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(Mark One)
|
|
|
þ
|
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 |
For the quarterly period ended November 2, 2018
|
||
or
|
||
☐
|
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
|
For the transition period from
to
|
Delaware
|
|
80-0890963
|
(State or other jurisdiction of incorporation or organization)
|
|
(I.R.S. Employer Identification No.)
|
Large accelerated filer
þ
|
|
Accelerated filer
¨
|
Non-accelerated filer
¨
|
|
Smaller reporting company
¨
|
|
|
Emerging growth company
¨
|
|
|
Page
|
|
|
Page
|
|
|
|
November 2, 2018
|
|
February 2, 2018
|
||||
ASSETS
|
|||||||
Current assets:
|
|
|
|
|
|
||
Cash and cash equivalents
|
$
|
|
|
|
$
|
|
|
Short-term investments
|
|
|
|
|
|
||
Accounts receivable, net
|
|
|
|
|
|
||
Short-term financing receivables, net
|
|
|
|
|
|
||
Inventories, net
|
|
|
|
|
|
||
Other current assets
|
|
|
|
|
|
||
Total current assets
|
|
|
|
|
|
||
Property, plant, and equipment, net
|
|
|
|
|
|
||
Long-term investments
|
|
|
|
|
|
||
Long-term financing receivables, net
|
|
|
|
|
|
||
Goodwill
|
|
|
|
|
|
||
Intangible assets, net
|
|
|
|
|
|
||
Other non-current assets
|
|
|
|
|
|
||
Total assets
|
$
|
|
|
|
$
|
|
|
LIABILITIES, REDEEMABLE SHARES, AND STOCKHOLDERS’ EQUITY
|
|||||||
Current liabilities:
|
|
|
|
|
|
||
Short-term debt
|
$
|
|
|
|
$
|
|
|
Accounts payable
|
|
|
|
|
|
||
Accrued and other
|
|
|
|
|
|
||
Short-term deferred revenue
|
|
|
|
|
|
||
Total current liabilities
|
|
|
|
|
|
||
Long-term debt
|
|
|
|
|
|
||
Long-term deferred revenue
|
|
|
|
|
|
||
Other non-current liabilities
|
|
|
|
|
|
||
Total liabilities
|
|
|
|
|
|
||
Commitments and contingencies (Note 11)
|
|
|
|
|
|
||
Redeemable shares
|
|
|
|
|
|
||
Stockholders' equity:
|
|
|
|
||||
Common stock and capital in excess of $.01 par value (Note 16)
|
|
|
|
|
|
||
Treasury stock at cost
|
(
|
)
|
|
(
|
)
|
||
Accumulated deficit
|
(
|
)
|
|
(
|
)
|
||
Accumulated other comprehensive income (loss)
|
(
|
)
|
|
|
|
||
Total Dell Technologies Inc. stockholders’ equity
|
|
|
|
|
|
||
Non-controlling interests
|
|
|
|
|
|
||
Total stockholders' equity
|
|
|
|
|
|
||
Total liabilities, redeemable shares, and stockholders' equity
|
$
|
|
|
|
$
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
November 2, 2018
|
|
November 3, 2017
|
|
November 2, 2018
|
|
November 3, 2017
|
||||||||
Net revenue:
|
|
|
|
|
|
|
|
|
|||||||
Products
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
Services
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total net revenue
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cost of net revenue:
|
|
|
|
|
|
|
|
||||||||
Products
|
|
|
|
|
|
|
|
|
|
|
|
||||
Services
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total cost of net revenue
|
|
|
|
|
|
|
|
|
|
|
|
||||
Gross margin
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating expenses:
|
|
|
|
|
|
|
|
||||||||
Selling, general, and administrative
|
|
|
|
|
|
|
|
|
|
|
|
||||
Research and development
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating loss
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
||||
Interest and other, net
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
||||
Loss before income taxes
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
||||
Income tax benefit
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
||||
Net loss
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
||||
Less: Net income (loss) attributable to non-controlling interests
|
(
|
)
|
|
(
|
)
|
|
|
|
|
(
|
)
|
||||
Net loss attributable to Dell Technologies Inc.
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
|
|
|
|
|
|
|
||||||||
Earnings (loss) per share attributable to Dell Technologies Inc. - basic:
|
|
|
|
|
|||||||||||
Class V Common Stock - basic
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
DHI Group - basic
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
|
|
|
|
|
|
|
||||||||
Earnings (loss) per share attributable to Dell Technologies Inc. - diluted:
|
|
|
|
|
|||||||||||
Class V Common Stock - diluted
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
DHI Group - diluted
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
November 2, 2018
|
|
November 3, 2017
|
|
November 2, 2018
|
|
November 3, 2017
|
||||||||
Net loss
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
|
|
|
|
|
|
|
||||||||
Other comprehensive income (loss), net of tax
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustments
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
|
|
||||
Available-for-sale investments:
|
|
|
|
|
|
|
|
||||||||
Change in unrealized gains (losses)
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
|
|
||||
Reclassification adjustment for net (gains) losses realized in net loss
|
|
|
|
|
|
|
(
|
)
|
|
|
|
||||
Net change in market value of investments
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
|
|
||||
Cash flow hedges:
|
|
|
|
|
|
|
|
||||||||
Change in unrealized gains (losses)
|
|
|
|
|
|
|
|
|
|
(
|
)
|
||||
Reclassification adjustment for net (gains) losses included in net loss
|
(
|
)
|
|
|
|
|
(
|
)
|
|
|
|
||||
Net change in cash flow hedges
|
(
|
)
|
|
|
|
|
|
|
|
(
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Total other comprehensive income (loss), net of tax expense of $0 and $9, respectively, and $7 and $24, respectively
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
|
|
||||
Comprehensive loss, net of tax
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
||||
Less: Net income (loss) attributable to non-controlling interests
|
(
|
)
|
|
(
|
)
|
|
|
|
|
(
|
)
|
||||
Less: Other comprehensive income (loss) attributable to non-controlling interests
|
|
|
|
(
|
)
|
|
(
|
)
|
|
|
|
||||
Comprehensive loss attributable to Dell Technologies Inc.
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
Nine Months Ended
|
||||||
|
November 2, 2018
|
|
November 3, 2017
|
||||
Cash flows from operating activities:
|
|
|
|
|
|||
Net loss
|
$
|
(
|
)
|
|
$
|
(
|
)
|
Adjustments to reconcile net loss to net cash provided by operating activities:
|
|
|
|
||||
Depreciation and amortization
|
|
|
|
|
|
||
Amortization of debt issuance costs
|
|
|
|
|
|
||
Stock-based compensation expense
|
|
|
|
|
|
||
Deferred income taxes
|
(
|
)
|
|
(
|
)
|
||
Net (gain) loss on sale of businesses
|
(
|
)
|
|
|
|
||
Provision for doubtful accounts — including financing receivables
|
|
|
|
|
|
||
Other
|
|
|
|
|
|
||
Changes in assets and liabilities, net of effects from acquisitions and dispositions:
|
|
|
|||||
Accounts receivable
|
|
|
|
|
|
||
Financing receivables
|
(
|
)
|
|
(
|
)
|
||
Inventories
|
(
|
)
|
|
(
|
)
|
||
Other assets
|
(
|
)
|
|
(
|
)
|
||
Accounts payable
|
|
|
|
|
|
||
Deferred revenue
|
|
|
|
|
|
||
Accrued and other liabilities
|
(
|
)
|
|
(
|
)
|
||
Change in cash from operating activities
|
|
|
|
|
|
||
Cash flows from investing activities:
|
|
|
|
||||
Investments:
|
|
|
|
||||
Purchases
|
(
|
)
|
|
(
|
)
|
||
Maturities and sales
|
|
|
|
|
|
||
Capital expenditures
|
(
|
)
|
|
(
|
)
|
||
Proceeds from sale of facilities, land, and other assets
|
|
|
|
|
|
||
Capitalized software development costs
|
(
|
)
|
|
(
|
)
|
||
Collections on purchased financing receivables
|
|
|
|
|
|
||
Acquisition of businesses, net
|
(
|
)
|
|
(
|
)
|
||
Divestitures of businesses, net
|
|
|
|
|
|
||
Asset acquisitions, net
|
(
|
)
|
|
(
|
)
|
||
Asset dispositions, net
|
(
|
)
|
|
(
|
)
|
||
Change in cash from investing activities
|
(
|
)
|
|
(
|
)
|
|
Nine Months Ended
|
||||||
|
November 2, 2018
|
|
November 3, 2017
|
||||
Cash flows from financing activities:
|
|
|
|
||||
Payment of dissenting shares obligation
|
(
|
)
|
|
|
|
||
Share repurchases for tax withholdings of equity awards
|
(
|
)
|
|
(
|
)
|
||
Proceeds from the issuance of common stock of subsidiaries
|
|
|
|
|
|
||
Repurchases of DHI Group Common Stock
|
(
|
)
|
|
(
|
)
|
||
Repurchases of Class V Common Stock
|
|
|
|
(
|
)
|
||
Repurchases of common stock of subsidiaries
|
(
|
)
|
|
(
|
)
|
||
Payments for debt issuance costs
|
(
|
)
|
|
(
|
)
|
||
Proceeds from debt
|
|
|
|
|
|
||
Repayments of debt
|
(
|
)
|
|
(
|
)
|
||
Other
|
|
|
|
|
|
||
Change in cash from financing activities
|
(
|
)
|
|
|
|
||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash
|
(
|
)
|
|
|
|
||
Change in cash, cash equivalents, and restricted cash
|
|
|
|
|
|
||
Cash, cash equivalents, and restricted cash at beginning of the period
|
|
|
|
|
|
||
Cash, cash equivalents, and restricted cash at end of the period
|
$
|
|
|
|
$
|
|
|
|
Common Stock and Capital in Excess of Par Value
|
|
Treasury Stock
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||
|
DHI Group
|
|
Class V Common Stock
|
|
DHI Group
|
|
Class V Common Stock
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
|
Issued Shares
|
|
Amount
|
|
Issued Shares
|
|
Amount
|
|
Shares
|
|
Amount
|
|
Shares
|
|
Amount
|
|
Accumulated Deficit
|
|
Accumulated Other Comprehensive Income/(Loss)
|
|
Dell Technologies Stockholders' Equity
|
|
Non-Controlling Interests
|
|
Total Stockholders' Equity
|
||||||||||||||||||||||
Balances as of February 2, 2018
|
|
|
|
$
|
|
|
|
|
|
|
$
|
|
|
|
|
|
|
$
|
(
|
)
|
|
|
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
Adjustment for adoption of accounting standards (Note 1)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
(
|
)
|
|
—
|
|
|
(
|
)
|
|
(
|
)
|
|||||||||
Net income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(
|
)
|
|
—
|
|
|
(
|
)
|
|
|
|
|
(
|
)
|
|||||||||
Foreign currency translation adjustments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(
|
)
|
|
(
|
)
|
|
—
|
|
|
(
|
)
|
|||||||||
Investments, net change
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|||||||||
Cash flow hedges, net change
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
|
(
|
)
|
|
|
|
|||||||||
Issuance of common stock
|
|
|
|
(
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(
|
)
|
|
—
|
|
|
(
|
)
|
|||||||||
Stock-based compensation expense
|
—
|
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Treasury stock repurchases
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
(
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(
|
)
|
|
—
|
|
|
(
|
)
|
|||||||||
Revaluation of redeemable shares
|
—
|
|
|
(
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(
|
)
|
|
—
|
|
|
(
|
)
|
|||||||||
Impact from equity transactions of non-controlling interests
|
—
|
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Balances as of November 2, 2018
|
|
|
|
$
|
|
|
|
|
|
|
$
|
|
|
|
|
|
|
$
|
(
|
)
|
|
|
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Common Stock and Capital in Excess of Par Value
|
|
Treasury Stock
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||
|
DHI Group
|
|
Class V Common Stock
|
|
DHI Group
|
|
Class V Common Stock
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
|
Issued Shares
|
|
Amount
|
|
Issued Shares
|
|
Amount
|
|
Shares
|
|
Amount
|
|
Shares
|
|
Amount
|
|
Accumulated Deficit
|
|
Accumulated Other Comprehensive Income/(Loss)
|
|
Dell Technologies Stockholders' Equity
|
|
Non-Controlling Interests
|
|
Total Stockholders' Equity
|
||||||||||||||||||||||
Balances as of February 3, 2017
|
|
|
|
$
|
|
|
|
|
|
|
$
|
|
|
|
|
|
|
$
|
(
|
)
|
|
|
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
Adjustment for adoption of accounting standard (Note 1)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
|
|||||||||
Net loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(
|
)
|
|
—
|
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|||||||||
Foreign currency translation adjustments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|||||||||
Investments, net change
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Cash flow hedges, net change
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(
|
)
|
|
(
|
)
|
|
|
|
|
(
|
)
|
|||||||||
Issuance of common stock
|
|
|
|
(
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(
|
)
|
|
—
|
|
|
(
|
)
|
|||||||||
Stock-based compensation expense
|
—
|
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Treasury stock repurchases
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
(
|
)
|
|
|
|
|
(
|
)
|
|
—
|
|
|
—
|
|
|
(
|
)
|
|
|
|
|
(
|
)
|
|||||||||
Revaluation of redeemable shares
|
—
|
|
|
(
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(
|
)
|
|
—
|
|
|
(
|
)
|
|||||||||
Impact from equity transactions of non-controlling interests
|
—
|
|
|
(
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|||||||||
Balances as of November 3, 2017
|
|
|
|
$
|
|
|
|
|
|
|
$
|
|
|
|
|
|
|
$
|
(
|
)
|
|
|
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
February 2, 2018
|
||||||||||
|
As Reported (a)
|
|
Revenue from Contracts with Customers
|
|
As Recast
|
||||||
|
(in millions)
|
||||||||||
Assets
|
|
|
|
|
|
||||||
Accounts receivable, net
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
Other current assets
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
Other non-current assets
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
|
||||||
Accrued and other
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
Short-term deferred revenue
|
$
|
|
|
|
$
|
(
|
)
|
|
$
|
|
|
Long-term deferred revenue
|
$
|
|
|
|
$
|
(
|
)
|
|
$
|
|
|
Other non-current liabilities
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
Accumulated deficit
|
$
|
(
|
)
|
|
$
|
|
|
|
$
|
(
|
)
|
Non-controlling interests
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
(a)
|
|
•
|
First, the return rights provision, which represents an estimate of expected customer returns, which was previously presented as a reduction of accounts receivable, net, is now being presented outside of accounts receivable, net in two separate balance sheet line items. A liability is recorded in accrued and other for the estimated value of the sales amounts to be returned to the customer, and an asset is recorded in other current assets representing the recoverable cost of the inventory estimated to be returned.
