10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

(Mark One)
☑	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the quarterly period ended	November 3, 2023
or
☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from            to

Commission File Number: 001-37867

Dell Technologies Inc.

(Exact name of registrant as specified in its charter) 

Delaware	80-0890963
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

One Dell Way, Round Rock, Texas 78682

(Address of principal executive offices) (Zip Code)

1-800-289-3355 

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Class C Common Stock, par value of $0.01 per share	DELL	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes þ No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☑	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No þ

As of December 5, 2023, there were 711,601,111 shares of the registrant’s common stock outstanding, consisting of 267,486,909 outstanding shares of Class C Common Stock, 353,480,523 outstanding shares of Class A Common Stock, and 90,633,679 outstanding shares of Class B Common Stock.

1

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This report contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The words “may,” “will,” “anticipate,” “estimate,” “expect,” “intend,” “plan,” “aim,” “seek,” and similar expressions as they relate to us or our management are intended to identify these forward-looking statements. All statements by us regarding our expected financial position, revenues, cash flows and other operating results, business strategy, legal proceedings and similar matters are forward-looking statements. Our expectations expressed or implied in these forward-looking statements may not turn out to be correct. Our results could be materially different from our expectations because of various risks, including the risks discussed in “Part I — Item 1A — Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended February 3, 2023, in this report and in our other periodic and current reports filed with the Securities and Exchange Commission (“SEC”). Any forward-looking statement speaks only as of the date as of which such statement is made, and, except as required by law, we undertake no obligation to update any forward-looking statement after the date as of which such statement was made, whether to reflect changes in circumstances or our expectations, the occurrence of unanticipated events, or otherwise.

2

DELL TECHNOLOGIES INC.

TABLE OF CONTENTS

		Page
PART I — FINANCIAL INFORMATION
Item 1.	Financial Statements (unaudited)	4
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	57
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	86
Item 4.	Controls and Procedures	86
PART II — OTHER INFORMATION
Item 1.	Legal Proceedings	87
Item 1A.	Risk Factors	87
Item 2.	Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities	87
Item 5.	Other Information	88
Item 6.	Exhibits	88
Signatures		89

3

PART I — FINANCIAL INFORMATION

ITEM 1 — FINANCIAL STATEMENTS (UNAUDITED)

Index

	Page
Condensed Consolidated Statements of Financial Position as of November 3, 2023 and February 3, 2023	5
Condensed Consolidated Statements of Income for the three and nine months ended November 3, 2023 and October 28, 2022	6
Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended November 3, 2023 and October 28, 2022	7
Condensed Consolidated Statements of Cash Flows for the nine months ended November 3, 2023 and October 28, 2022	8
Condensed Consolidated Statements of Stockholders’ Equity (Deficit) for the three and nine months ended November 3, 2023 and October 28, 2022	9
Notes to the Condensed Consolidated Financial Statements	11
Note 1 — Overview and Basis of Presentation	11
Note 2 — Fair Value Measurements	13
Note 3 — Investments	15
Note 4 — Financial Services	17
Note 5 — Leases	25
Note 6 — Debt	27
Note 7 — Derivative Instruments and Hedging Activities	30
Note 8 — Goodwill and Intangible Assets	35
Note 9 — Deferred Revenue	37
Note 10 — Commitments and Contingencies	38
Note 11 — Income and Other Taxes	40
Note 12 — Accumulated Other Comprehensive Income (Loss)	42
Note 13 — Capitalization	44
Note 14 — Earnings Per Share	46
Note 15 — Related Party Transactions	47
Note 16 — Segment Information	50
Note 17 — Supplemental Consolidated Financial Information	53
Note 18 — Subsequent Events	56

4

DELL TECHNOLOGIES INC.

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(in millions; unaudited)

	November 3, 2023		February 3, 2023
ASSETS
Current assets:
Cash and cash equivalents	$	8,298	$	8,607
Accounts receivable, net of allowance of $74 and $78	9,720		12,482
Due from related party, net	386		378
Short-term financing receivables, net of allowance of $73 and $142 (Note 4)	4,540		5,281
Inventories	3,381		4,776
Other current assets	10,662		10,827
Total current assets	36,987		42,351
Property, plant, and equipment, net	6,222		6,209
Long-term investments	1,294		1,518
Long-term financing receivables, net of allowance of $80 and $59 (Note 4)	5,773		5,638
Goodwill	19,616		19,676
Intangible assets, net	5,907		6,468
Due from related party, net	239		440
Other non-current assets	7,226		7,311
Total assets	$	83,264	$	89,611
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Short-term debt	$	6,498	$	6,573
Accounts payable	19,478		18,598
Due to related party	1,246		2,067
Accrued and other	6,449		8,874
Short-term deferred revenue	15,206		15,542
Total current liabilities	48,877		51,654
Long-term debt	20,119		23,015
Long-term deferred revenue	13,847		14,744
Other non-current liabilities	2,991		3,223
Total liabilities	$	85,834	$	92,636
Commitments and contingencies (Note 10)
Stockholders’ equity (deficit):
Common stock and capital in excess of $0.01 par value (Note 13)	$	8,742	$	8,424
Treasury stock at cost	(5,064)		(3,813)
Accumulated deficit	(5,519)		(6,732)
Accumulated other comprehensive loss	(823)		(1,001)
Total Dell Technologies Inc. stockholders’ equity (deficit)	(2,664)		(3,122)
Non-controlling interests	94		97
Total stockholders’ equity (deficit)	(2,570)		(3,025)
Total liabilities and stockholders’ equity	$	83,264	$	89,611

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

5

DELL TECHNOLOGIES INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(in millions, except per share amounts; unaudited)

	Three Months Ended				Nine Months Ended
	November 3, 2023		October 28, 2022		November 3, 2023		October 28, 2022
Net revenue:
Products	$	16,233	$	18,938	$	48,204	$	60,212
Services	6,018		5,783		17,903		17,050
Total net revenue	22,251		24,721		66,107		77,262
Cost of net revenue (a):
Products	13,546		15,601		39,923		50,281
Services	3,557		3,413		10,631		10,051
Total cost of net revenue	17,103		19,014		50,554		60,332
Gross margin	5,148		5,707		15,553		16,930
Operating expenses:
Selling, general, and administrative	2,970		3,268		9,748		10,364
Research and development	692		677		2,085		1,984
Total operating expenses	3,662		3,945		11,833		12,348
Operating income	1,486		1,762		3,720		4,582
Interest and other, net	(306)		(1,308)		(1,121)		(2,280)
Income before income taxes	1,180		454		2,599		2,302
Income tax expense	176		213		562		486
Net income	1,004		241		2,037		1,816
Less: Net loss attributable to non-controlling interests	(2)		(4)		(14)		(12)
Net income attributable to Dell Technologies Inc.	$	1,006	$	245	$	2,051	$	1,828
Earnings per share attributable to Dell Technologies Inc.
Basic	$	1.39	$	0.34	$	2.83	$	2.47
Diluted	$	1.36	$	0.33	$	2.78	$	2.41
(a) Includes related party cost of net revenue as follows (Note 15):
Products	$	379	$	281	$	970	$	962
Services	$	884	$	733	$	2,640	$	2,204

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

6

DELL TECHNOLOGIES INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in millions; unaudited)

	Three Months Ended				Nine Months Ended
	November 3, 2023		October 28, 2022		November 3, 2023		October 28, 2022
Net income	$	1,004	$	241	$	2,037	$	1,816
Other comprehensive income (loss), net of tax
Foreign currency translation adjustments	(155)		(196)		(130)		(620)
Cash flow hedges:
Change in unrealized gains	171		306		230		844
Reclassification adjustment for net (gains) losses included in net income	(84)		(324)		75		(726)
Net change in cash flow hedges	87		(18)		305		118
Pension and other postretirement plans:
Recognition of actuarial net gains (losses) from pension and other postretirement plans	2		(2)		3		11
Reclassification adjustments for net losses from pension and other postretirement plans	—		1		—		1
Net change in actuarial net gains (losses) from pension and other postretirement plans	2		(1)		3		12
Total other comprehensive income (loss), net of tax expense (benefit) of $6 and $6, respectively, and $18 and $14, respectively	(66)		(215)		178		(490)
Comprehensive income, net of tax	938		26		2,215		1,326
Less: Net loss attributable to non-controlling interests	(2)		(4)		(14)		(12)
Less: Other comprehensive loss attributable to non-controlling interests	—		—		—		(1)
Comprehensive income attributable to Dell Technologies Inc.	$	940	$	30	$	2,229	$	1,339

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

7

DELL TECHNOLOGIES INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in millions; unaudited)

	Nine Months Ended
	November 3, 2023		October 28, 2022
Cash flows from operating activities:
Net income	$	2,037	$	1,816
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	2,462		2,302
Stock-based compensation expense	675		703
Deferred income taxes	(244)		(745)
Other, net	521		648
Changes in assets and liabilities, net of effects from acquisitions and dispositions:
Accounts receivable	2,517		803
Financing receivables	445		(286)
Inventories	1,203		(485)
Other assets and liabilities	(2,096)		430
Due from/to related party, net	(574)		(641)
Accounts payable	1,012		(4,466)
Deferred revenue	(815)		772
Change in cash from operating activities	7,143		851
Cash flows from investing activities:
Purchases of investments	(143)		(101)
Maturities and sales of investments	150		99
Capital expenditures and capitalized software development costs	(2,029)		(2,244)
Acquisition of businesses and assets, net	(127)		—
Other	35		18
Change in cash from investing activities	(2,114)		(2,228)
Cash flows from financing activities:
Proceeds from the issuance of common stock	8		5
Repurchases of common stock	(1,202)		(2,718)
Repurchases of common stock for employee tax withholdings	(354)		(380)
Payments of dividends and dividend equivalents	(811)		(728)
Proceeds from debt	6,904		8,779
Repayments of debt	(9,766)		(8,079)
Debt-related costs and other, net	(54)		(17)
Change in cash from financing activities	(5,275)		(3,138)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	(200)		(343)
Change in cash, cash equivalents, and restricted cash	(446)		(4,858)
Cash, cash equivalents, and restricted cash at beginning of the period	8,894		10,082
Cash, cash equivalents, and restricted cash at the end of the period	$	8,448	$	5,224

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

8

DELL TECHNOLOGIES INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT)

(in millions, except per share amounts; continued on next page; unaudited)

	Common Stock and Capital in Excess of Par Value			Treasury Stock
Three Months Ended November 3, 2023	Issued Shares	Amount		Shares	Amount		Accumulated Deficit		Accumulated Other Comprehensive Income/(Loss)		Dell Technologies Stockholders’ Equity (Deficit)		Non-Controlling Interests		Total Stockholders’ Equity (Deficit)
Balances as of August 4, 2023	817	$	8,554	93	$	(4,320)	$	(6,249)	$	(757)	$	(2,772)	$	95	$	(2,677)
Net income	—	—		—	—		1,006		—		1,006		(2)		1,004
Dividends and dividend equivalents declared ($0.37 per common share)	—	—		—	—		(276)		—		(276)		—		(276)
Foreign currency translation adjustments	—	—		—	—		—		(155)		(155)		—		(155)
Cash flow hedges, net change	—	—		—	—		—		87		87		—		87
Pension and other post-retirement	—	—		—	—		—		2		2		—		2
Issuance of common stock, net of shares repurchased for employee tax withholding	2	(36)		—	—		—		—		(36)		—		(36)
Stock-based compensation expense	—	217		—	—		—		—		217		10		227
Treasury stock repurchases	—	—		11	(744)		—		—		(744)		—		(744)
Impact from equity transactions of non-controlling interests	—	7		—	—		—		—		7		(9)		(2)
Balances as of November 3, 2023	819	$	8,742	104	$	(5,064)	$	(5,519)	$	(823)	$	(2,664)	$	94	$	(2,570)

	Common Stock and Capital in Excess of Par Value			Treasury Stock
Nine Months Ended November 3, 2023	Issued Shares	Amount		Shares	Amount		Accumulated Deficit		Accumulated Other Comprehensive Income/(Loss)		Dell Technologies Stockholders’ Equity (Deficit)		Non-Controlling Interests		Total Stockholders’ Equity (Deficit)
Balances as of February 3, 2023	798	$	8,424	82	$	(3,813)	$	(6,732)	$	(1,001)	$	(3,122)	$	97	$	(3,025)
Net income	—	—		—	—		2,051		—		2,051		(14)		2,037
Dividends and dividend equivalents declared ($1.11 per common share)	—	—		—	—		(838)		—		(838)		—		(838)
Foreign currency translation adjustments	—	—		—	—		—		(130)		(130)		—		(130)
Cash flow hedges, net change	—	—		—	—		—		305		305		—		305
Pension and other post-retirement	—	—		—	—		—		3		3		—		3
Issuance of common stock, net of shares repurchased for employee tax withholding	21	(339)		—	—		—		—		(339)		—		(339)
Stock-based compensation expense	—	650		—	—		—		—		650		25		675
Treasury stock repurchases	—	—		22	(1,251)		—		—		(1,251)		—		(1,251)
Impact from equity transactions of non-controlling interests	—	7		—	—		—		—		7		(14)		(7)
Balances as of November 3, 2023	819	$	8,742	104	$	(5,064)	$	(5,519)	$	(823)	$	(2,664)	$	94	$	(2,570)

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

9

DELL TECHNOLOGIES INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT)

(continued; in millions, except per share amounts; unaudited)

	Common Stock and Capital in Excess of Par Value			Treasury Stock
Three Months Ended October 28, 2022	Issued Shares	Amount		Shares	Amount		Accumulated Deficit		Accumulated Other Comprehensive Income/(Loss)		Dell Technologies Stockholders’ Equity (Deficit)		Non-Controlling Interests		Total Stockholders’ Equity (Deficit)
Balances as of July 29, 2022	796	$	8,005	62	$	(3,054)	$	(7,106)	$	(705)	$	(2,860)	$	105	$	(2,755)
Net income	—	—		—	—		245		—		245		(4)		241
Dividends and dividend equivalents declared ($0.33 per common share)	—	—		—	—		(241)		—		(241)		—		(241)
Foreign currency translation adjustments	—	—		—	—		—		(196)		(196)		—		(196)
Cash flow hedges, net change	—	—		—	—		—		(18)		(18)		—		(18)
Pension and other post-retirement	—	—		—	—		—		(1)		(1)		—		(1)
Issuance of common stock, net of shares repurchased for employee tax withholding	1	(22)		—	—		—		—		(22)		—		(22)
Stock-based compensation expense	—	226		—	—		—		—		226		9		235
Treasury stock repurchases	—	—		17	(609)		—		—		(609)		—		(609)
Impact from equity transactions of non-controlling interests	—	7		—	—		—		—		7		(9)		(2)
Balances as of October 28, 2022	797	$	8,216	79	$	(3,663)	$	(7,102)	$	(920)	$	(3,469)	$	101	$	(3,368)

	Common Stock and Capital in Excess of Par Value			Treasury Stock
Nine Months Ended October 28, 2022	Issued Shares	Amount		Shares	Amount		Accumulated Deficit		Accumulated Other Comprehensive Income/(Loss)		Dell Technologies Stockholders’ Equity (Deficit)		Non-Controlling Interests		Total Stockholders’ Equity (Deficit)
Balances as of January 28, 2022	777	$	7,898	20	$	(964)	$	(8,188)	$	(431)	$	(1,685)	$	105	$	(1,580)
Net income	—	—		—	—		1,828		—		1,828		(12)		1,816
Dividends and dividend equivalents declared ($0.99 per common share)	—	—		—	—		(742)		—		(742)		—		(742)
Foreign currency translation adjustments	—	—		—	—		—		(619)		(619)		(1)		(620)
Cash flow hedges, net change	—	—		—	—		—		118		118		—		118
Pension and other post-retirement	—	—		—	—		—		12		12		—		12
Issuance of common stock, net of shares repurchased for employee tax withholding	20	(366)		—	—		—		—		(366)		—		(366)
Stock-based compensation expense	—	677		—	—		—		—		677		26		703
Treasury stock repurchases	—	—		59	(2,699)		—		—		(2,699)		—		(2,699)
Impact from equity transactions of non-controlling interests	—	7		—	—		—		—		7		(17)		(10)
Balances as of October 28, 2022	797	$	8,216	79	$	(3,663)	$	(7,102)	$	(920)	$	(3,469)	$	101	$	(3,368)

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

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DELL TECHNOLOGIES INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

NOTE 1 — OVERVIEW AND BASIS OF PRESENTATION

Dell Technologies is a leading global end-to-end technology provider that designs, develops, manufactures, markets, sells, and supports a wide range of comprehensive and integrated solutions, products, and services. Dell Technologies offerings include servers and networking, storage, cloud solutions, desktops, notebooks, services, software, and third-party software and peripherals. References in these Notes to the Condensed Consolidated Financial Statements to the “Company” or “Dell Technologies” mean Dell Technologies Inc. individually and together with its consolidated subsidiaries.

Basis of Presentation — The accompanying unaudited Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and accompanying Notes filed with the U.S. Securities and Exchange Commission (“SEC”) in the Company’s Annual Report on Form 10-K for the fiscal year ended February 3, 2023. These Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). In the opinion of management, the accompanying Condensed Consolidated Financial Statements reflect all adjustments of a normal recurring nature considered necessary to fairly state the financial position of the Company as of November 3, 2023 and February 3, 2023, the results of its operations, corresponding comprehensive income, and changes in stockholders’ equity for the three and nine months ended November 3, 2023 and October 28, 2022, and its cash flows for the nine months ended November 3, 2023 and October 28, 2022.

The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in the Condensed Consolidated Financial Statements and the accompanying Notes. Actual results could differ materially from those estimates. The results of the Company’s operations, corresponding comprehensive income, and changes in stockholders’ equity for the three and nine months ended November 3, 2023 and October 28, 2022, and its cash flows for the nine months ended November 3, 2023 and October 28, 2022 are not necessarily indicative of the results to be expected for the full fiscal year or for any other fiscal period.

The Company’s fiscal year is the 52- or 53-week period ending on the Friday nearest January 31. The fiscal year ended February 3, 2023 (“Fiscal 2023”) was a 53-week period while the fiscal year ending February 2, 2024 (“Fiscal 2024”) will be a 52-week period.

Principles of Consolidation — These Condensed Consolidated Financial Statements include the accounts of Dell Technologies Inc. and its wholly-owned subsidiaries, and the accounts of SecureWorks Corp. (“Secureworks”), which is majority-owned by Dell Technologies. All intercompany transactions have been eliminated.

Secureworks — As of November 3, 2023 and February 3, 2023, the Company held approximately 81.1% and 82.6%, respectively, of the outstanding equity interest in Secureworks. The portion of the results of operations of Secureworks allocable to its other owners is shown as net loss attributable to non-controlling interests in the Condensed Consolidated Statements of Income, as an adjustment to net income attributable to Dell Technologies stockholders. The non-controlling interests’ share of equity in Secureworks is reflected as non-controlling interests in the Condensed Consolidated Statements of Financial Position and was $94 million and $97 million as of November 3, 2023 and February 3, 2023, respectively.

Variable Interest Entities — The Company consolidates Variable Interest Entities ("VIEs") where it has been determined that the Company is the primary beneficiary of the applicable entities’ operations. For each VIE, the primary beneficiary is the party that has both the power to direct the activities that most significantly impact the VIE's economic performance and the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to such VIE. In evaluating whether the Company is the primary beneficiary of each entity, the Company evaluates its power to direct the most significant activities of the VIE by considering the purpose and design of each entity and the risks each entity was designed to create and pass through to its respective variable interest holders. The Company also evaluates its economic interests in each of the VIEs. See Note 4 of the Notes to the Condensed Consolidated Financial Statements for more information regarding consolidated VIEs.

11

DELL TECHNOLOGIES INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

Other Events — On July 12, 2023, the Company entered into a definitive agreement with Comenity Capital Bank, a subsidiary of Bread Financial Holdings, Inc. (“Bread”), to establish a new consumer revolving financing program, operated as the “Dell Pay Credit” program, under which transactions are originated, owned, serviced, and collected by Bread. Under the agreement, the Company also agreed to sell its U.S. consumer revolving customer receivables portfolio. On October 4, 2023, the parties closed the sale for total cash consideration of approximately $390 million and the Company recognized an immaterial gain within the Condensed Consolidated Statements of Income. Upon completion of the sale, the Company derecognized transferred receivables, net of $380 million from the Condensed Consolidated Statements of Financial Position. The Company has no continuing involvement with these receivables, which are serviced by Bread. See Note 4 of the Notes to the Condensed Consolidated Financial Statements for more information.

12

DELL TECHNOLOGIES INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

NOTE 2 — FAIR VALUE MEASUREMENTS

The following table presents the Company’s hierarchy for its assets and liabilities measured at fair value on a recurring basis as of the dates indicated:

	November 3, 2023								February 3, 2023
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs				Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	(in millions)
Assets:
Money market funds	$	4,176	$	—	$	—	$	4,176	$	4,301	$	—	$	—	$	4,301
Marketable equity and other securities	5		—		—		5		33		—		—		33
Derivative instruments	—		215		—		215		—		295		—		295
Total assets	$	4,181	$	215	$	—	$	4,396	$	4,334	$	295	$	—	$	4,629
Liabilities:
Derivative instruments	$	—	$	76	$	—	$	76	$	—	$	460	$	—	$	460
Total liabilities	$	—	$	76	$	—	$	76	$	—	$	460	$	—	$	460

The following section describes the valuation methodologies the Company uses to measure financial instruments at fair value.

Money Market Funds — The Company’s investment in money market funds that are classified as cash equivalents hold underlying investments with a weighted average maturity of 90 days or less and are recognized at fair value. The valuations of these securities are based on quoted prices in active markets for identical assets, when available, or pricing models whereby all significant inputs are observable or can be derived from or corroborated by observable market data. The Company reviews security pricing and assesses money market fund liquidity on a quarterly basis. As of November 3, 2023, the Company’s portfolio had no material exposure to money market funds with a fluctuating net asset value.

Marketable Equity and Other Securities — The Company’s investments in equity and other securities that are measured at fair value on a recurring basis consist of strategic investments in publicly-traded companies. The valuation of these securities is based on quoted prices in active markets.

Derivative Instruments — The Company’s derivative financial instruments consist primarily of foreign currency forward and purchased option contracts and interest rate swaps. The fair value of the portfolio is determined using valuation models based on market observable inputs, including interest rate curves, forward and spot prices for currencies, and implied volatilities. Credit risk is also factored into the fair value calculation of the Company’s derivative financial instrument portfolio. See Note 7 of the Notes to the Condensed Consolidated Financial Statements for a description of the Company’s derivative financial instrument activities.

Deferred Compensation Plans — The Company offers deferred compensation plans for eligible employees, which allow participants to defer a portion of their compensation. Assets were the same as liabilities associated with the plans at approximately $194 million and $179 million as of November 3, 2023 and February 3, 2023, respectively, and are included in other assets and other liabilities on the Condensed Consolidated Statements of Financial Position. The net impact to the Condensed Consolidated Statements of Income is not material since changes in the fair value of the assets substantially offset changes in the fair value of the liabilities. As such, assets and liabilities associated with these plans have not been included in the recurring fair value table above.

13

DELL TECHNOLOGIES INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis — Certain assets are measured at fair value on a nonrecurring basis and therefore are not included in the recurring fair value table above. These assets consist primarily of non-financial assets such as goodwill and intangible assets. See Note 8 of the Notes to the Condensed Consolidated Financial Statements for additional information about goodwill and intangible assets.

As of November 3, 2023 and February 3, 2023, the Company held strategic investments in non-marketable equity and other securities of $1.2 billion and $1.3 billion, respectively. As these investments represent early-stage companies without readily determinable fair values, they are not included in the recurring fair value table above. See Note 3 of the Notes to the Condensed Consolidated Financial Statements for additional information about the Company’s strategic investments.

Carrying Value and Estimated Fair Value of Outstanding Debt — The following table presents the carrying value and estimated fair value of the Company’s outstanding debt as described in Note 6 of the Notes to the Condensed Consolidated Financial Statements, including the current portion, as of the dates indicated:

	November 3, 2023				February 3, 2023
	Carrying Value		Fair Value		Carrying Value		Fair Value
	(in billions)
Senior Notes	$	16.0	$	15.6	$	18.1	$	18.2
Legacy Notes and Debentures	$	0.9	$	0.9	$	0.9	$	1.0
DFS Debt	$	9.6	$	9.1	$	10.3	$	9.9

The fair values of the outstanding debt shown in the table above were determined based on observable market prices in a less active market or based on valuation methodologies using observable inputs and were categorized as Level 2 in the fair value hierarchy.

14

DELL TECHNOLOGIES INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

NOTE 3 — INVESTMENTS

The Company has strategic investments in equity and other securities as well as investments in fixed income debt securities. All equity and other securities as well as long-term fixed income debt securities are recorded as long-term investments in the Condensed Consolidated Statements of Financial Position. Short-term fixed income debt securities are recorded as other current assets in the Condensed Consolidated Statements of Financial Position.

As of both November 3, 2023 and February 3, 2023, total investments were $1.6 billion.

Equity and Other Securities

Equity and other securities include strategic investments in marketable and non-marketable securities. Investments in marketable securities are measured at fair value on a recurring basis. The Company has elected to apply the measurement alternative for non-marketable securities. Under the alternative, the Company measures investments without readily determinable fair values at cost, less impairment, adjusted by observable price changes. The Company makes a separate election to use the alternative for each eligible investment and is required to reassess at each reporting period whether an investment qualifies for the alternative. In evaluating these investments for impairment or observable price changes, the Company uses inputs including pre- and post-money valuations of recent financing events and the impact of those events on its fully diluted ownership percentages, as well as other available information regarding the issuer’s historical and forecasted performance.

Carrying Value of Equity and Other Securities

The following table presents the cost, cumulative unrealized gains, cumulative unrealized losses, and carrying value of the Company's strategic investments in marketable and non-marketable equity securities as of the dates indicated:

	November 3, 2023								February 3, 2023
	Cost		Unrealized Gain		Unrealized Loss		Carrying Value		Cost		Unrealized Gain		Unrealized Loss		Carrying Value
	(in millions)
Marketable	$	12	$	19	$	(26)	$	5	$	56	$	17	$	(40)	$	33
Non-marketable	729		666		(149)		1,246		714		651		(100)		1,265
Total equity and other securities	$	741	$	685	$	(175)	$	1,251	$	770	$	668	$	(140)	$	1,298

15

DELL TECHNOLOGIES INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

Gains and Losses on Equity and Other Securities

The following table presents unrealized gains and losses on marketable and non-marketable equity and other securities for the periods indicated:

	Three Months Ended				Nine Months Ended
	November 3, 2023		October 28, 2022		November 3, 2023		October 28, 2022
	(in millions)
Marketable securities:
Unrealized gain	$	—	$	50	$	1	$	57
Unrealized loss	—		(10)		(23)		(29)
Net unrealized gain (loss)	—		40		(22)		28
Non-marketable securities:
Unrealized gain	6		—		15		72
Unrealized loss	(3)		(13)		(49)		(333)
Net unrealized gain (loss) (a) (b)	3		(13)		(34)		(261)
Net unrealized gain (loss) on equity and other securities	$	3	$	27	$	(56)	$	(233)

____________________

(a)    For the three months ended November 3, 2023, net gains on non-marketable securities are due to upward adjustments for observable price changes offset by losses primarily attributable to impairments.

(b)    For the nine months ended November 3, 2023 and the three and nine months ended October 28, 2022, net unrealized losses on non-marketable securities were primarily attributable to impairments. For the three and nine months ended October 28, 2022, the impairments on equity and other securities were generally in line with extended public equity market declines.

Fixed Income Debt Securities

The Company has fixed income debt securities carried at amortized cost which are primarily held as collateral for borrowings. The Company intends to hold the investments to maturity. As of November 3, 2023, the Company held $267 million in fixed income debt securities which will mature within one year and $43 million in fixed income debt securities which will mature within five years.

The following table summarizes the Company’s debt securities as of the dates indicated:

	November 3, 2023								February 3, 2023
	Cost		Unrealized Gain		Unrealized Loss		Carrying Value		Cost		Unrealized Gain		Unrealized Loss		Carrying Value
	(in millions)
Fixed income debt securities	$	343	$	59	$	(92)	$	310	$	348	$	65	$	(95)	$	318

16

DELL TECHNOLOGIES INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

NOTE 4 — FINANCIAL SERVICES

The Company offers or arranges various financing options and alternative payment structures for its customers globally. Alternative payment structures consist of various flexible consumption models, including utility, subscription, and as-a-Service models.

Financing options are offered to our customers primarily through Dell Financial Services and its affiliates (“DFS”). The Company also arranges financing for some of its customers in various countries where DFS does not currently operate as a captive enterprise. The key activities of DFS include originating, collecting, and servicing customer financing arrangements primarily related to the purchase or use of Dell Technologies products and services. In some cases, DFS also offers financing for the purchase of third-party technology products that complement the Dell Technologies portfolio of products and services. New financing originations were $1.8 billion and $2.3 billion for the three months ended November 3, 2023 and October 28, 2022, respectively, and $6.0 billion and $6.7 billion for the nine months ended November 3, 2023 and October 28, 2022, respectively.

The Company’s lease and loan arrangements with customers are aggregated primarily into the following categories:

Fixed-term leases and loans — The Company enters into financing arrangements with customers who seek lease financing for equipment. DFS leases are generally classified as sales-type leases or operating leases. Leases with business customers have fixed terms of generally two to four years.

The Company also offers fixed-term loans to qualified small businesses, large commercial accounts, governmental organizations, educational entities, and certain individual consumer customers. These loans are repaid in equal payments including interest and have defined terms of generally three to five years. The fair value of the fixed-term loan portfolio is determined using market observable inputs.  The carrying value of these loans approximates fair value. 

Revolving loans — Revolving loans offered under a private label credit financing program, referred to as Dell Business Credit (“DBC”), provide qualified customers with a revolving credit line for the purchase of products and services offered by Dell Technologies. The DBC product is primarily offered to small and medium-sized commercial customers. Revolving loans in the United States bear interest at a variable annual percentage rate that is tied to the prime rate. Based on historical payment patterns, revolving loan transactions are typically repaid within twelve months on average. Due to the short-term nature of the revolving loan portfolio, the carrying value of the portfolio approximates fair value.

Prior to the sale of the U.S. consumer revolving customer receivables portfolio described in Note 1 of the Notes to the Condensed Consolidated Financial Statements, the Company also offered private label credit financing under the Dell Preferred Account (“DPA”) program. The DPA product was primarily offered to individual consumer customers.

Flexible consumption models, as defined above, further enable the Company to offer its customers the option to pay over time to provide them with financial flexibility to meet their changing technological requirements. Such models may result in identification of embedded lease arrangements that lead to the recognition of operating or sales-type leases.

17

DELL TECHNOLOGIES INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

Financing Receivables

The following table presents the components of the Company’s financing receivables segregated by portfolio segment as of the dates indicated:

	November 3, 2023						February 3, 2023
	Revolving		Fixed-term		Total		Revolving		Fixed-term		Total
	(in millions)
Financing receivables, net:
Customer receivables, gross (a) (b)	$	172	$	10,144	$	10,316	$	685	$	10,293	$	10,978
Allowances for losses	(9)		(144)		(153)		(88)		(113)		(201)
Customer receivables, net	163		10,000		10,163		597		10,180		10,777
Residual interest	—		150		150		—		142		142
Financing receivables, net	$	163	$	10,150	$	10,313	$	597	$	10,322	$	10,919
Short-term	$	163	$	4,377	$	4,540	$	597	$	4,684	$	5,281
Long-term	$	—	$	5,773	$	5,773	$	—	$	5,638	$	5,638

____________________

(a)    Customer receivables, gross include amounts due from customers under revolving loans, fixed-term loans, fixed-term leases, and accrued interest.

(b)    The decrease in revolving customer financing receivables is primarily attributable to the sale of the U.S. consumer revolving customer receivables portfolio described in Note 1 of the Notes to the Condensed Consolidated Financial Statements.

The following table presents the changes in allowance for financing receivable losses for the periods indicated:

	Three Months Ended
	November 3, 2023						October 28, 2022
	Revolving		Fixed-term		Total		Revolving		Fixed-term		Total
	(in millions)
Allowance for financing receivable losses:
Balances at beginning of period	$	9	$	140	$	149	$	91	$	92	$	183
Charge-offs, net of recoveries	(4)		(3)		(7)		(12)		(1)		(13)
Provision charged to income statement	4		7		11		8		8		16
Balances at end of period	$	9	$	144	$	153	$	87	$	99	$	186

	Nine Months Ended
	November 3, 2023						October 28, 2022
	Revolving		Fixed-term		Total		Revolving		Fixed-term		Total
	(in millions)
Allowance for financing receivable losses:
Balances at beginning of period	$	88	$	113	$	201	$	102	$	87	$	189
Charge-offs, net of recoveries	(37)		(5)		(42)		(37)		(5)		(42)
Provision charged to income statement	32		36		68		22		17		39
Other (a)	(74)		—		(74)		—		—		—
Balances at end of period	$	9	$	144	$	153	$	87	$	99	$	186

____________________

(a)    Other represents the derecognition of the allowance for financing receivable losses related to the sale of the U.S. consumer revolving customer receivables portfolio described in Note 1 of the Notes to the Condensed Consolidated Financial Statements.

18

DELL TECHNOLOGIES INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

The Company recognizes an allowance for financing receivable losses, including both the lease receivable and unguaranteed residual, in an amount equal to the expected losses net of recoveries. The allowance for financing receivable losses on the lease receivable is determined based on various factors, including lifetime expected losses determined using macroeconomic forecast assumptions and management judgments applicable to and through the expected life of the portfolios as well as past due receivables, receivable type, and customer risk profile. The Company continues to monitor broader economic indicators and their potential impact on future credit loss performance.

Aging

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:

	November 3, 2023								February 3, 2023
	Current		Past Due 1 — 90 Days		Past Due >90 Days		Total		Current		Past Due 1 — 90 Days		Past Due >90 Days		Total
	(in millions)
Revolving — DPA	$	5	$	—	$	—	$	5	$	457	$	34	$	17	$	508
Revolving — DBC	146		17		4		167		154		19		4		177
Fixed-term — Consumer and Commercial	9,140		868		136		10,144		9,309		927		57		10,293
Total customer receivables, gross	$	9,291	$	885	$	140	$	10,316	$	9,920	$	980	$	78	$	10,978

Aging is likely to fluctuate as a result of the variability in volume of large transactions entered into over the period, and the administrative processes that accompany those transactions. Aging is also impacted by the timing of the Company’s fiscal period end date relative to calendar month-end customer payment due dates.  As a result of these factors, fluctuations in aging from period to period do not necessarily indicate a material change in the collectibility of the portfolio.

Fixed-term consumer and commercial customer receivables are placed on non-accrual status if principal or interest is past due and considered delinquent, or if there is concern about the collectibility of a specific customer receivable. The receivables identified as doubtful for collectibility may be classified as current for aging purposes. Aged revolving portfolio customer receivables identified as delinquent are charged off.

19

DELL TECHNOLOGIES INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

Credit Quality

The following tables present customer receivables, gross, including accrued interest, by credit quality indicator, segregated by class, as of the dates indicated:

	November 3, 2023
	Fixed-term — Consumer and Commercial
	Fiscal Year of Origination
	2024		2023		2022		2021		2020		Years Prior		Revolving — DPA		Revolving — DBC		Total
	(in millions)
Higher	$	2,494	$	2,195	$	1,076	$	499	$	127	$	3	$	1	$	42	$	6,437
Mid	849		1,047		378		159		40		2		2		49		2,526
Lower	454		516		210		69		25		1		2		76		1,353
Total	$	3,797	$	3,758	$	1,664	$	727	$	192	$	6	$	5	$	167	$	10,316

	February 3, 2023
	Fixed-term — Consumer and Commercial
	Fiscal Year of Origination
	2023		2022		2021		2020		2019		Years Prior		Revolving — DPA		Revolving — DBC		Total
	(in millions)
Higher	$	3,210	$	1,805	$	914	$	343	$	37	$	1	$	123	$	44	$	6,477
Mid	1,242		631		362		119		17		1		136		54		2,562
Lower	1,017		364		157		65		7		1		249		79		1,939
Total	$	5,469	$	2,800	$	1,433	$	527	$	61	$	3	$	508	$	177	$	10,978

The categories shown in the tables above segregate customer receivables based on the relative degrees of credit risk. Credit quality indicators for DBC revolving and fixed-term accounts are generally updated on a periodic basis.

For the DBC revolving receivables and fixed-term commercial receivables shown in the table above, an internal grading system is utilized that assigns a credit level score based on a number of considerations, including liquidity, operating performance, and industry outlook. The grading criteria and classifications for the fixed-term products differ from those for the revolving products as loss experience varies between these product and customer groups. The credit quality categories cannot be compared between the different classes as loss experience varies substantially between the classes. Prior to the sale of the U.S. consumer revolving customer receivables revolving portfolio described in Note 1 of the Notes to the Condensed Consolidated Financial Statements, the Company made credit decisions based on proprietary scorecards, which included the customer’s credit history, payment history, credit usage, and other credit agency-related elements. The higher quality category included prime accounts generally comparable to U.S. customer FICO scores of 720 or above. The mid category represented mid-tier accounts that are comparable to U.S. customer FICO scores from 660 to 719. The lower category represented accounts that are comparable to U.S. customer FICO scores below 660.

20

DELL TECHNOLOGIES INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

Leases

The following table presents 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				Nine Months Ended
	November 3, 2023		October 28, 2022		November 3, 2023		October 28, 2022
	(in millions)
Net revenue — products	$	227	$	207	$	766	$	646
Cost of net revenue — products	176		164		564		532
Gross margin — products	$	51	$	43	$	202	$	114

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 Statement of Financial Position as of the date indicated:

	November 3, 2023
	(in millions)
Fiscal 2024 (remaining three months)	$	809
Fiscal 2025	2,221
Fiscal 2026	1,712
Fiscal 2027	971
Fiscal 2028 and beyond	388
Total undiscounted cash flows	6,101
Fixed-term loans	4,954
Revolving loans	172
Less: Unearned income	(911)
Total customer receivables, gross	$	10,316

Operating Leases

The Company’s operating leases primarily consist of DFS captive fixed-term leases and contractually committed embedded leases identified within flexible consumption arrangements.

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:

	November 3, 2023		February 3, 2023
	(in millions)
Equipment under operating lease, gross	$	3,855	$	3,725
Less: Accumulated depreciation	(1,721)		(1,517)
Equipment under operating lease, net	$	2,134	$	2,208

21

DELL TECHNOLOGIES INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

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				Nine Months Ended
	November 3, 2023		October 28, 2022		November 3, 2023		October 28, 2022
	(in millions)
Income related to lease payments	$	341	$	297	$	992	$	782
Depreciation expense	$	234	$	212	$	703	$	571

The following table presents the future payments to be received by the Company in operating lease contracts as of the date indicated:

	November 3, 2023
	(in millions)
Fiscal 2024 (remaining three months)	$	330
Fiscal 2025	974
Fiscal 2026	628
Fiscal 2027	272
Fiscal 2028 and beyond	113
Total	$	2,317

DFS Debt

The Company maintains programs that facilitate the funding of leases, loans, and other alternative payment structures in the capital markets. 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:

	November 3, 2023		February 3, 2023
DFS debt	(in millions)
DFS U.S. debt:
Asset-based financing and securitization facilities	$	2,443	$	3,987
Fixed-term securitization offerings	3,715		2,679
Other	31		76
Total DFS U.S. debt	6,189		6,742
DFS international debt:
Securitization facility	749		790
Other borrowings	839		871
Note payable	250		250
Dell Bank senior unsecured eurobonds	1,593		1,637
Total DFS international debt	3,431		3,548
Total DFS debt	$	9,620	$	10,290
Total short-term DFS debt	$	5,374	$	5,400
Total long-term DFS debt	$	4,246	$	4,890

22

DELL TECHNOLOGIES INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

DFS U.S. Debt

Asset-Based Financing and Securitization Facilities — The Company maintains separate asset-based financing facilities in the United States, which are revolving facilities for fixed-term leases and loans. This debt is collateralized solely by the U.S. loan and lease payments and associated equipment in the facilities. The debt has a variable interest rate, and the duration of the debt is based on the terms of the underlying loan and lease payment streams. As of November 3, 2023, the total debt capacity related to the U.S. asset-based financing facilities was $5.1 billion. The Company enters into interest swap agreements to effectively convert a portion of this debt from a floating rate to a fixed rate. See Note 7 of the Notes to the Condensed Consolidated Financial Statements for additional information about the Company’s interest rate swaps.

The Company’s two U.S. asset-based financing facilities for fixed-term leases and loans are effective through July 7, 2025 and June 21, 2024, respectively. The asset-based financing facilities contain standard structural features related to the performance of the funded receivables, which include defined credit losses, delinquencies, average credit scores, and minimum collection requirements. In the event one or more of these criteria are not met and the Company is unable to restructure the facility, no further funding of receivables will be permitted and the timing of the Company’s expected cash flows from over-collateralization will be delayed. As of November 3, 2023, these criteria were met.

The Company previously maintained a U.S. securitization facility for revolving loans effective through June 25, 2025. In connection with the sale of the U.S. consumer revolving customer receivables portfolio described in Note 1 of the Notes to the Condensed Consolidated Financial Statements, the Company’s U.S. securitization facility for revolving loans was paid down and terminated during the three months ended November 3, 2023.

Fixed-Term Securitization Offerings — The Company periodically issues asset-backed debt securities under fixed-term securitization programs to private investors. The asset-backed debt securities are collateralized solely by the U.S. fixed-term lease and loan payments and associated equipment, which are held by Special Purpose Entities (“SPEs”), as discussed below. The interest rate on these securities is fixed and ranges from 0.53% to 6.80% per annum as of November 3, 2023, and the duration of these securities is based on the terms of the underlying lease and loan payment streams.

DFS International Debt

Securitization Facility — The Company maintains a securitization facility in Europe for fixed-term leases and loans. The debt under this facility has a variable interest rate, and the duration of the debt is based on the terms of the underlying loan and lease payment streams. This facility is effective through December 23, 2024 and had a total debt capacity of $850 million as of November 3, 2023.

The securitization facility contains standard structural features related to the performance of the securitized receivables, which include defined credit losses, delinquencies, average credit scores, and minimum collection requirements. In the event one or more of these criteria are not met and the Company is unable to restructure the program, no further funding of receivables will be permitted and the timing of the Company’s expected cash flows from over-collateralization will be delayed. As of November 3, 2023, these criteria were met.

Other Borrowings — In connection with the Company’s international financing operations, the Company has entered into revolving structured financing debt programs related to its fixed-term lease and loan products sold in Canada, Europe, Australia, New Zealand, and the Middle East. The debt under these programs has a variable interest rate, and the duration of the debt is based on the terms of the underlying loan and lease payment streams. The Canadian facility, which is collateralized solely by Canadian loan and lease payments and associated equipment, had a total debt capacity of $328 million as of November 3, 2023 and is effective through January 16, 2025. The European facility, which is collateralized solely by European loan and lease payments and associated equipment, had a total debt capacity of $531 million as of November 3, 2023 and is effective through June 14, 2025. The Australia and New Zealand facility, which is collateralized solely by Australia and New Zealand loan and lease payments and associated equipment, had a total debt capacity of $290 million as of November 3, 2023 and is effective through April 20, 2025. The Middle East facility, which is collateralized solely by Middle East loan and lease payments and associated equipment, had a total debt capacity of $150 million as of November 3, 2023 and is effective through March 24, 2025.

23

DELL TECHNOLOGIES INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

Note Payable — On May 25, 2022, the Company entered into an unsecured credit agreement to fund receivables in Mexico. As of November 3, 2023, the aggregate principal amount of the note payable was $250 million. The note bears interest at an annual rate of 4.24% and will mature on May 31, 2024.

Dell Bank Senior Unsecured Eurobonds — On June 24, 2020, Dell Bank issued 500 million Euro of 1.625% senior unsecured four year eurobonds due June 2024. On October 27, 2021, Dell Bank issued 500 million Euro of 0.5% senior unsecured five year eurobonds due October 2026. On October 18, 2022, Dell Bank issued 500 million Euro of 4.5% senior unsecured five year eurobonds due October 2027. The issuances of the senior unsecured eurobonds support the expansion of the financing operations in Europe.

Variable Interest Entities

In connection with the asset-based financing facilities, securitization facilities, and fixed-term securitization offerings discussed above, the Company transfers certain U.S. and European lease and loan payments and associated equipment to SPEs that meet the definition of a VIE and are consolidated, along with the associated debt described above, into the Condensed Consolidated Financial Statements as the Company is the primary beneficiary of the VIEs. The SPEs are bankruptcy-remote legal entities with separate assets and liabilities. The purpose of the SPEs is to facilitate the funding of customer loan and lease payments and associated equipment in the capital markets.

Some of the SPEs have entered into financing arrangements with multi-seller conduits that, in turn, issue asset-backed debt securities in the capital markets. DFS debt outstanding held by the consolidated VIEs is collateralized by the lease and loan payments and associated equipment. The Company’s risk of loss related to securitized receivables is limited to the amount by which the Company’s right to receive collections for assets securitized exceeds the amount required to pay interest, principal, and fees and expenses related to the asset-backed securities. The Company provides credit enhancement to the securitization in the form of over-collateralization.

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:

	November 3, 2023		February 3, 2023
	(in millions)
Assets held by consolidated VIEs
Other current assets	$	146	$	274
Financing receivables, net of allowance
Short-term	$	3,059	$	3,702
Long-term	$	3,261	$	3,295
Property, plant, and equipment, net	$	1,097	$	1,164
Liabilities held by consolidated VIEs
Debt, net of unamortized debt issuance costs
Short-term	$	4,138	$	4,761
Long-term	$	2,753	$	2,685

Lease and loan payments and associated equipment transferred via securitization through SPEs were $1.1 billion and $1.6 billion for the three months ended November 3, 2023 and October 28, 2022, respectively, and $3.7 billion and $4.5 billion for the nine months ended November 3, 2023 and October 28, 2022, respectively.

Customer Receivable Sales

To manage certain concentrations of customer credit exposure, the Company may sell selected fixed-term customer receivables to unrelated third parties on a periodic basis, without recourse. The amount of customer receivables sold for this purpose was $205 million and $431 million for the nine months ended November 3, 2023 and October 28, 2022, respectively. The Company’s continuing involvement in these customer receivables is primarily limited to servicing arrangements.

24

DELL TECHNOLOGIES INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

NOTE 5 — LEASES

The Company enters into leasing transactions in which the Company is the lessee. These lease contracts are typically classified as operating leases. The Company’s lease contracts are generally for office buildings used to conduct its business, and the determination of whether such contracts contain leases generally does not require significant estimates or judgments. The Company also leases certain global logistics warehouses, employee vehicles, and equipment. As of November 3, 2023, the remaining terms of the Company’s leases range from one month to approximately ten years. As of November 3, 2023 and February 3, 2023, there were no material finance leases in which the Company was a lessee.

The Company also enters into leasing transactions in which the Company is the lessor, primarily through customer financing arrangements offered through DFS. DFS originates leases that are primarily classified as either sales-type leases or operating leases. See Note 4 of the Notes to the Condensed Consolidated Financial Statements for more information about the Company’s lessor arrangements.

The following table presents components of lease costs included in the Condensed Consolidated Statements of Income for the periods indicated:

	Three Months Ended				Nine Months Ended
	November 3, 2023		October 28, 2022		November 3, 2023		October 28, 2022
	(in millions)
Operating lease costs	$	79	$	67	$	221	$	207
Variable costs	19		25		62		73
Total lease costs	$	98	$	92	$	283	$	280

For both the nine months ended November 3, 2023 and October 28, 2022, sublease income, finance lease costs, and short-term lease costs were immaterial.

The following table presents supplemental information related to operating leases included in the Condensed Consolidated Statements of Financial Position as of the dates indicated:

	Classification	November 3, 2023			February 3, 2023
		(in millions, except for term and discount rate)
Operating lease right-of-use assets	Other non-current assets	$	711		$	725
Current operating lease liabilities	Accrued and other current liabilities	$	246		$	260
Non-current operating lease liabilities	Other non-current liabilities	588			630
Total operating lease liabilities		$	834		$	890
Weighted-average remaining lease term (in years)		4.49			4.95
Weighted-average discount rate		4.71		%	3.48		%

25

DELL TECHNOLOGIES INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

The following table presents supplemental cash flow information related to leases for the periods indicated:

	Nine Months Ended
	November 3, 2023		October 28, 2022
	(in millions)
Cash paid for amounts included in the measurement of lease liabilities — operating cash outflows from operating leases	$	220	$	230
Right-of-use assets obtained in exchange for new operating lease liabilities	$	205	$	134

The following table presents the future maturity of the Company’s operating lease liabilities under non-cancelable leases and reconciles the undiscounted cash flows for these leases to the lease liability recognized on the Condensed Consolidated Statements of Financial Position as of the date indicated:

	November 3, 2023
	(in millions)
Fiscal 2024 (remaining three months)	$	63
Fiscal 2025	240
Fiscal 2026	194
Fiscal 2027	157
Fiscal 2028	113
Thereafter	145
Total lease payments	912
Less: Imputed interest	(78)
Total	$	834
Current operating lease liabilities	$	246
Non-current operating lease liabilities	$	588

As of November 3, 2023, the Company’s undiscounted operating leases that had not yet commenced were immaterial.

26

DELL TECHNOLOGIES INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

NOTE 6 — DEBT

The following table summarizes the Company’s outstanding debt as of the dates indicated:

	November 3, 2023		February 3, 2023
	(in millions)
Senior Notes:
5.45% due June 2023	$	—	$	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	3,500		4,500
4.90% due October 2026	1,750		1,750
6.10% due July 2027	500		500
5.25% due February 2028	1,000		1,000
5.30% due October 2029	1,750		1,750
6.20% due July 2030	750		750
5.75% due February 2033	1,000		1,000
8.10% due July 2036	1,000		1,000
3.38% due December 2041	962		1,000
8.35% due July 2046	800		800
3.45% due December 2051	1,095		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 4)	9,620		10,290
Other	181		325
Total debt, principal amount	$	26,860	$	29,867
Unamortized discount, net of unamortized premium	(117)		(133)
Debt issuance costs	(126)		(146)
Total debt, carrying value	$	26,617	$	29,588
Total short-term debt, carrying value	$	6,498	$	6,573
Total long-term debt, carrying value	$	20,119	$	23,015

During the nine months ended November 3, 2023, the net decrease in the Company’s debt balance was principally attributable to:

•the repayment of $1 billion principal amount of the 5.45% Senior Notes due June 2023; and

•the repayment of $1 billion principal amount of the 6.02% Senior Notes due June 2026 in a tender offer, in connection with which the Company recognized an immaterial amount of debt extinguishment costs in interest and other, net in the Condensed Consolidated Statement of Income.

Outstanding Debt

Senior Notes — The Company completed offerings of multiple series of senior notes which were issued on June 1, 2016, June 22, 2016, March 20, 2019, April 9, 2020, December 13, 2021, and January 24, 2023 in aggregate principal amounts of $20.0 billion, $3.3 billion, $4.5 billion, $2.3 billion, $2.3 billion, and $2.0 billion, respectively (the “Senior Notes”). Interest on these borrowings is payable semiannually.

27

DELL TECHNOLOGIES INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

Legacy Notes and Debentures — The Company has outstanding unsecured notes and debentures (collectively, the “Legacy Notes and Debentures”) that were issued by Dell Inc. (“Dell”), a wholly-owned subsidiary of Dell Technologies Inc., prior to the acquisition of Dell by Dell Technologies Inc. in the going-private transaction that closed in October 2013. Interest on these borrowings is payable semiannually.

DFS Debt — See Note 4 and Note 7 of the Notes to the Condensed Consolidated Financial Statements, respectively, for discussion of DFS debt and the interest rate swap agreements that hedge a portion of that debt.

2021 Revolving Credit Facility — The Company’s revolving credit facility, which was entered into on November 1, 2021 (the “2021 Revolving Credit Facility”), matures on November 1, 2027. This facility provides the Company with revolving commitments in an aggregate principal amount of $6.0 billion for general corporate purposes, including liquidity support for the Company’s commercial paper program, and includes a letter of credit sub-facility of up to $0.5 billion and a swing-line loan sub-facility of up to $0.5 billion. The 2021 Revolving Credit Facility also allows the Company to obtain incremental additional commitments on one or more occasions in minimum amounts of $10 million.

Borrowings under the 2021 Revolving Credit Facility bear interest at a rate per annum equal to an applicable margin plus, at the borrowers’ option, either (a) the specified adjusted term Secured Overnight Financing Rate (“SOFR”) or (b) a base rate. The margin applicable to SOFR and base rate borrowings varies based upon the Company’s existing credit ratings. The base rate is calculated based upon the greatest of the specified prime rate, the specified federal reserve bank rate, or SOFR plus 1%. The borrowers may voluntarily repay outstanding loans under the 2021 Revolving Credit Facility at any time without premium or penalty, other than customary breakage costs.

