Effective at the beginning of the first quarter of fiscal 2017, the Company implemented organizational changes to align its segment financial reporting more closely with its current business structure. These organizational changes resulted in: (i) within the Enterprise Group segment, primarily, the transfer of the big data storage product group previously reported within the Servers business unit to the Storage business unit; the transfer of the Aruba services capabilities previously reported within the Networking business unit to the Technology Services business unit; and (ii) the transfer of the CMS product group previously reported within the former ES segment to the Technology Services business unit within the Enterprise Group segment.
The Company reflected these changes to its segment information retrospectively to the earliest period presented, which resulted in: (i) within the Enterprise Group segment, primarily, the transfer of net revenue from the big data storage product group previously reported within the Servers business unit to the Storage business unit; the transfer of net revenue from the Aruba services capabilities previously reported within the Networking business unit to the Technology Services business unit; and (ii) the transfer of net revenue, related eliminations of intersegment revenues and operating profit from the CMS product group previously reported within the former ES segment to the Technology Services business unit within the Enterprise Group segment.
Effective at the beginning of the second quarter of fiscal 2017 and prior to the completion of the spin-off of the enterprise services business, Everett SpinCo, Inc., and the merger of Everett SpinCo, Inc. with Computer Sciences Corporation, the Company transferred historical net revenue and operating profit from the previously divested MphasiS product group which was reported within the former ES segment to the Corporate Investments segment.
The changes within the Enterprise Group segment had no impact on Hewlett Packard Enterprise’s previously reported Enterprise Group segment net revenue and earnings from operations. The change between former ES segment and the Enterprise Group segment had no impact on Hewlett Packard Enterprise's previously reported consolidated net revenue, earnings from continuing operations, net earnings from continuing operations or net earnings per share from continuing operations.
|
HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES
SEGMENT OPERATING MARGIN SUMMARY DATA (Unaudited) | |||||||
|
Three months
ended |
Change in Operating
Margin (pts) | ||||||
| October 31, 2017 | Q/Q | Y/Y | |||||
| Segment operating margin:(a) | |||||||
| Enterprise Group | 10.6 | % | 1.3 pts | (2.7) pts | |||
| Financial Services | 7.7 | % | (0.1) pts | (2.5) pts | |||
| Corporate Investments(b) | NM | NM | NM | ||||
| Total segment operating margin | 9.8 | % | 1.1 pts | (2.3) pts | |||
- As of April 1, 2017, with the spin-off of the enterprise services business, Everett SpinCo, Inc., and the merger of Everett SpinCo, Inc. with Computer Sciences Corporation, and as of September 1, 2017, with the spin-off of the software business, Seattle SpinCo, Inc., and the merger of Seattle SpinCo, Inc. with Micro Focus, the Company reclassified the historical net (loss) earnings from the former enterprise services segment ("former ES segment"), and the former software segment ("former software segment"), to Net earnings (loss) from discontinued operations in its Consolidated Statements of Earnings.
Effective at the beginning of the first quarter of fiscal 2017, the Company implemented organizational changes to align its segment financial reporting more closely with its current business structure. These organizational changes resulted in: (i) within the Enterprise Group segment, primarily, the transfer of the big data storage product group previously reported within the Servers business unit to the Storage business unit; the transfer of the Aruba services capabilities previously reported within the Networking business unit to the Technology Services business unit; and (ii) the transfer of the CMS product group previously reported within the former ES segment to the Technology Services business unit within the Enterprise Group segment.
The Company reflected these changes to its segment information retrospectively to the earliest period presented, which resulted in: (i) within the Enterprise Group segment, primarily, the transfer of net revenue from the big data storage product group previously reported within the Servers business unit to the Storage business unit; the transfer of net revenue from the Aruba services capabilities previously reported within the Networking business unit to the Technology Services business unit; and (ii) the transfer of net revenue, related eliminations of intersegment revenues and operating profit from the CMS product group previously reported within the former ES segment to the Technology Services business unit within the Enterprise Group segment.
