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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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Six Months Ended |
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August 3, 2018 |
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August 4, 2017 |
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Change |
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August 3, 2018 |
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August 4, 2017 |
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Change |
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Net revenue |
$ 22,942 |
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$ 19,521 |
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18 % |
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$ 44,298 |
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$ 37,521 |
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18 % |
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Non-GAAP adjustments: |
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Impact of purchase accounting |
180 |
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335 |
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367 |
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690 |
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Non-GAAP net revenue |
$ 23,122 |
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$ 19,856 |
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16 % |
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$ 44,665 |
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$ 38,211 |
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17 % |
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Gross margin |
$ 6,123 |
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$ 4,968 |
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23 % |
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$ 12,001 |
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$ 9,425 |
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27 % |
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Non-GAAP adjustments: |
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Amortization of intangibles |
718 |
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920 |
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1,428 |
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1,870 |
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Impact of purchase accounting |
185 |
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348 |
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378 |
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713 |
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Transaction-related expenses |
21 |
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10 |
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137 |
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17 |
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Other corporate expenses |
19 |
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13 |
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41 |
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35 |
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Non-GAAP gross margin |
$ 7,066 |
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$ 6,259 |
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13 % |
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$ 13,985 |
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$ 12,060 |
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16 % |
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Operating expenses |
$ 6,136 |
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$ 5,633 |
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9 % |
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$ 12,167 |
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$ 11,362 |
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7 % |
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Non-GAAP adjustments: |
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Amortization of intangibles |
(808) |
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(820) |
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(1,620) |
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(1,646) |
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Impact of purchase accounting |
(30) |
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(58) |
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(59) |
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(116) |
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Transaction-related expenses |
(83) |
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(128) |
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(133) |
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(312) |
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Other corporate expenses |
(257) |
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(234) |
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(504) |
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(519) |
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Non-GAAP operating expenses |
$ 4,958 |
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$ 4,393 |
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13 % |
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$ 9,851 |
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$ 8,769 |
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12 % |
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Operating loss |
$ (13) |
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$ (665) |
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98 % |
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$ (166) |
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$ (1,937) |
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91 % |
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Non-GAAP adjustments: |
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Amortization of intangibles |
1,526 |
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1,740 |
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3,048 |
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3,516 |
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Impact of purchase accounting |
215 |
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406 |
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437 |
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829 |
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Transaction-related expenses |
104 |
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138 |
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270 |
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329 |
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Other corporate expenses |
276 |
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247 |
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545 |
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554 |
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Non-GAAP operating income |
$ 2,108 |
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$ 1,866 |
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13 % |
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$ 4,134 |
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$ 3,291 |
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26 % |
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Net loss |
$ (461) |
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$ (739) |
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38 % |
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$ (999) |
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$ (1,942) |
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49 % |
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Non-GAAP adjustments: |
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Amortization of intangibles |
1,526 |
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1,740 |
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3,048 |
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3,516 |
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Impact of purchase accounting |
215 |
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406 |
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437 |
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829 |
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Transaction-related expenses |
104 |
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138 |
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270 |
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329 |
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Other corporate expenses |
276 |
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247 |
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545 |
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554 |
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Aggregate adjustment for income taxes |
(311) |
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(680) |
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(778) |
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(1,413) |
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Non-GAAP net income |
$ 1,349 |
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$ 1,112 |
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21 % |
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$ 2,523 |
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$ 1,873 |
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35 % |
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Net loss |
$ (461) |
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$ (739) |
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38 % |
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$ (999) |
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$ (1,942) |
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49 % |
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Adjustments: |
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Interest and other, net |
455 |
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545 |
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925 |
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1,117 |
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Income tax benefit |
(7) |
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(471) |
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(92) |
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(1,112) |
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Depreciation and amortization |
1,931 |
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2,142 |
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3,845 |
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4,354 |
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EBITDA |
$ 1,918 |
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$ 1,477 |
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30 % |
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$ 3,679 |
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$ 2,417 |
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52 % |
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EBITDA |
$ 1,918 |
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$ 1,477 |
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30 % |
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$ 3,679 |
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$ 2,417 |
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52 % |
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Adjustments: |
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Stock-based compensation expense |
216 |
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208 |
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415 |
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409 |
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Impact of purchase accounting |
145 |
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335 |
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367 |
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692 |
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Transaction-related expenses |
85 |
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138 |
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251 |
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329 |
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Other corporate expenses |
95 |
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22 |
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130 |
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128 |
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Adjusted EBITDA |
$ 2,459 |
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$ 2,180 |
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13 % |
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$ 4,842 |
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$ 3,975 |
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22 % |
