Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jul. 29, 2016 | Aug. 29, 2016 | |
Entity Information [Line Items] | ||
Entity Registrant Name | Dell Technologies Inc. | |
Entity Central Index Key | 1,571,996 | |
Current Fiscal Year End Date | --02-03 | |
Entity Filer Category | Non-accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jul. 29, 2016 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Series A | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 306,528,252 | |
Series B | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 98,181,818 | |
Series C | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 327,561 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION - USD ($) $ in Millions | Jul. 29, 2016 | Jan. 29, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 7,226 | $ 6,322 |
Accounts receivable, net | 5,257 | 4,848 |
Short-term financing receivables, net | 2,867 | 2,915 |
Inventories, net | 1,446 | 1,619 |
Other current assets | 3,326 | 3,497 |
Current assets held for sale | 4,125 | 4,372 |
Total current assets | 24,247 | 23,573 |
Restricted cash (Note 5) | 23,285 | 0 |
Property, plant, and equipment, net | 1,562 | 1,649 |
Long-term investments | 104 | 114 |
Long-term financing receivables, net | 2,271 | 2,177 |
Goodwill | 8,406 | 8,406 |
Intangible assets, net | 7,595 | 8,577 |
Other non-current assets | 1,446 | 626 |
Total assets | 68,916 | 45,122 |
Current liabilities: | ||
Short-term debt | 2,500 | 2,981 |
Accounts payable | 14,050 | 12,746 |
Accrued and other | 3,835 | 4,217 |
Short-term deferred revenue | 3,916 | 3,632 |
Current liabilities held for sale | 1,522 | 1,829 |
Total current liabilities | 25,823 | 25,405 |
Long-term debt (Note 5) | 33,836 | 10,650 |
Long-term deferred revenue | 4,154 | 4,089 |
Other non-current liabilities | 2,733 | 3,406 |
Total liabilities | 66,546 | 43,550 |
Commitments and contingencies (Note 9) | ||
Redeemable shares | 179 | 106 |
Stockholders' equity: | ||
Common stock and capital in excess of $.01 par value, net of treasury stock; shares authorized: 700 (Series A: 350, Series B: 150, Series C: 200); shares issued and outstanding: 405 (Series A: 307, Series B: 98) and 405 (Series A: 307, Series B: 98), respectively | 5,682 | 5,727 |
Accumulated deficit | (3,309) | (3,937) |
Accumulated other comprehensive loss | (308) | (324) |
Total Dell Technologies Inc. stockholders’ equity | 2,065 | 1,466 |
Non-controlling interest | 126 | 0 |
Total stockholders' equity | 2,191 | 1,466 |
Total liabilities, redeemable shares, and stockholders' equity | $ 68,916 | $ 45,122 |
CONDENSED CONSOLIDATED STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION - Parenthetical - USD ($) $ in Millions | Jul. 29, 2016 | Jan. 29, 2016 |
Common stock and capital in excess of $.01 par value, net of treasury stock; shares authorized: 700 (Series A: 350, Series B: 150, Series C: 200); shares issued and outstanding: 405 (Series A: 307, Series B: 98) and 405 (Series A: 307, Series B: 98), respectively | $ 5,682 | $ 5,727 |
Par value (in dollars per share) | $ 0.01 | $ 0.01 |
Shares authorized | 700,000,000 | 700,000,000 |
Shares issued | 405,000,000 | 405,000,000 |
Shares outstanding | 405,000,000 | 405,000,000 |
Series A | ||
Shares authorized | 350,000,000 | 350,000,000 |
Shares issued | 307,000,000 | 307,000,000 |
Shares outstanding | 307,000,000 | 307,000,000 |
Series B | ||
Shares authorized | 150,000,000 | 150,000,000 |
Shares issued | 98,000,000 | 98,000,000 |
Shares outstanding | 98,000,000 | 98,000,000 |
Series C | ||
Shares authorized | 200,000,000 | 200,000,000 |
CONDENSED CONSOLIDATED STATEME4
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 29, 2016 | Jul. 31, 2015 | Jul. 29, 2016 | Jul. 31, 2015 | |
Net revenue: | ||||
Products | $ 10,961 | $ 10,938 | $ 21,144 | $ 21,462 |
Services, including software related | 2,089 | 2,037 | 4,119 | 4,038 |
Total net revenue | 13,050 | 12,975 | 25,263 | 25,500 |
Cost of net revenue: | ||||
Products | 9,495 | 9,663 | 18,294 | 19,027 |
Services, including software related | 1,226 | 1,233 | 2,453 | 2,482 |
Total cost of net revenue | 10,721 | 10,896 | 20,747 | 21,509 |
Gross margin | 2,329 | 2,079 | 4,516 | 3,991 |
Operating expenses: | ||||
Selling, general, and administrative | 2,020 | 1,932 | 4,086 | 3,900 |
Research, development, and engineering | 246 | 250 | 510 | 505 |
Total operating expenses | 2,266 | 2,182 | 4,596 | 4,405 |
Operating income (loss) | 63 | (103) | (80) | (414) |
Interest and other, net | 349 | 222 | 568 | 397 |
Loss from continuing operations before income taxes | (286) | (325) | (648) | (811) |
Income tax provision (benefit) | (22) | (33) | 42 | (73) |
Net loss from continuing operations | (264) | (292) | (690) | (738) |
Income (loss) from discontinued operations, net of income taxes | 836 | 27 | 1,317 | (31) |
Net income (loss) | 572 | (265) | 627 | (769) |
Less: Net loss attributable to non-controlling interests | (1) | 0 | (1) | 0 |
Net income (loss) | $ 573 | $ (265) | $ 628 | $ (769) |
Earnings (loss) per share attributable to Dell Technologies Inc. - basic: | ||||
Continuing operations (in dollars per share) | $ (0.65) | $ (0.72) | $ (1.70) | $ (1.82) |
Discontinued operations (in dollars per share) | 2.06 | 0.07 | 3.25 | (0.08) |
Earnings (loss) per share - basic (in dollars per share) | 1.41 | (0.65) | 1.55 | (1.90) |
Earnings (loss) per share attributable to Dell Technologies Inc. - diluted: | ||||
Continuing operations (in dollars per share) | (0.65) | (0.72) | (1.70) | (1.82) |
Discontinued operations (in dollars per share) | 2.06 | 0.07 | 3.25 | (0.08) |
Earnings (loss) per share - diluted (in dollars per share) | $ 1.41 | $ (0.65) | $ 1.55 | $ (1.90) |
Weighted-average shares outstanding: | ||||
Basic (in shares) | 405 | 405 | 405 | 405 |
Diluted (in shares) | 405 | 405 | 405 | 405 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 29, 2016 | Jul. 31, 2015 | Jul. 29, 2016 | Jul. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 572 | $ (265) | $ 627 | $ (769) |
Other comprehensive income (loss), net of tax | ||||
Foreign currency translation adjustments | (37) | (14) | 42 | (47) |
Cash flow hedges | ||||
Change in unrealized gains (losses) | 58 | 66 | (107) | 60 |
Reclassification adjustment for net (gains) losses included in net income (loss) | 27 | (88) | 81 | (272) |
Net change | 85 | (22) | (26) | (212) |
Total other comprehensive income (loss), net of tax benefit (expense) of $(6) and $(5), respectively and $5 and $8, respectively | 48 | (36) | 16 | (259) |
Comprehensive income (loss), net of tax | 620 | (301) | 643 | (1,028) |
Less: Net loss attributable to non-controlling interests | 1 | 0 | 1 | 0 |
Less: Other comprehensive income (loss) attributable to non-controlling interests | 0 | 0 | 0 | 0 |
Comprehensive income (loss), net of tax | $ 621 | $ (301) | $ 644 | $ (1,028) |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - Parenthetical - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 29, 2016 | Jul. 31, 2015 | Jul. 29, 2016 | Jul. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Tax benefit (expense) | $ (6) | $ (5) | $ 5 | $ 8 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 6 Months Ended | |
Jul. 29, 2016 | Jul. 31, 2015 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 627 | $ (769) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 1,321 | 1,437 |
Stock-based compensation expense | 34 | 34 |
Effects of exchange rate changes on monetary assets and liabilities denominated in foreign currencies | 47 | 53 |
Deferred income taxes | (1,619) | (216) |
Provision for doubtful accounts — including financing receivables | 45 | 76 |
Other | 50 | 49 |
Changes in assets and liabilities, net of effects from acquisitions: | ||
Accounts receivable | (380) | (175) |
Financing receivables | (74) | (268) |
Inventories | 171 | 150 |
Other assets | 127 | 298 |
Accounts payable | 1,232 | 68 |
Deferred revenue | 286 | 459 |
Accrued and other liabilities | (52) | (464) |
Change in cash from operating activities | 1,815 | 732 |
Investments: | ||
Purchases | (8) | (26) |
Maturities and sales | 18 | 1 |
Capital expenditures | (235) | (230) |
Proceeds from sale of facilities, land, and other assets | 19 | 85 |
Collections on purchased financing receivables | 25 | 49 |
Divestitures of businesses, net of cash transferred | 0 | 8 |
Other | (40) | 0 |
Change in cash from investing activities | (221) | (113) |
Cash flows from financing activities: | ||
Payment of dissenting shares obligation | (446) | 0 |
Repurchases of common stock | (2) | 0 |
Contributions from non-controlling interests, net | 100 | 0 |
Issuance of common stock under employee plans | 0 | 2 |
Payments for debt issuance costs | (15) | (7) |
Proceeds from debt | 2,148 | 3,078 |
Repayments of debt | (2,638) | (2,749) |
Other | 4 | 3 |
Change in cash from financing activities | (849) | 327 |
Effect of exchange rate changes on cash and cash equivalents | 52 | (50) |
Change in cash and cash equivalents | 797 | 896 |
Cash and cash equivalents at beginning of the period | 6,576 | 5,398 |
Cash and cash equivalents at end of the period | 7,373 | 6,294 |
Less: Cash included in assets held for sale | 147 | 295 |
Cash and cash equivalents from continuing operations | $ 7,226 | $ 5,999 |
EMC MERGER TRANSACTION, DIVESTI
EMC MERGER TRANSACTION, DIVESTITURES AND BASIS OF PRESENTATION | 6 Months Ended |
Jul. 29, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
EMC MERGER TRANSACTION, DIVESTITURES AND BASIS OF PRESENTATION | EMC MERGER TRANSACTION, DIVESTITURES AND BASIS OF PRESENTATION EMC Merger Transaction — On October 12, 2015, Dell Technologies Inc. (formerly Denali Holding Inc., referred to as Parent or Dell Technologies) entered into an agreement and plan of merger (the “EMC merger agreement”) with EMC Corporation (“EMC”), Dell Inc. (“Dell”) and Universal Acquisition Co., a direct wholly-owned subsidiary of Parent (“EMC Merger Sub”). Pursuant to the EMC merger agreement, EMC Merger Sub will merge with and into EMC (“the EMC merger”), with EMC continuing as the surviving corporation and a wholly-owned subsidiary of Parent. Upon the closing of the EMC merger, each share of EMC common stock, par value $0.01 per share (“EMC common stock”) owned immediately prior to the effective time of the EMC merger (other than shares owned by Parent, EMC Merger Sub, EMC or any of its wholly-owned subsidiaries, and other than shares with respect to which EMC’s shareholders are entitled to and properly exercise appraisal rights) automatically will be converted into the right to receive the merger consideration, consisting of (1) $24.05 in cash, without interest, and (2) a number of shares of validly issued, fully paid and non-assessable Class V common stock of Parent (the “Class V Common Stock”) equal to the quotient (rounded to the nearest five decimal points) obtained by dividing (A) 222,966,450 by (B) the aggregate number of shares of EMC common stock issued and outstanding immediately prior to the effective time of the EMC merger, plus cash in lieu of any fractional shares. No fractional shares of Class V Common Stock will be issued in the EMC merger. The approximately 223 million shares of Class V Common Stock issuable in the EMC merger (assuming EMC shareholders are not entitled to or do not properly exercise appraisal rights) are intended to track and reflect the economic performance of approximately 65% of EMC’s current economic interest in the business of VMware, Inc. (“VMware”), which currently consists of approximately 343 million shares of VMware common stock. Based on the number of shares of EMC common stock Parent currently expects will be issued and outstanding immediately prior to the completion of the EMC merger, it is estimated that EMC shareholders will receive in the EMC merger approximately 0.111 shares of Class V Common Stock for each share of EMC common stock. The EMC merger will be financed with a combination of equity and debt financing and cash on hand. As of September 6, 2016 , Parent has obtained committed equity financing for up to $4.4 billion in the aggregate from Michael S. Dell, Chairman, Chief Executive Officer and founder of Dell, a separate property trust for the benefit of Mr. Dell's wife, MSDC Denali Investors, L.P. and MSDC Denali EIV, LLC (the “MSD Partners Funds”), funds affiliated with Silver Lake Partners, and an affiliate of Temasek Holdings (Private) Limited. Parent also has obtained debt financing commitments for up to $26.3 billion in the aggregate from financial institutions for the purpose of financing the EMC merger and refinancing certain existing indebtedness of Parent and EMC. The obligations of the lenders under Parent’s debt financing commitments are subject to a number of customary conditions. During the three months ended July 29, 2016 , subsidiaries of Parent issued a total of $20.0 billion of First Lien Notes and $3.25 billion of Senior Unsecured Notes, the proceeds of which will be applied to finance the EMC merger upon closing. Parent’s debt financing commitments will terminate upon the earlier of the termination of the EMC merger agreement in accordance with its terms or December 16, 2016. In addition, each of Parent and EMC has agreed to make available a certain amount of cash on hand (at least $2.95 billion , in the case of Parent, and $4.75 billion , in the case of EMC) at the completion of the EMC merger for the purpose of financing the transactions contemplated by the EMC merger agreement. The completion of the EMC merger is subject to specified conditions, including (a) approval by EMC’s shareholders, which was obtained at a special meeting held on July 19, 2016, (b) the absence of an order or law prohibiting consummation of the transactions contemplated by the EMC merger agreement, (c) the effectiveness of the registration statement of Parent registering the shares of Class V Common Stock issuable in connection with the EMC merger and (d) the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and the receipt of certain foreign antitrust approvals. In addition, each party’s obligation to consummate the EMC merger is subject to other conditions, including (1) the accuracy of the other party’s representations and warranties (including the absence of a material adverse effect), (2) the other party’s compliance with its obligations, (3) receipt by each party of an opinion of counsel, dated as of the date of the EMC merger, as to certain tax matters and (4) the listing of the Class V Common Stock on the New York Stock Exchange or the Nasdaq Stock Market. Parent has applied to list the Class V Common Stock on the New York Stock Exchange. The EMC merger agreement contains specified termination rights for both Parent and EMC, including that either party may terminate the EMC merger agreement if the EMC merger is not consummated by December 16, 2016, if any governmental authority has adopted any law or regulation prohibiting or rendering the consummation of the EMC merger permanently illegal, or if any governmental authority has issued an order, decree or ruling or taken any other action permanently restraining, enjoining or otherwise prohibiting the EMC merger, and such order, decree or ruling has become final and nonappealable. If the EMC merger agreement is terminated under certain specified circumstances, including in connection with EMC’s entry into a definitive agreement for a superior proposal, EMC must pay Parent a termination fee of $2.5 billion . Further, if the EMC merger agreement is terminated under specified circumstances and, within 12 months after the termination, EMC enters into a definitive agreement providing for, or consummates, an acquisition proposal, EMC will be obligated to pay Parent a termination fee of $2.5 billion . The EMC merger agreement also provides that Parent and Dell will be obligated to pay EMC a reverse termination fee of $4 billion under specified circumstances and, in certain instances, an alternative reverse termination fee of $6 billion . Other than the recognition of certain expenses related to the EMC merger and interest expense associated with the issuance of the First Lien Notes and the Senior Unsecured Notes referred to above, the proceeds of which are held in escrow, there was no impact of the EMC merger on the accompanying Unaudited Condensed Consolidated Financial Statements. See Note 5 of the Notes to the Unaudited Condensed Consolidated Financial Statements for additional information. Divestitures — On March 27, 2016, Dell entered into a definitive agreement with NTT Data International L.L.C. to divest substantially all of Dell Services for cash consideration of approximately $3.1 billion . On June 19, 2016, Dell entered into a definitive agreement with Francisco Partners and Elliot Management Corporation to divest substantially all of Dell Software Group ("DSG") for cash consideration of approximately $2.4 billion . In accordance with applicable accounting guidance, the results of Dell Services and DSG are presented as discontinued operations in the Condensed Consolidated Statements of Income (Loss) and, as such, have been excluded from both continuing operations and segment results for all periods presented. Further, the Company has reclassified the related assets and liabilities as held for sale in the accompanying Condensed Consolidated Statements of Financial Position. See Note 2 of the Notes to the Unaudited Condensed Consolidated Financial Statements for additional information. SecureWorks Initial Public Offering — On April 27, 2016, SecureWorks Corp. (“SecureWorks”) completed a registered underwritten initial public offering ("IPO") of its Class A common stock. Prior to the IPO, Dell Technologies owned indirectly, through Dell and Dell's subsidiaries, 100% of the outstanding equity interest in SecureWorks. As of July 29, 2016 , Dell Technologies held approximately 86.8% of the outstanding equity interest in SecureWorks, which represented approximately 98.5% of the combined voting power of both classes of the SecureWorks common stock outstanding. The results of the SecureWorks operations are recorded in Corporate. See Note 12 and Note 15 of the Notes to the Unaudited Condensed Consolidated Financial Statements for more information. Going-Private Transaction — On October 29, 2013, Dell was acquired by Dell Technologies in a merger transaction pursuant to an agreement and plan of merger, dated as of February 5, 2013, as amended. Dell Technologies is a Delaware corporation owned by Michael S. Dell and a separate property trust for the benefit of Mr. Dell’s wife, investment funds affiliated with Silver Lake Partners, the MSD Partners Funds, and certain members of Dell’s management and other investors. Mr. Dell serves as Chairman and Chief Executive Officer of Dell Technologies and Dell. Basis of Presentation — The accompanying 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 Dell Technologies Inc. (individually and together with its consolidated subsidiaries, "the Company") as of July 29, 2016 and January 29, 2016 , the results of its operations and corresponding comprehensive income (loss) for the three and six months ended July 29, 2016 and July 31, 2015 , and its cash flows for the six months ended July 29, 2016 and July 31, 2015 . The accompanying Unaudited Condensed Consolidated Financial Statements should be read in conjunction with the Audited Consolidated Financial Statements and accompanying Notes for the fiscal year ended January 29, 2016 ("Fiscal 2016 ") included in the proxy statement/prospectus dated June 6, 2016 forming part of the Company’s registration statement on Form S-4 (Registration No. 333 208524). The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in the Company's Condensed Consolidated Financial Statements and the accompanying Notes. Actual results could differ materially from those estimates. The results of operations, comprehensive income (loss), and cash flows for the three and six months ended July 29, 2016 and July 31, 2015 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 ending February 3, 2017 (" Fiscal 2017 ") will be a 53-week period. Recently Issued Accounting Pronouncements Revenue from Contracts with Customers — In May 2014, the Financial Accounting Standards Board ("FASB") issued amended guidance on the recognition of revenue from contracts with customers. The objective of the new standard is to establish a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and will supersede most of the existing revenue recognition guidance, including industry-specific guidance. The new standard requires entities to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In August 2015, the FASB approved a one-year deferral of the effective date of this standard. Public entities are required to adopt the new standard for fiscal years, and interim periods within those years, beginning after December 15, 2017, with the option of applying the standard as early as the original effective date for public entities. The new revenue standard may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. The Company is currently evaluating the impact of the new guidance, the effective date, and the method of adoption. Presentation of Debt Issuance Costs — In April 2015, the FASB issued amended guidance which changes the classification of debt issuance costs in the Consolidated Statements of Financial Position. The new guidance requires debt issuance costs to be presented as a direct deduction from the carrying amount of the related debt liability consistent with the presentation of debt discounts, rather than as an asset as currently presented. The guidance related to recognition and measurement of debt issuance costs remains unchanged. The Company implemented the new presentation in the six months ended July 29, 2016 on a retrospective basis, and except for the reclassification of debt issuance costs of $128 million as of January 29, 2016 in the accompanying Condensed Consolidated Statements of Financial Position, there was no other impact to the Consolidated Financial Statements. Recognition and Measurement of Financial Assets and Financial Liabilities — In January 2016, the FASB issued amended guidance on Recognition and Measurement of Financial Assets and Financial Liabilities. The standard addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. Public entities must adopt the new guidance for fiscal years, and interim periods within those years, beginning after December 15, 2017. The Company is currently evaluating the impact that the standard will have on the Consolidated Financial Statements. Leases — In February 2016, the FASB issued amended guidance on the accounting for leasing transactions. The primary objective of this update is to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. Public entities must adopt the new guidance for reporting periods beginning after December 15, 2018, with early adoption permitted. Companies are required to use a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements. The Company is currently evaluating the impact that the standard will have on the Consolidated Financial Statements. Improvements to Employee Share-Based Payment Accounting — In March 2016, the FASB issued amended guidance on the accounting for employee share-based payments. The topics that were amended in the update involve several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Public entities must adopt the new guidance for fiscal years, and interim periods within those years, beginning after December 2016. The Company is currently evaluating the impact that the standard will have on the Consolidated Financial Statements. Measurement of Credit Losses on Financial Instruments — In June 2016, the FASB issued amended guidance which replaces the current incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. Public entities must adopt the new guidance for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. All entities may adopt the amendments in the new standard as of fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. However, earlier adoption is not permitted. The Company is currently evaluating the impact that the standard will have on the Consolidated Financial Statements. |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 6 Months Ended |
