Cover Page
Cover Page - shares | 3 Months Ended | |
Apr. 30, 2021 | Jun. 01, 2021 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Apr. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-37867 | |
Entity Registrant Name | Dell Technologies Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 80-0890963 | |
Entity Address, Address Line One | One Dell Way | |
Entity Address, City or Town | Round Rock | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 78682 | |
City Area Code | 800 | |
Local Phone Number | 289-3355 | |
Title of 12(b) Security | Class C Common Stock, par value $0.01 per share | |
Trading Symbol | DELL | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001571996 | |
Current Fiscal Year End Date | --01-28 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding - Class C | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 277,588,056 | |
Entity Common Stock, Shares Outstanding - Class A | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 384,416,886 | |
Entity Common Stock, Shares Outstanding - Class B | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 101,685,217 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION - USD ($) $ in Millions | Apr. 30, 2021 | Jan. 29, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 14,244 | $ 14,201 |
Accounts receivable, net of allowance of $104 and $104 (Note 17) | 10,909 | 12,788 |
Short-term financing receivables, net of allowance of $220 and $228 (Note 3) | 4,980 | 5,155 |
Inventories | 3,828 | 3,402 |
Other current assets | 8,378 | 8,021 |
Total current assets | 42,339 | 43,567 |
Property, plant, and equipment, net | 6,557 | 6,431 |
Long-term investments | 1,670 | 1,624 |
Long-term financing receivables, net of allowance of $96 and $93 (Note 3) | 5,261 | 5,339 |
Goodwill | 40,839 | 40,829 |
Intangible assets, net | 13,729 | 14,429 |
Other non-current assets | 11,357 | 11,196 |
Total assets | 121,752 | 123,415 |
Current liabilities: | ||
Short-term debt | 8,748 | 6,362 |
Accounts payable | 21,545 | 21,696 |
Accrued and other | 7,728 | 9,549 |
Short-term deferred revenue | 16,835 | 16,525 |
Total current liabilities | 54,856 | 54,132 |
Long-term debt | 37,935 | 41,622 |
Long-term deferred revenue | 14,541 | 14,276 |
Other non-current liabilities | 5,276 | 5,360 |
Total liabilities | 112,608 | 115,390 |
Commitments and contingencies (Note 9) | ||
Redeemable shares (Note 15) | 558 | 472 |
Stockholders’ equity (deficit): | ||
Common stock and capital in excess of $0.01 par value (Note 13) | 16,950 | 16,849 |
Treasury stock at cost | (305) | (305) |
Accumulated deficit | (12,864) | (13,751) |
Accumulated other comprehensive loss | (294) | (314) |
Total Dell Technologies Inc. stockholders’ equity | 3,487 | 2,479 |
Non-controlling interests | 5,099 | 5,074 |
Total stockholders’ equity | 8,586 | 7,553 |
Total liabilities, redeemable shares, and stockholders’ equity | $ 121,752 | $ 123,415 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Parenthetical) - USD ($) $ in Millions | Apr. 30, 2021 | Jan. 29, 2021 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for credit loss | $ 104 | $ 104 |
Short-term financing receivables, allowance | 220 | 228 |
Long-term financing receivables, allowance | $ 96 | $ 93 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2021 | May 01, 2020 | |
Net revenue: | ||
Total net revenue | $ 24,487 | $ 21,897 |
Cost of net revenue: | ||
Total cost of net revenue | 16,829 | 15,044 |
Gross margin | 7,658 | 6,853 |
Operating expenses: | ||
Selling, general, and administrative | 4,960 | 4,886 |
Research and development | 1,323 | 1,265 |
Total operating expenses | 6,283 | 6,151 |
Operating income | 1,375 | 702 |
Interest and other, net | (388) | (566) |
Income before income taxes | 987 | 136 |
Income tax expense (benefit) | 49 | (46) |
Net income | 938 | 182 |
Less: Net income attributable to non-controlling interests | 51 | 39 |
Net income attributable to Dell Technologies Inc. | $ 887 | $ 143 |
Earnings per share attributable to Dell Technologies Inc. | ||
Dell Technologies Common Stock — Basic (in dollars per share) | $ 1.17 | $ 0.19 |
Dell Technologies Common Stock — Diluted (in dollars per share) | $ 1.13 | $ 0.19 |
Products | ||
Net revenue: | ||
Total net revenue | $ 18,034 | $ 16,038 |
Cost of net revenue: | ||
Total cost of net revenue | 14,214 | 12,804 |
Services | ||
Net revenue: | ||
Total net revenue | 6,453 | 5,859 |
Cost of net revenue: | ||
Total cost of net revenue | $ 2,615 | $ 2,240 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2021 | May 01, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 938 | $ 182 |
Other comprehensive income (loss), net of tax | ||
Foreign currency translation adjustments | (7) | (146) |
Cash flow hedges: | ||
Change in unrealized (losses) gains | (1) | 167 |
Reclassification adjustment for net losses (gains) included in net income | 27 | (100) |
Net change in cash flow hedges | 26 | 67 |
Pension and other postretirement plans: | ||
Recognition of actuarial net gains (losses) from pension and other postretirement plans | 1 | (7) |
Reclassification adjustments for net losses from pension and other postretirement plans | 0 | 2 |
Net change in actuarial net gains (losses) from pension and other postretirement plans | 1 | (5) |
Total other comprehensive income (loss), net of tax expense (benefit) of $(2) and $10, respectively | 20 | (84) |
Comprehensive income, net of tax | 958 | 98 |
Less: Net income attributable to non-controlling interests | 51 | 39 |
Less: Other comprehensive loss attributable to non-controlling interests | 0 | (3) |
Comprehensive income attributable to Dell Technologies Inc. | $ 907 | $ 62 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2021 | May 01, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Tax expense (benefit) | $ (2) | $ 10 |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2021 | May 01, 2020 | |
Cash flows from operating activities: | ||
Net income | $ 938 | $ 182 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 1,239 | 1,316 |
Stock-based compensation expense | 435 | 370 |
Deferred income taxes | (170) | (225) |
Other, net | (82) | 104 |
Changes in assets and liabilities, net of effects from acquisitions and dispositions: | ||
Accounts receivable | 1,850 | 1,284 |
Financing receivables | 276 | (14) |
Inventories | (396) | (352) |
Other assets and liabilities | (2,292) | (2,234) |
Accounts payable | (125) | (1,538) |
Deferred revenue | 565 | 311 |
Change in cash from operating activities | 2,238 | (796) |
Cash flows from investing activities: | ||
