HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED AND COMBINED STATEMENTS OF EARNINGS
(Unaudited)
(In millions, except per share amounts)
April 30,
2016
Net revenue
$
Costs and expenses:
Cost of sales
Research and development
Selling, general and administrative
Amortization of intangible assets
Restructuring charges
Acquisition and other related charges
Separation costs
Total costs and expenses
12,711
Three months ended
January 31,
2016
$
12,724
April 30,
2015
$
12,549
9,068
624
2,021
201
161
53
91
12,219
9,112
585
1,998
218
311
37
79
12,340
8,965
552
1,974
204
248
19
159
12,121
492
384
428
Interest and other, net
(129)
(65)
(30)
Earnings before taxes
363
319
398
Provision for taxes
(43)
(52)
(93)
Earnings from operations
Net earnings
$
320
$
267
$
305
Net earnings per share: (a)
Basic
Diluted
$
$
0.19
0.18
$
$
0.15
0.15
$
$
0.17
0.16
Cash dividends declared per share
$
0.06
$
0.11
$
—
Weighted-average shares used to compute net earnings per share: (a)
Basic
Diluted
1,725
1,751
1,761
1,778
1,804
1,834
(a) On November 1, 2015, HP Inc. (formerly Hewlett-Packard Company) distributed a total of 1.8 billion shares of Hewlett Packard
Enterprise common stock to HP Inc. stockholders as of the record date. For comparative purposes, the same number of shares
used to compute basic and diluted net earnings per share (“EPS”) for the fiscal year ended October 31, 2015 is used for the
calculation of basic and diluted net EPS for all periods in fiscal 2015.
HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED AND COMBINED STATEMENTS OF EARNINGS
(Unaudited)
(In millions, except per share amounts)
Six months ended April 30,
2016
2015
Net revenue
$
Costs and expenses:
Cost of sales
Research and development
Selling, general and administrative
Amortization of intangible assets
Restructuring charges
Acquisition and other related charges
Separation costs
Total costs and expenses
Earnings from operations
25,435
$
25,602
18,180
1,209
4,019
419
472
90
170
24,559
18,398
1,084
3,947
407
380
23
203
24,442
876
1,160
Interest and other, net
(194)
Earnings before taxes
682
Provision for taxes
(95)
(48)
1,112
(260)
Net earnings
$
587
$
852
Net earnings per share: (a)
Basic
Diluted
$
$
0.34
0.33
$
$
0.47
0.46
Cash dividends declared per share
$
0.17
$
—
Weighted-average shares used to compute net earnings per share: (a)
Basic
Diluted
1,743
1,765
1,804
1,834
(a) On November 1, 2015, HP Inc. (formerly Hewlett-Packard Company) distributed a total of 1.8 billion shares of Hewlett Packard
Enterprise common stock to HP Inc. stockholders as of the record date. For comparative purposes, the same number of shares
used to compute basic and diluted net earnings per share (“EPS”) for the fiscal year ended October 31, 2015 is used for the
calculation of basic and diluted net EPS for all periods in fiscal 2015.
