SEGMENT INFORMATION (Tables)

6 Months Ended

Jul. 31, 2020

Segment Reporting [Abstract]

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 to the Company’s consolidated operating income for the periods indicated:

	Three Months Ended				Six Months Ended
	July 31, 2020		August 2, 2019		July 31, 2020		August 2, 2019
	(in millions)
Consolidated net revenue:
Infrastructure Solutions Group	$	8,207	$	8,621	$	15,776	$	16,823
Client Solutions Group	11,203		11,748		22,307		22,658
VMware	2,908		2,651		5,663		5,108
Reportable segment net revenue	22,318		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 Group	715		982		1,307		1,775
VMware	894		751		1,667		1,346
Reportable segment operating income	2,582		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.

Disaggregation of revenue

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 Ended				Six Months Ended
	July 31, 2020		August 2, 2019		July 31, 2020		August 2, 2019
	(in millions)
Net revenue:
Infrastructure Solutions Group:
Servers and networking	$	4,196	$	4,437	$	7,954	$	8,617
Storage	4,011		4,184		7,822		8,206
Total ISG net revenue	8,207		8,621		15,776		16,823
Client Solutions Group:
Commercial	8,039		9,077		16,673		17,384
Consumer	3,164		2,671		5,634		5,274
Total CSG net revenue	11,203		11,748		22,307		22,658
VMware:
Total VMware net revenue	2,908		2,651		5,663		5,108
Total segment net revenue	$	22,318	$	23,020	$	43,746	$	44,589