Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Aug. 04, 2017 | Sep. 05, 2017 | |
Entity Information [Line Items] | ||
Entity Registrant Name | Dell Technologies Inc. | |
Entity Central Index Key | 1,571,996 | |
Current Fiscal Year End Date | --02-02 | |
Entity Filer Category | Non-accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Aug. 4, 2017 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding - Class V | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 203,140,570 | |
Entity Common Stock, Shares Outstanding - Class A | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 409,659,013 | |
Entity Common Stock, Shares Outstanding - Class B | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 136,986,858 | |
Entity Common Stock, Shares Outstanding - Class C | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 22,988,331 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION - USD ($) $ in Millions | Aug. 04, 2017 | Feb. 03, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 9,213 | $ 9,474 |
Short-term investments | 2,015 | 1,975 |
Accounts receivable, net | 9,716 | 9,420 |
Short-term financing receivables, net | 3,473 | 3,222 |
Inventories, net | 2,594 | 2,538 |
Other current assets | 5,194 | 4,144 |
Total current assets | 32,205 | 30,773 |
Property, plant, and equipment, net | 5,400 | 5,653 |
Long-term investments | 4,022 | 3,802 |
Long-term financing receivables, net | 3,199 | 2,651 |
Goodwill | 39,407 | 38,910 |
Intangible assets, net | 31,580 | 35,053 |
Other non-current assets | 1,681 | 1,364 |
Total assets | 117,494 | 118,206 |
Current liabilities: | ||
Short-term debt | 7,686 | 6,329 |
Accounts payable | 16,916 | 14,422 |
Accrued and other | 6,798 | 7,119 |
Short-term deferred revenue | 10,726 | 10,265 |
Total current liabilities | 42,126 | 38,135 |
Long-term debt (Note 7) | 41,374 | 43,061 |
Long-term deferred revenue | 8,878 | 8,431 |
Other non-current liabilities | 7,847 | 9,339 |
Total liabilities | 100,225 | 98,966 |
Commitments and contingencies (Note 12) | ||
Redeemable shares (Note 18) | 333 | 231 |
Stockholders' equity: | ||
Common stock and capital in excess of $.01 par value (Note 17) | 20,095 | 20,199 |
Treasury stock at cost | (1,136) | (752) |
Accumulated deficit | (7,805) | (5,609) |
Accumulated other comprehensive loss | (207) | (595) |
Total Dell Technologies Inc. stockholders’ equity | 10,947 | 13,243 |
Non-controlling interests | 5,989 | 5,766 |
Total stockholders' equity | 16,936 | 19,009 |
Total liabilities, redeemable shares, and stockholders' equity | $ 117,494 | $ 118,206 |
CONDENSED CONSOLIDATED STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION - Parenthetical - $ / shares | Aug. 04, 2017 | Feb. 03, 2017 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
CONDENSED CONSOLIDATED STATEME4
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 04, 2017 | Jul. 29, 2016 | Aug. 04, 2017 | Jul. 29, 2016 | |
Net revenue: | ||||
Products | $ 14,355 | $ 10,961 | $ 27,323 | $ 21,144 |
Services | 4,944 | 2,119 | 9,792 | 4,177 |
Total net revenue | 19,299 | 13,080 | 37,115 | 25,321 |
Cost of net revenue: | ||||
Products | 12,378 | 9,495 | 23,837 | 18,294 |
Services | 2,112 | 1,249 | 4,167 | 2,498 |
Total cost of net revenue | 14,490 | 10,744 | 28,004 | 20,792 |
Gross margin | 4,809 | 2,336 | 9,111 | 4,529 |
Operating expenses: | ||||
Selling, general, and administrative | 4,695 | 2,023 | 9,364 | 4,091 |
Research and development | 1,093 | 246 | 2,226 | 510 |
Total operating expenses | 5,788 | 2,269 | 11,590 | 4,601 |
Operating income (loss) | (979) | 67 | (2,479) | (72) |
Interest and other, net | (545) | (349) | (1,118) | (568) |
Loss from continuing operations before income taxes | (1,524) | (282) | (3,597) | (640) |
Income tax provision (benefit) | (546) | (20) | (1,236) | 46 |
Net loss from continuing operations | (978) | (262) | (2,361) | (686) |
Income from discontinued operations, net of income taxes (Note 3) | 0 | 834 | 0 | 1,313 |
Net income (loss) | (978) | 572 | (2,361) | 627 |
Less: Net loss attributable to non-controlling interests | (32) | (1) | (81) | (1) |
Net income (loss) attributable to Dell Technologies Inc. | $ (946) | $ 573 | $ (2,280) | $ 628 |
Class V Common Stock | ||||
Earnings (loss) per share attributable to Dell Technologies Inc. - basic: | ||||
Continuing operations (in dollars per share) | $ 0.83 | $ 0 | $ 1.40 | $ 0 |
Earnings (loss) per share attributable to Dell Technologies Inc. - diluted: | ||||
Continuing operations (in dollars per share) | 0.82 | 0 | 1.38 | 0 |
DHI Group | ||||
Earnings (loss) per share attributable to Dell Technologies Inc. - basic: | ||||
Continuing operations (in dollars per share) | (1.97) | (0.64) | (4.53) | (1.69) |
Discontinued operations (in dollars per share) | 0 | 2.06 | 0 | 3.24 |
Earnings (loss) per share attributable to Dell Technologies Inc. - diluted: | ||||
Continuing operations (in dollars per share) | (1.97) | (0.64) | (4.54) | (1.69) |
Discontinued operations (in dollars per share) | $ 0 | $ 2.06 | $ 0 | $ 3.24 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 04, 2017 | Jul. 29, 2016 | Aug. 04, 2017 | Jul. 29, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ (978) | $ 572 | $ (2,361) | $ 627 |
Other comprehensive income (loss), net of tax | ||||
Foreign currency translation adjustments | 397 | (37) | 450 | 42 |
Available-for-sale investments: | ||||
Change in unrealized gains | 19 | 0 | 47 | 0 |
Reclassification adjustment for net losses realized in net income (loss) | 2 | 0 | 3 | 0 |
Net change in market value of investments | 21 | 0 | 50 | 0 |
Cash flow hedges: | ||||
Change in unrealized gains (losses) | (141) | 58 | (157) | (107) |
Reclassification adjustment for net losses included in net income (loss) | 70 | 27 | 49 | 81 |
Net change in cash flow hedges | (71) | 85 | (108) | (26) |
Total other comprehensive income (loss), net of tax expense (benefit) of $0 and $(6), respectively, and $15 and $5, respectively | 347 | 48 | 392 | 16 |
Comprehensive income (loss), net of tax | (631) | 620 | (1,969) | 643 |
Less: Net loss attributable to non-controlling interests | (32) | (1) | (81) | (1) |
Less: Other comprehensive income attributable to non-controlling interests | 1 | 0 | 4 | 0 |
Comprehensive income (loss), net of tax | $ (600) | $ 621 | $ (1,892) | $ 644 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - Parenthetical - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 04, 2017 | Jul. 29, 2016 | Aug. 04, 2017 | Jul. 29, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Tax expense (benefit) | $ 0 | $ (6) | $ 15 | $ 5 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 6 Months Ended | |
Aug. 04, 2017 | Jul. 29, 2016 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (2,361) | $ 627 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 4,354 | 1,321 |
Stock-based compensation expense | 409 | 34 |
Effects of exchange rate changes on monetary assets and liabilities denominated in foreign currencies | 42 | 47 |
Deferred income taxes | (1,556) | (1,619) |
Provision for doubtful accounts — including financing receivables | 77 | 45 |
Net gain on sale of businesses | (26) | 0 |
Amortization of debt issuance costs | 90 | 24 |
Other | 173 | 26 |
Changes in assets and liabilities, net of effects from acquisitions and dispositions: | ||
Accounts receivable | (229) | (380) |
Financing receivables | (657) | (74) |
Inventories | (171) | 171 |
Other assets | (1,136) | 127 |
Accounts payable | 2,444 | 1,232 |
Deferred revenue | 898 | 286 |
Accrued and other liabilities | (295) | (52) |
Change in cash from operating activities | 2,056 | 1,815 |
Investments: | ||
Purchases | (2,260) | (8) |
Maturities and sales | 2,058 | 18 |
Capital expenditures | (561) | (235) |
Proceeds from sale of facilities, land, and other assets | 0 | 19 |
Capitalized software development costs | (187) | 0 |
Collections on purchased financing receivables | 10 | 25 |
Acquisition of businesses, net | (223) | 0 |
Asset acquisitions, net | (86) | 0 |
Asset dispositions, net | (41) | 0 |
Other | 0 | (40) |
Change in cash from investing activities | (1,290) | (221) |
Cash flows from financing activities: | ||
Payment of dissenting shares obligation | 0 | (446) |
Proceeds from the issuance of common stock of subsidiaries | 80 | 100 |
Issuance of common stock under employee plans | 1 | 0 |
Payments for debt issuance costs | (5) | (15) |
Proceeds from debt | 4,776 | 2,148 |
Repayments of debt | (5,309) | (2,638) |
Repurchases for tax withholdings on vesting of equity awards | (194) | (2) |
Other | 0 | 6 |
Change in cash from financing activities | (1,075) | (849) |
Effect of exchange rate changes on cash and cash equivalents | 48 | 52 |
Change in cash and cash equivalents | (261) | 797 |
Cash and cash equivalents at beginning of the period, including amounts held for sale | 9,474 | 6,576 |
Cash and cash equivalents at end of the period | 9,213 | 7,373 |
Less: Cash included in current assets held for sale | 0 | 147 |
Cash and cash equivalents from continuing operations | 9,213 | 7,226 |
DHI Group | ||
Cash flows from financing activities: | ||
Repurchases of common stock | (2) | (2) |
Class V Common Stock | ||
Cash flows from financing activities: | ||
Repurchases of common stock | $ (422) | $ 0 |
CONDENSED CONSOLIDATED STATEME8
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Millions, $ in Millions | Total | Common Stock and Capital in Excess of Par ValueDHI Group | Common Stock and Capital in Excess of Par ValueClass V Common Stock | Treasury StockDHI Group | Treasury StockClass V Common Stock | Accumulated Deficit | Accumulated Other Comprehensive Income/(Loss) | Dell Technologies Stockholders' Equity | Non-Controlling Interests |
Balance, beginning of period (in shares) at Jan. 29, 2016 | 405 | 0 | |||||||
Balance, beginning of period at Jan. 29, 2016 | $ 1,466 | $ 5,727 | $ 0 | $ (3,937) | $ (324) | $ 1,466 | $ 0 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | 627 | 628 | 628 | (1) | |||||
Foreign currency translation adjustments | 42 | 42 | 42 | 0 | |||||
Investments, net change | 0 | ||||||||
Cash flow hedges, net change | (26) | (26) | (26) | 0 | |||||
Stock-based compensation expense | 33 | 30 | 30 | 3 | |||||
Treasury stock repurchases | (2) | $ (2) | (2) | 0 | |||||
Revaluation of redeemable shares | (73) | (73) | (73) | 0 | |||||
Impact from equity transactions of non-controlling interests | 124 | $ 0 | 0 | 124 | |||||
Balance, end of period (in shares) at Jul. 29, 2016 | 405 | 0 | |||||||
Balance, end of period at Jul. 29, 2016 | 2,191 | $ 5,684 | $ (2) | (3,309) | (308) | 2,065 | 126 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Adjustment for adoption of accounting standard (Note 1) | 84 | 84 | 84 | ||||||
Balance, beginning of period (in shares) at Feb. 03, 2017 | 569 | 223 | 0 | 14 | |||||
Balance, beginning of period at Feb. 03, 2017 | 19,009 | $ 10,158 | $ 10,041 | $ (10) | $ (742) | (5,609) | (595) | 13,243 | 5,766 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | (2,361) | (2,280) | (2,280) | (81) | |||||
Foreign currency translation adjustments | 450 | 450 | 450 | ||||||
Investments, net change | 50 | 46 | 46 | 4 | |||||
Cash flow hedges, net change | (108) | (108) | (108) | ||||||
Issuance of common stock (in shares) | 1 | ||||||||
Issuance of common stock | (14) | $ (14) | (14) | ||||||
Stock-based compensation expense | 411 | 58 | 58 | 353 | |||||
Treasury stock repurchases (in shares) | 6 | ||||||||
Treasury stock repurchases | (384) | $ (2) | $ (382) | (384) | |||||
Revaluation of redeemable shares | (102) | (102) | (102) | ||||||
Impact from equity transactions of non-controlling interests | (99) | $ (46) | (46) | (53) | |||||
Balance, end of period (in shares) at Aug. 04, 2017 | 570 | 223 | 0 | 20 | |||||
Balance, end of period at Aug. 04, 2017 | $ 16,936 | $ 10,054 | $ 10,041 | $ (12) | $ (1,124) | $ (7,805) | $ (207) | $ 10,947 | $ 5,989 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Aug. 04, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION EMC Merger Transaction — On September 7, 2016, EMC Corporation, a Massachusetts corporation ("EMC"), became a wholly-owned subsidiary of Dell Technologies Inc. (the "Company") as a result of the merger of Universal Acquisition Co., a Delaware corporation and wholly-owned subsidiary of the Company ("Merger Sub"), with and into EMC, with EMC surviving as a wholly-owned subsidiary of the Company (the "EMC merger transaction"). See Note 2 of the Notes to the Condensed Consolidated Financial Statements for additional information on the EMC merger transaction. Divestitures — On November 2, 2016, the Company completed substantially all of the divestiture of Dell Services. On October 31, 2016, the Company completed the divestiture of Dell Software Group ("DSG"). On January 23, 2017, the Company completed the divestiture of the Dell EMC Enterprise Content Division ("ECD"). In accordance with applicable accounting guidance, the results of Dell Services, DSG, and ECD 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 the relevant periods. See Note 3 of the Notes to the 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. The results of the SecureWorks operations are included in other businesses. See Note 15 of the Notes to the Condensed Consolidated Financial Statements for more information. Basis of Presentation — The accompanying unaudited Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and accompanying Notes filed with the U.S. Securities and Exchange Commission ("SEC") in the Company's Annual Report on Form 10-K for the fiscal year ended February 3, 2017 . These Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). In the opinion of management, the accompanying Condensed Consolidated Financial Statements reflect all adjustments of a normal recurring nature considered necessary to fairly state the financial position of Dell Technologies Inc. (individually and together with its consolidated subsidiaries, the "Company" or "Dell Technologies") as of August 4, 2017 and February 3, 2017 , the results of its operations and corresponding comprehensive income (loss) for the three and six months ended August 4, 2017 and July 29, 2016 , as well as its cash flows for the six months ended August 4, 2017 and July 29, 2016 . The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in the Condensed Consolidated Financial Statements and the accompanying Notes. Actual results could differ materially from those estimates. The results of operations and comprehensive income (loss) for the three and six months ended August 4, 2017 and July 29, 2016 and cash flows for the six months ended August 4, 2017 and July 29, 2016 are not necessarily indicative of the results to be expected for the full fiscal year or for any other fiscal period. The Company's fiscal year is the 52- or 53-week period ending on the Friday nearest January 31. The fiscal year ended February 3, 2017 (" Fiscal 2017 ") was a 53-week period while the fiscal year ending February 2, 2018 (" Fiscal 2018 ") will be a 52-week period. As a result of the EMC merger transaction completed on September 7, 2016, the Company's results of operations, comprehensive income (loss), and cash flows for the fiscal periods reflected in these Condensed Consolidated Financial Statements are not directly comparable. The results of the businesses acquired in the EMC merger transaction are included in the consolidated results of Dell Technologies for the three and six months ended August 4, 2017 , but are not included in the consolidated results of Dell Technologies for the three and six months ended July 29, 2016 . The Dell Technologies unaudited Condensed Consolidated Statements of Financial Position reflect the full consolidation of EMC's assets and liabilities as of both August 4, 2017 and February 3, 2017 . Unless the context indicates otherwise, references in these Notes to the Condensed Consolidated Financial Statements to "VMware" mean the VMware reportable segment, which reflects the operations of VMware, Inc. (NYSE: VMW) within Dell Technologies. See Exhibit 99.1 filed with the Company's quarterly report on Form 10-Q for the quarterly period ended August 4, 2017 for information on the differences between VMware reportable segment results and VMware, Inc. results. Reclassifications — The amounts presented for the three and six months ended July 29, 2016 are different from those previously reported on Form 10-Q for the quarterly period ended July 29, 2016 because the Company reclassified an immaterial amount of net income from discontinued operations to continuing operations to reflect the updated terms of the applicable divestitures referred to above as the result of continued negotiations and finalization of terms of the sale. Recently Issued Accounting Pronouncements Revenue from Contracts with Customers — In May 2014, the Financial Accounting Standards Board (the "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 substantially all 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. The new standard also provides guidance on the accounting for costs to fulfill or obtain a customer contract. Further, the new standard requires additional disclosures to help enable users of the financial statements to better understand the nature, amount, timing, risks, and judgments related to revenue recognition and related cash flows from contracts with customers. 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 fiscal years, beginning after December 15, 2017. The new revenue standard may be applied retrospectively to each prior period presented (full retrospective method) or retrospectively with the cumulative effect of initially applying the standard recognized at the date of initial application in retained earnings (modified retrospective method). The Company currently expects to adopt this standard retrospectively to each prior period presented for the fiscal year beginning February 3, 2018. While the Company is currently evaluating the financial and system impacts that the new standard will have on the Consolidated Financial Statements, the Company expects that unearned license revenue related to the sale of software licenses and related deliverables will decline upon adoption. Currently, the Company defers revenue for certain software arrangements due to the absence of vendor specific objective evidence ("VSOE") of fair value for all or a portion of the deliverables. Under the new standard, the Company will no longer be required to establish VSOE of fair value in order to account for elements in an arrangement as separate units of accounting, and will be able to record revenue upon satisfaction of each performance obligation. Additionally, the Company expects the new standard to have an impact on the way the transaction price is allocated for certain non-standard warranties. The new standard is expected to result in more of the aggregate transaction price related to the non-standard warranty being recorded as revenue upon delivery of the underlying product, because the Company will no longer defer revenue based on the separately stated price of the non-standard warranty provided under the contract. The Company continues to make progress in assessing the impacts of the standard on the Consolidated Financial Statements and will continue to evaluate the impact of any changes to the standard or interpretations should they become available. Recognition and Measurement of Financial Assets and Financial Liabilities — In January 2016, the FASB issued amended guidance that 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 fiscal years, beginning after December 15, 2017. The amended guidance requires changes in the fair value of equity investments to be recognized through net income, rather than other comprehensive income. Adoption of the standard will be applied through a cumulative one-time adjustment to retained earnings. For the Company’s equity investments without readily determinable fair values, the Company expects to elect the measurement alternative to record those investments at cost, less impairment, and adjusted by observable price changes on a prospective basis. The impact of the standard on the Consolidated Statements of Income (Loss) will depend on the relative changes in market price of the equity investments, although the impact is currently expected to be immaterial. 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. Measurement of Credit Losses on Financial Instruments — In June 2016, the FASB issued amended guidance which replaces the current incurred loss impairment methodology for measurement of credit losses on financial instruments 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, and interim periods within those fiscal years, with early adoption permitted for fiscal periods beginning after December 15, 2018. The Company is currently evaluating the impact that the standard will have on the Consolidated Financial Statements. Classification of Certain Cash Receipts and Cash Payments — In August 2016, the FASB issued amended guidance on the presentation and classification of eight specific cash flow issues with the objective of reducing existing diversity in practice. Public entities must adopt the new guidance for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, with early adoption permitted. Companies should reflect any adjustments on a retrospective basis, if practicable; otherwise, adoption is required to be applied as of the earliest date practicable. The Company will adopt this standard during the fiscal quarter ending May 4, 2018, and will apply adjustments retrospectively to each prior period presented on the Condensed Consolidated Statements of Cash Flows for that period. The Company is currently evaluating the impact of the standard, and other than certain reclassifications on the Consolidated Statements of Cash Flows, it is not expected to have a material impact on the Consolidated Financial Statements. Simplifying the Test for Goodwill Impairment — In January 2017, the FASB issued amended guidance to simplify the subsequent measurement of goodwill by removing Step 2 of the goodwill impairment test. Instead, under the amendments in the new guidance, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value. Public entities must adopt the new guidance in fiscal years beginning after December 15, 2019, with early adoption permitted. The Company is currently evaluating the impact of the new guidance, but does not expect that the standard will have an impact on its Consolidated Financial Statements. Derivatives and Hedging — In August 2017, the FASB issued amended guidance that will make more financial and non-financial hedging strategies eligible for hedge accounting. The amended guidance changes how companies assess effectiveness, and also amends the presentation and disclosure requirements. The guidance is intended to simplify the application of hedge accounting and increase transparency as to the scope and results of hedging programs. Immediate early adoption is permitted in any interim or annual period. The mandatory effective date for calendar year-end public companies is January 1, 2019. The Company is currently evaluating the impact that the new guidance will have on the Consolidated Financial Statements. Recently Adopted Accounting Pronouncements Improvements to Employee Share-Based Payment Accounting — In March 2016, the FASB issued amended guidance on the accounting for employee share-based payments, including the accounting for income taxes and forfeitures, classification of awards as either equity or liabilities, and classification of cash flows. The Company adopted this guidance at the beginning of Fiscal 2018. In accordance with the new guidance, excess tax benefits or deficiencies for stock-based compensation are now reflected as a component of the provision for income taxes on the Consolidated Statements of Income (Loss), whereas they were previously recorded as additional paid-in capital. The Company has elected to continue to estimate expected forfeitures. Additionally, the Company now presents excess tax benefits as an operating activity rather than a financing activity on the Consolidated Statements of Cash Flows, while the cash flows related to employee taxes paid for withheld shares are presented as a financing activity with prior periods adjusted accordingly. The adoption of the amended guidance did not have a material impact on the Consolidated Financial Statements. The prospective impact of the new standard will depend on the Company's stock price at the vesting or exercise dates of the awards and the number of awards that vest or are exercised in each period, but the Company does not expect the impact to be material in future periods. Intra-Entity Transfers of Assets Other Than Inventory — In October 2016, the FASB issued amended guidance on the accounting for income taxes. The new guidance requires companies to recognize the income tax effects of intra-entity asset transfers, other than transfers of inventory, when the transfer occurs instead of when the asset is sold to a third party. The new guidance should be applied on a modified-retrospective basis with the cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. The Company early adopted this guidance at the beginning of Fiscal 2018. At adoption, approximately $84 million was reclassified from other non-current liabilities to retained earnings, resulting in a net credit to retained earnings. |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 6 Months Ended |
Aug. 04, 2017 | |
Business Combinations [Abstract] | |
BUSINESS COMBINATIONS | BUSINESS COMBINATIONS EMC Merger Transaction Transaction Overview — On September 7, 2016, EMC became a wholly-owned subsidiary of the Company as a result of the merger of Merger Sub with and into EMC, with EMC surviving as a wholly-owned subsidiary of the Company. Pursuant to the terms of the merger agreement, upon the completion of the EMC merger transaction, each issued and outstanding share of common stock, par value $0.01 per share, of EMC (approximately 2.0 billion as of September 7, 2016) was converted into the right to receive (1) $24.05 in cash, without interest, and (2) 0.11146 validly issued, fully paid and non-assessable shares of common stock of the Company designated as Class V Common Stock, par value $0.01 per share (the "Class V Common Stock"), plus cash in lieu of any fractional shares. Shares of the Class V Common Stock were approved for listing on the New York Stock Exchange (the "NYSE") under the ticker symbol "DVMT" and began trading on September 7, 2016. In connection with the EMC merger transaction, the Company authorized 343 million shares of Class V Common Stock. On September 7, 2016, Dell Technologies issued 223 million shares of Class V Common Stock to EMC shareholders at a purchase price of $45.07 per share for an aggregate purchase price of approximately $10.0 billion . The total fair value of consideration transferred to effect the EMC merger transaction was approximately $64.0 billion , which primarily consisted of cash and such shares of Class V Common Stock, as well as the fair value of non-controlling interests in VMware, Inc. and Pivotal Software, Inc. ("Pivotal"), majority-owned consolidated subsidiaries of EMC. See Note 17 for more information on the Class V Common Stock. Assets Acquired and Liabilities Assumed — The EMC merger transaction has been accounted for as a business combination under the acquisition method of accounting. The cumulative impact of any subsequent changes resulting from the facts and circumstances that existed as of the transaction date will be adjusted in the reporting period in which the adjustment amount is determined. The Company's purchase accounting is substantially complete. The following table summarizes, as of August 4, 2017 , the preliminary purchase price allocation to the assets acquired and the liabilities assumed in the EMC merger transaction (in millions): Current assets: Cash and cash equivalents $ 10,080 Short-term investments 1,765 Accounts receivable 2,810 Short-term financing receivables 64 Inventories, net 1,993 Other current assets 903 Total current assets 17,615 Property, plant, and equipment 4,490 Long-term investments 4,317 Long-term financing receivables, net 65 Goodwill 31,539 Purchased intangibles 31,218 Other non-current assets 445 Total assets $ 89,689 Current liabilities: Short-term debt $ 905 Accounts payable 728 Accrued and other 3,259 Short-term deferred revenue 4,954 Total current liabilities 9,846 Long-term debt 5,474 Long-term deferred revenue 3,469 Deferred tax liabilities 6,625 Other non-current liabilities 324 Total liabilities 25,738 Total net assets $ 63,951 The table above includes amounts allocated to ECD, which was divested in the fiscal year ended February 3, 2017 . See Note 3 of the Notes to the Condensed Consolidated Financial Statements for more information on discontinued operations. Pro Forma Financial Information — The following table provides unaudited pro forma results of operations for the periods presented as if the transaction date had occurred on January 31, 2015, the first day of the fiscal year ended January 29, 2016. Three Months Ended Six Months Ended July 29, 2016 July 29, 2016 (in millions, except per share amounts) Total net revenue $ 18,562 $ 35,767 Net loss attributable to Dell Technologies Inc. $ (1,158 ) $ (2,542 ) Earnings (loss) per share attributable to Dell Technologies Inc. - basic (a): Continuing operations - Class V Common Stock $ 0.66 $ 1.05 Continuing operations - DHI Group $ (2.28 ) $ (4.87 ) Earnings (loss) per share attributable to Dell Technologies Inc. - diluted (a): Continuing operations - Class V Common Stock $ 0.66 $ 1.05 Continuing operations - DHI Group $ (2.28 ) $ (4.87 ) ____________________ (a) For purposes of calculating pro forma earnings (loss) per share, the Company used the two-class method. Earnings are allocated between the Class V Common Stock and the DHI Group on a basis consistent with historical earnings (loss) per share. The pro forma information for the three and six months ended July 29, 2016 combines the Company's historical results for the three and six months ended July 29, 2016 and EMC's historical results for the three and six months ended June 30, 2016. The historical results have been adjusted in the pro forma information to give effect to items that are (a) directly attributable to the EMC merger transaction, (b) factually supportable, and (c) expected to have a continuing impact on the combined company's results. The pro forma information is presented for informational purposes only. The unaudited pro forma results include the elimination of non-recurring transaction and integration costs of $81 million and $144 million , respectively, for the three and six months ended July 29, 2016 . The pro forma information does not purport to represent what the combined company's results of operations or financial condition would have been had the EMC merger transaction actually occurred on the date indicated, and does not purport to project the combined company's results of operations for any future period or as of any future date. Acquisitions by VMware, Inc. During the three months ended August 4, 2017 , VMware, Inc. completed the acquisitions of Wavefront and Apteligent, Inc., which were not material to the Condensed Consolidated Financial Statements. These acquisitions are a part of VMware's strategy to accelerate the development of VMware Inc.'s Cloud services and other technologies. The aggregate purchase price for the two acquisitions was $323 million , inclusive of the fair value of the Company's existing investment in Wavefront of $69 million and cash acquired of $35 million . The aggregate purchase price included $36 million of identifiable intangible assets and $238 million of goodwill that is not expected to be deductible for tax purposes. The identifiable intangible assets primarily relate to purchased technology, with estimated useful lives of five years . The fair value of assumed unvested equity attributable to post-combination services was $37 million and will be expensed over the remaining requisite service periods on a straight-line basis. The estimated fair value of the stock options assumed by the Company was determined using the Black-Scholes option pricing model. Prior to the closing of the acquisition, Dell Technologies, including VMware, Inc., held an ownership interest in Wavefront. Upon completion of the step acquisition, Dell Technologies recognized a $45 million gain in interest and other, net for the remeasurement of its ownership interest to fair value. The gain recognized on the step acquisition is not expected to be taxable. The Company has not presented pro forma results of operations for the foregoing acquisitions because they are not material to the Company's consolidated results of operations, financial position, or cash flows. |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 6 Months Ended |