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, 2016
GAAP net earnings
$
320
Non-GAAP adjustments:
Amortization of intangible assets
Restructuring charges
Acquisition and other related charges
Separation costs
Tax indemnification adjustments
Adjustments for taxes
Non-GAAP net earnings
$
GAAP earnings from operations
$
492
$
201
161
53
91
998
Non-GAAP adjustments:
Amortization of intangible assets
Restructuring charges
Acquisition and other related charges
Separation costs
Non-GAAP earnings from operations
GAAP operating margin
Non-GAAP adjustments
Non-GAAP operating margin
Diluted
net earnings
per share
$
201
161
53
91
69
(164)
731 $
4%
4%
8%
0.18
Three months
ended
January 31, 2016
$
0.11
0.09
0.03
0.05
0.04
(0.08)
0.42 $
267
Diluted
net earnings
per share
$
218
311
37
79
(15)
(166)
731 $
$
384
$
218
311
37
79
1,029
3%
5%
8%
0.15
Three months
ended
April 30, 2015
$
0.12
0.17
0.02
0.04
(0.01)
(0.08)
0.41 $
305
Diluted
net earnings
per share
$
204
248
19
159
—
(130)
805 $
$
428
$
204
248
19
159
1,058
3%
5%
8%
0.16
0.11
0.14
0.01
0.09
—
(0.07)
0.44
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)
Diluted
net earnings
per share
Six months ended
April 30, 2016
GAAP net earnings
$
587
Non-GAAP adjustments:
Amortization of intangible assets
Restructuring charges
Acquisition and other related charges
Separation costs
Tax indemnification adjustments
Adjustments for taxes
Non-GAAP net earnings
$
GAAP earnings from operations
$
876
$
419
472
90
170
2,027
Non-GAAP adjustments:
Amortization of intangible assets
Restructuring charges
Acquisition and other related charges
Separation costs
Non-GAAP earnings from operations
GAAP operating margin
Non-GAAP adjustments
Non-GAAP operating margin
$
419
472
90
170
54
(330)
1,462 $
3%
5%
8%
0.33
Diluted
net earnings
per share
Six months ended
April 30, 2015
$
0.24
0.27
0.05
0.10
0.03
(0.19)
0.83 $
852
$
407
380
23
203
—
(201)
1,664 $
$
1,160
$
407
380
23
203
2,173
5%
3%
8%
0.46
0.22
0.21
0.01
0.11
—
(0.10)
0.91
HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions, except par value)
As of
April 30, 2016
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents
Accounts receivable
Financing receivables
Inventory
Assets held for sale (b)
Other current assets (a)
$
October 31, 2015
9,010
7,707
3,017
2,099
4,077
5,237
$
9,842
8,538
2,918
2,198
—
6,468
Total current assets
31,147
29,964
Property, plant and equipment
9,674
9,886
Long-term financing receivables and other assets (a)
11,563
10,875
Goodwill and intangible assets
25,680
29,191
Total assets (a)
$
78,064
$
79,916
$
965
5,289
2,212
462
4,817
727
6,125
$
691
5,828
2,902
476
5,154
—
6,942
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Notes payable and short-term borrowings
Accounts payable
Employee compensation and benefits
Taxes on earnings (a)
Deferred revenue
Liabilities held for sale (b)
Other accrued liabilities
Total current liabilities
20,597
21,993
Long-term debt
15,247
15,103
Other liabilities (a)
10,196
8,902
—
—
Stockholders’ equity
HPE stockholders’ equity:
Preferred stock, $0.01 par value (300 shares authorized; none issued and
outstanding at April 30, 2016)
Common stock, $0.01 par value (9,600 shares authorized; 1,724 issued and
outstanding at April 30, 2016)
Additional paid-in capital
Retained earnings
Former Parent company investment
Accumulated other comprehensive loss
Total HPE stockholders’ equity
Non-controlling interests
Total stockholders’ equity
Total liabilities and stockholders’ equity (a)
$
17
36,483
301
—
(5,167)
31,634
390
—
—
—
38,550
(5,015)
33,535
383
32,024
33,918
78,064
$
79,916
(a) During the first quarter of fiscal 2016, the Company early adopted the guidance on the balance sheet classification of deferred
taxes and elected to apply it retrospectively to all periods presented. As such, prior period amounts have been reclassified to conform
to the current presentation.
(b) During the second quarter of fiscal 2016, the Company received all the necessary regulatory approvals related to its partnership
with Tsinghua Holdings, and as such, the transaction met all of the held for sale criteria. The transaction closed in May 2016.
HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED AND COMBINED STATEMENTS OF CASH FLOWS
(Unaudited)
(In millions)
Cash flows from operating activities:
Net earnings
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization
Stock-based compensation expense
Provision for doubtful accounts and inventory
Restructuring charges
Deferred taxes on earnings
Excess tax benefit from stock-based compensation
Other, net
Changes in operating assets and liabilities, net of acquisitions: (a)
Accounts receivable
Financing receivables
Inventory
Accounts payable
Taxes on earnings
Restructuring
Other assets and liabilities
Net cash provided by operating activities
Three months ended
April 30, 2016
$
320
Six months ended
April 30, 2016
$
587
960
138
70
161
(276)
(2)
35
1,949
303
109
472
(31)
(4)
79
(246)
(269)
(4)
376
93
(204)
(45)
1,107
366
(209)
(186)
(412)
(347)
(489)
(1,155)
1,032
Cash flows from investing activities:
Investment in property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchases of available-for-sale securities and other investments
Maturities and sales of available-for-sale securities and other investments
Payments made in connection with business acquisitions, net of cash acquired
Proceeds from business divestitures, net
Net cash used in investing activities
(720)
124
(197)
127
(13)
250
(429)
(1,552)
200
(341)
270
(13)
315
(1,121)
Cash flows from financing activities:
Short-term borrowings with original maturities less than 90 days, net
Issuance of debt
Payment of debt
Settlement of cash flow hedge
Issuance of common stock under employee stock plans
Repurchase of common stock
Net transfer (to) from former Parent
Excess tax benefit from stock-based compensation
Cash dividends paid
Net cash used in financing activities
(38)
270
(245)
11
14
(15)
(41)
2
(94)
(136)
(36)
570
(354)
3
18
(1,212)
491
4
(190)
(706)
Increase (decrease) in cash and cash equivalents
Cash held for sale (a)
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period
$
542
(37)
8,505
9,010 $
(795)
(37)
9,842
9,010
(a) During the second quarter of fiscal 2016, the Company received all of the necessary regulatory approvals related to its partnership
with Tsinghua Holdings, and as such, the transaction met all of the held for sale criteria. The transaction closed in May 2016. The
impact of assets and liabilities reclassified as held for sale during the period was not considered in the changes in operating assets and
liabilities, net of acquisitions reconciliation within cash flows from operating activities.
HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES
SEGMENT INFORMATION
(Unaudited)
(In millions)
April 30,
2016
Three months ended
January 31,
2016
April 30,
2015
Net revenue: (a)
Enterprise Group
Enterprise Services
Software
Financial Services
Corporate Investments
Total segment net revenue
Elimination of intersegment net revenue and other
Total Hewlett Packard Enterprise consolidated and combined net revenue
$
7,010 $
4,723
774
788
2
13,297
(586)
7,051 $
4,688
780
776
1
13,296
(572)
6,560
4,817
892
805
1
13,075
(526)
$
12,711
12,724
12,549
$
$
Earnings before taxes: (a)
Enterprise Group
Enterprise Services
Software
Financial Services
Corporate Investments
Total segment earnings from operations
$
Corporate and unallocated costs and eliminations
Stock-based compensation expense
Amortization of intangible assets
Restructuring charges
Acquisition and other related charges
Separation costs
Interest and other, net
Total Hewlett Packard Enterprise consolidated and combined earnings before
taxes
817 $
317
192
73
(87)
1,312
(176)
(138)
(201)
(161)
(53)
(91)
(129)
$
363
944 $
238
136
100
(99)
1,319
(125)
(165)
(218)
(311)
(37)
(79)
(65)
$
319
923
172
159
85
(108)
1,231
(76)
(97)
(204)
(248)
(19)
(159)
(30)
$
398
(a) Effective at the beginning of the first quarter of fiscal 2016, HPE implemented organizational changes to align its segment
financial reporting more closely with its current business structure. These organizational changes resulted in: (i) within the
Enterprise Group segment, the consolidation of the Industry Standard Servers and Business Critical Systems business units into
the newly formed Servers business unit; and (ii) the transfer of certain Cloud-related marketing headcount activities from the
Corporate Investment segment to the Enterprise Group segment. HPE reflected these changes to its segment information
retrospectively to the earliest period presented, which resulted in: (i) the consolidation of net revenue from the Industry Standard
Servers and Business Critical Systems business units into the Servers business unit within the Enterprise Group segment; and
(ii) the transfer of operating expenses from the Corporate Investment segment to the Enterprise Group segment. These changes
had no impact on HPE’s previously reported consolidated and combined net revenue, earnings from operations, net earnings or
net earnings per share.
HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES
SEGMENT INFORMATION
(Unaudited)
(In millions)
Six months ended April 30,
2016
2015
Net revenue: (a)
Enterprise Group
Enterprise Services
Software
Financial Services
Corporate Investments
Total segment net revenue
Elimination of intersegment net revenue and other
Total Hewlett Packard Enterprise consolidated and combined net revenue
$
14,061 $
9,411
1,554
1,564
3
26,593
(1,158)
13,542
9,810
1,762
1,608
5
26,727
(1,125)
$
25,435
25,602
$
Earnings before taxes: (a)
Enterprise Group
Enterprise Services
Software
Financial Services
Corporate Investments
Total segment earnings from operations
$
Corporate and unallocated costs and eliminations
Stock-based compensation expense
Amortization of intangible assets
Restructuring charges
Acquisition and other related charges
Separation costs
Interest and other, net
Total Hewlett Packard Enterprise consolidated and combined earnings before taxes
1,761 $
555
328
173
(186)
2,631
(301)
(303)
(419)
(472)
(90)
(170)
(194)
$
682
1,981
322
316
175
(199)
2,595
(186)
(236)
(407)
(380)
(23)
(203)
(48)
$
1,112
(a) Effective at the beginning of the first quarter of fiscal 2016, HPE implemented organizational changes to align its segment
financial reporting more closely with its current business structure. These organizational changes resulted in: (i) within the
Enterprise Group segment, the consolidation of the Industry Standard Servers and Business Critical Systems business units into
the newly formed Servers business unit; and (ii) the transfer of certain Cloud-related marketing headcount activities from the
Corporate Investment segment to the Enterprise Group segment. HPE reflected these changes to its segment information
retrospectively to the earliest period presented, which resulted in: (i) the consolidation of net revenue from the Industry Standard
Servers and Business Critical Systems business units into the Servers business unit within the Enterprise Group segment; and (ii)
the transfer of operating expenses from the Corporate Investment segment to the Enterprise Group segment. These changes had
no impact on HPE’s previously reported consolidated and combined net revenue, earnings from operations, net earnings or net
earnings per share.
HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES
SEGMENT/BUSINESS UNIT INFORMATION
(Unaudited)
(In millions, except percentages)
April 30,
2016
Three months ended
January 31,
April 30,
2016
2015
Change (%)
Q/Q
Y/Y
Net revenue: (a)
Enterprise Group
Servers
Technology Services
Networking
Storage
Total Enterprise Group
$
Enterprise Services
Infrastructure Technology Outsourcing
Application and Business Services
Total Enterprise Services
3,561
1,823
874
752
7,010
$
3,568
1,810
863
810
7,051
$
3,332
1,932
556
740
6,560
(0)%
1%
1%
(7)%
(1)%
7%
(6)%
57%
2%
7%
2,839
1,884
4,723
2,874
1,814
4,688
2,871
1,946
4,817
(1)%
4%
1%
(1)%
(3)%
(2)%
Software
774
780
892
(1)%
(13)%
Financial Services
788
776
805
2%
(2)%
2
13,297
1
13,296
1
13,075
100%
0%
100%
2%
2%
11%
(0)%
1%
Corporate Investments
Total segment net revenue
Elimination of intersegment net revenue and other
Total Hewlett Packard Enterprise consolidated and
combined net revenue
(586)
$
12,711
(572)
$
12,724
(526)
$
12,549
(a) Effective at the beginning of the first quarter of fiscal 2016, HPE implemented organizational changes to align its segment
financial reporting more closely with its current business structure. These organizational changes resulted in: (i) within the
Enterprise Group segment, the consolidation of the Industry Standard Servers and Business Critical Systems business units into
the newly formed Servers business unit; and (ii) the transfer of certain Cloud-related marketing headcount activities from the
Corporate Investment segment to the Enterprise Group segment. HPE reflected these changes to its segment information
retrospectively to the earliest period presented, which resulted in: (i) the consolidation of net revenue from the Industry Standard
Servers and Business Critical Systems business units into the Servers business unit within the Enterprise Group segment; and
(ii) the transfer of operating expenses from the Corporate Investment segment to the Enterprise Group segment. These changes
had no impact on HPE’s previously reported consolidated and combined net revenue, earnings from operations, net earnings or
net earnings per share.
HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES
SEGMENT/BUSINESS UNIT INFORMATION
(Unaudited)
(In millions, except percentages)
Six months ended April 30,
2016
2015
Change (%)
Y/Y
Net revenue: (a)
Enterprise Group
Servers
Technology Services
Networking
Storage
Total Enterprise Group
$
7,129
3,633
1,737
1,562
14,061
$
6,927
3,920
1,118
1,577
13,542
3%
(7)%
55%
(1)%
4%
Enterprise Services
Infrastructure Technology Outsourcing
Application and Business Services
Total Enterprise Services
5,713
3,698
9,411
6,003
3,807
9,810
(5)%
(3)%
(4)%
Software
1,554
1,762
(12)%
Financial Services
1,564
1,608
(3)%
3
26,593
5
26,727
(40)%
(1)%
(1,158)
(1,125)
Corporate Investments
Total segment net revenue
Elimination of intersegment net revenue and other
Total Hewlett Packard Enterprise consolidated and combined net
revenue
$
25,435
$
25,602
3%
(1)%
(a) Effective at the beginning of the first quarter of fiscal 2016, HPE implemented organizational changes to align its segment
financial reporting more closely with its current business structure. These organizational changes resulted in: (i) within the
Enterprise Group segment, the consolidation of the Industry Standard Servers and Business Critical Systems business units into
the newly formed Servers business unit; and (ii) the transfer of certain Cloud-related marketing headcount activities from the
Corporate Investment segment to the Enterprise Group segment. HPE reflected these changes to its segment information
retrospectively to the earliest period presented, which resulted in: (i) the consolidation of net revenue from the Industry Standard
Servers and Business Critical Systems business units into the Servers business unit within the Enterprise Group segment; and
(ii) the transfer of operating expenses from the Corporate Investment segment to the Enterprise Group segment. These changes
had no impact on HPE’s previously reported consolidated and combined net revenue, earnings from operations, net earnings or
net earnings per share.
HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES
SEGMENT OPERATING MARGIN SUMMARY DATA
(Unaudited)
Three months ended
April 30, 2016
Segment operating margin: (a)
Enterprise Group
Enterprise Services
Software
Financial Services
Corporate Investments (b)
Total segment operating margin
11.7%
6.7%
24.8%
9.3%
NM
9.9%
Change in Operating Margin (pts)
Q/Q
Y/Y
(1.7) pts
1.6 pts
7.4 pts
(3.6) pts
NM
0.0 pts
(2.4) pts
3.1 pts
7.0 pts
(1.3) pts
NM
0.5 pts
(a) Effective at the beginning of the first quarter of fiscal 2016, HPE implemented organizational changes to align its segment
financial reporting more closely with its current business structure. These organizational changes resulted in: (i) within the
Enterprise Group segment, the consolidation of the Industry Standard Servers and Business Critical Systems business units into
the newly formed Servers business unit; and (ii) the transfer of certain Cloud-related marketing headcount activities from the
Corporate Investment segment to the Enterprise Group segment. HPE reflected these changes to its segment information
retrospectively to the earliest period presented, which resulted in: (i) the consolidation of net revenue from the Industry Standard
Servers and Business Critical Systems business units into the Servers business unit within the Enterprise Group segment; and
(ii) the transfer of operating expenses from the Corporate Investment segment to the Enterprise Group segment. These changes
had no impact on HPE’s previously reported consolidated and combined net revenue, earnings from operations, net earnings or
net earnings per share.
