DELL TECHNOLOGIES INC. | |||||||||||||||
Segment Information | |||||||||||||||
(in millions, except percentages; unaudited) | |||||||||||||||
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| Three Months Ended |
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| Nine Months Ended |
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| November 2, 2018 |
| November 3, 2017 |
| Change |
| November 2, 2018 |
| November 3, 2017 |
| Change | ||||
Infrastructure Solutions Group (ISG): |
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Net Revenue: |
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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 % |
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Operating Income: |
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ISG operating income | $ | 935 |
| $ | 870 |
| 7 % |
| $ | 2,886 |
| $ | 2,023 |
| 43 % |
% of ISG net revenue | 10 % |
| 12 % |
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| 11 % |
| 9 % |
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% of total segment operating income | 43 % |
| 41 % |
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| 45 % |
| 37 % |
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Client Solutions Group (CSG): |
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Net Revenue: |
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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 % |
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Operating Income: |
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CSG operating income | $ | 447 |
| $ | 630 |
| (29)% |
| $ | 1,405 |
| $ | 1,483 |
| (5)% |
% of CSG net revenue | 4 % |
| 6 % |
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| 4 % |
| 5 % |
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% of total segment operating income | 21 % |
| 29 % |
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| 22 % |
| 27 % |
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VMware: |
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Net Revenue: |
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Total VMware net revenue | $ | 2,229 |
| $ | 1,933 |
| 15 % |
| $ | 6,451 |
| $ | 5,735 |
| 12 % |
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Operating Income: |
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VMware operating income | $ | 768 |
| $ | 634 |
| 21 % |
| $ | 2,117 |
| $ | 1,973 |
| 7 % |
% of VMware net revenue | 34 % |
| 33 % |
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| 33 % |
| 34 % |
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% of total segment operating income | 36 % |
| 30 % |
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| 33 % |
| 36 % |
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Reconciliation to consolidated net revenue: |
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Reportable segment net revenue | $ | 22,071 |
| $ | 19,297 |
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| $ | 65,586 |
| $ | 56,441 |
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Other businesses (a) | 583 |
| 557 |
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| 1,736 |
| 1,629 |
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Unallocated transactions (b) | (3) |
| (3) |
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| (6) |
| (8) |
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Impact of purchase accounting (c) | (169) |
| (295) |
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| (536) |
| (985) |
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Total net revenue | $ | 22,482 |
| $ | 19,556 |
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| $ | 66,780 |
| $ | 57,077 |
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Reconciliation to consolidated operating income (loss): |
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Reportable segment operating income | $ | 2,150 |
| $ | 2,134 |
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| $ | 6,408 |
| $ | 5,479 |
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Other businesses (a) | (40) |
| (19) |
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| (139) |
| (71) |
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Unallocated transactions (b) | (46) |
| (6) |
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| (71) |
| (8) |
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Impact of purchase accounting (c) | (193) |
| (366) |
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| (630) |
| (1,195) |
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Amortization of intangibles | (1,546) |
| (1,734) |
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| (4,594) |
| (5,250) |
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Transaction-related expenses (d) | (167) |
| (86) |
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| (437) |
| (415) |
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Other corporate expenses (e) | (514) |
| (333) |
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| (1,059) |
| (887) |
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Total operating loss | $ | (356) |
| $ | (410) |
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| $ | (522) |
| $ | (2,347) |
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_________________ |
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(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. |