Jul. 29, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISCONTINUED OPERATIONS | DISCONTINUED OPERATIONS Dell Services Divestiture — On March 27, 2016, Dell entered into a definitive agreement with NTT Data International L.L.C. to divest substantially all of Dell Services, including the Dell Services Federal Government business. Dell Services includes business process outsourcing, application management, and infrastructure services. The pending transaction does not include the global support, deployment, and professional services offerings. At the completion of the sale, total cash consideration, which may vary due to adjustments included in the transaction agreement, is expected to be between $2.9 billion and $3.1 billion , which would result in an estimated pre-tax gain on sale of approximately $1.7 billion to $2.0 billion . The pending transaction is expected to close in the fourth quarter of Fiscal 2017, subject to the satisfaction of customary closing conditions, including approvals from regulatory authorities. In connection with the sale, the Company expects to enter into various agreements that will provide a framework for the relationships between the parties after the sale, including, among others, a transition services agreement, intellectual property license agreements, and commercial support agreements. Dell Software Group Divestiture — On June 19, 2016, Dell entered into a definitive agreement with Francisco Partners and Elliot Management Corporation to divest substantially all of DSG. The pending transaction includes DSG's systems and information management, security solutions, and Statistica businesses. The pending transaction does not include the Company's cloud integration business. At the completion of the sale, total cash consideration, which may vary due to the available cash balance held by DSG as well as other adjustments included in the transaction agreement, is expected to be between $2.3 billion and $2.6 billion , which would result in an estimated pre-tax gain on sale of approximately $1.0 billion to $1.3 billion . The pending transaction is expected to close in the fourth quarter of Fiscal 2017, subject to the satisfaction of customary closing conditions, including approvals from regulatory authorities. Discontinued Operations Presentation — In accordance with applicable accounting guidance, the Company concluded that Dell Services and DSG have met the criteria for discontinued operations reporting as of March 27, 2016 and June 19, 2016, respectively. Accordingly, the Company reclassified the financial results of Dell Services and DSG to discontinued operations in the Condensed Consolidated Statements of Income (Loss) for all periods presented. These financial results are presented as “ Income (loss) from discontinued operations, net of income taxes ” on the accompanying Condensed Consolidated Statements of Income (Loss) for the three and six months ended July 29, 2016 and July 31, 2015 . The Company reclassified the related assets and liabilities as “ Current assets held for sale ” and “ Current liabilities held for sale ” on the accompanying Condensed Consolidated Statements of Financial Position as of July 29, 2016 and January 29, 2016 . Cash flows from the Company's discontinued operations are included in the Condensed Consolidated Statements of Cash Flows. Dell Services The following table presents key financial results of Dell Services included in “ Income (loss) from discontinued operations, net of income taxes ” for the three and six months ended July 29, 2016 and July 31, 2015 : Three Months Ended Six Months Ended July 29, 2016 July 31, 2015 July 29, 2016 July 31, 2015 (in millions) Net revenue $ 694 $ 694 $ 1,368 $ 1,394 Cost of net revenue 536 546 1,077 1,138 Operating expenses 98 105 211 207 Income from discontinued operations before income taxes 60 43 80 49 Income tax provision (benefit) (a) (453 ) 14 (914 ) 48 Income from discontinued operations, net of income taxes $ 513 $ 29 $ 994 $ 1 ____________________ (a) The tax benefits recorded during the three and six months ended July 29, 2016 were $0.5 billion and $0.9 billion , respectively. The additional tax benefit recorded in the three months ended July 29, 2016 was primarily due to the reversal of a valuation allowance for deferred tax assets that the Company now expects to utilize as a result of the DSG divestiture. The following table presents the major classes of assets and liabilities as of July 29, 2016 and January 29, 2016 related to Dell Services which were classified as held for sale: July 29, 2016 January 29, 2016 (in millions) ASSETS Current assets: Accounts receivable, net $ 488 $ 443 Other current assets 68 73 Total current assets 556 516 Property, plant, and equipment, net 545 515 Goodwill 252 252 Intangible assets, net 376 388 Other non-current assets 16 50 Total assets $ 1,745 $ 1,721 LIABILITIES Current liabilities: Accounts payable $ 147 $ 173 Accrued and other 160 180 Short-term deferred revenue 77 82 Total current liabilities 384 435 Long-term deferred revenue 47 53 Other non-current liabilities — 126 Total liabilities $ 431 $ 614 The significant cash flow items from Dell Services for the six months ended July 29, 2016 and July 31, 2015 were as follows: Six Months Ended July 29, 2016 July 31, 2015 (in millions) Depreciation and amortization (a) $ 32 $ 110 Capital expenditures $ (47 ) $ (41 ) ____________________ (a) Amounts represent depreciation and amortization recognized up until March 27, 2016, the date Dell Services met the criteria for discontinued operations reporting. Depreciation and amortization ceased upon determination that the held for sale criteria were met. Dell Software Group The following table presents key financial results of DSG included in “ Income (loss) from discontinued operations, net of income taxes ” for the three and six months ended July 29, 2016 and July 31, 2015 : Three Months Ended Six Months Ended July 29, 2016 July 31, 2015 July 29, 2016 July 31, 2015 (in millions) Net revenue $ 321 $ 330 $ 642 $ 643 Cost of net revenue 85 89 175 185 Operating expenses 239 220 488 461 Interest and other, net (7 ) (2 ) 7 (6 ) Income (loss) from discontinued operations before income taxes (10 ) 19 (14 ) (9 ) Income tax provision (benefit) (a) (333 ) 21 (337 ) 23 Income (loss) from discontinued operations, net of income taxes $ 323 $ (2 ) $ 323 $ (32 ) ____________________ (a) The tax benefits of $333 million and $337 million for the three and six months ended July 29, 2016 , respectively, were primarily due to the Company's determination that it could no longer assert permanent reinvestment in the outside basis of the entities that will be divested. The following table presents the major classes of assets and liabilities as of July 29, 2016 and January 29, 2016 related to DSG which were classified as held for sale: July 29, 2016 January 29, 2016 (in millions) ASSETS Current assets: Cash and cash equivalents $ 147 $ 254 Accounts receivable, net 210 244 Inventories, net 20 24 Other current assets 9 11 Total current assets 386 533 Property, plant, and equipment, net 111 106 Goodwill 1,391 1,391 Intangible assets, net 557 613 Other non-current assets (a) 10 8 Total assets $ 2,455 $ 2,651 LIABILITIES Current liabilities: Accounts payable 20 15 Accrued and other 124 160 Short-term deferred revenue 603 625 Total current liabilities 747 800 Long-term deferred revenue 340 333 Other non-current liabilities (a) 79 82 Total liabilities $ 1,166 $ 1,215 ____________________ (a) Other non-current liabilities includes a $75 million deferred tax liability as of July 29, 2016 that is reflected in current assets held for sale on the Condensed Consolidated Statements of Financial Position due to jurisdictional netting of deferred taxes. The significant cash flow items from DSG for the six months ended July 29, 2016 and July 31, 2015 were as follows: Six Months Ended July 29, 2016 July 31, 2015 (in millions) Depreciation and amortization (a) $ 66 $ 83 Capital expenditures $ (15 ) $ (15 ) ____________________ (a) Amounts represent depreciation and amortization recognized up until June 19, 2016, the date DSG met the criteria for discontinued operations reporting. Depreciation and amortization ceased upon determination that the held for sale criteria were met. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Jul. 29, 2016 | |
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 July 29, 2016 and January 29, 2016 : July 29, 2016 (a) January 29, 2016 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Quoted Significant Significant Quoted Significant Significant (in millions) Assets: Cash equivalents: Money market funds $ 4,406 $ — $ — $ 4,406 $ 3,832 $ — $ — $ 3,832 Derivative instruments — 87 — 87 — 195 — 195 Common stock purchase agreement — — — — — — 10 10 Restricted cash: Money market funds 23,285 — — 23,285 — — — — Total assets $ 27,691 $ 87 $ — $ 27,778 $ 3,832 $ 195 $ 10 $ 4,037 Liabilities: Derivative instruments $ — $ 28 $ — $ 28 $ — $ 12 $ — $ 12 Debt - Other — — — — — — 28 28 Common stock purchase agreement — — 1 1 — — — — Total liabilities $ — $ 28 $ 1 $ 29 $ — $ 12 $ 28 $ 40 ____________________ (a) The Company did not transfer any securities between levels during the six months ended July 29, 2016 . The following section describes the valuation methodologies the Company uses to measure financial instruments at fair value: Money Market Funds — The Company's money market funds that are classified as cash equivalents have original maturities 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 liquidity on a quarterly basis. During the three months ended July 29, 2016 , the Company issued $23.25 billion of debt securities in connection with the pending EMC merger transaction. The net proceeds were deposited directly into escrow and invested in money market funds. As of July 29, 2016 , these money market funds had a carrying value of approximately $23.3 billion , which was included in restricted cash and classified as non-current on the Condensed Consolidated Statements of Financial Position as the funds will be used to consummate the EMC merger transaction. 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 instrument portfolio. See Note 6 of the Notes to the Unaudited Condensed Consolidated Financial Statements for a description of the Company's derivative financial instrument activities. Debt - Other — As of January 29, 2016 , the Company recognized a portion of its short-term debt at fair value. This debt was represented by promissory notes issued on August 3, 2015 and September 14, 2015, which were extinguished during the six months ended July 29, 2016 . The Company determined fair value using a discounted cash flow model which included significant unobservable inputs and assumptions. The unobservable inputs used include projected cash outflows over varying possible maturity dates, weighted by the probability of those possible outcomes, along with assumed discount rates. Common Stock Purchase Agreements — The equity financing agreements obtained by Parent in connection with the EMC merger transaction described in Note 1 of the Notes to the Unaudited Condensed Consolidated Financial Statements permit Michael S. Dell, the MSD Partners Funds, Silver Lake Partners, and Temasek Holdings (Private) Limited ("Temasek") to purchase Parent common stock at a fixed price per share contingent on the closing of the EMC merger transaction. Each agreement also provides for a price protection in the event additional equity investors purchase Parent common stock at a lower price. The agreements with Michael S. Dell, the MSD Partners Funds, and Silver Lake Partners are not required to be remeasured to fair value and are effectively capital commitments, because of the degree of control and influence such persons can exercise over Parent, including control over when and at what price Parent will issue new shares, as well as the fact that the equity agreements were entered into solely for the purpose of financing the EMC merger transaction. The provision relating to price protection is considered substantive to Temasek as an unrelated party. Consequently, the Company has recognized the contract as an asset or liability, initially recorded at fair value of zero, with subsequent changes in fair value recorded in earnings. As of July 29, 2016 , the Company recorded a liability of $1 million related to the Temasek equity contract. The Company determined the fair value of this forward contract using a Black-Scholes valuation model, which included significant unobservable inputs and assumptions. The unobservable inputs used include the current value of the Parent common stock, which was estimated based on a combination of a discounted cash flow methodology and a market approach, the probability of the EMC merger occurring, the time period to contract expiration, and the probability that Parent will issue its shares below the foregoing fixed price per share. Varying these inputs could materially alter the fair value recognized for this instrument. 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 and investments accounted for under the cost method. See Note 7 of the Notes to the Unaudited Condensed Consolidated Financial Statements for additional information about goodwill and intangible assets. Investments accounted for under the cost method are measured at fair value initially. Subsequently, when there is an indicator of impairment, the impairment is recognized. Carrying Value and Estimated Fair Value of Outstanding Debt — The following table summarizes the carrying value and estimated fair value of the Company's outstanding debt as described in Note 5 of the Notes to the Unaudited Condensed Consolidated Financial Statements , including the current portion, as of the dates indicated: July 29, 2016 January 29, 2016 Carrying Value Fair Value Carrying Value Fair Value (in billions) Term Loan Facilities $ 5.9 $ 6.1 $ 6.1 $ 6.2 Senior First Lien Notes $ 1.4 $ 1.5 $ 1.4 $ 1.5 First Lien Notes $ 20.0 $ 21.4 $ — $ — Unsecured Notes and Debentures $ 2.3 $ 2.5 $ 2.7 $ 2.7 Senior Unsecured Notes $ 3.3 $ 3.5 $ — $ — The fair values of the outstanding Term Loan Facilities, Senior First Lien Notes, Unsecured Notes and Debentures issued prior to the going-private transaction and the fair value of the outstanding First Lien Notes and Senior Unsecured Notes issued in connection with the pending EMC merger transaction were determined based on observable market prices in a less active market and were categorized as Level 2 in the fair value hierarchy. The fair values of the other short-term debt and the structured financing debt approximate their carrying values due to their short-term maturities. |
FINANCIAL SERVICES
FINANCIAL SERVICES | 6 Months Ended |
Jul. 29, 2016 | |
Receivables [Abstract] | |
FINANCIAL SERVICES | 90 Days Total Current Past Due 1 — 90 Days Past Due > 90 Days Total (in millions) Revolving — DPA $ 725 $ 84 $ 27 $ 836 $ 812 $ 99 $ 36 $ 947 Revolving — DBC 186 17 4 207 202 20 4 226 Fixed-term — Consumer and Small Commercial 318 13 2 333 315 13 1 329 Fixed-term — Medium and Large Commercial 3,303 129 21 3,453 3,131 171 6 3,308 Total customer receivables, gross $ 4,532 $ 243 $ 54 $ 4,829 $ 4,460 $ 303 $ 47 $ 4,810 Credit Quality The following table summarizes customer receivables, gross, including accrued interest, by credit quality indicator segregated by class, as of July 29, 2016 and January 29, 2016 . The categories shown in the table below segregate customer receivables based on the relative degrees of credit risk. The credit quality indicators for DPA revolving accounts are measured primarily as of each quarter-end date, while all other indicators are generally updated on a periodic basis. For DPA revolving receivables shown in the table below, the Company makes credit decisions based on proprietary scorecards, which include the customer's credit history, payment history, credit usage, and other credit agency-related elements. The higher quality category includes prime accounts generally of a higher credit quality that are comparable to U.S. customer FICO scores of 720 or above. The mid-category represents the mid-tier accounts that are comparable to U.S. customer FICO scores from 660 to 719 . The lower category is generally sub-prime and represents lower credit quality accounts that are comparable to U.S customer FICO scores below 660 . For the DBC revolving receivables and fixed-term commercial receivables shown in the table below, 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. July 29, 2016 January 29, 2016 Higher Mid Lower Total Higher Mid Lower Total (in millions) Revolving — DPA $ 139 $ 248 $ 449 $ 836 $ 148 $ 270 $ 529 $ 947 Revolving — DBC $ 62 $ 61 $ 84 $ 207 $ 68 $ 65 $ 93 $ 226 Fixed-term — Consumer and Small Commercial $ 95 $ 144 $ 94 $ 333 $ 93 $ 136 $ 100 $ 329 Fixed-term — Medium and Large Commercial $ 1,604 $ 1,153 $ 696 $ 3,453 $ 1,597 $ 1,075 $ 636 $ 3,308 Securitizations and Structured Financing Debt The Company transfers certain U.S. customer financing receivables to Special Purpose Entities ("SPEs") that meet the definition of a Variable Interest Entity ("VIE") and are consolidated, along with the associated debt, into the Company's Consolidated Financial Statements, as the Company is the primary beneficiary of those VIEs. These SPEs are bankruptcy remote legal entities with separate assets and liabilities. The purpose of these SPEs is to facilitate the funding of customer receivables in the capital markets. The following table shows financing receivables held by the consolidated VIEs as of the respective dates: July 29, 2016 January 29, 2016 (in millions) Financing receivables held by consolidated VIEs, net: Short-term, net $ 2,057 $ 2,125 Long-term, net 1,255 1,215 Financing receivables held by consolidated VIEs, net $ 3,312 $ 3,340 Financing receivables transferred via securitization through SPEs were $0.8 billion for both the three months ended July 29, 2016 and July 31, 2015 , and $1.4 billion and $1.8 billion for the six months ended July 29, 2016 and July 31, 2015 , respectively. 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. 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 Company's total structured financing debt, which is collateralized by financing receivables in the United States, Canada, and Europe, was $3.5 billion and $3.4 billion as of July 29, 2016 and January 29, 2016 , respectively, under the following programs: • The structured financing debt program in the United States, which is related to the fixed-term lease and loan securitization program and the revolving loan securitization program, was $0.9 billion and $1.3 billion as of July 29, 2016 and January 29, 2016 , respectively. This debt is collateralized solely by the U.S financing receivables in the programs. The debt has a variable interest rate and the duration of this debt is based on the terms of the underlying financing receivables. As of July 29, 2016 , the total debt capacity related to the securitization programs was $2.1 billion . The Company enters into interest swap agreements to effectively convert the portion of its structured financing debt from a floating rate to a fixed rate. See Note 6 of the Notes to the Unaudited Condensed Consolidated Financial Statements for additional information about interest rate swaps. The Company's securitization programs became effective on October 29, 2013. The revolving program, which was extended during the first quarter of Fiscal 2017, is effective for four and one-half years . The fixed term program, which was extended during the first quarter of Fiscal 2016, is effective for four and one-half years . The programs contain 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 July 29, 2016 , these criteria were met. • The Company may periodically issue asset-backed debt securities to private investors. As of July 29, 2016 , the associated debt balance of these securities was $2.0 billion . The asset-backed debt securities are collateralized solely by the U.S. fixed-term financing receivables in the offerings, which are held by SPEs. The interest rate on these securities is fixed and ranges from 0.26% to 3.61% , and the duration of these securities is based on the terms of the underlying financing receivables. • 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 and Europe. As of July 29, 2016 , the Canadian program, which was extended during the six months ended July 29, 2016 , had a total debt capacity of $167 million . This program is effective for two years , beginning on April 15, 2016, and is collateralized solely by the Canadian financing receivables. The European program, which was extended during the three months ended May 1, 2015, is effective for four years , beginning on December 23, 2013. The program is collateralized solely by the European financing receivables and had a total debt capacity of $665 million as of July 29, 2016 . The aggregate outstanding balances of the Canadian and European revolving structured loans as of July 29, 2016 and January 29, 2016 were $580 million and $559 million , respectively. Financing Receivable Sales To manage certain concentrations of customer credit exposure, the Company may sell selected fixed-term financing receivables to unrelated third parties on a periodic basis. The amount of financing receivables sold was $98 million and $31 million during the six months ended July 29, 2016 and July 31, 2015 , respectively." id="sjs-B4">FINANCIAL SERVICES Dell Financial Services The Company offers or arranges various financing options and services for its business and consumer customers in the United States, Canada, Europe, and Mexico through Dell Financial Services and its affiliates (collectively, "DFS"). The key activities of DFS include the origination, collection, and servicing of customer receivables primarily related to the purchase of Dell products and services. New financing originations, which represent the amounts of financing provided by DFS to customers for equipment and related software and services, including third-party originations, were $1.0 billion for both the three months ended July 29, 2016 and July 31, 2015 , and $1.9 billion for both the six months ended July 29, 2016 and July 31, 2015 . The Company's financing receivables are aggregated into the following categories: • Revolving loans — Revolving loans offered under private label credit financing programs provide qualified customers with a revolving credit line for the purchase of products and services offered by Dell. These private label credit financing programs are referred to as Dell Preferred Account ("DPA") and Dell Business Credit ("DBC"). The DPA product is primarily offered to individual consumer customers, and 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. • Fixed-term sales-type leases and loans — The Company enters into sales-type lease arrangements with customers who desire lease financing. Leases with business customers have fixed terms of generally two to four years . Future maturities of minimum lease payments as of July 29, 2016 were as follows: Fiscal 2017 - $885 million ; Fiscal 2018 - $1,322 million ; Fiscal 2019 - $747 million ; Fiscal 2020 - $239 million ; Fiscal 2021 and beyond - $52 million . 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 following table summarizes the components of the Company's financing receivables segregated by portfolio segment as of July 29, 2016 and January 29, 2016 : July 29, 2016 January 29, 2016 Revolving Fixed-term Total Revolving Fixed-term Total (in millions) Financing Receivables, net: Customer receivables, gross $ 1,043 $ 3,786 $ 4,829 $ 1,173 $ 3,637 $ 4,810 Allowances for losses (100 ) (56 ) (156 ) (118 ) (58 ) (176 ) Customer receivables, net 943 3,730 4,673 1,055 3,579 4,634 Residual interest — 465 465 — 458 458 Financing receivables, net $ 943 $ 4,195 $ 5,138 $ 1,055 $ 4,037 $ 5,092 Short-term $ 943 $ 1,924 $ 2,867 $ 1,055 $ 1,860 $ 2,915 Long-term $ — $ 2,271 $ 2,271 $ — $ 2,177 $ 2,177 The following table summarizes the changes in the allowance for financing receivable losses for the respective periods: Three Months Ended July 29, 2016 July 31, 2015 Revolving Fixed-term Total Revolving Fixed-term Total (in millions) Allowance for financing receivable losses: Balance at beginning of period $ 107 $ 58 $ 165 $ 134 $ 53 $ 187 Charge-offs, net of recoveries (23 ) (2 ) (25 ) (21 ) (7 ) (28 ) Provision charged to income statement 16 — 16 14 4 18 Balance at end of period $ 100 $ 56 $ 156 $ 127 $ 50 $ 177 Six Months Ended July 29, 2016 July 31, 2015 Revolving Fixed-term Total Revolving Fixed-term Total (in millions) Allowance for financing receivable losses: Balance at the beginning of period $ 118 $ 58 $ 176 $ 145 $ 49 $ 194 Charge-offs, net of recoveries (48 ) (5 ) (53 ) (52 ) (9 ) (61 ) Provision charged to income statement 30 3 33 34 10 44 Balance at end of period $ 100 $ 56 $ 156 $ 127 $ 50 $ 177 The following table summarizes the aging of the Company's customer financing receivables, gross, including accrued interest, as of July 29, 2016 and January 29, 2016 , segregated by class: July 29, 2016 January 29, 2016 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 $ 725 $ 84 $ 27 $ 836 $ 812 $ 99 $ 36 $ 947 Revolving — DBC 186 17 4 207 202 20 4 226 Fixed-term — Consumer and Small Commercial 318 13 2 333 315 13 1 329 Fixed-term — Medium and Large Commercial 3,303 129 21 3,453 3,131 171 6 3,308 Total customer receivables, gross $ 4,532 $ 243 $ 54 $ 4,829 $ 4,460 $ 303 $ 47 $ 4,810 Credit Quality The following table summarizes customer receivables, gross, including accrued interest, by credit quality indicator segregated by class, as of July 29, 2016 and January 29, 2016 . The categories shown in the table below segregate customer receivables based on the relative degrees of credit risk. The credit quality indicators for DPA revolving accounts are measured primarily as of each quarter-end date, while all other indicators are generally updated on a periodic basis. For DPA revolving receivables shown in the table below, the Company makes credit decisions based on proprietary scorecards, which include the customer's credit history, payment history, credit usage, and other credit agency-related elements. The higher quality category includes prime accounts generally of a higher credit quality that are comparable to U.S. customer FICO scores of 720 or above. The mid-category represents the mid-tier accounts that are comparable to U.S. customer FICO scores from 660 to 719 . The lower category is generally sub-prime and represents lower credit quality accounts that are comparable to U.S customer FICO scores below 660 . For the DBC revolving receivables and fixed-term commercial receivables shown in the table below, 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. July 29, 2016 January 29, 2016 Higher Mid Lower Total Higher Mid Lower Total (in millions) Revolving — DPA $ 139 $ 248 $ 449 $ 836 $ 148 $ 270 $ 529 $ 947 Revolving — DBC $ 62 $ 61 $ 84 $ 207 $ 68 $ 65 $ 93 $ 226 Fixed-term — Consumer and Small Commercial $ 95 $ 144 $ 94 $ 333 $ 93 $ 136 $ 100 $ 329 Fixed-term — Medium and Large Commercial $ 1,604 $ 1,153 $ 696 $ 3,453 $ 1,597 $ 1,075 $ 636 $ 3,308 Securitizations and Structured Financing Debt The Company transfers certain U.S. customer financing receivables to Special Purpose Entities ("SPEs") that meet the definition of a Variable Interest Entity ("VIE") and are consolidated, along with the associated debt, into the Company's Consolidated Financial Statements, as the Company is the primary beneficiary of those VIEs. These SPEs are bankruptcy remote legal entities with separate assets and liabilities. The purpose of these SPEs is to facilitate the funding of customer receivables in the capital markets. The following table shows financing receivables held by the consolidated VIEs as of the respective dates: July 29, 2016 January 29, 2016 (in millions) Financing receivables held by consolidated VIEs, net: Short-term, net $ 2,057 $ 2,125 Long-term, net 1,255 1,215 Financing receivables held by consolidated VIEs, net $ 3,312 $ 3,340 Financing receivables transferred via securitization through SPEs were $0.8 billion for both the three months ended July 29, 2016 and July 31, 2015 , and $1.4 billion and $1.8 billion for the six months ended July 29, 2016 and July 31, 2015 , respectively. 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. 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 Company's total structured financing debt, which is collateralized by financing receivables in the United States, Canada, and Europe, was $3.5 billion and $3.4 billion as of July 29, 2016 and January 29, 2016 , respectively, under the following programs: • The structured financing debt program in the United States, which is related to the fixed-term lease and loan securitization program and the revolving loan securitization program, was $0.9 billion and $1.3 billion as of July 29, 2016 and January 29, 2016 , respectively. This debt is collateralized solely by the U.S financing receivables in the programs. The debt has a variable interest rate and the duration of this debt is based on the terms of the underlying financing receivables. As of July 29, 2016 , the total debt capacity related to the securitization programs was $2.1 billion . The Company enters into interest swap agreements to effectively convert the portion of its structured financing debt from a floating rate to a fixed rate. See Note 6 of the Notes to the Unaudited Condensed Consolidated Financial Statements for additional information about interest rate swaps. The Company's securitization programs became effective on October 29, 2013. The revolving program, which was extended during the first quarter of Fiscal 2017, is effective for four and one-half years . The fixed term program, which was extended during the first quarter of Fiscal 2016, is effective for four and one-half years . The programs contain 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 July 29, 2016 , these criteria were met. • The Company may periodically issue asset-backed debt securities to private investors. As of July 29, 2016 , the associated debt balance of these securities was $2.0 billion . The asset-backed debt securities are collateralized solely by the U.S. fixed-term financing receivables in the offerings, which are held by SPEs. The interest rate on these securities is fixed and ranges from 0.26% to 3.61% , and the duration of these securities is based on the terms of the underlying financing receivables. • 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 and Europe. As of July 29, 2016 , the Canadian program, which was extended during the six months ended July 29, 2016 , had a total debt capacity of $167 million . This program is effective for two years , beginning on April 15, 2016, and is collateralized solely by the Canadian financing receivables. The European program, which was extended during the three months ended May 1, 2015, is effective for four years , beginning on December 23, 2013. The program is collateralized solely by the European financing receivables and had a total debt capacity of $665 million as of July 29, 2016 . The aggregate outstanding balances of the Canadian and European revolving structured loans as of July 29, 2016 and January 29, 2016 were $580 million and $559 million , respectively. Financing Receivable Sales To manage certain concentrations of customer credit exposure, the Company may sell selected fixed-term financing receivables to unrelated third parties on a periodic basis. The amount of financing receivables sold was $98 million and $31 million during the six months ended July 29, 2016 and July 31, 2015 , respectively. |
DEBT
DEBT | 6 Months Ended |