|
•
|
Second, the standard provides new guidance regarding transfer of control of goods to the customer. Under these new guidelines, the Company has determined that for certain hardware contracts in the United States, transfer of control and recognition of revenue can occur earlier. This resulted in an increase in accounts receivable, net and a decrease in the in-transit deferral recorded in other current assets.
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||||||||||
|
November 3, 2017
|
|
November 3, 2017
|
||||||||||||||||||||
|
As Reported (a)
|
|
Revenue from Contracts with Customers
|
|
As Recast
|
|
As Reported (a)
|
|
Revenue from Contracts with Customers
|
|
As Recast
|
||||||||||||
|
(in millions, except per share amounts)
|
||||||||||||||||||||||
Net revenue:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Products
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
Services
|
|
|
|
(
|
)
|
|
|
|
|
|
|
|
(
|
)
|
|
|
|
||||||
Total net revenue
|
|
|
|
(
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Cost of net revenue:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Products
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Services
|
|
|
|
(
|
)
|
|
|
|
|
|
|
|
(
|
)
|
|
|
|
||||||
Total cost of net revenue
|
|
|
|
(
|
)
|
|
|
|
|
|
|
|
(
|
)
|
|
|
|
||||||
Gross margin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Selling, general, and administrative
|
|
|
|
(
|
)
|
|
|
|
|
|
|
|
(
|
)
|
|
|
|
||||||
Research and development
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total operating expenses
|
|
|
|
(
|
)
|
|
|
|
|
|
|
|
(
|
)
|
|
|
|
||||||
Operating loss
|
(
|
)
|
|
|
|
|
(
|
)
|
|
(
|
)
|
|
|
|
|
(
|
)
|
||||||
Interest and other, net
|
(
|
)
|
|
|
|
|
(
|
)
|
|
(
|
)
|
|
|
|
|
(
|
)
|
||||||
Income (loss) before income taxes
|
(
|
)
|
|
|
|
|
(
|
)
|
|
(
|
)
|
|
|
|
|
(
|
)
|
||||||
Income tax provision (benefit)
|
(
|
)
|
|
|
|
|
(
|
)
|
|
(
|
)
|
|
|
|
|
(
|
)
|
||||||
Net income (loss)
|
(
|
)
|
|
|
|
|
(
|
)
|
|
(
|
)
|
|
|
|
|
(
|
)
|
||||||
Less: Net loss attributable to non-controlling interests
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
|
|
|
(
|
)
|
||||||
Net income (loss) attributable to Dell Technologies Inc.
|
$
|
(
|
)
|
|
$
|
|
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
$
|
|
|
|
$
|
(
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Earnings (loss) per share attributable to Dell Technologies Inc. - basic:
|
|
|
|
|
|
|
|||||||||||||||||
Class V Common Stock - basic
|
$
|
|
|
|
$
|
(
|
)
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
DHI Group - basic
|
$
|
(
|
)
|
|
$
|
|
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
$
|
|
|
|
$
|
(
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Earnings (loss) per share attributable to Dell Technologies Inc. - diluted:
|
|
|
|
|
|
|
|||||||||||||||||
Class V Common Stock - diluted
|
$
|
|
|
|
$
|
(
|
)
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
DHI Group - diluted
|
$
|
(
|
)
|
|
$
|
|
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
$
|
|
|
|
$
|
(
|
)
|
(a)
|
|
•
|
Under the new revenue standard, amounts within a contract are now allocated to the product and services performance obligations based on their respective standalone selling prices, which generally increases product revenue and decreases services revenue relative to previously reported results.
|
•
|
Further, third-party software licenses were previously recognized in services revenue as the Company could not separate the value of the software license from the associated maintenance agreement. Under the new revenue standard, the license value requires separation and will be recognized in product revenue and the value of the software maintenance will continue to be recognized in services revenue.
|
|
Nine Months Ended
|
||||||||||||||
|
November 3, 2017
|
||||||||||||||
|
As Reported (a)
|
|
Classification of Certain Cash Receipts and Cash Payments
|
|
Statement of Cash Flows, Restricted Cash
|
|
As Recast
|
||||||||
|
(in millions)
|
||||||||||||||
Change in cash from operating activities
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
Change in cash from investing activities
|
$
|
(
|
)
|
|
$
|
|
|
|
$
|
|
|
|
$
|
(
|
)
|
Change in cash from financing activities
|
$
|
|
|
|
$
|
(
|
)
|
|
$
|
|
|
|
$
|
|
|
|
|
|
|
|
|
|
|
||||||||
Change in cash, cash equivalents, and restricted cash
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
Cash, cash equivalents, and restricted cash at beginning of the period
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cash, cash equivalents, and restricted cash at end of the period
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
(a)
|
|
(1)
|
Identify the contract with a customer.
The term “contract” refers to the enforceable rights and obligations provided in an agreement between the Company and one or more other parties in exchange for payment. The Company evaluates facts and circumstances regarding sales transactions in order to identify contracts with its customers. An agreement must meet all of the following criteria to qualify as a contract eligible for revenue recognition under the model: (i) the contract must be approved by all parties; (ii) each party’s rights regarding the goods and services to be transferred to the customer can be identified; (iii) the payment terms for the goods and services can be identified; (iv) the customer has the ability and intent to pay and it is probable that the Company will collect substantially all of the consideration to which it will be entitled; and (v) the contract must have commercial substance. Judgment is used in determining the customer’s ability and intent to pay, which is based upon various factors including the customer’s historical payment experience or customer credit and financial information.
|
(2)
|
Identify the performance obligations in the contract.
Distinct promises within a contract are referred to as “performance obligations” and are accounted for as separate units of account. The Company assesses whether each promised good or service is distinct for the purpose of identifying the performance obligations in the contract. This assessment involves subjective determinations and requires management to make judgments about the individual promised goods or services and whether such goods or services are separable from the other aspects of the contractual relationship. Promised goods and services are considered distinct provided that: (i) the customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer (that is, the good or service is capable of being distinct); and (ii) the Company’s promise to transfer the good or service to the customer is separately identifiable from other promises in the contract (that is, the promise to transfer the good or service is distinct within the context of the contract). The Company’s performance obligations consist of a variety of products and services offerings which include: hardware, such as servers, storage, networking, personal computers, workstations, and peripherals; third-party software; proprietary software licenses; support and deployment services, which include hardware support that extends beyond the Company’s standard warranties, software maintenance, and installation; professional services; training; software as a service (“SaaS”); and infrastructure as a service (“IaaS”).
|
(3)
|
Determine the transaction price.
Transaction price reflects the amount of consideration to which the Company expects to be entitled in exchange for transferring goods or services to the customer. If the consideration promised in a contract includes a variable amount, the Company estimates the amount to which it expects to be entitled using either the expected value or most likely amount method. The Company’s contracts may include terms that could cause variability in the transaction price, including, for example, rebates, sales returns, and volume discounts. In determining the transaction price, any variable consideration would be considered, to the extent applicable, if it is probable that a significant future reversal of cumulative revenue under the contract will not occur when the uncertainty associated with the variable consideration is resolved.
|
(4)
|
Allocate the transaction price to performance obligations in the contract.
Many of the Company’s contracts include promises to transfer multiple products and services to a customer, and the transaction price must be allocated to each performance obligation in an amount that depicts the consideration to which the Company expects to be entitled in exchange for transferring the promised goods or services. For these contracts with multiple performance obligations, the transaction price is allocated in proportion to the standalone selling price (“SSP”) of each performance obligation.
|
(5)
|
Recognize revenue when (or as) the performance obligation is satisfied.
Revenue is recognized when obligations under the terms of the contract with the Company’s customer are satisfied. Revenue is recognized either over time or at a point in time, depending on when the underlying products or services are transferred to the customer. Revenue is recognized at a point in time for products upon transfer of control. Revenue is recognized over time for support and deployment services, professional services, training, software support, SaaS, and IaaS.
|
•
|
The Company does not account for significant financing components if the period between revenue recognition and when the customer pays for the product or service will be one year or less.
|
•
|
The Company recognizes revenue equal to the amount it has a right to invoice when the amount corresponds directly with the value to the customer of the Company’s performance to date.
|
•
|
The Company does not account for shipping and handling activities as a separate performance obligation, but rather as an activity performed to transfer the promised good.