Purchases of investments | (146) | (56) |
Maturities and sales of investments | 256 | 39 |
Capital expenditures and capitalized software development costs | (625) | (559) |
Acquisition of businesses and assets, net | (10) | (38) |
Divestitures of businesses and assets, net | 0 | 120 |
Other | 6 | 9 |
Change in cash from investing activities | (519) | (485) |
Cash flows from financing activities: | ||
Proceeds from the issuance of common stock | 160 | 116 |
Repurchases of parent common stock | (9) | (240) |
Repurchases of subsidiary common stock | (434) | (300) |
Proceeds from debt | 2,726 | 10,135 |
Repayments of debt | (4,070) | (5,405) |
Other | (11) | (42) |
Change in cash from financing activities | (1,638) | 4,264 |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (5) | (136) |
Change in cash, cash equivalents, and restricted cash | 76 | 2,847 |
Cash, cash equivalents, and restricted cash at beginning of the period | 15,184 | 10,151 |
Cash, cash equivalents, and restricted cash at end of the period | $ 15,260 | $ 12,998 |
CONDENSED CONSOLIDATED STATEM_7
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) shares in Millions, $ in Millions | Total | Adjustment for adoption of accounting standards | Dell Technologies Stockholders’ Equity (Deficit) | Dell Technologies Stockholders’ Equity (Deficit)Adjustment for adoption of accounting standards | Common Stock and Capital in Excess of Par Value | Treasury Stock | Accumulated Deficit | Accumulated DeficitAdjustment for adoption of accounting standards | Accumulated Other Comprehensive Income/(Loss) | Non-Controlling Interests |
Balance, beginning of period (in shares) at Jan. 31, 2020 | 745 | 2 | ||||||||
Balance, beginning of period at Jan. 31, 2020 | $ 3,155 | $ (110) | $ (1,574) | $ (110) | $ 16,091 | $ (65) | $ (16,891) | $ (110) | $ (709) | $ 4,729 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 182 | 143 | 143 | 39 | ||||||
Foreign currency translation adjustments | (146) | (146) | (146) | |||||||
Cash flow hedges, net change | 67 | 70 | 70 | (3) | ||||||
Pension and other post-retirement | (5) | (5) | (5) | |||||||
Issuance of common stock (in shares) | 3 | |||||||||
Issuance of common stock | 9 | 9 | $ 9 | |||||||
Stock-based compensation expense | 370 | 92 | 92 | 278 | ||||||
Treasury stock repurchases (in shares) | 6 | |||||||||
Treasury stock repurchases | (240) | (240) | $ (240) | |||||||
Revaluation of redeemable shares | 188 | 188 | 188 | |||||||
Impact from equity transactions of non-controlling interests | (230) | (41) | $ (41) | (189) | ||||||
Balance, end of period (in shares) at May. 01, 2020 | 748 | 8 | ||||||||
Balance, end of period at May. 01, 2020 | 3,240 | (1,614) | $ 16,339 | $ (305) | (16,858) | (790) | 4,854 | |||
Balance, beginning of period (in shares) at Jan. 29, 2021 | 761 | 8 | ||||||||
Balance, beginning of period at Jan. 29, 2021 | 7,553 | 2,479 | $ 16,849 | $ (305) | (13,751) | (314) | 5,074 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 938 | 887 | 887 | 51 | ||||||
Foreign currency translation adjustments | (7) | (7) | (7) | |||||||
Cash flow hedges, net change | 26 | 26 | 26 | |||||||
Pension and other post-retirement | 1 | 1 | 1 | |||||||
Issuance of common stock (in shares) | 11 | |||||||||
Issuance of common stock | 19 | 19 | $ 19 | |||||||
Stock-based compensation expense | 435 | 166 | 166 | 269 | ||||||
Revaluation of redeemable shares | (86) | (86) | (86) | |||||||
Impact from equity transactions of non-controlling interests | (293) | 2 | $ 2 | (295) | ||||||
Balance, end of period (in shares) at Apr. 30, 2021 | 772 | 8 | ||||||||
Balance, end of period at Apr. 30, 2021 | $ 8,586 | $ 3,487 | $ 16,950 | $ (305) | $ (12,864) | $ (294) | $ 5,099 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Apr. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | NOTE 1 — BASIS OF PRESENTATION References in these Notes to the Condensed Consolidated Financial Statements to the “Company” or “Dell Technologies” mean Dell Technologies Inc. individually and together with its consolidated subsidiaries. Basis of Presentation — The accompanying unaudited Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and accompanying Notes filed with the U.S. Securities and Exchange Commission (“SEC”) in the Company’s Annual Report on Form 10-K for the fiscal year ended January 29, 2021. 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. as of April 30, 2021 and January 29, 2021 and the results of its operations, corresponding comprehensive income (loss) and its cash flows for the three months ended April 30, 2021 and May 1, 2020. 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. Management has considered the actual and potential economic impacts of the coronavirus disease 2019 (“COVID-19”) pandemic on the Company’s critical and significant accounting estimates. Actual results could differ materially from those estimates. The results of operations, comprehensive income (loss), and cash flows for the three months ended April 30, 2021 and May 1, 2020 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. Both the fiscal year ended January 29, 2021 (“Fiscal 2021”) and fiscal year ending January 28, 2022 (“Fiscal 2022”) are 52-week periods. Principles of Consolidation — These Condensed Consolidated Financial Statements include the accounts of Dell Technologies and its wholly-owned subsidiaries, as well as the accounts of VMware, Inc. and SecureWorks Corp. (“Secureworks”), each of which is majority-owned by Dell Technologies. All intercompany transactions have been eliminated. 