DELL TECHNOLOGIES INC.

Segment Information

(in millions, except percentages; unaudited)

Three Months Ended

Six Months Ended

August 4, 2017

July 29, 2016

Change

August 4, 2017

July 29, 2016

Change

Client Solutions Group (CSG):

   Net Revenue:

      Commercial

$                 7,196

$                 6,798

6 %

$               13,546

$               12,943

5 %

      Consumer

2,655

2,422

10 %

5,361

4,848

11 %

         Total CSG net revenue

$                 9,851

$                 9,220

7 %

$               18,907

$               17,791

6 %

   Operating Income:

      CSG operating income

$                    566

$                    484

17 %

$                    940

$                    869

8 %

      % of CSG net revenue

6 %

5 %

5 %

5 %

      % of total segment operating income

36 %

62 %

34 %

64 %

Infrastructure Solutions Group (ISG):

   Net Revenue:

      Servers and networking

$                 3,740

$                 3,237

16 %

$                 6,971

$                 6,312

10 %

      Storage

3,666

542

576 %

7,351

1,080

581 %

         Total ISG net revenue

$                 7,406

$                 3,779

96 %

$               14,322

$                 7,392

94 %

   Operating Income:

      ISG operating income

$                    430

$                    300

43 %

$                    753

$                    492

53 %

      % of ISG net revenue

6 %

8 %

5 %

7 %

      % of total segment operating income

28 %

38 %

27 %

36 %

VMware:

   Net Revenue:

         Total VMware net revenue

$                 1,907

$                     —

NA

$                 3,643

$                     —

NA

   Operating Income:

      VMware operating income

$                    561

$                     —

NA

$                 1,047

$                     —

NA

      % of VMware net revenue

29 %

 NA 

29 %

 NA 

      % of total segment operating income

36 %

 NA 

38 %

 NA 

Reconciliation to consolidated net revenue:

   Reportable segment net revenue

$               19,164

$               12,999

$               36,872

$               25,183

      Other businesses (a)

472

118

934

228

      Unallocated transactions (b)

(2)

28

(1)

53

      Impact of purchase accounting (c)

(335)

(65)

(690)

(143)

         Total net revenue

$               19,299

$               13,080

$               37,115

$               25,321

Reconciliation to consolidated operating income (loss):

   Reportable segment operating income

$                 1,557

$                    784

$                 2,740

$                 1,361

      Other businesses (a)

1

(11)

4

(27)

      Unallocated transactions (b)

(6)

(17)

5

(39)

      Impact of purchase accounting (c)

(406)

(98)

(829)

(204)

      Amortization of intangibles

(1,740)

(491)

(3,516)

(982)

      Transaction-related expenses (d)

(138)

(72)

(329)

(129)

      Other corporate expenses(e)

(247)

(28)

(554)

(52)

         Total operating income (loss)

$                  (979)

$                      67

$               (2,479)

$                    (72)

_________________

(a) Other businesses consist of RSA Information Security, SecureWorks, Pivotal, and Boomi, and do not constitute a reportable segment, either individually or collectively, as the results of the businesses are not material to the Company's overall results and the businesses do not meet the criteria for reportable segments.

(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.