|
|
November 2, 2018 (a)
|
|
February 2, 2018
|
||||||||||||||||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||||||||||
|
Quoted
Prices in Active Markets for Identical Assets |
|
Significant
Other Observable Inputs |
|
Significant
Unobservable Inputs |
|
|
|
Quoted
Prices in Active Markets for Identical Assets |
|
Significant
Other Observable Inputs |
|
Significant
Unobservable Inputs |
|
|
||||||||||||||||
|
(in millions)
|
||||||||||||||||||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Money market funds
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
U.S. corporate debt securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign corporate debt securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
U.S. government and agencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S. corporate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Equity and other securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Derivative instruments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Total assets
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Derivative instruments
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
Total liabilities
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
November 2, 2018
|
|
February 2, 2018
|
||||||||||||
|
Carrying Value
|
|
Fair Value
|
|
Carrying Value
|
|
Fair Value
|
||||||||
|
(in billions)
|
||||||||||||||
Senior Secured Credit Facilities
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
First Lien Notes
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
Unsecured Notes and Debentures
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
Senior Notes
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
EMC Notes
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
VMware Notes
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
Margin Loan Facility
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
November 2, 2018
|
|
February 2, 2018
|
||||||||||||||||||||||||||||
|
Cost
|
|
Unrealized Gain
|
|
Unrealized (Loss)
|
|
Carrying Value
|
|
Cost
|
|
Unrealized Gain
|
|
Unrealized (Loss)
|
|
Carrying Value
|
||||||||||||||||
|
(in millions)
|
||||||||||||||||||||||||||||||
Investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
U.S. government and agencies
|
$
|
|
|
|
$
|
|
|
|
$
|
(
|
)
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
(
|
)
|
|
$
|
|
|
U.S. corporate debt securities
|
|
|
|
|
|
|
(
|
)
|
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|
|
|
||||||||
Foreign debt securities
|
|
|
|
|
|
|
(
|
)
|
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|
|
|
||||||||
Total short-term investments
|
|
|
|
|
|
|
(
|
)
|
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|
|
|
||||||||
U.S. government and agencies
|
|
|
|
|
|
|
(
|
)
|
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|
|
|
||||||||
U.S. corporate debt securities
|
|
|
|
|
|
|
(
|
)
|
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|
|
|
||||||||
Foreign debt securities
|
|
|
|
|
|
|
(
|
)
|
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|
|
|
||||||||
Equity and other securities (a)
|
|
|
|
|
|
|
(
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Total long-term investments
|
|
|
|
|
|
|
(
|
)
|
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|
|
|
||||||||
Total investments
|
$
|
|
|
|
$
|
|
|
|
$
|
(
|
)
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
(
|
)
|
|
$
|
|
|
(a)
|
|
|
Carrying Value
|
|
Amortized Cost
|
||||
|
(in millions)
|
||||||
Due within one year
|
$
|
|
|
|
$
|
|
|
Due after 1 year through 5 years
|
|
|
|
|
|
||
Due after 5 years through 10 years
|
|
|
|
|
|
||
Total
|
$
|
|
|
|
$
|
|
|
•
|
Revolving loans
— Revolving loans offered under private label credit financing programs provide qualified customers with a revolving credit line for the purchase of products and services offered by Dell Technologies. These private label credit financing programs are referred to as Dell Preferred Account (“DPA”) and Dell Business Credit (“DBC”). The DPA product is primarily offered to individual consumer customers, and the DBC product is primarily offered to small and medium-sized commercial customers. Revolving loans in the United States bear interest at a variable annual percentage rate that is tied to the prime rate. Based on historical payment patterns, revolving loan transactions are typically repaid within
|
•
|
Fixed-term sales-type leases and loans
— The Company enters into sales-type lease arrangements with customers who seek lease financing. Leases with business customers have fixed terms of generally
two
to
four years
. Future maturities of minimum lease and associated financing payments as of
November 2, 2018
were as follows:
Fiscal 2019
-
$
|
|
November 2, 2018
|
|
February 2, 2018
|
||||||||||||||||||||
|
Revolving
|
|
Fixed-term
|
|
Total
|
|
Revolving
|
|
Fixed-term
|
|
Total
|
||||||||||||
|
(in millions)
|
||||||||||||||||||||||
Financing receivables, net:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Customer receivables, gross (a)
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
Allowances for losses
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
||||||
Customer receivables, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Residual interest
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Financing receivables, net
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
Short-term
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
Long-term
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Three Months Ended
|
||||||||||||||||||||||
|
November 2, 2018
|
|
November 3, 2017
|
||||||||||||||||||||
|
Revolving
|
|
Fixed-term
|
|
Total
|
|
Revolving
|
|
Fixed-term
|
|
Total
|
||||||||||||
|
(in millions)
|
||||||||||||||||||||||
Allowance for financing receivable losses:
|
|||||||||||||||||||||||
Balances at beginning of period
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
Charge-offs, net of recoveries
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
||||||
Provision charged to income statement
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Balances at end of period
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Nine Months Ended
|
||||||||||||||||||||||
|
November 2, 2018
|
|
November 3, 2017
|
||||||||||||||||||||
|
Revolving
|
|
Fixed-term
|
|
Total
|
|
Revolving
|
|
Fixed-term
|
|
Total
|
||||||||||||
|
(in millions)
|
||||||||||||||||||||||
Allowance for financing receivable losses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balances at beginning of period
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
Charge-offs, net of recoveries
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
||||||
Provision charged to income statement
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Balances at end of period
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
November 2, 2018
|
|
February 2, 2018
|
||||||||||||||||||||||||||||
|
Current
|
|
Past Due
1 — 90 Days |
|
Past Due
>90 Days |
|
Total
|
|
Current
|
|
Past Due
1 — 90 Days |
|
Past Due
>90 Days |
|
Total
|
||||||||||||||||
|
(in millions)
|
||||||||||||||||||||||||||||||
Revolving — DPA
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
Revolving — DBC
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fixed-term — Consumer and Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Total customer receivables, gross
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
November 2, 2018
|
|
February 2, 2018
|
||||||||||||||||||||||||||||
|
Higher
|
|
Mid
|
|
Lower
|
|
Total
|
|
Higher
|
|
Mid
|
|
Lower
|
|
Total
|
||||||||||||||||
|
(in millions)
|
||||||||||||||||||||||||||||||
Revolving — DPA
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
Revolving — DBC
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
Fixed-term — Consumer and Commercial
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
November 2, 2018
|
|
February 2, 2018
|
||||
|
(in millions)
|
||||||
DFS U.S. debt
|
|
|
|
||||
Securitization facilities
|
$
|
|
|
|
$
|
|
|
Fixed-term securitization offerings
|
|
|
|
|
|
||
Other
|
|
|
|
|
|
||
Total DFS U.S. debt
|
|
|
|
|
|
||
DFS international debt
|
|
|
|
||||
Securitization facility
|
|
|
|
|
|
||
Other structured facilities
|
|
|
|
|
|
||
Note payable
|
|
|
|
|
|
||
Total DFS international debt
|
|
|
|
|
|
||
Total DFS debt
|
$
|
|
|
|
$
|
|
|
Total short-term DFS debt
|
$
|
|
|
|
$
|
|
|
Total long-term DFS debt
|
$
|
|
|
|
$
|
|
|
|
November 2, 2018
|
|
February 2, 2018
|
||||
|
(in millions)
|
||||||
Financing receivables held by consolidated VIEs, net:
|
|
|
|
|
|
||
Short-term, net
|
$
|
|
|
|
$
|
|
|
Long-term, net
|
|
|
|
|
|
||
Financing receivables held by consolidated VIEs, net
|
$
|
|
|
|
$
|
|
|
|
November 2, 2018
|
|
February 2, 2018
|
||||
|
(in millions)
|
||||||
Secured Debt
|
|
|
|
||||
Senior Secured Credit Facilities:
|
|
|
|
||||
4.31% Term Loan B Facility due September 2023
|
$
|
|
|
|
$
|
|
|
4.06% Term Loan A-2 Facility due September 2021
|
|
|
|
|
|
||
3.81% Term Loan A-3 Facility due December 2018
|
|
|
|
|
|
||
First Lien Notes:
|
|
|
|
||||
3.48% due June 2019
|
|
|
|
|
|
||
4.42% due June 2021
|
|
|
|
|
|
||
5.45% due June 2023
|
|
|
|
|
|
||
6.02% due June 2026
|
|
|
|
|
|
||
8.10% due July 2036
|
|
|
|
|
|
||
8.35% due July 2046
|
|
|
|
|
|
||
Unsecured Debt
|
|
|
|
||||
Unsecured Notes and Debentures:
|
|
|
|
||||
5.65% due April 2018
|
|
|
|
|
|
||
5.875% due June 2019
|
|
|
|
|
|
||
4.625% due April 2021
|
|
|
|
|
|
||
7.10% due April 2028
|
|
|
|
|
|
||
6.50% due April 2038
|
|
|
|
|
|
||
5.40% due September 2040
|
|
|
|
|
|
||
Senior Notes:
|
|
|
|
||||
5.875% due June 2021
|
|
|
|
|
|
||
7.125% due June 2024
|
|
|
|
|
|
||
EMC Notes:
|
|
|
|
||||
1.875% due June 2018
|
|
|
|
|
|
||
2.650% due June 2020
|
|
|
|
|
|
||
3.375% due June 2023
|
|
|
|
|
|
||
VMware Notes:
|
|
|
|
||||
2.30% due August 2020
|
|
|
|
|
|
||
2.95% due August 2022
|
|
|
|
|
|
||
3.90% due August 2027
|
|
|
|
|
|
||
DFS Debt (Note 5)
|
|
|
|
|
|
||
Other
|
|
|
|
||||
4.78% Margin Loan Facility due April 2022
|
|
|
|
|
|
||
Other
|
|
|
|
|
|
||
Total debt, principal amount
|
$
|
|
|
|
$
|
|
|
|
November 2, 2018
|
|
February 2, 2018
|
||||
|
(in millions)
|
||||||
Total debt, principal amount
|
$
|
|
|
|
$
|
|
|
Unamortized discount, net of unamortized premium
|
(
|
)
|
|
(
|
)
|
||
Debt issuance costs
|
(
|
)
|
|
(
|
)
|
||
Total debt, carrying value
|
$
|
|
|
|
$
|
|
|
Total short-term debt, carrying value
|
$
|
|
|
|
$
|
|
|
Total long-term debt, carrying value
|
$
|
|
|
|
$
|
|
|
|
Maturities by Fiscal Year
|
||||||||||||||||||||||||||
|
2019 (remaining three months)
|
|
2020
|
|
2021
|
|
2022
|
|
2023
|
|
Thereafter
|
|
Total
|
||||||||||||||
|
(in millions)
|
||||||||||||||||||||||||||
Senior Secured Credit Facilities and First Lien Notes
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
Unsecured Notes and Debentures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Senior Notes and EMC Notes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
VMware Notes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
DFS Debt
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Margin Loan Facility
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Total maturities, principal amount
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Associated carrying value adjustments
|
|
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|||||||
Total maturities, carrying value amount
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
November 2, 2018
|
|
February 2, 2018
|
||||
|
(in millions)
|
||||||
Foreign exchange contracts:
|
|
|
|
|
|
||
Designated as cash flow hedging instruments
|
$
|
|
|
|
$
|
|
|
Non-designated as hedging instruments
|
|
|
|
|
|
||
Total
|
$
|
|
|
|
$
|
|
|
|
|
|
|
||||
Interest rate contracts:
|
|
|
|
||||
Non-designated as hedging instruments
|
$
|
|
|
|
$
|
|
|
Derivatives in Cash Flow
Hedging Relationships |
|
Gain (Loss)
Recognized in Accumulated OCI, Net of Tax, on Derivatives |
|
Location of Gain (Loss)
Reclassified from Accumulated OCI into Income |
|
Gain (Loss)
Reclassified from Accumulated OCI into Income |
||||
|
|
(in millions)
|
|
|
|
(in millions)
|
||||
For the three months ended November 2, 2018
|
||||||||||
|
|
|
|
|
Total net revenue
|
|
$
|
|
|
|
Foreign exchange contracts
