational efficiencies including cost savings from transformation programs partially offset by higher variable compensation expense and the addition of expenses from the Silver Peak acquisition.

Financial Services

	Three Months Ended July 31,
	2021			2020			% Change
	Dollars in millions
Net revenue	$	844		$	811		4.1	%
Earnings from operations	$	94		$	66		42.4	%
Earnings from operations as a % of net revenue	11.1		%	8.1		%

51

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Management's Discussion and Analysis of

Financial Condition and Results of Operations (Continued)

	Nine Months Ended July 31,
	2021			2020			% Change
	Dollars in millions
Net revenue	$	2,543		$	2,503		1.6	%
Earnings from operations	$	269		$	218		23.4	%
Earnings from operations as a % of net revenue	10.6		%	8.7		%

Three months ended July 31, 2021 compared with three months ended July 31, 2020

FS net revenue increased by $33 million, or 4.1% (decreased 0.2% on a constant currency basis), for the three months ended July 31, 2021, as compared to the prior-year period. The increase in net revenue was due primarily to favorable currency fluctuations, partially offset by a decrease in rental revenue due to lower average operating lease assets.

FS earnings from operations as a percentage of net revenue increased 3.0 percentage points for the three months ended July 31, 2021, as compared to the prior-year period, due primarily to lower cost of services as a percentage of net revenue. The decrease to cost of services as a percentage of net revenue resulted primarily from lower borrowing costs, partially offset by higher bad debt expense. The operating expenses as a percentage of net revenue remained relatively flat.

Nine months ended July 31, 2021 compared with nine months ended July 31, 2020

FS net revenue increased by $40 million, or 1.6% (decreased 1.3% on a constant currency basis), for the nine months ended July 31, 2021, as compared to the prior-year period. The increase in net revenue was due primarily to favorable currency fluctuations, partially offset by a decrease in rental revenue due to lower average operating lease assets, along with lower asset management revenue from lease buyouts.

FS earnings from operations as a percentage of net revenue increased 1.9 percentage points for the nine months ended July 31, 2021, as compared to the prior-year period, due primarily to lower cost of services as a percentage of net revenue. The decrease to cost of services as a percentage of net revenue resulted from lower borrowing costs and lower depreciation expense, partially offset by higher bad debt expense. The operating expenses as a percentage of net revenue remained relatively flat.

Financing Volume

	Three Months Ended July 31,				Nine Months Ended July 31,
	2021		2020		2021		2020
	In millions
Financing volume	$	1,575	$	1,491	$	4,271	$	4,392

Financing volume, which represents the amount of financing provided to customers for equipment and related software and services, including intercompany activity, increased by 5.6% and decreased by 2.8% for the three and nine months ended July 31, 2021 respectively, as compared to the prior-year periods. For the three months ended July 31, 2021, the increase was primarily driven by favorable currency fluctuations. For the nine months ended July 31, 2021, the decrease was primarily related to lower financing associated with both third-party and HPE product sales and related service offerings, partially offset by favorable currency fluctuations.

52

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Management's Discussion and Analysis of

Financial Condition and Results of Operations (Continued)

Portfolio Assets and Ratios

The portfolio assets and ratios derived from the segment balance sheets for FS were as follows:

	As of
	July 31, 2021			October 31, 2020
	Dollars in millions
Financing receivables, gross	$	9,007		$	9,058
Net equipment under operating leases	3,943			4,027
Capitalized profit on intercompany equipment transactions(1)	271			315
Intercompany leases(1)	86			92
Gross portfolio assets	13,307			13,492
Allowance for credit losses(2)	234			154
Operating lease equipment reserve	44			64
Total reserves	278			218
Net portfolio assets	$	13,029		$	13,274
Reserve coverage	2.1		%	1.6		%
Debt-to-equity ratio(3)	7.0x			7.0x

(1)Intercompany activity is eliminated in consolidation.

(2)Allowance for credit losses for financing receivables includes both the short- and long-term portions.

(3)Debt benefiting FS consists of intercompany equity that is treated as debt for segment reporting purposes, intercompany debt, and borrowing- and funding-related activity associated with FS and its subsidiaries. Debt benefiting FS totaled $11.7 billion at both July 31, 2021 and October 31, 2020, and was determined by applying an assumed debt-to-equity ratio, which management believes to be comparable to that of other similar financing companies. FS equity at both July 31, 2021 and October 31, 2020 was $1.7 billion.

As of July 31, 2021 and October 31, 2020, FS net cash and cash equivalents balances were approximately $976 million and $729 million, respectively.

Net portfolio assets as of July 31, 2021 decreased 1.8% from October 31, 2020. The decrease generally resulted from portfolio runoff exceeding new financing volume during the period, partially offset by favorable currency fluctuations.

FS bad debt expense includes charges to general reserves, specific reserves and write-offs for sales-type, direct-financing and operating leases. For the three and nine months ended July 31, 2021, FS recorded net bad debt expense of $30 million and $89 million, respectively. For the three and nine months ended July 31, 2020, FS recorded net bad debt expense of $25 million and $58 million, respectively.

As of July 31, 2021, FS experienced a decrease in billed finance receivables compared to October 31, 2020, which included limited impact to collections from customers as a result of COVID-19. We are currently unable to fully predict the extent to which COVID-19 may adversely impact future collections of our receivables.

Corporate Investments and Other

	Three Months Ended July 31,
	2021			2020			% Change
	Dollars in millions
Net revenue	$	332		$	303		9.6	%
Loss from operations	$	(28)		$	(68)		58.8	%
Loss from operations as a % of net revenue	(8.4)		%	(22.4)		%

53

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Management's Discussion and Analysis of

Financial Condition and Results of Operations (Continued)

	Nine Months Ended July 31,
	2021			2020			% Change
	Dollars in millions
Net revenue	$	1,003		$	958		4.7	%
Loss from operations	$	(84)		$	(172)		51.2	%
Loss from operations as a % of net revenue	(8.4)		%	(18.0)		%

Three months ended July 31, 2021 compared with three months ended July 31, 2020

Corporate Investments and Other net revenue increased by $29 million, or 9.6% (increased 6.9% on a constant currency basis), for the three months ended July 31, 2021 as compared to the prior-year period. The increase in net revenue was due primarily to revenue growth from A & PS, Software and Communications and Media Solutions ("CMS") and favorable currency fluctuations.

Corporate Investments and Other loss from operations as a percentage of net revenue decreased 14.0 percentage points for the three months ended July 31, 2021, as compared to the prior-year period. The decrease was due to lower cost of services as a percentage of net revenue and a decrease in operating expenses as a percentage of net revenue. The decrease in cost of services as a percentage of net revenue was primarily due to overhead efficiencies achieved through our transformation programs. The decrease in operating expenses as a percentage of net revenue was primarily due to cost savings from transformation programs.

Nine months ended July 31, 2021 compared with nine months ended July 31, 2020

Corporate Investments and Other net revenue increased by $45 million, or 4.7% (increased 2.1% on a constant currency basis), for the nine months ended July 31, 2021 as compared to the prior-year period primarily due to favorable currency fluctuations and revenue growth from Software and CMS.

Corporate Investments and Other loss from operations as a percentage of net revenue decreased 9.6 percentage points for the nine months ended July 31, 2021, as compared to the prior-year period. The decrease was due to lower cost of services as a percentage of net revenue and a decrease in operating expenses as a percentage of net revenue, primarily due to cost savings from transformation programs.

LIQUIDITY AND CAPITAL RESOURCES

We use cash generated by operations as our primary source of liquidity. We believe that internally generated cash flows will be generally sufficient to support our operating businesses, capital expenditures, product development initiatives, acquisitions and disposal activities including legal settlements, restructuring activities, transformation costs, indemnifications, maturing debt, interest payments, and income tax payments, in addition to any future investments, share repurchases and stockholder dividend payments. We expect to supplement this short-term liquidity, if necessary, by accessing the capital markets, issuing commercial paper, and borrowing under credit facilities made available by various domestic and foreign financial institutions. However, our access to capital markets may be constrained and our cost of borrowing may increase under certain business, market and economic conditions. We continue to monitor the severity and duration of the COVID-19 pandemic and its impact on the U.S. and other global economies, the capital markets, consumer behavior, our businesses, results of operations, financial condition and cash flows. Our liquidity is subject to various risks including the risks identified in the section entitled "Risk Factors" in Item 1A of Part II and market risks identified in the section entitled "Quantitative and Qualitative Disclosures about Market Risk" in Item 3 of Part I.

Our cash and cash equivalent balances are held in numerous locations throughout the world, with a majority of the amount held outside the U.S. We utilize a variety of planning and financing strategies in an effort to ensure that our worldwide cash is available when and where it is needed. Our cash position is strong and we expect that our cash and cash equivalent balances, anticipated cash flow generated from operations and access to capital markets will be sufficient to cover our expected near-term cash outlays.

Amounts held outside of the U.S. are generally utilized to support our non-U.S. liquidity needs. Repatriations of amounts held outside the U.S. generally will not be taxable from a U.S. federal tax perspective, but may be subject to state income or foreign withholding tax. Where local restrictions prevent an efficient intercompany transfer of funds, our intent is to keep cash balances outside of the U.S. and to meet liquidity needs through ongoing cash flows, external borrowings, or both. We do not

54

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Management's Discussion and Analysis of

Financial Condition and Results of Operations (Continued)

expect restrictions or potential taxes incurred on repatriation of amounts held outside of the U.S. to have a material effect on our overall liquidity, financial condition or results of operations.

As a result of increased uncertainty due to COVID-19, purchases under our share repurchase program previously authorized by our Board of Directors, were temporarily suspended and as such, no purchases were made during the nine months ended July 31, 2021. However, we expect to resume share repurchase activity in the fourth quarter of fiscal 2021. As of July 31, 2021, we had a remaining authorization of $2.1 billion for future share repurchases.

Liquidity

Our cash flow metrics were as follows:

	Nine Months Ended July 31,
	2021		2020
	In millions
Net cash provided by operating activities	$	2,915	$	1,493
Net cash used in investing activities	(1,717)		(1,154)
Net cash (used in) provided by financing activities	(167)		4,522
Net increase in cash, cash equivalents and restricted cash	$	1,031	$	4,861

Operating Activities

For the nine months ended July 31, 2021, net cash from operating activities increased by $1.4 billion, as compared to the corresponding period in fiscal 2020. The increase was primarily due to higher cash generated from working capital and higher earnings.

Our working capital metrics and cash conversion impacts were as follows:

	As of			As of
	July 31, 2021	October 31, 2020	Change	July 31, 2020	October 31, 2019	Change	Y/Y Change
Days of sales outstanding in accounts receivable ("DSO")	43	42	1	38	37	1	5
Days of supply in inventory ("DOS")	79	48	31	66	45	21	13
Days of purchases outstanding in accounts payable ("DPO")	(130)	(97)	(33)	(114)	(104)	(10)	(16)
Cash conversion cycle	(8)	(7)	(1)	(10)	(22)	12	2

The cash conversion cycle is the sum of DSO and DOS less DPO. Items which may cause the cash conversion cycle in a particular period to differ include, but are not limited to, changes in business mix, changes in payment terms (including extended payment terms to customers or from suppliers), early or late invoice payments from customers or to suppliers, the extent of receivables factoring, seasonal trends, the timing of the revenue recognition and inventory purchases within the period, the impact of commodity costs and acquisition activity.

DSO measures the average number of days our receivables are outstanding. DSO is calculated by dividing ending accounts receivable, net of allowance for doubtful accounts, by a 90-day average of net revenue. Compared to the corresponding three month period in fiscal 2020, the increase in DSO in the current period was primarily due to lower customer participation in early payment programs and factoring.

DOS measures the average number of days from procurement to sale of our products. DOS is calculated by dividing ending inventory by a 90-day average of cost of goods sold. Compared to the corresponding three month period in fiscal 2020, the increase in DOS in the current period was primarily due to higher purchases of inventory as we position inventory to fulfill planned future shipments and strategic purchases of certain key components.

DPO measures the average number of days our accounts payable balances are outstanding. DPO is calculated by dividing ending accounts payable by a 90-day average of cost of goods sold. Compared to the corresponding three month period in fiscal 2020, the increase in DPO was primarily due to lower vendor payments in the current period.

55

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Management's Discussion and Analysis of

Financial Condition and Results of Operations (Continued)

Investing Activities

For the nine months ended July 31, 2021, net cash used in investing activities increased by $0.6 billion, as compared to the corresponding period in fiscal 2020. The increase was primarily due to higher cash utilized for investment in property, plant and equipment, net of sales proceeds of $0.3 billion, higher cash utilized in net financial collateral activities of $0.2 billion and higher payments made in connection with business acquisitions, net of $0.1 billion as compared to the prior year period.

Financing Activities

For the nine months ended July 31, 2021, net cash generated from financing activities decreased by $4.7 billion, as compared to the corresponding period in fiscal 2020. The decrease was primarily due to lower proceeds from debt issuance of $4.1 billion, higher cash utilized for debt repayment of $1.0 billion and cash utilized for share repurchases of $0.4 billion in the prior year period.

Free Cash Flow

Free cash flow is defined as cash flow from operations less investments in property, plant and equipment net of proceeds from the sale of property, plant and equipment. For the nine months ended July 31, 2021, free cash flow increased by $1.1 billion, as compared to the corresponding period in fiscal 2020. The increase was due to higher cash generated from operations of $1.4 billion as compared to the prior year period, partially offset by higher cash utilized for investment in property, plant and equipment, net of sales proceeds of $0.3 billion.

Capital Resources

We maintain debt levels that we establish through consideration of a number of factors, including cash flow expectations, cash requirements for operations, investment plans (including acquisitions), share repurchase activities, our cost of capital and targeted capital structure.

In June 2021, the Company issued $753 million of asset-backed debt securities in six tranches at a weighted average price of 99.99% and a weighted average interest rate of 0.58%, payable monthly from August 2021 with a stated final maturity date of March 2029.

In March 2021, the Company repaid $500 million of three-month USD LIBOR plus 0.68% Senior Notes on their original maturity date.

In March 2021, the Company issued $1.0 billion of asset-backed debt securities in six tranches at a weighted average price of 99.99% and a weighted average interest rate of 0.49%, payable monthly from April 2021 with a stated final maturity date of March 2031.

In December 2020, we filed a shelf registration statement with the Securities and Exchange Commission that allows us to sell, at any time and from time to time, in one or more offerings, debt securities, preferred stock, common stock, warrants, depository shares, purchase contracts, guarantees or units consisting of any of these securities.

Commercial Paper

We maintain two commercial paper programs, "the Parent Programs", and a wholly-owned subsidiary maintains a third program. Our U.S. program provides for the issuance of U.S. dollar-denominated commercial paper up to a maximum aggregate principal amount of $4.75 billion. Our euro commercial paper program provides for the issuance of commercial paper outside of the U.S. denominated in U.S. dollars, euros or British pounds up to a maximum aggregate principal amount of $3.0 billion or the equivalent in those alternative currencies. The combined aggregate principal amount of commercial paper outstanding under those two programs at any one time cannot exceed $4.75 billion. In addition, our subsidiary's euro Commercial Paper/Certificate of Deposit Program provides for the issuance of commercial paper in various currencies of up to a maximum aggregate principal amount of $1.0 billion. As of July 31, 2021 and October 31, 2020, no borrowings were outstanding under the Parent Programs, and $694 million and $677 million, respectively, were outstanding under our subsidiary’s program.

During the first nine months of fiscal 2021, we issued $584 million and repaid $582 million of commercial paper.

56

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Management's Discussion and Analysis of

Financial Condition and Results of Operations (Continued)

Revolving Credit Facility

We maintain a $4.75 billion five year senior unsecured committed credit facility that was entered into in August 2019. Loans under the revolving credit facility may be used for general corporate purposes, including support of the commercial paper program. Commitments under the Credit Agreement are available for a period of five years, which period may be extended, subject to the satisfaction of certain conditions, by up to two, one-year periods. Commitment fees, interest rates and other terms of borrowing under the credit facility vary based on Hewlett Packard Enterprise's external credit rating. As of July 31, 2021 and October 31, 2020, no borrowings were outstanding under the Credit Agreement.

Available Borrowing Resources

We had the following additional liquidity resources available if needed:

	As of July 31, 2021
	In millions
Commercial paper programs	$	5,056
Uncommitted lines of credit	$	1,034

CONTRACTUAL AND OTHER OBLIGATIONS

Contractual Obligations

On September 7, 2021, the Company expects to redeem all $500 million aggregate principal amount of its outstanding 3.5% Notes due October 2021, and all $800 million aggregate principal amount of its outstanding Floating Rate Notes due October 2021.

On July 1, 2021, the Company entered into a definitive agreement to acquire Zerto, an industry leader in cloud data management and protection, in a transaction valued at $374 million. The transaction closed on August 31, 2021.

In June 2021, the Company issued $753 million of asset-backed debt securities in six tranches at a weighted average price of 99.99% and a weighted average interest rate of 0.58%, payable monthly from August 2021 with a stated final maturity date of March 2029.

In March 2021, we repaid $500 million of three-month USD LIBOR plus 0.68% Senior Notes on their original maturity date.

In March 2021, we issued $1.0 billion of asset-backed debt securities in six tranches at a weighted average price of 99.99% and a weighted average interest rate of 0.49%, payable monthly from April 2021 with a stated final maturity date of March 2031.

Other than the above, our contractual obligations have not changed materially since October 31, 2020. For further information see "Contractual and Other Obligations" in Item 7 of Part II of our Annual Report on Form 10-K for the fiscal year ended October 31, 2020.

Retirement Benefit Plan Funding

For the remainder of fiscal 2021, we anticipate making contributions of approximately $46 million to our non-U.S. pension plans. Our policy is to fund our pension plans so that we meet at least the minimum contribution requirements, as established by various authorities including local government and tax authorities.

Restructuring Plans

As of July 31, 2021, we expect to make future cash payments of approximately $870 million in connection with our approved restructuring plans, which includes $140 million expected to be paid through the remainder of fiscal 2021 and $730 million expected to be paid thereafter. For more information on our restructuring activities, see Note 3, "Transformation Programs".

57

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Management's Discussion and Analysis of

Financial Condition and Results of Operations (Continued)

Uncertain Tax Positions

As of July 31, 2021, we had approximately $438 million of recorded liabilities and related interest and penalties pertaining to uncertain tax positions. These liabilities and related interest and penalties include $61 million expected to be paid within one year. For the remaining amount, we are unable to make a reasonable estimate as to when cash settlement with tax authorities might occur due to the uncertainties related to these tax matters. Payments of these obligations would result from settlements with tax authorities. For more information on our uncertain tax positions, see Note 5, "Taxes on Earnings".

Off-Balance Sheet Arrangements

As part of our ongoing business, we have not participated in transactions that generate material relationships with unconsolidated entities or financial partnerships, such as entities often referred to as structured finance or special purpose entities, established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes.

We have third-party revolving short-term financing arrangements intended to facilitate the working capital requirements of certain customers. For more information on our third-party revolving short-term financing arrangements, see Note 6, "Balance Sheet Details", to the Consolidated Financial Statements in Item 1 of Part I, which is incorporated herein by reference.

GAAP to Non GAAP Reconciliations

Effective at the beginning of the first quarter of fiscal 2021, the Company excluded stock-based compensation expense from its segment earnings from operations results and excluded stock-based compensation expense from non-GAAP results. The Company has reflected this change retrospectively to its financial results for the earliest period presented. This change had no impact on Hewlett Packard Enterprise's previously reported consolidated GAAP results. However, the Company reflected the change resulting from the reclassification of its stock-based compensation expense by restating its consolidated non-GAAP gross profit, non-GAAP gross profit margin, non-GAAP earnings from operations, non-GAAP operating profit margin, non-GAAP net earnings and non-GAAP net earnings per share.

The following tables provide reconciliation of GAAP to non-GAAP measures for the three and nine months ended July 31, 2021 and 2020:

Reconciliation of GAAP net earnings and diluted net earnings per share to non-GAAP net earnings and diluted net earnings per share.

	Three Months Ended July 31,								Nine Months Ended July 31,
	2021				2020				2021				2020
	Dollars in millions		Diluted net earnings per share		Dollars in millions		Diluted net earnings per share		Dollars in millions		Diluted net earnings per share		Dollars in millions		Diluted net earnings per share
GAAP net earnings (loss)	$	392	$	0.29	$	9	$	0.01	$	874	$	0.66	$	(479)	$	(0.37)
Non-GAAP adjustments:
Amortization of initial direct costs	2		—		3		—		6		—		9		—
Amortization of intangible assets	82		0.06		95		0.07		276		0.21		299		0.23
Impairment of goodwill	—		—		—		—		—		—		865		0.67
Transformation costs	213		0.16		357		0.27		733		0.56		646		0.49
Disaster charges	5		—		2		—		6		0.01		24		0.02
Stock-based compensation expense	86		0.06		55		0.04		294		0.22		215		0.18
Acquisition, disposition and other related charges	3		—		15		0.01		34		0.02		82		0.06
Tax indemnification and related adjustments	(76)		(0.05)		30		0.03		(60)		(0.05)		86		0.07
Non-service net periodic benefit credit	(19)		(0.01)		(28)		(0.02)		(53)		(0.04)		(101)		(0.08)
Earnings from equity interests(1)	23		0.02		36		0.03		91		0.07		110		0.09
Adjustments for taxes	(88)		(0.06)		(107)		(0.08)		(287)		(0.22)		(288)		(0.23)
Non-GAAP net earnings	$	623	$	0.47	$	467	$	0.36	$	1,914	$	1.44	$	1,468	$	1.13

58

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Management's Discussion and Analysis of

Financial Condition and Results of Operations (Continued)

(1) Represents the amortization of basis difference adjustments related to the H3C divestiture.

Reconciliation of GAAP earnings from operations and operating profit margin to non-GAAP earnings from operations and operating profit margin.

	Three Months Ended July 31,								Nine Months Ended July 31,
	2021				2020				2021				2020
	Dollars		% of Revenue		Dollars		% of Revenue		Dollars		% of Revenue		Dollars		% of Revenue
	In millions								In millions
GAAP earnings (loss) from operations	$	282	4.1	%	$	12	0.2	%	$	782	3.8	%	$	(474)	(2.4)	%
Non-GAAP adjustments:
Amortization of initial direct costs	2		—	%	3		—	%	6		—	%	9		—	%
Amortization of intangible assets	82		1.2	%	95		1.4	%	276		1.4	%	299		1.5	%
Impairment of goodwill	—		—	%	—		—	%	—		—	%	865		4.4	%
Transformation costs	213		3.1	%	357		5.3	%	733		3.6	%	646		3.3	%
Disaster charges	5		0.1	%	2		—	%	6		—	%	24		0.1	%
Stock-based compensation expense	86		1.2	%	55		0.8	%	294		1.4	%	215		1.1	%
Acquisition, disposition and other related charges	3		—	%	15		0.2	%	34		0.2	%	82		0.4	%
Non-GAAP earnings from operations	$	673	9.8	%	$	539	7.9	%	$	2,131	10.4	%	$	1,666	8.4	%

Reconciliation of GAAP gross profit and gross profit margin to non-GAAP gross profit and gross profit margin.

	Three Months Ended July 31,								Nine Months Ended July 31,
	2021				2020				2021				2020
	Dollars		% of Revenue		Dollars		% of Revenue		Dollars		% of Revenue		Dollars		% of Revenue
	In millions								In millions
GAAP Net revenue	$	6,897	100	%	$	6,816	100	%	$	20,430	100	%	$	19,774	100	%
GAAP Cost of sales	4,515		65.5	%	4,749		69.7	%	13,473		65.9	%	13,511		68.3	%
GAAP Gross profit	$	2,382	34.5	%	$	2,067	30.3	%	$	6,957	34.1	%	$	6,263	31.7	%
Non-GAAP adjustments
Amortization of initial direct costs	2		—	%	3		—	%	6		—	%	9		—	%
Stock-based compensation expense	9		0.2	%	8		0.2	%	33		0.2	%	30		0.2	%
Acquisition, disposition and other related charges(1)	—		—	%	—		—	%	—		—	%	27		0.1	%
Non-GAAP Gross Profit	$	2,393	34.7	%	$	2,078	30.5	%	$	6,996	34.2	%	$	6,329	32.0	%

(1) Represent charges related to a non-cash inventory fair value adjustment in connection with the acquisition of Cray, which was included in Cost of Sales.

59

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

Management's Discussion and Analysis of

Financial Condition and Results of Operations (Continued)

Reconciliation of net cash provided by operating activities to free cash flow.

	Three Months Ended July 31,				Nine Months Ended July 31,
	2021		2020		2021		2020
	In millions				In millions
Net cash provided by operating activities	$	1,130	$	1,472	$	2,915	$	1,493
Investment in property, plant and equipment	(684)		(620)		(1,732)		(1,779)
Proceeds from sale of property, plant and equipment	80		72		274		623
Free cash flow	$	526	$	924	$	1,457	$	337

Non-GAAP financial measures

The non-GAAP financial measures presented are net revenue on a constant currency basis, non-GAAP gross profit, non-GAAP gross profit margin, non-GAAP operating profit margin (non-GAAP earnings from operations as a percentage of net revenue), non-GAAP net earnings, non-GAAP diluted net earnings per share and free cash flow. These non-GAAP financial measures are used by management for purposes of evaluating our historical and prospective financial performance, as well as evaluating our performance relative to our competitors. These non-GAAP financial measures are not computed in accordance with, or as an alternative to, generally accepted accounting principles in the United States. The GAAP measure most directly comparable to net revenue on a constant currency basis is net revenue. The GAAP measure most directly comparable to non-GAAP gross profit is gross profit. The GAAP measure most directly comparable to non-GAAP gross profit margin is gross profit margin. The GAAP measure most directly comparable to non-GAAP earnings from operations is earnings from operations. The GAAP measure most directly comparable to non-GAAP operating profit margin (non-GAAP earnings from operations as a percentage of net revenue) is operating profit margin (Earnings from operations as a percentage of net revenue). The GAAP measure most directly comparable to non-GAAP net earnings is net earnings. The GAAP measure most directly comparable to non-GAAP diluted net earnings per share is diluted net earnings per share. The GAAP measure most directly comparable to free cash flow is cash flow from operations.

Net revenue on a constant currency basis assumes no change in the foreign exchange rate from the prior-year period. Non-GAAP gross profit and non-GAAP gross profit margin is defined to exclude charges related to the amortization of initial direct costs, stock-based compensation expense and certain acquisition, disposition and other related charges. Non-GAAP earnings from operations and non-GAAP operating profit margin (non-GAAP earnings from operations as a percentage of net revenue) consist of earnings from operations excluding any charges related to the amortization of initial direct costs, amortization of intangible assets, impairment of goodwill, transformation costs, disaster charges, stock-based compensation expense and acquisition, disposition and other related charges. Non-GAAP net earnings and Non-GAAP diluted net earnings per share consist of net earnings or diluted net earnings per share excluding those same charges, as well as items such as tax indemnification and related adjustments, non-service net periodic benefit credit, loss from equity interests, certain income tax valuation allowances and separation taxes, the impact of U.S. tax reform, structural rate adjustment and excess tax benefit from stock-based compensation. In addition, non-GAAP net earnings and non-GAAP diluted net earnings per share are adjusted by the amount of additional taxes or tax benefits associated with each non-GAAP item. We believe that excluding the items mentioned above from these non-GAAP financial measures allows management to better understand our consolidated financial performance in relation to the operating results of our segments. Management does not believe that the excluded items are reflective of ongoing operating results, and excluding them facilitates a more meaningful evaluation of our current operating performance in comparison to our peers. The excluded items can be inconsistent in amount and frequency and/or not reflective of the operational performance of the business.

These non-GAAP financial measures have limitations as analytical tools, and these measures should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. Some of the limitations in relying on these non-GAAP financial measures are that they can have a material impact on the equivalent GAAP earnings measures, they may be calculated differently by other companies and may not reflect the full economic effect of the loss in value of certain assets.

We compensate for these limitations on the use of non-GAAP financial measures by relying primarily on our GAAP results and using non-GAAP financial measures only as a supplement. We also provide a reconciliation of each non-GAAP financial measure to its most directly comparable GAAP measure. We believe that providing net revenue on a constant currency basis, non-GAAP gross profit, non-GAAP gross profit margin, non-GAAP earnings from operations, non-GAAP operating profit margin, non-GAAP net earnings and non-GAAP diluted net earnings per share in addition to the related GAAP measures provides greater transparency to the information used in our financial and operational decision making and allows the reader of our Condensed Consolidated Financial Statements to see our financial results “through the eyes” of management.

60

Item 3.    Quantitative and Qualitative Disclosures About Market Risk.

For quantitative and qualitative disclosures about market risk affecting HPE, see "Quantitative and Qualitative Disclosures About Market Risk" in Item 7A of Part II of our Annual Report on Form 10-K for the fiscal year ended October 31, 2020. There have been no material changes in our market risk exposures since October 31, 2020.

Item 4.    Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

Under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, we conducted an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act as of the end of the period covered by this report (the "Evaluation Date"). Based on this evaluation, our principal executive officer and principal financial officer concluded as of the Evaluation Date that our disclosure controls and procedures were effective such that the information related to the Company, including our consolidated subsidiaries, required to be disclosed in our SEC reports (i) is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms, and (ii) is accumulated and communicated to the Company's management, including our principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.