As of November 3, 2023, the Company had no outstanding borrowings under the 2021 Revolving Credit Facility.

Commercial Paper Program — During Fiscal 2023, the Company established a commercial paper program under which the Company may issue unsecured notes in a maximum aggregate face amount of $5.0 billion outstanding at any time, with maturities up to 397 days from the date of issuance. The notes are sold on customary terms in the U.S. commercial paper market on a private placement basis. The proceeds of the notes are used for general corporate purposes. As of November 3, 2023, the Company had no outstanding borrowings under the commercial paper program.

The Company may purchase, redeem, prepay, refinance, or otherwise retire any amount of outstanding indebtedness under the terms of such indebtedness at any time and from time to time, in open market or negotiated transactions with the holders of such indebtedness or otherwise, as considered appropriate in light of market conditions and other relevant factors.

Covenants — The credit agreement governing the 2021 Revolving Credit Facility and the indentures governing the Senior Notes and the Legacy Notes and Debentures impose various limitations, subject to exceptions, on creating certain liens and entering into sale and lease-back transactions. The foregoing credit agreement and indentures contain customary events of default, including failure to make required payments, failure to comply with covenants, and the occurrence of certain events of bankruptcy and insolvency. The 2021 Revolving Credit Facility is also subject to an interest coverage ratio covenant that is tested at the end of each fiscal quarter with respect to the Company’s preceding four fiscal quarters. The Company was in compliance with this financial covenant as of November 3, 2023.

28

DELL TECHNOLOGIES INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

Aggregate Future Maturities

The following table presents the aggregate future maturities of the Company’s debt as of November 3, 2023 for the periods indicated:

	Maturities by Fiscal Year
	2024 (remaining three months)		2025		2026		2027		2028		Thereafter		Total
	(in millions)
Senior Notes	$	—	$	1,000	$	1,000	$	5,250	$	500	$	8,357	$	16,107
Legacy Notes and Debentures	—		—		—		—		—		952		952
DFS Debt	1,479		4,807		1,833		884		610		7		9,620
Other	13		124		29		8		6		1		181
Total maturities, principal amount	1,492		5,931		2,862		6,142		1,116		9,317		26,860
Associated carrying value adjustments	(2)		(7)		(6)		(33)		(8)		(187)		(243)
Total maturities, carrying value amount	$	1,490	$	5,924	$	2,856	$	6,109	$	1,108	$	9,130	$	26,617

29

DELL TECHNOLOGIES INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

NOTE 7 — DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

As part of its risk management strategy, the Company uses derivative instruments, primarily foreign currency forward and option contracts and interest rate swaps, to hedge certain foreign currency and interest rate exposures, respectively.

The Company’s objective is to offset gains and losses resulting from these exposures with gains and losses on the derivative contracts used to hedge the exposures, thereby reducing volatility of earnings and protecting the fair values of assets and liabilities. The earnings effects of the derivative instruments are presented in the same income statement line items as the earnings effects of the hedged items. For derivatives designated as cash flow hedges, the Company assesses hedge effectiveness both at the onset of the hedge and at regular intervals throughout the life of the instruments. For derivatives designated as fair value hedges, the Company assesses hedge effectiveness on qualifying instruments using the shortcut method whereby the hedges are considered perfectly effective at the onset of the hedge and over the life of the hedging relationship.

Foreign Exchange Risk

The Company uses foreign currency forward and option contracts designated as cash flow hedges to protect against the foreign currency exchange rate risks inherent in its forecasted transactions denominated in currencies other than the U.S. Dollar. Hedge accounting is applied based upon the criteria established by accounting guidance for derivative instruments and hedging activities. The risk of loss associated with purchased options is limited to premium amounts paid for the option contracts. The risk of loss associated with forward contracts is equal to the exchange rate differential from the time the contract is entered into until the time it is settled. The majority of these contracts typically expire in twelve months or less.

During the three and nine months ended November 3, 2023 and October 28, 2022, the Company did not discontinue any cash flow hedges related to foreign exchange contracts that had a material impact on the Company’s results of operations due to the probability that the forecasted cash flows would not occur.

The Company uses forward contracts to hedge monetary assets and liabilities denominated in a foreign currency. These contracts generally expire in three months or less, are considered economic hedges, and are not designated for hedge accounting. The change in the fair value of these instruments represents a natural hedge as their gains and losses offset the changes in the underlying fair value of the monetary assets and liabilities due to movements in currency exchange rates.

In connection with DFS operations in Europe, forward contracts are used to hedge financing receivables denominated in foreign currencies other than Euro. These contracts are not designated for hedge accounting and most expire within three years or less.

Interest Rate Risk

The Company uses interest rate swaps to hedge the variability in cash flows related to the interest rate payments on structured financing debt. The interest rate swaps economically convert the variable rate on the structured financing debt to a fixed interest rate to match the underlying fixed rate being received on fixed-term customer leases and loans. These contracts are not designated for hedge accounting and most expire within four years or less.

Interest rate swaps are utilized to manage the interest rate risk, at a portfolio level, associated with DFS operations in Europe. The interest rate swaps economically convert the fixed rate on financing receivables to a three-month Euribor floating rate in order to match the floating rate nature of the banks’ funding pool. The Company also uses interest rate swaps to manage the cash flows related to interest payments on Eurobonds. The interest rate swaps economically convert the fixed rate on the Company’s bonds to a floating rate to match the underlying lease repayments profile. These contracts are not designated for hedge accounting and most expire within five years or less.

The Company utilizes cross-currency amortizing swaps to hedge the currency and interest rate risk exposure associated with the European securitization program.  The cross-currency swaps combine a Euro-based interest rate swap with a British Pound or U.S. Dollar foreign exchange forward contract in which the Company pays a fixed or floating British Pound or U.S. Dollar amount and receives a fixed or floating amount in Euros linked to the one-month Euribor. The notional value of the swaps amortizes in line with the expected cash flows and run-off of the securitized assets.  The swaps are not designated for hedge accounting and expire within five years or less.

30

DELL TECHNOLOGIES INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

Periodically, the Company also uses interest rate swaps to modify the market risk exposures in connection with long-term debt. During Fiscal 2023, the Company entered into interest rate swaps designated as fair value hedges intended to hedge a portion of its interest rate exposure by converting the fixed interest rate of a certain tranche of debt to a floating interest rate based on the benchmark SOFR Overnight Index Swap rate. The gains and losses related to changes in the fair value of such interest rate swaps perfectly offset changes in the fair value of the hedged portion of the underlying debt that were attributable to the changes in the underlying benchmark interest rate. During the nine months ended November 3, 2023, the Company repaid the hedged debt and terminated the associated interest rate swaps.

Derivative Instruments

The following table presents the notional amounts of outstanding derivative instruments as of the dates indicated:

	November 3, 2023		February 3, 2023
	(in millions)
Foreign exchange contracts:
Designated as cash flow hedging instruments	$	7,317	$	7,746
Non-designated as hedging instruments	6,290		6,833
Total	$	13,607	$	14,579
Interest rate contracts:
Designated as fair value hedging instruments	$	—	$	1,000
Non-designated as hedging instruments	6,107		7,214
Total	$	6,107	$	8,214

The following table presents the effect of derivative instruments designated as cash flow hedging instruments on the Condensed Consolidated Statements of Financial Position and the Condensed Consolidated Statements of Income for the periods indicated:

Derivatives in Cash Flow Hedging Relationships	Gain (Loss) Recognized in Accumulated OCI, Net of Tax, on Derivatives		Location of Gain (Loss) Reclassified from Accumulated OCI into Income	Gain (Loss) Reclassified from Accumulated OCI into Income
	(in millions)			(in millions)
For the three months ended November 3, 2023:
			Total net revenue	$	83
Foreign exchange contracts	$	171	Total cost of net revenue	1
Interest rate contracts	—		Interest and other, net	—
Total	$	171	Total	$	84
For the three months ended October 28, 2022:
			Total net revenue	$	324
Foreign exchange contracts	$	306	Total cost of net revenue	—
Interest rate contracts	—		Interest and other, net	—
Total	$	306	Total	$	324

31

DELL TECHNOLOGIES INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

Derivatives in Cash Flow Hedging Relationships	Gain (Loss) Recognized in Accumulated OCI, Net of Tax, on Derivatives		Location of Gain (Loss) Reclassified from Accumulated OCI into Income	Gain (Loss) Reclassified from Accumulated OCI into Income
	(in millions)			(in millions)
For the nine months ended November 3, 2023:
			Total net revenue	$	(68)
Foreign exchange contracts	$	230	Total cost of net revenue	(7)
Interest rate contracts	—		Interest and other, net	—
Total	$	230	Total	$	(75)
For the nine months ended October 28, 2022:
			Total net revenue	$	754
Foreign exchange contracts	$	844	Total cost of net revenue	(28)
Interest rate contracts	—		Interest and other, net	—
Total	$	844	Total	$	726

The following table presents the effect of derivative instruments not designated as hedging instruments on the Condensed Consolidated Statements of Income for the periods indicated:

	Three Months Ended				Nine Months Ended
	November 3, 2023		October 28, 2022		November 3, 2023		October 28, 2022		Location of Gain (Loss) Recognized
	(in millions)
Foreign exchange contracts	$	(114)	$	71	$	(97)	$	(234)	Interest and other, net
Interest rate contracts	2		46		5		64		Interest and other, net
Total	$	(112)	$	117	$	(92)	$	(170)

32

DELL TECHNOLOGIES INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

The Company presents its derivative instruments on a net basis in the Condensed Consolidated Statements of Financial Position due to the right of offset by its counterparties under master netting arrangements. The following tables present the fair value of those derivative instruments presented on a gross basis as of the dates indicated:

	November 3, 2023
	Other Current Assets		Other Non-Current Assets		Other Current Liabilities		Other Non-Current Liabilities		Total Fair Value
	(in millions)
Derivatives designated as hedging instruments:
Foreign exchange contracts in an asset position	$	124	$	—	$	28	$	—	$	152
Foreign exchange contracts in a liability position	(8)		—		(5)		—		(13)
Interest rate contracts in an asset position	—		—		—		—		—
Interest rate contracts in a liability position	—		—		—		—		—
Net asset (liability)	116		—		23		—		139
Derivatives not designated as hedging instruments:
Foreign exchange contracts in an asset position	213		—		86		—		299
Foreign exchange contracts in a liability position	(177)		—		(153)		—		(330)
Interest rate contracts in an asset position	6		57		—		—		63
Interest rate contracts in a liability position	—		—		(15)		(17)		(32)
Net asset (liability)	42		57		(82)		(17)		—
Total derivatives at fair value	$	158	$	57	$	(59)	$	(17)	$	139
	February 3, 2023
	Other Current Assets		Other Non-Current Assets		Other Current Liabilities		Other Non-Current Liabilities		Total Fair Value
	(in millions)
Derivatives designated as hedging instruments:
Foreign exchange contracts in an asset position	$	7	$	—	$	30	$	—	$	37
Foreign exchange contracts in a liability position	(21)		—		(142)		—		(163)
Interest rate contracts in an asset position	—		—		—		—		—
Interest rate contracts in a liability position	—		—		—		(6)		(6)
Net asset (liability)	(14)		—		(112)		(6)		(132)
Derivatives not designated as hedging instruments:
Foreign exchange contracts in an asset position	282		1		368		—		651
Foreign exchange contracts in a liability position	(121)		—		(614)		(1)		(736)
Interest rate contracts in an asset position	14		133		—		—		147
Interest rate contracts in a liability position	—		—		—		(95)		(95)
Net asset (liability)	175		134		(246)		(96)		(33)
Total derivatives at fair value	$	161	$	134	$	(358)	$	(102)	$	(165)

33

DELL TECHNOLOGIES INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

The following tables present the gross amounts of the Company’s derivative instruments, amounts offset due to master netting agreements with the Company’s counterparties, and the net amounts recognized in the Condensed Consolidated Statements of Financial Position as of the dates indicated:

	November 3, 2023
	Gross Amounts of Recognized Assets/ (Liabilities)		Gross Amounts Offset in the Statement of Financial Position		Net Amounts of Assets/(Liabilities) Presented in the Statement of Financial Position		Gross Amounts not Offset in the Statement of Financial Position				Net Amount of Assets/ (Liabilities) Recognized in the Statement of Financial Position
							Financial Instruments		Cash Collateral Received or Pledged
	(in millions)
Derivative instruments:
Financial assets	$	514	$	(299)	$	215	$	—	$	(21)	$	194
Financial liabilities	(375)		299		(76)		—		17		(59)
Total derivative instruments	$	139	$	—	$	139	$	—	$	(4)	$	135
	February 3, 2023
	Gross Amounts of Recognized Assets/ (Liabilities)		Gross Amounts Offset in the Statement of Financial Position		Net Amounts of Assets/(Liabilities) Presented in the Statement of Financial Position		Gross Amounts not Offset in the Statement of Financial Position				Net Amount of Assets/ (Liabilities) Recognized in the Statement of Financial Position
							Financial Instruments		Cash Collateral Received or Pledged
	(in millions)
Derivative instruments:
Financial assets	$	835	$	(540)	$	295	$	—	$	—	$	295
Financial liabilities	(1,000)		540		(460)		—		25		(435)
Total derivative instruments	$	(165)	$	—	$	(165)	$	—	$	25	$	(140)

34

DELL TECHNOLOGIES INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

NOTE 8 — GOODWILL AND INTANGIBLE ASSETS

Goodwill

The Infrastructure Solutions Group and Client Solutions Group reporting units are consistent with the reportable segments identified in Note 16 of the Notes to the Condensed Consolidated Financial Statements. Other businesses consists of VMware Resale, Secureworks, and Virtustream, which each represent separate reporting units.

The following table presents goodwill allocated to the Company’s reportable segments and changes in the carrying amount of goodwill as of the dates indicated:

	Infrastructure Solutions Group		Client Solutions Group		Other Businesses		Total
	(in millions)
Balances as of February 3, 2023	$	15,017	$	4,232	$	427	$	19,676
Goodwill acquired (a)	82		—		—		82
Impact of foreign currency translation and other	(142)		—		—		(142)
Balances as of November 3, 2023	$	14,957	$	4,232	$	427	$	19,616

____________________

(a)    Goodwill acquired represents goodwill recognized in connection with the Company’s acquisition of Moogsoft Inc. during the three months ended November 3, 2023.

Intangible Assets

The following table presents the Company’s intangible assets as of the dates indicated:

	November 3, 2023						February 3, 2023
	Gross		Accumulated Amortization		Net		Gross		Accumulated Amortization		Net
	(in millions)
Customer relationships	$	16,968	$	(14,817)	$	2,151	$	16,956	$	(14,474)	$	2,482
Developed technology	9,506		(8,897)		609		9,466		(8,660)		806
Trade names	875		(813)		62		875		(780)		95
Definite-lived intangible assets	27,349		(24,527)		2,822		27,297		(23,914)		3,383
Indefinite-lived trade names	3,085		—		3,085		3,085		—		3,085
Total intangible assets	$	30,434	$	(24,527)	$	5,907	$	30,382	$	(23,914)	$	6,468

Amortization expense related to definite-lived intangible assets was $205 million and $245 million for the three months ended November 3, 2023 and October 28, 2022, respectively, and $613 million and $732 million for the nine months ended November 3, 2023 and October 28, 2022, respectively. There were no material impairment charges related to intangible assets during the three and nine months ended November 3, 2023 and October 28, 2022.

35

DELL TECHNOLOGIES INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

The following table presents the estimated future annual pre-tax amortization expense of definite-lived intangible assets as of the date indicated:

	November 3, 2023
	(in millions)
Fiscal 2024 (remaining three months)	$	205
Fiscal 2025	654
Fiscal 2026	495
Fiscal 2027	386
Fiscal 2028	230
Thereafter	852
Total	$	2,822

Goodwill and Indefinite-Lived Intangible Assets Impairment Testing

Goodwill and indefinite-lived intangible assets are tested for impairment annually during the third fiscal quarter and whenever events or circumstances may indicate that an impairment has occurred.

For the annual impairment review of the Infrastructure Solutions Group (“ISG”) and Client Solutions Group (“CSG”) reporting units during the third quarter of Fiscal 2024, the Company elected to bypass the assessment of qualitative factors to determine whether it was more likely than not that the fair value of a reporting unit was less than its carrying amount, including goodwill. In electing to bypass the qualitative assessment, the Company proceeded directly to perform a quantitative goodwill impairment test to measure the fair value of each goodwill reporting unit relative to its carrying amount, and to determine the amount of goodwill impairment loss to be recognized, if any. For the remaining reporting units, the Company performed a qualitative assessment of goodwill at the reporting unit level. The qualitative assessment included consideration of the relevant events and circumstances affecting the reporting unit, including macroeconomic, industry and market conditions, overall financial performance, and trends in the public company market valuation, where applicable.

Management exercised significant judgment related to the above assessment, including the identification of goodwill reporting units, assignment of assets and liabilities to goodwill reporting units, assignment of goodwill to reporting units, and determination of the fair value of each goodwill reporting unit. For the quantitative goodwill impairment test, the fair value of each goodwill reporting unit is generally estimated using a combination of public company multiples and discounted cash flow methodologies. The discounted cash flow and public company multiples methodologies require significant judgment, including estimation of future revenues, gross margins, and operating expenses, which are dependent on internal forecasts, current and anticipated economic conditions and trends, selection of market multiples through assessment of the reporting unit’s performance relative to peer competitors, the estimation of the long-term revenue growth rate and discount rate of the Company’s business, and the determination of the Company’s weighted average cost of capital. Changes in these estimates and assumptions could materially affect the fair value of the goodwill reporting unit, potentially resulting in a non-cash impairment charge.

The fair value of the indefinite-lived trade names is generally estimated using discounted cash flow methodologies. These methodologies require significant judgment, including estimation of future revenue, the estimation of the long-term revenue growth rate of the Company’s business and the determination of the Company’s weighted average cost of capital and royalty rates. Changes in these estimates and assumptions could materially affect the fair value of the indefinite-lived intangible assets, potentially resulting in a non-cash impairment charge.

Based on the results of the annual impairment test performed during the three months ended November 3, 2023, the fair values of each of the reporting units and indefinite-lived intangibles exceeded their carrying values. No goodwill or indefinite-lived assets impairment test was performed during the nine months ended November 3, 2023 other than the Company’s annual impairment review.

36

DELL TECHNOLOGIES INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

NOTE 9 — DEFERRED REVENUE

Deferred revenue consists of support and deployment services, software maintenance, training, Software-as-a-Service, and undelivered hardware and professional services, consisting of installations and consulting engagements. Deferred revenue is recorded when the Company has invoiced or payments have been received for undelivered products or services where transfer of control has not occurred. Revenue is recognized as the Company’s performance obligations under the contract are completed.

The following table presents the changes in the Company’s deferred revenue for the periods indicated:

	Three Months Ended				Nine Months Ended
	November 3, 2023		October 28, 2022		November 3, 2023		October 28, 2022
	(in millions)
Deferred revenue:
Deferred revenue at beginning of period	$	30,312	$	28,025	$	30,286	$	27,573
Revenue deferrals	4,492		4,128		15,236		14,675
Revenue recognized	(5,766)		(5,064)		(16,484)		(14,994)
Other (a)	15		—		15		(165)
Deferred revenue at end of period	$	29,053	$	27,089	$	29,053	$	27,089
Short-term deferred revenue	$	15,206	$	14,106	$	15,206	$	14,106
Long-term deferred revenue	$	13,847	$	12,983	$	13,847	$	12,983

____________________

(a)    For the nine months ended October 28, 2022, Other represents the reclassification of deferred revenue to accrued and other liabilities.

Remaining Performance Obligations — Remaining performance obligations represent the aggregate amount of the transaction price allocated to performance obligations not delivered, or partially undelivered, as of the end of the reporting period. Remaining performance obligations include deferred revenue plus unbilled amounts not yet recorded in deferred revenue. The value of the transaction price allocated to remaining performance obligations as of November 3, 2023 was approximately $39 billion. The Company expects to recognize approximately 58% of remaining performance obligations as revenue in the next twelve months, and the remainder thereafter.

The aggregate amount of the transaction price allocated to remaining performance obligations does not include amounts owed under cancelable contracts where there is no substantive termination penalty. The Company applied the practical expedient to exclude the value of remaining performance obligations for contracts for which revenue is recognized at the amount to which the Company has the right to invoice for services performed.

Remaining performance obligation estimates are subject to change and are affected by several factors, including terminations, changes in the scope of contracts, periodic revalidation, adjustments for revenue that have not materialized, and adjustments for currency.

37

DELL TECHNOLOGIES INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

NOTE 10 — COMMITMENTS AND CONTINGENCIES

Purchase Obligations

The Company has contractual obligations to purchase goods or services, which specify significant terms (including fixed or minimum quantities to be purchased), fixed, minimum, or variable price provisions; and the approximate timing of the transaction. As of November 3, 2023, such purchase obligations were $3.8 billion for the remaining three months of Fiscal 2024; $0.8 billion for Fiscal 2025; and $0.6 billion for Fiscal 2026 and thereafter.

Legal Matters

The Company is involved in various claims, suits, assessments, investigations, and legal proceedings that arise from time to time in the ordinary course of its business, including those identified below, consisting of matters involving consumer, antitrust, tax, intellectual property, and other issues on a global basis.

The Company accrues a liability when it believes that it is both probable that a liability has been incurred and that it can reasonably estimate the amount of the loss. The Company reviews these accruals at least quarterly and adjusts them to reflect ongoing negotiations, settlements, rulings, advice of legal counsel, and other relevant information. To the extent new information is obtained and the Company’s views on the probable outcomes of claims, suits, assessments, investigations, or legal proceedings change, changes in the Company’s accrued liabilities are recorded in the period in which such a determination is made. For some matters, the incurrence of a liability is not probable or the amount cannot be reasonably estimated and therefore accruals have not been made.

The following is a discussion of the Company’s significant legal matters and other proceedings:

Class Actions Related to the Class V Transaction — On December 28, 2018, the Company completed a transaction (the “Class V transaction”) in which it paid $14.0 billion in cash and issued 149,387,617 shares of its Class C Common Stock to holders of its Class V Common Stock in exchange for all outstanding shares of Class V Common Stock. As a result of the Class V transaction, the tracking stock feature of the Company’s capital structure associated with the Class V Common Stock was terminated. Certain stockholders of the Company, subsequently brought class action complaints arising out of the Class V transaction in which they named as defendants (collectively, the “defendants”) Michael S. Dell and certain other directors serving on the Company’s board of directors at the time of the Class V transaction (collectively, the “director defendants”), certain stockholders of the Company, consisting of Mr. Dell and Silver Lake Group LLC and certain of its affiliated funds (collectively, the “stockholder defendants”), and Goldman Sachs & Co. LLC (“Goldman Sachs”), which served as financial advisor to the Company in connection with the transaction. The plaintiffs generally alleged that the director defendants and the stockholder defendants breached their fiduciary duties under Delaware law to the former holders of the Class V Common Stock in connection with the Class V transaction by offering a transaction value that was allegedly billions of dollars below fair value.

As previously reported, during the fourth quarter of Fiscal 2023, the plaintiffs and the defendants entered into an agreement to settle the lawsuit. Under the terms of the settlement, the plaintiffs agreed to the dismissal of all claims upon payment of a total of $1.0 billion (the “settlement amount”), which includes all costs, expenses and fees of the plaintiff class relating to the action and its resolution. The settlement terms required that the settlement amount be paid by the Company and/or the Company’s insurers pursuant to indemnification obligations of the Company to the defendants. The Company is subject to indemnification obligations, upon the satisfaction of specified conditions, to the director and stockholder defendants and their affiliates pursuant to provisions of the Delaware General Corporation Law, the Company’s certificate of incorporation and bylaws, and agreements with the defendants. A special committee of the Board of Directors consisting of directors who were not defendants in the action, advised by independent counsel, informed the Board of Directors of its determination that the defendants are entitled to indemnification under the foregoing obligations.

38

DELL TECHNOLOGIES INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

During Fiscal 2023, the Company established a $1.0 billion liability on the Consolidated Statements of Financial Position and recognized $0.9 billion expense, net of $106 million in insurance proceeds, within interest and other, net within the Consolidated Statements of Income related to the settlement agreement. The Company accounted for the expected insurance proceeds as a loss recovery and recognized a benefit within interest and other, net within the Condensed Consolidated Statements of Income and corresponding receivable on the Condensed Consolidated Statements of Financial Position.

On May 16, 2023, during the second quarter of Fiscal 2024, the Company paid the settlement amount following approval of the settlement by the Delaware Court of Chancery. The payment is reflected within cash flows from operating activities within the Condensed Consolidated Statements of Cash Flows. The Company does not expect to incur additional expenses with respect to the settlement.

Other Litigation — Dell does not currently anticipate that any of the other various legal proceedings it is involved in will have a material adverse effect on its business, financial condition, results of operations, or cash flows.

In accordance with the relevant accounting guidance, the Company provides disclosures of matters where it is at least reasonably possible that the Company could experience a material loss exceeding the amounts already accrued for these or other proceedings or matters. In addition, the Company also discloses matters based on its consideration of other matters and qualitative factors, including the experience of other companies in the industry, and investor, customer, and employee relations considerations. As of November 3, 2023, the Company does not believe there is a reasonable possibility that a material loss exceeding the amounts already accrued for these or other proceedings or matters has been incurred. However, since the ultimate resolution of any such proceedings and matters is inherently unpredictable, the Company’s business, financial condition, results of operations, or cash flows could be materially affected in any particular period by unfavorable outcomes in one or more of these proceedings or matters. Whether the outcome of any claim, suit, assessment, investigation, or legal proceeding, individually or collectively, could have a material adverse effect on the Company’s business, financial condition, results of operations, or cash flows will depend on a number of factors, including the nature, timing, and amount of any associated expenses, amounts paid in settlement, damages, or other remedies or consequences.

Indemnifications Obligations

In the ordinary course of business, the Company enters into various contracts under which it may agree to indemnify other parties for losses incurred from certain events as defined in the relevant contract, such as litigation, regulatory penalties, or claims relating to past performance. Such indemnification obligations may not be subject to maximum loss clauses. Historically, payments related to these indemnification obligations have not been material to the Company.

Under the Separation and Distribution Agreement entered into with VMware, Inc. upon the completion of the spin-off of VMware, Inc. by means of a special stock dividend (the “VMware Spin-off”) on November 1, 2021, Dell Technologies agreed to indemnify VMware, Inc., each of its subsidiaries and each of their respective directors, officers, and employees from and against all liabilities relating to, arising out of or resulting from, among other matters, the liabilities allocated to Dell Technologies as part of the separation of Dell Technologies and VMware, Inc. (individually and together with its subsidiaries, “VMware”) and their respective businesses (the “Separation”). VMware similarly agreed to indemnify Dell Technologies Inc., each of its subsidiaries and each of their respective directors, officers, and employees from and against all liabilities relating to, arising out of or resulting from, among other matters, the liabilities allocated to VMware as part of the Separation. Dell Technologies expects VMware to fully perform under the terms of the Separation and Distribution Agreement.

For information on the cross-indemnifications related to the tax matters agreement between the Company and VMware effective upon the Separation on November 1, 2021, see Note 15 of the Notes to the Condensed Consolidated Financial Statements.

39

DELL TECHNOLOGIES INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

NOTE 11 — INCOME AND OTHER TAXES

For the three months ended November 3, 2023, the Company’s effective income tax rate was 14.9% on pre-tax income of $1.2 billion compared to 46.9% on pre-tax income of $0.5 billion for the three months ended October 28, 2022. The decline in the Company’s effective tax rate was primarily attributable to the impact of expenses recognized during the three months ended October 28, 2022 in connection with the agreement to settle the Class V transaction litigation described in Note 10 of the Notes to the Condensed Consolidated Financial Statements. Other changes in the Company’s effective income tax rate were attributable to higher U.S. tax on foreign operations, changes in the Company’s jurisdictional mix of income, and the impact of discrete tax items.

For the nine months ended November 3, 2023, the Company’s effective income tax rate was 21.6% on pre-tax income of $2.6 billion compared to 21.1% on pre-tax income of $2.3 billion for the nine months ended October 28, 2022. The increase in the Company’s effective tax rate was attributable to higher U.S. tax on the Company’s foreign operations, changes in the Company’s jurisdictional mix of income, and the impact of discrete tax items, largely offset by the impact of the litigation expenses discussed above.

The differences between the estimated effective income tax rates and the U.S. federal statutory rate of 21% principally result from the geographical distribution of income, differences between the book and tax treatment of certain items, and discrete tax items. In certain jurisdictions, the Company’s tax rate is significantly less than the applicable statutory rate as a result of tax holidays. The majority of the Company’s foreign income subject to these tax holidays and lower tax rates is attributable to Singapore and China. A significant portion of these income tax benefits relates to a tax holiday that will be effective until January 31, 2029. Most of the Company’s other tax holidays will expire in whole or in part during fiscal years 2030 through 2031. Many of these tax holidays and reduced tax rates may be extended when certain conditions are met or may be terminated early if certain conditions are not met or as a result of changes in tax legislation. As of November 3, 2023, the Company was not aware of any matters of noncompliance related to these tax holidays or enacted tax legislative changes affecting these tax holidays.

In June 2023, the Company received Revenue Agent’s Reports for the examination by the Internal Revenue Service (“IRS”) of fiscal years 2015 through 2017 and fiscal years 2018 through 2019. The Company agreed with the IRS assessments relating to fiscal years 2015 through 2017 and settled those positions in August 2023. The impact to the financial statements for that settlement was not material. For fiscal years 2018 through 2019, the IRS proposed adjustments primarily relating to certain transactions the Company completed as part of its business integration efforts, with which the Company disagrees and which it will contest through the IRS administrative appeals procedures. In August 2023, the Company submitted a written protest to the IRS relating to certain assessments. The Company anticipates that the appeals process for the resolution of these matters will extend beyond the next twelve months. In September 2023, the IRS commenced a federal income tax examination of fiscal years 2020 through 2022.

The Company is also currently under income tax audits in various U.S. state and foreign taxing jurisdictions. The Company is undergoing negotiations, and in some cases contested proceedings, relating to tax matters with the taxing authorities in these jurisdictions. With respect to major U.S. state and foreign taxing jurisdictions, the Company is generally not subject to tax examinations for years prior to the fiscal year ended January 29, 2010. The Company believes that it has provided adequate reserves related to all matters contained in tax periods open to examination, including the IRS audits described above. Although the Company believes it has made adequate provisions for the uncertainties surrounding these audits, should the Company experience unfavorable outcomes, such outcomes could have a material impact on its results of operations, financial position, and cash flows.

Judgment is required in evaluating the Company’s uncertain tax positions and determining the Company’s provision for income taxes. Unrecognized tax benefits were $1.2 billion and $1.3 billion as of November 3, 2023 and February 3, 2023, respectively, and are included in other non-current liabilities in the Condensed Consolidated Statements of Financial Position. Although the timing of resolution or closure of uncertain tax positions is not certain, the Company believes it is reasonably possible that certain tax matters in various jurisdictions could be concluded within the next twelve months. The resolution of these matters could reduce the Company’s unrecognized tax benefits up to $0.4 billion including interest and penalties. Such a reduction would have a material impact on the Company’s effective tax rate.

40

DELL TECHNOLOGIES INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

The Company takes certain non-income tax positions in the jurisdictions in which it operates and has received certain non-income tax assessments from various jurisdictions. The Company believes that a material loss in these matters is not probable and that it is not reasonably possible that a material loss exceeding amounts already accrued has been incurred.  The Company believes its positions in these non-income tax litigation matters are supportable and that it ultimately will prevail in the matters. In the normal course of business, the Company’s positions and conclusions related to its non-income taxes could be challenged and assessments may be made. To the extent new information is obtained and the Company’s views on its positions, probable outcomes of assessments, or litigation change, changes in estimates to the Company’s accrued liabilities would be recorded in the period in which such a determination is made. In the resolution process for income tax and non-income tax audits, the Company is required in certain situations to provide collateral guarantees or indemnification to regulators and tax authorities until the matter is resolved.

41

DELL TECHNOLOGIES INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

NOTE 12 — ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

Accumulated other comprehensive income (loss) is presented in stockholders’ equity (deficit) in the Condensed Consolidated Statements of Financial Position and consists of amounts related to foreign currency translation adjustments, unrealized net gains (losses) on cash flow hedges, and actuarial net gains (losses) from pension and other postretirement plans.

The following table presents changes in accumulated other comprehensive income (loss), net of tax, by the following components as of the dates indicated:

	Foreign Currency Translation Adjustments		Cash Flow Hedges		Pension and Other Postretirement Plans		Accumulated Other Comprehensive Income (Loss)
	(in millions)
Balances as of February 3, 2023	$	(747)	$	(222)	$	(32)	$	(1,001)
Other comprehensive income (loss) before reclassifications	(130)		230		3		103
Amounts reclassified from accumulated other comprehensive income (loss)	—		75		—		75
Total change for the period	(130)		305		3		178
Balances as of November 3, 2023	$	(877)	$	83	$	(29)	$	(823)

Amounts related to the Company’s cash flow hedges are reclassified to net income during the same period in which the items being hedged are recognized in earnings. See Note 7 of the Notes to the Condensed Consolidated Financial Statements for more information on the Company’s derivative instruments.

42

DELL TECHNOLOGIES INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

The following table presents reclassifications out of accumulated other comprehensive income (loss), net of tax, to net income for the periods indicated:

	Three Months Ended
	November 3, 2023						October 28, 2022
	Cash Flow Hedges		Pensions		Total		Cash Flow Hedges		Pensions		Total
	(in millions)
Total reclassifications, net of tax:
Net revenue	$	83	$	—	$	83	$	324	$	—	$	324
Cost of net revenue	1		—		1		—		—		—
Operating expenses	—		—		—		—		(1)		(1)
Total reclassifications, net of tax	$	84	$	—	$	84	$	324	$	(1)	$	323

	Nine Months Ended
	November 3, 2023						October 28, 2022
	Cash Flow Hedges		Pensions		Total		Cash Flow Hedges		Pensions		Total
	(in millions)
Total reclassifications, net of tax:
Net revenue	$	(68)	$	—	$	(68)	$	754	$	—	$	754
Cost of net revenue	(7)		—		(7)		(28)		—		(28)
Operating expenses	—		—		—		—		(1)		(1)
Total reclassifications, net of tax	$	(75)	$	—	$	(75)	$	726	$	(1)	$	725

43

DELL TECHNOLOGIES INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

NOTE 13 — CAPITALIZATION

The following table presents the Company’s authorized, issued, and outstanding common stock as of the dates indicated:

	Authorized	Issued	Outstanding
	(in millions)
Common stock as of November 3, 2023
Class A	600	379	379
Class B	200	91	91
Class C	7,900	349	245
Class D	100	—	—
	8,800	819	715
Common stock as of February 3, 2023
Class A	600	379	379
Class B	200	95	95
Class C	7,900	324	242
Class D	100	—	—
	8,800	798	716

Preferred Stock

The Company is authorized to issue one million shares of preferred stock, par value $0.01 per share. As of November 3, 2023 and February 3, 2023, no shares of preferred stock were issued or outstanding.

Common Stock

Dell Technologies Common Stock — The Class A Common Stock, the Class B Common Stock, the Class C Common Stock, and the Class D Common Stock are collectively referred to as Dell Technologies Common Stock. The par value for all series of Dell Technologies Common Stock is $0.01 per share. The Class A Common Stock, the Class B Common Stock, the Class C Common Stock, and the Class D Common Stock share equally in dividends declared or accumulated and have equal participation rights in undistributed earnings.

Voting Rights — Each holder of record of (a) Class A Common Stock is entitled to ten votes per share of Class A Common Stock; (b) Class B Common Stock is entitled to ten votes per share of Class B Common Stock; (c) Class C Common Stock is entitled to one vote per share of Class C Common Stock; and (d) Class D Common Stock is not entitled to any vote on any matter except to the extent required by provisions of Delaware law (in which case such holder is entitled to one vote per share of Class D Common Stock).

Conversion Rights — Under the Company’s certificate of incorporation, at any time and from time to time, any holder of Class A Common Stock or Class B Common Stock has the right to convert all or any of the shares of Class A Common Stock or Class B Common Stock, as applicable, held by such holder into shares of Class C Common Stock on a one-to-one basis. 

During the nine months ended November 3, 2023, the Company issued 4.7 million shares of Class C Common Stock to stockholders upon the conversion of the same number of shares of Class B Common Stock into Class C Common Stock in accordance with the Company’s certificate of incorporation. During the nine months ended October 28, 2022, there were no conversions of shares of Class A Common Stock or Class B Common Stock into shares of Class C Common Stock.

44

DELL TECHNOLOGIES INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

Dividends

On February 24, 2022, the Company announced that the Board of Directors adopted a dividend policy providing for our payment of quarterly cash dividends on the Dell Technologies common stock at a rate of $0.33 per share per fiscal quarter beginning in the first quarter of Fiscal 2023. On March 2, 2023, the Company announced that the Board of Directors approved a 12% increase in the quarterly dividend rate from $0.33 per share per fiscal quarter to a rate of $0.37 per share per fiscal quarter beginning in the first quarter of Fiscal 2024.

The Company paid the following dividends during the periods presented:

Three Months Ended	Declaration Date	Record Date	Payment Date	Dividend per Share		Amount (in millions)
Fiscal 2024
May 5, 2023	March 2, 2023	April 25, 2023	May 5, 2023	$	0.37	$	270
August 4, 2023	June 16, 2023	July 25, 2023	August 4, 2023	$	0.37	$	268
November 3, 2023	September 28, 2023	October 24, 2023	November 3, 2023	$	0.37	$	266
Fiscal 2023
April 29, 2022	February 24, 2022	April 20, 2022	April 29, 2022	$	0.33	$	248
July 29, 2022	June 7, 2022	July 20, 2022	July 29, 2022	$	0.33	$	242
October 28, 2022	September 6, 2022	October 19, 2022	October 28, 2022	$	0.33	$	238

During the three and nine months ended November 3, 2023, the Company also paid an immaterial amount of dividend equivalents on eligible vested equity awards which are not reflected above.

Repurchases of Common Stock

Effective as of September 23, 2021, the Company’s Board of Directors approved a stock repurchase program under which the Company is authorized to repurchase up to $5 billion of shares of Class C Common Stock with no fixed expiration date.

Effective as of October 5, 2023, the Company’s Board of Directors approved the repurchase of an additional $5 billion of shares of the Company’s Class C Common Stock with no fixed expiration date. Following the approval, the Company had approximately $5.7 billion in authorized amount remaining under the stock repurchase program.

During the nine months ended November 3, 2023, the Company repurchased approximately 22 million shares of Class C Common Stock for a total purchase price of approximately $1.3 billion. During the nine months ended October 28, 2022, the Company repurchased approximately 59 million shares of Class C Common Stock for a total purchase price of approximately $2.7 billion.

The above repurchases of Class C Common Stock exclude shares withheld from stock awards to settle employee tax withholding obligations related to the vesting of such awards.

45

DELL TECHNOLOGIES INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

NOTE 14 — EARNINGS PER SHARE

Basic earnings per share is based on the weighted-average effect of all common shares issued and outstanding and is calculated by dividing net income by the weighted-average shares outstanding during the period. Diluted earnings per share is calculated by dividing net income by the weighted-average number of common shares used in the basic earnings per share calculation plus the number of common shares that would be issued assuming exercise or conversion of all potentially dilutive instruments. The Company excludes equity instruments from the calculation of diluted earnings per share if the effect of including such instruments is antidilutive.

The following table presents basic and diluted earnings per share for the periods indicated:

	Three Months Ended				Nine Months Ended
	November 3, 2023		October 28, 2022		November 3, 2023		October 28, 2022
Earnings per share attributable to Dell Technologies Inc.
Dell Technologies Common Stock — Basic	$	1.39	$	0.34	$	2.83	$	2.47
Dell Technologies Common Stock — Diluted	$	1.36	$	0.33	$	2.78	$	2.41

The following table presents the computation of basic and diluted earnings per share for the periods indicated:

	Three Months Ended				Nine Months Ended
	November 3, 2023		October 28, 2022		November 3, 2023		October 28, 2022
	(in millions)
Numerator: Dell Technologies Common Stock
Net income attributable to Dell Technologies Inc. - basic and diluted	$	1,006	$	245	$	2,051	$	1,828
Denominator: Dell Technologies Common Stock weighted-average shares outstanding
Weighted-average shares outstanding — basic	722		728		724		740
Dilutive effect of equity awards	18		15		14		19
Weighted-average shares outstanding — diluted	740		743		738		759
Weighted-average shares outstanding — antidilutive	—		18		5		11

46

DELL TECHNOLOGIES INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

NOTE 15 — RELATED PARTY TRANSACTIONS

For the periods presented within this report, VMware was considered to be a related party of the Company as a result of Michael Dell’s ownership interests in both Dell Technologies and VMware as well as Mr. Dell’s service as Chairman and Chief Executive Officer of Dell Technologies and as Chairman of the Board of VMware, Inc.

Subsequent to the close of the Company’s third quarter of Fiscal 2024, Broadcom Inc. completed its acquisition of VMware and terminated the preexisting related party relationship. See Note 18 of the Notes to the Condensed Consolidated Financial Statements for more information about the impact of the transaction on the Company’s relationship with VMware.

The information provided below includes a summary of transactions with VMware for the periods presented. Transactions with related parties other than VMware during the periods presented were immaterial, individually and in aggregate.

Transactions with VMware

•Pursuant to original equipment manufacturer and reseller arrangements, Dell Technologies integrates or bundles VMware’s products and services with Dell Technologies’ products and sells them to end-users. Dell Technologies also acts as a distributor, purchasing VMware’s standalone products and services for resale to end-user customers. Where applicable, costs under these arrangements are presented net of rebates received by Dell Technologies.

•Dell Technologies may procure products and services from VMware for its internal use. For the three and nine months ended November 3, 2023 and October 28, 2022, costs incurred associated with products and services purchased from VMware for internal use were immaterial.

•Dell Technologies sells and leases products and sells services to VMware. For the three and nine months ended November 3, 2023 and October 28, 2022, revenue recognized from sales of services to VMware was immaterial.

•DFS provides financing to certain VMware end-users. Upon acceptance of the financing arrangement by both VMware’s end-users and DFS, DFS recognizes amounts due to related parties on the Condensed Consolidated Statements of Financial Position. Associated financing fees are recorded to product net revenue on the Condensed Consolidated Statements of Income and are reflected within sales and leases of products to VMware in the table below.

•Dell Technologies and VMware also enter into joint marketing, sales, and branding arrangements, for which both parties may incur costs. For the three and nine months ended November 3, 2023 and October 28, 2022, consideration received from VMware for joint marketing, sales, and branding arrangements was immaterial.

•Dell Technologies and VMware entered into a transition services agreement in connection with the VMware Spin-off to provide various support services, including investment advisory services, certain support services from Dell Technologies personnel, and other transitional services. Costs associated with this agreement were immaterial for the three and nine months ended October 28, 2022. Activities under the agreement concluded during Fiscal 2023.

47

DELL TECHNOLOGIES INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

The following table presents information about the impact of Dell Technologies’ related party transactions with VMware on the Condensed Consolidated Statements of Income for the periods indicated:

		Three Months Ended				Nine Months Ended
	Classification	November 3, 2023		October 28, 2022		November 3, 2023		October 28, 2022
		(in millions)
Sales and leases of products to VMware	Net revenue - products	$	16	$	49	$	94	$	130
Purchase of VMware products for resale	Cost of net revenue - products	$	379	$	281	$	970	$	962
Purchase of VMware services for resale	Cost of net revenue - services	$	884	$	733	$	2,640	$	2,204

The following table presents information about the impact of Dell Technologies’ related party transactions with VMware on the Condensed Consolidated Statements of Financial Position as of the dates indicated:

	Classification	November 3, 2023		February 3, 2023
		(in millions)
Deferred costs related to VMware products and services for resale	Other current assets	$	2,926	$	3,000
Deferred costs related to VMware products and services for resale	Other non-current assets	$	2,201	$	2,537

	November 3, 2023		February 3, 2023
	(in millions)
Due from related party, net, current (a)	$	386	$	378
Due from related party, net, non-current (b)	$	239	$	440
Due to related party, current (c)	$	1,246	$	2,067
Due to related party, non-current (d)	$	11	$	—

____________________

(a)     Amounts due from related party, net, current consisted of amounts due from VMware, inclusive of current net tax receivables from VMware under the Tax Agreements described below. Amounts, excluding tax, are generally settled in cash within 60 days of each quarter-end.

(b)     Amounts due from related party, net, non-current consisted of the non-current portion of net receivables from VMware under the Tax Agreements.

(c)     Amounts due to related party, current included amounts due to VMware, which are generally settled in cash within 60 days of each quarter-end.

(d)     Amounts due to related party, non-current are included in other non-current liabilities.

Related Party Tax Matters

Tax Agreements — In connection with the VMware Spin-off and concurrently with the execution of the Separation and Distribution Agreement, effective as of April 14, 2021, Dell Technologies and VMware entered into a Tax Matters Agreement (the “Tax Matters Agreement”) and agreed to terminate the tax sharing agreement as amended on December 30, 2019 (together with the Tax Matters Agreement, the “Tax Agreements”). The Tax Matters Agreement governs Dell Technologies’ and VMware’s respective rights and obligations, both for pre-spin-off periods and post-spin-off periods, regarding income and other taxes, and related matters, including tax liabilities and benefits, attributes, and returns.

The timing of the tax payments due to and from related parties is governed by the Tax Agreements. VMware’s portion of the mandatory one-time transition tax on accumulated earnings of foreign subsidiaries (the “Transition Tax”) is governed by a letter agreement between VMware and Dell Technologies entered into on April 1, 2019.

48

DELL TECHNOLOGIES INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

Pursuant to the Tax Agreements, net receipts from VMware during the nine months ended November 3, 2023 and net payments to VMware during the nine months ended October 28, 2022 were immaterial.

As a result of the activity under the Tax Agreements with VMware, amounts due from VMware were $484 million and $599 million as of November 3, 2023 and February 3, 2023, respectively, and primarily related to VMware’s estimated tax obligation resulting from the Transition Tax. The 2017 Tax Cuts and Jobs Act included a deferral election for an eight-year installment payment method on the Transition Tax. Dell Technologies expects VMware to pay the remainder of its Transition Tax over a period of two years.

Indemnification — Upon consummation of the VMware Spin-off, Dell Technologies recorded net income tax indemnification receivables from VMware related to certain income tax liabilities for which Dell Technologies is jointly and severally liable, but for which it is indemnified by VMware under the Tax Matters Agreement. The amounts that VMware may be obligated to pay Dell Technologies could vary depending on the outcome of certain unresolved tax matters, which may not be resolved for several years. The net receivable as of November 3, 2023 and February 3, 2023 was $95 million and $146 million, respectively.

49

DELL TECHNOLOGIES INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

NOTE 16 — SEGMENT INFORMATION

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

ISG enables the Company’s customers’ digital transformation with solutions that address the fundamental shift to multicloud environments, machine learning, artificial intelligence (“AI”), and data analytics. The Company’s comprehensive storage portfolio includes traditional as well as next-generation storage solutions, including all-flash arrays, scale-out file, object platforms, hyperconverged infrastructure, and software-defined storage. The Company’s server portfolio includes high-performance rack, blade, and tower servers. The Company’s servers are designed with the capability to run high value workloads across customers’ IT environments, including the training, fine-tuning, and operationalization of AI models. The ISG networking portfolio helps the Company’s 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, docking stations, and other electronics), as well as third-party software and peripherals. CSG also includes services offerings, including support and deployment, configuration, and extended warranty services.

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 operating results 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.

Pursuant to the Commercial Framework Agreement (the “CFA”) established between Dell Technologies and VMware in connection with the VMware Spin-off, Dell Technologies acts as a distributor of VMware’s standalone products and services and purchases such products and services for resale to end-user customers (“VMware Resale”). Dell Technologies also integrates VMware’s products and services with Dell Technologies’ offerings and sells them to end users. The results of standalone VMware Resale transactions are reflected in other businesses. The results of integrated offering transactions are reflected within CSG or ISG, depending upon the nature of the underlying offering sold. Subsequent to the close of the Company’s third quarter of Fiscal 2024, Broadcom Inc. completed its acquisition of VMware. See Note 18 of the Notes to the Condensed Consolidated Financial Statements for more information about the impact of the transaction on the Company’s relationship with VMware.

50

DELL TECHNOLOGIES INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

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

	Three Months Ended				Nine Months Ended
	November 3, 2023		October 28, 2022		November 3, 2023		October 28, 2022
	(in millions)
Consolidated net revenue:
Infrastructure Solutions Group	$	8,499	$	9,630	$	24,553	$	28,451
Client Solutions Group	12,276		13,775		37,201		44,852
Reportable segment net revenue	20,775		23,405		61,754		73,303
Other businesses (a)	1,474		1,313		4,345		3,951
Unallocated transactions (b)	2		3		8		8
Total consolidated net revenue	$	22,251	$	24,721	$	66,107	$	77,262
Consolidated operating income:
Infrastructure Solutions Group	$	1,069	$	1,374	$	2,858	$	3,502
Client Solutions Group	925		1,060		2,786		3,153
Reportable segment operating income	1,994		2,434		5,644		6,655
Other businesses (a)	(32)		(57)		(112)		(192)
Unallocated transactions (b)	2		3		7		4
Impact of purchase accounting (c)	(2)		(21)		(10)		(33)
Amortization of intangibles	(205)		(245)		(613)		(732)
Transaction-related expenses (d)	(3)		(8)		(9)		(16)
Stock-based compensation expense (e)	(227)		(235)		(675)		(703)
Other corporate expenses (f)	(41)		(109)		(512)		(401)
Total consolidated operating income	$	1,486	$	1,762	$	3,720	$	4,582

____________________

(a)Other businesses consists of (i) VMware Resale, (ii) Secureworks, and (iii) Virtustream, and do not meet the requirements for a reportable segment, either individually or collectively.

(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 that was completed in September 2016.

(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 severance, impairment charges, facility action, payroll taxes associated with stock-based compensation, and other costs.

51

DELL TECHNOLOGIES INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

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				Nine Months Ended
	November 3, 2023		October 28, 2022		November 3, 2023		October 28, 2022
	(in millions)
Net revenue:
Infrastructure Solutions Group:
Servers and networking	$	4,656	$	5,201	$	12,767	$	15,458
Storage	3,843		4,429		11,786		12,993
Total ISG net revenue	$	8,499	$	9,630	$	24,553	$	28,451
Client Solutions Group:
Commercial	$	9,835	$	10,747	$	30,251	$	34,859
Consumer	2,441		3,028		6,950		9,993
Total CSG net revenue	$	12,276	$	13,775	$	37,201	$	44,852

52

DELL TECHNOLOGIES INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

NOTE 17 — SUPPLEMENTAL CONSOLIDATED FINANCIAL INFORMATION

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

	November 3, 2023		February 3, 2023
	(in millions)
Cash, cash equivalents, and restricted cash:
Cash and cash equivalents	$	8,298	$	8,607
Restricted cash - other current assets (a)	145		272
Restricted cash - other non-current assets (a)	5		15
Total cash, cash equivalents, and restricted cash	$	8,448	$	8,894
Inventories:
Production materials	$	1,875	$	3,225
Work-in-process	679		708
Finished goods	827		843
Total inventories	$	3,381	$	4,776
Deferred Costs:
Total deferred costs, current (b)	$	5,494	$	5,459
Property, plant, and equipment, net:
Computer equipment	$	7,534	$	6,899
Land and buildings	2,894		3,059
Machinery and other equipment	3,310		3,134
Total property, plant, and equipment	13,738		13,092
Accumulated depreciation and amortization	(7,516)		(6,883)
Total property, plant, and equipment, net	$	6,222	$	6,209

____________________

(a)    Restricted cash includes cash required to be held in escrow pursuant to DFS securitization arrangements.

(b)    Deferred costs are included in other current assets in the Condensed Consolidated Statements of Financial Position. Amounts classified as long-term deferred costs are included in other non-current assets and are not disclosed above.

Warranty Liability

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

	Three Months Ended				Nine Months Ended
	November 3, 2023		October 28, 2022		November 3, 2023		October 28, 2022
	(in millions)
Warranty liability:
Warranty liability at beginning of period	$	439	$	463	$	467	$	480
Costs accrued for new warranty contracts and changes in estimates for pre-existing warranties (a)	208		243		605		710
Service obligations honored	(203)		(241)		(628)		(725)
Warranty liability at end of period	$	444	$	465	$	444	$	465

____________________

(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 those made for new warranty obligations.

53

DELL TECHNOLOGIES INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

Severance Charges

The Company incurs costs related to employee severance and records a liability for these costs when it is probable that employees will be entitled to termination benefits and the amounts can be reasonably estimated. The liability related to these actions is included in accrued and other current liabilities in the Condensed Consolidated Statements of Financial Position.

