The Company reflected these changes to its segment information retrospectively to the earliest period presented, which primarily resulted in: (i) the transfer of net revenue, related eliminations of intersegment revenues and operating profit from the former Servers and Storage business units, the Pointnext and CMS businesses within the former Technology Services business unit and the data center networking business within the former Networking business unit, all of which were previously reported within the former EG segment, to the Hybrid IT segment; (ii) the transfer of net revenue, related eliminations of intersegment revenues and operating profit from the remaining networking products businesses within the former Networking business unit, and Aruba services within the former Technology Services business unit, all of which were previously reported within the former EG segment, to the Intelligent Edge segment; and (iii) the transfer of the operating loss from cloud-related activities previously reported within Corporate Investments to the Hybrid IT segment.
These changes had no impact on Hewlett Packard Enterprise's previously reported consolidated net revenue, earnings from operations, net earnings or net earnings per share.
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HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES
SEGMENT/BUSINESS UNIT INFORMATION (Unaudited) (In millions, except percentages) | ||||||||||
| Six Months Ended April 30, | ||||||||||
| 2018 | 2017 | Y/Y | ||||||||
| Net revenue:(a) | ||||||||||
| Hybrid IT | ||||||||||
| Hybrid IT Product | ||||||||||
| Compute | $ | 6,705 | $ | 6,176 | 9% | |||||
| Storage | 1,860 | 1,498 | 24% | |||||||
| DC Networking | 108 | 94 | 15% | |||||||
| Total Hybrid IT Product | 8,673 | 7,768 | 12% | |||||||
| Pointnext | 3,681 | 3,624 | 2% | |||||||
| Total Hybrid IT | 12,354 | 11,392 | 8% | |||||||
| Intelligent Edge | ||||||||||
| HPE Aruba Product | 1,184 | 1,041 | 14% | |||||||
| HPE Aruba Services | 146 | 135 | 8% | |||||||
| Total Intelligent Edge | 1,330 | 1,176 | 13% | |||||||
| Financial Services | 1,804 | 1,695 | 6% | |||||||
| Corporate Investments | (1 | ) | — | NM | ||||||
| Total segment net revenue | 15,487 | 14,263 | 9% | |||||||
| Elimination of intersegment net revenue and other | (345 | ) | (553 | ) | (38% | ) | ||||
| Total Hewlett Packard Enterprise consolidated net revenue | $ | 15,142 | $ | 13,710 | 10% | |||||
- Effective at the beginning of the first quarter of fiscal 2018, the Company implemented organizational changes to align its segment financial reporting more closely with its current business structure. These organizational changes primarily include: (i) the transfer of the former Servers and Storage business units, the Pointnext and CMS businesses within the former Technology Services business unit, and the data center networking business within the former Networking business unit, all of which were previously reported within the former EG segment, to the newly formed Hybrid IT segment; (ii) the transfer of the remaining networking products businesses, which include wireless LAN, campus and branch switching and edge compute within the former Networking business unit, and Aruba services within the former Technology Services business unit, all of which were previously reported within the former EG segment, to the newly formed Intelligent Edge segment; and (iii) the transfer of cloud-related activities previously reported within Corporate Investments to the Hybrid IT segment.