Jul. 29, 2016 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT The following table summarizes the Company's outstanding debt as of the dates indicated: July 29, 2016 January 29, 2016 (in millions) Secured Debt Structured financing debt $ 3,488 $ 3,411 3.75% Floating rate due October 2018 ("Term Loan C Facility") 834 1,003 4.00% Floating rate due April 2020 ("Term Loan B Facility") 4,307 4,329 4.00% Floating rate due April 2020 ("Term Loan Euro Facility") 903 891 5.625% due October 2020 ("Senior First Lien Notes") 1,400 1,400 EMC merger financing issued on June 1, 2016 ("First Lien Notes"): 3.48% due June 2019 3,750 — 4.42% due June 2021 4,500 — 5.45% due June 2023 3,750 — 6.02% due June 2026 4,500 — 8.10% due June 2036 1,500 — 8.35% due June 2046 2,000 — Unsecured Notes and Debentures Notes and debentures issued prior to going-private transaction: 3.10% due April 2016 — 400 5.65% due April 2018 500 500 5.875% due June 2019 600 600 4.625% due April 2021 400 400 7.10% due April 2028 300 300 6.50% due April 2038 388 388 5.40% due September 2040 265 265 EMC merger financing issued on June 22, 2016 ("Senior Unsecured Notes"): 5.875% due June 2021 1,625 — 7.125% due June 2024 1,625 — Other 58 93 Total debt, principal amount 36,693 13,980 Unamortized discount, net of unamortized premium (218 ) (221 ) Debt issuance costs (139 ) (128 ) Total debt, carrying value $ 36,336 $ 13,631 Total short-term debt $ 2,500 $ 2,981 Total long-term debt $ 33,836 $ 10,650 To finance the going-private transaction, the Company issued $13.9 billion in debt, which included borrowings under the Term Loan facilities and the ABL Credit Facility, proceeds from the sale of the Senior First Lien Notes and other notes, as well as borrowings under the structured financing debt programs. During June 2016, the Company issued $23.25 billion of debt securities in connection with the pending EMC merger transaction, which included proceeds from the sale of the First Lien Notes and Senior Unsecured Notes. During the six months ended July 29, 2016 , the Company repaid $0.4 billion of maturing Unsecured Notes and Debentures as well as $0.2 billion of Term Loan facilities, net. EMC Merger Financing — On June 1, 2016, two subsidiaries of the Company completed a private offering of the First Lien Notes with an aggregate principal amount of $20.0 billion , and on June 22, 2016, two subsidiaries of the Company completed a private offering of the Senior Unsecured Notes with an aggregate principal amount of $3.25 billion . Under the terms of the agreements relating to the issuance of the First Lien Notes and Senior Unsecured Notes, the proceeds of the offerings were deposited into escrow, with such proceeds to be released to finance the consummation of the EMC merger subject to the satisfaction of customary conditions. Upon the completion of the EMC merger, Dell International L.L.C. (a wholly-owned indirect subsidiary of Dell Technologies) and EMC will assume all of the co-issuers' obligations under the First Lien Notes and Senior Unsecured Notes, and the First Lien Notes and Senior Unsecured Notes will be guaranteed on a joint and several basis by Dell Technologies, Denali Intermediate Inc. (a wholly-owned direct subsidiary of Dell Technologies), Dell Inc. and each of Denali Intermediate Inc.'s wholly-owned domestic subsidiaries (including EMC's wholly-owned domestic subsidiaries following the completion of the EMC merger) that guarantees obligations under the new senior secured credit facilities that will be entered into in connection with the EMC merger. The net proceeds held in escrow from the private offerings of multiple series of the First Lien Notes and Senior Unsecured Notes were included in restricted cash in the Condensed Consolidated Statements of Financial Position as of July 29, 2016 , and such proceeds will be held as restricted cash until the completion of the EMC merger. The receipt of the net proceeds is not reflected in the Condensed Consolidated Statements of Cash Flows, given that the proceeds were required to be deposited directly into escrow rather than into the Company's unrestricted cash accounts. During the three months ended July 29, 2016 , as required under the escrow agreement, the Company prepaid interest into escrow in the amount of $40 million , which is reflected as a cash outflow from investing activities in the Condensed Consolidated Statements of Cash Flows. This amount will be returned to the Company upon the closing of the EMC merger transaction and paid to the holders of the First Lien Notes and Senior Unsecured Notes on the scheduled interest payment dates. The Company expects to incur costs of approximately $0.5 billion upon the closing of the EMC merger transaction relating to the issuance of the First Lien Notes and Senior Unsecured Notes, which will be capitalized as debt issuance costs in the Condensed Consolidated Statements of Financial Position. If the EMC merger agreement is terminated, the Company expects to incur a First Lien Note redemption fee of $0.2 billion . Upon the closing of the EMC merger transaction, the Company will be party to new credit agreements containing covenants that are not expected to materially differ from the covenants contained in the Company's existing credit agreements. Structured Financing Debt — As of July 29, 2016 and January 29, 2016 , the Company had $3.5 billion and $3.4 billion , respectively, in outstanding structured financing debt, which was primarily related to the fixed-term lease and loan securitization programs and the revolving loan securitization programs. See Note 4 and Note 6 of the Notes to the Unaudited Condensed Consolidated Financial Statements for further discussion of the structured financing debt and the interest rate swap agreements that hedge a portion of that debt. Term Loan Facilities — The $1.5 billion Term Loan C Facility was issued on October 29, 2013, and provides for equal quarterly principal amortization in an annual amount equal to 10% of the original principal amount in the first year of the agreement and increasing annual percentage amounts in subsequent years with the payment of the outstanding balance due at maturity, in October 2018. The annual principal amortization percentage is currently 22.5% . The $4.7 billion Term Loan B Facility and the €0.7 billion Term Loan Euro Facility were issued on October 29, 2013, and provide for quarterly principal amortization in an annual amount equal to 1% of the original principal amount and payment of the outstanding balances due at maturity in April 2020. On June 10, 2015, the Company refinanced and amended the Term Loan facilities to reduce interest rate floors and margins and to modify certain covenant requirements. The refinancing increased the outstanding Term Loan Euro Facility to €0.8 billion , which was offset by a decrease in the Term Loan B Facility to $4.4 billion . Borrowings under the Term Loan facilities bear interest, payable quarterly, at a rate per annum equal to an applicable margin, plus, at the borrowers’ option, either (a) a base rate or (b) a LIBOR rate for the applicable currency, in each case, subject to interest rate floors. Under the Term Loan facilities, if the Company has excess cash flows that are not reinvested in working capital, strategic investments, or finance activities on an annual basis and if the Company’s secured leverage ratio falls within certain thresholds, a percentage of the excess cash flows is required to be applied to prepay secured debt. Senior First Lien Notes — The Senior First Lien Notes were issued on October 7, 2013 in an aggregate principal amount of $1.5 billion and are payable in full at maturity, in October 2020. As of July 29, 2016 , the outstanding balance of these notes was $1.4 billion . Interest on the Senior First Lien Notes is payable semiannually. ABL Credit Facility — On October 29, 2013, the Company entered into a secured ABL Credit Facility to support its working capital needs. The maximum aggregate borrowings under this revolving credit facility are approximately $2.0 billion . Borrowings under the ABL Credit Facility are subject to a borrowing base, which consists of certain receivables and inventory. Available borrowings under the ABL Credit Facility are reduced by draws on the facility as well as letters of credit. As of July 29, 2016 , there were no draws on the facility and, after taking into account outstanding letters of credit, available borrowings totaled $1.4 billion . Borrowings under the facility bear interest at a rate per annum equal to an applicable margin, plus, at the borrowers’ option, either (a) a base rate, (b) a LIBOR rate or (c) certain other applicable rates. The applicable margin under the facility is determined based on excess liquidity as a percentage of the maximum borrowing amount under the facility. The ABL Credit Facility will expire in October 2018. The borrowers under the Term Loan facilities and the ABL Credit Facility and the co-issuers of the Senior First Lien Notes are subsidiaries of Dell Inc. Dell Inc. and substantially all of its domestic subsidiaries guarantee the borrowings under the Term Loan facilities and the obligations under the Senior First Lien Notes. Dell Inc. and certain of its domestic subsidiaries guarantee the borrowings under the ABL Credit Facility. All borrowings and other obligations under the Term Loan facilities and the ABL Credit Facility generally are secured by first-priority or second-priority security interests in substantially all of the assets of Dell Inc., the borrowers under the facilities and the guarantors of the facilities, as well as by pledges of the equity interests of Dell Inc. and certain of its subsidiaries, and a portion of the equity interests of certain first-tier foreign subsidiaries of Dell Inc. All obligations under the Senior First Lien Notes are secured by a first-priority security interest in certain cash flow collateral and a second-priority security interest in other collateral securing the ABL Credit Facility. Unsecured Notes and Debentures — The Company has Unsecured Notes and Debentures that were issued prior to the going-private transaction. Interest on these borrowings is payable semiannually. See "EMC Merger Financing" above for a discussion of the Senior Unsecured Notes issued in connection with the EMC merger. Aggregate Future Maturities As of July 29, 2016 , aggregate future maturities of the Company's debt were as follows: Maturities by Fiscal Year 2017 (remaining six months) 2018 2019 2020 2021 Thereafter Total (in millions) Structured Financing Debt $ 1,121 $ 1,516 $ 691 $ 136 $ 23 $ 1 $ 3,488 Term Loan Facilities, Senior First Lien Notes, and First Lien Notes 205 427 334 3,802 6,426 16,250 27,444 Unsecured Notes and Debentures — — 500 600 — 4,603 5,703 Other 21 9 2 — — 26 58 Total maturities, principal amount 1,347 1,952 1,527 4,538 6,449 20,880 36,693 Associated carrying value adjustments (2 ) (2 ) (16 ) (7 ) (130 ) (200 ) (357 ) Total maturities, carrying value amount $ 1,345 $ 1,950 $ 1,511 $ 4,531 $ 6,319 $ 20,680 $ 36,336 Covenants and Restricted Net Assets — The credit agreements for the Term Loan facilities and the ABL Credit Facility and the indenture governing the Senior First Lien Notes contain covenants restricting the ability of the Company and its restricted subsidiaries, subject to specified exceptions, to incur additional debt, create liens on certain assets to secure debt, pay dividends and make other restricted payments, make certain investments, sell or transfer certain assets, consolidate, merge, sell or otherwise dispose of all or substantially all of their assets, and enter into certain transactions with affiliates. The Company designated certain subsidiaries as unrestricted subsidiaries for all purposes of the credit agreements and the indenture as of August 1, 2015, the impact of which was not material to its financial position as of July 29, 2016 or results of operations for the three and six months then ended. The indentures governing the Unsecured Notes and Debentures contain covenants limiting the Company's ability to create certain liens, enter into sale-and-lease back transactions, and consolidate or merge with, or convey, transfer, or lease all or substantially all of its assets to, another person. The credit agreements and all such 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 ABL Credit Facility requires compliance with conditions that must be satisfied prior to any borrowing and maintenance of a minimum fixed charge coverage ratio. The Company was in compliance with all financial covenants as of July 29, 2016 . The issuers and holders of the proceeds of the First Lien Notes and Senior Unsecured Notes issued in connection with the pending EMC merger transaction are unrestricted subsidiaries for purposes of the Company’s indebtedness. At the closing of the EMC merger transaction, Dell International and EMC, which are restricted subsidiaries for purposes of the Company’s indebtedness, will succeed to the obligations of such unrestricted subsidiaries as the issuers of the First Lien Notes and Senior Unsecured Notes. |
DERIVATIVE INSTRUMENTS AND HEDG
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | 6 Months Ended |
Jul. 29, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES Derivative Instruments As part of its risk management strategy, the Company uses derivative instruments, primarily forward contracts, purchased options, and interest rate swaps to hedge certain foreign currency and interest rate exposures. 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. 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 derivative and recognizes any ineffective portion of the hedge in earnings as a component of interest and other, net. Hedge ineffectiveness recognized in earnings was not material during the three and six months ended July 29, 2016 and July 31, 2015 . Foreign Exchange Risk The Company uses forward contracts and purchased options 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. 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 six months ended July 29, 2016 and July 31, 2015 , 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 the expanded offerings of DFS in Europe, forward contracts are used to hedge financing receivables denominated in foreign currencies. 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 three 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 basis in order to match the floating rate nature of the banks' funding pool. These contracts are not designated for hedge accounting and most expire within three years or less. Notional Amounts of Outstanding Derivative Instruments The notional amounts of the Company's outstanding derivative instruments were as follows as of the dates indicated: July 29, 2016 January 29, 2016 (in millions) Foreign Exchange Contracts Designated as cash flow hedging instruments $ 3,782 $ 3,947 Non-designated as hedging instruments 509 985 Total $ 4,291 $ 4,932 Interest Rate Contracts Non-designated as hedging instruments $ 757 $ 1,017 Effect of Derivative Instruments on the Consolidated Statements of Financial Position and the Consolidated Statements of Income (Loss) Derivatives in Cash Flow Hedging Relationships Gain (Loss) Recognized in Accumulated OCI, Net of Tax, on Derivatives (Effective Portion) Location of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) Location of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion) Gain (Loss) Recognized in Income on Derivative (Ineffective Portion) (in millions) For the three months ended July 29, 2016 Total net revenue $ (21 ) Foreign exchange contracts $ 58 Total cost of net revenue (6 ) Interest rate contracts — Interest and other, net — Interest and other, net $ — Total $ 58 $ (27 ) $ — For the three months ended July 31, 2015 Total net revenue $ 82 Foreign exchange contracts $ 66 Total cost of net revenue 7 Interest rate contracts — Interest and other, net — Interest and other, net $ (1 ) Total $ 66 $ 89 $ (1 ) For the six months ended July 29, 2016 Total net revenue $ (66 ) Foreign exchange contracts $ (107 ) Total cost of net revenue (14 ) Interest rate contracts — Interest and other, net — Interest and other, net $ (1 ) Total $ (107 ) $ (80 ) $ (1 ) For the six months ended July 31, 2015 Total net revenue $ 255 Foreign exchange contracts $ 60 Total cost of net revenue 18 Interest rate contracts — Interest and other, net — Interest and other, net $ (1 ) Total $ 60 $ 273 $ (1 ) Fair Value of Derivative Instruments in the Consolidated Statements of Financial Position The Company presents its foreign exchange 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 fair value of those derivative instruments presented on a gross basis as of each date indicated below was as follows: July 29, 2016 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 $ 78 $ — $ 25 $ — $ 103 Foreign exchange contracts in a liability position (8 ) — (4 ) — (12 ) Net asset (liability) 70 — 21 — 91 Derivatives not Designated as Hedging Instruments Foreign exchange contracts in an asset position 133 5 30 — 168 Foreign exchange contracts in a liability position (121 ) — (76 ) (1 ) (198 ) Interest rate contracts in an asset position — — — — — Interest rate contracts in a liability position — — — (2 ) (2 ) Net asset (liability) 12 5 (46 ) (3 ) (32 ) Total derivatives at fair value $ 82 $ 5 $ (25 ) $ (3 ) $ 59 January 29, 2016 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 $ 100 $ — $ — $ — $ 100 Foreign exchange contracts in a liability position (11 ) — — — (11 ) Net asset (liability) 89 — — — 89 Derivatives not Designated as Hedging Instruments Foreign exchange contracts in an asset position 301 1 — — 302 Foreign exchange contracts in a liability position (198 ) — (5 ) (3 ) (206 ) Interest rate contracts in an asset position — 2 — — 2 Interest rate contracts in a liability position — — — (4 ) (4 ) Net asset (liability) 103 3 (5 ) (7 ) 94 Total derivatives at fair value $ 192 $ 3 $ (5 ) $ (7 ) $ 183 The following table presents the gross amounts of the Company's derivative instruments, amounts offset due to master netting agreements with the Company's various counterparties, and the net amounts recognized in the Condensed Consolidated Statements of Financial Position. July 29, 2016 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 Financial Instruments Cash Collateral Received or Pledged (in millions) Derivative Instruments Financial assets $ 271 $ (184 ) $ 87 $ — $ — $ 87 Financial liabilities (212 ) 184 (28 ) — — (28 ) Total Derivative Instruments $ 59 $ — $ 59 $ — $ — $ 59 January 29, 2016 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 Financial Instruments Cash Collateral Received or Pledged (in millions) Derivative Instruments Financial assets $ 404 $ (209 ) $ 195 $ — $ — $ 195 Financial liabilities (221 ) 209 (12 ) — — (12 ) Total Derivative Instruments $ 183 $ — $ 183 $ — $ — $ 183 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 6 Months Ended |
Jul. 29, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS In connection with the going-private transaction on October 29, 2013, all of the Company’s tangible and intangible assets and liabilities were accounted for and recognized at fair value on the transaction date. The excess of the purchase price over the fair value of the assets acquired and liabilities assumed was accounted for and recognized as goodwill. Accordingly, on the date of the going-private transaction, there was no excess fair value for any of the Company's goodwill reporting units. Goodwill The following table presents goodwill allocated to the Company's business segments as of July 29, 2016 and January 29, 2016 , and changes in the carrying amount of goodwill for the respective periods: Client Solutions Enterprise Solutions Group Corporate Total (in millions) Balances at January 29, 2016 $ 4,428 $ 3,907 $ 71 $ 8,406 Goodwill recognized during the period — — — — Adjustments — — — — Balances at July 29, 2016 $ 4,428 $ 3,907 $ 71 $ 8,406 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. Based on the results of the annual impairment test, which was a qualitative and quantitative test, no impairment of goodwill or indefinite-lived intangible assets existed for any reporting unit as of October 30, 2015. As a result of this analysis, it was determined that the excess of fair value over carrying amount was greater than 15% for all of the Company's existing goodwill reporting units as of October 30, 2015. The announcements of the divestitures of Dell Services and DSG during the six months ended July 29, 2016 created triggering events that required assessments of goodwill. As a result of these assessments, the Company determined no impairment existed as of July 29, 2016 . Further, the Company did not have any accumulated goodwill impairment charges as of July 29, 2016 . 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. The fair value of each goodwill reporting unit is generally estimated using a discounted cash flow methodology. This analysis requires significant judgments, including estimation of future cash flows, which is dependent on internal forecasts, the estimation of the long-term growth 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. Intangible Assets The Company's intangible assets as of July 29, 2016 and January 29, 2016 , were as follows: July 29, 2016 January 29, 2016 Gross Accumulated Amortization Net Gross Accumulated Amortization Net (in millions) Customer relationships $ 9,869 $ (4,363 ) $ 5,506 $ 9,869 $ (3,600 ) $ 6,269 Technology 1,536 (1,066 ) 470 1,536 (871 ) 665 Trade names 318 (134 ) 184 318 (110 ) 208 Finite-lived intangible assets 11,723 (5,563 ) 6,160 11,723 (4,581 ) 7,142 Indefinite-lived intangible assets 1,435 — 1,435 1,435 — 1,435 Total intangible assets $ 13,158 $ (5,563 ) $ 7,595 $ 13,158 $ (4,581 ) $ 8,577 Amortization expense related to finite-lived intangible assets was approximately $491 million and $492 million during the three months ended July 29, 2016 and July 31, 2015 , respectively, and $982 million and $986 million during the six months ended July 29, 2016 and July 31, 2015 , respectively. There were no material impairment charges related to intangible assets during the three and six months ended July 29, 2016 and July 31, 2015 . Estimated future annual pre-tax amortization expense of finite-lived intangible assets as of July 29, 2016 over the next five fiscal years and thereafter is as follows: Fiscal Years (in millions) 2017 (remaining six months) $ 964 2018 1,712 2019 1,632 2020 765 2021 576 Thereafter 511 Total $ 6,160 |
WARRANTY AND DEFERRED EXTENDED
WARRANTY AND DEFERRED EXTENDED WARRANTY REVENUE | 6 Months Ended |
Jul. 29, 2016 | |
Product Warranties Disclosures [Abstract] | |
WARRANTY AND DEFERRED EXTENDED WARRANTY REVENUE | WARRANTY AND DEFERRED EXTENDED WARRANTY REVENUE The Company record s a liability for its standard limited warranties at the time of sale for the estimated costs that may be incurred. The liability for standard warranties is included in accrued and other current liabilities and other non-current liabilities in the Condensed Consolidated Statements of Financial Position. Changes in the Company's liabilities for standard limited warranties are presented in the following table for the periods indicated. Three Months Ended Six Months Ended July 29, 2016 July 31, 2015 July 29, 2016 July 31, 2015 (in millions) Warranty liability: Warranty liability at beginning of period $ 561 $ 675 $ 574 $ 679 Costs accrued for new warranty contracts and changes in estimates for pre-existing warranties (a) (b) 182 201 382 403 Service obligations honored (178 ) (223 ) (391 ) (429 ) Warranty liability at end of period $ 565 $ 653 $ 565 $ 653 Current portion $ 385 $ 434 $ 385 $ 434 Non-current portion $ 180 $ 219 $ 180 $ 219 ____________________ (a) Changes in cost estimates related to pre-existing warranties are aggregated with accruals for new standard warranty contracts. The Company's warranty liability process does not differentiate between estimates made for pre-existing warranties and new warranty obligations. (b) Includes the impact of foreign currency exchange rate fluctuations. Revenue from the sale of extended warranties is recognized over the term of the contract or when the service is completed, and the costs associated with these contracts are recognized as incurred. Deferred extended warranty revenue is included in deferred revenue in the Condensed Consolidated Statements of Financial Position. Changes in the Company's liabilities for deferred revenue related to extended warranties are presented in the following table for the periods indicated. Three Months Ended Six Months Ended July 29, 2016 July 31, 2015 July 29, 2016 July 31, 2015 (in millions) Deferred extended warranty revenue: Deferred extended warranty revenue at beginning of period $ 7,434 $ 6,753 $ 7,229 $ 6,573 Revenue deferred for new extended warranties (a) 1,092 1,118 2,240 2,173 Service revenue recognized (973 ) (888 ) (1,916 ) (1,763 ) Deferred extended warranty revenue at end of period $ 7,553 $ 6,983 $ 7,553 $ 6,983 Current portion $ 3,507 $ 3,115 $ 3,507 $ 3,115 Non-current portion $ 4,046 $ 3,868 $ 4,046 $ 3,868 ____________________ (a) Includes the impact of foreign currency exchange rate fluctuations. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jul. 29, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES 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 would be recorded in the period in which such determination is made. For some matters, the amount of 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: EMC Merger Litigation — The Company, Dell, and Universal Acquisition Co. (“Universal”) have been named as defendants in fifteen putative class-action lawsuits brought by purported EMC shareholders and VMware stockholders challenging the proposed merger between the Company, Dell, and Universal on the one hand, and EMC on the other. Those suits are captioned as follows: (1) IBEW Local No. 129 Benefit Fund v. Tucci, Civ. No. 1584-3130-BLS1 (Mass. Super. Ct., Suffolk Cnty. filed Oct. 15, 2015); (2) Barrett v. Tucci, Civ. No. 15-6023-A (Mass. Super. Ct, Middlesex Cnty. filed Oct. 16, 2015); (3) Graulich v. Tucci, Civ. No. 1584-3169-BLS1 (Mass. Super. Ct, Suffolk Cnty. filed Oct. 19, 2015; (4) Vassallo v. EMC Corp., Civ. No. 1584-3173-BLS1 (Mass. Super. Ct, Suffolk Cnty. filed Oct. 19, 2015); (5) City of Miami Police Relief & Pension Fund v. Tucci, Civ. No. 1584-3174-BLS1 (Mass. Super. Ct. Suffolk Cnty. filed Oct. 19, 2015); (6) Lasker v. EMC Corp., Civ. No. 1584-3214-BLS1 (Mass. Super. Ct. Suffolk Cnty. filed Oct. 23, 2015); (7) Walsh v. EMC Corp., Civ. No. 15-13654 (D. Mass. filed Oct. 27, 2015); (8) Local Union No. 373 U.A. Pension Plan v. EMC Corp., Civ. No. 1584-3253-BLS1 (Mass. Super. Ct. Suffolk Cnty. filed Oct. 28, 2015); (9) City of Lakeland Emps.’ Pension & Ret. Fund v. Tucci, Civ. No. 1584-3269-BLS1 (Mass. Super. Ct. Suffolk Cnty. filed Oct. 28, 2015); (10) Ma v. Tucci, Civ. No. 1584-3281-BLS1 (Mass. Super. Ct. Suffolk Cnty. filed Oct. 29, 2015); (11) Stull v. EMC Corp., Civ. No. 15-13692 (D. Mass. filed Oct. 30, 2015); (12) Jacobs v. EMC Corp., Civ. No. 15-6318-H (Mass. Super. Ct. Middlesex Cnty. filed Nov. 12, 2015); (13) Ford v. VMware, Inc., C.A. No. 11714-VCL (Del. Ch. filed Oct. 17, 2015); (14) Pancake v. EMC Corp., Civ. No. 16-10040 (D. Mass. filed Jan. 11, 2016); and (15) Booth Family Trust v. EMC Corp. Civ. No. 16-10114 (D. Mass. filed Jan. 26, 2016). The fifteen lawsuits seek, among other things, injunctive relief enjoining the EMC merger, rescission of the EMC merger if consummated, an award of fees and costs, or an award of damages. The complaints in the IBEW, Barrett, Graulich, Vassallo, City of Miami, Lasker, Local Union No. 373, City of Lakeland, and Ma actions generally allege that the EMC directors breached their fiduciary duties to EMC shareholders in connection with the EMC merger by, among other things, failing to maximize shareholder value and agreeing to provisions in the EMC merger agreement that discourage competing bids. The complaints generally further allege that there were various conflicts of interest in the proposed transaction. The IBEW, Graulich, City of Miami, and Ma plaintiffs brought suit against the Company, Dell, and Universal for injunctive relief. The Barrett, Vassallo, Lasker, Lakeland, and Local Union No. 373 plaintiffs brought suit against the Company, Dell, and Universal as alleged aiders and abettors. After consolidating the nine complaints, by decision dated December 7, 2015, the Suffolk County, Massachusetts Superior Court, Business Litigation Session, dismissed all nine complaints for failure to make a demand on the EMC board of directors. On January 21, 2016, the plaintiffs in the consolidated actions appealed. That appeal is pending before the Massachusetts Supreme Court. The complaints in the Walsh, Stull, Pancake, and Booth actions allege that the EMC directors breached their fiduciary duties to EMC shareholders in connection with the EMC merger by, among other things, failing to maximize shareholder value and agreeing to provisions in the EMC merger agreement that discourage competing bids. The complaints generally further allege that there were various conflicts of interest in the proposed transaction and that the preliminary SEC Form S-4 filed by the Company on December 14, 2015 in connection with the transaction contained material misstatements and omissions, in violation of Section 14(a) of the Securities Exchange Act of 1934 (the "Exchange Act”) and SEC Rule 14a-9 promulgated thereunder (“Rule 14a-9”). Under the amended complaints, the plaintiffs in the Walsh, Stull, and Pancake actions have brought suit against the Company, Dell, and Universal under Section 20(a) of the Exchange Act as alleged controlling persons of EMC. The plaintiffs in the Booth action have brought suit against the Company, Dell, and Universal under Section 14(a) of the Exchange Act and Rule 14a-9. On April 26, 2016, the Court consolidated the actions and entered an order appointing Plaintiff Stull as lead plaintiff and his choice of counsel as lead and liaison counsel. On June 6, 2016, the Securities and Exchange Commission declared effective the Company’s registration statement on Form S-4 relating to the EMC merger (the “SEC Form S-4”), including the amendments thereto. On June 17, 2016, the parties to the Walsh, Stull, Pancake, and Booth actions submitted to the Court a Stipulation and Proposed Order Dismissing Action and Retaining Jurisdiction to Determine Plaintiffs’ Counsel’s Application for an Award of Attorneys’ Fees and Reimbursement of Expenses. In the stipulation, the plaintiffs represented to the Court that they believe sufficient information had been disclosed to warrant dismissal of the actions as moot in light of the disclosures in the SEC Form S-4, including the amendments thereto. The Court has not yet entered the proposed order. The amended complaints in the Jacobs and Ford actions allege that EMC, as the majority stockholder of VMware, and the individual defendants, who are directors of EMC, VMware, or both, breached their fiduciary duties to minority stockholders of VMware, Inc. ("VMware"), in connection with the proposed EMC merger by allegedly entering into or approving a merger that favors the interests of EMC and Dell at the expense of the minority stockholders. Under the amended complaint, the plaintiffs in the Jacobs action have brought suit against the Company, Dell, and Universal as alleged aiders and abettors. No oral argument date has been set for the motions to dismiss/motions to stay the Jacobs action. Under the amended complaint, the plaintiffs in the Ford action have brought suit against the Company and individual defendants for alleged breach of fiduciary duties to VMware and its stockholders, or, alternatively, against the Company, Dell, and Universal for aiding and abetting the alleged breach of fiduciary duties by EMC and VMware’s directors. On November 17, 2015, the plaintiffs in the Ford action moved for a preliminary injunction and for expedited discovery. Certain defendants filed motions to dismiss the amended complaint in the Ford action on February 26, 2016 and February 29, 2016. On March 7, 2016, the defendants moved to stay or dismiss the Jacobs action in favor of the Ford action. On April 19, 2016, EMC, the Company, Dell, Universal, and certain of the individual defendants filed briefs in support of the previously filed motions to dismiss. The parties are still in the process of briefing the motion to dismiss. No trial dates have been set in any of these actions. The outcome of these lawsuits is uncertain, and additional lawsuits may be brought or additional claims advanced concerning the EMC merger. An adverse judgment for monetary damages could have an adverse effect on the Company’s operations. A preliminary injunction could delay or jeopardize the completion of the EMC merger, and an adverse judgment granting permanent injunctive relief could indefinitely enjoin the completion of the EMC merger. Appraisal Proceedings — Holders of shares of Dell common stock who did not vote on September 12, 2013 in favor of the proposal to adopt the amended going-private transaction agreement and who properly demanded appraisal of their shares and who otherwise comply with the requirements of Section 262 of the Delaware General Corporate Law ("DGCL") are entitled to seek appraisal for, and obtain payment in cash for the judicially determined "fair value" (as defined pursuant to Section 262 of the DGCL) of, their shares in lieu of receiving the going-private transaction consideration. This appraised value could be more than, the same as, or less than the $13.75 per share going-private transaction consideration. Dell initially recorded a liability of $13.75 for each share with respect to which appraisal has been demanded and as to which the demand has not been withdrawn, together with interest at the statutory rate discussed below. As of July 29, 2016 , this liability was approximately $129 million , compared to approximately $593 million as of January 29, 2016 , as the Company settled a substantial portion of the liability during the three months ended July 29, 2016 . Also during the three months ended July 29, 2016 , as discussed further below, the Court of Chancery ruled that that the fair value of the appraisal shares as of October 29, 2013, the date on which the going-private transaction became effective, was $17.62 per share. The Company expects to appeal this ruling. The Company believes it was adequately reserved for the appraisal proceedings as of July 29, 2016 . Between October 29, 2013 and February 25, 2014, former Dell stockholders filed petitions in thirteen separate matters commencing appraisal proceedings in the Delaware Court of Chancery in which they seek a determination of the fair value of a total of approximately 38 million shares of Dell common stock plus interest, costs, and attorneys' fees. These matters have been consolidated as In Re Appraisal of Dell (C.A. No. 9322-VCL). The trial took place during the week of October 5, 2015. The appraisal proceedings were conducted in accordance with the rules of the Delaware Court of Chancery. In these proceedings, the Court of Chancery determined the fair value of the shares as to which appraisal has been properly demanded, exclusive of any element of value arising from the accomplishment or expectation of the going-private transaction. Interest on such fair value from the effective time of the going-private transaction through the date of payment of the judgment will be compounded quarterly and will accrue at a per annum rate of 5% over the Federal Reserve discount rate (including any surcharge) as established from time to time. Any payment in respect of the shares subject to appraisal rights will be required to be paid in cash. The petitioners sought $28.61 per share, plus interest. Dell, by contrast, believes that the fair value of Dell on the day the going-private transaction was completed was $12.68 per share. The number of shares subject to appraisal demands, including shares held by those parties who have sought appraisal but not filed petitions, originally was 38,766,982 . By orders dated June 27 and September 10, 2014, and May 13, May 14, July 13 and July 28, 2015, the Court of Chancery dismissed claims of holders of approximately 2,530,322 shares for failure to comply with the statutory requirements for seeking appraisal. On July 30, 2015, Dell moved for summary judgment seeking to dismiss claims of holders of an additional 30,730,930 shares (as well as a number of shares previously disqualified on other grounds) because those shares were voted in favor of the going-private transaction, and thus failed to comply with the statutory requirements for seeking appraisal. On May 11, 2016, the Court of Chancery granted Dell's motion and dismissed the appraisal claims of the holders of the 30,730,930 shares, determining that they were entitled to the merger consideration without interest. On May 18, 2016, the petitioners filed a motion for an equitable award of interest, which was denied by the Court on May 31, 2016. The Court of Chancery ruled on May 31, 2016, that the fair value of shares as of October 29, 2013, the date on which the going-private transaction became effective, was $17.62 per share. This ruling would entitle the holders of the remaining 5,505,730 shares to $17.62 per share, plus interest at a statutory rate, compounded quarterly. On June 6, 2016, the petitioners filed a motion to amend the Court’s memorandum opinion, which was denied by the Court on June 16, 2016. The Court of Chancery’s decisions are subject to review on appeal when final judgment is entered. On June 29, 2016, the Company, Dell and certain funds affiliated with T. Rowe entered into a settlement agreement to resolve a dispute regarding the fair value and interest due on approximately 31,653,905 shares held by the funds, representing the 30,730,930 shares subject to claims that were dismissed on May 11, 2016 plus an additional 922,975 shares that had been previously disqualified on other grounds. The terms of the T. Rowe settlement, among other matters, provide that, in exchange for a release and dismissal of all asserted claims, the Company pay $13.75 per share for a total sum of approximately $463 million , including interest. On June 29, 2016, the Court entered an order approving the settlement, which was subsequently consummated. The remaining 5,505,730 shares not subject to the settlement agreement remain subject to the appraisal proceedings. Securities Litigation — On May 22, 2014, a securities class action seeking compensatory damages was filed in the United States District Court for the Southern District of New York, captioned the City of Pontiac Employee Retirement System vs. Dell Inc. et. al. (Case No. 1:14-cv-03644). The action names as defendants Dell Inc. and certain current and former executive officers, and alleges that Dell made false and misleading statements about Dell’s business operations and products between February 22, 2012 and May 22, 2012, which resulted in artificially inflated stock prices. The case was transferred to the United States District Court for the Western District of Texas, where the defendants filed a motion to dismiss. The motion is fully briefed and a ruling is expected in 2016. The defendants believe the claims asserted are without merit and the risk of material loss is remote. Copyright Levies — The Company's obligation to collect and remit copyright levies in certain European Union ("EU") countries may be affected by the resolution of legal proceedings pending in Germany against various companies, including Dell's German subsidiary, and elsewhere in the EU against other companies in Dell's industry. The plaintiffs in those proceedings, some of which are described below, generally seek to impose or modify the levies with respect to sales of such equipment as multifunction devices, phones, personal computers, and printers, alleging that such products enable the copying of copyrighted materials. Some of the proceedings also challenge whether the levy schemes in those countries comply with EU law. Certain EU member countries that do not yet impose levies on digital devices are expected to implement legislation to enable them to extend existing levy schemes, while some other EU member countries are expected to limit the scope of levy schemes and their applicability in the digital hardware environment. Dell, other companies, and various industry associations have opposed the extension of levies to the digital environment and have advocated alternative models of compensation to rights holders. The Company continues to collect levies in certain EU countries where it has determined that based on local laws it is probable that it has a payment obligation. The amount of levies is generally based on the number of products sold and the per-product amounts of the levies, which vary. The Company accrues a liability when it believes that it is both probable that a loss has been incurred and when it can reasonably estimate the amount of the loss. On December 29, 2005, Zentralstelle für private Überspielungsrechte ("ZPÜ"), a joint association of various German collecting societies, instituted arbitration proceedings against Dell's German subsidiary before the Board of Arbitration at the German Patent and Trademark Office in Munich, and subsequently filed a lawsuit in the German Regional Court in Munich on February 21, 2008, seeking levies to be paid on each personal computer sold by Dell in Germany through the end of calendar year 2007. On December 23, 2009, ZPÜ and the German industry association, BCH, reached a settlement regarding audio-video copyright levy litigation (with levies ranging from €3.15 to €13.65 per unit). Dell joined this settlement on February 23, 2010, and has paid the amounts due under the settlement. On March 25, 2014, ZPÜ and Dell reached a settlement for levies to be paid on each personal computer sold for the period of January 2, 2011 through December 31, 2016. The amount of the settlement is not material to the Company. The amount of any levies payable after calendar year 2016, as well as the Company's ability to recover such amounts through increased prices, remains uncertain. German courts are also considering a lawsuit originally filed in July 2004 by VG Wort, a German collecting society representing certain copyright holders, against Hewlett-Packard Company in the Stuttgart Civil Court seeking levies on printers, and a lawsuit originally filed in September 2003 by the same plaintiff against Fujitsu Siemens Computer GmbH in Munich Civil Court in Munich, Germany seeking levies on personal computers. In each case, the civil and appellate courts held that the subject classes of equipment were subject to levies. In July 2011, the German Federal Supreme Court, to which the lower court holdings have been appealed, referred each case to the Court of Justice of the European Union, submitting a number of legal questions on the interpretation of the European Copyright Directive which the German Federal Supreme Court deems necessary for its decision. In August 2014, the German Supreme Court delivered an opinion ruling that printers and personal computers are subject to levies, and referred the case back to the Court of Appeals. Dell joined the industry settlement in the Fujitsu Siemens case, and Dell believes it has no remaining material obligations in either case. Proceedings seeking to impose or modify copyright levies for sales of digital devices also have been instituted in courts in other EU member states. Even in countries where Dell is not a party to such proceedings, decisions in those cases could impact Dell's business and the amount of copyright levies Dell may be required to collect. The ultimate resolution of these proceedings and the associated financial impact to the Company, if any, including the number of units potentially affected, the amount of levies imposed, and the ability of the Company to recover such amounts, remain uncertain at this time. Should the courts determine there is liability for previous units shipped beyond the amount of levies the Company has collected or accrued, the Company would be liable for such incremental amounts. Recovery of any such amounts from others by the Company would be possible only on future collections related to future shipments. Other Litigation - The various legal proceedings in which Dell is involved include commercial litigation and a variety of patent suits. In some of these cases, Dell is the sole defendant. More often, particularly in the patent suits, Dell is one of a number of defendants in the electronics and technology industries. Dell is actively defending a number of patent infringement suits, and several pending claims are in various stages of evaluation. While the number of patent cases has grown over time, Dell does not currently anticipate that any of these matters will have a material adverse effect on its business, financial condition, results of operations, or cash flows. As of July 29, 2016 , 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 variables, including the nature, timing, and amount of any associated expenses, amounts paid in settlement, damages, or other remedies or consequences. Indemnifications — In the ordinary course of business, the Company enters into contractual arrangements under which it may agree to indemnify the third party to such arrangements from any losses incurred relating to the services it performs on behalf of the Company or for losses arising from certain events as defined in the particular contract, such as litigation or claims relating to past performance. Such indemnification obligations may not be subject to maximum loss clauses. Historically, payments related to these indemnifications have not been material to the Company. |
INCOME AND OTHER TAXES
INCOME AND OTHER TAXES | 6 Months Ended |
Jul. 29, 2016 | |
Income Tax Disclosure [Abstract] | |
INCOME AND OTHER TAXES | INCOME AND OTHER TAXES For the three and six months ended July 29, 2016 , the Company's effective income tax rate for continuing operations was 7.7% and -6.5% on pre-tax losses from continuing operations of $286 million and $648 million , respectively. In comparison, for the three and six months ended July 31, 2015 , the Company's effective income tax rates were 10.2% and 9.0% on pre-tax losses from continuing operations of $325 million and $811 million , respectively. The change in the Company's provision for income taxes was primarily attributable to tax charges on previously untaxed earnings of foreign subsidiaries that will no longer be permanently reinvested as a result of the Dell Services and DSG divestitures. These tax charges were $66 million and $201 million for the three and six months ended July 29, 2016 , respectively. Off-setting these tax charges were increased tax benefits from interest expense in the United States for debt related to the EMC merger. See Note 2 and Note 5 of the Notes to the Unaudited Condensed Consolidated Financial Statements for more information on the divestitures and the EMC merger financing. The income tax rate for future quarters of Fiscal 2017 will be impacted by the actual mix of jurisdictions in which income is generated. The differences between the estimated effective income tax rates and the U.S. federal statutory rate of 35% principally result from the Company's geographical distribution of income, change in valuation allowance for deductible temporary differences or carryforwards, and differences between the book and tax treatment of certain items. A portion of the Company's operations is subject to a reduced tax rate or is free of tax under various tax holidays. A significant portion of these income tax benefits is related to a tax holiday that will expire on December 31, 2016. The Company has negotiated new terms for the affected subsidiary, which provides for a reduced income tax rate and will be effective for a two-year bridge period expiring in January 2019. The Company's other tax holidays will expire in whole or in part during Fiscal 2019 through Fiscal 2023. 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. During Fiscal 2014, the Internal Revenue Service ("IRS") issued a revised Revenue Agent's Report ("RAR") for fiscal years 2004 through 2006, proposing certain assessments primarily related to transfer pricing matters. The Company disagrees with certain of the proposed assessments and has contested them through the IRS administrative appeals procedures. The Company’s U.S. federal income tax returns for fiscal years 2007 through 2009 are currently under examination by the IRS and the IRS issued a RAR related to those years during the six months ended July 29, 2016 . Similar to the action taken in connection with the audit of the Company’s U.S. federal income tax returns for fiscal years 2004 through 2006, the IRS has proposed adjustments relating to certain tax positions taken on the tax returns with which the Company disagrees and will contest through the IRS administrative appeals procedures. The Company believes it has valid positions supporting its tax returns and that it is adequately reserved. The Company is currently under income tax audits in various state and foreign jurisdictions. The Company is undergoing negotiations, and in some cases contested proceedings, relating to tax matters with the taxing authorities in these jurisdictions. The Company believes that it has provided adequate reserves related to all matters contained in tax periods open to examination. 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. Although timing of resolution or closure of audits is not certain, the Company believes it is reasonably possible that tax audit resolutions could reduce its unrecognized tax benefits by an amount between $300 million to $750 million in the next twelve months. Such a reduction could have a material effect on the Company’s effective tax rate. Net unrecognized tax benefits, if recognized, would favorably affect the Company's effective tax rate. With respect to major U.S. state and foreign taxing jurisdictions, the Company is generally not subject to tax examinations for years prior to fiscal year 2000. Judgment is required in evaluating the Company's uncertain tax positions and determining the Company's provision for income taxes. The Company's net unrecognized tax benefits, included in accrued and other, and other non-current liabilities in the Condensed Consolidated Statements of Financial Position was $3.2 billion and $3.1 billion as of July 29, 2016 and January 29, 2016 , respectively. 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 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 may be required to provide collateral guarantees or indemnification to regulators and tax authorities until the matter is resolved. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 6 Months Ended |
Jul. 29, 2016 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | ACCUMULATED OTHER COMPREHENSIVE LOSS Accumulated other comprehensive loss is presented in stockholders' equity in the Condensed Consolidated Statements of Financial Position and is comprised of amounts related to foreign currency translation adjustments and amounts related to the Company's cash flow hedges. The following table presents changes in accumulated other comprehensive loss, net of tax, by the following components for the periods indicated: Foreign Currency Translation Adjustments Cash Flow Hedges Accumulated Other Comprehensive Loss (in millions) Balances at January 29, 2016 $ (358 ) $ 34 $ (324 ) Other comprehensive income (loss) before reclassifications 42 (107 ) (65 ) Amounts reclassified from accumulated other comprehensive loss — 81 81 Total change for the period 42 (26 ) 16 Less: Change in comprehensive income attributable to non-controlling interest — — — Balances at July 29, 2016 $ (316 ) $ 8 $ (308 ) 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. In addition, any hedge ineffectiveness related to cash flow hedges is recognized currently in net income. See Note 6 of the Notes to the Unaudited Condensed Consolidated Financial Statements for more information on the Company's derivative instruments. The following table presents reclassifications out of accumulated other comprehensive loss, net of tax, which consists entirely of gains and losses related to cash flow hedges, to net income (loss) for the periods presented: Three Months Ended Six Months Ended July 29, 2016 July 31, 2015 July 29, 2016 July 31, 2015 (in millions) Total reclassifications, net of tax: Net revenue $ (21 ) $ 82 $ (66 ) $ 255 Cost of net revenue (6 ) 7 (14 ) 18 Interest and other, net — (1 ) (1 ) (1 ) Total reclassifications, net of tax (benefit) expense of $(6) and $(5), respectively and $5 and $8, respectively $ (27 ) $ 88 $ (81 ) $ 272 |
NON-CONTROLLING INTEREST
NON-CONTROLLING INTEREST | 6 Months Ended |
Jul. 29, 2016 | |
Noncontrolling Interest [Abstract] | |
NON-CONTROLLING INTEREST | NON-CONTROLLING INTEREST On April 27, 2016, SecureWorks completed a registered underwritten IPO of its Class A common stock. Prior to the IPO, Dell Technologies owned indirectly, through Dell and Dell's subsidiaries, 100% of the outstanding equity interest in SecureWorks. Following the completion of the IPO, the non-controlling interest owned all of the SecureWorks Class A common stock outstanding, and Dell Technologies owned all of the SecureWorks Class B common stock outstanding. As of July 29, 2016 , Dell Technologies held approximately 86.8% of the outstanding equity interest in SecureWorks, which represented approximately 98.5% of the combined voting power of both classes of the SecureWorks common stock outstanding. The non-controlling interest's share of equity in SecureWorks is reflected as a component of the non-controlling interest in the accompanying Condensed Consolidated Statements of Financial Position and was $126 million and $0 million as of July 29, 2016 and January 29, 2016 , respectively. Consolidated comprehensive income (loss) attributable to the non-controlling interest was immaterial during the three and six months ended July 29, 2016 . The following table summarizes the changes in equity attributable to controlling and non-controlling interest: Dell Technologies Stockholders' Equity Non-Controlling Interest Total Stockholders' Equity (in millions) Balances at January 29, 2016 $ 1,466 $ — $ 1,466 Net income (loss) 628 (1 ) 627 Issuance of common stock of subsidiary upon public offering, net of offering costs — 124 124 Foreign currency translation adjustments 42 — 42 Cash flow hedges, net change (26 ) — (26 ) Stock-based compensation expense 30 3 33 Revaluation of redeemable shares (73 ) — (73 ) Treasury stock repurchases and other (2 ) — (2 ) Balances at July 29, 2016 $ 2,065 $ 126 $ 2,191 |
EARNINGS (LOSS) PER SHARE
EARNINGS (LOSS) PER SHARE | 6 Months Ended |
Jul. 29, 2016 | |
Earnings Per Share [Abstract] | |
EARNINGS (LOSS) PER SHARE | EARNINGS (LOSS) PER SHARE Basic earnings (loss) per share is based on the weighted-average effect of all common shares issued and outstanding and is calculated by dividing net income (loss) by the weighted-average shares outstanding during the period. Diluted earnings (loss) per share is calculated by dividing net income (loss) by the weighted-average number of common shares used in the basic earnings (loss) per share calculation plus the number of common shares that would be issued assuming exercise or conversion of all potentially dilutive common shares outstanding. The Company excludes equity instruments from the calculation of diluted earnings (loss) per share if the effect of including such instruments is antidilutive. The Company has three classes of common stock, denominated as Series A, Series B, and Series C common stock. For purposes of calculating net earnings (loss) per share, the Company uses the two-class method. As all classes share the same rights in dividends, basic and diluted earnings (loss) per share are the same for all classes. The following table sets forth the computation of basic and diluted earnings (loss) per share for each of the periods presented: Three Months Ended Six Months Ended July 29, 2016 July 31, 2015 July 29, 2016 July 31, 2015 (in millions, except per share amounts) Numerator: Net loss from continuing operations $ (264 ) $ (292 ) $ (690 ) $ (738 ) Less: Net loss attributable to non-controlling interests (1 ) — (1 ) — Net loss from continuing operations attributable to Dell Technologies Inc. (263 ) (292 ) (689 ) (738 ) Income (loss) from discontinued operations, net of income taxes 836 27 1,317 (31 ) Net income (loss) attributable to Dell Technologies Inc. $ 573 $ (265 ) $ 628 $ (769 ) Denominator: Weighted-average shares outstanding - basic 405 405 405 405 Dilutive effect of options, restricted stock units, restricted stock, and other — — — — Weighted-average shares outstanding - diluted 405 405 405 405 Earnings (loss) per share attributable to Dell Technologies Inc. - basic: Continuing operations (0.65 ) (0.72 ) (1.70 ) (1.82 ) Discontinued operations 2.06 0.07 3.25 (0.08 ) Basic $ 1.41 $ (0.65 ) $ 1.55 $ (1.90 ) Earnings (loss) per share attributable to Dell Technologies Inc. - diluted: Continuing operations (0.65 ) (0.72 ) (1.70 ) (1.82 ) Discontinued operations 2.06 0.07 3.25 (0.08 ) Diluted $ 1.41 $ (0.65 ) $ 1.55 $ (1.90 ) Weighted-average shares outstanding - antidilutive (a) 53 55 54 55 ____________________ (a) Stock-based incentive awards have been excluded from the calculation of diluted earnings (loss) per share because their effect would have been antidilutive as the Company had a net loss from continuing operations for the periods presented. |