Aug. 04, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISCONTINUED OPERATIONS | DISCONTINUED OPERATIONS Dell Inc. ("Dell") entered into a definitive agreement with NTT Data International L.L.C. to divest substantially all of Dell Services, and on November 2, 2016, the parties closed substantially all of the transaction. Dell Inc. entered into a definitive agreement with Francisco Partners and Elliot Management Corporation to divest substantially all of DSG, and on October 31, 2016, the parties closed the transaction. EMC, a subsidiary of the Company, entered into a definitive agreement with OpenText Corporation to divest the Dell EMC Enterprise Content Division, and on January 23, 2017, the parties closed the transaction. Upon closing of the respective transactions, the Company entered into transition services agreements with NTT Data International L.L.C., Francisco Partners and Elliot Management, and OpenText Corporation pursuant to which the Company provides various administrative services on an interim transitional basis. Transition services may be provided for up to one year , with an option to renew after that period. The Company also entered into various commercial agreements with NTT Data International L.L.C., Francisco Partners and Elliot Management, and OpenText Corporation that include reseller agreements for certain offerings. In accordance with applicable accounting guidance, the Company reclassified the financial results of Dell Services, DSG, and ECD as discontinued operations in the Condensed Consolidated Statements of Income (Loss) for the relevant periods. The following table presents key financial results of Dell Services and DSG included in "Income from discontinued operations, net of income taxes" for the three and six months ended July 29, 2016 : Three Months Ended July 29, 2016 Six Months Ended July 29, 2016 Dell Services (b) DSG Total Dell Services (b) DSG Total (in millions) Net revenue $ 664 $ 321 $ 985 $ 1,310 $ 642 $ 1,952 Cost of net revenue 513 85 598 1,032 175 1,207 Operating expenses 95 239 334 206 488 694 Interest and other, net — (7 ) (7 ) — 7 7 Income (loss) from discontinued operations before income taxes 56 (10 ) 46 72 (14 ) 58 Income tax benefit (a) (455 ) (333 ) (788 ) (918 ) (337 ) (1,255 ) Income from discontinued operations, net of income taxes $ 511 $ 323 $ 834 $ 990 $ 323 $ 1,313 ____________________ (a) The tax benefit for Dell Services and DSG for the three and six months ended July 29, 2016 was primarily due to the Company's determination that it could no longer assert permanent reinvestment in the outside basis of the entities that would be divested. (b) See Note 1 of the Notes to the Condensed Consolidated Financial Statements for additional information on reclassifications from previously reported amounts. Cash flows from the Company's discontinued operations are included in the accompanying Condensed Consolidated Statements of Cash Flows. The significant cash flow items from Dell Services and DSG for the six months ended July 29, 2016 were as follows: Six Months Ended July 29, 2016 Dell Services DSG Total (in millions) Depreciation and amortization (a) $ 32 $ 66 $ 98 Capital expenditures $ 47 $ 15 $ 62 ____________________ (a) Depreciation and amortization ceased upon determination that Dell Services and DSG had met the criteria for discontinued operations reporting as of March 27, 2016 and June 19, 2016, respectively. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Aug. 04, 2017 | |
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 August 4, 2017 and February 3, 2017 : August 4, 2017 (a) February 3, 2017 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Quoted Significant Significant Quoted Significant Significant (in millions) Assets: Cash and cash equivalents: Money market funds $ 4,853 $ — $ — $ 4,853 $ 4,866 $ — $ — $ 4,866 Municipal obligations — — — — — 3 — 3 U.S. and foreign corporate debt securities — 183 — 183 — — — — U.S. government and agencies — 45 — 45 — — — — Foreign government and agencies — 3 — 3 — — — — Debt securities: U.S. government and agencies 658 412 — 1,070 444 470 — 914 U.S. corporate — 1,893 — 1,893 — 1,800 — 1,800 Foreign — 2,332 — 2,332 — 2,083 — 2,083 Municipal obligations — — — — — 352 — 352 Asset-backed securities — — — — — 4 — 4 Equity and other securities 224 2 — 226 169 — — 169 Derivative instruments — 125 — 125 — 205 — 205 Total assets $ 5,735 $ 4,995 $ — $ 10,730 $ 5,479 $ 4,917 $ — $ 10,396 Liabilities: Derivative instruments $ — $ 180 $ — $ 180 $ — $ 64 $ — $ 64 Total liabilities $ — $ 180 $ — $ 180 $ — $ 64 $ — $ 64 ____________________ (a) The Company did not transfer any securities between levels during the six months ended August 4, 2017 . The following section describes the valuation methodologies the Company uses to measure financial instruments at fair value: Money Market Funds — The Company's investment in money market funds that are classified as cash equivalents hold underlying investments with a weighted average maturity of 90 days or less and are recognized at fair value. The valuations of these securities are based on quoted prices in active markets for identical assets, when available, or pricing models whereby all significant inputs are observable or can be derived from or corroborated by observable market data. The Company reviews security pricing and assesses liquidity on a quarterly basis. As of August 4, 2017 , the Company's U.S. portfolio had no material exposure to money market funds with a fluctuating net asset value. Equity and Other Securities — The majority of the Company's investments in equity and other securities that are measured at fair value on a recurring basis consist of strategic investments in publicly traded companies. The valuation of these securities is based on quoted prices in active markets. Debt Securities — The majority of the Company's debt securities consist of various fixed income securities such as U.S. government and agencies, U.S. corporate, and foreign. Valuation is based on pricing models whereby all significant inputs, including benchmark yields, reported trades, broker-dealer quotes, issue spreads, benchmark securities, bids, offers, and other market related data, are observable or can be derived from or corroborated by observable market data for substantially the full term of the asset. Inputs are documented in accordance with the fair value measurements hierarchy. The Company reviews security pricing and assesses liquidity on a quarterly basis. See Note 5 of the Notes to the Condensed Consolidated Financial Statements for additional information about investments. 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 8 of the Notes to the Condensed Consolidated Financial Statements for a description of the Company's derivative financial instrument activities. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis — Certain assets are measured at fair value on a nonrecurring basis and therefore are not included in the recurring fair value table above. These assets consist primarily of non-financial assets such as goodwill and intangible assets. See Note 9 of the Notes to the Condensed Consolidated Financial Statements for additional information about goodwill and intangible assets. As of August 4, 2017 and February 3, 2017 , the Company held strategic investments of $516 million and $455 million , respectively. These investments are accounted for under the cost method and are not included in the recurring fair value table above. Investments accounted for under the cost method are recorded at cost initially, which approximates fair value. Subsequently, if there is an indicator of impairment, the impairment is recognized. In evaluating these investments for impairment, the Company uses inputs including pre- and post-money valuations of recent financing events and the impact of those on its fully diluted ownership percentages, as well as other available information regarding the issuer's historical and forecasted performance. As these investments are early-stage companies which are not publicly traded, it is not practicable for the Company to reliably estimate the fair value of these investments. 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 7 of the Notes to the Condensed Consolidated Financial Statements , including the current portion, as of the dates indicated: August 4, 2017 February 3, 2017 Carrying Value Fair Value Carrying Value Fair Value (in billions) Senior Secured Credit Facilities $ 10.9 $ 11.2 $ 11.4 $ 11.7 First Lien Notes $ 19.7 $ 22.3 $ 19.7 $ 21.8 Unsecured Notes and Debentures $ 2.3 $ 2.5 $ 2.3 $ 2.5 Senior Notes $ 3.1 $ 3.5 $ 3.1 $ 3.5 EMC Notes $ 5.5 $ 5.3 $ 5.5 $ 5.4 Margin Loan Facility $ 2.0 $ 2.0 $ — $ — Bridge Facilities $ 1.5 $ 1.5 $ 4.0 $ 4.0 The fair values of the outstanding Senior Secured Credit Facilities, First Lien Notes, Unsecured Notes and Debentures, Senior Notes, EMC Notes, Margin Loan Facility, and Bridge Facilities were determined based on observable market prices in a less active market or based on valuation methodologies using observable inputs and were categorized as Level 2 in the fair value hierarchy. The fair values of the other short-term debt and the structured financing debt approximate their carrying values due to their short-term maturities. |
INVESTMENTS
INVESTMENTS | 6 Months Ended |
Aug. 04, 2017 | |
Investments [Abstract] | |
INVESTMENTS | INVESTMENTS The following table summarizes, by major security type, the carrying value and amortized cost of the Company's investments. All debt security investments with remaining effective maturities in excess of one year and substantially all equity and other securities are recorded as long-term investments in the Condensed Consolidated Statements of Financial Position. August 4, 2017 February 3, 2017 Cost Unrealized Gain Unrealized (Loss) Carrying Value Cost Unrealized Gain Unrealized (Loss) Carrying Value (in millions) Investments: U.S. government and agencies $ 441 $ — $ — $ 441 $ 231 $ — $ — $ 231 U.S. corporate debt securities 670 — (1 ) 669 651 — (1 ) 650 Foreign debt securities 906 — (1 ) 905 743 — (1 ) 742 Municipal obligations — — — — 348 — — 348 Asset-backed securities — — — — 4 — — 4 Total short-term investments 2,017 — (2 ) 2,015 1,977 — (2 ) 1,975 U.S. government and agencies 632 — (3 ) 629 689 — (6 ) 683 U.S. corporate debt securities 1,227 2 (5 ) 1,224 1,164 — (14 ) 1,150 Foreign debt securities 1,430 2 (5 ) 1,427 1,356 — (15 ) 1,341 Municipal obligations — — — — 4 — — 4 Equity and other securities (a) 667 75 — 742 604 22 (2 ) 624 Total long-term investments 3,956 79 (13 ) 4,022 3,817 22 (37 ) 3,802 Total investments $ 5,973 $ 79 $ (15 ) $ 6,037 $ 5,794 $ 22 $ (39 ) $ 5,777 ____________________ (a) The majority of equity and other securities are strategic investments accounted for under the cost method, while the remainder are investments that are measured at fair value on a recurring basis. See Note 4 of the Notes to the Condensed Consolidated Financial Statements for additional information on investments measured at fair value on a recurring basis. The Company's investments in debt securities are classified as available-for-sale securities, which are carried at fair value. As of August 4, 2017 , all investments in an unrealized loss position have been in a continuous unrealized loss position for less than 12 months. The maturities of debt securities held at August 4, 2017 are as follows: Amortized Cost Carrying Value (in millions) Due within one year $ 2,017 $ 2,015 Due after 1 year through 5 years 3,219 3,209 Due after 5 years through 10 years 70 71 Total $ 5,306 $ 5,295 |
FINANCIAL SERVICES
FINANCIAL SERVICES | 6 Months Ended |
Aug. 04, 2017 | |
Receivables [Abstract] | |
FINANCIAL SERVICES | 90 Days Total Current Past Due 1 — 90 Days Past Due > 90 Days Total (in millions) Revolving — DPA $ 639 $ 58 $ 23 $ 720 $ 715 $ 66 $ 27 $ 808 Revolving — DBC 154 20 5 179 175 22 4 201 Fixed-term — Consumer and Commercial 4,539 787 59 5,385 3,994 506 30 4,530 Total customer receivables, gross $ 5,332 $ 865 $ 87 $ 6,284 $ 4,884 $ 594 $ 61 $ 5,539 Credit Quality The following table summarizes customer receivables, gross, including accrued interest, by credit quality indicator segregated by class, as of August 4, 2017 and February 3, 2017 . 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. August 4, 2017 February 3, 2017 Higher Mid Lower Total Higher Mid Lower Total (in millions) Revolving — DPA $ 132 $ 220 $ 368 $ 720 $ 136 $ 244 $ 428 $ 808 Revolving — DBC $ 46 $ 56 $ 77 $ 179 $ 61 $ 60 $ 80 $ 201 Fixed-term — Consumer and Commercial (a) $ 2,770 $ 1,668 $ 947 $ 5,385 $ 2,232 $ 1,428 $ 870 $ 4,530 ____________________ (a) During the three months ended May 5, 2017, the Company modified its credit scoring methodology for fixed-term financing receivables in response to changes in its go-to-market strategy. This methodology has been modified to a single, consistent, and comparable model across all fixed-term product customers. In connection with this change, the Company has recategorized existing fixed-term customers and has recast prior period credit quality categories to align with the current period presentation. Structured Financing Debt The Company maintains programs which facilitate the funding of financing receivables in the capital markets in the United States, Canada, and Europe. The Company's total structured financing debt, which is collateralized by financing receivables, was $4.1 billion and $3.5 billion as of August 4, 2017 and February 3, 2017 , respectively, under the following programs: • Securitization Programs — The Company maintains securitization programs in the United States and Europe. The securitization programs in the United States include the fixed-term lease and loan securitization program and the revolving loan securitization program. The outstanding balance of debt under these U.S. programs was $1.4 billion and $1.5 billion as of August 4, 2017 and February 3, 2017 , 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 August 4, 2017 , the total debt capacity related to the U.S. 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 8 of the Notes to the Condensed Consolidated Financial Statements for additional information about interest rate swaps. The Company's U.S. securitization programs became effective on October 29, 2013. The revolving program, which was extended during the third quarter of Fiscal 2017, is effective for four and one-half years beginning October 29, 2013 . The fixed-term program, which was extended during the second quarter of Fiscal 2018, is effective for four and one-half years beginning October 29, 2013 . The Company established a securitization program in Europe for fixed-term leases and loans. This program became effective on January 13, 2017, and is effective for two years . The outstanding balance of debt under this program was $373 million as of August 4, 2017 , and the total debt capacity related to the securitization program was $712 million . The securitization 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 August 4, 2017 , these criteria were met. • Fixed-Term Securitization Programs — The Company periodically issues asset-backed debt securities under fixed-term securitization programs to private investors. As of August 4, 2017 and February 3, 2017 , the associated debt balance of these securities was $1.8 billion and $1.4 billion , respectively. The asset-backed debt securities are collateralized solely by the U.S. fixed-term financing receivables in the offerings, which are held by SPEs, as discussed below. The interest rate on these securities is fixed and ranges from 0.42% to 3.61% , and the duration of these securities is based on the terms of the underlying financing receivables. • Other Structured Financing Programs — 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. The aggregate outstanding balances of the Canadian and European revolving structured loans as of August 4, 2017 and February 3, 2017 were $446 million and $382 million , respectively. As of August 4, 2017 , the Canadian program, which was extended during the fiscal year ended February 3, 2017, had a total debt capacity of $175 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 first quarter of Fiscal 2016, is now 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 $356 million as of August 4, 2017 . Variable Interest Entities In connection with the securitization programs discussed above, the Company transfers certain U.S. and European 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 Condensed 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: August 4, 2017 February 3, 2017 (in millions) Financing receivables held by consolidated VIEs, net: Short-term, net $ 2,440 $ 2,227 Long-term, net 1,790 1,381 Financing receivables held by consolidated VIEs, net $ 4,230 $ 3,608 Financing receivables transferred via securitization through SPEs were $1.0 billion and $0.8 billion for the three months ended August 4, 2017 and July 29, 2016 , respectively, and $1.9 billion and $1.4 billion for the six months ended August 4, 2017 and July 29, 2016 , 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 structured financing debt outstanding, which is collateralized by the financing receivables held by the consolidated VIEs, was $3.6 billion and $3.1 billion as of August 4, 2017 and February 3, 2017 , respectively. 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. 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 $228 million and $98 million for the six months ended August 4, 2017 and July 29, 2016 , respectively." id="sjs-B4">FINANCIAL SERVICES The Company offers or arranges various financing options and services for its business and consumer customers in North America, Europe, Australia, and New Zealand 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 Technologies' 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 $1.6 billion and $1.0 billion for three months ended August 4, 2017 and July 29, 2016 , respectively, and $2.7 billion and $1.9 billion for the six months ended August 4, 2017 and July 29, 2016 , respectively. In June 2017, as part of the global expansion of Dell Technologies' captive financing model, the Company purchased a portfolio of customer fixed-term financing receivables totaling approximately $89 million from Bank of Queensland. Bank of Queensland was previously the Company's preferred financing partner in Australia and New Zealand. 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 Technologies. 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 seek lease financing. Leases with business customers have fixed terms of generally two to four years . Future maturities of minimum lease payments as of August 4, 2017 were as follows: Fiscal 2018 (remaining six months) - $1,121 million ; Fiscal 2019 - $1,552 million ; Fiscal 2020 - $949 million ; Fiscal 2021 - $354 million ; Fiscal 2022 and beyond - $96 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 August 4, 2017 and February 3, 2017 : August 4, 2017 February 3, 2017 Revolving Fixed-term Total Revolving Fixed-term Total (in millions) Financing receivables, net: Customer receivables, gross $ 899 $ 5,385 $ 6,284 $ 1,009 $ 4,530 $ 5,539 Allowances for losses (81 ) (54 ) (135 ) (91 ) (52 ) (143 ) Customer receivables, net 818 5,331 6,149 918 4,478 5,396 Residual interest — 523 523 — 477 477 Financing receivables, net $ 818 $ 5,854 $ 6,672 $ 918 $ 4,955 $ 5,873 Short-term $ 818 $ 2,655 $ 3,473 $ 918 $ 2,304 $ 3,222 Long-term $ — $ 3,199 $ 3,199 $ — $ 2,651 $ 2,651 The following tables summarize the changes in the allowance for financing receivable losses for the respective periods: Three Months Ended August 4, 2017 July 29, 2016 Revolving Fixed-term Total Revolving Fixed-term Total (in millions) Allowance for financing receivable losses: Balances at beginning of period $ 85 $ 51 $ 136 $ 107 $ 58 $ 165 Charge-offs, net of recoveries (20 ) (5 ) (25 ) (23 ) (2 ) (25 ) Provision charged to income statement 16 8 24 16 — 16 Balances at end of period $ 81 $ 54 $ 135 $ 100 $ 56 $ 156 Six Months Ended August 4, 2017 July 29, 2016 Revolving Fixed-term Total Revolving Fixed-term Total (in millions) Allowance for financing receivable losses: Balances at beginning of period $ 91 $ 52 $ 143 $ 118 $ 58 $ 176 Charge-offs, net of recoveries (42 ) (8 ) (50 ) (48 ) (5 ) (53 ) Provision charged to income statement 32 10 42 30 3 33 Balances at end of period $ 81 $ 54 $ 135 $ 100 $ 56 $ 156 The following table summarizes the aging of the Company's customer financing receivables, gross, including accrued interest, as of August 4, 2017 and February 3, 2017 , segregated by class: August 4, 2017 February 3, 2017 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 $ 639 $ 58 $ 23 $ 720 $ 715 $ 66 $ 27 $ 808 Revolving — DBC 154 20 5 179 175 22 4 201 Fixed-term — Consumer and Commercial 4,539 787 59 5,385 3,994 506 30 4,530 Total customer receivables, gross $ 5,332 $ 865 $ 87 $ 6,284 $ 4,884 $ 594 $ 61 $ 5,539 Credit Quality The following table summarizes customer receivables, gross, including accrued interest, by credit quality indicator segregated by class, as of August 4, 2017 and February 3, 2017 . 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. August 4, 2017 February 3, 2017 Higher Mid Lower Total Higher Mid Lower Total (in millions) Revolving — DPA $ 132 $ 220 $ 368 $ 720 $ 136 $ 244 $ 428 $ 808 Revolving — DBC $ 46 $ 56 $ 77 $ 179 $ 61 $ 60 $ 80 $ 201 Fixed-term — Consumer and Commercial (a) $ 2,770 $ 1,668 $ 947 $ 5,385 $ 2,232 $ 1,428 $ 870 $ 4,530 ____________________ (a) During the three months ended May 5, 2017, the Company modified its credit scoring methodology for fixed-term financing receivables in response to changes in its go-to-market strategy. This methodology has been modified to a single, consistent, and comparable model across all fixed-term product customers. In connection with this change, the Company has recategorized existing fixed-term customers and has recast prior period credit quality categories to align with the current period presentation. Structured Financing Debt The Company maintains programs which facilitate the funding of financing receivables in the capital markets in the United States, Canada, and Europe. The Company's total structured financing debt, which is collateralized by financing receivables, was $4.1 billion and $3.5 billion as of August 4, 2017 and February 3, 2017 , respectively, under the following programs: • Securitization Programs — The Company maintains securitization programs in the United States and Europe. The securitization programs in the United States include the fixed-term lease and loan securitization program and the revolving loan securitization program. The outstanding balance of debt under these U.S. programs was $1.4 billion and $1.5 billion as of August 4, 2017 and February 3, 2017 , 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 August 4, 2017 , the total debt capacity related to the U.S. 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 8 of the Notes to the Condensed Consolidated Financial Statements for additional information about interest rate swaps. The Company's U.S. securitization programs became effective on October 29, 2013. The revolving program, which was extended during the third quarter of Fiscal 2017, is effective for four and one-half years beginning October 29, 2013 . The fixed-term program, which was extended during the second quarter of Fiscal 2018, is effective for four and one-half years beginning October 29, 2013 . The Company established a securitization program in Europe for fixed-term leases and loans. This program became effective on January 13, 2017, and is effective for two years . The outstanding balance of debt under this program was $373 million as of August 4, 2017 , and the total debt capacity related to the securitization program was $712 million . The securitization 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 August 4, 2017 , these criteria were met. • Fixed-Term Securitization Programs — The Company periodically issues asset-backed debt securities under fixed-term securitization programs to private investors. As of August 4, 2017 and February 3, 2017 , the associated debt balance of these securities was $1.8 billion and $1.4 billion , respectively. The asset-backed debt securities are collateralized solely by the U.S. fixed-term financing receivables in the offerings, which are held by SPEs, as discussed below. The interest rate on these securities is fixed and ranges from 0.42% to 3.61% , and the duration of these securities is based on the terms of the underlying financing receivables. • Other Structured Financing Programs — 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. The aggregate outstanding balances of the Canadian and European revolving structured loans as of August 4, 2017 and February 3, 2017 were $446 million and $382 million , respectively. As of August 4, 2017 , the Canadian program, which was extended during the fiscal year ended February 3, 2017, had a total debt capacity of $175 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 first quarter of Fiscal 2016, is now 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 $356 million as of August 4, 2017 . Variable Interest Entities In connection with the securitization programs discussed above, the Company transfers certain U.S. and European 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 Condensed 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: August 4, 2017 February 3, 2017 (in millions) Financing receivables held by consolidated VIEs, net: Short-term, net $ 2,440 $ 2,227 Long-term, net 1,790 1,381 Financing receivables held by consolidated VIEs, net $ 4,230 $ 3,608 Financing receivables transferred via securitization through SPEs were $1.0 billion and $0.8 billion for the three months ended August 4, 2017 and July 29, 2016 , respectively, and $1.9 billion and $1.4 billion for the six months ended August 4, 2017 and July 29, 2016 , 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 structured financing debt outstanding, which is collateralized by the financing receivables held by the consolidated VIEs, was $3.6 billion and $3.1 billion as of August 4, 2017 and February 3, 2017 , respectively. 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. 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 $228 million and $98 million for the six months ended August 4, 2017 and July 29, 2016 , respectively. |
DEBT
DEBT | 6 Months Ended |
Aug. 04, 2017 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT The following table summarizes the Company's outstanding debt as of the dates indicated: August 4, 2017 February 3, 2017 (in millions) Secured Debt Structured financing debt $ 4,050 $ 3,464 Senior Secured Credit Facilities: 3.74% Term Loan B Facility due September 2023 5,460 4,987 3.24% Term Loan A-1 Facility due December 2018 69 600 3.49% Term Loan A-2 Facility due September 2021 3,778 3,876 3.24% Term Loan A-3 Facility due December 2018 1,800 1,800 2.78% Revolving Credit Facility due September 2021 — 375 First Lien Notes: 3.48% due June 2019 3,750 3,750 4.42% due June 2021 4,500 4,500 5.45% due June 2023 3,750 3,750 6.02% due June 2026 4,500 4,500 8.10% due June 2036 1,500 1,500 8.35% due June 2046 2,000 2,000 Unsecured Debt Unsecured Notes and Debentures: 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 Senior Notes: 5.875% due June 2021 1,625 1,625 7.125% due June 2024 1,625 1,625 EMC Notes: 1.875% due June 2018 2,500 2,500 2.650% due June 2020 2,000 2,000 3.375% due June 2023 1,000 1,000 Other 3.56% Margin Loan Facility due April 2022 2,000 — 2.53% Margin Bridge Facility due September 2017 — 2,500 2.99% VMware Note Bridge Facility due September 2017 1,500 1,500 Other 86 51 Total debt, principal amount $ 49,946 $ 50,356 Unamortized discount, net of unamortized premium (281 ) (284 ) Debt issuance costs (605 ) (682 ) Total debt, carrying value $ 49,060 $ 49,390 Total short-term debt, carrying value $ 7,686 $ 6,329 Total long-term debt, carrying value $ 41,374 $ 43,061 During the three months ended May 5, 2017, the Company refinanced the Term Loan B Facility to reduce the interest rate margin by 0.75% and to increase the outstanding principal amount by $500 million . The Company applied the proceeds from the Term Loan B Facility refinancing to repay $500 million principal amount of the Margin Bridge Facility, without premium or penalty, and accrued and unpaid interest thereon. Additionally, during the three months ended May 5, 2017, the Company issued the Margin Loan Facility in the principal amount of $2.0 billion , and used the proceeds of the new facility to repay the Margin Bridge Facility, without premium or penalty. Further, during the six months ended August 4, 2017, the Company repaid approximately $0.6 billion principal amount of its term loan facilities, repaid $0.4 billion , net, under the Revolving Credit Facility, and issued an additional $0.6 billion , net, in structured financing debt to support the expansion of its financing receivables portfolio. Senior Secured Credit Facilities — At the closing of the EMC merger transaction on September 7, 2016, the Company entered into a credit agreement that provides for senior secured credit facilities (the "Senior Secured Credit Facilities") in the aggregate principal amount of $17.6 billion comprising (a) term loan facilities and (b) a senior secured Revolving Credit Facility, which includes capacity for up to $0.5 billion of letters of credit and for borrowings of up to $0.4 billion under swing-line loans. As of August 4, 2017 , available borrowings under the Revolving Credit Facility totaled $3.1 billion . The Senior Secured Credit Facilities provide that the borrowers have the right at any time, subject to customary conditions, to request incremental term loans or incremental revolving commitments. Borrowings under the Senior Secured Credit Facilities bear interest at a rate per annum equal to an applicable margin, plus, at the borrowers' option, either (a) a base rate, which, under the Term Loan B Facility, is subject to an interest rate floor of 1.75% per annum, and under all other borrowings is subject to an interest rate floor of 0% per annum, or (b) a London interbank offered rate ("LIBOR"), which, under the Term Loan B Facility, is subject to an interest rate floor of 0.75% per annum, and under all other borrowings is subject to an interest rate floor of 0% per annum. Interest is payable, in the case of loans bearing interest based on LIBOR, at the end of each interest period (but at least every three months), in arrears and, in the case of loans bearing interest based on the base rate, quarterly in arrears. The Term Loan A-1 Facility, the Term Loan A-3 Facility, and the Revolving Credit Facility have no amortization. The Term Loan A-2 Facility amortizes in equal quarterly installments in aggregate annual amounts equal to 5% of the original principal amount in each of the first two years after the closing date of the EMC merger transaction, 10% of the original principal amount in each of the third and fourth years after the closing date of the EMC merger transaction, and 70% of the original principal amount in the fifth year after the closing date of the EMC merger transaction. The Term Loan B Facility amortizes in equal quarterly installments in aggregate annual amounts equal to 1% of the original principal amount. The Term Loan A-1 and Term Loan A-3 Facilities require the borrowers to prepay outstanding borrowings under these facilities with 100% of the net cash proceeds of certain non-ordinary course asset sales or dispositions. The borrowers may voluntarily repay outstanding loans under the term loan facilities and the Revolving Credit Facility at any time without premium or penalty, other than customary "breakage" costs. All obligations of the borrowers under the Senior Secured Credit Facilities and certain swap agreements, cash management arrangements, and certain letters of credit provided by any lender or agent party to the Senior Secured Credit Facilities or any of its affiliates and certain other persons are secured by (a) a first-priority security interest in certain tangible and intangible assets of the borrowers and the guarantors and (b) a first-priority pledge of 100% of the capital stock of the borrowers, Dell Inc., an indirect wholly-owned subsidiary of Dell Technologies ("Dell"), and each wholly-owned material restricted subsidiary of the borrowers and the guarantors, in each case subject to certain thresholds, exceptions, and permitted liens. First Lien Notes — The senior secured notes (collectively, the "First Lien Notes") were issued on June 1, 2016 in an aggregate principal amount of $20.0 billion . Interest on these borrowings is payable semiannually. The First Lien Notes are secured, on a pari passu basis with the Senior Secured Credit Facilities, on a first-priority basis by substantially all of the tangible and intangible assets of the issuers and guarantors that secure obligations under the Senior Secured Credit Facilities, including pledges of all capital stock of the issuers, of Dell, and of certain wholly-owned material subsidiaries of the issuers and the guarantors, subject to certain exceptions. The Company has agreed to use commercially reasonable efforts to register with the SEC notes having terms substantially identical to the terms of the First Lien Notes as part of an offer to exchange such registered notes for the First Lien Notes. The Company will be obligated to pay additional interest on the First Lien Notes if it fails to consummate such an exchange offer within five years after the closing date of the EMC merger transaction. Senior Notes — The senior unsecured notes (collectively, the "Senior Notes") were issued on June 22, 2016 in an aggregate principal amount of $3.25 billion . Interest on these borrowings is payable semiannually. EMC Notes — On September 7, 2016, EMC had outstanding $2.5 billion aggregate principal amount of its 1.875% Notes due June 2018, $2.0 billion aggregate principal amount of its 2.650% Notes due June 2020, and $1.0 billion aggregate principal amount of its 3.375% Notes due June 2023 (collectively, the "EMC Notes"). Interest on these borrowings is payable semiannually. The EMC Notes remain outstanding following the closing of the EMC merger transaction. Margin Loan Facility — During the three months ended May 5, 2017, the Company issued the Margin Loan Facility in an aggregate principal amount of $2.0 billion . VMW Holdco LLC, a wholly-owned subsidiary of EMC, is the borrower under the Margin Loan Facility, which is secured by 60 million shares of Class B common stock of VMware, Inc. and 20 million shares of Class A common stock of