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SEGMENT INFORMATION
6 Months Ended
Jul. 31, 2020
Segment Reporting [Abstract]  
SEGMENT INFORMATION
NOTE 17 — SEGMENT INFORMATION

The Company has three reportable segments that are based on the following business units: Infrastructure Solutions Group (“ISG”); Client Solutions Group (“CSG”); and VMware.

On December 30, 2019, VMware, Inc. completed its acquisition of Pivotal. Due to the Company’s ownership of a controlling interest in Pivotal, the Company and VMware, Inc. accounted for the Pivotal acquisition as a transaction between entities under common control, and consequently the transaction had no net effect to the Company’s consolidated financial statements. Pivotal now operates as a wholly-owned subsidiary of VMware, Inc. and Dell Technologies reports Pivotal results within the VMware reportable segment. Previously, Pivotal results were reported within Other businesses. Prior period results have been recast to conform with the current period presentation.

ISG enables the digital transformation of the Company’s customers through its trusted multi-cloud and big data solutions, which are built upon a modern data center infrastructure. The ISG comprehensive portfolio of advanced storage solutions includes traditional storage solutions as well as next-generation storage solutions (such as all-flash arrays, scale-out file, object platforms, and software-defined solutions), while the Company’s server portfolio includes high-performance rack, blade, tower, and hyperscale servers. The ISG networking portfolio helps business customers transform and modernize their infrastructure, mobilize and enrich end-user experiences, and accelerate business applications and processes. ISG also offers attached software, peripherals, and services, including support and deployment, configuration, and extended warranty services.

CSG includes sales to commercial and consumer customers of branded hardware (such as desktops, workstations, and notebooks) and branded peripherals (such as displays and projectors), as well as services and third-party software and peripherals. CSG also offers attached software, peripherals, and services, including support and deployment, configuration, and extended warranty services.

VMware works with customers in the areas of hybrid and multi-cloud, modern applications, networking, security, and digital workspaces, helping customers manage their IT resources across private clouds and complex multi-cloud, multi-device environments. VMware enables its customers to digitally transform their operations as they ready their applications, infrastructure, and employees for constantly evolving business needs.

The reportable segments disclosed herein are based on information reviewed by the Company’s management to evaluate the business segment results. The Company’s measure of segment revenue and segment operating income for management reporting purposes excludes the impact of Other businesses, unallocated corporate transactions, the impact of purchase accounting, amortization of intangible assets, transaction-related expenses, stock-based compensation expense, and other corporate expenses, as applicable. The Company does not allocate assets to the above reportable segments for internal reporting purposes.
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 to the Company’s consolidated operating income for the periods indicated:
 Three Months EndedSix Months Ended
 July 31, 2020August 2, 2019July 31, 2020August 2, 2019
 (in millions)
Consolidated net revenue:   
Infrastructure Solutions Group$8,207 $8,621 $15,776 $16,823 
Client Solutions Group11,203 11,748 22,307 22,658 
VMware2,908 2,651 5,663 5,108 
Reportable segment net revenue22,318 23,020 43,746 44,589 
Other businesses (a)457 434 974 855 
Impact of purchase accounting (c)(42)(84)(90)(166)
Total consolidated net revenue$22,733 $23,370 $44,630 $45,278 
Consolidated operating income:
Infrastructure Solutions Group$973 $1,050 $1,705 $1,893 
Client Solutions Group715 982 1,307 1,775 
VMware894 751 1,667 1,346 
Reportable segment operating income2,582 2,783 4,679 5,014 
Other businesses (a)37 (14)102 (48)
Unallocated transactions (b)(1)(26)(2)(27)
Impact of purchase accounting (c)(53)(102)(116)(203)
Amortization of intangibles(847)(1,060)(1,702)(2,277)
Transaction-related expenses (d)(83)(47)(159)(89)
Stock-based compensation expense (e)(413)(301)(783)(564)
Other corporate expenses (f)(86)(714)(181)(737)
Total consolidated operating income$1,136 $519 $1,838 $1,069 
____________________
(a)Secureworks, RSA Security, Virtustream, and Boomi constitute “Other businesses” and do not meet the requirements for a reportable segment, either individually or collectively. The results of Other businesses are not material to the Company’s overall results.
(b)Unallocated transactions includes 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.
(d)Transaction-related expenses includes acquisition, integration, and divestiture related costs.
(e)Stock-based compensation expense consists of equity awards granted based on the estimated fair value of those awards at grant date.
(f)Other corporate expenses includes impairment charges, severance, facility action, and other costs. During the second quarter and first six months of Fiscal 2020, this category includes Virtustream gross impairment charges of $619 million.
The following table presents the disaggregation of net revenue by reportable segment, and by major product categories within the segments for the periods indicated:
 Three Months EndedSix Months Ended
 July 31, 2020August 2, 2019July 31, 2020August 2, 2019
 (in millions)
Net revenue:   
Infrastructure Solutions Group:
Servers and networking$4,196 $4,437 $7,954 $8,617 
Storage4,011 4,184 7,822 8,206 
Total ISG net revenue8,207 8,621 15,776 16,823 
Client Solutions Group:
Commercial8,039 9,077 16,673 17,384 
Consumer3,164 2,671 5,634 5,274 
Total CSG net revenue11,203 11,748 22,307 22,658 
VMware:
Total VMware net revenue2,908 2,651 5,663 5,108 
Total segment net revenue$22,318 $23,020 $43,746 $44,589