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HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited) (In millions, except per share amounts) | |||||||
| Twelve months ended October 31, | |||||||
| 2017 | 2016 | ||||||
| Net revenue | $ | 28,871 | $ | 30,280 | |||
| Costs and expenses: | |||||||
| Cost of sales | 20,177 | 20,507 | |||||
| Research and development | 1,486 | 1,714 | |||||
| Selling, general and administrative | 5,006 | 5,380 | |||||
| Amortization of intangible assets | 321 | 272 | |||||
| Restructuring charges | 417 | 417 | |||||
| Transformation costs(a) | 359 | — | |||||
| Disaster charges(b) | 93 | — | |||||
| Acquisition and other related charges | 203 | 145 | |||||
| Separation costs | 248 | 362 | |||||
| Defined benefit plan settlement charges and remeasurement (benefit)(c) | (64 | ) | — | ||||
| Gain on H3C and MphasiS divestitures | — | (2,420 | ) | ||||
| Total costs and expenses | 28,246 | 26,377 | |||||
| Earnings from continuing operations | 625 | 3,903 | |||||
| Interest and other, net | (327 | ) | (284 | ) | |||
| Tax indemnification adjustments | (3 | ) | 317 | ||||
| Loss from equity interests(d) | (23 | ) | (76 | ) | |||
| Earnings from continuing operations before taxes | 272 | 3,860 | |||||
| Tax valuation allowances and separation taxes(e) | 215 | — | |||||
| Tax settlements | — | (647 | ) | ||||
| (Provision) benefit for taxes | (51 | ) | 24 | ||||
| Net earnings from continuing operations | 436 | 3,237 | |||||
| Net loss from discontinued operations | (92 | ) | (76 | ) | |||
| Net earnings | $ | 344 | $ | 3,161 | |||
| Net earnings (loss) per share: | |||||||
| Basic | |||||||
| Continuing operations | $ | 0.26 | $ | 1.89 | |||
| Discontinued operations | (0.05 | ) | (0.05 | ) | |||
| Total basic net earnings per share | $ | 0.21 | $ | 1.84 | |||
| Diluted | |||||||
| Continuing operations | $ | 0.26 | $ | 1.86 | |||
| Discontinued operations | (0.05 | ) | (0.04 | ) | |||
| Total diluted net earnings per share | $ | 0.21 | $ | 1.82 | |||
| Cash dividends declared per share | $ | 0.26 | $ | 0.22 | |||
| Weighted-average shares used to compute net earnings per share: | |||||||
| Basic | 1,646 | 1,715 | |||||
| Diluted | 1,674 | 1,739 | |||||
- Represents amounts in connection with the HPE Next initiative and includes costs related to labor and non-labor restructuring, program management and IT charges, partially offset by a gain on sale of real estate.
- Represents amounts in connection with damages sustained by the Company as a result of Hurricane Harvey.
- Represents adjustment to net periodic pension cost resulting from remeasurements of the Hewlett Packard Enterprise pension plans in connection with the spin-off of the software business, Seattle SpinCo, Inc., and the merger of Seattle SpinCo, Inc. with Micro Focus International plc and the spin-off of the enterprise services business, Everett SpinCo, Inc., and the merger of Everett SpinCo, Inc. with Computer Sciences Corporation.
- Primarily represents the Company’s ownership interest in the net earnings of H3C, which the Company records as an equity method investment.
- Represents tax amounts in connection with the spin-off of the enterprise services business, Everett SpinCo, Inc. and the software business, Seattle SpinCo, Inc. This amount primarily includes the income tax benefit related to U.S. foreign tax credits generated partially offset by income tax expense as a result of recording valuation allowances on certain U.S. deferred tax assets.
