DELL TECHNOLOGIES INC. | |||||||||||||||||||
Reconciliation of Selected Non-GAAP Financial Measures | |||||||||||||||||||
(in millions, except percentages; unaudited; continued on next page) | |||||||||||||||||||
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| Three Months Ended |
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| Six Months Ended |
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| August 2, 2019 |
| August 3, 2018 |
| Change |
| August 2, 2019 |
| August 3, 2018 |
| Change | ||||||||
Net revenue | $ | 23,370 |
| $ | 22,942 |
| 2% |
| $ | 45,278 |
| $ | 44,298 |
| 2% | ||||
Non-GAAP adjustments: |
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Impact of purchase accounting | 84 |
| 180 |
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| 166 |
| 367 |
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Non-GAAP net revenue | $ | 23,454 |
| $ | 23,122 |
| 1% |
| $ | 45,444 |
| $ | 44,665 |
| 2% | ||||
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Gross margin | $ | 7,326 |
| $ | 6,123 |
| 20% |
| $ | 14,123 |
| $ | 12,001 |
| 18% | ||||
Non-GAAP adjustments: |
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Amortization of intangibles | 519 |
| 718 |
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| 1,038 |
| 1,428 |
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Impact of purchase accounting | 85 |
| 185 |
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| 169 |
| 378 |
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Transaction-related expenses | — |
| 21 |
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|
| (5) |
| 137 |
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Stock-based compensation expense | 32 |
| 18 |
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| 58 |
| 34 |
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Other corporate expenses | 24 |
| 1 |
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| 37 |
| 7 |
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Non-GAAP gross margin | $ | 7,986 |
| $ | 7,066 |
| 13% |
| $ | 15,420 |
| $ | 13,985 |
| 10% | ||||
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Operating expenses | $ | 6,807 |
| $ | 6,136 |
| 11% |
| $ | 13,054 |
| $ | 12,167 |
| 7% | ||||
Non-GAAP adjustments: |
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Amortization of intangibles | (541) |
| (808) |
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| (1,239) |
| (1,620) |
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Impact of purchase accounting | (17) |
| (30) |
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| (34) |
| (59) |
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Transaction-related expenses | (47) |
| (83) |
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| (94) |
| (133) |
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Stock-based compensation expense | (269) |
| (198) |
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| (506) |
| (381) |
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Other corporate expenses | (690) |
| (59) |
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| (700) |
| (123) |
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Non-GAAP operating expenses | $ | 5,243 |
| $ | 4,958 |
| 6% |
| $ | 10,481 |
| $ | 9,851 |
| 6% | ||||
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Operating income (loss) | $ | 519 |
| $ | (13) |
| NM |
| $ | 1,069 |
| $ | (166) |
| 744% | ||||
Non-GAAP adjustments: |
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Amortization of intangibles | 1,060 |
| 1,526 |
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| 2,277 |
| 3,048 |
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Impact of purchase accounting | 102 |
| 215 |
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| 203 |
| 437 |
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Transaction-related expenses | 47 |
| 104 |
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| 89 |
| 270 |
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Stock-based compensation expense | 301 |
| 216 |
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| 564 |
| 415 |
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Other corporate expenses | 714 |
| 60 |
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| 737 |
| 130 |
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Non-GAAP operating income | $ | 2,743 |
| $ | 2,108 |
| 30% |
| $ | 4,939 |
| $ | 4,134 |
| 19% |