DELL TECHNOLOGIES INC.

Segment Information

(in millions, except percentages; unaudited)

Three Months Ended

Nine Months Ended

November 2, 2018

November 3, 2017

Change

November 2, 2018

November 3, 2017

Change

Infrastructure Solutions Group (ISG):

  Net Revenue:

   Servers and networking

$

5,054

$

3,875

30 %

$

14,700

$

10,908

35 %

   Storage

3,883

3,660

6 %

12,131

11,055

10 %

   Total ISG net revenue

$

8,937

$

7,535

19 %

$

26,831

$

21,963

22 %

   Operating Income:

   ISG operating income

$

935

$

870

7 %

$

2,886

$

2,023

43 %

   % of ISG net revenue

10 %

12 %

11 %

9 %

   % of total segment operating income

43 %

41 %

45 %

37 %

Client Solutions Group (CSG):

   Net Revenue:

   Commercial

$

7,613

$

6,778

12 %

$

23,085

$

20,327

14 %

   Consumer

3,292

3,051

8 %

9,219

8,416

10 %

   Total CSG net revenue

$

10,905

$

9,829

11 %

$

32,304

$

28,743

12 %

   Operating Income:

   CSG operating income

$

447

$

630

(29)%

$

1,405

$

1,483

(5)%

   % of CSG net revenue

4 %

6 %

4 %

5 %

   % of total segment operating income

21 %

29 %

22 %

27 %

VMware:

   Net Revenue:

Total VMware net revenue

$

2,229

$

1,933

15 %

$

6,451

$

5,735

12 %

   Operating Income:

   VMware operating income

$

768

$

634

21 %

$

2,117

$

1,973

7 %

   % of VMware net revenue

34 %

33 %

33 %

34 %

   % of total segment operating income

36 %

30 %

33 %

36 %

Reconciliation to consolidated net revenue:

   Reportable segment net revenue

$

22,071

$

19,297

$

65,586

$

56,441

   Other businesses (a)

583

557

1,736

1,629

   Unallocated transactions (b)

(3)

(3)

(6)

(8)

   Impact of purchase accounting (c)

(169)

(295)

(536)

(985)

   Total net revenue

$

22,482

$

19,556

$

66,780

$

57,077

Reconciliation to consolidated operating income (loss):

   Reportable segment operating income

$

2,150

$

2,134

$

6,408

$

5,479

   Other businesses (a)

(40)

(19)

(139)

(71)

   Unallocated transactions (b)

(46)

(6)

(71)

(8)

   Impact of purchase accounting (c)

(193)

(366)

(630)

(1,195)

   Amortization of intangibles

(1,546)

(1,734)

(4,594)

(5,250)

   Transaction-related expenses (d)

(167)

(86)

(437)

(415)

   Other corporate expenses (e)

(514)

(333)

(1,059)

(887)

   Total operating loss

$

(356)

$

(410)

$

(522)

$

(2,347)

_________________

(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, facility action costs, goodwill impairment charges, and stock-based compensation expense.