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. The Company also consolidates Variable Interest Entities ("VIEs") where it has been determined that the Company is the primary beneficiary of the applicable entities’ operations. For each VIE, the primary beneficiary is the party that has both the power to direct the activities that most significantly impact the VIE's economic performance and the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to such VIE. In evaluating whether the Company is the primary beneficiary of each entity, the Company evaluates its power to direct the most significant activities of the VIE by considering the purpose and design of each entity and the risks each entity was designed to create and pass through to its respective variable interest holders. The Company also evaluates its economic interests in each of the VIEs. See Note 3 of the Notes to the Condensed Consolidated Financial Statements for more information regarding consolidated VIEs. Spin-off of VMware, Inc. — On April 14, 2021, Dell Technologies entered into a Separation and Distribution Agreement with VMware, Inc, in which Dell Technologies owns a majority equity stake. Subject to the terms and conditions set forth in the Separation and Distribution Agreement, the businesses of VMware, Inc. will be separated from the remaining businesses of Dell Technologies through a series of transactions that will result in the pre-transaction stockholders of Dell Technologies owning shares in two, separate public companies: (1) VMware, Inc., which will own the businesses of VMware, Inc. and its subsidiaries, and (2) Dell Technologies, which will own Dell Technologies’ other businesses and subsidiaries (the “VMware Spin-off”). VMware, Inc. will pay a cash dividend, pro rata, to each of the holders of VMware, Inc. common stock in an aggregate amount equal to an amount to be mutually agreed by the Company and VMware, Inc. between $11.5 billion and $12.0 billion, subject to the satisfaction of certain conditions of payment. Immediately following such payment, the separation of VMware, Inc. from the Company will occur, including through the termination or settlement of certain intercompany accounts and intercompany contracts and the other transactions. Upon the closing of the transaction, Dell Technologies intends to use net proceeds from its pro rata share of the cash dividend to repay debt. The transaction is expected to close during the fourth quarter of calendar 2021, subject to certain closing conditions, including receipt of a favorable private letter ruling from the Internal Revenue Service that the transaction will qualify as tax-free for Dell Technologies stockholders for U.S. federal income tax purposes. Either Dell Technologies or VMware, Inc. may terminate the Separation and Distribution Agreement if the VMware Spin-off is not completed on or before January 28, 2022, among other termination rights. In connection with and upon consummation of the VMware Spin-off, Dell Technologies and VMware, Inc. will enter into a Commercial Framework Agreement (the “CFA”). The CFA will provide a framework under which Dell Technologies and VMware, Inc. can continue their strategic commercial relationship after the transaction. The CFA will have an initial term of five years, with automatic one-year renewals occurring annually thereafter, subject to certain terms and conditions. The announcement of the planned VMware Spin-off did not have any impact to the Company’s Condensed Consolidated Financial Statements or segment reporting. The Company will report VMware results as discontinued operations upon the closing of the transaction. RSA Security Divestiture — On September 1, 2020, Dell Technologies completed the sale of RSA Security to a consortium led by Symphony Technology Group, Ontario Teachers’ Pension Plan Board and AlpInvest Partners for total cash consideration of approximately $2.082 billion, resulting in a pre-tax gain on sale of $338 million. The Company ultimately recorded a $21 million loss, net of $359 million in tax expense due to the relatively low tax basis for the assets sold, particularly goodwill. The transaction included the sale of RSA Archer, RSA NetWitness Platform, RSA SecurID, RSA Fraud and Risk Intelligence, and RSA Conference and was intended to further simplify Dell Technologies’ product portfolio and corporate structure. Prior to the divestiture, RSA Security’s operating results were included within Other businesses and did not qualify for presentation as a discontinued operation. VMware, Inc. Acquisition of Pivotal — On December 30, 2019, VMware, Inc. completed its acquisition of Pivotal Software, Inc. (“Pivotal”) from the Company by merger (the “Pivotal acquisition”). As of the transaction date, Pivotal’s Class A common stock (NYSE: PVTL) ceased to be listed and traded on the New York Stock Exchange (“NYSE”). Due to the Company’s ownership of a controlling interest in Pivotal, the Company and VMware, Inc. accounted for the acquisition of the controlling interest in Pivotal as a transaction between entities under common control, and, consequently, the transaction had no net effect on the Company’s consolidated financial statements. Subsequent to the Pivotal acquisition, Pivotal operates as a wholly-owned subsidiary of VMware, Inc. and Dell Technologies reports Pivotal results within the VMware reportable segment. Prior to the Pivotal acquisition, Pivotal results were reported within Other businesses. This change in Pivotal segment classification was reflected retrospectively in the Company’s reportable segment results. Class V Transaction — On December 28, 2018, the Company completed a transaction (the “Class V transaction”) in which it paid $14.0 billion in cash and issued 149,387,617 shares of its Class C Common Stock to holders of its Class V Common Stock in exchange for all outstanding shares of Class V Common Stock. The non-cash consideration portion of the Class V transaction totaled $6.9 billion. As a result of the Class V transaction, the tracking stock feature of the Company’s capital structure associated with the Class V Common Stock was terminated. The Class C Common Stock is traded on the NYSE. The merger pursuant to which the Class V transaction was effected and the Class V transaction have been accounted for as a hybrid liability and equity transaction involving the repurchase of outstanding common stock, with the consideration consisting of a variable combination of cash and shares. EMC Merger Transaction — On September 7, 2016, the Company completed its acquisition of EMC Corporation (“EMC”) by merger (the “EMC merger transaction”). The consolidated results of EMC are included in Dell Technologies’ consolidated results presented in these financial statements. Recently Issued Accounting Pronouncements Reference Rate Reform — In March 2020, the Financial Accounting Standards Board (“FASB”) issued guidance which provides temporary optional expedients and exceptions to GAAP guidance on contract modifications and certain hedging relationships to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate to alternative reference rates. The Company may elect to apply the amendments prospectively through December 31, 2022. Adoption of the new guidance is not expected to have a material impact on the Company’s financial results. Recently Adopted Accounting Pronouncements Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity — In August 2020, the Financial Accounting Standards