The following table presents the activity related to the Company’s severance liability for the periods indicated:

	Three Months Ended				Nine Months Ended
	November 3, 2023		October 28, 2022		November 3, 2023		October 28, 2022
	(in millions)
Severance liability:
Severance liability at beginning of period	$	457	$	88	$	408	$	74
Severance charges	22		97		434		160
Cash paid and other	(277)		(105)		(640)		(154)
Severance liability at end of period	$	202	$	80	$	202	$	80

The following table presents severance charges as included in the Condensed Consolidated Statements of Income for the periods indicated:

	Three Months Ended				Nine Months Ended
	November 3, 2023		October 28, 2022		November 3, 2023		October 28, 2022
	(in millions)
Severance charges:
Cost of net revenue	$	7	$	21	$	54	$	22
Selling, general, and administrative	14		57		365		114
Research and development	1		19		15		24
Total severance charges	$	22	$	97	$	434	$	160

Supply Chain Finance Program

The Company maintains a Supply Chain Finance Program (the “SCF Program”), which enables eligible suppliers of the Company, at the supplier's sole discretion, to sell receivables due from the Company to a third-party financial institution. The Company has no involvement in establishing the terms or conditions of the arrangement between its suppliers and the financial institution and no economic interest in a supplier's decision to sell a receivable. Suppliers may elect to sell varying amounts of their outstanding receivables as part of the SCF Program. The Company does not provide legally secured assets or other forms of guarantees under the arrangement.

The SCF Program does not impact the Company's liquidity as payments for participating supplier invoices are remitted by the Company to the financial institution on the original invoice due date, regardless of whether an individual invoice is sold by the supplier to the financial institution. Further, the Company negotiates payment terms with suppliers regardless of their decision to participate in the SCF Program. Payment terms with such suppliers vary and do not exceed 120 days.

Any amounts due to the financial institution for suppliers participating in the SCF Program are recorded within Accounts Payable on the Company's Condensed Consolidated Statements of Financial Position and associated payments are included in cash flows from operating activities on the Condensed Consolidated Statements of Cash Flows.

As of both November 3, 2023 and February 3, 2023, the Company had $1.0 billion included within Accounts Payable representing invoices due to suppliers confirmed as valid under the SCF Program.

54

DELL TECHNOLOGIES INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

Interest and other, net

The following table presents information regarding interest and other, net for the periods indicated:

	Three Months Ended				Nine Months Ended
	November 3, 2023		October 28, 2022		November 3, 2023		October 28, 2022
	(in millions)
Interest and other, net:
Investment income, primarily interest	$	88	$	21	$	213	$	52
Gain (loss) on investments, net	8		44		(36)		(197)
Interest expense	(371)		(272)		(1,128)		(835)
Foreign exchange	(30)		(72)		(127)		(227)
Legal settlement, net	—		(1,000)		—		(1,000)
Other	(1)		(29)		(43)		(73)
Total interest and other, net	$	(306)	$	(1,308)	$	(1,121)	$	(2,280)

55

DELL TECHNOLOGIES INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

NOTE 18 — SUBSEQUENT EVENTS

On November 22, 2023, subsequent to the close of the Company’s third quarter of Fiscal 2024, VMware was acquired by Broadcom Inc. (“Broadcom”). Upon the completion of Broadcom’s acquisition of VMware, Mr. Dell relinquished his direct ownership interest in VMware and his position as Chairman of the Board of VMware, Inc. Mr. Dell’s subsequent ownership interest in Broadcom does not represent control or significant influence to an extent that the transacting parties might be prevented from fully pursuing their own separate interests. As a result, the Company determined that the acquisition terminated the preexisting related party relationship with VMware and that no related party relationship exists with either Broadcom or VMware as of the date of issuance of this report.

Other than the matter identified above, there were no known events occurring after November 3, 2023 and up until the date of issuance of this report that would materially affect the information presented herein.

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ITEM 2 — MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

This management’s discussion and analysis should be read in conjunction with the audited Consolidated Financial Statements and accompanying Notes included in the Company’s annual report on Form 10-K for the fiscal year ended February 3, 2023 and the unaudited Condensed Consolidated Financial Statements included in this report. In addition to historical financial information, the following discussion contains forward-looking statements that reflect our plans, estimates, and beliefs, and that are subject to numerous risks and uncertainties. Our actual results may differ materially from those expressed or implied in any forward-looking statements.

Unless otherwise indicated, all results presented are prepared in a manner that complies, in all material respects, with generally accepted accounting principles in the United States of America (“GAAP”). Unless otherwise indicated, all changes identified for the current-period results represent comparisons to results for the prior corresponding fiscal period.

Unless the context indicates otherwise, references in this report to “we,” “us,” “our,” the “Company,” and “Dell Technologies” mean Dell Technologies Inc. and its consolidated subsidiaries, references to “Dell” mean Dell Inc. and Dell Inc.’s consolidated subsidiaries, and references to “EMC” mean EMC Corporation and EMC Corporation’s consolidated subsidiaries.

Our fiscal year is the 52- or 53-week period ending on the Friday nearest January 31. We refer to our fiscal year ending February 2, 2024 as “Fiscal 2024” and our fiscal year ended February 3, 2023 as “Fiscal 2023.” Fiscal 2024 will include 52 weeks and Fiscal 2023 included 53 weeks.

INTRODUCTION

Company Overview

Dell Technologies helps organizations build their digital futures and individuals transform how they work, live, and play. We provide customers with one of the industry’s broadest and most innovative solutions portfolio for the data era, including traditional infrastructure and extending to multicloud environments. Our differentiated and holistic IT solutions enable us to capture growth as customer spending priorities evolve.

Dell Technologies’ integrated solutions help customers modernize their IT infrastructure, manage and operate in a multicloud world, address workforce transformation, and provide critical solutions that keep people and organizations connected. We are helping customers accelerate their digital transformations to improve and strengthen business and workforce productivity. With our extensive portfolio and our commitment to innovation, we offer secure, integrated solutions that extend from the edge to the core to the cloud, and we are at the forefront of software-defined and cloud native infrastructure solutions.

Dell Technologies operates globally in approximately 180 countries, supported by a world-class organization across key functional areas, including technology and product development, marketing, sales, financial services, and services. We have a number of operational advantages that provide a critical foundation for our success. Our go-to-market model includes a 27,000-person direct sales force and a global network of approximately 240,000 channel partners. We employ approximately 33,000 service and support professionals and maintain approximately 2,200 vendor-managed service centers. We also manage a world-class supply chain at significant scale with approximately $77 billion in annual procurement expenditures and over 725 parts distribution centers.

We further strengthen customer relationships through our financing offerings provided by Dell Financial Services and its affiliates (“DFS”) and our flexible consumption models, including utility, subscription, and as-a-Service models, which we continue to expand under Dell APEX. These offerings enable our customers to pay over time and provide them with financial flexibility to meet their changing technological requirements.

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Our Vision and Strategy

Our vision is to become the most essential technology company for the data era. We help customers address their evolving IT needs and their broader digital transformation objectives as they embrace today’s multicloud world. We intend to execute our vision by focusing on our strategy to leverage our strengths to extend our leadership positions and capture new growth across our core offerings, including opportunities such as artificial intelligence (“AI”), multicloud, edge, telecom, data management, and as-a-Service consumption models.

We believe we are uniquely positioned in the data and multicloud era and that our results will continue to benefit from our operational advantages. We intend to continue to execute our business model and position our Company for long-term success while balancing liquidity, profitability, and growth and keeping our purpose at the forefront of our decision-making: to create technologies that drive human progress.

The IT industry is rapidly evolving with demand for simple, agile solutions as companies leverage multiple clouds across their increasingly complex IT environments. To meet our customer needs, we continue to invest in research and development, sales, and other key areas of our business to deliver superior products and solutions capabilities and to drive long-term sustainable growth.

Products and Services

We design, develop, manufacture, market, sell, and support a wide range of comprehensive and integrated solutions, products, and services. We are organized into two business units, referred to as Infrastructure Solutions Group and Client Solutions Group, which are our reportable segments.

•Infrastructure Solutions Group (“ISG”) — ISG enables our customers’ digital transformations with solutions that address the fundamental shift to multicloud environments, machine learning, AI, and data analytics. ISG helps customers simplify, streamline, and automate cloud operations. ISG solutions are built for multicloud environments and are optimized to run cloud native workloads in both public and private clouds, as well as traditional on-premises workloads.

Our comprehensive storage portfolio includes traditional as well as next-generation storage solutions, including all-flash arrays, scale-out file, object platforms, hyper-converged infrastructure, and software-defined storage. We have simplified our storage portfolio and continue to make enhancements to our storage offerings that we expect will drive long-term improvements in the business.

Our server portfolio includes high-performance rack, blade, and tower servers. Our servers are designed with the capability to run high value workloads across customers’ IT on premises, multicloud, and edge environments, including the training, fine-tuning, and operationalization of AI models. Our networking portfolio helps our business customers transform and modernize their infrastructure, mobilize and enrich end-user experiences, and accelerate business applications and processes.

Our strengths in server, storage, and virtualization software solutions allow us to offer leading converged and hyper-converged solutions, enabling our customers to accelerate their IT transformation with scalable integrated solutions instead of building and assembling their own IT platforms. ISG also offers software, peripherals, and services, including configuration, and support and deployment.

Approximately half of ISG revenue is generated by sales to customers in the Americas, with the remaining portion derived from sales to customers in the Europe, Middle East, and Africa region (“EMEA”) and the Asia-Pacific and Japan region (“APJ”).

58

•Client Solutions Group (“CSG”) — CSG includes branded PCs including notebooks, desktops, and workstations and branded peripherals including displays and docking stations, as well as third-party software and peripherals. CSG also includes services offerings, such as support and deployment, configuration, and extended warranties.

Our CSG offerings are designed with our customers’ needs in mind and we seek to optimize performance, reliability, manageability, design, and security. Our commercial portfolio provides our customers with solutions centered around flexibility to address their complex needs such as IT modernization, hybrid work transformation, and other critical needs. Within our high-end consumer and gaming offerings, we provide our customers with powerful performance, processing, and end-user experiences.

Approximately 60% of CSG revenue is generated by sales to customers in the Americas, with the remaining portion derived from sales to customers in EMEA and APJ.

Our “other businesses,” described below, primarily consist of our resale of standalone offerings of VMware, Inc. (individually and together with its subsidiaries, “VMware”), referred to as “VMware Resale,” and offerings of SecureWorks Corp. (“Secureworks”). These businesses are not classified as reportable segments, either individually or collectively.

•VMware Resale consists of our sale of standalone VMware offerings. Under our Commercial Framework Agreement (the “CFA”) with VMware discussed in this report, Dell Technologies continues to act as a key channel partner for VMware, reselling VMware’s offerings to our customers. On November 22, 2023, subsequent to the close our third quarter of Fiscal 2024, VMware was acquired by Broadcom Inc. (“Broadcom”). See Note 18 of the Notes to the Condensed Consolidated Financial Statements included in this report for more information about the impact of the transaction on our relationship with VMware.

•Secureworks (NASDAQ: SCWX) is a leading global cybersecurity provider of technology-driven security solutions singularly focused on protecting its customers by outpacing and outmaneuvering the adversary. The solutions offered by Secureworks enable organizations of varying size and complexity to prevent security breaches, detect malicious activity, respond rapidly when a security breach occurs, and identify emerging threats.

Our offerings are continually evolving in response to customer needs. As a result, reclassifications of certain products and services solutions in major product categories may be required. For further discussion regarding our current reportable segments, see “Results of Operations — Business Unit Results” and Note 16 of the Notes to the Condensed Consolidated Financial Statements included in this report.

Dell Financial Services

DFS supports our businesses by offering and arranging various financing options and services for our customers globally. DFS originates, collects, and services customer receivables primarily related to the purchase or use of our product, software, and services offerings. We also arrange financing for some of our customers in various countries where DFS does not currently operate as a captive enterprise. We further strengthen customer relationships through flexible consumption models, including utility, subscription, and as-a-Service models, which also enable us to offer our customers the option to pay over time to provide them with financial flexibility to meet their changing technological requirements. The results of these operations are allocated to our segments based on the underlying product or service financed and may be impacted by, among other factors, changes in the interest rate environment and the translation of those changes to pricing. For additional information about our financing arrangements, see Note 4 of the Notes to the Condensed Consolidated Financial Statements included in this report.

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Relationship with VMware

On November 1, 2021, we completed our spin-off of VMware by means of a special stock dividend (the “VMware Spin-off”). In connection with and upon completion of the VMware Spin-off, we entered into a Commercial Framework Agreement (the “CFA”) with VMware, which provides the framework under which we and VMware continue our commercial relationship. Pursuant to the CFA, we act as a distributor of VMware’s standalone products and services and purchase such products and services for resale to customers.

For the periods presented within this report, VMware was considered to be a related party of the Company as a result of Michael Dell’s ownership interests in both Dell Technologies and VMware and Mr. Dell’s service as Chairman and Chief Executive Officer of Dell Technologies and as Chairman of the Board of VMware. Upon the completion of Broadcom’s acquisition of VMware described in “Products and Services” above, the Company determined that the acquisition terminated the preexisting related party relationship with VMware and that no related party relationship exists with either Broadcom or VMware as of the date of issuance of this report. For more information regarding related party transactions with VMware, see Note 15 of the Notes to the Condensed Consolidated Financial Statements included in this report.

Strategic Investments and Acquisitions

As part of our strategy, we will continue to evaluate opportunities for strategic investments through our venture capital investment arm, Dell Technologies Capital, with a focus on emerging technology areas that are relevant to our business and that will complement our existing portfolio of solutions. Our investment areas include storage, software-defined networking, management and orchestration, security, machine learning and AI, Big Data and analytics, cloud, edge computing, and software development operations. The technologies or products these companies have under development are typically in the early stages and may never have commercial value, which could result in a loss of a substantial part of our investment in the companies.

As of November 3, 2023 and February 3, 2023, we held strategic investments in non-marketable securities of $1.2 billion and $1.3 billion, respectively. See Note 3 of the Notes to the Condensed Consolidated Financial Statements included in this report for additional information.

In addition to these investments, we also may make disciplined acquisitions targeting businesses that advance our strategic objectives and accelerate our innovation agenda.

Product Backlog

Product backlog represents the value of unfulfilled manufacturing orders and is included as a component of remaining performance obligations to the extent we determine that the manufacturing orders are non-cancelable. Our business model generally gives us the ability to optimize product backlog at any point in time, such as by expediting shipping or prioritizing customer orders for products that have shorter lead times. During Fiscal 2023, we reduced our backlog across both CSG and ISG from previously elevated levels as constraints in limited-source components began to diminish as a result of improving supply positions and overall declines in the demand environment. During Fiscal 2024, while our supply chain has operated efficiently at standard lead times, demand for AI-optimized servers has outpaced supply of graphics processing units (“GPUs”) and, as such, backlog for such offerings has increased.

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Business Trends and Challenges

During the first nine months of Fiscal 2024, the effects of the evolving macroeconomic environment on demand persisted and, as a result, continued to impact our net revenue performance when compared to the first nine months of Fiscal 2023. Our CSG net revenue performance was impacted by industry-wide declines in demand that began in the second quarter of Fiscal 2023. Within ISG, our net revenue performance was impacted as certain customers, most notably enterprise and large corporate customers, remained cautious and measured in their IT spending. We anticipate that the continued impact of these dynamics, coupled with increasing competitive pricing pressure, will result in a decline in net revenue for both CSG and ISG for the remainder of Fiscal 2024 compared to the fourth quarter of Fiscal 2023. Further, we anticipate that the impact of Broadcom’s acquisition of VMware will result in a decrease in our other businesses net revenue beginning in the fourth quarter of Fiscal 2024. We will continue to execute disciplined cost management measures as we make prudent decisions to navigate this environment.

Despite continued near-term challenges, we are observing early signs of macroeconomic stabilization which we expect to continue and result in net revenue growth in Fiscal 2025. We believe our unique operational advantages continue to position us for long-term success.

Supply Chain — Dell Technologies maintains single-source and limited-source supplier relationships for certain components because the relationships are advantageous in the areas of performance, quality, support, delivery, capacity, and price considerations.

During the third quarter and first nine months of Fiscal 2024, our supply chain operated efficiently at standard lead times for our customers and we experienced declines in both component and logistics costs, which we refer to as input costs. We expect component cost deflation to moderate during the remainder of Fiscal 2024 and to turn inflationary in Fiscal 2025. Component cost trends are dependent on the strength or weakness of actual end-user demand and supply dynamics, which will continue to evolve and ultimately impact the translation of the cost environment to pricing and operating results. Logistics costs, which we believe have now normalized, continued to decrease from previously elevated levels as a result of declines in both expedited shipments and overall rate costs in the freight network.

Foreign Currency Exposure — We manage our business on a U.S. dollar basis. However, we have a large global presence, generating approximately half of our net revenue from sales to customers outside of the United States during the third quarter and first nine months of Fiscal 2024 and Fiscal 2023. As a result, our operating results can be, and particularly in recent periods have been, impacted by fluctuations in foreign currency exchange rates. We utilize a comprehensive hedging strategy intended to mitigate the impact of foreign currency volatility over time, and we adjust pricing when possible to further minimize foreign currency impacts.

ISG — We expect that ISG will continue to be impacted by the changing nature of the IT infrastructure market and competitive environment. With our scale and strong solutions portfolio, we believe we are well-positioned to respond to ongoing competitive dynamics and trends in workloads and usage patterns.

Through our collaborative, customer-focused approach to innovation, we strive to deliver new and relevant solutions and software to our customers quickly and efficiently. We continue to focus on customer base expansion and lifetime value of customer relationships. Our customer base includes service providers, such as cloud service providers, Software-as-a-Service companies, consumer webtech providers, and telecommunications companies. These service providers turn to Dell Technologies for our advanced solutions that enable efficient infrastructure and service delivery at cloud scale.

While we anticipate challenges in the demand environment as customers re-prioritize and continue to exercise caution in response to macroeconomic conditions, we expect that data growth will continue to generate long-term demand for our storage solutions and services. Cloud native applications are expected to continue to be a key trend in the infrastructure market. We benefit from offering solutions that address the emerging trends of enterprises deploying software-defined storage, hyper-converged infrastructure, and modular solutions based on server-centric architectures. These trends are changing the way customers are consuming our storage offerings. We continue to expand our offerings in external storage arrays, which incorporate flexible, cloud-based functionality. Our storage business is subject to seasonal trends, which we expect to continue.

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We anticipate that ISG will benefit from the continued expansion of, and advances in, AI. Through our server and storage offerings, including our AI optimized solutions, we are well positioned to capture growth and support our customers needs. As demonstrated by our PowerEdge XE servers, we continue to optimize and enhance our offerings to run high value and transformational workloads, such as AI.

CSG — Our CSG offerings are an important element of our strategy, generating strong cash flow and opportunities for cross-selling of complementary solutions. Within CSG, while we participate in all segments of the PC market, we are focused on commercial and high-end consumer computing devices, as we believe they are the most stable and profitable markets. Competitive dynamics continue to be a factor in our CSG business and continue to impact pricing and operating results.

We remain committed to our long-term CSG strategy and will continue to make investments to innovate across the portfolio. We expect that the CSG demand environment will continue to be subject to seasonal trends.

Recurring Revenue and Consumption Models — Our customers are seeking new and innovative models that address how they consume our solutions. In part, customers are looking for predictable cost models and to reduce complexity, align solutions offerings with their business needs, and provide consistent operations throughout their IT enterprise.

We offer options including leases, loans, immediate pay, as-a-Service, subscription, and utility models designed to match customers' consumption and financing preferences. We believe these options are particularly advantageous for our customers during times of economic uncertainty as they provide customers with financial flexibility to further enable them to procure our solutions.

These offerings typically result in multiyear agreements which generate recurring revenue streams over the term of the arrangement. We expect that these offerings will further strengthen our customer relationships and provide a foundation for growth in recurring revenue. We define recurring revenue as revenue recognized that is primarily related to hardware and software maintenance as well as operating leases, subscription, as-a-Service, and usage-based offerings.

Other Macroeconomic Risks and Uncertainties — The impacts of trade protection measures, including increases in tariffs and trade barriers, changes in government policies and international trade arrangements, geopolitical volatility (including ongoing military conflicts in Ukraine and the Middle East), and global macroeconomic challenges (including those in China), may affect our ability to conduct business in some non-U.S. markets. We monitor and seek to mitigate these risks with adjustments to our manufacturing, supply chain, and distribution networks.

Key Performance Metrics

Our key performance metrics include net revenue, operating income, and cash flows from operations, which are discussed elsewhere in this management’s discussion and analysis.

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NON-GAAP FINANCIAL MEASURES

In this management’s discussion and analysis, we use supplemental measures of our performance which are derived from our consolidated financial information but which are not presented in our consolidated financial statements prepared in accordance with GAAP. These non-GAAP financial measures include non-GAAP product gross margin; non-GAAP services gross margin; non-GAAP gross margin; non-GAAP operating expenses; non-GAAP operating income; non-GAAP net income; earnings before interest and other, net, taxes, depreciation, and amortization (“EBITDA”); and adjusted EBITDA. These non-GAAP financial measures are not meant to be considered as indicators of performance in isolation from or as a substitute for gross margin, operating expenses, operating income, or net income prepared in accordance with GAAP, and should be read only in conjunction with financial information presented on a GAAP basis.

We use non-GAAP financial measures to supplement financial information presented on a GAAP basis. Management considers these non-GAAP measures in evaluating our operating trends and performance. Moreover, we believe these non-GAAP financial measures provide our stakeholders with useful and transparent information to help them evaluate our operating results by facilitating an enhanced understanding of our operating performance and enabling them to make more meaningful period to period comparisons. There are limitations to the use of the non-GAAP financial measures presented in this report. Our non-GAAP financial measures may not be comparable to similarly titled measures of other companies. Other companies, including companies in our industry, may calculate non-GAAP financial measures differently than we do, limiting the usefulness of those measures for comparative purposes.

Non-GAAP product gross margin, non-GAAP services gross margin, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, and non-GAAP net income, as defined by us, exclude amortization of intangible assets, the impact of purchase accounting, transaction-related expenses, stock-based compensation expense, other corporate expenses and, for non-GAAP net income, fair value adjustments on equity investments and an aggregate adjustment for income taxes. As the excluded items may have a material impact on our financial results, our management compensates for this limitation by relying primarily on our GAAP results and using non-GAAP financial measures supplementally or for projections when comparable GAAP financial measures are not available.

Reconciliations of each non-GAAP financial measure to its most directly comparable GAAP financial measure are presented below. We encourage you to review the reconciliations in conjunction with the presentation of the non-GAAP financial measures for each of the periods presented. The discussion below includes information on each of the excluded items as well as our reasons for excluding them from our non-GAAP results. In future fiscal periods, we may exclude such items and may incur income and expenses similar to these excluded items. Accordingly, the exclusion of these items and other similar items in our non-GAAP presentation should not be interpreted as implying that these items are non-recurring, infrequent, or unusual.

The following is a summary of the items excluded from the most comparable GAAP financial measures to calculate our non-GAAP financial measures:

•Amortization of Intangible Assets — Amortization of intangible assets primarily consists of amortization of customer relationships, developed technology, and trade names. In connection with our acquisition by merger of EMC, referred to as the “EMC merger transaction,” and the acquisition of Dell Inc. by Dell Technologies Inc., referred to as the “going-private transaction,” all of the tangible and intangible assets and liabilities of EMC and Dell Inc. and their consolidated subsidiaries, respectively, were accounted for and recognized at fair value on the transaction dates. Accordingly, for the periods presented, amortization of intangible assets primarily represents amortization associated with intangible assets recognized in connection with the EMC merger transaction and the going-private transaction. Amortization charges for purchased intangible assets are significantly impacted by the timing and magnitude of our acquisitions, and these charges may vary in amount from period to period. We exclude these charges for purposes of calculating the non-GAAP financial measures presented below to facilitate an enhanced understanding of our current operating performance and provide more meaningful period to period comparisons.

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•Impact of Purchase Accounting — The impact of purchase accounting includes purchase accounting adjustments primarily related to the EMC merger transaction recorded under the acquisition method of accounting in accordance with the accounting guidance for business combinations. In accordance with such guidance, all of the assets and liabilities acquired were accounted for and recognized at fair value as of the transaction date, and the fair value adjustments continue to amortize over the estimated useful lives in the periods following the transactions. The fair value adjustments that are still amortizing primarily relate to property, plant, and equipment. We believe that excluding the impact of purchase accounting for purposes of calculating the non-GAAP financial measures presented below facilitates an enhanced understanding of our current operating performance and provides more meaningful period to period comparisons.

•Transaction-Related (Income) Expenses — Transaction-related expenses typically consist of acquisition, integration, and divestiture related costs and are expensed as incurred. These expenses primarily represent costs for legal, banking, consulting, and advisory services.  From time to time, this category also may include transaction-related income related to divestitures of businesses or asset sales. We exclude these items for purposes of calculating the non-GAAP financial measures presented below to facilitate an enhanced understanding of our current operating performance and provide more meaningful period to period comparisons.

•Stock-based Compensation Expense — Stock-based compensation expense consists of equity awards granted based on the estimated fair value of those awards at grant date. To estimate the fair value of performance-based awards containing a market condition, we use the Monte Carlo valuation model. For other share-based awards, the fair value is generally based on the closing price of the Class C Common Stock as reported on the NYSE on the date of grant.  Although stock-based compensation is an important aspect of the compensation of our employees and executives, the fair value of the stock-based awards may bear little resemblance to the actual value realized upon the vesting or future exercise of the related stock-based awards. We believe that excluding stock-based compensation expense for purposes of calculating the non-GAAP financial measures presented below facilitates an enhanced understanding of our current operating performance and provides more meaningful period to period comparisons.

•Other Corporate Expenses — Other corporate expenses consist of impairment charges, incentive charges related to equity investments, severance, facility action, payroll taxes associated with stock-based compensation, and other costs. During the first nine months of Fiscal 2024, we recognized $0.4 billion of severance expense related to workforce reduction activities. Severance costs are primarily related to severance and benefits for employees terminated pursuant to cost savings initiatives. During the third quarter of Fiscal 2023, other corporate expenses includes $1.0 billion of expense recognized within interest and other, net, in connection with an agreement to settle the Class V transaction litigation. See Note 10 of the Notes to the Condensed Consolidated Financial Statements included in this report for information about this matter. During the first nine months of Fiscal 2023, we recognized $0.2 billion in costs associated with exiting our business in Russia, primarily related to asset impairments and other exit related costs. Other corporate expenses vary from period to period and are significantly impacted by the timing and nature of these events. Therefore, although we may incur these types of expenses in the future, we believe that eliminating these charges for purposes of calculating the non-GAAP financial measures presented below facilitates an enhanced understanding of our current operating performance and provides more meaningful period to period comparisons.

•Fair Value Adjustments on Equity Investments — Fair value adjustments on equity investments primarily consist of the gain (loss) on strategic investments, which includes recurring fair value adjustments of investments in publicly-traded companies, as well as those in privately-held companies, which are adjusted for observable price changes and any potential impairments. See Note 3 of the Notes to the Condensed Consolidated Financial Statements included in this report for additional information on our strategic investment activity. Given the volatility in the ongoing adjustments to the valuation of these strategic investments, we believe that excluding these gains and losses for purposes of calculating non-GAAP net income presented below facilitates an enhanced understanding of our current operating performance and provides more meaningful period to period comparisons.

•Aggregate Adjustment for Income Taxes — The aggregate adjustment for income taxes is the estimated combined income tax effect for the adjustments described above, as well as an adjustment for discrete tax items. Due to the variability in recognition of discrete tax items from period to period, we believe that excluding these benefits or charges for purposes of calculating non-GAAP net income facilitates an enhanced understanding of our current operating performance and provides more meaningful period to period comparisons. The tax effects are determined based on the tax jurisdictions where the above items were incurred. See Note 11 of the Notes to the Condensed Consolidated Financial Statements included in this report for additional information on our income taxes.

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The following table presents a reconciliation of each non-GAAP financial measure to the most directly comparable GAAP measure for the periods indicated:

	Three Months Ended						Nine Months Ended
	November 3, 2023		% Change		October 28, 2022		November 3, 2023		% Change		October 28, 2022
	(in millions, except percentages)
Product gross margin	$	2,687	(19)	%	$	3,337	$	8,281	(17)	%	$	9,931
Non-GAAP adjustments:
Amortization of intangibles	84				106		247				315
Impact of purchase accounting	—				—		—				2
Stock-based compensation expense	12				12		38				38
Other corporate expenses	—				(2)		15				14
Non-GAAP product gross margin	$	2,783	(19)	%	$	3,453	$	8,581	(17)	%	$	10,300
Services gross margin	$	2,461	4	%	$	2,370	$	7,272	4	%	$	6,999
Non-GAAP adjustments:
Stock-based compensation expense	25				25		74				74
Other corporate expenses	7				17		49				83
Non-GAAP services gross margin	$	2,493	3	%	$	2,412	$	7,395	3	%	$	7,156
Gross margin	$	5,148	(10)	%	$	5,707	$	15,553	(8)	%	$	16,930
Non-GAAP adjustments:
Amortization of intangibles	84				106		247				315
Impact of purchase accounting	—				—		—				2
Stock-based compensation expense	37				37		112				112
Other corporate expenses	7				15		64				97
Non-GAAP gross margin	$	5,276	(10)	%	$	5,865	$	15,976	(8)	%	$	17,456
Operating expenses	$	3,662	(7)	%	$	3,945	$	11,833	(4)	%	$	12,348
Non-GAAP adjustments:
Amortization of intangibles	(121)				(139)		(366)				(417)
Impact of purchase accounting	(2)				(21)		(10)				(31)
Transaction-related expenses	(3)				(8)		(9)				(16)
Stock-based compensation expense	(190)				(198)		(563)				(591)
Other corporate expenses	(34)				(94)		(448)				(304)
Non-GAAP operating expenses	$	3,312	(5)	%	$	3,485	$	10,437	(5)	%	$	10,989

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	Three Months Ended						Nine Months Ended
	November 3, 2023		% Change		October 28, 2022		November 3, 2023		% Change		October 28, 2022
	(in millions, except percentages)
Operating income	$	1,486	(16)	%	$	1,762	$	3,720	(19)	%	$	4,582
Non-GAAP adjustments:
Amortization of intangibles	205				245		613				732
Impact of purchase accounting	2				21		10				33
Transaction-related expenses	3				8		9				16
Stock-based compensation expense	227				235		675				703
Other corporate expenses	41				109		512				401
Non-GAAP operating income	$	1,964	(17)	%	$	2,380	$	5,539	(14)	%	$	6,467
Net income	$	1,004	317	%	$	241	$	2,037	12	%	$	1,816
Non-GAAP adjustments:
Amortization of intangibles	205				245		613				732
Impact of purchase accounting	2				21		10				33
Transaction-related (income) expenses	(5)				4		54				(2)
Stock-based compensation expense	227				235		675				703
Other corporate expenses	41				1,112		512				1,420
Fair value adjustments on equity investments	(8)				(44)		36				197
Aggregate adjustment for income taxes	(77)				(109)		(302)				(494)
Non-GAAP net income	$	1,389	(19)	%	$	1,705	$	3,635	(17)	%	$	4,405

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In addition to the above measures, we also use EBITDA and adjusted EBITDA to provide additional information for evaluation of our operating performance. Adjusted EBITDA excludes stock-based compensation expense, transaction-related expenses, and other corporate expenses, as defined above.

As is the case with the non-GAAP measures presented above, users should consider the limitations of using EBITDA and adjusted EBITDA, including the fact that those measures do not provide a complete measure of our operating performance. EBITDA and adjusted EBITDA do not purport to be alternatives to net income as a measure of operating performance or to cash flows from operating activities as a measure of liquidity. In particular, EBITDA and adjusted EBITDA are not intended to be a measure of cash flow available for management’s discretionary use, as these measures do not consider certain cash requirements, such as working capital needs, capital expenditures, contractual commitments, interest payments, tax payments, and other debt service requirements.

The following table presents a reconciliation of EBITDA and adjusted EBITDA to net income for the periods indicated:

	Three Months Ended						Nine Months Ended
	November 3, 2023		% Change		October 28, 2022		November 3, 2023		% Change		October 28, 2022
	(in millions, except percentages)
Net income	$	1,004	317	%	$	241	$	2,037	12	%	$	1,816
Adjustments:
Interest and other, net (a)	306				1,308		1,121				2,280
Income tax expense (benefit)	176				213		562				486
Depreciation and amortization	822				832		2,462				2,302
EBITDA	$	2,308	(11)	%	$	2,594	$	6,182	(10)	%	$	6,884
EBITDA	$	2,308	(11)	%	$	2,594	$	6,182	(10)	%	$	6,884
Adjustments:
Stock-based compensation expense	227				235		675				703
Transaction-related expenses	3				8		9				16
Other corporate expenses	41				109		512				401
Adjusted EBITDA	$	2,579	(12)	%	$	2,946	$	7,378	(8)	%	$	8,004

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(a)See “Results of Operations — Interest and Other, Net” for more information on the components of interest and other, net.

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RESULTS OF OPERATIONS

Consolidated Results

The following table summarizes our consolidated results for the periods indicated. Unless otherwise indicated, all changes identified for the current-period results represent comparisons to results for the prior corresponding fiscal period.

	Three Months Ended										Nine Months Ended
	November 3, 2023						October 28, 2022				November 3, 2023						October 28, 2022
	Dollars		% of  Net Revenue		% Change		Dollars		% of  Net Revenue		Dollars		% of Net Revenue		% Change		Dollars		% of Net Revenue
	(in millions, except percentages)
Net revenue:
Products	$	16,233	73.0	%	(14)	%	$	18,938	76.6	%	$	48,204	72.9	%	(20)	%	$	60,212	77.9	%
Services	6,018		27.0	%	4	%	5,783		23.4	%	17,903		27.1	%	5	%	17,050		22.1	%
Total net revenue	$	22,251	100.0	%	(10)	%	$	24,721	100.0	%	$	66,107	100.0	%	(14)	%	$	77,262	100.0	%
Gross margin:
Products (a)	$	2,687	16.6	%	(19)	%	$	3,337	17.6	%	$	8,281	17.2	%	(17)	%	$	9,931	16.5	%
Services (b)	2,461		40.9	%	4	%	2,370		41.0	%	7,272		40.6	%	4	%	6,999		41.0	%
Total gross margin	$	5,148	23.1	%	(10)	%	$	5,707	23.1	%	$	15,553	23.5	%	(8)	%	$	16,930	21.9	%
Operating expenses	$	3,662	16.4	%	(7)	%	$	3,945	16.0	%	$	11,833	17.9	%	(4)	%	$	12,348	16.0	%
Operating income	$	1,486	6.7	%	(16)	%	$	1,762	7.1	%	$	3,720	5.6	%	(19)	%	$	4,582	5.9	%
Net income	$	1,004	4.5	%	317	%	$	241	1.0	%	$	2,037	3.1	%	12	%	$	1,816	2.4	%
Non-GAAP Financial Information
	Three Months Ended										Nine Months Ended
	November 3, 2023						October 28, 2022				November 3, 2023						October 28, 2022
	Dollars		% of  Net Revenue		% Change		Dollars		% of  Net Revenue		Dollars		% of Net Revenue		% Change		Dollars		% of Net Revenue
	(in millions, except percentages)
Non-GAAP gross margin:
Products (a)	$	2,783	17.1	%	(19)	%	$	3,453	18.2	%	$	8,581	17.8	%	(17)	%	$	10,300	17.1	%
Services (b)	2,493		41.4	%	3	%	2,412		41.7	%	7,395		41.3	%	3	%	7,156		42.0	%
Total non-GAAP gross margin	$	5,276	23.7	%	(10)	%	$	5,865	23.7	%	$	15,976	24.2	%	(8)	%	$	17,456	22.6	%
Non-GAAP operating expenses	$	3,312	14.9	%	(5)	%	$	3,485	14.1	%	$	10,437	15.8	%	(5)	%	$	10,989	14.2	%
Non-GAAP operating income	$	1,964	8.8	%	(17)	%	$	2,380	9.6	%	$	5,539	8.4	%	(14)	%	$	6,467	8.4	%
Non-GAAP net income	$	1,389	6.2	%	(19)	%	$	1,705	6.9	%	$	3,635	5.5	%	(17)	%	$	4,405	5.7	%
EBITDA	$	2,308	10.4	%	(11)	%	$	2,594	10.5	%	$	6,182	9.4	%	(10)	%	$	6,884	8.9	%
Adjusted EBITDA	$	2,579	11.6	%	(12)	%	$	2,946	11.9	%	$	7,378	11.2	%	(8)	%	$	8,004	10.4	%

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(a)    Product gross margin and non-GAAP product gross margin percentages are calculated as a percentage of product net revenue.

(b)    Services gross margin and non-GAAP services gross margin percentages are calculated as a percentage of services net revenue.

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Non-GAAP product gross margin, non-GAAP services gross margin, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP net income, EBITDA, and adjusted EBITDA are not measurements of financial performance prepared in accordance with GAAP. See “Non‑GAAP Financial Measures” for additional information about these non-GAAP financial measures, including our reasons for including these measures, material limitations with respect to the usefulness of the measures, and a reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure.

Overview

During the third quarter and first nine months of Fiscal 2024, net revenue decreased by 10% and 14%, respectively, driven by declines in CSG net revenue and, to a lesser extent, ISG net revenue, which reflected the continued impact of global macroeconomic conditions on demand. The decline in CSG net revenue was primarily attributable to a decrease in units sold within both commercial and consumer offerings which, during the first nine months of Fiscal 2024, was partially offset by an increase in average selling prices of our commercial offerings. ISG net revenue decreased as a result of a reduction in net revenue attributable to both servers and networking and storage. During the first nine months of Fiscal 2024, the decline in ISG net revenue was most notable in servers and networking.

During the third quarter and first nine months of Fiscal 2024, operating income decreased by 16% to $1.5 billion and 19% to $3.7 billion, respectively. Non-GAAP operating income decreased 17% to $2.0 billion and 14% to $5.5 billion, during the third quarter and first nine months of Fiscal 2024, respectively. The decline in operating income and non-GAAP operating income during both periods was driven by decreases in ISG operating income and, to a lesser extent, CSG operating income which both declined primarily as a result of a decrease in net revenue that outpaced the favorable impacts of a decline in input costs and cost management measures. The decline in ISG operating income was primarily attributable to servers and networking and, to a lesser extent, storage. The decline in CSG operating income was driven by decreases in both commercial and consumer offerings.

During the third quarter of Fiscal 2024, operating income and non-GAAP operating income as a percentage of net revenue decreased 40 basis points to 6.7% and 80 basis points to 8.8%, respectively. During the first nine months of Fiscal 2024, operating income and non-GAAP operating income as a percentage of net revenue decreased 30 basis points to 5.6% and remained flat at 8.4%, respectively. During both periods, operating income and non-GAAP operating income as a percentage of net revenue was impacted by an increase in operating expense as a percentage of net revenue, principally within ISG, that was attributable to a decrease in net revenue which outpaced the impact of continued cost management measures and, to a lesser extent, continued investment in research and development. For the first nine months of Fiscal 2024, non-GAAP operating income as a percentage of net revenue remained flat as the impact of an increase in non-GAAP operating expense as a percentage of net revenue was fully offset by an increase in non-GAAP gross margin as a percentage of net revenue.

Cash provided by operating activities was $7.1 billion during the first nine months of Fiscal 2024, and was primarily driven by profitability and working capital management as we reduced inventory, demonstrated strong cash collections performance, and benefited from the timing of purchases and payments to vendors. During the first nine months of Fiscal 2023, cash provided by operating activities was $0.9 billion, which primarily reflected profitability that was partially offset by the impact of working capital dynamics. See “Liquidity, Cash Requirements, and Market Conditions” for additional information about our cash flow metrics.

Despite the near-term challenges driven by uncertainty in the macroeconomic environment, we continue to see opportunities to create value and grow as we respond to long-term demand for our IT solutions driven by a technology- and data-enabled world. We have demonstrated our ability to adjust to changing market conditions with complementary solutions and innovation across both segments of our business, an agile workforce, and the strength of our global supply chain. As we continue to innovate and modernize our offerings, we believe that Dell Technologies is well-positioned for long-term profitable growth.

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Net Revenue

During the third quarter and first nine months of Fiscal 2024, net revenue decreased 10% and 14%, respectively, primarily driven by declines in CSG net revenue and, to a lesser extent, ISG net revenue. See “Business Unit Results” for further information.

•Product Net Revenue — Product net revenue includes revenue from the sale of hardware products and software licenses. During the third quarter and first nine months of Fiscal 2024, product net revenue decreased 14% and 20%, respectively, due to declines in CSG product net revenue and, to a lesser extent, ISG product net revenue. During both periods, CSG product net revenue decreased primarily as a result of a decline in units sold, which impacted both our commercial and consumer offerings. During the first nine months of Fiscal 2024, the impact of a decline in CSG units sold was partially offset by an increase in average selling prices of our commercial offerings. During the third quarter of Fiscal 2024, the decline in ISG product net revenue was attributable to a decrease in product net revenue for both servers and networking and storage. For the first nine months of Fiscal 2024, the decline in ISG product net revenue was primarily attributable to a decrease in product net revenue attributable to servers and networking, and, to a lesser extent, a decline in our product net revenue attributable to storage offerings. The decline in product net revenue attributable to servers and networking for both periods was driven by a decrease in units sold.

•Services Net Revenue — Services net revenue includes revenue from our services offerings and support services related to hardware products and software licenses. During the third quarter and first nine months of Fiscal 2024, services net revenue increased 4% and 5%, respectively, driven primarily by growth within services net revenue attributable to CSG and other businesses. The increases in services net revenue attributable to CSG were driven primarily by third-party software support and maintenance and hardware support and maintenance. The increases in services net revenue attributable to other businesses were driven primarily by VMware Resale. A substantial portion of services net revenue is derived from offerings that have been deferred over a period of time, and, as a result, reported growth rates for services net revenue will be different than reported growth rates for product net revenue.

From a geographical perspective, net revenue decreased in the Americas, EMEA, and APJ during both the third quarter and first nine months of Fiscal 2024, with the greatest decrease occurring in APJ.

Gross Margin

During the third quarter of Fiscal 2024, gross margin and non-GAAP gross margin both decreased 10% to $5.1 billion and $5.3 billion, respectively. During the first nine months of Fiscal 2024, gross margin and non-GAAP gross margin both decreased 8% to $15.6 billion and $16.0 billion, respectively. The declines were driven by decreases in both CSG and ISG gross margin that were primarily attributable to a decrease in net revenue, the effect of which was partially offset by lower input costs.

During the third quarter of Fiscal 2024, gross margin and non-GAAP gross margin percentage remained flat at 23.1% and 23.7%, respectively. Both gross margin and non-GAAP gross margin percentage benefited from an increase in ISG gross margin as a percentage of net revenue, which increased primarily as a result of an overall decline in input costs coupled with disciplined pricing. The impact of an increase in ISG gross margin as a percentage of net revenue was offset by a shift in the mix of net revenue towards lower margin offerings.

During the first nine months of Fiscal 2024, both gross margin and non-GAAP gross margin percentage increased 160 basis points to 23.5% and 24.2%, respectively. The increases were primarily attributable to the impacts of an overall decline in input costs coupled with an increase in average selling price across many of our offerings as we maintained strong pricing discipline.

•Product Gross Margin — During the third quarter of Fiscal 2024, product gross margin and non-GAAP product gross margin both decreased 19% to $2.7 billion and $2.8 billion, respectively. During the first nine months of Fiscal 2024, product gross margin and non-GAAP product gross margin both decreased 17% to $8.3 billion and $8.6 billion, respectively. The decreases were primarily driven by declines in both ISG and CSG product gross margin, which were largely attributable to declines in product net revenue.

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During the third quarter of Fiscal 2024, product gross margin percentage and non-GAAP product gross margin percentage decreased 100 basis points to 16.6% and 110 basis points to 17.1%, respectively. The declines were driven primarily by a decrease in ISG product gross margin percentage and, to a lesser extent, CSG product gross margin percentage. ISG product gross margin percentage declined primarily as a result of a shift in the mix of ISG product net revenue recognized towards offerings with lower product gross margin percentages. CSG product gross margin percentage declined primarily as a result of increasing competitive pricing pressure.

During the first nine months of Fiscal 2024, both product gross margin percentage and non-GAAP product gross margin percentage increased 70 basis points to 17.2% and 17.8%, respectively. The increases were driven primarily by the impacts of an overall decline in input costs coupled with an increase in average selling price across many of our offerings as we maintained strong pricing discipline.

•Services Gross Margin — During the third quarter of Fiscal 2024, services gross margin and non-GAAP services gross margin increased 4% to $2.5 billion and 3% to $2.5 billion, respectively. During the first nine months of Fiscal 2024, services gross margin and non-GAAP services gross margin increased 4% to $7.3 billion and 3% to $7.4 billion, respectively. The increases were primarily attributable to growth within ISG services gross margin and, to a lesser extent CSG services gross margin, that was driven by support and maintenance associated with products sold in prior periods.

During the third quarter of Fiscal 2024, services gross margin percentage and non-GAAP services gross margin percentage decreased 10 basis points to 40.9% and 30 basis points to 41.4%, respectively. During the first nine months of Fiscal 2024, services gross margin percentage decreased 40 basis points to 40.6% and non-GAAP services gross margin percentage decreased 70 basis points to 41.3%, respectively. The decreases were driven primarily by a shift in mix of services delivered, partially offset by an increase in ISG services gross margin percentage.

Vendor Programs

Our gross margin is affected by our ability to achieve competitive pricing with our vendors and contract manufacturers, including through our negotiation of a variety of vendor rebate programs to achieve lower net costs for the various components we include in our products. Under these programs, vendors provide us with rebates or other discounts from the list prices for the components, which are generally elements of their pricing strategy. We account for vendor rebates and other discounts as a reduction in cost of net revenue. We manage our costs on a total net cost basis, which includes supplier list prices reduced by vendor rebates and other discounts.

The terms and conditions of our vendor rebate programs are largely based on product volumes and are generally negotiated either at the beginning of the annual or quarterly period, depending on the program. The timing and amount of vendor rebates and other discounts we receive under the programs may vary from period to period, reflecting changes in the competitive environment. We monitor our component costs and seek to address the effects of any changes to terms that might arise under our vendor rebate programs. Our gross margins for the third quarter and first nine months of Fiscal 2024 were not materially affected by any changes to the terms of our vendor rebate programs, as the amounts we received under these programs were generally stable relative to our total net cost. We are not aware of any significant changes to our vendor rebate programs that will materially impact our results in the near term.

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Operating Expenses

The following table presents information regarding our operating expenses for the periods indicated:

	Three Months Ended										Nine Months Ended
	November 3, 2023						October 28, 2022				November 3, 2023						October 28, 2022
	Dollars		% of Net Revenue		% Change		Dollars		% of Net Revenue		Dollars		% of Net Revenue		% Change		Dollars		% of Net Revenue
	(in millions, except percentages)
Operating expenses:
Selling, general, and administrative	$	2,970	13.3	%	(9)	%	$	3,268	13.3	%	$	9,748	14.7	%	(6)	%	$	10,364	13.4	%
Research and development	692		3.1	%	2	%	677		2.7	%	2,085		3.2	%	5	%	1,984		2.6	%
Total operating expenses	$	3,662	16.4	%	(7)	%	$	3,945	16.0	%	$	11,833	17.9	%	(4)	%	$	12,348	16.0	%
	Three Months Ended										Nine Months Ended
	November 3, 2023						October 28, 2022				November 3, 2023						October 28, 2022
	Dollars		% of Net Revenue		% Change		Dollars		% of Net Revenue		Dollars		% of Net Revenue		% Change		Dollars		% of Net Revenue
	(in millions, except percentages)
Non-GAAP operating expenses	$	3,312	14.9	%	(5)	%	$	3,485	14.1	%	$	10,437	15.8	%	(5)	%	$	10,989	14.2	%

During the third quarter and first nine months of Fiscal 2024, total operating expenses decreased 7% and 4%, respectively, due to a decline in selling, general, and administrative expenses, which was partially offset by an increase in research and development expenses.

•Selling, General, and Administrative — During the third quarter and first nine months of Fiscal 2024, selling, general, and administrative (“SG&A”) expenses decreased 9% and 6%, respectively, principally due to continued disciplined cost management. During the third quarter of Fiscal 2024, the decline in SG&A expenses was driven primarily by a decrease in employee compensation and benefits expense principally as a result of a reduction in overall headcount. During the first nine months of Fiscal 2024, the decline in SG&A expenses was driven primarily by decreases in advertising and outside services expense, partially offset by the impact of costs incurred in connection with workforce reductions.

•Research and Development — Research and development (“R&D”) expenses are primarily composed of personnel-related expenses incurred in connection with product development. R&D expenses increased 2% and 5%, respectively, during the third quarter and first nine months of Fiscal 2024 principally due to an increase in employee compensation and benefits expense.

As a percentage of net revenue, R&D expenses for the third quarter of Fiscal 2024 and Fiscal 2023 were 3.1% and 2.7%, respectively, and for the first nine months of Fiscal 2024 and Fiscal 2023 were 3.2% and 2.6%, respectively. The increases in R&D expenses as a percentage of net revenue were attributable to continued R&D investments as we support R&D initiatives to innovate and introduce new and enhanced solutions into the market.

During both the third quarter and first nine months of Fiscal 2024, non-GAAP operating expenses decreased 5%, principally due to continued disciplined cost management which resulted in a decline in outside services, employee compensation and benefits, and advertising expenses, among other items.

We continue to make selective investments designed to enable growth, marketing, and R&D, while balancing our efforts to drive cost efficiencies in the business. We also expect to continue making investments in support of our own digital transformation to modernize our IT operations.

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Operating Income

During the third quarter and first nine months of Fiscal 2024, operating income decreased by 16% to $1.5 billion and 19% to $3.7 billion, respectively. Non-GAAP operating income decreased 17% to $2.0 billion and 14% to $5.5 billion, during the third quarter and first nine months of Fiscal 2024, respectively. The decline in operating income and non-GAAP operating income during both periods was driven by decreases in ISG operating income and, to a lesser extent, CSG operating income which both declined primarily as a result of a decrease in net revenue that outpaced the favorable impacts of a decline in input costs and continued cost management measures. The decline in ISG operating income was primarily attributable to servers and networking and, to a lesser extent, storage. The decline in CSG operating income was driven by decreases in both commercial and consumer.

During the third quarter of Fiscal 2024, operating income and non-GAAP operating income as a percentage of net revenue decreased 40 basis points to 6.7% and 80 basis points to 8.8%, respectively. During the first nine months of Fiscal 2024, operating income and non-GAAP operating income as a percentage of net revenue decreased 30 basis points to 5.6% and remained flat at 8.4%, respectively. During both periods, operating income and non-GAAP operating income as a percentage of net revenue was impacted by an increase in operating expense as a percentage of net revenue, principally within ISG, that was attributable to a decrease in net revenue which outpaced the impact of continued cost management measures and, to a lesser extent, continued investment in research and development. For the first nine months of Fiscal 2024, non-GAAP operating income as a percentage of net revenue remained flat as the impact of an increase in non-GAAP operating expense as a percentage of net revenue was fully offset by an increase in non-GAAP gross margin as a percentage of net revenue.

Interest and Other, Net

The following table presents information regarding interest and other, net for the periods indicated:

	Three Months Ended				Nine Months Ended
	November 3, 2023		October 28, 2022		November 3, 2023		October 28, 2022
	(in millions)
Interest and other, net:
Investment income, primarily interest	$	88	$	21	$	213	$	52
Gain (loss) on investments, net	8		44		(36)		(197)
Interest expense	(371)		(272)		(1,128)		(835)
Foreign exchange	(30)		(72)		(127)		(227)
Legal settlement, net	—		(1,000)		—		(1,000)
Other	(1)		(29)		(43)		(73)
Total interest and other, net	$	(306)	$	(1,308)	$	(1,121)	$	(2,280)

During both the third quarter and first nine months of Fiscal 2024, the change in interest and other, net was favorable, primarily as a result of $1.0 billion of expense recognized in the third quarter of Fiscal 2023 in connection with an agreement to settle the Class V transaction litigation, described in Note 10 to the Notes to the Condensed Consolidated Financial Statements included in this report, coupled with an increase in interest income on investments during the Fiscal 2024 periods. During both periods, these benefits were partially offset by an increase in interest expense primarily associated with DFS securitization and structured financing programs.

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Income and Other Taxes

The following table presents information regarding our income and other taxes for the periods indicated:

	Three Months Ended						Nine Months Ended
	November 3, 2023			October 28, 2022			November 3, 2023			October 28, 2022
	(in millions, except percentages)
Income before income taxes	$	1,180		$	454		$	2,599		$	2,302
Income tax expense	$	176		$	213		$	562		$	486
Effective income tax rate	14.9		%	46.9		%	21.6		%	21.1		%

For the third quarter of Fiscal 2024 and Fiscal 2023, our effective income tax rate was 14.9% and 46.9%, respectively. The decline in our effective tax rate was primarily attributable to the impact of expenses recognized in the three months ended October 28, 2022 in connection with an agreement to settle the Class V transaction litigation, as described in Note 10 to the Notes to the Condensed Consolidated Financial Statements included in this report. Other changes in our effective income tax rate were attributable to higher U.S. tax on our foreign operations, changes in our jurisdictional mix of income, and the impact of discrete tax items.