REDEEMABLE SHARES
REDEEMABLE SHARES | 6 Months Ended |
Jul. 29, 2016 | |
Temporary Equity Disclosure [Abstract] | |
REDEEMABLE SHARES | REDEEMABLE SHARES The 2013 Stock Incentive Plan provides for the grant of stock-based incentive awards to the Company's employees, consultants, and non-employee directors. Equity awards available for issuance under the 2013 Stock Incentive Plan include stock options, stock appreciation rights, restricted stock units, and other equity-based awards. These awards include certain rights that allow the holder to exercise a put feature for the underlying stock after a six -month holding period following the issuance of the common stock, requiring the Company to purchase the stock at its fair market value. Accordingly, these awards are subject to reclassification from equity to temporary equity, and the Company determines the amounts to be classified as temporary equity as follows: • For stock options subject to service requirements, the intrinsic value of the option is multiplied by the portion of the option for which services have been rendered. Upon exercise of the option, the amount in temporary equity represents the fair value of the Company's common stock. • For stock appreciation rights and restricted stock units, the fair value of the share is multiplied by the portion of the share for which services have been rendered. • For share-based arrangements that are subject to the occurrence of a contingent event, those amounts are not reclassified to temporary equity until the contingency has been satisfied. The amount of redeemable shares classified as temporary equity as of July 29, 2016 and January 29, 2016 was $179 million and $106 million , respectively. As of July 29, 2016 , the redeemable shares was comprised of 0.8 million issued and outstanding common shares, 0.1 million unvested restricted stock units, and 23.0 million outstanding stock options. As of January 29, 2016 , the redeemable shares was comprised of 0.9 million issued and outstanding common shares, 0.1 million unvested restricted stock units, and 18.6 million outstanding stock options. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 6 Months Ended |
Jul. 29, 2016 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION With the classification of Dell Services and DSG as discontinued operations during the six months ended July 29, 2016 , the Company now has two reportable segments that are based on the following product and services business units: Client Solutions and Enterprise Solutions Group ("ESG"). Client Solutions includes sales to commercial and consumer customers of desktops, thin client products, notebooks, as well as services and third-party software and peripherals closely tied to the sale of Client Solutions hardware. ESG includes servers, networking, and storage, as well as services and third-party software and peripherals that are closely tied to the sale of ESG hardware. 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 operating income for management reporting purposes excludes the impact of purchase accounting, amortization of intangible assets, unallocated corporate transactions, severance and facility action costs, acquisition-related charges, and costs related to the going-private transaction. See Note 1 of the Notes to the Unaudited Condensed Consolidated Financial Statements for more information on the going-private transaction. The Company does not allocate assets to the above reportable segments for internal reporting purposes. The following table presents a reconciliation of net revenue by the Company’s reportable segments to the Company’s consolidated net revenue as well as a reconciliation of consolidated segment operating income (loss) to the Company’s consolidated operating income (loss): Three Months Ended Six Months Ended July 29, 2016 July 31, 2015 July 29, 2016 July 31, 2015 (in millions) Consolidated net revenue: Client Solutions $ 9,220 $ 9,235 $ 17,791 $ 18,104 Enterprise Solutions Group 3,779 3,769 7,392 7,471 Segment net revenue 12,999 13,004 25,183 25,575 Corporate (a) 116 94 223 188 Impact of purchase accounting (b) (65 ) (123 ) (143 ) (263 ) Total net revenue $ 13,050 $ 12,975 $ 25,263 $ 25,500 Consolidated operating income (loss): Client Solutions $ 484 $ 323 $ 869 $ 542 Enterprise Solutions Group 300 280 492 519 Segment operating income 784 603 1,361 1,061 Impact of purchase accounting (b) (98 ) (154 ) (204 ) (326 ) Amortization of intangible assets (491 ) (492 ) (982 ) (986 ) Corporate (a) (32 ) (35 ) (74 ) (102 ) Other (c) (100 ) (25 ) (181 ) (61 ) Total operating income (loss) $ 63 $ (103 ) $ (80 ) $ (414 ) _________________ (a) Corporate consists of SecureWorks and unallocated transactions, which include long-term incentives, certain short-term incentive compensation expenses, and other corporate items that are not allocated to the Company's reportable segments. (b) Impact of purchase accounting includes non-cash purchase accounting adjustments related to the going-private transaction. (c) Other includes severance and facility action costs; acquisition, integration, and divestiture related costs; and stock-based compensation expenses. The following table presents net revenue by product and services categories: Three Months Ended Six Months Ended July 29, 2016 July 31, 2015 July 29, 2016 July 31, 2015 (in millions) Net revenue: Client Solutions (a): Commercial $ 6,798 $ 6,913 $ 12,943 $ 13,341 Consumer 2,422 2,322 4,848 4,763 Total Client Solutions net revenue 9,220 9,235 17,791 18,104 Enterprise Solutions Group: Servers and networking 3,237 3,212 6,312 6,364 Storage 542 557 1,080 1,107 Total ESG net revenue 3,779 3,769 7,392 7,471 Total segment net revenue $ 12,999 $ 13,004 $ 25,183 $ 25,575 _________________ (a) During the six months ended July 29, 2016 , the Company redefined the categories within the Client Solutions business unit. None of these changes impacted the Company's consolidated or total business unit results. |
SUPPLEMENTAL CONSOLIDATED FINAN
SUPPLEMENTAL CONSOLIDATED FINANCIAL INFORMATION | 6 Months Ended |
Jul. 29, 2016 | |
Balance Sheet Related Disclosures [Abstract] | |
SUPPLEMENTAL CONSOLIDATED FINANCIAL INFORMATION | SUPPLEMENTAL CONSOLIDATED FINANCIAL INFORMATION Supplemental Consolidated Statements of Financial Position Information The following table provides information on amounts included in inventories, net as of July 29, 2016 and January 29, 2016 . July 29, 2016 January 29, 2016 (in millions) Inventories, net: Production materials $ 503 $ 657 Work-in-process 188 189 Finished goods 755 773 Total inventories, net $ 1,446 $ 1,619 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jul. 29, 2016 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS Effective August 25, 2016, Denali Holding Inc. changed its name to Dell Technologies Inc. by an amendment (the “Amendment”) to its Third Amended and Restated Certificate of Incorporation. The Amendment was approved by the board of directors of the Company, and was filed with the Secretary of State of the State of Delaware on August 25, 2016. Final regulatory approval from the Chinese Ministry of Commerce was received for the EMC merger transaction. The condition to closing the transaction in respect of clearances under antitrust and competition laws has been satisfied. The transaction is expected to close on September 7, 2016. The EMC merger will be financed with a combination of equity and debt financing and cash on hand. As of September 6, 2016, the Company obtained an incremental equity financing commitment of $0.15 billion from Silver Lake Partners. Other than the items noted above, there were no known events occurring after the balance sheet date and up until the date of the issuance of this report that would materially affect the information presented herein. The Company evaluated subsequent events through September 6, 2016 , the date of the issuance of these financial statements. |
ACCOUNTING POLICIES (Policies)
ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jul. 29, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation — The accompanying 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 Dell Technologies Inc. (individually and together with its consolidated subsidiaries, "the Company") as of July 29, 2016 and January 29, 2016 , the results of its operations and corresponding comprehensive income (loss) for the three and six months ended July 29, 2016 and July 31, 2015 , and its cash flows for the six months ended July 29, 2016 and July 31, 2015 . The accompanying Unaudited Condensed Consolidated Financial Statements should be read in conjunction with the Audited Consolidated Financial Statements and accompanying Notes for the fiscal year ended January 29, 2016 ("Fiscal 2016 ") included in the proxy statement/prospectus dated June 6, 2016 forming part of the Company’s registration statement on Form S-4 (Registration No. 333 208524). The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in the Company's Condensed Consolidated Financial Statements and the accompanying Notes. Actual results could differ materially from those estimates. The results of operations, comprehensive income (loss), and cash flows for the three and six months ended July 29, 2016 and July 31, 2015 are not necessarily indicative of the results to be expected for the full fiscal year or for any other fiscal period. |
Fiscal Year | The Company's fiscal year is the 52- or 53-week period ending on the Friday nearest January 31. The fiscal year ending February 3, 2017 (" Fiscal 2017 ") will be a 53-week period. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Revenue from Contracts with Customers — In May 2014, the Financial Accounting Standards Board ("FASB") issued amended guidance on the recognition of revenue from contracts with customers. The objective of the new standard is to establish a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and will supersede most of the existing revenue recognition guidance, including industry-specific guidance. The new standard requires entities to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In August 2015, the FASB approved a one-year deferral of the effective date of this standard. Public entities are required to adopt the new standard for fiscal years, and interim periods within those years, beginning after December 15, 2017, with the option of applying the standard as early as the original effective date for public entities. The new revenue standard may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. The Company is currently evaluating the impact of the new guidance, the effective date, and the method of adoption. Presentation of Debt Issuance Costs — In April 2015, the FASB issued amended guidance which changes the classification of debt issuance costs in the Consolidated Statements of Financial Position. The new guidance requires debt issuance costs to be presented as a direct deduction from the carrying amount of the related debt liability consistent with the presentation of debt discounts, rather than as an asset as currently presented. The guidance related to recognition and measurement of debt issuance costs remains unchanged. The Company implemented the new presentation in the six months ended July 29, 2016 on a retrospective basis, and except for the reclassification of debt issuance costs of $128 million as of January 29, 2016 in the accompanying Condensed Consolidated Statements of Financial Position, there was no other impact to the Consolidated Financial Statements. Recognition and Measurement of Financial Assets and Financial Liabilities — In January 2016, the FASB issued amended guidance on Recognition and Measurement of Financial Assets and Financial Liabilities. The standard addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. Public entities must adopt the new guidance for fiscal years, and interim periods within those years, beginning after December 15, 2017. The Company is currently evaluating the impact that the standard will have on the Consolidated Financial Statements. Leases — In February 2016, the FASB issued amended guidance on the accounting for leasing transactions. The primary objective of this update is to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. Public entities must adopt the new guidance for reporting periods beginning after December 15, 2018, with early adoption permitted. Companies are required to use a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements. The Company is currently evaluating the impact that the standard will have on the Consolidated Financial Statements. Improvements to Employee Share-Based Payment Accounting — In March 2016, the FASB issued amended guidance on the accounting for employee share-based payments. The topics that were amended in the update involve several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Public entities must adopt the new guidance for fiscal years, and interim periods within those years, beginning after December 2016. The Company is currently evaluating the impact that the standard will have on the Consolidated Financial Statements. Measurement of Credit Losses on Financial Instruments — In June 2016, the FASB issued amended guidance which replaces the current incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. Public entities must adopt the new guidance for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. All entities may adopt the amendments in the new standard as of fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. However, earlier adoption is not permitted. The Company is currently evaluating the impact that the standard will have on the Consolidated Financial Statements. |
Derivative instruments | Derivative Instruments As part of its risk management strategy, the Company uses derivative instruments, primarily forward contracts, purchased options, and interest rate swaps to hedge certain foreign currency and interest rate exposures. 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. 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 derivative and recognizes any ineffective portion of the hedge in earnings as a component of interest and other, net. |
Standard Product Warranty | The Company record s a liability for its standard limited warranties at the time of sale for the estimated costs that may be incurred. |
Revenue Recognition, Deferred Revenue | Revenue from the sale of extended warranties is recognized over the term of the contract or when the service is completed, and the costs associated with these contracts are recognized as incurred. |
Commitments and Contingencies | 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. |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 6 Months Ended |
Jul. 29, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued operations | The following table presents key financial results of Dell Services included in “ Income (loss) from discontinued operations, net of income taxes ” for the three and six months ended July 29, 2016 and July 31, 2015 : Three Months Ended Six Months Ended July 29, 2016 July 31, 2015 July 29, 2016 July 31, 2015 (in millions) Net revenue $ 694 $ 694 $ 1,368 $ 1,394 Cost of net revenue 536 546 1,077 1,138 Operating expenses 98 105 211 207 Income from discontinued operations before income taxes 60 43 80 49 Income tax provision (benefit) (a) (453 ) 14 (914 ) 48 Income from discontinued operations, net of income taxes $ 513 $ 29 $ 994 $ 1 ____________________ (a) The tax benefits recorded during the three and six months ended July 29, 2016 were $0.5 billion and $0.9 billion , respectively. The additional tax benefit recorded in the three months ended July 29, 2016 was primarily due to the reversal of a valuation allowance for deferred tax assets that the Company now expects to utilize as a result of the DSG divestiture. The following table presents key financial results of DSG included in “ Income (loss) from discontinued operations, net of income taxes ” for the three and six months ended July 29, 2016 and July 31, 2015 : Three Months Ended Six Months Ended July 29, 2016 July 31, 2015 July 29, 2016 July 31, 2015 (in millions) Net revenue $ 321 $ 330 $ 642 $ 643 Cost of net revenue 85 89 175 185 Operating expenses 239 220 488 461 Interest and other, net (7 ) (2 ) 7 (6 ) Income (loss) from discontinued operations before income taxes (10 ) 19 (14 ) (9 ) Income tax provision (benefit) (a) (333 ) 21 (337 ) 23 Income (loss) from discontinued operations, net of income taxes $ 323 $ (2 ) $ 323 $ (32 ) ____________________ (a) The tax benefits of $333 million and $337 million for the three and six months ended July 29, 2016 , respectively, were primarily due to the Company's determination that it could no longer assert permanent reinvestment in the outside basis of the entities that will be divested. The following table presents the major classes of assets and liabilities as of July 29, 2016 and January 29, 2016 related to DSG which were classified as held for sale: July 29, 2016 January 29, 2016 (in millions) ASSETS Current assets: Cash and cash equivalents $ 147 $ 254 Accounts receivable, net 210 244 Inventories, net 20 24 Other current assets 9 11 Total current assets 386 533 Property, plant, and equipment, net 111 106 Goodwill 1,391 1,391 Intangible assets, net 557 613 Other non-current assets (a) 10 8 Total assets $ 2,455 $ 2,651 LIABILITIES Current liabilities: Accounts payable 20 15 Accrued and other 124 160 Short-term deferred revenue 603 625 Total current liabilities 747 800 Long-term deferred revenue 340 333 Other non-current liabilities (a) 79 82 Total liabilities $ 1,166 $ 1,215 ____________________ (a) Other non-current liabilities includes a $75 million deferred tax liability as of July 29, 2016 that is reflected in current assets held for sale on the Condensed Consolidated Statements of Financial Position due to jurisdictional netting of deferred taxes. The significant cash flow items from DSG for the six months ended July 29, 2016 and July 31, 2015 were as follows: Six Months Ended July 29, 2016 July 31, 2015 (in millions) Depreciation and amortization (a) $ 66 $ 83 Capital expenditures $ (15 ) $ (15 ) ____________________ (a) Amounts represent depreciation and amortization recognized up until June 19, 2016, the date DSG met the criteria for discontinued operations reporting. Depreciation and amortization ceased upon determination that the held for sale criteria were met. The significant cash flow items from Dell Services for the six months ended July 29, 2016 and July 31, 2015 were as follows: Six Months Ended July 29, 2016 July 31, 2015 (in millions) Depreciation and amortization (a) $ 32 $ 110 Capital expenditures $ (47 ) $ (41 ) ____________________ (a) Amounts represent depreciation and amortization recognized up until March 27, 2016, the date Dell Services met the criteria for discontinued operations reporting. Depreciation and amortization ceased upon determination that the held for sale criteria were met. The following table presents the major classes of assets and liabilities as of July 29, 2016 and January 29, 2016 related to Dell Services which were classified as held for sale: July 29, 2016 January 29, 2016 (in millions) ASSETS Current assets: Accounts receivable, net $ 488 $ 443 Other current assets 68 73 Total current assets 556 516 Property, plant, and equipment, net 545 515 Goodwill 252 252 Intangible assets, net 376 388 Other non-current assets 16 50 Total assets $ 1,745 $ 1,721 LIABILITIES Current liabilities: Accounts payable $ 147 $ 173 Accrued and other 160 180 Short-term deferred revenue 77 82 Total current liabilities 384 435 Long-term deferred revenue 47 53 Other non-current liabilities — 126 Total liabilities $ 431 $ 614 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Jul. 29, 2016 | |
Fair Value Disclosures [Abstract] | |
Hierarchy for assets measured 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 July 29, 2016 and January 29, 2016 : July 29, 2016 (a) January 29, 2016 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Quoted Significant Significant Quoted Significant Significant (in millions) Assets: Cash equivalents: Money market funds $ 4,406 $ — $ — $ 4,406 $ 3,832 $ — $ — $ 3,832 Derivative instruments — 87 — 87 — 195 — 195 Common stock purchase agreement — — — — — — 10 10 Restricted cash: Money market funds 23,285 — — 23,285 — — — — Total assets $ 27,691 $ 87 $ — $ 27,778 $ 3,832 $ 195 $ 10 $ 4,037 Liabilities: Derivative instruments $ — $ 28 $ — $ 28 $ — $ 12 $ — $ 12 Debt - Other — — — — — — 28 28 Common stock purchase agreement — — 1 1 — — — — Total liabilities $ — $ 28 $ 1 $ 29 $ — $ 12 $ 28 $ 40 ____________________ (a) The Company did not transfer any securities between levels during the six months ended July 29, 2016 . |
Hierarchy for liabilities measured on a recurring basis | The following table summarizes the carrying value and estimated fair value of the Company's outstanding debt as described in Note 5 of the Notes to the Unaudited Condensed Consolidated Financial Statements , including the current portion, as of the dates indicated: July 29, 2016 January 29, 2016 Carrying Value Fair Value Carrying Value Fair Value (in billions) Term Loan Facilities $ 5.9 $ 6.1 $ 6.1 $ 6.2 Senior First Lien Notes $ 1.4 $ 1.5 $ 1.4 $ 1.5 First Lien Notes $ 20.0 $ 21.4 $ — $ — Unsecured Notes and Debentures $ 2.3 $ 2.5 $ 2.7 $ 2.7 Senior Unsecured Notes $ 3.3 $ 3.5 $ — $ — The following table presents the Company's hierarchy for its assets and liabilities measured at fair value on a recurring basis as of July 29, 2016 and January 29, 2016 : July 29, 2016 (a) January 29, 2016 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Quoted Significant Significant Quoted Significant Significant (in millions) Assets: Cash equivalents: Money market funds $ 4,406 $ — $ — $ 4,406 $ 3,832 $ — $ — $ 3,832 Derivative instruments — 87 — 87 — 195 — 195 Common stock purchase agreement — — — — — — 10 10 Restricted cash: Money market funds 23,285 — — 23,285 — — — — Total assets $ 27,691 $ 87 $ — $ 27,778 $ 3,832 $ 195 $ 10 $ 4,037 Liabilities: Derivative instruments $ — $ 28 $ — $ 28 $ — $ 12 $ — $ 12 Debt - Other — — — — — — 28 28 Common stock purchase agreement — — 1 1 — — — — Total liabilities $ — $ 28 $ 1 $ 29 $ — $ 12 $ 28 $ 40 ____________________ (a) The Company did not transfer any securities between levels during the six months ended July 29, 2016 . |
FINANCIAL SERVICES (Tables)
FINANCIAL SERVICES (Tables) | 6 Months Ended |
Jul. 29, 2016 | |
Receivables [Abstract] | |
Components of the Company's financing receivables | The following table summarizes the components of the Company's financing receivables segregated by portfolio segment as of July 29, 2016 and January 29, 2016 : July 29, 2016 January 29, 2016 Revolving Fixed-term Total Revolving Fixed-term Total (in millions) Financing Receivables, net: Customer receivables, gross $ 1,043 $ 3,786 $ 4,829 $ 1,173 $ 3,637 $ 4,810 Allowances for losses (100 ) (56 ) (156 ) (118 ) (58 ) (176 ) Customer receivables, net 943 3,730 4,673 1,055 3,579 4,634 Residual interest — 465 465 — 458 458 Financing receivables, net $ 943 $ 4,195 $ 5,138 $ 1,055 $ 4,037 $ 5,092 Short-term $ 943 $ 1,924 $ 2,867 $ 1,055 $ 1,860 $ 2,915 Long-term $ — $ 2,271 $ 2,271 $ — $ 2,177 $ 2,177 |
Changes in the allowance for financing receivable losses | The following table summarizes the changes in the allowance for financing receivable losses for the respective periods: Three Months Ended July 29, 2016 July 31, 2015 Revolving Fixed-term Total Revolving Fixed-term Total (in millions) Allowance for financing receivable losses: Balance at beginning of period $ 107 $ 58 $ 165 $ 134 $ 53 $ 187 Charge-offs, net of recoveries (23 ) (2 ) (25 ) (21 ) (7 ) (28 ) Provision charged to income statement 16 — 16 14 4 18 Balance at end of period $ 100 $ 56 $ 156 $ 127 $ 50 $ 177 Six Months Ended July 29, 2016 July 31, 2015 Revolving Fixed-term Total Revolving Fixed-term Total (in millions) Allowance for financing receivable losses: Balance at the beginning of period $ 118 $ 58 $ 176 $ 145 $ 49 $ 194 Charge-offs, net of recoveries (48 ) (5 ) (53 ) (52 ) (9 ) (61 ) Provision charged to income statement 30 3 33 34 10 44 Balance at end of period $ 100 $ 56 $ 156 $ 127 $ 50 $ 177 |
Aging of the Company's customer financing receivables, gross, including accrued interest | The following table summarizes the aging of the Company's customer financing receivables, gross, including accrued interest, as of July 29, 2016 and January 29, 2016 , segregated by class: July 29, 2016 January 29, 2016 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 $ 725 $ 84 $ 27 $ 836 $ 812 $ 99 $ 36 $ 947 Revolving — DBC 186 17 4 207 202 20 4 226 Fixed-term — Consumer and Small Commercial 318 13 2 333 315 13 1 329 Fixed-term — Medium and Large Commercial 3,303 129 21 3,453 3,131 171 6 3,308 Total customer receivables, gross $ 4,532 $ 243 $ 54 $ 4,829 $ 4,460 $ 303 $ 47 $ 4,810 |
Credit quality indicators | The following table summarizes customer receivables, gross, including accrued interest, by credit quality indicator segregated by class, as of July 29, 2016 and January 29, 2016 . The categories shown in the table below segregate customer receivables based on the relative degrees of credit risk. The credit quality indicators for DPA revolving accounts are measured primarily as of each quarter-end date, while all other indicators are generally updated on a periodic basis. For DPA revolving receivables shown in the table below, the Company makes credit decisions based on proprietary scorecards, which include the customer's credit history, payment history, credit usage, and other credit agency-related elements. The higher quality category includes prime accounts generally of a higher credit quality that are comparable to U.S. customer FICO scores of 720 or above. The mid-category represents the mid-tier accounts that are comparable to U.S. customer FICO scores from 660 to 719 . The lower category is generally sub-prime and represents lower credit quality accounts that are comparable to U.S customer FICO scores below 660 . For the DBC revolving receivables and fixed-term commercial receivables shown in the table below, 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. July 29, 2016 January 29, 2016 Higher Mid Lower Total Higher Mid Lower Total (in millions) Revolving — DPA $ 139 $ 248 $ 449 $ 836 $ 148 $ 270 $ 529 $ 947 Revolving — DBC $ 62 $ 61 $ 84 $ 207 $ 68 $ 65 $ 93 $ 226 Fixed-term — Consumer and Small Commercial $ 95 $ 144 $ 94 $ 333 $ 93 $ 136 $ 100 $ 329 Fixed-term — Medium and Large Commercial $ 1,604 $ 1,153 $ 696 $ 3,453 $ 1,597 $ 1,075 $ 636 $ 3,308 |
Financing receivables held by the consolidated VIEs | The following table shows financing receivables held by the consolidated VIEs as of the respective dates: July 29, 2016 January 29, 2016 (in millions) Financing receivables held by consolidated VIEs, net: Short-term, net $ 2,057 $ 2,125 Long-term, net 1,255 1,215 Financing receivables held by consolidated VIEs, net $ 3,312 $ 3,340 |
DEBT (Tables)
DEBT (Tables) | 6 Months Ended |
Jul. 29, 2016 | |
Debt Disclosure [Abstract] | |
Outstanding debt | The following table summarizes the Company's outstanding debt as of the dates indicated: July 29, 2016 January 29, 2016 (in millions) Secured Debt Structured financing debt $ 3,488 $ 3,411 3.75% Floating rate due October 2018 ("Term Loan C Facility") 834 1,003 4.00% Floating rate due April 2020 ("Term Loan B Facility") 4,307 4,329 4.00% Floating rate due April 2020 ("Term Loan Euro Facility") 903 891 5.625% due October 2020 ("Senior First Lien Notes") 1,400 1,400 EMC merger financing issued on June 1, 2016 ("First Lien Notes"): 3.48% due June 2019 3,750 — 4.42% due June 2021 4,500 — 5.45% due June 2023 3,750 — 6.02% due June 2026 4,500 — 8.10% due June 2036 1,500 — 8.35% due June 2046 2,000 — Unsecured Notes and Debentures Notes and debentures issued prior to going-private transaction: 3.10% due April 2016 — 400 5.65% due April 2018 500 500 5.875% due June 2019 600 600 4.625% due April 2021 400 400 7.10% due April 2028 300 300 6.50% due April 2038 388 388 5.40% due September 2040 265 265 EMC merger financing issued on June 22, 2016 ("Senior Unsecured Notes"): 5.875% due June 2021 1,625 — 7.125% due June 2024 1,625 — Other 58 93 Total debt, principal amount 36,693 13,980 Unamortized discount, net of unamortized premium (218 ) (221 ) Debt issuance costs (139 ) (128 ) Total debt, carrying value $ 36,336 $ 13,631 Total short-term debt $ 2,500 $ 2,981 Total long-term debt $ 33,836 $ 10,650 |