(b) “NM” represents not meaningful.
HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES
CALCULATION OF DILUTED NET EARNINGS PER SHARE
(Unaudited)
(In millions, except per share amounts)
April 30,
2016
Numerator:
GAAP net earnings
Non-GAAP net earnings
$
$
Denominator: (a)
Weighted-average shares used to compute basic net earnings per share (b)
Dilutive effect of employee stock plans (c)(d)
Weighted-average shares used to compute diluted net earnings per share
GAAP diluted net earnings per share
Non-GAAP diluted net earnings per share
Three months ended
January 31,
2016
320
731
$
$
1,725
26
1,751
$
$
0.18
0.42
267
731
April 30,
2015
$
$
1,761
17
1,778
$
$
0.15
0.41
305
805
1,804
30
1,834
$
$
0.16
0.44
(a) On November 1, 2015, HP Inc. (formerly Hewlett-Packard Company) distributed a total of 1.8 billion shares of Hewlett Packard
Enterprise common stock to HP Inc. stockholders as of the record date. For comparative purposes, the same number of shares
used to compute diluted net earnings per share for the three months ended October 31, 2015 is used for the calculation of basic
and diluted net EPS for all periods in fiscal 2015.
(b) For all periods in fiscal 2015, the number of shares outstanding is the number of Hewlett-Packard Company shares outstanding at
October 31, 2015.
(c) Includes any dilutive effect of restricted stock awards, stock options and performance-based awards.
(d) For all periods in fiscal 2015, the Company calculates the weighted-average dilutive effect of employee stock plans after
conversion, by multiplying the fiscal 2015 dilutive Hewlett-Packard Company stock-based awards attributable to Hewlett Packard
Enterprise employees by the price conversion ratio used to convert those awards to equivalent units of Hewlett Packard Enterprise
awards on the separation date. The price conversion ratio was calculated using the closing price of Hewlett-Packard Company
common shares on October 31, 2015 divided by the opening price of Hewlett Packard Enterprise common shares on November 2,
2015.
HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES
CALCULATION OF DILUTED NET EARNINGS PER SHARE
(Unaudited)
(In millions, except per share amounts)
Six months ended April 30,
2016
2015
Numerator:
GAAP net earnings
Non-GAAP net earnings
$
$
Denominator: (a)
Weighted-average shares used to compute basic net earnings per share (b)
Dilutive effect of employee stock plans (c)(d)
Weighted-average shares used to compute diluted net earnings per share
GAAP diluted net earnings per share
Non-GAAP diluted net earnings per share
587
1,462
$
$
1,743
22
1,765
$
$
0.33
0.83
852
1,664
1,804
30
1,834
$
$
0.46
0.91
(a) On November 1, 2015, HP Inc. (formerly Hewlett-Packard Company) distributed a total of 1.8 billion shares of Hewlett Packard
Enterprise common stock to HP Inc. stockholders as of the record date. For comparative purposes, the same number of shares
used to compute diluted net earnings per share for the three months ended October 31, 2015 is used for the calculation of basic
and diluted net EPS for all periods in fiscal 2015.
(b) For all periods in fiscal 2015, the number of shares outstanding is the number of Hewlett-Packard Company shares outstanding at
October 31, 2015.
(c) Includes any dilutive effect of restricted stock awards, stock options and performance-based awards.
(d) For all periods in fiscal 2015, the Company calculates the weighted-average dilutive effect of employee stock plans after
conversion, by multiplying the fiscal 2015 dilutive Hewlett-Packard Company stock-based awards attributable to Hewlett Packard
Enterprise employees by the price conversion ratio used to convert those awards to equivalent units of Hewlett Packard Enterprise
awards on the separation date. The price conversion ratio was calculated using the closing price of Hewlett-Packard Company
common shares on October 31, 2015 divided by the opening price of Hewlett Packard Enterprise common shares on November 2,
2015.