DELL TECHNOLOGIES INC.

Segment Information

(in millions, except percentages; unaudited)

Three Months Ended

Six Months Ended

August 3, 2018

August 4, 2017

Change

August 3, 2018

August 4, 2017

Change

Infrastructure Solutions Group (ISG):

Net Revenue:

Servers and networking

$

5,061

$

3,777

34 %

$

9,646

$

7,033

37 %

Storage

4,166

3,690

13 %

8,248

7,395

12 %

Total ISG net revenue

$

9,227

$

7,467

24 %

$

17,894

$

14,428

24 %

Operating Income:

ISG operating income

$

1,012

$

647

56 %

$

1,951

$

1,153

69 %

% of ISG net revenue

11 %

9 %

11 %

8 %

% of total segment operating income

47 %

34 %

46 %

34 %

Client Solutions Group (CSG):

Net Revenue:

Commercial

$

8,109

$

7,207

13 %

$

15,472

$

13,549

14 %

Consumer

3,019

2,659

14 %

5,927

5,365

10 %

Total CSG net revenue

$

11,128

$

9,866

13 %

$

21,399

$

18,914

13 %

Operating Income:

CSG operating income

$

425

$

528

(20)%

$

958

$

853

12 %

% of CSG net revenue

4 %

5 %

4 %

5 %

% of total segment operating income

20 %

28 %

22 %

26 %

VMware:

Net Revenue:

Total VMware net revenue

$

2,194

$

1,984

11 %

$

4,222

$

3,802

11 %

Operating Income:

VMware operating income

$

736

$

728

1 %

$

1,349

$

1,339

1 %

% of VMware net revenue

34 %

37 %

32 %

35 %

% of total segment operating income

34 %

38 %

32 %

40 %

Reconciliation to consolidated net revenue:

Reportable segment net revenue

$

22,549

$

19,317

$

43,515

$

37,144

Other businesses (a)

574

543

1,153

1,072

Unallocated transactions (b)

(1)

(4)

(3)

(5)

Impact of purchase accounting (c)

(180)

(335)

(367)

(690)

Total net revenue

$

22,942

$

19,521

$

44,298

$

37,521

Reconciliation to consolidated operating income (loss):

Reportable segment operating income

$

2,173

$

1,903

$

4,258

$

3,345

Other businesses (a)

(49)

(29)

(99)

(52)

Unallocated transactions (b)

(16)

(8)

(25)

(2)

Impact of purchase accounting (c)

(215)

(406)

(437)

(829)

Amortization of intangibles

(1,526)

(1,740)

(3,048)

(3,516)

Transaction-related expenses (d)

(104)

(138)

(270)

(329)

Other corporate expenses (e)

(276)

(247)

(545)

(554)

Total operating loss

$

(13)

$

(665)

$

(166)

$

(1,937)

_________________

(a) Pivotal, SecureWorks, RSA Security, Virtustream, and Boomi constitute "Other businesses" and do not meet the requirements for a reportable segment, either individually or
collectively.  The results of Other businesses are not material to the Company's overall results.

(b) Unallocated transactions includes long-term incentives, certain short-term incentive compensation expenses, and other corporate items that are not allocated to Dell Technologies'
reportable segments.

(c) Impact of purchase accounting includes non-cash purchase accounting adjustments that are primarily related to the EMC merger transaction.

(d) Transaction-related expenses includes acquisition, integration, and divestiture related costs.

(e) Other corporate expenses includes severance and facility action costs as well as stock-based compensation expense.