DELL TECHNOLOGIES INC.

Reconciliation of Selected Non-GAAP Financial Measures

(in millions, except percentages; unaudited; continued)

Three Months Ended

May 3, 2019

May 4, 2018

Change

Net income (loss)

$

329

$

(538)

161%

Non-GAAP adjustments:

Amortization of intangibles

1,217

1,522

Impact of purchase accounting

101

222

Transaction-related expenses

42

166

Stock-based compensation expense

263

199

Other corporate expenses

23

70

Fair value adjustments on equity investments

(62)

(107)

Aggregate adjustment for income taxes

(704)

(355)

Non-GAAP net income (a)

$

1,209

$

1,179

3%

Net income (loss)

$

329

$

(538)

161%

Adjustments:

Interest and other, net

693

470

Income tax provision (benefit)

(472)

(85)

Depreciation and amortization

1,616

1,914

EBITDA

$

2,166

$

1,761

23%

EBITDA

$

2,166

$

1,761

23%

Adjustments:

Stock-based compensation expense

263

199

Impact of purchase accounting

83

222

Transaction-related expenses

42

166

Other corporate expenses

19

35

Adjusted EBITDA

$

2,573

$

2,383

8%

_________________

(a)

Non-GAAP net income has been recast to exclude fair value adjustments on equity investments, the corresponding tax effects of those adjustments, and discrete tax items.