Summary
This 8-K filing from Hewlett Packard Enterprise (HPE) on February 13, 2018, primarily announces significant changes to its segment financial reporting, effective at the beginning of fiscal year 2018. These changes are retrospective and aimed at aligning reporting with the company's current business structure and improving visibility. Investors should note that while the segment structure has been reorganized, these changes had no impact on HPE's previously reported consolidated net revenue, earnings from operations, net earnings, or net earnings per share. The key reclassifications include the creation of a 'Hybrid IT' segment and an 'Intelligent Edge' segment. Hybrid IT consolidates former Server and Storage units, along with specific parts of Technology Services and Networking. The Intelligent Edge segment comprises wireless LAN, campus/branch switching, edge compute networking, and Aruba Services. Additionally, methodologies for allocating stock-based compensation and corporate costs have been adjusted. Revised segment results for fiscal years 2017 and 2016 are being provided.
Key Highlights
- 1HPE is restructuring its segment financial reporting for improved alignment and visibility.
- 2A new 'Hybrid IT' segment is created, combining former Server, Storage, and parts of Technology Services and Networking businesses.
- 3A new 'Intelligent Edge' segment is established, focusing on networking, wireless LAN, and Aruba Services.
- 4These segment changes are applied retrospectively to fiscal years 2016 and 2017.
- 5Despite the segment reclassification, consolidated net revenue, operating earnings, net earnings, and EPS remain unaffected.
- 6Changes in allocation methodology for stock-based compensation and corporate costs are also implemented.
- 7Revised segment and business unit revenue statements for FY2017 and FY2016 are furnished as Exhibit 99.1.