|
|
$
|
|
|
|
Total cost of net revenue
|
|
|
|
|
Interest rate contracts
|
|
|
|
|
Interest and other, net
|
|
|
|
||
Total
|
|
$
|
|
|
|
|
|
$
|
|
|
|
|
|
|
|
|
|
||||
For the three months ended November 3, 2017
|
||||||||||
|
|
|
|
|
Total net revenue
|
|
$
|
(
|
)
|
|
Foreign exchange contracts
|
|
$
|
|
|
|
Total cost of net revenue
|
|
(
|
)
|
|
Interest rate contracts
|
|
|
|
|
Interest and other, net
|
|
|
|
||
Total
|
|
$
|
|
|
|
|
|
$
|
(
|
)
|
|
|
|
|
|
|
|
||||
For the nine months ended November 2, 2018
|
||||||||||
|
|
|
|
|
Total net revenue
|
|
$
|
|
|
|
Foreign exchange contracts
|
|
$
|
|
|
|
Total cost of net revenue
|
|
|
|
|
Interest rate contracts
|
|
|
|
|
Interest and other, net
|
|
|
|
||
Total
|
|
$
|
|
|
|
|
|
$
|
|
|
|
|
|
|
|
|
|
||||
For the nine months ended November 3, 2017
|
||||||||||
|
|
|
|
|
Total net revenue
|
|
$
|
(
|
)
|
|
Foreign exchange contracts
|
|
$
|
(
|
)
|
|
Total cost of net revenue
|
|
(
|
)
|
|
Interest rate contracts
|
|
|
|
|
Interest and other, net
|
|
|
|
||
Total
|
|
$
|
(
|
)
|
|
|
|
$
|
(
|
)
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
||||||||||||
|
|
November 2, 2018
|
|
November 3, 2017
|
|
November 2, 2018
|
|
November 3, 2017
|
|
Location of Gain (Loss) Recognized
|
||||||||
|
|
(in millions)
|
|
|
||||||||||||||
Gain (Loss) Recognized:
|
|
|
|
|
|
|
|
|
||||||||||
Foreign exchange contracts
|
|
$
|
|
|
|
$
|
(
|
)
|
|
$
|
|
|
|
$
|
(
|
)
|
|
Interest and other, net
|
Interest rate contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and other, net
|
||||
Total
|
|
$
|
|
|
|
$
|
(
|
)
|
|
$
|
|
|
|
$
|
(
|
)
|
|
|
|
November 2, 2018
|
||||||||||||||||||
|
Other Current
Assets |
|
Other Non-
Current Assets |
|
Other Current
Liabilities |
|
Other Non-Current
Liabilities |
|
Total
Fair Value |
||||||||||
|
|
|
(in millions)
|
|
|
||||||||||||||
Derivatives designated as hedging instruments:
|
|||||||||||||||||||
Foreign exchange contracts in an asset position
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
Foreign exchange contracts in a liability position
|
(
|
)
|
|
|
|
|
(
|
)
|
|
|
|
|
(
|
)
|
|||||
Net asset (liability)
|
|
|
|
|
|
|
(
|
)
|
|
|
|
|
|
|
|||||
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign exchange contracts in an asset position
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Foreign exchange contracts in a liability position
|
(
|
)
|
|
|
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|||||
Interest rate contracts in an asset position
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Interest rate contracts in a liability position
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|
(
|
)
|
|||||
Net asset (liability)
|
|
|
|
|
|
|
(
|
)
|
|
(
|
)
|
|
|
|
|||||
Total derivatives at fair value
|
$
|
|
|
|
$
|
|
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
$
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
February 2, 2018
|
||||||||||||||||||
|
Other Current
Assets |
|
Other Non-
Current Assets |
|
Other Current
Liabilities |
|
Other Non-Current
Liabilities |
|
Total
Fair Value |
||||||||||
|
|
|
(in millions)
|
|
|
||||||||||||||
Derivatives designated as hedging instruments:
|
|||||||||||||||||||
Foreign exchange contracts in an asset position
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
Foreign exchange contracts in a liability position
|
(
|
)
|
|
|
|
|
(
|
)
|
|
|
|
|
(
|
)
|
|||||
Net asset (liability)
|
|
|
|
|
|
|
(
|
)
|
|
|
|
|
(
|
)
|
|||||
Derivatives not designated as hedging instruments:
|
|||||||||||||||||||
Foreign exchange contracts in an asset position
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Foreign exchange contracts in a liability position
|
(
|
)
|
|
|
|
|
(
|
)
|
|
|
|
|
(
|
)
|
|||||
Interest rate contracts in an asset position
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Interest rate contracts in a liability position
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|
(
|
)
|
|||||
Net asset (liability)
|
|
|
|
|
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|||||
Total derivatives at fair value
|
$
|
|
|
|
$
|
|
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
November 2, 2018
|
||||||||||||||||||||||
|
Gross Amounts of Recognized Assets/ (Liabilities)
|
|
Gross Amounts Offset in the Statement of Financial Position
|
|
Net Amounts of Assets/ (Liabilities) Presented in the Statement of Financial Position
|
|
Gross Amounts not Offset in the Statement of Financial Position
|
|
Net Amount
|
||||||||||||||
|
Financial Instruments
|
|
Cash Collateral Received or Pledged
|
|
|||||||||||||||||||
|
(in millions)
|
||||||||||||||||||||||
Derivative instruments:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Financial assets
|
$
|
|
|
|
$
|
(
|
)
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
Financial liabilities
|
(
|
)
|
|
|
|
|
(
|
)
|
|
|
|
|
|
|
|
(
|
)
|
||||||
Total derivative instruments
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
February 2, 2018
|
||||||||||||||||||||||
|
Gross Amounts of Recognized Assets/ (Liabilities)
|
|
Gross Amounts Offset in the Statement of Financial Position
|
|
Net Amounts of Assets/ (Liabilities) Presented in the Statement of Financial Position
|
|
Gross Amounts not Offset in the Statement of Financial Position
|
|
Net Amount
|
||||||||||||||
|
Financial Instruments
|
|
Cash Collateral Received or Pledged
|
|
|||||||||||||||||||
|
(in millions)
|
||||||||||||||||||||||
Derivative instruments:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Financial assets
|
$
|
|
|
|
$
|
(
|
)
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
Financial liabilities
|
(
|
)
|
|
|
|
|
(
|
)
|
|
|
|
|
|
|
|
(
|
)
|
||||||
Total derivative instruments
|
$
|
(
|
)
|
|
$
|
|
|
|
$
|
(
|
)
|
|
$
|
|
|
|
$
|
|
|
|
$
|
(
|
)
|
|
Infrastructure Solutions Group (a)
|
|
Client Solutions Group
|
|
VMware
|
|
Other Businesses (b)
|
|
Total
|
||||||||||
|
(in millions)
|
||||||||||||||||||
Balance as of February 2, 2018
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
Goodwill acquired (c)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Impact of foreign currency translation
|
(
|
)
|
|
|
|
|
|
|
|
(
|
)
|
|
(
|
)
|
|||||
Goodwill divested
|
(
|
)
|
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|||||
Other adjustments (d)
|
(
|
)
|
|
|
|
|
(
|
)
|
|
|
|
|
(
|
)
|
|||||
Goodwill impaired (e)
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|
(
|
)
|
|||||
Balance as of November 2, 2018
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
(a)
|
Infrastructure Solutions Group is composed of the Core Storage, Servers, and Networking goodwill reporting unit.
|
(b)
|
Other Businesses consists of offerings by Pivotal, SecureWorks, RSA Security LLC (“RSA Security”), Virtustream Group Holdings, Inc. (“Virtustream”), and Boomi, Inc. (“Boomi”).
|
(c)
|
During the three months ended November 2, 2018, VMware, Inc. completed the acquisition of CloudHealth Technologies, Inc. (“CloudHealth Technologies”).
|
(d)
|
During the three months ended May 4, 2018, the Company made certain segment reporting changes, which included the movement of the results of Virtustream from the Infrastructure Solutions Group segment to Other businesses. The amount of goodwill attributable to Virtustream was reclassified to Other businesses to align with these reporting changes.
|
(e)
|
|
|
November 2, 2018
|
|
February 2, 2018
|
||||||||||||||||||||
|
Gross
|
|
Accumulated
Amortization
|
|
Net
|
|
Gross
|
|
Accumulated
Amortization
|
|
Net
|
||||||||||||
|
(in millions)
|
||||||||||||||||||||||
Customer relationships
|
$
|
|
|
|
$
|
(
|
)
|
|
$
|
|
|
|
$
|
|
|
|
$
|
(
|
)
|
|
$
|
|
|
Developed technology
|
|
|
|
(
|
)
|
|
|
|
|
|
|
|
(
|
)
|
|
|
|
||||||
Trade names
|
|
|
|
(
|
)
|
|
|
|
|
|
|
|
(
|
)
|
|
|
|
||||||
Leasehold assets (liabilities)
|
|
|
|
(
|
)
|
|
|
|
|
|
|
|
(
|
)
|
|
|
|
||||||
Definite-lived intangible assets
|
|
|
|
(
|
)
|
|
|
|
|
|
|
|
(
|
)
|
|
|
|
||||||
Indefinite-lived trade names
|
|
|
|
—
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
||||||
Total intangible assets
|
$
|
|
|
|
$
|
(
|
)
|
|
$
|
|
|
|
$
|
|
|
|
$
|
(
|
)
|
|
$
|
|
|
Fiscal Years
|
(in millions)
|
||
2019 (remaining three months)
|
$
|
|
|
2020
|
|
|
|
2021
|
|
|
|
2022
|
|
|
|
2023
|
|
|
|
Thereafter
|
|
|
|
Total
|
$
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||
|
November 2, 2018
|
|
November 2, 2018
|
||||
|
(in millions)
|
||||||
Deferred revenue:
|
|
|
|
||||
Deferred revenue at beginning of period
|
$
|
|
|
|
$
|
|
|
Revenue deferrals for new contracts and changes in estimates for pre-existing contracts (a)
|
|
|
|
|
|
||
Revenue recognized
|
(
|
)
|
|
(
|
)
|
||
Deferred revenue at end of period
|
$
|
|
|
|
$
|
|
|
Short-term deferred revenue
|
$
|
|
|
|
$
|
|
|
Long-term deferred revenue
|
$
|
|
|
|
$
|
|
|
(a)
|
Includes the impact of foreign currency exchange rate fluctuations.
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
November 2, 2018
|
|
November 3, 2017
|
|
November 2, 2018
|
|
November 3, 2017
|
||||||||
|
(in millions)
|
||||||||||||||
Warranty liability:
|
|
|
|
|
|
|
|
||||||||
Warranty liability at beginning of period
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
Costs accrued for new warranty contracts and changes in estimates for pre-existing warranties (a) (b)
|
|
|
|
|
|
|
|
|
|
|
|
||||
Service obligations honored
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
||||
Warranty liability at end of period
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
Current portion
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
Non-current portion
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
(a)
|
Changes in cost estimates related to pre-existing warranties are aggregated with accruals for new standard warranty contracts. The Company’s warranty liability process does not differentiate between estimates made for pre-existing warranties and new warranty obligations.
|
(b)
|
|
|
Foreign Currency Translation Adjustments
|
|
Investments
|
|
Cash Flow Hedges
|
|
Pension and Other Postretirement Plans
|
|
Accumulated Other Comprehensive Income (Loss)
|
||||||||||
|
(in millions)
|
||||||||||||||||||
Balances as of February 2, 2018
|
$
|
|
|
|
$
|
|
|
|
$
|
(
|
)
|
|
$
|
|
|
|
$
|
|
|
Adjustment for adoption of accounting standards (Note 1)
|
|
|
|
(
|
)
|
|
|
|
|
|
|
|
(
|
)
|
|||||
Other comprehensive income (loss) before reclassifications
|
(
|
)
|
|
(
|
)
|
|
|
|
|
|
|
|
(
|
)
|
|||||
Amounts reclassified from accumulated other comprehensive income (loss)
|
|
|
|
(
|
)
|
|
(
|
)
|
|
|
|
|
(
|
)
|
|||||
Total change for the period
|
(
|
)
|
|
(
|
)
|
|
|
|
|
|
|
|
(
|
)
|
|||||
Less: Change in comprehensive loss attributable to non-controlling interests
|
|
|
|
(
|
)
|
|
(
|
)
|
|
|
|
|
(
|
)
|
|||||
Balances as of November 2, 2018
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
$
|
|
|
|
$
|
|
|
|
$
|
(
|
)
|
|
Three Months Ended
|
||||||||||||||||||||||
|
November 2, 2018
|
|
November 3, 2017
|
||||||||||||||||||||
|
Investments
|
|
Cash Flow Hedges
|
|
Total
|
|
Investments
|
|
Cash Flow Hedges
|
|
Total
|
||||||||||||
|
(in millions)
|
||||||||||||||||||||||
Total reclassifications, net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net revenue
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
Cost of net revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|
(
|
)
|
||||||
Interest and other, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total reclassifications, net of tax
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Nine Months Ended
|
||||||||||||||||||||||
|
November 2, 2018
|
|
November 3, 2017
|
||||||||||||||||||||
|
Investments
|
|
Cash Flow Hedges
|
|
Total
|
|
Investments
|
|
Cash Flow Hedges
|
|
Total
|
||||||||||||
|
(in millions)
|
||||||||||||||||||||||
Total reclassifications, net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net revenue
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
Cost of net revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|
(
|
)
|
||||||
Interest and other, net
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|
|
|
|
(
|
)
|
||||||
Total reclassifications, net of tax
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
Nine Months Ended
|
||
|
November 2, 2018
|
||
|
(in millions)
|
||
Net loss attributable to Dell Technologies Inc.