For the first nine months of Fiscal 2024 and Fiscal 2023, our effective income tax rate was 21.6% and 21.1%, respectively. The increase in our effective tax rate was attributable to higher U.S. tax on our foreign operations, changes in our jurisdictional mix of income, and the impact of discrete tax items, largely offset by the impact of the litigation expenses discussed above.

Our effective income tax rate can fluctuate depending on the geographic distribution of our worldwide earnings, as our foreign earnings are generally taxed at lower rates than in the United States. The differences between our effective income tax rates and the U.S. federal statutory rate of 21% principally result from the geographical distribution of income, differences between the book and tax treatment of certain items, and discrete tax items. In certain jurisdictions, our tax rate is significantly less than the applicable statutory rate as a result of tax holidays. The majority of our foreign income subject to these tax holidays is attributable to Singapore and China. A significant portion of these income tax benefits relates to a tax holiday that will be effective until January 31, 2029. Most of our other tax holidays will expire in whole or in part during Fiscal 2030 through Fiscal 2031. Many of these tax holidays and reduced tax rates may be extended when certain conditions are met or may be terminated early if certain conditions are not met or as a result of changes in tax legislation. As of November 3, 2023, we were not aware of any matters of noncompliance or enacted tax legislative changes affecting these tax holidays.

For further discussion regarding tax matters, including the status of income tax audits, see Note 11 of the Notes to the Condensed Consolidated Financial Statements included in this report.

Net Income

During the third quarter and first nine months of Fiscal 2024, net income increased 317% to $1.0 billion and 12% to $2.0 billion, respectively, driven primarily by a favorable change in interest and other, net, partially offset by a decline in operating income.

During the third quarter and first nine months of Fiscal 2024, non-GAAP net income decreased 19% to $1.4 billion and 17% to $3.6 billion, respectively, driven by a decline in operating income.

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Business Unit Results

Our reportable segments are based on the ISG and CSG business units. A description of our business units is provided under “Introduction.” See Note 16 of the Notes to the Condensed Consolidated Financial Statements included in this report for a reconciliation of net revenue and operating income by reportable segment to consolidated net revenue and consolidated operating income, respectively.

Infrastructure Solutions Group

The following table presents net revenue and operating income attributable to ISG for the periods indicated:

	Three Months Ended								Nine Months Ended
	November 3, 2023			% Change		October 28, 2022			November 3, 2023			% Change		October 28, 2022
	(in millions, except percentages)
Net revenue:
Servers and networking	$	4,656		(10)	%	$	5,201		$	12,767		(17)	%	$	15,458
Storage	3,843			(13)	%	4,429			11,786			(9)	%	12,993
Total ISG net revenue	$	8,499		(12)	%	$	9,630		$	24,553		(14)	%	$	28,451
Operating income:
ISG operating income	$	1,069		(22)	%	$	1,374		$	2,858		(18)	%	$	3,502
% of segment net revenue	12.6		%			14.3		%	11.6		%			12.3		%

Net Revenue — During the third quarter and first nine months of Fiscal 2024, ISG net revenue decreased 12% and 14%, respectively. During the third quarter of Fiscal 2024, the decline in ISG net revenue was driven by a decline in both servers and networking net revenue and storage net revenue. During the first nine months of Fiscal 2024, the decline in ISG net revenue was driven primarily by servers and networking net revenue and, to a lesser extent, storage net revenue.

Revenue from sales of servers and networking decreased 10% and 17% during the third quarter and first nine months of Fiscal 2024, respectively, driven by a decrease in units sold, the effect of which was partially offset by an increase in average selling price of our server offerings. The average selling price for our server offerings increased as a result of the impact of attached offerings and richer configurations.

During the third quarter and first nine months of Fiscal 2024, storage net revenue decreased 13% and 9%, respectively, primarily driven by a decline in net revenue across the majority of our storage offerings.

From a geographical perspective, net revenue attributable to ISG decreased in the Americas, EMEA, and APJ during the third quarter and first nine months of Fiscal 2024.

Operating Income — During the third quarter and first nine months of Fiscal 2024, ISG operating income as a percentage of net revenue decreased 170 basis points to 12.6% and 70 basis points to 11.6%, respectively, principally due to an increase in operating expenses as a percentage of net revenue. Operating expense as a percentage of net revenue increased as a result of a decline in revenue that outpaced the impact of continued cost management measures coupled with continued investment in research and development. The impact of an increase in operating expense as a percentage of net revenue was partially offset by an overall decline in input costs coupled with an increase in average selling price.

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Client Solutions Group

The following table presents net revenue and operating income attributable to CSG for the periods indicated:

	Three Months Ended								Nine Months Ended
	November 3, 2023			% Change		October 28, 2022			November 3, 2023			% Change		October 28, 2022
	(in millions, except percentages)
Net revenue:
Commercial	$	9,835		(8)	%	$	10,747		$	30,251		(13)	%	$	34,859
Consumer	2,441			(19)	%	3,028			6,950			(30)	%	9,993
Total CSG net revenue	$	12,276		(11)	%	$	13,775		$	37,201		(17)	%	$	44,852
Operating income:
CSG operating income	$	925		(13)	%	$	1,060		$	2,786		(12)	%	$	3,153
% of segment net revenue	7.5		%			7.7		%	7.5		%			7.0		%

Net Revenue — During the third quarter and first nine months of Fiscal 2024, CSG net revenue decreased 11% and 17%, respectively, driven by a decline in units sold as global macroeconomic conditions continued to impact demand.

Commercial net revenue decreased 8% and 13%, respectively, during the third quarter and first nine months of Fiscal 2024. The decreases were primarily due to a decrease in units sold which was partially offset by the effect of an increase in the average selling price of our commercial offerings. Average selling prices for our commercial offerings increased primarily as a result of richer configurations and the mix of offerings sold.

Consumer net revenue decreased 19% and 30%, respectively, during the third quarter and first nine months of Fiscal 2024, principally due to a decrease in units sold.

From a geographical perspective, net revenue attributable to CSG decreased primarily in APJ and, to a lesser extent, in the Americas and EMEA during both the third quarter and first nine months of Fiscal 2024.

Operating Income — During the third quarter of Fiscal 2024, CSG operating income as a percentage of net revenue decreased 20 basis points to 7.5%. The decline in CSG operating income as a percentage of net revenue was driven primarily by our consumer business, largely attributable to a decrease in average selling prices, partially offset by the results of our commercial business.

During the first nine months of Fiscal 2024, CSG operating income as a percentage of net revenue increased 50 basis points to 7.5%, primarily due to the impact of an overall decrease in input costs coupled with an increase in average selling prices for our commercial offerings, as described above. The impact of these factors was partially offset by an increase in operating expenses as a percentage of net revenue, which increased as a result of a decline in CSG net revenue that outpaced the impact of continued cost management measures.

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OTHER BALANCE SHEET ITEMS

Accounts Receivable

We sell products and services directly to customers and through a variety of sales channels, including retail distribution. Our accounts receivable, net, was $9.7 billion and $12.5 billion as of November 3, 2023 and February 3, 2023, respectively. The reduction in accounts receivable, net primarily reflects strong collections coupled with a decline in net revenue. We maintain an allowance for expected credit losses to cover receivables that may be deemed uncollectible. The allowance for expected credit losses is an estimate based on an analysis of historical loss experience, current receivables aging, and management’s assessment of current conditions and its reasonable and supportable expectation of future conditions, as well as specific identifiable customer accounts that are deemed at risk. As of November 3, 2023 and February 3, 2023, the allowance for expected credit losses was $74 million and $78 million, respectively. Based on our assessment, we believe that we are adequately reserved for expected credit losses. We are monitoring the impact of current economic conditions and the aging of our accounts receivable on our expected losses and have not experienced deterioration in delinquency or loss rates. We will continue to take actions, where necessary, to reduce our exposure to credit losses.

Dell Financial Services and Financing Receivables

We offer or arrange various financing options and services for our customers globally, including through captive financing operations. DFS originates, collects, and services customer receivables primarily related to the purchase of our product, software, and service solutions. We further strengthen customer relationships through flexible consumption models, including utility, subscription, and as-a-Service models, which enable us to offer our customers the option to pay over time to provide them with financial flexibility to meet their changing technological requirements. New financing originations were $1.8 billion and $2.3 billion for the third quarter of Fiscal 2024 and Fiscal 2023, respectively, and $6.0 billion and $6.7 billion for the first nine months of Fiscal 2024 and Fiscal 2023, respectively.

Our leases are generally classified as sales-type leases or operating leases. On commencement of sales-type leases, we recognize profit up-front, and recognize amounts due from the customer under the lease contract as financing receivables. Interest income is recognized as net product revenue over the term of the lease. Upon origination of operating leases, we record equipment under operating leases, classified as property, plant, and equipment. We recognize product revenue and depreciation expense, classified as cost of net revenue, over the contract term.

As of November 3, 2023 and February 3, 2023, our financing receivables, net were $10.3 billion and $10.9 billion, respectively. The decline in financing receivables was driven by the sale of our U.S. consumer revolving customer financing receivables portfolio. See Note 4 of the Notes to the Condensed Consolidated Financial Statements included in this report for additional information about the reclassification. We maintain an allowance to cover expected financing receivable credit losses and evaluate credit loss expectations based on our total portfolio. For the third quarter and first nine months of Fiscal 2024 and Fiscal 2023, the principal charge-off rate for our financing receivables portfolio was 0.6% and 0.5%, respectively. The credit quality of our financing receivables has improved in recent years as the mix of high-quality commercial accounts in our portfolio has continued to increase. We continue to monitor broader economic indicators and their potential impact on future credit loss performance. We have an extensive process to manage our exposure to customer credit risk, including active management of credit lines and our collection activities. We also sell selected fixed-term financing receivables without recourse to unrelated third parties on a periodic basis, primarily to manage certain concentrations of customer credit exposure.  Based on our assessment of the customer financing receivables, we believe that we are adequately reserved.

We retain a residual interest in equipment leased under our lease programs. As of November 3, 2023 and February 3, 2023, the residual interest recorded as part of financing receivables was $150 million and $142 million, respectively. The amount of the residual interest is established at the inception of the lease based upon estimates of the value of the equipment at the end of the lease term using historical studies, industry data, and future value-at-risk demand valuation methods. On a quarterly basis, we assess the carrying amount of our recorded residual values for expected losses. Generally, expected losses as a result of residual value risk on equipment under lease are not considered to be significant primarily because of the existence of a secondary market with respect to the equipment. Further, the lease agreement defines applicable return conditions and remedies for non-compliance to ensure that the leased equipment will be in good operating condition upon return. No expected losses were recorded related to residual assets during the third quarter and first nine months of Fiscal 2024 and Fiscal 2023.

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As of November 3, 2023 and February 3, 2023, equipment under operating leases, net was $2.1 billion and $2.2 billion, respectively. We assess the carrying amount of the equipment under operating leases for impairment whenever events or circumstances may indicate that an impairment has occurred. No material impairment losses were recorded related to such equipment during the third quarter and first nine months of Fiscal 2024 and Fiscal 2023.

DFS offerings are initially funded through cash on hand at the time of origination, most of which is subsequently replaced with asset-backed financing. For DFS offerings which qualify as sales-type leases, the initial funding of financing receivables is reflected as an impact to cash flows from operations and is largely subsequently offset by cash proceeds from financing. For DFS operating leases, the initial funding is classified as a capital expenditure and reflected as an impact to cash flows used in investing activities.

See Note 4 of the Notes to the Condensed Consolidated Financial Statements included in this report for additional information about our financing receivables and the associated allowances, and equipment under operating leases.

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LIQUIDITY, CASH REQUIREMENTS, AND MARKET CONDITIONS

Liquidity and Capital Resources

We rely on operating cash flows, which are impacted by trends in the demand environment, as our primary source of liquidity for our ongoing business operations. We monitor the efficiency of our balance sheet to ensure that we have adequate liquidity to support our business and strategic initiatives.

In addition to internally generated cash, we have access to other capital sources to finance our strategic initiatives and fund growth in our financing operations. Our strategy is to deploy capital from any potential source, whether internally generated cash or debt, depending on the adequacy and availability of that source of capital and whether it can be accessed in a cost-effective manner.

We believe that our current cash and cash equivalents, together with cash that will be provided by future operations and borrowings expected to be available under our revolving credit facility and commercial paper program, will be sufficient over at least the next twelve months and for the foreseeable future thereafter to meet our material cash requirements, including funding of our operations, debt-related payments, capital expenditures, and other corporate needs.

As part of our overall capital allocation strategy, we intend to return capital to our stockholders through both share repurchase programs and dividend payments, drive growth, and maintain our investment grade credit rating.

The following table presents our cash and cash equivalents as well as our available borrowings as of the dates indicated:

	November 3, 2023		February 3, 2023
	(in millions)
Cash and cash equivalents, and available borrowings:
Cash and cash equivalents	$	8,298	$	8,607
Remaining available borrowings under 2021 Revolving Credit Facility	5,999		5,999
Total cash and cash equivalents, and available borrowings	$	14,297	$	14,606

During the first nine months of Fiscal 2024, cash and cash equivalents decreased by $0.3 billion primarily driven by capital expenditures, the return of capital to our stockholders, and the repayment of Senior Notes, the effect of which was partially offset by cash flows from operations.

As of November 3, 2023, our 2021 Revolving Credit Facility had a maximum capacity of $6.0 billion. Available borrowings under this facility are reduced by draws on the facility and outstanding letters of credit. As of November 3, 2023, there were no borrowings outstanding under the facility and remaining available borrowings totaled approximately $6.0 billion. The 2021 Revolving Credit Facility also acts as a backstop to provide liquidity support for our commercial paper program.

We maintain a commercial paper program under which we may issue unsecured notes in a maximum aggregate face amount of $5.0 billion outstanding at any time, with maturities up to 397 days from the date of issue. As of November 3, 2023, we had no outstanding borrowings under the program.

We may regularly use our available borrowings from the 2021 Revolving Credit Facility and issuances under the commercial paper program on a short-term basis for general corporate purposes. See the following discussion for additional information about our debt.

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Debt

The following table presents our outstanding debt as of the dates indicated:

	November 3, 2023		Change		February 3, 2023
	(in millions)
Core debt
Senior Notes	$	16,107	$	(2,193)	$	18,300
Legacy Notes and Debentures	952		—		952
DFS allocated debt	(1,271)		(75)		(1,196)
Total core debt	15,788		(2,268)		18,056
DFS related debt
DFS debt	9,620		(670)		10,290
DFS allocated debt	1,271		75		1,196
Total DFS related debt	10,891		(595)		11,486
Other	181		(144)		325
Total debt, principal amount	26,860		(3,007)		29,867
Carrying value adjustments	(243)		36		(279)
Total debt, carrying value	$	26,617	$	(2,971)	$	29,588

The outstanding principal amount of our debt decreased $3.0 billion to $26.9 billion as of November 3, 2023, driven primarily by the prepayment of $2.0 billion principal amount of Senior Notes and a reduction in DFS debt which was principally attributable to the prepayment and termination of our U.S. securitization facility for revolving loans.

We define core debt as the total principal amount of our debt, less DFS related debt and other debt. Our core debt was $15.8 billion and $18.1 billion as of November 3, 2023 and February 3, 2023, respectively. See Note 6 of the Notes to the Condensed Consolidated Financial Statements included in this report for additional information about our debt.

DFS related debt primarily represents debt from our securitization and structured financing programs. Our risk of loss under these programs is limited to transferred lease and loan payments and associated equipment, as the credit holders have no recourse to Dell Technologies.

To fund expansion of the DFS business, we balance the use of the securitization and structured financing programs with other sources of liquidity. We approximate the amount of our core debt used to fund the DFS business by applying a 7:1 debt-to-equity ratio to the sum of our financing receivables balance and equipment under our DFS operating leases, net. The debt-to-equity ratio is based on the underlying credit quality of the assets. See Note 4 of the Notes to the Condensed Consolidated Financial Statements included in this report for additional information about our DFS debt.

We believe we will continue to be able to make our debt principal and interest payments, including short-term maturities, from existing and expected sources of cash, primarily from operating cash flows. Cash used for debt principal and interest payments may include short-term borrowings under our commercial paper program, our revolving credit facility, or other borrowings. Under our variable-rate debt, we could experience variations in our future interest expense from potential fluctuations in applicable reference rates, or from possible fluctuations in the level of DFS debt required to meet future demand for customer financing.

At our sole discretion, we may purchase, redeem, prepay, refinance, or otherwise retire any amount of our outstanding indebtedness under the terms of such indebtedness at any time and from time to time, in open market or negotiated transactions with the holders of such indebtedness or otherwise, as we consider appropriate in light of market conditions and other relevant factors.

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Cash Flows

The following table presents a summary of our Condensed Consolidated Statements of Cash Flows for the periods indicated:

	Nine Months Ended
	November 3, 2023		October 28, 2022
	(in millions)
Net change in cash from:
Operating activities	$	7,143	$	851
Investing activities	(2,114)		(2,228)
Financing activities	(5,275)		(3,138)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	(200)		(343)
Change in cash, cash equivalents, and restricted cash	$	(446)	$	(4,858)

Operating Activities — Cash provided by operating activities was $7.1 billion during the first nine months of Fiscal 2024, and was primarily driven by profitability and working capital management as we reduced inventory, demonstrated strong cash collections performance, and benefited from the timing of purchases and payments to vendors. Cash provided by operating activities also reflected the impact of the $0.9 billion net payment to settle the Class V transaction litigation and $0.4 billion in proceeds from the sale of our U.S. consumer revolving customer receivables portfolio. During the first nine months of Fiscal 2023, cash provided by operating activities was $0.9 billion, which primarily reflected profitability that was partially offset by the impact of working capital dynamics.

Investing Activities — Investing activities primarily consist of cash used to fund capital expenditures for property, plant, and equipment inclusive of equipment under DFS operating leases and equipment used to support our as-a-Service offerings, which we refer to collectively as revenue-generating assets. Additional activities include capitalized software development costs, acquisitions and divestitures, and the maturities, sales, and purchases of investments. Cash used in investing activities was $2.1 billion and $2.2 billion during the first nine months of Fiscal 2024 and Fiscal 2023, respectively, and was primarily applied to capital expenditures.

Financing Activities — Financing activities primarily consist of the proceeds and repayments of debt and return of capital to our stockholders. Cash used in financing activities was $5.3 billion during the first nine months of Fiscal 2024 and primarily consisted of principal repayments of our Senior Notes, repurchases of common stock, inclusive of payments to settle employee tax withholdings on stock-based compensation, and the payment of quarterly dividends. During the first nine months of Fiscal 2023, cash used in financing activities was $3.1 billion and primarily consisted of repurchases of common stock, inclusive of payments to settle employee tax withholdings on stock-based compensation, and the payment of quarterly dividends.

DFS Cash Flow Impacts — DFS offerings are initially funded through cash on hand at the time of origination, most of which is subsequently replaced with asset-backed financing. For DFS offerings that qualify as sales-type leases, the initial funding of financing receivables is reflected as an impact to cash flows from operations and is largely subsequently offset by cash proceeds from financing. For operating leases, the initial funding is classified as a capital expenditure and reflected as cash flows used in investing activities. DFS new financing originations were $6.0 billion and $6.7 billion during the first nine months of Fiscal 2024 and Fiscal 2023, respectively. As of November 3, 2023, the Company had $10.3 billion of total net financing receivables and $2.1 billion of equipment under operating leases, net.

Supply Chain Finance Program — We maintain a Supply Chain Finance Program (the "SCF Program”) which enables eligible suppliers to sell receivables due from us to a third-party financial institution at the suppliers’ sole discretion. The SCF Program does not impact our liquidity. Payments by us to participating suppliers are remitted to the financial institution on the original invoice due date. Further, we negotiate payment terms with our suppliers regardless of their decision to participate in the SCF Program. Payments made under the SCF Program are included in cash flows from operating activities on the Condensed Consolidated Statements of Cash Flows. See Note 17 of the Notes to the Condensed Consolidated Financial Statements included in this report for more information regarding the SCF Program.

81

Capital Commitments and Other Cash Requirements

Capital Expenditures — We spent $2.0 billion and $2.2 billion, respectively, during the first nine months of Fiscal 2024 and Fiscal 2023 on property, plant, and equipment and capitalized software development costs. Of total expenditures incurred, funding of revenue-generating assets totaled $0.9 billion and $1.1 billion during the first nine months of Fiscal 2024 and Fiscal 2023, respectively. Product demand, product mix, the use of contract manufacturers, and ongoing investments in operating and information technology infrastructure influence the level and prioritization of our capital expenditures. Aggregate capital expenditures for Fiscal 2024 are currently expected to total between $2.8 billion and $3.0 billion, of which approximately $1.4 billion are expected to relate to revenue-generating assets.

Repurchases of Common Stock — Effective as of September 23, 2021, our Board of Directors approved a stock repurchase program with no fixed expiration date under which we are authorized to repurchase up to $5.0 billion of shares of our Class C Common Stock. Effective as of October 5, 2023, the Company’s Board of Directors approved the repurchase of an additional $5.0 billion of shares of the Class C Common Stock with no fixed expiration date. Following the approval, the Company had approximately $5.7 billion in cumulative authorized amount remaining under the stock repurchase program.

During the first nine months of Fiscal 2024, the Company repurchased approximately 22 million shares of Class C Common Stock for a total purchase price of approximately $1.3 billion. During the first nine months of Fiscal 2023, the Company repurchased approximately 59 million shares of Class C Common Stock for a total purchase price of approximately $2.7 billion.

Dividend Payments — On February 24, 2022, we announced that our Board of Directors adopted a dividend policy providing for our payment of quarterly cash dividends on our common stock at a rate of $0.33 per share per fiscal quarter beginning in the first quarter of Fiscal 2023. On March 2, 2023, the Company announced that the Board of Directors approved a 12% increase in the quarterly dividend rate from $0.33 per share per fiscal quarter to a rate of $0.37 per share per fiscal quarter beginning in the first quarter of Fiscal 2024. During the first nine months of Fiscal 2024 and Fiscal 2023, the Company paid $811 million and $728 million, respectively, in dividends and dividend equivalents.

Purchase Obligations — Purchase obligations are defined as contractual obligations to purchase goods or services that are enforceable and legally binding on us. These obligations specify all significant terms, including fixed or minimum quantities to be purchased; fixed, minimum, or variable price provisions; and the approximate timing of the transaction. Purchase obligations do not include contracts that may be canceled without penalty.

We utilize several suppliers to manufacture sub-assemblies for our products. Our efficient supply chain management allows us to enter into flexible and mutually beneficial purchase arrangements with our suppliers in order to minimize inventory risk. Consistent with industry practice, we acquire raw materials or other goods and services, including product components, by issuing to suppliers authorizations to purchase based on our projected demand and manufacturing needs. These purchase orders are typically fulfilled within 30 days and are entered into during the ordinary course of business in order to establish best pricing and continuity of supply for our production. Purchase orders are not included in purchase obligations, as they typically represent our authorization to purchase rather than binding purchase obligations.

82

Market Conditions

We regularly monitor economic conditions and associated impacts on the financial markets and our business. We consistently evaluate the financial health of our supplier base, carefully manage customer credit, diversify counterparty risk, and monitor the concentration risk of our cash and cash equivalents balances globally. We routinely monitor our financial exposure to borrowers and counterparties.

We monitor credit risk associated with our financial counterparties using various market credit risk indicators such as credit ratings issued by nationally recognized credit rating agencies and changes in market credit default swap levels. We perform periodic evaluations of our positions with these counterparties and may limit exposure to any one counterparty in accordance with our policies. We monitor and manage these activities depending on current and expected market developments.

We use derivative instruments to hedge certain foreign currency exposures. We use forward contracts and purchased options designated as cash flow hedges to protect against the foreign currency exchange rate risks inherent in our forecasted transactions denominated in currencies other than the U.S. dollar.  In addition, we primarily use forward contracts and may use purchased options to hedge monetary assets and liabilities denominated in a foreign currency.  See Note 7 of the Notes to the Condensed Consolidated Financial Statements included in this report for additional information about our use of derivative instruments.

We are exposed to interest rate risk related to our variable-rate debt portfolio. In the normal course of business we follow established policies and procedures to manage this risk, including monitoring of our asset and liability mix and the use of derivative instruments. As a result, we do not anticipate any material losses from interest rate risk.

83

Summarized Guarantor Financial Information

Dell International L.L.C. and EMC Corporation (the “Issuers”), both of which are wholly-owned subsidiaries of Dell Technologies Inc., completed private offerings of multiple series of senior secured notes issued on June 1, 2016, March 20, 2019, and April 9, 2020 (the “Senior Secured Notes”). The Senior Secured Notes became unsecured obligations following the release of the collateral securing such Senior Secured Notes during Fiscal 2022. On December 13, 2021, the Issuers completed a private offering of senior unsecured notes (together with the Senior Secured Notes, the “Senior Notes”).

In June 2021 and September 2023, the Issuers completed exchange offers in which they issued $18.4 billion and $2.1 billion, respectively, in aggregate principal amount of registered senior notes under the Securities Act of 1933 (the “Exchange Notes”) in exchange for the same principal amount and substantially identical terms of the Senior Notes.

On January 24, 2023, the Issuers completed a public offering of unsecured senior notes (together with the Exchange Notes, the “Registered Senior Notes”) in the aggregate principal amount of $2.0 billion. The unsecured senior notes were sold pursuant to a shelf registration statement.

Guarantees — The Registered Senior Notes are guaranteed on a joint and several unsecured basis by Dell Technologies Inc. and its wholly-owned subsidiaries, Denali Intermediate, Inc. and Dell Inc. (collectively, the “Guarantors”).

Basis of Preparation of the Summarized Financial Information — The tables below are summarized financial information provided in conformity with Rule 13-01 of the SEC’s Regulation S-X. The summarized financial information of the Issuers and Guarantors (collectively, the “Obligor Group”) is presented on a combined basis, excluding intercompany balances and transactions between entities in the Obligor Group. The Obligor Group’s amounts due from, amounts due to, and transactions with Non-Obligor Subsidiaries and VMware, Inc. and its consolidated subsidiaries (the “Related Party”) have been presented separately. The Obligor Group’s investment balances in Non-Obligor Subsidiaries have been excluded.

The following table presents summarized results of operations information for the Obligor Group for the period indicated:

	Nine Months Ended
	November 3, 2023
	(in millions)
Net revenue (a)	$	6,807
Gross margin (b)	2,882
Operating income	599
Interest and other, net (c)	(2,886)
Loss before income taxes	$	(2,287)
Net loss attributable to Obligor Group	$	(1,729)

____________________

(a)    Includes net revenue from services provided and product sales to Non-Obligor Subsidiaries of $645 million and $89 million, respectively.

(b)    Includes cost of net revenue from the resale of solutions purchased from Non-Obligor Subsidiaries and the Related Party of $695 million and $284 million, respectively. Includes cost of net revenue from shared services provided by Non-Obligor Subsidiaries of $451 million.

(c)    Includes interest expense on inter-company loan payables of $2,002 million and other expenses from services provided by Non-Obligor Subsidiaries of $44 million.

84

The following table presents summarized balance sheet information for the Obligor Group as of the dates indicated:

	November 3, 2023		February 3, 2023
	(in millions)
ASSETS
Current assets	$	2,028	$	2,972
Intercompany receivables	—		595
Due from related party, net	344		312
Short-term intercompany loan receivables	—		227
Total current assets	2,372		4,106
Due from related party, net	239		440
Goodwill and intangible assets	14,605		14,818
Other non-current assets	3,173		3,009
Total assets	$	20,389	$	22,373
LIABILITIES
Current liabilities	$	5,164	$	6,611
Intercompany payable	1,623		—
Due to related party	67		110
Total current liabilities	6,854		6,721
Long-term debt	15,840		17,996
Intercompany loan payables	38,838		38,896
Other non-current liabilities	3,410		3,891
Total liabilities	$	64,942	$	67,504

85

ITEM 3 — QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

For quantitative and qualitative disclosures about market risk affecting us, see “Part II — Item 7A — Quantitative and Qualitative Disclosures About Market Risk” in our Annual Report on Form 10-K for the fiscal year ended February 3, 2023. Our exposure to market risks has not changed materially from that set forth in our Annual Report.

ITEM 4 — CONTROLS AND PROCEDURES

This report includes the certifications of our Chief Executive Officer and Chief Financial Officer required by Rule 13a-14 under the Securities Exchange Act of 1934 (the “Exchange Act”). See Exhibits 31.1 and 31.2 filed with this report. This Item 4 includes information concerning the controls and control evaluations referred to in those certifications.

Evaluation of Disclosure Controls and Procedures

Disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) are designed to provide reasonable assurance that information required to be disclosed in reports filed or submitted under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in SEC rules and forms and that such information is accumulated and communicated to management, including the Chief Executive Officer and the Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosures.

In connection with the preparation of this report, our management, under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, conducted an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures as of November 3, 2023. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures were effective at the reasonable assurance level as of November 3, 2023.

Changes in Internal Control Over Financial Reporting

There were no changes in our internal control over financial reporting during the fiscal quarter ended November 3, 2023 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

86

PART II — OTHER INFORMATION

ITEM 1 — LEGAL PROCEEDINGS

The information required by this item is incorporated herein by reference to the information set forth under the caption “Legal Matters” in Note 10 of the Notes to the Condensed Consolidated Financial Statements included in Part I of this report.

ITEM 1A — RISK FACTORS

In addition to the other information set forth in this report, the risks discussed in “Part I — Item 1A — Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended February 3, 2023 could materially affect our business, operating results, financial condition, or prospects. The risks described in our Annual Report on Form 10-K and our subsequent SEC reports are not the only risks facing us.  There are additional risks and uncertainties not currently known to us or that we currently deem to be immaterial that also may materially adversely affect our business, operating results, financial condition, or prospects.

ITEM 2 — UNREGISTERED SALES OF EQUITY SECURITIES, USE OF PROCEEDS, AND ISSUER PURCHASES OF EQUITY SECURITIES

Purchases of Equity Securities

The following table presents information with respect to our purchases of Class C Common Stock during the third quarter of Fiscal 2024:

Period	Total Number of Shares Purchased	Weighted Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Programs	Approximate Dollar Value of Shares that May Yet Be Purchased Under the Programs
	(in millions, except per share amounts)
Repurchases from August 5, 2023 to September 1, 2023	1.5	$	56.67	1.5	$	906
Repurchases from September 2, 2023 to September 29, 2023	2.6	$	69.83	2.6	$	722
Repurchases from September 30, 2023 to November 3, 2023	7.1	$	67.30	7.1	$	5,243
Total	11.2			11.2

This table excludes shares withheld from stock awards to settle employee withholding obligations related to the vesting of such awards.

Effective as of September 23, 2021, our Board of Directors approved our current stock repurchase program with no established expiration date under which we may repurchase from time to time, through open market purchases, block trades, or accelerated or other structured share purchases, up to $5 billion of shares of Class C Common Stock, exclusive of any fees, commissions, or other expenses related to such repurchases.

Effective as of October 5, 2023, the Company’s Board of Directors approved the repurchase of an additional $5 billion of shares of the Class C Common Stock with no fixed expiration date. Following the approval, the Company had approximately $5.7 billion in authorized amount remaining available under the stock repurchase program.

See Note 13 of the Notes to the Condensed Consolidated Financial Statements included in this report for additional information about the stock repurchase program.

87

ITEM 5 — OTHER INFORMATION

Trading Arrangements

During the three months ended November 3, 2023, none of the Company’s directors or officers (as defined in Rule 16a-1(f) under the Exchange Act) adopted or terminated any contract, instruction or written plan for the purchase or sale of Company securities intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act, or to be effected under any non-Rule 10b5-1 trading arrangement.

ITEM 6 — EXHIBIT AND FINANCIAL STATEMENT SCHEDULES

Exhibit Number	Description
4.1†	Consent to the Extension of Registration Rights Under the Second Amended and Restated Registration Rights Agreement, dated September 11, 2023, among Dell Technologies Inc. (the “Company”) and SL SPV-2 L.P., Silver Lake Partners IV, L.P., Silver Lake Technology Investors IV, L.P., Silver Lake Partners V DE (AIV), L.P., Silver Lake Technology Investors V, L.P.
22.1†	List of Guarantor Subsidiaries and Issuers of Guaranteed Securities
31.1†	Certification of Michael S. Dell, Chairman and Chief Executive Officer, pursuant to Rule 13a-14(a) or Rule 15d-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2†	Certification of Yvonne McGill, Executive Vice President and Chief Financial Officer, pursuant to Rule 13a-14(a) or Rule 15d-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1††	Certifications of Michael S. Dell, Chairman and Chief Executive Officer, and Yvonne McGill, Executive Vice President and Chief Financial Officer, pursuant to Rule 13a-14(b) or Rule 15d-14(b) under the Securities Exchange Act of 1934 and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101 .INS†	XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101 .SCH†	Inline XBRL Taxonomy Extension Schema Document.
101 .CAL††	Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101 .DEF†	Inline XBRL Taxonomy Extension Definition Linkbase Document.
101 .LAB†	Inline XBRL Taxonomy Extension Label Linkbase Document.
101 .PRE†	Inline XBRL Taxonomy Extension Presentation Linkbase Document.
104	Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document (included in Exhibit 101).

†	Filed with this report.
††	Furnished with this report.

88

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

DELL TECHNOLOGIES INC.
By:	/s/ BRUNILDA RIOS
	Brunilda Rios
	Senior Vice President, Corporate Finance and Chief Accounting Officer
	(On behalf of registrant and as principal accounting officer)

Date: December 8, 2023

89

EX-4.1

Exhibit 4.1

Dell Technologies Inc.

Consent to the Extension of Registration Rights Under the
Second Amended and Restated Registration Rights Agreement

Reference is made herein to the Second Amended and Restated Registration Rights Agreement, dated as of December 25, 2018, as amended by Amendment No. 1, dated as of May 27, 2019, Amendment No. 2, dated as of April 15, 2020, and Amendment No. 3, dated as of September 15, 2020 (as so amended, the “Registration Rights Agreement”), by and among Dell Technologies Inc. (the “Company”), a Delaware corporation, and each of (a) Michael S. Dell and Susan Lieberman Dell Separate Property Trust, (b) SL SPV-2, L.P., a Delaware limited partnership, Silver Lake Partners IV, L.P., a Delaware limited partnership, Silver Lake Technology Investors IV, L.P., a Delaware limited partnership, Silver Lake Partners V DE (AIV), L.P., a Delaware limited partnership, and Silver Lake Technology Investors V, L.P., a Delaware limited partnership (collectively, the “SLP Stockholders”), and (c) Venezio Investments Pte. Ltd., a Singapore corporation. Capitalized terms used but not defined in this Consent shall have the meanings ascribed to such terms in the Registration Rights Agreement. Capitalized terms defined in this Consent shall have the meanings ascribed to such terms herein for purposes of this Consent and the Registration Rights Agreement.

WHEREAS, pursuant to Section 2.1(a) of the Registration Rights Agreement, the Company is required to use its reasonable best efforts to file a Shelf Registration Statement for a public offering of the Registrable Securities no later than the first day on which such filing can be made with the SEC on or after December 31, 2020 (such date, the “Shelf Registration Filing Deadline”);

WHEREAS, in accordance with Section 2.1(a) of the Registration Rights Agreement, the Shelf Registration Filing Deadline may be extended for one or more periods of up to three months each upon the express written consent of the Company and the SLP Stockholders; and

WHEREAS, the Company and the SLP Stockholders wish to consent to an extension of the Shelf Registration Filing Deadline for a period of three months to December 31, 2023;

NOW, THEREFORE, the Company and the SLP Stockholders hereby consent and agree that, for all purposes under the Registration Rights Agreement, the Shelf Registration Filing Deadline shall be extended to no later than the first day on which such filing can be made with the SEC on or after December 31, 2023.

Except as expressly set forth in this Consent, no other terms and conditions of the Registration Rights Agreement are hereby amended, modified, supplemented or waived.

This Consent and all claims or causes of action (whether in tort, contract or otherwise) that may be based upon, arise out of or relate to this Consent or the negotiation, execution, interpretation or performance of this Consent (including any claim or cause of action based upon, arising out of or related to any representation or warranty made in or in connection with this Consent) shall be governed by and construed in accordance with the laws of the State of Delaware, regardless of the laws that might otherwise govern under applicable rules or principles of conflicts of laws.

[Signature pages follow.]

IN WITNESS WHEREOF, the undersigned have executed and delivered this Consent this September 11, 2023.

COMPANY:

DELL TECHNOLOGIES INC.

By: /s/ Christopher A. Garcia             

    Name:    Christopher A. Garcia

    Title:     Senior Vice President and Assistant Secretary

                    SLP STOCKHOLDERS:

SL SPV-2, L.P.

By: SLTA SPV-2, L.P., its General Partner

By: SLTA SPV-2 (GP), L.L.C., its General Partner

By: Silver Lake Group, L.L.C., its Managing Member

By: :/s/ Andrew J. Schader                

    Name:     Andrew J. Schader

    Title:     Managing Director

SILVER LAKE PARTNERS IV, L.P.

By: Silver Lake Technology Associates IV, L.P., its General Partner

By: SLTA IV (GP), L.L.C., its General Partner

By: Silver Lake Group, L.L.C., its Managing Member

By: :/s/ Andrew J. Schader                

    Name:     Andrew J. Schader

    Title:     Managing Director

SILVER LAKE TECHNOLOGY INVESTORS IV, L.P.

By: Silver Lake Technology Associates IV, L.P., its General Partner

By: SLTA IV (GP), L.L.C., its General Partner

By: Silver Lake Group, L.L.C., its Managing Member

By: :/s/ Andrew J. Schader                

    Name:     Andrew J. Schader

    Title:     Managing Director

SILVER LAKE PARTNERS V DE (AIV), L.P.

By: Silver Lake Technology Associates V, L.P., its General Partner

By: SLTA V (GP), L.L.C., its General Partner

By: Silver Lake Group, L.L.C., its Managing Member

By: :/s/ Andrew J. Schader                

    Name:     Andrew J. Schader

    Title:     Managing Director

SILVER LAKE TECHNOLOGY INVESTORS V, L.P.

By: Silver Lake Technology Associates V, L.P., its General Partner

By: SLTA V (GP), L.L.C., its General Partner

By: Silver Lake Group, L.L.C., its Managing Member

By: :/s/ Andrew J. Schader                

    Name:     Andrew J. Schader

    Title:     Managing Director

EX-22.1

Exhibit 22.1

Subsidiary Guarantors and Issuers of Guaranteed Securities

Guaranteed Securities

The following securities (collectively referred to in this exhibit as the “Senior Notes”) issued by Dell International L.L.C., a Delaware limited liability company and wholly-owned subsidiary of Dell Technologies Inc. (“Dell Technologies”), and EMC Corporation, a Massachusetts corporation and wholly-owned subsidiary of Dell Technologies, were outstanding as of November 3, 2023.

Description of Senior Notes

4.000% Senior Notes due 2024

5.850% Senior Notes due 2025

6.020% Senior Notes due 2026

4.900% Senior Notes due 2026

6.100% Senior Notes due 2027

5.250% Senior Notes due 2028

5.300% Senior Notes due 2029

6.200% Senior Notes due 2030

5.750% Senior Notes due 2033

8.100% Senior Notes due 2036

3.375% Senior Notes due 2041

8.350% Senior Notes due 2046

3.450% Senior Notes due 2051

Obligors

As of November 3, 2023, the obligors under the Senior Notes consisted of Dell Technologies, as a guarantor, and its subsidiaries listed in the following table (together with Dell Technologies, the “Obligors”).

Name of Subsidiary	Jurisdiction of Incorporation or Organization	Obligor Type
Dell Inc.	Delaware	Guarantor
Dell International L.L.C.	Delaware	Issuer
Denali Intermediate Inc.	Delaware	Guarantor
EMC Corporation	Massachusetts	Issuer

1

EX-31.1

Exhibit 31.1

CERTIFICATION OF MICHAEL S. DELL, CHAIRMAN AND

CHIEF EXECUTIVE OFFICER, PURSUANT TO RULE 13a-14(a) UNDER

THE SECURITIES EXCHANGE ACT OF 1934, AS ADOPTED

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Michael S. Dell, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of Dell Technologies Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

December 8, 2023	/s/ MICHAEL S. DELL
	Michael S. Dell
	Chairman and Chief Executive Officer

1

EX-31.2

Exhibit 31.2

CERTIFICATION OF YVONNE MCGILL, EXECUTIVE VICE PRESIDENT AND

CHIEF FINANCIAL OFFICER, PURSUANT TO RULE 13a-14(a) UNDER

THE SECURITIES EXCHANGE ACT OF 1934, AS ADOPTED

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Yvonne McGill, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of Dell Technologies Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

December 8, 2023	/s/ YVONNE MCGILL
	Yvonne McGill
	Executive Vice President and Chief Financial Officer

1

EX-32.1

Exhibit 32.1

CERTIFICATIONS OF MICHAEL S. DELL, CHAIRMAN AND CHIEF EXECUTIVE OFFICER,

AND YVONNE MCGILL, EXECUTIVE VICE PRESIDENT

AND CHIEF FINANCIAL OFFICER, PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

The undersigned officers of Dell Technologies Inc. hereby certify that (a) Dell Technologies Inc.’s Quarterly Report on Form 10-Q for the three months ended November 3, 2023, as filed with the Securities and Exchange Commission, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and (b) information contained in the report fairly presents, in all material respects, the financial condition and results of operations of Dell Technologies Inc.

December 8, 2023	/s/ MICHAEL S. DELL
	Michael S. Dell
	Chairman and Chief Executive Officer

December 8, 2023	/s/ YVONNE MCGILL
	Yvonne McGill
	Executive Vice President and Chief Financial Officer

1

XML

COVER - shares	9 Months Ended
	Nov. 03, 2023	Dec. 05, 2023
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Nov. 03, 2023
Document Transition Report	false
Entity File Number	001-37867
Entity Registrant Name	Dell Technologies Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	80-0890963
Entity Address, Address Line One	One Dell Way
Entity Address, City or Town	Round Rock
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	78682
City Area Code	800
Local Phone Number	289-3355
Title of 12(b) Security	Class C Common Stock, par value of $0.01 per share
Trading Symbol	DELL
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Central Index Key	0001571996
Current Fiscal Year End Date	--02-02
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q3
Amendment Flag	false
Class C
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		267,486,909
Class A
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		353,480,523
Class B
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		90,633,679

XML

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION - USD ($) $ in Millions	Nov. 03, 2023	Feb. 03, 2023
Current assets:
Cash and cash equivalents	$ 8,298	$ 8,607
Short-term financing receivables, net of allowance of $73 and $142 (Note 4)	4,540	5,281
Inventories	3,381	4,776
Other current assets	10,662	10,827
Total current assets	36,987	42,351
Property, plant, and equipment, net	6,222	6,209
Long-term investments	1,294	1,518
Long-term financing receivables, net of allowance of $80 and $59 (Note 4)	5,773	5,638
Goodwill	19,616	19,676
Intangible assets, net	5,907	6,468
Due from related party, net	239	440
Other non-current assets	7,226	7,311
Total assets	83,264	89,611
Current liabilities:
Short-term debt	6,498	6,573
Accrued and other	6,449	8,874
Short-term deferred revenue	15,206	15,542
Total current liabilities	48,877	51,654
Long-term debt	20,119	23,015
Long-term deferred revenue	13,847	14,744
Other non-current liabilities	2,991	3,223
Total liabilities	85,834	92,636
Commitments and contingencies (Note 10)
Stockholders’ equity (deficit):
Common stock and capital in excess of $0.01 par value (Note 13)	8,742	8,424
Treasury stock at cost	(5,064)	(3,813)
Accumulated deficit	(5,519)	(6,732)
Accumulated other comprehensive loss	(823)	(1,001)
Total Dell Technologies Inc. stockholders’ equity (deficit)	(2,664)	(3,122)
Non-controlling interests	94	97
Total stockholders’ equity (deficit)	(2,570)	(3,025)
Total liabilities and stockholders’ equity	83,264	89,611
Nonrelated Party
Current assets:
Accounts receivable, net of allowance & Due from related party, net	9,720	12,482
Current liabilities:
Accounts payable & Due to related party	19,478	18,598
Related Party
Current assets:
Accounts receivable, net of allowance & Due from related party, net	386	378
Due from related party, net	239	440
Current liabilities:
Accounts payable & Due to related party	$ 1,246	$ 2,067

XML

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Parenthetical) - USD ($) $ in Millions	Nov. 03, 2023	Feb. 03, 2023
Statement of Financial Position [Abstract]
Accounts receivable, allowance for credit loss	$ 74	$ 78
Short-term financing receivables, allowance	73	142
Long-term financing receivables, allowance	$ 80	$ 59
Common stock, par or value (in dollars per share)	$ 0.01	$ 0.01

XML

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Nov. 03, 2023	Oct. 28, 2022	Nov. 03, 2023	Oct. 28, 2022
Net revenue:
Total net revenue		$ 22,251	$ 24,721	$ 66,107	$ 77,262
Cost of net revenue :
Total cost of net revenue	[1]	17,103	19,014	50,554	60,332
Gross margin		5,148	5,707	15,553	16,930
Operating expenses:
Selling, general, and administrative		2,970	3,268	9,748	10,364
Research and development		692	677	2,085	1,984
Total operating expenses		3,662	3,945	11,833	12,348
Operating income		1,486	1,762	3,720	4,582
Interest and other, net		(306)	(1,308)	(1,121)	(2,280)
Income before income taxes		1,180	454	2,599	2,302
Income tax expense		176	213	562	486
Net income		1,004	241	2,037	1,816
Less: Net loss attributable to non-controlling interests		(2)	(4)	(14)	(12)
Net income attributable to Dell Technologies Inc.		$ 1,006	$ 245	$ 2,051	$ 1,828
Earnings per share attributable to Dell Technologies Inc.
Basic (in dollars per share)		$ 1.39	$ 0.34	$ 2.83	$ 2.47
Diluted (in dollars per share)		$ 1.36	$ 0.33	$ 2.78	$ 2.41
Products
Net revenue:
Total net revenue		$ 16,233	$ 18,938	$ 48,204	$ 60,212
Cost of net revenue :
Total cost of net revenue	[1]	13,546	15,601	39,923	50,281
Services
Net revenue:
Total net revenue		6,018	5,783	17,903	17,050
Cost of net revenue :
Total cost of net revenue	[1]	$ 3,557	$ 3,413	$ 10,631	$ 10,051

[1] (a) Includes related party cost of net revenue as follows (Note 15): Products$379 $281 $970 $962 Services$884 $733 $2,640 $2,204 

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CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Parenthetical) - Related Party - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Nov. 03, 2023	Oct. 28, 2022	Nov. 03, 2023	Oct. 28, 2022
Products
Related party cost of net revenue	$ 379	$ 281	$ 970	$ 962
Services
Related party cost of net revenue	$ 884	$ 733	$ 2,640	$ 2,204

XML

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Nov. 03, 2023	Oct. 28, 2022	Nov. 03, 2023	Oct. 28, 2022
Statement of Comprehensive Income [Abstract]
Net income	$ 1,004	$ 241	$ 2,037	$ 1,816
Other comprehensive income (loss), net of tax
Foreign currency translation adjustments	(155)	(196)	(130)	(620)
Cash flow hedges:
Change in unrealized gains	171	306	230	844
Reclassification adjustment for net (gains) losses included in net income	(84)	(324)	75	(726)
Net change in cash flow hedges	87	(18)	305	118
Pension and other postretirement plans:
Recognition of actuarial net gains (losses) from pension and other postretirement plans	2	(2)	3	11
Reclassification adjustments for net losses from pension and other postretirement plans	0	1	0	1
Net change in actuarial net gains (losses) from pension and other postretirement plans	2	(1)	3	12
Total other comprehensive income (loss), net of tax expense (benefit) of $6 and $6, respectively, and $18 and $14, respectively	(66)	(215)	178	(490)
Comprehensive income, net of tax	938	26	2,215	1,326
Less: Net loss attributable to non-controlling interests	(2)	(4)	(14)	(12)
Less: Other comprehensive loss attributable to non-controlling interests	0	0	0	(1)
Comprehensive income attributable to Dell Technologies Inc.	$ 940	$ 30	$ 2,229	$ 1,339

XML

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Nov. 03, 2023	Oct. 28, 2022	Nov. 03, 2023	Oct. 28, 2022
Statement of Comprehensive Income [Abstract]
Tax expense (benefit)	$ 6	$ 6	$ 18	$ 14

XML

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	9 Months Ended
	Nov. 03, 2023	Oct. 28, 2022
Cash flows from operating activities:
Net income	$ 2,037	$ 1,816
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	2,462	2,302
Stock-based compensation expense	675	703
Deferred income taxes	(244)	(745)
Other, net	521	648
Changes in assets and liabilities, net of effects from acquisitions and dispositions:
Accounts receivable	2,517	803
Financing receivables	445	(286)
Inventories	1,203	(485)
Other assets and liabilities	(2,096)	430
Due from/to related party, net	(574)	(641)
Accounts payable	1,012	(4,466)
Deferred revenue	(815)	772
Change in cash from operating activities	7,143	851
Cash flows from investing activities:
Purchases of investments	(143)	(101)
Maturities and sales of investments	150	99
Capital expenditures and capitalized software development costs	(2,029)	(2,244)
Acquisition of businesses and assets, net	(127)	0
Other	35	18
Change in cash from investing activities	(2,114)	(2,228)
Cash flows from financing activities:
Proceeds from the issuance of common stock	8	5
Repurchases of common stock	(1,202)	(2,718)
Repurchases of common stock for employee tax withholdings	(354)	(380)
Payments of dividends and dividend equivalents	(811)	(728)
Proceeds from debt	6,904	8,779
Repayments of debt	(9,766)	(8,079)
Debt-related costs and other, net	(54)	(17)
Change in cash from financing activities	(5,275)	(3,138)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	(200)	(343)
Change in cash, cash equivalents, and restricted cash	(446)	(4,858)
Cash, cash equivalents, and restricted cash at beginning of the period	8,894	10,082
Cash, cash equivalents, and restricted cash at the end of the period	$ 8,448	$ 5,224

XML

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) shares in Millions, $ in Millions	Total	Dell Technologies Stockholders’ Equity (Deficit)	Common Stock and Capital in Excess of Par Value	Treasury Stock	Accumulated Deficit	Accumulated Other Comprehensive Income/(Loss)	Non-Controlling Interests
Beginning balance (in shares) at Jan. 28, 2022			777
Beginning balance at Jan. 28, 2022	$ (1,580)	$ (1,685)	$ 7,898	$ (964)	$ (8,188)	$ (431)	$ 105
Beginning balance (in shares) at Jan. 28, 2022				20
Increase (Decrease) in Stockholders' Equity
Net income	1,816	1,828			1,828		(12)
Dividends and dividend equivalents declared	(742)	(742)			(742)
Foreign currency translation adjustments	(620)	(619)				(619)	(1)
Cash flow hedges, net change	118	118				118
Pension and other post-retirement	12	12				12
Issuance of common stock, net of shares repurchased for employee tax withholding (in shares)			20
Issuance of common stock, net of shares repurchased for employee tax withholding	(366)	(366)	$ (366)
Stock-based compensation expense	703	677	677				26
Treasury stock repurchases (in shares)				59
Treasury stock repurchases	(2,699)	(2,699)		$ (2,699)
Impact from equity transactions of non-controlling interests	(10)	7	$ 7				(17)
Ending balance (in shares) at Oct. 28, 2022			797
Ending balance at Oct. 28, 2022	(3,368)	(3,469)	$ 8,216	$ (3,663)	(7,102)	(920)	101
Ending balance (in shares) at Oct. 28, 2022				79
Beginning balance (in shares) at Jul. 29, 2022			796
Beginning balance at Jul. 29, 2022	(2,755)	(2,860)	$ 8,005	$ (3,054)	(7,106)	(705)	105
Beginning balance (in shares) at Jul. 29, 2022				62
Increase (Decrease) in Stockholders' Equity
Net income	241	245			245		(4)
Dividends and dividend equivalents declared	(241)	(241)			(241)
Foreign currency translation adjustments	(196)	(196)				(196)
Cash flow hedges, net change	(18)	(18)				(18)
Pension and other post-retirement	(1)	(1)				(1)
Issuance of common stock, net of shares repurchased for employee tax withholding (in shares)			1
Issuance of common stock, net of shares repurchased for employee tax withholding	(22)	(22)	$ (22)
Stock-based compensation expense	235	226	226				9
Treasury stock repurchases (in shares)				17
Treasury stock repurchases	(609)	(609)		$ (609)
Impact from equity transactions of non-controlling interests	(2)	7	$ 7				(9)
Ending balance (in shares) at Oct. 28, 2022			797
Ending balance at Oct. 28, 2022	$ (3,368)	(3,469)	$ 8,216	$ (3,663)	(7,102)	(920)	101
Ending balance (in shares) at Oct. 28, 2022				79
Beginning balance (in shares) at Feb. 03, 2023	798		798
Beginning balance at Feb. 03, 2023	$ (3,025)	(3,122)	$ 8,424	$ (3,813)	(6,732)	(1,001)	97
Beginning balance (in shares) at Feb. 03, 2023				82
Increase (Decrease) in Stockholders' Equity
Net income	2,037	2,051			2,051		(14)
Dividends and dividend equivalents declared	(838)	(838)			(838)
Foreign currency translation adjustments	(130)	(130)				(130)
Cash flow hedges, net change	305	305				305
Pension and other post-retirement	3	3				3
Issuance of common stock, net of shares repurchased for employee tax withholding (in shares)			21
Issuance of common stock, net of shares repurchased for employee tax withholding	(339)	(339)	$ (339)
Stock-based compensation expense	675	650	650				25
Treasury stock repurchases (in shares)				22
Treasury stock repurchases	(1,251)	(1,251)		$ (1,251)
Impact from equity transactions of non-controlling interests	$ (7)	7	$ 7				(14)
Ending balance (in shares) at Nov. 03, 2023	819		819
Ending balance at Nov. 03, 2023	$ (2,570)	(2,664)	$ 8,742	$ (5,064)	(5,519)	(823)	94
Ending balance (in shares) at Nov. 03, 2023				104
Beginning balance (in shares) at Aug. 04, 2023			817
Beginning balance at Aug. 04, 2023	(2,677)	(2,772)	$ 8,554	$ (4,320)	(6,249)	(757)	95
Beginning balance (in shares) at Aug. 04, 2023				93
Increase (Decrease) in Stockholders' Equity
Net income	1,004	1,006			1,006		(2)
Dividends and dividend equivalents declared	(276)	(276)			(276)
Foreign currency translation adjustments	(155)	(155)				(155)
Cash flow hedges, net change	87	87				87
Pension and other post-retirement	2	2				2
Issuance of common stock, net of shares repurchased for employee tax withholding (in shares)			2
Issuance of common stock, net of shares repurchased for employee tax withholding	(36)	(36)	$ (36)
Stock-based compensation expense	227	217	217				10
Treasury stock repurchases (in shares)				11
Treasury stock repurchases	(744)	(744)		$ (744)
Impact from equity transactions of non-controlling interests	$ (2)	7	$ 7				(9)
Ending balance (in shares) at Nov. 03, 2023	819		819
Ending balance at Nov. 03, 2023	$ (2,570)	$ (2,664)	$ 8,742	$ (5,064)	$ (5,519)	$ (823)	$ 94
Ending balance (in shares) at Nov. 03, 2023				104

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CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) (Parenthetical) - $ / shares							3 Months Ended		9 Months Ended
	Sep. 28, 2023	Jun. 16, 2023	Mar. 02, 2023	Sep. 06, 2022	Jun. 07, 2022	Feb. 24, 2022	Nov. 03, 2023	Oct. 28, 2022	Nov. 03, 2023	Oct. 28, 2022
Statement of Stockholders' Equity [Abstract]
Dividend declared (in dollars per share)	$ 0.37	$ 0.37	$ 0.37	$ 0.33	$ 0.33	$ 0.33	$ 0.37	$ 0.33	$ 1.11	$ 0.99

XML

OVERVIEW AND BASIS OF PRESENTATION

9 Months Ended

Nov. 03, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

OVERVIEW AND BASIS OF PRESENTATION

OVERVIEW AND BASIS OF PRESENTATION

Dell Technologies is a leading global end-to-end technology provider that designs, develops, manufactures, markets, sells, and supports a wide range of comprehensive and integrated solutions, products, and services. Dell Technologies offerings include servers and networking, storage, cloud solutions, desktops, notebooks, services, software, and third-party software and peripherals. References in these Notes to the Condensed Consolidated Financial Statements to the “Company” or “Dell Technologies” mean Dell Technologies Inc. individually and together with its consolidated subsidiaries.