Board (“FASB”) issued guidance to simplify the accounting for convertible debt instruments and convertible preferred stock, and the derivatives scope exception for contracts in an entity's own equity. In addition, the guidance on calculating diluted earnings per share has been simplified and made more internally consistent. The Company early adopted this standard as of January 30, 2021. There was no impact on the Condensed Consolidated Financial Statements or to diluted earnings per share as of the adoption date. Simplifying Accounting for Income Taxes — In December 2019, the FASB issued guidance to simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740, Income Taxes , and by clarifying and amending existing guidance in order to improve consistent application of GAAP for other areas of Topic 740. The Company adopted the standard during the three months ended April 30, 2021. The impact of the adoption of this standard was immaterial to the Condensed Consolidated Financial Statements. |
FAIR VALUE MEASUREMENTS AND INV
FAIR VALUE MEASUREMENTS AND INVESTMENTS | 3 Months Ended |
Apr. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS AND INVESTMENTS | NOTE 2 — FAIR VALUE MEASUREMENTS AND INVESTMENTS The following table presents the Company’s hierarchy for its assets and liabilities measured at fair value on a recurring basis as of the dates indicated: April 30, 2021 January 29, 2021 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (in millions) Assets: Cash and cash equivalents: Money market funds $ 8,936 $ — $ — $ 8,936 $ 8,846 $ — $ — $ 8,846 Equity and other securities 327 — — 327 449 — — 449 Derivative instruments — 69 — 69 — 104 — 104 Total assets $ 9,263 $ 69 $ — $ 9,332 $ 9,295 $ 104 $ — $ 9,399 Liabilities: Derivative instruments $ — $ 103 $ — $ 103 $ — $ 133 $ — $ 133 Total liabilities $ — $ 103 $ — $ 103 $ — $ 133 $ — $ 133 The following section describes the valuation methodologies the Company uses to measure financial instruments at fair value: Money Market Funds — The Company’s investments 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 April 30, 2021, 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. Derivative Instruments — The Company’s derivative financial instruments consist primarily of foreign currency forward and purchased option contracts and interest rate swaps. The fair value of the portfolio is determined using valuation models based on market observable inputs, including interest rate curves, forward and spot prices for currencies, and implied volatilities. Credit risk is also factored into the fair value calculation of the Company’s derivative financial instrument portfolio. See Note 6 of the Notes to the Condensed Consolidated Financial Statements for a description of the Company’s derivative financial instrument activities. Deferred Compensation Plans — The Company offers deferred compensation plans for eligible employees, which allow participants to defer payment for a portion of their compensation. Assets were the same as liabilities associated with the plans at approximately $340 million and $308 million as of April 30, 2021 and January 29, 2021, respectively, and are included in other assets and other liabilities on the Condensed Consolidated Statements of Financial Position. The net impact to the Condensed Consolidated Statements of Income is not material since changes in the fair value of the assets substantially offset changes in the fair value of the liabilities. As such, assets and liabilities associated with these plans have not been included in the recurring fair value table above. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis — Certain assets are measured at fair value on a nonrecurring basis and therefore are not included in the recurring fair value table above. These assets consist primarily of non-financial assets such as goodwill and intangible assets. See Note 7 of the Notes to the Condensed Consolidated Financial Statements for additional information about goodwill and intangible assets. As of April 30, 2021 and January 29, 2021, the Company held private strategic investments of $1.1 billion and $1.0 billion, respectively. As these investments represent early-stage companies without readily determinable fair values, they are not included in the recurring fair value table above. The Company has elected to apply the measurement alternative for these investments. Under the alternative, the Company measures investments without readily determinable fair values at cost, less impairment, adjusted by observable price changes. The Company must make a separate election to use the alternative for each eligible investment and is required to reassess at each reporting period whether an investment qualifies for the alternative. In evaluating these investments for impairment or observable price changes, the Company uses inputs including pre- and post-money valuations of recent financing events and the impact of those events on its fully diluted ownership percentages, as well as other available information regarding the issuer’s historical and forecasted performance. Carrying Value and Estimated Fair Value of Outstanding Debt — The following table presents the carrying value and estimated fair value of the Company’s outstanding debt as described in Note 5 of the Notes to the Condensed Consolidated Financial Statements, including the current portion, as of the dates indicated: April 30, 2021 January 29, 2021 Carrying Value Fair Value Carrying Value Fair Value (in billions) Senior Secured Credit Facilities $ 6.2 $ 6.3 $ 6.2 $ 6.3 First Lien Notes $ 18.3 $ 22.7 $ 18.3 $ 22.8 Unsecured Notes and Debentures $ 0.8 $ 1.2 $ 1.2 $ 1.6 Senior Notes $ 1.6 $ 1.7 $ 2.7 $ 2.8 EMC Notes $ 1.0 $ 1.0 $ 1.0 $ 1.0 VMware Notes $ 4.7 $ 5.2 $ 4.7 $ 5.3 Margin Loan Facility $ 4.0 $ 3.9 $ 4.0 $ 3.9 The fair values of the outstanding debt shown in the table above, as well as the debt of Dell Financial Services (“DFS”) and its affiliates described in Note 3 of the Notes to the Condensed Consolidated Financial Statements, 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 carrying value of DFS debt approximates fair value. Investments The following table presents the carrying value of the Company’s investments as of the dates indicated: April 30, 2021 January 29, 2021 Cost Unrealized Gain Unrealized (Loss) Carrying Value Cost Unrealized Gain Unrealized (Loss) Carrying Value (in millions) Equity and other securities $ 1,328 $ 198 $ (121) $ 1,405 $ 907 $ 677 $ (145) $ 1,439 Fixed income debt securities 256 9 — 265 176 9 — 185 Total securities $ 1,670 $ 1,624 Equity and other securities — The Company has strategic investments in publicly-traded and privately-held companies. For the three months ended April 30, 2021, the equity and other securities without readily determinable fair values of $1.1 billion increased by $198 million, primarily due to upward adjustments for observable price changes, offset by $26 million of downward adjustments primarily attributable to observable price changes. The remainder of equity and other securities consists of publicly-traded investments that are measured at fair value on a recurring basis. Fixed income debt securities — The Company has fixed income debt securities carried at amortized cost. The debt securities are held as collateral for borrowings. The Company intends to hold the investments to maturity. Unrealized gains relate to foreign currency impacts. |
