DELL TECHNOLOGIES INC.

Reconciliation of Selected Non-GAAP Financial Measures

(in millions, except percentages; unaudited; continued)

Three Months Ended

Six Months Ended

July 31, 2020

August 2, 2019

Change

July 31, 2020

August 2, 2019

Change

Net income

$

1,099

$

4,232

(74)%

$

1,281

$

4,561

(72)%

Non-GAAP adjustments:

  Amortization of intangibles

847

1,060

1,702

2,277

  Impact of purchase accounting

53

102

116

203

  Transaction-related expenses

83

47

39

89

  Stock-based compensation expense

413

301

783

564

  Other corporate expenses

86

714

181

737

  Fair value adjustments on equity investments

(8)

(80)

(102)

(142)

  Aggregate adjustment for income taxes

(952)

(4,625)

(1,236)

(5,329)

  Non-GAAP net income

$

1,621

$

1,751

(7)%

$

2,764

$

2,960

(7)%

Net income

$

1,099

$

4,232

(74)%

$

1,281

$

4,561

(72)%

Adjustments:

  Interest and other, net

636

630

1,202

1,323

  Income tax benefit

(599)

(4,343)

(645)

(4,815)

  Depreciation and amortization

1,340

1,498

2,656

3,114

  EBITDA

$

2,476

$

2,017

23%

$

4,494

$

4,183

7%

EBITDA

$

2,476

$

2,017

23%

$

4,494

$

4,183

7%

Adjustments:

  Stock-based compensation expense

413

301

783

564

  Impact of purchase accounting

42

84

90

167

  Transaction-related expenses

83

47

159

89

  Other corporate expenses

86

707

181

726

  Adjusted EBITDA

$

3,100

$

3,156

(2)%

$

5,707

$

5,729

—%