DELL TECHNOLOGIES INC. | |||||||||||||||
Segment Information | |||||||||||||||
(in millions, except percentages; unaudited; continued) | |||||||||||||||
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| Three Months Ended |
| Six Months Ended | ||||||||||||
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| July 31, 2020 |
| August 2, 2019 |
| July 31, 2020 |
| August 2, 2019 | ||||||||
Reconciliation to consolidated net revenue: |
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Reportable segment net revenue (a) | $ | 22,318 |
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| $ | 23,020 |
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| $ | 43,746 |
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| $ | 44,589 |
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Other businesses (a) (b) | 457 |
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| 434 |
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| 974 |
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| 855 |
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Impact of purchase accounting (d) | (42) |
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| (84) |
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| (90) |
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| (166) |
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Total consolidated net revenue | $ | 22,733 |
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| $ | 23,370 |
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| $ | 44,630 |
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| $ | 45,278 |
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Reconciliation to consolidated operating income: |
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Reportable segment operating income (a) | $ | 2,582 |
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| $ | 2,783 |
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| $ | 4,679 |
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| $ | 5,014 |
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Other businesses (a) (b) | 37 |
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| (14) |
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| 102 |
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| (48) |
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Unallocated transactions (c) | (1) |
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| (26) |
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| (2) |
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| (27) |
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Impact of purchase accounting (d) | (53) |
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| (102) |
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| (116) |
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| (203) |
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Amortization of intangibles | (847) |
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| (1,060) |
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| (1,702) |
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| (2,277) |
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Transaction-related expenses (e) | (83) |
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| (47) |
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| (159) |
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| (89) |
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Stock-based compensation expense (f) | (413) |
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| (301) |
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| (783) |
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| (564) |
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| Other corporate expenses (g) | (86) |
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| (714) |
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| (181) |
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| (737) |
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| Total consolidated operating income | $ | 1,136 |
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| $ | 519 |
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| $ | 1,838 |
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| $ | 1,069 |
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| (a) | During Fiscal 2020, the Company reclassified Pivotal operating results from Other businesses to the VMware reportable segment. Prior period results have been recast to conform with current period presentation. | |||||||
| (b) | 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. | |||||||
| (c) | Unallocated transactions includes other corporate items that are not allocated to Dell Technologies' reportable segments. | |||||||
| (d) | Impact of purchase accounting includes non-cash purchase accounting adjustments that are primarily related to the EMC merger transaction. | |||||||
| (e) | Transaction-related expenses includes acquisition, integration, and divestiture related costs. | |||||||
| (f) | Stock-based compensation expense consists of equity awards granted based on the estimated fair value of those awards at grant date. | |||||||
| (g) | Other corporate expenses includes impairment charges, severance, facility action, and other costs. | |||||||
SUPPLEMENTAL SELECTED NON-GAAP FINANCIAL MEASURES