Changes in Internal Control Over Financial Reporting

There were no changes to our internal control over financial reporting during the quarter ended July 31, 2021, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II. OTHER INFORMATION

Item 1. Legal Proceedings.

Information with respect to this item may be found in Note 14, "Litigation and Contingencies".

Item 1A. Risk Factors.

Our operations and financial results are subject to various risks and uncertainties, including those described in Part I, Item 1A, "Risk Factors" in our Annual Report on Form 10-K for the fiscal period ended October 31, 2020, which could adversely affect our business, financial condition, results of operations, cash flows, and the trading price of our common stock.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

Recent Sales of Unregistered Securities

There were no unregistered sales of equity securities during the period covered by this report.

As of July 31, 2021, the Company had no unsettled open market repurchases and had a remaining authorization of $2.1 billion for future share repurchases.

Item 5. Other Information.

The following disclosure is being made under Section 13(r) of the Exchange Act:

On March 2, 2021, the U.S. Secretary of State designated the Russian Federal Security Service (“FSB”) as a party subject to the provisions of U.S. Executive Order No. 13382 issued in 2005 (“Executive Order 13382”). On the same day, the U.S. Department of the Treasury’s Office of Foreign Assets Control updated General License 1B (“General License 1B”) which generally authorizes U.S. companies to engage in certain licensing, permitting, certification, notification and related transactions with the FSB as may be required for the importation, distribution or use of information technology products in the Russian Federation. Our local subsidiary is required to engage on a regular basis with the FSB as a licensing authority and file documents in order to conduct business within the Russian Federation. There are no gross revenues or net profits directly associated with any such dealings by us with the FSB and all such dealings are explicitly authorized by General License 1B. We plan to continue these activities as required to continue to conduct business in the Russian Federation to the extent permitted by applicable law.

On April 15, 2021, the U.S. Government issued an executive order on Blocking Property with Respect to Specified Harmful Foreign Activities of the Government of the Russian Federation (“Executive Order 14024”), implementing additional U.S. sanctions against the Russian government and against Russian actors that threaten U.S. interests, including certain technology companies that support the Russian Intelligence Service. The U.S. Secretary of the Treasury designated Pozitiv Teknolodzhiz, AO (“Positive Technologies”) under Executive Order 14024 and Executive Order 13382. Prior to its designation, HPE’s local Russian subsidiary, occasionally through distributors and resellers, had sold equipment to and entered into service contracts with Positive Technologies. HPE’s local subsidiary had also entered into an original equipment manufacturing agreement with Positive Technologies and approved it as a reseller. Following the sanctions designation, our local subsidiary immediately initiated procedures to terminate its relationship with Positive Technologies. HPE does not plan to engage in any further transactions with this entity, except wind down activities that are authorized by OFAC going forward. In this reporting period HPE became aware of an additional payment to HPE Russia received from a third party involving Positive Technologies in the amount of $1,725. There are no identifiable net profits associated with HPE’s relationship with Positive Technologies for this reporting period.

For a summary of our revenue recognition policies, see "Revenue Recognition" described in PART II, Item 8, Note 1, "Overview and Summary of Significant Accounting Policies", of our Annual Report on Form 10-K for the fiscal year ended October 31, 2020.

Item 6. Exhibits.

The Exhibit Index beginning on page 63 of this report sets forth a list of exhibits.

62

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

EXHIBIT INDEX

		Incorporated by Reference
Exhibit Number	Exhibit Description	Form	File No.	Exhibit(s)	Filing Date
2.1	Separation and Distribution Agreement, dated as of October 31, 2015, by and among Hewlett-Packard Company, Hewlett Packard Enterprise Company and the Other Parties Thereto	8-K	001-37483	2.1	November 5, 2015
2.2	Transition Services Agreement, dated as of November 1, 2015, by and between Hewlett-Packard Company and Hewlett Packard Enterprise Company	8-K	001-37483	2.2	November 5, 2015
2.3	Employee Matters Agreement, dated as of October 31, 2015, by and between Hewlett-Packard Company and Hewlett Packard Enterprise Company	8-K	001-37483	2.4	November 5, 2015
2.4	Real Estate Matters Agreement, dated as of October 31, 2015, by and between Hewlett-Packard Company and Hewlett Packard Enterprise Company	8-K	001-37483	2.5	November 5, 2015
2.5	Master Commercial Agreement, dated as of November 1, 2015, by and between Hewlett-Packard Company and Hewlett Packard Enterprise Company	8-K	001-37483	2.6	November 5, 2015
2.6	Information Technology Service Agreement, dated as of November 1, 2015, by and between Hewlett-Packard Company and HP Enterprise Services, LLC	8-K	001-37483	2.7	November 5, 2015
2.7	Agreement and Plan of Merger, dated as of May 24, 2016, among Hewlett Packard Enterprise Company, Computer Sciences Corporation, Everett SpinCo, Inc. and Everett Merger Sub, Inc.	8-K	001-37483	2.1	May 26, 2016
2.8	Separation and Distribution Agreement, dated as of May 24, 2016, between Hewlett Packard Enterprise Company and Everett SpinCo, Inc.	8-K	001-37483	2.2	May 26, 2016
2.9	Agreement and Plan of Merger, dated as of September 7, 2016, by and among Hewlett Packard Enterprise Company, Micro Focus International plc, Seattle SpinCo, Inc., Seattle Holdings, Inc. and Seattle MergerSub, Inc.	8-K	001-37483	2.1	September 7, 2016
2.10	Separation and Distribution Agreement, dated as of September 7, 2016, by and between Hewlett Packard Enterprise Company and Seattle SpinCo, Inc.	8-K	001-37483	2.2	September 7, 2016
2.11	Employee Matters Agreement, dated as of September 7, 2016, by and among Hewlett Packard Enterprise Company, Seattle SpinCo, Inc. and Micro Focus International plc	8-K	001-37483	2.3	September 7, 2016
2.12	First Amendment to the Agreement and Plan of Merger, dated as of November 2, 2016, among Hewlett Packard Enterprise Company, Computer Sciences Corporation, Everett SpinCo, Inc., New Everett Merger Sub Inc., and Everett Merger Sub, Inc.	8-K	001-37483	2.1	November 2, 2016
2.13	First Amendment to the Separation and Distribution Agreement, dated as of November 2, 2016, between Hewlett Packard Enterprise Company and Everett SpinCo, Inc.	8-K	001-37483	2.2	November 2, 2016
2.14	Agreement and Plan of Merger, dated as of March 6, 2017, by and among Hewlett Packard Enterprise Company, Nimble Storage, Inc. and Nebraska Merger Sub, Inc.	8-K	001-37483	99.1	March 7, 2017
2.15	Tender and Support Agreement, dated as of March 6, 2017, by and among Hewlett Packard Enterprise Company, Nebraska Merger Sub, Inc. and each of the persons set forth on Schedule A thereto	8-K	001-37483	99.2	March 7, 2017

63

2.16	Employee Matters Agreement, dated March 31, 2017, by and among Computer Sciences Corporation, Hewlett Packard Enterprise Company and Everett SpinCo, Inc.	8-K	001-38033	2.1	April 6, 2017
2.17	Tax Matters Agreement, dated March 31, 2017, by and among Computer Sciences Corporation, Hewlett Packard Enterprise Company and Everett SpinCo, Inc.	8-K	001-38033	2.2	April 6, 2017
2.18	IP Matters Agreement, dated March 31, 2017, by and among Hewlett Packard Enterprise Company, Hewlett Packard Enterprise Development LP and Everett SpinCo, Inc.	8-K	001-38033	2.3	April 6, 2017
2.19	Transition Services Agreement, dated March 31, 2017, between Hewlett Packard Enterprise Company and Everett SpinCo, Inc.	8-K	001-38033	2.4	April 6, 2017
2.20	Real Estate Matters Agreement, dated March 31, 2017, between Hewlett Packard Enterprise Company and Everett SpinCo, Inc.	8-K	001-38033	2.5	April 6, 2017
2.21	Fourth Amendment to the Separation and Distribution Agreement, dated March 31, 2017, by and between Hewlett Packard Enterprise Company and Everett SpinCo, Inc.	8-K	001-38033	2.6	April 6, 2017
2.22	Tax Matters Agreement, dated September 1, 2017, by and among Hewlett Packard Enterprise Company, Seattle SpinCo, Inc., and Micro Focus International plc	8-K	001-37483	2.1	September 1, 2017
2.23	Intellectual Property Matters Agreement, dated September 1, 2017,  by and among Hewlett Packard Enterprise Company, Hewlett Packard Enterprise Development LP, and Seattle SpinCo, Inc.	8-K	001-37483	2.2	September 1, 2017
2.24	Transition Services Agreement, dated September 1, 2017,  by and among Hewlett Packard Enterprise Company and Seattle SpinCo, Inc.	8-K	001-37483	2.3	September 1, 2017
2.25	Real Estate Matters Agreement, dated September 1, 2017,  by and among Hewlett Packard Enterprise Company and Seattle SpinCo, Inc.	8-K	001-37483	2.4	September 1, 2017
2.26	Agreement and Plan of Merger, dated as of May 16, 2019, by and among Hewlett Packard Enterprise Company, Cray Inc. and Canopy Merger Sub, Inc.	8-K	001-37483	2.1	May 17, 2019
2.27	Agreement and Plan of Merger, dated as of July 11, 2020, by and among Hewlett Packard Enterprise Company, Santorini Merger Sub, Inc., Silver Peak Systems, Inc., and certain other parties thereto	8-K	001-37483	2.1	July 13, 2020
3.1	Registrant's Amended and Restated Certificate of Incorporation	8-K	001-37483	3.1	November 5, 2015
3.2	Registrant's Amended and Restated Bylaws effective October 31, 2015	8-K	001-37483	3.2	November 5, 2015
3.3	Certificate of Designation of Series A Junior Participating Redeemable Preferred Stock of Hewlett Packard Enterprise Company	8-K	001-37483	3.1	March 20, 2017
3.4	Certificate of Designation of Series B Junior Participating Redeemable Preferred Stock of Hewlett Packard Enterprise Company	8-K	001-37483	3.2	March 20, 2017
4.1	Indenture, dated as of October 9, 2015, between Hewlett Packard Enterprise Company and The Bank of New York Mellon Trust Company, N.A., as Trustee	8-K	001-37483	4.1	October 13, 2015
4.2	Fourth Supplemental Indenture, dated as of October 9, 2015, between Hewlett Packard Enterprise Company and The Bank of New York Mellon Trust Company, N.A., as Trustee, relating to Hewlett Packard Enterprise Company's 4.400% notes due 2022	8-K	001-37483	4.5	October 13, 2015

64

4.3	Fifth Supplemental Indenture, dated as of October 9, 2015, between Hewlett Packard Enterprise Company and The Bank of New York Mellon Trust Company, N.A., as Trustee, relating to Hewlett Packard Enterprise Company's 4.900% notes due 2025	8-K	001-37483	4.6	October 13, 2015
4.4	Sixth Supplemental Indenture, dated as of October 9, 2015, between Hewlett Packard Enterprise Company and The Bank of New York Mellon Trust Company, N.A., as Trustee, relating to Hewlett Packard Enterprise Company's 6.200% notes due 2035	8-K	001-37483	4.7	October 13, 2015
4.5	Seventh Supplemental Indenture, dated as of October 9, 2015, between Hewlett Packard Enterprise Company and The Bank of New York Mellon Trust Company, N.A., as Trustee, relating to Hewlett Packard Enterprise Company's 6.350% notes due 2045	8-K	001-37483	4.8	October 13, 2015
4.6	Eleventh Supplemental Indenture, dated as of September 19, 2018, between Hewlett Packard Enterprise Company and The Bank of New York Mellon Trust Company, N.A., as Trustee, relating to Hewlett Packard Enterprise Company's 3.500% notes due 2021	8-K	001-37483	4.2	September 19, 2018
4.7	Twelfth Supplemental Indenture, dated as of September 19, 2018, between Hewlett Packard Enterprise Company and The Bank of New York Mellon Trust Company, N.A., as Trustee, relating to Hewlett Packard Enterprise Company's floating rate notes due 2021	8-K	001-37483	4.3	September 19, 2018
4.8	Thirteenth Supplemental Indenture, dated as of September 13, 2019, between Hewlett Packard Enterprise Company and The Bank of New York Mellon Trust Company, N.A., as trustee, relating to Hewlett Packard Enterprise Company's 2.250% notes due 2023	8-K	001-37483	4.2	September 13, 2019
4.9	Fourteenth Supplemental Indenture, dated as of September 13, 2019, between Hewlett Packard Enterprise Company and The Bank of New York Mellon Trust Company, N.A., as trustee, relating to Hewlett Packard Enterprise Company's floating rate Notes due 2021	8-K	001-37483	4.3	September 13, 2019
4.10	Fifteenth Supplemental Indenture, dated as of April 9, 2020, between Hewlett Packard Enterprise Company and The Bank of New York Mellon Trust Company, N.A., as Trustee, relating to Hewlett Packard Enterprise Company's 4.450% notes due 2023	8-K	001-37483	4.2	April 9, 2020
4.11	Sixteenth Supplemental Indenture, dated as of April 9, 2020, between Hewlett Packard Enterprise Company and The Bank of New York Mellon Trust Company, N.A., as Trustee, relating to Hewlett Packard Enterprise Company's 4.650% notes due 2024	8-K	001-37483	4.3	April 9, 2020
4.12	Seventeenth Supplemental Indenture, dated as of July 17, 2020, between Hewlett Packard Enterprise Company and The Bank of New York Mellon Trust Company, N.A., as Trustee, relating to Hewlett Packard Enterprise Company's 1.450% notes due 2024	8-K	001-37483	4.2	July 17, 2020
4.13	Eighteenth Supplemental Indenture, dated as of July 17, 2020, between Hewlett Packard Enterprise Company and The Bank of New York Mellon Trust Company, N.A., as Trustee, relating to Hewlett Packard Enterprise Company''s 1.750% notes due 2026	8-K	001-37483	4.3	July 17, 2020
4.14	Registration Rights Agreement, dated as of October 9, 2015, among Hewlett Packard Enterprise Company, Hewlett-Packard Company, and the representatives of the initial purchasers of the Notes	8-K	001-37483	4.12	October 13, 2015

65

4.15	Form of Indenture between Hewlett Packard Enterprise Company and The Bank of New York Mellon Trust Company, N.A., as Trustee	S-3ASR	333-222102	4.5	December 15, 2017
4.16	Description of the Registrant's Securities Registered Pursuant to Section 12 of the Securities Exchange Act of 1934	10-K	001-37483	4.16	December 10, 2020
10.1	Hewlett Packard Enterprise Company 2015 Stock Incentive Plan (amended and restated January 25, 2017)*	8-K	001-37483	10.1	January 30, 2017
10.2	Hewlett Packard Enterprise Company 2021 Stock Incentive Plan*	S-8	333-255839	4.4	May 6, 2021
10.3	Hewlett Packard Enterprise Company Severance and Long-Term Incentive Change in Control Plan for Executive Officers*	10-12B/A	001-37483	10.4	September 28, 2015
10.4	Hewlett Packard Enterprise Grandfathered Executive Deferred Compensation Plan*	S-8	333-207679	4.4	October 30, 2015
10.5	Form of Non-Qualified Stock Option Grant Agreement*	8-K	001-37483	10.4	November 5, 2015
10.6	Form of Restricted Stock Units Grant Agreement*	8-K	001-37483	10.7	November 5, 2015
10.7	Form of Performance-Contingent Non-Qualified Stock Option Grant Agreement*	8-K	001-37483	10.8	November 5, 2015
10.8	Form of Non-Employee Director Stock Options Grant Agreement*	8-K	001-37483	10.9	November 5, 2015
10.9	Form of Non-Employee Director Restricted Stock Unit Grant Agreement*	8-K	001-37483	10.10	November 5, 2015
10.10	Form of Restricted Stock Units Grant Agreement, as amended and restated effective January 1, 2016*	10-Q	001-37483	10.14	March 10, 2016
10.11	Form of Performance-Adjusted Restricted Stock Units Grant Agreement, as amended and restated effective January 1, 2016*	10-Q	001-37483	10.15	March 10, 2016
10.12	Description of Amendment to Equity Awards (incorporated by reference to Item 5.02 of the 8-K filed on May 26, 2016)*	8-K	001-37483	10.1	May 26, 2016
10.13	Niara, Inc. 2013 Equity Incentive Plan*	S-8	333-216481	4.3	March 6, 2017
10.14	Nimble Storage, Inc. 2008 Equity Incentive Plan, as amended*	S-8	333-217349	4.3	April 18, 2017
10.15	Nimble Storage, Inc. 2013 Equity Incentive Plan (Amended and Restated May 23, 2014)*	S-8	333-217349	4.4	April 18, 2017
10.16	SimpliVity Corporation 2009 Stock Plan*	S-8	333-217438	4.3	April 24, 2017
10.17	Silicon Graphics International Corp. 2005 Equity Incentive Plan, as amended*	10-K	000-51333	10.3	September 10, 2012
10.18	Cloud Technology Partners, Inc. 2011 Equity Incentive Plan*	S-8	333-221254	4.3	November 1, 2017
10.19	Amendment to the Cloud Technology Partners, Inc. 2011 Equity Incentive Plan*	S-8	333-221254	4.4	November 1, 2017
10.20	Plexxi Inc. 2011 Stock Plan*	S-8	333-226181	4.3	July 16, 2018
10.21	Hewlett Packard Enterprise Company 2015 Employee Stock Purchase Plan (as amended and restated on July 18, 2018, effective as of October 8, 2015)	10-Q	001-37483	10.29	September 4, 2018
10.22	Form of Restricted Stock Units Grant Agreement	10-Q	001-37483	10.30	September 4, 2018
10.23	Hewlett Packard Enterprise Executive Deferred Compensation Plan (as amended and restated December 1, 2018)*	10-K	001-37483	10.27	December 12, 2018
10.24	First Amendment to the Hewlett Packard Enterprise Company Severance and Long-Term Incentive Change in Control Plan for Executive Officers*	10-K	001-37483	10.29	December 12, 2018
10.25	BlueData Software Inc. 2012 Stock Incentive Plan*	S-8	333-229449	4.3	January 31, 2019

66

10.26	Aircraft Time Sharing Agreement, dated as of December 13, 2019, by and between Hewlett Packard Enterprise and Antonio Neri*	10-Q	001-37483	10.32	March 9, 2020
10.27	Five-Year Credit Agreement dated as of August 16, 2019, by and among Hewlett Packard Enterprise Company, the lenders Party thereto, JPMorgan Chase Bank, N.A., as Administrative Processing Agent and Co-Administrative Agent and Citibank, N.A., as Co-Administrative Agent	8-K	001-37483	10.1	August 20, 2019
10.28	Cray Inc. 2013 Equity Incentive Plan (as amended and restated June 11, 2019)*	S-8	333-234033	4.3	October 1, 2019
10.29	Termination and Mutual Release Agreement dated as of October 30, 2019 by and between Hewlett Packard Enterprise Company and HP Inc.	10-K	001-37483	10.31	December 13, 2019
10.30	Silver Peak Systems, Inc. (fka Cheyenne Networks, Inc.) 2004 Stock Plan, as amended*	S-8	333-249731	4.3	October 29, 2020
10.31	Silver Peak Systems, Inc. 2014 Equity Incentive Plan, as amended*	S-8	333-249731	4.4	October 29, 2020
10.32	Offer Letter between Hewlett Packard Enterprise Company and Peter Ungaro dated May 16, 2019*	10-Q	001-37483	10.31	March 4, 2021
10.33	Transition and Separation Agreement dated March 1, 2021 by and between Peter Ungaro and Hewlett Packard Enterprise Company*	10-Q	001-37483	10.32	March 4, 2021
31.1	Certification of Chief Executive Officer pursuant to Rule 13a- 14(a) and Rule 15d-14(a) of the Securities Exchange Act of 1934, as amended‡
31.2	Certification of Chief Financial Officer pursuant to Rule 13a- 14(a) and Rule 15d-14(a) of the Securities Exchange Act of 1934, as amended‡
32	Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002†
101.INS	Inline XBRL Instance Document‡
101.SCH	Inline XBRL Taxonomy Extension Schema Document‡
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document‡
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document‡
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document‡
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document‡
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

*    Indicates management contract or compensation plan, contract or arrangement

‡    Filed herewith

†    Furnished herewith

The registrant agrees to furnish to the Commission supplementally upon request a copy of any instrument with respect to long-term debt not filed herewith as to which the total amount of securities authorized thereunder does not exceed 10% of the total assets of the registrant and its subsidiaries on a consolidated basis.

67

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

HEWLETT PACKARD ENTERPRISE COMPANY

/s/ TAREK A. ROBBIATI

Tarek A. Robbiati

 Executive Vice President and Chief Financial Officer

(Principal Financial Officer and Authorized

Signatory)

Date: September 3, 2021

68

EX-31.1

Exhibit 31.1

CERTIFICATION

I, Antonio F. Neri, certify that:

1.    I have reviewed this Quarterly Report on Form 10-Q of Hewlett Packard Enterprise Company;

2.    Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.    Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.    The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.    The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: September 3, 2021

/s/ ANTONIO F. NERI

Antonio F. Neri

President and Chief Executive Officer

(Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Tarek A. Robbiati, certify that:

1.    I have reviewed this Quarterly Report on Form 10-Q of Hewlett Packard Enterprise Company;

2.    Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.    Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.    The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures, and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.    The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: September 3, 2021

/s/ TAREK A. ROBBIATI

Tarek A. Robbiati

Executive Vice President and Chief Financial Officer

(Principal Financial Officer)

EX-32

Exhibit 32

CERTIFICATION

OF

CHIEF EXECUTIVE OFFICER

AND

CHIEF FINANCIAL OFFICER

PURSUANT TO 18 U.S.C. 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, Antonio F. Neri, certify, pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the Quarterly Report on Form 10-Q of Hewlett Packard Enterprise Company for the third quarter ended July 31, 2021, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that information contained in such Quarterly Report on Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of Hewlett Packard Enterprise Company.

Date: September 3, 2021

By:	/s/ ANTONIO F. NERI
	Antonio F. Neri President and Chief Executive Officer

I, Tarek A. Robbiati, certify, pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the Quarterly Report on Form 10-Q of Hewlett Packard Enterprise Company for the third quarter ended July 31, 2021, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that information contained in such Quarterly Report on Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of Hewlett Packard Enterprise Company.

Date: September 3, 2021

By:	/s/ TAREK A. ROBBIATI
	Tarek A. Robbiati Executive Vice President and Chief Financial Officer

A signed original of this written statement required by Section 906 has been provided to Hewlett Packard Enterprise Company and will be retained by Hewlett Packard Enterprise Company and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Cover Page - shares	9 Months Ended
	Jul. 31, 2021	Aug. 30, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jul. 31, 2021
Document Transition Report	false
Entity File Number	001-37483
Entity Registrant Name	HEWLETT PACKARD ENTERPRISE CO
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	47-3298624
Entity Address, Address Line One	11445 Compaq Center West Drive,
Entity Address, City or Town	Houston,
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	77070
City Area Code	(650)
Local Phone Number	687-5817
Title of 12(b) Security	Common stock, par value $0.01 per share
Trading Symbol	HPE
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		1,308,050,014
Entity Central Index Key	0001645590
Amendment Flag	false
Current Fiscal Year End Date	--10-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3

XML

Condensed Consolidated Statements of Earnings (Unaudited) - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Jul. 31, 2021	Jul. 31, 2020	Jul. 31, 2021	Jul. 31, 2020
Net revenue:
Financing income	$ 125	$ 115	$ 371	$ 343
Total net revenue	6,897	6,816	20,430	19,774
Costs and expenses:
Financing interest	51	65	164	209
Research and development	506	455	1,477	1,390
Selling, general and administrative	1,291	1,131	3,649	3,458
Amortization of intangible assets	82	95	276	299
Impairment of goodwill	0	0	0	865
Transformation costs	213	357	733	646
Disaster charges	5	2	6	24
Acquisition, disposition and other related charges	3	15	34	55
Total costs and expenses	6,615	6,804	19,648	20,248
Earnings (loss) from operations	282	12	782	(474)
Interest and other, net	(50)	(71)	(105)	(158)
Tax indemnification and related adjustments	76	(30)	60	(86)
Non-service net periodic benefit credit	19	28	53	101
Earnings from equity interests	79	27	109	50
Earnings (loss) before taxes	406	(34)	899	(567)
(Provision) benefit for taxes	(14)	43	(25)	88
Net earnings (loss)	$ 392	$ 9	$ 874	$ (479)
Net earnings (loss) per share:
Basic (in dollars per share)	$ 0.30	$ 0.01	$ 0.67	$ (0.37)
Diluted (in dollars per share)	$ 0.29	$ 0.01	$ 0.66	$ (0.37)
Weighted-average shares used to compute net earnings (loss) per share:
Basic (in shares)	1,314	1,292	1,308	1,294
Diluted (in shares)	1,338	1,300	1,328	1,294
Products
Net revenue:
Revenues	$ 4,230	$ 4,193	$ 12,365	$ 11,760
Costs and expenses:
Cost of products and services	2,908	3,088	8,567	8,376
Services
Net revenue:
Revenues	2,542	2,508	7,694	7,671
Costs and expenses:
Cost of products and services	$ 1,556	$ 1,596	$ 4,742	$ 4,926

XML

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jul. 31, 2021	Jul. 31, 2020	Jul. 31, 2021	Jul. 31, 2020
Statement of Comprehensive Income [Abstract]
Net earnings (loss)	$ 392	$ 9	$ 874	$ (479)
Change in net unrealized gains (losses) on available-for-sale securities:
Net unrealized gains (losses) arising during the period	1	6	(1)	0
(Gains) losses reclassified into earnings	0	(1)	0	(8)
Change in net unrealized gains (losses) on available-for-sale securities	1	5	(1)	(8)
Change in net unrealized gains (losses) on cash flow hedges:
Net unrealized gains (losses) arising during the period	101	(456)	(183)	(85)
Net (gains) losses reclassified into earnings	(36)	242	262	(41)
Change in net unrealized gains (losses) on cash flow hedges	65	(214)	79	(126)
Change in unrealized components of defined benefit plans:
Net unrealized gains (losses) arising during the period	6	(19)	29	(10)
Amortization of net actuarial loss and prior service benefit	70	61	212	183
Curtailments, settlements and other	0	7	2	8
Change in unrealized components of defined benefit plans	76	49	243	181
Change in cumulative translation adjustment	2	1	20	(46)
Other comprehensive income (loss) before taxes	144	(159)	341	1
(Provision) benefit for taxes	(13)	28	(33)	13
Other comprehensive income (loss), net of taxes	131	(131)	308	14
Comprehensive income (loss)	$ 523	$ (122)	$ 1,182	$ (465)

XML

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions	Jul. 31, 2021	Oct. 31, 2020
Current assets:
Cash and cash equivalents	$ 5,293	$ 4,233
Accounts receivable, net of allowances	3,297	3,386
Financing receivables, net of allowances	3,814	3,794
Inventory	3,942	2,674
Assets held for sale	1	77
Other current assets	2,398	2,392
Total current assets	18,745	16,556
Property, plant and equipment	5,510	5,625
Long-term financing receivables and other assets	10,912	10,544
Investments in equity interests	2,286	2,170
Goodwill	18,092	18,017
Intangible assets	892	1,103
Total assets	56,437	54,015
Current liabilities:
Notes payable and short-term borrowings	3,736	3,755
Accounts payable	6,526	5,383
Employee compensation and benefits	1,585	1,391
Taxes on earnings	152	148
Deferred revenue	3,434	3,430
Accrued restructuring	267	366
Other accrued liabilities	3,941	4,265
Total current liabilities	19,641	18,738
Long-term debt	12,489	12,186
Other non-current liabilities	7,234	6,995
Commitments and contingencies
HPE stockholders' equity:
Preferred stock, $0.01 par value (300 shares authorized; none issued)	0	0
Common stock, $0.01 par value (9,600 shares authorized; 1,307 and 1,287 shares issued and outstanding at July 31, 2021 and October 31, 2020, respectively)	13	13
Additional paid-in capital	28,632	28,350
Accumulated deficit	(7,994)	(8,375)
Accumulated other comprehensive loss	(3,631)	(3,939)
Total HPE stockholders' equity	17,020	16,049
Non-controlling interests	53	47
Total stockholders' equity	17,073	16,096
Total liabilities and stockholders' equity	$ 56,437	$ 54,015

XML

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares shares in Millions	Jul. 31, 2021	Oct. 31, 2020
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	300	300
Preferred stock, shares issued	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	9,600	9,600
Common stock, shares issued	1,307	1,287
Common stock, shares outstanding	1,307	1,287

