DELL TECHNOLOGIES INC.

Reconciliation of Selected Non-GAAP Financial Measures

For the Three Months Ended August 2, 2019

(in millions, except per share amounts; unaudited)

GAAP

Amortization of
intangibles

Impact of
purchase
accounting

Transaction-
related
expenses

Stock-based
compensation
expense

Other
corporate
expenses

Fair value
adjustments
on equity
investments

Aggregate
adjustment
for income
taxes

Non-GAAP

Net income

$

4,505

1,060

102

47

301

714

(80)

(4,898)

$

1,751

Less: Net income attributable to non-controlling interests (a)

816

71

6

2

51

—

100

(915)

131

Net income attributable to Dell Technologies Inc. - basic

3,689

989

96

45

250

714

(180)

(3,983)

1,620

Incremental dilution from VMware, Inc. attributable to Dell Technologies Inc. (b)

(62)

(9)

Net income attributable to Dell Technologies Inc. - diluted

$

3,627

$

1,611

Earnings per share - basic

$

5.13

$

2.25

Earnings per share - diluted

$

4.83

$

2.15

Weighted-average shares outstanding - basic

719

719

Weighted-average shares outstanding - diluted

751

751

_________________

(a)

Net income attributable to non-controlling interests is calculated by multiplying the minority interest percentage of VMware, Inc., Pivotal Software, Inc., and SecureWorks Corp. by their non-GAAP net income adjustments for the period presented.

(b)  

Incremental dilution from VMware, Inc. attributable to Dell Technologies Inc. represents the impact of VMware, Inc.'s dilutive securities on the diluted earnings per share of Dell Technologies Inc. and is calculated by multiplying the difference between VMware's basic and diluted earnings per share by the number of shares of VMware, Inc. common stock held by Dell Technologies Inc.