|
DELL TECHNOLOGIES INC. |
|||||||||||
|
Segment Information |
|||||||||||
|
(in millions, except percentages; unaudited) |
|||||||||||
|
Three Months Ended |
Nine Months Ended |
||||||||||
|
November 3, 2017 |
October 28, 2016 |
Change |
November 3, 2017 |
October 28, 2016 |
Change |
||||||
|
Client Solutions Group (CSG): |
|||||||||||
|
Net Revenue: |
|||||||||||
|
Commercial |
$ 6,907 |
$ 6,400 |
8 % |
$ 20,453 |
$ 19,343 |
6 % |
|||||
|
Consumer |
3,052 |
2,787 |
10 % |
8,413 |
7,635 |
10 % |
|||||
|
Total CSG net revenue |
$ 9,959 |
$ 9,187 |
8 % |
$ 28,866 |
$ 26,978 |
7 % |
|||||
|
Operating Income: |
|||||||||||
|
CSG operating income |
$ 672 |
$ 634 |
6 % |
$ 1,612 |
$ 1,503 |
7 % |
|||||
|
% of CSG net revenue |
7 % |
7 % |
6 % |
6 % |
|||||||
|
% of total segment operating income |
34 % |
30 % |
34 % |
44 % |
|||||||
|
Infrastructure Solutions Group (ISG): |
|||||||||||
|
Net Revenue: |
|||||||||||
|
Servers and networking |
$ 3,851 |
$ 2,910 |
32 % |
$ 10,822 |
$ 9,222 |
17 % |
|||||
|
Storage |
3,667 |
3,079 |
19 % |
11,018 |
4,159 |
165 % |
|||||
|
Total ISG net revenue |
$ 7,518 |
$ 5,989 |
26 % |
$ 21,840 |
$ 13,381 |
63 % |
|||||
|
Operating Income: |
|||||||||||
|
ISG operating income |
$ 678 |
$ 897 |
(24)% |
$ 1,431 |
$ 1,389 |
3 % |
|||||
|
% of ISG net revenue |
9 % |
15 % |
7 % |
10 % |
|||||||
|
% of total segment operating income |
34 % |
43 % |
30 % |
40 % |
|||||||
|
VMware: |
|||||||||||
|
Net Revenue: |
|||||||||||
|
Total VMware net revenue |
$ 1,953 |
$ 1,289 |
52 % |
$ 5,596 |
$ 1,289 |
334 % |
|||||
|
Operating Income: |
|||||||||||
|
VMware operating income |
$ 639 |
$ 548 |
17 % |
$ 1,686 |
$ 548 |
208 % |
|||||
|
% of VMware net revenue |
33 % |
43 % |
30 % |
43 % |
|||||||
|
% of total segment operating income |
32 % |
26 % |
36 % |
16 % |
|||||||
|
Reconciliation to consolidated net revenue: |
|||||||||||
|
Reportable segment net revenue |
$ 19,430 |
$ 16,465 |
$ 56,302 |
$ 41,648 |
|||||||
|
Other businesses (a) |
475 |
312 |
1,409 |
530 |
|||||||
|
Unallocated transactions (b) |
— |
— |
(1) |
63 |
|||||||
|
Impact of purchase accounting (c) |
(295) |
(530) |
(985) |
(673) |
|||||||
|
Total net revenue |
$ 19,610 |
$ 16,247 |
$ 56,725 |
$ 41,568 |
|||||||
|
Reconciliation to consolidated operating income (loss): |
|||||||||||
|
Reportable segment operating income |
$ 1,989 |
$ 2,079 |
$ 4,729 |
$ 3,440 |
|||||||
|
Other businesses (a) |
6 |
(13) |
10 |
(48) |
|||||||
|
Unallocated transactions (b) |
(9) |
(91) |
(4) |
(122) |
|||||||
|
Impact of purchase accounting (c) |
(366) |
(850) |
(1,195) |
(1,054) |
|||||||
|
Amortization of intangibles |
(1,734) |
(1,164) |
(5,250) |
(2,146) |
|||||||
|
Transaction-related expenses (d) |
(86) |
(1,200) |
(415) |
(1,329) |
|||||||
|
Other corporate expenses (e) |
(333) |
(273) |
(887) |
(325) |
|||||||
|
Total operating loss |
$ (533) |
$ (1,512) |
$ (3,012) |
$ (1,584) |
|||||||
|
_________________ |
|||||||||||
|
(a) Other businesses consist of RSA Information Security, SecureWorks, Pivotal, and Boomi, and do not constitute a reportable segment, either individually or collectively, as the results of the businesses are not material to the Company's overall results and the businesses do not meet the criteria for reportable segments. |
|||||||||||
|
(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 severance and facility action costs as well as stock-based compensation expense. |
|||||||||||
