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FINANCIAL SERVICES (Tables)
3 Months Ended
Apr. 29, 2022
Receivables [Abstract]  
Components of financing receivables segregated by portfolio segment
The following table presents the components of the Company’s financing receivables segregated by portfolio segment as of the dates indicated:
 April 29, 2022January 28, 2022
RevolvingFixed-termTotalRevolvingFixed-termTotal
 (in millions)
Financing receivables, net:  
Customer receivables, gross (a)$716 $9,483 $10,199 $750 $9,833 $10,583 
Allowances for losses(94)(87)(181)(102)(87)(189)
Customer receivables, net622 9,396 10,018 648 9,746 10,394 
Residual interest— 176 176 — 217 217 
Financing receivables, net$622 $9,572 $10,194 $648 $9,963 $10,611 
Short-term$622 $4,174 $4,796 $648 $4,441 $5,089 
Long-term$— $5,398 $5,398 $— $5,522 $5,522 
____________________
(a)    Customer receivables, gross include amounts due from customers under revolving loans, fixed-term loans, fixed-term sales-type or direct financing leases, and accrued interest.
Allowance for financing receivable losses
The following table presents the changes in allowance for financing receivable losses for the periods indicated:
Three Months Ended
April 29, 2022April 30, 2021
RevolvingFixed-termTotalRevolvingFixed-termTotal
(in millions)
Allowance for financing receivable losses:
Balances at beginning of period$102 $87 $189 $148 $173 $321 
Charge-offs, net of recoveries(13)(2)(15)(13)(2)(15)
Provision charged to income statement5 2 7 4 6 10 
Balances at end of period$94 $87 $181 $139 $177 $316 
Aging of customer financing receivables
The following table presents the aging of the Company’s customer financing receivables, gross, including accrued interest, segregated by class, as of the dates indicated:
April 29, 2022January 28, 2022
Current
Past Due
1 — 90 Days
Past Due
>90 Days
TotalCurrent
Past Due
1 — 90 Days
Past Due
>90 Days
Total
(in millions)
Revolving — DPA$488 $35 $12 $535 $520 $40 $11 $571 
Revolving — DBC164 14 3 181 158 18 3 179 
Fixed-term — Consumer and Commercial8,962 485 36 9,483 9,444 345 44 9,833 
Total customer receivables, gross$9,614 $534 $51 $10,199 $10,122 $403 $58 $10,583 
Credit quality indicators
The following tables present customer receivables, gross, including accrued interest, by credit quality indicator segregated by class, as of the dates indicated:
April 29, 2022
Fixed-term — Consumer and Commercial
Fiscal Year of Origination
20232022202120202019Years PriorRevolving — DPARevolving — DBCTotal
(in millions)
Higher$1,223 $2,587 $1,450 $695 $145 $15 $132 $46 $6,293 
Mid345 866 621 235 64 8 155 57 2,351 
Lower179 505 369 142 29 5 248 78 1,555 
Total$1,747 $3,958 $2,440 $1,072 $238 $28 $535 $181 $10,199 

January 28, 2022
Fixed-term — Consumer and Commercial
Fiscal Year of Origination
20222021202020192018Years PriorRevolving — DPARevolving — DBCTotal
(in millions)
Higher$3,279 $1,824 $914 $221 $25 $3 $150 $46 $6,462 
Mid1,071 751 329 94 17 — 166 57 2,485 
Lower599 450 208 42 6 — 255 76 1,636 
Total$4,949 $3,025 $1,451 $357 $48 $3 $571 $179 $10,583 
Finance leases
The following table presents the net revenue, cost of net revenue, and gross margin recognized at the commencement date of sales-type leases for the periods indicated:
Three Months Ended
April 29, 2022April 30, 2021
(in millions)
Net revenue — products
$220 $230 
Cost of net revenue — products
204 163 
Gross margin — products
$16 $67 
Future maturity of fixed-term customer leases
The following table presents the future maturity of the Company’s fixed-term customer leases and associated financing payments, and reconciles the undiscounted cash flows to the customer receivables, gross recognized on the Condensed Consolidated Statements of Financial Position as of the date indicated:
April 29, 2022
(in millions)
Fiscal 2023 (remaining nine months)$1,876 
Fiscal 20241,721 
