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