(b) Represents the settlement of certain pre-separation Hewlett-Packard Company income tax liabilities indemnified through the Tax Matters Agreement with HP Inc.
(c) Represents the amortization of basis difference adjustments related to the H3C divestiture.
(d) Includes tax amounts in connection with the Everett and Seattle Transactions, tax amounts related to 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.
For the twelve months ended October 31, 2018, the amount includes $2.0 billion benefit in connection with the settlement of certain pre-separation Hewlett-Packard Company income tax liabilities indemnified through the Tax Matters Agreement with HP Inc. Further, as a result of the impact of U.S. Tax Reform, it also includes $2.0 billion tax benefit from the 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 $1.7 billion of transition tax expense on accumulated non U.S. earnings, and a provisional estimate of $687 million of tax expense on valuation allowance on foreign tax credits. In connection with the Everett Transaction, for the twelve months ended October 31, 2018, this amount also includes $208 million benefit primarily from foreign tax credits and from the release of non U.S. valuation allowances on deferred taxes established in connection with the Everett Transaction, following changes in foreign tax laws.
For the twelve months ended October 31, 2017, the amount primarily includes the income tax benefit related to the U.S. foreign tax credits generated as a result of the Everett and Seattle Transactions, partially offset by income tax expense as a result of recording valuation allowance on certain U.S. deferred tax assets.
(e) For the twelve months ended October 31, 2017, this amount primarily includes the income tax benefit related to U.S. foreign tax credits generated as a result of the Everett and Seattle Transactions included in discontinued operations.
HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions, except par value)
|October 31, 2018||October 31, 2017|
|Cash and cash equivalents||$||4,880||$||9,579|
|Assets held for sale||6||14|
|Other current assets||3,280||3,085|
|Total current assets||17,272||21,444|
|Property, plant and equipment||6,138||6,269|
|Long-term financing receivables and other assets||11,359||12,600|
|Investments in equity interests||2,398||2,535|
|Goodwill and intangible assets||18,326||18,558|
|LIABILITIES AND STOCKHOLDERS’ EQUITY|
|Notes payable and short-term borrowings||$||2,005||$||3,850|
|Employee compensation and benefits||1,412||1,156|
|Taxes on earnings||378||429|
|Other accrued liabilities||3,840||3,844|
|Total current liabilities||17,198||18,924|
|Other non-current liabilities||6,885||8,795|
|HPE stockholders’ equity:|
|Preferred stock, $0.01 par value (300 shares authorized; none issued and outstanding at October 31, 2018)||—||—|
|Common stock, $0.01 par value (9,600 shares authorized; 1,423 and 1,595 issued and outstanding at October 31, 2018 and October 31, 2017, respectively)||14||16|
|Additional paid-in capital||30,342||33,583|
|Accumulated other comprehensive loss||(3,218||)||(2,895||)|
|Total HPE stockholders’ equity||21,239||23,466|
|Total stockholders’ equity||21,274||23,505|
|Total liabilities and stockholders’ equity||$||55,493||$||61,406|