Basis of Presentation — The accompanying unaudited Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and accompanying Notes filed with the U.S. Securities and Exchange Commission (“SEC”) in the Company’s Annual Report on Form 10-K for the fiscal year ended February 3, 2023. These Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). In the opinion of management, the accompanying Condensed Consolidated Financial Statements reflect all adjustments of a normal recurring nature considered necessary to fairly state the financial position of the Company as of November 3, 2023 and February 3, 2023, the results of its operations, corresponding comprehensive income, and changes in stockholders’ equity for the three and nine months ended November 3, 2023 and October 28, 2022, and its cash flows for the nine months ended November 3, 2023 and October 28, 2022.

The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in the Condensed Consolidated Financial Statements and the accompanying Notes. Actual results could differ materially from those estimates. The results of the Company’s operations, corresponding comprehensive income, and changes in stockholders’ equity for the three and nine months ended November 3, 2023 and October 28, 2022, and its cash flows for the nine months ended November 3, 2023 and October 28, 2022 are not necessarily indicative of the results to be expected for the full fiscal year or for any other fiscal period.

The Company’s fiscal year is the 52- or 53-week period ending on the Friday nearest January 31. The fiscal year ended February 3, 2023 (“Fiscal 2023”) was a 53-week period while the fiscal year ending February 2, 2024 (“Fiscal 2024”) will be a 52-week period.

Principles of Consolidation — These Condensed Consolidated Financial Statements include the accounts of Dell Technologies Inc. and its wholly-owned subsidiaries, and the accounts of SecureWorks Corp. (“Secureworks”), which is majority-owned by Dell Technologies. All intercompany transactions have been eliminated.

Secureworks — As of November 3, 2023 and February 3, 2023, the Company held approximately 81.1% and 82.6%, respectively, of the outstanding equity interest in Secureworks. The portion of the results of operations of Secureworks allocable to its other owners is shown as net loss attributable to non-controlling interests in the Condensed Consolidated Statements of Income, as an adjustment to net income attributable to Dell Technologies stockholders. The non-controlling interests’ share of equity in Secureworks is reflected as non-controlling interests in the Condensed Consolidated Statements of Financial Position and was $94 million and $97 million as of November 3, 2023 and February 3, 2023, respectively.

Variable Interest Entities — The Company consolidates Variable Interest Entities ("VIEs") where it has been determined that the Company is the primary beneficiary of the applicable entities’ operations. For each VIE, the primary beneficiary is the party that has both the power to direct the activities that most significantly impact the VIE's economic performance and the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to such VIE. In evaluating whether the Company is the primary beneficiary of each entity, the Company evaluates its power to direct the most significant activities of the VIE by considering the purpose and design of each entity and the risks each entity was designed to create and pass through to its respective variable interest holders. The Company also evaluates its economic interests in each of the VIEs. See Note 4 of the Notes to the Condensed Consolidated Financial Statements for more information regarding consolidated VIEs.

Other Events — On July 12, 2023, the Company entered into a definitive agreement with Comenity Capital Bank, a subsidiary of Bread Financial Holdings, Inc. (“Bread”), to establish a new consumer revolving financing program, operated as the “Dell Pay Credit” program, under which transactions are originated, owned, serviced, and collected by Bread. Under the agreement, the Company also agreed to sell its U.S. consumer revolving customer receivables portfolio. On October 4, 2023, the parties closed the sale for total cash consideration of approximately $390 million and the Company recognized an immaterial gain within the Condensed Consolidated Statements of Income. Upon completion of the sale, the Company derecognized transferred receivables, net of $380 million from the Condensed Consolidated Statements of Financial Position. The Company has no continuing involvement with these receivables, which are serviced by Bread. See Note 4 of the Notes to the Condensed Consolidated Financial Statements for more information.

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FAIR VALUE MEASUREMENTS

9 Months Ended

Nov. 03, 2023

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS

The following table presents the Company’s hierarchy for its assets and liabilities measured at fair value on a recurring basis as of the dates indicated:

	November 3, 2023								February 3, 2023
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs				Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	(in millions)
Assets:
Money market funds	$	4,176	$	—	$	—	$	4,176	$	4,301	$	—	$	—	$	4,301
Marketable equity and other securities	5		—		—		5		33		—		—		33
Derivative instruments	—		215		—		215		—		295		—		295
Total assets	$	4,181	$	215	$	—	$	4,396	$	4,334	$	295	$	—	$	4,629
Liabilities:
Derivative instruments	$	—	$	76	$	—	$	76	$	—	$	460	$	—	$	460
Total liabilities	$	—	$	76	$	—	$	76	$	—	$	460	$	—	$	460

The following section describes the valuation methodologies the Company uses to measure financial instruments at fair value.

Money Market Funds — The Company’s investment in money market funds that are classified as cash equivalents hold underlying investments with a weighted average maturity of 90 days or less and are recognized at fair value. The valuations of these securities are based on quoted prices in active markets for identical assets, when available, or pricing models whereby all significant inputs are observable or can be derived from or corroborated by observable market data. The Company reviews security pricing and assesses money market fund liquidity on a quarterly basis. As of November 3, 2023, the Company’s portfolio had no material exposure to money market funds with a fluctuating net asset value.

Marketable Equity and Other Securities — The Company’s investments in equity and other securities that are measured at fair value on a recurring basis consist of strategic investments in publicly-traded companies. The valuation of these securities is based on quoted prices in active markets.

Derivative Instruments — The Company’s derivative financial instruments consist primarily of foreign currency forward and purchased option contracts and interest rate swaps. The fair value of the portfolio is determined using valuation models based on market observable inputs, including interest rate curves, forward and spot prices for currencies, and implied volatilities. Credit risk is also factored into the fair value calculation of the Company’s derivative financial instrument portfolio. See Note 7 of the Notes to the Condensed Consolidated Financial Statements for a description of the Company’s derivative financial instrument activities.

Deferred Compensation Plans — The Company offers deferred compensation plans for eligible employees, which allow participants to defer a portion of their compensation. Assets were the same as liabilities associated with the plans at approximately $194 million and $179 million as of November 3, 2023 and February 3, 2023, respectively, and are included in other assets and other liabilities on the Condensed Consolidated Statements of Financial Position. The net impact to the Condensed Consolidated Statements of Income is not material since changes in the fair value of the assets substantially offset changes in the fair value of the liabilities. As such, assets and liabilities associated with these plans have not been included in the recurring fair value table above.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis — Certain assets are measured at fair value on a nonrecurring basis and therefore are not included in the recurring fair value table above. These assets consist primarily of non-financial assets such as goodwill and intangible assets. See Note 8 of the Notes to the Condensed Consolidated Financial Statements for additional information about goodwill and intangible assets.

As of November 3, 2023 and February 3, 2023, the Company held strategic investments in non-marketable equity and other securities of $1.2 billion and $1.3 billion, respectively. As these investments represent early-stage companies without readily determinable fair values, they are not included in the recurring fair value table above. See Note 3 of the Notes to the Condensed Consolidated Financial Statements for additional information about the Company’s strategic investments.

Carrying Value and Estimated Fair Value of Outstanding Debt — The following table presents the carrying value and estimated fair value of the Company’s outstanding debt as described in Note 6 of the Notes to the Condensed Consolidated Financial Statements, including the current portion, as of the dates indicated:

	November 3, 2023				February 3, 2023
	Carrying Value		Fair Value		Carrying Value		Fair Value
	(in billions)
Senior Notes	$	16.0	$	15.6	$	18.1	$	18.2
Legacy Notes and Debentures	$	0.9	$	0.9	$	0.9	$	1.0
DFS Debt	$	9.6	$	9.1	$	10.3	$	9.9

The fair values of the outstanding debt shown in the table above were determined based on observable market prices in a less active market or based on valuation methodologies using observable inputs and were categorized as Level 2 in the fair value hierarchy.

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INVESTMENTS

9 Months Ended

Nov. 03, 2023

Investments, Debt and Equity Securities [Abstract]

INVESTMENTS

INVESTMENTS

The Company has strategic investments in equity and other securities as well as investments in fixed income debt securities. All equity and other securities as well as long-term fixed income debt securities are recorded as long-term investments in the Condensed Consolidated Statements of Financial Position. Short-term fixed income debt securities are recorded as other current assets in the Condensed Consolidated Statements of Financial Position.

As of both November 3, 2023 and February 3, 2023, total investments were $1.6 billion.

Equity and Other Securities

Equity and other securities include strategic investments in marketable and non-marketable securities. Investments in marketable securities are measured at fair value on a recurring basis. The Company has elected to apply the measurement alternative for non-marketable securities. Under the alternative, the Company measures investments without readily determinable fair values at cost, less impairment, adjusted by observable price changes. The Company makes a separate election to use the alternative for each eligible investment and is required to reassess at each reporting period whether an investment qualifies for the alternative. In evaluating these investments for impairment or observable price changes, the Company uses inputs including pre- and post-money valuations of recent financing events and the impact of those events on its fully diluted ownership percentages, as well as other available information regarding the issuer’s historical and forecasted performance.

Carrying Value of Equity and Other Securities

The following table presents the cost, cumulative unrealized gains, cumulative unrealized losses, and carrying value of the Company's strategic investments in marketable and non-marketable equity securities as of the dates indicated:

	November 3, 2023								February 3, 2023
	Cost		Unrealized Gain		Unrealized Loss		Carrying Value		Cost		Unrealized Gain		Unrealized Loss		Carrying Value
	(in millions)
Marketable	$	12	$	19	$	(26)	$	5	$	56	$	17	$	(40)	$	33
Non-marketable	729		666		(149)		1,246		714		651		(100)		1,265
Total equity and other securities	$	741	$	685	$	(175)	$	1,251	$	770	$	668	$	(140)	$	1,298

Gains and Losses on Equity and Other Securities

The following table presents unrealized gains and losses on marketable and non-marketable equity and other securities for the periods indicated:

	Three Months Ended				Nine Months Ended
	November 3, 2023		October 28, 2022		November 3, 2023		October 28, 2022
	(in millions)
Marketable securities:
Unrealized gain	$	—	$	50	$	1	$	57
Unrealized loss	—		(10)		(23)		(29)
Net unrealized gain (loss)	—		40		(22)		28
Non-marketable securities:
Unrealized gain	6		—		15		72
Unrealized loss	(3)		(13)		(49)		(333)
Net unrealized gain (loss) (a) (b)	3		(13)		(34)		(261)
Net unrealized gain (loss) on equity and other securities	$	3	$	27	$	(56)	$	(233)

____________________

(a)    For the three months ended November 3, 2023, net gains on non-marketable securities are due to upward adjustments for observable price changes offset by losses primarily attributable to impairments.

(b)    For the nine months ended November 3, 2023 and the three and nine months ended October 28, 2022, net unrealized losses on non-marketable securities were primarily attributable to impairments. For the three and nine months ended October 28, 2022, the impairments on equity and other securities were generally in line with extended public equity market declines.

Fixed Income Debt Securities

The Company has fixed income debt securities carried at amortized cost which are primarily held as collateral for borrowings. The Company intends to hold the investments to maturity. As of November 3, 2023, the Company held $267 million in fixed income debt securities which will mature within one year and $43 million in fixed income debt securities which will mature within five years.

The following table summarizes the Company’s debt securities as of the dates indicated:

	November 3, 2023								February 3, 2023
	Cost		Unrealized Gain		Unrealized Loss		Carrying Value		Cost		Unrealized Gain		Unrealized Loss		Carrying Value
	(in millions)
Fixed income debt securities	$	343	$	59	$	(92)	$	310	$	348	$	65	$	(95)	$	318

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FINANCIAL SERVICES

9 Months Ended

Nov. 03, 2023

Receivables [Abstract]

FINANCIAL SERVICES

FINANCIAL SERVICES

The Company offers or arranges various financing options and alternative payment structures for its customers globally. Alternative payment structures consist of various flexible consumption models, including utility, subscription, and as-a-Service models.

Financing options are offered to our customers primarily through Dell Financial Services and its affiliates (“DFS”). The Company also arranges financing for some of its customers in various countries where DFS does not currently operate as a captive enterprise. The key activities of DFS include originating, collecting, and servicing customer financing arrangements primarily related to the purchase or use of Dell Technologies products and services. In some cases, DFS also offers financing for the purchase of third-party technology products that complement the Dell Technologies portfolio of products and services. New financing originations were $1.8 billion and $2.3 billion for the three months ended November 3, 2023 and October 28, 2022, respectively, and $6.0 billion and $6.7 billion for the nine months ended November 3, 2023 and October 28, 2022, respectively.

The Company’s lease and loan arrangements with customers are aggregated primarily into the following categories:

Fixed-term leases and loans — The Company enters into financing arrangements with customers who seek lease financing for equipment. DFS leases are generally classified as sales-type leases or operating leases. Leases with business customers have fixed terms of generally two to four years.

The Company also offers fixed-term loans to qualified small businesses, large commercial accounts, governmental organizations, educational entities, and certain individual consumer customers. These loans are repaid in equal payments including interest and have defined terms of generally three to five years. The fair value of the fixed-term loan portfolio is determined using market observable inputs.  The carrying value of these loans approximates fair value. 

Revolving loans — Revolving loans offered under a private label credit financing program, referred to as Dell Business Credit (“DBC”), provide qualified customers with a revolving credit line for the purchase of products and services offered by Dell Technologies. The DBC product is primarily offered to small and medium-sized commercial customers. Revolving loans in the United States bear interest at a variable annual percentage rate that is tied to the prime rate. Based on historical payment patterns, revolving loan transactions are typically repaid within twelve months on average. Due to the short-term nature of the revolving loan portfolio, the carrying value of the portfolio approximates fair value.

Prior to the sale of the U.S. consumer revolving customer receivables portfolio described in Note 1 of the Notes to the Condensed Consolidated Financial Statements, the Company also offered private label credit financing under the Dell Preferred Account (“DPA”) program. The DPA product was primarily offered to individual consumer customers.

Flexible consumption models, as defined above, further enable the Company to offer its customers the option to pay over time to provide them with financial flexibility to meet their changing technological requirements. Such models may result in identification of embedded lease arrangements that lead to the recognition of operating or sales-type leases.

Financing Receivables

The following table presents the components of the Company’s financing receivables segregated by portfolio segment as of the dates indicated:

	November 3, 2023						February 3, 2023
	Revolving		Fixed-term		Total		Revolving		Fixed-term		Total
	(in millions)
Financing receivables, net:
Customer receivables, gross (a) (b)	$	172	$	10,144	$	10,316	$	685	$	10,293	$	10,978
Allowances for losses	(9)		(144)		(153)		(88)		(113)		(201)
Customer receivables, net	163		10,000		10,163		597		10,180		10,777
Residual interest	—		150		150		—		142		142
Financing receivables, net	$	163	$	10,150	$	10,313	$	597	$	10,322	$	10,919
Short-term	$	163	$	4,377	$	4,540	$	597	$	4,684	$	5,281
Long-term	$	—	$	5,773	$	5,773	$	—	$	5,638	$	5,638

____________________

(a)    Customer receivables, gross include amounts due from customers under revolving loans, fixed-term loans, fixed-term leases, and accrued interest.

(b)    The decrease in revolving customer financing receivables is primarily attributable to the sale of the U.S. consumer revolving customer receivables portfolio described in Note 1 of the Notes to the Condensed Consolidated Financial Statements.

The following table presents the changes in allowance for financing receivable losses for the periods indicated:

	Three Months Ended
	November 3, 2023						October 28, 2022
	Revolving		Fixed-term		Total		Revolving		Fixed-term		Total
	(in millions)
Allowance for financing receivable losses:
Balances at beginning of period	$	9	$	140	$	149	$	91	$	92	$	183
Charge-offs, net of recoveries	(4)		(3)		(7)		(12)		(1)		(13)
Provision charged to income statement	4		7		11		8		8		16
Balances at end of period	$	9	$	144	$	153	$	87	$	99	$	186

	Nine Months Ended
	November 3, 2023						October 28, 2022
	Revolving		Fixed-term		Total		Revolving		Fixed-term		Total
	(in millions)
Allowance for financing receivable losses:
Balances at beginning of period	$	88	$	113	$	201	$	102	$	87	$	189
Charge-offs, net of recoveries	(37)		(5)		(42)		(37)		(5)		(42)
Provision charged to income statement	32		36		68		22		17		39
Other (a)	(74)		—		(74)		—		—		—
Balances at end of period	$	9	$	144	$	153	$	87	$	99	$	186

____________________

(a)    Other represents the derecognition of the allowance for financing receivable losses related to the sale of the U.S. consumer revolving customer receivables portfolio described in Note 1 of the Notes to the Condensed Consolidated Financial Statements.

The Company recognizes an allowance for financing receivable losses, including both the lease receivable and unguaranteed residual, in an amount equal to the expected losses net of recoveries. The allowance for financing receivable losses on the lease receivable is determined based on various factors, including lifetime expected losses determined using macroeconomic forecast assumptions and management judgments applicable to and through the expected life of the portfolios as well as past due receivables, receivable type, and customer risk profile. The Company continues to monitor broader economic indicators and their potential impact on future credit loss performance.

Aging

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:

	November 3, 2023								February 3, 2023
	Current		Past Due 1 — 90 Days		Past Due >90 Days		Total		Current		Past Due 1 — 90 Days		Past Due >90 Days		Total
	(in millions)
Revolving — DPA	$	5	$	—	$	—	$	5	$	457	$	34	$	17	$	508
Revolving — DBC	146		17		4		167		154		19		4		177
Fixed-term — Consumer and Commercial	9,140		868		136		10,144		9,309		927		57		10,293
Total customer receivables, gross	$	9,291	$	885	$	140	$	10,316	$	9,920	$	980	$	78	$	10,978

Aging is likely to fluctuate as a result of the variability in volume of large transactions entered into over the period, and the administrative processes that accompany those transactions. Aging is also impacted by the timing of the Company’s fiscal period end date relative to calendar month-end customer payment due dates.  As a result of these factors, fluctuations in aging from period to period do not necessarily indicate a material change in the collectibility of the portfolio.

Fixed-term consumer and commercial customer receivables are placed on non-accrual status if principal or interest is past due and considered delinquent, or if there is concern about the collectibility of a specific customer receivable. The receivables identified as doubtful for collectibility may be classified as current for aging purposes. Aged revolving portfolio customer receivables identified as delinquent are charged off.

Credit Quality

The following tables present customer receivables, gross, including accrued interest, by credit quality indicator, segregated by class, as of the dates indicated:

	November 3, 2023
	Fixed-term — Consumer and Commercial
	Fiscal Year of Origination
	2024		2023		2022		2021		2020		Years Prior		Revolving — DPA		Revolving — DBC		Total
	(in millions)
Higher	$	2,494	$	2,195	$	1,076	$	499	$	127	$	3	$	1	$	42	$	6,437
Mid	849		1,047		378		159		40		2		2		49		2,526
Lower	454		516		210		69		25		1		2		76		1,353
Total	$	3,797	$	3,758	$	1,664	$	727	$	192	$	6	$	5	$	167	$	10,316

	February 3, 2023
	Fixed-term — Consumer and Commercial
	Fiscal Year of Origination
	2023		2022		2021		2020		2019		Years Prior		Revolving — DPA		Revolving — DBC		Total
	(in millions)
Higher	$	3,210	$	1,805	$	914	$	343	$	37	$	1	$	123	$	44	$	6,477
Mid	1,242		631		362		119		17		1		136		54		2,562
Lower	1,017		364		157		65		7		1		249		79		1,939
Total	$	5,469	$	2,800	$	1,433	$	527	$	61	$	3	$	508	$	177	$	10,978

The categories shown in the tables above segregate customer receivables based on the relative degrees of credit risk. Credit quality indicators for DBC revolving and fixed-term accounts are generally updated on a periodic basis.

For the DBC revolving receivables and fixed-term commercial receivables shown in the table above, an internal grading system is utilized that assigns a credit level score based on a number of considerations, including liquidity, operating performance, and industry outlook. The grading criteria and classifications for the fixed-term products differ from those for the revolving products as loss experience varies between these product and customer groups. The credit quality categories cannot be compared between the different classes as loss experience varies substantially between the classes. Prior to the sale of the U.S. consumer revolving customer receivables revolving portfolio described in Note 1 of the Notes to the Condensed Consolidated Financial Statements, the Company made credit decisions based on proprietary scorecards, which included the customer’s credit history, payment history, credit usage, and other credit agency-related elements. The higher quality category included prime accounts generally comparable to U.S. customer FICO scores of 720 or above. The mid category represented mid-tier accounts that are comparable to U.S. customer FICO scores from 660 to 719. The lower category represented accounts that are comparable to U.S. customer FICO scores below 660.

Leases

The following table presents 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				Nine Months Ended
	November 3, 2023		October 28, 2022		November 3, 2023		October 28, 2022
	(in millions)
Net revenue — products	$	227	$	207	$	766	$	646
Cost of net revenue — products	176		164		564		532
Gross margin — products	$	51	$	43	$	202	$	114

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 Statement of Financial Position as of the date indicated:

	November 3, 2023
	(in millions)
Fiscal 2024 (remaining three months)	$	809
Fiscal 2025	2,221
Fiscal 2026	1,712
Fiscal 2027	971
Fiscal 2028 and beyond	388
Total undiscounted cash flows	6,101
Fixed-term loans	4,954
Revolving loans	172
Less: Unearned income	(911)
Total customer receivables, gross	$	10,316

Operating Leases

The Company’s operating leases primarily consist of DFS captive fixed-term leases and contractually committed embedded leases identified within flexible consumption arrangements.

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:

	November 3, 2023		February 3, 2023
	(in millions)
Equipment under operating lease, gross	$	3,855	$	3,725
Less: Accumulated depreciation	(1,721)		(1,517)
Equipment under operating lease, net	$	2,134	$	2,208

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				Nine Months Ended
	November 3, 2023		October 28, 2022		November 3, 2023		October 28, 2022
	(in millions)
Income related to lease payments	$	341	$	297	$	992	$	782
Depreciation expense	$	234	$	212	$	703	$	571

The following table presents the future payments to be received by the Company in operating lease contracts as of the date indicated:

	November 3, 2023
	(in millions)
Fiscal 2024 (remaining three months)	$	330
Fiscal 2025	974
Fiscal 2026	628
Fiscal 2027	272
Fiscal 2028 and beyond	113
Total	$	2,317

DFS Debt

The Company maintains programs that facilitate the funding of leases, loans, and other alternative payment structures in the capital markets. 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:

	November 3, 2023		February 3, 2023
DFS debt	(in millions)
DFS U.S. debt:
Asset-based financing and securitization facilities	$	2,443	$	3,987
Fixed-term securitization offerings	3,715		2,679
Other	31		76
Total DFS U.S. debt	6,189		6,742
DFS international debt:
Securitization facility	749		790
Other borrowings	839		871
Note payable	250		250
Dell Bank senior unsecured eurobonds	1,593		1,637
Total DFS international debt	3,431		3,548
Total DFS debt	$	9,620	$	10,290
Total short-term DFS debt	$	5,374	$	5,400
Total long-term DFS debt	$	4,246	$	4,890

DFS U.S. Debt

Asset-Based Financing and Securitization Facilities — The Company maintains separate asset-based financing facilities in the United States, which are revolving facilities for fixed-term leases and loans. This debt is collateralized solely by the U.S. loan and lease payments and associated equipment in the facilities. The debt has a variable interest rate, and the duration of the debt is based on the terms of the underlying loan and lease payment streams. As of November 3, 2023, the total debt capacity related to the U.S. asset-based financing facilities was $5.1 billion. The Company enters into interest swap agreements to effectively convert a portion of this debt from a floating rate to a fixed rate. See Note 7 of the Notes to the Condensed Consolidated Financial Statements for additional information about the Company’s interest rate swaps.

The Company’s two U.S. asset-based financing facilities for fixed-term leases and loans are effective through July 7, 2025 and June 21, 2024, respectively. The asset-based financing facilities contain standard structural features related to the performance of the funded receivables, which include defined credit losses, delinquencies, average credit scores, and minimum collection requirements. In the event one or more of these criteria are not met and the Company is unable to restructure the facility, no further funding of receivables will be permitted and the timing of the Company’s expected cash flows from over-collateralization will be delayed. As of November 3, 2023, these criteria were met.

The Company previously maintained a U.S. securitization facility for revolving loans effective through June 25, 2025. In connection with the sale of the U.S. consumer revolving customer receivables portfolio described in Note 1 of the Notes to the Condensed Consolidated Financial Statements, the Company’s U.S. securitization facility for revolving loans was paid down and terminated during the three months ended November 3, 2023.

Fixed-Term Securitization Offerings — The Company periodically issues asset-backed debt securities under fixed-term securitization programs to private investors. The asset-backed debt securities are collateralized solely by the U.S. fixed-term lease and loan payments and associated equipment, which are held by Special Purpose Entities (“SPEs”), as discussed below. The interest rate on these securities is fixed and ranges from 0.53% to 6.80% per annum as of November 3, 2023, and the duration of these securities is based on the terms of the underlying lease and loan payment streams.

DFS International Debt

Securitization Facility — The Company maintains a securitization facility in Europe for fixed-term leases and loans. The debt under this facility has a variable interest rate, and the duration of the debt is based on the terms of the underlying loan and lease payment streams. This facility is effective through December 23, 2024 and had a total debt capacity of $850 million as of November 3, 2023.

The securitization facility contains standard structural features related to the performance of the securitized receivables, which include defined credit losses, delinquencies, average credit scores, and minimum collection requirements. In the event one or more of these criteria are not met and the Company is unable to restructure the program, no further funding of receivables will be permitted and the timing of the Company’s expected cash flows from over-collateralization will be delayed. As of November 3, 2023, these criteria were met.

Other Borrowings — In connection with the Company’s international financing operations, the Company has entered into revolving structured financing debt programs related to its fixed-term lease and loan products sold in Canada, Europe, Australia, New Zealand, and the Middle East. The debt under these programs has a variable interest rate, and the duration of the debt is based on the terms of the underlying loan and lease payment streams. The Canadian facility, which is collateralized solely by Canadian loan and lease payments and associated equipment, had a total debt capacity of $328 million as of November 3, 2023 and is effective through January 16, 2025. The European facility, which is collateralized solely by European loan and lease payments and associated equipment, had a total debt capacity of $531 million as of November 3, 2023 and is effective through June 14, 2025. The Australia and New Zealand facility, which is collateralized solely by Australia and New Zealand loan and lease payments and associated equipment, had a total debt capacity of $290 million as of November 3, 2023 and is effective through April 20, 2025. The Middle East facility, which is collateralized solely by Middle East loan and lease payments and associated equipment, had a total debt capacity of $150 million as of November 3, 2023 and is effective through March 24, 2025.

Note Payable — On May 25, 2022, the Company entered into an unsecured credit agreement to fund receivables in Mexico. As of November 3, 2023, the aggregate principal amount of the note payable was $250 million. The note bears interest at an annual rate of 4.24% and will mature on May 31, 2024.

Dell Bank Senior Unsecured Eurobonds — On June 24, 2020, Dell Bank issued 500 million Euro of 1.625% senior unsecured four year eurobonds due June 2024. On October 27, 2021, Dell Bank issued 500 million Euro of 0.5% senior unsecured five year eurobonds due October 2026. On October 18, 2022, Dell Bank issued 500 million Euro of 4.5% senior unsecured five year eurobonds due October 2027. The issuances of the senior unsecured eurobonds support the expansion of the financing operations in Europe.

Variable Interest Entities

In connection with the asset-based financing facilities, securitization facilities, and fixed-term securitization offerings discussed above, the Company transfers certain U.S. and European lease and loan payments and associated equipment to SPEs that meet the definition of a VIE and are consolidated, along with the associated debt described above, into the Condensed Consolidated Financial Statements as the Company is the primary beneficiary of the VIEs. The SPEs are bankruptcy-remote legal entities with separate assets and liabilities. The purpose of the SPEs is to facilitate the funding of customer loan and lease payments and associated equipment in the capital markets.

Some of the SPEs have entered into financing arrangements with multi-seller conduits that, in turn, issue asset-backed debt securities in the capital markets. DFS debt outstanding held by the consolidated VIEs is collateralized by the lease and loan payments and associated equipment. The Company’s risk of loss related to securitized receivables is limited to the amount by which the Company’s right to receive collections for assets securitized exceeds the amount required to pay interest, principal, and fees and expenses related to the asset-backed securities. The Company provides credit enhancement to the securitization in the form of over-collateralization.

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:

	November 3, 2023		February 3, 2023
	(in millions)
Assets held by consolidated VIEs
Other current assets	$	146	$	274
Financing receivables, net of allowance
Short-term	$	3,059	$	3,702
Long-term	$	3,261	$	3,295
Property, plant, and equipment, net	$	1,097	$	1,164
Liabilities held by consolidated VIEs
Debt, net of unamortized debt issuance costs
Short-term	$	4,138	$	4,761
Long-term	$	2,753	$	2,685

Lease and loan payments and associated equipment transferred via securitization through SPEs were $1.1 billion and $1.6 billion for the three months ended November 3, 2023 and October 28, 2022, respectively, and $3.7 billion and $4.5 billion for the nine months ended November 3, 2023 and October 28, 2022, respectively.

Customer Receivable Sales

To manage certain concentrations of customer credit exposure, the Company may sell selected fixed-term customer receivables to unrelated third parties on a periodic basis, without recourse. The amount of customer receivables sold for this purpose was $205 million and $431 million for the nine months ended November 3, 2023 and October 28, 2022, respectively. The Company’s continuing involvement in these customer receivables is primarily limited to servicing arrangements.

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LEASES

9 Months Ended

Nov. 03, 2023

Leases [Abstract]

LEASES

LEASES

The Company enters into leasing transactions in which the Company is the lessee. These lease contracts are typically classified as operating leases. The Company’s lease contracts are generally for office buildings used to conduct its business, and the determination of whether such contracts contain leases generally does not require significant estimates or judgments. The Company also leases certain global logistics warehouses, employee vehicles, and equipment. As of November 3, 2023, the remaining terms of the Company’s leases range from one month to approximately ten years. As of November 3, 2023 and February 3, 2023, there were no material finance leases in which the Company was a lessee.

The Company also enters into leasing transactions in which the Company is the lessor, primarily through customer financing arrangements offered through DFS. DFS originates leases that are primarily classified as either sales-type leases or operating leases. See Note 4 of the Notes to the Condensed Consolidated Financial Statements for more information about the Company’s lessor arrangements.

The following table presents components of lease costs included in the Condensed Consolidated Statements of Income for the periods indicated:

	Three Months Ended				Nine Months Ended
	November 3, 2023		October 28, 2022		November 3, 2023		October 28, 2022
	(in millions)
Operating lease costs	$	79	$	67	$	221	$	207
Variable costs	19		25		62		73
Total lease costs	$	98	$	92	$	283	$	280

For both the nine months ended November 3, 2023 and October 28, 2022, sublease income, finance lease costs, and short-term lease costs were immaterial.

The following table presents supplemental information related to operating leases included in the Condensed Consolidated Statements of Financial Position as of the dates indicated:

	Classification	November 3, 2023			February 3, 2023
		(in millions, except for term and discount rate)
Operating lease right-of-use assets	Other non-current assets	$	711		$	725
Current operating lease liabilities	Accrued and other current liabilities	$	246		$	260
Non-current operating lease liabilities	Other non-current liabilities	588			630
Total operating lease liabilities		$	834		$	890
Weighted-average remaining lease term (in years)		4.49			4.95
Weighted-average discount rate		4.71		%	3.48		%

The following table presents supplemental cash flow information related to leases for the periods indicated:

	Nine Months Ended
	November 3, 2023		October 28, 2022
	(in millions)
Cash paid for amounts included in the measurement of lease liabilities — operating cash outflows from operating leases	$	220	$	230
Right-of-use assets obtained in exchange for new operating lease liabilities	$	205	$	134

The following table presents the future maturity of the Company’s operating lease liabilities under non-cancelable leases and reconciles the undiscounted cash flows for these leases to the lease liability recognized on the Condensed Consolidated Statements of Financial Position as of the date indicated:

	November 3, 2023
	(in millions)
Fiscal 2024 (remaining three months)	$	63
Fiscal 2025	240
Fiscal 2026	194
Fiscal 2027	157
Fiscal 2028	113
Thereafter	145
Total lease payments	912
Less: Imputed interest	(78)
Total	$	834
Current operating lease liabilities	$	246
Non-current operating lease liabilities	$	588

As of November 3, 2023, the Company’s undiscounted operating leases that had not yet commenced were immaterial.

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DEBT

9 Months Ended

Nov. 03, 2023

Debt Disclosure [Abstract]

DEBT

DEBT

The following table summarizes the Company’s outstanding debt as of the dates indicated:

	November 3, 2023		February 3, 2023
	(in millions)
Senior Notes:
5.45% due June 2023	$	—	$	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	3,500		4,500
4.90% due October 2026	1,750		1,750
6.10% due July 2027	500		500
5.25% due February 2028	1,000		1,000
5.30% due October 2029	1,750		1,750
6.20% due July 2030	750		750
5.75% due February 2033	1,000		1,000
8.10% due July 2036	1,000		1,000
3.38% due December 2041	962		1,000
8.35% due July 2046	800		800
3.45% due December 2051	1,095		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 4)	9,620		10,290
Other	181		325
Total debt, principal amount	$	26,860	$	29,867
Unamortized discount, net of unamortized premium	(117)		(133)
Debt issuance costs	(126)		(146)
Total debt, carrying value	$	26,617	$	29,588
Total short-term debt, carrying value	$	6,498	$	6,573
Total long-term debt, carrying value	$	20,119	$	23,015

During the nine months ended November 3, 2023, the net decrease in the Company’s debt balance was principally attributable to:

•the repayment of $1 billion principal amount of the 5.45% Senior Notes due June 2023; and

•the repayment of $1 billion principal amount of the 6.02% Senior Notes due June 2026 in a tender offer, in connection with which the Company recognized an immaterial amount of debt extinguishment costs in interest and other, net in the Condensed Consolidated Statement of Income.

Outstanding Debt

Senior Notes — The Company completed offerings of multiple series of senior notes which were issued on June 1, 2016, June 22, 2016, March 20, 2019, April 9, 2020, December 13, 2021, and January 24, 2023 in aggregate principal amounts of $20.0 billion, $3.3 billion, $4.5 billion, $2.3 billion, $2.3 billion, and $2.0 billion, respectively (the “Senior Notes”). Interest on these borrowings is payable semiannually.

Legacy Notes and Debentures — The Company has outstanding unsecured notes and debentures (collectively, the “Legacy Notes and Debentures”) that were issued by Dell Inc. (“Dell”), a wholly-owned subsidiary of Dell Technologies Inc., prior to the acquisition of Dell by Dell Technologies Inc. in the going-private transaction that closed in October 2013. Interest on these borrowings is payable semiannually.

DFS Debt — See Note 4 and Note 7 of the Notes to the Condensed Consolidated Financial Statements, respectively, for discussion of DFS debt and the interest rate swap agreements that hedge a portion of that debt.

2021 Revolving Credit Facility — The Company’s revolving credit facility, which was entered into on November 1, 2021 (the “2021 Revolving Credit Facility”), matures on November 1, 2027. This facility provides the Company with revolving commitments in an aggregate principal amount of $6.0 billion for general corporate purposes, including liquidity support for the Company’s commercial paper program, and includes a letter of credit sub-facility of up to $0.5 billion and a swing-line loan sub-facility of up to $0.5 billion. The 2021 Revolving Credit Facility also allows the Company to obtain incremental additional commitments on one or more occasions in minimum amounts of $10 million.

Borrowings under the 2021 Revolving Credit Facility bear interest at a rate per annum equal to an applicable margin plus, at the borrowers’ option, either (a) the specified adjusted term Secured Overnight Financing Rate (“SOFR”) or (b) a base rate. The margin applicable to SOFR and base rate borrowings varies based upon the Company’s existing credit ratings. The base rate is calculated based upon the greatest of the specified prime rate, the specified federal reserve bank rate, or SOFR plus 1%. The borrowers may voluntarily repay outstanding loans under the 2021 Revolving Credit Facility at any time without premium or penalty, other than customary breakage costs.

As of November 3, 2023, the Company had no outstanding borrowings under the 2021 Revolving Credit Facility.

Commercial Paper Program — During Fiscal 2023, the Company established a commercial paper program under which the Company may issue unsecured notes in a maximum aggregate face amount of $5.0 billion outstanding at any time, with maturities up to 397 days from the date of issuance. The notes are sold on customary terms in the U.S. commercial paper market on a private placement basis. The proceeds of the notes are used for general corporate purposes. As of November 3, 2023, the Company had no outstanding borrowings under the commercial paper program.

The Company may purchase, redeem, prepay, refinance, or otherwise retire any amount of outstanding indebtedness under the terms of such indebtedness at any time and from time to time, in open market or negotiated transactions with the holders of such indebtedness or otherwise, as considered appropriate in light of market conditions and other relevant factors.

Covenants — The credit agreement governing the 2021 Revolving Credit Facility and the indentures governing the Senior Notes and the Legacy Notes and Debentures impose various limitations, subject to exceptions, on creating certain liens and entering into sale and lease-back transactions. The foregoing credit agreement and indentures contain customary events of default, including failure to make required payments, failure to comply with covenants, and the occurrence of certain events of bankruptcy and insolvency. The 2021 Revolving Credit Facility is also subject to an interest coverage ratio covenant that is tested at the end of each fiscal quarter with respect to the Company’s preceding four fiscal quarters. The Company was in compliance with this financial covenant as of November 3, 2023.

Aggregate Future Maturities

The following table presents the aggregate future maturities of the Company’s debt as of November 3, 2023 for the periods indicated:

	Maturities by Fiscal Year
	2024 (remaining three months)		2025		2026		2027		2028		Thereafter		Total
	(in millions)
Senior Notes	$	—	$	1,000	$	1,000	$	5,250	$	500	$	8,357	$	16,107
Legacy Notes and Debentures	—		—		—		—		—		952		952
DFS Debt	1,479		4,807		1,833		884		610		7		9,620
Other	13		124		29		8		6		1		181
Total maturities, principal amount	1,492		5,931		2,862		6,142		1,116		9,317		26,860
Associated carrying value adjustments	(2)		(7)		(6)		(33)		(8)		(187)		(243)
Total maturities, carrying value amount	$	1,490	$	5,924	$	2,856	$	6,109	$	1,108	$	9,130	$	26,617

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DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

9 Months Ended

Nov. 03, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

As part of its risk management strategy, the Company uses derivative instruments, primarily foreign currency forward and option contracts and interest rate swaps, to hedge certain foreign currency and interest rate exposures, respectively.

The Company’s objective is to offset gains and losses resulting from these exposures with gains and losses on the derivative contracts used to hedge the exposures, thereby reducing volatility of earnings and protecting the fair values of assets and liabilities. The earnings effects of the derivative instruments are presented in the same income statement line items as the earnings effects of the hedged items. For derivatives designated as cash flow hedges, the Company assesses hedge effectiveness both at the onset of the hedge and at regular intervals throughout the life of the instruments. For derivatives designated as fair value hedges, the Company assesses hedge effectiveness on qualifying instruments using the shortcut method whereby the hedges are considered perfectly effective at the onset of the hedge and over the life of the hedging relationship.

Foreign Exchange Risk

The Company uses foreign currency forward and option contracts designated as cash flow hedges to protect against the foreign currency exchange rate risks inherent in its forecasted transactions denominated in currencies other than the U.S. Dollar. Hedge accounting is applied based upon the criteria established by accounting guidance for derivative instruments and hedging activities. The risk of loss associated with purchased options is limited to premium amounts paid for the option contracts. The risk of loss associated with forward contracts is equal to the exchange rate differential from the time the contract is entered into until the time it is settled. The majority of these contracts typically expire in twelve months or less.

During the three and nine months ended November 3, 2023 and October 28, 2022, the Company did not discontinue any cash flow hedges related to foreign exchange contracts that had a material impact on the Company’s results of operations due to the probability that the forecasted cash flows would not occur.

The Company uses forward contracts to hedge monetary assets and liabilities denominated in a foreign currency. These contracts generally expire in three months or less, are considered economic hedges, and are not designated for hedge accounting. The change in the fair value of these instruments represents a natural hedge as their gains and losses offset the changes in the underlying fair value of the monetary assets and liabilities due to movements in currency exchange rates.

In connection with DFS operations in Europe, forward contracts are used to hedge financing receivables denominated in foreign currencies other than Euro. These contracts are not designated for hedge accounting and most expire within three years or less.

Interest Rate Risk

The Company uses interest rate swaps to hedge the variability in cash flows related to the interest rate payments on structured financing debt. The interest rate swaps economically convert the variable rate on the structured financing debt to a fixed interest rate to match the underlying fixed rate being received on fixed-term customer leases and loans. These contracts are not designated for hedge accounting and most expire within four years or less.

Interest rate swaps are utilized to manage the interest rate risk, at a portfolio level, associated with DFS operations in Europe. The interest rate swaps economically convert the fixed rate on financing receivables to a three-month Euribor floating rate in order to match the floating rate nature of the banks’ funding pool. The Company also uses interest rate swaps to manage the cash flows related to interest payments on Eurobonds. The interest rate swaps economically convert the fixed rate on the Company’s bonds to a floating rate to match the underlying lease repayments profile. These contracts are not designated for hedge accounting and most expire within five years or less.

The Company utilizes cross-currency amortizing swaps to hedge the currency and interest rate risk exposure associated with the European securitization program.  The cross-currency swaps combine a Euro-based interest rate swap with a British Pound or U.S. Dollar foreign exchange forward contract in which the Company pays a fixed or floating British Pound or U.S. Dollar amount and receives a fixed or floating amount in Euros linked to the one-month Euribor. The notional value of the swaps amortizes in line with the expected cash flows and run-off of the securitized assets.  The swaps are not designated for hedge accounting and expire within five years or less.

Periodically, the Company also uses interest rate swaps to modify the market risk exposures in connection with long-term debt. During Fiscal 2023, the Company entered into interest rate swaps designated as fair value hedges intended to hedge a portion of its interest rate exposure by converting the fixed interest rate of a certain tranche of debt to a floating interest rate based on the benchmark SOFR Overnight Index Swap rate. The gains and losses related to changes in the fair value of such interest rate swaps perfectly offset changes in the fair value of the hedged portion of the underlying debt that were attributable to the changes in the underlying benchmark interest rate. During the nine months ended November 3, 2023, the Company repaid the hedged debt and terminated the associated interest rate swaps.

Derivative Instruments

The following table presents the notional amounts of outstanding derivative instruments as of the dates indicated:

	November 3, 2023		February 3, 2023
	(in millions)
Foreign exchange contracts:
Designated as cash flow hedging instruments	$	7,317	$	7,746
Non-designated as hedging instruments	6,290		6,833
Total	$	13,607	$	14,579
Interest rate contracts:
Designated as fair value hedging instruments	$	—	$	1,000
Non-designated as hedging instruments	6,107		7,214
Total	$	6,107	$	8,214

The following table presents the effect of derivative instruments designated as cash flow hedging instruments on the Condensed Consolidated Statements of Financial Position and the Condensed Consolidated Statements of Income for the periods indicated:

Derivatives in Cash Flow Hedging Relationships	Gain (Loss) Recognized in Accumulated OCI, Net of Tax, on Derivatives		Location of Gain (Loss) Reclassified from Accumulated OCI into Income	Gain (Loss) Reclassified from Accumulated OCI into Income
	(in millions)			(in millions)
For the three months ended November 3, 2023:
			Total net revenue	$	83
Foreign exchange contracts	$	171	Total cost of net revenue	1
Interest rate contracts	—		Interest and other, net	—
Total	$	171	Total	$	84
For the three months ended October 28, 2022:
			Total net revenue	$	324
Foreign exchange contracts	$	306	Total cost of net revenue	—
Interest rate contracts	—		Interest and other, net	—
Total	$	306	Total	$	324

Derivatives in Cash Flow Hedging Relationships	Gain (Loss) Recognized in Accumulated OCI, Net of Tax, on Derivatives		Location of Gain (Loss) Reclassified from Accumulated OCI into Income	Gain (Loss) Reclassified from Accumulated OCI into Income
	(in millions)			(in millions)
For the nine months ended November 3, 2023:
			Total net revenue	$	(68)
Foreign exchange contracts	$	230	Total cost of net revenue	(7)
Interest rate contracts	—		Interest and other, net	—
Total	$	230	Total	$	(75)
For the nine months ended October 28, 2022:
			Total net revenue	$	754
Foreign exchange contracts	$	844	Total cost of net revenue	(28)
Interest rate contracts	—		Interest and other, net	—
Total	$	844	Total	$	726

The following table presents the effect of derivative instruments not designated as hedging instruments on the Condensed Consolidated Statements of Income for the periods indicated:

	Three Months Ended				Nine Months Ended
	November 3, 2023		October 28, 2022		November 3, 2023		October 28, 2022		Location of Gain (Loss) Recognized
	(in millions)
Foreign exchange contracts	$	(114)	$	71	$	(97)	$	(234)	Interest and other, net
Interest rate contracts	2		46		5		64		Interest and other, net
Total	$	(112)	$	117	$	(92)	$	(170)

The Company presents its derivative instruments on a net basis in the Condensed Consolidated Statements of Financial Position due to the right of offset by its counterparties under master netting arrangements. The following tables present the fair value of those derivative instruments presented on a gross basis as of the dates indicated:

	November 3, 2023
	Other Current Assets		Other Non-Current Assets		Other Current Liabilities		Other Non-Current Liabilities		Total Fair Value
	(in millions)
Derivatives designated as hedging instruments:
Foreign exchange contracts in an asset position	$	124	$	—	$	28	$	—	$	152
Foreign exchange contracts in a liability position	(8)		—		(5)		—		(13)
Interest rate contracts in an asset position	—		—		—		—		—
Interest rate contracts in a liability position	—		—		—		—		—
Net asset (liability)	116		—		23		—		139
Derivatives not designated as hedging instruments:
Foreign exchange contracts in an asset position	213		—		86		—		299
Foreign exchange contracts in a liability position	(177)		—		(153)		—		(330)
Interest rate contracts in an asset position	6		57		—		—		63
Interest rate contracts in a liability position	—		—		(15)		(17)		(32)
Net asset (liability)	42		57		(82)		(17)		—
Total derivatives at fair value	$	158	$	57	$	(59)	$	(17)	$	139
	February 3, 2023
	Other Current Assets		Other Non-Current Assets		Other Current Liabilities		Other Non-Current Liabilities		Total Fair Value
	(in millions)
Derivatives designated as hedging instruments:
Foreign exchange contracts in an asset position	$	7	$	—	$	30	$	—	$	37
Foreign exchange contracts in a liability position	(21)		—		(142)		—		(163)
Interest rate contracts in an asset position	—		—		—		—		—
Interest rate contracts in a liability position	—		—		—		(6)		(6)
Net asset (liability)	(14)		—		(112)		(6)		(132)
Derivatives not designated as hedging instruments:
Foreign exchange contracts in an asset position	282		1		368		—		651
Foreign exchange contracts in a liability position	(121)		—		(614)		(1)		(736)
Interest rate contracts in an asset position	14		133		—		—		147
Interest rate contracts in a liability position	—		—		—		(95)		(95)
Net asset (liability)	175		134		(246)		(96)		(33)
Total derivatives at fair value	$	161	$	134	$	(358)	$	(102)	$	(165)

The following tables present the gross amounts of the Company’s derivative instruments, amounts offset due to master netting agreements with the Company’s counterparties, and the net amounts recognized in the Condensed Consolidated Statements of Financial Position as of the dates indicated:

	November 3, 2023
	Gross Amounts of Recognized Assets/ (Liabilities)		Gross Amounts Offset in the Statement of Financial Position		Net Amounts of Assets/(Liabilities) Presented in the Statement of Financial Position		Gross Amounts not Offset in the Statement of Financial Position				Net Amount of Assets/ (Liabilities) Recognized in the Statement of Financial Position
							Financial Instruments		Cash Collateral Received or Pledged
	(in millions)
Derivative instruments:
Financial assets	$	514	$	(299)	$	215	$	—	$	(21)	$	194
Financial liabilities	(375)		299		(76)		—		17		(59)
Total derivative instruments	$	139	$	—	$	139	$	—	$	(4)	$	135
	February 3, 2023
	Gross Amounts of Recognized Assets/ (Liabilities)		Gross Amounts Offset in the Statement of Financial Position		Net Amounts of Assets/(Liabilities) Presented in the Statement of Financial Position		Gross Amounts not Offset in the Statement of Financial Position				Net Amount of Assets/ (Liabilities) Recognized in the Statement of Financial Position
							Financial Instruments		Cash Collateral Received or Pledged
	(in millions)
Derivative instruments:
Financial assets	$	835	$	(540)	$	295	$	—	$	—	$	295
Financial liabilities	(1,000)		540		(460)		—		25		(435)
Total derivative instruments	$	(165)	$	—	$	(165)	$	—	$	25	$	(140)

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GOODWILL AND INTANGIBLE ASSETS

9 Months Ended

Nov. 03, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS

Goodwill

The Infrastructure Solutions Group and Client Solutions Group reporting units are consistent with the reportable segments identified in Note 16 of the Notes to the Condensed Consolidated Financial Statements. Other businesses consists of VMware Resale, Secureworks, and Virtustream, which each represent separate reporting units.