XML

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	9 Months Ended
	Jul. 31, 2021	Jul. 31, 2020
Cash flows from operating activities:
Net earnings (loss)	$ 874	$ (479)
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities:
Depreciation and amortization	1,956	1,973
Impairment of goodwill	0	865
Stock-based compensation expense	304	215
Provision for inventory and doubtful accounts	149	208
Restructuring charges	492	553
Deferred taxes on earnings (loss)	(156)	(214)
Earnings from equity interests	(109)	(50)
Dividends received from equity investees	38	35
Other, net	117	115
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable	61	69
Financing receivables	26	(411)
Inventory	(1,352)	(1,253)
Accounts payable	1,150	431
Taxes on earnings	(6)	(85)
Restructuring	(426)	(350)
Other assets and liabilities	(203)	(129)
Net cash provided by operating activities	2,915	1,493
Cash flows from investing activities:
Investment in property, plant and equipment	(1,732)	(1,779)
Proceeds from sale of property, plant and equipment	274	623
Purchases of available-for-sale securities and other investments	(44)	(78)
Maturities and sales of available-for-sale securities and other investments	11	29
Financial collateral posted	(873)	(573)
Financial collateral received	780	637
Payments made in connection with business acquisitions, net of cash acquired	(133)	(13)
Net cash used in investing activities	(1,717)	(1,154)
Cash flows from financing activities:
Short-term borrowings with original maturities less than 90 days, net	(30)	36
Proceeds from debt, net of issuance costs	2,698	6,745
Payment of debt	(2,341)	(1,399)
Payments related to stock-based award activities, net	(18)	(34)
Repurchase of common stock	0	(355)
Cash dividends paid to non-controlling interests	(8)	(7)
Cash dividends paid to shareholders	(468)	(464)
Net cash (used in) provided by financing activities	(167)	4,522
Increase in cash, cash equivalents and restricted cash	1,031	4,861
Cash, cash equivalents and restricted cash at beginning of period	4,621	4,076
Cash, cash equivalents and restricted cash at end of period	$ 5,652	$ 8,937

XML

Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Millions	Total	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Accumulated Deficit Cumulative Effect, Period of Adoption, Adjustment		Accumulated Other Comprehensive Loss	Accumulated Other Comprehensive Loss Cumulative Effect, Period of Adoption, Adjustment	[1]	Equity Attributable to the Company	Equity Attributable to the Company Cumulative Effect, Period of Adoption, Adjustment	[2]	Non-controlling Interests	Total Equity	Total Equity Cumulative Effect, Period of Adoption, Adjustment	[2]
Balance at beginning of period (in shares) at Oct. 31, 2019		1,294,369
Balance at beginning of period at Oct. 31, 2019		$ 13	$ 28,444	$ (7,632)	$ 43	[1]	$ (3,727)	$ (43)		$ 17,098			$ 51	$ 17,149
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings (loss)				(479)						(479)			7	(472)
Other comprehensive income	$ 14						14			14				14
Comprehensive income (loss)										(465)			7	(458)
Stock-based compensation expense			216							216				216
Tax withholding related to vesting of employee stock plans			(85)							(85)				(85)
Issuance of common stock in connection with employee stock plans and other (in shares)		16,393
Issuance of common stock in connection with employee stock plans and other			46							46			1	47
Repurchases of common stock (in shares)		(24,756)
Repurchases of common stock			(346)							(346)				(346)
Cash dividends declared				(309)						(309)			(8)	(317)
Balance at beginning of period (in shares) at Jul. 31, 2020		1,286,006
Balance at end of period at Jul. 31, 2020		$ 13	28,275	(8,377)			(3,756)			16,155			51	16,206
Balance at beginning of period (in shares) at Apr. 30, 2020		1,282,253
Balance at beginning of period at Apr. 30, 2020		$ 13	28,207	(8,385)			(3,625)			16,210			48	16,258
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings (loss)				9						9			3	12
Other comprehensive income	$ (131)						(131)			(131)				(131)
Comprehensive income (loss)										(122)			3	(119)
Stock-based compensation expense			55							55				55
Tax withholding related to vesting of employee stock plans			(7)							(7)				(7)
Issuance of common stock in connection with employee stock plans and other (in shares)		3,753
Issuance of common stock in connection with employee stock plans and other			20	(1)						19				19
Balance at beginning of period (in shares) at Jul. 31, 2020		1,286,006
Balance at end of period at Jul. 31, 2020		$ 13	28,275	(8,377)			(3,756)			16,155			51	16,206
Balance at beginning of period (in shares) at Oct. 31, 2020	1,287,000	1,287,010
Balance at beginning of period at Oct. 31, 2020	$ 16,096	$ 13	28,350	(8,375)	$ (25)	[2]	(3,939)			16,049	$ (25)		47	16,096	$ (25)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings (loss)				874						874			6	880
Other comprehensive income	$ 308						308			308				308
Comprehensive income (loss)										1,182			6	1,188
Stock-based compensation expense			304							304				304
Tax withholding related to vesting of employee stock plans			(72)							(72)				(72)
Issuance of common stock in connection with employee stock plans and other (in shares)		20,053
Issuance of common stock in connection with employee stock plans and other			50							50				50
Cash dividends declared				(468)						(468)				(468)
Balance at beginning of period (in shares) at Jul. 31, 2021	1,307,000	1,307,063
Balance at end of period at Jul. 31, 2021	$ 17,073	$ 13	28,632	(7,994)			(3,631)			17,020			53	17,073
Balance at beginning of period (in shares) at Apr. 30, 2021		1,304,138
Balance at beginning of period at Apr. 30, 2021		$ 13	28,538	(8,229)			(3,762)			16,560			51	16,611
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings (loss)				392						392			2	394
Other comprehensive income	$ 131						131			131				131
Comprehensive income (loss)										523			2	525
Stock-based compensation expense			86							86				86
Tax withholding related to vesting of employee stock plans			(11)							(11)				(11)
Issuance of common stock in connection with employee stock plans and other (in shares)		2,925
Issuance of common stock in connection with employee stock plans and other			19							19				19
Cash dividends declared				(157)						(157)				(157)
Balance at beginning of period (in shares) at Jul. 31, 2021	1,307,000	1,307,063
Balance at end of period at Jul. 31, 2021	$ 17,073	$ 13	$ 28,632	$ (7,994)			$ (3,631)			$ 17,020			$ 53	$ 17,073

[1] Represents the impact of the adoption of an accounting standard update that allows for the reclassification of stranded tax effects from accumulated other comprehensive loss toaccumulated deficit.

[2] Represents the impact of the adoption of the accounting standard on the measurement of credit losses on financial assets.

XML

Condensed Consolidated Statements of Stockholders' Equity (Unaudited) (Parenthetical) - $ / shares	3 Months Ended	9 Months Ended
	Jul. 31, 2021	Jul. 31, 2021	Jul. 31, 2020
Statement of Stockholders' Equity [Abstract]
Cash dividends declared (in dollars per share)	$ 0.12	$ 0.36	$ 0.24

XML

Overview and Summary of Significant Accounting Policies

9 Months Ended

Jul. 31, 2021

Accounting Policies [Abstract]

Overview and Summary of Significant Accounting Policies

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 ("SMBs") to large global enterprises and governmental entities.

On November 1, 2015, the Company became an independent publicly-traded company through a pro rata distribution by HP Inc. ("former Parent" or "HPI"), formerly known as Hewlett-Packard Company ("HP Co."), of 100% of the outstanding shares of Hewlett Packard Enterprise Company to HP Inc.'s stockholders (the "Separation").

Acquisitions

On July 1, 2021, the Company entered into a definitive agreement to acquire Zerto Ltd., an industry leader in cloud data management and protection, in a transaction valued at $374 million. The transaction closed on August 31, 2021. Zerto's results of operations will be included within the Company's Storage segment. This acquisition expands HPE GreenLake and continues to deliver on Storage’s shift to a cloud-native, software-defined data services business.

During the third quarter of fiscal 2021, the Company completed the acquisitions of Determined AI Inc., a leading player in the evolving machine learning software ecosystem and Ampool Inc., an innovative developer of a data platform designed to deliver a cloud-native, high performance Structured Query Language (“SQL”) analytics engine, for a purchase consideration of $117 million, which has primarily been allocated to goodwill of $86 million and amortizable intangible assets of $24 million. Determined AI’s results of operations have been included with High Performance Computing & Mission-Critical Solutions (HPC & MCS) segment. HPE will combine Determined AI’s unique software solution with its world-leading artificial intelligence and high performance computing offerings to enable machine learning engineers to easily implement and train machine learning models to provide faster and more accurate insights from their data in almost every industry. Ampool's results of operations have been included in the HPE Ezmeral software organization within Corporate Investments and Other segment and will play a pivotal role in accelerating hybrid analytics for customers.

Subsequent event

On September 7, 2021, the Company expects to redeem all $500 million aggregate principal amount of its outstanding 3.5% Notes due October 2021, and all $800 million aggregate principal amount of its outstanding Floating Rate Notes due October 2021.

Basis of Presentation

The Condensed Consolidated Financial Statements of the Company were prepared in accordance with United States ("U.S.") Generally Accepted Accounting Principles ("GAAP"). 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 July 31, 2021 and October 31, 2020, its results of operations for the three and nine months ended July 31, 2021 and 2020, its cash flows for the nine months ended July 31, 2021 and 2020, and its statements of stockholders' equity for the three and nine months ended July 31, 2021 and 2020.

The results of operations for the three and nine months ended July 31, 2021 and the cash flows for the nine months ended July 31, 2021 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, 2020, including "Management's Discussion and Analysis of Financial Condition and Results of Operations", "Quantitative and Qualitative Disclosures About Market Risk" and the Consolidated Financial Statements and notes thereto included in Items 7, 7A and 8, respectively.

Principles of Consolidation

The accompanying 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.

The Company consolidates a Variable Interest Entity (“VIE”) where it has been determined that the Company is the primary beneficiary of the entity’s operation. In evaluating whether the Company is the primary beneficiary, the Company evaluates its power to direct the most significant activities of the VIE by considering the purpose and design of the entity and the risks the entity was designed to create and pass through to its variable interest holders. The Company also evaluates its economic interests in the VIE.

The Company accounts for investments in companies over which it has the ability to exercise significant influence but does not hold a controlling interest under the equity method of accounting, and the Company records its proportionate share of income or losses in Earnings from equity interests in the Condensed Consolidated Statements of Earnings.

Non-controlling interests are presented as a separate component within Total stockholders' equity in the Condensed Consolidated Balance Sheets. Net earnings attributable to non-controlling interests are recorded within Interest and other, net in the Condensed Consolidated Statements of Earnings and are not presented separately, as they were not material for any periods presented.

Segment Realignment and Reclassifications

Effective at the beginning of the first quarter of fiscal 2021, HPE implemented certain organizational changes to align its segment financial reporting more closely with its current business structure. These organizational changes are:

(i) the transfer of the lifecycle event services business, previously reported within the Advisory and Professional Services ("A & PS") reportable segment to Compute, Storage and HPC & MCS reportable segments; (ii) the transfer of certain software and related services business, previously reported within the Compute, Storage and A & PS reportable segments to the Corporate Investments and Other reportable segment, to form a new Software operating segment; and (iii) the transfer of the remaining A & PS operating segment, previously reported as a separate reportable segment, to the Corporate Investments and Other reportable segment. As a result of these changes, the Corporate Investments and Other Segment now includes the A & PS operating segment, the Communications and Media Solutions operating segment, the Software operating segment, and Hewlett Packard Enterprise Labs which is responsible for research and development.

Additionally, effective at the beginning of the first quarter of fiscal 2021, the Company has excluded stock-based compensation expense from its segment earnings from operations.

The Company reflected these changes to its segment information retrospectively to the earliest period presented, which primarily resulted in the realignment of net revenue, operating profit and total assets 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

Except for the change in certain accounting policies upon adoption of the accounting standards described below, there have been no significant 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, 2020.

Recently Adopted Accounting Pronouncements

In January 2021, the FASB issued guidance to clarify that all derivative instruments affected by changes to the interest rates used for discounting, margining or contract price alignment can apply certain optional expedients and exceptions mentioned in its reference rate reform guidance even though they do not reference to LIBOR or a rate being discontinued. This guidance was effective upon issuance. The Company adopted the guidance in the first quarter of fiscal 2021 and there was no impact on its Condensed Consolidated Financial Statements upon adoption.

In December 2019, the FASB amended the existing accounting standards for income taxes. The amendments clarify and simplify the accounting for income taxes by eliminating certain exceptions to the general principles. The Company adopted the

guidance in the first quarter of fiscal 2021 and there was no material impact on its Condensed Consolidated Financial Statements.

In August 2018, the FASB issued guidance on a customer's accounting for implementation costs incurred in cloud-computing arrangements that are hosted by a vendor. Certain types of implementation costs should be capitalized and amortized over the term of the hosting arrangement. The Company adopted the guidance in the first quarter of fiscal 2021 and there was no material impact on its Condensed Consolidated Financial Statements.

In August 2018, the FASB issued guidance which changes the disclosure requirements for fair value measurements and defined benefit pension plans. The Company adopted the guidance in the first quarter of fiscal 2021 and there was no impact on its Condensed Consolidated Financial Statements. However, the Company expects to have additional disclosures relating to retirement and post-retirement benefit plans in its Annual Report on Form 10-K for the fiscal year ended October 31, 2021.

In June 2016, the FASB amended the existing accounting standards for the measurement of credit losses with additional amendments in 2018, 2019 and 2020. These amendments primarily require the measurement and recognition of current expected credit losses for financial assets held at amortized cost. The amended accounting standard replaces the existing incurred loss impairment model with an expected loss model, which requires the use of forward-looking information to calculate credit loss estimates. It also eliminates the concept of other-than-temporary impairment and requires credit losses related to available-for-sale debt securities to be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. These changes will result in earlier recognition of credit losses. The Company adopted the Current Expected Credit Losses standard (the “CECL standard”) as of November 1, 2020 using the modified retrospective method, with the cumulative-effect adjustment recorded to the opening balance of Accumulated deficit within stockholders’ equity in the Condensed Consolidated Balance Sheets. The cumulative effect of adopting the CECL standard resulted in an increase of $28 million to the allowance for expected credit losses within financing receivables, and a corresponding increase of $25 million, net of $3 million of deferred taxes to Accumulated deficit as of November 1, 2020.

The allowance for expected credit losses related to accounts receivables is comprised of a general reserve and a specific reserve. The Company may record a specific reserve for individual accounts when the Company becomes aware of specific customer circumstances, such as in the case of a bankruptcy filing or deterioration in the customer's operating results or financial position. If there are additional changes in circumstances related to the specific customer, the Company further adjusts estimates of the recoverability of receivables. The Company maintains an allowance for credit losses for all other customers based on a variety of factors, including the use of third-party credit risk models that generate quantitative measures of default probabilities based on market factors, the financial condition of customers and the length of time receivables are past due. These qualitative factors are subjective and require a degree of management judgement. The past due or delinquency status of a receivable is based on the contractual payment terms of the receivable. The Company establishes an allowance for expected credit losses related to accounts receivable, including unbilled receivables.

The allowance for expected credit losses related to financing receivables is comprised of a general reserve and a specific reserve. The Company establishes a specific reserve for financing receivables with identified exposures, such as customer defaults, bankruptcy or other events, that make it unlikely the Company will recover its investment. For individually evaluated receivables, the Company determines the expected cash flow for the receivable, which includes consideration of estimated proceeds from disposition of the collateral and calculates an estimate of the potential loss and the probability of loss. For those accounts where a loss is considered probable, the Company records a specific reserve. The Company maintains a general reserve using a credit loss model on a regional basis and bases such percentages on several factors, including consideration of historical credit losses and portfolio delinquencies, trends in the overall weighted-average risk rating of the portfolio, current economic conditions, and forward-looking information, including reasonable and supportable forecasts. The Company believes the economic forecasts employed represent reasonable and supportable forecasts, followed by a reversion to long term trends. The Company excludes accounts evaluated as part of the specific reserve from the general reserve analysis. The Company generally writes off a receivable or records a specific reserve when a receivable becomes 180 days past due, or sooner if the Company determines that the receivable is not collectible.

The Company’s debt securities are generally considered available-for-sale and are reported at fair value with unrealized gains and losses, net of applicable taxes, recorded in Accumulated other comprehensive loss in the Condensed Consolidated Balance Sheets. Realized gains and losses for available-for-sale securities are calculated based on the specific identification method and included in Interest and other, net in the Condensed Consolidated Statements of Earnings. The Company monitors its investment portfolio for potential impairment on a quarterly basis. When the carrying amount of an investment in debt securities exceeds its fair value and the decline in value is determined to be due to credit-related factors, the Company recognizes the impairment by way of an allowance for credit loss in Interest and other, net in the Condensed Consolidated

Statement of Earnings while the impairment that is not credit related is recorded in Accumulated other comprehensive loss in the Condensed Consolidated Balance Sheets.

Recently Enacted Accounting Pronouncements

In January 2020, the FASB issued guidance to clarify certain interactions between the guidance to account for equity securities, the guidance to account for investments under the equity method of accounting, and the guidance to account for derivatives and hedging. The new guidance clarifies the application of measurement alternatives and the accounting for certain forward contracts and purchased options to acquire investments. The Company is required to adopt the guidance in the first quarter of fiscal 2022, though early adoption is permitted. The Company does not expect the impact on adoption of these amendments on its Consolidated Financial Statements to be material.

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Segment Information

9 Months Ended

Jul. 31, 2021

Segment Reporting [Abstract]

Segment Information

Segment Information

As described in Note 1, "Overview and Summary of Significant Accounting Policies", effective at the beginning of the first quarter of fiscal 2021, the Company implemented certain organizational changes to align its segment financial reporting more closely with its current business structure. Hewlett Packard Enterprise's operations are now organized into six reportable segments for financial reporting purposes: Compute, HPC & MCS, Storage, 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 ("CEO"), uses to evaluate, view and run the Company's business operations, which include, but are not limited to, customer base and homogeneity of products and technology. The six segments are based on this organizational structure and information reviewed by Hewlett Packard Enterprise's management to evaluate segment results. A summary description of each segment follows.

Compute portfolio offers both general purpose servers for multi-workload computing and workload optimized servers to

offer the best performance and value for demanding applications. This portfolio of products includes the HPE Proliant rack and

tower servers; HPE BladeSystem, and HPE Synergy. Compute offerings also include related operational and support services.

High Performance Computing & Mission-Critical Solutions portfolio offers specialized compute servers designed to support specific workloads. The HPC portfolio of products includes the HPE Apollo and Cray high performance computing products that are often sold as supercomputing systems, including exascale supercomputers. The MCS portfolio includes the HPE Superdome Flex, HPE Nonstop and HPE Integrity product lines. The HPC & MCS segment also includes the Converged Edge Systems business which consists of the HPE Moonshot and HPE Edgeline products. HPC & MCS offerings also include related operational and support services

Storage portfolio offers workload optimized storage product and service offerings which include an intelligent hyperconverged infrastructure ("HCI") with HPE Nimble Storage dHCI and HPE SimpliVity. The portfolio also includes HPE Primera, HPE Nimble Storage, HPE Alletra and HPE 3PAR Storage for mission-critical and general-purpose workloads, HPE Recovery Manager Central, HPE StoreOnce, HPE Cloud Volumes Backup and Big Data solutions. Storage also provides solutions for secondary workloads and traditional tape, storage networking and disk products, such as HPE Modular Storage Arrays ("MSA") and HPE XP. Storage offerings also include related operational and support services.

Intelligent Edge portfolio offers wired and wireless local area network ("LAN"), campus and data center switching, software-defined wide-area-networking, security, and associated services to enable secure connectivity for businesses of any size. The Intelligent Edge product portfolio includes products such as Wi-Fi access points, switches, routers, and sensors. The Intelligent Edge software and services portfolio includes software products for cloud-based management, network management, network access control, analytics and assurance, location services software and professional and support services, as well as as-a Service ("aaS") and consumption models for the Intelligent Edge portfolio of products.

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.

Corporate Investments and Other includes the Communications and Media Solutions business ("CMS") which primarily offers software and related services to the telecommunications industry; the Software business which offers HPE Ezmeral Container Platform and HPE Ezmeral Data Fabric, and incubates other software related technology innovation; the 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; and the Hewlett Packard Labs which is responsible for research and development.

Segment Policy

There have been no changes to the Company's segment accounting policies disclosed in the Company's Annual Report on Form 10-K for the fiscal year ended October 31, 2020, except for the organizational changes and the change in allocation of stock based compensation expense described in Note 1, "Overview and Summary of Significant Accounting Policies".

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 initial direct costs, amortization of intangible assets, impairment of goodwill, transformation costs, disaster charges, acquisition, disposition and other related charges.

Segment Operating Results

Segment net revenue and operating results were as follows:

	Compute		HPC & MCS		Storage		Intelligent Edge		Financial Services		Corporate Investments and Other		Total
	In millions
Three months ended July 31, 2021
Net revenue	$	3,033	$	671	$	1,154	$	865	$	842	$	332	$	6,897
Intersegment net revenue	71		70		22		2		2		—		167
Total segment net revenue	$	3,104	$	741	$	1,176	$	867	$	844	$	332	$	7,064
Segment earnings (loss) from operations	$	347	$	29	$	178	$	137	$	94	$	(28)	$	757
Three months ended July 31, 2020
Net revenue	$	3,265	$	650	$	1,109	$	682	$	807	$	303	$	6,816
Intersegment net revenue	144		17		23		2		4		—		190
Total segment net revenue	$	3,409	$	667	$	1,132	$	684	$	811	$	303	$	7,006
Segment earnings (loss) from operations	$	318	$	47	$	170	$	71	$	66	$	(68)	$	604
Nine months ended July 31, 2021
Net revenue	$	8,889	$	2,081	$	3,456	$	2,465	$	2,536	$	1,003	$	20,430
Intersegment net revenue	177		107		50		7		7		—		348
Total segment net revenue	$	9,066	$	2,188	$	3,506	$	2,472	$	2,543	$	1,003	$	20,778
Segment earnings (loss) from operations	$	1,024	$	91	$	604	$	413	$	269	$	(84)	$	2,317
Nine months ended July 31, 2020
Net revenue	$	8,796	$	2,063	$	3,406	$	2,058	$	2,494	$	957	$	19,774
Intersegment net revenue	298		50		64		11		9		1		433
Total segment net revenue	$	9,094	$	2,113	$	3,470	$	2,069	$	2,503	$	958	$	20,207
Segment earnings (loss) from operations	$	797	$	156	$	592	$	240	$	218	$	(172)	$	1,831

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

	Three Months Ended July 31,				Nine Months Ended July 31,
	2021		2020		2021		2020
	In millions
Net Revenue:
Total segments	$	7,064	$	7,006	$	20,778	$	20,207
Eliminations of intersegment net revenue	(167)		(190)		(348)		(433)
Total Hewlett Packard Enterprise consolidated net revenue	$	6,897	$	6,816	$	20,430	$	19,774
Earnings before taxes:
Total segment earnings from operations	$	757	$	604	$	2,317	$	1,831
Unallocated corporate costs and eliminations	(84)		(65)		(186)		(165)
Stock-based compensation expense	(86)		(55)		(294)		(215)
Amortization of initial direct costs	(2)		(3)		(6)		(9)
Amortization of intangible assets	(82)		(95)		(276)		(299)
Transformation costs	(213)		(357)		(733)		(646)
Disaster charges	(5)		(2)		(6)		(24)
Acquisition, disposition and other related charges	(3)		(15)		(34)		(82)
Impairment of goodwill	—		—		—		(865)
Interest and other, net	(50)		(71)		(105)		(158)
Tax indemnification and related adjustments	76		(30)		60		(86)
Non-service net periodic benefit credit	19		28		53		101
Earnings from equity interests	79		27		109		50
Total Hewlett Packard Enterprise consolidated earnings (loss) before taxes	$	406	$	(34)	$	899	$	(567)

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

	As of
	July 31, 2021		October 31, 2020
	In millions
Compute	$	16,339	$	14,962
HPC & MCS	6,502		6,245
Storage	6,674		6,438
Intelligent Edge	4,473		4,352
Financial Services	14,651		14,765
Corporate Investments and Other	1,244		1,124
Corporate and unallocated assets	6,554		6,129
Total Hewlett Packard Enterprise consolidated total assets	$	56,437	$	54,015

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

	Three Months Ended July 31,				Nine Months Ended July 31,
	2021		2020		2021		2020
	In millions
Americas:
United States	$	2,237	$	2,362	$	6,433	$	6,586
Americas excluding U.S.	461		395		1,357		1,273
Total Americas	$	2,698	$	2,757	$	7,790	$	7,859
Europe, Middle East and Africa	2,510		2,448		7,684		7,206
Asia Pacific and Japan	1,689		1,611		4,956		4,709
Total Hewlett Packard Enterprise consolidated net revenue	$	6,897	$	6,816	$	20,430	$	19,774

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Transformations Programs

9 Months Ended

Jul. 31, 2021

Restructuring and Related Activities [Abstract]

Transformation Programs

Transformation Programs

Transformation programs are comprised of the cost optimization and prioritization plan, and the HPE Next initiative.

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, including a new hybrid workforce model called Edge-to-Office, real estate strategies and simplifying and evolving our product portfolio strategy. The changes to the workforce will vary by country, based on business needs, local legal requirements and consultations with employee works councils and other employee representatives, as appropriate. The implementation period of the cost optimization and prioritization plan is through fiscal 2023. During this time the Company expects to incur transformation costs predominantly related to labor restructuring, non-labor restructuring, IT investments, design and execution charges and real estate initiatives.

During the third quarter of fiscal 2017, the Company launched an initiative called HPE Next to put in place a purpose-built company designed to compete and win in the markets where it participates. Through this program, the Company is simplifying the operating model, and streamlining our offerings, business processes and business systems to improve our execution. The implementation period of the HPE Next initiative is through fiscal 2023. As of October 31, 2020, the headcount exits under HPE Next Plan are complete. During the remaining implementation period, the Company expects to incur transformation costs predominantly related to IT infrastructure costs for streamlining, upgrading and simplifying back-end operations, and real estate initiatives. These costs are expected to be partially offset by gains from real estate sales.

Transformation Costs

During the three and nine months ended July 31, 2021, the Company incurred $147 million and $552 million, respectively, of charges related to the cost optimization and prioritization plan of which $146 million and $549 million were recorded within Transformation costs, and $1 million and $3 million, respectively, was recorded within Non-service net periodic benefit credit in the Condensed Consolidated Statements of Earnings. During the three and nine months ended July 31, 2020, the Company incurred $238 million of charges related to the cost optimization and prioritization plan which was recorded within Transformation costs in the Condensed Consolidated Statements of Earnings, the components of which were as follows:

	Three months ended July 31,				Nine months ended July 31,
	2021		2020		2021		2020
	In millions
Program management	$	17	$	14	$	72	$	14
IT Costs	6		4		9		4
Restructuring charges	124		220		471		220
Total	$	147	$	238	$	552	$	238

During the three and nine months ended July 31, 2021, the Company incurred $67 million and $184 million, respectively, and during the three and nine months ended July 31, 2020, the Company incurred $119 million and $408 million, respectively, of net charges associated with HPE Next which were recorded within Transformation costs in the Condensed Consolidated Statements of Earnings. The components of Transformation costs relating to HPE Next were as follows:

	Three months ended July 31,				Nine months ended July 31,
	2021		2020		2021		2020
	In millions
Program management	$	5	$	10	$	10	$	28
IT costs	54		25		126		71
Restructuring charges	2		84		21		332
Gain on real estate sales	—		(7)		(3)		(44)
Impairment on real estate assets	—		—		4		—
Other	6		7		26		21
Total	$	67	$	119	$	184	$	408

Restructuring Plan

Restructuring activities related to the Company's employees and infrastructure under the cost optimization and prioritization plan and HPE Next Plan, were presented in the table below:

	Cost Optimization and Prioritization Plan				HPE Next Plan
	Employee Severance		Infrastructure and other		Employee Severance		Infrastructure and other
	In millions
Liability as of October 31, 2020	$	210	$	68	$	144	$	52
Charges	199		272		—		21
Cash payments	(214)		(86)		(94)		(29)
Non-cash items	1		(68)		3		(4)
Liability as of July 31, 2021	$	196	$	186	$	53	$	40
Total costs incurred to date, as of July 31, 2021	$	429	$	371	$	1,261	$	246
Total expected costs to be incurred as of July 31, 2021	$	700	$	610	$	1,261	$	248

The current restructuring liability related to the transformation programs, reported in Condensed Consolidated Balance Sheets as of July 31, 2021 and October 31, 2020, was $263 million and $359 million, respectively, in accrued restructuring, and $29 million and $24 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 July 31, 2021 and October 31, 2020, was $183 million and $91 million, respectively.

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Retirement Benefit Plans

9 Months Ended

Jul. 31, 2021

Retirement Benefits [Abstract]

Retirement Benefit Plans

Retirement Benefit Plans

The Company's net pension benefit (credit) cost for defined benefit plans recognized in the Condensed Consolidated Statements of Earnings was as follows:

	Three months ended July 31,				Nine months ended July 31,
	2021		2020		2021		2020
	In millions
Service cost	$	24	$	23	$	73	$	69
Interest cost(1)	30		35		89		106
Expected return on plan assets(1)	(121)		(133)		(360)		(402)
Amortization and deferrals(1):
Actuarial loss	74		65		223		194
Prior service benefit	(3)		(3)		(10)		(10)
Net periodic benefit (credit) cost	4		(13)		15		(43)
Settlement loss(1)	—		7		1		8
Special termination benefits(1)	1		—		3		1
Total net benefit (credit) cost	$	5	$	(6)	$	19	$	(34)

(1)These non-service components of net periodic benefit cost were included in Non-service net periodic benefit credit in the Condensed Consolidated Statements of Earnings.