FINANCIAL SERVICES
FINANCIAL SERVICES | 3 Months Ended |
Apr. 30, 2021 | |
Receivables [Abstract] | |
FINANCIAL SERVICES | NOTE 3 — FINANCIAL SERVICES The Company offers or arranges various financing options, services, and alternative payment structures for its customers in North America, Europe, Australia, and New Zealand through Dell Financial Services and its affiliates (“DFS”). The Company also arranges financing for some of its customers in various countries where DFS does not currently operate as a captive enterprise. The key activities of DFS include originating, collecting, and servicing customer financing arrangements primarily related to the purchase or use of Dell Technologies products and services. In some cases, DFS also offers financing on the purchase of third-party technology products that complement the Dell Technologies portfolio of products and services. New financing originations were $1.9 billion and $1.8 billion for the three months ended April 30, 2021 and May 1, 2020, respectively. The Company’s loan and lease arrangements with customers 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. Due to the short-term nature of the revolving loan portfolio, the carrying value of the portfolio approximates fair value. Fixed-term leases and loans — The Company enters into financing arrangements with customers who seek lease financing for equipment. Pursuant to the current lease accounting standard effective February 2, 2019, new DFS leases are classified as sales-type leases, direct financing leases, or operating leases. Direct financing leases are immaterial. Leases that commenced prior to the effective date of the current lease accounting standard continue to be accounted for under previous lease accounting guidance. Leases with business customers have fixed terms of generally two 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 Financing Receivables The following table presents the components of the Company’s financing receivables segregated by portfolio segment as of the dates indicated: April 30, 2021 January 29, 2021 Revolving Fixed-term Total Revolving Fixed-term Total (in millions) Financing receivables, net: Customer receivables, gross (a) $ 752 $ 9,438 $ 10,190 $ 796 $ 9,595 $ 10,391 Allowances for losses (139) (177) (316) (148) (173) (321) Customer receivables, net 613 9,261 9,874 648 9,422 10,070 Residual interest — 367 367 — 424 424 Financing receivables, net $ 613 $ 9,628 $ 10,241 $ 648 $ 9,846 $ 10,494 Short-term $ 613 $ 4,367 $ 4,980 $ 648 $ 4,507 $ 5,155 Long-term $ — $ 5,261 $ 5,261 $ — $ 5,339 $ 5,339 ____________________ (a) Customer receivables, gross includes amounts due from customers under revolving loans, fixed-term loans, fixed-term sales-type or direct financing leases, and accrued interest. The following tables present the changes in allowance for financing receivable losses for the periods indicated: Three Months Ended April 30, 2021 May 1, 2020 Revolving Fixed-term Total Revolving Fixed-term Total (in millions) Allowance for financing receivable losses: Balances at beginning of period $ 148 $ 173 $ 321 $ 70 $ 79 $ 149 Adjustment for adoption of accounting standard (a) — — — 40 71 111 Charge-offs, net of recoveries (13) (2) (15) (20) (9) (29) Provision charged to income statement 4 6 10 54 36 90 Balances at end of period $ 139 $ 177 $ 316 $ 144 $ 177 $ 321 ____________________ (a) The Company adopted the current expected credit losses standard as of February 1, 2020 using the modified retrospective method, with the cumulative-effect adjustment to the opening balance of stockholders’ equity (deficit) as of the adoption date. Aging The following table presents the aging of the Company’s customer financing receivables, gross, including accrued interest, segregated by class, as of the dates indicated: April 30, 2021 January 29, 2021 Current Past Due 1 — 90 Days Past Due Total Current Past Due 1 — 90 Days Past Due Total (in millions) Revolving — DPA $ 549 $ 21 $ 10 $ 580 $ 578 $ 30 $ 13 $ 621 Revolving — DBC 158 11 3 172 157 14 4 175 Fixed-term — Consumer and Commercial 9,035 346 57 9,438 9,192 316 87 9,595 Total customer receivables, gross $ 9,742 $ 378 $ 70 $ 10,190 $ 9,927 $ 360 $ 104 $ 10,391 Aging is likely to fluctuate as a result of the variability in volume of large transactions entered into over the period, and the administrative processes that accompany those larger transactions. Aging is also impacted by the timing of the Dell Technologies fiscal period end date, relative to calendar month-end customer payment due dates. As a result of these factors, fluctuations in aging from period to period do not necessarily indicate a material change in the collectibility of the portfolio. Fixed-term consumer and commercial customer receivables are placed on non-accrual status if principal or interest is past due and considered delinquent, or if there is concern about collectibility of a specific customer receivable. These receivables identified as doubtful for collectibility may be classified as current for aging purposes. Aged revolving portfolio customer receivables identified as delinquent are charged off. Receivables are moved back to accrual status when the collection of interest is probable, or the collection of the net investment is no longer doubtful. Credit Quality The following tables presents customer receivables, gross, including accrued interest, by credit quality indicator segregated by class and year of origination, as of the dates indicated: April 30, 2021 Fixed-term — Consumer and Commercial Fiscal Year of Origination 2022 2021 2020 2019 2018 Years Prior Revolving — DPA (a) Revolving — DBC (a) Total (in millions) Higher $ 1,057 $ 2,597 $ 1,520 $ 486 $ 107 $ 13 $ 153 $ 45 $ 5,978 Mid 286 1,000 553 190 45 4 176 51 2,305 Lower 238 728 419 163 27 5 251 76 1,907 Total $ 1,581 $ 4,325 $ 2,492 $ 839 $ 179 $ 22 $ 580 $ 172 $ 10,190 January 29, 2021 Fixed-term — Consumer and Commercial Fiscal Year of Origination 2021 2020 2019 2018 2017 Years Prior Revolving — DPA (a) Revolving — DBC (a) Total (in millions) Higher $ 3,125 $ 1,802 $ 661 $ 166 $ 26 $ — $ 172 $ 47 $ 5,999 Mid 1,121 671 287 73 9 — 188 52 2,401 Lower 865 499 243 38 9 — 261 76 1,991 Total $ 5,111 $ 2,972 $ 1,191 $ 277 $ 44 $ — $ 621 $ 175 $ 10,391 ____________________ (a) The revolving portfolio is exempt from the requirement to disclose the amortized cost basis by year of origination since determining the appropriate origination year can be complex due to the nature of the revolving portfolio. The categories shown in the tables above 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 above, 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 above, an internal grading system is utilized that assigns a credit level score based on a number of considerations, including liquidity, operating performance, and industry outlook. The grading criteria and classifications for the fixed-term products differ from those for the revolving products as loss experience varies between these product and customer groups. The credit quality categories cannot be compared between the different classes as loss experience varies substantially between the classes. Leases Interest income on sales-type lease receivables was $64 million and $65 million for the three months ended April 30, 2021 and May 1, 2020, respectively. The following table presents the net revenue, cost of net revenue, and gross margin recognized at the commencement date of sales-type leases for the periods indicated: Three Months Ended April 30, 2021 May 1, 2020 (in millions) Net revenue — products $ 230 $ 215 Cost of net revenue — products 163 159 Gross margin — products $ 67 $ 56 The following table presents the future maturity of the Company’s fixed-term customer leases and associated financing payments, and reconciles the undiscounted cash flows to the customer receivables, gross recognized on the Condensed Consolidated Statements of Financial Position as of the date indicated: April 30, 2021 (in millions) Fiscal 2022 (remaining nine months) $ 2,232 Fiscal 2023 1,819 Fiscal 2024 1,086 Fiscal 2025 429 Fiscal 2026 and beyond 141 Total undiscounted cash flows 5,707 Fixed-term loans 4,399 Revolving loans 752 Less: unearned income (668) Total customer receivables, gross $ 10,190 Operating Leases The following table presents the components of the Company’s operating lease portfolio included in Property, plant, and equipment, net as of the dates indicated: April 30, 2021 January 29, 2021 (in millions) Equipment under operating lease, gross $ 1,921 $ 1,746 Less: accumulated depreciation (541) (432) Equipment under operating lease, net $ 1,380 $ 1,314 Operating lease income relating to lease payments was $156 million and $87 million for the three months ended April 30, 2021 and May 1, 2020, respectively. Depreciation expense was $116 million and $62 million for the three months ended April 30, 2021 and May 1, 2020, respectively. The following table presents the future payments to be received by the Company as lessor in operating lease contracts as of the date indicated: April 30, 2021 (in millions) Fiscal 2022 (remaining nine months) $ 525 Fiscal 2023 516 Fiscal 2024 261 Fiscal 2025 59 Fiscal 2026 and beyond 9 Total $ 1,370 DFS Debt The Company maintains programs that facilitate the funding of leases, loans, and other alternative payment structures in the capital markets. The majority of DFS debt is non-recourse to Dell Technologies and represents borrowings under securitization programs and structured financing programs, for which the Company’s risk of loss is limited to transferred loan and lease payments and associated equipment. The following table presents DFS debt as of the dates indicated. The table excludes the allocated portion of the Company’s other borrowings, which represents the additional amount considered to fund the DFS business. April 30, 2021 January 29, 2021 (in millions) DFS U.S. debt: Asset-based financing and securitization facilities $ 2,674 $ 3,311 Fixed-term securitization offerings 3,548 2,961 Other 198 140 Total DFS U.S. debt 6,420 6,412 DFS international debt: Securitization facility 784 786 Other borrowings 1,087 1,006 Note payable 250 250 Dell Bank Senior Unsecured Eurobonds 1,212 1,212 Total DFS international debt 3,333 3,254 Total DFS debt $ 9,753 $ 9,666 Total short-term DFS debt $ 4,673 $ 4,888 Total long-term DFS debt $ 5,080 $ 4,778 DFS U.S. Debt Asset-Based Financing and Securitization Facilities — The Company maintains separate asset-based financing facilities and a securitization facility in the United States, which are revolving facilities for fixed-term leases and loans and for revolving loans, respectively. This debt is collateralized solely by the U.S. loan and lease payments and associated equipment in the facilities. The debt has a variable interest rate and the duration of the debt is based on the terms of the underlying loan and lease payment streams. As of April 30, 2021, the total debt capacity related to the U.S. asset-based financing and securitization facilities was $4.1 billion. The Company enters into interest swap agreements to effectively convert a portion of this debt from a floating rate to a fixed rate. See Note 6 of the Notes to the Condensed Consolidated Financial Statements for additional information about interest rate swaps. The Company’s U.S. securitization facility for revolving loans is effective through June 25, 2022. The Company’s two U.S. asset-based financing facilities for fixed-term leases and loans are effective through August 22, 2021 and July 26, 2022, respectively. The asset-based financing and securitization facilities contain standard structural features related to the performance of the funded receivables, which include defined credit losses, delinquencies, average credit scores, and minimum collection requirements. In the event one or more of these criteria are not met and the Company is unable to restructure the facility, no further funding of receivables will be permitted and the timing of the Company’s expected cash flows from over-collateralization will be delayed. As of April 30, 2021, these criteria were met. Fixed-Term