DELL TECHNOLOGIES INC. Condensed Consolidated Statements of Income (Loss) and Related Financial Highlights (in millions, except percentages; unaudited) | ||||||||||
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| Three Months Ended |
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| May 1, 2020 |
| May 3, 2019 |
| Change | |||||
Net revenue (a): |
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Products | $ | 16,038 |
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| $ | 16,575 |
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| (3) | % |
Services | 5,859 |
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| 5,333 |
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| 10 | % | ||
Total net revenue | 21,897 |
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| 21,908 |
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| — | % | ||
Cost of net revenue: |
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Products | 12,804 |
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| 13,079 |
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| (2) | % | ||
Services | 2,240 |
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| 2,032 |
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| 10 | % | ||
Total cost of net revenue | 15,044 |
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| 15,111 |
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| — | % | ||
Gross margin | 6,853 |
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| 6,797 |
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| 1 | % | ||
Operating expenses: |
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Selling, general, and administrative | 4,886 |
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| 5,071 |
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| (4) | % | ||
Research and development | 1,265 |
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| 1,176 |
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| 8 | % | ||
Total operating expenses | 6,151 |
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| 6,247 |
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| (2) | % | ||
Operating income | 702 |
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| 550 |
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| 28 | % | ||
Interest and other, net | (566) |
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| (693) |
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| 18 | % | ||
Income (loss) before income taxes | 136 |
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| (143) |
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| 195 | % | ||
Income tax benefit | (46) |
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| (472) |
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| 90 | % | ||
Net income | 182 |
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| 329 |
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| (45) | % | ||
| Less: Net income attributable to non-controlling interests | 39 |
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| 36 |
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| 8 | % | ||
| Net income attributable to Dell Technologies Inc. | $ | 143 |
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| $ | 293 |
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| (51) | % |
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| Percentage of Total Net Revenue: |
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| Gross margin | 31 | % |
| 31 | % |
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| Selling, general, and administrative | 22 | % |
| 23 | % |
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| Research and development | 6 | % |
| 5 | % |
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| Operating expenses | 28 | % |
| 29 | % |
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| Operating income | 3 | % |
| 3 | % |
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| Income (loss) before income taxes | 1 | % |
| (1) | % |
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| Net income | 1 | % |
| 2 | % |
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| Income tax rate | (33.8) | % |
| 330.1 | % |
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| (a) | During the fourth quarter of Fiscal 2020, the Company reclassified revenue associated with certain service and software-as-a-service offerings from product revenue to services revenue. There was no change to total revenue as a result of the reclassifications. Prior period results have been recast to conform with current period presentation. | |||||||||