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Taxes on Earnings

9 Months Ended

Jul. 31, 2021

Income Tax Disclosure [Abstract]

Taxes on Earnings

Taxes on Earnings

Provision for Taxes

For the three and nine months ended July 31, 2021, the Company recorded income tax expense of $14 million and $25 million, respectively, which reflect an effective tax rate of 3.4% and 2.8%, respectively. For the three and nine months ended July 31, 2020, the Company recorded income tax benefit of $43 million and $88 million, respectively, which reflect an effective tax rate of 126.5% and 15.5%, 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. The effective tax rate for the nine months ended July 31, 2020 also included the effects of the non-deductible goodwill impairment.

For the three and nine months ended July 31, 2021, the Company recorded $99 million and $222 million of net income tax benefits, respectively, related to various items discrete to the period. For the three months ended July 31, 2021, this amount primarily included $88 million of deferred income tax benefits related to tax law changes and $31 million of income tax benefits related to transformation costs, and acquisition, disposition and other related charges, partially offset by income tax charges related to the recovery of two social contribution taxes in Brazil ("PIS" and "COFINS") of $5 million and $23 million, respectively. For the nine months ended July 31, 2021, this amount primarily included $138 million of income tax benefits related to transformation costs, and acquisition, disposition and other related charges, $88 million of deferred income tax benefits related to tax law changes, and $30 million of income tax benefits related to the change in pre-Separation tax liabilities, primarily those for which we share joint and several liability with HP Inc. and for which we are indemnified by HP Inc., partially offset by income tax charges related to the recovery of PIS and COFINS of $5 million and $23 million, respectively.

For the three and nine months ended July 31, 2020, the Company recorded $86 million and $253 million of net income tax benefits, respectively, related to various items discrete to the period. For the three months ended July 31, 2020, the amount primarily included $72 million of income tax benefits related to transformation costs, and acquisition, disposition and other related charges and $30 million of income tax benefits related to tax rate changes on deferred taxes. For the nine months ended July 31, 2020, the amount primarily included $120 million of income tax benefits related to transformation costs, and acquisition, disposition and other related charges, $57 million of income tax benefits related to Indian distribution tax rate changes, $56 million of income tax benefits related to the change in pre-Separation tax liabilities for which the Company shares joint and several liability with HP Inc. and for which the Company is indemnified by HP Inc., and $30 million of income tax benefits related to tax rate changes on deferred taxes.

Uncertain Tax Positions

As of July 31, 2021 and October 31, 2020, the amount of unrecognized tax benefits was $2.1 billion and $2.2 billion, respectively, of which up to $709 million and $731 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) benefit for taxes in the Condensed Consolidated Statements of Earnings. As of July 31, 2021 and October 31, 2020, the Company had accrued $127 million and $119 million, respectively, for interest and penalties in the Condensed Consolidated Balance Sheets.

The Company engages in continuous discussions and negotiations with tax authorities regarding tax matters in various jurisdictions. The Company does not expect complete resolution of any U.S. Internal Revenue Service ("IRS") audit cycle within the next 12 months. However, it is reasonably possible that certain federal, foreign and state tax issues may be concluded in the next 12 months, including issues involving resolution of certain intercompany transactions, joint and several tax liabilities and other matters. Accordingly, the Company believes it is reasonably possible that its existing unrecognized tax benefits may be reduced by an amount up to $75 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
	July 31, 2021		October 31, 2020
	In millions
Deferred tax assets	$	2,025	$	1,778
Deferred tax liabilities	(384)		(290)
Deferred tax assets net of deferred tax liabilities	$	1,641	$	1,488

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Balance Sheet Details

9 Months Ended

Jul. 31, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Balance Sheet Details

Balance Sheet Details

Balance sheet details were as follows:

Cash, cash equivalents and restricted cash

	As of
	July 31, 2021		October 31, 2020
	In millions
Cash and cash equivalents	$	5,293	$	4,233
Restricted cash(1)	359		388
Total	$	5,652	$	4,621

(1) Restricted cash is included within Other current assets in the accompanying Condensed Consolidated Balance Sheets and is primarily related to cash received under the Company's collateral securities agreements for its derivative instruments and cash restricted under the fixed-term securitization program for the issuance of asset-backed debt securities.

Inventory

	As of
	July 31, 2021		October 31, 2020
	In millions
Finished goods	$	1,373	$	1,197
Purchased parts and fabricated assemblies	2,569		1,477
Total	$	3,942	$	2,674

Property, Plant and Equipment

	As of
	July 31, 2021		October 31, 2020
	In millions
Land	$	75	$	89
Buildings and leasehold improvements	1,697		1,886
Machinery and equipment, including equipment held for lease	9,855		9,624
	11,627		11,599
Accumulated depreciation	(6,117)		(5,974)
Total	$	5,510	$	5,625

Warranties

The Company's aggregate product warranty liability as of July 31, 2021, and changes were as follows:

	Nine Months Ended July 31, 2021
	In millions
Balance at beginning of period	$	385
Charges	159
Adjustments related to pre-existing warranties	(27)
Settlements made	(180)
Balance at end of period	$	337

Contract balances

The Company’s contract balances consist of contract assets, contract liabilities, and costs to obtain a contract with a customer.

Contract Assets

A summary of accounts receivable, net, including unbilled receivables was as follows:

	As of
	July 31, 2021		October 31, 2020
	In millions
Accounts receivable, net
Accounts receivable	$	3,125	$	3,227
Unbilled receivables	214		205
Allowances	(42)		(46)
Total	$	3,297	$	3,386

The allowances for credit losses related to accounts receivable and changes therein were as follows:

	As of
	July 31, 2021		October 31, 2020
	In millions
Balance at beginning of the period	$	46	$	31
Provision for credit losses	8		29
Write off's, net of recoveries	(12)		(14)
Balance at end of the period	$	42	$	46

Sale of Trade Receivables

The Company has third-party revolving short-term financing arrangements intended to facilitate the working capital requirements of certain customers. During the three and nine months ended July 31, 2021, the Company sold $1 billion and $3.1 billion of trade receivables, respectively. During the fiscal year ended October 31, 2020, the Company sold $3.9 billion of trade receivables. The Company recorded an obligation of $66 million and $75 million in Notes payable and short-term borrowings in its Condensed Consolidated Balance Sheets as of July 31, 2021 and October 31, 2020 respectively, related to the trade receivables sold and collected from the third-party for which the revenue recognition was deferred.

Contract Liabilities

Contract liabilities consist of deferred revenue. The aggregate balance of current and non-current deferred revenue was $6.4 billion and $6.2 billion as of July 31, 2021 and October 31, 2020, respectively. During the nine months ended July 31, 2021, approximately $2.7 billion of the deferred revenue as of October 31, 2020 was recognized as revenue.

Remaining Performance Obligations

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.

Remaining performance obligations consist of deferred revenue. As of July 31, 2021, the aggregate amount of remaining performance obligations was $6.4 billion. The Company expects to recognize approximately 21% of this amount as revenue over the remainder of the fiscal year.

Costs to Obtain a Contract

As of July 31, 2021, the current and non-current portions of the capitalized costs to obtain a contract were $60 million and $86 million, respectively. As of October 31, 2020, the current and non-current portions of the capitalized costs to obtain a contract were $54 million and $76 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 Sheet. For the three and nine months ended July 31, 2021, the Company amortized $16 million and $48 million respectively, of capitalized costs to obtain a contract. For the three and nine months ended July 31, 2020, the Company amortized $15 million and $43 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 Statement of Earnings.

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Accounting for Leases as a Lessor

9 Months Ended

Jul. 31, 2021

Leases [Abstract]

Accounting for Leases as a Lessor

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
	July 31, 2021		October 31, 2020
	In millions
Minimum lease payments receivable	$	9,346	$	9,448
Unguaranteed residual value	386		364
Unearned income	(725)		(754)
Financing receivables, gross	9,007		9,058
Allowance for credit losses	(234)		(154)
Financing receivables, net	8,773		8,904
Less: current portion	(3,814)		(3,794)
Amounts due after one year, net	$	4,959	$	5,110

As of July 31, 2021 and October 31, 2020, scheduled maturities of the Company's minimum lease payments receivable were as follows:

	As of
	July 31, 2021		October 31, 2020
Fiscal year	In millions
Remainder of fiscal 2021	$	1,496	$	4,182
2022	3,389		2,662
2023	2,306		1,572
2024	1,326		720
2025	609		252
Thereafter	220		60
Total undiscounted cash flows	$	9,346	$	9,448
Present value of lease payments (recognized as finance receivables)	$	8,621	$	8,694
Unearned income	$	725	$	754

Sale of Financing Receivables

The Company enters into arrangements to transfer the contractual payments due under certain financing receivables to third party financial institutions. During the three and nine months ended July 31, 2021 the Company sold $30 million and $110 million of financing receivables, respectively. During the fiscal year ended October 31, 2020, the Company sold $103 million of financing receivables.

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 financing receivables, based on internal risk ratings as of July 31, 2021, presented on amortized cost basis by year of origination was as follows:

	As of July 31, 2021
	Risk Rating
	Low		Moderate		High
Fiscal Year	In millions
2021	$	1,341	$	1,156	$	40
2020	1,607		1,203		94
2019	965		880		95
2018	469		491		88
2017 and prior	198		271		109
Total	$	4,580	$	4,001	$	426

The credit risk profile of gross financing receivables, based on internal risk ratings as of October 31, 2020, was as follows:

	As of
	October 31, 2020
	In millions
Risk Rating:
Low	$	4,590
Moderate	4,091
High	377
Total	$	9,058

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. Effective November 1, 2020, under the new guidance for credit losses, the Company discloses its credit quality by year of origination. 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 July 31, 2021 and October 31, 2020 and the respective changes during the nine and twelve months then ended were as follows:

	As of
	July 31, 2021		October 31, 2020
	In millions
Balance at beginning of period	$	154	$	131
Adjustment for adoption of the new credit loss standard	28		—
Provision for credit losses	59		43
Adjustment to the existing allowance	19		—
Write-offs	(26)		(20)
Balance at end of period	$	234	$	154

Non-Accrual and Past-Due Financing Receivables

The following table summarizes the aging and non-accrual status of gross financing receivables:

	As of
	July 31, 2021		October 31, 2020
	In millions
Billed:(1)
Current 1-30 days	$	347	$	340
Past due 31-60 days	38		43
Past due 61-90 days	17		22
Past due > 90 days	121		140
Unbilled sales-type and direct-financing lease receivables	8,484		8,513
Total gross financing receivables	$	9,007	$	9,058
Gross financing receivables on non-accrual status(2)	$	285	$	364
Gross financing receivables 90 days past due and still accruing interest(2)	$	92	$	74

(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.

Operating Leases

Operating lease assets included in Property, plant and equipment in the Condensed Consolidated Balance Sheets were as follows:

	As of
	July 31, 2021		October 31, 2020
	In millions
Equipment leased to customers	$	7,166	$	7,184
Accumulated depreciation	(3,223)		(3,157)
Total	$	3,943	$	4,027

Minimum future rentals on non-cancelable operating leases related to leased equipment were as follows:

	As of
	July 31, 2021
Fiscal year	In millions
Remainder of fiscal 2021	$	510
2022	1,524
2023	873
2024	300
2025	44
Thereafter	11
Total	$	3,262

If a lease is classified as an operating lease, the Company records lease revenue on a straight line basis over the lease term. At commencement of an operating lease, initial direct costs are deferred and are expensed over the lease term on the same basis as the lease revenue is recorded.

The following table presents amounts included in the Condensed Consolidated Statement of Earnings related to lessor activity:

	Three Months Ended July 31,				Nine Months Ended July 31,
	2021		2020		2021		2020
	In millions
Sales-type leases and direct financing leases:
Interest income	$	125	$	115	$	371	$	343
Lease income - operating leases	598		588		1,797		1,821
Total lease income	$	723	$	703	$	2,168	$	2,164

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 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 July 31, 2021, 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
	July 31, 2021		October 31, 2020
Assets held by VIE	In millions
Other current assets	$	179	$	120
Financing receivables
Short-term	$	805	$	531
Long-term	$	882	$	584
Property, plant and equipment	$	1,010	$	665
Liabilities held by VIE
Notes payable and short-term borrowings, net of unamortized debt issuance costs	$	1,389	$	886
Long-term debt, net of unamortized debt issuance costs	$	1,198	$	834

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Goodwill

9 Months Ended

Jul. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

Goodwill

The following table represents the carrying value of goodwill, by reportable segment as of October 31, 2020 and July 31, 2021:

	Compute		HPC & MCS		Storage		Intelligent Edge		Financial Services		Corporate Investments and Other		Total
	In millions
Balance at October 31, 2020 (1) (2)	$	7,532	$	3,616	$	3,946	$	2,566	$	144	213		$	18,017
Goodwill from current period acquisitions	—		86		—		—		—		—		86
Goodwill adjustments	—		—		—		(11)		—		—		(11)
Balance at July 31, 2021 (2)	$	7,532	$	3,702	$	3,946	$	2,555	$	144	$	213	$	18,092

(1)As a result of the organizational realignments which were effective as of November 1, 2020, (described in Note 1, "Overview and Summary of Significant Accounting Policies"), $213 million of goodwill was reallocated from Storage segment to Corporate Investments and Other segment as of the beginning of the period using a relative fair value approach.

(2)Goodwill is net of accumulated impairment losses of $953 million. Of this amount, $865 million related to the HPC & MCS reporting unit was recorded during the second quarter of 2020 and $88 million related to the CMS reporting unit within Corporate Investments and Other was recorded during the fourth quarter of fiscal 2018. There is no goodwill remaining in the CMS reporting unit.

Effective at the beginning of the first quarter of fiscal 2021, the Company's operations were realigned into six segments for financial reporting purposes. The Company's reporting units containing goodwill are consistent with the reportable segments identified in Note 2, "Segment Information" with the exception of Corporate Investments and Other which is made up of three reporting units, A & PS, CMS, and Software, of which only Software has goodwill. As a result of this realignment, the Company performed an interim quantitative goodwill impairment test for all of its reporting units as of November 1, 2020, which did not result in any goodwill impairment charges. The fair value of all reporting units continued to exceed the carrying value of their net assets. The excess of fair value over carrying value for our reporting units ranged from approximately 8% to 37% of the respective carrying values. In order to evaluate the sensitivity of the estimated fair value of our reporting units in the goodwill impairment test, the Company applied a hypothetical 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 HPC & MCS reporting unit.

As of the interim test date, the HPC & MCS reporting unit has goodwill of $3.6 billion and an excess of fair value over carrying value of net assets of 8%. The fair value of the HPC & MCS reporting unit was based on a weighting of fair values derived most significantly from the income approach, and to a lesser extent, the market approach. The HPC & MCS business is facing challenges on the current and projected future results as the revenue growth is dependent on timing of delivery and related achievement of customer acceptance milestones. If the Company is not successful in addressing these challenges, the

projected revenue growth rates or operating margins could decline resulting in a decrease in the fair value of the HPC & MCS reporting unit. The fair value of the HPC & MCS reporting unit could also be negatively impacted by changes in its weighted average cost of capital, changes in management's business strategy or significant and sustained declines in the stock price, which could result in an indicator of impairment.

In addition, should economic conditions deteriorate, estimates of future cash flows for each of the Company's reporting units may be insufficient to support the carrying value and the goodwill assigned to them, requiring impairment charges. Further impairment charges, if any, may be material to the results of operations and financial position.

The Company will continue to evaluate the recoverability of goodwill on an annual basis as of the beginning of its fourth fiscal quarter and whenever events or changes in circumstances indicate there may be a potential impairment.

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Fair Value

9 Months Ended

Jul. 31, 2021

Fair Value Disclosures [Abstract]

Fair Value

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.

The following table presents the Company's assets and liabilities that are measured at fair value on a recurring basis:

	As of July 31, 2021								As of October 31, 2020
	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
Assets
Cash Equivalents and Investments:
Time deposits	$	—	$	1,398	$	—	$	1,398	$	—	$	939	$	—	$	939
Money market funds	2,003		—		—		2,003		1,167		—		—		1,167
Equity securities	2		—		92		94		—		—		—		—
Foreign bonds	1		125		—		126		—		125		—		125
Other debt securities	—		—		43		43		—		—		21		21
Derivative Instruments:
Interest rate contracts	—		153		—		153		—		220		—		220
Foreign exchange contracts	—		211		—		211		—		290		—		290
Other derivatives	—		1		—		1		—		—		—		—
Total assets	$	2,006	$	1,888	$	135	$	4,029	$	1,167	$	1,574	$	21	$	2,762
Liabilities
Derivative Instruments:
Interest rate contracts	$	—	$	—	$	—	$	—	$	—	$	2	$	—	$	2
Foreign exchange contracts	—		190		—		190		—		189		—		189
Other derivatives	—		—		—		—		—		3		—		3
Total liabilities	$	—	$	190	$	—	$	190	$	—	$	194	$	—	$	194

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.

Other Fair Value Disclosures

Short-Term and Long-Term Debt: As of July 31, 2021 and October 31, 2020, the estimated fair value of the Company's short-term and long-term debt was $17.6 billion and $17.1 billion, respectively. As of July 31, 2021 and October 31, 2020, the carrying value of the Company's short-term and long-term debt was $16.2 billion and $15.9 billion, respectively. If measured at fair value in the Consolidated Balance Sheets, short-term and long-term debt would be classified in Level 2 of the fair value hierarchy.

Equity investments without readily determinable fair value: Equity Investments are recorded at cost and measured at fair value, when they are deemed to be impaired or when there is an adjustment from observable price changes. During the nine months ended July 31, 2021, the Company recognized a gain of $25 million, in Interest and other, net in the Condensed Consolidated Statements of Earnings, based on observable price changes for certain equity investments without readily determinable fair value. If measured at fair value in the Consolidated Balance Sheets, these would generally be classified in Level 3 of the fair value hierarchy.

Non-Financial Assets: The Company's non-financial assets, such as intangible assets, goodwill and property, plant and equipment, are recorded at cost. The Company records right-of-use ("ROU") assets based on the lease liability, adjusted for lease prepayments, lease incentives received, and the lessee's initial direct costs. Fair value adjustments are made to these non-financial assets in the period an impairment charge is recognized.

During the three and nine months ended July 31, 2021, the Company recorded a ROU asset impairment charge of $4 million and $72 million, respectively in Transformation costs in the Condensed Consolidated Statements of Earnings as the carrying value of certain ROU assets exceeded its fair value. If measured at fair value in the Condensed Consolidated Balance Sheets, these would generally be classified in Level 3 of the fair value hierarchy.

In the second quarter of fiscal 2020, the Company recorded a goodwill impairment charge of $865 million associated with the HPC & MCS reporting unit. The fair value of the Company's reporting units was classified in Level 3 of the fair value hierarchy due to the significance of unobservable inputs developed using company-specific information. For more information on the goodwill impairment, see Note 8 "Goodwill".

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Financial Instruments

9 Months Ended

Jul. 31, 2021

Investments, All Other Investments [Abstract]

Financial Instruments

Financial Instruments

Cash Equivalents and Available-for-Sale Debt Investments

Cash equivalents and available-for-sale debt investments were as follows:

	As of July 31, 2021						As of October 31, 2020
	Cost		Gross Unrealized Gain		Fair Value		Cost		Gross Unrealized Gain		Fair Value
	In millions
Cash Equivalents:
Time deposits	$	1,398	$	—	$	1,398	$	939	$	—	$	939
Money market funds	2,003		—		2,003		1,167		—		1,167
Total cash equivalents	3,401		—		3,401		2,106		—		2,106
Available-for-Sale Debt Investments:
Foreign bonds	110		16		126		108		17		125
Other debt securities	42		1		43		20		1		21
Total available-for-sale debt investments	152		17		169		128		18		146
Total cash equivalents and available-for-sale debt investments	$	3,553	$	17	$	3,570	$	2,234	$	18	$	2,252

As of July 31, 2021 and October 31, 2020, the carrying amount of cash equivalents approximated fair value due to the short period of time to maturity. Time deposits were primarily issued by institutions outside of the U.S. as of July 31, 2021 and October 31, 2020. The estimated fair value of the available-for-sale debt investments may not be representative of values that will be realized in the future.

Contractual maturities of available-for-sale debt investments were as follows:

	July 31, 2021
	Amortized Cost		Fair Value
	In millions
Due in one to five years	$	25	$	25
Due in more than five years	127		144
	$	152	$	169

Non-marketable equity investments in privately held companies are included in Long-term financing receivables and other assets in the Condensed Consolidated Balance Sheets. These non-marketable equity investments are carried either at fair value or under the measurement alternative.

The carrying amount of those non-marketable equity investments accounted for under the measurement alternative amounted to $252 million and $295 million as of July 31, 2021 and October 31, 2020, respectively. During the nine months ended July 31, 2021, the Company recorded an unrealized gain of $25 million on these investments.

The carrying amount of those non-marketable equity investments accounted for under the fair value option amounted to $92 million as of July 31, 2021. During the nine months ended July 31, 2021, the Company recorded an unrealized gain of $34 million on these investments.

Investments in equity securities that are accounted for using the equity method are included in Investments in equity interests in the Condensed Consolidated Balance Sheets. These amounted to $2.3 billion and $2.2 billion as of July 31, 2021 and October 31, 2020. For the three and nine months ended July 31, 2021, the Company recorded earnings from equity interests of $79 million and $109 million, respectively.

Fair Value of Derivative Instruments in the Condensed Consolidated Balance Sheets

The gross notional and fair value of derivative instruments in the Condensed Consolidated Balance Sheets were as follows:

	As of July 31, 2021										As of October 31, 2020
			Fair Value										Fair Value
	Outstanding Gross Notional		Other Current Assets		Long-Term Financing Receivables and Other Assets		Other Accrued Liabilities		Long-Term Other Liabilities		Outstanding Gross Notional		Other Current Assets		Long-Term Financing Receivables and Other Assets		Other Accrued Liabilities		Long-Term Other Liabilities
	In millions
Derivatives designated as hedging instruments
Fair value hedges:
Interest rate contracts	$	3,850	$	—	$	153	$	—	$	—	$	3,850	$	—	$	220	$	—	$	—
Cash flow hedges:
Foreign currency contracts	7,872		89		46		65		62		7,652		75		85		95		38
Interest rate contracts	—		—		—		—		—		500		—		—		2		—
Net investment hedges:
Foreign currency contracts	1,821		25		24		18		20		1,804		34		44		11		9
Total derivatives designated as hedging instruments	13,543		114		223		83		82		13,806		109		349		108		47
Derivatives not designated as hedging instruments
Foreign currency contracts	5,923		20		7		23		2		6,157		43		9		35		1
Other derivatives	113		1		—		—		—		105		—		—		3		—
Total derivatives not designated as hedging instruments	6,036		21		7		23		2		6,262		43		9		38		1
Total derivatives	$	19,579	$	135	$	230	$	106	$	84	$	20,068	$	152	$	358	$	146	$	48

Offsetting of Derivative Instruments

The Company recognizes all derivative instruments on a gross basis in the Condensed Consolidated Balance Sheets. The Company's derivative instruments are subject to master netting arrangements and collateral security arrangements. The Company does not offset the fair value of its derivative instruments against the fair value of cash collateral posted under collateral security agreements. The information related to the potential effect of the Company's use of the master netting agreements and collateral security agreements were as follows:

	As of July 31, 2021
	In the Condensed Consolidated Balance Sheets
	(i)		(ii)		(iii) = (i)–(ii)		(iv)		(v)			(vi) = (iii)–(iv)–(v)
							Gross Amounts Not Offset
	Gross Amount Recognized		Gross Amount Offset		Net Amount Presented		Derivatives		Financial Collateral			Net Amount
	In millions
Derivative assets	$	365	$	—	$	365	$	154	$	203	(1)	$	8
Derivative liabilities	$	190	$	—	$	190	$	154	$	30	(2)	$	6

	As of October 31, 2020
	In the Condensed Consolidated Balance Sheets
	(i)		(ii)		(iii) = (i)–(ii)		(iv)		(v)			(vi) = (iii)–(iv)–(v)
							Gross Amounts Not Offset
	Gross Amount Recognized		Gross Amount Offset		Net Amount Presented		Derivatives		Financial Collateral			Net Amount
	In millions
Derivative assets	$	510	$	—	$	510	$	137	$	321	(1)	$	52
Derivative liabilities	$	194	$	—	$	194	$	137	$	55	(2)	$	2

(1)Represents the cash collateral posted by counterparties as of the respective reporting date for the Company's asset position, net of derivative amounts that could be offset, as of, generally, two business days prior to the respective reporting date.

(2)Represents the collateral posted by the Company in cash or through the re-use of counterparty cash collateral as of the respective reporting date for the Company's liability position, net of derivative amounts that could be offset, as of, generally, two business days prior to the respective reporting date. As of July 31, 2021, of the $30 million of collateral posted, $5 million was in cash and $25 million was through re-use of counterparty collateral. As of October 31, 2020, $55 million of collateral posted was entirely by way of re-use of counterparty collateral.

The amounts recorded on the Condensed Consolidated Balance Sheets related to cumulative basis adjustments for fair value hedges were as follows:

	Carrying amount of the hedged assets/ (liabilities)				Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged assets/ (liabilities)
	As of				As of
	July 31, 2021		October 31, 2020		July 31, 2021		October 31, 2020
	In millions				In millions
Long-term debt	$	(3,994)	$	(4,059)	$	(153)	$	(220)

The pre-tax effect of derivative instruments in cash flow and net investment hedging relationships recognized in Other Comprehensive Income ("OCI") were as follows:

	Gains (Losses) Recognized in OCI on Derivatives
	Three months ended July 31, 2021		Three months ended July 31, 2020		Nine months ended July 31, 2021		Nine months ended July 31, 2020
	In millions
Derivatives in Cash Flow Hedging relationship
Foreign exchange contracts	$	101	$	(456)	$	(183)	$	(79)
Interest rate contracts	—				—		(6)
Derivatives in Net Investment Hedging relationship
Foreign exchange contracts	16		(83)		(61)		50
Total	$	117	$	(539)	$	(244)	$	(35)

As of July 31, 2021, the Company expects to reclassify an estimated net accumulated other comprehensive gain of approximately $42 million, net of taxes, to earnings in the next twelve months along with the earnings effects of the related forecasted transactions associated with cash flow hedges.

Effect of Derivative Instruments on the Condensed Consolidated Statements of Earnings

The pre-tax effect of derivative instruments on the Condensed Consolidated Statements of Earnings were as follows:

	Gains (Losses) Recognized in Income
	Three months ended July 31, 2021				Three months ended July 31, 2020				Nine months ended July 31, 2021				Nine months ended July 31, 2020
	Net revenue		Interest and other, net		Net revenue		Interest and other, net		Net revenue		Interest and other, net		Net revenue		Interest and other, net
	In millions
Total amounts of income and expense line items presented in the Condensed Consolidated Statements of Earnings in which the effects of fair value hedges, cash flow hedges and derivatives not designated as hedging instruments are recorded	$	6,897	$	(50)	$	6,816	$	(71)	$	20,430	$	(105)	$	19,774	$	(158)
Gains (losses) on derivatives in fair value hedging relationships
Interest rate contracts
Hedged items	$	—	$	(3)	$	—	$	(13)	$	—	$	67	$	—	$	(198)
Derivatives designated as hedging instruments	—		3		—		13		—		(67)		—		198
Gains (losses) on derivatives in cash flow hedging relationships
Foreign exchange contracts
Amount of gains (losses) reclassified from accumulated other comprehensive income into income	(14)		50		23		(264)		(113)		(147)		97		(55)
Interest rate contracts
Amount of gains (losses) reclassified from accumulated other comprehensive income into income	—		—		—		(1)		—		(2)		—		(1)
Gains (losses) on derivatives not designated as hedging instruments
Foreign exchange contracts	—		(33)		—		8		—		(61)		—		53
Other derivatives	—		(1)		—		(6)		—		3		—		(1)
Total gains (losses)	$	(14)	$	16	$	23	$	(263)	$	(113)	$	(207)	$	97	$	(4)

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Borrowings

9 Months Ended

Jul. 31, 2021

Debt Disclosure [Abstract]

Borrowings

Borrowings

Notes Payable, Short-Term Borrowings and Long-Term Debt

Notes payable, short-term borrowings, including the current portion of long-term debt, and long-terms debt were as follows:

	As of
	July 31, 2021		October 31, 2020
	In millions
Current portion of long-term debt	$	2,741	$	2,768
FS commercial paper	694		677
Notes payable to banks, lines of credit and other	301		310
Total notes payable and short-term borrowings	$	3,736	$	3,755
Long-term debt	12,489		12,186
Total Debt	$	16,225	$	15,941

Unsecured Senior Notes

In March 2021, the Company repaid $500 million of three-month USD LIBOR plus 0.68% Senior Notes on their original maturity date.

Asset-backed Debt Securities

In June 2021, the Company issued $753 million of asset-backed debt securities in six tranches at a weighted average price of 99.99% and a weighted average interest rate of 0.58%, payable monthly from August 2021 with a stated final maturity date of March 2029.

