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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 4, 2017 |
July 29, 2016 |
Change |
August 4, 2017 |
July 29, 2016 |
Change |
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Net revenue |
$ 19,299 |
$ 13,080 |
48 % |
$ 37,115 |
$ 25,321 |
47 % |
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Non-GAAP adjustments: |
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Impact of purchase accounting |
335 |
65 |
690 |
143 |
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Non-GAAP net revenue |
$ 19,634 |
$ 13,145 |
49 % |
$ 37,805 |
$ 25,464 |
48 % |
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Gross margin |
$ 4,809 |
$ 2,336 |
106 % |
$ 9,111 |
$ 4,529 |
101 % |
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Non-GAAP adjustments: |
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Impact of purchase accounting |
348 |
79 |
713 |
168 |
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Amortization of intangibles |
920 |
101 |
1,870 |
202 |
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Transaction-related expenses |
10 |
(4) |
17 |
(5) |
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Other corporate expenses |
13 |
3 |
35 |
6 |
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Non-GAAP gross margin |
$ 6,100 |
$ 2,515 |
143 % |
$ 11,746 |
$ 4,900 |
140 % |
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Operating expenses |
$ 5,788 |
$ 2,269 |
155 % |
$ 11,590 |
$ 4,601 |
152 % |
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Non-GAAP adjustments: |
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Impact of purchase accounting |
(58) |
(19) |
(116) |
(36) |
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Amortization of intangibles |
(820) |
(390) |
(1,646) |
(780) |
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Transaction-related expenses |
(128) |
(76) |
(312) |
(134) |
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Other corporate expenses |
(234) |
(25) |
(519) |
(46) |
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Non-GAAP operating expenses |
$ 4,548 |
$ 1,759 |
159 % |
$ 8,997 |
$ 3,605 |
150 % |
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Operating income (loss) |
$ (979) |
$ 67 |
NM |
$ (2,479) |
$ (72) |
NM |
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Non-GAAP adjustments: |
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Impact of purchase accounting |
406 |
98 |
829 |
204 |
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Amortization of intangibles |
1,740 |
491 |
3,516 |
982 |
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Transaction-related expenses |
138 |
72 |
329 |
129 |
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Other corporate expenses |
247 |
28 |
554 |
52 |
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Non-GAAP operating income |
$ 1,552 |
$ 756 |
105 % |
$ 2,749 |
$ 1,295 |
112 % |
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Net loss from continuing operations |
$ (978) |
$ (262) |
(273)% |
$ (2,361) |
$ (686) |
(244)% |
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Non-GAAP adjustments: |
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Impact of purchase accounting |
406 |
98 |
829 |
204 |
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Amortization of intangibles |
1,740 |
491 |
3,516 |
982 |
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Transaction-related expenses |
138 |
69 |
329 |
126 |
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Other corporate expenses |
247 |
28 |
554 |
52 |
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Aggregate adjustment for income taxes |
(680) |
(62) |
(1,413) |
(52) |
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Non-GAAP net income from continuing operations |
$ 873 |
$ 362 |
141 % |
$ 1,454 |
$ 626 |
132 % |
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Net loss from continuing operations |
$ (978) |
$ (262) |
(273)% |
$ (2,361) |
$ (686) |
(244)% |
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Adjustments: |
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Interest and other, net |
545 |
349 |
1,118 |
568 |
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Income tax provision (benefit) |
(546) |
(20) |
(1,236) |
46 |
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Depreciation and amortization |
2,142 |
605 |
4,354 |
1,223 |
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EBITDA |
$ 1,163 |
$ 672 |
73 % |
$ 1,875 |
$ 1,151 |
63 % |
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EBITDA |
$ 1,163 |
$ 672 |
73 % |
$ 1,875 |
$ 1,151 |
63 % |
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Adjustments: |
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Stock-based compensation expense |
208 |
19 |
409 |
33 |
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Impact of purchase accounting |
335 |
75 |
692 |
158 |
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Transaction-related expenses |
138 |
109 |
329 |
166 |
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Other corporate expenses |
22 |
9 |
128 |
19 |
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Adjusted EBITDA |
$ 1,866 |
$ 884 |
111 % |
$ 3,433 |
$ 1,527 |
125 % |
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