|
$
|
(
|
)
|
Transfers (to) from the non-controlling interests:
|
|
||
Increase in Dell Technologies Inc. additional paid-in-capital for equity issuances and other equity activity
|
|
|
|
Decrease in Dell Technologies Inc. additional paid-in-capital for equity issuances and other equity activity
|
(
|
)
|
|
Net transfers from non-controlling interests
|
|
|
|
Change from net loss attributable to Dell Technologies Inc. and transfers to/from the non-controlling interests
|
$
|
(
|
)
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
November 2, 2018
|
|
November 3, 2017
|
|
November 2, 2018
|
|
November 3, 2017
|
||||||||
Earnings (loss) per share attributable to Dell Technologies Inc. - basic:
|
|
|
|
|
|||||||||||
Class V Common Stock - basic
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
DHI Group - basic
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
|
|
|
|
|
|
|
||||||||
Earnings (loss) per share attributable to Dell Technologies Inc. - diluted:
|
|
|
|
|
|||||||||||
Class V Common Stock - diluted
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
DHI Group - diluted
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
November 2, 2018
|
|
November 3, 2017
|
|
November 2, 2018
|
|
November 3, 2017
|
||||||||
|
(in millions)
|
||||||||||||||
Numerator: Class V Common Stock
|
|
|
|
|
|
|
|
||||||||
Net income attributable to Class V Common Stock - basic
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
Incremental dilution from VMware, Inc. attributable to Class V Common Stock (a)
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
||||
Net income attributable to Class V Common Stock - diluted
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
|
|
|
|
|
|
|
||||||||
Numerator: DHI Group
|
|
|
|
|
|
|
|
||||||||
Net loss attributable to DHI Group - basic
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
Incremental dilution from VMware, Inc. attributable to DHI Group (a)
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
||||
Net loss attributable to DHI Group - diluted
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
|
|
|
|
|
|
|
||||||||
Denominator: Class V Common Stock weighted-average shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted-average shares outstanding - basic
|
|
|
|
|
|
|
|
|
|
|
|
||||
Dilutive effect of options, restricted stock units, restricted stock, and other (b)
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted-average shares outstanding - diluted
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted-average shares outstanding - antidilutive (b)
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Denominator: DHI Group weighted-average shares outstanding
|
|
|
|
|
|
|
|
||||||||
Weighted-average shares outstanding - basic
|
|
|
|
|
|
|
|
|
|
|
|
||||
Dilutive effect of options, restricted stock units, restricted stock, and other
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted-average shares outstanding - diluted
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted-average shares outstanding - antidilutive (c)
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
The incremental dilution from VMware, Inc. represents the impact of VMware, Inc.’s dilutive securities on the diluted earnings (loss) per share of the DHI Group and the Class V Common Stock, respectively, and is calculated by multiplying the difference between VMware, Inc.’s basic and diluted earnings (loss) per share by the number of shares of VMware, Inc. common stock held by the Company.
|
(b)
|
The dilutive effect of Class V Common Stock-based incentive awards was not material to the calculation of the weighted-average Class V Common Stock shares outstanding. The antidilutive effect of these awards was also not material.
|
(c)
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
November 2, 2018
|
|
November 3, 2017
|
|
November 2, 2018
|
|
November 3, 2017
|
||||||||
|
(in millions)
|
||||||||||||||
Net income attributable to Class V Common Stock
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
Net loss attributable to DHI Group
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
||||
Net loss attributable to Dell Technologies Inc.
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
Authorized
|
|
Issued
|
|
Outstanding
|
|||
|
(in millions of shares)
|
|||||||
Common stock as of February 2, 2018
|
||||||||
Class A
|
|
|
|
|
|
|
|
|
Class B
|
|
|
|
|
|
|
|
|
Class C
|
|
|
|
|
|
|
|
|
Class D
|
|
|
|
|
|
|
|
|
Class V
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Common stock as of November 2, 2018
|
||||||||
Class A
|
|
|
|
|
|
|
|
|
Class B
|
|
|
|
|
|
|
|
|
Class C
|
|
|
|
|
|
|
|
|
Class D
|
|
|
|
|
|
|
|
|
Class V
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
•
|
For stock options to purchase Class C Common Stock subject to service requirements, the intrinsic value of the option is multiplied by the portion of the option for which services have been rendered. Upon exercise of the option, the amount in temporary equity represents the fair value of the Class C Common Stock.
|
•
|
For stock appreciation rights, restricted stock units (“RSUs”), or RSAs, any of which stock award types are subject to service requirements, the fair value of the share is multiplied by the portion of the share for which services have been rendered.
|
•
|
For share-based arrangements that are subject to the occurrence of a contingent event, those amounts are not reclassified to temporary equity until the contingency has been satisfied. Contingent events include the achievement of performance-based metrics.
|
|
November 2, 2018
|
|
February 2, 2018
|
||||
|
(in millions)
|
||||||
Redeemable shares classified as temporary equity
|
$
|
|
|
|
$
|
|
|
|
|
|
|
||||
Issued and outstanding unrestricted common shares
|
|
|
|
|
|
||
Restricted stock units
|
|
|
|
|
|
||
Restricted stock awards
|
|
|
|
|
|
||
Outstanding stock options
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
November 2, 2018
|
|
November 3, 2017
|
|
November 2, 2018
|
|
November 3, 2017
|
||||||||
|
(in millions)
|
||||||||||||||
Consolidated net revenue:
|
|
|
|
|
|
|
|
|
|
|
|||||
Infrastructure Solutions Group
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
Client Solutions Group
|
|
|
|
|
|
|
|
|
|
|
|
||||
VMware
|
|
|
|
|
|
|
|
|
|
|
|
||||
Reportable segment net revenue
|
|
|
|
|
|
|
|
|
|
|
|
||||
Other businesses (a)
|
|
|
|
|
|
|
|
|
|
|
|
||||
Unallocated transactions (b)
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
||||
Impact of purchase accounting (c)
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
||||
Total net revenue
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
|
|
|
|
|
|
|
||||||||
Consolidated operating income (loss):
|
|
|
|
|
|
|
|
||||||||
Infrastructure Solutions Group
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
Client Solutions Group
|
|
|
|
|
|
|
|
|
|
|
|
||||
VMware
|
|
|
|
|
|
|
|
|
|
|
|
||||
Reportable segment operating income
|
|
|
|
|
|
|
|
|
|
|
|
||||
Other businesses (a)
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
||||
Unallocated transactions (b)
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
||||
Impact of purchase accounting (c)
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
||||
Amortization of intangibles
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
||||
Transaction-related expenses (d)
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
||||
Other corporate expenses (e)
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
||||
Total operating loss
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
(a)
|
Pivotal, SecureWorks, RSA Security, Virtustream, and Boomi constitute “Other businesses” and do not meet the requirements for a reportable segment, either individually or collectively. The results of Other businesses are not material to the Company’s overall results.
|
(b)
|
Unallocated transactions includes long-term incentives, certain short-term incentive compensation expenses, and 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 expenses includes acquisition, integration, and divestiture related costs.
|
(e)
|
Other corporate expenses includes goodwill impairment charges, severance, facility action costs, and stock-based compensation expense.
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
November 2, 2018
|
|
November 3, 2017
|
|
November 2, 2018
|
|
November 3, 2017
|
||||||||
|
(in millions)
|
||||||||||||||
Net revenue:
|
|
|
|
|
|
|
|
|
|
|
|||||
Infrastructure Solutions Group:
|
|
|
|
|
|
|
|
||||||||
Servers and networking
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
Storage
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total ISG net revenue
|
|
|
|
|
|
|
|
|
|
|
|
||||
Client Solutions Group:
|
|
|
|
|
|
|
|
||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
||||
Consumer
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total CSG net revenue
|
|
|
|
|
|
|
|
|
|
|
|
||||
VMware:
|
|
|
|
|
|
|
|
||||||||
Total VMware net revenue
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total segment net revenue
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
November 2, 2018
|
|
February 2, 2018
|
||||
|
(in millions)
|
||||||
Inventories, net:
|
|
|
|
||||
Production materials
|
$
|
|
|
|
$
|
|
|
Work-in-process
|
|
|
|
|
|
||
Finished goods
|
|
|
|
|
|
||
Total inventories, net
|
$
|
|
|
|
$
|
|
|
Other non-current liabilities:
|
|
|
|
||||
Warranty liability
|
$
|
|
|
|
$
|
|
|
Deferred and other tax liabilities
|
|
|
|
|
|
||
Other
|
|
|
|
|
|
||
Total other non-current liabilities
|
$
|
|
|
|
$
|
|
|
|
November 2, 2018
|
|
February 2, 2018
|
||||
|
(in millions)
|
||||||
Cash and cash equivalents
|
$
|
|
|
|
$
|
|
|
Restricted cash - current assets
|
|
|
|
|
|
||
Restricted cash - other non-current assets
|
|
|
|
|
|
||
Total cash, cash equivalents, and restricted cash
|
$
|
|
|
|
$
|
|
|
•
|
Infrastructure Solutions Group (“ISG”)
— Our Infrastructure Solutions Group, provides comprehensive data solutions and services, including storage, server, networking and services. Our comprehensive portfolio of advanced storage solutions includes traditional storage solutions as well as next-generation storage solutions (such as all-flash arrays, scale-out file, object platforms, and software-defined solutions), while our server portfolio includes high-performance rack, blade, tower, and hyperscale servers. Our networking portfolio helps our business customers transform and modernize their infrastructure, mobilize and enrich end-user experiences, and accelerate business applications and processes. ISG also offers attached software, peripherals, and services, including support and deployment, configuration, and extended warranty services.
|
•
|
Client Solutions Group (“CSG”)
— CSG includes branded hardware (such as desktops, workstations, and notebooks) and branded peripherals (such as displays and projectors), as well as third-party software and peripherals. CSG also offers attached services, including support and deployment, configuration, and extended warranty services.
|
•
|
VMware
— The VMware reportable segment (“VMware”) reflects the operations of VMware, Inc. (NYSE: VMW) within Dell Technologies. See Exhibit 99.1 filed with this report for further details on the differences between VMware reportable segment results and VMware, Inc. results.
|
•
|
Pivotal
(NYSE: PVTL) provides a leading cloud-native platform that makes software development and IT operations a strategic advantage for customers. Pivotal’s cloud-native platform, Pivotal Cloud Foundry, accelerates and streamlines software development by reducing the complexity of building, deploying and operating new cloud-native applications and modernizing legacy applications. On April 24, 2018, Pivotal completed a registered underwritten initial public offering of its Class A common stock.
|
•
|
SecureWorks
(NASDAQ: SCWX) is a leading global provider of intelligence-driven information security solutions singularly focused on protecting its clients from cyber attacks. SecureWorks’s solutions enable organizations of varying size and complexity to fortify their cyber defenses to prevent security breaches, detect malicious activity in near real time, prioritize and respond rapidly to security incidents and predict emerging threats.
|
•
|
RSA Security
provides essential cybersecurity solutions engineered to enable organizations to detect, investigate, and respond to advanced attacks, confirm and manage identities, and, ultimately, help reduce IP theft, fraud, and cybercrime.
|
•
|
Virtustream
offers cloud software and infrastructure-as-a-service solutions that enable customers to migrate, run, and manage mission-critical applications in cloud-based IT environments. Beginning in the first quarter of Fiscal 2019, Virtustream results are reported within other businesses, rather than within ISG. This change in reporting structure did not impact our previously reported consolidated financial results, but our prior period segment results have been recast to reflect the change.