Effective at the beginning of the second quarter of fiscal 2017 and prior to the completion of the spin-off of the enterprise services business, Everett SpinCo, Inc., and the merger of Everett SpinCo, Inc. with Computer Sciences Corporation, the Company transferred historical net revenue and operating profit from the previously divested MphasiS product group which was reported within the former ES segment to the Corporate Investments segment.
The changes within the Enterprise Group segment had no impact on Hewlett Packard Enterprise’s previously reported Enterprise Group segment net revenue and earnings from operations. The change between former ES segment and the Enterprise Group segment had no impact on Hewlett Packard Enterprise's previously reported consolidated net revenue, earnings from continuing operations, net earnings from continuing operations or net earnings per share from continuing operations.
- “NM” represents not meaningful.
|
HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES
CALCULATION OF DILUTED NET EARNINGS (LOSS) PER SHARE (Unaudited) (In millions, except per share amounts) | |||||||||||
| Three months ended | |||||||||||
|
October 31,
2017 |
July 31,
2017 |
October 31,
2016 | |||||||||
| Numerator: | |||||||||||
| GAAP net earnings from continuing operations | $ | 378 | $ | 285 | $ | 326 | |||||
| GAAP net earnings (loss) from discontinued operations | $ | 146 | $ | (120 | ) | $ | (24 | ) | |||
| Non-GAAP net earnings from continuing operations | $ | 473 | $ | 375 | $ | 389 | |||||
| Non-GAAP net earnings from discontinued operations | $ | 30 | $ | 122 | $ | 646 | |||||
| Denominator: | |||||||||||
| Weighted-average shares used to compute basic net earnings per share and
diluted net earnings (loss) per share | 1,618 | 1,641 | 1,672 | ||||||||
| Dilutive effect of employee stock plans (a) | 29 | 26 | 37 | ||||||||
| Weighted-average shares used to compute diluted net earnings per share | 1,647 | 1,667 | 1,709 | ||||||||
| GAAP net earnings per share from continuing operations | |||||||||||
| Basic | $ | 0.23 | $ | 0.17 | $ | 0.19 | |||||
| Diluted (a) | $ | 0.23 | $ | 0.17 | $ | 0.19 | |||||
| GAAP net earnings (loss) per share from discontinued operations | |||||||||||
| Basic | $ | 0.09 | $ | (0.07 | ) | $ | (0.01 | ) | |||
| Diluted (a) | $ | 0.09 | $ | (0.07 | ) | $ | (0.01 | ) | |||
| Non-GAAP net earnings per share from continuing operations | |||||||||||
| Basic | $ | 0.29 | $ | 0.23 | $ | 0.23 | |||||
| Diluted (b) | $ | 0.29 | $ | 0.22 | $ | 0.23 | |||||
| Non-GAAP net earnings per share from discontinued operations | |||||||||||
| Basic | $ | 0.02 | $ | 0.07 | $ | 0.39 | |||||
| Diluted (b) | $ | 0.02 | $ | 0.08 | $ | 0.38 | |||||
| Total Hewlett Packard Enterprise GAAP basic net earnings per share | $ | 0.32 | $ | 0.10 | $ | 0.18 | |||||
| Total Hewlett Packard Enterprise GAAP diluted net earnings per share | $ | 0.32 | $ | 0.10 | $ | 0.18 | |||||
| Total Hewlett Packard Enterprise Non-GAAP basic net earnings per share | $ | 0.31 | $ | 0.30 | $ | 0.62 | |||||
| Total Hewlett Packard Enterprise Non-GAAP diluted net earnings per share | $ | 0.31 | $ | 0.30 | $ | 0.61 | |||||
- GAAP diluted net earnings per share reflects any dilutive effect of restricted stock awards, stock options and performance-based stock awards, but the effect is excluded when there is a net (loss) from continuing operations and discontinued operations because it would be anti-dilutive.
- Non-GAAP diluted net earnings per share reflects any dilutive effect of restricted stock awards, stock options and performance-based awards.
