8-K

Hewlett Packard Enterprise Co (HPE)

8-K 2023-02-09 For: 2023-02-09
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Added on April 08, 2026
UNITED STATES<br><br>SECURITIES AND EXCHANGE COMMISSION<br><br>WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF<br>THE SECURITIES EXCHANGE ACT OF 1934
February 9, 2023
Date of Report (Date of Earliest Event Reported)
HEWLETT PACKARD ENTERPRISE COMPANY
(Exact name of registrant as specified in its charter)
Delaware 001-37483 47-3298624
(State or other jurisdiction<br>of incorporation) (Commission File Number) (I.R.S. Employer<br>Identification No.) 1701 East Mossy Oaks Road, Spring, Texas 77389
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(Address of principal executive offices) (Zip code)
(678) 259-9860
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(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Exchange Act:
Title of each class Trading Symbol(s) Name of each exchange on which registered
Common stock, par value $0.01 per share HPE NYSE

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Item 2.02 Results of Operations and Financial Condition.
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The information contained in this Item 2.02 and in the accompanying Exhibit 99.1 shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Exchange Act or the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.

Effective at the beginning of the first quarter of fiscal 2023, in order to align its segment financial reporting more closely with its current business structure, Hewlett Packard Enterprise Company ("HPE") implemented an organizational change with the transfer of certain storage networking products, previously reported within the Storage reportable segment, to the Compute reportable segment.

HPE reflected these changes to its segment information retrospectively to the fiscal 2021 and 2022 financial results, which primarily resulted in the realignment of net revenue and operating profit for each of the segments as described above. These changes had no impact on Hewlett Packard Enterprise’s previously reported consolidated net revenue, net earnings, net earnings per share ("EPS") or total assets.

HPE has released revised quarterly and full year segment results for fiscal 2021 and 2022, which are attached hereto Exhibit 99.1 and are incorporated herein by reference.

Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Exhibit Number Description
Exhibit 99.1 Hewlett Packard Enterprise Company’s revised segment financial resultsfor fiscal 2021and 2022(furnished herewith).
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)
SIGNATURE
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Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
HEWLETT PACKARD ENTERPRISE COMPANY
DATE: February 9, 2023 By: /s/ Rishi Varma
Name: Rishi Varma
Title: Senior Vice President, General Counsel <br>and Corporate Secretary

Document

Exhibit 99.1

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

FISCAL 2022 SEGMENT INFORMATION (Revised)

(Unaudited)

(In millions)

REVISED AMOUNTS AMOUNTS AS PREVIOUSLY REPORTED VARIANCE
Three months ended Twelve months ended Three months ended Twelve months ended Three months ended Twelve months ended
Jan. 31, 2022 Apr. 30, 2022 July 31, 2022 Oct. 31, 2022 Oct. 31, 2022 Jan. 31, 2022 Apr. 30, 2022 July 31, 2023 Oct. 31, 2022 Oct. 31, 2022 Jan. 31, 2022 Apr. 30, 2022 July 31, 2023 Oct. 31, 2022 Oct. 31, 2022
Net revenue: (a)
Compute $ 3,044 $ 3,011 $ 3,027 $ 3,768 $ 12,850 $ 3,016 $ 2,985 $ 3,004 $ 3,737 $ 12,742 $ 28 $ 26 $ 23 $ 31 $ 108
HPC & MCS 790 710 830 862 3,192 790 710 830 862 3,192
Storage 1,128 1,072 1,129 1,274 4,603 1,156 1,098 1,152 1,305 4,711 (28) (26) (23) (31) (108)
Intelligent Edge 901 867 941 965 3,674 901 867 941 965 3,674
Financial Services 842 823 817 857 3,339 842 823 817 857 3,339
Corporate Investments and Other 325 327 300 303 1,255 325 327 300 303 1,255
Total segments 7,030 6,810 7,044 8,029 28,913 7,030 6,810 7,044 8,029 28,913
Elimination of intersegment net revenue (69) (97) (93) (158) (417) (69) (97) (93) (158) (417)
Total HPE consolidated net revenue $ 6,961 $ 6,713 $ 6,951 $ 7,871 $ 28,496 $ 6,961 $ 6,713 $ 6,951 $ 7,871 $ 28,496 $ $ $ $ $
Earnings before taxes: (a)
Compute $ 427 $ 426 $ 408 $ 560 $ 1,821 $ 416 $ 415 $ 400 $ 549 $ 1,780 $ 11 $ 11 $ 8 $ 11 $ 41
HPC & MCS (7) (40) 28 30 11 (7) (40) 28 30 11
Storage 157 127 161 196 641 168 138 169 207 682 (11) (11) (8) (11) (41)
Intelligent Edge 157 109 155 128 549 157 109 155 128 549
Financial Services 104 104 96 95 399 104 104 96 95 399
Corporate Investments and Other (11) (24) (31) (26) (92) (11) (24) (31) (26) (92)
Total segment earnings from operations 827 702 817 983 3,329 827 702 817 983 3,329
Unallocated corporate costs and eliminations (59) (75) (88) (81) (303) (59) (75) (88) (81) (303)
Stock-based compensation expense (128) (114) (64) (85) (391) (128) (114) (64) (85) (391)
Amortization of initial direct cost (1) (1) (1) (1) (4) (1) (1) (1) (1) (4)
Amortization of intangible assets (73) (74) (73) (73) (293) (73) (74) (73) (73) (293)
Impairment of goodwill (905) (905) (905) (905)
Transformation costs (111) (98) (80) (184) (473) (111) (98) (80) (184) (473)
Disaster recoveries (charges) 1 (125) (36) 1 (159) 1 (125) (36) 1 (159)
Acquisition, disposition and other related charges (8) (8) (9) 6 (19) (8) (8) (9) 6 (19)
Interest and other, net (5) (74) (109) (188) (5) (74) (109) (188)
Tax indemnification adjustments (17) (30) (20) (67) (17) (30) (20) (67)
Non-service net periodic benefit credit 36 36 34 28 134 36 36 34 28 134
Earnings from equity interests 31 33 68 83 215 31 33 68 83 215
Total HPE consolidated earnings (loss) before taxes $ 493 $ 276 $ 464 $ (357) $ 876 $ 493 $ 276 $ 464 $ (357) $ 876 $ $ $ $ $