Fiscal 20251,050 
Fiscal 2026474 
Fiscal 2027 and beyond144 
Total undiscounted cash flows5,265 
Fixed-term loans4,814 
Revolving loans716 
Less: Unearned income(596)
Total customer receivables, gross$10,199 
Operating lease
The following table presents the components of the Company’s operating lease portfolio included in property, plant, and equipment, net as of the dates indicated:
April 29, 2022January 28, 2022
(in millions)
Equipment under operating lease, gross$2,942 $2,643 
Less: Accumulated depreciation(1,076)(935)
Equipment under operating lease, net$1,866 $1,708 
Operating lease income and expense
The following table presents operating lease income related to lease payments and depreciation expense for the Company’s operating lease portfolio for the periods indicated:
Three Months Ended
April 29, 2022April 30, 2021
(in millions)
Income related to lease payments$232$156
Depreciation expense $165$116
Operating lease income maturities
The following table presents the future payments to be received by the Company as lessor in operating lease contracts as of the date indicated:
April 29, 2022
(in millions)
Fiscal 2023 (remaining nine months)$663 
Fiscal 2024650 
Fiscal 2025397 
Fiscal 2026122 
Fiscal 2027 and beyond32 
Total$1,864 
Summary of debt The majority of DFS debt is non-recourse to Dell Technologies and represents borrowings under securitization programs and structured financing programs, for which the Company’s risk of loss is limited to transferred loan and lease payments and associated equipment.
The following table presents DFS debt as of the dates indicated and excludes the allocated portion of the Company’s other borrowings, which represents the additional amount considered to fund the DFS business:
April 29, 2022January 28, 2022
DFS debt(in millions)
DFS U.S. debt:
Asset-based financing and securitization facilities$2,720 $3,054 
Fixed-term securitization offerings 3,607 3,011 
Other125 135 
Total DFS U.S. debt6,452 6,200 
DFS international debt:
Securitization facility730 739 
Other borrowings818 785 
Note payable250 250 
Dell Bank senior unsecured eurobonds1,575 1,672 
Total DFS international debt3,373 3,446 
Total DFS debt$9,825 $9,646 
Total short-term DFS debt$5,907 $5,803 
Total long-term DFS debt$3,918 $3,843 
The following table summarizes the Company’s outstanding debt as of the dates indicated:
 April 29, 2022January 28, 2022
(in millions)
Senior Notes:
5.45% due June 2023
1,000 1,000 
4.00% due July 2024
1,000 1,000 
5.85% due July 2025
1,000 1,000 
6.02% due June 2026
4,500 4,500 
4.90% due October 2026
1,750 1,750 
6.10% due July 2027
500 500 
5.30% due October 2029
1,750 1,750 
6.20% due July 2030
750 750 
8.10% due July 2036
1,000 1,000 
3.38% due December 2041
1,000 1,000 
8.35% due July 2046
800 800 
3.45% due December 2051
1,250 1,250 
Legacy Notes and Debentures:
7.10% due April 2028
300 300 
6.50% due April 2038
388 388 
5.40% due September 2040
264 264 
DFS Debt (Note 5)
9,825 9,646 
Other320 337 
Total debt, principal amount$27,397 $27,235 
Unamortized discount, net of unamortized premium(131)(134)
Debt issuance costs(144)(147)
Total debt, carrying value$27,122 $26,954 
Total short-term debt, carrying value$5,925 $5,823 
Total long-term debt, carrying value$21,197 $21,131 
Financing receivables held by the consolidated VIEs
The following table presents the assets and liabilities held by the consolidated VIEs as of the dates indicated, which are included in the Condensed Consolidated Statements of Financial Position:
 April 29, 2022January 28, 2022
 (in millions)
Assets held by consolidated VIEs
Other current assets$547 $535 
Financing receivables, net of allowance
Short-term$3,376 $3,368 
Long-term$3,270 $3,141 
Property, plant, and equipment, net$1,030 $945 
Liabilities held by consolidated VIEs
Debt, net of unamortized debt issuance costs
Short-term$4,545 $4,560 
Long-term$2,500 $2,235