VMware, Inc. Loans under the Margin Loan Facility bear interest at a rate per annum payable, at the borrower's option, either at (a) a base rate plus 1.25% per annum or (b) a LIBOR-based rate plus 2.25% per annum. Interest under the Margin Loan Facility is payable quarterly. The Margin Loan Facility will mature in April 2022. The borrower may voluntarily repay outstanding loans under the Margin Loan Facility at any time without premium or penalty, other than customary "breakage" costs, subject to certain minimum threshold amounts for prepayment. Margin Bridge Facility — On September 7, 2016, Merger Sub and EMC entered into a credit agreement providing for a senior secured margin bridge facility in an aggregate principal amount of $2.5 billion (the "Margin Bridge Facility"). During the three months ended May 5, 2017, the Company separately applied the proceeds from the Term Loan B Facility refinancing and the issuance of the Margin Loan Facility to repay the Margin Bridge Facility, without premium or penalty. VMware Note Bridge Facility — On September 7, 2016, Merger Sub and EMC entered into a credit agreement providing for a senior secured note bridge facility in an aggregate principal amount of $1.5 billion (the "VMware Note Bridge Facility"). The VMware Note Bridge Facility is secured solely by certain intercompany notes in an aggregate principal amount of $1.5 billion issued by VMware, Inc. that are payable to EMC, and the proceeds thereof. Interest under the VMware Note Bridge Facility is payable, at the borrower's option, either at (a) a base rate plus 0.75% per annum or (b) a LIBOR-based rate plus 1.75% per annum. Interest is payable, in the case of loans bearing interest based on LIBOR, at the end of each interest period (but at least every three months), in arrears and, in the case of loans bearing interest based on the base rate, quarterly in arrears. The VMware Note Bridge Facility has no amortization. The borrower is required to prepay outstanding borrowings under the VMware Note Bridge Facility with 100% of the net cash proceeds of any asset sale or other disposition of the pledged VMware, Inc. promissory notes. The borrower may voluntarily repay outstanding loans under the VMware Note Bridge Facility at any time without premium or penalty, other than customary "breakage" costs, subject to certain minimum threshold amounts for prepayment. For more information regarding the VMware Note Bridge Facility see Note 21 of the Notes to the Condensed Consolidated Financial Statements . Structured Financing Debt — As of August 4, 2017 and February 3, 2017 , the Company had $4.1 billion and $3.5 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 6 and Note 8 of the Notes to the 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. Unsecured Notes and Debentures — The Company has unsecured notes and debentures (collectively, the "Unsecured Notes and Debentures") that were issued prior to the acquisition of Dell by Dell Technologies Inc. Interest on these borrowings is payable semiannually. Aggregate Future Maturities — As of August 4, 2017 , aggregate future maturities of the Company's debt were as follows: Maturities by Fiscal Year 2018 (remaining six months) 2019 2020 2021 2022 Thereafter Total (in millions) Structured Financing Debt $ 1,653 $ 1,827 $ 422 $ 117 $ 30 $ 1 $ 4,050 Senior Secured Credit Facilities and First Lien Notes 125 2,169 4,198 336 7,302 16,977 31,107 Unsecured Notes and Debentures — 500 600 — 400 953 2,453 Senior Notes and EMC Notes — 2,500 — 2,000 1,625 2,625 8,750 Margin Loan Facility — — — — — 2,000 2,000 Bridge Facility 1,500 — — — — 1,500 Other 18 10 5 27 — 26 86 Total maturities, principal amount 3,296 7,006 5,225 2,480 9,357 22,582 49,946 Associated carrying value adjustments (3 ) (29 ) (45 ) (1 ) (217 ) (591 ) (886 ) Total maturities, carrying value amount $ 3,293 $ 6,977 $ 5,180 $ 2,479 $ 9,140 $ 21,991 $ 49,060 Covenants and Unrestricted Net Assets — The credit agreement for the Senior Secured Credit Facilities contain customary negative covenants that generally limit the ability of Denali Intermediate Inc., a wholly-owned subsidiary of Dell Technologies ("Dell Intermediate"), Dell, and Dell's and Denali Intermediate's other restricted subsidiaries to incur debt, create liens, make fundamental changes, enter into asset sales, make certain investments, pay dividends or distribute or redeem certain equity interests, prepay or redeem certain debt, and enter into certain transactions with affiliates. The indenture governing the Senior Notes contains customary negative covenants that generally limit the ability of Denali Intermediate, Dell, and Dell's and Denali Intermediate's other restricted subsidiaries to incur additional debt or issue certain preferred shares, pay dividends on or make other distributions in respect of capital stock or make other restricted payments, make certain investments, sell or transfer certain assets, create liens on certain assets to secure debt, consolidate, merge, sell, or otherwise dispose of all or substantially all assets, enter into certain transactions with affiliates, and designate subsidiaries as unrestricted subsidiaries. The negative covenants under such credit agreements and indenture are subject to certain exceptions, qualifications, and "baskets." The indentures governing the First Lien Notes, the Unsecured Notes and Debentures, and the EMC Notes variously impose limitations, subject to specified exceptions, on creating certain liens, entering into sale and lease-back transactions, and entering into certain asset sales. As of August 4, 2017 , the Company had certain consolidated subsidiaries that were designated as unrestricted subsidiaries for all purposes of the applicable credit agreements and the indentures governing the First Lien Notes and the Senior Notes. The foregoing credit agreements and indentures contain customary events of default, including failure to make required payments, failure to comply with covenants, and the occurrence of certain events of bankruptcy and insolvency. The Term Loan A-1 Facility, the Term Loan A-2 Facility, the Term Loan A-3 Facility, and the Revolving Credit Facility are subject to a first lien net leverage ratio covenant that is tested at the end of each fiscal quarter of Dell with respect to Dell's preceding four fiscal quarters. The Company was in compliance with all financial covenants as of August 4, 2017 . |
DERIVATIVE INSTRUMENTS AND HEDG
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | 6 Months Ended |
Aug. 04, 2017 | |
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 foreign currency forward and option contracts and interest rate swaps, to hedge certain foreign currency and interest rate exposures, respectively. The Company's objective is to offset gains and losses resulting from these exposures with gains and losses on the derivative contracts used to hedge the exposures, thereby reducing volatility of earnings and protecting the fair values of assets and liabilities. 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 August 4, 2017 and July 29, 2016 . Foreign Exchange Risk The Company uses foreign currency forward and option contracts designated as cash flow hedges to protect against the foreign currency exchange rate risks inherent in its forecasted transactions denominated in currencies other than the U.S. dollar. Hedge accounting is applied based upon the criteria established by accounting guidance for derivative instruments and hedging activities. The risk of loss associated with purchased options is limited to premium amounts paid for the option contracts. The risk of loss associated with forward contracts is equal to the exchange rate differential from the time the contract is entered into until the time it is settled. The majority of these contracts typically expire in twelve months or less. During the three and six months ended August 4, 2017 and July 29, 2016 , 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. The Company utilizes cross currency amortizing swaps to hedge the currency and interest rate risk exposure associated with the securitization program that was established in Europe in January 2017. The cross currency swaps combine a Euro-based interest rate swap with a British Pound or U.S. Dollar foreign exchange forward contract in which the Company pays a fixed British Pound or U.S. Dollar amount and receives a floating amount in Euro linked to the one-month Euribor. The notional value of the swaps amortizes in line with the expected cash flows and run-off of the securitized assets. The swaps mature within five years or less and are not designated for hedge accounting. Notional Amounts of Outstanding Derivative Instruments The notional amounts of the Company's outstanding derivative instruments were as follows as of the dates indicated: August 4, 2017 February 3, 2017 (a) (in millions) Foreign exchange contracts: Designated as cash flow hedging instruments $ 4,181 $ 3,781 Non-designated as hedging instruments 6,601 5,146 Total $ 10,782 $ 8,927 Interest rate contracts: Non-designated as hedging instruments $ 1,519 $ 1,251 ____________________ (a) During the three months ended May 5, 2017, the notional amount calculation methodology was enhanced to reflect the sum of the absolute value of derivative instruments netted by currency. Prior period amounts have been updated to conform with the current period presentation. Effect of Derivative Instruments on the Condensed Consolidated Statements of Financial Position and the Condensed Consolidated Statements of Income (Loss) Derivatives in Gain (Loss) Location of Gain (Loss) Gain (Loss) 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 August 4, 2017 Total net revenue $ (49 ) Foreign exchange contracts $ (141 ) Total cost of net revenue (21 ) Interest rate contracts — Interest and other, net — Interest and other, net $ — Total $ (141 ) $ (70 ) $ — 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 six months ended August 4, 2017 Total net revenue $ (32 ) Foreign exchange contracts $ (157 ) Total cost of net revenue (17 ) Interest rate contracts — Interest and other, net — Interest and other, net $ — Total $ (157 ) $ (49 ) $ — 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 ) Fair Value of Derivative Instruments in the Condensed 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: August 4, 2017 Other Current Other Non- Other Current Other Non-Current Total (in millions) Derivatives designated as hedging instruments: Foreign exchange contracts in an asset position $ 19 $ — $ 23 $ — $ 42 Foreign exchange contracts in a liability position (23 ) — (57 ) — (80 ) Net asset (liability) (4 ) — (34 ) — (38 ) Derivatives not designated as hedging instruments: Foreign exchange contracts in an asset position 179 2 68 — 249 Foreign exchange contracts in a liability position (59 ) — (214 ) — (273 ) Interest rate contracts in an asset position — 7 — — 7 Interest rate contracts in a liability position — — — — — Net asset (liability) 120 9 (146 ) — (17 ) Total derivatives at fair value $ 116 $ 9 $ (180 ) $ — $ (55 ) February 3, 2017 Other Current Other Non- Other Current Other Non-Current Total (in millions) Derivatives designated as hedging instruments: Foreign exchange contracts in an asset position $ 41 $ — $ 17 $ — $ 58 Foreign exchange contracts in a liability position (19 ) — (6 ) — (25 ) Net asset (liability) 22 — 11 — 33 Derivatives not designated as hedging instruments: Foreign exchange contracts in an asset position 309 2 31 — 342 Foreign exchange contracts in a liability position (131 ) — (103 ) — (234 ) Interest rate contracts in an asset position — 3 — — 3 Interest rate contracts in a liability position — — — (3 ) (3 ) Net asset (liability) 178 5 (72 ) (3 ) 108 Total derivatives at fair value $ 200 $ 5 $ (61 ) $ (3 ) $ 141 The following table presents the gross amounts of the Company's derivative instruments, amounts offset due to master netting agreements with the Company's counterparties, and the net amounts recognized in the Condensed Consolidated Statements of Financial Position. August 4, 2017 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 $ 298 $ (173 ) $ 125 $ — $ — $ 125 Financial liabilities (353 ) 173 (180 ) — — (180 ) Total derivative instruments $ (55 ) $ — $ (55 ) $ — $ — $ (55 ) February 3, 2017 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 $ 403 $ (198 ) $ 205 $ — $ — $ 205 Financial liabilities (262 ) 198 (64 ) — — (64 ) Total derivative instruments $ 141 $ — $ 141 $ — $ — $ 141 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 6 Months Ended |
Aug. 04, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS Goodwill The following table presents goodwill allocated to the Company's business segments as of August 4, 2017 and February 3, 2017 , and changes in the carrying amount of goodwill for the respective periods: Client Solutions Group Infrastructure Solutions Group VMware Other Businesses (a) Total (in millions) Balances as of February 3, 2017 $ 4,237 $ 15,607 $ 15,070 $ 3,996 $ 38,910 Goodwill acquired during the period — — 238 9 247 Goodwill divested — (13 ) — — (13 ) Impact of foreign currency translation — 220 — 43 263 Balances as of August 4, 2017 $ 4,237 $ 15,814 $ 15,308 $ 4,048 $ 39,407 ____________________ (a) Other Businesses consists of offerings by RSA Information Security, SecureWorks, Pivotal, and Boomi. 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 test, no impairment of goodwill or indefinite-lived intangible assets existed for any reporting unit as of October 28, 2016. No events or circumstances transpired subsequent to the annual impairment test that would indicate a potential impairment of goodwill as of August 4, 2017 . Further, the Company did not have any accumulated goodwill impairment charges as of August 4, 2017 . 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 judgment, 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 August 4, 2017 and February 3, 2017 were as follows: August 4, 2017 February 3, 2017 Gross Accumulated Amortization Net Gross Accumulated Amortization Net (in millions) Customer relationships $ 22,715 $ (7,095 ) $ 15,620 $ 22,708 $ (5,552 ) $ 17,156 Developed technology 15,494 (4,375 ) 11,119 14,569 (2,510 ) 12,059 Trade names 1,270 (308 ) 962 1,268 (201 ) 1,067 Leasehold assets (liabilities) 128 (4 ) 124 128 (1 ) 127 Definite-lived intangible assets 39,607 (11,782 ) 27,825 38,673 (8,264 ) 30,409 In-process research and development — — — 890 — 890 Indefinite-lived trade names 3,755 — 3,755 3,754 — 3,754 Total intangible assets $ 43,362 $ (11,782 ) $ 31,580 $ 43,317 $ (8,264 ) $ 35,053 Amortization expense related to definite-lived intangible assets was approximately $1,740 million and $491 million during the three months ended August 4, 2017 and July 29, 2016 , respectively, and $3,516 million and $982 million during the six months ended August 4, 2017 and July 29, 2016 , respectively. There were no material impairment charges related to intangible assets during the three and six months ended August 4, 2017 and July 29, 2016 . Estimated future annual pre-tax amortization expense of definite-lived intangible assets as of August 4, 2017 over the next five fiscal years and thereafter is as follows: Fiscal Years (in millions) 2018 (remaining six months) $ 3,463 2019 6,059 2020 4,274 2021 3,333 2022 2,616 Thereafter 8,080 Total $ 27,825 |
WARRANTY LIABILITY
WARRANTY LIABILITY | 6 Months Ended |
Aug. 04, 2017 | |
Product Warranties Disclosures [Abstract] | |
WARRANTY LIABILITY | WARRANTY LIABILITY 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 liability for standard limited warranties are presented in the following table for the periods indicated. Three Months Ended Six Months Ended August 4, 2017 July 29, 2016 August 4, 2017 July 29, 2016 (in millions) Warranty liability: Warranty liability at beginning of period $ 607 $ 561 $ 604 $ 574 Costs accrued for new warranty contracts and changes in estimates for pre-existing warranties (a) (b) 223 182 463 382 Service obligations honored (242 ) (178 ) (479 ) (391 ) Warranty liability at end of period $ 588 $ 565 $ 588 $ 565 Current portion $ 412 $ 385 $ 412 $ 385 Non-current portion $ 176 $ 180 $ 176 $ 180 ____________________ (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. |
SEVERANCE CHARGES
SEVERANCE CHARGES | 6 Months Ended |
Aug. 04, 2017 | |
Restructuring and Related Activities [Abstract] | |
SEVERANCE CHARGES | SEVERANCE CHARGES In connection with the transformation of the Company's business model, the Company incurs costs related to employee severance. The Company records a liability for these costs when it is probable that employees will be entitled to termination benefits and the amounts can be reasonably estimated. The liability related to these actions is included in accrued and other current liabilities in the Condensed Consolidated Statements of Financial Position . The following table sets forth the activity related to the Company's severance liability for the respective periods: Three Months Ended Six Months Ended August 4, 2017 July 29, 2016 August 4, 2017 July 29, 2016 (in millions) Balance at beginning of period $ 257 $ 29 $ 416 $ 26 Severance charges to provision 14 9 44 26 Cash paid and other (85 ) (16 ) (274 ) (30 ) Balance at end of period $ 186 $ 22 $ 186 $ 22 Severance costs are included in cost of net revenue, selling, general, and administrative expenses, and research and development expense in the Condensed Consolidated Statements of Income (Loss) as follows: Three Months Ended Six Months Ended August 4, 2017 July 29, 2016 August 4, 2017 July 29, 2016 (in millions) Severance charges: Cost of net revenue $ (1 ) $ 1 $ 4 $ 5 Selling, general, and administrative 7 6 14 13 Research and development 8 2 26 8 Total $ 14 $ 9 $ 44 $ 26 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Aug. 04, 2017 | |
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 a 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") were named as defendants in fifteen putative class-action lawsuits brought by purported EMC shareholders and VMware, Inc. stockholders challenging the proposed merger between the Company, Dell, and Universal on the one hand, and EMC on the other (the "EMC merger"). Those suits are captioned as follows: Case Court Filing Date 1. IBEW Local No. 129 Benefit Fund v. Tucci , Civ. No. 1584-3130-BLS1 Mass. Superior Court, Suffolk County 10/15/2015 2. Barrett v. Tucci , Civ. No. 15-6023-A Mass. Superior Court, Middlesex County 10/16/2015 3. Graulich v. Tucci , Civ. No. 1584-3169-BLS1 Mass. Superior Court, Suffolk County 10/19/2015 4. Vassallo v. EMC Corp. , Civ. No. 1584-3173-BLS1 Mass. Superior Court, Suffolk County 10/19/2015 5. City of Miami Police Relief & Pension Fund v. Tucci , Civ. No. 1584-3174-BLS1 Mass. Superior Court, Suffolk County 10/19/2015 6. Lasker v. EMC Corp. , Civ. No. 1584-3214-BLS1 Mass. Superior Court, Suffolk County 10/23/2015 7. Walsh v. EMC Corp. , Civ. No. 15-13654 U.S. District Court, District of Massachusetts 10/27/2015 8. Local Union No. 373 U.A. Pension Plan v. EMC Corp. , Civ. No. 1584-3253-BLS1 Mass. Superior Court, Suffolk County 10/28/2015 9. City of Lakeland Emps.' Pension & Ret. Fund v. Tucci , Mass. Superior Court, Suffolk County 10/28/2015 10. Ma v. Tucci , Civ. No. 1584-3281-BLS1 Mass. Superior Court, Suffolk County 10/29/2015 11. Stull v. EMC Corp. , Civ. No. 15-13692 U.S. District Court, District of Massachusetts 10/30/2015 12. Jacobs v. EMC Corp. , Civ. No. 15-6318-H Mass. Superior Court, Middlesex County 11/12/2015 13. Ford v. VMware, Inc. , C.A. No. 11714-VCL Delaware Chancery Court 11/17/2015 14. Pancake v. EMC Corp. , Civ. No. 16-10040 U.S. District Court, District of Massachusetts 1/11/2016 15. Booth Family Trust v. EMC Corp. , Civ. No. 16-10114 U.S. District Court, District of Massachusetts 1/26/2016 The fifteen lawsuits sought, among other things, injunctive relief enjoining the EMC merger, rescission of the EMC merger if consummated, an award of fees and costs, and/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 discouraged competing bids. After consolidating the nine complaints, by decision dated December 7, 2015, the Business Litigation Session of the Suffolk County Superior Court in Massachusetts dismissed all nine complaints for failure to make a demand on the EMC board of directors. Three of the nine plaintiffs in the consolidated actions appealed the judgment dismissing their complaints. The Massachusetts Supreme Judicial Court granted an application for direct appellate review, and heard oral argument on the appeal on November 7, 2016. On March 6, 2017, the Supreme Judicial Court issued a decision affirming the dismissal. This decision terminated the consolidated actions. 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 discouraged competing bids. The complaints generally further allege that the preliminary registration statement on 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 and/or that the Company, Dell, and Universal acted as controlling persons of EMC under Section 20(a) of the Exchange Act. 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. On October 25, 2016, following an agreement between the parties with respect to attorneys' fees and expenses, the Court entered an order terminating the four actions for all purposes. The amended complaints in the Jacobs and Ford actions allege that EMC, as the majority stockholder of VMware, Inc., and the individual defendants, who were directors of EMC, VMware, Inc., or both, breached their fiduciary duties to minority stockholders of VMware, Inc. 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. The plaintiffs in the Jacobs action also brought suit against the Company, Dell, and Universal as alleged aiders and abettors. Effective December 2, 2016, the parties entered into an agreement to resolve the Jacobs action, pursuant to which the plaintiff voluntarily dismissed the action with prejudice. Under the operative amended complaint in the Ford action, the plaintiffs also brought suit against the Company and Dell for alleged breach of fiduciary duties to VMware, Inc. and its stockholders, and against the Company, Dell, and Universal for aiding and abetting the alleged breach of fiduciary duties by EMC's and VMware, Inc.'s directors. Certain defendants filed motions to dismiss the amended complaint on June 21, 2016. A hearing on those motions was held on February 3, 2017. On May 2, 2017, the Court dismissed the amended complaint for failure to state a claim upon which relief could be granted and no appeal was taken. All fifteen EMC merger-related lawsuits are now fully and finally resolved. Appraisal Proceedings — On October 29, 2013, Dell Technologies acquired Dell in a transaction referred to as the going-private transaction. 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. 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. This liability was approximately $129 million as of both August 4, 2017 and February 3, 2017 . The Court of Chancery ruled 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. This ruling would entitle the holders of the remaining 5,505,730 shares subject to the appraisal proceedings to $17.62 per share, plus interest at a statutory rate, compounded quarterly. On November 21, 2016, the Court of Chancery entered final judgment in the appraisal action. On November 22, 2016, Dell filed a notice of appeal to the Delaware Supreme Court, and a hearing is scheduled on that appeal for September 27, 2017. The Company believes it was adequately reserved for the appraisal proceedings as of August 4, 2017 . 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. On September 16, 2016, the Court denied the motion to dismiss and the case is proceeding with discovery. 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 and other EU member states against various companies, including Dell subsidiaries. The plaintiffs in those proceedings generally seek to impose or modify the levies with respect to sales of such equipment as multifunction devices, phones, personal computers, storage devices, 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. 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 varies 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 August 4, 2017 , 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. In connection with the divestitures discussed in Note 3 of the Notes to the Condensed Consolidated Financial Statements , the Company has indemnified the purchasers of businesses for the occurrence of specified events. The Company does not currently believe that contingent obligations to provide indemnification in connection with these divestitures will have a material adverse effect on the Company. Purchase Obligations The Company has contractual obligations to purchase goods or services, which specify significant terms, including fixed or minimum quantities to be purchased; fixed, minimum, or variable price provisions; and the approximate timing of the transaction. As of August 4, 2017 , the Company had $2,724 million , $267 million , and $448 million in purchase obligations for Fiscal 2018 (remaining six months) , Fiscal 2019 , and Fiscal 2020 and thereafter , respectively. |
INCOME AND OTHER TAXES
INCOME AND OTHER TAXES | 6 Months Ended |
Aug. 04, 2017 | |
Income Tax Disclosure [Abstract] | |
INCOME AND OTHER TAXES | INCOME AND OTHER TAXES For the three and six months ended August 4, 2017 , the Company's effective income tax rates for continuing operations were 35.8% and 34.4% , respectively, on pre-tax losses from continuing operations of $1,524 million and $3,597 million , respectively. For the three and six months ended July 29, 2016 , the Company's effective income tax rates for continuing operations were 7.1% and (7.2)% , respectively, on pre-tax losses from continuing operations of $282 million and $640 million , respectively. The change in the Company's effective income tax rate was primarily attributable to prior year tax charges recognized during the three and six months ended July 29, 2016 related to the divestiture of Dell Services and DSG, as well as tax benefits from charges associated with the EMC merger transaction incurred during the six months ended August 4, 2017 , including purchase accounting adjustments, interest charges, and stock-based compensation expense. For more information regarding the EMC merger transaction, see Note 2 of the Notes to the Condensed Consolidated Financial Statements . The income tax rate for future quarters of Fiscal 2018 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 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 relate to a tax holiday that expires in January 2019. The Company's other tax holidays will expire in whole or in part during fiscal years 2019 through 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. The Company's U.S. federal income tax returns for fiscal years 2007 through 2009 are currently under consideration by the Office of Appeals of the Internal Revenue Service (the "IRS"). The IRS issued a Revenue Agent's Report ("RAR") related to those years during the fiscal year ended February 3, 2017 . The IRS has proposed adjustments primarily relating to transfer pricing matters with which the Company disagrees and will contest through the IRS administrative appeals procedures. In May 2017, the IRS commenced a federal income tax audit for fiscal years 2010 through 2014, which could take several years to complete. Prior to the EMC merger transaction, EMC received a RAR for its tax years 2009 and 2010, and during the three months ended May 5, 2017, EMC received an RAR for its tax year 2011. The Company also disagrees with certain proposed adjustments in these RARs and is currently contesting the proposed adjustments through the IRS administrative appeals process. The Company is also 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. 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 2007. 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 were $3.2 billion and $3.1 billion as of August 4, 2017 and February 3, 2017 , respectively, and are included in other non-current liabilities in the Condensed Consolidated Statements of Financial Position. The Company does not anticipate a significant change to the total amount of unrecognized tax benefits within the next twelve months. The Company takes certain non-income tax positions in the jurisdictions in which it operates and has received certain non-income tax assessments from various jurisdictions. The Company believes that a material loss in these matters is not probable and that it is not reasonably possible that a material loss exceeding amounts already accrued has been incurred. The Company believes its positions in these non-income tax litigation matters are supportable and that it ultimately will prevail in the matters. In the normal course of business, the Company's positions and conclusions related to its non-income taxes could be challenged and assessments may be made. To the extent new information is obtained and the Company's views on its positions, probable outcomes of assessments, or litigation change, changes in estimates to the Company's accrued liabilities would be recorded in the period in which such a determination is made. In the resolution process for income tax and non-income tax audits, the Company 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 |
Aug. 04, 2017 | |
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 consists of amounts related to foreign currency translation adjustments, unrealized net gains (losses) on investments, unrealized net gains (losses) on cash flow hedges, and actuarial net gains (losses) from pension and other postretirement plans. The following table presents changes in accumulated other comprehensive loss, net of tax, by the following components for the periods indicated: Foreign Currency Translation Adjustments Investments Cash Flow Hedges Pension and Other Postretirement Plans Accumulated Other Comprehensive Loss (in millions) Balances as of February 3, 2017 $ (612 ) $ (13 ) $ 11 $ 19 $ (595 ) Other comprehensive income (loss) before reclassifications 450 47 (157 ) — 340 Amounts reclassified from accumulated other comprehensive loss — 3 49 — 52 Total change for the period 450 50 (108 ) — 392 Less: Change in comprehensive income attributable to non-controlling interests — 4 — — 4 Balances as of August 4, 2017 $ (162 ) $ 33 $ (97 ) $ 19 $ (207 ) Amounts related to investments are reclassified to net income when gains and losses are realized. See Note 4 and Note 5 of the Notes to the Condensed Consolidated Financial Statements for more information on the Company's investments. 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 8 of the Notes to the Condensed Consolidated Financial Statements for more information on the Company's derivative instruments. The following tables present reclassifications out of accumulated other comprehensive loss, net of tax, to net income (loss) for the periods presented: Three Months Ended August 4, 2017 July 29, 2016 Investments Cash Flow Hedges Total Investments Cash Flow Hedges Total (in millions) Total reclassifications, net of tax: Net revenue $ — $ (49 ) $ (49 ) $ — $ (21 ) $ (21 ) Cost of net revenue — (21 ) (21 ) — (6 ) (6 ) Interest and other, net (2 ) — (2 ) — — — Total reclassifications, net of tax $ (2 ) $ (70 ) $ (72 ) $ — $ (27 ) $ (27 ) Six Months Ended August 4, 2017 July 29, 2016 Investments Cash Flow Hedges Total Investments Cash Flow Hedges Total (in millions) Total reclassifications, net of tax: Net revenue $ — $ (32 ) $ (32 ) $ — $ (66 ) $ (66 ) Cost of net revenue — (17 ) (17 ) — (14 ) (14 ) Interest and other, net (3 ) — (3 ) — (1 ) (1 ) Total reclassifications, net of tax $ (3 ) $ (49 ) $ (52 ) $ — $ (81 ) $ (81 ) |
NON-CONTROLLING INTERESTS
NON-CONTROLLING INTERESTS | 6 Months Ended |
Aug. 04, 2017 | |
Noncontrolling Interest [Abstract] | |
NON-CONTROLLING INTERESTS | NON-CONTROLLING INTERESTS VMware, Inc. — The non-controlling interests' share of equity in VMware, Inc. is reflected as a component of the non-controlling interests in the accompanying Condensed Consolidated Statements of Financial Position and was $5.4 billion and $5.2 billion as of August 4, 2017 and February 3, 2017 , respectively. As of August 4, 2017 and February 3, 2017 , the Company held approximately 81.4% and 82.5% , respectively, of the outstanding equity interest in VMware, Inc. SecureWorks — On April 27, 2016, SecureWorks completed a registered underwritten IPO of its Class A common stock. The non-controlling interests' share of equity in SecureWorks is reflected as a component of the non-controlling interests in the accompanying Condensed Consolidated Statements of Financial Position and was $87 million and $86 million as of August 4, 2017 and February 3, 2017 , respectively. As of August 4, 2017 and February 3, 2017 , the Company held approximately 87.1% and 87.5% , respectively, of the outstanding equity interest in SecureWorks. Pivotal — A portion of the non-controlling interests in Pivotal is held by third parties in the form of preferred equity instruments. Due to the terms of such instruments, Pivotal's results of operations and equity activity are not attributable to such interests in Pivotal in the Condensed Consolidated Statements of Income (Loss) and Condensed Consolidated Statements of Financial Position . The preferred equity instruments are convertible into common shares at the non-controlling owner's election at any time. The remaining portion of the non-controlling interests in Pivotal is held by third parties in the form of common stock. Pivotal's results of operations and equity activity are attributable to such interests in Pivotal in the Condensed Consolidated Statements of Income (Loss) and Condensed Consolidated Statements of Financial Position . The non-controlling interests' share of equity in Pivotal, including both preferred equity instruments and common stock, is reflected as a component of the non-controlling interests in the accompanying Condensed Consolidated Statements of Financial Position and was $477 million and $472 million as of August 4, 2017 and February 3, 2017 , respectively. As of August 4, 2017 and February 3, 2017 , the Company held approximately 77.4% and 77.8% , respectively, of the outstanding equity interest in Pivotal. The effect of changes in the Company's ownership interest in VMware, Inc., SecureWorks, and Pivotal on the Company's equity for the period presented was as follows: Six Months Ended August 4, 2017 (in millions) Net loss attributable to Dell Technologies Inc. $ (2,280 ) Transfers (to) from the non-controlling interests: Increase in Dell Technologies Inc. additional paid-in-capital for equity issuances and other equity activity 305 Decrease in Dell Technologies Inc. additional paid-in-capital for equity issuances and other equity activity (351 ) Net transfers to non-controlling interests (46 ) Change from net loss attributable to Dell Technologies Inc. and transfers to/from the non-controlling interests $ (2,326 ) |