Securitization Offerings — The Company periodically issues asset-backed debt securities under fixed-term securitization programs to private investors. The asset-backed debt securities are collateralized solely by the U.S. fixed-term leases and loans in the offerings, which are held by Special Purpose Entities (“SPEs”), as discussed below. The interest rate on these securities is fixed and ranges from 0.21% to 5.92% per annum, and the duration of these securities is based on the terms of the underlying loan and lease payment streams. DFS International Debt Securitization Facility — The Company maintains a securitization facility in Europe for fixed-term leases and loans. This facility is effective through December 21, 2022 and has a total debt capacity of $970 million as of April 30, 2021. The securitization facility contains standard structural features related to the performance of the securitized receivables, which include defined credit losses, delinquencies, average credit scores, and minimum collection requirements. In the event one or more of these criteria are not met and the Company is unable to restructure the program, no further funding of receivables will be permitted and the timing of the Company’s expected cash flows from over-collateralization will be delayed. As of April 30, 2021, these criteria were met. Other Borrowings — In connection with the Company’s international financing operations, the Company has entered into revolving structured financing debt programs related to its fixed-term lease and loan products sold in Canada, Europe, Australia, and New Zealand. The Canadian facility, which is collateralized solely by Canadian loan and lease payments and associated equipment, had a total debt capacity of $366 million as of April 30, 2021, and is effective through January 16, 2025. The European facility, which is collateralized solely by European loan and lease payments and associated equipment, had a total debt capacity of $727 million as of April 30, 2021, and is effective through June 14, 2022. The Australia and New Zealand facility, which is collateralized solely by Australia and New Zealand loan and lease payments and associated equipment, had a total debt capacity of $349 million as of April 30, 2021, and is effective through April 20, 2023. Note Payable — On August 7, 2020, the Company entered into two new unsecured credit agreements to fund receivables in Mexico. As of April 30, 2021, the aggregate principal amount of the notes payable was $250 million. The notes bear interest at an annual rate of 3.37% and will mature on June 1, 2022. Dell Bank Senior Unsecured Eurobonds — On October 17, 2019, Dell Bank International D.A.C. issued 500 million Euro of 0.625% senior unsecured three year eurobonds due October 2022. On June 24, 2020, Dell Bank International D.A.C. issued an additional 500 million Euro of 1.625% senior unsecured four year eurobonds due June 2024. The issuances of the senior unsecured eurobonds support the expansion of the financing operations in Europe. Variable Interest Entities In connection with the asset-based financing facilities, securitization facilities, and fixed-term securitization offerings discussed above, the Company transfers certain U.S. and European loan and lease payments and associated equipment to SPEs that meet the definition of a Variable Interest Entity (“VIE”) and are consolidated, along with the associated debt detailed above, into the Condensed Consolidated Financial Statements, as the Company is the primary beneficiary of those VIEs. The SPEs are bankruptcy-remote legal entities with separate assets and liabilities. The purpose of the SPEs is to facilitate the funding of customer loan and lease payments and associated equipment in the capital markets. Some of the SPEs have entered into financing arrangements with multi-seller conduits that, in turn, issue asset-backed debt securities in the capital markets. DFS debt outstanding held by the consolidated VIEs is collateralized by the loan and lease payments and associated equipment. The Company’s risk of loss related to securitized receivables is limited to the amount by which the Company’s right to receive collections for assets securitized exceeds the amount required to pay interest, principal, and fees and expenses related to the asset-backed securities. The Company provides credit enhancement to the securitization in the form of over-collateralization. The following table presents financing receivables and equipment under operating leases, net held by the consolidated VIEs as of the dates indicated: April 30, 2021 January 29, 2021 (in millions) Assets held by consolidated VIEs Other current assets $ 874 $ 838 Financing receivables, net of allowance Short-term $ 3,478 $ 3,534 Long-term $ 3,267 $ 3,314 Property, plant, and equipment, net $ 827 $ 792 Liabilities held by consolidated VIEs Debt, net of unamortized debt issuance costs Short-term $ 4,055 $ 4,208 Long-term $ 2,938 $ 2,841 Loan and lease payments and associated equipment transferred via securitization through SPEs were $1.4 billion and $1.8 billion for the three months ended April 30, 2021 and May 1, 2020, respectively. Customer Receivables Sales To manage certain concentrations of customer credit exposure, the Company may sell selected fixed-term customer receivables to unrelated third parties on a periodic basis, without recourse. The amount of customer receivables sold for this purpose was $101 million and $21 million for the three months ended April 30, 2021 and May 1, 2020, respectively. The Company’s continuing involvement in such customer receivables is primarily limited to servicing arrangements. |
LEASES
LEASES | 3 Months Ended |
Apr. 30, 2021 | |
Leases [Abstract] | |
