8-KEarnings & ResultsExhibits & Filings

Hewlett Packard Enterprise Co 8-K Report, Financial Results (Feb 13, 2019)

Filed February 13, 2019For Securities:HPEHPE-PC

Summary

This 8-K filing from Hewlett Packard Enterprise Company (HPE) on February 13, 2019, primarily announces retrospective changes to its segment financial reporting structure, effective at the beginning of fiscal year 2019. These organizational realignments aim to better align reporting with HPE's current business operations, including the transfer of the data center networking business to the Intelligent Edge segment and the edge compute business to the Hybrid IT segment. Additionally, the Communications and Media Solutions business has been moved to the Corporate Investments segment. These changes are applied retrospectively to prior periods to enhance visibility and comparability. Furthermore, HPE has adopted new accounting standards for retirement benefits, reclassifying non-service net periodic benefit credits from operating expense to other income and expense. Importantly, the company states these reporting and accounting changes have no impact on previously reported consolidated net revenue, GAAP net earnings, or GAAP net earnings per share. Revised segment results, business unit revenues, and non-GAAP earnings for fiscal years 2018 and 2017 are provided in an accompanying exhibit.

Key Highlights

  • 1HPE implemented significant changes to its segment financial reporting structure effective Q1 FY2019, retrospectively applied for comparability.
  • 2Data Center Networking (DC Networking) business moved from Hybrid IT segment to Intelligent Edge segment.
  • 3Edge Compute business moved from Intelligent Edge segment to Hybrid IT segment.
  • 4Communications and Media Solutions (CMS) business moved to the Corporate Investments segment.
  • 5HPE adopted new accounting standards for retirement benefits, reclassifying non-service net periodic benefit credits to 'other income and expense'.
  • 6Crucially, these changes did not impact previously reported consolidated net revenue, GAAP net earnings, or GAAP net earnings per share.
  • 7Revised segment results and non-GAAP earnings for fiscal years 2018 and 2017 are furnished via Exhibit 99.1.

Frequently Asked Questions

The main purpose of this filing is to announce significant retrospective changes to Hewlett Packard Enterprise's (HPE) segment financial reporting structure and the adoption of new accounting standards for retirement benefits. These changes aim to improve how the company reports its financial performance to better reflect its current business operations and provide enhanced comparability.

No, the filing explicitly states that these organizational and accounting changes had no impact on HPE's previously reported consolidated net revenue, GAAP net earnings, or GAAP net earnings per share. The changes primarily affect the internal allocation and presentation of results across different business segments and line items.

The Data Center Networking business was moved from the Hybrid IT segment to the Intelligent Edge segment. The Edge Compute business was moved from the Intelligent Edge segment to the Hybrid IT segment. The Communications and Media Solutions (CMS) business was moved to the Corporate Investments segment.

Revised segment financial results, statements of business unit revenue, and revised non-GAAP net earnings and non-GAAP net earnings per share for fiscal years 2018 and 2017 are provided in Exhibit 99.1, which is furnished with this 8-K filing.