EX-99.1 12 exhibit991_020119.htm EXHIBIT 99.1 Exhibit


Exhibit 99.1
UNAUDITED ATTRIBUTED FINANCIAL INFORMATION
FOR CLASS V GROUP
(continued on next page)
The information presented below is intended solely to show the attribution of revenue and expenses to the Class V Group in accordance with the Tracking Stock Policy of Dell Technologies Inc. (“Dell Technologies” or the “Company”), a copy of which is filed as Exhibit 99.2 to the Company’s Annual Report on Form 10-K for the fiscal year ended February 3, 2017. The individual income and expense line item amounts reflected in the column for VMware, Inc. (“VMware”) are for informational purposes and do not represent actual income and expenses of the Class V Group.

On December 28, 2018, the Company completed a transaction, referred to as the “Class V transaction,” in which all outstanding shares of Class V Common Stock ceased to be outstanding, and the tracking stock feature of the Company’s capital structure was terminated, as of that date. Prior to the completion of the Class V transaction, the Class V stockholders did not have any special rights related to, direct ownership interest in, or recourse against the assets and liabilities attributed to the Class V Group. Holders of the Class V Common Stock were stockholders of the Company and subject to all risks associated with an investment in the Company and all of its businesses, assets, and liabilities.

Beginning with the first quarter of its fiscal year ending January 31, 2020, Dell Technologies will no longer present Unaudited Attributed Financial Information for Class V Group as a part of any quarterly report on Form 10-Q or annual report on Form 10-K.
 
Fiscal Year Ended
 
September 7, 2016 through
 
February 1, 2019
 
February 2, 2018
 
February 3, 2017
 
VMware Reportable Segment
 
Adjustments and Eliminations (a)
 
VMware
 
VMware Reportable Segment
 
Adjustments and Eliminations (a)
 
VMware
 
VMware Reportable Segment
 
Adjustments and Eliminations (a)
 
VMware
 
(in millions)
Net revenue
$
9,088

 
$
(114
)
 
$
8,974

 
$
7,994

 
$
(132
)
 
$
7,862

 
$
3,543

 
$
(402
)
 
$
3,141

Cost of net revenue
1,086

 
172

 
1,258

 
990

 
151

 
1,141

 
399

 
54

 
453

Gross margin
8,002

 
(286
)
 
7,716

 
7,004

 
(283
)
 
6,721

 
3,144

 
(456
)
 
2,688

Operating expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Selling, general, and administrative
3,407

 
284

 
3,691

 
2,801

 
463

 
3,264

 
1,113

 
228

 
1,341

Research and development
1,606

 
369

 
1,975

 
1,394

 
361

 
1,755

 
515

 
144

 
659

Total operating expenses
5,013

 
653

 
5,666

 
4,195

 
824

 
5,019

 
1,628

 
372

 
2,000

Operating income (loss)
$
2,989

 
$
(939
)
 
$
2,050

 
$
2,809

 
$
(1,107
)
 
$
1,702

 
$
1,516

 
$
(828
)
 
$
688

Interest and other income (expense), net attributable to VMware
 
 
 
 
833

 
 
 
 
 
112

 
 
 
 
 
6

Income before income taxes attributable to VMware
 
 
 
2,883

 
 
 
 
 
1,814

 
 
 
 
 
694

Income tax provision attributable to VMware
 
 
 
 
461

 
 
 
 
 
1,155

 
 
 
 
 
131

Net income attributable to VMware
 
 
 
 
$
2,422

 
 
 
 
 
$
659

 
 
 
 
 
$
563

____________________
(a)
Adjustments and eliminations primarily consist of intercompany sales and allocated expenses, as well as expenses that are excluded from the VMware reportable segment, such as amortization of intangible assets, stock-based compensation expense, severance, and integration and acquisition-related costs.

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UNAUDITED ATTRIBUTED FINANCIAL INFORMATION
FOR CLASS V GROUP
(continued)
Reconciliation of net income attributable to VMware to Class V Common Stock economic interest in Class V Group:
 
Fiscal Year Ended
 
September 7, 2016 through
 
February 1, 2019
 
February 2, 2018
 
February 3, 2017
 
(in millions)
Net income attributable to VMware
$
2,422

 
$
659

 
$
563

Less: Net income attributable to VMware for the period from December 28, 2018 to February 1, 2019
(15
)
 

 
 
Less: Net income attributable to non-controlling interests
(452
)
 
(121
)
 
(97
)
Net income attributable to Class V Group
1,955

 
538

 
466

Less: DHI Group's 38.90%, 38.48% and 36.43%, respectively, weighted average retained interest in Class V Group
(760
)
 
(207
)
 
(170
)
Class V Common Stock economic interest in Class V Group (a)
$
1,195

 
$
331

 
$
296

____________________
(a)
For the fiscal year ended February 1, 2019, Class V Common Stock economic interest in the Class V Group represents net income attributable to the Class V Group for the period ended December 27, 2018, the last date on which the Class V Common Stock traded on the New York Stock Exchange.

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