In March 2021, the Company issued $1.0 billion of asset-backed debt securities in six tranches at a weighted average price of 99.99% and a weighted average interest rate of 0.49%, payable monthly from April 2021 with a stated final maturity date of March 2031.

Commercial Paper

Hewlett Packard Enterprise maintains two commercial paper programs, "the Parent Programs", and a wholly-owned subsidiary maintains a third program. Hewlett Packard Enterprise's U.S. program provides for the issuance of U.S. dollar-denominated commercial paper up to a maximum aggregate principal amount of $4.75 billion. Hewlett Packard Enterprise's euro commercial paper program provides for the issuance of commercial paper outside of the U.S. denominated in U.S. dollars, euros or British pounds up to a maximum aggregate principal amount of $3.0 billion or the equivalent in those alternative currencies. The combined aggregate principal amount of commercial paper outstanding under those two programs at any one time cannot exceed the $4.75 billion as authorized by Hewlett Packard Enterprise's Board of Directors. In addition, the Hewlett Packard Enterprise subsidiary's euro Commercial Paper/Certificate of Deposit Program provides for the issuance of commercial paper in various currencies of up to a maximum aggregate principal amount of $1.0 billion. As of July 31, 2021 and October 31, 2020, no borrowings were outstanding under the Parent Programs, and $694 million and $677 million, respectively, were outstanding under the subsidiary’s program.

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Stockholders' Equity

9 Months Ended

Jul. 31, 2021

Equity [Abstract]

Stockholders' Equity

Stockholders' Equity

The components of Accumulated other comprehensive loss, net of taxes as of July 31, 2021, and changes during the nine months ended July 31, 2021 were as follows:

	Net unrealized gains (losses) on available-for-sale securities		Net unrealized gains (losses) on cash flow hedges		Unrealized components of defined benefit plans		Cumulative translation adjustment		Accumulated other comprehensive loss
	In millions
Balance at beginning of period	$	18	$	(7)	$	(3,473)	$	(477)	$	(3,939)
Other comprehensive income (loss) before reclassifications	(1)		(183)		29		20		(135)
Reclassifications of (gains) losses into earnings	—		262		214		—		476
Tax (provision) benefit	—		(14)		(15)		(4)		(33)
Balance at end of period	$	17	$	58	$	(3,245)	$	(461)	$	(3,631)

The components of Accumulated other comprehensive loss, net of taxes as of July 31, 2020, and changes during the nine months ended July 31, 2020 were as follows:

	Net unrealized gains (losses) on available-for-sale securities		Net unrealized gains (losses) on cash flow hedges		Unrealized components of defined benefit plans		Cumulative translation adjustment		Accumulated other comprehensive loss
	In millions
Balance at beginning of period	$	23	$	53	$	(3,366)	$	(437)	$	(3,727)
Effect of change in accounting principle (1)	—		(10)		—		(33)		(43)
Other comprehensive income (loss) before reclassifications	—		(85)		(10)		(46)		(141)
Reclassifications of (gains) losses into earnings	(8)		(41)		191		—		142
Tax (provision) benefit	—		20		(11)		4		13
Balance at end of period	$	15	$	(63)	$	(3,196)	$	(512)	$	(3,756)

(1) Reflects the impact of the adoption of an accounting standard update that allows for the reclassification of stranded tax effects from accumulated other comprehensive loss to accumulated deficit.

Share Repurchase Program

On April 6, 2020, the Company announced that it suspended purchases under its share repurchase program in response to the global economic uncertainty that resulted from the worldwide spread of COVID-19. As of July 31, 2021, the Company had a remaining authorization of $2.1 billion for future share repurchases.

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Net Earnings (Loss) Per Share

9 Months Ended

Jul. 31, 2021

Earnings Per Share [Abstract]

Net Earnings (Loss) Per Share

Net Earnings (Loss) Per ShareThe Company calculates basic net EPS using net earnings and the weighted-average number of shares outstanding during the reporting period. Diluted net EPS includes the weighted-average dilutive effect of outstanding restricted stock units, stock options, and performance-based awards.

The reconciliations of the numerators and denominators of each of the basic and diluted net EPS calculations were as follows:

	Three Months Ended July 31,				Nine Months Ended July 31,
	2021		2020		2021		2020
	In millions, except per share amounts
Numerator:
Net earnings (loss)	$	392	$	9	$	874	$	(479)
Denominator:
Weighted-average shares used to compute basic net EPS	1,314		1,292		1,308		1,294
Dilutive effect of employee stock plans	24		8		20		—
Weighted-average shares used to compute diluted net EPS	1,338		1,300		1,328		1294
Net earnings (loss) per share:
Basic	$	0.30	$	0.01	$	0.67	$	(0.37)
Diluted	$	0.29	$	0.01	$	0.66	$	(0.37)
Anti-dilutive weighted-average stock awards(1)	1		21		7		48

(1)The Company excludes shares potentially issuable under employee stock plans that could dilute basic net EPS in the future from the calculation of diluted net earnings per share, as their effect, if included, would have been anti-dilutive for the periods presented.

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Litigation and Contingencies

9 Months Ended

Jul. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

Litigation and Contingencies

Litigation and Contingencies

Hewlett Packard Enterprise is involved in various lawsuits, claims, investigations and proceedings including those consisting of intellectual property, commercial, securities, employment, employee benefits and environmental matters, which arise in the ordinary course of business. In addition, as part of the Separation and Distribution Agreement, Hewlett Packard Enterprise and HP Inc. (formerly known as "Hewlett-Packard Company") agreed to cooperate with each other in managing certain existing litigation related to both parties' businesses. The Separation and Distribution Agreement included provisions that allocate liability and financial responsibility for pending litigation involving the parties, as well as provide for cross-indemnification of the parties against liabilities to one party arising out of liabilities allocated to the other party. The Separation and Distribution Agreement also included provisions that assign to the parties responsibility for managing pending and future litigation related to the general corporate matters of HP Inc. arising prior to the Separation. Hewlett Packard Enterprise records a liability when it believes that it is both probable that a liability has been incurred and the amount of loss can be reasonably estimated. Significant judgment is required to determine both the probability of having incurred a liability and the estimated amount of the liability. Hewlett Packard Enterprise reviews these matters at least quarterly and adjusts these liabilities to reflect the impact of negotiations, settlements, rulings, advice of legal counsel and other updated information and events pertaining to a particular matter. Litigation is inherently unpredictable. However, Hewlett Packard Enterprise believes it has valid defenses with respect to legal matters pending against us. Nevertheless, cash flows or results of operations could be materially affected in any particular period by the resolution of one or more of these contingencies. Hewlett Packard Enterprise believes it has recorded adequate provisions for any such matters and, as of July 31, 2021, it was not reasonably possible that a material loss had been incurred in connection with such matters in excess of the amounts recognized in its financial statements.

Litigation, Proceedings and Investigations

Ross and Rogus v. Hewlett Packard Enterprise Company. On November 8, 2018, a putative class action complaint was filed in the Superior Court of California, County of Santa Clara alleging that HPE pays its California-based female employees “systemically lower compensation” than HPE pays male employees performing substantially similar work. The complaint alleges various California state law claims, including California’s Equal Pay Act, Fair Employment and Housing Act, and Unfair Competition Law, and seeks certification of a California-only class of female employees employed in certain “Covered Positions.” The complaint seeks damages, statutory and civil penalties, attorneys’ fees and costs. On April 2, 2019, HPE filed a demurrer to all causes of action and an alternative motion to strike portions of the complaint. On July 2, 2019, the court denied HPE’s demurrer as to the claims of the putative class and granted HPE’s demurrer as to the claims of the individual plaintiffs.

India Directorate of Revenue Intelligence Proceedings. On April 30 and May 10, 2010, the India Directorate of Revenue Intelligence (the "DRI") issued show cause notices to Hewlett-Packard India Sales Private Ltd ("HP India"), a subsidiary of HP Inc., seven HP India employees and one former HP India employee alleging that HP India underpaid customs duties while importing products and spare parts into India and seeking to recover an aggregate of approximately $370 million, plus penalties. Prior to the issuance of the show cause notices, HP India deposited approximately $16 million with the DRI and agreed to post a provisional bond in exchange for the DRI's agreement to not seize HP India products and spare parts and to not interrupt the transaction of business by HP India.

On April 11, 2012, the Bangalore Commissioner of Customs issued an order on the products-related show cause notice affirming certain duties and penalties against HP India and the named individuals of approximately $386 million, of which HP India had already deposited $9 million. On December 11, 2012, HP India voluntarily deposited an additional $10 million in connection with the products-related show cause notice. On April 20, 2012, the Commissioner issued an order on the parts-related show cause notice affirming certain duties and penalties against HP India and certain of the named individuals of approximately $17 million, of which HP India had already deposited $7 million. After the order, HP India deposited an additional $3 million in connection with the parts-related show cause notice to avoid certain penalties.

HP India filed appeals of the Commissioner's orders before the Customs Tribunal along with applications for waiver of the pre-deposit of remaining demand amounts as a condition for hearing the appeals. The Customs Department has also filed cross-appeals before the Customs Tribunal. On January 24, 2013, the Customs Tribunal ordered HP India to deposit an additional $24 million against the products order, which HP India deposited in March 2013. The Customs Tribunal did not order any additional deposit to be made under the parts order. In December 2013, HP India filed applications before the Customs Tribunal seeking early hearing of the appeals as well as an extension of the stay of deposit as to HP India and the individuals already granted until final disposition of the appeals. On February 7, 2014, the application for extension of the stay of deposit was granted by the Customs Tribunal until disposal of the appeals. On October 27, 2014, the Customs Tribunal commenced hearings on the cross-appeals of the Commissioner's orders. The Customs Tribunal rejected HP India's request to remand the matter to the Commissioner on procedural grounds. The hearings were scheduled to reconvene on April 6, 2015, and again on November 3, 2015, April 11, 2016, and January 15, 2019, but were canceled at the request of the Customs Tribunal. The hearing was again rescheduled for January 20, 2021 but was postponed and has not yet been rescheduled.

ECT Proceedings. In January 2011, the postal service of Brazil, Empresa Brasileira de Correios e Telégrafos ("ECT"), notified a former subsidiary of HP Inc. in Brazil ("HP Brazil") that it had initiated administrative proceedings to consider whether to suspend HP Brazil's right to bid and contract with ECT related to alleged improprieties in the bidding and contracting processes whereby employees of HP Brazil and employees of several other companies allegedly coordinated their bids and fixed results for three ECT contracts in 2007 and 2008. In late July 2011, ECT notified HP Brazil it had decided to apply the penalties against HP Brazil and suspend HP Brazil's right to bid and contract with ECT for five years, based upon the evidence before it. In August 2011, HP Brazil appealed ECT's decision. In April 2013, ECT rejected HP Brazil's appeal, and the administrative proceedings were closed with the penalties against HP Brazil remaining in place. In parallel, in September 2011, HP Brazil filed a civil action against ECT seeking to have ECT's decision revoked. HP Brazil also requested an injunction suspending the application of the penalties until a final ruling on the merits of the case. The court of first instance has not issued a decision on the merits of the case, but it has denied HP Brazil's request for injunctive relief. HP Brazil appealed the denial of its request for injunctive relief to the intermediate appellate court, which issued a preliminary ruling denying the request for injunctive relief but reducing the length of the sanctions from five to two years. HP Brazil appealed that decision and, in December 2011, obtained a ruling staying enforcement of ECT's sanctions until a final ruling on the merits of the case. HP Brazil expects any appeal of the decision on the merits to last several years.

Forsyth, et al. vs. HP Inc. and Hewlett Packard Enterprise. This purported class and collective action was filed on August 18, 2016 and an amended complaint was filed on December 19, 2016 in the United States District Court for the Northern District of California, against HP Inc. and Hewlett Packard Enterprise (collectively, “Defendants”) alleging Defendants violated the Federal Age Discrimination in Employment Act ("ADEA"), the California Fair Employment and Housing Act, California public policy and the California Business and Professions Code by terminating older workers and replacing them with younger workers. Plaintiffs seek to certify a nationwide collective action under the ADEA comprised of all individuals age 40 years and older who had their employment terminated by an HP entity pursuant to a work force reduction ("WFR") plan on or after December 9, 2014 for individuals terminated in deferral states and on or after April 8, 2015 in non-deferral states. Plaintiffs also seek to certify a Rule 23 class under California law comprised of all persons 40 years or older employed by Defendants in the state of California and terminated pursuant to a WFR plan on or after August 18, 2012. Following the filing of Plaintiffs' Fourth Amended Complaint, Plaintiffs filed a Motion for Preliminary Class Certification on December 30, 2020. On April 14, 2021, Plaintiffs’ Motion for Conditional Class Certification was granted. The conditionally

certified collective action consists of all individuals who had their employment terminated by Defendants pursuant to a WFR Plan on or after November 1, 2015, and who were 40 years or older at the time of such termination. The collective action excludes all individuals who signed a Waiver and General Release Agreement or an Agreement to Arbitrate Claims.

Hewlett-Packard Company v. Oracle (Itanium). On June 15, 2011, HP Inc. filed suit against Oracle in the Superior Court of California, County of Santa Clara in connection with Oracle's March 2011 announcement that it was discontinuing software support for HP Inc.’s Itanium-based line of mission critical servers. HP Inc. asserted, among other things, that Oracle’s actions breached the contract that was signed by the parties as part of the settlement of the litigation relating to Oracle’s hiring of Mark Hurd. Trial was bifurcated into two phases. HP Inc. prevailed in the first phase of the trial, in which the court ruled that the contract at issue required Oracle to continue to offer its software products on HP Inc.'s Itanium-based servers for as long as HP Inc. decided to sell such servers. Phase 2 of the trial was then postponed by Oracle’s appeal of the trial court’s denial of Oracle’s “anti-SLAPP” motion, in which Oracle argued that HP Inc.’s damages claim infringed on Oracle’s First Amendment rights. On August 27, 2015, the California Court of Appeal rejected Oracle’s appeal. The matter was remanded to the trial court for Phase 2 of the trial, which began on May 23, 2016, and was submitted to the jury on June 29, 2016. On June 30, 2016, the jury returned a verdict in favor of HP Inc., awarding HP Inc. approximately $3 billion in damages: $1.7 billion for past lost profits and $1.3 billion for future lost profits. On October 20, 2016, the court entered judgment for this amount with interest accruing until the judgment is paid. Oracle’s motion for a new trial was denied on December 19, 2016, and Oracle filed its notice of appeal from the trial court’s judgment on January 17, 2017. On February 2, 2017, HP Inc. filed a notice of cross-appeal challenging the trial court’s denial of prejudgment interest. On May 16, 2019, HP Inc. filed its application to renew the judgment. As of May 16, 2019, the renewed judgment is approximately $3.8 billion. Daily interest on the renewed judgment is now accruing at $1 million and will be recorded upon receipt. On June 14, 2021, the California Court of Appeal affirmed the judgment of the trial court. Oracle filed a Petition for Rehearing with the California Court of Appeal, which was denied on July 8, 2021. On July 26, 2021, Oracle filed a Petition for Review with the California Supreme Court. HP, Inc. filed an Answer to the Petition for Review on August 16, 2021. Pursuant to the terms of the Separation and Distribution Agreement, HP Inc. and Hewlett Packard Enterprise will share equally in any recovery from Oracle once Hewlett Packard Enterprise has been reimbursed for all costs incurred in the prosecution of the action prior to the HP Inc. /Hewlett Packard Enterprise separation on November 1, 2015.

Oracle America, Inc., et al. v. Hewlett Packard Enterprise Company (Terix copyright matter). On March 22, 2016, Oracle filed a complaint against HPE in the United States District Court for the Northern District of California, alleging copyright infringement, interference with contract, intentional interference with prospective economic relations, and unfair competition. Oracle’s claims arise out of HPE’s prior use of a third-party maintenance provider named Terix Computer Company, Inc. (“Terix”). Oracle contends that in connection with HPE’s use of Terix as a subcontractor for certain customers of HPE’s multivendor support business, Oracle’s copyrights were infringed, and HPE is liable for vicarious and contributory infringement and related claims. The lawsuit against HPE follows a prior lawsuit brought by Oracle against Terix in 2013 relating to Terix’s alleged unauthorized provision of Solaris patches to customers on Oracle hardware. On January 29, 2019, the court granted HPE’s Motion for Summary Judgment as to all of Oracle’s claims. On February 20, 2019, the court entered judgment in favor of HPE, dismissing Oracle’s claims in their entirety. Oracle appealed the trial court’s ruling to the United States Court of Appeals for the Ninth Circuit. On August 20, 2020, the United States Court of Appeals for the Ninth Circuit issued its ruling, affirming in part and reversing in part the trial court’s decision granting summary judgment in favor of HPE. On October 6, 2020, the matter was remanded to the United States District Court for the Northern District of California. On June 4, 2021, the Court issued an order denying HPE’s motion for summary judgment and granting-in-part Oracle’s motion for partial summary judgment as to a certain of HPE’s defenses. The Court has set trial to begin on November 29, 2021.

Network-1 Technologies, Inc. v. Alcatel-Lucent USA Inc., et al. This patent infringement action was filed on September 15, 2011 in the United States District Court for the Eastern District of Texas, alleging that various Hewlett Packard Enterprise switches and access points infringe Network-1’s patent relating to the 802.3af and 802.3at “Power over Ethernet” standards. Network-1 seeks damages, attorneys’ fees and costs, and declaratory and injunctive relief. A jury trial was conducted beginning on November 6, 2017. On November 13, 2017, the jury returned a verdict in favor of HPE, finding that HPE did not infringe Network-1’s patent and that the patent was invalid. On August 29, 2018, the court denied Network-1's motion for a new trial on infringement and entered the jury's verdict finding that HPE does not infringe the relevant Network-1 patent. The court also granted Network-1's motion for Judgment as a Matter of Law on validity. Network-1 appealed the jury verdict of non-infringement to the United States Court of Appeals for the Federal Circuit. HPE cross-appealed the court’s decision to grant Network-1's motion for Judgment as a Matter of Law on validity. On September 24, 2020, the Federal Circuit issued its ruling, affirming-in-part and reversing-in-part the jury's verdict, and finding that an erroneous claim construction was presented to the jury that prejudiced Network-1. The matter has been remanded back to United States District Court for the Eastern District of Texas for further proceedings consistent with the Federal Circuit's ruling. On May 7, 2021, the District Court issued

an order granting Network-1's motion for a new trial. The parties have agreed to the terms of a settlement that resolves the litigation with no material financial statements impact. The lawsuit was dismissed on August 13, 2021 and the matter is now closed.

Q3 Networking Litigation. On September 21 and September 22, 2020, Q3 Networking LLC filed complaints against HPE, Aruba Networks, Commscope and Netgear in the United States District Court for the District of Delaware and the United States International Trade Commission (“ITC”). Both complaints allege infringement of four patents, and the ITC complaint defines the “accused products” as “routers, access points, controllers, network management servers, other networking products, and hardware and software components thereof.” The ITC action was instituted on October 23, 2020. The evidentiary hearing before the ITC has been completed and an initial determination is expected in 2021. The District of Delaware action has been stayed pending resolution of the ITC action.

Shared Litigation with HP Inc., DXC and Micro Focus

As part of the Separation and Distribution Agreements between Hewlett Packard Enterprise and HP Inc., Hewlett Packard Enterprise and DXC, and Hewlett Packard Enterprise and Seattle SpinCo, the parties to each agreement agreed to cooperate with each other in managing certain existing litigation related to both parties' businesses. The Separation and Distribution Agreements also included provisions that assign to the parties responsibility for managing pending and future litigation related to the general corporate matters of HP Inc. (in the case of the separation of Hewlett Packard Enterprise from HP Inc.) or of Hewlett Packard Enterprise (in the case of the separation of DXC from Hewlett Packard Enterprise and the separation of Seattle SpinCo from Hewlett Packard Enterprise), in each case arising prior to the applicable separation.

Environmental

The Company's operations and products are or may in the future become subject to various federal, state, local and foreign laws and regulations concerning environmental protection, including laws addressing the discharge of pollutants into the air and water, the management and disposal of hazardous substances and wastes, the clean-up of contaminated sites, the substances and materials used in the Company's products, the energy consumption of products, services and operations and the operational or financial responsibility for recycling, treatment and disposal of those products. This includes legislation that makes producers of electrical goods, including servers and networking equipment, financially responsible for specified collection, recycling, treatment and disposal of past and future covered products (sometimes referred to as "product take-back legislation"). The Company could incur substantial costs, its products could be restricted from entering certain jurisdictions, and it could face other sanctions, if it were to violate or become liable under environmental laws or if its products become non-compliant with environmental laws. The Company's potential exposure includes impacts on revenue, fines and civil or criminal sanctions, third-party property damage or personal injury claims and clean-up costs. The amount and timing of costs to comply with environmental laws are difficult to predict.

In particular, the Company may become a party to, or otherwise involved in, proceedings brought by U.S. or state environmental agencies under the Comprehensive Environmental Response, Compensation and Liability Act ("CERCLA"), known as "Superfund," or other federal, state or foreign laws and regulations addressing the clean-up of contaminated sites, and may become a party to, or otherwise involved in, proceedings brought by private parties for contribution towards clean-up costs. The Company is also contractually obligated to make financial contributions to address actions related to certain environmental liabilities, both ongoing and arising in the future, pursuant to its Separation and Distribution Agreement with HP Inc.

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Overview and Summary of Significant Accounting Policies (Policies)

9 Months Ended

Jul. 31, 2021

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

The Condensed Consolidated Financial Statements of the Company were prepared in accordance with United States ("U.S.") Generally Accepted Accounting Principles ("GAAP"). 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 July 31, 2021 and October 31, 2020, its results of operations for the three and nine months ended July 31, 2021 and 2020, its cash flows for the nine months ended July 31, 2021 and 2020, and its statements of stockholders' equity for the three and nine months ended July 31, 2021 and 2020.

The results of operations for the three and nine months ended July 31, 2021 and the cash flows for the nine months ended July 31, 2021 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, 2020, including "Management's Discussion and Analysis of Financial Condition and Results of Operations", "Quantitative and Qualitative Disclosures About Market Risk" and the Consolidated Financial Statements and notes thereto included in Items 7, 7A and 8, respectively.

Principles of Consolidation

Principles of Consolidation

The accompanying 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.

The Company consolidates a Variable Interest Entity (“VIE”) where it has been determined that the Company is the primary beneficiary of the entity’s operation. In evaluating whether the Company is the primary beneficiary, the Company evaluates its power to direct the most significant activities of the VIE by considering the purpose and design of the entity and the risks the entity was designed to create and pass through to its variable interest holders. The Company also evaluates its economic interests in the VIE.

The Company accounts for investments in companies over which it has the ability to exercise significant influence but does not hold a controlling interest under the equity method of accounting, and the Company records its proportionate share of income or losses in Earnings from equity interests in the Condensed Consolidated Statements of Earnings.

Non-controlling interests are presented as a separate component within Total stockholders' equity in the Condensed Consolidated Balance Sheets. Net earnings attributable to non-controlling interests are recorded within Interest and other, net in the Condensed Consolidated Statements of Earnings and are not presented separately, as they were not material for any periods presented.

Segment Realignment and Reclassifications

Segment Realignment and Reclassifications

Effective at the beginning of the first quarter of fiscal 2021, HPE implemented certain organizational changes to align its segment financial reporting more closely with its current business structure. These organizational changes are:

(i) the transfer of the lifecycle event services business, previously reported within the Advisory and Professional Services ("A & PS") reportable segment to Compute, Storage and HPC & MCS reportable segments; (ii) the transfer of certain software and related services business, previously reported within the Compute, Storage and A & PS reportable segments to the Corporate Investments and Other reportable segment, to form a new Software operating segment; and (iii) the transfer of the remaining A & PS operating segment, previously reported as a separate reportable segment, to the Corporate Investments and Other reportable segment. As a result of these changes, the Corporate Investments and Other Segment now includes the A & PS operating segment, the Communications and Media Solutions operating segment, the Software operating segment, and Hewlett Packard Enterprise Labs which is responsible for research and development.

Additionally, effective at the beginning of the first quarter of fiscal 2021, the Company has excluded stock-based compensation expense from its segment earnings from operations.

The Company reflected these changes to its segment information retrospectively to the earliest period presented, which primarily resulted in the realignment of net revenue, operating profit and total assets 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.

Segment Policy

There have been no changes to the Company's segment accounting policies disclosed in the Company's Annual Report on Form 10-K for the fiscal year ended October 31, 2020, except for the organizational changes and the change in allocation of stock based compensation expense described in Note 1, "Overview and Summary of Significant Accounting Policies".

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 initial direct costs, amortization of intangible assets, impairment of goodwill, transformation costs, disaster charges, acquisition, disposition and other related charges.

Significant Accounting Policies

Significant Accounting Policies

Except for the change in certain accounting policies upon adoption of the accounting standards described below, there have been no significant 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, 2020.

Recently Adopted and Recently Enacted Accounting Pronouncements

Recently Adopted Accounting Pronouncements

In January 2021, the FASB issued guidance to clarify that all derivative instruments affected by changes to the interest rates used for discounting, margining or contract price alignment can apply certain optional expedients and exceptions mentioned in its reference rate reform guidance even though they do not reference to LIBOR or a rate being discontinued. This guidance was effective upon issuance. The Company adopted the guidance in the first quarter of fiscal 2021 and there was no impact on its Condensed Consolidated Financial Statements upon adoption.

In December 2019, the FASB amended the existing accounting standards for income taxes. The amendments clarify and simplify the accounting for income taxes by eliminating certain exceptions to the general principles. The Company adopted the

guidance in the first quarter of fiscal 2021 and there was no material impact on its Condensed Consolidated Financial Statements.

In August 2018, the FASB issued guidance on a customer's accounting for implementation costs incurred in cloud-computing arrangements that are hosted by a vendor. Certain types of implementation costs should be capitalized and amortized over the term of the hosting arrangement. The Company adopted the guidance in the first quarter of fiscal 2021 and there was no material impact on its Condensed Consolidated Financial Statements.

In August 2018, the FASB issued guidance which changes the disclosure requirements for fair value measurements and defined benefit pension plans. The Company adopted the guidance in the first quarter of fiscal 2021 and there was no impact on its Condensed Consolidated Financial Statements. However, the Company expects to have additional disclosures relating to retirement and post-retirement benefit plans in its Annual Report on Form 10-K for the fiscal year ended October 31, 2021.

In June 2016, the FASB amended the existing accounting standards for the measurement of credit losses with additional amendments in 2018, 2019 and 2020. These amendments primarily require the measurement and recognition of current expected credit losses for financial assets held at amortized cost. The amended accounting standard replaces the existing incurred loss impairment model with an expected loss model, which requires the use of forward-looking information to calculate credit loss estimates. It also eliminates the concept of other-than-temporary impairment and requires credit losses related to available-for-sale debt securities to be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. These changes will result in earlier recognition of credit losses. The Company adopted the Current Expected Credit Losses standard (the “CECL standard”) as of November 1, 2020 using the modified retrospective method, with the cumulative-effect adjustment recorded to the opening balance of Accumulated deficit within stockholders’ equity in the Condensed Consolidated Balance Sheets. The cumulative effect of adopting the CECL standard resulted in an increase of $28 million to the allowance for expected credit losses within financing receivables, and a corresponding increase of $25 million, net of $3 million of deferred taxes to Accumulated deficit as of November 1, 2020.

The allowance for expected credit losses related to accounts receivables is comprised of a general reserve and a specific reserve. The Company may record a specific reserve for individual accounts when the Company becomes aware of specific customer circumstances, such as in the case of a bankruptcy filing or deterioration in the customer's operating results or financial position. If there are additional changes in circumstances related to the specific customer, the Company further adjusts estimates of the recoverability of receivables. The Company maintains an allowance for credit losses for all other customers based on a variety of factors, including the use of third-party credit risk models that generate quantitative measures of default probabilities based on market factors, the financial condition of customers and the length of time receivables are past due. These qualitative factors are subjective and require a degree of management judgement. The past due or delinquency status of a receivable is based on the contractual payment terms of the receivable. The Company establishes an allowance for expected credit losses related to accounts receivable, including unbilled receivables.

The allowance for expected credit losses related to financing receivables is comprised of a general reserve and a specific reserve. The Company establishes a specific reserve for financing receivables with identified exposures, such as customer defaults, bankruptcy or other events, that make it unlikely the Company will recover its investment. For individually evaluated receivables, the Company determines the expected cash flow for the receivable, which includes consideration of estimated proceeds from disposition of the collateral and calculates an estimate of the potential loss and the probability of loss. For those accounts where a loss is considered probable, the Company records a specific reserve. The Company maintains a general reserve using a credit loss model on a regional basis and bases such percentages on several factors, including consideration of historical credit losses and portfolio delinquencies, trends in the overall weighted-average risk rating of the portfolio, current economic conditions, and forward-looking information, including reasonable and supportable forecasts. The Company believes the economic forecasts employed represent reasonable and supportable forecasts, followed by a reversion to long term trends. The Company excludes accounts evaluated as part of the specific reserve from the general reserve analysis. The Company generally writes off a receivable or records a specific reserve when a receivable becomes 180 days past due, or sooner if the Company determines that the receivable is not collectible.

