DELL TECHNOLOGIES INC.

Reconciliation of Selected Non-GAAP Financial Measures

(in millions, except percentages; unaudited; continued)

Three Months Ended

Six Months Ended

August 2, 2019

August 3, 2018

Change

August 2, 2019

August 3, 2018

Change

Net income (loss)

$

4,505

$

(461)

NM

$

4,834

$

(999)

584%

Non-GAAP adjustments:

Amortization of intangibles

1,060

1,526

2,277

3,048

Impact of purchase accounting

102

215

203

437

Transaction-related expenses

47

104

89

270

Stock-based compensation expense

301

216

564

415

Other corporate expenses

714

60

737

130

Fair value adjustments on equity investments

(80)

(139)

(142)

(246)

Aggregate adjustment for income taxes

(4,898)

(262)

(5,602)

(617)

Non-GAAP net income (a)

$

1,751

$

1,259

39%

$

2,960

$

2,438

21%

Net income (loss)

$

4,505

$

(461)

NM

$

4,834

$

(999)

584%

Adjustments:

Interest and other, net

630

455

1,323

925

Income tax benefit

(4,616)

(7)

(5,088)

(92)

Depreciation and amortization

1,498

1,931

3,114

3,845

EBITDA

$

2,017

$

1,918

5%

$

4,183

$

3,679

14%

EBITDA

$

2,017

$

1,918

5%

$

4,183

$

3,679

14%

Adjustments:

Stock-based compensation expense

301

216

564

415

Impact of purchase accounting

84

145

167

367

Transaction-related expenses

47

85

89

251

Other corporate expenses

707

95

726

130

Adjusted EBITDA

$

3,156

$

2,459

28%

$

5,729

$

4,842

18%

________________

(a)  

Non-GAAP net income has been recast to exclude fair value adjustments on equity investments, the corresponding tax effects of those adjustments, and discrete tax items.