XML 39 R27.htm IDEA: XBRL DOCUMENT v3.24.2.u1
SUPPLEMENTAL CONSOLIDATED FINANCIAL INFORMATION
 6 Months Ended
Aug. 02, 2024
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:
 August 2, 2024February 2, 2024
 (in millions)
Cash, cash equivalents, and restricted cash:
Cash and cash equivalents$4,550 $7,366 
Restricted cash - other current assets (a)118 136 
Restricted cash - other non-current assets (a)3 5 
Total cash, cash equivalents, and restricted cash$4,671 $7,507 
Inventories:
Production materials$4,290 $2,321 
Work-in-process730 607 
Finished goods933 694 
Total inventories$5,953 $3,622 
Prepaid expenses:
Total prepaid expenses (b)$762 $589 
Deferred costs:
Total deferred costs, current (b)$5,057 $5,548 
Property, plant, and equipment, net:
Assets in a customer contract$5,123 $5,022 
Computer and other equipment3,714 3,552 
Land and buildings2,813 2,877 
Internal use software2,360 2,166 
Total property, plant, and equipment14,010 13,617 
Accumulated depreciation and amortization(7,710)(7,185)
Total property, plant, and equipment, net$6,300 $6,432 
____________________
(a)    Restricted cash includes cash required to be held in escrow pursuant to DFS securitization arrangements.
(b)    Deferred costs and prepaid expenses are included in other current assets in the Condensed Consolidated Statements of Financial Position. Amounts classified as long-term deferred costs and long-term prepaid expenses 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 EndedSix Months Ended
August 2, 2024August 4, 2023August 2, 2024August 4, 2023
(in millions)
Warranty liability:
Warranty liability at beginning of period$426 $438 $426 $467 
Costs accrued for new warranty contracts and changes in estimates for pre-existing warranties (a)216 202 445 398 
Service obligations honored(203)(201)(432)(426)
Warranty liability at end of period$439 $439 $439 $439 
____________________
(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 within 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 EndedSix Months Ended
 August 2, 2024August 4, 2023August 2, 2024August 4, 2023
(in millions)
Severance liability:
Severance liability at beginning of period$194 $162 $352 $408 
Severance charges328 364 420 412 
Cash paid and other(130)(69)(380)(363)
Severance liability at end of period$392 $457 $392 $457 

The following table presents severance charges as included in the Condensed Consolidated Statements of Income for the periods indicated:
Three Months EndedSix Months Ended
 August 2, 2024August 4, 2023August 2, 2024August 4, 2023
(in millions)
Severance charges:
Cost of net revenue$56 $27 $85 $48 
Selling, general, and administrative227 324 270 350 
Research and development45 13 65 14 
Total severance charges$328 $364 $420 $412 
Supply Chain Finance Program

The Company maintains a Supply Chain Finance Program (the “SCF Program”), which enables eligible suppliers, 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, no economic interest in a supplier's decision to sell a receivable, and 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. As of August 2, 2024 and February 2, 2024, the Company had $1.2 billion and $1.1 billion, respectively, included within accounts payable on the Condensed Consolidated Statements of Financial Position 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 as included in the Condensed Consolidated Statements of Income for the periods indicated:
Three Months EndedSix Months Ended
August 2, 2024August 4, 2023August 2, 2024August 4, 2023
(in millions)
Interest and other, net:
Investment income, primarily interest$38 $66 $92 $125 
Gain (loss) on investments, net5 (29)(25)(44)
Interest expense(387)(352)(730)(757)
Foreign exchange(13)(65)(51)(97)
Other4 (71)(12)(42)
Total interest and other, net$(353)$(451)$(726)$(815)