The Company’s debt securities are generally considered available-for-sale and are reported at fair value with unrealized gains and losses, net of applicable taxes, recorded in Accumulated other comprehensive loss in the Condensed Consolidated Balance Sheets. Realized gains and losses for available-for-sale securities are calculated based on the specific identification method and included in Interest and other, net in the Condensed Consolidated Statements of Earnings. The Company monitors its investment portfolio for potential impairment on a quarterly basis. When the carrying amount of an investment in debt securities exceeds its fair value and the decline in value is determined to be due to credit-related factors, the Company recognizes the impairment by way of an allowance for credit loss in Interest and other, net in the Condensed Consolidated

Statement of Earnings while the impairment that is not credit related is recorded in Accumulated other comprehensive loss in the Condensed Consolidated Balance Sheets.

Recently Enacted Accounting Pronouncements

In January 2020, the FASB issued guidance to clarify certain interactions between the guidance to account for equity securities, the guidance to account for investments under the equity method of accounting, and the guidance to account for derivatives and hedging. The new guidance clarifies the application of measurement alternatives and the accounting for certain forward contracts and purchased options to acquire investments. The Company is required to adopt the guidance in the first quarter of fiscal 2022, though early adoption is permitted. The Company does not expect the impact on adoption of these amendments on its Consolidated Financial Statements to be material.

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.

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Segment Information (Tables)

9 Months Ended

Jul. 31, 2021

Segment Reporting [Abstract]

Segment Operating Results from Continuing Operations

Segment Operating Results

Segment net revenue and operating results were as follows:

	Compute		HPC & MCS		Storage		Intelligent Edge		Financial Services		Corporate Investments and Other		Total
	In millions
Three months ended July 31, 2021
Net revenue	$	3,033	$	671	$	1,154	$	865	$	842	$	332	$	6,897
Intersegment net revenue	71		70		22		2		2		—		167
Total segment net revenue	$	3,104	$	741	$	1,176	$	867	$	844	$	332	$	7,064
Segment earnings (loss) from operations	$	347	$	29	$	178	$	137	$	94	$	(28)	$	757
Three months ended July 31, 2020
Net revenue	$	3,265	$	650	$	1,109	$	682	$	807	$	303	$	6,816
Intersegment net revenue	144		17		23		2		4		—		190
Total segment net revenue	$	3,409	$	667	$	1,132	$	684	$	811	$	303	$	7,006
Segment earnings (loss) from operations	$	318	$	47	$	170	$	71	$	66	$	(68)	$	604
Nine months ended July 31, 2021
Net revenue	$	8,889	$	2,081	$	3,456	$	2,465	$	2,536	$	1,003	$	20,430
Intersegment net revenue	177		107		50		7		7		—		348
Total segment net revenue	$	9,066	$	2,188	$	3,506	$	2,472	$	2,543	$	1,003	$	20,778
Segment earnings (loss) from operations	$	1,024	$	91	$	604	$	413	$	269	$	(84)	$	2,317
Nine months ended July 31, 2020
Net revenue	$	8,796	$	2,063	$	3,406	$	2,058	$	2,494	$	957	$	19,774
Intersegment net revenue	298		50		64		11		9		1		433
Total segment net revenue	$	9,094	$	2,113	$	3,470	$	2,069	$	2,503	$	958	$	20,207
Segment earnings (loss) from operations	$	797	$	156	$	592	$	240	$	218	$	(172)	$	1,831

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 July 31,				Nine Months Ended July 31,
	2021		2020		2021		2020
	In millions
Net Revenue:
Total segments	$	7,064	$	7,006	$	20,778	$	20,207
Eliminations of intersegment net revenue	(167)		(190)		(348)		(433)
Total Hewlett Packard Enterprise consolidated net revenue	$	6,897	$	6,816	$	20,430	$	19,774
Earnings before taxes:
Total segment earnings from operations	$	757	$	604	$	2,317	$	1,831
Unallocated corporate costs and eliminations	(84)		(65)		(186)		(165)
Stock-based compensation expense	(86)		(55)		(294)		(215)
Amortization of initial direct costs	(2)		(3)		(6)		(9)
Amortization of intangible assets	(82)		(95)		(276)		(299)
Transformation costs	(213)		(357)		(733)		(646)
Disaster charges	(5)		(2)		(6)		(24)
Acquisition, disposition and other related charges	(3)		(15)		(34)		(82)
Impairment of goodwill	—		—		—		(865)
Interest and other, net	(50)		(71)		(105)		(158)
Tax indemnification and related adjustments	76		(30)		60		(86)
Non-service net periodic benefit credit	19		28		53		101
Earnings from equity interests	79		27		109		50
Total Hewlett Packard Enterprise consolidated earnings (loss) before taxes	$	406	$	(34)	$	899	$	(567)

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
	July 31, 2021		October 31, 2020
	In millions
Compute	$	16,339	$	14,962
HPC & MCS	6,502		6,245
Storage	6,674		6,438
Intelligent Edge	4,473		4,352
Financial Services	14,651		14,765
Corporate Investments and Other	1,244		1,124
Corporate and unallocated assets	6,554		6,129
Total Hewlett Packard Enterprise consolidated total assets	$	56,437	$	54,015

Net Revenue by Geographic Areas

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

	Three Months Ended July 31,				Nine Months Ended July 31,
	2021		2020		2021		2020
	In millions
Americas:
United States	$	2,237	$	2,362	$	6,433	$	6,586
Americas excluding U.S.	461		395		1,357		1,273
Total Americas	$	2,698	$	2,757	$	7,790	$	7,859
Europe, Middle East and Africa	2,510		2,448		7,684		7,206
Asia Pacific and Japan	1,689		1,611		4,956		4,709
Total Hewlett Packard Enterprise consolidated net revenue	$	6,897	$	6,816	$	20,430	$	19,774

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Transformation Programs (Tables)

9 Months Ended

Jul. 31, 2021

Restructuring and Related Activities [Abstract]

Restructuring and Related Costs

During the three and nine months ended July 31, 2021, the Company incurred $147 million and $552 million, respectively, of charges related to the cost optimization and prioritization plan of which $146 million and $549 million were recorded within Transformation costs, and $1 million and $3 million, respectively, was recorded within Non-service net periodic benefit credit in the Condensed Consolidated Statements of Earnings. During the three and nine months ended July 31, 2020, the Company incurred $238 million of charges related to the cost optimization and prioritization plan which was recorded within Transformation costs in the Condensed Consolidated Statements of Earnings, the components of which were as follows:

	Three months ended July 31,				Nine months ended July 31,
	2021		2020		2021		2020
	In millions
Program management	$	17	$	14	$	72	$	14
IT Costs	6		4		9		4
Restructuring charges	124		220		471		220
Total	$	147	$	238	$	552	$	238

The components of Transformation costs relating to HPE Next were as follows:

	Three months ended July 31,				Nine months ended July 31,
	2021		2020		2021		2020
	In millions
Program management	$	5	$	10	$	10	$	28
IT costs	54		25		126		71
Restructuring charges	2		84		21		332
Gain on real estate sales	—		(7)		(3)		(44)
Impairment on real estate assets	—		—		4		—
Other	6		7		26		21
Total	$	67	$	119	$	184	$	408

Schedule of Restructuring Reserve by Cost

Restructuring activities related to the Company's employees and infrastructure under the cost optimization and prioritization plan and HPE Next Plan, were presented in the table below:

	Cost Optimization and Prioritization Plan				HPE Next Plan
	Employee Severance		Infrastructure and other		Employee Severance		Infrastructure and other
	In millions
Liability as of October 31, 2020	$	210	$	68	$	144	$	52
Charges	199		272		—		21
Cash payments	(214)		(86)		(94)		(29)
Non-cash items	1		(68)		3		(4)
Liability as of July 31, 2021	$	196	$	186	$	53	$	40
Total costs incurred to date, as of July 31, 2021	$	429	$	371	$	1,261	$	246
Total expected costs to be incurred as of July 31, 2021	$	700	$	610	$	1,261	$	248

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Retirement Benefit Plans (Tables)

9 Months Ended

Jul. 31, 2021

Retirement Benefits [Abstract]

Summary of Net Benefit Cost

The Company's net pension benefit (credit) cost for defined benefit plans recognized in the Condensed Consolidated Statements of Earnings was as follows:

	Three months ended July 31,				Nine months ended July 31,
	2021		2020		2021		2020
	In millions
Service cost	$	24	$	23	$	73	$	69
Interest cost(1)	30		35		89		106
Expected return on plan assets(1)	(121)		(133)		(360)		(402)
Amortization and deferrals(1):
Actuarial loss	74		65		223		194
Prior service benefit	(3)		(3)		(10)		(10)
Net periodic benefit (credit) cost	4		(13)		15		(43)
Settlement loss(1)	—		7		1		8
Special termination benefits(1)	1		—		3		1
Total net benefit (credit) cost	$	5	$	(6)	$	19	$	(34)

(1)These non-service components of net periodic benefit cost were included in Non-service net periodic benefit credit in the Condensed Consolidated Statements of Earnings.

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Taxes on Earnings (Tables)

9 Months Ended

Jul. 31, 2021

Income Tax Disclosure [Abstract]

Schedule of Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities included in the Condensed Consolidated Balance Sheets were as follows:

	As of
	July 31, 2021		October 31, 2020
	In millions
Deferred tax assets	$	2,025	$	1,778
Deferred tax liabilities	(384)		(290)
Deferred tax assets net of deferred tax liabilities	$	1,641	$	1,488

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Balance Sheet Details (Tables)

9 Months Ended

Jul. 31, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Cash and Cash Equivalents

Cash, cash equivalents and restricted cash

	As of
	July 31, 2021		October 31, 2020
	In millions
Cash and cash equivalents	$	5,293	$	4,233
Restricted cash(1)	359		388
Total	$	5,652	$	4,621

(1) Restricted cash is included within Other current assets in the accompanying Condensed Consolidated Balance Sheets and is primarily related to cash received under the Company's collateral securities agreements for its derivative instruments and cash restricted under the fixed-term securitization program for the issuance of asset-backed debt securities.

Schedule of Inventory

Inventory

	As of
	July 31, 2021		October 31, 2020
	In millions
Finished goods	$	1,373	$	1,197
Purchased parts and fabricated assemblies	2,569		1,477
Total	$	3,942	$	2,674

Schedule of Property, Plant and Equipment

Property, Plant and Equipment

	As of
	July 31, 2021		October 31, 2020
	In millions
Land	$	75	$	89
Buildings and leasehold improvements	1,697		1,886
Machinery and equipment, including equipment held for lease	9,855		9,624
	11,627		11,599
Accumulated depreciation	(6,117)		(5,974)
Total	$	5,510	$	5,625

Changes in Aggregate Product Warranty Liabilities

The Company's aggregate product warranty liability as of July 31, 2021, and changes were as follows:

	Nine Months Ended July 31, 2021
	In millions
Balance at beginning of period	$	385
Charges	159
Adjustments related to pre-existing warranties	(27)
Settlements made	(180)
Balance at end of period	$	337

Summary of Accounts Receivable, Net

A summary of accounts receivable, net, including unbilled receivables was as follows:

	As of
	July 31, 2021		October 31, 2020
	In millions
Accounts receivable, net
Accounts receivable	$	3,125	$	3,227
Unbilled receivables	214		205
Allowances	(42)		(46)
Total	$	3,297	$	3,386

Schedule of Trade Receivables Sold and Cash Received

The allowances for credit losses related to accounts receivable and changes therein were as follows:

	As of
	July 31, 2021		October 31, 2020
	In millions
Balance at beginning of the period	$	46	$	31
Provision for credit losses	8		29
Write off's, net of recoveries	(12)		(14)
Balance at end of the period	$	42	$	46

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Accounting for Leases as a Lessor (Tables)

9 Months Ended

Jul. 31, 2021

Leases [Abstract]

Components of Financing Receivables

The components of financing receivables were as follows:

	As of
	July 31, 2021		October 31, 2020
	In millions
Minimum lease payments receivable	$	9,346	$	9,448
Unguaranteed residual value	386		364
Unearned income	(725)		(754)
Financing receivables, gross	9,007		9,058
Allowance for credit losses	(234)		(154)
Financing receivables, net	8,773		8,904
Less: current portion	(3,814)		(3,794)
Amounts due after one year, net	$	4,959	$	5,110

Sales-type and Direct Financing Leases, Lease Receivable, Maturity

As of July 31, 2021 and October 31, 2020, scheduled maturities of the Company's minimum lease payments receivable were as follows:

	As of
	July 31, 2021		October 31, 2020
Fiscal year	In millions
Remainder of fiscal 2021	$	1,496	$	4,182
2022	3,389		2,662
2023	2,306		1,572
2024	1,326		720
2025	609		252
Thereafter	220		60
Total undiscounted cash flows	$	9,346	$	9,448
Present value of lease payments (recognized as finance receivables)	$	8,621	$	8,694
Unearned income	$	725	$	754

Credit Risk Profile of Gross Financing Receivables

The credit risk profile of financing receivables, based on internal risk ratings as of July 31, 2021, presented on amortized cost basis by year of origination was as follows:

	As of July 31, 2021
	Risk Rating
	Low		Moderate		High
Fiscal Year	In millions
2021	$	1,341	$	1,156	$	40
2020	1,607		1,203		94
2019	965		880		95
2018	469		491		88
2017 and prior	198		271		109
Total	$	4,580	$	4,001	$	426

The credit risk profile of gross financing receivables, based on internal risk ratings as of October 31, 2020, was as follows:

	As of
	October 31, 2020
	In millions
Risk Rating:
Low	$	4,590
Moderate	4,091
High	377
Total	$	9,058

Allowance for Doubtful Accounts for Financing Receivables

The allowance for credit losses for financing receivables as of July 31, 2021 and October 31, 2020 and the respective changes during the nine and twelve months then ended were as follows:

	As of
	July 31, 2021		October 31, 2020
	In millions
Balance at beginning of period	$	154	$	131
Adjustment for adoption of the new credit loss standard	28		—
Provision for credit losses	59		43
Adjustment to the existing allowance	19		—
Write-offs	(26)		(20)
Balance at end of period	$	234	$	154

Summary of the Aging and Non-accrual Status of Gross Financing Receivables

The following table summarizes the aging and non-accrual status of gross financing receivables:

	As of
	July 31, 2021		October 31, 2020
	In millions
Billed:(1)
Current 1-30 days	$	347	$	340
Past due 31-60 days	38		43
Past due 61-90 days	17		22
Past due > 90 days	121		140
Unbilled sales-type and direct-financing lease receivables	8,484		8,513
Total gross financing receivables	$	9,007	$	9,058
Gross financing receivables on non-accrual status(2)	$	285	$	364
Gross financing receivables 90 days past due and still accruing interest(2)	$	92	$	74

(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.

Operating Lease Assets Included in Machinery and Equipment

Operating lease assets included in Property, plant and equipment in the Condensed Consolidated Balance Sheets were as follows:

	As of
	July 31, 2021		October 31, 2020
	In millions
Equipment leased to customers	$	7,166	$	7,184
Accumulated depreciation	(3,223)		(3,157)
Total	$	3,943	$	4,027

Lessor Operating Lease Payments Maturity

Minimum future rentals on non-cancelable operating leases related to leased equipment were as follows:

	As of
	July 31, 2021
Fiscal year	In millions
Remainder of fiscal 2021	$	510
2022	1,524
2023	873
2024	300
2025	44
Thereafter	11
Total	$	3,262

Lessor Lease Activity

The following table presents amounts included in the Condensed Consolidated Statement of Earnings related to lessor activity:

	Three Months Ended July 31,				Nine Months Ended July 31,
	2021		2020		2021		2020
	In millions
Sales-type leases and direct financing leases:
Interest income	$	125	$	115	$	371	$	343
Lease income - operating leases	598		588		1,797		1,821
Total lease income	$	723	$	703	$	2,168	$	2,164

Schedule of Variable Interest Entities

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
	July 31, 2021		October 31, 2020
Assets held by VIE	In millions
Other current assets	$	179	$	120
Financing receivables
Short-term	$	805	$	531
Long-term	$	882	$	584
Property, plant and equipment	$	1,010	$	665
Liabilities held by VIE
Notes payable and short-term borrowings, net of unamortized debt issuance costs	$	1,389	$	886
Long-term debt, net of unamortized debt issuance costs	$	1,198	$	834

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Goodwill (Tables)

9 Months Ended

Jul. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Allocation and Changes in the Carrying Amount of Goodwill

The following table represents the carrying value of goodwill, by reportable segment as of October 31, 2020 and July 31, 2021:

	Compute		HPC & MCS		Storage		Intelligent Edge		Financial Services		Corporate Investments and Other		Total
	In millions
Balance at October 31, 2020 (1) (2)	$	7,532	$	3,616	$	3,946	$	2,566	$	144	213		$	18,017
Goodwill from current period acquisitions	—		86		—		—		—		—		86
Goodwill adjustments	—		—		—		(11)		—		—		(11)
Balance at July 31, 2021 (2)	$	7,532	$	3,702	$	3,946	$	2,555	$	144	$	213	$	18,092

(1)As a result of the organizational realignments which were effective as of November 1, 2020, (described in Note 1, "Overview and Summary of Significant Accounting Policies"), $213 million of goodwill was reallocated from Storage segment to Corporate Investments and Other segment as of the beginning of the period using a relative fair value approach.

(2)Goodwill is net of accumulated impairment losses of $953 million. Of this amount, $865 million related to the HPC & MCS reporting unit was recorded during the second quarter of 2020 and $88 million related to the CMS reporting unit within Corporate Investments and Other was recorded during the fourth quarter of fiscal 2018. There is no goodwill remaining in the CMS reporting unit.

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Fair Value (Tables)

9 Months Ended

Jul. 31, 2021

Fair Value Disclosures [Abstract]

Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following table presents the Company's assets and liabilities that are measured at fair value on a recurring basis:

	As of July 31, 2021								As of October 31, 2020
	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
Assets
Cash Equivalents and Investments:
Time deposits	$	—	$	1,398	$	—	$	1,398	$	—	$	939	$	—	$	939
Money market funds	2,003		—		—		2,003		1,167		—		—		1,167
Equity securities	2		—		92		94		—		—		—		—
Foreign bonds	1		125		—		126		—		125		—		125
Other debt securities	—		—		43		43		—		—		21		21
Derivative Instruments:
Interest rate contracts	—		153		—		153		—		220		—		220
Foreign exchange contracts	—		211		—		211		—		290		—		290
Other derivatives	—		1		—		1		—		—		—		—
Total assets	$	2,006	$	1,888	$	135	$	4,029	$	1,167	$	1,574	$	21	$	2,762
Liabilities
Derivative Instruments:
Interest rate contracts	$	—	$	—	$	—	$	—	$	—	$	2	$	—	$	2
Foreign exchange contracts	—		190		—		190		—		189		—		189
Other derivatives	—		—		—		—		—		3		—		3
Total liabilities	$	—	$	190	$	—	$	190	$	—	$	194	$	—	$	194

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Financial Instruments (Tables)

9 Months Ended

Jul. 31, 2021

Investments, All Other Investments [Abstract]

Cash Equivalents and Available-for-Sale Investments

Cash equivalents and available-for-sale debt investments were as follows:

	As of July 31, 2021						As of October 31, 2020
	Cost		Gross Unrealized Gain		Fair Value		Cost		Gross Unrealized Gain		Fair Value
	In millions
Cash Equivalents:
Time deposits	$	1,398	$	—	$	1,398	$	939	$	—	$	939
Money market funds	2,003		—		2,003		1,167		—		1,167
Total cash equivalents	3,401		—		3,401		2,106		—		2,106
Available-for-Sale Debt Investments:
Foreign bonds	110		16		126		108		17		125
Other debt securities	42		1		43		20		1		21
Total available-for-sale debt investments	152		17		169		128		18		146
Total cash equivalents and available-for-sale debt investments	$	3,553	$	17	$	3,570	$	2,234	$	18	$	2,252

Contractual Maturities of Investments in Available-for-Sale Debt Securities

Contractual maturities of available-for-sale debt investments were as follows:

	July 31, 2021
	Amortized Cost		Fair Value
	In millions
Due in one to five years	$	25	$	25
Due in more than five years	127		144
	$	152	$	169

Gross Notional and Fair Value of Derivative Instruments in the Condensed Consolidated Balance Sheets

The gross notional and fair value of derivative instruments in the Condensed Consolidated Balance Sheets were as follows:

	As of July 31, 2021										As of October 31, 2020
			Fair Value										Fair Value
	Outstanding Gross Notional		Other Current Assets		Long-Term Financing Receivables and Other Assets		Other Accrued Liabilities		Long-Term Other Liabilities		Outstanding Gross Notional		Other Current Assets		Long-Term Financing Receivables and Other Assets		Other Accrued Liabilities		Long-Term Other Liabilities
	In millions
Derivatives designated as hedging instruments
Fair value hedges:
Interest rate contracts	$	3,850	$	—	$	153	$	—	$	—	$	3,850	$	—	$	220	$	—	$	—
Cash flow hedges:
Foreign currency contracts	7,872		89		46		65		62		7,652		75		85		95		38
Interest rate contracts	—		—		—		—		—		500		—		—		2		—
Net investment hedges:
Foreign currency contracts	1,821		25		24		18		20		1,804		34		44		11		9
Total derivatives designated as hedging instruments	13,543		114		223		83		82		13,806		109		349		108		47
Derivatives not designated as hedging instruments
Foreign currency contracts	5,923		20		7		23		2		6,157		43		9		35		1
Other derivatives	113		1		—		—		—		105		—		—		3		—
Total derivatives not designated as hedging instruments	6,036		21		7		23		2		6,262		43		9		38		1
Total derivatives	$	19,579	$	135	$	230	$	106	$	84	$	20,068	$	152	$	358	$	146	$	48

Offsetting Assets

The information related to the potential effect of the Company's use of the master netting agreements and collateral security agreements were as follows:

	As of July 31, 2021
	In the Condensed Consolidated Balance Sheets
	(i)		(ii)		(iii) = (i)–(ii)		(iv)		(v)			(vi) = (iii)–(iv)–(v)
							Gross Amounts Not Offset
	Gross Amount Recognized		Gross Amount Offset		Net Amount Presented		Derivatives		Financial Collateral			Net Amount
	In millions
Derivative assets	$	365	$	—	$	365	$	154	$	203	(1)	$	8
Derivative liabilities	$	190	$	—	$	190	$	154	$	30	(2)	$	6

	As of October 31, 2020
	In the Condensed Consolidated Balance Sheets
	(i)		(ii)		(iii) = (i)–(ii)		(iv)		(v)			(vi) = (iii)–(iv)–(v)
							Gross Amounts Not Offset
	Gross Amount Recognized		Gross Amount Offset		Net Amount Presented		Derivatives		Financial Collateral			Net Amount
	In millions
Derivative assets	$	510	$	—	$	510	$	137	$	321	(1)	$	52
Derivative liabilities	$	194	$	—	$	194	$	137	$	55	(2)	$	2

(1)Represents the cash collateral posted by counterparties as of the respective reporting date for the Company's asset position, net of derivative amounts that could be offset, as of, generally, two business days prior to the respective reporting date.

(2)Represents the collateral posted by the Company in cash or through the re-use of counterparty cash collateral as of the respective reporting date for the Company's liability position, net of derivative amounts that could be offset, as of, generally, two business days prior to the respective reporting date. As of July 31, 2021, of the $30 million of collateral posted, $5 million was in cash and $25 million was through re-use of counterparty collateral. As of October 31, 2020, $55 million of collateral posted was entirely by way of re-use of counterparty collateral.

Offsetting Liabilities

The information related to the potential effect of the Company's use of the master netting agreements and collateral security agreements were as follows:

	As of July 31, 2021
	In the Condensed Consolidated Balance Sheets
	(i)		(ii)		(iii) = (i)–(ii)		(iv)		(v)			(vi) = (iii)–(iv)–(v)
							Gross Amounts Not Offset
	Gross Amount Recognized		Gross Amount Offset		Net Amount Presented		Derivatives		Financial Collateral			Net Amount
	In millions
Derivative assets	$	365	$	—	$	365	$	154	$	203	(1)	$	8
Derivative liabilities	$	190	$	—	$	190	$	154	$	30	(2)	$	6

	As of October 31, 2020
	In the Condensed Consolidated Balance Sheets
	(i)		(ii)		(iii) = (i)–(ii)		(iv)		(v)			(vi) = (iii)–(iv)–(v)
							Gross Amounts Not Offset
	Gross Amount Recognized		Gross Amount Offset		Net Amount Presented		Derivatives		Financial Collateral			Net Amount
	In millions
Derivative assets	$	510	$	—	$	510	$	137	$	321	(1)	$	52
Derivative liabilities	$	194	$	—	$	194	$	137	$	55	(2)	$	2

(1)Represents the cash collateral posted by counterparties as of the respective reporting date for the Company's asset position, net of derivative amounts that could be offset, as of, generally, two business days prior to the respective reporting date.

(2)Represents the collateral posted by the Company in cash or through the re-use of counterparty cash collateral as of the respective reporting date for the Company's liability position, net of derivative amounts that could be offset, as of, generally, two business days prior to the respective reporting date. As of July 31, 2021, of the $30 million of collateral posted, $5 million was in cash and $25 million was through re-use of counterparty collateral. As of October 31, 2020, $55 million of collateral posted was entirely by way of re-use of counterparty collateral.

Pre-tax Effect of Derivative Instruments and Related Hedged Items in a Fair Value Hedging Relationship

The amounts recorded on the Condensed Consolidated Balance Sheets related to cumulative basis adjustments for fair value hedges were as follows:

	Carrying amount of the hedged assets/ (liabilities)				Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged assets/ (liabilities)
	As of				As of
	July 31, 2021		October 31, 2020		July 31, 2021		October 31, 2020
	In millions				In millions
Long-term debt	$	(3,994)	$	(4,059)	$	(153)	$	(220)

Pre-tax Effect of Derivative Instruments in Net Investment Hedging Relationships

The pre-tax effect of derivative instruments in cash flow and net investment hedging relationships recognized in Other Comprehensive Income ("OCI") were as follows:

	Gains (Losses) Recognized in OCI on Derivatives
	Three months ended July 31, 2021		Three months ended July 31, 2020		Nine months ended July 31, 2021		Nine months ended July 31, 2020
	In millions
Derivatives in Cash Flow Hedging relationship
Foreign exchange contracts	$	101	$	(456)	$	(183)	$	(79)
Interest rate contracts	—				—		(6)
Derivatives in Net Investment Hedging relationship
Foreign exchange contracts	16		(83)		(61)		50
Total	$	117	$	(539)	$	(244)	$	(35)

Pre-tax Effect of Derivative Instruments in Cash Flow Hedging Relationships

The pre-tax effect of derivative instruments in cash flow and net investment hedging relationships recognized in Other Comprehensive Income ("OCI") were as follows:

	Gains (Losses) Recognized in OCI on Derivatives
	Three months ended July 31, 2021		Three months ended July 31, 2020		Nine months ended July 31, 2021		Nine months ended July 31, 2020
	In millions
Derivatives in Cash Flow Hedging relationship
Foreign exchange contracts	$	101	$	(456)	$	(183)	$	(79)
Interest rate contracts	—				—		(6)
Derivatives in Net Investment Hedging relationship
Foreign exchange contracts	16		(83)		(61)		50
Total	$	117	$	(539)	$	(244)	$	(35)

Effect of Derivative Instruments on the Statement of Earnings

The pre-tax effect of derivative instruments on the Condensed Consolidated Statements of Earnings were as follows:

	Gains (Losses) Recognized in Income
	Three months ended July 31, 2021				Three months ended July 31, 2020				Nine months ended July 31, 2021				Nine months ended July 31, 2020
	Net revenue		Interest and other, net		Net revenue		Interest and other, net		Net revenue		Interest and other, net		Net revenue		Interest and other, net
	In millions
Total amounts of income and expense line items presented in the Condensed Consolidated Statements of Earnings in which the effects of fair value hedges, cash flow hedges and derivatives not designated as hedging instruments are recorded	$	6,897	$	(50)	$	6,816	$	(71)	$	20,430	$	(105)	$	19,774	$	(158)
Gains (losses) on derivatives in fair value hedging relationships
Interest rate contracts
Hedged items	$	—	$	(3)	$	—	$	(13)	$	—	$	67	$	—	$	(198)
Derivatives designated as hedging instruments	—		3		—		13		—		(67)		—		198
Gains (losses) on derivatives in cash flow hedging relationships
Foreign exchange contracts
Amount of gains (losses) reclassified from accumulated other comprehensive income into income	(14)		50		23		(264)		(113)		(147)		97		(55)
Interest rate contracts
Amount of gains (losses) reclassified from accumulated other comprehensive income into income	—		—		—		(1)		—		(2)		—		(1)
Gains (losses) on derivatives not designated as hedging instruments
Foreign exchange contracts	—		(33)		—		8		—		(61)		—		53
Other derivatives	—		(1)		—		(6)		—		3		—		(1)
Total gains (losses)	$	(14)	$	16	$	23	$	(263)	$	(113)	$	(207)	$	97	$	(4)

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Borrowings (Tables)

9 Months Ended

Jul. 31, 2021

Debt Disclosure [Abstract]

Schedule of Notes Payable and Short-term Borrowings, Including the Current Portion of Long-term Debt

Notes payable, short-term borrowings, including the current portion of long-term debt, and long-terms debt were as follows:

	As of
	July 31, 2021		October 31, 2020
	In millions
Current portion of long-term debt	$	2,741	$	2,768
FS commercial paper	694		677
Notes payable to banks, lines of credit and other	301		310
Total notes payable and short-term borrowings	$	3,736	$	3,755
Long-term debt	12,489		12,186
Total Debt	$	16,225	$	15,941

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Stockholders' Equity (Tables)

9 Months Ended

Jul. 31, 2021

Equity [Abstract]

Components of Accumulated Other Comprehensive Loss, Net of Taxes

The components of Accumulated other comprehensive loss, net of taxes as of July 31, 2021, and changes during the nine months ended July 31, 2021 were as follows:

	Net unrealized gains (losses) on available-for-sale securities		Net unrealized gains (losses) on cash flow hedges		Unrealized components of defined benefit plans		Cumulative translation adjustment		Accumulated other comprehensive loss
	In millions
Balance at beginning of period	$	18	$	(7)	$	(3,473)	$	(477)	$	(3,939)
Other comprehensive income (loss) before reclassifications	(1)		(183)		29		20		(135)
Reclassifications of (gains) losses into earnings	—		262		214		—		476
Tax (provision) benefit	—		(14)		(15)		(4)		(33)
Balance at end of period	$	17	$	58	$	(3,245)	$	(461)	$	(3,631)

The components of Accumulated other comprehensive loss, net of taxes as of July 31, 2020, and changes during the nine months ended July 31, 2020 were as follows:

	Net unrealized gains (losses) on available-for-sale securities		Net unrealized gains (losses) on cash flow hedges		Unrealized components of defined benefit plans		Cumulative translation adjustment		Accumulated other comprehensive loss
	In millions
Balance at beginning of period	$	23	$	53	$	(3,366)	$	(437)	$	(3,727)
Effect of change in accounting principle (1)	—		(10)		—		(33)		(43)
Other comprehensive income (loss) before reclassifications	—		(85)		(10)		(46)		(141)
Reclassifications of (gains) losses into earnings	(8)		(41)		191		—		142
Tax (provision) benefit	—		20		(11)		4		13
Balance at end of period	$	15	$	(63)	$	(3,196)	$	(512)	$	(3,756)

(1) Reflects the impact of the adoption of an accounting standard update that allows for the reclassification of stranded tax effects from accumulated other comprehensive loss to accumulated deficit.