|
•
|
Boomi
specializes in cloud-based integration, connecting information between existing on-premise and cloud-based applications to ensure business processes are optimized, data is accurate and workflow is reliable.
|
•
|
Amortization of Intangible Assets
—
Amortization of intangible assets primarily consists of amortization of customer relationships, developed technology, and trade names. In connection with the EMC merger transaction and the acquisition of Dell Inc. by Dell Technologies Inc. on October 29, 2013, referred to as the going-private transaction, all of the tangible and intangible assets and liabilities of EMC and Dell, respectively, were accounted for and recognized at fair value on the transaction dates. Accordingly, for the periods presented, amortization of intangible assets represents amortization associated with intangible assets recognized in connection with the EMC merger transaction and the going-private transaction. Amortization charges for purchased intangible assets are significantly impacted by the timing and magnitude of our acquisitions, and these charges may vary in amount from period to period. We exclude these charges for purposes of calculating the non-GAAP financial measures presented below to facilitate a more meaningful evaluation of our current operating performance and comparisons to our past operating performance.
|
•
|
Impact of Purchase Accounting
—
The impact of purchase accounting includes purchase accounting adjustments, related to the EMC merger transaction and, to a lesser extent, the going-private transaction, recorded under the acquisition method of accounting in accordance with the accounting guidance for business combinations. This guidance prescribes that the purchase price be allocated to assets acquired and liabilities assumed based on the estimated fair value of such assets and liabilities on the date of the transaction. Accordingly, all of the assets and liabilities acquired in the EMC merger transaction and the going-private transaction were accounted for and recognized at fair value as of the respective transaction dates, and the fair value adjustments are being amortized over the estimated useful lives in the periods following the transactions. The fair value adjustments primarily relate to deferred revenue, inventory, and property, plant, and equipment. The purchase accounting adjustments and related amortization of those adjustments are reflected in our GAAP results; however, we evaluate the operating results of the underlying businesses on a non-GAAP basis, after removing such adjustments. We believe that excluding the impact of purchase accounting provides results that are useful in understanding our current operating performance and provides more meaningful comparisons to our past operating performance.
|
•
|
Transaction-related Expenses
—
Transaction-related expenses consist of acquisition, integration, and divestiture related costs, and are expensed as incurred. These expenses primarily represent costs for legal, banking, consulting, and advisory services, as well as certain compensatory retention awards directly related to the EMC merger transaction. During
the first nine months of Fiscal 2019
, this category also included charges related to integration of our inventory policies and management process. We incurred expenses of approximately $116 million for customer evaluation units and approximately $100 million for manufacturing and engineering inventory during the first and third quarter of Fiscal 2019, respectively.
|
•
|
Other Corporate Expenses
— Other corporate expenses consists of goodwill impairment charges, severance, facility action costs, and stock-based compensation expense associated with equity awards. In the third quarter of Fiscal 2019, we incurred a goodwill impairment charge of $190 million. See
Note 8
of the
Notes to the Condensed Consolidated Financial Statements
for additional information about goodwill impairment testing. Severance costs are primarily related to severance and benefits for employees terminated pursuant to cost savings initiatives. Facility action costs were $7 million and $21 million, respectively, during
the third quarter and first nine months of Fiscal 2019
, compared to $67 million and $175 million, respectively, during
the third quarter and first nine months of Fiscal 2018
. We continue to integrate owned and leased facilities and may incur additional costs as we seek opportunities for operational efficiencies. Other corporate expenses vary from period to period and are significantly impacted by the timing and nature of these events. Therefore, although we may incur these types of expenses in the future, we believe that eliminating these charges for purposes of calculating the non-GAAP financial measures presented below facilitates a more meaningful evaluation of our current operating performance and comparisons to our past operating performance.
|
•
|
Aggregate Adjustment for Income Taxes
— The aggregate adjustment for income taxes is the estimated combined income tax effect for the adjustments described above. During
the first nine months of Fiscal 2019
, this category also includes approximately $154 million of tax benefits resulting from the impact of adopting the new revenue standard in the first quarter of Fiscal 2019. The tax effects are determined based on the tax jurisdictions where the above items were incurred.
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||||||||
|
November 2,
2018 |
|
% Change
|
|
November 3,
2017 |
|
November 2,
2018 |
|
% Change
|
|
November 3,
2017 |
||||||||||
|
(in millions, except percentages)
|
||||||||||||||||||||
Product net revenue
|
$
|
17,625
|
|
|
17
|
%
|
|
$
|
15,120
|
|
|
$
|
52,445
|
|
|
20
|
%
|
|
$
|
43,856
|
|
Non-GAAP adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Impact of purchase accounting
|
15
|
|
|
|
|
33
|
|
|
50
|
|
|
|
|
138
|
|
||||||
Non-GAAP product net revenue
|
$
|
17,640
|
|
|
16
|
%
|
|
$
|
15,153
|
|
|
$
|
52,495
|
|
|
19
|
%
|
|
$
|
43,994
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Services net revenue
|
$
|
4,857
|
|
|
9
|
%
|
|
$
|
4,436
|
|
|
$
|
14,335
|
|
|
8
|
%
|
|
$
|
13,221
|
|
Non-GAAP adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Impact of purchase accounting
|
154
|
|
|
|
|
262
|
|
|
486
|
|
|
|
|
847
|
|
||||||
Non-GAAP services net revenue
|
$
|
5,011
|
|
|
7
|
%
|
|
$
|
4,698
|
|
|
$
|
14,821
|
|
|
5
|
%
|
|
$
|
14,068
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net revenue
|
$
|
22,482
|
|
|
15
|
%
|
|
$
|
19,556
|
|
|
$
|
66,780
|
|
|
17
|
%
|
|
$
|
57,077
|
|
Non-GAAP adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Impact of purchase accounting
|
169
|
|
|
|
|
295
|
|
|
536
|
|
|
|
|
985
|
|
||||||
Non-GAAP net revenue
|
$
|
22,651
|
|
|
14
|
%
|
|
$
|
19,851
|
|
|
$
|
67,316
|
|
|
16
|
%
|
|
$
|
58,062
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Product gross margin
|
$
|
3,060
|
|
|
20
|
%
|
|
$
|
2,547
|
|
|
$
|
9,331
|
|
|
40
|
%
|
|
$
|
6,685
|
|
Non-GAAP adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Amortization of intangibles
|
726
|
|
|
|
|
914
|
|
|
2,154
|
|
|
|
|
2,784
|
|
||||||
Impact of purchase accounting
|
17
|
|
|
|
|
45
|
|
|
63
|
|
|
|
|
173
|
|
||||||
Transaction-related expenses
|
99
|
|
|
|
|
1
|
|
|
236
|
|
|
|
|
9
|
|
||||||
Other corporate expenses
|
2
|
|
|
|
|
2
|
|
|
8
|
|
|
|
|
8
|
|
||||||
Non-GAAP product gross margin
|
$
|
3,904
|
|
|
11
|
%
|
|
$
|
3,509
|
|
|
$
|
11,792
|
|
|
22
|
%
|
|
$
|
9,659
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Services gross margin
|
$
|
2,883
|
|
|
8
|
%
|
|
$
|
2,673
|
|
|
$
|
8,613
|
|
|
8
|
%
|
|
$
|
7,960
|
|
Non-GAAP adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Impact of purchase accounting
|
154
|
|
|
|
|
262
|
|
|
486
|
|
|
|
|
847
|
|
||||||
Transaction-related expenses
|
3
|
|
|
|
|
4
|
|
|
3
|
|
|
|
|
13
|
|
||||||
Other corporate expenses
|
56
|
|
|
|
|
26
|
|
|
91
|
|
|
|
|
55
|
|
||||||
Non-GAAP services gross margin
|
$
|
3,096
|
|
|
4
|
%
|
|
$
|
2,965
|
|
|
$
|
9,193
|
|
|
4
|
%
|
|
$
|
8,875
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Gross margin
|
$
|
5,943
|
|
|
14
|
%
|
|
$
|
5,220
|
|
|
$
|
17,944
|
|
|
23
|
%
|
|
$
|
14,645
|
|
Non-GAAP adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Amortization of intangibles
|
726
|
|
|
|
|
914
|
|
|
2,154
|
|
|
|
|
2,784
|
|
||||||
Impact of purchase accounting
|
171
|
|
|
|
|
307
|
|
|
549
|
|
|
|
|
1,020
|
|
||||||
Transaction-related expenses
|
102
|
|
|
|
|
5
|
|
|
239
|
|
|
|
|
22
|
|
||||||
Other corporate expenses
|
58
|
|
|
|
|
28
|
|
|
99
|
|
|
|
|
63
|
|
||||||
Non-GAAP gross margin
|
$
|
7,000
|
|
|
8
|
%
|
|
$
|
6,474
|
|
|
$
|
20,985
|
|
|
13
|
%
|
|
$
|
18,534
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||||||||
|
November 2,
2018 |
|
% Change
|
|
November 3,
2017 |
|
November 2,
2018 |
|
% Change
|
|
November 3,
2017 |
||||||||||
|
(in millions, except percentages)
|
||||||||||||||||||||
Operating expenses
|
$
|
6,299
|
|
|
12
|
%
|
|
$
|
5,630
|
|
|
$
|
18,466
|
|
|
9
|
%
|
|
$
|
16,992
|
|
Non-GAAP adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Amortization of intangibles
|
(820
|
)
|
|
|
|
(820
|
)
|
|
(2,440
|
)
|
|
|
|
(2,466
|
)
|
||||||
Impact of purchase accounting
|
(22
|
)
|
|
|
|
(59
|
)
|
|
(81
|
)
|
|
|
|
(175
|
)
|
||||||
Transaction-related expenses
|
(65
|
)
|
|
|
|
(81
|
)
|
|
(198
|
)
|
|
|
|
(393
|
)
|
||||||
Other corporate expenses
|
(456
|
)
|
|
|
|
(305
|
)
|
|
(960
|
)
|
|
|
|
(824
|
)
|
||||||
Non-GAAP operating expenses
|
$
|
4,936
|
|
|
13
|
%
|
|
$
|
4,365
|
|
|
$
|
14,787
|
|
|
13
|
%
|
|
$
|
13,134
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating loss
|
$
|
(356
|
)
|
|
13
|
%
|
|
$
|
(410
|
)
|
|
$
|
(522
|
)
|
|
78
|
%
|
|
$
|
(2,347
|
)
|
Non-GAAP adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Amortization of intangibles
|
1,546
|
|
|
|
|
1,734
|
|
|
4,594
|
|
|
|
|
5,250
|
|
||||||
Impact of purchase accounting
|
193
|
|
|
|
|
366
|
|
|
630
|
|
|
|
|
1,195
|
|
||||||
Transaction-related expenses
|
167
|
|
|
|
|
86
|
|
|
437
|
|
|
|
|
415
|
|
||||||
Other corporate expenses
|
514
|
|
|
|
|
333
|
|
|
1,059
|
|
|
|
|
887
|
|
||||||
Non-GAAP operating income
|
$
|
2,064
|
|
|
(2
|
)%
|
|
$
|
2,109
|
|
|
$
|
6,198
|
|
|
15
|
%
|
|
$
|
5,400
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net loss
|
$
|
(895
|
)
|
|
(5
|
)%
|
|
$
|
(851
|
)
|
|
$
|
(1,894
|
)
|
|
32
|
%
|
|
$
|
(2,793
|
)
|
Non-GAAP adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Amortization of intangibles
|
1,546
|
|
|
|
|
1,734
|
|
|
4,594
|
|
|
|
|
5,250
|
|
||||||
Impact of purchase accounting
|
193
|
|
|
|
|
366
|
|
|
630
|
|
|
|
|
1,195
|
|
||||||
Transaction-related expenses
|
167
|
|
|
|
|
86
|
|
|
437
|
|
|
|
|
415
|
|
||||||
Other corporate expenses
|
514
|
|
|
|
|
333
|
|
|
1,059
|
|
|
|
|
887
|
|
||||||
Aggregate adjustment for income taxes
|
(325
|
)
|
|
|
|
(469
|
)
|
|
(1,103
|
)
|
|
|
|
(1,882
|
)
|
||||||
Non-GAAP net income
|
$
|
1,200
|
|
|
—
|
%
|
|
$
|
1,199
|
|
|
$
|
3,723
|
|
|
21
|
%
|
|
$
|
3,072
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||||||||
|
November 2,
2018 |
|
% Change
|
|
November 3,
2017 |
|
November 2,
2018 |
|
% Change
|
|
November 3,
2017 |
||||||||||
|
(in millions, except percentages)
|
||||||||||||||||||||
Net loss
|
$
|
(895
|
)
|
|
(5
|
)%
|
|
$
|
(851
|
)
|
|
$
|
(1,894
|
)
|
|
32
|
%
|
|
$
|
(2,793
|
)
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest and other, net (a)
|
639
|
|
|
|
|
682
|
|
|
1,564
|
|
|
|
|
1,799
|
|
||||||
Income tax benefit
|
(100
|
)
|
|
|
|
(241
|
)
|
|
(192
|
)
|
|
|
|
(1,353
|
)
|
||||||
Depreciation and amortization
|
1,961
|
|
|
|
|
2,137
|
|
|
5,806
|
|
|
|
|
6,491
|
|
||||||
EBITDA
|
$
|
1,605
|
|
|
(7
|
)%
|
|
$
|
1,727
|
|
|
$
|
5,284
|
|
|
28
|
%
|
|
$
|
4,144
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
EBITDA
|
$
|
1,605
|
|
|
(7
|
)%
|
|
$
|
1,727
|
|
|
$
|
5,284
|
|
|
28
|
%
|
|
$
|
4,144
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Stock-based compensation expense
|
256
|
|
|
|
|
221
|
|
|
671
|
|
|
|
|
630
|
|
||||||
Impact of purchase accounting (b)
|
169
|
|
|
|
|
298
|
|
|
536
|
|
|
|
|
990
|
|
||||||
Transaction-related expenses (c)
|
158
|
|
|
|
|
86
|
|
|
409
|
|
|
|
|
415
|
|
||||||
Other corporate expenses (d)
|
238
|
|
|
|
|
109
|
|
|
368
|
|
|
|
|
237
|
|
||||||
Adjusted EBITDA
|
$
|
2,426
|
|
|
(1
|
)%
|
|
$
|
2,441
|
|
|
$
|
7,268
|
|
|
13
|
%
|
|
$
|
6,416
|
|
(a)
|
See “Results of Operations — Interest and Other, Net” for more information on the components of interest and other, net.