The following table presents goodwill allocated to the Company’s reportable segments and changes in the carrying amount of goodwill as of the dates indicated:

	Infrastructure Solutions Group		Client Solutions Group		Other Businesses		Total
	(in millions)
Balances as of February 3, 2023	$	15,017	$	4,232	$	427	$	19,676
Goodwill acquired (a)	82		—		—		82
Impact of foreign currency translation and other	(142)		—		—		(142)
Balances as of November 3, 2023	$	14,957	$	4,232	$	427	$	19,616

____________________

(a)    Goodwill acquired represents goodwill recognized in connection with the Company’s acquisition of Moogsoft Inc. during the three months ended November 3, 2023.

Intangible Assets

The following table presents the Company’s intangible assets as of the dates indicated:

	November 3, 2023						February 3, 2023
	Gross		Accumulated Amortization		Net		Gross		Accumulated Amortization		Net
	(in millions)
Customer relationships	$	16,968	$	(14,817)	$	2,151	$	16,956	$	(14,474)	$	2,482
Developed technology	9,506		(8,897)		609		9,466		(8,660)		806
Trade names	875		(813)		62		875		(780)		95
Definite-lived intangible assets	27,349		(24,527)		2,822		27,297		(23,914)		3,383
Indefinite-lived trade names	3,085		—		3,085		3,085		—		3,085
Total intangible assets	$	30,434	$	(24,527)	$	5,907	$	30,382	$	(23,914)	$	6,468

Amortization expense related to definite-lived intangible assets was $205 million and $245 million for the three months ended November 3, 2023 and October 28, 2022, respectively, and $613 million and $732 million for the nine months ended November 3, 2023 and October 28, 2022, respectively. There were no material impairment charges related to intangible assets during the three and nine months ended November 3, 2023 and October 28, 2022.

The following table presents the estimated future annual pre-tax amortization expense of definite-lived intangible assets as of the date indicated:

	November 3, 2023
	(in millions)
Fiscal 2024 (remaining three months)	$	205
Fiscal 2025	654
Fiscal 2026	495
Fiscal 2027	386
Fiscal 2028	230
Thereafter	852
Total	$	2,822

Goodwill and Indefinite-Lived Intangible Assets Impairment Testing

Goodwill and indefinite-lived intangible assets are tested for impairment annually during the third fiscal quarter and whenever events or circumstances may indicate that an impairment has occurred.

For the annual impairment review of the Infrastructure Solutions Group (“ISG”) and Client Solutions Group (“CSG”) reporting units during the third quarter of Fiscal 2024, the Company elected to bypass the assessment of qualitative factors to determine whether it was more likely than not that the fair value of a reporting unit was less than its carrying amount, including goodwill. In electing to bypass the qualitative assessment, the Company proceeded directly to perform a quantitative goodwill impairment test to measure the fair value of each goodwill reporting unit relative to its carrying amount, and to determine the amount of goodwill impairment loss to be recognized, if any. For the remaining reporting units, the Company performed a qualitative assessment of goodwill at the reporting unit level. The qualitative assessment included consideration of the relevant events and circumstances affecting the reporting unit, including macroeconomic, industry and market conditions, overall financial performance, and trends in the public company market valuation, where applicable.

Management exercised significant judgment related to the above assessment, including the identification of goodwill reporting units, assignment of assets and liabilities to goodwill reporting units, assignment of goodwill to reporting units, and determination of the fair value of each goodwill reporting unit. For the quantitative goodwill impairment test, the fair value of each goodwill reporting unit is generally estimated using a combination of public company multiples and discounted cash flow methodologies. The discounted cash flow and public company multiples methodologies require significant judgment, including estimation of future revenues, gross margins, and operating expenses, which are dependent on internal forecasts, current and anticipated economic conditions and trends, selection of market multiples through assessment of the reporting unit’s performance relative to peer competitors, the estimation of the long-term revenue growth rate and discount rate of the Company’s business, and the determination of the Company’s weighted average cost of capital. Changes in these estimates and assumptions could materially affect the fair value of the goodwill reporting unit, potentially resulting in a non-cash impairment charge.

The fair value of the indefinite-lived trade names is generally estimated using discounted cash flow methodologies. These methodologies require significant judgment, including estimation of future revenue, the estimation of the long-term revenue growth rate of the Company’s business and the determination of the Company’s weighted average cost of capital and royalty rates. Changes in these estimates and assumptions could materially affect the fair value of the indefinite-lived intangible assets, potentially resulting in a non-cash impairment charge.

Based on the results of the annual impairment test performed during the three months ended November 3, 2023, the fair values of each of the reporting units and indefinite-lived intangibles exceeded their carrying values. No goodwill or indefinite-lived assets impairment test was performed during the nine months ended November 3, 2023 other than the Company’s annual impairment review.

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DEFERRED REVENUE

9 Months Ended

Nov. 03, 2023

Revenue from Contract with Customer [Abstract]

DEFERRED REVENUE

DEFERRED REVENUE

Deferred revenue consists of support and deployment services, software maintenance, training, Software-as-a-Service, and undelivered hardware and professional services, consisting of installations and consulting engagements. Deferred revenue is recorded when the Company has invoiced or payments have been received for undelivered products or services where transfer of control has not occurred. Revenue is recognized as the Company’s performance obligations under the contract are completed.

The following table presents the changes in the Company’s deferred revenue for the periods indicated:

	Three Months Ended				Nine Months Ended
	November 3, 2023		October 28, 2022		November 3, 2023		October 28, 2022
	(in millions)
Deferred revenue:
Deferred revenue at beginning of period	$	30,312	$	28,025	$	30,286	$	27,573
Revenue deferrals	4,492		4,128		15,236		14,675
Revenue recognized	(5,766)		(5,064)		(16,484)		(14,994)
Other (a)	15		—		15		(165)
Deferred revenue at end of period	$	29,053	$	27,089	$	29,053	$	27,089
Short-term deferred revenue	$	15,206	$	14,106	$	15,206	$	14,106
Long-term deferred revenue	$	13,847	$	12,983	$	13,847	$	12,983

____________________

(a)    For the nine months ended October 28, 2022, Other represents the reclassification of deferred revenue to accrued and other liabilities.

Remaining Performance Obligations — Remaining performance obligations represent the aggregate amount of the transaction price allocated to performance obligations not delivered, or partially undelivered, as of the end of the reporting period. Remaining performance obligations include deferred revenue plus unbilled amounts not yet recorded in deferred revenue. The value of the transaction price allocated to remaining performance obligations as of November 3, 2023 was approximately $39 billion. The Company expects to recognize approximately 58% of remaining performance obligations as revenue in the next twelve months, and the remainder thereafter.

The aggregate amount of the transaction price allocated to remaining performance obligations does not include amounts owed under cancelable contracts where there is no substantive termination penalty. The Company applied the practical expedient to exclude the value of remaining performance obligations for contracts for which revenue is recognized at the amount to which the Company has the right to invoice for services performed.

Remaining performance obligation estimates are subject to change and are affected by several factors, including terminations, changes in the scope of contracts, periodic revalidation, adjustments for revenue that have not materialized, and adjustments for currency.

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COMMITMENTS AND CONTINGENCIES

9 Months Ended

Nov. 03, 2023

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

Purchase Obligations

The Company has contractual obligations to purchase goods or services, which specify significant terms (including fixed or minimum quantities to be purchased), fixed, minimum, or variable price provisions; and the approximate timing of the transaction. As of November 3, 2023, such purchase obligations were $3.8 billion for the remaining three months of Fiscal 2024; $0.8 billion for Fiscal 2025; and $0.6 billion for Fiscal 2026 and thereafter.

Legal Matters

The Company is involved in various claims, suits, assessments, investigations, and legal proceedings that arise from time to time in the ordinary course of its business, including those identified below, consisting of matters involving consumer, antitrust, tax, intellectual property, and other issues on a global basis.

The Company accrues a liability when it believes that it is both probable that a liability has been incurred and that it can reasonably estimate the amount of the loss. The Company reviews these accruals at least quarterly and adjusts them to reflect ongoing negotiations, settlements, rulings, advice of legal counsel, and other relevant information. To the extent new information is obtained and the Company’s views on the probable outcomes of claims, suits, assessments, investigations, or legal proceedings change, changes in the Company’s accrued liabilities are recorded in the period in which such a determination is made. For some matters, the incurrence of a liability is not probable or the amount cannot be reasonably estimated and therefore accruals have not been made.

The following is a discussion of the Company’s significant legal matters and other proceedings:

Class Actions Related to the Class V Transaction — On December 28, 2018, the Company completed a transaction (the “Class V transaction”) in which it paid $14.0 billion in cash and issued 149,387,617 shares of its Class C Common Stock to holders of its Class V Common Stock in exchange for all outstanding shares of Class V Common Stock. As a result of the Class V transaction, the tracking stock feature of the Company’s capital structure associated with the Class V Common Stock was terminated. Certain stockholders of the Company, subsequently brought class action complaints arising out of the Class V transaction in which they named as defendants (collectively, the “defendants”) Michael S. Dell and certain other directors serving on the Company’s board of directors at the time of the Class V transaction (collectively, the “director defendants”), certain stockholders of the Company, consisting of Mr. Dell and Silver Lake Group LLC and certain of its affiliated funds (collectively, the “stockholder defendants”), and Goldman Sachs & Co. LLC (“Goldman Sachs”), which served as financial advisor to the Company in connection with the transaction. The plaintiffs generally alleged that the director defendants and the stockholder defendants breached their fiduciary duties under Delaware law to the former holders of the Class V Common Stock in connection with the Class V transaction by offering a transaction value that was allegedly billions of dollars below fair value.

As previously reported, during the fourth quarter of Fiscal 2023, the plaintiffs and the defendants entered into an agreement to settle the lawsuit. Under the terms of the settlement, the plaintiffs agreed to the dismissal of all claims upon payment of a total of $1.0 billion (the “settlement amount”), which includes all costs, expenses and fees of the plaintiff class relating to the action and its resolution. The settlement terms required that the settlement amount be paid by the Company and/or the Company’s insurers pursuant to indemnification obligations of the Company to the defendants. The Company is subject to indemnification obligations, upon the satisfaction of specified conditions, to the director and stockholder defendants and their affiliates pursuant to provisions of the Delaware General Corporation Law, the Company’s certificate of incorporation and bylaws, and agreements with the defendants. A special committee of the Board of Directors consisting of directors who were not defendants in the action, advised by independent counsel, informed the Board of Directors of its determination that the defendants are entitled to indemnification under the foregoing obligations.

During Fiscal 2023, the Company established a $1.0 billion liability on the Consolidated Statements of Financial Position and recognized $0.9 billion expense, net of $106 million in insurance proceeds, within interest and other, net within the Consolidated Statements of Income related to the settlement agreement. The Company accounted for the expected insurance proceeds as a loss recovery and recognized a benefit within interest and other, net within the Condensed Consolidated Statements of Income and corresponding receivable on the Condensed Consolidated Statements of Financial Position.

On May 16, 2023, during the second quarter of Fiscal 2024, the Company paid the settlement amount following approval of the settlement by the Delaware Court of Chancery. The payment is reflected within cash flows from operating activities within the Condensed Consolidated Statements of Cash Flows. The Company does not expect to incur additional expenses with respect to the settlement.

Other Litigation — Dell does not currently anticipate that any of the other various legal proceedings it is involved in will have a material adverse effect on its business, financial condition, results of operations, or cash flows.

In accordance with the relevant accounting guidance, the Company provides disclosures of matters where it is at least reasonably possible that the Company could experience a material loss exceeding the amounts already accrued for these or other proceedings or matters. In addition, the Company also discloses matters based on its consideration of other matters and qualitative factors, including the experience of other companies in the industry, and investor, customer, and employee relations considerations. As of November 3, 2023, the Company does not believe there is a reasonable possibility that a material loss exceeding the amounts already accrued for these or other proceedings or matters has been incurred. However, since the ultimate resolution of any such proceedings and matters is inherently unpredictable, the Company’s business, financial condition, results of operations, or cash flows could be materially affected in any particular period by unfavorable outcomes in one or more of these proceedings or matters. Whether the outcome of any claim, suit, assessment, investigation, or legal proceeding, individually or collectively, could have a material adverse effect on the Company’s business, financial condition, results of operations, or cash flows will depend on a number of factors, including the nature, timing, and amount of any associated expenses, amounts paid in settlement, damages, or other remedies or consequences.

Indemnifications Obligations

In the ordinary course of business, the Company enters into various contracts under which it may agree to indemnify other parties for losses incurred from certain events as defined in the relevant contract, such as litigation, regulatory penalties, or claims relating to past performance. Such indemnification obligations may not be subject to maximum loss clauses. Historically, payments related to these indemnification obligations have not been material to the Company.

Under the Separation and Distribution Agreement entered into with VMware, Inc. upon the completion of the spin-off of VMware, Inc. by means of a special stock dividend (the “VMware Spin-off”) on November 1, 2021, Dell Technologies agreed to indemnify VMware, Inc., each of its subsidiaries and each of their respective directors, officers, and employees from and against all liabilities relating to, arising out of or resulting from, among other matters, the liabilities allocated to Dell Technologies as part of the separation of Dell Technologies and VMware, Inc. (individually and together with its subsidiaries, “VMware”) and their respective businesses (the “Separation”). VMware similarly agreed to indemnify Dell Technologies Inc., each of its subsidiaries and each of their respective directors, officers, and employees from and against all liabilities relating to, arising out of or resulting from, among other matters, the liabilities allocated to VMware as part of the Separation. Dell Technologies expects VMware to fully perform under the terms of the Separation and Distribution Agreement.

For information on the cross-indemnifications related to the tax matters agreement between the Company and VMware effective upon the Separation on November 1, 2021, see Note 15 of the Notes to the Condensed Consolidated Financial Statements.

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INCOME AND OTHER TAXES

9 Months Ended

Nov. 03, 2023

Income Tax Disclosure [Abstract]

INCOME AND OTHER TAXES

INCOME AND OTHER TAXES

For the three months ended November 3, 2023, the Company’s effective income tax rate was 14.9% on pre-tax income of $1.2 billion compared to 46.9% on pre-tax income of $0.5 billion for the three months ended October 28, 2022. The decline in the Company’s effective tax rate was primarily attributable to the impact of expenses recognized during the three months ended October 28, 2022 in connection with the agreement to settle the Class V transaction litigation described in Note 10 of the Notes to the Condensed Consolidated Financial Statements. Other changes in the Company’s effective income tax rate were attributable to higher U.S. tax on foreign operations, changes in the Company’s jurisdictional mix of income, and the impact of discrete tax items.

For the nine months ended November 3, 2023, the Company’s effective income tax rate was 21.6% on pre-tax income of $2.6 billion compared to 21.1% on pre-tax income of $2.3 billion for the nine months ended October 28, 2022. The increase in the Company’s effective tax rate was attributable to higher U.S. tax on the Company’s foreign operations, changes in the Company’s jurisdictional mix of income, and the impact of discrete tax items, largely offset by the impact of the litigation expenses discussed above.

The differences between the estimated effective income tax rates and the U.S. federal statutory rate of 21% principally result from the geographical distribution of income, differences between the book and tax treatment of certain items, and discrete tax items. In certain jurisdictions, the Company’s tax rate is significantly less than the applicable statutory rate as a result of tax holidays. The majority of the Company’s foreign income subject to these tax holidays and lower tax rates is attributable to Singapore and China. A significant portion of these income tax benefits relates to a tax holiday that will be effective until January 31, 2029. Most of the Company’s other tax holidays will expire in whole or in part during fiscal years 2030 through 2031. Many of these tax holidays and reduced tax rates may be extended when certain conditions are met or may be terminated early if certain conditions are not met or as a result of changes in tax legislation. As of November 3, 2023, the Company was not aware of any matters of noncompliance related to these tax holidays or enacted tax legislative changes affecting these tax holidays.

In June 2023, the Company received Revenue Agent’s Reports for the examination by the Internal Revenue Service (“IRS”) of fiscal years 2015 through 2017 and fiscal years 2018 through 2019. The Company agreed with the IRS assessments relating to fiscal years 2015 through 2017 and settled those positions in August 2023. The impact to the financial statements for that settlement was not material. For fiscal years 2018 through 2019, the IRS proposed adjustments primarily relating to certain transactions the Company completed as part of its business integration efforts, with which the Company disagrees and which it will contest through the IRS administrative appeals procedures. In August 2023, the Company submitted a written protest to the IRS relating to certain assessments. The Company anticipates that the appeals process for the resolution of these matters will extend beyond the next twelve months. In September 2023, the IRS commenced a federal income tax examination of fiscal years 2020 through 2022.

The Company is also currently under income tax audits in various U.S. state and foreign taxing jurisdictions. The Company is undergoing negotiations, and in some cases contested proceedings, relating to tax matters with the taxing authorities in these jurisdictions. With respect to major U.S. state and foreign taxing jurisdictions, the Company is generally not subject to tax examinations for years prior to the fiscal year ended January 29, 2010. The Company believes that it has provided adequate reserves related to all matters contained in tax periods open to examination, including the IRS audits described above. Although the Company believes it has made adequate provisions for the uncertainties surrounding these audits, should the Company experience unfavorable outcomes, such outcomes could have a material impact on its results of operations, financial position, and cash flows.

Judgment is required in evaluating the Company’s uncertain tax positions and determining the Company’s provision for income taxes. Unrecognized tax benefits were $1.2 billion and $1.3 billion as of November 3, 2023 and February 3, 2023, respectively, and are included in other non-current liabilities in the Condensed Consolidated Statements of Financial Position. Although the timing of resolution or closure of uncertain tax positions is not certain, the Company believes it is reasonably possible that certain tax matters in various jurisdictions could be concluded within the next twelve months. The resolution of these matters could reduce the Company’s unrecognized tax benefits up to $0.4 billion including interest and penalties. Such a reduction would have a material impact on the Company’s effective tax rate.

The Company takes certain non-income tax positions in the jurisdictions in which it operates and has received certain non-income tax assessments from various jurisdictions. The Company believes that a material loss in these matters is not probable and that it is not reasonably possible that a material loss exceeding amounts already accrued has been incurred.  The Company believes its positions in these non-income tax litigation matters are supportable and that it ultimately will prevail in the matters. In the normal course of business, the Company’s positions and conclusions related to its non-income taxes could be challenged and assessments may be made. To the extent new information is obtained and the Company’s views on its positions, probable outcomes of assessments, or litigation change, changes in estimates to the Company’s accrued liabilities would be recorded in the period in which such a determination is made. In the resolution process for income tax and non-income tax audits, the Company is required in certain situations to provide collateral guarantees or indemnification to regulators and tax authorities until the matter is resolved.

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ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

9 Months Ended

Nov. 03, 2023

Equity [Abstract]

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

Accumulated other comprehensive income (loss) is presented in stockholders’ equity (deficit) in the Condensed Consolidated Statements of Financial Position and consists of amounts related to foreign currency translation adjustments, unrealized net gains (losses) on cash flow hedges, and actuarial net gains (losses) from pension and other postretirement plans.

The following table presents changes in accumulated other comprehensive income (loss), net of tax, by the following components as of the dates indicated:

	Foreign Currency Translation Adjustments		Cash Flow Hedges		Pension and Other Postretirement Plans		Accumulated Other Comprehensive Income (Loss)
	(in millions)
Balances as of February 3, 2023	$	(747)	$	(222)	$	(32)	$	(1,001)
Other comprehensive income (loss) before reclassifications	(130)		230		3		103
Amounts reclassified from accumulated other comprehensive income (loss)	—		75		—		75
Total change for the period	(130)		305		3		178
Balances as of November 3, 2023	$	(877)	$	83	$	(29)	$	(823)

Amounts related to the Company’s cash flow hedges are reclassified to net income during the same period in which the items being hedged are recognized in earnings. See Note 7 of the Notes to the Condensed Consolidated Financial Statements for more information on the Company’s derivative instruments.

The following table presents reclassifications out of accumulated other comprehensive income (loss), net of tax, to net income for the periods indicated:

	Three Months Ended
	November 3, 2023						October 28, 2022
	Cash Flow Hedges		Pensions		Total		Cash Flow Hedges		Pensions		Total
	(in millions)
Total reclassifications, net of tax:
Net revenue	$	83	$	—	$	83	$	324	$	—	$	324
Cost of net revenue	1		—		1		—		—		—
Operating expenses	—		—		—		—		(1)		(1)
Total reclassifications, net of tax	$	84	$	—	$	84	$	324	$	(1)	$	323

	Nine Months Ended
	November 3, 2023						October 28, 2022
	Cash Flow Hedges		Pensions		Total		Cash Flow Hedges		Pensions		Total
	(in millions)
Total reclassifications, net of tax:
Net revenue	$	(68)	$	—	$	(68)	$	754	$	—	$	754
Cost of net revenue	(7)		—		(7)		(28)		—		(28)
Operating expenses	—		—		—		—		(1)		(1)
Total reclassifications, net of tax	$	(75)	$	—	$	(75)	$	726	$	(1)	$	725

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CAPITALIZATION

9 Months Ended

Nov. 03, 2023

Equity [Abstract]

CAPITALIZATION

CAPITALIZATION

The following table presents the Company’s authorized, issued, and outstanding common stock as of the dates indicated:

	Authorized	Issued	Outstanding
	(in millions)
Common stock as of November 3, 2023
Class A	600	379	379
Class B	200	91	91
Class C	7,900	349	245
Class D	100	—	—
	8,800	819	715
Common stock as of February 3, 2023
Class A	600	379	379
Class B	200	95	95
Class C	7,900	324	242
Class D	100	—	—
	8,800	798	716

Preferred Stock

The Company is authorized to issue one million shares of preferred stock, par value $0.01 per share. As of November 3, 2023 and February 3, 2023, no shares of preferred stock were issued or outstanding.

Common Stock

Dell Technologies Common Stock — The Class A Common Stock, the Class B Common Stock, the Class C Common Stock, and the Class D Common Stock are collectively referred to as Dell Technologies Common Stock. The par value for all series of Dell Technologies Common Stock is $0.01 per share. The Class A Common Stock, the Class B Common Stock, the Class C Common Stock, and the Class D Common Stock share equally in dividends declared or accumulated and have equal participation rights in undistributed earnings.

Voting Rights — Each holder of record of (a) Class A Common Stock is entitled to ten votes per share of Class A Common Stock; (b) Class B Common Stock is entitled to ten votes per share of Class B Common Stock; (c) Class C Common Stock is entitled to one vote per share of Class C Common Stock; and (d) Class D Common Stock is not entitled to any vote on any matter except to the extent required by provisions of Delaware law (in which case such holder is entitled to one vote per share of Class D Common Stock).

Conversion Rights — Under the Company’s certificate of incorporation, at any time and from time to time, any holder of Class A Common Stock or Class B Common Stock has the right to convert all or any of the shares of Class A Common Stock or Class B Common Stock, as applicable, held by such holder into shares of Class C Common Stock on a one-to-one basis. 

During the nine months ended November 3, 2023, the Company issued 4.7 million shares of Class C Common Stock to stockholders upon the conversion of the same number of shares of Class B Common Stock into Class C Common Stock in accordance with the Company’s certificate of incorporation. During the nine months ended October 28, 2022, there were no conversions of shares of Class A Common Stock or Class B Common Stock into shares of Class C Common Stock.

Dividends

On February 24, 2022, the Company announced that the Board of Directors adopted a dividend policy providing for our payment of quarterly cash dividends on the Dell Technologies common stock at a rate of $0.33 per share per fiscal quarter beginning in the first quarter of Fiscal 2023. On March 2, 2023, the Company announced that the Board of Directors approved a 12% increase in the quarterly dividend rate from $0.33 per share per fiscal quarter to a rate of $0.37 per share per fiscal quarter beginning in the first quarter of Fiscal 2024.

The Company paid the following dividends during the periods presented:

Three Months Ended	Declaration Date	Record Date	Payment Date	Dividend per Share		Amount (in millions)
Fiscal 2024
May 5, 2023	March 2, 2023	April 25, 2023	May 5, 2023	$	0.37	$	270
August 4, 2023	June 16, 2023	July 25, 2023	August 4, 2023	$	0.37	$	268
November 3, 2023	September 28, 2023	October 24, 2023	November 3, 2023	$	0.37	$	266
Fiscal 2023
April 29, 2022	February 24, 2022	April 20, 2022	April 29, 2022	$	0.33	$	248
July 29, 2022	June 7, 2022	July 20, 2022	July 29, 2022	$	0.33	$	242
October 28, 2022	September 6, 2022	October 19, 2022	October 28, 2022	$	0.33	$	238

During the three and nine months ended November 3, 2023, the Company also paid an immaterial amount of dividend equivalents on eligible vested equity awards which are not reflected above.

Repurchases of Common Stock

Effective as of September 23, 2021, the Company’s Board of Directors approved a stock repurchase program under which the Company is authorized to repurchase up to $5 billion of shares of Class C Common Stock with no fixed expiration date.

Effective as of October 5, 2023, the Company’s Board of Directors approved the repurchase of an additional $5 billion of shares of the Company’s Class C Common Stock with no fixed expiration date. Following the approval, the Company had approximately $5.7 billion in authorized amount remaining under the stock repurchase program.

During the nine months ended November 3, 2023, the Company repurchased approximately 22 million shares of Class C Common Stock for a total purchase price of approximately $1.3 billion. During the nine months ended October 28, 2022, the Company repurchased approximately 59 million shares of Class C Common Stock for a total purchase price of approximately $2.7 billion.

The above repurchases of Class C Common Stock exclude shares withheld from stock awards to settle employee tax withholding obligations related to the vesting of such awards.

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EARNINGS PER SHARE

9 Months Ended

Nov. 03, 2023

Earnings Per Share [Abstract]

EARNINGS PER SHARE

EARNINGS PER SHARE

Basic earnings per share is based on the weighted-average effect of all common shares issued and outstanding and is calculated by dividing net income by the weighted-average shares outstanding during the period. Diluted earnings per share is calculated by dividing net income by the weighted-average number of common shares used in the basic earnings per share calculation plus the number of common shares that would be issued assuming exercise or conversion of all potentially dilutive instruments. The Company excludes equity instruments from the calculation of diluted earnings per share if the effect of including such instruments is antidilutive.

The following table presents basic and diluted earnings per share for the periods indicated:

	Three Months Ended				Nine Months Ended
	November 3, 2023		October 28, 2022		November 3, 2023		October 28, 2022
Earnings per share attributable to Dell Technologies Inc.
Dell Technologies Common Stock — Basic	$	1.39	$	0.34	$	2.83	$	2.47
Dell Technologies Common Stock — Diluted	$	1.36	$	0.33	$	2.78	$	2.41

The following table presents the computation of basic and diluted earnings per share for the periods indicated:

	Three Months Ended				Nine Months Ended
	November 3, 2023		October 28, 2022		November 3, 2023		October 28, 2022
	(in millions)
Numerator: Dell Technologies Common Stock
Net income attributable to Dell Technologies Inc. - basic and diluted	$	1,006	$	245	$	2,051	$	1,828
Denominator: Dell Technologies Common Stock weighted-average shares outstanding
Weighted-average shares outstanding — basic	722		728		724		740
Dilutive effect of equity awards	18		15		14		19
Weighted-average shares outstanding — diluted	740		743		738		759
Weighted-average shares outstanding — antidilutive	—		18		5		11

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RELATED PARTY TRANSACTIONS

9 Months Ended

Nov. 03, 2023

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS

For the periods presented within this report, VMware was considered to be a related party of the Company as a result of Michael Dell’s ownership interests in both Dell Technologies and VMware as well as Mr. Dell’s service as Chairman and Chief Executive Officer of Dell Technologies and as Chairman of the Board of VMware, Inc.

Subsequent to the close of the Company’s third quarter of Fiscal 2024, Broadcom Inc. completed its acquisition of VMware and terminated the preexisting related party relationship. See Note 18 of the Notes to the Condensed Consolidated Financial Statements for more information about the impact of the transaction on the Company’s relationship with VMware.

The information provided below includes a summary of transactions with VMware for the periods presented. Transactions with related parties other than VMware during the periods presented were immaterial, individually and in aggregate.

Transactions with VMware

•Pursuant to original equipment manufacturer and reseller arrangements, Dell Technologies integrates or bundles VMware’s products and services with Dell Technologies’ products and sells them to end-users. Dell Technologies also acts as a distributor, purchasing VMware’s standalone products and services for resale to end-user customers. Where applicable, costs under these arrangements are presented net of rebates received by Dell Technologies.

•Dell Technologies may procure products and services from VMware for its internal use. For the three and nine months ended November 3, 2023 and October 28, 2022, costs incurred associated with products and services purchased from VMware for internal use were immaterial.

•Dell Technologies sells and leases products and sells services to VMware. For the three and nine months ended November 3, 2023 and October 28, 2022, revenue recognized from sales of services to VMware was immaterial.

•DFS provides financing to certain VMware end-users. Upon acceptance of the financing arrangement by both VMware’s end-users and DFS, DFS recognizes amounts due to related parties on the Condensed Consolidated Statements of Financial Position. Associated financing fees are recorded to product net revenue on the Condensed Consolidated Statements of Income and are reflected within sales and leases of products to VMware in the table below.

•Dell Technologies and VMware also enter into joint marketing, sales, and branding arrangements, for which both parties may incur costs. For the three and nine months ended November 3, 2023 and October 28, 2022, consideration received from VMware for joint marketing, sales, and branding arrangements was immaterial.

•Dell Technologies and VMware entered into a transition services agreement in connection with the VMware Spin-off to provide various support services, including investment advisory services, certain support services from Dell Technologies personnel, and other transitional services. Costs associated with this agreement were immaterial for the three and nine months ended October 28, 2022. Activities under the agreement concluded during Fiscal 2023.

The following table presents information about the impact of Dell Technologies’ related party transactions with VMware on the Condensed Consolidated Statements of Income for the periods indicated:

		Three Months Ended				Nine Months Ended
	Classification	November 3, 2023		October 28, 2022		November 3, 2023		October 28, 2022
		(in millions)
Sales and leases of products to VMware	Net revenue - products	$	16	$	49	$	94	$	130
Purchase of VMware products for resale	Cost of net revenue - products	$	379	$	281	$	970	$	962
Purchase of VMware services for resale	Cost of net revenue - services	$	884	$	733	$	2,640	$	2,204

The following table presents information about the impact of Dell Technologies’ related party transactions with VMware on the Condensed Consolidated Statements of Financial Position as of the dates indicated:

	Classification	November 3, 2023		February 3, 2023
		(in millions)
Deferred costs related to VMware products and services for resale	Other current assets	$	2,926	$	3,000
Deferred costs related to VMware products and services for resale	Other non-current assets	$	2,201	$	2,537

	November 3, 2023		February 3, 2023
	(in millions)
Due from related party, net, current (a)	$	386	$	378
Due from related party, net, non-current (b)	$	239	$	440
Due to related party, current (c)	$	1,246	$	2,067
Due to related party, non-current (d)	$	11	$	—

____________________

(a)     Amounts due from related party, net, current consisted of amounts due from VMware, inclusive of current net tax receivables from VMware under the Tax Agreements described below. Amounts, excluding tax, are generally settled in cash within 60 days of each quarter-end.

(b)     Amounts due from related party, net, non-current consisted of the non-current portion of net receivables from VMware under the Tax Agreements.

(c)     Amounts due to related party, current included amounts due to VMware, which are generally settled in cash within 60 days of each quarter-end.

(d)     Amounts due to related party, non-current are included in other non-current liabilities.

Related Party Tax Matters

Tax Agreements — In connection with the VMware Spin-off and concurrently with the execution of the Separation and Distribution Agreement, effective as of April 14, 2021, Dell Technologies and VMware entered into a Tax Matters Agreement (the “Tax Matters Agreement”) and agreed to terminate the tax sharing agreement as amended on December 30, 2019 (together with the Tax Matters Agreement, the “Tax Agreements”). The Tax Matters Agreement governs Dell Technologies’ and VMware’s respective rights and obligations, both for pre-spin-off periods and post-spin-off periods, regarding income and other taxes, and related matters, including tax liabilities and benefits, attributes, and returns.

The timing of the tax payments due to and from related parties is governed by the Tax Agreements. VMware’s portion of the mandatory one-time transition tax on accumulated earnings of foreign subsidiaries (the “Transition Tax”) is governed by a letter agreement between VMware and Dell Technologies entered into on April 1, 2019.

Pursuant to the Tax Agreements, net receipts from VMware during the nine months ended November 3, 2023 and net payments to VMware during the nine months ended October 28, 2022 were immaterial.

As a result of the activity under the Tax Agreements with VMware, amounts due from VMware were $484 million and $599 million as of November 3, 2023 and February 3, 2023, respectively, and primarily related to VMware’s estimated tax obligation resulting from the Transition Tax. The 2017 Tax Cuts and Jobs Act included a deferral election for an eight-year installment payment method on the Transition Tax. Dell Technologies expects VMware to pay the remainder of its Transition Tax over a period of two years.

Indemnification — Upon consummation of the VMware Spin-off, Dell Technologies recorded net income tax indemnification receivables from VMware related to certain income tax liabilities for which Dell Technologies is jointly and severally liable, but for which it is indemnified by VMware under the Tax Matters Agreement. The amounts that VMware may be obligated to pay Dell Technologies could vary depending on the outcome of certain unresolved tax matters, which may not be resolved for several years. The net receivable as of November 3, 2023 and February 3, 2023 was $95 million and $146 million, respectively.

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SEGMENT INFORMATION

9 Months Ended

Nov. 03, 2023

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATION

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

ISG enables the Company’s customers’ digital transformation with solutions that address the fundamental shift to multicloud environments, machine learning, artificial intelligence (“AI”), and data analytics. The Company’s comprehensive storage portfolio includes traditional as well as next-generation storage solutions, including all-flash arrays, scale-out file, object platforms, hyperconverged infrastructure, and software-defined storage. The Company’s server portfolio includes high-performance rack, blade, and tower servers. The Company’s servers are designed with the capability to run high value workloads across customers’ IT environments, including the training, fine-tuning, and operationalization of AI models. The ISG networking portfolio helps the Company’s 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, docking stations, and other electronics), as well as third-party software and peripherals. CSG also includes services offerings, including support and deployment, configuration, and extended warranty services.

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 operating results 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.

Pursuant to the Commercial Framework Agreement (the “CFA”) established between Dell Technologies and VMware in connection with the VMware Spin-off, Dell Technologies acts as a distributor of VMware’s standalone products and services and purchases such products and services for resale to end-user customers (“VMware Resale”). Dell Technologies also integrates VMware’s products and services with Dell Technologies’ offerings and sells them to end users. The results of standalone VMware Resale transactions are reflected in other businesses. The results of integrated offering transactions are reflected within CSG or ISG, depending upon the nature of the underlying offering sold. Subsequent to the close of the Company’s third quarter of Fiscal 2024, Broadcom Inc. completed its acquisition of VMware. See Note 18 of the Notes to the Condensed Consolidated Financial Statements for more information about the impact of the transaction on the Company’s relationship with VMware.

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

	Three Months Ended				Nine Months Ended
	November 3, 2023		October 28, 2022		November 3, 2023		October 28, 2022
	(in millions)
Consolidated net revenue:
Infrastructure Solutions Group	$	8,499	$	9,630	$	24,553	$	28,451
Client Solutions Group	12,276		13,775		37,201		44,852
Reportable segment net revenue	20,775		23,405		61,754		73,303
Other businesses (a)	1,474		1,313		4,345		3,951
Unallocated transactions (b)	2		3		8		8
Total consolidated net revenue	$	22,251	$	24,721	$	66,107	$	77,262
Consolidated operating income:
Infrastructure Solutions Group	$	1,069	$	1,374	$	2,858	$	3,502
Client Solutions Group	925		1,060		2,786		3,153
Reportable segment operating income	1,994		2,434		5,644		6,655
Other businesses (a)	(32)		(57)		(112)		(192)
Unallocated transactions (b)	2		3		7		4
Impact of purchase accounting (c)	(2)		(21)		(10)		(33)
Amortization of intangibles	(205)		(245)		(613)		(732)
Transaction-related expenses (d)	(3)		(8)		(9)		(16)
Stock-based compensation expense (e)	(227)		(235)		(675)		(703)
Other corporate expenses (f)	(41)		(109)		(512)		(401)
Total consolidated operating income	$	1,486	$	1,762	$	3,720	$	4,582

____________________

(a)Other businesses consists of (i) VMware Resale, (ii) Secureworks, and (iii) Virtustream, and do not meet the requirements for a reportable segment, either individually or collectively.

(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 that was completed in September 2016.

(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 severance, impairment charges, facility action, payroll taxes associated with stock-based compensation, and other costs.

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				Nine Months Ended
	November 3, 2023		October 28, 2022		November 3, 2023		October 28, 2022
	(in millions)
Net revenue:
Infrastructure Solutions Group:
Servers and networking	$	4,656	$	5,201	$	12,767	$	15,458
Storage	3,843		4,429		11,786		12,993
Total ISG net revenue	$	8,499	$	9,630	$	24,553	$	28,451
Client Solutions Group:
Commercial	$	9,835	$	10,747	$	30,251	$	34,859
Consumer	2,441		3,028		6,950		9,993
Total CSG net revenue	$	12,276	$	13,775	$	37,201	$	44,852

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SUPPLEMENTAL CONSOLIDATED FINANCIAL INFORMATION

9 Months Ended

Nov. 03, 2023

Condensed Financial Information Disclosure [Abstract]

SUPPLEMENTAL CONSOLIDATED FINANCIAL INFORMATION

SUPPLEMENTAL CONSOLIDATED FINANCIAL INFORMATION

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

	November 3, 2023		February 3, 2023
	(in millions)
Cash, cash equivalents, and restricted cash:
Cash and cash equivalents	$	8,298	$	8,607
Restricted cash - other current assets (a)	145		272
Restricted cash - other non-current assets (a)	5		15
Total cash, cash equivalents, and restricted cash	$	8,448	$	8,894
Inventories:
Production materials	$	1,875	$	3,225
Work-in-process	679		708
Finished goods	827		843
Total inventories	$	3,381	$	4,776
Deferred Costs:
Total deferred costs, current (b)	$	5,494	$	5,459
Property, plant, and equipment, net:
Computer equipment	$	7,534	$	6,899
Land and buildings	2,894		3,059
Machinery and other equipment	3,310		3,134
Total property, plant, and equipment	13,738		13,092
Accumulated depreciation and amortization	(7,516)		(6,883)
Total property, plant, and equipment, net	$	6,222	$	6,209

____________________

(a)    Restricted cash includes cash required to be held in escrow pursuant to DFS securitization arrangements.

(b)    Deferred costs are included in other current assets in the Condensed Consolidated Statements of Financial Position. Amounts classified as long-term deferred costs are included in other non-current assets and are not disclosed above.

Warranty Liability

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

	Three Months Ended				Nine Months Ended
	November 3, 2023		October 28, 2022		November 3, 2023		October 28, 2022
	(in millions)
Warranty liability:
Warranty liability at beginning of period	$	439	$	463	$	467	$	480
Costs accrued for new warranty contracts and changes in estimates for pre-existing warranties (a)	208		243		605		710
Service obligations honored	(203)		(241)		(628)		(725)
Warranty liability at end of period	$	444	$	465	$	444	$	465

____________________

(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 those made for new warranty obligations.

Severance Charges

The Company incurs costs related to employee severance and records a liability for these costs when it is probable that employees will be entitled to termination benefits and the amounts can be reasonably estimated. The liability related to these actions is included in accrued and other current liabilities in the Condensed Consolidated Statements of Financial Position.

The following table presents the activity related to the Company’s severance liability for the periods indicated:

	Three Months Ended				Nine Months Ended
	November 3, 2023		October 28, 2022		November 3, 2023		October 28, 2022
	(in millions)
Severance liability:
Severance liability at beginning of period	$	457	$	88	$	408	$	74
Severance charges	22		97		434		160
Cash paid and other	(277)		(105)		(640)		(154)
Severance liability at end of period	$	202	$	80	$	202	$	80

The following table presents severance charges as included in the Condensed Consolidated Statements of Income for the periods indicated:

	Three Months Ended				Nine Months Ended
	November 3, 2023		October 28, 2022		November 3, 2023		October 28, 2022
	(in millions)
Severance charges:
Cost of net revenue	$	7	$	21	$	54	$	22
Selling, general, and administrative	14		57		365		114
Research and development	1		19		15		24
Total severance charges	$	22	$	97	$	434	$	160

Supply Chain Finance Program

The Company maintains a Supply Chain Finance Program (the “SCF Program”), which enables eligible suppliers of the Company, at the supplier's sole discretion, to sell receivables due from the Company to a third-party financial institution. The Company has no involvement in establishing the terms or conditions of the arrangement between its suppliers and the financial institution and no economic interest in a supplier's decision to sell a receivable. Suppliers may elect to sell varying amounts of their outstanding receivables as part of the SCF Program. The Company does not provide legally secured assets or other forms of guarantees under the arrangement.

The SCF Program does not impact the Company's liquidity as payments for participating supplier invoices are remitted by the Company to the financial institution on the original invoice due date, regardless of whether an individual invoice is sold by the supplier to the financial institution. Further, the Company negotiates payment terms with suppliers regardless of their decision to participate in the SCF Program. Payment terms with such suppliers vary and do not exceed 120 days.

Any amounts due to the financial institution for suppliers participating in the SCF Program are recorded within Accounts Payable on the Company's Condensed Consolidated Statements of Financial Position and associated payments are included in cash flows from operating activities on the Condensed Consolidated Statements of Cash Flows.

As of both November 3, 2023 and February 3, 2023, the Company had $1.0 billion included within Accounts Payable representing invoices due to suppliers confirmed as valid under the SCF Program.

Interest and other, net

The following table presents information regarding interest and other, net for the periods indicated:

	Three Months Ended				Nine Months Ended
	November 3, 2023		October 28, 2022		November 3, 2023		October 28, 2022
	(in millions)
Interest and other, net:
Investment income, primarily interest	$	88	$	21	$	213	$	52
Gain (loss) on investments, net	8		44		(36)		(197)
Interest expense	(371)		(272)		(1,128)		(835)
Foreign exchange	(30)		(72)		(127)		(227)
Legal settlement, net	—		(1,000)		—		(1,000)
Other	(1)		(29)		(43)		(73)
Total interest and other, net	$	(306)	$	(1,308)	$	(1,121)	$	(2,280)

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SUBSEQUENT EVENTS

9 Months Ended

Nov. 03, 2023

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

On November 22, 2023, subsequent to the close of the Company’s third quarter of Fiscal 2024, VMware was acquired by Broadcom Inc. (“Broadcom”). Upon the completion of Broadcom’s acquisition of VMware, Mr. Dell relinquished his direct ownership interest in VMware and his position as Chairman of the Board of VMware, Inc. Mr. Dell’s subsequent ownership interest in Broadcom does not represent control or significant influence to an extent that the transacting parties might be prevented from fully pursuing their own separate interests. As a result, the Company determined that the acquisition terminated the preexisting related party relationship with VMware and that no related party relationship exists with either Broadcom or VMware as of the date of issuance of this report.

Other than the matter identified above, there were no known events occurring after November 3, 2023 and up until the date of issuance of this report that would materially affect the information presented herein.

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Pay vs Performance Disclosure - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Nov. 03, 2023	Oct. 28, 2022	Nov. 03, 2023	Oct. 28, 2022
Pay vs Performance Disclosure
Net income (loss)	$ 1,006	$ 245	$ 2,051	$ 1,828

XML

Insider Trading Arrangements	3 Months Ended
	Nov. 03, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false
Richard J. Rothberg [Member]
Trading Arrangements, by Individual
Arrangement Duration	178 days

XML

OVERVIEW AND BASIS OF PRESENTATION (Policies)

9 Months Ended

Nov. 03, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Consolidated Entities

References in these Notes to the Condensed Consolidated Financial Statements to the “Company” or “Dell Technologies” mean Dell Technologies Inc. individually and together with its consolidated subsidiaries.

Basis of Presentation

Basis of Presentation — The accompanying unaudited Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and accompanying Notes filed with the U.S. Securities and Exchange Commission (“SEC”) in the Company’s Annual Report on Form 10-K for the fiscal year ended February 3, 2023. These Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). In the opinion of management, the accompanying Condensed Consolidated Financial Statements reflect all adjustments of a normal recurring nature considered necessary to fairly state the financial position of the Company as of November 3, 2023 and February 3, 2023, the results of its operations, corresponding comprehensive income, and changes in stockholders’ equity for the three and nine months ended November 3, 2023 and October 28, 2022, and its cash flows for the nine months ended November 3, 2023 and October 28, 2022.

The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in the Condensed Consolidated Financial Statements and the accompanying Notes. Actual results could differ materially from those estimates. The results of the Company’s operations, corresponding comprehensive income, and changes in stockholders’ equity for the three and nine months ended November 3, 2023 and October 28, 2022, and its cash flows for the nine months ended November 3, 2023 and October 28, 2022 are not necessarily indicative of the results to be expected for the full fiscal year or for any other fiscal period.

The Company’s fiscal year is the 52- or 53-week period ending on the Friday nearest January 31. The fiscal year ended February 3, 2023 (“Fiscal 2023”) was a 53-week period while the fiscal year ending February 2, 2024 (“Fiscal 2024”) will be a 52-week period.

Principles of Consolidation

Principles of Consolidation — These Condensed Consolidated Financial Statements include the accounts of Dell Technologies Inc. and its wholly-owned subsidiaries, and the accounts of SecureWorks Corp. (“Secureworks”), which is majority-owned by Dell Technologies. All intercompany transactions have been eliminated.

Variable Interest Entities

Variable Interest Entities — The Company consolidates Variable Interest Entities ("VIEs") where it has been determined that the Company is the primary beneficiary of the applicable entities’ operations. For each VIE, the primary beneficiary is the party that has both the power to direct the activities that most significantly impact the VIE's economic performance and the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to such VIE. In evaluating whether the Company is the primary beneficiary of each entity, the Company evaluates its power to direct the most significant activities of the VIE by considering the purpose and design of each entity and the risks each entity was designed to create and pass through to its respective variable interest holders. The Company also evaluates its economic interests in each of the VIEs. See Note 4 of the Notes to the Condensed Consolidated Financial Statements for more information regarding consolidated VIEs.

Money Market Funds

Money Market Funds — The Company’s investment in money market funds that are classified as cash equivalents hold underlying investments with a weighted average maturity of 90 days or less and are recognized at fair value. The valuations of these securities are based on quoted prices in active markets for identical assets, when available, or pricing models whereby all significant inputs are observable or can be derived from or corroborated by observable market data. The Company reviews security pricing and assesses money market fund liquidity on a quarterly basis. As of November 3, 2023, the Company’s portfolio had no material exposure to money market funds with a fluctuating net asset value.

Marketable Equity and Other Securities

Marketable Equity and Other Securities — The Company’s investments in equity and other securities that are measured at fair value on a recurring basis consist of strategic investments in publicly-traded companies. The valuation of these securities is based on quoted prices in active markets.

Derivative Instruments

Derivative Instruments — The Company’s derivative financial instruments consist primarily of foreign currency forward and purchased option contracts and interest rate swaps. The fair value of the portfolio is determined using valuation models based on market observable inputs, including interest rate curves, forward and spot prices for currencies, and implied volatilities. Credit risk is also factored into the fair value calculation of the Company’s derivative financial instrument portfolio. See Note 7 of the Notes to the Condensed Consolidated Financial Statements for a description of the Company’s derivative financial instrument activities.

As part of its risk management strategy, the Company uses derivative instruments, primarily foreign currency forward and option contracts and interest rate swaps, to hedge certain foreign currency and interest rate exposures, respectively.

The Company’s objective is to offset gains and losses resulting from these exposures with gains and losses on the derivative contracts used to hedge the exposures, thereby reducing volatility of earnings and protecting the fair values of assets and liabilities. The earnings effects of the derivative instruments are presented in the same income statement line items as the earnings effects of the hedged items. For derivatives designated as cash flow hedges, the Company assesses hedge effectiveness both at the onset of the hedge and at regular intervals throughout the life of the instruments. For derivatives designated as fair value hedges, the Company assesses hedge effectiveness on qualifying instruments using the shortcut method whereby the hedges are considered perfectly effective at the onset of the hedge and over the life of the hedging relationship.

Deferred Compensation Plans

Deferred Compensation Plans — The Company offers deferred compensation plans for eligible employees, which allow participants to defer a portion of their compensation. Assets were the same as liabilities associated with the plans at approximately $194 million and $179 million as of November 3, 2023 and February 3, 2023, respectively, and are included in other assets and other liabilities on the Condensed Consolidated Statements of Financial Position. The net impact to the Condensed Consolidated Statements of Income is not material since changes in the fair value of the assets substantially offset changes in the fair value of the liabilities. As such, assets and liabilities associated with these plans have not been included in the recurring fair value table above.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis — Certain assets are measured at fair value on a nonrecurring basis and therefore are not included in the recurring fair value table above. These assets consist primarily of non-financial assets such as goodwill and intangible assets. See Note 8 of the Notes to the Condensed Consolidated Financial Statements for additional information about goodwill and intangible assets.

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FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Nov. 03, 2023

Fair Value Disclosures [Abstract]

Schedule of Hierarchy for Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following table presents the Company’s hierarchy for its assets and liabilities measured at fair value on a recurring basis as of the dates indicated:

	November 3, 2023								February 3, 2023
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs				Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	(in millions)
Assets:
Money market funds	$	4,176	$	—	$	—	$	4,176	$	4,301	$	—	$	—	$	4,301
Marketable equity and other securities	5		—		—		5		33		—		—		33
Derivative instruments	—		215		—		215		—		295		—		295
Total assets	$	4,181	$	215	$	—	$	4,396	$	4,334	$	295	$	—	$	4,629
Liabilities:
Derivative instruments	$	—	$	76	$	—	$	76	$	—	$	460	$	—	$	460
Total liabilities	$	—	$	76	$	—	$	76	$	—	$	460	$	—	$	460

Schedule of Carrying Value and Estimated Fair Value of Outstanding Debt

Carrying Value and Estimated Fair Value of Outstanding Debt — The following table presents the carrying value and estimated fair value of the Company’s outstanding debt as described in Note 6 of the Notes to the Condensed Consolidated Financial Statements, including the current portion, as of the dates indicated:

	November 3, 2023				February 3, 2023
	Carrying Value		Fair Value		Carrying Value		Fair Value
	(in billions)
Senior Notes	$	16.0	$	15.6	$	18.1	$	18.2
Legacy Notes and Debentures	$	0.9	$	0.9	$	0.9	$	1.0
DFS Debt	$	9.6	$	9.1	$	10.3	$	9.9

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INVESTMENTS (Tables)

9 Months Ended

Nov. 03, 2023

Investments, Debt and Equity Securities [Abstract]

Schedule of Carrying Value of Equity and Other Securities

The following table presents the cost, cumulative unrealized gains, cumulative unrealized losses, and carrying value of the Company's strategic investments in marketable and non-marketable equity securities as of the dates indicated:

	November 3, 2023								February 3, 2023
	Cost		Unrealized Gain		Unrealized Loss		Carrying Value		Cost		Unrealized Gain		Unrealized Loss		Carrying Value
	(in millions)
Marketable	$	12	$	19	$	(26)	$	5	$	56	$	17	$	(40)	$	33
Non-marketable	729		666		(149)		1,246		714		651		(100)		1,265
Total equity and other securities	$	741	$	685	$	(175)	$	1,251	$	770	$	668	$	(140)	$	1,298

Schedule of Gains and Losses on Equity and Other Securities

The following table presents unrealized gains and losses on marketable and non-marketable equity and other securities for the periods indicated:

	Three Months Ended				Nine Months Ended
	November 3, 2023		October 28, 2022		November 3, 2023		October 28, 2022
	(in millions)
Marketable securities:
Unrealized gain	$	—	$	50	$	1	$	57
Unrealized loss	—		(10)		(23)		(29)
Net unrealized gain (loss)	—		40		(22)		28
Non-marketable securities:
Unrealized gain	6		—		15		72
Unrealized loss	(3)		(13)		(49)		(333)
Net unrealized gain (loss) (a) (b)	3		(13)		(34)		(261)
Net unrealized gain (loss) on equity and other securities	$	3	$	27	$	(56)	$	(233)

____________________

(a)    For the three months ended November 3, 2023, net gains on non-marketable securities are due to upward adjustments for observable price changes offset by losses primarily attributable to impairments.

(b)    For the nine months ended November 3, 2023 and the three and nine months ended October 28, 2022, net unrealized losses on non-marketable securities were primarily attributable to impairments. For the three and nine months ended October 28, 2022, the impairments on equity and other securities were generally in line with extended public equity market declines.