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

FISCAL 2022 SEGMENT INFORMATION (Revised)

(Unaudited)

REVISED AMOUNTS AMOUNTS AS PREVIOUSLY REPORTED VARIANCE
Three months ended Twelve months ended Three months ended Twelve months ended Three months ended Twelve months ended
Jan. 31, 2022 Apr. 30, 2022 July 31, 2022 Oct. 31, 2022 Oct. 31, 2022 Jan. 31, 2022 Apr. 30, 2022 July 31, 2023 Oct. 31, 2022 Oct. 31, 2022 Jan. 31, 2022 Apr. 30, 2022 July 31, 2023 Oct. 31, 2022 Oct. 31, 2022
Segment operating margin:(a)
Compute 14.0 % 14.1 % 13.5 % 14.9 % 14.2 % 13.8 % 13.9 % 13.3 % 14.7 % 14.0 % 0.2 pts 0.2 pts 0.2 pts 0.2 pts 0.2 pts
HPC & MCS (0.9) % (5.6) % 3.4 % 3.5 % 0.3 % (0.9) % (5.6) % 3.4 % 3.5 % 0.3 % pts pts pts pts pts
Storage 13.9 % 11.8 % 14.3 % 15.4 % 13.9 % 14.5 % 12.6 % 14.7 % 15.9 % 14.5 % (0.6 pts) (0.8 pts) (0.4 pts) (0.5 pts) (0.6 pts)
Intelligent Edge 17.4 % 12.6 % 16.5 % 13.3 % 14.9 % 17.4 % 12.6 % 16.5 % 13.3 % 14.9 % pts pts pts pts pts
Financial Services 12.4 % 12.6 % 11.8 % 11.1 % 11.9 % 12.4 % 12.6 % 11.8 % 11.1 % 11.9 % pts pts pts pts pts
Corporate Investments and Other (3.4) % (7.3) % (10.3) % (8.6) % (7.3) % (3.4) % (7.3) % (10.3) % (8.6) % (7.3) % pts pts pts pts pts
Total segment operating margin 11.8 % 10.3 % 11.6 % 12.2 % 11.5 % 11.8 % 10.3 % 11.6 % 12.2 % 11.5 % pts pts pts pts pts

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

FISCAL 2021 SEGMENT INFORMATION (Revised)

(Unaudited)

(In millions)

