DELL TECHNOLOGIES INC.

Reconciliation of Selected Non-GAAP Financial Measures

(in millions, except percentages; unaudited; continued)

Three Months Ended

May 1, 2020

May 3, 2019

Change

Net income

$

182

$

329

(45)

%

Non-GAAP adjustments:

Amortization of intangibles

855

1,217

Impact of purchase accounting

63

101

Transaction-related expenses

(44)

42

Stock-based compensation expense

370

263

Other corporate expenses

95

23

Fair value adjustments on equity investments

(94)

(62)

Aggregate adjustment for income taxes

(284)

(704)

Non-GAAP net income

$

1,143

$

1,209

(5)

%

Net income

$

182

$

329

(45)

%

Adjustments:

Interest and other, net

566

693

Income tax benefit

(46)

(472)

Depreciation and amortization

1,316

1,616

EBITDA

$

2,018

$

2,166

(7)

%

EBITDA

$

2,018

$

2,166

(7)

%

Adjustments:

Stock-based compensation expense

370

263

Impact of purchase accounting

48

83

Transaction-related expenses

76

42

Other corporate expenses

95

19

Adjusted EBITDA

$

2,607

$

2,573

1

%