Aggregate future maturities | As of July 29, 2016 , aggregate future maturities of the Company's debt were as follows: Maturities by Fiscal Year 2017 (remaining six months) 2018 2019 2020 2021 Thereafter Total (in millions) Structured Financing Debt $ 1,121 $ 1,516 $ 691 $ 136 $ 23 $ 1 $ 3,488 Term Loan Facilities, Senior First Lien Notes, and First Lien Notes 205 427 334 3,802 6,426 16,250 27,444 Unsecured Notes and Debentures — — 500 600 — 4,603 5,703 Other 21 9 2 — — 26 58 Total maturities, principal amount 1,347 1,952 1,527 4,538 6,449 20,880 36,693 Associated carrying value adjustments (2 ) (2 ) (16 ) (7 ) (130 ) (200 ) (357 ) Total maturities, carrying value amount $ 1,345 $ 1,950 $ 1,511 $ 4,531 $ 6,319 $ 20,680 $ 36,336 |
DERIVATIVE INSTRUMENTS AND HE30
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 6 Months Ended |
Jul. 29, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Notional Amounts of Outstanding Derivative Instruments | The notional amounts of the Company's outstanding derivative instruments were as follows as of the dates indicated: July 29, 2016 January 29, 2016 (in millions) Foreign Exchange Contracts Designated as cash flow hedging instruments $ 3,782 $ 3,947 Non-designated as hedging instruments 509 985 Total $ 4,291 $ 4,932 Interest Rate Contracts Non-designated as hedging instruments $ 757 $ 1,017 |
Effect of Derivative Instruments on the Consolidated Statements of Financial Position and the Consolidated Statements of Income (Loss) | Effect of Derivative Instruments on the Consolidated Statements of Financial Position and the Consolidated Statements of Income (Loss) Derivatives in Cash Flow Hedging Relationships Gain (Loss) Recognized in Accumulated OCI, Net of Tax, on Derivatives (Effective Portion) Location of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) Location of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion) Gain (Loss) Recognized in Income on Derivative (Ineffective Portion) (in millions) For the three months ended July 29, 2016 Total net revenue $ (21 ) Foreign exchange contracts $ 58 Total cost of net revenue (6 ) Interest rate contracts — Interest and other, net — Interest and other, net $ — Total $ 58 $ (27 ) $ — For the three months ended July 31, 2015 Total net revenue $ 82 Foreign exchange contracts $ 66 Total cost of net revenue 7 Interest rate contracts — Interest and other, net — Interest and other, net $ (1 ) Total $ 66 $ 89 $ (1 ) For the six months ended July 29, 2016 Total net revenue $ (66 ) Foreign exchange contracts $ (107 ) Total cost of net revenue (14 ) Interest rate contracts — Interest and other, net — Interest and other, net $ (1 ) Total $ (107 ) $ (80 ) $ (1 ) For the six months ended July 31, 2015 Total net revenue $ 255 Foreign exchange contracts $ 60 Total cost of net revenue 18 Interest rate contracts — Interest and other, net — Interest and other, net $ (1 ) Total $ 60 $ 273 $ (1 ) |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The fair value of those derivative instruments presented on a gross basis as of each date indicated below was as follows: July 29, 2016 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 $ 78 $ — $ 25 $ — $ 103 Foreign exchange contracts in a liability position (8 ) — (4 ) — (12 ) Net asset (liability) 70 — 21 — 91 Derivatives not Designated as Hedging Instruments Foreign exchange contracts in an asset position 133 5 30 — 168 Foreign exchange contracts in a liability position (121 ) — (76 ) (1 ) (198 ) Interest rate contracts in an asset position — — — — — Interest rate contracts in a liability position — — — (2 ) (2 ) Net asset (liability) 12 5 (46 ) (3 ) (32 ) Total derivatives at fair value $ 82 $ 5 $ (25 ) $ (3 ) $ 59 January 29, 2016 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 $ 100 $ — $ — $ — $ 100 Foreign exchange contracts in a liability position (11 ) — — — (11 ) Net asset (liability) 89 — — — 89 Derivatives not Designated as Hedging Instruments Foreign exchange contracts in an asset position 301 1 — — 302 Foreign exchange contracts in a liability position (198 ) — (5 ) (3 ) (206 ) Interest rate contracts in an asset position — 2 — — 2 Interest rate contracts in a liability position — — — (4 ) (4 ) Net asset (liability) 103 3 (5 ) (7 ) 94 Total derivatives at fair value $ 192 $ 3 $ (5 ) $ (7 ) $ 183 |
Fair Value of Derivative Instruments in the Consolidated Statements of Financial Position | The following table presents the gross amounts of the Company's derivative instruments, amounts offset due to master netting agreements with the Company's various counterparties, and the net amounts recognized in the Condensed Consolidated Statements of Financial Position. July 29, 2016 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 Financial Instruments Cash Collateral Received or Pledged (in millions) Derivative Instruments Financial assets $ 271 $ (184 ) $ 87 $ — $ — $ 87 Financial liabilities (212 ) 184 (28 ) — — (28 ) Total Derivative Instruments $ 59 $ — $ 59 $ — $ — $ 59 January 29, 2016 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 Financial Instruments Cash Collateral Received or Pledged (in millions) Derivative Instruments Financial assets $ 404 $ (209 ) $ 195 $ — $ — $ 195 Financial liabilities (221 ) 209 (12 ) — — (12 ) Total Derivative Instruments $ 183 $ — $ 183 $ — $ — $ 183 |
Fair Value of Derivative Instruments in the Consolidated Statements of Financial Position | The following table presents the gross amounts of the Company's derivative instruments, amounts offset due to master netting agreements with the Company's various counterparties, and the net amounts recognized in the Condensed Consolidated Statements of Financial Position. July 29, 2016 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 Financial Instruments Cash Collateral Received or Pledged (in millions) Derivative Instruments Financial assets $ 271 $ (184 ) $ 87 $ — $ — $ 87 Financial liabilities (212 ) 184 (28 ) — — (28 ) Total Derivative Instruments $ 59 $ — $ 59 $ — $ — $ 59 January 29, 2016 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 Financial Instruments Cash Collateral Received or Pledged (in millions) Derivative Instruments Financial assets $ 404 $ (209 ) $ 195 $ — $ — $ 195 Financial liabilities (221 ) 209 (12 ) — — (12 ) Total Derivative Instruments $ 183 $ — $ 183 $ — $ — $ 183 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 6 Months Ended |
Jul. 29, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill allocated to Denali's business segments | The following table presents goodwill allocated to the Company's business segments as of July 29, 2016 and January 29, 2016 , and changes in the carrying amount of goodwill for the respective periods: Client Solutions Enterprise Solutions Group Corporate Total (in millions) Balances at January 29, 2016 $ 4,428 $ 3,907 $ 71 $ 8,406 Goodwill recognized during the period — — — — Adjustments — — — — Balances at July 29, 2016 $ 4,428 $ 3,907 $ 71 $ 8,406 |
Intangible assets | The Company's intangible assets as of July 29, 2016 and January 29, 2016 , were as follows: July 29, 2016 January 29, 2016 Gross Accumulated Amortization Net Gross Accumulated Amortization Net (in millions) Customer relationships $ 9,869 $ (4,363 ) $ 5,506 $ 9,869 $ (3,600 ) $ 6,269 Technology 1,536 (1,066 ) 470 1,536 (871 ) 665 Trade names 318 (134 ) 184 318 (110 ) 208 Finite-lived intangible assets 11,723 (5,563 ) 6,160 11,723 (4,581 ) 7,142 Indefinite-lived intangible assets 1,435 — 1,435 1,435 — 1,435 Total intangible assets $ 13,158 $ (5,563 ) $ 7,595 $ 13,158 $ (4,581 ) $ 8,577 |
Intangible assets | The Company's intangible assets as of July 29, 2016 and January 29, 2016 , were as follows: July 29, 2016 January 29, 2016 Gross Accumulated Amortization Net Gross Accumulated Amortization Net (in millions) Customer relationships $ 9,869 $ (4,363 ) $ 5,506 $ 9,869 $ (3,600 ) $ 6,269 Technology 1,536 (1,066 ) 470 1,536 (871 ) 665 Trade names 318 (134 ) 184 318 (110 ) 208 Finite-lived intangible assets 11,723 (5,563 ) 6,160 11,723 (4,581 ) 7,142 Indefinite-lived intangible assets 1,435 — 1,435 1,435 — 1,435 Total intangible assets $ 13,158 $ (5,563 ) $ 7,595 $ 13,158 $ (4,581 ) $ 8,577 |
Estimated future annual pre-tax amortization expense of finite-lived intangible assets | Estimated future annual pre-tax amortization expense of finite-lived intangible assets as of July 29, 2016 over the next five fiscal years and thereafter is as follows: Fiscal Years (in millions) 2017 (remaining six months) $ 964 2018 1,712 2019 1,632 2020 765 2021 576 Thereafter 511 Total $ 6,160 |
WARRANTY AND DEFERRED EXTENDE32
WARRANTY AND DEFERRED EXTENDED WARRANTY REVENUE (Tables) | 6 Months Ended |
Jul. 29, 2016 | |
Product Warranties Disclosures [Abstract] | |
Changes in the Company's liabilities for standard limited warranties | Changes in the Company's liabilities for standard limited warranties are presented in the following table for the periods indicated. Three Months Ended Six Months Ended July 29, 2016 July 31, 2015 July 29, 2016 July 31, 2015 (in millions) Warranty liability: Warranty liability at beginning of period $ 561 $ 675 $ 574 $ 679 Costs accrued for new warranty contracts and changes in estimates for pre-existing warranties (a) (b) 182 201 382 403 Service obligations honored (178 ) (223 ) (391 ) (429 ) Warranty liability at end of period $ 565 $ 653 $ 565 $ 653 Current portion $ 385 $ 434 $ 385 $ 434 Non-current portion $ 180 $ 219 $ 180 $ 219 ____________________ (a) Changes in cost estimates related to pre-existing warranties are aggregated with accruals for new standard warranty contracts. The Company's warranty liability process does not differentiate between estimates made for pre-existing warranties and new warranty obligations. (b) Includes the impact of foreign currency exchange rate fluctuations. |
Changes in the Company's liabilities for deferred revenue | Changes in the Company's liabilities for deferred revenue related to extended warranties are presented in the following table for the periods indicated. Three Months Ended Six Months Ended July 29, 2016 July 31, 2015 July 29, 2016 July 31, 2015 (in millions) Deferred extended warranty revenue: Deferred extended warranty revenue at beginning of period $ 7,434 $ 6,753 $ 7,229 $ 6,573 Revenue deferred for new extended warranties (a) 1,092 1,118 2,240 2,173 Service revenue recognized (973 ) (888 ) (1,916 ) (1,763 ) Deferred extended warranty revenue at end of period $ 7,553 $ 6,983 $ 7,553 $ 6,983 Current portion $ 3,507 $ 3,115 $ 3,507 $ 3,115 Non-current portion $ 4,046 $ 3,868 $ 4,046 $ 3,868 ____________________ (a) Includes the impact of foreign currency exchange rate fluctuations. |
ACCUMULATED OTHER COMPREHENSI33
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 6 Months Ended |
Jul. 29, 2016 | |
Equity [Abstract] | |
Accumulated other comprehensive income (loss) | The following table presents changes in accumulated other comprehensive loss, net of tax, by the following components for the periods indicated: Foreign Currency Translation Adjustments Cash Flow Hedges Accumulated Other Comprehensive Loss (in millions) Balances at January 29, 2016 $ (358 ) $ 34 $ (324 ) Other comprehensive income (loss) before reclassifications 42 (107 ) (65 ) Amounts reclassified from accumulated other comprehensive loss — 81 81 Total change for the period 42 (26 ) 16 Less: Change in comprehensive income attributable to non-controlling interest — — — Balances at July 29, 2016 $ (316 ) $ 8 $ (308 ) |
Reclassification | The following table presents reclassifications out of accumulated other comprehensive loss, net of tax, which consists entirely of gains and losses related to cash flow hedges, to net income (loss) for the periods presented: Three Months Ended Six Months Ended July 29, 2016 July 31, 2015 July 29, 2016 July 31, 2015 (in millions) Total reclassifications, net of tax: Net revenue $ (21 ) $ 82 $ (66 ) $ 255 Cost of net revenue (6 ) 7 (14 ) 18 Interest and other, net — (1 ) (1 ) (1 ) Total reclassifications, net of tax (benefit) expense of $(6) and $(5), respectively and $5 and $8, respectively $ (27 ) $ 88 $ (81 ) $ 272 |
NON-CONTROLLING INTEREST (Table
NON-CONTROLLING INTEREST (Tables) | 6 Months Ended |
Jul. 29, 2016 | |
Noncontrolling Interest [Abstract] | |
Changes in equity attributable to controlling and non-controlling interest | The following table summarizes the changes in equity attributable to controlling and non-controlling interest: Dell Technologies Stockholders' Equity Non-Controlling Interest Total Stockholders' Equity (in millions) Balances at January 29, 2016 $ 1,466 $ — $ 1,466 Net income (loss) 628 (1 ) 627 Issuance of common stock of subsidiary upon public offering, net of offering costs — 124 124 Foreign currency translation adjustments 42 — 42 Cash flow hedges, net change (26 ) — (26 ) Stock-based compensation expense 30 3 33 Revaluation of redeemable shares (73 ) — (73 ) Treasury stock repurchases and other (2 ) — (2 ) Balances at July 29, 2016 $ 2,065 $ 126 $ 2,191 |
EARNINGS (LOSS) PER SHARE (Tabl
EARNINGS (LOSS) PER SHARE (Tables) | 6 Months Ended |
Jul. 29, 2016 | |
Earnings Per Share [Abstract] | |
Computation of basic and diluted earnings (loss) per share | The following table sets forth the computation of basic and diluted earnings (loss) per share for each of the periods presented: Three Months Ended Six Months Ended July 29, 2016 July 31, 2015 July 29, 2016 July 31, 2015 (in millions, except per share amounts) Numerator: Net loss from continuing operations $ (264 ) $ (292 ) $ (690 ) $ (738 ) Less: Net loss attributable to non-controlling interests (1 ) — (1 ) — Net loss from continuing operations attributable to Dell Technologies Inc. (263 ) (292 ) (689 ) (738 ) Income (loss) from discontinued operations, net of income taxes 836 27 1,317 (31 ) Net income (loss) attributable to Dell Technologies Inc. $ 573 $ (265 ) $ 628 $ (769 ) Denominator: Weighted-average shares outstanding - basic 405 405 405 405 Dilutive effect of options, restricted stock units, restricted stock, and other — — — — Weighted-average shares outstanding - diluted 405 405 405 405 Earnings (loss) per share attributable to Dell Technologies Inc. - basic: Continuing operations (0.65 ) (0.72 ) (1.70 ) (1.82 ) Discontinued operations 2.06 0.07 3.25 (0.08 ) Basic $ 1.41 $ (0.65 ) $ 1.55 $ (1.90 ) Earnings (loss) per share attributable to Dell Technologies Inc. - diluted: Continuing operations (0.65 ) (0.72 ) (1.70 ) (1.82 ) Discontinued operations 2.06 0.07 3.25 (0.08 ) Diluted $ 1.41 $ (0.65 ) $ 1.55 $ (1.90 ) Weighted-average shares outstanding - antidilutive (a) 53 55 54 55 ____________________ (a) Stock-based incentive awards have been excluded from the calculation of diluted earnings (loss) per share because their effect would have been antidilutive as the Company had a net loss from continuing operations for the periods presented. |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 6 Months Ended |
Jul. 29, 2016 | |
Segment Reporting [Abstract] | |
Segment results | The following table presents a reconciliation of net revenue by the Company’s reportable segments to the Company’s consolidated net revenue as well as a reconciliation of consolidated segment operating income (loss) to the Company’s consolidated operating income (loss): Three Months Ended Six Months Ended July 29, 2016 July 31, 2015 July 29, 2016 July 31, 2015 (in millions) Consolidated net revenue: Client Solutions $ 9,220 $ 9,235 $ 17,791 $ 18,104 Enterprise Solutions Group 3,779 3,769 7,392 7,471 Segment net revenue 12,999 13,004 25,183 25,575 Corporate (a) 116 94 223 188 Impact of purchase accounting (b) (65 ) (123 ) (143 ) (263 ) Total net revenue $ 13,050 $ 12,975 $ 25,263 $ 25,500 Consolidated operating income (loss): Client Solutions $ 484 $ 323 $ 869 $ 542 Enterprise Solutions Group 300 280 492 519 Segment operating income 784 603 1,361 1,061 Impact of purchase accounting (b) (98 ) (154 ) (204 ) (326 ) Amortization of intangible assets (491 ) (492 ) (982 ) (986 ) Corporate (a) (32 ) (35 ) (74 ) (102 ) Other (c) (100 ) (25 ) (181 ) (61 ) Total operating income (loss) $ 63 $ (103 ) $ (80 ) $ (414 ) _________________ (a) Corporate consists of SecureWorks and unallocated transactions, which include long-term incentives, certain short-term incentive compensation expenses, and other corporate items that are not allocated to the Company's reportable segments. (b) Impact of purchase accounting includes non-cash purchase accounting adjustments related to the going-private transaction. (c) Other includes severance and facility action costs; acquisition, integration, and divestiture related costs; and stock-based compensation expenses. |
Reconciliation of revenue from segments to consolidated | The following table presents a reconciliation of net revenue by the Company’s reportable segments to the Company’s consolidated net revenue as well as a reconciliation of consolidated segment operating income (loss) to the Company’s consolidated operating income (loss): Three Months Ended Six Months Ended July 29, 2016 July 31, 2015 July 29, 2016 July 31, 2015 (in millions) Consolidated net revenue: Client Solutions $ 9,220 $ 9,235 $ 17,791 $ 18,104 Enterprise Solutions Group 3,779 3,769 7,392 7,471 Segment net revenue 12,999 13,004 25,183 25,575 Corporate (a) 116 94 223 188 Impact of purchase accounting (b) (65 ) (123 ) (143 ) (263 ) Total net revenue $ 13,050 $ 12,975 $ 25,263 $ 25,500 Consolidated operating income (loss): Client Solutions $ 484 $ 323 $ 869 $ 542 Enterprise Solutions Group 300 280 492 519 Segment operating income 784 603 1,361 1,061 Impact of purchase accounting (b) (98 ) (154 ) (204 ) (326 ) Amortization of intangible assets (491 ) (492 ) (982 ) (986 ) Corporate (a) (32 ) (35 ) (74 ) (102 ) Other (c) (100 ) (25 ) (181 ) (61 ) Total operating income (loss) $ 63 $ (103 ) $ (80 ) $ (414 ) _________________ (a) Corporate consists of SecureWorks and unallocated transactions, which include long-term incentives, certain short-term incentive compensation expenses, and other corporate items that are not allocated to the Company's reportable segments. (b) Impact of purchase accounting includes non-cash purchase accounting adjustments related to the going-private transaction. (c) Other includes severance and facility action costs; acquisition, integration, and divestiture related costs; and stock-based compensation expenses. |
Net revenue | The following table presents net revenue by product and services categories: Three Months Ended Six Months Ended July 29, 2016 July 31, 2015 July 29, 2016 July 31, 2015 (in millions) Net revenue: Client Solutions (a): Commercial $ 6,798 $ 6,913 $ 12,943 $ 13,341 Consumer 2,422 2,322 4,848 4,763 Total Client Solutions net revenue 9,220 9,235 17,791 18,104 Enterprise Solutions Group: Servers and networking 3,237 3,212 6,312 6,364 Storage 542 557 1,080 1,107 Total ESG net revenue 3,779 3,769 7,392 7,471 Total segment net revenue $ 12,999 $ 13,004 $ 25,183 $ 25,575 _________________ (a) During the six months ended July 29, 2016 , the Company redefined the categories within the Client Solutions business unit. None of these changes impacted the Company's consolidated or total business unit results. |
SUPPLEMENTAL CONSOLIDATED FIN37
SUPPLEMENTAL CONSOLIDATED FINANCIAL INFORMATION (Tables) | 6 Months Ended |
Jul. 29, 2016 | |
Balance Sheet Related Disclosures [Abstract] | |
Inventories | The following table provides information on amounts included in inventories, net as of July 29, 2016 and January 29, 2016 . July 29, 2016 January 29, 2016 (in millions) Inventories, net: Production materials $ 503 $ 657 Work-in-process 188 189 Finished goods 755 773 Total inventories, net $ 1,446 $ 1,619 |
EMC MERGER TRANSACTION, DIVES38
EMC MERGER TRANSACTION, DIVESTITURES AND BASIS OF PRESENTATION - EMC Merger Transaction (Details) - USD ($) | Oct. 12, 2015 | Jul. 29, 2016 | Jul. 29, 2016 | Jul. 31, 2015 | Jan. 29, 2016 |
Business Acquisition [Line Items] | |||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | ||
Proceeds from debt | $ 2,148,000,000 | $ 3,078,000,000 | |||
EMC | |||||
Business Acquisition [Line Items] | |||||
Common stock, par value (in dollars per share) | $ 0.01 | ||||
EMC | Minimum | |||||
Business Acquisition [Line Items] | |||||
Cash on hand | $ 4,750,000,000 | ||||
EMC | VMware | |||||
Business Acquisition [Line Items] | |||||
Common stock (in shares) | 343,000,000 | ||||
EMC | |||||
Business Acquisition [Line Items] | |||||
Cash, without interest (in dollars per share) | $ 24.05 | ||||
EMC | Merger Termination Fee | |||||
Business Acquisition [Line Items] | |||||
Reverse termination fee | $ 4,000,000,000 | ||||
EMC | Alternative Merger Termination Fee | |||||
Business Acquisition [Line Items] | |||||
Reverse termination fee | 6,000,000,000 | ||||
EMC | Merger Termination Fee | |||||
Business Acquisition [Line Items] | |||||
Termination fee | 2,500,000,000 | ||||
EMC | Maximum | |||||
Business Acquisition [Line Items] | |||||
Debt financing commitments | 26,300,000,000 | ||||
EMC | Minimum | |||||
Business Acquisition [Line Items] | |||||
Cash on hand | $ 2,950,000,000 | ||||
EMC | Class V Common Stock | |||||
Business Acquisition [Line Items] | |||||
Share issuance ratio | 0.111 | ||||
EMC | Subsidiaries | Secured Debt | |||||
Business Acquisition [Line Items] | |||||
Proceeds from debt | $ 20,000,000,000 | ||||
EMC | Subsidiaries | Unsecured Notes and Debentures | |||||
Business Acquisition [Line Items] | |||||
Proceeds from debt | $ 3,250,000,000 | ||||
EMC | Common Stock | Class V Common Stock | |||||
Business Acquisition [Line Items] | |||||
Shares of Class V Common Stock issuable in the EMC merger (in shares) | 222,966,450 | ||||
Current economic interest (as a percent) | 65.00% | ||||
EMC | Private Placement | |||||
Business Acquisition [Line Items] | |||||
Committed equity financing | $ 4,400,000,000 |
EMC MERGER TRANSACTION, DIVES39
EMC MERGER TRANSACTION, DIVESTITURES AND BASIS OF PRESENTATION - Divestitures (Details) - USD ($) $ in Billions | Jun. 19, 2016 | Mar. 27, 2016 |
Discontinued Operations, Held-for-sale | Dell Services | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Cash consideration | $ 2.4 | $ 3.1 |
EMC MERGER TRANSACTION, DIVES40
EMC MERGER TRANSACTION, DIVESTITURES AND BASIS OF PRESENTATION - SecureWorks Initial Public Offering (Details) - SecureWorks - Initial Public Offering | Jul. 29, 2016 | Jan. 29, 2016 |
Subsidiary, Sale of Stock [Line Items] | ||
Ownership percentage, pre-IPO | 100.00% | |
Economic ownership percentage, post-IPO | 86.80% | |
Voting ownership percentage, post-IPO | 98.50% |
EMC MERGER TRANSACTION, DIVES41
EMC MERGER TRANSACTION, DIVESTITURES AND BASIS OF PRESENTATION - Recently Issued Accounting Pronouncements (Details) - USD ($) $ in Millions | Jul. 29, 2016 | Jan. 29, 2016 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Debt issuance costs | $ 139 | $ 128 |
Accounting Standards Update 2015-03 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Debt issuance costs | $ 128 |
DISCONTINUED OPERATIONS - Narra
DISCONTINUED OPERATIONS - Narrative (Details) - Discontinued Operations, Held-for-sale - USD ($) $ in Billions | 12 Months Ended | ||
Feb. 03, 2017 | Jun. 19, 2016 | Mar. 27, 2016 | |
Dell Services | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Cash consideration | $ 2.4 | $ 3.1 | |
Minimum | Dell Services | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Cash consideration | 2.9 | ||
Minimum | Dell Software Group | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Cash consideration | 2.3 | ||
Minimum | Forecast | Dell Services | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Pre-tax gain on sale | $ 1.7 | ||
Minimum | Forecast | Dell Software Group | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Pre-tax gain on sale | 1 | ||
Maximum | Dell Services | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Cash consideration | $ 3.1 | ||
Maximum | Dell Software Group | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Cash consideration | $ 2.6 | ||
Maximum | Forecast | Dell Services | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Pre-tax gain on sale | 2 | ||
Maximum | Forecast | Dell Software Group | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Pre-tax gain on sale | $ 1.3 |
DISCONTINUED OPERATIONS - Key f
DISCONTINUED OPERATIONS - Key financial results of the Services business (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 29, 2016 | Jul. 31, 2015 | Jul. 29, 2016 | Jul. 31, 2015 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Income from discontinued operations, net of income taxes | $ 836 | $ 27 | $ 1,317 | $ (31) |
Dell Services | Discontinued Operations, Held-for-sale | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Net revenue | 694 | 694 | 1,368 | 1,394 |
Cost of net revenue | 536 | 546 | 1,077 | 1,138 |
Operating expenses | 98 | 105 | 211 | 207 |
Income from discontinued operations before income taxes | 60 | 43 | 80 | 49 |
Income tax provision (benefit) | (453) | 14 | (914) | 48 |
Income from discontinued operations, net of income taxes | 513 | 29 | 994 | 1 |
Dell Software Group | Discontinued Operations, Held-for-sale | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Net revenue | 321 | 330 | 642 | 643 |
Cost of net revenue | 85 | 89 | 175 | 185 |
Operating expenses | 239 | 220 | 488 | 461 |
Interest and other, net | (7) | (2) | 7 | (6) |
Income from discontinued operations before income taxes | (10) | 19 | (14) | (9) |
Income tax provision (benefit) | (333) | 21 | (337) | 23 |
Income from discontinued operations, net of income taxes | $ 323 | $ (2) | $ 323 | $ (32) |
DISCONTINUED OPERATIONS - Major
DISCONTINUED OPERATIONS - Major classes of assets and liabilities (Details) - USD ($) $ in Millions | Jul. 29, 2016 | Jan. 29, 2016 |
Current assets: | ||
Total current assets | $ 4,125 | $ 4,372 |
Current liabilities: | ||
Total current liabilities | 1,522 | 1,829 |
Dell Software Group | Discontinued Operations, Held-for-sale | ||
Current assets: | ||
Cash and cash equivalents | 147 | 254 |
Accounts receivable, net | 210 | 244 |
Inventories, net | 20 | 24 |
Other current assets | 9 | 11 |
Total current assets | 386 | 533 |
Property, plant, and equipment, net | 111 | 106 |
Goodwill | 1,391 | 1,391 |
Intangible assets, net | 557 | 613 |
Other non-current assets | 10 | 8 |
Total assets | 2,455 | 2,651 |
Current liabilities: | ||
Accounts payable | 20 | 15 |
Accrued and other | 124 | 160 |
Short-term deferred revenue | 603 | 625 |
Total current liabilities | 747 | 800 |
Long-term deferred revenue | 340 | 333 |
Other non-current liabilities | 79 | 82 |
Total liabilities | 1,166 | 1,215 |
Dell Software Group | Discontinued Operations, Held-for-sale | Current Assets Held for Sale | ||
Current liabilities: | ||
Deferred tax liability | 75 | |
Dell Services | Discontinued Operations, Held-for-sale | ||
Current assets: | ||
Accounts receivable, net | 488 | 443 |
Other current assets | 68 | 73 |
Total current assets | 556 | 516 |
Property, plant, and equipment, net | 545 | 515 |
Goodwill | 252 | 252 |
Intangible assets, net | 376 | 388 |
Other non-current assets | 16 | 50 |
Total assets | 1,745 | 1,721 |
Current liabilities: | ||
Accounts payable | 147 | 173 |
Accrued and other | 160 | 180 |
Short-term deferred revenue | 77 | 82 |
Total current liabilities | 384 | 435 |
Long-term deferred revenue | 47 | 53 |
Other non-current liabilities | 0 | 126 |
Total liabilities | $ 431 | $ 614 |
DISCONTINUED OPERATIONS - Signi
DISCONTINUED OPERATIONS - Significant cash flow items (Details) - Discontinued Operations, Held-for-sale - USD ($) $ in Millions | 6 Months Ended | |
Jul. 29, 2016 | Jul. 31, 2015 | |
Dell Software Group | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Depreciation and amortization | $ 66 | $ 83 |
Capital expenditures | (15) | (15) |
Dell Services | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Depreciation and amortization | 32 | 110 |
Capital expenditures | $ (47) | $ (41) |
FAIR VALUE MEASUREMENTS - Compa