|
(b)
|
This amount includes the non-cash purchase accounting adjustments related to the EMC merger transaction and the going-private transaction.
|
(c)
|
Transaction-related expenses consist of acquisition, integration, and divestiture related costs.
|
(d)
|
Consists of goodwill impairment charges, severance and facility action costs.
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||||||||||||||||||||
|
November 2, 2018
|
|
|
|
November 3, 2017
|
|
November 2, 2018
|
|
|
|
November 3, 2017
|
||||||||||||||||||||||
|
Dollars
|
|
% of
Net Revenue |
|
%
Change |
|
Dollars
|
|
% of
Net Revenue |
|
Dollars
|
|
% of
Net Revenue |
|
%
Change |
|
Dollars
|
|
% of
Net Revenue |
||||||||||||||
|
(in millions, except percentages)
|
||||||||||||||||||||||||||||||||
Net revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Product
|
$
|
17,625
|
|
|
78.4
|
%
|
|
17
|
%
|
|
$
|
15,120
|
|
|
77.3
|
%
|
|
$
|
52,445
|
|
|
78.5
|
%
|
|
20
|
%
|
|
$
|
43,856
|
|
|
76.8
|
%
|
Services
|
4,857
|
|
|
21.6
|
%
|
|
9
|
%
|
|
4,436
|
|
|
22.7
|
%
|
|
14,335
|
|
|
21.5
|
%
|
|
8
|
%
|
|
13,221
|
|
|
23.2
|
%
|
||||
Total net revenue
|
$
|
22,482
|
|
|
100.0
|
%
|
|
15
|
%
|
|
$
|
19,556
|
|
|
100.0
|
%
|
|
$
|
66,780
|
|
|
100.0
|
%
|
|
17
|
%
|
|
$
|
57,077
|
|
|
100.0
|
%
|
Gross margin:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Product (a)
|
$
|
3,060
|
|
|
17.4
|
%
|
|
20
|
%
|
|
$
|
2,547
|
|
|
16.8
|
%
|
|
$
|
9,331
|
|
|
17.8
|
%
|
|
40
|
%
|
|
$
|
6,685
|
|
|
15.2
|
%
|
Services (b)
|
2,883
|
|
|
59.4
|
%
|
|
8
|
%
|
|
2,673
|
|
|
60.3
|
%
|
|
8,613
|
|
|
60.1
|
%
|
|
8
|
%
|
|
7,960
|
|
|
60.2
|
%
|
||||
Total gross margin
|
$
|
5,943
|
|
|
26.4
|
%
|
|
14
|
%
|
|
$
|
5,220
|
|
|
26.7
|
%
|
|
$
|
17,944
|
|
|
26.9
|
%
|
|
23
|
%
|
|
$
|
14,645
|
|
|
25.7
|
%
|
Operating expenses
|
$
|
6,299
|
|
|
28.0
|
%
|
|
12
|
%
|
|
$
|
5,630
|
|
|
28.8
|
%
|
|
$
|
18,466
|
|
|
27.7
|
%
|
|
9
|
%
|
|
$
|
16,992
|
|
|
29.8
|
%
|
Operating loss
|
$
|
(356
|
)
|
|
(1.6
|
)%
|
|
13
|
%
|
|
$
|
(410
|
)
|
|
(2.1
|
)%
|
|
$
|
(522
|
)
|
|
(0.8
|
)%
|
|
78
|
%
|
|
$
|
(2,347
|
)
|
|
(4.1
|
)%
|
Net loss
|
$
|
(895
|
)
|
|
(4.0
|
)%
|
|
(5
|
)%
|
|
$
|
(851
|
)
|
|
(4.4
|
)%
|
|
$
|
(1,894
|
)
|
|
(2.8
|
)%
|
|
32
|
%
|
|
$
|
(2,793
|
)
|
|
(4.9
|
)%
|
Net loss attributable to Dell Technologies Inc.
|
$
|
(876
|
)
|
|
(3.9
|
)%
|
|
(4
|
)%
|
|
$
|
(846
|
)
|
|
(4.3
|
)%
|
|
$
|
(2,011
|
)
|
|
(3.0
|
)%
|
|
27
|
%
|
|
$
|
(2,749
|
)
|
|
(4.8
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Non-GAAP Financial Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Non-GAAP net revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Product
|
$
|
17,640
|
|
|
77.9
|
%
|
|
16
|
%
|
|
$
|
15,153
|
|
|
76.3
|
%
|
|
$
|
52,495
|
|
|
78.0
|
%
|
|
19
|
%
|
|
$
|
43,994
|
|
|
75.8
|
%
|
Services
|
5,011
|
|
|
22.1
|
%
|
|
7
|
%
|
|
4,698
|
|
|
23.7
|
%
|
|
14,821
|
|
|
22.0
|
%
|
|
5
|
%
|
|
14,068
|
|
|
24.2
|
%
|
||||
Total non-GAAP net revenue
|
$
|
22,651
|
|
|
100.0
|
%
|
|
14
|
%
|
|
$
|
19,851
|
|
|
100.0
|
%
|
|
$
|
67,316
|
|
|
100.0
|
%
|
|
16
|
%
|
|
$
|
58,062
|
|
|
100.0
|
%
|
Non-GAAP gross margin:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Product (a)
|
$
|
3,904
|
|
|
22.1
|
%
|
|
11
|
%
|
|
$
|
3,509
|
|
|
23.2
|
%
|
|
$
|
11,792
|
|
|
22.5
|
%
|
|
22
|
%
|
|
$
|
9,659
|
|
|
22.0
|
%
|
Services (b)
|
3,096
|
|
|
61.8
|
%
|
|
4
|
%
|
|
2,965
|
|
|
63.1
|
%
|
|
9,193
|
|
|
62.0
|
%
|
|
4
|
%
|
|
8,875
|
|
|
63.1
|
%
|
||||
Total non-GAAP gross margin
|
$
|
7,000
|
|
|
30.9
|
%
|
|
8
|
%
|
|
$
|
6,474
|
|
|
32.6
|
%
|
|
$
|
20,985
|
|
|
31.2
|
%
|
|
13
|
%
|
|
$
|
18,534
|
|
|
31.9
|
%
|
Non-GAAP operating expenses
|
$
|
4,936
|
|
|
21.8
|
%
|
|
13
|
%
|
|
$
|
4,365
|
|
|
22.0
|
%
|
|
$
|
14,787
|
|
|
22.0
|
%
|
|
13
|
%
|
|
$
|
13,134
|
|
|
22.6
|
%
|
Non-GAAP operating income
|
$
|
2,064
|
|
|
9.1
|
%
|
|
(2
|
)%
|
|
$
|
2,109
|
|
|
10.6
|
%
|
|
$
|
6,198
|
|
|
9.2
|
%
|
|
15
|
%
|
|
$
|
5,400
|
|
|
9.3
|
%
|
Non-GAAP net income
|
$
|
1,200
|
|
|
5.3
|
%
|
|
—
|
%
|
|
$
|
1,199
|
|
|
6.0
|
%
|
|
$
|
3,723
|
|
|
5.5
|
%
|
|
21
|
%
|
|
$
|
3,072
|
|
|
5.3
|
%
|
EBITDA
|
$
|
1,605
|
|
|
7.1
|
%
|
|
(7
|
)%
|
|
$
|
1,727
|
|
|
8.7
|
%
|
|
$
|
5,284
|
|
|
7.8
|
%
|
|
28
|
%
|
|
$
|
4,144
|
|
|
7.1
|
%
|
Adjusted EBITDA
|
$
|
2,426
|
|
|
10.7
|
%
|
|
(1
|
)%
|
|
$
|
2,441
|
|
|
12.3
|
%
|
|
$
|
7,268
|
|
|
10.8
|
%
|
|
13
|
%
|
|
$
|
6,416
|
|
|
11.1
|
%
|
(a)
|
Product gross margin percentages represent product gross margin as a percentage of product net revenue, and non-GAAP product gross margin percentages represent non-GAAP product gross margin as a percentage of non-GAAP product net revenue.
|
(b)
|
Services gross margin percentages represent services gross margin as a percentage of services net revenue, and non-GAAP services gross margin percentages represent non-GAAP services gross margin as a percentage of non-GAAP services net revenue.
|
•
|
Product Net Revenue
— Product net revenue includes revenue from the sale of hardware products and software licenses. During
the third quarter of Fiscal 2019
, product net revenue and non-GAAP product net revenue increased
17%
and
16%
, respectively. During
the first nine months of Fiscal 2019
, product net revenue and non-GAAP product net revenue increased
20%
and
19%
, respectively. These increases were attributable to an increase in product revenue across all three business units, driven by strength in sales across all product categories.
|
•
|
Services Net Revenue
— Services net revenue includes revenue from our services offerings and support services related to hardware products and software licenses. During
the third quarter of Fiscal 2019
, services net revenue and non-GAAP services net revenue increased
9%
and
7%
, respectively. During
the first nine months of Fiscal 2019
, services net revenue and non-GAAP services net revenue increased
8%
and
5%
, respectively. These increases were primarily due to an increase in services revenue for hardware support and deployment and software maintenance due to growth in the business.
|
•
|
Products
— During
the third quarter of Fiscal 2019
, product gross margin increased
20%
to
$3.1 billion
, and product gross margin percentage increased
60
basis points to
17.4%
. The increase in product gross margin was driven primarily by increases in product revenue in ISG and VMware due to strength in sales of ISG servers and storage, and VMware software licenses. Product gross margin also benefited from a decrease in the impact of amortization of intangibles and purchase accounting adjustments. Product gross margin percentage increased primarily as a result of a decrease in the impact of amortization of intangibles and purchase accounting adjustments.
|
•
|
Services
— During
the third quarter of Fiscal 2019
, services gross margin increased
8%
to
$2.9 billion
, and services gross margin percentage decreased
90
basis points to
59.4%
. Services gross margin increased due to growth in services gross margin across all business units, particularly in hardware support and deployment and software maintenance. Services gross margin also benefited from a decrease in purchase accounting adjustments, which totaled
$154 million
and
$262 million
, respectively, during
the third quarter of Fiscal 2019 and Fiscal 2018
. Excluding these costs, transaction-related expenses, and other corporate expenses, non-GAAP services gross margin increased
4%
to
$3.1 billion
, and non-GAAP services gross margin percentage decreased
130
basis points to
61.8%
. Services gross margin percentage decreased primarily due to lower services gross margin percentages in all three business units.