REVISED AMOUNTS AMOUNTS AS PREVIOUSLY REPORTED VARIANCE
Three months ended Twelve months ended Three months ended Twelve months ended Three months ended Twelve months ended
Jan. 31, 2021 Apr. 30, 2021 July 31, 2021 Oct. 31, 2021 Oct. 31, 2021 Jan. 31, 2021 Apr. 30, 2021 July 31, 2021 Oct. 31, 2021 Oct. 31, 2021 Jan. 31, 2021 Apr. 30, 2021 July 31, 2021 Oct. 31, 2021 Oct. 31, 2021
Net revenue: (a)
Compute $ 3,018 $ 3,004 $ 3,133 $ 3,254 $ 12,409 $ 2,984 $ 2,974 $ 3,102 $ 3,224 $ 12,284 $ 34 $ 30 $ 31 $ 30 $ 125
HPC & MCS 761 684 740 999 3,184 761 684 740 999 3,184
Storage 1,158 1,106 1,144 1,227 4,635 1,192 1,136 1,175 1,257 4,760 (34) (30) (31) (30) (125)
Intelligent Edge 810 803 871 818 3,302 810 803 871 818 3,302
Financial Services 860 839 844 858 3,401 860 839 844 858 3,401
Corporate Investments and Other 321 350 332 353 1,356 321 350 332 353 1,356
Total Segments 6,928 6,786 7,064 7,509 28,287 6,928 6,786 7,064 7,509 28,287
Elimination of intersegment net revenue (95) (86) (167) (155) (503) (95) (86) (167) (155) (503)
Total HPE consolidated net revenue $ 6,833 $ 6,700 $ 6,897 $ 7,354 $ 27,784 $ 6,833 $ 6,700 $ 6,897 $ 7,354 $ 27,784 $ $ $ $ $
Earnings before taxes: (a)
Compute $ 358 $ 348 $ 361 $ 315 $ 1,382 $ 341 $ 334 $ 346 $ 302 $ 1,323 $ 17 $ 14 $ 15 $ 13 $ 59
HPC & MCS 43 18 28 142 231 43 18 28 142 231
Storage 217 177 162 160 716 234 191 177 173 775 (17) (14) (15) (13) (59)
Intelligent Edge 154 126 140 89 509 154 126 140 89 509
Financial Services 84 91 94 121 390 84 91 94 121 390
Corporate Investments and Other (31) (25) (28) (11) (95) (31) (25) (28) (11) (95)
Total segment earnings from operations 825 735 757 816 3,133 825 735 757 816 3,133
Unallocated corporate costs and eliminations (52) (50) (84) (99) (285) (52) (50) (84) (99) (285)
Stock-based compensation expense (110) (98) (86) (78) (372) (110) (98) (86) (78) (372)
Amortization of initial direct costs (2) (2) (2) (2) (8) (2) (2) (2) (2) (8)
Amortization of intangible assets (110) (84) (82) (78) (354) (110) (84) (82) (78) (354)
Transformation costs (311) (209) (213) (197) (930) (311) (209) (213) (197) (930)
Disaster charges (1) (5) (10) (16) (1) (5) (10) (16)
Acquisition, disposition and other related charges (18) (13) (3) (2) (36) (18) (13) (3) (2) (36)
Interest and other, net (44) (11) (50) (6) (111) (44) (11) (50) (6) (111)
Tax indemnification adjustments (16) 76 5 65 (16) 76 5 65
Non-service net periodic benefit credit 17 17 19 17 70 17 17 19 17 70
Litigation judgment 2,351 2,351 2,351 2,351
Early debt redemption costs (100) (100) (100) (100)
Earnings from equity interests 26 4 79 71 180 26 4 79 71 180
Total HPE consolidated earnings before taxes $ 205 $ 288 $ 406 $ 2,688 $ 3,587 $ 205 $ 288 $ 406 $ 2,688 $ 3,587 $ $ $ $ $

HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES

FISCAL 2021 SEGMENT INFORMATION (Revised)

(Unaudited)

REVISED AMOUNTS AMOUNTS AS PREVIOUSLY REPORTED VARIANCE
Three months ended Twelve months ended Three months ended Twelve months ended Three months ended Twelve months ended
Jan. 31, 2021 Apr. 30, 2021 July 31, 2021 Oct. 31, 2021 Oct. 31, 2021 Jan. 31, 2021 Apr. 30, 2021 July 31, 2021 Oct. 31, 2021 Oct. 31, 2021 Jan. 31, 2021 Apr. 30, 2021 July 31, 2021 Oct. 31, 2021 Oct. 31, 2021
Segment operating margin:(a)
Compute 11.9 % 11.6 % 11.5 % 9.7 % 11.1 % 11.4 % 11.2 % 11.2 % 9.4 % 10.8 % 0.5 pts 0.4 pts 0.3 pts 0.3 pts 0.3 pts
HPC & MCS 5.7 % 2.6 % 3.8 % 14.2 % 7.3 % 5.7 % 2.6 % 3.8 % 14.2 % 7.3 % pts pts pts pts pts
Storage 18.7 % 16.0 % 14.2 % 13.0 % 15.4 % 19.6 % 16.8 % 15.1 % 13.8 % 16.3 % (0.9 pts) (0.8 pts) (0.9 pts) (0.8 pts) (0.9 pts)
Intelligent Edge 19.0 % 15.7 % 16.1 % 10.9 % 15.4 % 19.0 % 15.7 % 16.1 % 10.9 % 15.4 % pts pts pts pts pts
Financial Services 9.8 % 10.8 % 11.1 % 14.1 % 11.5 % 9.8 % 10.8 % 11.1 % 14.1 % 11.5 % pts pts pts pts pts
Corporate Investments and Other (9.7) % (7.1) % (8.4) % (3.1) % (7.0) % (9.7) % (7.1) % (8.4) % (3.1) % (7.0) % pts pts pts pts pts
Total segment operating margin 11.9 % 10.8 % 10.7 % 10.9 % 11.1 % 11.9 % 10.8 % 10.7 % 10.9 % 11.1 % pts pts pts pts pts

(a) Effective at the beginning of the first quarter of fiscal 2023, in order to align its segment financial reporting more closely with its current business structure, the Company implemented an organizational change with the transfer of certain storage networking products, previously reported within the Storage reportable segment, to the Compute reportable segment.

The Company reflected these changes to its segment information retrospectively to the fiscal 2021 and 2022 financial results, which primarily resulted in the realignment of net revenue and operating profit for each of the segments as described above. These changes had no impact on Hewlett Packard Enterprise’s previously reported consolidated net revenue, net earnings, net earnings per share ("EPS") or total assets.