DELL TECHNOLOGIES INC. Reconciliation of Selected Non-GAAP Financial Measures (in millions, except percentages; unaudited; continued on next page) | |||||||||||
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| Three Months Ended |
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| Fiscal Year Ended |
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| February 2,
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| February 3,
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| %
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| February 2,
|
| February 3,
|
| %
|
Gross margin | $ 5,316 |
| $ 5,756 |
| (8) % |
| $ 20,869 |
| $ 22,686 |
| (8) % |
Non-GAAP adjustments: |
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|
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|
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Amortization of intangibles | 84 |
| 99 |
|
|
| 331 |
| 414 |
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|
Impact of purchase accounting | — |
| — |
|
|
| — |
| 2 |
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|
Stock-based compensation expense | 37 |
| 40 |
|
|
| 149 |
| 152 |
|
|
Other corporate expenses | 31 |
| 76 |
|
|
| 95 |
| 173 |
|
|
Non-GAAP gross margin | $ 5,468 |
| $ 5,971 |
| (8) % |
| $ 21,444 |
| $ 23,427 |
| (8) % |
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Operating expenses | $ 3,825 |
| $ 4,567 |
| (16) % |
| $ 15,658 |
| $ 16,915 |
| (7) % |
Non-GAAP adjustments: |
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Amortization of intangibles | (122) |
| (139) |
|
|
| (488) |
| (556) |
|
|
Impact of purchase accounting | (4) |
| (11) |
|
|
| (14) |
| (42) |
|
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Transaction-related expenses | (3) |
| (6) |
|
|
| (12) |
| (22) |
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|
Stock-based compensation expense | (166) |
| (188) |
|
|
| (729) |
| (779) |
|
|
Other corporate expenses | (201) |
| (422) |
|
|
| (649) |
| (726) |
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|
Non-GAAP operating expenses | $ 3,329 |
| $ 3,801 |
| (12) % |
| $ 13,766 |
| $ 14,790 |
| (7) % |
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Operating income | $ 1,491 |
| $ 1,189 |
| 25 % |
| $ 5,211 |
| $ 5,771 |
| (10) % |
Non-GAAP adjustments: |
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|
|
|
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|
Amortization of intangibles | 206 |
| 238 |
|
|
| 819 |
| 970 |
|
|
Impact of purchase accounting | 4 |
| 11 |
|
|
| 14 |
| 44 |
|
|
Transaction-related expenses | 3 |
| 6 |
|
|
| 12 |
| 22 |
|
|
Stock-based compensation expense | 203 |
| 228 |
|
|
| 878 |
| 931 |
|
|
Other corporate expenses | 232 |
| 498 |
|
|
| 744 |
| 899 |
|
|
Non-GAAP operating income | $ 2,139 |
| $ 2,170 |
| (1) % |
| $ 7,678 |
| $ 8,637 |
| (11) % |
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Net income | $ 1,158 |
| $ 606 |
| 91 % |
| $ 3,195 |
| $ 2,422 |
| 32 % |
Non-GAAP adjustments: |
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|
Amortization of intangibles | 206 |
| 238 |
|
|
| 819 |
| 970 |
|
|
Impact of purchase accounting | 4 |
| 11 |
|
|
| 14 |
| 44 |
|
|
Transaction-related (income) expenses | (5) |
| (14) |
|
|
| 49 |
| (16) |
|
|
Stock-based compensation expense | 203 |
| 228 |
|
|
| 878 |
| 931 |
|
|
Other corporate expenses | 232 |
| 392 |
|
|
| 744 |
| 1,812 |
|
|
Fair value adjustments on equity investments | (83) |
| 9 |
|
|
| (47) |
| 206 |
|
|
Aggregate adjustment for income taxes | (105) |
| (148) |
|
|
| (407) |
| (642) |
|
|
Non-GAAP net income | $ 1,610 |
| $ 1,322 |
| 22 % |
| $ 5,245 |
| $ 5,727 |
| (8) % |