Schedule of Fixed Income Debt Securities

The following table summarizes the Company’s debt securities as of the dates indicated:

	November 3, 2023								February 3, 2023
	Cost		Unrealized Gain		Unrealized Loss		Carrying Value		Cost		Unrealized Gain		Unrealized Loss		Carrying Value
	(in millions)
Fixed income debt securities	$	343	$	59	$	(92)	$	310	$	348	$	65	$	(95)	$	318

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FINANCIAL SERVICES (Tables)

9 Months Ended

Nov. 03, 2023

Receivables [Abstract]

Schedule of 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:

	November 3, 2023						February 3, 2023
	Revolving		Fixed-term		Total		Revolving		Fixed-term		Total
	(in millions)
Financing receivables, net:
Customer receivables, gross (a) (b)	$	172	$	10,144	$	10,316	$	685	$	10,293	$	10,978
Allowances for losses	(9)		(144)		(153)		(88)		(113)		(201)
Customer receivables, net	163		10,000		10,163		597		10,180		10,777
Residual interest	—		150		150		—		142		142
Financing receivables, net	$	163	$	10,150	$	10,313	$	597	$	10,322	$	10,919
Short-term	$	163	$	4,377	$	4,540	$	597	$	4,684	$	5,281
Long-term	$	—	$	5,773	$	5,773	$	—	$	5,638	$	5,638

____________________

(a)    Customer receivables, gross include amounts due from customers under revolving loans, fixed-term loans, fixed-term leases, and accrued interest.

(b)    The decrease in revolving customer financing receivables is primarily attributable to the sale of the U.S. consumer revolving customer receivables portfolio described in Note 1 of the Notes to the Condensed Consolidated Financial Statements.

Schedule of Changes in Allowance for Financing Receivable Losses

The following table presents the changes in allowance for financing receivable losses for the periods indicated:

	Three Months Ended
	November 3, 2023						October 28, 2022
	Revolving		Fixed-term		Total		Revolving		Fixed-term		Total
	(in millions)
Allowance for financing receivable losses:
Balances at beginning of period	$	9	$	140	$	149	$	91	$	92	$	183
Charge-offs, net of recoveries	(4)		(3)		(7)		(12)		(1)		(13)
Provision charged to income statement	4		7		11		8		8		16
Balances at end of period	$	9	$	144	$	153	$	87	$	99	$	186

	Nine Months Ended
	November 3, 2023						October 28, 2022
	Revolving		Fixed-term		Total		Revolving		Fixed-term		Total
	(in millions)
Allowance for financing receivable losses:
Balances at beginning of period	$	88	$	113	$	201	$	102	$	87	$	189
Charge-offs, net of recoveries	(37)		(5)		(42)		(37)		(5)		(42)
Provision charged to income statement	32		36		68		22		17		39
Other (a)	(74)		—		(74)		—		—		—
Balances at end of period	$	9	$	144	$	153	$	87	$	99	$	186

____________________

(a)    Other represents the derecognition of the allowance for financing receivable losses related to the sale of the U.S. consumer revolving customer receivables portfolio described in Note 1 of the Notes to the Condensed Consolidated Financial Statements.

Schedule of Aging of Customer's 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:

	November 3, 2023								February 3, 2023
	Current		Past Due 1 — 90 Days		Past Due >90 Days		Total		Current		Past Due 1 — 90 Days		Past Due >90 Days		Total
	(in millions)
Revolving — DPA	$	5	$	—	$	—	$	5	$	457	$	34	$	17	$	508
Revolving — DBC	146		17		4		167		154		19		4		177
Fixed-term — Consumer and Commercial	9,140		868		136		10,144		9,309		927		57		10,293
Total customer receivables, gross	$	9,291	$	885	$	140	$	10,316	$	9,920	$	980	$	78	$	10,978

Schedule of Customer Receivables, Gross, Including Accrued Interest, by Credit Quality Indicator, Segregated by Class

The following tables present customer receivables, gross, including accrued interest, by credit quality indicator, segregated by class, as of the dates indicated:

	November 3, 2023
	Fixed-term — Consumer and Commercial
	Fiscal Year of Origination
	2024		2023		2022		2021		2020		Years Prior		Revolving — DPA		Revolving — DBC		Total
	(in millions)
Higher	$	2,494	$	2,195	$	1,076	$	499	$	127	$	3	$	1	$	42	$	6,437
Mid	849		1,047		378		159		40		2		2		49		2,526
Lower	454		516		210		69		25		1		2		76		1,353
Total	$	3,797	$	3,758	$	1,664	$	727	$	192	$	6	$	5	$	167	$	10,316

	February 3, 2023
	Fixed-term — Consumer and Commercial
	Fiscal Year of Origination
	2023		2022		2021		2020		2019		Years Prior		Revolving — DPA		Revolving — DBC		Total
	(in millions)
Higher	$	3,210	$	1,805	$	914	$	343	$	37	$	1	$	123	$	44	$	6,477
Mid	1,242		631		362		119		17		1		136		54		2,562
Lower	1,017		364		157		65		7		1		249		79		1,939
Total	$	5,469	$	2,800	$	1,433	$	527	$	61	$	3	$	508	$	177	$	10,978

Schedule of Net Revenue, Cost of Net Revenue, and Gross Margin Recognized

The following table presents 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				Nine Months Ended
	November 3, 2023		October 28, 2022		November 3, 2023		October 28, 2022
	(in millions)
Net revenue — products	$	227	$	207	$	766	$	646
Cost of net revenue — products	176		164		564		532
Gross margin — products	$	51	$	43	$	202	$	114

Schedule of 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 Statement of Financial Position as of the date indicated:

	November 3, 2023
	(in millions)
Fiscal 2024 (remaining three months)	$	809
Fiscal 2025	2,221
Fiscal 2026	1,712
Fiscal 2027	971
Fiscal 2028 and beyond	388
Total undiscounted cash flows	6,101
Fixed-term loans	4,954
Revolving loans	172
Less: Unearned income	(911)
Total customer receivables, gross	$	10,316

Schedule of Components of Operating Lease Portfolio Included in Property, Plant, and Equipment, Net

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:

	November 3, 2023		February 3, 2023
	(in millions)
Equipment under operating lease, gross	$	3,855	$	3,725
Less: Accumulated depreciation	(1,721)		(1,517)
Equipment under operating lease, net	$	2,134	$	2,208

Schedule of Operating Lease Income Related to Lease Payments and Depreciation 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				Nine Months Ended
	November 3, 2023		October 28, 2022		November 3, 2023		October 28, 2022
	(in millions)
Income related to lease payments	$	341	$	297	$	992	$	782
Depreciation expense	$	234	$	212	$	703	$	571

Schedule of Future Payments to be Received in Operating Lease Contracts

The following table presents the future payments to be received by the Company in operating lease contracts as of the date indicated:

	November 3, 2023
	(in millions)
Fiscal 2024 (remaining three months)	$	330
Fiscal 2025	974
Fiscal 2026	628
Fiscal 2027	272
Fiscal 2028 and beyond	113
Total	$	2,317

Schedule of DFS Debt

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:

	November 3, 2023		February 3, 2023
DFS debt	(in millions)
DFS U.S. debt:
Asset-based financing and securitization facilities	$	2,443	$	3,987
Fixed-term securitization offerings	3,715		2,679
Other	31		76
Total DFS U.S. debt	6,189		6,742
DFS international debt:
Securitization facility	749		790
Other borrowings	839		871
Note payable	250		250
Dell Bank senior unsecured eurobonds	1,593		1,637
Total DFS international debt	3,431		3,548
Total DFS debt	$	9,620	$	10,290
Total short-term DFS debt	$	5,374	$	5,400
Total long-term DFS debt	$	4,246	$	4,890

The following table summarizes the Company’s outstanding debt as of the dates indicated:

	November 3, 2023		February 3, 2023
	(in millions)
Senior Notes:
5.45% due June 2023	$	—	$	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	3,500		4,500
4.90% due October 2026	1,750		1,750
6.10% due July 2027	500		500
5.25% due February 2028	1,000		1,000
5.30% due October 2029	1,750		1,750
6.20% due July 2030	750		750
5.75% due February 2033	1,000		1,000
8.10% due July 2036	1,000		1,000
3.38% due December 2041	962		1,000
8.35% due July 2046	800		800
3.45% due December 2051	1,095		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 4)	9,620		10,290
Other	181		325
Total debt, principal amount	$	26,860	$	29,867
Unamortized discount, net of unamortized premium	(117)		(133)
Debt issuance costs	(126)		(146)
Total debt, carrying value	$	26,617	$	29,588
Total short-term debt, carrying value	$	6,498	$	6,573
Total long-term debt, carrying value	$	20,119	$	23,015

Schedule of Assets and Liabilities 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:

	November 3, 2023		February 3, 2023
	(in millions)
Assets held by consolidated VIEs
Other current assets	$	146	$	274
Financing receivables, net of allowance
Short-term	$	3,059	$	3,702
Long-term	$	3,261	$	3,295
Property, plant, and equipment, net	$	1,097	$	1,164
Liabilities held by consolidated VIEs
Debt, net of unamortized debt issuance costs
Short-term	$	4,138	$	4,761
Long-term	$	2,753	$	2,685

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LEASES (Tables)

9 Months Ended

Nov. 03, 2023

Leases [Abstract]

Schedule of Components of Lease Expense and Supplemental Information

The following table presents components of lease costs included in the Condensed Consolidated Statements of Income for the periods indicated:

	Three Months Ended				Nine Months Ended
	November 3, 2023		October 28, 2022		November 3, 2023		October 28, 2022
	(in millions)
Operating lease costs	$	79	$	67	$	221	$	207
Variable costs	19		25		62		73
Total lease costs	$	98	$	92	$	283	$	280

The following table presents supplemental information related to operating leases included in the Condensed Consolidated Statements of Financial Position as of the dates indicated:

	Classification	November 3, 2023			February 3, 2023
		(in millions, except for term and discount rate)
Operating lease right-of-use assets	Other non-current assets	$	711		$	725
Current operating lease liabilities	Accrued and other current liabilities	$	246		$	260
Non-current operating lease liabilities	Other non-current liabilities	588			630
Total operating lease liabilities		$	834		$	890
Weighted-average remaining lease term (in years)		4.49			4.95
Weighted-average discount rate		4.71		%	3.48		%

The following table presents supplemental cash flow information related to leases for the periods indicated:

	Nine Months Ended
	November 3, 2023		October 28, 2022
	(in millions)
Cash paid for amounts included in the measurement of lease liabilities — operating cash outflows from operating leases	$	220	$	230
Right-of-use assets obtained in exchange for new operating lease liabilities	$	205	$	134

Schedule of Maturity of Operating Lease Liabilities

The following table presents the future maturity of the Company’s operating lease liabilities under non-cancelable leases and reconciles the undiscounted cash flows for these leases to the lease liability recognized on the Condensed Consolidated Statements of Financial Position as of the date indicated:

	November 3, 2023
	(in millions)
Fiscal 2024 (remaining three months)	$	63
Fiscal 2025	240
Fiscal 2026	194
Fiscal 2027	157
Fiscal 2028	113
Thereafter	145
Total lease payments	912
Less: Imputed interest	(78)
Total	$	834
Current operating lease liabilities	$	246
Non-current operating lease liabilities	$	588

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DEBT (Tables)

9 Months Ended

Nov. 03, 2023

Debt Disclosure [Abstract]

Schedule of Outstanding Debt

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:

	November 3, 2023		February 3, 2023
DFS debt	(in millions)
DFS U.S. debt:
Asset-based financing and securitization facilities	$	2,443	$	3,987
Fixed-term securitization offerings	3,715		2,679
Other	31		76
Total DFS U.S. debt	6,189		6,742
DFS international debt:
Securitization facility	749		790
Other borrowings	839		871
Note payable	250		250
Dell Bank senior unsecured eurobonds	1,593		1,637
Total DFS international debt	3,431		3,548
Total DFS debt	$	9,620	$	10,290
Total short-term DFS debt	$	5,374	$	5,400
Total long-term DFS debt	$	4,246	$	4,890

The following table summarizes the Company’s outstanding debt as of the dates indicated:

	November 3, 2023		February 3, 2023
	(in millions)
Senior Notes:
5.45% due June 2023	$	—	$	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	3,500		4,500
4.90% due October 2026	1,750		1,750
6.10% due July 2027	500		500
5.25% due February 2028	1,000		1,000
5.30% due October 2029	1,750		1,750
6.20% due July 2030	750		750
5.75% due February 2033	1,000		1,000
8.10% due July 2036	1,000		1,000
3.38% due December 2041	962		1,000
8.35% due July 2046	800		800
3.45% due December 2051	1,095		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 4)	9,620		10,290
Other	181		325
Total debt, principal amount	$	26,860	$	29,867
Unamortized discount, net of unamortized premium	(117)		(133)
Debt issuance costs	(126)		(146)
Total debt, carrying value	$	26,617	$	29,588
Total short-term debt, carrying value	$	6,498	$	6,573
Total long-term debt, carrying value	$	20,119	$	23,015

Schedule of Aggregate Future Maturities

The following table presents the aggregate future maturities of the Company’s debt as of November 3, 2023 for the periods indicated:

	Maturities by Fiscal Year
	2024 (remaining three months)		2025		2026		2027		2028		Thereafter		Total
	(in millions)
Senior Notes	$	—	$	1,000	$	1,000	$	5,250	$	500	$	8,357	$	16,107
Legacy Notes and Debentures	—		—		—		—		—		952		952
DFS Debt	1,479		4,807		1,833		884		610		7		9,620
Other	13		124		29		8		6		1		181
Total maturities, principal amount	1,492		5,931		2,862		6,142		1,116		9,317		26,860
Associated carrying value adjustments	(2)		(7)		(6)		(33)		(8)		(187)		(243)
Total maturities, carrying value amount	$	1,490	$	5,924	$	2,856	$	6,109	$	1,108	$	9,130	$	26,617

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DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)

9 Months Ended

Nov. 03, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Notional Amounts of Outstanding Derivative Instruments

The following table presents the notional amounts of outstanding derivative instruments as of the dates indicated:

	November 3, 2023		February 3, 2023
	(in millions)
Foreign exchange contracts:
Designated as cash flow hedging instruments	$	7,317	$	7,746
Non-designated as hedging instruments	6,290		6,833
Total	$	13,607	$	14,579
Interest rate contracts:
Designated as fair value hedging instruments	$	—	$	1,000
Non-designated as hedging instruments	6,107		7,214
Total	$	6,107	$	8,214

Schedule of Derivative Instruments Designated as Cash Flow Hedging Instruments

The following table presents the effect of derivative instruments designated as cash flow hedging instruments on the Condensed Consolidated Statements of Financial Position and the Condensed Consolidated Statements of Income for the periods indicated:

Derivatives in Cash Flow Hedging Relationships	Gain (Loss) Recognized in Accumulated OCI, Net of Tax, on Derivatives		Location of Gain (Loss) Reclassified from Accumulated OCI into Income	Gain (Loss) Reclassified from Accumulated OCI into Income
	(in millions)			(in millions)
For the three months ended November 3, 2023:
			Total net revenue	$	83
Foreign exchange contracts	$	171	Total cost of net revenue	1
Interest rate contracts	—		Interest and other, net	—
Total	$	171	Total	$	84
For the three months ended October 28, 2022:
			Total net revenue	$	324
Foreign exchange contracts	$	306	Total cost of net revenue	—
Interest rate contracts	—		Interest and other, net	—
Total	$	306	Total	$	324

Derivatives in Cash Flow Hedging Relationships	Gain (Loss) Recognized in Accumulated OCI, Net of Tax, on Derivatives		Location of Gain (Loss) Reclassified from Accumulated OCI into Income	Gain (Loss) Reclassified from Accumulated OCI into Income
	(in millions)			(in millions)
For the nine months ended November 3, 2023:
			Total net revenue	$	(68)
Foreign exchange contracts	$	230	Total cost of net revenue	(7)
Interest rate contracts	—		Interest and other, net	—
Total	$	230	Total	$	(75)
For the nine months ended October 28, 2022:
			Total net revenue	$	754
Foreign exchange contracts	$	844	Total cost of net revenue	(28)
Interest rate contracts	—		Interest and other, net	—
Total	$	844	Total	$	726

Schedule of Derivative Instruments Not Designated as Hedging Instruments

The following table presents the effect of derivative instruments not designated as hedging instruments on the Condensed Consolidated Statements of Income for the periods indicated:

	Three Months Ended				Nine Months Ended
	November 3, 2023		October 28, 2022		November 3, 2023		October 28, 2022		Location of Gain (Loss) Recognized
	(in millions)
Foreign exchange contracts	$	(114)	$	71	$	(97)	$	(234)	Interest and other, net
Interest rate contracts	2		46		5		64		Interest and other, net
Total	$	(112)	$	117	$	(92)	$	(170)

Schedule of Fair Value of Derivative Instruments

The following tables present the fair value of those derivative instruments presented on a gross basis as of the dates indicated:

	November 3, 2023
	Other Current Assets		Other Non-Current Assets		Other Current Liabilities		Other Non-Current Liabilities		Total Fair Value
	(in millions)
Derivatives designated as hedging instruments:
Foreign exchange contracts in an asset position	$	124	$	—	$	28	$	—	$	152
Foreign exchange contracts in a liability position	(8)		—		(5)		—		(13)
Interest rate contracts in an asset position	—		—		—		—		—
Interest rate contracts in a liability position	—		—		—		—		—
Net asset (liability)	116		—		23		—		139
Derivatives not designated as hedging instruments:
Foreign exchange contracts in an asset position	213		—		86		—		299
Foreign exchange contracts in a liability position	(177)		—		(153)		—		(330)
Interest rate contracts in an asset position	6		57		—		—		63
Interest rate contracts in a liability position	—		—		(15)		(17)		(32)
Net asset (liability)	42		57		(82)		(17)		—
Total derivatives at fair value	$	158	$	57	$	(59)	$	(17)	$	139
	February 3, 2023
	Other Current Assets		Other Non-Current Assets		Other Current Liabilities		Other Non-Current Liabilities		Total Fair Value
	(in millions)
Derivatives designated as hedging instruments:
Foreign exchange contracts in an asset position	$	7	$	—	$	30	$	—	$	37
Foreign exchange contracts in a liability position	(21)		—		(142)		—		(163)
Interest rate contracts in an asset position	—		—		—		—		—
Interest rate contracts in a liability position	—		—		—		(6)		(6)
Net asset (liability)	(14)		—		(112)		(6)		(132)
Derivatives not designated as hedging instruments:
Foreign exchange contracts in an asset position	282		1		368		—		651
Foreign exchange contracts in a liability position	(121)		—		(614)		(1)		(736)
Interest rate contracts in an asset position	14		133		—		—		147
Interest rate contracts in a liability position	—		—		—		(95)		(95)
Net asset (liability)	175		134		(246)		(96)		(33)
Total derivatives at fair value	$	161	$	134	$	(358)	$	(102)	$	(165)

Schedule of Gross Amounts of the Company’s Derivative Instruments

The following tables present the gross amounts of the Company’s derivative instruments, amounts offset due to master netting agreements with the Company’s counterparties, and the net amounts recognized in the Condensed Consolidated Statements of Financial Position as of the dates indicated:

	November 3, 2023
	Gross Amounts of Recognized Assets/ (Liabilities)		Gross Amounts Offset in the Statement of Financial Position		Net Amounts of Assets/(Liabilities) Presented in the Statement of Financial Position		Gross Amounts not Offset in the Statement of Financial Position				Net Amount of Assets/ (Liabilities) Recognized in the Statement of Financial Position
							Financial Instruments		Cash Collateral Received or Pledged
	(in millions)
Derivative instruments:
Financial assets	$	514	$	(299)	$	215	$	—	$	(21)	$	194
Financial liabilities	(375)		299		(76)		—		17		(59)
Total derivative instruments	$	139	$	—	$	139	$	—	$	(4)	$	135
	February 3, 2023
	Gross Amounts of Recognized Assets/ (Liabilities)		Gross Amounts Offset in the Statement of Financial Position		Net Amounts of Assets/(Liabilities) Presented in the Statement of Financial Position		Gross Amounts not Offset in the Statement of Financial Position				Net Amount of Assets/ (Liabilities) Recognized in the Statement of Financial Position
							Financial Instruments		Cash Collateral Received or Pledged
	(in millions)
Derivative instruments:
Financial assets	$	835	$	(540)	$	295	$	—	$	—	$	295
Financial liabilities	(1,000)		540		(460)		—		25		(435)
Total derivative instruments	$	(165)	$	—	$	(165)	$	—	$	25	$	(140)

Schedule of Amounts Offset Due to Master Netting Agreements

The following tables present the gross amounts of the Company’s derivative instruments, amounts offset due to master netting agreements with the Company’s counterparties, and the net amounts recognized in the Condensed Consolidated Statements of Financial Position as of the dates indicated:

	November 3, 2023
	Gross Amounts of Recognized Assets/ (Liabilities)		Gross Amounts Offset in the Statement of Financial Position		Net Amounts of Assets/(Liabilities) Presented in the Statement of Financial Position		Gross Amounts not Offset in the Statement of Financial Position				Net Amount of Assets/ (Liabilities) Recognized in the Statement of Financial Position
							Financial Instruments		Cash Collateral Received or Pledged
	(in millions)
Derivative instruments:
Financial assets	$	514	$	(299)	$	215	$	—	$	(21)	$	194
Financial liabilities	(375)		299		(76)		—		17		(59)
Total derivative instruments	$	139	$	—	$	139	$	—	$	(4)	$	135
	February 3, 2023
	Gross Amounts of Recognized Assets/ (Liabilities)		Gross Amounts Offset in the Statement of Financial Position		Net Amounts of Assets/(Liabilities) Presented in the Statement of Financial Position		Gross Amounts not Offset in the Statement of Financial Position				Net Amount of Assets/ (Liabilities) Recognized in the Statement of Financial Position
							Financial Instruments		Cash Collateral Received or Pledged
	(in millions)
Derivative instruments:
Financial assets	$	835	$	(540)	$	295	$	—	$	—	$	295
Financial liabilities	(1,000)		540		(460)		—		25		(435)
Total derivative instruments	$	(165)	$	—	$	(165)	$	—	$	25	$	(140)

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GOODWILL AND INTANGIBLE ASSETS (Tables)

9 Months Ended

Nov. 03, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

The following table presents goodwill allocated to the Company’s reportable segments and changes in the carrying amount of goodwill as of the dates indicated:

	Infrastructure Solutions Group		Client Solutions Group		Other Businesses		Total
	(in millions)
Balances as of February 3, 2023	$	15,017	$	4,232	$	427	$	19,676
Goodwill acquired (a)	82		—		—		82
Impact of foreign currency translation and other	(142)		—		—		(142)
Balances as of November 3, 2023	$	14,957	$	4,232	$	427	$	19,616

____________________

(a)    Goodwill acquired represents goodwill recognized in connection with the Company’s acquisition of Moogsoft Inc. during the three months ended November 3, 2023.

Schedule of Finite-Lived Intangible Assets

The following table presents the Company’s intangible assets as of the dates indicated:

	November 3, 2023						February 3, 2023
	Gross		Accumulated Amortization		Net		Gross		Accumulated Amortization		Net
	(in millions)
Customer relationships	$	16,968	$	(14,817)	$	2,151	$	16,956	$	(14,474)	$	2,482
Developed technology	9,506		(8,897)		609		9,466		(8,660)		806
Trade names	875		(813)		62		875		(780)		95
Definite-lived intangible assets	27,349		(24,527)		2,822		27,297		(23,914)		3,383
Indefinite-lived trade names	3,085		—		3,085		3,085		—		3,085
Total intangible assets	$	30,434	$	(24,527)	$	5,907	$	30,382	$	(23,914)	$	6,468

Schedule of Indefinite-Lived Intangible Assets

The following table presents the Company’s intangible assets as of the dates indicated:

	November 3, 2023						February 3, 2023
	Gross		Accumulated Amortization		Net		Gross		Accumulated Amortization		Net
	(in millions)
Customer relationships	$	16,968	$	(14,817)	$	2,151	$	16,956	$	(14,474)	$	2,482
Developed technology	9,506		(8,897)		609		9,466		(8,660)		806
Trade names	875		(813)		62		875		(780)		95
Definite-lived intangible assets	27,349		(24,527)		2,822		27,297		(23,914)		3,383
Indefinite-lived trade names	3,085		—		3,085		3,085		—		3,085
Total intangible assets	$	30,434	$	(24,527)	$	5,907	$	30,382	$	(23,914)	$	6,468

Schedule of Estimated Future Annual Pre-Tax Amortization Expense

The following table presents the estimated future annual pre-tax amortization expense of definite-lived intangible assets as of the date indicated:

	November 3, 2023
	(in millions)
Fiscal 2024 (remaining three months)	$	205
Fiscal 2025	654
Fiscal 2026	495
Fiscal 2027	386
Fiscal 2028	230
Thereafter	852
Total	$	2,822

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DEFERRED REVENUE (Tables)

9 Months Ended

Nov. 03, 2023

Revenue from Contract with Customer [Abstract]

Schedule of Changes in Deferred Revenue

The following table presents the changes in the Company’s deferred revenue for the periods indicated:

	Three Months Ended				Nine Months Ended
	November 3, 2023		October 28, 2022		November 3, 2023		October 28, 2022
	(in millions)
Deferred revenue:
Deferred revenue at beginning of period	$	30,312	$	28,025	$	30,286	$	27,573
Revenue deferrals	4,492		4,128		15,236		14,675
Revenue recognized	(5,766)		(5,064)		(16,484)		(14,994)
Other (a)	15		—		15		(165)
Deferred revenue at end of period	$	29,053	$	27,089	$	29,053	$	27,089
Short-term deferred revenue	$	15,206	$	14,106	$	15,206	$	14,106
Long-term deferred revenue	$	13,847	$	12,983	$	13,847	$	12,983

____________________

(a)    For the nine months ended October 28, 2022, Other represents the reclassification of deferred revenue to accrued and other liabilities.

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ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)

9 Months Ended

Nov. 03, 2023

Equity [Abstract]

Schedule of Changes in Accumulated Other Comprehensive Income (Loss), Net of Tax

The following table presents changes in accumulated other comprehensive income (loss), net of tax, by the following components as of the dates indicated:

	Foreign Currency Translation Adjustments		Cash Flow Hedges		Pension and Other Postretirement Plans		Accumulated Other Comprehensive Income (Loss)
	(in millions)
Balances as of February 3, 2023	$	(747)	$	(222)	$	(32)	$	(1,001)
Other comprehensive income (loss) before reclassifications	(130)		230		3		103
Amounts reclassified from accumulated other comprehensive income (loss)	—		75		—		75
Total change for the period	(130)		305		3		178
Balances as of November 3, 2023	$	(877)	$	83	$	(29)	$	(823)

Schedule of Reclassifications Out of Accumulated Other Comprehensive Income (Loss), Net of Tax

The following table presents reclassifications out of accumulated other comprehensive income (loss), net of tax, to net income for the periods indicated:

	Three Months Ended
	November 3, 2023						October 28, 2022
	Cash Flow Hedges		Pensions		Total		Cash Flow Hedges		Pensions		Total
	(in millions)
Total reclassifications, net of tax:
Net revenue	$	83	$	—	$	83	$	324	$	—	$	324
Cost of net revenue	1		—		1		—		—		—
Operating expenses	—		—		—		—		(1)		(1)
Total reclassifications, net of tax	$	84	$	—	$	84	$	324	$	(1)	$	323

	Nine Months Ended
	November 3, 2023						October 28, 2022
	Cash Flow Hedges		Pensions		Total		Cash Flow Hedges		Pensions		Total
	(in millions)
Total reclassifications, net of tax:
Net revenue	$	(68)	$	—	$	(68)	$	754	$	—	$	754
Cost of net revenue	(7)		—		(7)		(28)		—		(28)
Operating expenses	—		—		—		—		(1)		(1)
Total reclassifications, net of tax	$	(75)	$	—	$	(75)	$	726	$	(1)	$	725

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CAPITALIZATION (Tables)

9 Months Ended

Nov. 03, 2023

Equity [Abstract]

Schedule of Stock by Class

The following table presents the Company’s authorized, issued, and outstanding common stock as of the dates indicated:

	Authorized	Issued	Outstanding
	(in millions)
Common stock as of November 3, 2023
Class A	600	379	379
Class B	200	91	91
Class C	7,900	349	245
Class D	100	—	—
	8,800	819	715
Common stock as of February 3, 2023
Class A	600	379	379
Class B	200	95	95
Class C	7,900	324	242
Class D	100	—	—
	8,800	798	716

Schedule of Dividends Declared

The Company paid the following dividends during the periods presented:

Three Months Ended	Declaration Date	Record Date	Payment Date	Dividend per Share		Amount (in millions)
Fiscal 2024
May 5, 2023	March 2, 2023	April 25, 2023	May 5, 2023	$	0.37	$	270
August 4, 2023	June 16, 2023	July 25, 2023	August 4, 2023	$	0.37	$	268
November 3, 2023	September 28, 2023	October 24, 2023	November 3, 2023	$	0.37	$	266
Fiscal 2023
April 29, 2022	February 24, 2022	April 20, 2022	April 29, 2022	$	0.33	$	248
July 29, 2022	June 7, 2022	July 20, 2022	July 29, 2022	$	0.33	$	242
October 28, 2022	September 6, 2022	October 19, 2022	October 28, 2022	$	0.33	$	238

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EARNINGS PER SHARE (Tables)

9 Months Ended

Nov. 03, 2023

Earnings Per Share [Abstract]

Schedule of Computation of Basic and Diluted Earnings Per Share

The following table presents basic and diluted earnings per share for the periods indicated:

	Three Months Ended				Nine Months Ended
	November 3, 2023		October 28, 2022		November 3, 2023		October 28, 2022
Earnings per share attributable to Dell Technologies Inc.
Dell Technologies Common Stock — Basic	$	1.39	$	0.34	$	2.83	$	2.47
Dell Technologies Common Stock — Diluted	$	1.36	$	0.33	$	2.78	$	2.41

The following table presents the computation of basic and diluted earnings per share for the periods indicated:

	Three Months Ended				Nine Months Ended
	November 3, 2023		October 28, 2022		November 3, 2023		October 28, 2022
	(in millions)
Numerator: Dell Technologies Common Stock
Net income attributable to Dell Technologies Inc. - basic and diluted	$	1,006	$	245	$	2,051	$	1,828
Denominator: Dell Technologies Common Stock weighted-average shares outstanding
Weighted-average shares outstanding — basic	722		728		724		740
Dilutive effect of equity awards	18		15		14		19
Weighted-average shares outstanding — diluted	740		743		738		759
Weighted-average shares outstanding — antidilutive	—		18		5		11

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RELATED PARTY TRANSACTIONS (Tables)

9 Months Ended

Nov. 03, 2023

Related Party Transactions [Abstract]

Schedule of Related Party Transactions

The following table presents information about the impact of Dell Technologies’ related party transactions with VMware on the Condensed Consolidated Statements of Income for the periods indicated:

		Three Months Ended				Nine Months Ended
	Classification	November 3, 2023		October 28, 2022		November 3, 2023		October 28, 2022
		(in millions)
Sales and leases of products to VMware	Net revenue - products	$	16	$	49	$	94	$	130
Purchase of VMware products for resale	Cost of net revenue - products	$	379	$	281	$	970	$	962
Purchase of VMware services for resale	Cost of net revenue - services	$	884	$	733	$	2,640	$	2,204

The following table presents information about the impact of Dell Technologies’ related party transactions with VMware on the Condensed Consolidated Statements of Financial Position as of the dates indicated:

	Classification	November 3, 2023		February 3, 2023
		(in millions)
Deferred costs related to VMware products and services for resale	Other current assets	$	2,926	$	3,000
Deferred costs related to VMware products and services for resale	Other non-current assets	$	2,201	$	2,537

	November 3, 2023		February 3, 2023
	(in millions)
Due from related party, net, current (a)	$	386	$	378
Due from related party, net, non-current (b)	$	239	$	440
Due to related party, current (c)	$	1,246	$	2,067
Due to related party, non-current (d)	$	11	$	—

____________________

(a)     Amounts due from related party, net, current consisted of amounts due from VMware, inclusive of current net tax receivables from VMware under the Tax Agreements described below. Amounts, excluding tax, are generally settled in cash within 60 days of each quarter-end.

(b)     Amounts due from related party, net, non-current consisted of the non-current portion of net receivables from VMware under the Tax Agreements.

(c)     Amounts due to related party, current included amounts due to VMware, which are generally settled in cash within 60 days of each quarter-end.

(d)     Amounts due to related party, non-current are included in other non-current liabilities.

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SEGMENT INFORMATION (Tables)

9 Months Ended

Nov. 03, 2023

Segment Reporting [Abstract]

Schedule of Reconciliation of Revenue from Segments to Consolidated Net Revenue

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

	Three Months Ended				Nine Months Ended
	November 3, 2023		October 28, 2022		November 3, 2023		October 28, 2022
	(in millions)
Consolidated net revenue:
Infrastructure Solutions Group	$	8,499	$	9,630	$	24,553	$	28,451
Client Solutions Group	12,276		13,775		37,201		44,852
Reportable segment net revenue	20,775		23,405		61,754		73,303
Other businesses (a)	1,474		1,313		4,345		3,951
Unallocated transactions (b)	2		3		8		8
Total consolidated net revenue	$	22,251	$	24,721	$	66,107	$	77,262
Consolidated operating income:
Infrastructure Solutions Group	$	1,069	$	1,374	$	2,858	$	3,502
Client Solutions Group	925		1,060		2,786		3,153
Reportable segment operating income	1,994		2,434		5,644		6,655
Other businesses (a)	(32)		(57)		(112)		(192)
Unallocated transactions (b)	2		3		7		4
Impact of purchase accounting (c)	(2)		(21)		(10)		(33)
Amortization of intangibles	(205)		(245)		(613)		(732)
Transaction-related expenses (d)	(3)		(8)		(9)		(16)
Stock-based compensation expense (e)	(227)		(235)		(675)		(703)
Other corporate expenses (f)	(41)		(109)		(512)		(401)
Total consolidated operating income	$	1,486	$	1,762	$	3,720	$	4,582

____________________

(a)Other businesses consists of (i) VMware Resale, (ii) Secureworks, and (iii) Virtustream, and do not meet the requirements for a reportable segment, either individually or collectively.

(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 that was completed in September 2016.

(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 severance, impairment charges, facility action, payroll taxes associated with stock-based compensation, and other costs.

Schedule of Disaggregation of Net 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				Nine Months Ended
	November 3, 2023		October 28, 2022		November 3, 2023		October 28, 2022
	(in millions)
Net revenue:
Infrastructure Solutions Group:
Servers and networking	$	4,656	$	5,201	$	12,767	$	15,458
Storage	3,843		4,429		11,786		12,993
Total ISG net revenue	$	8,499	$	9,630	$	24,553	$	28,451
Client Solutions Group:
Commercial	$	9,835	$	10,747	$	30,251	$	34,859
Consumer	2,441		3,028		6,950		9,993
Total CSG net revenue	$	12,276	$	13,775	$	37,201	$	44,852

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SUPPLEMENTAL CONSOLIDATED FINANCIAL INFORMATION (Tables)

9 Months Ended

Nov. 03, 2023

Condensed Financial Information Disclosure [Abstract]

Schedule of Information on Selected Assets

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

	November 3, 2023		February 3, 2023
	(in millions)
Cash, cash equivalents, and restricted cash:
Cash and cash equivalents	$	8,298	$	8,607
Restricted cash - other current assets (a)	145		272
Restricted cash - other non-current assets (a)	5		15
Total cash, cash equivalents, and restricted cash	$	8,448	$	8,894
Inventories:
Production materials	$	1,875	$	3,225
Work-in-process	679		708
Finished goods	827		843
Total inventories	$	3,381	$	4,776
Deferred Costs:
Total deferred costs, current (b)	$	5,494	$	5,459
Property, plant, and equipment, net:
Computer equipment	$	7,534	$	6,899
Land and buildings	2,894		3,059
Machinery and other equipment	3,310		3,134
Total property, plant, and equipment	13,738		13,092
Accumulated depreciation and amortization	(7,516)		(6,883)
Total property, plant, and equipment, net	$	6,222	$	6,209

____________________

(a)    Restricted cash includes cash required to be held in escrow pursuant to DFS securitization arrangements.

(b)    Deferred costs are included in other current assets in the Condensed Consolidated Statements of Financial Position. Amounts classified as long-term deferred costs are included in other non-current assets and are not disclosed above.

Schedule of 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				Nine Months Ended
	November 3, 2023		October 28, 2022		November 3, 2023		October 28, 2022
	(in millions)
Warranty liability:
Warranty liability at beginning of period	$	439	$	463	$	467	$	480
Costs accrued for new warranty contracts and changes in estimates for pre-existing warranties (a)	208		243		605		710
Service obligations honored	(203)		(241)		(628)		(725)
Warranty liability at end of period	$	444	$	465	$	444	$	465

____________________

(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 those made for new warranty obligations.

Schedule of Activity Related to Severance Liability

The following table presents the activity related to the Company’s severance liability for the periods indicated:

	Three Months Ended				Nine Months Ended
	November 3, 2023		October 28, 2022		November 3, 2023		October 28, 2022
	(in millions)
Severance liability:
Severance liability at beginning of period	$	457	$	88	$	408	$	74
Severance charges	22		97		434		160
Cash paid and other	(277)		(105)		(640)		(154)
Severance liability at end of period	$	202	$	80	$	202	$	80

Schedule of Severance Charges

The following table presents severance charges as included in the Condensed Consolidated Statements of Income for the periods indicated:

	Three Months Ended				Nine Months Ended
	November 3, 2023		October 28, 2022		November 3, 2023		October 28, 2022
	(in millions)
Severance charges:
Cost of net revenue	$	7	$	21	$	54	$	22
Selling, general, and administrative	14		57		365		114
Research and development	1		19		15		24
Total severance charges	$	22	$	97	$	434	$	160

Schedule of Interest and Other, Net

The following table presents information regarding interest and other, net for the periods indicated:

	Three Months Ended				Nine Months Ended
	November 3, 2023		October 28, 2022		November 3, 2023		October 28, 2022
	(in millions)
Interest and other, net:
Investment income, primarily interest	$	88	$	21	$	213	$	52
Gain (loss) on investments, net	8		44		(36)		(197)
Interest expense	(371)		(272)		(1,128)		(835)
Foreign exchange	(30)		(72)		(127)		(227)
Legal settlement, net	—		(1,000)		—		(1,000)
Other	(1)		(29)		(43)		(73)
Total interest and other, net	$	(306)	$	(1,308)	$	(1,121)	$	(2,280)

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OVERVIEW AND BASIS OF PRESENTATION (Details) - USD ($) $ in Millions	Oct. 04, 2023	Nov. 03, 2023	Aug. 04, 2023	Feb. 03, 2023	Oct. 28, 2022	Jul. 29, 2022	Jan. 28, 2022
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total stockholders’ equity (deficit)		$ (2,570)	$ (2,677)	$ (3,025)	$ (3,368)	$ (2,755)	$ (1,580)
Revolving
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cash transaction	$ 390
Derecognized transferred receivables	$ 380
Non-Controlling Interests
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total stockholders’ equity (deficit)		$ 94	$ 95	$ 97	$ 101	$ 105	$ 105
SecureWorks
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Outstanding equity interest held (as a percent)		81.10%		82.60%
SecureWorks | Non-Controlling Interests
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total stockholders’ equity (deficit)		$ 94		$ 97

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FAIR VALUE MEASUREMENTS - Schedule of Hierarchy for Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Millions	Nov. 03, 2023	Feb. 03, 2023
Assets:
Marketable equity and other securities	$ 5	$ 33
Derivative instruments	215	295
Total assets	4,396	4,629
Liabilities:
Derivative instruments	76	460
Total liabilities	76	460
Level 1
Assets:
Marketable equity and other securities	5	33
Derivative instruments	0	0
Total assets	4,181	4,334
Liabilities:
Derivative instruments	0	0
Total liabilities	0	0
Level 2
Assets:
Marketable equity and other securities	0	0
Derivative instruments	215	295
Total assets	215	295
Liabilities:
Derivative instruments	76	460
Total liabilities	76	460
Level 3
Assets:
Marketable equity and other securities	0	0
Derivative instruments	0	0
Total assets	0	0
Liabilities:
Derivative instruments	0	0
Total liabilities	0	0
Money market funds
Assets:
Money market funds	4,176	4,301
Money market funds | Level 1
Assets:
Money market funds	4,176	4,301
Money market funds | Level 2
Assets:
Money market funds	0	0
Money market funds | Level 3
Assets:
Money market funds	$ 0	$ 0

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FAIR VALUE MEASUREMENTS - Narrative (Details) - USD ($) $ in Millions	Nov. 03, 2023	Feb. 03, 2023
Debt and Equity Securities, FV-NI [Line Items]
Deferred compensation plan assets	$ 194	$ 179
Strategic Investments
Debt and Equity Securities, FV-NI [Line Items]
Carrying value	$ 1,200	$ 1,300

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FAIR VALUE MEASUREMENTS - Schedule of Carrying Value and Estimated Fair Value of Outstanding Debt (Details) - USD ($) $ in Billions	Nov. 03, 2023	Feb. 03, 2023
Carrying Value | Senior Notes | Secured Debt
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Outstanding debt	$ 16.0	$ 18.1
Carrying Value | Legacy Notes and Debentures | Unsecured Debt
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Outstanding debt	0.9	0.9
Carrying Value | DFS Debt | Unsecured Debt
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Outstanding debt	9.6	10.3
Fair Value | Senior Notes | Secured Debt
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Outstanding debt	15.6	18.2
Fair Value | Legacy Notes and Debentures | Unsecured Debt
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Outstanding debt	0.9	1.0
Fair Value | DFS Debt | Unsecured Debt
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Outstanding debt	$ 9.1	$ 9.9

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INVESTMENTS - Narrative (Details) - USD ($) $ in Millions	Nov. 03, 2023	Feb. 03, 2023
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Line Items]
Investments	$ 1,600	$ 1,600
Fixed income debt securities
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Line Items]
Mature within one year	267
Mature in two to five years	$ 43

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INVESTMENTS - Schedule of Carrying Value of Equity and Other Securities (Details) - USD ($) $ in Millions	Nov. 03, 2023	Feb. 03, 2023
Marketable
Cost	$ 12	$ 56
Unrealized Gain	19	17
Unrealized Loss	(26)	(40)
Carrying Value	5	33
Non-marketable
Cost	729	714
Unrealized Gain	666	651
Unrealized Loss	(149)	(100)
Carrying Value	1,246	1,265
Total equity and other securities
Cost	741	770
Unrealized Gain	685	668
Unrealized Loss	(175)	(140)
Carrying Value	$ 1,251	$ 1,298

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INVESTMENTS - Schedule of Gains and Losses on Equity and Other Securities (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Nov. 03, 2023	Oct. 28, 2022	Nov. 03, 2023	Oct. 28, 2022
Marketable securities:
Unrealized gain	$ 0	$ 50	$ 1	$ 57
Unrealized loss	0	(10)	(23)	(29)
Net unrealized gain (loss)	0	40	(22)	28
Non-marketable securities:
Unrealized gain	6	0	15	72
Unrealized loss	(3)	(13)	(49)	(333)
Net unrealized gain (loss)	3	(13)	(34)	(261)
Net unrealized gain (loss) on equity and other securities	$ 3	$ 27	$ (56)	$ (233)

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INVESTMENTS - Schedule of Fixed Income Debt Securities (Details) - USD ($) $ in Millions	Nov. 03, 2023	Feb. 03, 2023
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Line Items]
Unrealized Gain	$ 666	$ 651
Unrealized Loss	(149)	(100)
Carrying Value	1,246	1,265
Fixed income debt securities
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Line Items]
Cost	343	348
Unrealized Gain	59	65
Unrealized Loss	(92)	(95)
Carrying Value	$ 310	$ 318

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FINANCIAL SERVICES - Narrative (Details) - USD ($) $ in Billions	3 Months Ended		9 Months Ended
	Nov. 03, 2023	Oct. 28, 2022	Nov. 03, 2023	Oct. 28, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]
New financing originations	$ 1.8	$ 2.3	$ 6.0	$ 6.7
Fixed-term | Minimum | Business Customers
Accounts, Notes, Loans and Financing Receivable [Line Items]
Repayment term (in years)			2 years
Fixed-term | Minimum | Qualified Small Businesses, Large Commercial Accounts, Governmental Organizations, Educational Entities, and Certain Individual Consumer Customers
Accounts, Notes, Loans and Financing Receivable [Line Items]
Repayment term (in years)			3 years
Fixed-term | Maximum | Business Customers
Accounts, Notes, Loans and Financing Receivable [Line Items]
Repayment term (in years)			4 years
Fixed-term | Maximum | Qualified Small Businesses, Large Commercial Accounts, Governmental Organizations, Educational Entities, and Certain Individual Consumer Customers
Accounts, Notes, Loans and Financing Receivable [Line Items]
Repayment term (in years)			5 years
Revolving
Accounts, Notes, Loans and Financing Receivable [Line Items]
Repayment term (in years)			12 months

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FINANCIAL SERVICES - Schedule of Components of Financing Receivables Segregated by Portfolio Segment (Details) - USD ($) $ in Millions	Nov. 03, 2023	Aug. 04, 2023	Feb. 03, 2023	Oct. 28, 2022	Jul. 29, 2022	Jan. 28, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]
Customer receivables, gross	$ 10,316		$ 10,978
Financing receivables, net	10,313		10,919
Short-term	4,540		5,281
Long-term	5,773		5,638
Customer Financing Receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Customer receivables, gross	10,316		10,978
Allowances for losses	(153)	$ (149)	(201)	$ (186)	$ (183)	$ (189)
Financing receivables, net	10,163		10,777
Residual interest
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivables, net	150		142
Revolving
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivables, net	163		597
Short-term	163		597
Long-term	0		0
Revolving | Customer Financing Receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Customer receivables, gross	172		685
Allowances for losses	(9)	(9)	(88)	(87)	(91)	(102)
Financing receivables, net	163		597
Revolving | Residual interest
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivables, net	0		0
Fixed-term
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivables, net	10,150		10,322
Short-term	4,377		4,684
Long-term	5,773		5,638
Fixed-term | Customer Financing Receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Customer receivables, gross	10,144		10,293
Allowances for losses	(144)	$ (140)	(113)	$ (99)	$ (92)	$ (87)
Financing receivables, net	10,000		10,180
Fixed-term | Residual interest
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivables, net	$ 150		$ 142

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FINANCIAL SERVICES - Schedule of Changes in the Allowance for Financing Receivable Losses (Details) - Customer Financing Receivables - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Nov. 03, 2023	Oct. 28, 2022	Nov. 03, 2023	Oct. 28, 2022
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balances at beginning of period	$ 149	$ 183	$ 201	$ 189
Charge-offs, net of recoveries	(7)	(13)	(42)	(42)
Provision charged to income statement	11	16	68	39
Other			(74)	0
Balances at end of period	153	186	153	186
Revolving
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balances at beginning of period	9	91	88	102
Charge-offs, net of recoveries	(4)	(12)	(37)	(37)
Provision charged to income statement	4	8	32	22
Other			(74)	0
Balances at end of period	9	87	9	87
Fixed-term
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balances at beginning of period	140	92	113	87
Charge-offs, net of recoveries	(3)	(1)	(5)	(5)
Provision charged to income statement	7	8	36	17
Other			0	0
Balances at end of period	$ 144	$ 99	$ 144	$ 99

XML

FINANCIAL SERVICES - Schedule of Aging of Customer's Financing Receivables (Details) - USD ($) $ in Millions	Nov. 03, 2023	Feb. 03, 2023
Financing Receivable, Past Due [Line Items]
Total customer receivables, gross	$ 10,316	$ 10,978
Customer Financing Receivables
Financing Receivable, Past Due [Line Items]
Total customer receivables, gross	10,316	10,978
Revolving | Customer Financing Receivables
Financing Receivable, Past Due [Line Items]
Total customer receivables, gross	172	685
Revolving | Revolving — DPA | Customer Financing Receivables
Financing Receivable, Past Due [Line Items]
Total customer receivables, gross	5	508
Revolving | Revolving — DBC | Customer Financing Receivables
Financing Receivable, Past Due [Line Items]
Total customer receivables, gross	167	177
Fixed-term | Customer Financing Receivables
Financing Receivable, Past Due [Line Items]
Total customer receivables, gross	10,144	10,293
Fixed-term | Fixed-term — Consumer and Commercial | Customer Financing Receivables
Financing Receivable, Past Due [Line Items]
Total customer receivables, gross	10,144	10,293
Current | Customer Financing Receivables
Financing Receivable, Past Due [Line Items]
Total customer receivables, gross	9,291	9,920
Current | Revolving | Revolving — DPA | Customer Financing Receivables
Financing Receivable, Past Due [Line Items]
Total customer receivables, gross	5	457
Current | Revolving | Revolving — DBC | Customer Financing Receivables
Financing Receivable, Past Due [Line Items]
Total customer receivables, gross	146	154
Current | Fixed-term | Fixed-term — Consumer and Commercial | Customer Financing Receivables
Financing Receivable, Past Due [Line Items]
Total customer receivables, gross	9,140	9,309
Past Due 1 — 90 Days | Customer Financing Receivables
Financing Receivable, Past Due [Line Items]
Total customer receivables, gross	885	980
Past Due 1 — 90 Days | Revolving | Revolving — DPA | Customer Financing Receivables
Financing Receivable, Past Due [Line Items]
Total customer receivables, gross	0	34
Past Due 1 — 90 Days | Revolving | Revolving — DBC | Customer Financing Receivables
Financing Receivable, Past Due [Line Items]
Total customer receivables, gross	17	19
Past Due 1 — 90 Days | Fixed-term | Fixed-term — Consumer and Commercial | Customer Financing Receivables
Financing Receivable, Past Due [Line Items]
Total customer receivables, gross	868	927
Past Due >90 Days | Customer Financing Receivables
Financing Receivable, Past Due [Line Items]
Total customer receivables, gross	140	78
Past Due >90 Days | Revolving | Revolving — DPA | Customer Financing Receivables
Financing Receivable, Past Due [Line Items]
Total customer receivables, gross	0	17
Past Due >90 Days | Revolving | Revolving — DBC | Customer Financing Receivables
Financing Receivable, Past Due [Line Items]
Total customer receivables, gross	4	4
Past Due >90 Days | Fixed-term | Fixed-term — Consumer and Commercial | Customer Financing Receivables
Financing Receivable, Past Due [Line Items]
Total customer receivables, gross	$ 136	$ 57

XML

FINANCIAL SERVICES - Schedule of Customer Receivables, Gross, Including Accrued Interest, by Credit Quality Indicator, Segregated by Class (Details) - USD ($) $ in Millions	Nov. 03, 2023	Feb. 03, 2023
Financing Receivable, Credit Quality Indicator [Line Items]
Total customer receivables, gross	$ 10,316	$ 10,978
Fixed-term | Fixed-term — Consumer and Commercial
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	3,797	5,469
Fiscal year before current fiscal year	3,758	2,800
Two years before current fiscal year	1,664	1,433
Three years before current fiscal year	727	527
Four years before current fiscal year	192	61
Years Prior	6	3
Revolving | Revolving — DPA
Financing Receivable, Credit Quality Indicator [Line Items]
Financing receivable, revolving	5	508
Revolving | Revolving — DBC
Financing Receivable, Credit Quality Indicator [Line Items]
Financing receivable, revolving	167	177
Higher
Financing Receivable, Credit Quality Indicator [Line Items]
Total customer receivables, gross	6,437	6,477
Higher | Fixed-term | Fixed-term — Consumer and Commercial
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	2,494	3,210
Fiscal year before current fiscal year	2,195	1,805
Two years before current fiscal year	1,076	914
Three years before current fiscal year	499	343
Four years before current fiscal year	127	37
Years Prior	3	1
Higher | Revolving | Revolving — DPA
Financing Receivable, Credit Quality Indicator [Line Items]
Financing receivable, revolving	1	123
Higher | Revolving | Revolving — DBC
Financing Receivable, Credit Quality Indicator [Line Items]
Financing receivable, revolving	42	44
Mid
Financing Receivable, Credit Quality Indicator [Line Items]
Total customer receivables, gross	2,526	2,562
Mid | Fixed-term | Fixed-term — Consumer and Commercial
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	849	1,242
Fiscal year before current fiscal year	1,047	631
Two years before current fiscal year	378	362
Three years before current fiscal year	159	119
Four years before current fiscal year	40	17
Years Prior	2	1
Mid | Revolving | Revolving — DPA
Financing Receivable, Credit Quality Indicator [Line Items]
Financing receivable, revolving	2	136
Mid | Revolving | Revolving — DBC
Financing Receivable, Credit Quality Indicator [Line Items]
Financing receivable, revolving	49	54
Lower
Financing Receivable, Credit Quality Indicator [Line Items]
Total customer receivables, gross	1,353	1,939
Lower | Fixed-term | Fixed-term — Consumer and Commercial
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	454	1,017
Fiscal year before current fiscal year	516	364
Two years before current fiscal year	210	157
Three years before current fiscal year	69	65
Four years before current fiscal year	25	7
Years Prior	1	1
Lower | Revolving | Revolving — DPA
Financing Receivable, Credit Quality Indicator [Line Items]
Financing receivable, revolving	2	249
Lower | Revolving | Revolving — DBC
Financing Receivable, Credit Quality Indicator [Line Items]
Financing receivable, revolving	$ 76	$ 79