FAIR VALUE MEASUREMENTS - Company's hierarchy for its assets and liabilities measured at fair value on a recurring basis (Details) - USD ($) $ in Millions | Jul. 29, 2016 | Jan. 29, 2016 |
Assets: | ||
Derivative instruments | $ 87 | $ 195 |
Liabilities: | ||
Derivative instruments | 28 | 12 |
Fair Value, Measurements, Recurring | ||
Assets: | ||
Derivative instruments | 87 | 195 |
Common stock purchase agreement | 0 | 10 |
Total assets | 27,778 | 4,037 |
Liabilities: | ||
Derivative instruments | 28 | 12 |
Debt - Other | 0 | 28 |
Common stock purchase agreement | 1 | 0 |
Total liabilities | 29 | 40 |
Fair Value, Measurements, Recurring | Money market funds | ||
Assets: | ||
Cash equivalents: | 4,406 | 3,832 |
Fair Value, Measurements, Recurring | Money market funds | ||
Assets: | ||
Cash equivalents: | 23,285 | 0 |
Fair Value, Measurements, Recurring | Level 1 | ||
Assets: | ||
Derivative instruments | 0 | 0 |
Common stock purchase agreement | 0 | 0 |
Total assets | 27,691 | 3,832 |
Liabilities: | ||
Derivative instruments | 0 | 0 |
Debt - Other | 0 | 0 |
Common stock purchase agreement | 0 | 0 |
Total liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Money market funds | ||
Assets: | ||
Cash equivalents: | 4,406 | 3,832 |
Fair Value, Measurements, Recurring | Level 1 | Money market funds | ||
Assets: | ||
Cash equivalents: | 23,285 | 0 |
Fair Value, Measurements, Recurring | Level 2 | ||
Assets: | ||
Derivative instruments | 87 | 195 |
Common stock purchase agreement | 0 | 0 |
Total assets | 87 | 195 |
Liabilities: | ||
Derivative instruments | 28 | 12 |
Debt - Other | 0 | 0 |
Common stock purchase agreement | 0 | 0 |
Total liabilities | 28 | 12 |
Fair Value, Measurements, Recurring | Level 2 | Money market funds | ||
Assets: | ||
Cash equivalents: | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | Money market funds | ||
Assets: | ||
Cash equivalents: | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | ||
Assets: | ||
Derivative instruments | 0 | 0 |
Common stock purchase agreement | 0 | 10 |
Total assets | 0 | 10 |
Liabilities: | ||
Derivative instruments | 0 | 0 |
Debt - Other | 0 | 28 |
Common stock purchase agreement | 1 | 0 |
Total liabilities | 1 | 28 |
Fair Value, Measurements, Recurring | Level 3 | Money market funds | ||
Assets: | ||
Cash equivalents: | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Money market funds | ||
Assets: | ||
Cash equivalents: | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Narra
FAIR VALUE MEASUREMENTS - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 29, 2016 | Jul. 29, 2016 | Jul. 31, 2015 | Jan. 29, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Proceeds from debt | $ 2,148 | $ 3,078 | ||
Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Common stock purchase agreement | $ 1 | 1 | $ 0 | |
Secured And Unsecured Notes | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Proceeds from debt | 23,250 | |||
Money market funds | Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash equivalents: | $ 23,285 | $ 23,285 | $ 0 |
FAIR VALUE MEASUREMENTS - Carry
FAIR VALUE MEASUREMENTS - Carrying value and estimated fair value of outstanding debt (Details) - USD ($) $ in Millions | Jul. 29, 2016 | Jan. 29, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total long-term debt | $ 33,836 | $ 10,650 |
Term Loan Facilities | Secured Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total long-term debt | 5,900 | 6,100 |
Fair Value | 6,100 | 6,200 |
Senior First Lien Notes | Secured Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total long-term debt | 1,400 | 1,400 |
Fair Value | 1,500 | 1,500 |
First Lien Notes | Secured Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total long-term debt | 20,000 | 0 |
Fair Value | 21,400 | 0 |
Unsecured Notes and Debentures | Unsecured Notes and Debentures | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total long-term debt | 2,300 | 2,700 |
Fair Value | 2,500 | 2,700 |
Senior Unsecured Notes | Unsecured Notes and Debentures | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total long-term debt | 3,300 | 0 |
Fair Value | $ 3,500 | $ 0 |
FINANCIAL SERVICES - Financing
FINANCIAL SERVICES - Financing Receivables Narrative (Details) $ in Millions | 3 Months Ended | 6 Months Ended |
Jul. 29, 2016USD ($) | Jul. 29, 2016USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
New financing originations | $ 1,000 | $ 1,900 |
Revolving | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Repayment term (in years) | 12 months | |
Fixed-term | ||
Future maturities | ||
Fiscal 2,017 | 885 | $ 885 |
Fiscal 2,018 | 1,322 | 1,322 |
Fiscal 2,019 | 747 | 747 |
Fiscal 2,020 | 239 | 239 |
Fiscal 2,021 | $ 52 | $ 52 |
Fixed-term | Business customers | Minimum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Repayment term (in years) | 2 years | |
Fixed-term | Business customers | Maximum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Repayment term (in years) | 4 years | |
Fixed-term | Qualified small businesses, large commercial accounts, governmental organizations, educational entities, and certain individual consumer customers | Minimum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Repayment term (in years) | 3 years | |
Fixed-term | Qualified small businesses, large commercial accounts, governmental organizations, educational entities, and certain individual consumer customers | Maximum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Repayment term (in years) | 5 years |
FINANCIAL SERVICES - Financin50
FINANCIAL SERVICES - Financing Receivables (Details) - USD ($) $ in Millions | Jul. 29, 2016 | Apr. 29, 2016 | Jan. 29, 2016 | Jul. 31, 2015 | May 01, 2015 | Jan. 30, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Financing receivables, net | $ 5,138 | $ 5,092 | ||||
Short-term | 2,867 | 2,915 | ||||
Long-term | 2,271 | 2,177 | ||||
Customer receivables | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Customer receivables, gross | 4,829 | 4,810 | ||||
Allowances for losses | (156) | $ (165) | (176) | $ (177) | $ (187) | $ (194) |
Financing receivables, net | 4,673 | 4,634 | ||||
Residual interest | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Financing receivables, net | 465 | 458 | ||||
Revolving | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Financing receivables, net | 943 | 1,055 | ||||
Short-term | 943 | 1,055 | ||||
Long-term | 0 | 0 | ||||
Revolving | Customer receivables | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Customer receivables, gross | 1,043 | 1,173 | ||||
Allowances for losses | (100) | (107) | (118) | (127) | (134) | (145) |
Financing receivables, net | 943 | 1,055 | ||||
Fixed-term | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Financing receivables, net | 4,195 | 4,037 | ||||
Short-term | 1,924 | 1,860 | ||||
Long-term | 2,271 | 2,177 | ||||
Fixed-term | Customer receivables | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Customer receivables, gross | 3,786 | 3,637 | ||||
Allowances for losses | (56) | $ (58) | (58) | $ (50) | $ (53) | $ (49) |
Financing receivables, net | 3,730 | 3,579 | ||||
Fixed-term | Residual interest | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Financing receivables, net | $ 465 | $ 458 |
FINANCIAL SERVICES - Changes in
FINANCIAL SERVICES - Changes in Allowance for financing receivable (Details) - Customer receivables - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 29, 2016 | Jul. 31, 2015 | Jul. 29, 2016 | Jul. 31, 2015 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Balance at beginning of period | $ 165 | $ 187 | $ 176 | $ 194 |
Charge-offs, net of recoveries | (25) | (28) | (53) | (61) |
Provision charged to income statement | 16 | 18 | 33 | 44 |
Balance at end of period | 156 | 177 | 156 | 177 |
Revolving | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Balance at beginning of period | 107 | 134 | 118 | 145 |
Charge-offs, net of recoveries | (23) | (21) | (48) | (52) |
Provision charged to income statement | 16 | 14 | 30 | 34 |
Balance at end of period | 100 | 127 | 100 | 127 |
Fixed-term | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Balance at beginning of period | 58 | 53 | 58 | 49 |
Charge-offs, net of recoveries | (2) | (7) | (5) | (9) |
Provision charged to income statement | 0 | 4 | 3 | 10 |
Balance at end of period | $ 56 | $ 50 | $ 56 | $ 50 |
FINANCIAL SERVICES - Aging (Det
FINANCIAL SERVICES - Aging (Details) - USD ($) $ in Millions | Jul. 29, 2016 | Jan. 29, 2016 |
Customer receivables | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | $ 4,532 | $ 4,460 |
Total customer receivables, gross | 4,829 | 4,810 |
Revolving | Customer receivables | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total customer receivables, gross | 1,043 | 1,173 |
Revolving | Dell Preferred Account (DPA) | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total customer receivables, gross | 836 | 947 |
Revolving | Dell Preferred Account (DPA) | Customer receivables | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 725 | 812 |
Total customer receivables, gross | 836 | 947 |
Revolving | Dell Business Credit (DBC) | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total customer receivables, gross | 207 | 226 |
Revolving | Dell Business Credit (DBC) | Customer receivables | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 186 | 202 |
Total customer receivables, gross | 207 | 226 |
Fixed-term | Customer receivables | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total customer receivables, gross | 3,786 | 3,637 |
Fixed-term | Consumer and Small Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total customer receivables, gross | 333 | 329 |
Fixed-term | Consumer and Small Commercial | Customer receivables | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 318 | 315 |
Total customer receivables, gross | 333 | 329 |
Fixed-term | Medium and Large Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total customer receivables, gross | 3,453 | 3,308 |
Fixed-term | Medium and Large Commercial | Customer receivables | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 3,303 | 3,131 |
Total customer receivables, gross | 3,453 | 3,308 |
Past Due 1 — 90 Days | Customer receivables | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 243 | 303 |
Past Due 1 — 90 Days | Revolving | Dell Preferred Account (DPA) | Customer receivables | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 84 | 99 |
Past Due 1 — 90 Days | Revolving | Dell Business Credit (DBC) | Customer receivables | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 17 | 20 |
Past Due 1 — 90 Days | Fixed-term | Consumer and Small Commercial | Customer receivables | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 13 | 13 |
Past Due 1 — 90 Days | Fixed-term | Medium and Large Commercial | Customer receivables | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 129 | 171 |
Past Due 90 Days | Customer receivables | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 54 | 47 |
Past Due 90 Days | Revolving | Dell Preferred Account (DPA) | Customer receivables | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 27 | 36 |
Past Due 90 Days | Revolving | Dell Business Credit (DBC) | Customer receivables | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 4 | 4 |
Past Due 90 Days | Fixed-term | Consumer and Small Commercial | Customer receivables | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 2 | 1 |
Past Due 90 Days | Fixed-term | Medium and Large Commercial | Customer receivables | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | $ 21 | $ 6 |
FINANCIAL SERVICES - Credit Qua
FINANCIAL SERVICES - Credit Quality (Details) - USD ($) $ in Millions | Jul. 29, 2016 | Jan. 29, 2016 |
Revolving | Dell Preferred Account (DPA) | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Customer receivables, gross | $ 836 | $ 947 |
Revolving | Dell Business Credit (DBC) | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Customer receivables, gross | 207 | 226 |
Fixed-term | Consumer and Small Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Customer receivables, gross | 333 | 329 |
Fixed-term | Medium and Large Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Customer receivables, gross | 3,453 | 3,308 |
Higher | Revolving | Dell Preferred Account (DPA) | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Customer receivables, gross | 139 | 148 |
Higher | Revolving | Dell Business Credit (DBC) | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Customer receivables, gross | 62 | 68 |
Higher | Fixed-term | Consumer and Small Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Customer receivables, gross | 95 | 93 |
Higher | Fixed-term | Medium and Large Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Customer receivables, gross | 1,604 | 1,597 |
Mid | Revolving | Dell Preferred Account (DPA) | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Customer receivables, gross | 248 | 270 |
Mid | Revolving | Dell Business Credit (DBC) | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Customer receivables, gross | 61 | 65 |
Mid | Fixed-term | Consumer and Small Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Customer receivables, gross | 144 | 136 |
Mid | Fixed-term | Medium and Large Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Customer receivables, gross | 1,153 | 1,075 |
Lower | Revolving | Dell Preferred Account (DPA) | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Customer receivables, gross | 449 | 529 |
Lower | Revolving | Dell Business Credit (DBC) | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Customer receivables, gross | 84 | 93 |
Lower | Fixed-term | Consumer and Small Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Customer receivables, gross | 94 | 100 |
Lower | Fixed-term | Medium and Large Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Customer receivables, gross | $ 696 | $ 636 |
FINANCIAL SERVICES - Securitiza
FINANCIAL SERVICES - Securitizations and Structured Financing Debt (Details) - Variable Interest Entity, Primary Beneficiary - USD ($) $ in Millions | Jul. 29, 2016 | Jan. 29, 2016 |
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Financing receivables held by consolidated VIEs, net | $ 3,312 | $ 3,340 |
Short-term, net | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Financing receivables held by consolidated VIEs, net | 2,057 | 2,125 |
Long-term, net | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Financing receivables held by consolidated VIEs, net | $ 1,255 | $ 1,215 |
FINANCIAL SERVICES - Securiti55
FINANCIAL SERVICES - Securitizations and Structured Financing Debt Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jul. 29, 2016 | Jul. 31, 2015 | Jul. 29, 2016 | Jul. 31, 2015 | Jan. 29, 2016 | |
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | |||||
Total debt, principal amount | $ 36,693 | $ 36,693 | $ 13,980 | ||
Financing receivables sold | 98 | $ 31 | |||
Variable Interest Entity, Primary Beneficiary | |||||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | |||||
Transfers | 800 | $ 800 | 1,400 | $ 1,800 | |
Structured financing debt | |||||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | |||||
Total debt, principal amount | 3,488 | 3,488 | |||
Secured Debt | Structured financing debt | |||||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | |||||
Total debt, principal amount | 3,488 | 3,488 | 3,411 | ||
Asset-backed Securities | Structured financing debt | |||||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | |||||
Total debt, principal amount | $ 2,000 | $ 2,000 | |||
Asset-backed Securities | Structured financing debt | Minimum | |||||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | |||||
Interest rate (as a percent) | 0.26% | 0.26% | |||
Asset-backed Securities | Structured financing debt | Maximum | |||||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | |||||
Interest rate (as a percent) | 3.61% | 3.61% | |||
Finance Leases and Revolving Loan Portfolio Segments | Secured Debt | Structured financing debt | |||||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | |||||
Total debt, principal amount | $ 900 | $ 900 | 1,300 | ||
Debt capacity | 2,100 | $ 2,100 | |||
Term | 4 years 6 months | ||||
Revolving Credit Facility | Line of Credit | Canada | |||||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | |||||
Debt capacity | 167 | $ 167 | |||
Term | 2 years | ||||
Revolving Credit Facility | Line of Credit | Europe | |||||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | |||||
Debt capacity | 665 | $ 665 | |||
Term | 4 years | ||||
Revolving Credit Facility | Line of Credit | Canada And Europe | |||||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | |||||
Structured loans | $ 580 | $ 580 | $ 559 |
DEBT - Outstanding debt (Detail
DEBT - Outstanding debt (Details) $ in Millions, € in Billions | Jul. 29, 2016USD ($) | Jan. 29, 2016USD ($) | Jun. 10, 2015USD ($) | Jun. 10, 2015EUR (€) |
Debt Instrument [Line Items] | ||||
Total debt, principal amount | $ 36,693 | $ 13,980 | ||
Unamortized discount, net of unamortized premium | (218) | (221) | ||
Debt issuance costs | (139) | (128) | ||
Total debt, carrying value | 36,336 | 13,631 | ||
Total short-term debt | 2,500 | 2,981 | ||
Total long-term debt | 33,836 | 10,650 | ||
Structured financing debt | ||||
Debt Instrument [Line Items] | ||||
Total debt, principal amount | 3,488 | |||
Secured Debt | Structured financing debt | ||||
Debt Instrument [Line Items] | ||||
Total debt, principal amount | $ 3,488 | $ 3,411 | ||
Secured Debt | 3.75% Floating rate due October 2018 (Term Loan C Facility) | ||||
Debt Instrument [Line Items] | ||||
Interest rate (as a percent) | 3.75% | 3.75% | ||
Total debt, principal amount | $ 834 | $ 1,003 | ||
Secured Debt | 4.00% Floating rate due April 2020 (Term Loan B Facility) | ||||
Debt Instrument [Line Items] | ||||
Interest rate (as a percent) | 4.00% | 4.00% | ||
Total debt, principal amount | $ 4,307 | $ 4,329 | $ 4,400 | |
Secured Debt | 4.00% Floating rate due April 2020 (Term Loan Euro Facility) | ||||
Debt Instrument [Line Items] | ||||
Interest rate (as a percent) | 4.00% | 4.00% | ||
Total debt, principal amount | $ 903 | $ 891 | € 0.8 | |
Secured Debt | 5.625% due October 2020 (Senior First Lien Notes) | ||||
Debt Instrument [Line Items] | ||||
Interest rate (as a percent) | 5.625% | 5.625% | ||
Total debt, principal amount | $ 1,400 | $ 1,400 | ||
Secured Debt | 3.48% due June 2019 | ||||
Debt Instrument [Line Items] | ||||
Interest rate (as a percent) | 3.48% | |||
Total debt, principal amount | $ 3,750 | 0 | ||
Secured Debt | 4.42% due June 2021 | ||||
Debt Instrument [Line Items] | ||||
Interest rate (as a percent) | 4.42% | |||
Total debt, principal amount | $ 4,500 | 0 | ||
Secured Debt | 5.45% due June 2023 | ||||
Debt Instrument [Line Items] | ||||
Interest rate (as a percent) | 5.45% | |||
Total debt, principal amount | $ 3,750 | 0 | ||
Secured Debt | 6.02% due June 2026 | ||||
Debt Instrument [Line Items] | ||||
Interest rate (as a percent) | 6.02% | |||
Total debt, principal amount | $ 4,500 | 0 | ||
Secured Debt | 8.10% due June 2036 | ||||
Debt Instrument [Line Items] | ||||
Interest rate (as a percent) | 8.10% | |||
Total debt, principal amount | $ 1,500 | 0 | ||
Secured Debt | 8.35% due June 2046 | ||||
Debt Instrument [Line Items] | ||||
Interest rate (as a percent) | 8.35% | |||
Total debt, principal amount | $ 2,000 | $ 0 | ||
Unsecured Notes and Debentures | 3.10% due April 2016 | ||||
Debt Instrument [Line Items] | ||||
Interest rate (as a percent) | 3.10% | 3.10% | ||
Total debt, principal amount | $ 0 | $ 400 | ||
Unsecured Notes and Debentures | 5.65% due April 2018 | ||||
Debt Instrument [Line Items] | ||||
Interest rate (as a percent) | 5.65% | 5.65% | ||
Total debt, principal amount | $ 500 | $ 500 | ||
Unsecured Notes and Debentures | 5.875% due June 2019 | ||||
Debt Instrument [Line Items] | ||||
Interest rate (as a percent) | 5.875% | 5.875% | ||
Total debt, principal amount | $ 600 | $ 600 | ||
Unsecured Notes and Debentures | 4.625% due April 2021 | ||||
Debt Instrument [Line Items] | ||||
Interest rate (as a percent) | 4.625% | 4.625% | ||
Total debt, principal amount | $ 400 | $ 400 | ||
Unsecured Notes and Debentures | 7.10% due April 2028 | ||||
Debt Instrument [Line Items] | ||||
Interest rate (as a percent) | 7.10% | 7.10% | ||
Total debt, principal amount | $ 300 | $ 300 | ||
Unsecured Notes and Debentures | 6.50% due April 2038 | ||||
Debt Instrument [Line Items] | ||||
Interest rate (as a percent) | 6.50% | 6.50% | ||
Total debt, principal amount | $ 388 | $ 388 | ||
Unsecured Notes and Debentures | 5.40% due September 2040 | ||||
Debt Instrument [Line Items] | ||||
Interest rate (as a percent) | 5.40% | 5.40% | ||
Total debt, principal amount | $ 265 | $ 265 | ||
Unsecured Notes and Debentures | 5.875% due June 2021 | ||||
Debt Instrument [Line Items] | ||||
Interest rate (as a percent) | 5.875% | |||
Total debt, principal amount | $ 1,625 | 0 | ||
Unsecured Notes and Debentures | 7.125% due June 2024 | ||||
Debt Instrument [Line Items] | ||||
Interest rate (as a percent) | 7.125% | |||
Total debt, principal amount | $ 1,625 | 0 | ||
Other | ||||
Debt Instrument [Line Items] | ||||
Total debt, principal amount | $ 58 | $ 93 |
DEBT - Narrative (Details)
DEBT - Narrative (Details) € in Billions | Oct. 29, 2013USD ($) | Jul. 29, 2016USD ($) | Jul. 29, 2016USD ($) | Jul. 31, 2015USD ($) | Sep. 07, 2016USD ($) | Jan. 29, 2016USD ($) | Jun. 10, 2015USD ($) | Jun. 10, 2015EUR (€) | Oct. 29, 2013EUR (€) | Oct. 27, 2013USD ($) |
Debt Instrument [Line Items] | ||||||||||
Proceeds from debt | $ 2,148,000,000 | $ 3,078,000,000 | ||||||||
Total debt, principal amount | $ 36,693,000,000 | 36,693,000,000 | $ 13,980,000,000 | |||||||
Term Loan Facilities and ABL Credit Facility | Dell Inc. | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt | 13,900,000,000 | 13,900,000,000 | ||||||||
Structured financing debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Total debt, principal amount | 3,488,000,000 | 3,488,000,000 | ||||||||
Secured And Unsecured Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Proceeds from debt | 23,250,000,000 | |||||||||
Prepaid interest deposited into escrow | 40,000,000 | |||||||||
Unsecured Notes and Debentures | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Repayments | 400,000,000 | |||||||||
Secured Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Repayments | 200,000,000 | |||||||||
Secured Debt | EMC | Debt Redemption Fee for Merger Termination | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt redemption fee | 200,000,000 | 200,000,000 | ||||||||
Secured Debt | Structured financing debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Total debt, principal amount | 3,488,000,000 | 3,488,000,000 | 3,411,000,000 | |||||||
Secured Debt | 3.75% Floating rate due October 2018 (Term Loan C Facility) | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt | $ 1,500,000,000 | |||||||||
Total debt, principal amount | 834,000,000 | $ 834,000,000 | 1,003,000,000 | |||||||
Principal amortization rate (as a percent) | 10.00% | 22.50% | ||||||||
Secured Debt | 4.00% Floating rate due April 2020 (Term Loan B Facility) | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt | $ 4,700,000,000 | |||||||||
Total debt, principal amount | 4,307,000,000 | $ 4,307,000,000 | 4,329,000,000 | $ 4,400,000,000 | ||||||
Secured Debt | 4.00% Floating rate due April 2020 (Term Loan Euro Facility) | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt | € | € 0.7 | |||||||||
Total debt, principal amount | 903,000,000 | 903,000,000 | 891,000,000 | € 0.8 | ||||||
Secured Debt | 4.00% Floating Rate Due April 2020 Term Loan And Euro Term Loan | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Principal amortization rate (as a percent) | 1.00% | |||||||||
Secured Debt | 5.625% due October 2020 (Senior First Lien Notes) | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt | $ 1,500,000,000 | |||||||||
Total debt, principal amount | 1,400,000,000 | 1,400,000,000 | $ 1,400,000,000 | |||||||
Secured Debt | ABL Credit Facility | Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum aggregate borrowings | 2,000,000,000 | 2,000,000,000 | ||||||||
Credit facility | $ 1,400,000,000 | $ 1,400,000,000 | ||||||||
Forecast | Secured And Unsecured Notes | EMC | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt issuance costs | $ 500,000,000 |
DEBT - Aggregate future maturit
DEBT - Aggregate future maturities (Details) - USD ($) $ in Millions | Jul. 29, 2016 | Jan. 29, 2016 |
Total maturities, principal amount | ||
2017 (remaining six months) | $ 1,347 | |
2,018 | 1,952 | |
2,019 | 1,527 | |
2,020 | 4,538 | |
2,021 | 6,449 | |
Thereafter | 20,880 | |
Total debt, principal amount | 36,693 | $ 13,980 |
Associated carrying value adjustments | ||
2017 (remaining six months) | (2) | |
2,018 | (2) | |
2,019 | (16) | |
2,020 | (7) | |
2,021 | (130) | |
Thereafter | (200) | |
Total | (357) | |
Total maturities, carrying value amount | ||
2017 (remaining six months) | 1,345 | |
2,018 | 1,950 | |
2,019 | 1,511 | |
2,020 | 4,531 | |
2,021 | 6,319 | |
Thereafter | 20,680 | |
Total debt, carrying value | 36,336 | 13,631 |
Other | ||
Total maturities, principal amount | ||
2017 (remaining six months) | 21 | |
2,018 | 9 | |
2,019 | 2 | |
2,020 | 0 | |
2,021 | 0 | |
Thereafter | 26 | |
Total debt, principal amount | 58 | $ 93 |
Structured Financing Debt | ||
Total maturities, principal amount | ||
2017 (remaining six months) | 1,121 | |
2,018 | 1,516 | |
2,019 | 691 | |
2,020 | 136 | |
2,021 | 23 | |
Thereafter | 1 | |
Total debt, principal amount | 3,488 | |
Term Loan Facilities, Senior First Lien Notes, and First Lien Notes | ||
Total maturities, principal amount | ||
2017 (remaining six months) | 205 | |
2,018 | 427 | |
2,019 | 334 | |
2,020 | 3,802 | |
2,021 | 6,426 | |
Thereafter | 16,250 | |
Total debt, principal amount | 27,444 | |
Unsecured Notes and Debentures | ||
Total maturities, principal amount | ||
2017 (remaining six months) | 0 | |
2,018 | 0 | |
2,019 | 500 | |
2,020 | 600 | |
2,021 | 0 | |
Thereafter | 4,603 | |
Total debt, principal amount | $ 5,703 |
DERIVATIVE INSTRUMENTS AND HE59
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Narrative (Details) | 6 Months Ended |
Jul. 29, 2016 | |
Designated as cash flow hedging instruments | Foreign Exchange Forward | |
Derivative [Line Items] | |
Term of derivative contract | 12 months |
Non-designated as hedging instruments | Foreign Exchange Forward, Monetary Assets and Liabilities | |
Derivative [Line Items] | |
Term of derivative contract | 3 months |
Non-designated as hedging instruments | Foreign Exchange Forward, Monetary Assets and Liabilities | Financing Receivables | |
Derivative [Line Items] | |
Term of derivative contract | 3 years |
Non-designated as hedging instruments | Interest Rate Swap | |
Derivative [Line Items] | |
Term of derivative contract | 3 years |
Non-designated as hedging instruments | Interest Rate Swap | Structured Financing Debt | |
Derivative [Line Items] | |
Term of derivative contract | 3 years |
DERIVATIVE INSTRUMENTS AND HE60
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Notional Amounts of Outstanding Derivative Instruments (Details) - USD ($) $ in Millions | Jul. 29, 2016 | Jan. 29, 2016 |
Foreign Exchange Contracts | ||
Derivative [Line Items] | ||
Notional amount | $ 4,291 | $ 4,932 |
Foreign Exchange Contracts | Designated as cash flow hedging instruments | ||
Derivative [Line Items] | ||
Notional amount | 3,782 | 3,947 |
Foreign Exchange Contracts | Non-designated as hedging instruments | ||
Derivative [Line Items] | ||
Notional amount | 509 | 985 |
Interest Rate Contracts | Non-designated as hedging instruments | ||
Derivative [Line Items] | ||
Notional amount | $ 757 | $ 1,017 |
DERIVATIVE INSTRUMENTS AND HE61
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Effect of Derivative Instruments on the Consolidated Statements of Financial Position and the Consolidated Statements of Income (Loss) (Details) - Derivatives in Cash Flow Hedging Relationships - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 29, 2016 | Jul. 31, 2015 | Jul. 29, 2016 | Jul. 31, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Recognized in Accumulated OCI, Net of Tax, on Derivatives (Effective Portion) | $ 58 | $ 66 | $ (107) | $ 60 |
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | (27) | 89 | (80) | 273 |
Gain (Loss) Recognized in Income on Derivative (Ineffective Portion) | 0 | (1) | (1) | (1) |
