DELL TECHNOLOGIES INC. | |||||||||||
Reconciliation of Selected Non-GAAP Financial Measures | |||||||||||
(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 |
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Net revenue | $ 22,482 |
| $ 19,556 |
| 15 % |
| $ 66,780 |
| $ 57,077 |
| 17 % |
Non-GAAP adjustments: |
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Impact of purchase accounting | 169 |
| 295 |
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| 536 |
| 985 |
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Non-GAAP net revenue | $ 22,651 |
| $ 19,851 |
| 14 % |
| $ 67,316 |
| $ 58,062 |
| 16 % |
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Gross margin | $ 5,943 |
| $ 5,220 |
| 14 % |
| $ 17,944 |
| $ 14,645 |
| 23 % |
Non-GAAP adjustments: |
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Amortization of intangibles | 726 |
| 914 |
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| 2,154 |
| 2,784 |
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Impact of purchase accounting | 171 |
| 307 |
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| 549 |
| 1,020 |
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Transaction-related expenses | 102 |
| 5 |
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| 239 |
| 22 |
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Other corporate expenses | 58 |
| 28 |
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| 99 |
| 63 |
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Non-GAAP gross margin | $ 7,000 |
| $ 6,474 |
| 8 % |
| $ 20,985 |
| $ 18,534 |
| 13 % |
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Operating expenses | $ 6,299 |
| $ 5,630 |
| 12 % |
| $ 18,466 |
| $ 16,992 |
| 9 % |
Non-GAAP adjustments: |
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Amortization of intangibles | (820) |
| (820) |
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| (2,440) |
| (2,466) |
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Impact of purchase accounting | (22) |
| (59) |
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| (81) |
| (175) |
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Transaction-related expenses | (65) |
| (81) |
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| (198) |
| (393) |
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Other corporate expenses | (456) |
| (305) |
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| (960) |
| (824) |
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Non-GAAP operating expenses | $ 4,936 |
| $ 4,365 |
| 13 % |
| $ 14,787 |
| $ 13,134 |
| 13 % |
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Operating loss | $ (356) |
| $ (410) |
| 13 % |
| $ (522) |
| $ (2,347) |
| 78 % |
Non-GAAP adjustments: |
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Amortization of intangibles | 1,546 |
| 1,734 |
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| 4,594 |
| 5,250 |
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Impact of purchase accounting | 193 |
| 366 |
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| 630 |
| 1,195 |
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Transaction-related expenses | 167 |
| 86 |
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| 437 |
| 415 |
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Other corporate expenses | 514 |
| 333 |
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| 1,059 |
| 887 |
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Non-GAAP operating income | $ 2,064 |
| $ 2,109 |
| (2)% |
| $ 6,198 |
| $ 5,400 |
| 15 % |
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Net loss | $ (895) |
| $ (851) |
| (5)% |
| $ (1,894) |
| $ (2,793) |
| 32 % |
Non-GAAP adjustments: |
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Amortization of intangibles | 1,546 |
| 1,734 |
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| 4,594 |
| 5,250 |
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Impact of purchase accounting | 193 |
| 366 |
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| 630 |
| 1,195 |
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Transaction-related expenses | 167 |
| 86 |
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| 437 |
| 415 |
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Other corporate expenses | 514 |
| 333 |
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| 1,059 |
| 887 |
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Aggregate adjustment for income taxes | (325) |
| (469) |
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| (1,103) |
| (1,882) |
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Non-GAAP net income | $ 1,200 |
| $ 1,199 |
| 0 % |
| $ 3,723 |
| $ 3,072 |
| 21 % |
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Net loss | $ (895) |
| $ (851) |
| (5)% |
| $ (1,894) |
| $ (2,793) |
| 32 % |
Adjustments: |
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Interest and other, net | 639 |
| 682 |
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| 1,564 |
| 1,799 |
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Income tax benefit | (100) |
| (241) |
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| (192) |
| (1,353) |
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Depreciation and amortization | 1,961 |
| 2,137 |
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| 5,806 |
| 6,491 |
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EBITDA | $ 1,605 |
| $ 1,727 |
| (7)% |
| $ 5,284 |
| $ 4,144 |
| 28 % |
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EBITDA | $ 1,605 |
| $ 1,727 |
| (7)% |
| $ 5,284 |
| $ 4,144 |
| 28 % |
Adjustments: |
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Stock-based compensation expense | 256 |
| 221 |
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| 671 |
| 630 |
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Impact of purchase accounting | 169 |
| 298 |
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| 536 |
| 990 |
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Transaction-related expenses | 158 |
| 86 |
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| 409 |
| 415 |
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Other corporate expenses | 238 |
| 109 |
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| 368 |
| 237 |
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Adjusted EBITDA | $ 2,426 |
| $ 2,441 |
| (1)% |
| $ 7,268 |
| $ 6,416 |
| 13 % |