HPE Reports Fiscal 2018 Second Quarter Results


  • 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 enterprise services business, Everett SpinCo, Inc., and the merger of Everett SpinCo, Inc. with Computer Sciences Corporation.

  • Represents the settlement of certain pre-separation Hewlett-Packard Company income tax liabilities indemnified through the Tax Matters Agreement with HP Inc.

  • Includes tax amounts in connection with the spin-off of the enterprise services business, Everett SpinCo, Inc. and the software business, Seattle SpinCo, Inc., tax amounts related to the recently enacted U.S. tax reform, tax amounts related to the settlement of certain pre-separation Hewlett-Packard Company income tax liabilities indemnified through the Tax Matters Agreement with HP Inc. and excess tax benefits associated with stock-based compensation.

    In connection with the spin-off of the enterprise services business, Everett SpinCo, Inc, for the six months ended April 30, 2018, this amount includes a $239 million benefit primarily from foreign tax credits and from the release of non U.S. valuation allowances on deferred taxes established in connection with the Everett Transaction, following changes in foreign tax laws. For the six months ended April 30, 2017, this amount primarily includes $593 million of income tax expense from valuation allowances on certain U.S. deferred tax assets and other divestiture related taxes.

    In connection with the settlement of certain pre-separation Hewlett-Packard Company income tax liabilities indemnified through the Tax Matters Agreement with HP Inc, for the six months ended April 30, 2018, this amount primarily includes a $2.0 billion benefit.

    As a result of the recently enacted U.S. tax reform, for the six months ended April 30, 2018, this amount includes an estimated tax benefit of $1.8 billion from the provisional application of the new tax rules including a lower federal tax rate to deferred tax assets and liabilities, partially offset by a provisional estimate of $1.1 billion of transition tax expense on accumulated non U.S. earnings, and a $203 million benefit as a result of the liquidation of an insolvent non U.S. subsidiary.

    During the first quarter of fiscal 2018, the Company adopted ASU 2016-09 on a prospective basis, except for the statement of cash flows for which it was retrospectively adopted for the prior comparative periods, which requires the excess tax benefits or tax deficiencies associated with stock-based compensation to be recognized as a component of the provision for income taxes in the Statement of Earnings rather than additional paid-in capital in the Balance Sheet. For the six months ended April 30, 2018, this amount includes $42 million, which represents the net excess tax benefits from stock-based compensation. 

  •  
    HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES
    ADJUSTMENTS TO GAAP NET EARNINGS, EARNINGS FROM OPERATIONS,
    OPERATING MARGIN AND DILUTED NET EARNINGS PER SHARE
    (Unaudited)
    (In millions, except percentages and per share amounts)
                
      Three months
    ended
    April 30, 2018
      Diluted net
    earnings
    per share
      Three months
    ended
    January 31,
    2018
      Diluted net
    earnings
    per share
      Three months
    ended
    April 30, 2017
      Diluted net
    earnings
    per share
    GAAP net earnings (loss) from continuing operations$850  $0.54  $1,482  $0.92  $(478) $(0.29)
                
    Non-GAAP adjustments:           
    Amortization of intangible assets72  0.05  78  0.05  72  0.04 
    Restructuring charges9  0.01  3    69  0.04 
    Transformation costs(a)123  0.08  245   0.15          
    Acquisition and other related charges 16     0.01     30     0.02     50     0.03  
    Separation costs 26     0.02     (24 )   (0.01 )   30     0.02  
    Defined benefit plan settlement charges and remeasurement (benefit) (b)                 (12 )   (0.01 )
    Tax indemnification adjustments (c) 425     0.27     919     0.57     (7 )    
    Loss from equity interests (d) 38     0.02     37     0.02     38     0.02  
    Adjustments for taxes (e) (1,023 )   (0.66 )   (2,223 )   (1.38 )     525       0.32  
    Non-GAAP net earnings from continuing operations $ 536     $ 0.34     $ 547     $ 0.34     $ 287     $ 0.17  
                           
    GAAP earnings from continuing operations $ 397         $ 261         $ 195      
                           
    Non-GAAP adjustments related to continuing operations:                      
    Amortization of intangible assets 72         78         72      
    Restructuring charges 9         3         69      
    Transformation costs (a) 123         245              
    Acquisition and other related charges 16         30         50      
    Separation costs 26         (24 )       30      
    Defined benefit plan settlement charges and remeasurement (benefit) (b)                 (12 )    
    Non-GAAP earnings from continuing operations $ 643         $ 593         $ 404      
                           
    GAAP operating margin from continuing operations 5 %       3 %       3 %    
    Non-GAAP adjustments from continuing operations 4 %       5 %       3 %    
    Non-GAAP operating margin from continuing operations 9 %       8 %       6 %    
                           
    GAAP net loss from discontinued operations $ (72 )   $ (0.05 )   $ (46 )   $ (0.03 )   $ (134 )   $ (0.08 )
                           
    Non-GAAP adjustments related to discontinued operations:                      
    Amortization of intangible assets                 36     0.02  
    Restructuring charges                 146     0.09  
    Acquisition and other related charges                 1      
    Separation costs         51     0.03     448     0.27  
    Defined benefit plan settlement charges and remeasurement (benefit) (b)                 (4 )    
    Tax indemnification adjustments (c) 72     0.05     (4 )            
    Adjustments for taxes         (1 )         (193 )   (0.12 )
    Non-GAAP net earnings from discontinued operations $     $     $     $     $ 300     $ 0.18  
                           
    Total GAAP net earnings (loss) $ 778     $ 0.49     $ 1,436     $ 0.89     $ (612 )   $ (0.37 )
    Total Non-GAAP net earnings $ 536     $ 0.34     $ 547     $ 0.34     $ 587     $ 0.35  
    1. Represents amounts in connection with the HPE Next initiative and primarily includes costs related to labor and non-labor restructuring, program management and IT charges, partially offset by the gain on sale of real estate.

      « Previous Page 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15  Next Page »



    © 2024 Internet Business Systems, Inc.
    670 Aberdeen Way, Milpitas, CA 95035
    +1 (408) 882-6554 — Contact Us
    ShareCG™ is a trademark of Internet Business Systems, Inc.

    Report a Bug Report Abuse Make a Suggestion About Privacy Policy Contact Us User Agreement Advertise