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||||||||||||||||||||
|
November 2, 2018
|
|
|
|
November 3, 2017
|
|
November 2, 2018
|
|
|
|
November 3, 2017
|
||||||||||||||||||||||
|
Dollars
|
|
% of
Net Revenue |
|
%
Change |
|
Dollars
|
|
% of
Net Revenue |
|
Dollars
|
|
% of
Net Revenue |
|
%
Change |
|
Dollars
|
|
% of
Net Revenue |
||||||||||||||
|
(in millions, except percentages)
|
||||||||||||||||||||||||||||||||
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Selling, general, and administrative
|
$
|
5,159
|
|
|
22.9
|
%
|
|
13
|
%
|
|
$
|
4,559
|
|
|
23.3
|
%
|
|
$
|
15,064
|
|
|
22.6
|
%
|
|
10
|
%
|
|
$
|
13,695
|
|
|
24.0
|
%
|
Research and development
|
1,140
|
|
|
5.1
|
%
|
|
6
|
%
|
|
1,071
|
|
|
5.5
|
%
|
|
3,402
|
|
|
5.1
|
%
|
|
3
|
%
|
|
3,297
|
|
|
5.8
|
%
|
||||
Total operating expenses
|
$
|
6,299
|
|
|
28.0
|
%
|
|
12
|
%
|
|
$
|
5,630
|
|
|
28.8
|
%
|
|
$
|
18,466
|
|
|
27.7
|
%
|
|
9
|
%
|
|
$
|
16,992
|
|
|
29.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Other Financial Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Non-GAAP operating expenses
|
$
|
4,936
|
|
|
21.8
|
%
|
|
13
|
%
|
|
$
|
4,365
|
|
|
22.0
|
%
|
|
$
|
14,787
|
|
|
22.0
|
%
|
|
13
|
%
|
|
$
|
13,134
|
|
|
22.6
|
%
|
•
|
Selling, General, and Administrative
— Selling, general, and administrative (“SG&A”) expenses increased
13%
and
10%
, respectively, during
the third quarter and first nine months of Fiscal 2019
. The increases in SG&A expenses were primarily driven by investments in our go-to-market capabilities and higher performance-based compensation and commission costs, as well as a goodwill impairment charge of approximately
$190 million
recorded during the third quarter of Fiscal 2019.
|
•
|
Research and Development
—
Research and development (“R&D”) expenses are primarily composed of personnel-related expenses related to product development. R&D expenses as a percentage of net revenue for
the third quarter of Fiscal 2019 and Fiscal 2018
were approximately
5.1%
and
5.5%
, respectively. R&D expenses as a percentage of net revenue for
the first nine months of Fiscal 2019 and Fiscal 2018
were approximately
5.1%
and
5.8%
, respectively. The decreases in R&D expenses as a percentage of net revenue were attributable to revenue growth that outpaced the scale of R&D investments. As our industry continues to change and as the needs of our customers evolve, we intend to support R&D initiatives to innovate and introduce new and enhanced solutions into the market.
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
November 2, 2018
|
|
November 3, 2017
|
|
November 2, 2018
|
|
November 3, 2017
|
||||||||
|
(in millions)
|
||||||||||||||
Interest and other, net:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Investment income, primarily interest
|
$
|
84
|
|
|
$
|
57
|
|
|
$
|
247
|
|
|
$
|
142
|
|
Gain (loss) on investments, net
|
(17
|
)
|
|
(3
|
)
|
|
229
|
|
|
22
|
|
||||
Interest expense
|
(612
|
)
|
|
(607
|
)
|
|
(1,830
|
)
|
|
(1,802
|
)
|
||||
Foreign exchange
|
(63
|
)
|
|
(35
|
)
|
|
(174
|
)
|
|
(77
|
)
|
||||
Other
|
(31
|
)
|
|
(94
|
)
|
|
(36
|
)
|
|
(84
|
)
|
||||
Total interest and other, net
|
$
|
(639
|
)
|
|
$
|
(682
|
)
|
|
$
|
(1,564
|
)
|
|
$
|
(1,799
|
)
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||||||
|
November 2, 2018
|
|
% Change
|
|
November 3, 2017
|
|
November 2, 2018
|
|
% Change
|
|
November 3, 2017
|
||||||||
|
(in millions, except percentages)
|
||||||||||||||||||
Net Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Servers and networking
|
$
|
5,054
|
|
|
30%
|
|
$
|
3,875
|
|
|
$
|
14,700
|
|
|
35%
|
|
$
|
10,908
|
|
Storage
|
3,883
|
|
|
6%
|
|
3,660
|
|
|
12,131
|
|
|
10%
|
|
11,055
|
|
||||
Total ISG net revenue
|
$
|
8,937
|
|
|
19%
|
|
$
|
7,535
|
|
|
$
|
26,831
|
|
|
22%
|
|
$
|
21,963
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Operating Income:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
ISG operating income
|
$
|
935
|
|
|
7%
|
|
$
|
870
|
|
|
$
|
2,886
|
|
|
43%
|
|
$
|
2,023
|
|
% of segment net revenue
|
10.5
|
%
|
|
|
|
11.5
|
%
|
|
10.8
|
%
|
|
|
|
9.2
|
%
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||||||
|
November 2, 2018
|
|
% Change
|
|
November 3, 2017
|
|
November 2, 2018
|
|
% Change
|
|
November 3, 2017
|
||||||||
|
(in millions, except percentages)
|
||||||||||||||||||
Net Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Commercial
|
$
|
7,613
|
|
|
12%
|
|
$
|
6,778
|
|
|
$
|
23,085
|
|
|
14%
|
|
$
|
20,327
|
|
Consumer
|
3,292
|
|
|
8%
|
|
3,051
|
|
|
9,219
|
|
|
10%
|
|
8,416
|
|
||||
Total CSG net revenue
|
$
|
10,905
|
|
|
11%
|
|
$
|
9,829
|
|
|
$
|
32,304
|
|
|
12%
|
|
$
|
28,743
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Operating Income:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
CSG operating income
|
$
|
447
|
|
|
(29)%
|
|
$
|
630
|
|
|
$
|
1,405
|
|
|
(5)%
|
|
$
|
1,483
|
|
% of segment net revenue
|
4.1
|
%
|
|
|
|
6.4
|
%
|
|
4.3
|
%
|
|
|
|
5.2
|
%
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||||||
|
November 2, 2018
|
|
% Change
|
|
November 3, 2017
|
|
November 2, 2018
|
|
% Change
|
|
November 3, 2017
|
||||||||
|
(in millions, except percentages)
|
||||||||||||||||||
Net Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
VMware net revenue
|
$
|
2,229
|
|
|
15%
|
|
$
|
1,933
|
|
|
$
|
6,451
|
|
|
12%
|
|
$
|
5,735
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Operating Income:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
VMware operating income
|
$
|
768
|
|
|
21%
|
|
$
|
634
|
|
|
$
|
2,117
|
|
|
7%
|
|
$
|
1,973
|
|
% of segment net revenue
|
34.5
|
%
|
|
|
|
32.8
|
%
|
|
32.8
|
%
|
|
|
|
34.4
|
%
|
|
November 2, 2018
|
|
February 2, 2018
|
||||
|
(in millions)
|
||||||
Cash and cash equivalents, and available borrowings:
|
|
|
|
||||
Cash and cash equivalents (a)
|
$
|
15,152
|
|
|
$
|
13,942
|
|
Remaining available borrowings under revolving credit facilities
|
4,414
|
|
|
4,875
|
|
||
Total cash, cash equivalents, and available borrowings
|
$
|
19,566
|
|
|
$
|
18,817
|
|
|
November 2, 2018
|
|
February 2, 2018
|
||||
|
(in millions)
|
||||||
Restricted Subsidiary Debt
|
|
|
|
||||
Core debt:
|
|
|
|
||||
Senior Secured Credit Facilities and First Lien Notes
|
$
|
29,178
|
|
|
$
|
30,595
|
|
Unsecured Notes and Debentures
|
1,952
|
|
|
2,452
|
|
||
Senior Notes
|
3,250
|
|
|
3,250
|
|
||
EMC Notes
|
3,000
|
|
|
5,500
|
|
||
DFS allocated debt
|
(1,133
|
)
|
|
(1,892
|
)
|
||
Total core debt
|
36,247
|
|
|
39,905
|
|
||
DFS related debt:
|
|
|
|
||||
DFS debt
|
5,937
|
|
|
4,796
|
|
||
DFS allocated debt
|
1,133
|
|
|
1,892
|
|
||
Total DFS related debt
|
7,070
|
|
|
6,688
|
|
||
Other
|
2,047
|
|
|
2,054
|
|
||
Unrestricted Subsidiary Debt
|
|
|
|
||||
VMware Notes
|
4,000
|
|
|
4,000
|
|
||
Other
|
—
|
|
|
47
|
|
||
Total unrestricted subsidiary debt
|
4,000
|
|
|
4,047
|
|
||
Total debt, principal amount
|
49,364
|
|
|
52,694
|
|
||
Carrying value adjustments
|
(707
|
)
|
|
(823
|
)
|
||
Total debt, carrying value
|
$
|
48,657
|
|
|
$
|
51,871
|
|
|
Nine Months Ended
|
||||||
|
November 2, 2018
|
|
November 3, 2017
|
||||
|
(in millions)
|
||||||
Net change in cash from:
|
|
|
|
||||
Operating activities
|
$
|
4,625
|
|
|
$
|
3,744
|
|
Investing activities
|
(221
|
)
|
|
(1,990
|
)
|
||
Financing activities
|
(2,844
|
)
|
|
525
|
|
||
Effect of exchange rate changes on cash and cash equivalents
|
(262
|
)
|
|
47
|
|
||
Change in cash and cash equivalents
|
$
|
1,298
|
|
|
$
|
2,326
|
|
Exhibit
Number
|
|
Description
|
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
101 .INS††
|
|
XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
|
101 .SCH††
|
|
XBRL Taxonomy Extension Schema Document.
|
101 .CAL††
|
|
XBRL Taxonomy Extension Calculation Linkbase Document.
|
101 .DEF††
|
|
XBRL Taxonomy Extension Definition Linkbase Document.
|
101 .LAB††
|
|
XBRL Taxonomy Extension Label Linkbase Document.
|
101 .PRE††
|
|
XBRL Taxonomy Extension Presentation Linkbase Document.
|
††
|
|
Filed with this report.
|
†††
|
|
Furnished with this report.
|
|
DELL TECHNOLOGIES INC.
|
|
|
|
|
|
By:
|
/s/ MAYA MCREYNOLDS
|
|
|
Maya McReynolds
|
|
|
Senior Vice President, Corporate Finance and
|
|
|
Chief Accounting Officer
|
|
|
(On behalf of registrant and as principal accounting officer)
|
No information found
* THE VALUE IS THE MARKET VALUE AS OF THE LAST DAY OF THE QUARTER FOR WHICH THE 13F WAS FILED.
FUND | NUMBER OF SHARES | VALUE ($) | PUT OR CALL |
---|
DIRECTORS | AGE | BIO | OTHER DIRECTOR MEMBERSHIPS |
---|
No information found
Customers
Suppliers
Price
Yield
Owner | Position | Direct Shares | Indirect Shares |
---|