DELL TECHNOLOGIES INC.

Reconciliation of Selected Non-GAAP Financial Measures

For the Three Months Ended May 3, 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

$

329

1,217

101

42

263

23

(62)

(704)

$

1,209

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

36

72

6

3

46

—

(25)

(29)

109

Net income attributable to Dell Technologies Inc. - basic

293

1,145

95

39

217

23

(37)

(675)

1,100

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

(8)

(8)

Net income attributable to Dell Technologies Inc. - diluted

$

285

$

1,092

Earnings per share - basic

$

0.41

$

1.53

Earnings per share - diluted

$

0.38

$

1.45

Weighted-average shares outstanding - basic

717

717

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.