SUPPLEMENTAL CONSOLIDATED FINANCIAL INFORMATION (Tables)

6 Months Ended

Jul. 31, 2020

Condensed Financial Information Disclosure [Abstract]

The following table presents additional information on selected accounts included in the Condensed Consolidated Statements of Financial Position as of the dates indicated:


	July 31, 2020		January 31, 2020
	(in millions)
Cash, cash equivalents, and restricted cash:
Cash and cash equivalents	$	11,221	$	9,302
Restricted cash - other current assets (a)	725		730
Restricted cash - other non-current assets (a)	107		119
Total cash, cash equivalents, and restricted cash	$	12,053	$	10,151
Inventories, net:
Production materials	$	1,884	$	1,590
Work-in-process	677		563
Finished goods	1,041		1,128
Total inventories, net	$	3,602	$	3,281






Other non-current assets:
Deferred and other tax assets	$	6,131	$	5,960
Operating lease ROU assets	1,787		1,780
Deferred Commissions	1,025		998
Other	1,704		1,690
Total other non-current assets	$	10,647	$	10,428
Other non-current liabilities:
Deferred and other tax liabilities	$	2,010	$	3,110
Operating lease liabilities	1,383		1,360
Warranty liability	140		155
Other	1,229		758
Total other non-current liabilities	$	4,762	$	5,383

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(a) Restricted cash primarily includes cash required to be held in escrow pursuant to DFS securitization arrangements and VMware, Inc. restricted cash.

Trade Receivables — Allowance for Expected Credit Losses

The following table presents the changes in the Company’s allowance for expected credit losses for the periods indicated:


	Three Months Ended		Six Months Ended
	July 31, 2020		July 31, 2020
	(in millions)
Trade Receivables - Allowance for expected credit losses:
Balance at beginning of period	$	144	$	94
Adjustment for adoption of the new CECL standard (Note 1)	—		27

Provision charged to income statement	11		47
Bad debt write-offs	(9)		(22)
Balance at end of period	$	146	$	146

Liability for standard limited warranties

The following table presents changes in the Company’s liability for standard limited warranties for the periods indicated:


	Three Months Ended						Six Months Ended
	July 31, 2020		August 2, 2019		July 31, 2020		August 2, 2019
	(in millions)
Warranty liability:
Warranty liability at beginning of period	$	476	$	500	$	496	$	524

Costs accrued for new warranty contracts and changes in estimates for pre-existing warranties (a) (b)	206		237		354		440
Service obligations honored	(203)		(212)		(371)		(439)
Warranty liability at end of period	$	479	$	525	$	479	$	525
Current portion	$	339	$	355	$	339	$	355
Non-current portion	$	140	$	170	$	140	$	170

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(a)Changes in cost estimates related to pre-existing warranties are aggregated with accruals for new standard warranty contracts. The Company’s warranty liability process does not differentiate between estimates made for pre-existing warranties and new warranty obligations.

(b)Includes the impact of foreign currency exchange rate fluctuations.