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Net Earnings (Loss) Per Share (Tables)

9 Months Ended

Jul. 31, 2021

Earnings Per Share [Abstract]

Reconciliations of the Numerators and Denominators of the Basic and Diluted Net EPS Calculations

The reconciliations of the numerators and denominators of each of the basic and diluted net EPS calculations were as follows:

	Three Months Ended July 31,				Nine Months Ended July 31,
	2021		2020		2021		2020
	In millions, except per share amounts
Numerator:
Net earnings (loss)	$	392	$	9	$	874	$	(479)
Denominator:
Weighted-average shares used to compute basic net EPS	1,314		1,292		1,308		1,294
Dilutive effect of employee stock plans	24		8		20		—
Weighted-average shares used to compute diluted net EPS	1,338		1,300		1,328		1294
Net earnings (loss) per share:
Basic	$	0.30	$	0.01	$	0.67	$	(0.37)
Diluted	$	0.29	$	0.01	$	0.66	$	(0.37)
Anti-dilutive weighted-average stock awards(1)	1		21		7		48

(1)The Company excludes shares potentially issuable under employee stock plans that could dilute basic net EPS in the future from the calculation of diluted net earnings per share, as their effect, if included, would have been anti-dilutive for the periods presented.

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Overview and Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Millions			3 Months Ended
	Sep. 07, 2021	Aug. 31, 2021	Jul. 31, 2021	Apr. 30, 2021	Oct. 31, 2020		Jul. 31, 2020	Apr. 30, 2020	Oct. 31, 2019
Segment Reporting Information [Line Items]
Goodwill			$ 18,092		$ 18,017
Allowance for credit loss			234		154				$ 131
Stockholders' equity			17,073		16,096
Deferred tax assets			2,025		1,778
Subsequent Event | Notes Payable to Banks | Notes Due October 2021 | Forecast
Segment Reporting Information [Line Items]
Stated interest rate	3.50%
Extinguishment of Debt, Amount	$ 500
Subsequent Event | Notes Payable to Banks | Floating Rate Notes Due October 2021 | Forecast
Segment Reporting Information [Line Items]
Extinguishment of Debt, Amount	$ 800
Zerto Ltd. | Subsequent Event
Segment Reporting Information [Line Items]
Purchase price consideration		$ 374
Determined AI Inc. and Ampool Inc.
Segment Reporting Information [Line Items]
Purchase price consideration			117
Goodwill			86
Amortizable intangible assets			24
Cumulative Effect, Period of Adoption, Adjustment
Segment Reporting Information [Line Items]
Allowance for credit loss					28				0
Accounting Standards Update 2016-13 | Cumulative Effect, Period of Adoption, Adjustment
Segment Reporting Information [Line Items]
Allowance for credit loss					28
Deferred tax assets					3
Accumulated Deficit
Segment Reporting Information [Line Items]
Stockholders' equity			$ (7,994)	$ (8,229)	(8,375)		$ (8,377)	$ (8,385)	(7,632)
Accumulated Deficit | Cumulative Effect, Period of Adoption, Adjustment
Segment Reporting Information [Line Items]
Stockholders' equity					(25)	[1]			$ 43	[2]
Accumulated Deficit | Accounting Standards Update 2016-13 | Cumulative Effect, Period of Adoption, Adjustment
Segment Reporting Information [Line Items]
Stockholders' equity					$ 25

[1] Represents the impact of the adoption of the accounting standard on the measurement of credit losses on financial assets.

[2] Represents the impact of the adoption of an accounting standard update that allows for the reclassification of stranded tax effects from accumulated other comprehensive loss toaccumulated deficit.

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Segment Information - Narrative (Details)	3 Months Ended
	Jul. 31, 2021 segment
Segment Reporting [Abstract]
Number of segments	6

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Segment Information - Segment Operating Results from Continuing Operations (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jul. 31, 2021	Jul. 31, 2020	Jul. 31, 2021	Jul. 31, 2020
Segment Reporting Information [Line Items]
Net revenue	$ 6,897	$ 6,816	$ 20,430	$ 19,774
Segment earnings (loss) from operations	282	12	782	(474)
Intersegment net revenue and other
Segment Reporting Information [Line Items]
Net revenue	(167)	(190)	(348)	(433)
Operating Segment
Segment Reporting Information [Line Items]
Net revenue	7,064	7,006	20,778	20,207
Segment earnings (loss) from operations	757	604	2,317	1,831
Compute
Segment Reporting Information [Line Items]
Net revenue	3,033	3,265	8,889	8,796
Compute | Intersegment net revenue and other
Segment Reporting Information [Line Items]
Net revenue	(71)	(144)	(177)	(298)
Compute | Operating Segment
Segment Reporting Information [Line Items]
Net revenue	3,104	3,409	9,066	9,094
Segment earnings (loss) from operations	347	318	1,024	797
HPC & MCS
Segment Reporting Information [Line Items]
Net revenue	671	650	2,081	2,063
HPC & MCS | Intersegment net revenue and other
Segment Reporting Information [Line Items]
Net revenue	(70)	(17)	(107)	(50)
HPC & MCS | Operating Segment
Segment Reporting Information [Line Items]
Net revenue	741	667	2,188	2,113
Segment earnings (loss) from operations	29	47	91	156
Storage
Segment Reporting Information [Line Items]
Net revenue	1,154	1,109	3,456	3,406
Storage | Intersegment net revenue and other
Segment Reporting Information [Line Items]
Net revenue	(22)	(23)	(50)	(64)
Storage | Operating Segment
Segment Reporting Information [Line Items]
Net revenue	1,176	1,132	3,506	3,470
Segment earnings (loss) from operations	178	170	604	592
Intelligent Edge
Segment Reporting Information [Line Items]
Net revenue	865	682	2,465	2,058
Intelligent Edge | Intersegment net revenue and other
Segment Reporting Information [Line Items]
Net revenue	(2)	(2)	(7)	(11)
Intelligent Edge | Operating Segment
Segment Reporting Information [Line Items]
Net revenue	867	684	2,472	2,069
Segment earnings (loss) from operations	137	71	413	240
Financial Services
Segment Reporting Information [Line Items]
Net revenue	842	807	2,536	2,494
Financial Services | Intersegment net revenue and other
Segment Reporting Information [Line Items]
Net revenue	(2)	(4)	(7)	(9)
Financial Services | Operating Segment
Segment Reporting Information [Line Items]
Net revenue	844	811	2,543	2,503
Segment earnings (loss) from operations	94	66	269	218
Corporate Investments and Other
Segment Reporting Information [Line Items]
Net revenue	332	303	1,003	957
Corporate Investments and Other | Intersegment net revenue and other
Segment Reporting Information [Line Items]
Net revenue	0	0	0	(1)
Corporate Investments and Other | Operating Segment
Segment Reporting Information [Line Items]
Net revenue	332	303	1,003	958
Segment earnings (loss) from operations	$ (28)	$ (68)	$ (84)	$ (172)

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Segment Information - Reconciliation of Segment Operating Results (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jul. 31, 2021	Jul. 31, 2020	Jul. 31, 2021	Jul. 31, 2020
Net revenue:
Net revenue	$ 6,897	$ 6,816	$ 20,430	$ 19,774
(Loss) earnings before taxes:
Total segment earnings from operations	282	12	782	(474)
Amortization of intangible assets	(82)	(95)	(276)	(299)
Transformation costs	(213)	(357)	(733)	(646)
Acquisition, disposition and other related charges	(3)	(15)	(34)	(55)
Interest and other, net	(50)	(71)	(105)	(158)
Tax indemnification and related adjustments	76	(30)	60	(86)
Non-service net periodic benefit credit	19	28	53	101
Earnings from equity interests	79	27	109	50
Earnings (loss) before taxes	406	(34)	899	(567)
Operating Segment
Net revenue:
Net revenue	7,064	7,006	20,778	20,207
(Loss) earnings before taxes:
Total segment earnings from operations	757	604	2,317	1,831
Elimination of intersegment net revenue and other
Net revenue:
Net revenue	(167)	(190)	(348)	(433)
Segment Reconciling Items
(Loss) earnings before taxes:
Unallocated corporate costs and eliminations	(84)	(65)	(186)	(165)
Stock-based compensation expense	(86)	(55)	(294)	(215)
Amortization of initial direct costs	(2)	(3)	(6)	(9)
Amortization of intangible assets	(82)	(95)	(276)	(299)
Transformation costs	(213)	(357)	(733)	(646)
Disaster charges	(5)	(2)	(6)	(24)
Acquisition, disposition and other related charges	(3)	(15)	(34)	(82)
Impairment of goodwill	0	0	0	(865)
Interest and other, net	(50)	(71)	(105)	(158)
Tax indemnification and related adjustments	76	(30)	60	(86)
Non-service net periodic benefit credit	19	28	53	101
Earnings from equity interests	$ 79	$ 27	$ 109	$ 50

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Segment Information - Reconciliation of Segment Assets (Details) - USD ($) $ in Millions	Jul. 31, 2021	Oct. 31, 2020
Segment Reporting Information [Line Items]
Assets	$ 56,437	$ 54,015
Operating Segment | Compute
Segment Reporting Information [Line Items]
Assets	16,339	14,962
Operating Segment | HPC & MCS
Segment Reporting Information [Line Items]
Assets	6,502	6,245
Operating Segment | Storage
Segment Reporting Information [Line Items]
Assets	6,674	6,438
Operating Segment | Intelligent Edge
Segment Reporting Information [Line Items]
Assets	4,473	4,352
Operating Segment | Financial Services
Segment Reporting Information [Line Items]
Assets	14,651	14,765
Operating Segment | Corporate Investments and Other
Segment Reporting Information [Line Items]
Assets	1,244	1,124
Corporate and unallocated assets
Segment Reporting Information [Line Items]
Assets	$ 6,554	$ 6,129

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Segment Information - Revenue by Geographic Region (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jul. 31, 2021	Jul. 31, 2020	Jul. 31, 2021	Jul. 31, 2020
Segment Reporting Information [Line Items]
Total net revenue	$ 6,897	$ 6,816	$ 20,430	$ 19,774
Total Americas
Segment Reporting Information [Line Items]
Total net revenue	2,698	2,757	7,790	7,859
United States
Segment Reporting Information [Line Items]
Total net revenue	2,237	2,362	6,433	6,586
Americas excluding U.S.
Segment Reporting Information [Line Items]
Total net revenue	461	395	1,357	1,273
Europe, Middle East and Africa
Segment Reporting Information [Line Items]
Total net revenue	2,510	2,448	7,684	7,206
Asia Pacific and Japan
Segment Reporting Information [Line Items]
Total net revenue	$ 1,689	$ 1,611	$ 4,956	$ 4,709

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Transformation Programs - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jul. 31, 2021	Jul. 31, 2020	Jul. 31, 2021	Jul. 31, 2020	Oct. 31, 2020
Restructuring Cost and Reserve [Line Items]
Transformation costs	$ 213	$ 357	$ 733	$ 646
Current restructuring liability reported in Accrued restructuring	267		267		$ 366
Transformation Program
Restructuring Cost and Reserve [Line Items]
Current restructuring liability reported in Accrued restructuring	263		263		359
Transformation Program | Other Accrued Liabilities
Restructuring Cost and Reserve [Line Items]
Current restructuring liability reported in Accrued restructuring	29		29		24
Transformation Program | Long-Term Other Liabilities
Restructuring Cost and Reserve [Line Items]
Long-term portion of restructuring reserve, recorded in Other liabilities	183		183		$ 91
HPE Next
Restructuring Cost and Reserve [Line Items]
Transformation costs	67	119	184	408
Cost optimization and prioritization plan
Restructuring Cost and Reserve [Line Items]
Transformation costs	147	$ 238	552	$ 238
Cost optimization and prioritization plan | Transformation Costs
Restructuring Cost and Reserve [Line Items]
Transformation costs	146		549
Cost optimization and prioritization plan | Non-Service Net Periodic Benefit Credit
Restructuring Cost and Reserve [Line Items]
Transformation costs	$ 1		$ 3

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Transformation Programs - Transformation Costs (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jul. 31, 2021	Jul. 31, 2020	Jul. 31, 2021	Jul. 31, 2020
Restructuring Cost and Reserve [Line Items]
Total	$ 213	$ 357	$ 733	$ 646
HPE Next
Restructuring Cost and Reserve [Line Items]
Program management	5	10	10	28
IT costs	54	25	126	71
Restructuring charges	2	84	21	332
Gain on real estate sales	0	(7)	(3)	(44)
Impairment on real estate assets	0	0	4	0
Other	6	7	26	21
Total	67	119	184	408
Cost optimization and prioritization plan
Restructuring Cost and Reserve [Line Items]
Program management	17	14	72	14
IT costs	6	4	9	4
Restructuring charges	124	220	471	220
Total	$ 147	$ 238	$ 552	$ 238

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Transformation Programs - Schedule of Restructuring Activity (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jul. 31, 2021	Jul. 31, 2020	Jul. 31, 2021	Jul. 31, 2020
HPE Next
Restructuring Reserve
Charges	$ 2	$ 84	$ 21	$ 332
HPE Next | Employee Severance
Restructuring Reserve
Balance at the beginning of the period			144
Charges			0
Cash payments			(94)
Non-cash items			3
Balance at the end of the period	53		53
Total costs incurred to date, as of July 31, 2021	1,261		1,261
Total expected costs to be incurred as of July 31, 2021	1,261		1,261
HPE Next | Infrastructure and other
Restructuring Reserve
Balance at the beginning of the period			52
Charges			21
Cash payments			(29)
Non-cash items			(4)
Balance at the end of the period	40		40
Total costs incurred to date, as of July 31, 2021	246		246
Total expected costs to be incurred as of July 31, 2021	248		248
Cost optimization and prioritization plan
Restructuring Reserve
Charges	124	$ 220	471	$ 220
Cost optimization and prioritization plan | Employee Severance
Restructuring Reserve
Balance at the beginning of the period			210
Charges			199
Cash payments			(214)
Non-cash items			1
Balance at the end of the period	196		196
Total costs incurred to date, as of July 31, 2021	429		429
Total expected costs to be incurred as of July 31, 2021	700		700
Cost optimization and prioritization plan | Infrastructure and other
Restructuring Reserve
Balance at the beginning of the period			68
Charges			272
Cash payments			(86)
Non-cash items			(68)
Balance at the end of the period	186		186
Total costs incurred to date, as of July 31, 2021	371		371
Total expected costs to be incurred as of July 31, 2021	$ 610		$ 610

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Retirement Benefit Plans (Details) - Benefit Plans - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jul. 31, 2021	Jul. 31, 2020	Jul. 31, 2021	Jul. 31, 2020
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Service cost	$ 24	$ 23	$ 73	$ 69
Interest cost	30	35	89	106
Expected return on plan assets	(121)	(133)	(360)	(402)
Amortization and deferrals:
Actuarial loss	74	65	223	194
Prior service benefit	(3)	(3)	(10)	(10)
Net periodic benefit (credit) cost	4	(13)	15	(43)
Settlement loss	0	7	1	8
Special termination benefits	1	0	3	1
Total net benefit (credit) cost	$ 5	$ (6)	$ 19	$ (34)

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Taxes on Earnings - Narrative (Details) $ in Millions	3 Months Ended		9 Months Ended
	Jul. 31, 2021 USD ($) socialContributionTax	Jul. 31, 2020 USD ($)	Jul. 31, 2021 USD ($) socialContributionTax	Jul. 31, 2020 USD ($)	Oct. 31, 2020 USD ($)
Income Tax Examination [Line Items]
(Provision) benefit for taxes	$ (14)	$ 43	$ (25)	$ 88
Effective tax rate (as a percent)	3.40%	126.50%	2.80%	15.50%
Net income tax benefits	$ (99)	$ 86	$ (222)	$ 253
Income tax benefit on restructuring charges, separation costs, transformation costs and acquisition and other related charges	31	72	138	120
Tax rate changes	88	$ 30	88	30
Pre-Separation tax matters			30	(56)
Unrecognized tax benefits	2,100		2,100		$ 2,200
Unrecognized tax benefits that would affect effective tax rate if realized	709		709		731
Accrued income tax for interest and penalties	127		$ 127		$ 119
Likelihood of no resolution period			12 months
Reasonably possible reduction in existing unrecognized tax benefits within the next 12 months	$ 75		$ 75
Foreign Tax Authority | India
Income Tax Examination [Line Items]
Tax rate changes				$ 57
Foreign Tax Authority | Brazil
Income Tax Examination [Line Items]
Number of social contribution taxes | socialContributionTax	2		2
PIS contribution tax amount	$ 5		$ 5
COFINS contribution tax amount	$ 23		$ 23

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Taxes on Earnings - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions	Jul. 31, 2021	Oct. 31, 2020
Income Tax Disclosure [Abstract]
Deferred tax assets	$ 2,025	$ 1,778
Deferred tax liabilities	(384)	(290)
Deferred tax assets net of deferred tax liabilities	$ 1,641	$ 1,488

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Balance Sheet Details - Schedule of Cash and Cash Equivalents (Details) - USD ($) $ in Millions	Jul. 31, 2021	Oct. 31, 2020	Jul. 31, 2020	Oct. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Cash and cash equivalents	$ 5,293	$ 4,233
Restricted cash	359	388
Total	$ 5,652	$ 4,621	$ 8,937	$ 4,076

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Balance Sheet Details - Schedule of Inventory (Details) - USD ($) $ in Millions	Jul. 31, 2021	Oct. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Finished goods	$ 1,373	$ 1,197
Purchased parts and fabricated assemblies	2,569	1,477
Total	$ 3,942	$ 2,674

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Balance Sheet Details - Schedule of Property, Plant and Equipment and Narrative (Details) - USD ($) $ in Millions	Jul. 31, 2021	Oct. 31, 2020
Property, Plant and Equipment, Net
Machinery and equipment, including equipment held for lease	$ 9,855	$ 9,624
Property, plant and equipment before accumulated depreciation	11,627	11,599
Accumulated depreciation	(6,117)	(5,974)
Total	5,510	5,625
Land
Property, Plant and Equipment, Net
Equipment leased to customers	75	89
Buildings and leasehold improvements
Property, Plant and Equipment, Net
Equipment leased to customers	$ 1,697	$ 1,886

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Balance Sheet Details - Changes in Aggregate Product Warranty Liabilities (Details) $ in Millions	9 Months Ended
	Jul. 31, 2021 USD ($)
Changes in aggregated product warranty liabilities
Balance at beginning of period	$ 385
Charges	159
Adjustments related to pre-existing warranties	(27)
Settlements made	(180)
Balance at end of period	$ 337

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Balance Sheet Details - Summary of Accounts Receivable, Net (Details) - USD ($) $ in Millions	Jul. 31, 2021	Oct. 31, 2020	Oct. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accounts receivable	$ 3,125	$ 3,227
Unbilled receivables	214	205
Allowances	(42)	(46)	$ (31)
Total	$ 3,297	$ 3,386

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Balance Sheet Details - Allowance for Doubtful Accounts (Details) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Jul. 31, 2021	Oct. 31, 2020
Accounts Receivable, Allowance for Credit Loss
Balance at beginning of year	$ 46	$ 31
Provision for credit losses	8	29
Write off's, net of recoveries	(12)	(14)
Balance at end of year	$ 42	$ 46

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Balance Sheet Details - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended		12 Months Ended
	Jul. 31, 2021	Jul. 31, 2020	Jul. 31, 2021	Jul. 31, 2020	Oct. 31, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]
Trade receivables sold	$ 1,000		$ 3,100		$ 3,900
Deferred revenue	3,434		3,434		3,430
Contract liabilities	6,400		6,400		6,200
Unearned revenue recognized			2,700
Unsatisfied performance obligations	6,400		6,400
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Current portion of capitalized costs	60		60		54
Non-current portion of capitalized costs	86		86		76
Amortization of capitalized costs to obtain a contract	$ 16	$ 15	$ 48	$ 43
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-08-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Unsatisfied performance obligation expected to be recognized over the remainder of the year	21.00%		21.00%
Expected timing of satisfaction	3 months		3 months
Notes payable and short-term borrowings
Accounts, Notes, Loans and Financing Receivable [Line Items]
Deferred revenue	$ 66		$ 66		$ 75

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Accounting for Leases as a Lessor - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jul. 31, 2021	Jan. 31, 2021	Jul. 31, 2021
Leases [Abstract]
Financing receivable term, low end of range			2 years
Financing receivable term, high end of range			5 years
Financing receivable sold	$ 30	$ 103	$ 110

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Accounting for Leases as a Lessor - Components of Financing Receivables (Details) - USD ($) $ in Millions	Jul. 31, 2021	Oct. 31, 2020	Oct. 31, 2019
Leases [Abstract]
Minimum lease payments receivable	$ 9,346	$ 9,448
Unguaranteed residual value	386	364
Unearned income	(725)	(754)
Total	9,007	9,058
Allowance for credit losses	(234)	(154)	$ (131)
Financing receivables, net	8,773	8,904
Less: current portion	(3,814)	(3,794)
Amounts due after one year, net	$ 4,959	$ 5,110

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Accounting for Leases as a Lessor - Finance Lease Receivable Maturity (Details) - USD ($) $ in Millions	Jul. 31, 2021	Oct. 31, 2020
Leases [Abstract]
Remainder of fiscal 2021	$ 1,496
2022	3,389	$ 4,182
2023	2,306	2,662
2024	1,326	1,572
2025	609	720
2025		252
Thereafter	220
Thereafter		60
Total undiscounted cash flows	9,346	9,448
Present value of lease payments (recognized as finance receivables)	8,621	8,694
Unearned income	$ 725	$ 754

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Accounting for Leases as a Lessor - Credit Risk Profile of Financing Receivables (Details) - USD ($) $ in Millions	Jul. 31, 2021	Oct. 31, 2020
Financing Receivable, Allowance for Credit Loss [Line Items]
Total	$ 9,007	$ 9,058
Low
Financing Receivable, Allowance for Credit Loss [Line Items]
2021	1,341
2020	1,607
2019	965
2018	469
2017 and prior	198
Total	4,580	4,590
Moderate
Financing Receivable, Allowance for Credit Loss [Line Items]
2021	1,156
2020	1,203
2019	880
2018	491
2017 and prior	271
Total	4,001	4,091
High
Financing Receivable, Allowance for Credit Loss [Line Items]
2021	40
2020	94
2019	95
2018	88
2017 and prior	109
Total	$ 426	$ 377

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Accounting for Leases as a Lessor - Credit Risk Profile of Gross Financing Receivables (Details) - USD ($) $ in Millions	Jul. 31, 2021	Oct. 31, 2020
Gross financing receivables
Financing receivables, net	$ 9,007	$ 9,058
Low
Gross financing receivables
Financing receivables, net	4,580	4,590
Moderate
Gross financing receivables
Financing receivables, net	4,001	4,091
High
Gross financing receivables
Financing receivables, net	$ 426	$ 377

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Accounting for Leases as a Lessor - Allowance for Doubtful Accounts for Financing Receivables (Details) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Jul. 31, 2021	Oct. 31, 2020
Allowance for doubtful accounts
Balance at beginning of period	$ 154	$ 131
Provision for credit losses	59	43
Adjustment to the existing allowance	19	0
Write-offs	(26)	(20)
Balance at end of period	234	154
Cumulative Effect, Period of Adoption, Adjustment
Allowance for doubtful accounts
Balance at beginning of period	$ 28	0
Balance at end of period		$ 28

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Accounting for Leases as a Lessor - Summary of the Aging and Non-accrual Status of Gross Financing Receivables (Details) - USD ($) $ in Millions	Jul. 31, 2021	Oct. 31, 2020
Financing Receivable, Past Due [Line Items]
Financing receivables, net	$ 9,007	$ 9,058
Gross financing receivables on non-accrual status	285	364
Gross financing receivables 90 days past due and still accruing interest	92	74
Unbilled
Financing Receivable, Past Due [Line Items]
Financing receivables, net	8,484	8,513
Current 1-30 days | Billed
Financing Receivable, Past Due [Line Items]
Financing receivables, net	347	340
Past due 31-60 days | Billed
Financing Receivable, Past Due [Line Items]
Financing receivables, net	38	43
Past due 61-90 days | Billed
Financing Receivable, Past Due [Line Items]
Financing receivables, net	17	22
Past due > 90 days | Billed
Financing Receivable, Past Due [Line Items]
Financing receivables, net	$ 121	$ 140

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Accounting for Leases as a Lessor - Operating Lease Assets Included in Machinery and Equipment (Details) - USD ($) $ in Millions	Jul. 31, 2021	Oct. 31, 2020
Leases [Abstract]
Equipment leased to customers	$ 7,166	$ 7,184
Accumulated depreciation	(3,223)	(3,157)
Total	$ 3,943	$ 4,027

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Accounting for Leases as a Lessor - Operating Lease Payments Maturity (Details) $ in Millions	Jul. 31, 2021 USD ($)
Leases [Abstract]
Remainder of fiscal 2021	$ 510
2022	1,524
2023	873
2024	300
2025	44
Thereafter	11
Total	$ 3,262

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Accounting for Leases as a Lessor - Lessor Activity Included in Income Statement (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jul. 31, 2021	Jul. 31, 2020	Jul. 31, 2021	Jul. 31, 2020
Leases [Abstract]
Interest income	$ 125	$ 115	$ 371	$ 343
Lease income - operating leases	598	588	1,797	1,821
Total lease income	$ 723	$ 703	$ 2,168	$ 2,164

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Accounting for Leases as a Lessor - Assets and Liabilities of VIE (Details) - VIE Primary Beneficiary - USD ($) $ in Millions	Jul. 31, 2021	Oct. 31, 2020
Variable Interest Entity [Line Items]
Other current assets	$ 179	$ 120
Short-term	805	531
Long-term	882	584
Property, plant and equipment	1,010	665
Notes payable and short-term borrowings, net of unamortized debt issuance costs	1,389	886
Long-term debt, net of unamortized debt issuance costs	$ 1,198	$ 834

