Name: Hewlett Packard Enterprise Co. (NYSE:HPE) | Statement of Comprehensive Income
Creator: Stock Analysis on Net

Statement of Comprehensive Income

Comprehensive income is the change in equity (net assets) of a business enterprise during a period from transactions and other events and circumstances from non-owners sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners.

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Hewlett Packard Enterprise Co., consolidated statement of comprehensive income

US$ in millions

12 months ended:	Oct 31, 2023	Oct 31, 2022	Oct 31, 2021	Oct 31, 2020	Oct 31, 2019	Oct 31, 2018
Net earnings (loss)	2,036)	873)	3,436)	(311)	1,065)	1,904)
Net unrealized gains (losses) arising during the period	1)	(16)	(3)	(1)	9)	(3)
Net (gains) losses reclassified into earnings	—)	—)	—)	(4)	(3)	(9)
Change in net unrealized gains (losses) on available-for-sale securities	1)	(16)	(3)	(5)	6)	(12)
Net unrealized gains (losses) arising during the period	(177)	1,025)	(50)	(40)	308)	169)
Net (gains) losses reclassified into earnings	116)	(978)	156)	(21)	(371)	8)
Change in net unrealized gains (losses) on cash flow hedges	(61)	47)	106)	(61)	(63)	177)
Net unrealized gains (losses) arising during the period	(99)	(315)	763)	(358)	(701)	(423)
Amortization of net actuarial loss and prior service benefit	144)	155)	281)	249)	216)	191)
Curtailments, settlements and other	3)	5)	4)	10)	15)	22)
Change in unrealized components of defined benefit plans	48)	(155)	1,048)	(99)	(470)	(210)
Cumulative translation adjustment arising during the period	(32)	(146)	16)	(12)	(18)	(70)
Release of cumulative translation adjustment as a result of divestitures and country exits	—)	—)	—)	—)	—)	20)
Change in cumulative translation adjustment	(32)	(146)	16)	(12)	(18)	(50)
Other comprehensive income (loss) before taxes	(44)	(270)	1,167)	(177)	(545)	(95)
(Provision) benefit for taxes	58)	87)	(143)	8)	36)	(42)
Other comprehensive income (loss), net of taxes	14)	(183)	1,024)	(169)	(509)	(137)
Comprehensive income (loss)	2,050)	690)	4,460)	(480)	556)	1,767)
Comprehensive (income) loss attributable to non-controlling interests	(11)	(5)	(9)	(11)	(16)	4)
Comprehensive income (loss) attributable to HPE	2,039)	685)	4,451)	(491)	540)	1,771)

Based on: 10-K (reporting date: 2023-10-31), 10-K (reporting date: 2022-10-31), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-10-31), 10-K (reporting date: 2019-10-31), 10-K (reporting date: 2018-10-31).

The financial performance from 2018 to 2023 is characterized by significant volatility in both net earnings and comprehensive income. Net earnings experienced a downward trajectory from 2018, culminating in a net loss in 2020, before rebounding sharply to a peak in 2021. This was followed by a contraction in 2022 and a subsequent recovery in 2023, suggesting a period of instability in core profitability.

Earnings and Comprehensive Income Trends: Net earnings fluctuated from US$ 1,904 million in 2018 to a low of negative US$ 311 million in 2020, reaching a high of US$ 3,436 million in 2021. Comprehensive income attributable to the company mirrored this volatility, peaking at US$ 4,451 million in 2021 and ending the period at US$ 2,039 million in 2023. The variance between net earnings and comprehensive income indicates that non-operating items have played a substantial role in total equity fluctuations.
Analysis of Other Comprehensive Income (OCI) Drivers: Other comprehensive income, net of taxes, remained predominantly negative for most of the period, with the notable exception of 2021, where it reached US$ 1,024 million. A primary catalyst for this volatility was the change in unrealized components of defined benefit plans, which recorded a significant gain of US$ 1,048 million in 2021 after reporting heavy losses in 2019 and 2020.
Currency and Hedge Impact: Cumulative translation adjustments have generally exerted negative pressure on comprehensive income, with a particularly sharp decline of US$ 146 million in 2022. Cash flow hedges showed inconsistent results, alternating between gains and losses, which contributed to the overall instability of the other comprehensive income components.
Taxation Effects on Comprehensive Income: The provision or benefit for taxes associated with other comprehensive income fluctuated in alignment with the underlying gains and losses. A significant tax provision of US$ 143 million was recorded in 2021, coinciding with the peak in unrealized gains, while tax benefits were observed in 2022 and 2023 as OCI performance shifted.

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