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DELL TECHNOLOGIES INC. | |||||||||||
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Reconciliation of Selected Non-GAAP Financial Measures | |||||||||||
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(in millions, except percentages; unaudited) | |||||||||||
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Three Months Ended |
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Fiscal Year Ended |
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February 2, 2018 |
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February 3, 2017 |
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Change |
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February 2, 2018 |
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February 3, 2017 |
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Change |
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Net revenue |
$ 21,935 |
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$ 20,074 |
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9 % |
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$ 78,660 |
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$ 61,642 |
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28 % |
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Non-GAAP adjustments: |
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Impact of purchase accounting |
284 |
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507 |
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1,269 |
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1,180 |
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Non-GAAP net revenue |
$ 22,219 |
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$ 20,581 |
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8 % |
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$ 79,929 |
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$ 62,822 |
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27 % |
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Gross margin |
$ 5,780 |
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$ 4,531 |
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28 % |
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$ 20,054 |
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$ 12,959 |
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55 % |
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Non-GAAP adjustments: |
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Amortization of intangibles |
910 |
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847 |
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3,694 |
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1,653 |
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Impact of purchase accounting |
292 |
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1,110 |
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1,312 |
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2,007 |
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Transaction-related expenses |
2 |
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18 |
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24 |
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43 |
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Other corporate expenses |
38 |
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89 |
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101 |
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157 |
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Non-GAAP gross margin |
$ 7,022 |
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$ 6,595 |
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6 % |
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$ 25,185 |
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$ 16,819 |
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50 % |
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Operating expenses |
$ 6,101 |
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$ 6,199 |
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(2)% |
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$ 23,387 |
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$ 16,211 |
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44 % |
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Non-GAAP adjustments: |
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Amortization of intangibles |
(820) |
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(688) |
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(3,286) |
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(2,028) |
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Impact of purchase accounting |
(59) |
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(130) |
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(234) |
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(287) |
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Transaction-related expenses |
(85) |
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(141) |
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(478) |
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(1,445) |
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Other corporate expenses |
(235) |
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(488) |
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(1,059) |
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(745) |
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Non-GAAP operating expenses |
$ 4,902 |
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$ 4,752 |
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3 % |
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$ 18,330 |
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$ 11,706 |
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57 % |
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Operating loss |
$ (321) |
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$ (1,668) |
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81 % |
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$ (3,333) |
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$ (3,252) |
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(2)% |
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Non-GAAP adjustments: |
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Amortization of intangibles |
1,730 |
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1,535 |
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6,980 |
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3,681 |
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Impact of purchase accounting |
351 |
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1,240 |
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1,546 |
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2,294 |
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Transaction-related expenses |
87 |
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159 |
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502 |
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1,488 |
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Other corporate expenses |
273 |
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577 |
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1,160 |
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902 |
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Non-GAAP operating income |
$ 2,120 |
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$ 1,843 |
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15 % |
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$ 6,855 |
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$ 5,113 |
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34 % |
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Net loss from continuing operations |
$ (553) |
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$ (1,414) |
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61 % |
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$ (3,855) |
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$ (3,737) |
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(3)% |
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Non-GAAP adjustments: |
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Amortization of intangibles |
1,730 |
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1,535 |
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6,980 |
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3,681 |
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Impact of purchase accounting |
351 |
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1,240 |
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1,546 |
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2,294 |
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Transaction-related expenses |
87 |
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159 |
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502 |
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1,485 |
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Other corporate expenses |
273 |
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577 |
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1,160 |
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902 |
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Aggregate adjustment for income taxes |
(791) |
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(1,006) |
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(2,673) |
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(1,938) |
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Non-GAAP net income from continuing operations |
$ 1,097 |
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$ 1,091 |
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1 % |
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$ 3,660 |
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$ 2,687 |
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36 % |
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Net loss from continuing operations |
$ (553) |
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$ (1,414) |
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61 % |
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$ (3,855) |
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$ (3,737) |
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(3)% |
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Adjustments: |
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Interest and other, net |
555 |
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742 |
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2,355 |
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2,104 |
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Income tax benefit |
(323) |
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(996) |
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(1,833) |
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(1,619) |
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Depreciation and amortization |
2,143 |
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2,041 |
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8,634 |
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4,840 |
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EBITDA |
$ 1,822 |
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$ 373 |
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388 % |
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$ 5,301 |
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$ 1,588 |
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234 % |
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EBITDA |
$ 1,822 |
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$ 373 |
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388 % |
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$ 5,301 |
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$ 1,588 |
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234 % |
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Adjustments: |
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Stock-based compensation expense |
205 |
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215 |
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835 |
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392 |
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Impact of purchase accounting |
284 |
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1,075 |
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1,274 |
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1,926 |
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Transaction-related expenses |
87 |
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159 |
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502 |
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1,525 |
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Other corporate expenses |
68 |
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362 |
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305 |
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510 |
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Adjusted EBITDA |
$ 2,466 |
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$ 2,184 |
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13 % |
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$ 8,217 |
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$ 5,941 |
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38 % |