EARNINGS (LOSS) PER SHARE
EARNINGS (LOSS) PER SHARE | 6 Months Ended |
Aug. 04, 2017 | |
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 instruments. 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 two groups of common stock, denoted as the DHI Group Common Stock and the Class V Common Stock. The DHI Group Common Stock consists of four classes of common stock, referred to as Class A Common Stock, Class B Common Stock, Class C Common Stock, and Class D Common Stock. The DHI Group generally refers to the direct and indirect interest of Dell Technologies in all of Dell Technologies' business, assets, properties, liabilities, and preferred stock other than those attributable to the Class V Group, as well as its retained interest in the Class V Group equal to approximately 38% of the Company's economic interest in the Class V Group as of August 4, 2017 . The Class V Common Stock is intended to track the economic performance of approximately 62% of the Company's economic interest in the Class V Group as of such date. As of August 4, 2017 , the Class V Group consisted solely of approximately 333 million shares of VMware, Inc. common stock held by the Company. See Note 17 of the Notes to the Condensed Consolidated Financial Statements and Exhibit 99.1 to the Company's quarterly report on Form 10-Q for the quarterly period ended August 4, 2017 for more information regarding the allocation of earnings from Dell Technologies' interest in VMware, Inc. between the DHI Group and the Class V Common Stock. For purposes of calculating earnings (loss) per share, the Company used the two-class method. As all classes of DHI Group Common Stock share the same rights in dividends, basic and diluted earnings (loss) per share are the same for each class of DHI Group Common Stock. The following table sets forth basic and diluted earnings (loss) per share for each of the periods presented: Three Months Ended Six Months Ended August 4, 2017 July 29, 2016 August 4, 2017 July 29, 2016 Earnings (loss) per share attributable to Dell Technologies Inc. - basic: Continuing operations - Class V Common Stock - basic $ 0.83 $ — $ 1.40 $ — Continuing operations - DHI Group - basic $ (1.97 ) $ (0.64 ) $ (4.53 ) $ (1.69 ) Discontinued operations - DHI Group - basic $ — $ 2.06 $ — $ 3.24 Earnings (loss) per share attributable to Dell Technologies Inc. - diluted: Continuing operations - Class V Common Stock - diluted $ 0.82 $ — $ 1.38 $ — Continuing operations - DHI Group - diluted $ (1.97 ) $ (0.64 ) $ (4.54 ) $ (1.69 ) Discontinued operations - DHI Group - diluted $ — $ 2.06 $ — $ 3.24 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 August 4, 2017 July 29, 2016 August 4, 2017 July 29, 2016 (in millions) Numerator: Continuing operations - Class V Common Stock Net income from continuing operations attributable to Class V Common Stock - basic $ 168 $ — $ 286 $ — Incremental dilution from VMware, Inc. attributable to Class V Common Stock (a) (2 ) — (4 ) — Net income from continuing operations attributable to Class V Common Stock - diluted $ 166 $ — $ 282 $ — Numerator: Continuing operations - DHI Group Net loss from continuing operations attributable to DHI Group - basic $ (1,114 ) $ (261 ) $ (2,566 ) $ (685 ) Incremental dilution from VMware, Inc. attributable to DHI Group (a) (1 ) — (2 ) — Net loss from continuing operations attributable to DHI Group - diluted $ (1,115 ) $ (261 ) $ (2,568 ) $ (685 ) Numerator: Discontinued operations - DHI Group Income from discontinued operations, net of income taxes - basic and diluted $ — $ 834 $ — $ 1,313 Denominator: Class V Common Stock weighted-average shares outstanding Weighted-average shares outstanding - basic 203 — 205 — Dilutive effect of options, restricted stock units, restricted stock, and other (b) — — — — Weighted-average shares outstanding - diluted 203 — 205 — Weighted-average shares outstanding - antidilutive (b) — — — — Denominator: DHI Group weighted-average shares outstanding Weighted-average shares outstanding - basic 566 405 566 405 Dilutive effect of options, restricted stock units, restricted stock, and other — — — — Weighted-average shares outstanding - diluted 566 405 566 405 Weighted-average shares outstanding - antidilutive (c) 36 53 37 54 ____________________ (a) The incremental dilution from VMware, Inc. represents the impact of VMware, Inc.'s dilutive securities on the diluted earnings (loss) per share of the DHI Group and the Class V Common Stock, respectively, and is calculated by multiplying the difference between VMware, Inc.'s basic and diluted earnings (loss) per share by the number of shares of VMware, Inc. Class A common stock owned by the Company. (b) The dilutive effect of Class V Common Stock-based incentive awards was not material to the calculation of the weighted-average Class V Common Stock shares outstanding. The antidilutive effect of these awards was also not material. (c) Stock-based incentive awards have been excluded from the calculation of the DHI Group's diluted earnings (loss) per share because their effect would have been antidilutive, as the Company had a net loss from continuing operations attributable to the DHI Group for the periods presented. The following table presents a reconciliation to the consolidated net income (loss) attributable to Dell Technologies Inc.: Three Months Ended Six Months Ended August 4, 2017 July 29, 2016 August 4, 2017 July 29, 2016 (in millions) Net income from continuing operations attributable to Class V Common Stock $ 168 $ — $ 286 $ — Net loss from continuing operations attributable to DHI Group (1,114 ) (261 ) (2,566 ) (685 ) Net loss from continuing operations attributable to Dell Technologies Inc. (946 ) (261 ) (2,280 ) (685 ) Income from discontinued operations, net of income taxes (Note 3) — 834 — 1,313 Net income (loss) attributable to Dell Technologies Inc. $ (946 ) $ 573 $ (2,280 ) $ 628 |
CAPITALIZATION
CAPITALIZATION | 6 Months Ended |
Aug. 04, 2017 | |
Equity [Abstract] | |
CAPITALIZATION | CAPITALIZATION On June 26, 2017, the stockholders of the Company voted at the Company’s 2017 annual meeting of stockholders to adopt an amendment to the Company’s certificate of incorporation to increase (1) the total authorized number of shares of the Company’s capital stock, including preferred stock, from 2,144,025,308 shares to 9,144,025,308 shares, (2) the total authorized number of shares of the Company’s common stock from 2,143,025,308 shares to 9,143,025,308 shares and (3) the total authorized number of shares of the Company’s Class C Common Stock from 900,000,000 shares to 7,900,000,000 shares, in each case representing an increase of seven billion shares. A certificate of amendment to the Company’s certificate of incorporation effectuating the amendment was filed with the Secretary of State of the State of Delaware on June 29, 2017 and became effective on that date. The following table summarizes the Company's authorized, issued, and outstanding common stock as of the dates indicated: Authorized Issued Outstanding (in millions of shares) Common stock as of February 3, 2017 Class A 600 410 410 Class B 200 137 137 Class C 900 22 22 Class D 100 — — Class V 343 223 209 2,143 792 778 Common stock as of August 4, 2017 Class A 600 410 410 Class B 200 137 137 Class C 7,900 23 23 Class D 100 — — Class V 343 223 203 9,143 793 773 Preferred Stock — The Company is authorized to issue one million shares of preferred stock, par value $.01 per share. As of August 4, 2017 , no shares of preferred stock were issued or outstanding. Class V Common Stock and Class V Group — In connection with the EMC merger transaction, the Company authorized 343 million shares of Class V Common Stock. The Class V Common Stock is a type of common stock commonly referred to as a tracking stock, which is a class of common stock that is intended to track the economic performance of a defined set of assets and liabilities. As of August 4, 2017 , the 203 million shares of outstanding Class V Common Stock were intended to track the economic performance of approximately 62% of Dell Technologies' economic interest in the Class V Group. The Class V Group as of such date consisted solely of approximately 333 million shares of VMware, Inc. common stock held by the Company. The remaining 38% economic interest in the Class V Group as of August 4, 2017 was represented by the approximately 127 million retained interest shares held by the DHI Group. The DHI Group generally refers, in addition to such retained interest, to the direct and indirect interest of Dell Technologies in all of Dell Technologies' business, assets, properties, liabilities, and preferred stock other than those attributable to the Class V Group. Repurchases of Common Stock; Treasury Stock Class V Common Stock Repurchases — On December 13, 2016, the board of directors approved a stock repurchase program (the "Class V Group Repurchase Program") which authorized the Company to use assets of the Class V Group to repurchase up to $500 million of shares of Class V Common Stock over a period of six months . During the three months ended May 5, 2017 , the Company repurchased 1.3 million shares of Class V Common Stock for $82 million pursuant to this initial authorization. On March 27, 2017, the board of directors approved an amendment of the Class V Group Repurchase Program (the "March 2017 Class V Group Repurchase Program") which authorized the Company to use assets of the Class V Group to repurchase up to an additional $300 million of shares of Class V Common Stock over a period of an additional six months . During the six months ended August 4, 2017 , the Company repurchased 4.6 million shares of Class V Common Stock for $300 million pursuant to the March 2017 Class V Group Repurchase Program. On May 9, 2017, the March 2017 Class V Group Repurchase Program was completed. The following table presents the repurchase activity with respect to the Class V Common Stock for the six months ended August 4, 2017 , and the attribution of the Class V Group between the Class V Common Stock and the DHI Group's retained interest as of the dates indicated: Class V Common Stock DHI Group Retained Interest Shares of Class V Common Stock Interest in Class V Group Retained Interest Shares Interest in Class V Group (in millions of shares) As of February 3, 2017 209 62 % 127 38 % Repurchases of Class V Common Stock (6 ) — As of August 4, 2017 203 62 % 127 38 % All shares of Class V Common Stock repurchased by the Company pursuant to the repurchase programs are held as treasury stock at cost. The repurchase of shares pursuant to the Class V Common Stock repurchase programs was funded from proceeds received by the Class V Group from the sale by a subsidiary of the Company of shares of Class A common stock of VMware, Inc. owned by such subsidiary, as described below under "VMware, Inc. Class A Common Stock Repurchases." Share repurchases made by VMware, Inc. of its Class A common stock from a subsidiary of the Company do not affect the determination of the respective interests of the Class V Common Stock and the DHI Group in the Class V Group. See Exhibit 99.1 to the Company's quarterly report on Form 10-Q for the quarterly period ended August 4, 2017 for more information regarding Unaudited Attributed Financial Information for the Class V Group. VMware, Inc. Class A Common Stock Repurchases — On December 15, 2016, the Company entered into a stock purchase agreement with VMware, Inc. (the "December 2016 Stock Purchase Agreement"), pursuant to which VMware, Inc. agreed to repurchase for cash $500 million of shares of VMware, Inc. Class A common stock from a subsidiary of the Company. During the three months ended May 5, 2017, VMware, Inc. repurchased 1.4 million shares pursuant to the December 2016 Stock Purchase Agreement . VMware, Inc. repurchased a total of 6.2 million shares under this agreement. The Company applied the proceeds from the sale to the repurchase of shares of its Class V Common Stock under the Class V Group Repurchase Program described above. All shares repurchased under VMware, Inc.'s stock repurchase programs are retired. In January 2017, VMware, Inc.'s board of directors authorized the repurchase of up to an additional $1.2 billion of shares of VMware, Inc. Class A common stock (the "January 2017 Authorization") through the end of Fiscal 2018. On March 29, 2017, the Company entered into a new stock purchase agreement with VMware, Inc. (the "March 2017 Stock Purchase Agreement"), pursuant to which VMware, Inc. agreed to repurchase for cash $300 million of shares of VMware, Inc. Class A common stock from a subsidiary of the Company. During the six months ended August 4, 2017 , VMware, Inc. repurchased approximately 3.4 million shares of Class A common stock pursuant to the January 2017 Authorization and the March 2017 Stock Purchase Agreement. The proceeds from the sale were applied by the Company to the repurchase of shares of the Class V Common Stock under the March 2017 Class V Group Repurchase Program described above. On May 10, 2017, the sale transaction under the March 2017 Stock Purchase Agreement was completed . The total of 3.4 million shares repurchased by VMware, Inc. was based on the volume-weighted average per share price of the Class A common stock as reported on the New York Stock Exchange during a specified reference period, less a discount of 3.5% from that volume-weighted average per share price. As of August 4, 2017 , the cumulative authorized amount remaining for share repurchases by VMware, Inc. under the January 2017 Authorization was $900 million . For more information regarding common stock repurchase programs, see Note 21 of the Notes to the Condensed Consolidated Financial Statements . |
REDEEMABLE SHARES
REDEEMABLE SHARES | 6 Months Ended |
Aug. 04, 2017 | |
Temporary Equity Disclosure [Abstract] | |
REDEEMABLE SHARES | REDEEMABLE SHARES Awards under the Company's stock incentive plans include certain rights that allow the holder to exercise a put feature for the underlying Class A or Class C Common Stock after a six -month holding period following the issuance of such common stock that requires the Company to purchase the stock at its fair market value. Accordingly, these awards and common stock are subject to reclassification from equity to temporary equity, and the Company determines the award amounts to be classified as temporary equity as follows: • For stock options to purchase Class C Common Stock 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 Class C Common Stock. • For stock appreciation rights, restricted stock units ("RSUs"), or shares of restricted common stock ("RSAs"), any of which stock award types are subject to service requirements, the fair value of the share is multiplied by the portion of the shares 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 August 4, 2017 was $333 million , which consisted of 2.0 million issued and outstanding unrestricted common shares, 0.9 million RSUs, 0.3 million RSAs, and 14.8 million outstanding stock options. The amount of redeemable shares classified as temporary equity as of February 3, 2017 was $231 million , which consisted of 1.1 million issued and outstanding unrestricted common shares, 0.4 million RSUs, 0.1 million RSAs, and 13.7 million outstanding stock options. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 6 Months Ended |
Aug. 04, 2017 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION The Company has three reportable segments that are based on the following business units: Client Solutions Group ("CSG"); Infrastructure Solutions Group ("ISG"); and VMware. CSG includes sales to commercial and consumer customers of desktops, thin client products, and notebooks, as well as services and third-party software and peripherals closely tied to the sale of CSG hardware. ISG includes servers, networking, and storage, as well as services and third-party software and peripherals that are closely tied to the sale of ISG hardware. VMware includes a broad portfolio of virtualization technologies across three main product groups: software-defined data center; hybrid cloud computing; and end-user computing. 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 other businesses, purchase accounting, amortization of intangible assets, unallocated corporate transactions, severance and facility action costs, and transaction-related expenses. 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 to the Company's consolidated operating loss: Three Months Ended Six Months Ended August 4, 2017 July 29, 2016 August 4, 2017 July 29, 2016 (in millions) Consolidated net revenue: Client Solutions Group $ 9,851 $ 9,220 $ 18,907 $ 17,791 Infrastructure Solutions Group 7,406 3,779 14,322 7,392 VMware 1,907 — 3,643 — Reportable segment net revenue 19,164 12,999 36,872 25,183 Other businesses (a) 472 118 934 228 Unallocated transactions (b) (2 ) 28 (1 ) 53 Impact of purchase accounting (c) (335 ) (65 ) (690 ) (143 ) Total net revenue $ 19,299 $ 13,080 $ 37,115 $ 25,321 Consolidated operating income (loss): Client Solutions Group $ 566 $ 484 $ 940 $ 869 Infrastructure Solutions Group 430 300 753 492 VMware 561 — 1,047 — Reportable segment operating income 1,557 784 2,740 1,361 Other businesses (a) 1 (11 ) 4 (27 ) Unallocated transactions (b) (6 ) (17 ) 5 (39 ) Impact of purchase accounting (c) (406 ) (98 ) (829 ) (204 ) Amortization of intangibles (1,740 ) (491 ) (3,516 ) (982 ) Transaction-related expenses (d) (138 ) (72 ) (329 ) (129 ) Other corporate expenses (e) (247 ) (28 ) (554 ) (52 ) Total operating income (loss) $ (979 ) $ 67 $ (2,479 ) $ (72 ) _________________ (a) Other businesses consist of RSA Information Security, SecureWorks, Pivotal, and Boomi, and do not constitute a reportable segment, either individually or collectively, as the results of the businesses are not material to the Company's overall results and the businesses do not meet the criteria for reportable segments. (b) Unallocated transactions includes long-term incentives, certain short-term incentive compensation expenses, and other corporate items that are not allocated to Dell Technologies' reportable segments. (c) Impact of purchase accounting includes non-cash purchase accounting adjustments that are primarily related to the EMC merger transaction. (d) Transaction-related expenses includes acquisition, integration, and divestiture related costs. (e) Other corporate expenses includes severance and facility action costs as well as stock-based compensation expense. The following table presents net revenue by business unit categories: Three Months Ended Six Months Ended August 4, 2017 July 29, 2016 August 4, 2017 July 29, 2016 (in millions) Net revenue: Client Solutions Group: Commercial $ 7,196 $ 6,798 $ 13,546 $ 12,943 Consumer 2,655 2,422 5,361 4,848 Total CSG net revenue 9,851 9,220 18,907 17,791 Infrastructure Solutions Group: Servers and networking 3,740 3,237 6,971 6,312 Storage 3,666 542 7,351 1,080 Total ISG net revenue 7,406 3,779 14,322 7,392 VMware Total VMware net revenue 1,907 — 3,643 — Total segment net revenue $ 19,164 $ 12,999 $ 36,872 $ 25,183 |
SUPPLEMENTAL CONSOLIDATED FINAN
SUPPLEMENTAL CONSOLIDATED FINANCIAL INFORMATION | 6 Months Ended |
Aug. 04, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
SUPPLEMENTAL CONSOLIDATED FINANCIAL INFORMATION | SUPPLEMENTAL CONSOLIDATED FINANCIAL INFORMATION The following table provides additional information on selected accounts included in the Condensed Consolidated Statements of Financial Position as of August 4, 2017 and February 3, 2017 : August 4, 2017 February 3, 2017 (in millions) Inventories, net: Production materials $ 926 $ 925 Work-in-process 538 503 Finished goods 1,130 1,110 Total inventories, net 2,594 2,538 Other non-current liabilities: Warranty liability 176 199 Deferred and other tax liabilities 7,124 8,607 Other 547 533 Total other non-current liabilities $ 7,847 $ 9,339 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Aug. 04, 2017 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS Amendment of Class V Common Stock Repurchase Program — On August 18, 2017, the Company's board of directors approved a second amendment of the Class V Group Repurchase Program (as so amended, the “August 2017 Class V Group Repurchase Program”) further extending the program to authorize the Company to use assets of the Company’s Class V Group to repurchase up to an additional $300 million of shares of the Company’s Class V Common Stock. The repurchase of shares pursuant to the August 2017 Class V Group Repurchase Program is expected to be funded from proceeds received by the VMware, Inc. Class A Common Stock Repurchase program described below. VMware, Inc. Class A Common Stock Repurchase — In August 2017, VMware, Inc.'s board of directors authorized the repurchase of up to an additional $1 billion of VMware, Inc. Class A common stock through August 31, 2018. The authorization is in addition to VMware, Inc.’s ongoing $1.2 billion stock repurchase program, originally announced in January 2017, of which $0.9 billion remains available. On August 23, 2017, the Company and VMware, Inc. entered into a purchase commitment supplement to the March 2017 Stock Purchase Agreement (as amended, the “August 2017 Stock Purchase Agreement”). Under the August 2017 Stock Purchase Agreement, VMware, Inc. will purchase for cash $300 million of VMware, Inc. Class A common stock from EMC Equity Assets LLC, an indirect wholly-owned subsidiary of the Company. The Company will apply the proceeds from the sale to the repurchase of shares of its Class V Common Stock under the August 2017 Class V Group Repurchase Program described above, but may use such proceeds for other purposes at the discretion of the Capital Stock Committee of the board of directors and the board of directors. The total number of shares to be purchased by VMware, Inc. under the August 2017 Stock Purchase Agreement will be based on the volume-weighted average per share price of the VMware, Inc. Class A common stock as reported on the New York Stock Exchange during a specified reference period, less a discount of 3.5% from that volume-weighted average per share price, and subject to adjustment in certain circumstances. VMware, Inc. Public Debt Offering — On August 21, 2017, VMware, Inc. completed a public debt offering in the aggregate amount of $4.0 billion , consisting of outstanding principal due on the following dates: $1.25 billion due August 21, 2020, $1.5 billion due August 21, 2022, and $1.25 billion due August 21, 2027. The notes bear interest, payable semi-annually, at annual rates of 2.30% , 2.95% , and 3.90% , respectively. Upon closing, a portion of the net proceeds from the offering was used to repay certain intercompany promissory notes previously issued to EMC in the aggregate principal amount of $1.2 billion . VMware Note Bridge Facility Repayment — Subsequent to August 4, 2017, the Company repaid the $1.5 billion VMware Note Bridge Facility in full with proceeds of $1.2 billion from the foregoing VMware public debt offering and other cash. Other than the matters identified 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. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 6 Months Ended |
Aug. 04, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The accompanying unaudited Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and accompanying Notes filed with the U.S. Securities and Exchange Commission ("SEC") in the Company's Annual Report on Form 10-K for the fiscal year ended February 3, 2017 . These Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). In the opinion of management, the accompanying Condensed Consolidated Financial Statements reflect all adjustments of a normal recurring nature considered necessary to fairly state the financial position of Dell Technologies Inc. (individually and together with its consolidated subsidiaries, the "Company" or "Dell Technologies") as of August 4, 2017 and February 3, 2017 , the results of its operations and corresponding comprehensive income (loss) for the three and six months ended August 4, 2017 and July 29, 2016 , as well as its cash flows for the six months ended August 4, 2017 and July 29, 2016 . The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in the Condensed Consolidated Financial Statements and the accompanying Notes. Actual results could differ materially from those estimates. The results of operations and comprehensive income (loss) for the three and six months ended August 4, 2017 and July 29, 2016 and cash flows for the six months ended August 4, 2017 and July 29, 2016 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 ended February 3, 2017 (" Fiscal 2017 ") was a 53-week period while the fiscal year ending February 2, 2018 (" Fiscal 2018 ") will be a 52-week period. |
Consolidation of Subsidiaries | As a result of the EMC merger transaction completed on September 7, 2016, the Company's results of operations, comprehensive income (loss), and cash flows for the fiscal periods reflected in these Condensed Consolidated Financial Statements are not directly comparable. The results of the businesses acquired in the EMC merger transaction are included in the consolidated results of Dell Technologies for the three and six months ended August 4, 2017 , but are not included in the consolidated results of Dell Technologies for the three and six months ended July 29, 2016 . The Dell Technologies unaudited Condensed Consolidated Statements of Financial Position reflect the full consolidation of EMC's assets and liabilities as of both August 4, 2017 and February 3, 2017 . |
Reclassifications | The amounts presented for the three and six months ended July 29, 2016 are different from those previously reported on Form 10-Q for the quarterly period ended July 29, 2016 because the Company reclassified an immaterial amount of net income from discontinued operations to continuing operations to reflect the updated terms of the applicable divestitures referred to above as the result of continued negotiations and finalization of terms of the sale. |
Recently Issued and Recently Adopted Accounting Pronouncements | Recently Issued Accounting Pronouncements Revenue from Contracts with Customers — In May 2014, the Financial Accounting Standards Board (the "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 substantially all 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. The new standard also provides guidance on the accounting for costs to fulfill or obtain a customer contract. Further, the new standard requires additional disclosures to help enable users of the financial statements to better understand the nature, amount, timing, risks, and judgments related to revenue recognition and related cash flows from contracts with customers. 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 fiscal years, beginning after December 15, 2017. The new revenue standard may be applied retrospectively to each prior period presented (full retrospective method) or retrospectively with the cumulative effect of initially applying the standard recognized at the date of initial application in retained earnings (modified retrospective method). The Company currently expects to adopt this standard retrospectively to each prior period presented for the fiscal year beginning February 3, 2018. While the Company is currently evaluating the financial and system impacts that the new standard will have on the Consolidated Financial Statements, the Company expects that unearned license revenue related to the sale of software licenses and related deliverables will decline upon adoption. Currently, the Company defers revenue for certain software arrangements due to the absence of vendor specific objective evidence ("VSOE") of fair value for all or a portion of the deliverables. Under the new standard, the Company will no longer be required to establish VSOE of fair value in order to account for elements in an arrangement as separate units of accounting, and will be able to record revenue upon satisfaction of each performance obligation. Additionally, the Company expects the new standard to have an impact on the way the transaction price is allocated for certain non-standard warranties. The new standard is expected to result in more of the aggregate transaction price related to the non-standard warranty being recorded as revenue upon delivery of the underlying product, because the Company will no longer defer revenue based on the separately stated price of the non-standard warranty provided under the contract. The Company continues to make progress in assessing the impacts of the standard on the Consolidated Financial Statements and will continue to evaluate the impact of any changes to the standard or interpretations should they become available. Recognition and Measurement of Financial Assets and Financial Liabilities — In January 2016, the FASB issued amended guidance that 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 fiscal years, beginning after December 15, 2017. The amended guidance requires changes in the fair value of equity investments to be recognized through net income, rather than other comprehensive income. Adoption of the standard will be applied through a cumulative one-time adjustment to retained earnings. For the Company’s equity investments without readily determinable fair values, the Company expects to elect the measurement alternative to record those investments at cost, less impairment, and adjusted by observable price changes on a prospective basis. The impact of the standard on the Consolidated Statements of Income (Loss) will depend on the relative changes in market price of the equity investments, although the impact is currently expected to be immaterial. 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. Measurement of Credit Losses on Financial Instruments — In June 2016, the FASB issued amended guidance which replaces the current incurred loss impairment methodology for measurement of credit losses on financial instruments 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, and interim periods within those fiscal years, with early adoption permitted for fiscal periods beginning after December 15, 2018. The Company is currently evaluating the impact that the standard will have on the Consolidated Financial Statements. Classification of Certain Cash Receipts and Cash Payments — In August 2016, the FASB issued amended guidance on the presentation and classification of eight specific cash flow issues with the objective of reducing existing diversity in practice. Public entities must adopt the new guidance for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, with early adoption permitted. Companies should reflect any adjustments on a retrospective basis, if practicable; otherwise, adoption is required to be applied as of the earliest date practicable. The Company will adopt this standard during the fiscal quarter ending May 4, 2018, and will apply adjustments retrospectively to each prior period presented on the Condensed Consolidated Statements of Cash Flows for that period. The Company is currently evaluating the impact of the standard, and other than certain reclassifications on the Consolidated Statements of Cash Flows, it is not expected to have a material impact on the Consolidated Financial Statements. Simplifying the Test for Goodwill Impairment — In January 2017, the FASB issued amended guidance to simplify the subsequent measurement of goodwill by removing Step 2 of the goodwill impairment test. Instead, under the amendments in the new guidance, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value. Public entities must adopt the new guidance in fiscal years beginning after December 15, 2019, with early adoption permitted. The Company is currently evaluating the impact of the new guidance, but does not expect that the standard will have an impact on its Consolidated Financial Statements. Derivatives and Hedging — In August 2017, the FASB issued amended guidance that will make more financial and non-financial hedging strategies eligible for hedge accounting. The amended guidance changes how companies assess effectiveness, and also amends the presentation and disclosure requirements. The guidance is intended to simplify the application of hedge accounting and increase transparency as to the scope and results of hedging programs. Immediate early adoption is permitted in any interim or annual period. The mandatory effective date for calendar year-end public companies is January 1, 2019. The Company is currently evaluating the impact that the new guidance will have on the Consolidated Financial Statements. Recently Adopted Accounting Pronouncements Improvements to Employee Share-Based Payment Accounting — In March 2016, the FASB issued amended guidance on the accounting for employee share-based payments, including the accounting for income taxes and forfeitures, classification of awards as either equity or liabilities, and classification of cash flows. The Company adopted this guidance at the beginning of Fiscal 2018. In accordance with the new guidance, excess tax benefits or deficiencies for stock-based compensation are now reflected as a component of the provision for income taxes on the Consolidated Statements of Income (Loss), whereas they were previously recorded as additional paid-in capital. The Company has elected to continue to estimate expected forfeitures. Additionally, the Company now presents excess tax benefits as an operating activity rather than a financing activity on the Consolidated Statements of Cash Flows, while the cash flows related to employee taxes paid for withheld shares are presented as a financing activity with prior periods adjusted accordingly. The adoption of the amended guidance did not have a material impact on the Consolidated Financial Statements. The prospective impact of the new standard will depend on the Company's stock price at the vesting or exercise dates of the awards and the number of awards that vest or are exercised in each period, but the Company does not expect the impact to be material in future periods. Intra-Entity Transfers of Assets Other Than Inventory — In October 2016, the FASB issued amended guidance on the accounting for income taxes. The new guidance requires companies to recognize the income tax effects of intra-entity asset transfers, other than transfers of inventory, when the transfer occurs instead of when the asset is sold to a third party. The new guidance should be applied on a modified-retrospective basis with the cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. The Company early adopted this guidance at the beginning of Fiscal 2018. At adoption, approximately $84 million was reclassified from other non-current liabilities to retained earnings, resulting in a net credit to retained earnings. |