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Goodwill (Details) $ in Millions	3 Months Ended					9 Months Ended
	Jul. 31, 2021 USD ($) segment	Jan. 31, 2021 USD ($) reportingUnit	Jul. 31, 2020 USD ($)	Apr. 30, 2020 USD ($)	Oct. 31, 2018 USD ($)	Jul. 31, 2021 USD ($)	Jul. 31, 2020 USD ($)	Nov. 01, 2020 USD ($)
Goodwill [Roll Forward]
Goodwill beginning balance		$ 18,017				$ 18,017
Goodwill from current period acquisitions						86
Goodwill adjustments						(11)
Goodwill ending balance	$ 18,092					18,092
Goodwill impairment	953					953
Impairment of goodwill	$ 0		$ 0			0	$ 865
Number of segments | segment	6
Number of Reporting Units | reportingUnit		3
Minimum
Goodwill [Roll Forward]
Percentage of fair value in excess of carrying amount								8.00%
Maximum
Goodwill [Roll Forward]
Percentage of fair value in excess of carrying amount								37.00%
Compute
Goodwill [Roll Forward]
Goodwill beginning balance		$ 7,532				7,532
Goodwill from current period acquisitions						0
Goodwill adjustments						0
Goodwill ending balance	$ 7,532					7,532
HPC & MCS
Goodwill [Roll Forward]
Goodwill beginning balance		3,616				3,616
Goodwill from current period acquisitions						86
Goodwill adjustments						0
Goodwill ending balance	3,702					3,702
Impairment of goodwill				$ 865
Percentage of fair value in excess of carrying amount								8.00%
Storage
Goodwill [Roll Forward]
Goodwill beginning balance		3,946				3,946
Goodwill from current period acquisitions						0
Goodwill adjustments						0
Goodwill ending balance	3,946					3,946
Intelligent Edge
Goodwill [Roll Forward]
Goodwill beginning balance		2,566				2,566
Goodwill from current period acquisitions						0
Goodwill adjustments						(11)
Goodwill ending balance	2,555					2,555
Financial Services
Goodwill [Roll Forward]
Goodwill beginning balance		144				144
Goodwill from current period acquisitions						0
Goodwill adjustments						0
Goodwill ending balance	144					144
Corporate Investments and Other
Goodwill [Roll Forward]
Goodwill beginning balance		$ 213				213
Goodwill from current period acquisitions						0
Goodwill adjustments						0
Goodwill ending balance	$ 213					$ 213
Amount of transfer in goodwill								$ 213
CMS Reporting Unit
Goodwill [Roll Forward]
Goodwill ending balance					$ 0
Impairment of goodwill					$ 88

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Fair Value - Schedule of Assets and Liabilities on a Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions	Jul. 31, 2021	Oct. 31, 2020
Assets
Total assets	$ 4,029	$ 2,762
Liabilities
Total liabilities	190	194
Time deposits
Assets
Total assets	1,398	939
Money market funds
Assets
Total assets	2,003	1,167
Foreign bonds
Assets
Total assets	126	125
Other debt securities
Assets
Total assets	43	21
Interest rate contracts
Assets
Total assets	153	220
Liabilities
Total liabilities	0	2
Foreign exchange contracts
Assets
Total assets	211	290
Liabilities
Total liabilities	190	189
Other derivatives
Assets
Total assets	1	0
Liabilities
Total liabilities	0	3
Equity Securities
Assets
Total assets	94	0
Quoted Prices in Active Markets for Identical Assets (Level 1)
Assets
Total assets	2,006	1,167
Liabilities
Total liabilities	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Time deposits
Assets
Total assets	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Money market funds
Assets
Total assets	2,003	1,167
Quoted Prices in Active Markets for Identical Assets (Level 1) | Foreign bonds
Assets
Total assets	1	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Other debt securities
Assets
Total assets	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Interest rate contracts
Assets
Total assets	0	0
Liabilities
Total liabilities	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Foreign exchange contracts
Assets
Total assets	0	0
Liabilities
Total liabilities	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Other derivatives
Assets
Total assets	0	0
Liabilities
Total liabilities	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Equity Securities
Assets
Total assets	2	0
Significant Other Observable Remaining Inputs (Level 2)
Assets
Total assets	1,888	1,574
Liabilities
Total liabilities	190	194
Significant Other Observable Remaining Inputs (Level 2) | Time deposits
Assets
Total assets	1,398	939
Significant Other Observable Remaining Inputs (Level 2) | Money market funds
Assets
Total assets	0	0
Significant Other Observable Remaining Inputs (Level 2) | Foreign bonds
Assets
Total assets	125	125
Significant Other Observable Remaining Inputs (Level 2) | Other debt securities
Assets
Total assets	0	0
Significant Other Observable Remaining Inputs (Level 2) | Interest rate contracts
Assets
Total assets	153	220
Liabilities
Total liabilities	0	2
Significant Other Observable Remaining Inputs (Level 2) | Foreign exchange contracts
Assets
Total assets	211	290
Liabilities
Total liabilities	190	189
Significant Other Observable Remaining Inputs (Level 2) | Other derivatives
Assets
Total assets	1	0
Liabilities
Total liabilities	0	3
Significant Other Observable Remaining Inputs (Level 2) | Equity Securities
Assets
Total assets	0	0
Significant Other Unobservable Remaining Inputs (Level 3)
Assets
Total assets	135	21
Liabilities
Total liabilities	0	0
Significant Other Unobservable Remaining Inputs (Level 3) | Time deposits
Assets
Total assets	0	0
Significant Other Unobservable Remaining Inputs (Level 3) | Money market funds
Assets
Total assets	0	0
Significant Other Unobservable Remaining Inputs (Level 3) | Foreign bonds
Assets
Total assets	0	0
Significant Other Unobservable Remaining Inputs (Level 3) | Other debt securities
Assets
Total assets	43	21
Significant Other Unobservable Remaining Inputs (Level 3) | Interest rate contracts
Assets
Total assets	0	0
Liabilities
Total liabilities	0	0
Significant Other Unobservable Remaining Inputs (Level 3) | Foreign exchange contracts
Assets
Total assets	0	0
Liabilities
Total liabilities	0	0
Significant Other Unobservable Remaining Inputs (Level 3) | Other derivatives
Assets
Total assets	0	0
Liabilities
Total liabilities	0	0
Significant Other Unobservable Remaining Inputs (Level 3) | Equity Securities
Assets
Total assets	$ 92	$ 0

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Fair Value - Narrative (Details) - USD ($) $ in Millions	3 Months Ended			9 Months Ended
	Jul. 31, 2021	Jul. 31, 2020	Apr. 30, 2020	Jul. 31, 2021	Jul. 31, 2020	Oct. 31, 2020
Financial assets and liabilities measured at fair value on a recurring basis
Impairment of goodwill	$ 0	$ 0		$ 0	$ 865
Interest and Other, Net
Financial assets and liabilities measured at fair value on a recurring basis
Recognized gain from equity investments without readily determinable fair value				25
Significant Other Unobservable Remaining Inputs (Level 3)
Financial assets and liabilities measured at fair value on a recurring basis
Right-of-use asset impairment charges	4			72
HPC & MCS
Financial assets and liabilities measured at fair value on a recurring basis
Impairment of goodwill			$ 865
HPC & MCS | Significant Other Unobservable Remaining Inputs (Level 3)
Financial assets and liabilities measured at fair value on a recurring basis
Impairment of goodwill			$ 865
Fair Value
Financial assets and liabilities measured at fair value on a recurring basis
Fair value, short-term and long-term debt	17,600			17,600		$ 17,100
Carrying Value
Financial assets and liabilities measured at fair value on a recurring basis
Fair value, short-term and long-term debt	$ 16,200			$ 16,200		$ 15,900

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Financial Instruments - Cash Equivalents and Available-for-Sale Investments (Details) - USD ($) $ in Millions	Jul. 31, 2021	Oct. 31, 2020
Cash and Cash Equivalents [Line Items]
Debt securities, Amortized Cost	$ 152
Debt securities, Gross Unrealized Gain	17	$ 18
Debt securities, Fair Value	169
Total cash and equivalents and available-for-sale investments, Cost basis	3,553	2,234
Total cash equivalents and available-for-sale debt investments	3,570	2,252
Cost
Cash and Cash Equivalents [Line Items]
Total cash equivalents	3,401	2,106
Cost | Time deposits
Cash and Cash Equivalents [Line Items]
Total cash equivalents	1,398	939
Cost | Money market funds
Cash and Cash Equivalents [Line Items]
Total cash equivalents	2,003	1,167
Fair Value
Cash and Cash Equivalents [Line Items]
Total cash equivalents	3,401	2,106
Fair Value | Time deposits
Cash and Cash Equivalents [Line Items]
Total cash equivalents	1,398	939
Fair Value | Money market funds
Cash and Cash Equivalents [Line Items]
Total cash equivalents	2,003	1,167
Debt securities
Cash and Cash Equivalents [Line Items]
Debt securities, Amortized Cost	152	128
Debt securities, Gross Unrealized Gain	17	18
Debt securities, Fair Value	169	146
Foreign bonds
Cash and Cash Equivalents [Line Items]
Debt securities, Amortized Cost	110	108
Debt securities, Gross Unrealized Gain	16	17
Debt securities, Fair Value	126	125
Other debt securities
Cash and Cash Equivalents [Line Items]
Debt securities, Amortized Cost	42	20
Debt securities, Gross Unrealized Gain	1	1
Debt securities, Fair Value	$ 43	$ 21

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Financial Instruments - Contractual Maturities of Investments in Available-for-Sale Debt Securities (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jul. 31, 2021	Jul. 31, 2020	Jul. 31, 2021	Jul. 31, 2020	Oct. 31, 2020
Amortized Cost
Due in one to five years	$ 25		$ 25
Due in more than five years	127		127
Debt securities, Amortized Cost	152		152
Fair Value
Due in one to five years	25		25
Due in more than five years	144		144
Debt securities, Fair Value	169		169
Summary of Investment Holdings [Line Items]
Investments in equity interests	2,286		2,286		$ 2,170
Earnings from equity interests	79	$ 27	109	$ 50
Fair Value
Summary of Investment Holdings [Line Items]
Investments in equity interests	2,300		2,300		2,200
Equity Securities in Privately Held Companies | Measurement Alternative
Summary of Investment Holdings [Line Items]
Equity securities without readily determinable fair value	252		252		$ 295
Unrealized gain on equity securities			25
Equity Securities in Privately Held Companies | Fair Value
Summary of Investment Holdings [Line Items]
Equity securities without readily determinable fair value	$ 92		92
Unrealized gain on equity securities			$ 34

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Financial Instruments - Gross Notional and Fair Value of Instruments in the Balance Sheets (Details) - USD ($) $ in Millions	Jul. 31, 2021	Oct. 31, 2020
Derivatives, Fair Value
Outstanding Gross Notional	$ 19,579	$ 20,068
Other Current Assets
Derivatives, Fair Value
Derivative asset, fair value	135	152
Long-Term Financing Receivables and Other Assets
Derivatives, Fair Value
Derivative asset, fair value	230	358
Other Accrued Liabilities
Derivatives, Fair Value
Derivative liability, fair value	106	146
Long-Term Other Liabilities
Derivatives, Fair Value
Derivative liability, fair value	84	48
Derivatives designated as hedging instruments
Derivatives, Fair Value
Outstanding Gross Notional	13,543	13,806
Derivatives designated as hedging instruments | Other Current Assets
Derivatives, Fair Value
Derivative asset, fair value	114	109
Derivatives designated as hedging instruments | Long-Term Financing Receivables and Other Assets
Derivatives, Fair Value
Derivative asset, fair value	223	349
Derivatives designated as hedging instruments | Other Accrued Liabilities
Derivatives, Fair Value
Derivative liability, fair value	83	108
Derivatives designated as hedging instruments | Long-Term Other Liabilities
Derivatives, Fair Value
Derivative liability, fair value	82	47
Derivatives designated as hedging instruments | Fair value hedges | Interest rate contracts
Derivatives, Fair Value
Outstanding Gross Notional	3,850	3,850
Derivatives designated as hedging instruments | Fair value hedges | Interest rate contracts | Other Current Assets
Derivatives, Fair Value
Derivative asset, fair value	0	0
Derivatives designated as hedging instruments | Fair value hedges | Interest rate contracts | Long-Term Financing Receivables and Other Assets
Derivatives, Fair Value
Derivative asset, fair value	153	220
Derivatives designated as hedging instruments | Fair value hedges | Interest rate contracts | Other Accrued Liabilities
Derivatives, Fair Value
Derivative liability, fair value	0	0
Derivatives designated as hedging instruments | Fair value hedges | Interest rate contracts | Long-Term Other Liabilities
Derivatives, Fair Value
Derivative liability, fair value	0	0
Derivatives designated as hedging instruments | Cash flow hedges | Interest rate contracts
Derivatives, Fair Value
Outstanding Gross Notional	0	500
Derivatives designated as hedging instruments | Cash flow hedges | Interest rate contracts | Other Current Assets
Derivatives, Fair Value
Derivative asset, fair value	0	0
Derivatives designated as hedging instruments | Cash flow hedges | Interest rate contracts | Long-Term Financing Receivables and Other Assets
Derivatives, Fair Value
Derivative asset, fair value	0	0
Derivatives designated as hedging instruments | Cash flow hedges | Interest rate contracts | Other Accrued Liabilities
Derivatives, Fair Value
Derivative liability, fair value	0	2
Derivatives designated as hedging instruments | Cash flow hedges | Interest rate contracts | Long-Term Other Liabilities
Derivatives, Fair Value
Derivative liability, fair value	0	0
Derivatives designated as hedging instruments | Cash flow hedges | Foreign exchange contracts
Derivatives, Fair Value
Outstanding Gross Notional	7,872	7,652
Derivatives designated as hedging instruments | Cash flow hedges | Foreign exchange contracts | Other Current Assets
Derivatives, Fair Value
Derivative asset, fair value	89	75
Derivatives designated as hedging instruments | Cash flow hedges | Foreign exchange contracts | Long-Term Financing Receivables and Other Assets
Derivatives, Fair Value
Derivative asset, fair value	46	85
Derivatives designated as hedging instruments | Cash flow hedges | Foreign exchange contracts | Other Accrued Liabilities
Derivatives, Fair Value
Derivative liability, fair value	65	95
Derivatives designated as hedging instruments | Cash flow hedges | Foreign exchange contracts | Long-Term Other Liabilities
Derivatives, Fair Value
Derivative liability, fair value	62	38
Derivatives designated as hedging instruments | Net investment hedges | Foreign exchange contracts
Derivatives, Fair Value
Outstanding Gross Notional	1,821	1,804
Derivatives designated as hedging instruments | Net investment hedges | Foreign exchange contracts | Other Current Assets
Derivatives, Fair Value
Derivative asset, fair value	25	34
Derivatives designated as hedging instruments | Net investment hedges | Foreign exchange contracts | Long-Term Financing Receivables and Other Assets
Derivatives, Fair Value
Derivative asset, fair value	24	44
Derivatives designated as hedging instruments | Net investment hedges | Foreign exchange contracts | Other Accrued Liabilities
Derivatives, Fair Value
Derivative liability, fair value	18	11
Derivatives designated as hedging instruments | Net investment hedges | Foreign exchange contracts | Long-Term Other Liabilities
Derivatives, Fair Value
Derivative liability, fair value	20	9
Derivatives not designated as hedging instruments
Derivatives, Fair Value
Outstanding Gross Notional	6,036	6,262
Derivatives not designated as hedging instruments | Other Current Assets
Derivatives, Fair Value
Derivative asset, fair value	21	43
Derivatives not designated as hedging instruments | Long-Term Financing Receivables and Other Assets
Derivatives, Fair Value
Derivative asset, fair value	7	9
Derivatives not designated as hedging instruments | Other Accrued Liabilities
Derivatives, Fair Value
Derivative liability, fair value	23	38
Derivatives not designated as hedging instruments | Long-Term Other Liabilities
Derivatives, Fair Value
Derivative liability, fair value	2	1
Derivatives not designated as hedging instruments | Foreign exchange contracts
Derivatives, Fair Value
Outstanding Gross Notional	5,923	6,157
Derivatives not designated as hedging instruments | Foreign exchange contracts | Other Current Assets
Derivatives, Fair Value
Derivative asset, fair value	20	43
Derivatives not designated as hedging instruments | Foreign exchange contracts | Long-Term Financing Receivables and Other Assets
Derivatives, Fair Value
Derivative asset, fair value	7	9
Derivatives not designated as hedging instruments | Foreign exchange contracts | Other Accrued Liabilities
Derivatives, Fair Value
Derivative liability, fair value	23	35
Derivatives not designated as hedging instruments | Foreign exchange contracts | Long-Term Other Liabilities
Derivatives, Fair Value
Derivative liability, fair value	2	1
Derivatives not designated as hedging instruments | Other derivatives
Derivatives, Fair Value
Outstanding Gross Notional	113	105
Derivatives not designated as hedging instruments | Other derivatives | Other Current Assets
Derivatives, Fair Value
Derivative asset, fair value	1	0
Derivatives not designated as hedging instruments | Other derivatives | Long-Term Financing Receivables and Other Assets
Derivatives, Fair Value
Derivative asset, fair value	0	0
Derivatives not designated as hedging instruments | Other derivatives | Other Accrued Liabilities
Derivatives, Fair Value
Derivative liability, fair value	0	3
Derivatives not designated as hedging instruments | Other derivatives | Long-Term Other Liabilities
Derivatives, Fair Value
Derivative liability, fair value	$ 0	$ 0

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Financial Instruments - Offsetting Assets and Liabilities (Details) $ in Millions	Jul. 31, 2021 USD ($) business_day	Oct. 31, 2020 USD ($) business_day
Derivative assets
Gross Amount Recognized	$ 365	$ 510
Gross Amount Offset	0	0
Net Amount Presented	365	510
Gross Amounts Not Offset
Derivatives	154	137
Financial Collateral	203	321
Net Amount	8	52
Derivative liabilities
Gross Amount Recognized	190	194
Gross Amount Offset	0	0
Net Amount Presented	190	194
Gross Amounts Not Offset
Derivatives	154	137
Financial Collateral	30	55
Net Amount	$ 6	$ 2
Business days prior to respective reporting date | business_day	2	2
Cash collateral	$ 5
Counterparty collateral	$ 25	$ 55

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Financial Instruments - Amounts Recorded in the Balance Sheet (Details) - Long-term debt - USD ($) $ in Millions	Jul. 31, 2021	Oct. 31, 2020
Derivatives, Fair Value
Carrying amount of the hedged assets/ (liabilities)	$ (3,994)	$ (4,059)
Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged (liabilities)	$ (153)	$ (220)

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Financial Instruments - Pre-tax Effect of Derivative Instruments in Hedging Relationships on OCI (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jul. 31, 2021	Jul. 31, 2020	Jul. 31, 2021	Jul. 31, 2020
Derivative Instruments, Gain (Loss) [Line Items]
Gains (Losses) Recognized in OCI on Derivatives in Cash Flow Hedging Relationship	$ 101	$ (456)	$ (183)	$ (85)
Total	117	(539)	(244)	(35)
Expected amount of AOCI expected to be reclassified in the next 12 months	42		42
Foreign currency contracts
Derivative Instruments, Gain (Loss) [Line Items]
Gains (Losses) Recognized in OCI on Derivatives in Cash Flow Hedging Relationship	101	(456)	(183)	(79)
Gains (Losses) Recognized in OCI on Derivatives in Net Investment Hedging Relationship	16	(83)	(61)	50
Interest rate contracts
Derivative Instruments, Gain (Loss) [Line Items]
Gains (Losses) Recognized in OCI on Derivatives in Cash Flow Hedging Relationship	$ 0		$ 0	$ (6)

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Financial Instruments - Pre-tax Effect of Derivative Instruments on Statement of Earnings (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jul. 31, 2021	Jul. 31, 2020	Jul. 31, 2021	Jul. 31, 2020
Derivative Instruments, Gain (Loss) [Line Items]
Net revenue	$ 6,897	$ 6,816	$ 20,430	$ 19,774
Interest and other, net	(50)	(71)	(105)	(158)
Net revenue
Derivative Instruments, Gain (Loss) [Line Items]
Total gains (losses)	(14)	23	(113)	97
Interest and other, net
Derivative Instruments, Gain (Loss) [Line Items]
Total gains (losses)	16	(263)	(207)	(4)
Interest rate contracts | Net revenue
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) on derivatives in fair value hedging relationships	0	0	0	0
Amount of gains (losses) reclassified from accumulated other comprehensive income into income	0	0	0	0
Interest rate contracts | Interest and other, net
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) on derivatives in fair value hedging relationships	(3)	(13)	67	(198)
Amount of gains (losses) reclassified from accumulated other comprehensive income into income	0	(1)	(2)	(1)
Foreign currency contracts | Net revenue
Derivative Instruments, Gain (Loss) [Line Items]
Amount of gains (losses) reclassified from accumulated other comprehensive income into income	(14)	23	(113)	97
Gains (losses) on derivatives not designated as hedging instruments	0	0	0	0
Foreign currency contracts | Interest and other, net
Derivative Instruments, Gain (Loss) [Line Items]
Amount of gains (losses) reclassified from accumulated other comprehensive income into income	50	(264)	(147)	(55)
Gains (losses) on derivatives not designated as hedging instruments	(33)	8	(61)	53
Other derivatives | Net revenue
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) on derivatives not designated as hedging instruments	0	0	0	0
Other derivatives | Interest and other, net
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) on derivatives not designated as hedging instruments	(1)	(6)	3	(1)
Derivatives designated as hedging instruments | Interest rate contracts | Net revenue
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) on derivatives in fair value hedging relationships	0	0	0	0
Derivatives designated as hedging instruments | Interest rate contracts | Interest and other, net
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) on derivatives in fair value hedging relationships	$ 3	$ 13	$ (67)	$ 198

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Borrowings - Notes Payable and Short-Term Borrowings (Details) - USD ($) $ in Millions	Jul. 31, 2021	Oct. 31, 2020
Debt Disclosure [Abstract]
Current portion of long-term debt	$ 2,741	$ 2,768
FS commercial paper	694	677
Notes payable to banks, lines of credit and other	301	310
Notes payable and short-term borrowings	3,736	3,755
Long-term debt	12,489	12,186
Total Debt	$ 16,225	$ 15,941

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Borrowings - Narrative (Details) $ in Millions	1 Months Ended
	Jun. 30, 2021 USD ($) tranche	Mar. 31, 2021 USD ($) tranche	Jul. 31, 2021 USD ($) program	Oct. 31, 2020 USD ($)	Mar. 31, 2020 USD ($)
Asset-backed Debt Securities
Line of Credit Facility [Line Items]
Amount issued	$ 753	$ 1,000
Number of tranches | tranche	6	6
Discount rate at issuance	99.99%	99.99%
Weighted-average interest rate	0.58%	0.49%
Senior Notes
Line of Credit Facility [Line Items]
Repayments of senior debt		$ 500
Senior Notes | London Interbank Offered Rate (LIBOR)
Line of Credit Facility [Line Items]
Basis spread on variable rate		0.68%
Commercial Paper
Line of Credit Facility [Line Items]
Number of commercial paper programs | program			2
Maximum borrowing capacity under commercial paper program					$ 4,750
Amount outstanding			$ 0	$ 0
Commercial Paper | Euro Commercial Paper Program
Line of Credit Facility [Line Items]
Maximum borrowing capacity under commercial paper program			3,000
Commercial Paper | Euro Commercial Paper Certificate of Deposit Programme
Line of Credit Facility [Line Items]
Maximum borrowing capacity under commercial paper program			1,000
Commercial Paper | Hewlett Packard Enterprise | Euro Commercial Paper Certificate of Deposit Programme
Line of Credit Facility [Line Items]
Amount outstanding			$ 694	$ 677

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Stockholders' Equity - Components of AOCI (Details) - USD ($) $ in Millions		9 Months Ended
		Jul. 31, 2021	Jul. 31, 2020
Components of accumulated other comprehensive loss, net of taxes
Balance at beginning of period		$ 16,096
Balance at end of period		17,073
Net unrealized gains (losses) on available-for-sale securities
Components of accumulated other comprehensive loss, net of taxes
Balance at beginning of period		18	$ 23
Other comprehensive income (loss) before reclassifications		(1)	0
Reclassifications of (gains) losses into earnings		0	(8)
Tax (provision) benefit		0	0
Balance at end of period		17	15
Net unrealized gains (losses) on cash flow hedges
Components of accumulated other comprehensive loss, net of taxes
Balance at beginning of period		(7)	53
Other comprehensive income (loss) before reclassifications		(183)	(85)
Reclassifications of (gains) losses into earnings		262	(41)
Tax (provision) benefit		(14)	20
Balance at end of period		58	(63)
Net unrealized gains (losses) on cash flow hedges | Cumulative Effect, Period of Adoption, Adjustment
Components of accumulated other comprehensive loss, net of taxes
Balance at beginning of period			(10)
Unrealized components of defined benefit plans
Components of accumulated other comprehensive loss, net of taxes
Balance at beginning of period		(3,473)	(3,366)
Other comprehensive income (loss) before reclassifications		29	(10)
Reclassifications of (gains) losses into earnings		214	191
Tax (provision) benefit		(15)	(11)
Balance at end of period		(3,245)	(3,196)
Cumulative translation adjustment
Components of accumulated other comprehensive loss, net of taxes
Balance at beginning of period		(477)	(437)
Other comprehensive income (loss) before reclassifications		20	(46)
Reclassifications of (gains) losses into earnings		0	0
Tax (provision) benefit		(4)	4
Balance at end of period		(461)	(512)
Cumulative translation adjustment | Cumulative Effect, Period of Adoption, Adjustment
Components of accumulated other comprehensive loss, net of taxes
Balance at beginning of period			(33)
Accumulated other comprehensive loss
Components of accumulated other comprehensive loss, net of taxes
Balance at beginning of period		(3,939)	(3,727)
Other comprehensive income (loss) before reclassifications		(135)	(141)
Reclassifications of (gains) losses into earnings		476	142
Tax (provision) benefit		(33)	13
Balance at end of period		$ (3,631)	(3,756)
Accumulated other comprehensive loss | Cumulative Effect, Period of Adoption, Adjustment
Components of accumulated other comprehensive loss, net of taxes
Balance at beginning of period	[1]		$ (43)

[1] Represents the impact of the adoption of an accounting standard update that allows for the reclassification of stranded tax effects from accumulated other comprehensive loss toaccumulated deficit.

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Stockholders' Equity - Narrative (Details) $ in Billions	Jul. 31, 2021 USD ($)
Equity [Abstract]
Remaining authorized repurchase amount	$ 2.1

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Net Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Jul. 31, 2021	Jul. 31, 2020	Jul. 31, 2021	Jul. 31, 2020
Numerator:
Net earnings (loss)	$ 392	$ 9	$ 874	$ (479)
Denominator:
Weighted-average shares used to compute basic net EPS (in shares)	1,314	1,292	1,308	1,294
Dilutive effect of employee stock plans (in shares)	24	8	20	0
Weighted-average shares used to compute diluted net EPS (in shares)	1,338	1,300	1,328	1,294
Net earnings (loss) per share:
Basic (in dollars per share)	$ 0.30	$ 0.01	$ 0.67	$ (0.37)
Diluted (in dollars per share)	$ 0.29	$ 0.01	$ 0.66	$ (0.37)
Anti-dilutive weighted-average stock awards (in shares)	1	21	7	48

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Litigation and Contingencies (Details) $ in Millions										1 Months Ended	9 Months Ended	24 Months Ended
	Sep. 22, 2020 patent	May 16, 2019 USD ($)	Dec. 19, 2016	Jun. 30, 2016 USD ($)	Jan. 24, 2013 USD ($)	Dec. 11, 2012 USD ($)	Apr. 21, 2012 USD ($)	May 10, 2010 USD ($) employee	Apr. 29, 2010 USD ($)	Jul. 31, 2011	Jul. 31, 2021	Oct. 31, 2008 contract	Apr. 20, 2012 USD ($)	Apr. 11, 2012 USD ($)	Jun. 15, 2011 phase
Litigation and Contingencies
Damages sought								$ 370
Q3 Networking Litigation
Litigation and Contingencies
Number of patents allegedly infringed | patent	4
Judicial ruling | Oracle
Litigation and Contingencies
Number of phases | phase															2
Amount awarded				$ 3,000
Judicial ruling | Oracle - past lost profits
Litigation and Contingencies
Amount awarded				1,700
Judicial ruling | Oracle - future lost profits
Litigation and Contingencies
Amount awarded				$ 1,300
Renewed judgement | Oracle
Litigation and Contingencies
Amount awarded		$ 3,800
Daily interest accrual on renewed judgement		$ 1
Minimum | Forsyth, et al. vs HP Inc. and Hewlett Packard Enterprise
Litigation and Contingencies
Age of terminated employees			40 years
India Directorate of Revenue Intelligence Proceedings
Litigation and Contingencies
Number of HP India employees alleging underpaid customs | employee								7
Number of former HP India employees alleging underpaid customs | employee								1
Loss contingency deposit to prevent interruption of business									$ 16
Bangalore Commissioner of Customs
Litigation and Contingencies
Duties and penalties under show cause notices													$ 17	$ 386
Amount deposited under show cause notice prior to order													$ 7	$ 9
Additional amount deposited against products-related show cause notice						$ 10
Additional amount deposited against parts-related show cause notice							$ 3
Additional amount deposited against product order					$ 24
ECT proceedings
Litigation and Contingencies
Number of ECT contracts related to alleged improprieties | contract												3
Bid and contract term										5 years
ECT proceedings | Maximum
Litigation and Contingencies
Length of sanctions											5 years
ECT proceedings | Minimum
Litigation and Contingencies
Length of sanctions											2 years

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Label	Element	Value
High Performance Compute and Mission Critical Systems Segment [Member]
Goodwill	us-gaap_Goodwill	$ 3,600,000,000