DELL TECHNOLOGIES INC.
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| Three Months Ended | ||
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| May 5, 2023 |
| April 29, 2022 |
Reconciliation to consolidated net revenue: |
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Reportable segment net revenue | $ 19,576 |
| $ 24,872 |
Other businesses (a) | 1,343 |
| 1,239 |
Unallocated transactions (b) | 3 |
| 5 |
Total consolidated net revenue | $ 20,922 |
| $ 26,116 |
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Reconciliation to consolidated operating income: |
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Reportable segment operating income | $ 1,632 |
| $ 2,197 |
Other businesses (a) | (36) |
| (64) |
Unallocated transactions (b) | 2 |
| 2 |
Impact of purchase accounting (c) | (4) |
| (9) |
Amortization of intangibles | (199) |
| (243) |
Transaction-related (income) expenses (d) | (3) |
| (5) |
Stock-based compensation expense (e) | (225) |
| (232) |
Other corporate expenses (f) | (98) |
| (96) |
Total consolidated operating income | $ 1,069 |
| $ 1,550 |
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(a) | Other businesses consists of: 1) Dell's resale of standalone VMware, Inc. products and services, "VMware Resale," 2) Secureworks, and 3) Virtustream, and do not meet the requirements for a reportable segment, either individually or collectively. |
(b) | Unallocated transactions includes other corporate items that are not allocated to Dell Technologies' reportable segments. |
(c) | Impact of purchase accounting includes non-cash purchase accounting adjustments that are primarily related to the EMC merger transaction. |
(d) | Transaction-related (income) expenses includes acquisition, integration, and divestiture related costs. From time to time, this category also may include transaction-related income related to divestitures of businesses or asset sales. |
(e) | Stock-based compensation expense consists of equity awards granted based on the estimated fair value of those awards at grant date. |
(f) | Other corporate expenses includes impairment charges, incentive charges related to equity investments, severance, payroll taxes associated with stock-based compensation, facilities action, and other costs. |
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SUPPLEMENTAL SELECTED NON-GAAP FINANCIAL MEASURES
These tables present information about the Company's non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP net income, non-GAAP net income attributable to Dell Technologies Inc. - basic and diluted, non-GAAP earnings per share attributable to Dell Technologies Inc. - basic, and non-GAAP earnings per share attributable to Dell Technologies Inc. - diluted, which are non-GAAP financial measures provided as a supplement to the results provided in accordance with generally accepted accounting principles in the United States of America ("GAAP"). A detailed discussion of Dell Technologies' reasons for including these non-GAAP financial measures, the limitations associated with these measures, the items excluded from these measures, and our reason for excluding those items are presented in "Management's Discussion and Analysis of Financial Condition and Results of Operations — Non-GAAP Financial Measures" in our periodic reports filed with the SEC. Dell Technologies encourages investors to review the non-GAAP discussion in these reports in conjunction with the presentation of non-GAAP financial measures.
| DELL TECHNOLOGIES INC.
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| Three Months Ended |
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| May 5, 2023 |
| April 29, 2022 |
| Change |
| Net revenue (a) | $ 20,922 |
| $ 26,116 |
| (20) % |
| Non-GAAP gross margin | $ 5,164 |
| $ 5,941 |
| (13) % |
| % of non-GAAP net revenue | 24.7 % |
| 22.7 % |
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| Non-GAAP operating expenses | $ 3,566 |
| $ 3,806 |
| (6) % |
| % of non-GAAP net revenue | 17.1 % |
| 14.5 % |
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| Non-GAAP operating income | $ 1,598 |
| $ 2,135 |
| (25) % |
| % of non-GAAP net revenue | 7.6 % |
| 8.2 % |
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| Non-GAAP net income | $ 963 |
| $ 1,434 |
| (33) % |
| % of non-GAAP net revenue | 4.5 % |
| 5.5 % |
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| Non-GAAP earnings per share - diluted | $ 1.31 |
| $ 1.84 |
| (29) % |
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| (a) | Effective in the first quarter of Fiscal 2023, non-GAAP net revenue no longer differs from net revenue, the most
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| Amounts are based on underlying data and may not visually foot due to rounding. | |
