XML 59 R46.htm IDEA: XBRL DOCUMENT v3.5.0.2
SEGMENT INFORMATION (Tables)
 9 Months Ended
Oct. 28, 2016
Segment Reporting [Abstract]  
Segment results
The following table presents a reconciliation of net revenue by the Company’s reportable segments to the Company’s consolidated net revenue as well as a reconciliation of consolidated segment operating income (loss) to the Company’s consolidated operating income (loss):
 
Three Months Ended
 
Nine Months Ended
 
October 28, 2016
 
October 30, 2015
 
October 28, 2016
 
October 30, 2015
 
(in millions)
Consolidated net revenue:
 

 
 
 
 

 
 

Client Solutions Group
$
9,187

 
$
8,936

 
$
26,978

 
$
27,040

Infrastructure Solutions Group
5,989

 
3,711

 
13,381

 
11,182

VMware
1,289

 
—

 
1,289

 
—

Reportable segment net revenue
16,465

 
12,647

 
41,648

 
38,222

Other businesses (a)
312

 
104

 
530

 
279

Unallocated transactions (b)
—

 
30

 
63

 
101

Impact of purchase accounting (c)
(530
)
 
(107
)
 
(673
)
 
(370
)
Total net revenue
$
16,247

 
$
12,674

 
$
41,568

 
$
38,232

 
 
 
 
 
 
 
 
Consolidated operating income (loss):
 
 
 
 
 
 
 
Client Solutions Group
$
634

 
$
384

 
$
1,503

 
$
926

Infrastructure Solutions Group
897

 
257

 
1,389

 
776

VMware
548

 
—

 
548

 
—

Reportable segment operating income
2,079

 
641

 
3,440

 
1,702

Other businesses (a)
(13
)
 
(15
)
 
(48
)
 
(50
)
Unallocated transactions (b)
(91
)
 
(19
)
 
(122
)
 
(82
)
Impact of purchase accounting (c)
(850
)
 
(149
)
 
(1,054
)
 
(475
)
Amortization of intangibles
(1,164
)
 
(492
)
 
(2,146
)
 
(1,478
)
Transaction-related expenses (d)
(1,200
)
 
(27
)
 
(1,329
)
 
(67
)
Other corporate expenses (e)
(273
)
 
(17
)
 
(325
)
 
(38
)
Total operating loss
$
(1,512
)
 
$
(78
)
 
$
(1,584
)
 
$
(488
)
_________________
(a)
Other businesses consist of RSA Information Security, SecureWorks, Pivotal, and Boomi offerings, and do not constitute a reportable segment.
(b)
Unallocated transactions includes long-term incentives, certain short-term incentive compensation expenses, and other corporate items that are not allocated to Dell Technologies' reportable segments.
(c)
Impact of purchase accounting includes non-cash purchase accounting adjustments that are primarily related to the EMC merger transaction, as well as the going-private transaction.
(d)
Transaction-related expenses includes acquisition and integration-related costs.
(e)
Other corporate expenses includes severance and facility action costs as well as stock-based compensation expense.
Reconciliation of revenue from segments to consolidated
The following table presents a reconciliation of net revenue by the Company’s reportable segments to the Company’s consolidated net revenue as well as a reconciliation of consolidated segment operating income (loss) to the Company’s consolidated operating income (loss):
 
Three Months Ended
 
Nine Months Ended
 
October 28, 2016
 
October 30, 2015
 
October 28, 2016
 
October 30, 2015
 
(in millions)
Consolidated net revenue:
 

 
 
 
 

 
 

Client Solutions Group
$
9,187

 
$
8,936

 
$
26,978

 
$
27,040

Infrastructure Solutions Group
5,989

 
3,711

 
13,381

 
11,182

VMware
1,289

 
—

 
1,289

 
—

Reportable segment net revenue
16,465

 
12,647

 
41,648

 
38,222

Other businesses (a)
312

 
104

 
530

 
279

Unallocated transactions (b)
—

 
30

 
63

 
101

Impact of purchase accounting (c)
(530
)
 
(107
)
 
(673
)
 
(370
)
Total net revenue
$
16,247

 
$
12,674

 
$
41,568

 
$
38,232

 
 
 
 
 
 
 
 
Consolidated operating income (loss):
 
 
 
 
 
 
 
Client Solutions Group
$
634

 
$
384

 
$
1,503

 
$
926

Infrastructure Solutions Group
897

 
257

 
1,389

 
776

VMware
548

 
—

 
548

 
—

Reportable segment operating income
2,079

 
641

 
3,440

 
1,702

Other businesses (a)
(13
)
 
(15
)
 
(48
)
 
(50
)
Unallocated transactions (b)
(91
)
 
(19
)
 
(122
)
 
(82
)
Impact of purchase accounting (c)
(850
)
 
(149
)
 
(1,054
)
 
(475
)
Amortization of intangibles
(1,164
)
 
(492
)
 
(2,146
)
 
(1,478
)
Transaction-related expenses (d)
(1,200
)
 
(27
)
 
(1,329
)
 
(67
)
Other corporate expenses (e)
(273
)
 
(17
)
 
(325
)
 
(38
)
Total operating loss
$
(1,512
)
 
$
(78
)
 
$
(1,584
)
 
$
(488
)
_________________
(a)
Other businesses consist of RSA Information Security, SecureWorks, Pivotal, and Boomi offerings, and do not constitute a reportable segment.
(b)
Unallocated transactions includes long-term incentives, certain short-term incentive compensation expenses, and other corporate items that are not allocated to Dell Technologies' reportable segments.
(c)
Impact of purchase accounting includes non-cash purchase accounting adjustments that are primarily related to the EMC merger transaction, as well as the going-private transaction.
(d)
Transaction-related expenses includes acquisition and integration-related costs.
(e)
Other corporate expenses includes severance and facility action costs as well as stock-based compensation expense.
Net revenue
The following table presents net revenue by business unit categories:
 
Three Months Ended
 
Nine Months Ended
 
October 28, 2016
 
October 30, 2015
 
October 28, 2016
 
October 30, 2015
 
(in millions)
Net revenue:
 

 
 

 
 

 
 
Client Solutions Group (a):
 
 
 
 
 
 
 
Commercial
$
6,400

 
$
6,437

 
$
19,343

 
$
19,778

Consumer
2,787

 
2,499

 
7,635

 
7,262

Total CSG net revenue
9,187

 
8,936

 
26,978

 
27,040

 
 
 
 
 
 
 
 
Infrastructure Solutions Group:
 
 
 
 
 
 
 
Servers and networking
2,910

 
3,163

 
9,222

 
9,527

Storage
3,079

 
548

 
4,159

 
1,655

Total ISG net revenue
5,989

 
3,711

 
13,381

 
11,182

 
 
 
 
 
 
 
 
VMware
 
 
 
 
 
 
 
Total VMware net revenue
1,289

 
—

 
1,289

 
—

 
 
 
 
 
 
 
 
Total segment net revenue
$
16,465

 
$
12,647

 
$
41,648

 
$
38,222

_________________
(a)
During the nine months ended October 28, 2016, the Company redefined the categories within the Client Solutions Group business unit. None of these changes impacted the Company's consolidated or total business unit results.