DELL TECHNOLOGIES INC.
Reconciliation of Selected Non-GAAP Financial Measures
(in millions, except percentages; unaudited; continued on next page)

Three Months Ended

Fiscal Year Ended

January 31,
2020

February 1,
2019

Change

January 31,
2020

February 1,
2019

Change

Net revenue

$

24,032

$

23,841

1%

$

92,154

$

90,621

2%

Non-GAAP adjustments:

Impact of purchase
accounting

97

167

347

703

Non-GAAP net revenue

$

24,129

$

24,008

1%

$

92,501

$

91,324

1%

Gross margin

$

7,684

$

7,109

8%

$

28,933

$

25,053

15%

Non-GAAP adjustments:

Amortization of intangibles

526

729

2,081

2,883

Impact of purchase accounting

98

171

353

720

Transaction-related expenses

—

(26)

(5)

213

Stock-based compensation
expense

38

37

129

91

Other corporate expenses

29

17

72

62

Non-GAAP gross margin

$

8,375

$

8,037

4%

$

31,563

$

29,022

9%

Operating expenses

$

6,967

$

6,778

3%

$

26,311

$

25,244

4%

Non-GAAP adjustments:

Amortization of intangibles

(548)

(815)

(2,327)

(3,255)

Impact of purchase accounting

(14)

(19)

(58)

(100)

Transaction-related expenses

(120)

(339)

(290)

(537)

Stock-based compensation
expense

(338)

(210)

(1,133)

(827)

Other corporate expenses

(339)

(14)

(1,088)

(357)

Non-GAAP operating
expenses

$

5,608

$

5,381

4%

$

21,415

$

20,168

6%

Operating income (loss)

$

717

$

331

117%

$

2,622

$

(191)

NM

Non-GAAP adjustments:

Amortization of intangibles

1,074

1,544

4,408

6,138

Impact of purchase accounting

112

190

411

820

Transaction-related expenses

120

313

285

750

Stock-based compensation
expense

376

247

1,262

918

Other corporate expenses

368

31

1,160

419

Non-GAAP operating
income

$

2,767

$

2,656

4%

$

10,148

$

8,854

15%