DELL TECHNOLOGIES INC.
Reconciliation of Selected Non-GAAP Financial Measures
(in millions, except percentages; unaudited; continued on next page)

Three Months Ended

Nine Months Ended

November 3, 2023

October 28, 2022

Change

November 3, 2023

October 28, 2022

Change

Gross margin

$         5,148

$         5,707

(10) %

$       15,553

$       16,930

(8) %

Non-GAAP adjustments:

Amortization of intangibles

84

106

247

315

Impact of purchase accounting

—

—

—

2

Stock-based compensation expense

37

37

112

112

Other corporate expenses

7

15

64

97

Non-GAAP gross margin

$         5,276

$         5,865

(10) %

$       15,976

$       17,456

(8) %

Operating expenses

$         3,662

$         3,945

(7) %

$       11,833

$       12,348

(4) %

Non-GAAP adjustments:

Amortization of intangibles

(121)

(139)

(366)

(417)

Impact of purchase accounting

(2)

(21)

(10)

(31)

Transaction-related expenses

(3)

(8)

(9)

(16)

Stock-based compensation expense

(190)

(198)

(563)

(591)

Other corporate expenses

(34)

(94)

(448)

(304)

Non-GAAP operating expenses

$         3,312

$         3,485

(5) %

$       10,437

$       10,989

(5) %

Operating income

$         1,486

$         1,762

(16) %

$         3,720

$         4,582

(19) %

Non-GAAP adjustments:

Amortization of intangibles

205

245

613

732

Impact of purchase accounting

2

21

10

33

Transaction-related expenses

3

8

9

16

Stock-based compensation expense

227

235

675

703

Other corporate expenses

41

109

512

401

Non-GAAP operating income

$         1,964

$         2,380

(17) %

$         5,539

$         6,467

(14) %

Net income

$         1,004

$            241

317 %

$         2,037

$         1,816

12 %

Non-GAAP adjustments:

Amortization of intangibles

205

245

613

732

Impact of purchase accounting

2

21

10

33

Transaction-related (income) expenses

(5)

4

54

(2)

Stock-based compensation expense

227

235

675

703

Other corporate expenses

41

1,112

512

1,420

Fair value adjustments on equity investments

(8)

(44)

36

197

Aggregate adjustment for income taxes

(77)

(109)

(302)

(494)

Non-GAAP net income

$         1,389

$         1,705

(19) %

$         3,635

$         4,405

(17) %