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DELL TECHNOLOGIES INC. |
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Reconciliation of Selected Non-GAAP Financial Measures |
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(in millions, except percentages; unaudited) |
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Three Months Ended |
Six Months Ended |
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August 3, 2018 |
August 4, 2017 |
Change |
August 3, 2018 |
August 4, 2017 |
Change |
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Net revenue |
$ 22,942 |
$ 19,521 |
18 % |
$ 44,298 |
$ 37,521 |
18 % |
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Non-GAAP adjustments: |
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Impact of purchase accounting |
180 |
335 |
367 |
690 |
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Non-GAAP net revenue |
$ 23,122 |
$ 19,856 |
16 % |
$ 44,665 |
$ 38,211 |
17 % |
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Gross margin |
$ 6,123 |
$ 4,968 |
23 % |
$ 12,001 |
$ 9,425 |
27 % |
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Non-GAAP adjustments: |
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Amortization of intangibles |
718 |
920 |
1,428 |
1,870 |
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Impact of purchase accounting |
185 |
348 |
378 |
713 |
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Transaction-related expenses |
21 |
10 |
137 |
17 |
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Other corporate expenses |
19 |
13 |
41 |
35 |
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Non-GAAP gross margin |
$ 7,066 |
$ 6,259 |
13 % |
$ 13,985 |
$ 12,060 |
16 % |
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Operating expenses |
$ 6,136 |
$ 5,633 |
9 % |
$ 12,167 |
$ 11,362 |
7 % |
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Non-GAAP adjustments: |
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Amortization of intangibles |
(808) |
(820) |
(1,620) |
(1,646) |
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Impact of purchase accounting |
(30) |
(58) |
(59) |
(116) |
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Transaction-related expenses |
(83) |
(128) |
(133) |
(312) |
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Other corporate expenses |
(257) |
(234) |
(504) |
(519) |
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Non-GAAP operating expenses |
$ 4,958 |
$ 4,393 |
13 % |
$ 9,851 |
$ 8,769 |
12 % |
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Operating loss |
$ (13) |
$ (665) |
98 % |
$ (166) |
$ (1,937) |
91 % |
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Non-GAAP adjustments: |
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Amortization of intangibles |
1,526 |
1,740 |
3,048 |
3,516 |
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Impact of purchase accounting |
215 |
406 |
437 |
829 |
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Transaction-related expenses |
104 |
138 |
270 |
329 |
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Other corporate expenses |
276 |
247 |
545 |
554 |
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Non-GAAP operating income |
$ 2,108 |
$ 1,866 |
13 % |
$ 4,134 |
$ 3,291 |
26 % |
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Net loss |
$ (461) |
$ (739) |
38 % |
$ (999) |
$ (1,942) |
49 % |
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Non-GAAP adjustments: |
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Amortization of intangibles |
1,526 |
1,740 |
3,048 |
3,516 |
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Impact of purchase accounting |
215 |
406 |
437 |
829 |
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Transaction-related expenses |
104 |
138 |
270 |
329 |
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Other corporate expenses |
276 |
247 |
545 |
554 |
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Aggregate adjustment for income taxes |
(311) |
(680) |
(778) |
(1,413) |
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Non-GAAP net income |
$ 1,349 |
$ 1,112 |
21 % |
$ 2,523 |
$ 1,873 |
35 % |
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Net loss |
$ (461) |
$ (739) |
38 % |
$ (999) |
$ (1,942) |
49 % |
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Adjustments: |
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Interest and other, net |
455 |
545 |
925 |
1,117 |
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Income tax benefit |
(7) |
(471) |
(92) |
(1,112) |
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Depreciation and amortization |
1,931 |
2,142 |
3,845 |
4,354 |
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EBITDA |
$ 1,918 |
$ 1,477 |
30 % |
$ 3,679 |
$ 2,417 |
52 % |
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EBITDA |
$ 1,918 |
$ 1,477 |
30 % |
$ 3,679 |
$ 2,417 |
52 % |
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Adjustments: |
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Stock-based compensation expense |
216 |
208 |
415 |
409 |
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Impact of purchase accounting |
145 |
335 |
367 |
692 |
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Transaction-related expenses |
85 |
138 |
251 |
329 |
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Other corporate expenses |
95 |
22 |
130 |
128 |
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Adjusted EBITDA |
$ 2,459 |
$ 2,180 |
13 % |
$ 4,842 |
$ 3,975 |
22 % |
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