XML

FINANCIAL SERVICES - Schedule of Net Revenue, Cost of Net Revenue, and Gross Margin Recognized (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Nov. 03, 2023	Oct. 28, 2022	Nov. 03, 2023	Oct. 28, 2022
Receivables [Abstract]
Net revenue — products	$ 227	$ 207	$ 766	$ 646
Cost of net revenue — products	176	164	564	532
Gross margin — products	$ 51	$ 43	$ 202	$ 114

XML

FINANCIAL SERVICES - Schedule of Future Maturity of Fixed-Term Customer Leases (Details) $ in Millions	Nov. 03, 2023 USD ($)
Lessor, Lease, Description [Line Items]
Fiscal 2024 (remaining three months)	$ 809
Fiscal 2025	2,221
Fiscal 2026	1,712
Fiscal 2027	971
Fiscal 2028 and beyond	388
Total undiscounted cash flows	6,101
Total customer receivables, gross	10,316
Less: Unearned income	(911)
Fixed-term loans
Lessor, Lease, Description [Line Items]
Total customer receivables, gross	4,954
Revolving loans
Lessor, Lease, Description [Line Items]
Total customer receivables, gross	$ 172

XML

FINANCIAL SERVICES - Schedule of Components of Operating Lease Portfolio Included in Property, Plant, and Equipment, Net (Details) - USD ($) $ in Millions	Nov. 03, 2023	Feb. 03, 2023
Receivables [Abstract]
Equipment under operating lease, gross	$ 3,855	$ 3,725
Less: Accumulated depreciation	(1,721)	(1,517)
Equipment under operating lease, net	$ 2,134	$ 2,208

XML

FINANCIAL SERVICES - Schedule of Operating Lease Income Related to Lease Payments and Depreciation Expense (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Nov. 03, 2023	Oct. 28, 2022	Nov. 03, 2023	Oct. 28, 2022
Receivables [Abstract]
Operating Lease, Lease Income, Statement of Income or Comprehensive Income [Extensible Enumeration]	Total net revenue	Total net revenue	Total net revenue	Total net revenue
Income related to lease payments	$ 341	$ 297	$ 992	$ 782
Depreciation expense	$ 234	$ 212	$ 703	$ 571

XML

FINANCIAL SERVICES - Schedule of Future Payments to be Received in Operating Lease Contracts (Details) $ in Millions	Nov. 03, 2023 USD ($)
Operating Leases
Fiscal 2024 (remaining three months)	$ 330
Fiscal 2025	974
Fiscal 2026	628
Fiscal 2027	272
Fiscal 2028 and beyond	113
Total	$ 2,317

XML

FINANCIAL SERVICES - Schedule of DFS Debt (Details) - USD ($) $ in Millions	Nov. 03, 2023	Feb. 03, 2023
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items]
Total debt, carrying value	$ 26,617	$ 29,588
Total DFS debt	26,860	29,867
Total short-term DFS debt	6,498	6,573
Total long-term DFS debt	20,119	23,015
Secured Debt | DFS U.S. debt: | Finance Leases and Revolving Loan Portfolio Segments
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items]
Total debt, carrying value	6,189	6,742
Secured Debt | DFS international debt: | Finance Leases and Revolving Loan Portfolio Segments
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items]
Total debt, carrying value	3,431	3,548
Asset-based financing and securitization facilities | Secured Debt | DFS U.S. debt: | Finance Leases and Revolving Loan Portfolio Segments
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items]
Total debt, carrying value	2,443	3,987
Asset-based financing and securitization facilities | Secured Debt | DFS international debt: | Finance Leases and Revolving Loan Portfolio Segments
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items]
Total debt, carrying value	749	790
Fixed-term securitization offerings | Secured Debt | DFS U.S. debt: | Finance Leases and Revolving Loan Portfolio Segments
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items]
Total debt, carrying value	3,715	2,679
Other borrowings | Secured Debt | DFS U.S. debt: | Finance Leases and Revolving Loan Portfolio Segments
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items]
Total debt, carrying value	31	76
Other borrowings | Secured Debt | DFS international debt: | Finance Leases and Revolving Loan Portfolio Segments
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items]
Total debt, carrying value	839	871
Note payable | Secured Debt | DFS international debt: | Finance Leases and Revolving Loan Portfolio Segments
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items]
Total debt, carrying value	250	250
Dell Bank senior unsecured eurobonds | Unsecured Debt | DFS international debt: | Finance Leases and Revolving Loan Portfolio Segments
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items]
Total debt, carrying value	1,593	1,637
DFS Debt
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items]
Total DFS debt	9,620
DFS Debt | Secured Debt
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items]
Total DFS debt	9,620	10,290
Total short-term DFS debt	5,374	5,400
Total long-term DFS debt	$ 4,246	$ 4,890

XML

FINANCIAL SERVICES - DFS Debt (Narrative) (Details) $ in Millions				9 Months Ended
	Oct. 18, 2022 EUR (€)	Oct. 27, 2021 EUR (€)	Jun. 24, 2020 EUR (€)	Nov. 03, 2023 USD ($) facility
U.S.
Debt Instrument [Line Items]
Number of asset-based financing facilities | facility				2
Note payable
Debt Instrument [Line Items]
Aggregate principal amount				$ 250
Note payable | Mexican Interbank Equilibrium Interest Rate | Mexico, Pesos
Debt Instrument [Line Items]
Basis spread on variable rate				4.24%
Secured Debt | Asset-based financing and securitization facilities | U.S. | Finance Leases and Revolving Loan Portfolio Segments
Debt Instrument [Line Items]
Total debt capacity				$ 5,100
Secured Debt | Asset-based financing and securitization facilities | International | Finance Leases and Revolving Loan Portfolio Segments
Debt Instrument [Line Items]
Total debt capacity				$ 850
Secured Debt | Fixed-term securitization offerings | Minimum
Debt Instrument [Line Items]
Interest rate				0.53%
Secured Debt | Fixed-term securitization offerings | Maximum
Debt Instrument [Line Items]
Interest rate				6.80%
Secured Debt | Other borrowings | Canada
Debt Instrument [Line Items]
Total debt capacity				$ 328
Secured Debt | Other borrowings | Europe
Debt Instrument [Line Items]
Total debt capacity				531
Secured Debt | Other borrowings | Australia and New Zealand
Debt Instrument [Line Items]
Total debt capacity				290
Secured Debt | Other borrowings | Middle East
Debt Instrument [Line Items]
Total debt capacity				$ 150
Unsecured Debt | Dell Bank senior unsecured eurobonds
Debt Instrument [Line Items]
Interest rate	4.50%	0.50%	1.625%
Aggregate principal amount | €	€ 500,000,000	€ 500,000,000	€ 500,000,000
Debt instrument, term	5 years	5 years	4 years

XML

FINANCIAL SERVICES - Schedule of Assets and Liabilities Held by the Consolidated VIEs (Details) - USD ($) $ in Millions	Nov. 03, 2023	Feb. 03, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]
Other current assets	$ 10,662	$ 10,827
Short-term	4,540	5,281
Long-term	5,773	5,638
Property, plant, and equipment, net	6,222	6,209
Short-term debt	6,498	6,573
Long-term debt	20,119	23,015
Variable Interest Entity, Primary Beneficiary
Accounts, Notes, Loans and Financing Receivable [Line Items]
Other current assets	146	274
Short-term	3,059	3,702
Long-term	3,261	3,295
Property, plant, and equipment, net	1,097	1,164
Short-term debt	4,138	4,761
Long-term debt	$ 2,753	$ 2,685

XML

FINANCIAL SERVICES - Variable Interest Entities (Narrative) (Details) - USD ($) $ in Billions	3 Months Ended		9 Months Ended
	Nov. 03, 2023	Oct. 28, 2022	Nov. 03, 2023	Oct. 28, 2022
Variable Interest Entity, Primary Beneficiary
Debt Instrument [Line Items]
Financing receivables transferred via securitization through SPEs	$ 1.1	$ 1.6	$ 3.7	$ 4.5

XML

FINANCIAL SERVICES - Customer Receivables Sales (Narrative) (Details) - USD ($) $ in Millions	9 Months Ended
	Nov. 03, 2023	Oct. 28, 2022
Receivables [Abstract]
Financing receivables sold	$ 205	$ 431

XML

LEASES - Narrative (Details)	Nov. 03, 2023
Minimum
Lessee, Lease, Description [Line Items]
Remaining lease term	1 month
Maximum
Lessee, Lease, Description [Line Items]
Remaining lease term	10 years

XML

LEASES - Schedule of Components of Lease Costs (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Nov. 03, 2023	Oct. 28, 2022	Nov. 03, 2023	Oct. 28, 2022
Operating lease expense:
Operating lease costs	$ 79	$ 67	$ 221	$ 207
Variable costs	19	25	62	73
Total lease costs	$ 98	$ 92	$ 283	$ 280

XML

LEASES - Schedule of Supplemental Information Related to Operating Leases (Details) - USD ($) $ in Millions	Nov. 03, 2023	Feb. 03, 2023
Leases [Abstract]
Operating lease right-of-use assets	$ 711	$ 725
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Other non-current assets	Other non-current assets
Current operating lease liabilities	$ 246	$ 260
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Accrued and other	Accrued and other
Non-current operating lease liabilities	$ 588	$ 630
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Other non-current liabilities	Other non-current liabilities
Total operating lease liabilities	$ 834	$ 890
Weighted-average remaining lease term (in years)	4 years 5 months 26 days	4 years 11 months 12 days
Weighted-average discount rate	4.71%	3.48%

XML

LEASES - Schedule of Supplemental Cash Flow Information (Details) - USD ($) $ in Millions	9 Months Ended
	Nov. 03, 2023	Oct. 28, 2022
Leases [Abstract]
Cash paid for amounts included in the measurement of lease liabilities — operating cash outflows from operating leases	$ 220	$ 230
Right-of-use assets obtained in exchange for new operating lease liabilities	$ 205	$ 134

XML

LEASES - Schedule of Maturity of Operating Lease Liabilities (Details) - USD ($) $ in Millions	Nov. 03, 2023	Feb. 03, 2023
Lessee, Operating Lease, Liability, Payment, Due
Fiscal 2024 (remaining three months)	$ 63
Fiscal 2025	240
Fiscal 2026	194
Fiscal 2027	157
Fiscal 2028	113
Thereafter	145
Total lease payments	912
Less: Imputed interest	(78)
Total	834	$ 890
Current operating lease liabilities	246	260
Non-current operating lease liabilities	$ 588	$ 630

XML

DEBT - Schedule of Outstanding Debt (Details) - USD ($) $ in Millions	Nov. 03, 2023	Feb. 03, 2023
Debt Instrument [Line Items]
Total debt, principal amount	$ 26,860	$ 29,867
Unamortized discount, net of unamortized premium	(117)	(133)
Debt issuance costs	(126)	(146)
Total debt, carrying value	26,617	29,588
Total short-term debt, carrying value	6,498	6,573
Total long-term debt, carrying value	20,119	23,015
DFS Debt
Debt Instrument [Line Items]
Total debt, principal amount	$ 9,620
Unsecured Debt | 5.45% due June 2023
Debt Instrument [Line Items]
Interest rate	5.45%
Total debt, principal amount	$ 0	1,000
Unsecured Debt | 4.00% due July 2024
Debt Instrument [Line Items]
Interest rate	4.00%
Total debt, principal amount	$ 1,000	1,000
Unsecured Debt | 5.85% due July 2025
Debt Instrument [Line Items]
Interest rate	5.85%
Total debt, principal amount	$ 1,000	1,000
Unsecured Debt | 6.02% due June 2026
Debt Instrument [Line Items]
Interest rate	6.02%
Total debt, principal amount	$ 3,500	4,500
Unsecured Debt | 4.90% due October 2026
Debt Instrument [Line Items]
Interest rate	4.90%
Total debt, principal amount	$ 1,750	1,750
Unsecured Debt | 6.10% due July 2027
Debt Instrument [Line Items]
Interest rate	6.10%
Total debt, principal amount	$ 500	500
Unsecured Debt | 5.25% due February 2028
Debt Instrument [Line Items]
Interest rate	5.25%
Total debt, principal amount	$ 1,000	1,000
Unsecured Debt | 5.30% due October 2029
Debt Instrument [Line Items]
Interest rate	5.30%
Total debt, principal amount	$ 1,750	1,750
Unsecured Debt | 6.20% due July 2030
Debt Instrument [Line Items]
Interest rate	6.20%
Total debt, principal amount	$ 750	750
Unsecured Debt | 5.75% due February 2033
Debt Instrument [Line Items]
Interest rate	5.75%
Total debt, principal amount	$ 1,000	1,000
Unsecured Debt | 8.10% due July 2036
Debt Instrument [Line Items]
Interest rate	8.10%
Total debt, principal amount	$ 1,000	1,000
Unsecured Debt | 3.38% due December 2041
Debt Instrument [Line Items]
Interest rate	3.38%
Total debt, principal amount	$ 962	1,000
Unsecured Debt | 8.35% due July 2046
Debt Instrument [Line Items]
Interest rate	8.35%
Total debt, principal amount	$ 800	800
Unsecured Debt | 3.45% due December 2051
Debt Instrument [Line Items]
Interest rate	3.45%
Total debt, principal amount	$ 1,095	1,250
Unsecured Debt | 7.10% due April 2028
Debt Instrument [Line Items]
Interest rate	7.10%
Total debt, principal amount	$ 300	300
Unsecured Debt | 6.50% due April 2038
Debt Instrument [Line Items]
Interest rate	6.50%
Total debt, principal amount	$ 388	388
Unsecured Debt | 5.40% due September 2040
Debt Instrument [Line Items]
Interest rate	5.40%
Total debt, principal amount	$ 264	264
DFS Debt (Note 4) | DFS Debt
Debt Instrument [Line Items]
Total debt, principal amount	9,620	10,290
Total short-term debt, carrying value	5,374	5,400
Total long-term debt, carrying value	4,246	4,890
Other
Debt Instrument [Line Items]
Total debt, principal amount	$ 181	$ 325

XML

DEBT - Narrative (Details) - Unsecured Debt $ in Billions	9 Months Ended
	Nov. 03, 2023 USD ($)
5.45% due June 2023
Debt Instrument [Line Items]
Repayment of principal amount	$ 1
Interest rate	5.45%
6.02% due June 2026
Debt Instrument [Line Items]
Repayment of principal amount	$ 1
Interest rate	6.02%

XML

DEBT - Outstanding Debt (Narrative) (Details) - USD ($) $ in Billions	Jan. 24, 2023	Dec. 13, 2021	Apr. 09, 2020	Mar. 20, 2019	Jun. 22, 2016	Jun. 01, 2016
Senior Notes
Debt Instrument [Line Items]
Aggregate principal amount	$ 2.0	$ 2.3	$ 2.3	$ 4.5	$ 3.3	$ 20.0

XML

DEBT - 2021 Revolving Credit Facility (Narrative) (Details) - USD ($)	9 Months Ended
	Nov. 03, 2023	Nov. 01, 2021
2021 Revolving Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity		$ 6,000,000,000
Outstanding borrowings under credit facility	$ 0
2021 Revolving Credit Facility | SOFR
Debt Instrument [Line Items]
Basis spread on variable rate	1.00%
2021 Revolving Credit Facility, Letter Of Credit Sub Facility
Debt Instrument [Line Items]
Maximum borrowing capacity		500,000,000
2021 Revolving Credit Facility, Swing-Line Sub Facility
Debt Instrument [Line Items]
Maximum borrowing capacity		500,000,000
2021 Revolving Credit Facility, Incremental Commitments
Debt Instrument [Line Items]
Maximum borrowing capacity		$ 10,000,000

XML

DEBT - Commercial Paper Program (Narrative) (Details) - Commercial Paper Program - Commercial Paper - USD ($)	12 Months Ended
	Feb. 03, 2023	Nov. 03, 2023
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 5,000,000,000
Debt instrument, term	397 days
Outstanding borrowing		$ 0

XML

DEBT - Schedule of Aggregate Future Maturities (Details) - USD ($) $ in Millions	Nov. 03, 2023	Feb. 03, 2023
Total maturities, principal amount
2024 (remaining three months)	$ 1,492
2025	5,931
2026	2,862
2027	6,142
2028	1,116
Thereafter	9,317
Total DFS debt	26,860	$ 29,867
Associated carrying value adjustments
2024 (remaining three months)	(2)
2025	(7)
2026	(6)
2027	(33)
2028	(8)
Thereafter	(187)
Total	(243)
Total maturities, carrying value amount
2024 (remaining three months)	1,490
2025	5,924
2026	2,856
2027	6,109
2028	1,108
Thereafter	9,130
Total debt, carrying value	26,617	$ 29,588
Senior Notes
Total maturities, principal amount
2024 (remaining three months)	0
2025	1,000
2026	1,000
2027	5,250
2028	500
Thereafter	8,357
Total DFS debt	16,107
Legacy Notes and Debentures
Total maturities, principal amount
2024 (remaining three months)	0
2025	0
2026	0
2027	0
2028	0
Thereafter	952
Total DFS debt	952
DFS Debt
Total maturities, principal amount
2024 (remaining three months)	1,479
2025	4,807
2026	1,833
2027	884
2028	610
Thereafter	7
Total DFS debt	9,620
Other
Total maturities, principal amount
2024 (remaining three months)	13
2025	124
2026	29
2027	8
2028	6
Thereafter	1
Total DFS debt	$ 181

XML

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Narrative (Details)	9 Months Ended
	Nov. 03, 2023
Foreign Currency Forward and Option Contracts | Designated as cash flow hedging instruments
Derivative [Line Items]
Term of derivative contract	12 months
Forward Contracts to Hedge Monetary Assets and Liabilities | Non-designated as hedging instruments
Derivative [Line Items]
Term of derivative contract	3 months
Forward Contracts to Hedge Monetary Assets and Liabilities | Non-designated as hedging instruments | Financing Receivables
Derivative [Line Items]
Term of derivative contract	3 years
Interest Rate Swaps | Non-designated as hedging instruments
Derivative [Line Items]
Term of derivative contract	5 years
Interest Rate Swaps | Non-designated as hedging instruments | Structured Financing Debt
Derivative [Line Items]
Term of derivative contract	4 years
Cross Currency Amortizing Swaps | Non-designated as hedging instruments
Derivative [Line Items]
Term of derivative contract	5 years

XML

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Schedule of Notional Amounts of Outstanding Derivative Instruments (Details) - USD ($) $ in Millions	Nov. 03, 2023	Feb. 03, 2023
Foreign exchange contracts
Derivative [Line Items]
Notional amount	$ 13,607	$ 14,579
Foreign exchange contracts | Designated as cash flow hedging instruments
Derivative [Line Items]
Notional amount	7,317	7,746
Foreign exchange contracts | Non-designated as hedging instruments
Derivative [Line Items]
Notional amount	6,290	6,833
Interest rate contracts
Derivative [Line Items]
Notional amount	6,107	8,214
Interest rate contracts | Designated as cash flow hedging instruments
Derivative [Line Items]
Notional amount	0	1,000
Interest rate contracts | Non-designated as hedging instruments
Derivative [Line Items]
Notional amount	$ 6,107	$ 7,214

XML

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Schedule of Derivative Instruments Designated and Not Designated as Hedging Instruments (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Nov. 03, 2023	Oct. 28, 2022	Nov. 03, 2023	Oct. 28, 2022
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Recognized in Accumulated OCI, Net of Tax, on Derivatives	$ 171	$ 306	$ 230	$ 844
Gain (Loss) Reclassified from Accumulated OCI into Income	84	324	(75)	726
Effect on the consolidated statement of income	(112)	117	(92)	(170)
Total net revenue
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Reclassified from Accumulated OCI into Income	83	324	(68)	754
Total cost of net revenue
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Reclassified from Accumulated OCI into Income	1	0	(7)	(28)
Interest and other, net
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Reclassified from Accumulated OCI into Income	0	0	0	0
Foreign exchange contracts
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Recognized in Accumulated OCI, Net of Tax, on Derivatives	171	306	230	844
Foreign exchange contracts | Interest and other, net
Derivative Instruments, Gain (Loss) [Line Items]
Effect on the consolidated statement of income	(114)	71	(97)	(234)
Interest rate contracts
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Recognized in Accumulated OCI, Net of Tax, on Derivatives	0	0	0	0
Interest rate contracts | Interest and other, net
Derivative Instruments, Gain (Loss) [Line Items]
Effect on the consolidated statement of income	$ 2	$ 46	$ 5	$ 64

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DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Schedule of Fair Value of Derivative Instruments (Details) - USD ($) $ in Millions	Nov. 03, 2023	Feb. 03, 2023
Derivatives, Fair Value [Line Items]
Asset position	$ 514	$ 835
Liability position	(375)	(1,000)
Net Amounts of Assets/(Liabilities) Presented in the Statement of Financial Position	139	(165)
Other Current Assets
Derivatives, Fair Value [Line Items]
Net Amounts of Assets/(Liabilities) Presented in the Statement of Financial Position	158	161
Other Non-Current Assets
Derivatives, Fair Value [Line Items]
Net Amounts of Assets/(Liabilities) Presented in the Statement of Financial Position	57	134
Other Current Liabilities
Derivatives, Fair Value [Line Items]
Net Amounts of Assets/(Liabilities) Presented in the Statement of Financial Position	(59)	(358)
Other Non-Current Liabilities
Derivatives, Fair Value [Line Items]
Net Amounts of Assets/(Liabilities) Presented in the Statement of Financial Position	(17)	(102)
Designated as cash flow hedging instruments
Derivatives, Fair Value [Line Items]
Net Amounts of Assets/(Liabilities) Presented in the Statement of Financial Position	139	(132)
Designated as cash flow hedging instruments | Other Current Assets
Derivatives, Fair Value [Line Items]
Net Amounts of Assets/(Liabilities) Presented in the Statement of Financial Position	116	(14)
Designated as cash flow hedging instruments | Other Non-Current Assets
Derivatives, Fair Value [Line Items]
Net Amounts of Assets/(Liabilities) Presented in the Statement of Financial Position	0	0
Designated as cash flow hedging instruments | Other Current Liabilities
Derivatives, Fair Value [Line Items]
Net Amounts of Assets/(Liabilities) Presented in the Statement of Financial Position	23	(112)
Designated as cash flow hedging instruments | Other Non-Current Liabilities
Derivatives, Fair Value [Line Items]
Net Amounts of Assets/(Liabilities) Presented in the Statement of Financial Position	0	(6)
Designated as cash flow hedging instruments | Foreign exchange contracts
Derivatives, Fair Value [Line Items]
Asset position	152	37
Liability position	(13)	(163)
Designated as cash flow hedging instruments | Foreign exchange contracts | Other Current Assets
Derivatives, Fair Value [Line Items]
Asset position	124	7
Liability position	(8)	(21)
Designated as cash flow hedging instruments | Foreign exchange contracts | Other Non-Current Assets
Derivatives, Fair Value [Line Items]
Asset position	0	0
Liability position	0	0
Designated as cash flow hedging instruments | Foreign exchange contracts | Other Current Liabilities
Derivatives, Fair Value [Line Items]
Asset position	28	30
Liability position	(5)	(142)
Designated as cash flow hedging instruments | Foreign exchange contracts | Other Non-Current Liabilities
Derivatives, Fair Value [Line Items]
Asset position	0	0
Liability position	0	0
Designated as cash flow hedging instruments | Interest rate contracts
Derivatives, Fair Value [Line Items]
Asset position	0	0
Liability position	0	(6)
Designated as cash flow hedging instruments | Interest rate contracts | Other Current Assets
Derivatives, Fair Value [Line Items]
Asset position	0	0
Liability position	0	0
Designated as cash flow hedging instruments | Interest rate contracts | Other Non-Current Assets
Derivatives, Fair Value [Line Items]
Asset position	0	0
Liability position	0	0
Designated as cash flow hedging instruments | Interest rate contracts | Other Current Liabilities
Derivatives, Fair Value [Line Items]
Asset position	0	0
Liability position	0	0
Designated as cash flow hedging instruments | Interest rate contracts | Other Non-Current Liabilities
Derivatives, Fair Value [Line Items]
Asset position	0	0
Liability position	0	(6)
Non-designated as hedging instruments
Derivatives, Fair Value [Line Items]
Net Amounts of Assets/(Liabilities) Presented in the Statement of Financial Position	0	(33)
Non-designated as hedging instruments | Other Current Assets
Derivatives, Fair Value [Line Items]
Net Amounts of Assets/(Liabilities) Presented in the Statement of Financial Position	42	175
Non-designated as hedging instruments | Other Non-Current Assets
Derivatives, Fair Value [Line Items]
Net Amounts of Assets/(Liabilities) Presented in the Statement of Financial Position	57	134
Non-designated as hedging instruments | Other Current Liabilities
Derivatives, Fair Value [Line Items]
Net Amounts of Assets/(Liabilities) Presented in the Statement of Financial Position	(82)	(246)
Non-designated as hedging instruments | Other Non-Current Liabilities
Derivatives, Fair Value [Line Items]
Net Amounts of Assets/(Liabilities) Presented in the Statement of Financial Position	(17)	(96)
Non-designated as hedging instruments | Foreign exchange contracts
Derivatives, Fair Value [Line Items]
Asset position	299	651
Liability position	(330)	(736)
Non-designated as hedging instruments | Foreign exchange contracts | Other Current Assets
Derivatives, Fair Value [Line Items]
Asset position	213	282
Liability position	(177)	(121)
Non-designated as hedging instruments | Foreign exchange contracts | Other Non-Current Assets
Derivatives, Fair Value [Line Items]
Asset position	0	1
Liability position	0	0
Non-designated as hedging instruments | Foreign exchange contracts | Other Current Liabilities
Derivatives, Fair Value [Line Items]
Asset position	86	368
Liability position	(153)	(614)
Non-designated as hedging instruments | Foreign exchange contracts | Other Non-Current Liabilities
Derivatives, Fair Value [Line Items]
Asset position	0	0
Liability position	0	(1)
Non-designated as hedging instruments | Interest rate contracts
Derivatives, Fair Value [Line Items]
Asset position	63	147
Liability position	(32)	(95)
Non-designated as hedging instruments | Interest rate contracts | Other Current Assets
Derivatives, Fair Value [Line Items]
Asset position	6	14
Liability position	0	0
Non-designated as hedging instruments | Interest rate contracts | Other Non-Current Assets
Derivatives, Fair Value [Line Items]
Asset position	57	133
Liability position	0	0
Non-designated as hedging instruments | Interest rate contracts | Other Current Liabilities
Derivatives, Fair Value [Line Items]
Asset position	0	0
Liability position	(15)	0
Non-designated as hedging instruments | Interest rate contracts | Other Non-Current Liabilities
Derivatives, Fair Value [Line Items]
Asset position	0	0
Liability position	$ (17)	$ (95)

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DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Schedule of Gross Amounts of the Company’s Derivative Instruments, Amounts Offset Due to Master Netting Agreements (Details) - USD ($) $ in Millions	Nov. 03, 2023	Feb. 03, 2023
Financial assets
Derivative Asset, Statement of Financial Position [Extensible Enumeration]	Other current assets, Other non-current assets	Other current assets, Other non-current assets
Gross Amounts of Recognized Assets/ (Liabilities)	$ 514	$ 835
Gross Amounts Offset in the Statement of Financial Position	(299)	(540)
Net Amounts of Assets/(Liabilities) Presented in the Statement of Financial Position	215	295
Financial Instruments	0	0
Cash Collateral Received or Pledged	(21)	0
Net Amount of Assets/ (Liabilities) Recognized in the Statement of Financial Position	$ 194	$ 295
Financial liabilities
Derivative Liability, Statement of Financial Position [Extensible Enumeration]	Accrued and other, Other non-current liabilities	Accrued and other, Other non-current liabilities
Gross Amounts of Recognized Assets/ (Liabilities)	$ (375)	$ (1,000)
Gross Amounts Offset in the Statement of Financial Position	299	540
Net Amounts of Assets/(Liabilities) Presented in the Statement of Financial Position	(76)	(460)
Financial Instruments	0	0
Cash Collateral Received or Pledged	17	25
Net Amount of Assets/ (Liabilities) Recognized in the Statement of Financial Position	(59)	(435)
Total derivative instruments
Gross Amounts of Recognized Assets/ (Liabilities)	139	(165)
Gross Amounts Offset in the Statement of Financial Position	0	0
Net Amounts of Assets/(Liabilities) Presented in the Statement of Financial Position	139	(165)
Financial Instruments	0	0
Cash Collateral Received or Pledged	(4)	25
Net Amount of Assets/ (Liabilities) Recognized in the Statement of Financial Position	$ 135	$ (140)

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GOODWILL AND INTANGIBLE ASSETS - Schedule of Goodwill (Details) $ in Millions	9 Months Ended
	Nov. 03, 2023 USD ($)
Goodwill [Roll Forward]
Balance at the beginning	$ 19,676
Goodwill acquired	82
Impact of foreign currency translation and other	(142)
Balance at the end	19,616
Operating Segments | Infrastructure Solutions Group
Goodwill [Roll Forward]
Balance at the beginning	15,017
Goodwill acquired	82
Impact of foreign currency translation and other	(142)
Balance at the end	14,957
Operating Segments | Client Solutions Group
Goodwill [Roll Forward]
Balance at the beginning	4,232
Goodwill acquired	0
Impact of foreign currency translation and other	0
Balance at the end	4,232
Operating Segments | Other Businesses
Goodwill [Roll Forward]
Balance at the beginning	427
Goodwill acquired	0
Impact of foreign currency translation and other	0
Balance at the end	$ 427

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GOODWILL AND INTANGIBLE ASSETS - Schedule of Finite-Lived and Indefinite-Lived Intangible Assets (Details) - USD ($)	3 Months Ended		9 Months Ended
	Nov. 03, 2023	Oct. 28, 2022	Nov. 03, 2023	Oct. 28, 2022	Feb. 03, 2023
Goodwill [Line Items]
Gross	$ 27,349,000,000		$ 27,349,000,000		$ 27,297,000,000
Accumulated Amortization	(24,527,000,000)		(24,527,000,000)		(23,914,000,000)
Finite-Lived Intangible Assets, Net, Total	2,822,000,000		2,822,000,000		3,383,000,000
Total intangible assets	30,434,000,000		30,434,000,000		30,382,000,000
Intangible assets, net	5,907,000,000		5,907,000,000		6,468,000,000
Amortization expense	205,000,000	$ 245,000,000	613,000,000	$ 732,000,000
Impairment charges	0	$ 0	0	$ 0
Trade names
Goodwill [Line Items]
Indefinite-lived trade names	3,085,000,000		3,085,000,000		3,085,000,000
Customer relationships
Goodwill [Line Items]
Gross	16,968,000,000		16,968,000,000		16,956,000,000
Accumulated Amortization	(14,817,000,000)		(14,817,000,000)		(14,474,000,000)
Finite-Lived Intangible Assets, Net, Total	2,151,000,000		2,151,000,000		2,482,000,000
Developed technology
Goodwill [Line Items]
Gross	9,506,000,000		9,506,000,000		9,466,000,000
Accumulated Amortization	(8,897,000,000)		(8,897,000,000)		(8,660,000,000)
Finite-Lived Intangible Assets, Net, Total	609,000,000		609,000,000		806,000,000
Trade names
Goodwill [Line Items]
Gross	875,000,000		875,000,000		875,000,000
Accumulated Amortization	(813,000,000)		(813,000,000)		(780,000,000)
Finite-Lived Intangible Assets, Net, Total	$ 62,000,000		$ 62,000,000		$ 95,000,000

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GOODWILL AND INTANGIBLE ASSETS - Schedule of Estimated Future Annual Pre-Tax Amortization Expense (Details) - USD ($) $ in Millions	Nov. 03, 2023	Feb. 03, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Fiscal 2024 (remaining three months)	$ 205
Fiscal 2025	654
Fiscal 2026	495
Fiscal 2027	386
Fiscal 2028	230
Thereafter	852
Finite-Lived Intangible Assets, Net, Total	$ 2,822	$ 3,383

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DEFERRED REVENUE - Schedule of Changes in Deferred Revenue (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Nov. 03, 2023	Oct. 28, 2022	Nov. 03, 2023	Oct. 28, 2022	Feb. 03, 2023
Deferred revenue:
Deferred revenue at beginning of period	$ 30,312	$ 28,025	$ 30,286	$ 27,573
Revenue deferrals	4,492	4,128	15,236	14,675
Revenue recognized	(5,766)	(5,064)	(16,484)	(14,994)
Other	15	0	15	(165)
Deferred revenue at end of period	29,053	27,089	29,053	27,089
Short-term deferred revenue	15,206	14,106	15,206	14,106	$ 15,542
Long-term deferred revenue	$ 13,847	$ 12,983	$ 13,847	$ 12,983	$ 14,744

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DEFERRED REVENUE - Narrative (Details) $ in Billions	Nov. 03, 2023 USD ($)
Revenue from Contract with Customer [Abstract]
Remaining performance obligations	$ 39
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-11-04
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation percentage	58.00%
Deferred revenue recognition period	12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-11-04
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Deferred revenue recognition period

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COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Millions		3 Months Ended			9 Months Ended		12 Months Ended
	Dec. 28, 2018	Nov. 03, 2023	Feb. 03, 2023	Oct. 28, 2022	Nov. 03, 2023	Oct. 28, 2022	Feb. 03, 2023
Loss Contingencies [Line Items]
Purchase obligation, fiscal 2024		$ 3,800			$ 3,800
Purchase obligation, fiscal 2025		800			800
Purchase obligation, fiscal 2026 and thereafter		600			600
Litigation settlement expense		$ 0		$ 1,000	$ 0	$ 1,000
Class V Transaction Class Action Case
Loss Contingencies [Line Items]
Cash	$ 14,000
Shares issued (in shares)	149,387,617
Class V Transaction Class Action Case | Settled Litigation
Loss Contingencies [Line Items]
Amount awarded to other party			$ 1,000
Loss contingency liability			$ 1,000				$ 1,000
Litigation settlement expense							900
Insurance recoveries							$ 106

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INCOME AND OTHER TAXES (Details) - USD ($) $ in Billions	3 Months Ended		9 Months Ended
	Nov. 03, 2023	Oct. 28, 2022	Nov. 03, 2023	Oct. 28, 2022	Feb. 03, 2023
Income Tax Disclosure [Abstract]
Effective income tax rate	14.90%	46.90%	21.60%	21.10%
Income before income taxes	$ 1.2	$ 0.5	$ 2.6	$ 2.3
Unrecognized tax benefits	1.2		1.2		$ 1.3
Reasonably possible decrease in unrecognized tax benefits	$ 0.4		$ 0.4

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ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Schedule of Changes in Accumulated Other Comprehensive Income (Loss), Net of Tax (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Nov. 03, 2023	Oct. 28, 2022	Nov. 03, 2023	Oct. 28, 2022
AOCI [Roll Forward]
Beginning balance	$ (2,677)	$ (2,755)	$ (3,025)	$ (1,580)
Total other comprehensive income (loss), net of tax expense (benefit) of $6 and $6, respectively, and $18 and $14, respectively	(66)	(215)	178	(490)
Ending balance	(2,570)	(3,368)	(2,570)	(3,368)
Foreign Currency Translation Adjustments
AOCI [Roll Forward]
Beginning balance			(747)
Other comprehensive income (loss) before reclassifications			(130)
Amounts reclassified from accumulated other comprehensive income (loss)			0
Total other comprehensive income (loss), net of tax expense (benefit) of $6 and $6, respectively, and $18 and $14, respectively			(130)
Ending balance	(877)		(877)
Cash Flow Hedges
AOCI [Roll Forward]
Beginning balance			(222)
Other comprehensive income (loss) before reclassifications			230
Amounts reclassified from accumulated other comprehensive income (loss)			75
Total other comprehensive income (loss), net of tax expense (benefit) of $6 and $6, respectively, and $18 and $14, respectively			305
Ending balance	83		83
Pension and Other Postretirement Plans
AOCI [Roll Forward]
Beginning balance			(32)
Other comprehensive income (loss) before reclassifications			3
Amounts reclassified from accumulated other comprehensive income (loss)			0
Total other comprehensive income (loss), net of tax expense (benefit) of $6 and $6, respectively, and $18 and $14, respectively			3
Ending balance	(29)		(29)
Accumulated Other Comprehensive Income (Loss)
AOCI [Roll Forward]
Beginning balance	(757)	(705)	(1,001)	(431)
Other comprehensive income (loss) before reclassifications			103
Amounts reclassified from accumulated other comprehensive income (loss)			75
Total other comprehensive income (loss), net of tax expense (benefit) of $6 and $6, respectively, and $18 and $14, respectively			178
Ending balance	$ (823)	$ (920)	$ (823)	$ (920)

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ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Schedule of Reclassifications Out of Accumulated Other Comprehensive Income (Loss), Net of Tax (Details) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Nov. 03, 2023	Oct. 28, 2022	Nov. 03, 2023	Oct. 28, 2022
Accumulated Other Comprehensive Income (Loss) [Line Items]
Net revenue		$ 22,251	$ 24,721	$ 66,107	$ 77,262
Cost of net revenue	[1]	(17,103)	(19,014)	(50,554)	(60,332)
Operating expenses		(3,662)	(3,945)	(11,833)	(12,348)
Net income		1,004	241	2,037	1,816
Total reclassifications, net of tax
Accumulated Other Comprehensive Income (Loss) [Line Items]
Net revenue		83	324	(68)	754
Cost of net revenue		1	0	(7)	(28)
Operating expenses		0	(1)	0	(1)
Net income		84	323	(75)	725
Total reclassifications, net of tax | Cash Flow Hedges
Accumulated Other Comprehensive Income (Loss) [Line Items]
Net revenue		83	324	(68)	754
Cost of net revenue		1	0	(7)	(28)
Operating expenses		0	0	0	0
Net income		84	324	(75)	726
Total reclassifications, net of tax | Pensions
Accumulated Other Comprehensive Income (Loss) [Line Items]
Net revenue		0	0	0	0
Cost of net revenue		0	0	0	0
Operating expenses		0	(1)	0	(1)
Net income		$ 0	$ (1)	$ 0	$ (1)

[1] (a) Includes related party cost of net revenue as follows (Note 15): Products$379 $281 $970 $962 Services$884 $733 $2,640 $2,204 

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CAPITALIZATION - Schedule of Stock by Class (Details) - shares shares in Millions	Nov. 03, 2023	Feb. 03, 2023
Class of Stock [Line Items]
Authorized (in shares)	8,800	8,800
Issued (in shares)	819	798
Outstanding (in shares)	715	716
Class A
Class of Stock [Line Items]
Authorized (in shares)	600	600
Issued (in shares)	379	379
Outstanding (in shares)	379	379
Class B
Class of Stock [Line Items]
Authorized (in shares)	200	200
Issued (in shares)	91	95
Outstanding (in shares)	91	95
Class C
Class of Stock [Line Items]
Authorized (in shares)	7,900	7,900
Issued (in shares)	349	324
Outstanding (in shares)	245	242
Class D
Class of Stock [Line Items]
Authorized (in shares)	100	100
Issued (in shares)	0	0
Outstanding (in shares)	0	0

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CAPITALIZATION - Narrative (Details) $ / shares in Units, $ in Millions							3 Months Ended		9 Months Ended
	Sep. 28, 2023 $ / shares	Jun. 16, 2023 $ / shares	Mar. 02, 2023 $ / shares	Sep. 06, 2022 $ / shares	Jun. 07, 2022 $ / shares	Feb. 24, 2022 $ / shares	Nov. 03, 2023 USD ($) $ / shares shares	Oct. 28, 2022 USD ($) $ / shares	Nov. 03, 2023 USD ($) vote $ / shares shares	Oct. 28, 2022 USD ($) $ / shares shares	Oct. 05, 2023 USD ($)	Feb. 03, 2023 $ / shares shares	Sep. 23, 2021 USD ($)
Class of Stock [Line Items]
Preferred stock, authorized (in shares)							1,000,000		1,000,000
Preferred stock, par value (in dollars per share) | $ / shares							$ 0.01		$ 0.01
Preferred stock, shares issued (in shares)							0		0			0
Preferred stock, shares outstanding (in shares)							0		0			0
Common stock, par or value (in dollars per share) | $ / shares							$ 0.01		$ 0.01			$ 0.01
Common stock conversion ratio							1		1
Dividend declared (in dollars per share) | $ / shares	$ 0.37	$ 0.37	$ 0.37	$ 0.33	$ 0.33	$ 0.33	$ 0.37	$ 0.33	$ 1.11	$ 0.99
Common stock dividend rate increase			12.00%
Treasury stock repurchases | $							$ 744	$ 609	$ 1,251	$ 2,699
Class A
Class of Stock [Line Items]
Number of voting interests per share | vote									10
Class B
Class of Stock [Line Items]
Number of voting interests per share | vote									10
Class C
Class of Stock [Line Items]
Number of voting interests per share | vote									1
Stock repurchases, authorized amount | $													$ 5,000
Stock repurchase program, additional authorized amount | $											$ 5,000
Stock repurchases, remaining authorized amount | $											$ 5,700
Shares repurchased (in shares)									22,000,000	59,000,000
Treasury stock repurchases | $									$ 1,300	$ 2,700
Class C | Class B Common Stock Into Class C Common Stock
Class of Stock [Line Items]
Conversion of stock, shares issued (in shares)									4,700,000	0
Class C | Class A Common Stock Into Class C Common Stock
Class of Stock [Line Items]
Conversion of stock, shares issued (in shares)										0
Class D
Class of Stock [Line Items]
Number of voting interests per share | vote									1

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CAPITALIZATION - Schedule of Dividends Declared (Details) - USD ($) $ / shares in Units, $ in Millions													3 Months Ended		9 Months Ended
	Nov. 03, 2023	Sep. 28, 2023	Aug. 04, 2023	Jun. 16, 2023	May 05, 2023	Mar. 02, 2023	Oct. 28, 2022	Sep. 06, 2022	Jul. 29, 2022	Jun. 07, 2022	Apr. 29, 2022	Feb. 24, 2022	Nov. 03, 2023	Oct. 28, 2022	Nov. 03, 2023	Oct. 28, 2022
Equity [Abstract]
Dividend declared (in dollars per share)		$ 0.37		$ 0.37		$ 0.37		$ 0.33		$ 0.33		$ 0.33	$ 0.37	$ 0.33	$ 1.11	$ 0.99
Dividend paid (in dollars per share)	$ 0.37		$ 0.37		$ 0.37		$ 0.33		$ 0.33		$ 0.33
Dividends		$ 266		$ 268		$ 270		$ 238		$ 242		$ 248	$ 276	$ 241	$ 838	$ 742

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EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Nov. 03, 2023	Oct. 28, 2022	Nov. 03, 2023	Oct. 28, 2022
Earnings Per Share [Abstract]
Dell Technologies Common Stock - Basic (in dollars per share)	$ 1.39	$ 0.34	$ 2.83	$ 2.47
Dell Technologies Common Stock - Diluted (in dollars per share)	$ 1.36	$ 0.33	$ 2.78	$ 2.41
Numerator: Dell Technologies Common Stock
Net income attributable to Dell Technologies Inc. - basic	$ 1,006	$ 245	$ 2,051	$ 1,828
Net income attributable to Dell Technologies Inc. - diluted	$ 1,006	$ 245	$ 2,051	$ 1,828
Denominator: Dell Technologies Common Stock weighted-average shares outstanding
Weighted-average shares outstanding — basic (in shares)	722	728	724	740
Dilutive effect of equity awards (in shares)	18	15	14	19
Weighted-average shares outstanding — diluted (in shares)	740	743	738	759
Weighted-average shares outstanding — antidilutive (in shares)	0	18	5	11

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RELATED PARTY TRANSACTIONS - Schedule of Related Party Transactions (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Nov. 03, 2023	Oct. 28, 2022	Nov. 03, 2023	Oct. 28, 2022	Feb. 03, 2023
Related Party Transaction [Line Items]
Total net revenue	$ 22,251	$ 24,721	$ 66,107	$ 77,262
Due To/From [Abstract]
Due from related party, net, non-current	239		239		$ 440
Related Party
Due To/From [Abstract]
Due from related party, net, current	386		386		378
Due from related party, net, non-current	239		239		440
Due to related party, current	1,246		1,246		2,067
Due to related party, non-current	11		11		0
Related Party | Other current assets | VMware, Inc.
Deferred Costs:
Total deferred charges	2,926		2,926		3,000
Related Party | Other non-current assets | VMware, Inc.
Deferred Costs:
Total deferred charges	2,201		2,201		$ 2,537
Products
Related Party Transaction [Line Items]
Total net revenue	16,233	18,938	48,204	60,212
Products | Related Party
Related Party Transaction [Line Items]
Total net revenue	16	49	94	130
Cost of net revenue - products and services	379	281	970	962
Services
Related Party Transaction [Line Items]
Total net revenue	6,018	5,783	17,903	17,050
Services | Related Party
Related Party Transaction [Line Items]
Cost of net revenue - products and services	$ 884	$ 733	$ 2,640	$ 2,204

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RELATED PARTY TRANSACTIONS - Narrative (Details) - Tax Agreement - Related Party - USD ($) $ in Millions	9 Months Ended
	Nov. 03, 2023	Feb. 03, 2023
Related Party Transaction [Line Items]
Accounts receivable	$ 484	$ 599
Transition tax, expected payment period	2 years
Income taxes receivable	$ 95	$ 146

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SEGMENT INFORMATION - Narrative (Details)	9 Months Ended
	Nov. 03, 2023 segment
Segment Reporting [Abstract]
Number of reportable segments	2

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SEGMENT INFORMATION - Schedule of Reconciliation of Revenue from Segments to Consolidated Net Revenue (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Nov. 03, 2023	Oct. 28, 2022	Nov. 03, 2023	Oct. 28, 2022
Segment Reporting Information [Line Items]
Total net revenue	$ 22,251	$ 24,721	$ 66,107	$ 77,262
Consolidated operating income (loss)	1,486	1,762	3,720	4,582
Amortization of intangibles	(205)	(245)	(613)	(732)
Operating Segments
Segment Reporting Information [Line Items]
Total net revenue	20,775	23,405	61,754	73,303
Consolidated operating income (loss)	1,994	2,434	5,644	6,655
Operating Segments | Infrastructure Solutions Group
Segment Reporting Information [Line Items]
Total net revenue	8,499	9,630	24,553	28,451
Consolidated operating income (loss)	1,069	1,374	2,858	3,502
Operating Segments | Client Solutions Group
Segment Reporting Information [Line Items]
Total net revenue	12,276	13,775	37,201	44,852
Consolidated operating income (loss)	925	1,060	2,786	3,153
Operating Segments | Other businesses
Segment Reporting Information [Line Items]
Total net revenue	1,474	1,313	4,345	3,951
Consolidated operating income (loss)	(32)	(57)	(112)	(192)
Unallocated transactions
Segment Reporting Information [Line Items]
Total net revenue	2	3	8	8
Consolidated operating income (loss)	2	3	7	4
Other corporate expenses	(41)	(109)	(512)	(401)
Reconciling items
Segment Reporting Information [Line Items]
Impact of purchase accounting	(2)	(21)	(10)	(33)
Amortization of intangibles	(205)	(245)	(613)	(732)
Transaction-related expenses	(3)	(8)	(9)	(16)
Stock-based compensation expense	$ (227)	$ (235)	$ (675)	$ (703)

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SEGMENT INFORMATION - Schedule of Disaggregation of Net Revenue (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Nov. 03, 2023	Oct. 28, 2022	Nov. 03, 2023	Oct. 28, 2022
Disaggregation of Revenue [Line Items]
Total net revenue	$ 22,251	$ 24,721	$ 66,107	$ 77,262
Operating Segments
Disaggregation of Revenue [Line Items]
Total net revenue	20,775	23,405	61,754	73,303
Operating Segments | Infrastructure Solutions Group
Disaggregation of Revenue [Line Items]
Total net revenue	8,499	9,630	24,553	28,451
Operating Segments | Infrastructure Solutions Group | Servers and networking
Disaggregation of Revenue [Line Items]
Total net revenue	4,656	5,201	12,767	15,458
Operating Segments | Infrastructure Solutions Group | Storage
Disaggregation of Revenue [Line Items]
Total net revenue	3,843	4,429	11,786	12,993
Operating Segments | Client Solutions Group
Disaggregation of Revenue [Line Items]
Total net revenue	12,276	13,775	37,201	44,852
Operating Segments | Client Solutions Group | Commercial
Disaggregation of Revenue [Line Items]
Total net revenue	9,835	10,747	30,251	34,859
Operating Segments | Client Solutions Group | Consumer
Disaggregation of Revenue [Line Items]
Total net revenue	$ 2,441	$ 3,028	$ 6,950	$ 9,993

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SUPPLEMENTAL CONSOLIDATED FINANCIAL INFORMATION - Schedule of Information on Selected Assets (Details) - USD ($) $ in Millions	Nov. 03, 2023	Feb. 03, 2023	Oct. 28, 2022	Jan. 28, 2022
Cash, cash equivalents, and restricted cash:
Cash and cash equivalents	$ 8,298	$ 8,607
Restricted cash - other current assets	145	272
Restricted cash - other non-current assets	5	15
Total cash, cash equivalents, and restricted cash	8,448	8,894	$ 5,224	$ 10,082
Inventories:
Production materials	1,875	3,225
Work-in-process	679	708
Finished goods	827	843
Total inventories	3,381	4,776
Deferred Costs:
Total deferred costs, current	5,494	5,459
Property, plant, and equipment, net:
Total property, plant, and equipment	13,738	13,092
Accumulated depreciation and amortization	(7,516)	(6,883)
Total property, plant, and equipment, net	6,222	6,209
Computer equipment
Property, plant, and equipment, net:
Total property, plant, and equipment	7,534	6,899
Land and buildings
Property, plant, and equipment, net:
Total property, plant, and equipment	2,894	3,059
Machinery and other equipment
Property, plant, and equipment, net:
Total property, plant, and equipment	$ 3,310	$ 3,134

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SUPPLEMENTAL CONSOLIDATED FINANCIAL INFORMATION - Schedule of Liability for Standard Limited Warranties (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Nov. 03, 2023	Oct. 28, 2022	Nov. 03, 2023	Oct. 28, 2022
Warranty liability:
Warranty liability at beginning of period	$ 439	$ 463	$ 467	$ 480
Costs accrued for new warranty contracts and changes in estimates for pre-existing warranties	208	243	605	710
Service obligations honored	(203)	(241)	(628)	(725)
Warranty liability at end of period	$ 444	$ 465	$ 444	$ 465

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SUPPLEMENTAL CONSOLIDATED FINANCIAL INFORMATION - Schedule of Activity Related to Severance Liability (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Nov. 03, 2023	Oct. 28, 2022	Nov. 03, 2023	Oct. 28, 2022
Severance liability:
Severance liability at beginning of period	$ 457	$ 88	$ 408	$ 74
Severance charges	22	97	434	160
Cash paid and other	(277)	(105)	(640)	(154)
Severance liability at end of period	$ 202	$ 80	$ 202	$ 80

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SUPPLEMENTAL CONSOLIDATED FINANCIAL INFORMATION - Schedule of Severance Charges (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Nov. 03, 2023	Oct. 28, 2022	Nov. 03, 2023	Oct. 28, 2022
Restructuring Cost and Reserve [Line Items]
Total severance charges	$ 22	$ 97	$ 434	$ 160
Cost of net revenue
Restructuring Cost and Reserve [Line Items]
Total severance charges	7	21	54	22
Selling, general, and administrative
Restructuring Cost and Reserve [Line Items]
Total severance charges	14	57	365	114
Research and development
Restructuring Cost and Reserve [Line Items]
Total severance charges	$ 1	$ 19	$ 15	$ 24

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SUPPLEMENTAL CONSOLIDATED FINANCIAL INFORMATION - Narrative (Details) - Supply Chain Finance Program - Third-Party Financial Institution - USD ($) $ in Billions	9 Months Ended
	Nov. 03, 2023	Feb. 03, 2023
Restructuring Cost and Reserve [Line Items]
Payment term	120 days
Accounts payable	$ 1.0	$ 1.0

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SUPPLEMENTAL CONSOLIDATED FINANCIAL INFORMATION - Schedule of Interest and Other, Net (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Nov. 03, 2023	Oct. 28, 2022	Nov. 03, 2023	Oct. 28, 2022
Interest and other, net:
Investment income, primarily interest	$ 88	$ 21	$ 213	$ 52
Gain (loss) on investments, net	8	44	(36)	(197)
Interest expense	(371)	(272)	(1,128)	(835)
Foreign exchange	(30)	(72)	(127)	(227)
Legal settlement, net	0	(1,000)	0	(1,000)
Other	(1)	(29)	(43)	(73)
Total interest and other, net	$ (306)	$ (1,308)	$ (1,121)	$ (2,280)