Money Market Funds and Cash Equivalent Municipal Obligations | Money Market Funds — The Company's investment in money market funds that are classified as cash equivalents hold underlying investments with a weighted average maturity of 90 days or less and are recognized at fair value. The valuations of these securities are based on quoted prices in active markets for identical assets, when available, or pricing models whereby all significant inputs are observable or can be derived from or corroborated by observable market data. The Company reviews security pricing and assesses liquidity on a quarterly basis. As of August 4, 2017 , the Company's U.S. portfolio had no material exposure to money market funds with a fluctuating net asset value. |
Debt, Equity and Other Securities | Equity and Other Securities — The majority of the Company's investments in equity and other securities that are measured at fair value on a recurring basis consist of strategic investments in publicly traded companies. The valuation of these securities is based on quoted prices in active markets. Debt Securities — The majority of the Company's debt securities consist of various fixed income securities such as U.S. government and agencies, U.S. corporate, and foreign. Valuation is based on pricing models whereby all significant inputs, including benchmark yields, reported trades, broker-dealer quotes, issue spreads, benchmark securities, bids, offers, and other market related data, are observable or can be derived from or corroborated by observable market data for substantially the full term of the asset. Inputs are documented in accordance with the fair value measurements hierarchy. The Company reviews security pricing and assesses liquidity on a quarterly basis. |
Derivative Instruments | Derivative Instruments — The Company's derivative financial instruments consist primarily of foreign currency forward and purchased option contracts and interest rate swaps. The fair value of the portfolio is determined using valuation models based on market observable inputs, including interest rate curves, forward and spot prices for currencies, and implied volatilities. Credit risk is also factored into the fair value calculation of the Company's derivative instrument portfolio. Derivative Instruments As part of its risk management strategy, the Company uses derivative instruments, primarily foreign currency forward and option contracts and interest rate swaps, to hedge certain foreign currency and interest rate exposures, respectively. The Company's objective is to offset gains and losses resulting from these exposures with gains and losses on the derivative contracts used to hedge the exposures, thereby reducing volatility of earnings and protecting the fair values of assets and liabilities. 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. |
Warranty Liability | The Company record s a liability for its standard limited warranties at the time of sale for the estimated costs that may be incurred. |
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. 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 a 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. |
BUSINESS COMBINATIONS (Tables)
BUSINESS COMBINATIONS (Tables) | 6 Months Ended |
Aug. 04, 2017 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes, as of August 4, 2017 , the preliminary purchase price allocation to the assets acquired and the liabilities assumed in the EMC merger transaction (in millions): Current assets: Cash and cash equivalents $ 10,080 Short-term investments 1,765 Accounts receivable 2,810 Short-term financing receivables 64 Inventories, net 1,993 Other current assets 903 Total current assets 17,615 Property, plant, and equipment 4,490 Long-term investments 4,317 Long-term financing receivables, net 65 Goodwill 31,539 Purchased intangibles 31,218 Other non-current assets 445 Total assets $ 89,689 Current liabilities: Short-term debt $ 905 Accounts payable 728 Accrued and other 3,259 Short-term deferred revenue 4,954 Total current liabilities 9,846 Long-term debt 5,474 Long-term deferred revenue 3,469 Deferred tax liabilities 6,625 Other non-current liabilities 324 Total liabilities 25,738 Total net assets $ 63,951 |
Business Acquisition, Pro Forma Information | The following table provides unaudited pro forma results of operations for the periods presented as if the transaction date had occurred on January 31, 2015, the first day of the fiscal year ended January 29, 2016. Three Months Ended Six Months Ended July 29, 2016 July 29, 2016 (in millions, except per share amounts) Total net revenue $ 18,562 $ 35,767 Net loss attributable to Dell Technologies Inc. $ (1,158 ) $ (2,542 ) Earnings (loss) per share attributable to Dell Technologies Inc. - basic (a): Continuing operations - Class V Common Stock $ 0.66 $ 1.05 Continuing operations - DHI Group $ (2.28 ) $ (4.87 ) Earnings (loss) per share attributable to Dell Technologies Inc. - diluted (a): Continuing operations - Class V Common Stock $ 0.66 $ 1.05 Continuing operations - DHI Group $ (2.28 ) $ (4.87 ) ____________________ (a) For purposes of calculating pro forma earnings (loss) per share, the Company used the two-class method. Earnings are allocated between the Class V Common Stock and the DHI Group on a basis consistent with historical earnings (loss) per share. |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 6 Months Ended |
Aug. 04, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued operations | The following table presents key financial results of Dell Services and DSG included in "Income from discontinued operations, net of income taxes" for the three and six months ended July 29, 2016 : Three Months Ended July 29, 2016 Six Months Ended July 29, 2016 Dell Services (b) DSG Total Dell Services (b) DSG Total (in millions) Net revenue $ 664 $ 321 $ 985 $ 1,310 $ 642 $ 1,952 Cost of net revenue 513 85 598 1,032 175 1,207 Operating expenses 95 239 334 206 488 694 Interest and other, net — (7 ) (7 ) — 7 7 Income (loss) from discontinued operations before income taxes 56 (10 ) 46 72 (14 ) 58 Income tax benefit (a) (455 ) (333 ) (788 ) (918 ) (337 ) (1,255 ) Income from discontinued operations, net of income taxes $ 511 $ 323 $ 834 $ 990 $ 323 $ 1,313 ____________________ (a) The tax benefit for Dell Services and DSG for the three and six months ended July 29, 2016 was primarily due to the Company's determination that it could no longer assert permanent reinvestment in the outside basis of the entities that would be divested. (b) See Note 1 of the Notes to the Condensed Consolidated Financial Statements for additional information on reclassifications from previously reported amounts. The significant cash flow items from Dell Services and DSG for the six months ended July 29, 2016 were as follows: Six Months Ended July 29, 2016 Dell Services DSG Total (in millions) Depreciation and amortization (a) $ 32 $ 66 $ 98 Capital expenditures $ 47 $ 15 $ 62 ____________________ (a) Depreciation and amortization ceased upon determination that Dell Services and DSG had met the criteria for discontinued operations reporting as of March 27, 2016 and June 19, 2016, respectively. |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Aug. 04, 2017 | |
Fair Value Disclosures [Abstract] | |
Hierarchy for Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following table presents the Company's hierarchy for its assets and liabilities measured at fair value on a recurring basis as of August 4, 2017 and February 3, 2017 : August 4, 2017 (a) February 3, 2017 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Quoted Significant Significant Quoted Significant Significant (in millions) Assets: Cash and cash equivalents: Money market funds $ 4,853 $ — $ — $ 4,853 $ 4,866 $ — $ — $ 4,866 Municipal obligations — — — — — 3 — 3 U.S. and foreign corporate debt securities — 183 — 183 — — — — U.S. government and agencies — 45 — 45 — — — — Foreign government and agencies — 3 — 3 — — — — Debt securities: U.S. government and agencies 658 412 — 1,070 444 470 — 914 U.S. corporate — 1,893 — 1,893 — 1,800 — 1,800 Foreign — 2,332 — 2,332 — 2,083 — 2,083 Municipal obligations — — — — — 352 — 352 Asset-backed securities — — — — — 4 — 4 Equity and other securities 224 2 — 226 169 — — 169 Derivative instruments — 125 — 125 — 205 — 205 Total assets $ 5,735 $ 4,995 $ — $ 10,730 $ 5,479 $ 4,917 $ — $ 10,396 Liabilities: Derivative instruments $ — $ 180 $ — $ 180 $ — $ 64 $ — $ 64 Total liabilities $ — $ 180 $ — $ 180 $ — $ 64 $ — $ 64 ____________________ (a) The Company did not transfer any securities between levels during the six months ended August 4, 2017 . |
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 7 of the Notes to the Condensed Consolidated Financial Statements , including the current portion, as of the dates indicated: August 4, 2017 February 3, 2017 Carrying Value Fair Value Carrying Value Fair Value (in billions) Senior Secured Credit Facilities $ 10.9 $ 11.2 $ 11.4 $ 11.7 First Lien Notes $ 19.7 $ 22.3 $ 19.7 $ 21.8 Unsecured Notes and Debentures $ 2.3 $ 2.5 $ 2.3 $ 2.5 Senior Notes $ 3.1 $ 3.5 $ 3.1 $ 3.5 EMC Notes $ 5.5 $ 5.3 $ 5.5 $ 5.4 Margin Loan Facility $ 2.0 $ 2.0 $ — $ — Bridge Facilities $ 1.5 $ 1.5 $ 4.0 $ 4.0 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 6 Months Ended |
Aug. 04, 2017 | |
Investments [Abstract] | |
Schedule of Investments by Major Security Type, the Carrying Value and Amortized Cost | The following table summarizes, by major security type, the carrying value and amortized cost of the Company's investments. All debt security investments with remaining effective maturities in excess of one year and substantially all equity and other securities are recorded as long-term investments in the Condensed Consolidated Statements of Financial Position. August 4, 2017 February 3, 2017 Cost Unrealized Gain Unrealized (Loss) Carrying Value Cost Unrealized Gain Unrealized (Loss) Carrying Value (in millions) Investments: U.S. government and agencies $ 441 $ — $ — $ 441 $ 231 $ — $ — $ 231 U.S. corporate debt securities 670 — (1 ) 669 651 — (1 ) 650 Foreign debt securities 906 — (1 ) 905 743 — (1 ) 742 Municipal obligations — — — — 348 — — 348 Asset-backed securities — — — — 4 — — 4 Total short-term investments 2,017 — (2 ) 2,015 1,977 — (2 ) 1,975 U.S. government and agencies 632 — (3 ) 629 689 — (6 ) 683 U.S. corporate debt securities 1,227 2 (5 ) 1,224 1,164 — (14 ) 1,150 Foreign debt securities 1,430 2 (5 ) 1,427 1,356 — (15 ) 1,341 Municipal obligations — — — — 4 — — 4 Equity and other securities (a) 667 75 — 742 604 22 (2 ) 624 Total long-term investments 3,956 79 (13 ) 4,022 3,817 22 (37 ) 3,802 Total investments $ 5,973 $ 79 $ (15 ) $ 6,037 $ 5,794 $ 22 $ (39 ) $ 5,777 ____________________ (a) The majority of equity and other securities are strategic investments accounted for under the cost method, while the remainder are investments that are measured at fair value on a recurring basis. See Note 4 of the Notes to the Condensed Consolidated Financial Statements for additional information on investments measured at fair value on a recurring basis. |
Schedule of Investments Classified by Contractual Maturities of Debt Securities Held | The maturities of debt securities held at August 4, 2017 are as follows: Amortized Cost Carrying Value (in millions) Due within one year $ 2,017 $ 2,015 Due after 1 year through 5 years 3,219 3,209 Due after 5 years through 10 years 70 71 Total $ 5,306 $ 5,295 |
FINANCIAL SERVICES (Tables)
FINANCIAL SERVICES (Tables) | 6 Months Ended |
Aug. 04, 2017 | |
Receivables [Abstract] | |
Schedule of Components of the Company's Financing Receivables Segregated by Portfolio Segment | The following table summarizes the components of the Company's financing receivables segregated by portfolio segment as of August 4, 2017 and February 3, 2017 : August 4, 2017 February 3, 2017 Revolving Fixed-term Total Revolving Fixed-term Total (in millions) Financing receivables, net: Customer receivables, gross $ 899 $ 5,385 $ 6,284 $ 1,009 $ 4,530 $ 5,539 Allowances for losses (81 ) (54 ) (135 ) (91 ) (52 ) (143 ) Customer receivables, net 818 5,331 6,149 918 4,478 5,396 Residual interest — 523 523 — 477 477 Financing receivables, net $ 818 $ 5,854 $ 6,672 $ 918 $ 4,955 $ 5,873 Short-term $ 818 $ 2,655 $ 3,473 $ 918 $ 2,304 $ 3,222 Long-term $ — $ 3,199 $ 3,199 $ — $ 2,651 $ 2,651 |
Schedule of Changes in the Allowance for Financing Receivable Losses | The following tables summarize the changes in the allowance for financing receivable losses for the respective periods: Three Months Ended August 4, 2017 July 29, 2016 Revolving Fixed-term Total Revolving Fixed-term Total (in millions) Allowance for financing receivable losses: Balances at beginning of period $ 85 $ 51 $ 136 $ 107 $ 58 $ 165 Charge-offs, net of recoveries (20 ) (5 ) (25 ) (23 ) (2 ) (25 ) Provision charged to income statement 16 8 24 16 — 16 Balances at end of period $ 81 $ 54 $ 135 $ 100 $ 56 $ 156 Six Months Ended August 4, 2017 July 29, 2016 Revolving Fixed-term Total Revolving Fixed-term Total (in millions) Allowance for financing receivable losses: Balances at beginning of period $ 91 $ 52 $ 143 $ 118 $ 58 $ 176 Charge-offs, net of recoveries (42 ) (8 ) (50 ) (48 ) (5 ) (53 ) Provision charged to income statement 32 10 42 30 3 33 Balances at end of period $ 81 $ 54 $ 135 $ 100 $ 56 $ 156 |
Aging 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 August 4, 2017 and February 3, 2017 , segregated by class: August 4, 2017 February 3, 2017 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 $ 639 $ 58 $ 23 $ 720 $ 715 $ 66 $ 27 $ 808 Revolving — DBC 154 20 5 179 175 22 4 201 Fixed-term — Consumer and Commercial 4,539 787 59 5,385 3,994 506 30 4,530 Total customer receivables, gross $ 5,332 $ 865 $ 87 $ 6,284 $ 4,884 $ 594 $ 61 $ 5,539 |
Credit Quality Indicators | The following table summarizes customer receivables, gross, including accrued interest, by credit quality indicator segregated by class, as of August 4, 2017 and February 3, 2017 . 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. August 4, 2017 February 3, 2017 Higher Mid Lower Total Higher Mid Lower Total (in millions) Revolving — DPA $ 132 $ 220 $ 368 $ 720 $ 136 $ 244 $ 428 $ 808 Revolving — DBC $ 46 $ 56 $ 77 $ 179 $ 61 $ 60 $ 80 $ 201 Fixed-term — Consumer and Commercial (a) $ 2,770 $ 1,668 $ 947 $ 5,385 $ 2,232 $ 1,428 $ 870 $ 4,530 ____________________ (a) During the three months ended May 5, 2017, the Company modified its credit scoring methodology for fixed-term financing receivables in response to changes in its go-to-market strategy. This methodology has been modified to a single, consistent, and comparable model across all fixed-term product customers. In connection with this change, the Company has recategorized existing fixed-term customers and has recast prior period credit quality categories to align with the current period presentation. |
Schedule of Financing Receivables Held by the Consolidated VIEs | The following table shows financing receivables held by the consolidated VIEs as of the respective dates: August 4, 2017 February 3, 2017 (in millions) Financing receivables held by consolidated VIEs, net: Short-term, net $ 2,440 $ 2,227 Long-term, net 1,790 1,381 Financing receivables held by consolidated VIEs, net $ 4,230 $ 3,608 |
DEBT (Tables)
DEBT (Tables) | 6 Months Ended |
Aug. 04, 2017 | |
Debt Disclosure [Abstract] | |
Outstanding debt | The following table summarizes the Company's outstanding debt as of the dates indicated: August 4, 2017 February 3, 2017 (in millions) Secured Debt Structured financing debt $ 4,050 $ 3,464 Senior Secured Credit Facilities: 3.74% Term Loan B Facility due September 2023 5,460 4,987 3.24% Term Loan A-1 Facility due December 2018 69 600 3.49% Term Loan A-2 Facility due September 2021 3,778 3,876 3.24% Term Loan A-3 Facility due December 2018 1,800 1,800 2.78% Revolving Credit Facility due September 2021 — 375 First Lien Notes: 3.48% due June 2019 3,750 3,750 4.42% due June 2021 4,500 4,500 5.45% due June 2023 3,750 3,750 6.02% due June 2026 4,500 4,500 8.10% due June 2036 1,500 1,500 8.35% due June 2046 2,000 2,000 Unsecured Debt Unsecured Notes and Debentures: 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 Senior Notes: 5.875% due June 2021 1,625 1,625 7.125% due June 2024 1,625 1,625 EMC Notes: 1.875% due June 2018 2,500 2,500 2.650% due June 2020 2,000 2,000 3.375% due June 2023 1,000 1,000 Other 3.56% Margin Loan Facility due April 2022 2,000 — 2.53% Margin Bridge Facility due September 2017 — 2,500 2.99% VMware Note Bridge Facility due September 2017 1,500 1,500 Other 86 51 Total debt, principal amount $ 49,946 $ 50,356 Unamortized discount, net of unamortized premium (281 ) (284 ) Debt issuance costs (605 ) (682 ) Total debt, carrying value $ 49,060 $ 49,390 Total short-term debt, carrying value $ 7,686 $ 6,329 Total long-term debt, carrying value $ 41,374 $ 43,061 |
Aggregate future maturities | As of August 4, 2017 , aggregate future maturities of the Company's debt were as follows: Maturities by Fiscal Year 2018 (remaining six months) 2019 2020 2021 2022 Thereafter Total (in millions) Structured Financing Debt $ 1,653 $ 1,827 $ 422 $ 117 $ 30 $ 1 $ 4,050 Senior Secured Credit Facilities and First Lien Notes 125 2,169 4,198 336 7,302 16,977 31,107 Unsecured Notes and Debentures — 500 600 — 400 953 2,453 Senior Notes and EMC Notes — 2,500 — 2,000 1,625 2,625 8,750 Margin Loan Facility — — — — — 2,000 2,000 Bridge Facility 1,500 — — — — 1,500 Other 18 10 5 27 — 26 86 Total maturities, principal amount 3,296 7,006 5,225 2,480 9,357 22,582 49,946 Associated carrying value adjustments (3 ) (29 ) (45 ) (1 ) (217 ) (591 ) (886 ) Total maturities, carrying value amount $ 3,293 $ 6,977 $ 5,180 $ 2,479 $ 9,140 $ 21,991 $ 49,060 |
DERIVATIVE INSTRUMENTS AND HE37
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 6 Months Ended |
Aug. 04, 2017 | |
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: August 4, 2017 February 3, 2017 (a) (in millions) Foreign exchange contracts: Designated as cash flow hedging instruments $ 4,181 $ 3,781 Non-designated as hedging instruments 6,601 5,146 Total $ 10,782 $ 8,927 Interest rate contracts: Non-designated as hedging instruments $ 1,519 $ 1,251 ____________________ (a) During the three months ended May 5, 2017, the notional amount calculation methodology was enhanced to reflect the sum of the absolute value of derivative instruments netted by currency. Prior period amounts have been updated to conform with the current period presentation. |
Effect of Derivative Instruments on the Condensed Consolidated Statements of Financial Position and the Condensed Consolidated Statements of Income (Loss) | Effect of Derivative Instruments on the Condensed Consolidated Statements of Financial Position and the Condensed Consolidated Statements of Income (Loss) Derivatives in Gain (Loss) Location of Gain (Loss) Gain (Loss) 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 August 4, 2017 Total net revenue $ (49 ) Foreign exchange contracts $ (141 ) Total cost of net revenue (21 ) Interest rate contracts — Interest and other, net — Interest and other, net $ — Total $ (141 ) $ (70 ) $ — 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 six months ended August 4, 2017 Total net revenue $ (32 ) Foreign exchange contracts $ (157 ) Total cost of net revenue (17 ) Interest rate contracts — Interest and other, net — Interest and other, net $ — Total $ (157 ) $ (49 ) $ — 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 ) |
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: August 4, 2017 Other Current Other Non- Other Current Other Non-Current Total (in millions) Derivatives designated as hedging instruments: Foreign exchange contracts in an asset position $ 19 $ — $ 23 $ — $ 42 Foreign exchange contracts in a liability position (23 ) — (57 ) — (80 ) Net asset (liability) (4 ) — (34 ) — (38 ) Derivatives not designated as hedging instruments: Foreign exchange contracts in an asset position 179 2 68 — 249 Foreign exchange contracts in a liability position (59 ) — (214 ) — (273 ) Interest rate contracts in an asset position — 7 — — 7 Interest rate contracts in a liability position — — — — — Net asset (liability) 120 9 (146 ) — (17 ) Total derivatives at fair value $ 116 $ 9 $ (180 ) $ — $ (55 ) February 3, 2017 Other Current Other Non- Other Current Other Non-Current Total (in millions) Derivatives designated as hedging instruments: Foreign exchange contracts in an asset position $ 41 $ — $ 17 $ — $ 58 Foreign exchange contracts in a liability position (19 ) — (6 ) — (25 ) Net asset (liability) 22 — 11 — 33 Derivatives not designated as hedging instruments: Foreign exchange contracts in an asset position 309 2 31 — 342 Foreign exchange contracts in a liability position (131 ) — (103 ) — (234 ) Interest rate contracts in an asset position — 3 — — 3 Interest rate contracts in a liability position — — — (3 ) (3 ) Net asset (liability) 178 5 (72 ) (3 ) 108 Total derivatives at fair value $ 200 $ 5 $ (61 ) $ (3 ) $ 141 |
Fair Value of Derivative Instruments in the Condensed Consolidated Statements of Financial Position - Offsetting Assets | The following table presents the gross amounts of the Company's derivative instruments, amounts offset due to master netting agreements with the Company's counterparties, and the net amounts recognized in the Condensed Consolidated Statements of Financial Position. August 4, 2017 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 $ 298 $ (173 ) $ 125 $ — $ — $ 125 Financial liabilities (353 ) 173 (180 ) — — (180 ) Total derivative instruments $ (55 ) $ — $ (55 ) $ — $ — $ (55 ) February 3, 2017 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 $ 403 $ (198 ) $ 205 $ — $ — $ 205 Financial liabilities (262 ) 198 (64 ) — — (64 ) Total derivative instruments $ 141 $ — $ 141 $ — $ — $ 141 |
Fair Value of Derivative Instruments in the Condensed Consolidated Statements of Financial Position - Offsetting Liabilities | The following table presents the gross amounts of the Company's derivative instruments, amounts offset due to master netting agreements with the Company's counterparties, and the net amounts recognized in the Condensed Consolidated Statements of Financial Position. August 4, 2017 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 $ 298 $ (173 ) $ 125 $ — $ — $ 125 Financial liabilities (353 ) 173 (180 ) — — (180 ) Total derivative instruments $ (55 ) $ — $ (55 ) $ — $ — $ (55 ) February 3, 2017 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 $ 403 $ (198 ) $ 205 $ — $ — $ 205 Financial liabilities (262 ) 198 (64 ) — — (64 ) Total derivative instruments $ 141 $ — $ 141 $ — $ — $ 141 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 6 Months Ended |
Aug. 04, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Roll Forward of Goodwill Allocated to Business Segments | The following table presents goodwill allocated to the Company's business segments as of August 4, 2017 and February 3, 2017 , and changes in the carrying amount of goodwill for the respective periods: Client Solutions Group Infrastructure Solutions Group VMware Other Businesses (a) Total (in millions) Balances as of February 3, 2017 $ 4,237 $ 15,607 $ 15,070 $ 3,996 $ 38,910 Goodwill acquired during the period — — 238 9 247 Goodwill divested — (13 ) — — (13 ) Impact of foreign currency translation — 220 — 43 263 Balances as of August 4, 2017 $ 4,237 $ 15,814 $ 15,308 $ 4,048 $ 39,407 ____________________ (a) Other Businesses consists of offerings by RSA Information Security, SecureWorks, Pivotal, and Boomi. |
Schedule of Definite-lived Intangible Assets | The Company's intangible assets as of August 4, 2017 and February 3, 2017 were as follows: August 4, 2017 February 3, 2017 Gross Accumulated Amortization Net Gross Accumulated Amortization Net (in millions) Customer relationships $ 22,715 $ (7,095 ) $ 15,620 $ 22,708 $ (5,552 ) $ 17,156 Developed technology 15,494 (4,375 ) 11,119 14,569 (2,510 ) 12,059 Trade names 1,270 (308 ) 962 1,268 (201 ) 1,067 Leasehold assets (liabilities) 128 (4 ) 124 128 (1 ) 127 Definite-lived intangible assets 39,607 (11,782 ) 27,825 38,673 (8,264 ) 30,409 In-process research and development — — — 890 — 890 Indefinite-lived trade names 3,755 — 3,755 3,754 — 3,754 Total intangible assets $ 43,362 $ (11,782 ) $ 31,580 $ 43,317 $ (8,264 ) $ 35,053 |
Schedule of Indefinite-lived Intangible Assets | The Company's intangible assets as of August 4, 2017 and February 3, 2017 were as follows: August 4, 2017 February 3, 2017 Gross Accumulated Amortization Net Gross Accumulated Amortization Net (in millions) Customer relationships $ 22,715 $ (7,095 ) $ 15,620 $ 22,708 $ (5,552 ) $ 17,156 Developed technology 15,494 (4,375 ) 11,119 14,569 (2,510 ) 12,059 Trade names 1,270 (308 ) 962 1,268 (201 ) 1,067 Leasehold assets (liabilities) 128 (4 ) 124 128 (1 ) 127 Definite-lived intangible assets 39,607 (11,782 ) 27,825 38,673 (8,264 ) 30,409 In-process research and development — — — 890 — 890 Indefinite-lived trade names 3,755 — 3,755 3,754 — 3,754 Total intangible assets $ 43,362 $ (11,782 ) $ 31,580 $ 43,317 $ (8,264 ) $ 35,053 |
Schedule of Estimated Future Annual Pre-Tax Amortization Expense of Definite-Lived Intangible Assets | Estimated future annual pre-tax amortization expense of definite-lived intangible assets as of August 4, 2017 over the next five fiscal years and thereafter is as follows: Fiscal Years (in millions) 2018 (remaining six months) $ 3,463 2019 6,059 2020 4,274 2021 3,333 2022 2,616 Thereafter 8,080 Total $ 27,825 |
WARRANTY LIABILITY (Tables)
WARRANTY LIABILITY (Tables) | 6 Months Ended |
Aug. 04, 2017 | |
Product Warranties Disclosures [Abstract] | |
Changes in the Company's liabilities for standard limited warranties | Changes in the Company's liability for standard limited warranties are presented in the following table for the periods indicated. Three Months Ended Six Months Ended August 4, 2017 July 29, 2016 August 4, 2017 July 29, 2016 (in millions) Warranty liability: Warranty liability at beginning of period $ 607 $ 561 $ 604 $ 574 Costs accrued for new warranty contracts and changes in estimates for pre-existing warranties (a) (b) 223 182 463 382 Service obligations honored (242 ) (178 ) (479 ) (391 ) Warranty liability at end of period $ 588 $ 565 $ 588 $ 565 Current portion $ 412 $ 385 $ 412 $ 385 Non-current portion $ 176 $ 180 $ 176 $ 180 ____________________ (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. |
SEVERANCE CHARGES (Tables)
SEVERANCE CHARGES (Tables) | 6 Months Ended |
Aug. 04, 2017 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Activity Related to Severance Liability | The following table sets forth the activity related to the Company's severance liability for the respective periods: Three Months Ended Six Months Ended August 4, 2017 July 29, 2016 August 4, 2017 July 29, 2016 (in millions) Balance at beginning of period $ 257 $ 29 $ 416 $ 26 Severance charges to provision 14 9 44 26 Cash paid and other (85 ) (16 ) (274 ) (30 ) Balance at end of period $ 186 $ 22 $ 186 $ 22 |
Allocation of Severance Costs | Severance costs are included in cost of net revenue, selling, general, and administrative expenses, and research and development expense in the Condensed Consolidated Statements of Income (Loss) as follows: Three Months Ended Six Months Ended August 4, 2017 July 29, 2016 August 4, 2017 July 29, 2016 (in millions) Severance charges: Cost of net revenue $ (1 ) $ 1 $ 4 $ 5 Selling, general, and administrative 7 6 14 13 Research and development 8 2 26 8 Total $ 14 $ 9 $ 44 $ 26 |
ACCUMULATED OTHER COMPREHENSI41
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 6 Months Ended |
Aug. 04, 2017 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Loss, Net of Tax | 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 Investments Cash Flow Hedges Pension and Other Postretirement Plans Accumulated Other Comprehensive Loss (in millions) Balances as of February 3, 2017 $ (612 ) $ (13 ) $ 11 $ 19 $ (595 ) Other comprehensive income (loss) before reclassifications 450 47 (157 ) — 340 Amounts reclassified from accumulated other comprehensive loss — 3 49 — 52 Total change for the period 450 50 (108 ) — 392 Less: Change in comprehensive income attributable to non-controlling interests — 4 — — 4 Balances as of August 4, 2017 $ (162 ) $ 33 $ (97 ) $ 19 $ (207 ) |
Reclassifications Out of Accumulated Other Comprehensive Loss, Net of Tax, to Net Income (Loss) | The following tables present reclassifications out of accumulated other comprehensive loss, net of tax, to net income (loss) for the periods presented: Three Months Ended August 4, 2017 July 29, 2016 Investments Cash Flow Hedges Total Investments Cash Flow Hedges Total (in millions) Total reclassifications, net of tax: Net revenue $ — $ (49 ) $ (49 ) $ — $ (21 ) $ (21 ) Cost of net revenue — (21 ) (21 ) — (6 ) (6 ) Interest and other, net (2 ) — (2 ) — — — Total reclassifications, net of tax $ (2 ) $ (70 ) $ (72 ) $ — $ (27 ) $ (27 ) Six Months Ended August 4, 2017 July 29, 2016 Investments Cash Flow Hedges Total Investments Cash Flow Hedges Total (in millions) Total reclassifications, net of tax: Net revenue $ — $ (32 ) $ (32 ) $ — $ (66 ) $ (66 ) Cost of net revenue — (17 ) (17 ) — (14 ) (14 ) Interest and other, net (3 ) — (3 ) — (1 ) (1 ) Total reclassifications, net of tax $ (3 ) $ (49 ) $ (52 ) $ — $ (81 ) $ (81 ) |
NON-CONTROLLING INTERESTS (Tabl
NON-CONTROLLING INTERESTS (Tables) | 6 Months Ended |
Aug. 04, 2017 | |
Noncontrolling Interest [Abstract] | |
Effect of Changes in Ownership Interests of Less than Wholly Owned Subsidiaries | The effect of changes in the Company's ownership interest in VMware, Inc., SecureWorks, and Pivotal on the Company's equity for the period presented was as follows: Six Months Ended August 4, 2017 (in millions) Net loss attributable to Dell Technologies Inc. $ (2,280 ) Transfers (to) from the non-controlling interests: Increase in Dell Technologies Inc. additional paid-in-capital for equity issuances and other equity activity 305 Decrease in Dell Technologies Inc. additional paid-in-capital for equity issuances and other equity activity (351 ) Net transfers to non-controlling interests (46 ) Change from net loss attributable to Dell Technologies Inc. and transfers to/from the non-controlling interests $ (2,326 ) |
EARNINGS (LOSS) PER SHARE (Tabl
EARNINGS (LOSS) PER SHARE (Tables) | 6 Months Ended |
Aug. 04, 2017 | |
Earnings Per Share [Abstract] | |
