DELL TECHNOLOGIES INC. Reconciliation of Selected Non-GAAP Financial Measures (in millions, except percentages; unaudited; continued on next page) | |||||||||||
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| Three Months Ended |
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| Six Months Ended |
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| August 2, 2024 |
| August 4, 2023 |
| Change |
| August 2, 2024 |
| August 4, 2023 |
| Change |
Gross margin | $ 5,311 |
| $ 5,387 |
| (1) % |
| $ 10,117 |
| $ 10,405 |
| (3) % |
Non-GAAP adjustments: |
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Amortization of intangibles | 59 |
| 84 |
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| 119 |
| 163 |
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Stock-based compensation expense | 38 |
| 37 |
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| 76 |
| 75 |
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Other corporate expenses | 56 |
| 28 |
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| 99 |
| 57 |
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Non-GAAP gross margin | $ 5,464 |
| $ 5,536 |
| (1) % |
| $ 10,411 |
| $ 10,700 |
| (3) % |
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Operating expenses | $ 3,969 |
| $ 4,222 |
| (6) % |
| $ 7,855 |
| $ 8,171 |
| (4) % |
Non-GAAP adjustments: |
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Amortization of intangibles | (109) |
| (129) |
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| (217) |
| (253) |
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| Stock-based compensation expense | (153) |
| (186) |
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| (325) |
| (373) |
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| Other corporate expenses | (277) |
| (348) |
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| (410) |
| (420) |
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| Non-GAAP operating expenses | $ 3,430 |
| $ 3,559 |
| (4) % |
| $ 6,903 |
| $ 7,125 |
| (3) % |
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| Operating income | $ 1,342 |
| $ 1,165 |
| 15 % |
| $ 2,262 |
| $ 2,234 |
| 1 % |
| Non-GAAP adjustments: |
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| Amortization of intangibles | 168 |
| 213 |
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| 336 |
| 416 |
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| Stock-based compensation expense | 191 |
| 223 |
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| 401 |
| 448 |
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| Other corporate expenses | 333 |
| 376 |
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| 509 |
| 477 |
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| Non-GAAP operating income | $ 2,034 |
| $ 1,977 |
| 3 % |
| $ 3,508 |
| $ 3,575 |
| (2) % |
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| Net income | $ 841 |
| $ 455 |
| 85 % |
| $ 1,796 |
| $ 1,033 |
| 74 % |
| Non-GAAP adjustments: |
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| Amortization of intangibles | 168 |
| 213 |
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| 336 |
| 416 |
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| Stock-based compensation expense | 191 |
| 223 |
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| 401 |
| 448 |
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| Other corporate expenses | 329 |
| 432 |
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| 499 |
| 530 |
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| Fair value adjustments on equity
| (5) |
| 29 |
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| 25 |
| 44 |
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| Aggregate adjustment for income
| (153) |
| (69) |
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| (763) |
| (225) |
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| Non-GAAP net income | $ 1,371 |
| $ 1,283 |
| 7 % |
| $ 2,294 |
| $ 2,246 |
| 2 % |
| ____________________ |
| (a) Beginning in Fiscal 2025, our non-GAAP income tax is calculated using a fixed estimated annual tax rate. |
