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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 |
Nine Months Ended |
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November 3, 2017 |
October 28, 2016 |
Change |
November 3, 2017 |
October 28, 2016 |
Change |
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Net revenue |
$ 19,610 |
$ 16,247 |
21 % |
$ 56,725 |
$ 41,568 |
36 % |
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Non-GAAP adjustments: |
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Impact of purchase accounting |
295 |
530 |
985 |
673 |
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Non-GAAP net revenue |
$ 19,905 |
$ 16,777 |
19 % |
$ 57,710 |
$ 42,241 |
37 % |
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Gross margin |
$ 5,163 |
$ 3,899 |
32 % |
$ 14,274 |
$ 8,428 |
69 % |
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Non-GAAP adjustments: |
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Impact of purchase accounting |
307 |
729 |
1,020 |
897 |
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Amortization of intangibles |
914 |
604 |
2,784 |
806 |
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Transaction-related expenses |
5 |
30 |
22 |
25 |
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Other corporate expenses |
28 |
62 |
63 |
68 |
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Non-GAAP gross margin |
$ 6,417 |
$ 5,324 |
21 % |
$ 18,163 |
$ 10,224 |
78 % |
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Operating expenses |
$ 5,696 |
$ 5,411 |
5 % |
$ 17,286 |
$ 10,012 |
73 % |
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Non-GAAP adjustments: |
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Impact of purchase accounting |
(59) |
(121) |
(175) |
(157) |
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Amortization of intangibles |
(820) |
(560) |
(2,466) |
(1,340) |
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Transaction-related expenses |
(81) |
(1,170) |
(393) |
(1,304) |
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Other corporate expenses |
(305) |
(211) |
(824) |
(257) |
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Non-GAAP operating expenses |
$ 4,431 |
$ 3,349 |
32 % |
$ 13,428 |
$ 6,954 |
93 % |
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Operating loss |
$ (533) |
$ (1,512) |
65 % |
$ (3,012) |
$ (1,584) |
(90)% |
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Non-GAAP adjustments: |
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Impact of purchase accounting |
366 |
850 |
1,195 |
1,054 |
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Amortization of intangibles |
1,734 |
1,164 |
5,250 |
2,146 |
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Transaction-related expenses |
86 |
1,200 |
415 |
1,329 |
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Other corporate expenses |
333 |
273 |
887 |
325 |
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Non-GAAP operating income |
$ 1,986 |
$ 1,975 |
1 % |
$ 4,735 |
$ 3,270 |
45 % |
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Net loss from continuing operations |
$ (941) |
$ (1,637) |
43 % |
$ (3,302) |
$ (2,323) |
(42)% |
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Non-GAAP adjustments: |
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Impact of purchase accounting |
366 |
850 |
1,195 |
1,054 |
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Amortization of intangibles |
1,734 |
1,164 |
5,250 |
2,146 |
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Transaction-related expenses |
86 |
1,200 |
415 |
1,326 |
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Other corporate expenses |
333 |
273 |
887 |
325 |
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Aggregate adjustment for income taxes |
(469) |
(880) |
(1,882) |
(932) |
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Non-GAAP net income from continuing operations |
$ 1,109 |
$ 970 |
14 % |
$ 2,563 |
$ 1,596 |
61 % |
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Net loss from continuing operations |
$ (941) |
$ (1,637) |
43 % |
$ (3,302) |
$ (2,323) |
(42)% |
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Adjustments: |
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Interest and other, net |
682 |
794 |
1,800 |
1,362 |
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Income tax benefit |
(274) |
(669) |
(1,510) |
(623) |
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Depreciation and amortization |
2,137 |
1,576 |
6,491 |
2,799 |
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EBITDA |
$ 1,604 |
$ 64 |
NM |
$ 3,479 |
$ 1,215 |
186 % |
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EBITDA |
$ 1,604 |
$ 64 |
NM |
$ 3,479 |
$ 1,215 |
186 % |
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Adjustments: |
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Stock-based compensation expense |
221 |
144 |
630 |
177 |
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Impact of purchase accounting |
298 |
693 |
990 |
851 |
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Transaction-related expenses |
86 |
1,200 |
415 |
1,366 |
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Other corporate expenses |
109 |
129 |
237 |
148 |
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Adjusted EBITDA |
$ 2,318 |
$ 2,230 |
4 % |
$ 5,751 |
$ 3,757 |
53 % |
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