Computation of basic and diluted earnings (loss) per share and reconciliation to consolidated net income (loss) | The following table sets forth basic and diluted earnings (loss) per share for each of the periods presented: Three Months Ended Six Months Ended August 4, 2017 July 29, 2016 August 4, 2017 July 29, 2016 Earnings (loss) per share attributable to Dell Technologies Inc. - basic: Continuing operations - Class V Common Stock - basic $ 0.83 $ — $ 1.40 $ — Continuing operations - DHI Group - basic $ (1.97 ) $ (0.64 ) $ (4.53 ) $ (1.69 ) Discontinued operations - DHI Group - basic $ — $ 2.06 $ — $ 3.24 Earnings (loss) per share attributable to Dell Technologies Inc. - diluted: Continuing operations - Class V Common Stock - diluted $ 0.82 $ — $ 1.38 $ — Continuing operations - DHI Group - diluted $ (1.97 ) $ (0.64 ) $ (4.54 ) $ (1.69 ) Discontinued operations - DHI Group - diluted $ — $ 2.06 $ — $ 3.24 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 August 4, 2017 July 29, 2016 August 4, 2017 July 29, 2016 (in millions) Numerator: Continuing operations - Class V Common Stock Net income from continuing operations attributable to Class V Common Stock - basic $ 168 $ — $ 286 $ — Incremental dilution from VMware, Inc. attributable to Class V Common Stock (a) (2 ) — (4 ) — Net income from continuing operations attributable to Class V Common Stock - diluted $ 166 $ — $ 282 $ — Numerator: Continuing operations - DHI Group Net loss from continuing operations attributable to DHI Group - basic $ (1,114 ) $ (261 ) $ (2,566 ) $ (685 ) Incremental dilution from VMware, Inc. attributable to DHI Group (a) (1 ) — (2 ) — Net loss from continuing operations attributable to DHI Group - diluted $ (1,115 ) $ (261 ) $ (2,568 ) $ (685 ) Numerator: Discontinued operations - DHI Group Income from discontinued operations, net of income taxes - basic and diluted $ — $ 834 $ — $ 1,313 Denominator: Class V Common Stock weighted-average shares outstanding Weighted-average shares outstanding - basic 203 — 205 — Dilutive effect of options, restricted stock units, restricted stock, and other (b) — — — — Weighted-average shares outstanding - diluted 203 — 205 — Weighted-average shares outstanding - antidilutive (b) — — — — Denominator: DHI Group weighted-average shares outstanding Weighted-average shares outstanding - basic 566 405 566 405 Dilutive effect of options, restricted stock units, restricted stock, and other — — — — Weighted-average shares outstanding - diluted 566 405 566 405 Weighted-average shares outstanding - antidilutive (c) 36 53 37 54 ____________________ (a) The incremental dilution from VMware, Inc. represents the impact of VMware, Inc.'s dilutive securities on the diluted earnings (loss) per share of the DHI Group and the Class V Common Stock, respectively, and is calculated by multiplying the difference between VMware, Inc.'s basic and diluted earnings (loss) per share by the number of shares of VMware, Inc. Class A common stock owned by the Company. (b) The dilutive effect of Class V Common Stock-based incentive awards was not material to the calculation of the weighted-average Class V Common Stock shares outstanding. The antidilutive effect of these awards was also not material. (c) Stock-based incentive awards have been excluded from the calculation of the DHI Group's diluted earnings (loss) per share because their effect would have been antidilutive, as the Company had a net loss from continuing operations attributable to the DHI Group for the periods presented. |
Reconciliation to the consolidated net income (loss) | The following table presents a reconciliation to the consolidated net income (loss) attributable to Dell Technologies Inc.: Three Months Ended Six Months Ended August 4, 2017 July 29, 2016 August 4, 2017 July 29, 2016 (in millions) Net income from continuing operations attributable to Class V Common Stock $ 168 $ — $ 286 $ — Net loss from continuing operations attributable to DHI Group (1,114 ) (261 ) (2,566 ) (685 ) Net loss from continuing operations attributable to Dell Technologies Inc. (946 ) (261 ) (2,280 ) (685 ) Income from discontinued operations, net of income taxes (Note 3) — 834 — 1,313 Net income (loss) attributable to Dell Technologies Inc. $ (946 ) $ 573 $ (2,280 ) $ 628 |
CAPITALIZATION (Tables)
CAPITALIZATION (Tables) | 6 Months Ended |
Aug. 04, 2017 | |
Equity [Abstract] | |
Schedule of Stock by Class | The following table presents the repurchase activity with respect to the Class V Common Stock for the six months ended August 4, 2017 , and the attribution of the Class V Group between the Class V Common Stock and the DHI Group's retained interest as of the dates indicated: Class V Common Stock DHI Group Retained Interest Shares of Class V Common Stock Interest in Class V Group Retained Interest Shares Interest in Class V Group (in millions of shares) As of February 3, 2017 209 62 % 127 38 % Repurchases of Class V Common Stock (6 ) — As of August 4, 2017 203 62 % 127 38 % The following table summarizes the Company's authorized, issued, and outstanding common stock as of the dates indicated: Authorized Issued Outstanding (in millions of shares) Common stock as of February 3, 2017 Class A 600 410 410 Class B 200 137 137 Class C 900 22 22 Class D 100 — — Class V 343 223 209 2,143 792 778 Common stock as of August 4, 2017 Class A 600 410 410 Class B 200 137 137 Class C 7,900 23 23 Class D 100 — — Class V 343 223 203 9,143 793 773 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 6 Months Ended |
Aug. 04, 2017 | |
Segment Reporting [Abstract] | |
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 to the Company's consolidated operating loss: Three Months Ended Six Months Ended August 4, 2017 July 29, 2016 August 4, 2017 July 29, 2016 (in millions) Consolidated net revenue: Client Solutions Group $ 9,851 $ 9,220 $ 18,907 $ 17,791 Infrastructure Solutions Group 7,406 3,779 14,322 7,392 VMware 1,907 — 3,643 — Reportable segment net revenue 19,164 12,999 36,872 25,183 Other businesses (a) 472 118 934 228 Unallocated transactions (b) (2 ) 28 (1 ) 53 Impact of purchase accounting (c) (335 ) (65 ) (690 ) (143 ) Total net revenue $ 19,299 $ 13,080 $ 37,115 $ 25,321 Consolidated operating income (loss): Client Solutions Group $ 566 $ 484 $ 940 $ 869 Infrastructure Solutions Group 430 300 753 492 VMware 561 — 1,047 — Reportable segment operating income 1,557 784 2,740 1,361 Other businesses (a) 1 (11 ) 4 (27 ) Unallocated transactions (b) (6 ) (17 ) 5 (39 ) Impact of purchase accounting (c) (406 ) (98 ) (829 ) (204 ) Amortization of intangibles (1,740 ) (491 ) (3,516 ) (982 ) Transaction-related expenses (d) (138 ) (72 ) (329 ) (129 ) Other corporate expenses (e) (247 ) (28 ) (554 ) (52 ) Total operating income (loss) $ (979 ) $ 67 $ (2,479 ) $ (72 ) _________________ (a) Other businesses consist of RSA Information Security, SecureWorks, Pivotal, and Boomi, and do not constitute a reportable segment, either individually or collectively, as the results of the businesses are not material to the Company's overall results and the businesses do not meet the criteria for reportable segments. (b) Unallocated transactions includes long-term incentives, certain short-term incentive compensation expenses, and other corporate items that are not allocated to Dell Technologies' reportable segments. (c) Impact of purchase accounting includes non-cash purchase accounting adjustments that are primarily related to the EMC merger transaction. (d) Transaction-related expenses includes acquisition, integration, and divestiture related costs. (e) Other corporate expenses includes severance and facility action costs as well as stock-based compensation expense. |
Net revenue by business unit categories | The following table presents net revenue by business unit categories: Three Months Ended Six Months Ended August 4, 2017 July 29, 2016 August 4, 2017 July 29, 2016 (in millions) Net revenue: Client Solutions Group: Commercial $ 7,196 $ 6,798 $ 13,546 $ 12,943 Consumer 2,655 2,422 5,361 4,848 Total CSG net revenue 9,851 9,220 18,907 17,791 Infrastructure Solutions Group: Servers and networking 3,740 3,237 6,971 6,312 Storage 3,666 542 7,351 1,080 Total ISG net revenue 7,406 3,779 14,322 7,392 VMware Total VMware net revenue 1,907 — 3,643 — Total segment net revenue $ 19,164 $ 12,999 $ 36,872 $ 25,183 |
SUPPLEMENTAL CONSOLIDATED FIN46
SUPPLEMENTAL CONSOLIDATED FINANCIAL INFORMATION (Tables) | 6 Months Ended |
Aug. 04, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Information on selected accounts included in the statements of financial position | The following table provides additional information on selected accounts included in the Condensed Consolidated Statements of Financial Position as of August 4, 2017 and February 3, 2017 : August 4, 2017 February 3, 2017 (in millions) Inventories, net: Production materials $ 926 $ 925 Work-in-process 538 503 Finished goods 1,130 1,110 Total inventories, net 2,594 2,538 Other non-current liabilities: Warranty liability 176 199 Deferred and other tax liabilities 7,124 8,607 Other 547 533 Total other non-current liabilities $ 7,847 $ 9,339 |
BASIS OF PRESENTATION - Additio
BASIS OF PRESENTATION - Additional Information (Details) - USD ($) $ in Millions | Aug. 04, 2017 | Feb. 04, 2017 | Feb. 03, 2017 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Other non-current liabilities | $ 7,847 | $ 9,339 | |
Adjustment for adoption of accounting standard | 84 | ||
Retained Earnings | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Adjustment for adoption of accounting standard | $ 84 | ||
Accounting Standards Update 2015-07 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Other non-current liabilities | $ (84) | ||
Accounting Standards Update 2015-07 | Retained Earnings | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Adjustment for adoption of accounting standard | $ 84 |
BUSINESS COMBINATIONS - EMC Mer
BUSINESS COMBINATIONS - EMC Merger Transaction (Details) $ / shares in Units, shares in Millions, $ in Billions | Sep. 07, 2016USD ($)$ / sharesshares | Aug. 04, 2017$ / sharesshares | Feb. 03, 2017$ / sharesshares |
Business Acquisition [Line Items] | |||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | |
Shares outstanding (in shares) | shares | 773 | 778 | |
Class V Common Stock | |||
Business Acquisition [Line Items] | |||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | ||
Shares outstanding (in shares) | shares | 203 | 209 | |
EMC | |||
Business Acquisition [Line Items] | |||
Cash consideration (in dollars per share) | $ / shares | $ 24.05 | ||
Total consideration transferred | $ | $ 10 | ||
Fair value of consideration transferred | $ | $ 64 | ||
EMC | Class V Common Stock | |||
Business Acquisition [Line Items] | |||
Cash consideration (in dollars per share) | $ / shares | $ 45.07 | ||
Share issuance ratio | 0.11146 | ||
Shares reserved for issuance (in shares) | shares | 343 | ||
Shares issued in EMC merger (in shares) | shares | 223 | ||
EMC | |||
Business Acquisition [Line Items] | |||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | ||
Shares outstanding (in shares) | shares | 2,000 |
BUSINESS COMBINATIONS - Assets
BUSINESS COMBINATIONS - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | Aug. 04, 2017 | Feb. 03, 2017 |
Current assets: | ||
Goodwill | $ 39,407 | $ 38,910 |
EMC | ||
Current assets: | ||
Cash and cash equivalents | 10,080 | |
Short-term investments | 1,765 | |
Accounts receivable | 2,810 | |
Short-term financing receivables | 64 | |
Inventories, net | 1,993 | |
Other current assets | 903 | |
Total current assets | 17,615 | |
Property, plant, and equipment | 4,490 | |
Long-term investments | 4,317 | |
Long-term financing receivables, net | 65 | |
Goodwill | 31,539 | |
Purchased intangibles | 31,218 | |
Other non-current assets | 445 | |
Total assets | 89,689 | |
Current liabilities: | ||
Short-term debt | 905 | |
Accounts payable | 728 | |
Accrued and other | 3,259 | |
Short-term deferred revenue | 4,954 | |
Total current liabilities | 9,846 | |
Long-term debt | 5,474 | |
Long-term deferred revenue | 3,469 | |
Deferred tax liabilities | 6,625 | |
Other non-current liabilities | 324 | |
Total liabilities | 25,738 | |
Total net assets | $ 63,951 |
BUSINESS COMBINATIONS - Proform
BUSINESS COMBINATIONS - Proforma (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 04, 2017 | Jul. 29, 2016 | Aug. 04, 2017 | Jul. 29, 2016 | |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||
Net loss attributable to Dell Technologies Inc. | $ (946) | $ 573 | $ (2,280) | $ 628 |
EMC | ||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||
Total net revenue | 18,562 | 35,767 | ||
Net loss attributable to Dell Technologies Inc. | $ (1,158) | $ (2,542) | ||
EMC | Class V Common Stock | ||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||
Earnings (loss) per share attributable to Dell Technologies Inc. - basic (in dollars per share) | $ 0.66 | $ 1.05 | ||
Earnings (loss) per share attributable to Dell Technologies Inc. - diluted (in dollars per share) | 0.66 | 1.05 | ||
EMC | DHI Group | ||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||
Earnings (loss) per share attributable to Dell Technologies Inc. - basic (in dollars per share) | (2.28) | (4.87) | ||
Earnings (loss) per share attributable to Dell Technologies Inc. - diluted (in dollars per share) | $ (2.28) | $ (4.87) | ||
EMC | Transaction and integration costs | ||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||
Net loss attributable to Dell Technologies Inc. | $ 81 | $ 144 |
BUSINESS COMBINATIONS - Acquisi
BUSINESS COMBINATIONS - Acquisitions by VMware, Inc. (Details) $ in Millions | 3 Months Ended | 6 Months Ended |
Aug. 04, 2017USD ($)acquisition | Aug. 04, 2017USD ($) | |
Business Acquisition [Line Items] | ||
Goodwill recognized | $ 247 | |
Wavefront and Apteligent, Inc. | ||
Business Acquisition [Line Items] | ||
Number of acquisitions | acquisition | 2 | |
Total consideration transferred | $ 323 | |
Fair value of existing investment prior to acquisition | 69 | |
Cash acquired | 35 | |
Intangible assets recognized | 36 | |
Goodwill recognized | 238 | |
Fair value of assumed invested equity attributable to post-combination services | $ 37 | 37 |
Step acquisition, gain on remeasurement | $ 45 | |
Purchased technology | Wavefront and Apteligent, Inc. | ||
Business Acquisition [Line Items] | ||
Estimated useful lives of intangible assets acquired | 5 years |
DISCONTINUED OPERATIONS - Key f
DISCONTINUED OPERATIONS - Key financial results of the Services business (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 04, 2017 | Jul. 29, 2016 | Aug. 04, 2017 | Jul. 29, 2016 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Income from discontinued operations, net of income taxes | $ 0 | $ 834 | $ 0 | $ 1,313 |
Discontinued Operations, Disposed of by Sale | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Net revenue | 985 | 1,952 | ||
Cost of net revenue | 598 | 1,207 | ||
Operating expenses | 334 | 694 | ||
Interest and other, net | (7) | 7 | ||
Income (loss) from discontinued operations before income taxes | 46 | 58 | ||
Income tax benefit | (788) | (1,255) | ||
Income from discontinued operations, net of income taxes | 834 | 1,313 | ||
Discontinued Operations, Disposed of by Sale | Dell Services | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Net revenue | 664 | 1,310 | ||
Cost of net revenue | 513 | 1,032 | ||
Operating expenses | 95 | 206 | ||
Interest and other, net | 0 | 0 | ||
Income (loss) from discontinued operations before income taxes | 56 | 72 | ||
Income tax benefit | (455) | (918) | ||
Income from discontinued operations, net of income taxes | 511 | 990 | ||
Discontinued Operations, Disposed of by Sale | Dell Software Group | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Net revenue | 321 | 642 | ||
Cost of net revenue | 85 | 175 | ||
Operating expenses | 239 | 488 | ||
Interest and other, net | (7) | 7 | ||
Income (loss) from discontinued operations before income taxes | (10) | (14) | ||
Income tax benefit | (333) | (337) | ||
Income from discontinued operations, net of income taxes | $ 323 | $ 323 |
DISCONTINUED OPERATIONS - Signi
DISCONTINUED OPERATIONS - Significant cash flow items (Details) - Discontinued Operations, Disposed of by Sale $ in Millions | 6 Months Ended |
Jul. 29, 2016USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Total depreciation and amortization | $ 98 |
Total capital expenditures | 62 |
Dell Services | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Total depreciation and amortization | 32 |
Total capital expenditures | 47 |
Dell Software Group | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Total depreciation and amortization | 66 |
Total capital expenditures | $ 15 |
DISCONTINUED OPERATIONS - Addit
DISCONTINUED OPERATIONS - Additional Information (Details) | 6 Months Ended |
Aug. 04, 2017 | |
Discontinued Operations, Disposed of by Sale | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Transition services term | 1 year |
FAIR VALUE MEASUREMENTS - Hiera
FAIR VALUE MEASUREMENTS - Hierarchy for Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Millions | Aug. 04, 2017 | Feb. 03, 2017 |
Assets: | ||
Derivative instruments | $ 125 | $ 205 |
Liabilities: | ||
Derivative instruments | 180 | 64 |
Fair Value, Measurements, Recurring | ||
Assets: | ||
Derivative instruments | 125 | 205 |
Total assets | 10,730 | 10,396 |
Liabilities: | ||
Derivative instruments | 180 | 64 |
Total liabilities | 180 | 64 |
Fair Value, Measurements, Recurring | U.S. government and agencies | ||
Assets: | ||
Investments | 1,070 | 914 |
Fair Value, Measurements, Recurring | U.S. corporate debt securities | ||
Assets: | ||
Investments | 1,893 | 1,800 |
Fair Value, Measurements, Recurring | Foreign debt securities | ||
Assets: | ||
Investments | 2,332 | 2,083 |
Fair Value, Measurements, Recurring | Municipal obligations | ||
Assets: | ||
Investments | 0 | 352 |
Fair Value, Measurements, Recurring | Asset-backed securities | ||
Assets: | ||
Investments | 0 | 4 |
Fair Value, Measurements, Recurring | Equity and other securities | ||
Assets: | ||
Investments | 226 | 169 |
Fair Value, Measurements, Recurring | Money market funds | ||
Assets: | ||
Cash equivalents | 4,853 | 4,866 |
Fair Value, Measurements, Recurring | Municipal obligations | ||
Assets: | ||
Cash equivalents | 0 | 3 |
Fair Value, Measurements, Recurring | U.S. and foreign corporate debt securities | ||
Assets: | ||
Cash equivalents | 183 | 0 |
Fair Value, Measurements, Recurring | U.S. government and agencies | ||
Assets: | ||
Cash equivalents | 45 | 0 |
Fair Value, Measurements, Recurring | Foreign government and agencies | ||
Assets: | ||
Cash equivalents | 3 | 0 |
Fair Value, Measurements, Recurring | Level 1 | ||
Assets: | ||
Derivative instruments | 0 | 0 |
Total assets | 5,735 | 5,479 |
Liabilities: | ||
Derivative instruments | 0 | 0 |
Total liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | U.S. government and agencies | ||
Assets: | ||
Investments | 658 | 444 |
Fair Value, Measurements, Recurring | Level 1 | U.S. corporate debt securities | ||
Assets: | ||
Investments | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Foreign debt securities | ||
Assets: | ||
Investments | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Municipal obligations | ||
Assets: | ||
Investments | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Asset-backed securities | ||
Assets: | ||
Investments | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Equity and other securities | ||
Assets: | ||
Investments | 224 | 169 |
Fair Value, Measurements, Recurring | Level 1 | Money market funds | ||
Assets: | ||
Cash equivalents | 4,853 | 4,866 |
Fair Value, Measurements, Recurring | Level 1 | Municipal obligations | ||
Assets: | ||
Cash equivalents | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | U.S. and foreign corporate debt securities | ||
Assets: | ||
Cash equivalents | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | U.S. government and agencies | ||
Assets: | ||
Cash equivalents | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Foreign government and agencies | ||
Assets: | ||
Cash equivalents | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | ||
Assets: | ||
Derivative instruments | 125 | 205 |
Total assets | 4,995 | 4,917 |
Liabilities: | ||
Derivative instruments | 180 | 64 |
Total liabilities | 180 | 64 |
Fair Value, Measurements, Recurring | Level 2 | U.S. government and agencies | ||
Assets: | ||
Investments | 412 | 470 |
Fair Value, Measurements, Recurring | Level 2 | U.S. corporate debt securities | ||
Assets: | ||
Investments | 1,893 | 1,800 |
Fair Value, Measurements, Recurring | Level 2 | Foreign debt securities | ||
Assets: | ||
Investments | 2,332 | 2,083 |
Fair Value, Measurements, Recurring | Level 2 | Municipal obligations | ||
Assets: | ||
Investments | 0 | 352 |
Fair Value, Measurements, Recurring | Level 2 | Asset-backed securities | ||
Assets: | ||
Investments | 0 | 4 |
Fair Value, Measurements, Recurring | Level 2 | Equity and other securities | ||
Assets: | ||
Investments | 2 | 0 |
Fair Value, Measurements, Recurring | Level 2 | Money market funds | ||
Assets: | ||
Cash equivalents | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | Municipal obligations | ||
Assets: | ||
Cash equivalents | 0 | 3 |
Fair Value, Measurements, Recurring | Level 2 | U.S. and foreign corporate debt securities | ||
Assets: | ||
Cash equivalents | 183 | 0 |
Fair Value, Measurements, Recurring | Level 2 | U.S. government and agencies | ||
Assets: | ||
Cash equivalents | 45 | 0 |
Fair Value, Measurements, Recurring | Level 2 | Foreign government and agencies | ||
Assets: | ||
Cash equivalents | 3 | 0 |
Fair Value, Measurements, Recurring | Level 3 | ||
Assets: | ||
Derivative instruments | 0 | 0 |
Total assets | 0 | 0 |
Liabilities: | ||
Derivative instruments | 0 | 0 |
Total liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | U.S. government and agencies | ||
Assets: | ||
Investments | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | U.S. corporate debt securities | ||
Assets: | ||
Investments | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Foreign debt securities | ||
Assets: | ||
Investments | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Municipal obligations | ||
Assets: | ||
Investments | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Asset-backed securities | ||
Assets: | ||
Investments | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Equity and other securities | ||
Assets: | ||
Investments | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Money market funds | ||
Assets: | ||
Cash equivalents | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Municipal obligations | ||
Assets: | ||
Cash equivalents | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | U.S. and foreign corporate debt securities | ||
Assets: | ||
Cash equivalents | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | U.S. government and agencies | ||
Assets: | ||
Cash equivalents | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Foreign government and agencies | ||
Assets: | ||
Cash equivalents | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Carry
FAIR VALUE MEASUREMENTS - Carrying Value and Estimated Fair Value of Outstanding Debt (Details) - USD ($) $ in Billions | Aug. 04, 2017 | Feb. 03, 2017 |
Carrying Value | Senior Secured Credit Facilities | Secured Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 10.9 | $ 11.4 |
Carrying Value | First Lien Notes | Secured Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 19.7 | 19.7 |
Carrying Value | Unsecured Notes and Debentures | Unsecured Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 2.3 | 2.3 |
Carrying Value | Senior Unsecured Notes | Unsecured Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 3.1 | 3.1 |
Carrying Value | EMC Notes | Unsecured Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 5.5 | 5.5 |
Carrying Value | Margin Loan Facility | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 2 | 0 |
Carrying Value | Bridge Facilities | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 1.5 | 4 |
Fair Value | Senior Secured Credit Facilities | Secured Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 11.2 | 11.7 |
Fair Value | First Lien Notes | Secured Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 22.3 | 21.8 |
Fair Value | Unsecured Notes and Debentures | Unsecured Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 2.5 | 2.5 |
Fair Value | Senior Unsecured Notes | Unsecured Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 3.5 | 3.5 |
Fair Value | EMC Notes | Unsecured Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 5.3 | 5.4 |
Fair Value | Margin Loan Facility | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 2 | 0 |
Fair Value | Bridge Facilities | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 1.5 | $ 4 |
FAIR VALUE MEASUREMENTS - Addit
FAIR VALUE MEASUREMENTS - Additional Information (Details) - USD ($) $ in Millions | Aug. 04, 2017 | Feb. 03, 2017 |
Fair Value, Measurements, Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cost method strategic investments | $ 516 | $ 455 |
INVESTMENTS - Schedule of Inves
INVESTMENTS - Schedule of Investments by Major Security Type, the Carrying Value and Amortized Cost (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Aug. 04, 2017 | Feb. 03, 2017 | |
Schedule of Available-for-sale Securities and Cost Method Investments [Table] [Line Items] | ||
Debt securities, carrying value | $ 5,295 | |
Carrying Value | 6,037 | $ 5,777 |
Available-for-sale Securities, Amortized Cost Basis [Abstract] | ||
Debt securities, cost | 5,306 | |
Cost | 5,973 | 5,794 |
Available-for-sale Securities, Gross Unrealized Gain (Loss) [Abstract] | ||
Unrealized Gain | 79 | 22 |
Unrealized (Loss) | (15) | (39) |
Short-term Investments | ||
Schedule of Available-for-sale Securities and Cost Method Investments [Table] [Line Items] | ||
Debt securities, carrying value | 2,015 | 1,975 |
Available-for-sale Securities, Amortized Cost Basis [Abstract] | ||
Debt securities, cost | 2,017 | 1,977 |
Available-for-sale Securities, Gross Unrealized Gain (Loss) [Abstract] | ||
Debt securities, unrealized gain | 0 | 0 |
Debt securities, unrealized (loss) | (2) | (2) |
Short-term Investments | U.S. government and agencies | ||
Schedule of Available-for-sale Securities and Cost Method Investments [Table] [Line Items] | ||
Debt securities, carrying value | 441 | 231 |
Available-for-sale Securities, Amortized Cost Basis [Abstract] | ||
Debt securities, cost | 441 | 231 |
Available-for-sale Securities, Gross Unrealized Gain (Loss) [Abstract] | ||
Debt securities, unrealized gain | 0 | 0 |
Debt securities, unrealized (loss) | 0 | 0 |
Short-term Investments | U.S. corporate debt securities | ||
Schedule of Available-for-sale Securities and Cost Method Investments [Table] [Line Items] | ||
Debt securities, carrying value | 669 | 650 |
Available-for-sale Securities, Amortized Cost Basis [Abstract] | ||
Debt securities, cost | 670 | 651 |
Available-for-sale Securities, Gross Unrealized Gain (Loss) [Abstract] | ||
Debt securities, unrealized gain | 0 | 0 |
Debt securities, unrealized (loss) | (1) | (1) |
Short-term Investments | Foreign debt securities | ||
Schedule of Available-for-sale Securities and Cost Method Investments [Table] [Line Items] | ||
Debt securities, carrying value | 905 | 742 |
Available-for-sale Securities, Amortized Cost Basis [Abstract] | ||
Debt securities, cost | 906 | 743 |
Available-for-sale Securities, Gross Unrealized Gain (Loss) [Abstract] | ||
Debt securities, unrealized gain | 0 | 0 |
Debt securities, unrealized (loss) | (1) | (1) |
Short-term Investments | Municipal obligations | ||
Schedule of Available-for-sale Securities and Cost Method Investments [Table] [Line Items] | ||
Debt securities, carrying value | 0 | 348 |
Available-for-sale Securities, Amortized Cost Basis [Abstract] | ||
Debt securities, cost | 0 | 348 |
Available-for-sale Securities, Gross Unrealized Gain (Loss) [Abstract] | ||
Debt securities, unrealized gain | 0 | 0 |
Debt securities, unrealized (loss) | 0 | 0 |
Short-term Investments | Asset-backed securities | ||
Schedule of Available-for-sale Securities and Cost Method Investments [Table] [Line Items] | ||
Debt securities, carrying value | 0 | 4 |
Available-for-sale Securities, Amortized Cost Basis [Abstract] | ||
Debt securities, cost | 0 | 4 |
Available-for-sale Securities, Gross Unrealized Gain (Loss) [Abstract] | ||
Debt securities, unrealized gain | 0 | 0 |
Debt securities, unrealized (loss) | 0 | 0 |
Long-term Investments | ||
Schedule of Available-for-sale Securities and Cost Method Investments [Table] [Line Items] | ||
Equity and other securities, carrying value | 742 | 624 |
Carrying Value | 4,022 | 3,802 |
Available-for-sale Securities, Amortized Cost Basis [Abstract] | ||
Equity and other securities, cost | 667 | 604 |
Cost | 3,956 | 3,817 |
Available-for-Sale Securities, Equity Securities and Cost Method Investments, Accumulated Gross Unrealized Gain, before Tax | 75 | 22 |
Available-for-sale Securities, Gross Unrealized Gain (Loss) [Abstract] | ||
Equity and other securities, unrealized (loss) | 0 | (2) |
Unrealized Gain | 79 | 22 |
Unrealized (Loss) | (13) | (37) |
Long-term Investments | U.S. government and agencies | ||
Schedule of Available-for-sale Securities and Cost Method Investments [Table] [Line Items] | ||
Debt securities, carrying value | 629 | 683 |
Available-for-sale Securities, Amortized Cost Basis [Abstract] | ||
Debt securities, cost | 632 | 689 |
Available-for-sale Securities, Gross Unrealized Gain (Loss) [Abstract] | ||
Debt securities, unrealized gain | 0 | 0 |
Debt securities, unrealized (loss) | (3) | (6) |
Long-term Investments | U.S. corporate debt securities | ||
Schedule of Available-for-sale Securities and Cost Method Investments [Table] [Line Items] | ||
Debt securities, carrying value | 1,224 | 1,150 |
Available-for-sale Securities, Amortized Cost Basis [Abstract] | ||
Debt securities, cost | 1,227 | 1,164 |
Available-for-sale Securities, Gross Unrealized Gain (Loss) [Abstract] | ||
Debt securities, unrealized gain | 2 | 0 |
Debt securities, unrealized (loss) | (5) | (14) |
Long-term Investments | Foreign debt securities | ||
Schedule of Available-for-sale Securities and Cost Method Investments [Table] [Line Items] | ||
Debt securities, carrying value | 1,427 | 1,341 |
Available-for-sale Securities, Amortized Cost Basis [Abstract] | ||
Debt securities, cost | 1,430 | 1,356 |
Available-for-sale Securities, Gross Unrealized Gain (Loss) [Abstract] | ||
Debt securities, unrealized gain | 2 | 0 |
Debt securities, unrealized (loss) | (5) | (15) |
Long-term Investments | Municipal obligations | ||
Schedule of Available-for-sale Securities and Cost Method Investments [Table] [Line Items] | ||
Debt securities, carrying value | 0 | 4 |
Available-for-sale Securities, Amortized Cost Basis [Abstract] | ||
Debt securities, cost | 0 | 4 |
Available-for-sale Securities, Gross Unrealized Gain (Loss) [Abstract] | ||
Debt securities, unrealized gain | 0 | 0 |
Debt securities, unrealized (loss) | $ 0 | $ 0 |
INVESTMENTS - Schedule of Inv59
INVESTMENTS - Schedule of Investments Classified by Contractual Maturities of Debt Securities Held (Details) $ in Millions | Aug. 04, 2017USD ($) |
Amortized Cost | |
Due within one year | $ 2,017 |
Due after 1 year through 5 years | 3,219 |
Due after 5 years through 10 years | 70 |
Total | 5,306 |
Carrying Value | |
Due within one year | 2,015 |
Due after 1 year through 5 years | 3,209 |
Due after 5 years through 10 years | 71 |
Total | $ 5,295 |
FINANCIAL SERVICES - DFS Additi
FINANCIAL SERVICES - DFS Additional Information (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Aug. 04, 2017 | Jul. 29, 2016 | Aug. 04, 2017 | Jul. 29, 2016 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
New financing originations | $ 1,600 | $ 1,000 | $ 2,700 | $ 1,900 | |
Purchase of financing receivables | $ 89 | ||||
Revolving | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Repayment term (in years) | 12 months | ||||
Fixed-term | |||||
Future maturities | |||||
Remainder of Fiscal 2018 | 1,121 | $ 1,121 | |||
Fiscal 2,019 | 1,552 | 1,552 | |||
Fiscal 2,020 | 949 | 949 | |||
Fiscal 2,021 | 354 | 354 | |||
Fiscal 2022 and beyond | $ 96 | $ 96 | |||
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 - Schedule o
FINANCIAL SERVICES - Schedule of Components of the Company's Financing Receivables Segregated by Portfolio Segment (Details) - USD ($) $ in Millions | Aug. 04, 2017 | May 05, 2017 | Feb. 03, 2017 | Jul. 29, 2016 | Apr. 29, 2016 | Jan. 29, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Financing receivables, net | $ 6,672 | $ 5,873 | ||||
Short-term | 3,473 | 3,222 | ||||
Long-term | 3,199 | 2,651 | ||||
Customer receivables | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Customer receivables, gross | 6,284 | 5,539 | ||||
Allowances for losses | (135) | $ (136) | (143) | $ (156) | $ (165) | $ (176) |
Financing receivables, net | 6,149 | 5,396 | ||||
Residual interest | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Financing receivables, net | 523 | 477 | ||||
Revolving | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Financing receivables, net | 818 | 918 | ||||
Short-term | 818 | 918 | ||||
Long-term | 0 | 0 | ||||
Revolving | Customer receivables | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Customer receivables, gross | 899 | 1,009 | ||||
Allowances for losses | (81) | (85) | (91) | (100) | (107) | (118) |
Financing receivables, net | 818 | 918 | ||||
Revolving | Residual interest | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Financing receivables, net | 0 | 0 | ||||
Fixed-term | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Financing receivables, net | 5,854 | 4,955 | ||||
Short-term | 2,655 | 2,304 | ||||
Long-term | 3,199 | 2,651 | ||||
Fixed-term | Customer receivables | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Customer receivables, gross | 5,385 | 4,530 | ||||
Allowances for losses | (54) | $ (51) | (52) | $ (56) | $ (58) | $ (58) |
Financing receivables, net | 5,331 | 4,478 | ||||
Fixed-term | Residual interest | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Financing receivables, net | $ 523 | $ 477 |
FINANCIAL SERVICES - Schedule62
FINANCIAL SERVICES - Schedule of Changes in the Allowance for Financing Receivable Losses (Details) - Customer receivables - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 04, 2017 | Jul. 29, 2016 | Aug. 04, 2017 | Jul. 29, 2016 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Balances at beginning of period | $ 136 | $ 165 | $ 143 | $ 176 |
Charge-offs, net of recoveries | (25) | (25) | (50) | (53) |
Provision charged to income statement | 24 | 16 | 42 | 33 |
Balances at end of period | 135 | 156 | 135 | 156 |
Revolving | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Balances at beginning of period | 85 | 107 | 91 | 118 |
Charge-offs, net of recoveries | (20) | (23) | (42) | (48) |
