NON-CONTROLLING INTERESTS

9 Months Ended

Oct. 28, 2016

SecureWorks — On April 27, 2016, SecureWorks completed a registered underwritten IPO of its Class A common stock. The non-controlling interests' share of equity in SecureWorks is reflected as a component of the non-controlling interests in the accompanying Condensed Consolidated Statements of Financial Position and was $88 million and $0 million as of October 28, 2016 and January 29, 2016, respectively. As of October 28, 2016, Dell Technologies held approximately 87.5% of the outstanding equity interest in SecureWorks.

The following non-controlling interests were assumed on September 7, 2016 in connection with the EMC merger transaction:

VMware — The non-controlling interests' share of equity in VMware is reflected as a component of the non-controlling interests on the accompanying Condensed Consolidated Statements of Financial Position and was $4,967 million as of October 28, 2016. As of October 28, 2016, the Company held approximately 83.3% of the outstanding equity interest in VMware.

Pivotal — A portion of the non-controlling interest in Pivotal is held by third parties in the form of a preferred equity instrument. Consequently, there is no net income attributable to such interest in Pivotal in the Condensed Consolidated Statements of Income (Loss). Additionally, due to the terms of the preferred equity instrument, the non-controlling interests in the Condensed Consolidated Statements of Financial Position are generally not impacted by Pivotal’s equity-related activity. The preferred equity instrument is convertible into common shares at the non-controlling owner's election at any time.

The portion of the results of operations of Pivotal allocable to its other owners, whose interest is held in the form of common stock, is reflected as an adjustment to net income attributable to Dell Technologies in the accompanying Condensed Consolidated Statements of Income. The non-controlling interests’ share of equity in Pivotal is reflected as a component of the non-controlling interests in the accompanying Condensed Consolidated Statements of Financial Position and was $884 million as of October 28, 2016. As of October 28, 2016, the Company held approximately 77.4% of the outstanding equity interest in Pivotal.

The effect of changes in the Company's ownership interest in SecureWorks, VMware, and Pivotal on the Company's equity was as follows:



	Nine Months Ended
	October 28, 2016
	(in millions)
Net loss attributable to Dell Technologies Inc.	$	(1,436	)
Transfers (to) from the non-controlling interests:
Increase in Dell Technologies' additional paid-in-capital for equity issuances	37
Decrease in Dell Technologies' additional paid-in-capital for other equity activity	(398		)
Net transfers to non-controlling interests	(361		)
Change from net loss attributable to Dell Technologies Inc. and transfers to the non-controlling interests	$	(1,797	)