DELL TECHNOLOGIES INC.

Reconciliation of Selected Non-GAAP Financial Measures

(unaudited; continued)

Three Months Ended

May 3, 2024

May 5, 2023

% Change

Earnings per share attributable to Dell Technologies, Inc. — diluted

$           1.32

$           0.79

67 %

Non-GAAP adjustments:

Amortization of intangibles

0.23

0.28

Stock-based compensation expense

0.29

0.30

Other corporate expenses

0.24

0.13

Fair value adjustments on equity investments

0.04

0.02

Aggregate adjustment for income taxes (a)

(0.84)

(0.21)

Total non-GAAP adjustments attributable to non-controlling interests

(0.01)

—

Non-GAAP earnings per share attributable to Dell Technologies, Inc. — diluted

$           1.27

$           1.31

(3) %

____________________

(a)

Beginning in Fiscal 2025, our non-GAAP income tax is calculated using a fixed estimated annual tax rate.

DELL TECHNOLOGIES INC.

Reconciliation of Selected Non-GAAP Financial Measures

(in millions, except percentages; unaudited; continued)

Three Months Ended

May 3, 2024

May 5, 2023

% Change

Cash flow from operations

$        1,043

$        1,777

(41) %

Non-GAAP adjustments:

Capital expenditures and capitalized software development costs, net (a)

(586)

(698)

Free cash flow

$            457

$        1,079

(58) %

Free cash flow

$            457

$        1,079

(58) %

Non-GAAP adjustments:

Financing receivables (b)

165

(367)

Equipment under operating leases (c)

1

(25)

Adjusted free cash flow

$            623

$            687

(9) %

____________________

(a) 

Capital expenditures and capitalized software development costs is net of proceeds from sales of facilities, land, and other assets.

(b)

Financing receivables represent the operating cash flow impact from the change in DFS financing receivables.

(c)

Equipment under operating leases represents the net change of capital expenditures and depreciation expense for DFS leases and contractually embedded leases identified within flexible consumption arrangements.