Provision charged to income statement | 16 | 16 | 32 | 30 |
Balances at end of period | 81 | 100 | 81 | 100 |
Fixed-term | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Balances at beginning of period | 51 | 58 | 52 | 58 |
Charge-offs, net of recoveries | (5) | (2) | (8) | (5) |
Provision charged to income statement | 8 | 0 | 10 | 3 |
Balances at end of period | $ 54 | $ 56 | $ 54 | $ 56 |
FINANCIAL SERVICES - Aging Cust
FINANCIAL SERVICES - Aging Customer Financing Receivables, Gross, Including Accrued Interest (Details) - USD ($) $ in Millions | Aug. 04, 2017 | Feb. 03, 2017 |
Customer receivables | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | $ 5,332 | $ 4,884 |
Total customer receivables, gross | 6,284 | 5,539 |
Revolving | Customer receivables | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total customer receivables, gross | 899 | 1,009 |
Revolving | Dell Preferred Account (DPA) | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total customer receivables, gross | 720 | 808 |
Revolving | Dell Preferred Account (DPA) | Customer receivables | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 639 | 715 |
Total customer receivables, gross | 720 | 808 |
Revolving | Dell Business Credit (DBC) | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total customer receivables, gross | 179 | 201 |
Revolving | Dell Business Credit (DBC) | Customer receivables | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 154 | 175 |
Total customer receivables, gross | 179 | 201 |
Fixed-term | Customer receivables | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total customer receivables, gross | 5,385 | 4,530 |
Fixed-term | Consumer and Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total customer receivables, gross | 5,385 | 4,530 |
Fixed-term | Consumer and Commercial | Customer receivables | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 4,539 | 3,994 |
Total customer receivables, gross | 5,385 | 4,530 |
Past Due 1 — 90 Days | Customer receivables | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 865 | 594 |
Past Due 1 — 90 Days | Revolving | Dell Preferred Account (DPA) | Customer receivables | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 58 | 66 |
Past Due 1 — 90 Days | Revolving | Dell Business Credit (DBC) | Customer receivables | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 20 | 22 |
Past Due 1 — 90 Days | Fixed-term | Consumer and Commercial | Customer receivables | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 787 | 506 |
Past Due 90 Days | Customer receivables | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 87 | 61 |
Past Due 90 Days | Revolving | Dell Preferred Account (DPA) | Customer receivables | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 23 | 27 |
Past Due 90 Days | Revolving | Dell Business Credit (DBC) | Customer receivables | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 5 | 4 |
Past Due 90 Days | Fixed-term | Consumer and Commercial | Customer receivables | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | $ 59 | $ 30 |
FINANCIAL SERVICES - Credit Qua
FINANCIAL SERVICES - Credit Quality Indicators (Details) - USD ($) $ in Millions | Aug. 04, 2017 | Feb. 03, 2017 |
Revolving | Dell Preferred Account (DPA) | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Customer receivables, gross | $ 720 | $ 808 |
Revolving | Dell Business Credit (DBC) | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Customer receivables, gross | 179 | 201 |
Fixed-term | Consumer and Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Customer receivables, gross | 5,385 | 4,530 |
Higher | Revolving | Dell Preferred Account (DPA) | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Customer receivables, gross | 132 | 136 |
Higher | Revolving | Dell Business Credit (DBC) | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Customer receivables, gross | 46 | 61 |
Higher | Fixed-term | Consumer and Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Customer receivables, gross | 2,770 | 2,232 |
Mid | Revolving | Dell Preferred Account (DPA) | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Customer receivables, gross | 220 | 244 |
Mid | Revolving | Dell Business Credit (DBC) | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Customer receivables, gross | 56 | 60 |
Mid | Fixed-term | Consumer and Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Customer receivables, gross | 1,668 | 1,428 |
Lower | Revolving | Dell Preferred Account (DPA) | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Customer receivables, gross | 368 | 428 |
Lower | Revolving | Dell Business Credit (DBC) | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Customer receivables, gross | 77 | 80 |
Lower | Fixed-term | Consumer and Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Customer receivables, gross | $ 947 | $ 870 |
FINANCIAL SERVICES - Structured
FINANCIAL SERVICES - Structured Financing Debt Additional Information (Details) - USD ($) | 6 Months Ended | |
Aug. 04, 2017 | Feb. 03, 2017 | |
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Total debt, principal amount | $ 49,946,000,000 | $ 50,356,000,000 |
Structured financing debt | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Total debt, principal amount | 4,050,000,000 | |
Structured financing debt | Secured Debt | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Total debt, principal amount | 4,050,000,000 | 3,464,000,000 |
Securitization Program | Secured Debt | Finance Leases and Revolving Loan Portfolio Segments [Member] | United States | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Total debt, principal amount | 1,400,000,000 | 1,500,000,000 |
Debt capacity | $ 2,100,000,000 | |
Securitization Program | Secured Debt | Revolving | United States | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Term | 4 years 6 months | |
Securitization Program | Secured Debt | Fixed-term | United States | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Term | 4 years 6 months | |
Securitization Program | Secured Debt | Fixed-term | Europe | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Total debt, principal amount | $ 373,000,000 | |
Debt capacity | $ 712,000,000 | |
Term | 2 years | |
Fixed Term Securitization Programs | Secured Debt | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Total debt, principal amount | $ 1,800,000,000 | 1,400,000,000 |
Fixed Term Securitization Programs | Secured Debt | Minimum | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Interest rate | 0.42% | |
Fixed Term Securitization Programs | Secured Debt | Maximum | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Interest rate | 3.61% | |
Other Structured Financing Programs | Secured Debt | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Structured loans | $ 446,000,000 | $ 382,000,000 |
Other Structured Financing Programs | Secured Debt | Europe | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Debt capacity | $ 356,000,000 | |
Term | 4 years | |
Other Structured Financing Programs | Secured Debt | Canada | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Debt capacity | $ 175,000,000 | |
Term | 2 years |
FINANCIAL SERVICES - Schedule66
FINANCIAL SERVICES - Schedule of Financing Receivables Held by the Consolidated VIEs (Details) - Variable Interest Entity, Primary Beneficiary - USD ($) $ in Millions | Aug. 04, 2017 | Feb. 03, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables held by consolidated VIEs, net | $ 4,230 | $ 3,608 |
Financing Receivables, Short-term, Net | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables held by consolidated VIEs, net | 2,440 | 2,227 |
Financing Receivables, Long-term, Net | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables held by consolidated VIEs, net | $ 1,790 | $ 1,381 |
FINANCIAL SERVICES - Variable I
FINANCIAL SERVICES - Variable Interest Entities Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Aug. 04, 2017 | Jul. 29, 2016 | Aug. 04, 2017 | Jul. 29, 2016 | Feb. 03, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total debt, principal amount | $ 49,946 | $ 49,946 | $ 50,356 | ||
Variable Interest Entity, Primary Beneficiary | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Transfers | 1,000 | $ 800 | 1,900 | $ 1,400 | |
Total debt, principal amount | $ 3,600 | $ 3,600 | $ 3,100 |
FINANCIAL SERVICES - Financing
FINANCIAL SERVICES - Financing Receivable Sales Additional Information (Details) - USD ($) $ in Millions | 6 Months Ended | |
Aug. 04, 2017 | Jul. 29, 2016 | |
Receivables [Abstract] | ||
Financing receivables sold | $ 228 | $ 98 |
DEBT - Outstanding debt (Detail
DEBT - Outstanding debt (Details) - USD ($) $ in Millions | Aug. 04, 2017 | Feb. 03, 2017 | Sep. 07, 2016 |
Debt Instrument [Line Items] | |||
Total debt, principal amount | $ 49,946 | $ 50,356 | |
Unamortized discount, net of unamortized premium | (281) | (284) | |
Debt issuance costs | (605) | (682) | |
Total debt, carrying value | 49,060 | 49,390 | |
Total short-term debt, carrying value | 7,686 | 6,329 | |
Total long-term debt, carrying value | 41,374 | 43,061 | |
Structured financing debt | |||
Debt Instrument [Line Items] | |||
Total debt, principal amount | 4,050 | ||
3.56% Margin Loan Facility due April 2022 | |||
Debt Instrument [Line Items] | |||
Total debt, principal amount | 2,000 | ||
2.99% VMware Note Bridge Facility due September 2017 | |||
Debt Instrument [Line Items] | |||
Total debt, principal amount | 1,500 | ||
Secured Debt | Structured financing debt | |||
Debt Instrument [Line Items] | |||
Total debt, principal amount | 4,050 | 3,464 | |
Secured Debt | 3.74% Term Loan B Facility due September 2023 | |||
Debt Instrument [Line Items] | |||
Total debt, principal amount | $ 5,460 | 4,987 | |
Interest rate at period end, credit facilities | 3.74% | ||
Secured Debt | 3.24% Term Loan A-1 Facility due December 2018 | |||
Debt Instrument [Line Items] | |||
Total debt, principal amount | $ 69 | 600 | |
Interest rate at period end, credit facilities | 3.24% | ||
Secured Debt | 3.49% Term Loan A-2 Facility due September 2021 | |||
Debt Instrument [Line Items] | |||
Total debt, principal amount | $ 3,778 | 3,876 | |
Interest rate at period end, credit facilities | 3.49% | ||
Secured Debt | 3.24% Term Loan A-3 Facility due December 2018 | |||
Debt Instrument [Line Items] | |||
Total debt, principal amount | $ 1,800 | 1,800 | |
Interest rate at period end, credit facilities | 3.24% | ||
Secured Debt | 2.78% Revolving Credit Facility due September 2021 | |||
Debt Instrument [Line Items] | |||
Total debt, principal amount | $ 0 | 375 | |
Interest rate at period end, credit facilities | 2.78% | ||
Secured Debt | 3.48% due June 2019 | |||
Debt Instrument [Line Items] | |||
Total debt, principal amount | $ 3,750 | 3,750 | |
Stated interest rate, long-term debt | 3.48% | ||
Secured Debt | 4.42% due June 2021 | |||
Debt Instrument [Line Items] | |||
Total debt, principal amount | $ 4,500 | 4,500 | |
Stated interest rate, long-term debt | 4.42% | ||
Secured Debt | 5.45% due June 2023 | |||
Debt Instrument [Line Items] | |||
Total debt, principal amount | $ 3,750 | 3,750 | |
Stated interest rate, long-term debt | 5.45% | ||
Secured Debt | 6.02% due June 2026 | |||
Debt Instrument [Line Items] | |||
Total debt, principal amount | $ 4,500 | 4,500 | |
Stated interest rate, long-term debt | 6.02% | ||
Secured Debt | 8.10% due June 2036 | |||
Debt Instrument [Line Items] | |||
Total debt, principal amount | $ 1,500 | 1,500 | |
Stated interest rate, long-term debt | 8.10% | ||
Secured Debt | 8.35% due June 2046 | |||
Debt Instrument [Line Items] | |||
Total debt, principal amount | $ 2,000 | 2,000 | |
Stated interest rate, long-term debt | 8.35% | ||
Unsecured Debt | 5.65% due April 2018 | |||
Debt Instrument [Line Items] | |||
Total debt, principal amount | $ 500 | 500 | |
Stated interest rate, long-term debt | 5.65% | ||
Unsecured Debt | 5.875% due June 2019 | |||
Debt Instrument [Line Items] | |||
Total debt, principal amount | $ 600 | 600 | |
Stated interest rate, long-term debt | 5.875% | ||
Unsecured Debt | 4.625% due April 2021 | |||
Debt Instrument [Line Items] | |||
Total debt, principal amount | $ 400 | 400 | |
Stated interest rate, long-term debt | 4.625% | ||
Unsecured Debt | 7.10% due April 2028 | |||
Debt Instrument [Line Items] | |||
Total debt, principal amount | $ 300 | 300 | |
Stated interest rate, long-term debt | 7.10% | ||
Unsecured Debt | 6.50% due April 2038 | |||
Debt Instrument [Line Items] | |||
Total debt, principal amount | $ 388 | 388 | |
Stated interest rate, long-term debt | 6.50% | ||
Unsecured Debt | 5.40% due September 2040 | |||
Debt Instrument [Line Items] | |||
Total debt, principal amount | $ 265 | 265 | |
Stated interest rate, long-term debt | 5.40% | ||
Unsecured Debt | 5.875% due June 2021 | |||
Debt Instrument [Line Items] | |||
Total debt, principal amount | $ 1,625 | 1,625 | |
Stated interest rate, long-term debt | 5.875% | ||
Unsecured Debt | 7.125% due June 2024 | |||
Debt Instrument [Line Items] | |||
Total debt, principal amount | $ 1,625 | 1,625 | |
Stated interest rate, long-term debt | 7.125% | ||
Unsecured Debt | 1.875% due June 2018 | |||
Debt Instrument [Line Items] | |||
Total debt, principal amount | $ 2,500 | 2,500 | $ 2,500 |
Stated interest rate, long-term debt | 1.875% | 1.875% | |
Unsecured Debt | 2.650% due June 2020 | |||
Debt Instrument [Line Items] | |||
Total debt, principal amount | $ 2,000 | 2,000 | $ 2,000 |
Stated interest rate, long-term debt | 2.65% | 2.65% | |
Unsecured Debt | 3.375% due June 2023 | |||
Debt Instrument [Line Items] | |||
Total debt, principal amount | $ 1,000 | 1,000 | $ 1,000 |
Stated interest rate, long-term debt | 3.375% | 3.375% | |
Other | 3.56% Margin Loan Facility due April 2022 | |||
Debt Instrument [Line Items] | |||
Total debt, principal amount | $ 2,000 | 0 | |
Interest rate at period end, credit facilities | 3.56% | ||
Other | 2.53% Margin Bridge Facility due September 2017 | |||
Debt Instrument [Line Items] | |||
Total debt, principal amount | $ 0 | 2,500 | |
Interest rate at period end, credit facilities | 2.53% | ||
Other | 2.99% VMware Note Bridge Facility due September 2017 | |||
Debt Instrument [Line Items] | |||
Total debt, principal amount | $ 1,500 | 1,500 | |
Interest rate at period end, credit facilities | 2.99% | ||
Other | |||
Debt Instrument [Line Items] | |||
Total debt, principal amount | $ 86 | $ 51 |
DEBT - Aggregate future maturit
DEBT - Aggregate future maturities (Details) - USD ($) $ in Millions | Aug. 04, 2017 | Feb. 03, 2017 |
Total maturities, principal amount | ||
2018 (remaining six months) | $ 3,296 | |
2,019 | 7,006 | |
2,020 | 5,225 | |
2,021 | 2,480 | |
2,022 | 9,357 | |
Thereafter | 22,582 | |
Total debt, principal amount | 49,946 | $ 50,356 |
Associated carrying value adjustments | ||
2018 (remaining six months) | (3) | |
2,019 | (29) | |
2,020 | (45) | |
2,021 | (1) | |
2,022 | (217) | |
Thereafter | (591) | |
Total | (886) | |
Total maturities, carrying value amount | ||
2018 (remaining six months) | 3,293 | |
2,019 | 6,977 | |
2,020 | 5,180 | |
2,021 | 2,479 | |
2,022 | 9,140 | |
Thereafter | 21,991 | |
Total debt, carrying value | 49,060 | $ 49,390 |
Structured Financing Debt | ||
Total maturities, principal amount | ||
2018 (remaining six months) | 1,653 | |
2,019 | 1,827 | |
2,020 | 422 | |
2,021 | 117 | |
2,022 | 30 | |
Thereafter | 1 | |
Total debt, principal amount | 4,050 | |
Senior Secured Credit Facilities and First Lien Notes | ||
Total maturities, principal amount | ||
2018 (remaining six months) | 125 | |
2,019 | 2,169 | |
2,020 | 4,198 | |
2,021 | 336 | |
2,022 | 7,302 | |
Thereafter | 16,977 | |
Total debt, principal amount | 31,107 | |
Unsecured Notes and Debentures | ||
Total maturities, principal amount | ||
2018 (remaining six months) | 0 | |
2,019 | 500 | |
2,020 | 600 | |
2,021 | 0 | |
2,022 | 400 | |
Thereafter | 953 | |
Total debt, principal amount | 2,453 | |
Senior Notes and EMC Notes | ||
Total maturities, principal amount | ||
2018 (remaining six months) | 0 | |
2,019 | 2,500 | |
2,020 | 0 | |
2,021 | 2,000 | |
2,022 | 1,625 | |
Thereafter | 2,625 | |
Total debt, principal amount | 8,750 | |
Margin Loan Facility | ||
Total maturities, principal amount | ||
2018 (remaining six months) | 0 | |
2,019 | 0 | |
2,020 | 0 | |
2,021 | 0 | |
2,022 | 0 | |
Thereafter | 2,000 | |
Total debt, principal amount | 2,000 | |
Bridge Facility | ||
Total maturities, principal amount | ||
2018 (remaining six months) | 1,500 | |
2,019 | 0 | |
2,020 | 0 | |
2,021 | 0 | |
2,022 | 0 | |
Thereafter | ||
Total debt, principal amount | 1,500 | |
Other | ||
Total maturities, principal amount | ||
2018 (remaining six months) | 18 | |
2,019 | 10 | |
2,020 | 5 | |
2,021 | 27 | |
2,022 | 0 | |
Thereafter | 26 | |
Total debt, principal amount | $ 86 |
DEBT - Additional Information (
DEBT - Additional Information (Details) - USD ($) | Sep. 07, 2016 | Jun. 01, 2016 | May 05, 2017 | Aug. 04, 2017 | Feb. 03, 2017 | Jun. 22, 2016 |
Debt Instrument [Line Items] | ||||||
Total debt, principal amount | $ 49,946,000,000 | $ 50,356,000,000 | ||||
3.56% Margin Loan Facility due April 2022 | ||||||
Debt Instrument [Line Items] | ||||||
Total debt, principal amount | 2,000,000,000 | |||||
2.99% VMware Note Bridge Facility due September 2017 | ||||||
Debt Instrument [Line Items] | ||||||
Total debt, principal amount | 1,500,000,000 | |||||
Structured financing debt | ||||||
Debt Instrument [Line Items] | ||||||
Total debt, principal amount | 4,050,000,000 | |||||
Secured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Debt, stated amount | $ 20,000,000,000 | |||||
Debt, maximum period for registration | 5 years | |||||
Secured Debt | 3.74% Term Loan B Facility due September 2023 | ||||||
Debt Instrument [Line Items] | ||||||
Increase in outstanding principal | 500,000,000 | |||||
Total debt, principal amount | 5,460,000,000 | 4,987,000,000 | ||||
Secured Debt | Term Loan Facilities [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Repayments of credit facility | 600,000,000 | |||||
Secured Debt | 2.78% Revolving Credit Facility due September 2021 | ||||||
Debt Instrument [Line Items] | ||||||
Repayments of credit facility | 400,000,000 | |||||
Debt instrument, collateral, percent of capital stock of borrowers | 100.00% | |||||
Total debt, principal amount | 0 | 375,000,000 | ||||
Secured Debt | 3.49% Term Loan A-2 Facility due September 2021 | ||||||
Debt Instrument [Line Items] | ||||||
Total debt, principal amount | 3,778,000,000 | 3,876,000,000 | ||||
Secured Debt | Structured financing debt | ||||||
Debt Instrument [Line Items] | ||||||
Proceeds from credit facility | 600,000,000 | |||||
Total debt, principal amount | 4,050,000,000 | 3,464,000,000 | ||||
Other | 2.53% Margin Bridge Facility due September 2017 | ||||||
Debt Instrument [Line Items] | ||||||
Repayments of credit facility | 500,000,000 | |||||
Maximum borrowing capacity | $ 2,500,000,000 | |||||
Total debt, principal amount | 0 | 2,500,000,000 | ||||
Other | 3.56% Margin Loan Facility due April 2022 | ||||||
Debt Instrument [Line Items] | ||||||
Proceeds from credit facility | $ 2,000,000,000 | |||||
Total debt, principal amount | $ 2,000,000,000 | 0 | ||||
Other | 3.56% Margin Loan Facility due April 2022 | Base Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1.25% | |||||
Other | 3.56% Margin Loan Facility due April 2022 | LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 2.25% | |||||
Other | Senior Secured Credit Facilities | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | 400,000,000 | |||||
Other | 2.99% VMware Note Bridge Facility due September 2017 | ||||||
Debt Instrument [Line Items] | ||||||
Debt, stated amount | 1,500,000,000 | |||||
Total debt, principal amount | $ 1,500,000,000 | 1,500,000,000 | ||||
Debt collateral | $ 1,500,000,000 | |||||
Other | 2.99% VMware Note Bridge Facility due September 2017 | Base Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 0.75% | |||||
Other | 2.99% VMware Note Bridge Facility due September 2017 | LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Required prepayment from net cash proceeds from sale of certain asset sales or dispositions | 100.00% | |||||
Basis spread on variable rate | 1.75% | |||||
Unsecured Notes and Debentures | ||||||
Debt Instrument [Line Items] | ||||||
Debt, stated amount | $ 3,250,000,000 | |||||
Unsecured Notes and Debentures | 1.875% due June 2018 | ||||||
Debt Instrument [Line Items] | ||||||
Total debt, principal amount | $ 2,500,000,000 | $ 2,500,000,000 | 2,500,000,000 | |||
Interest rate | 1.875% | 1.875% | ||||
Unsecured Notes and Debentures | 2.650% due June 2020 | ||||||
Debt Instrument [Line Items] | ||||||
Total debt, principal amount | $ 2,000,000,000 | $ 2,000,000,000 | 2,000,000,000 | |||
Interest rate | 2.65% | 2.65% | ||||
Unsecured Notes and Debentures | 3.375% due June 2023 | ||||||
Debt Instrument [Line Items] | ||||||
Total debt, principal amount | $ 1,000,000,000 | $ 1,000,000,000 | $ 1,000,000,000 | |||
Interest rate | 3.375% | 3.375% | ||||
Line of Credit | 3.74% Term Loan B Facility due September 2023 | ||||||
Debt Instrument [Line Items] | ||||||
Annual principal amortization | 1.00% | |||||
Required prepayment from net cash proceeds from sale of certain asset sales or dispositions | 100.00% | |||||
Line of Credit | 3.74% Term Loan B Facility due September 2023 | Base Rate | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate floor | 1.75% | |||||
Line of Credit | 3.74% Term Loan B Facility due September 2023 | LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Increase (decrease) in interest rate margin | 0.75% | |||||
Interest rate floor | 0.75% | |||||
Line of Credit | Senior Secured Credit Facilities | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 17,600,000,000 | |||||
Line of Credit | 2.78% Revolving Credit Facility due September 2021 | ||||||
Debt Instrument [Line Items] | ||||||
Available borrowing capacity | $ 3,100,000,000 | |||||
Line of Credit | 2.78% Revolving Credit Facility due September 2021 | Base Rate | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate floor | 0.00% | |||||
Line of Credit | 2.78% Revolving Credit Facility due September 2021 | LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate floor | 0.00% | |||||
Line of Credit | 3.49% Term Loan A-2 Facility due September 2021 | ||||||
Debt Instrument [Line Items] | ||||||
Annual principal amortization | 5.00% | |||||
Annual principal amortization, years three and four | 10.00% | |||||
Annual principal amortization, year five | 70.00% | |||||
Letter of Credit | Senior Secured Credit Facilities | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 500,000,000 | |||||
Class B common stock | Other | 3.56% Margin Loan Facility due April 2022 | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, collateral (in shares) | 60,000,000 | |||||
Class A common stock | Other | 3.56% Margin Loan Facility due April 2022 | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, collateral (in shares) | 20,000,000 |
DERIVATIVE INSTRUMENTS AND HE72
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Notional Amounts of Outstanding Derivative Instruments (Details) - USD ($) $ in Millions | Aug. 04, 2017 | Feb. 03, 2017 |
Foreign exchange contracts: | ||
Derivative [Line Items] | ||
Notional amount | $ 10,782 | $ 8,927 |
Foreign exchange contracts: | Designated as cash flow hedging instruments | ||
Derivative [Line Items] | ||
Notional amount | 4,181 | 3,781 |
Foreign exchange contracts: | Non-designated as hedging instruments | ||
Derivative [Line Items] | ||
Notional amount | 6,601 | 5,146 |
Interest rate contracts: | Non-designated as hedging instruments | ||
Derivative [Line Items] | ||
Notional amount | $ 1,519 | $ 1,251 |
DERIVATIVE INSTRUMENTS AND HE73
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Effect of Derivative Instruments on the Condensed Consolidated Statements of Financial Position and the Condensed Consolidated Statements of Income (Loss) (Details) - Derivatives in Cash Flow Hedging Relationships - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 04, 2017 | Jul. 29, 2016 | Aug. 04, 2017 | Jul. 29, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Recognized in Accumulated OCI, Net of Tax, on Derivatives (Effective Portion) | $ (141) | $ 58 | $ (157) | $ (107) |
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | (70) | (27) | (49) | (80) |
Gain (Loss) Recognized in Income on Derivative (Ineffective Portion) | 0 | 0 | (1) | |
Foreign exchange contracts: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Recognized in Accumulated OCI, Net of Tax, on Derivatives (Effective Portion) | (141) | 58 | (157) | (107) |
Foreign exchange contracts: | Total net revenue | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | (49) | (21) | (32) | (66) |
Foreign exchange contracts: | Total cost of net revenue | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | (21) | (6) | (17) | (14) |
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 | $ 0 | $ (1) |
DERIVATIVE INSTRUMENTS AND HE74
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Fair Value of Derivative Instruments in the Condensed Consolidated Statements of Financial Position (Details) - USD ($) $ in Millions | Aug. 04, 2017 | Feb. 03, 2017 |
Derivatives, Fair Value [Line Items] | ||
Derivative asset, asset position | $ 298 | $ 403 |
Derivative liability, liability position | (353) | (262) |
Gross Amounts of Recognized Assets/ (Liabilities) | (55) | 141 |
Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts of Recognized Assets/ (Liabilities) | 116 | 200 |
Other Non- Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts of Recognized Assets/ (Liabilities) | 9 | 5 |
Other Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts of Recognized Assets/ (Liabilities) | (180) | (61) |
Other Non-Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts of Recognized Assets/ (Liabilities) | 0 | (3) |
Designated as cash flow hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts of Recognized Assets/ (Liabilities) | (38) | 33 |
Designated as cash flow hedging instruments | Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts of Recognized Assets/ (Liabilities) | (4) | 22 |
Designated as cash flow hedging instruments | Other Non- Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts of Recognized Assets/ (Liabilities) | 0 | 0 |
Designated as cash flow hedging instruments | Other Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts of Recognized Assets/ (Liabilities) | (34) | 11 |
Designated as cash flow hedging instruments | Other Non-Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts of Recognized Assets/ (Liabilities) | 0 | 0 |
Designated as cash flow hedging instruments | Foreign exchange contracts: | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, asset position | 42 | 58 |
Derivative liability, liability position | (80) | (25) |
Designated as cash flow hedging instruments | Foreign exchange contracts: | Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, asset position | 19 | 41 |
Derivative liability, liability position | (23) | (19) |
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 liability, liability position | 0 | 0 |
Designated as cash flow hedging instruments | Foreign exchange contracts: | Other Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, asset position | 23 | 17 |
Derivative liability, liability position | (57) | (6) |
Designated as cash flow hedging instruments | Foreign exchange contracts: | Other Non-Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, asset position | 0 | 0 |
Derivative liability, liability position | 0 | 0 |
Non-designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts of Recognized Assets/ (Liabilities) | (17) | 108 |
Non-designated as hedging instruments | Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts of Recognized Assets/ (Liabilities) | 120 | 178 |
Non-designated as hedging instruments | Other Non- Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts of Recognized Assets/ (Liabilities) | 9 | 5 |
Non-designated as hedging instruments | Other Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts of Recognized Assets/ (Liabilities) | (146) | (72) |
Non-designated as hedging instruments | Other Non-Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts of Recognized Assets/ (Liabilities) | 0 | (3) |
Non-designated as hedging instruments | Foreign exchange contracts: | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, asset position | 249 | 342 |
Derivative liability, liability position | (273) | (234) |
Non-designated as hedging instruments | Foreign exchange contracts: | Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, asset position | 179 | 309 |
Derivative liability, liability position | (59) | (131) |
Non-designated as hedging instruments | Foreign exchange contracts: | Other Non- Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, asset position | 2 | 2 |
Derivative liability, liability position | 0 | 0 |
Non-designated as hedging instruments | Foreign exchange contracts: | Other Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, asset position | 68 | 31 |
Derivative liability, liability position | (214) | (103) |
Non-designated as hedging instruments | Foreign exchange contracts: | Other Non-Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, asset position | 0 | 0 |
Derivative liability, liability position | 0 | 0 |
Non-designated as hedging instruments | Interest rate contracts: | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, asset position | 7 | 3 |
Derivative liability, liability position | 0 | (3) |
Non-designated as hedging instruments | Interest rate contracts: | Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, asset position | 0 | 0 |
Derivative liability, 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 | 7 | 3 |
Derivative liability, liability position | 0 | 0 |
Non-designated as hedging instruments | Interest rate contracts: | Other Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, 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 asset, asset position | 0 | 0 |
Derivative liability, liability position | $ 0 | $ (3) |
DERIVATIVE INSTRUMENTS AND HE75
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Gross amounts of derivative instruments, amounts offset due to master netting agreements (Details) - USD ($) $ in Millions | Aug. 04, 2017 | Feb. 03, 2017 |
Financial assets | ||
Gross Amounts of Recognized Assets/ (Liabilities) | $ 298 | $ 403 |
Gross Amounts Offset in the Statement of Financial Position | (173) | (198) |
Net Amounts of Assets/ (Liabilities) Presented in the Statement of Financial Position | 125 | 205 |
Financial Instruments | 0 | 0 |
Cash Collateral Received or Pledged | 0 | 0 |
Net Amount | 125 | 205 |
Financial liabilities | ||
Gross Amounts of Recognized Assets/ (Liabilities) | (353) | (262) |
Gross Amounts Offset in the Statement of Financial Position | 173 | 198 |
Net Amounts of Assets/ (Liabilities) Presented in the Statement of Financial Position | (180) | (64) |
Financial Instruments | 0 | 0 |
Cash Collateral Received or Pledged | 0 | 0 |
Net Amount | (180) | (64) |
Total derivative instruments | ||
Gross Amounts of Recognized Assets/ (Liabilities) | (55) | 141 |
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 |
Net Amounts of Assets/ (Liabilities) Presented in the Statement of Financial Position | (55) | 141 |
Financial Instruments | 0 | 0 |
Cash Collateral Received or Pledged | 0 | 0 |
Net Amount | $ (55) | $ 141 |
DERIVATIVE INSTRUMENTS AND HE76
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Additional Information (Details) | 6 Months Ended |
Aug. 04, 2017 | |
Foreign Exchange Forward | Designated as cash flow hedging instruments | |
Derivative [Line Items] | |
Term of derivative contract | 12 months |
Foreign Exchange Forward, Monetary Assets and Liabilities | Non-designated as hedging instruments | |
Derivative [Line Items] | |
Term of derivative contract | 3 months |
Foreign Exchange Forward, Monetary Assets and Liabilities | Non-designated as hedging instruments | Financing Receivables | |
Derivative [Line Items] | |
Term of derivative contract | 3 years |
Interest Rate Swap | Non-designated as hedging instruments | |
Derivative [Line Items] | |
Term of derivative contract | 3 years |
Interest Rate Swap | Non-designated as hedging instruments | Structured Financing Debt | |
Derivative [Line Items] | |
Term of derivative contract | 3 years |
Cross Currency Interest Rate Contract | Non-designated as hedging instruments | |
Derivative [Line Items] | |
Term of derivative contract | 5 years |
GOODWILL AND INTANGIBLE ASSET77
GOODWILL AND INTANGIBLE ASSETS - Roll Forward of Goodwill Allocated to Business Segments (Details) $ in Millions | 6 Months Ended |
Aug. 04, 2017USD ($) | |
Goodwill [Roll Forward] | |
Balances at beginning of period | $ 38,910 |
Goodwill acquired during the period | 247 |
Goodwill divested | (13) |
Impact of foreign currency translation | 263 |
Balances at end of period | 39,407 |
Operating segments | Client Solutions Group | |
Goodwill [Roll Forward] | |
Balances at beginning of period | 4,237 |
Goodwill acquired during the period | 0 |
Goodwill divested | 0 |
Impact of foreign currency translation | 0 |
Balances at end of period | 4,237 |
Operating segments | Infrastructure Solutions Group | |
Goodwill [Roll Forward] | |
Balances at beginning of period | 15,607 |
Goodwill acquired during the period | 0 |
Goodwill divested | (13) |
Impact of foreign currency translation | 220 |
Balances at end of period | 15,814 |
Operating segments | VMware | |
Goodwill [Roll Forward] | |
Balances at beginning of period | 15,070 |
Goodwill acquired during the period | 238 |
Goodwill divested | 0 |
Impact of foreign currency translation | 0 |
Balances at end of period | 15,308 |
Operating segments | Other businesses | |
Goodwill [Roll Forward] | |