Foreign Exchange Contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Recognized in Accumulated OCI, Net of Tax, on Derivatives (Effective Portion) | 58 | 66 | (107) | 60 |
Foreign Exchange Contracts | Total net revenue | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | (21) | 82 | (66) | 255 |
Foreign Exchange Contracts | Total cost of net revenue | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | (6) | 7 | (14) | 18 |
Interest Rate Contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Recognized in Accumulated OCI, Net of Tax, on Derivatives (Effective Portion) | 0 | 0 | 0 | 0 |
Interest Rate Contracts | Interest and other, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | 0 | 0 | 0 | 0 |
Gain (Loss) Recognized in Income on Derivative (Ineffective Portion) | $ 0 | $ (1) | $ (1) | $ (1) |
DERIVATIVE INSTRUMENTS AND HE62
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Fair Value of Derivative Instruments in the Consolidated Statements of Financial Position (Details) - USD ($) $ in Millions | Jul. 29, 2016 | Jan. 29, 2016 |
Derivatives, Fair Value [Line Items] | ||
Derivative asset, asset position | $ 271 | $ 404 |
Derivative asset, liability position | (184) | (209) |
Derivative assets, net | 87 | 195 |
Derivative liability, asset position | 184 | 209 |
Derivative liability, liability position | (212) | (221) |
Derivative liabilities, net | (28) | (12) |
Derivative contract, asset position | 59 | 183 |
Derivative contract, liability position | 0 | 0 |
Net asset (liability) | 59 | 183 |
Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, net | 82 | 192 |
Other Non- Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, net | 5 | 3 |
Other Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities, net | (25) | (5) |
Other Non-Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities, net | (3) | (7) |
Designated as cash flow hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Net asset (liability) | 91 | 89 |
Designated as cash flow hedging instruments | Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, net | 70 | 89 |
Designated as cash flow hedging instruments | Other Non- Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, net | 0 | 0 |
Designated as cash flow hedging instruments | Other Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities, net | 21 | 0 |
Designated as cash flow hedging instruments | Other Non-Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities, net | 0 | 0 |
Designated as cash flow hedging instruments | Foreign Exchange Contracts | ||
Derivatives, Fair Value [Line Items] | ||
Derivative contract, asset position | 103 | 100 |
Derivative contract, liability position | (12) | (11) |
Designated as cash flow hedging instruments | Foreign Exchange Contracts | Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, asset position | 78 | 100 |
Derivative asset, liability position | (8) | (11) |
Designated as cash flow hedging instruments | Foreign Exchange Contracts | Other Non- Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, asset position | 0 | 0 |
Derivative asset, liability position | 0 | 0 |
Designated as cash flow hedging instruments | Foreign Exchange Contracts | Other Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, asset position | 25 | 0 |
Derivative liability, liability position | (4) | 0 |
Designated as cash flow hedging instruments | Foreign Exchange Contracts | Other Non-Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, asset position | 0 | 0 |
Derivative liability, liability position | 0 | 0 |
Non-designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Net asset (liability) | (32) | 94 |
Non-designated as hedging instruments | Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, net | 12 | 103 |
Non-designated as hedging instruments | Other Non- Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, net | 5 | 3 |
Non-designated as hedging instruments | Other Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities, net | (46) | (5) |
Non-designated as hedging instruments | Other Non-Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities, net | (3) | (7) |
Non-designated as hedging instruments | Foreign Exchange Contracts | ||
Derivatives, Fair Value [Line Items] | ||
Derivative contract, asset position | 168 | 302 |
Derivative contract, liability position | (198) | (206) |
Non-designated as hedging instruments | Foreign Exchange Contracts | Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, asset position | 133 | 301 |
Derivative asset, liability position | (121) | (198) |
Non-designated as hedging instruments | Foreign Exchange Contracts | Other Non- Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, asset position | 5 | 1 |
Derivative asset, liability position | 0 | 0 |
Non-designated as hedging instruments | Foreign Exchange Contracts | Other Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, asset position | 30 | 0 |
Derivative liability, liability position | (76) | (5) |
Non-designated as hedging instruments | Foreign Exchange Contracts | Other Non-Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, asset position | 0 | 0 |
Derivative liability, liability position | (1) | (3) |
Non-designated as hedging instruments | Interest Rate Contracts | ||
Derivatives, Fair Value [Line Items] | ||
Derivative contract, asset position | 0 | 2 |
Derivative contract, liability position | (2) | (4) |
Non-designated as hedging instruments | Interest Rate Contracts | Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, asset position | 0 | 0 |
Derivative asset, liability position | 0 | 0 |
Non-designated as hedging instruments | Interest Rate Contracts | Other Non- Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, asset position | 0 | 2 |
Derivative asset, liability position | 0 | 0 |
Non-designated as hedging instruments | Interest Rate Contracts | Other Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, asset position | 0 | 0 |
Derivative liability, liability position | 0 | 0 |
Non-designated as hedging instruments | Interest Rate Contracts | Other Non-Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, asset position | 0 | 0 |
Derivative liability, liability position | $ (2) | $ (4) |
DERIVATIVE INSTRUMENTS AND HE63
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Gross amounts of derivative instruments, amounts offset due to master netting agreements (Details) - USD ($) $ in Millions | Jul. 29, 2016 | Jan. 29, 2016 |
Financial assets | ||
Gross Amounts of Recognized Assets/ (Liabilities) | $ 271 | $ 404 |
Gross Amounts Offset in the Statement of Financial Position | (184) | (209) |
Net Amounts of Assets/ (Liabilities) Presented in the Statement of Financial Position | 87 | 195 |
Financial Instruments | 0 | 0 |
Cash Collateral Received or Pledged | 0 | 0 |
Net Amount | 87 | 195 |
Financial liabilities | ||
Gross Amounts of Recognized Assets/ (Liabilities) | (212) | (221) |
Gross Amounts Offset in the Statement of Financial Position | 184 | 209 |
Net Amounts of Assets/ (Liabilities) Presented in the Statement of Financial Position | (28) | (12) |
Financial Instruments | 0 | 0 |
Cash Collateral Received or Pledged | 0 | 0 |
Net Amount | (28) | (12) |
Total Derivative Instruments | ||
Gross Amounts of Recognized Assets/ (Liabilities) | 59 | 183 |
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 |
Net Amounts of Assets/ (Liabilities) Presented in the Statement of Financial Position | 59 | 183 |
Financial Instruments | 0 | 0 |
Cash Collateral Received or Pledged | 0 | 0 |
Net Amount | $ 59 | $ 183 |
GOODWILL AND INTANGIBLE ASSET64
GOODWILL AND INTANGIBLE ASSETS - Goodwill Roll Forward (Details) $ in Millions | 6 Months Ended |
Jul. 29, 2016USD ($) | |
Goodwill [Roll Forward] | |
Balances at beginning of period | $ 8,406 |
Goodwill recognized during the period | 0 |
Adjustments | 0 |
Balances at end of period | 8,406 |
Operating Segments | Client Solutions | |
Goodwill [Roll Forward] | |
Balances at beginning of period | 4,428 |
Goodwill recognized during the period | 0 |
Adjustments | 0 |
Balances at end of period | 4,428 |
Operating Segments | Enterprise Solutions Group | |
Goodwill [Roll Forward] | |
Balances at beginning of period | 3,907 |
Goodwill recognized during the period | 0 |
Adjustments | 0 |
Balances at end of period | 3,907 |
Corporate | |
Goodwill [Roll Forward] | |
Balances at beginning of period | 71 |
Goodwill recognized during the period | 0 |
Adjustments | 0 |
Balances at end of period | $ 71 |
GOODWILL AND INTANGIBLE ASSET65
GOODWILL AND INTANGIBLE ASSETS - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jul. 29, 2016 | Jul. 31, 2015 | Jul. 29, 2016 | Jul. 31, 2015 | Oct. 30, 2015 | |
Goodwill [Line Items] | |||||
Goodwill impairment | $ 0 | ||||
Accumulated impairment charge, goodwill | $ 0 | 0 | |||
Amortization of intangible assets | $ 491,000,000 | $ 492,000,000 | 982,000,000 | $ 986,000,000 | |
Impairment of intangible assets | $ 0 | $ 0 | |||
Minimum | All Segments Excluding Dell Software Group | |||||
Goodwill [Line Items] | |||||
Percentage of fair value in excess of carrying value | 15.00% |
GOODWILL AND INTANGIBLE ASSET66
GOODWILL AND INTANGIBLE ASSETS - Intangible Assets (Details) - USD ($) $ in Millions | Jul. 29, 2016 | Jan. 29, 2016 |
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross | $ 11,723 | $ 11,723 |
Accumulated Amortization | (5,563) | (4,581) |
Net | 6,160 | 7,142 |
Indefinite-lived intangible assets | ||
Gross | 1,435 | 1,435 |
Indefinite-lived intangible assets | 1,435 | 1,435 |
Total intangible assets | ||
Gross | 13,158 | 13,158 |
Accumulated Amortization | (5,563) | (4,581) |
Net | 7,595 | 8,577 |
Customer relationships | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross | 9,869 | 9,869 |
Accumulated Amortization | (4,363) | (3,600) |
Net | 5,506 | 6,269 |
Total intangible assets | ||
Accumulated Amortization | (4,363) | (3,600) |
Technology | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross | 1,536 | 1,536 |
Accumulated Amortization | (1,066) | (871) |
Net | 470 | 665 |
Total intangible assets | ||
Accumulated Amortization | (1,066) | (871) |
Trade names | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross | 318 | 318 |
Accumulated Amortization | (134) | (110) |
Net | 184 | 208 |
Total intangible assets | ||
Accumulated Amortization | $ (134) | $ (110) |
GOODWILL AND INTANGIBLE ASSET67
GOODWILL AND INTANGIBLE ASSETS - Estimated future annual pre-tax amortization expense (Details) - USD ($) $ in Millions | Jul. 29, 2016 | Jan. 29, 2016 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2017 (remaining six months) | $ 964 | |
2,018 | 1,712 | |
2,019 | 1,632 | |
2,020 | 765 | |
2,021 | 576 | |
Thereafter | 511 | |
Net | $ 6,160 | $ 7,142 |
WARRANTY AND DEFERRED EXTENDE68
WARRANTY AND DEFERRED EXTENDED WARRANTY REVENUE - Changes in the Company's liabilities for standard limited warranties (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 29, 2016 | Jul. 31, 2015 | Jul. 29, 2016 | Jul. 31, 2015 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||||
Warranty liability at beginning of period | $ 561 | $ 675 | $ 574 | $ 679 |
Costs accrued for new warranty contracts and changes in estimates for pre-existing warranties | 182 | 201 | 382 | 403 |
Service obligations honored | (178) | (223) | (391) | (429) |
Warranty liability at end of period | 565 | 653 | 565 | 653 |
Current portion | 385 | 434 | 385 | 434 |
Non-current portion | $ 180 | $ 219 | $ 180 | $ 219 |
WARRANTY AND DEFERRED EXTENDE69
WARRANTY AND DEFERRED EXTENDED WARRANTY REVENUE - Changes in the Company's liabilities for deferred revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jul. 29, 2016 | Jul. 31, 2015 | Jul. 29, 2016 | Jul. 31, 2015 | Jan. 29, 2016 | |
Movement in Deferred Revenue [Roll Forward] | |||||
Current portion | $ 3,916 | $ 3,916 | $ 3,632 | ||
Non-current portion | 4,154 | 4,154 | $ 4,089 | ||
Deferred extended warranty revenue | |||||
Movement in Deferred Revenue [Roll Forward] | |||||
Deferred extended warranty revenue at beginning of period | 7,434 | $ 6,753 | 7,229 | $ 6,573 | |
Revenue deferred for new extended warranties | 1,092 | 1,118 | 2,240 | 2,173 | |
Service revenue recognized | (973) | (888) | (1,916) | (1,763) | |
Deferred extended warranty revenue at end of period | 7,553 | 6,983 | 7,553 | 6,983 | |
Current portion | 3,507 | 3,115 | 3,507 | 3,115 | |
Non-current portion | $ 4,046 | $ 3,868 | $ 4,046 | $ 3,868 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ / shares in Units, $ in Millions | Jun. 29, 2016USD ($)shares | Dec. 07, 2015claim | Jul. 28, 2015shares | Feb. 25, 2014claimshares | Jul. 29, 2016USD ($)claim$ / sharesshares | May 31, 2016$ / sharesshares | May 11, 2016shares | May 10, 2016shares | Jan. 29, 2016USD ($) | Jul. 30, 2015shares | Oct. 29, 2013$ / shares | Dec. 23, 2009€ / personal_computer |
Settled Litigation | Maximum | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Levy (in euro per personal computer) | € / personal_computer | 13.65 | |||||||||||
Copyright Levies | Settled Litigation | Minimum | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Levy (in euro per personal computer) | € / personal_computer | 3.15 | |||||||||||
EMC Merger Litigation | Pending Litigation | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Number of lawsuits | claim | 15 | |||||||||||
EMC Merger Litigation | Judicial Ruling | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Number of plaintiffs | claim | 9 | |||||||||||
Appraisal Proceedings | Dell Inc. | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Cash consideration (in dollars per share) | $ / shares | $ 13.75 | |||||||||||
Settlement amount | $ | $ 463 | |||||||||||
Appraisal Proceedings | Pending Litigation | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Accrual | $ | $ 129 | $ 593 | ||||||||||
Fair value (in dollars per share) | $ / shares | $ 17.62 | $ 12.68 | ||||||||||
Number of new claims filed | claim | 13 | |||||||||||
Number of dissenting shares | 38,000,000 | |||||||||||
Share price sought by plaintiffs (in dollars per share) | $ / shares | $ 28.61 | |||||||||||
Number of shares subject to appraisal demands | 31,653,905 | 5,505,730 | 30,730,930 | |||||||||
Appraisal Proceedings | Judicial Ruling | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Number of dissenting shares | 2,530,322 | |||||||||||
Appraisal Proceedings | Settled Litigation | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Number of share subject to appraisal demands that were dismissed | 30,730,930 | 922,975 | ||||||||||
Federal Reserve Discount Rate | Appraisal Proceedings | Pending Litigation | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Interest rate (as a percent) | 5.00% | |||||||||||
Asserted And Unasserted Claim | Appraisal Proceedings | Pending Litigation | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Number of dissenting shares | 38,766,982 |
INCOME AND OTHER TAXES - Narrat
INCOME AND OTHER TAXES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jul. 29, 2016 | Jul. 31, 2015 | Jul. 29, 2016 | Jul. 31, 2015 | Jan. 29, 2016 | |
Income Tax Disclosure [Abstract] | |||||
Effective income tax rate (as a percent) | 7.70% | 10.20% | (6.50%) | 9.00% | |
Pre-tax losses | $ (286) | $ (325) | $ (648) | $ (811) | |
Tax charges on foreign earnings no longer permanently reinvested | 66 | $ 201 | |||
U.S. federal statutory rate (as a percent) | 35.00% | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||||
Unrecognized tax benefits | 3,200 | $ 3,200 | $ 3,100 | ||
Tax audit resolutions | Minimum | |||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||||
Reduction in unrecognized tax benefit | 300 | 300 | |||
Tax audit resolutions | Maximum | |||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||||
Reduction in unrecognized tax benefit | $ 750 | $ 750 |
ACCUMULATED OTHER COMPREHENSI72
ACCUMULATED OTHER COMPREHENSIVE LOSS - Accumulated other comprehensive income (loss), net of tax (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 29, 2016 | Jul. 31, 2015 | Jul. 29, 2016 | Jul. 31, 2015 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance at beginning of period | $ 1,466 | |||
Less: Other comprehensive income (loss) attributable to non-controlling interests | $ 0 | $ 0 | 0 | $ 0 |
Balance at end of period | 2,065 | 2,065 | ||
Foreign Currency Translation Adjustments | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance at beginning of period | (358) | |||
Balance at end of period | (316) | (316) | ||
Cash Flow Hedges | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance at beginning of period | 34 | |||
Balance at end of period | 8 | 8 | ||
Accumulated Other Comprehensive Loss | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance at beginning of period | (324) | |||
Balance at end of period | $ (308) | (308) | ||
Foreign Currency Translation Adjustments Including Portion Attributable to Noncontrolling Interest | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Other comprehensive income (loss) before reclassifications | 42 | |||
Amounts reclassified from accumulated other comprehensive loss | 0 | |||
Total other comprehensive income (loss), net of tax benefit (expense) of $(6) and $(5), respectively and $5 and $8, respectively | 42 | |||
Cash Flow Hedges Including Portion Attributable to Noncontrolling Interest | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Other comprehensive income (loss) before reclassifications | (107) | |||
Amounts reclassified from accumulated other comprehensive loss | 81 | |||
Total other comprehensive income (loss), net of tax benefit (expense) of $(6) and $(5), respectively and $5 and $8, respectively | (26) | |||
Accumulated Other Comprehensive Loss Including Portion Attributable to Noncontrolling Interest | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Other comprehensive income (loss) before reclassifications | (65) | |||
Amounts reclassified from accumulated other comprehensive loss | 81 | |||
Total other comprehensive income (loss), net of tax benefit (expense) of $(6) and $(5), respectively and $5 and $8, respectively | 16 | |||
Foreign Currency Adjustment Attributable to Noncontrolling Interest [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Less: Other comprehensive income (loss) attributable to non-controlling interests | 0 | |||
Cash Flow Hedges Attributable to Noncontrolling Interest [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Less: Other comprehensive income (loss) attributable to non-controlling interests | 0 | |||
Accumulated Other Comprehensive Loss Attributable to Noncontrolling Interest | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Less: Other comprehensive income (loss) attributable to non-controlling interests | $ 0 |
ACCUMULATED OTHER COMPREHENSI73
ACCUMULATED OTHER COMPREHENSIVE LOSS - Reclassifications out of accumulated other comprehensive loss, net of tax (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 29, 2016 | Jul. 31, 2015 | Jul. 29, 2016 | Jul. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Cost of net revenue | $ 10,721 | $ 10,896 | $ 20,747 | $ 21,509 |
Interest and other, net | (349) | (222) | (568) | (397) |
Cash Flow Hedges Including Portion Attributable to Noncontrolling Interest | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total reclassifications, net of tax (benefit) expense of $(6) and $(5), respectively and $5 and $8, respectively | (81) | |||
Amounts reclassified from accumulated other comprehensive loss | Cash Flow Hedges Including Portion Attributable to Noncontrolling Interest | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Net revenue | (21) | 82 | (66) | 255 |
Cost of net revenue | (6) | 7 | (14) | 18 |
Interest and other, net | 0 | (1) | (1) | (1) |
Total reclassifications, net of tax (benefit) expense of $(6) and $(5), respectively and $5 and $8, respectively | (27) | 88 | (81) | 272 |
Total reclassifications from AOCI, tax (benefit) expense | $ (6) | $ (5) | $ 5 | $ 8 |
NON-CONTROLLING INTEREST - Narr
NON-CONTROLLING INTEREST - Narrative (Details) - USD ($) $ in Millions | Jul. 29, 2016 | Jan. 29, 2016 |
Noncontrolling Interest [Line Items] | ||
Noncontrolling interest | $ 2,191 | $ 1,466 |
Initial Public Offering | SecureWorks | ||
Noncontrolling Interest [Line Items] | ||
Ownership percentage, pre-IPO | 100.00% | |
Economic ownership percentage, post-IPO | 86.80% | |
Voting ownership percentage, post-IPO | 98.50% | |
Non-Controlling Interest | ||
Noncontrolling Interest [Line Items] | ||
Noncontrolling interest | $ 126 | $ 0 |
NON-CONTROLLING INTEREST - Nonc
NON-CONTROLLING INTEREST - Noncontrolling interest roll forward (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 29, 2016 | Jul. 31, 2015 | Jul. 29, 2016 | Jul. 31, 2015 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance at beginning of period | $ 1,466 | |||
Net income (loss) | 627 | |||
Issuance of common stock of subsidiary upon public offering, net of offering costs | 124 | |||
Foreign currency translation adjustments | $ (37) | $ (14) | 42 | $ (47) |
Cash flow hedges, net change | 85 | $ (22) | (26) | $ (212) |
Stock-based compensation expense | 33 | |||
Revaluation of redeemable shares | (73) | |||
Treasury stock repurchases and other | (2) | |||
Balance at end of period | 2,191 | 2,191 | ||
Dell Technologies Stockholders' Equity | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance at beginning of period | 1,466 | |||
Net income (loss) | 628 | |||
Issuance of common stock of subsidiary upon public offering, net of offering costs | 0 | |||
Foreign currency translation adjustments | 42 | |||
Cash flow hedges, net change | (26) | |||
Stock-based compensation expense | 30 | |||
Revaluation of redeemable shares | (73) | |||
Treasury stock repurchases and other | (2) | |||
Balance at end of period | 2,065 | 2,065 | ||
Non-Controlling Interest | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance at beginning of period | 0 | |||
Net income (loss) | (1) | |||
Issuance of common stock of subsidiary upon public offering, net of offering costs | 124 | |||
Foreign currency translation adjustments | 0 | |||
Cash flow hedges, net change | 0 | |||
Stock-based compensation expense | 3 | |||
Revaluation of redeemable shares | 0 | |||
Treasury stock repurchases and other | 0 | |||
Balance at end of period | $ 126 | $ 126 |
EARNINGS (LOSS) PER SHARE - Sch
EARNINGS (LOSS) PER SHARE - Schedule of Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 29, 2016 | Jul. 31, 2015 | Jul. 29, 2016 | Jul. 31, 2015 | |
Numerator: | ||||
Net loss from continuing operations | $ (264) | $ (292) | $ (690) | $ (738) |
Less: Net loss attributable to non-controlling interests | (1) | 0 | (1) | 0 |
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Parent | (263) | (292) | (689) | (738) |
Income (loss) from discontinued operations, net of income taxes | 836 | 27 | 1,317 | (31) |
Net income (loss) | $ 573 | $ (265) | $ 628 | $ (769) |
Denominator: | ||||
Weighted-average shares outstanding - basic (in shares) | 405 | 405 | 405 | 405 |
Dilutive effect of options, restricted stock units, restricted stock, and other (in shares) | 0 | 0 | 0 | 0 |
Weighted-average shares outstanding - diluted (in shares) | 405 | 405 | 405 | 405 |
Earnings (loss) per share attributable to Dell Technologies Inc. - basic: | ||||
Continuing operations (in dollars per share) | $ (0.65) | $ (0.72) | $ (1.70) | $ (1.82) |
Discontinued operations (in dollars per share) | 2.06 | 0.07 | 3.25 | (0.08) |
Earnings (loss) per share - basic (in dollars per share) | 1.41 | (0.65) | 1.55 | (1.90) |
Earnings (loss) per share attributable to Dell Technologies Inc. - diluted: | ||||
Continuing operations (in dollars per share) | (0.65) | (0.72) | (1.70) | (1.82) |
Discontinued operations (in dollars per share) | 2.06 | 0.07 | 3.25 | (0.08) |
Earnings (loss) per share - diluted (in dollars per share) | $ 1.41 | $ (0.65) | $ 1.55 | $ (1.90) |
Weighted-average shares outstanding - antidilutive (in shares) | 53 | 55 | 54 | 55 |
REDEEMABLE SHARES - Narrative (
REDEEMABLE SHARES - Narrative (Details) - USD ($) shares in Millions, $ in Millions | 6 Months Ended | |
Jul. 29, 2016 | Jan. 29, 2016 | |
Temporary Equity [Line Items] | ||
Holding period | 6 months | |
Redeemable shares | $ 179 | $ 106 |
Common Stock | ||
Temporary Equity [Line Items] | ||
Shares outstanding (in shares) | 0.8 | 0.9 |
Shares issued (in shares) | 0.8 | 0.9 |
Restricted Stock Units (RSUs) | ||
Temporary Equity [Line Items] | ||
Shares outstanding (in shares) | 0.1 | 0.1 |
Shares issued (in shares) | 0.1 | 0.1 |
Employee Stock Option | ||
Temporary Equity [Line Items] | ||
Shares outstanding (in shares) | 23 | 18.6 |
Shares issued (in shares) | 23 | 18.6 |
SEGMENT INFORMATION - Narrative
SEGMENT INFORMATION - Narrative (Details) | 6 Months Ended |
Jul. 29, 2016segments | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
SEGMENT INFORMATION - Reconcili
SEGMENT INFORMATION - Reconciliation of net revenue by reportable segments to consolidated net revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 29, 2016 | Jul. 31, 2015 | Jul. 29, 2016 | Jul. 31, 2015 | |
Segment Reporting Information [Line Items] | ||||
Total net revenue | $ 13,050 | $ 12,975 | $ 25,263 | $ 25,500 |
Total operating income (loss) | 63 | (103) | (80) | (414) |
Amortization of intangible assets | (491) | (492) | (982) | (986) |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total net revenue | 12,999 | 13,004 | 25,183 | 25,575 |
Total operating income (loss) | 784 | 603 | 1,361 | 1,061 |
Operating Segments | Client Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Total net revenue | 9,220 | 9,235 | 17,791 | 18,104 |
Total operating income (loss) | 484 | 323 | 869 | 542 |
Operating Segments | Enterprise Solutions Group | ||||
Segment Reporting Information [Line Items] | ||||
Total net revenue | 3,779 | 3,769 | 7,392 | 7,471 |
Total operating income (loss) | 300 | 280 | 492 | 519 |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Total net revenue | 116 | 94 | 223 | 188 |
Total operating income (loss) | (32) | (35) | (74) | (102) |
Impact of purchase accounting | ||||
Segment Reporting Information [Line Items] | ||||
Total net revenue | (65) | (123) | (143) | (263) |
Total operating income (loss) | (98) | (154) | (204) | (326) |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Other | (100) | (25) | (181) | (61) |
Amortization of intangible assets | $ (491) | $ (492) | $ (982) | $ (986) |
SEGMENT INFORMATION - Net reven
SEGMENT INFORMATION - Net revenue by product and services (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 29, 2016 | Jul. 31, 2015 | Jul. 29, 2016 | Jul. 31, 2015 | |
Revenue from External Customer [Line Items] | ||||
Total net revenue | $ 13,050 | $ 12,975 | $ 25,263 | $ 25,500 |
Operating Segments | ||||
Revenue from External Customer [Line Items] | ||||
Total net revenue | 12,999 | 13,004 | 25,183 | 25,575 |
Operating Segments | Client Solutions | ||||
Revenue from External Customer [Line Items] | ||||
Total net revenue | 9,220 | 9,235 | 17,791 | 18,104 |
Operating Segments | Client Solutions | Commercial | ||||
Revenue from External Customer [Line Items] | ||||
Total net revenue | 6,798 | 6,913 | 12,943 | 13,341 |
Operating Segments | Client Solutions | Consumer | ||||
Revenue from External Customer [Line Items] | ||||
Total net revenue | 2,422 | 2,322 | 4,848 | 4,763 |
Operating Segments | Enterprise Solutions Group | ||||
Revenue from External Customer [Line Items] | ||||
Total net revenue | 3,779 | 3,769 | 7,392 | 7,471 |
Operating Segments | Enterprise Solutions Group | Servers and networking | ||||
Revenue from External Customer [Line Items] | ||||
Total net revenue | 3,237 | 3,212 | 6,312 | 6,364 |
Operating Segments | Enterprise Solutions Group | Storage | ||||
Revenue from External Customer [Line Items] | ||||
Total net revenue | $ 542 | $ 557 | $ 1,080 | $ 1,107 |
SUPPLEMENTAL CONSOLIDATED FIN81
SUPPLEMENTAL CONSOLIDATED FINANCIAL INFORMATION - Inventories (Details) - USD ($) $ in Millions | Jul. 29, 2016 | Jan. 29, 2016 |
Balance Sheet Related Disclosures [Abstract] | ||
Production materials | $ 503 | $ 657 |
Work-in-process | 188 | 189 |
Finished goods | 755 | 773 |
Total inventories, net | $ 1,446 | $ 1,619 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) | Sep. 06, 2016USD ($) |
Silver Lake Partners | Private Placement | Subsequent Event | |
Subsequent Event [Line Items] | |
Committed equity financing | $ 150,000,000 |