Balances at beginning of period | 3,996 |
Goodwill acquired during the period | 9 |
Goodwill divested | 0 |
Impact of foreign currency translation | 43 |
Balances at end of period | $ 4,048 |
GOODWILL AND INTANGIBLE ASSET78
GOODWILL AND INTANGIBLE ASSETS - Schedule of Intangible Assets (Details) - USD ($) $ in Millions | Aug. 04, 2017 | Feb. 03, 2017 |
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross | $ 39,607 | $ 38,673 |
Accumulated Amortization | (11,782) | (8,264) |
Net | 27,825 | 30,409 |
Total intangible assets | ||
Gross | 43,362 | 43,317 |
Accumulated Amortization | (11,782) | (8,264) |
Net | 31,580 | 35,053 |
In-process research and development | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | 0 | 890 |
Trade names | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | 3,755 | 3,754 |
Customer relationships | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross | 22,715 | 22,708 |
Accumulated Amortization | (7,095) | (5,552) |
Net | 15,620 | 17,156 |
Total intangible assets | ||
Accumulated Amortization | (7,095) | (5,552) |
Developed technology | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross | 15,494 | 14,569 |
Accumulated Amortization | (4,375) | (2,510) |
Net | 11,119 | 12,059 |
Total intangible assets | ||
Accumulated Amortization | (4,375) | (2,510) |
Trade names | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross | 1,270 | 1,268 |
Accumulated Amortization | (308) | (201) |
Net | 962 | 1,067 |
Total intangible assets | ||
Accumulated Amortization | (308) | (201) |
Leasehold assets | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross | 128 | 128 |
Accumulated Amortization | (4) | (1) |
Net | 124 | 127 |
Total intangible assets | ||
Accumulated Amortization | $ (4) | $ (1) |
GOODWILL AND INTANGIBLE ASSET79
GOODWILL AND INTANGIBLE ASSETS - Schedule of Estimated Future Annual Pre-Tax Amortization Expense of Definite-Lived Intangible Assets (Details) - USD ($) $ in Millions | Aug. 04, 2017 | Feb. 03, 2017 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2018 (remaining six months) | $ 3,463 | |
2,019 | 6,059 | |
2,020 | 4,274 | |
2,021 | 3,333 | |
2,022 | 2,616 | |
Thereafter | 8,080 | |
Net | $ 27,825 | $ 30,409 |
GOODWILL AND INTANGIBLE ASSET80
GOODWILL AND INTANGIBLE ASSETS - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Aug. 04, 2017 | Jul. 29, 2016 | Aug. 04, 2017 | Jul. 29, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Goodwill impairment | $ 0 | $ 0 | $ 0 | $ 0 |
Indefinite-lived intangible asset impairment | 0 | 0 | 0 | 0 |
Accumulated goodwill impairment charges | 0 | 0 | ||
Impairment of intangible assets | 0 | 0 | 0 | 0 |
Amortization of intangible assets | $ 1,740,000,000 | $ 491,000,000 | $ 3,516,000,000 | $ 982,000,000 |
WARRANTY LIABILITY - Changes in
WARRANTY LIABILITY - Changes in the Company's liabilities for standard limited warranties (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Aug. 04, 2017 | Jul. 29, 2016 | Aug. 04, 2017 | Jul. 29, 2016 | Feb. 03, 2017 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | |||||
Warranty liability at beginning of period | $ 607 | $ 561 | $ 604 | $ 574 | |
Costs accrued for new warranty contracts and changes in estimates for pre-existing warranties | 223 | 182 | 463 | 382 | |
Service obligations honored | (242) | (178) | (479) | (391) | |
Warranty liability at end of period | 588 | 565 | 588 | 565 | |
Current portion | 412 | 385 | 412 | 385 | |
Non-current portion | $ 176 | $ 180 | $ 176 | $ 180 | $ 199 |
SEVERANCE CHARGES - Schedule of
SEVERANCE CHARGES - Schedule of Activity Related to Severance Liability (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 04, 2017 | Jul. 29, 2016 | Aug. 04, 2017 | Jul. 29, 2016 | |
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | $ 257 | $ 29 | $ 416 | $ 26 |
Severance charges to provision | 14 | 9 | 44 | 26 |
Cash paid and other | (85) | (16) | (274) | (30) |
Ending balance | $ 186 | $ 22 | $ 186 | $ 22 |
SEVERANCE CHARGES - Allocation
SEVERANCE CHARGES - Allocation of Severance Costs (Details) - Employee Severance - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 04, 2017 | Jul. 29, 2016 | Aug. 04, 2017 | Jul. 29, 2016 | |
Restructuring Cost and Reserve [Line Items] | ||||
Severance charges | $ 14 | $ 9 | $ 44 | $ 26 |
Cost of net revenue | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance charges | (1) | 1 | 4 | 5 |
Selling, general, and administrative | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance charges | 7 | 6 | 14 | 13 |
Research and development | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance charges | $ 8 | $ 2 | $ 26 | $ 8 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Additional Information (Details) $ / shares in Units, $ in Millions | May 02, 2017claim | Oct. 25, 2016claim | Dec. 07, 2015plaintiffclaim | Aug. 04, 2017USD ($)$ / shares | Feb. 03, 2017USD ($) | Jan. 26, 2016claim | Oct. 29, 2013$ / sharesshares |
Loss Contingencies [Line Items] | |||||||
Purchase obligation fiscal 2018 (remaining six months) | $ 2,724 | ||||||
Purchase obligation fiscal 2019 | 267 | ||||||
Purchase obligation fiscal 2020 | $ 448 | ||||||
EMC Merger Litigation | |||||||
Loss Contingencies [Line Items] | |||||||
Number of claims dismissed | claim | 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 claims dismissed | claim | 4 | 9 | |||||
Number of plaintiffs appealed judgment dismissing complaints | plaintiff | 3 | ||||||
Appraisal Proceedings | Dell Inc. | |||||||
Loss Contingencies [Line Items] | |||||||
Cash consideration (in dollars per share) | $ / shares | $ 13.75 | ||||||
Appraisal Proceedings | Pending Litigation | |||||||
Loss Contingencies [Line Items] | |||||||
Liability | $ 129 | $ 129 | |||||
Fair value, appraisal proceeding (in dollars per share) | $ / shares | $ 17.62 | ||||||
Number of shares subject to appraisal demands | shares | 5,505,730 |
INCOME AND OTHER TAXES - Additi
INCOME AND OTHER TAXES - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Aug. 04, 2017 | Jul. 29, 2016 | Aug. 04, 2017 | Jul. 29, 2016 | Feb. 03, 2017 | |
Income Tax Disclosure [Abstract] | |||||
Effective income tax rate | 35.80% | 7.10% | 34.40% | (7.20%) | |
Pre-tax losses from continuing operations | $ 1,524 | $ 282 | $ 3,597 | $ 640 | |
U.S federal statutory rate | 35.00% | 35.00% | |||
Unrecognized tax benefits including penalties and interest | $ 3,200 | $ 3,200 | $ 3,100 |
ACCUMULATED OTHER COMPREHENSI86
ACCUMULATED OTHER COMPREHENSIVE LOSS - Components of Accumulated Other Comprehensive Loss, Net of Tax (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 04, 2017 | Jul. 29, 2016 | Aug. 04, 2017 | Jul. 29, 2016 | |
AOCI [Roll Forward] | ||||
Balance, beginning of period | $ 19,009 | $ 1,466 | ||
Total other comprehensive income (loss), net of tax expense (benefit) of $0 and $(6), respectively, and $15 and $5, respectively | $ 347 | $ 48 | 392 | 16 |
Balance, end of period | 16,936 | 2,191 | 16,936 | 2,191 |
Foreign Currency Translation Adjustments | ||||
AOCI [Roll Forward] | ||||
Balance, beginning of period | (612) | |||
Balance, end of period | (162) | (162) | ||
Foreign Currency Translation Adjustments Including Portion Attributable to Noncontrolling Interest [Member] | ||||
AOCI [Roll Forward] | ||||
Other comprehensive income (loss) before reclassifications | 450 | |||
Amounts reclassified from accumulated other comprehensive loss | 0 | |||
Total other comprehensive income (loss), net of tax expense (benefit) of $0 and $(6), respectively, and $15 and $5, respectively | 450 | |||
Foreign Currency Translation Adjustments Attributable to Noncontrolling Interest | ||||
AOCI [Roll Forward] | ||||
Total other comprehensive income (loss), net of tax expense (benefit) of $0 and $(6), respectively, and $15 and $5, respectively | 0 | |||
Investments | ||||
AOCI [Roll Forward] | ||||
Balance, beginning of period | (13) | |||
Balance, end of period | 33 | 33 | ||
Investments Including Portion Attributable to Noncontrolling Interest | ||||
AOCI [Roll Forward] | ||||
Other comprehensive income (loss) before reclassifications | 47 | |||
Amounts reclassified from accumulated other comprehensive loss | 3 | |||
Total other comprehensive income (loss), net of tax expense (benefit) of $0 and $(6), respectively, and $15 and $5, respectively | 50 | |||
Investments Attributable to Noncontrolling Interests | ||||
AOCI [Roll Forward] | ||||
Total other comprehensive income (loss), net of tax expense (benefit) of $0 and $(6), respectively, and $15 and $5, respectively | 4 | |||
Cash Flow Hedges | ||||
AOCI [Roll Forward] | ||||
Balance, beginning of period | 11 | |||
Balance, end of period | (97) | (97) | ||
Cash Flow Hedges Including Portion Attributable to Noncontrolling Interests | ||||
AOCI [Roll Forward] | ||||
Other comprehensive income (loss) before reclassifications | (157) | |||
Amounts reclassified from accumulated other comprehensive loss | 49 | |||
Total other comprehensive income (loss), net of tax expense (benefit) of $0 and $(6), respectively, and $15 and $5, respectively | (108) | |||
Cash Flow Hedges Attributable to Noncontrolling Interests | ||||
AOCI [Roll Forward] | ||||
Total other comprehensive income (loss), net of tax expense (benefit) of $0 and $(6), respectively, and $15 and $5, respectively | 0 | |||
Pension and Other Postretirement Plans | ||||
AOCI [Roll Forward] | ||||
Balance, beginning of period | 19 | |||
Balance, end of period | 19 | 19 | ||
Pension and Other Postretirement Plans Including Portion Attributable to Noncontrolling Interest | ||||
AOCI [Roll Forward] | ||||
Other comprehensive income (loss) before reclassifications | 0 | |||
Amounts reclassified from accumulated other comprehensive loss | 0 | |||
Total other comprehensive income (loss), net of tax expense (benefit) of $0 and $(6), respectively, and $15 and $5, respectively | 0 | |||
Pension and Other Postretirement Plans Attributable to Noncontrolling Interests | ||||
AOCI [Roll Forward] | ||||
Total other comprehensive income (loss), net of tax expense (benefit) of $0 and $(6), respectively, and $15 and $5, respectively | 0 | |||
Accumulated Other Comprehensive Loss | ||||
AOCI [Roll Forward] | ||||
Balance, beginning of period | (595) | (324) | ||
Balance, end of period | (207) | (308) | (207) | (308) |
Accumulated Other Comprehensive Loss Including Portion Attributable to Noncontrolling Interest | ||||
AOCI [Roll Forward] | ||||
Other comprehensive income (loss) before reclassifications | 340 | |||
Amounts reclassified from accumulated other comprehensive loss | 52 | |||
Total other comprehensive income (loss), net of tax expense (benefit) of $0 and $(6), respectively, and $15 and $5, respectively | 392 | |||
Accumulated Other Comprehensive Loss Attributable to Noncontrolling Interest | ||||
AOCI [Roll Forward] | ||||
Balance, beginning of period | 5,766 | 0 | ||
Total other comprehensive income (loss), net of tax expense (benefit) of $0 and $(6), respectively, and $15 and $5, respectively | 4 | |||
Balance, end of period | $ 5,989 | $ 126 | $ 5,989 | $ 126 |
ACCUMULATED OTHER COMPREHENSI87
ACCUMULATED OTHER COMPREHENSIVE LOSS - Reclassifications Out of Accumulated Other Comprehensive Loss, Net of Tax, to Net Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 04, 2017 | Jul. 29, 2016 | Aug. 04, 2017 | Jul. 29, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Cost of net revenue | $ (14,490) | $ (10,744) | $ (28,004) | $ (20,792) |
Interest and other, net | (545) | (349) | (1,118) | (568) |
Net income (loss) | (978) | 572 | (2,361) | 627 |
Amounts reclassified from accumulated other comprehensive loss | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Net revenue | (49) | (21) | (32) | (66) |
Cost of net revenue | (21) | (6) | (17) | (14) |
Interest and other, net | (2) | 0 | (3) | (1) |
Net income (loss) | (72) | (27) | (52) | (81) |
Amounts reclassified from accumulated other comprehensive loss | Investments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Net revenue | 0 | 0 | 0 | 0 |
Cost of net revenue | 0 | 0 | 0 | 0 |
Interest and other, net | (2) | 0 | (3) | 0 |
Net income (loss) | (2) | 0 | (3) | 0 |
Amounts reclassified from accumulated other comprehensive loss | Cash Flow Hedges | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Net revenue | (49) | (21) | (32) | (66) |
Cost of net revenue | (21) | (6) | (17) | (14) |
Interest and other, net | 0 | 0 | 0 | (1) |
Net income (loss) | $ (70) | $ (27) | $ (49) | $ (81) |
NON-CONTROLLING INTERESTS - Eff
NON-CONTROLLING INTERESTS - Effect of Changes in Ownership Interests of Less than Wholly Owned Subsidiaries (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 04, 2017 | Jul. 29, 2016 | Aug. 04, 2017 | Jul. 29, 2016 | |
Noncontrolling Interest [Abstract] | ||||
Net loss attributable to Dell Technologies Inc. | $ (946) | $ 573 | $ (2,280) | $ 628 |
Transfers (to) from the non-controlling interests: | ||||
Increase in Dell Technologies Inc. additional paid-in-capital for equity issuances and other equity activity | 305 | |||
Decrease in Dell Technologies Inc. additional paid-in-capital for equity issuances and other equity activity | (351) | |||
Net transfers to non-controlling interests | (46) | |||
Change from net loss attributable to Dell Technologies Inc. and transfers to/from the non-controlling interests | $ (2,326) |
NON-CONTROLLING INTERESTS - Add
NON-CONTROLLING INTERESTS - Additional Information (Details) - USD ($) $ in Millions | Aug. 04, 2017 | Feb. 03, 2017 | Jul. 29, 2016 | Jan. 29, 2016 |
Noncontrolling Interest [Line Items] | ||||
Noncontrolling interest | $ 16,936 | $ 19,009 | $ 2,191 | $ 1,466 |
Non-Controlling Interest | ||||
Noncontrolling Interest [Line Items] | ||||
Noncontrolling interest | $ 5,989 | $ 5,766 | $ 126 | $ 0 |
VMware | ||||
Noncontrolling Interest [Line Items] | ||||
Ownership percent in non-controlling interest | 81.40% | 82.50% | ||
VMware | Non-Controlling Interest | ||||
Noncontrolling Interest [Line Items] | ||||
Noncontrolling interest | $ 5,400 | $ 5,200 | ||
SecureWorks | ||||
Noncontrolling Interest [Line Items] | ||||
Ownership percent in non-controlling interest | 87.10% | 87.50% | ||
SecureWorks | Non-Controlling Interest | ||||
Noncontrolling Interest [Line Items] | ||||
Noncontrolling interest | $ 87 | $ 86 | ||
Pivotal | ||||
Noncontrolling Interest [Line Items] | ||||
Ownership percent in non-controlling interest | 77.40% | 77.80% | ||
Pivotal | Non-Controlling Interest | ||||
Noncontrolling Interest [Line Items] | ||||
Noncontrolling interest | $ 477 | $ 472 |
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 | ||
Aug. 04, 2017 | Jul. 29, 2016 | Aug. 04, 2017 | Jul. 29, 2016 | |
Numerator: Continuing operations | ||||
Net income from continuing operations - basic | $ (946) | $ (261) | $ (2,280) | $ (685) |
Income from discontinued operations, net of income taxes - basic and diluted | $ 0 | $ 834 | $ 0 | $ 1,313 |
DHI Group | ||||
Earnings (loss) per share attributable to Dell Technologies Inc. - basic: | ||||
Continuing operations (in dollars per share) | $ (1.97) | $ (0.64) | $ (4.53) | $ (1.69) |
Discontinued operations (in dollars per share) | 0 | 2.06 | 0 | 3.24 |
Earnings (loss) per share attributable to Dell Technologies Inc. - diluted: | ||||
Continuing operations (in dollars per share) | (1.97) | (0.64) | (4.54) | (1.69) |
Discontinued operations (in dollars per share) | $ 0 | $ 2.06 | $ 0 | $ 3.24 |
Numerator: Continuing operations | ||||
Net income from continuing operations - basic | $ (1,114) | $ (261) | $ (2,566) | $ (685) |
Incremental dilution from VMware | (1) | 0 | (2) | 0 |
Net income from continuing operations - diluted | $ (1,115) | $ (261) | $ (2,568) | $ (685) |
Denominator: Class V Common Stock weighted-average shares outstanding | ||||
Weighted-average shares outstanding - basic (in shares) | 566 | 405 | 566 | 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) | 566 | 405 | 566 | 405 |
Weighted-average shares outstanding - antidilutive (in shares) | 36 | 53 | 37 | 54 |
Class V Common Stock | ||||
Earnings (loss) per share attributable to Dell Technologies Inc. - basic: | ||||
Continuing operations (in dollars per share) | $ 0.83 | $ 0 | $ 1.40 | $ 0 |
Earnings (loss) per share attributable to Dell Technologies Inc. - diluted: | ||||
Continuing operations (in dollars per share) | $ 0.82 | $ 0 | $ 1.38 | $ 0 |
Numerator: Continuing operations | ||||
Net income from continuing operations - basic | $ 168 | $ 0 | $ 286 | $ 0 |
Incremental dilution from VMware | (2) | 0 | (4) | 0 |
Net income from continuing operations - diluted | $ 166 | $ 0 | $ 282 | $ 0 |
Denominator: Class V Common Stock weighted-average shares outstanding | ||||
Weighted-average shares outstanding - basic (in shares) | 203 | 0 | 205 | 0 |
Dilutive effect of options, restricted stock units, restricted stock, and other (in shares) | 0 | 0 | 0 | 0 |
Weighted-average shares outstanding - diluted (in shares) | 203 | 0 | 205 | 0 |
Weighted-average shares outstanding - antidilutive (in shares) | 0 | 0 | 0 | 0 |
EARNINGS (LOSS) PER SHARE - Rec
EARNINGS (LOSS) PER SHARE - Reconciliation of Net Income (Loss) From Continuing Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 04, 2017 | Jul. 29, 2016 | Aug. 04, 2017 | Jul. 29, 2016 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Net income from continuing operations | $ (946) | $ (261) | $ (2,280) | $ (685) |
Income from discontinued operations, net of income taxes (Note 3) | 0 | 834 | 0 | 1,313 |
Net income (loss) attributable to Dell Technologies Inc. | (946) | 573 | (2,280) | 628 |
Class V Common Stock | ||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Net income from continuing operations | 168 | 0 | 286 | 0 |
DHI Group | ||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Net income from continuing operations | $ (1,114) | $ (261) | $ (2,566) | $ (685) |
EARNINGS (LOSS) PER SHARE - Add
EARNINGS (LOSS) PER SHARE - Additional Information (Details) shares in Millions | Aug. 04, 2017common_stock_groupcommon_stock_classshares | Feb. 03, 2017shares |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Number of groups of common stock | common_stock_group | 2 | |
Shares outstanding (in shares) | 773 | 778 |
DHI Group | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Number of classes of common stock | common_stock_class | 4 | |
Class V Common Stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Shares outstanding (in shares) | 203 | 209 |
Class V Common Stock | VMware | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Shares outstanding (in shares) | 333 | |
Class V Common Stock | DHI Group Owners | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Economic ownership percentage, retained interest | 38.00% | 38.00% |
Class V Common Stock | Class V Common Stock Owners | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Economic ownership percentage | 62.00% | 62.00% |
Shares outstanding (in shares) | 203 | 209 |
CAPITALIZATION - Schedule of St
CAPITALIZATION - Schedule of Stock by Class (Details) - shares | Aug. 04, 2017 | Jun. 26, 2017 | May 05, 2017 | Feb. 03, 2017 |
Class of Stock [Line Items] | ||||
Shares authorized (in shares) | 9,143,000,000 | 9,143,025,308 | 2,143,025,308 | 2,143,000,000 |
Shares issued (in shares) | 793,000,000 | 792,000,000 | ||
Shares outstanding (in shares) | 773,000,000 | 778,000,000 | ||
Class A | ||||
Class of Stock [Line Items] | ||||
Shares authorized (in shares) | 600,000,000 | 600,000,000 | ||
Shares issued (in shares) | 410,000,000 | 410,000,000 | ||
Shares outstanding (in shares) | 410,000,000 | 410,000,000 | ||
Class B | ||||
Class of Stock [Line Items] | ||||
Shares authorized (in shares) | 200,000,000 | 200,000,000 | ||
Shares issued (in shares) | 137,000,000 | 137,000,000 | ||
Shares outstanding (in shares) | 137,000,000 | 137,000,000 | ||
Class C | ||||
Class of Stock [Line Items] | ||||
Shares authorized (in shares) | 7,900,000,000 | 7,900,000,000 | 900,000,000 | 900,000,000 |
Shares issued (in shares) | 23,000,000 | 22,000,000 | ||
Shares outstanding (in shares) | 23,000,000 | 22,000,000 | ||
Class D | ||||
Class of Stock [Line Items] | ||||
Shares authorized (in shares) | 100,000,000 | 100,000,000 | ||
Shares issued (in shares) | 0 | 0 | ||
Shares outstanding (in shares) | 0 | 0 | ||
Class V | ||||
Class of Stock [Line Items] | ||||
Shares authorized (in shares) | 343,000,000 | 343,000,000 | ||
Shares issued (in shares) | 223,000,000 | 223,000,000 | ||
Shares outstanding (in shares) | 203,000,000 | 209,000,000 |
CAPITALIZATION - Schedule of Cl
CAPITALIZATION - Schedule of Class V Activity (Details) - shares shares in Millions | 6 Months Ended | |
Aug. 04, 2017 | Feb. 03, 2017 | |
Shares Outstanding | ||
As of February 3, 2017 (in shares) | 778 | |
As of August 4, 2017 (in shares) | 773 | |
Class V | ||
Shares Outstanding | ||
As of February 3, 2017 (in shares) | 209 | |
As of August 4, 2017 (in shares) | 203 | |
Class V Common Stock Owners | Class V | ||
Shares Outstanding | ||
As of February 3, 2017 (in shares) | 209 | |
Stock repurchased (in shares) | (6) | |
As of August 4, 2017 (in shares) | 203 | |
Interest in Class V Group | 62.00% | 62.00% |
DHI Group Owners | Class V | ||
Retained Interest Outstanding | ||
As of February 3, 2017 (in shares) | 127 | |
Repurchases of Class V Common Stock | 0 | |
As of August 4, 2017 (in shares) | 127 | |
Interest in Class V Group | 38.00% | 38.00% |
CAPITALIZATION - Additional Inf
CAPITALIZATION - Additional Information (Details) - USD ($) | Jun. 26, 2017 | Mar. 27, 2017 | Dec. 13, 2016 | May 05, 2017 | Aug. 04, 2017 | Jul. 29, 2016 | Aug. 04, 2017 | Mar. 29, 2017 | Feb. 03, 2017 | Jan. 31, 2017 | Dec. 15, 2016 | Sep. 07, 2016 |
Class of Stock [Line Items] | ||||||||||||
Capital stock, authorized (in shares) | 9,144,025,308 | 2,144,025,308 | ||||||||||
Common stock, authorized (in shares) | 9,143,025,308 | 2,143,025,308 | 9,143,000,000 | 9,143,000,000 | 2,143,000,000 | |||||||
Capital stock, additional authorized (in shares) | 7,000,000,000 | |||||||||||
Common stock, additional authorized (in shares) | 7,000,000,000 | |||||||||||
Preferred stock, authorized (in shares) | 1,000,000 | 1,000,000 | ||||||||||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | ||||||||||
Preferred stock, issued (in shares) | 0 | 0 | ||||||||||
Preferred stock, outstanding (in shares) | 0 | 0 | ||||||||||
Shares outstanding (in shares) | 773,000,000 | 773,000,000 | 778,000,000 | |||||||||
Treasury stock repurchases | $ 384,000,000 | $ 2,000,000 | ||||||||||
Class C Common Stock | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Common stock, authorized (in shares) | 7,900,000,000 | 900,000,000 | 7,900,000,000 | 7,900,000,000 | 900,000,000 | |||||||
Common stock, additional authorized (in shares) | 7,000,000,000 | |||||||||||
Shares outstanding (in shares) | 23,000,000 | 23,000,000 | 22,000,000 | |||||||||
Class V Common Stock | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Common stock, authorized (in shares) | 343,000,000 | 343,000,000 | 343,000,000 | |||||||||
Shares outstanding (in shares) | 203,000,000 | 203,000,000 | 209,000,000 | |||||||||
Class V Common Stock | EMC | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Shares reserved for issuance (in shares) | 343,000,000 | |||||||||||
Class V Common Stock | Class V Group Repurchase Program | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Stock repurchase program, authorized amount | $ 500,000,000 | |||||||||||
Stock repurchase program, term | 6 months | |||||||||||
Shares repurchased (in shares) | 1,300,000 | |||||||||||
Treasury stock repurchases | $ 82,000,000 | |||||||||||
Class V Common Stock | March 2017 Class V Group Repurchase Program | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Stock repurchase program, authorized amount | $ 300,000,000 | |||||||||||
Stock repurchase program, term | 6 months | |||||||||||
Shares repurchased (in shares) | 4,600,000 | |||||||||||
Treasury stock repurchases | $ 300,000,000 | |||||||||||
Class A common stock | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Common stock, authorized (in shares) | 600,000,000 | 600,000,000 | 600,000,000 | |||||||||
Shares outstanding (in shares) | 410,000,000 | 410,000,000 | 410,000,000 | |||||||||
Class V Common Stock Owners | Class V Common Stock | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Shares outstanding (in shares) | 203,000,000 | 203,000,000 | 209,000,000 | |||||||||
Economic ownership percentage | 62.00% | 62.00% | 62.00% | |||||||||
DHI Group Owners | Class V Common Stock | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Economic ownership percentage, retained interest | 38.00% | 38.00% | 38.00% | |||||||||
Authorized and unissued (in shares) | 127,000,000 | 127,000,000 | 127,000,000 | |||||||||
VMware | Class V Common Stock | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Shares outstanding (in shares) | 333,000,000 | 333,000,000 | ||||||||||
VMware | Class A common stock | December 2016 VMware Stock Purchase Program | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Stock repurchase program, authorized amount | $ 500,000,000 | |||||||||||
Shares repurchased (in shares) | 1,400,000 | 6,200,000 | ||||||||||
VMware | Class A common stock | January 2017 Authorization | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Stock repurchase program, authorized amount | $ 1,200,000,000 | |||||||||||
Stock repurchase program, remaining authorized repurchase amount | $ 900,000,000 | $ 900,000,000 | ||||||||||
VMware | Class A common stock | March 2017 VMWare Stock Purchase Agreement | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Stock repurchase program, authorized amount | $ 300,000,000 | |||||||||||
VMware | Class A common stock | January 2017 Authorization and March 2017 Stock Purchase Agreement | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Shares repurchased (in shares) | 3,400,000 | |||||||||||
Stock repurchase program, discount percentage | 3.50% |
REDEEMABLE SHARES - Additional
REDEEMABLE SHARES - Additional Information (Details) - USD ($) shares in Millions, $ in Millions | 6 Months Ended | |
Aug. 04, 2017 | Feb. 03, 2017 | |
Temporary Equity [Line Items] | ||
Holding period | 6 months | |
Redeemable shares (Note 18) | $ 333 | $ 231 |
Common Stock | ||
Temporary Equity [Line Items] | ||
Redeemable shares issued (in shares) | 2 | 1.1 |
Redeemable shares outstanding (in shares) | 2 | 1.1 |
Restricted Stock Units (RSUs) | ||
Temporary Equity [Line Items] | ||
Redeemable shares issued (in shares) | 0.9 | 0.4 |
Redeemable shares outstanding (in shares) | 0.9 | 0.4 |
Restricted Stock Award | ||
Temporary Equity [Line Items] | ||
Redeemable shares issued (in shares) | 0.3 | 0.1 |
Redeemable shares outstanding (in shares) | 0.3 | 0.1 |
Employee Stock Option | ||
Temporary Equity [Line Items] | ||
Redeemable shares issued (in shares) | 14.8 | 13.7 |
Redeemable shares outstanding (in shares) | 14.8 | 13.7 |
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 | ||
Aug. 04, 2017 | Jul. 29, 2016 | Aug. 04, 2017 | Jul. 29, 2016 | |
Segment Reporting Information [Line Items] | ||||
Consolidated net revenue | $ 19,299 | $ 13,080 | $ 37,115 | $ 25,321 |
Consolidated operating loss | (979) | 67 | (2,479) | (72) |
Amortization of intangibles | (1,740) | (491) | (3,516) | (982) |
Operating segments | ||||
Segment Reporting Information [Line Items] | ||||
Consolidated net revenue | 19,164 | 12,999 | 36,872 | 25,183 |
Consolidated operating loss | 1,557 | 784 | 2,740 | 1,361 |
Operating segments | Client Solutions Group | ||||
Segment Reporting Information [Line Items] | ||||
Consolidated net revenue | 9,851 | 9,220 | 18,907 | 17,791 |
Consolidated operating loss | 566 | 484 | 940 | 869 |
Operating segments | Infrastructure Solutions Group | ||||
Segment Reporting Information [Line Items] | ||||
Consolidated net revenue | 7,406 | 3,779 | 14,322 | 7,392 |
Consolidated operating loss | 430 | 300 | 753 | 492 |
Operating segments | VMware | ||||
Segment Reporting Information [Line Items] | ||||
Consolidated net revenue | 1,907 | 0 | 3,643 | 0 |
Consolidated operating loss | 561 | 0 | 1,047 | 0 |
Operating segments | Other businesses | ||||
Segment Reporting Information [Line Items] | ||||
Consolidated net revenue | 472 | 118 | 934 | 228 |
Consolidated operating loss | 1 | (11) | 4 | (27) |
Unallocated/corporate | ||||
Segment Reporting Information [Line Items] | ||||
Consolidated net revenue | (2) | 28 | (1) | 53 |
Consolidated operating loss | (6) | (17) | 5 | (39) |
Other corporate expenses | (247) | (28) | (554) | (52) |
Reconciling items | ||||
Segment Reporting Information [Line Items] | ||||
Consolidated net revenue | (335) | (65) | (690) | (143) |
Impact of purchase accounting | (406) | (98) | (829) | (204) |
Amortization of intangibles | (1,740) | (491) | (3,516) | (982) |
Transaction-related expenses | $ (138) | $ (72) | $ (329) | $ (129) |
SEGMENT INFORMATION - Net reven
SEGMENT INFORMATION - Net revenue by business unit categories (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 04, 2017 | Jul. 29, 2016 | Aug. 04, 2017 | Jul. 29, 2016 | |
Revenue from External Customer [Line Items] | ||||
Consolidated net revenue | $ 19,299 | $ 13,080 | $ 37,115 | $ 25,321 |
Operating segments | ||||
Revenue from External Customer [Line Items] | ||||
Consolidated net revenue | 19,164 | 12,999 | 36,872 | 25,183 |
Operating segments | Client Solutions Group | ||||
Revenue from External Customer [Line Items] | ||||
Consolidated net revenue | 9,851 | 9,220 | 18,907 | 17,791 |
Operating segments | Client Solutions Group | Commercial | ||||
Revenue from External Customer [Line Items] | ||||
Consolidated net revenue | 7,196 | 6,798 | 13,546 | 12,943 |
Operating segments | Client Solutions Group | Consumer | ||||
Revenue from External Customer [Line Items] | ||||
Consolidated net revenue | 2,655 | 2,422 | 5,361 | 4,848 |
Operating segments | Infrastructure Solutions Group | ||||
Revenue from External Customer [Line Items] | ||||
Consolidated net revenue | 7,406 | 3,779 | 14,322 | 7,392 |
Operating segments | Infrastructure Solutions Group | Servers and networking | ||||
Revenue from External Customer [Line Items] | ||||
Consolidated net revenue | 3,740 | 3,237 | 6,971 | 6,312 |
Operating segments | Infrastructure Solutions Group | Storage | ||||
Revenue from External Customer [Line Items] | ||||
Consolidated net revenue | 3,666 | 542 | 7,351 | 1,080 |
Operating segments | VMware | ||||
Revenue from External Customer [Line Items] | ||||
Consolidated net revenue | $ 1,907 | $ 0 | $ 3,643 | $ 0 |
SEGMENT INFORMATION - Additiona
SEGMENT INFORMATION - Additional Information (Details) | 6 Months Ended |
Aug. 04, 2017segmentsproduct_group | |
Segment Reporting [Abstract] | |
Number of reportable segments | segments | 3 |
Number of product groups | product_group | 3 |
SUPPLEMENTAL CONSOLIDATED FI100
SUPPLEMENTAL CONSOLIDATED FINANCIAL INFORMATION - Information on selected accounts included in the statements of financial position (Details) - USD ($) $ in Millions | Aug. 04, 2017 | Feb. 03, 2017 | Jul. 29, 2016 |
Inventories, net: | |||
Production materials | $ 926 | $ 925 | |
Work-in-process | 538 | 503 | |
Finished goods | 1,130 | 1,110 | |
Total inventories, net | 2,594 | 2,538 | |
Other non-current liabilities: | |||
Warranty liability | 176 | 199 | $ 180 |
Deferred and other tax liabilities | 7,124 | 8,607 | |
Other | 547 | 533 | |
Total other non-current liabilities | $ 7,847 | $ 9,339 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) | Aug. 21, 2017 | Sep. 08, 2017 | Aug. 31, 2017 | Aug. 04, 2017 | Jul. 29, 2016 | Aug. 18, 2017 | Jan. 31, 2017 | Sep. 07, 2016 |
Subsequent Event [Line Items] | ||||||||
Treasury stock repurchases | $ 384,000,000 | $ 2,000,000 | ||||||
Repayments of debt | $ 5,309,000,000 | $ 2,638,000,000 | ||||||
Other | 2.99% VMware Note Bridge Facility due September 2017 | ||||||||
Subsequent Event [Line Items] | ||||||||
Debt, stated amount | $ 1,500,000,000 | |||||||
VMware Stock Repurchase Program | Class A common stock | ||||||||
Subsequent Event [Line Items] | ||||||||
Stock repurchase program, authorized amount | $ 1,200,000,000 | |||||||
Subsequent event | EMC intercompany promissory notes | ||||||||
Subsequent Event [Line Items] | ||||||||
Repayments of intercompany promissory notes | $ 1,200,000,000 | |||||||
Subsequent event | Senior Notes | ||||||||
Subsequent Event [Line Items] | ||||||||
Debt, stated amount | 4,000,000,000 | |||||||
Proceeds from debt issuance | 1,200,000,000 | |||||||
Subsequent event | Senior Notes | Senior Notes due 2020 | ||||||||
Subsequent Event [Line Items] | ||||||||
Debt, stated amount | $ 1,250,000,000 | |||||||
Interest rate | 2.30% | |||||||
Subsequent event | Senior Notes | Senior Notes due 2022 | ||||||||
Subsequent Event [Line Items] | ||||||||
Debt, stated amount | $ 1,500,000,000 | |||||||
Interest rate | 2.95% | |||||||
Subsequent event | Senior Notes | Senior Notes due 2027 | ||||||||
Subsequent Event [Line Items] | ||||||||
Debt, stated amount | $ 1,250,000,000 | |||||||
Interest rate | 3.90% | |||||||
Subsequent event | Other | 2.99% VMware Note Bridge Facility due September 2017 | ||||||||
Subsequent Event [Line Items] | ||||||||
Repayments of debt | $ 1,500,000,000 | |||||||
Subsequent event | August 2017 Class V Group Repurchase Program | Class V Common Stock | ||||||||
Subsequent Event [Line Items] | ||||||||
Stock repurchase program, authorized amount | $ 300,000,000 | |||||||
Subsequent event | August 2017 VMware Stock Purchase Agreement | Class A common stock | ||||||||
Subsequent Event [Line Items] | ||||||||
Stock repurchase program, authorized amount | $ 1,000,000,000 | |||||||
Treasury stock repurchases | $ 300,000,000 | |||||||
Stock repurchase program, discount percentage | 3.50% | |||||||
Subsequent event | VMware Stock Repurchase Program | Class A common stock | ||||||||
Subsequent Event [Line Items] | ||||||||
Stock repurchase program, remaining authorized repurchase amount | $ 900,000,000 |