LEASES | NOTE 4 — LEASES The Company enters into leasing transactions in which the Company is the lessee. These lease contracts are typically classified as operating leases. The Company’s lease contracts are generally for office buildings used to conduct its business, and the determination of whether such contracts contain leases generally does not require significant estimates or judgments. The Company also leases certain global logistics warehouses, employee vehicles, and equipment. As of April 30, 2021, the remaining terms of the Company’s leases range from less than one month to approximately 25 years. The Company also enters into leasing transactions in which the Company is the lessor, primarily through customer financing arrangements offered through DFS. DFS originates leases that are primarily classified as either sales-type leases or operating leases. See Note 3 of the Notes to the Condensed Consolidated Financial Statements for more information on the DFS lease portfolio and related lease disclosures. Financial information associated with the Company’s leases in which the Company is the lessee is contained in this Note. As of both April 30, 2021 and January 29, 2021, there were no material finance leases for which the Company was a lessee. The following table presents components of lease costs included in the Condensed Consolidated Statements of Income for the periods indicated: Three Months Ended April 30, 2021 May 1, 2020 (in millions) Operating lease costs $ 142 $ 131 Variable costs 33 44 Total lease costs $ 175 $ 175 During both the three months ended April 30, 2021 and May 1, 2020, sublease income, finance lease costs, and short-term lease costs were immaterial. The following table presents supplemental information related to operating leases included in the Condensed Consolidated Statements of Financial Position as of the dates indicated: Classification April 30, 2021 January 29, 2021 (in millions, except for term and discount rate) Operating lease ROU assets Other non-current assets $ 2,088 $ 2,117 Current operating lease liabilities Accrued and other current liabilities $ 440 $ 436 Non-current operating lease liabilities Other non-current liabilities 1,791 1,787 Total operating lease liabilities $ 2,231 $ 2,223 Weighted-average remaining lease term (in years) 8.76 8.85 Weighted-average discount rate 3.40 % 3.47 % The following table presents supplemental cash flow information related to leases for the periods indicated: Three Months Ended April 30, 2021 May 1, 2020 (in millions) Cash paid for amounts included in the measurement of lease liabilities — $ 134 $ 131 ROU assets obtained in exchange for new operating lease liabilities $ 117 $ 120 The following table presents the future maturities of the Company’s operating lease liabilities under non-cancelable leases and reconciles the undiscounted cash flows for these leases to the lease liability recognized on the Condensed Consolidated Statements of Financial Position as of the date indicated: April 30, 2021 (in millions) Fiscal 2022 (remaining nine months) $ 351 Fiscal 2023 469 Fiscal 2024 347 Fiscal 2025 260 Fiscal 2026 211 Thereafter 1,010 Total lease payments 2,648 Less: Imputed interest (417) Total $ 2,231 Current operating lease liabilities $ 440 Non-current operating lease liabilities $ 1,791 Future lease commitments after Fiscal 2026 include the ground lease on VMware, Inc.’s Palo Alto, California headquarters facilities, which expires in Fiscal 2047. As of April 30, 2021, the Company has additional operating leases that have not yet commenced of $97 million. These operating leases will commence during Fiscal 2022 with lease terms of one year to 10 years. |
DEBT
DEBT | 3 Months Ended |
Apr. 30, 2021 | |
Debt Disclosure [Abstract] | |
DEBT | NOTE 5 — DEBT The following table presents the Company’s outstanding debt as of the dates indicated: April 30, 2021 January 29, 2021 (in millions) Secured Debt Senior Secured Credit Facilities: 2.00% Term Loan B-2 Facility due September 2025 $ 3,135 $ 3,143 1.90% Term Loan A-6 Facility due March 2024 3,134 3,134 First Lien Notes: 5.45% due June 2023 3,750 3,750 4.00% due July 2024 1,000 1,000 5.85% due July 2025 1,000 1,000 6.02% due June 2026 4,500 4,500 4.90% due October 2026 1,750 1,750 6.10% due July 2027 500 500 5.30% due October 2029 1,750 1,750 6.20% due July 2030 750 750 8.10% due July 2036 1,500 1,500 8.35% due July 2046 2,000 2,000 Unsecured Debt Unsecured Notes and Debentures: 4.625% due April 2021 — 400 7.10% due April 2028 300 300 6.50% due April 2038 388 388 5.40% due September 2040 264 264 Senior Notes: 5.875% due June 2021 — 1,075 7.125% due June 2024 1,625 1,625 EMC Notes: 3.375% due June 2023 1,000 1,000 Debt of Public Subsidiary VMware Notes: 2.95% due August 2022 1,500 1,500 4.50% due May 2025 750 750 4.65% due May 2027 500 500 3.90% due August 2027 1,250 1,250 4.70% due May 2030 750 750 DFS Debt (Note 3) 9,753 9,666 Other 2.46% Margin Loan Facility due April 2022 4,000 4,000 Other 304 235 Total debt, principal amount $ 47,153 $ 48,480 April 30, 2021 January 29, 2021 (in millions) Total debt, principal amount $ 47,153 $ 48,480 Unamortized discount, net of unamortized premium (185) (194) Debt issuance costs (285) (302) Total debt, carrying value $ 46,683 $ 47,984 Total short-term debt, carrying value $ 8,748 $ 6,362 Total long-term debt, carrying value $ 37,935 $ 41,622 During the three months ended April 30, 2021, the net decrease in the Company’s debt balance was primarily due to: • repayment of $1,075 million principal amount of the 5.875% Senior Notes due June 2021; and • repayment of $400 million principal amount of the 4.625% Unsecured Notes due April 2021. Secured Debt Senior Secured Credit Facilities — The Company has entered into a credit agreement that provides for senior secured credit facilities (the “Senior Secured Credit Facilities”) comprising (a) term loan facilities and (b) a senior secured Revolving Credit Facility, which provides for a borrowing capacity of up to $4.5 billion for general corporate purposes, including 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 April 30, 2021, available borrowings under the Revolving Credit Facility totaled $4.5 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. On February 18, 2021, the Company entered into an eighth refinancing amendment to the credit agreement for the Senior Secured Credit Facilities to refinance the existing term B loans (the “Original Term B Loans”) with a new term loan B facility consisting of an aggregate principal amount of $3,143 million refinancing term B-2 loans (the “Refinancing Term B-2 Loans”) maturing on September 19, 2025. Proceeds from the Refinancing Term B-2 Loans, together with other funds available to the borrowers, were used to repay in full the Original Term B Loans and all accrued and unpaid fees in respect thereof. Except for a change in the interest rate, the Refinancing Term B-2 Loans have substantially the same terms as the Original Term B Loans under the sixth refinancing amendment to the Senior Secured Credit Agreement. Amortization payments on the Refinancing Term B-2 Loans are equal to 0.25% of the aggregate principal amount of Refinancing Term B-2 Loans outstanding on the effective date of the eighth refinancing amendment, payable at the end of each fiscal quarter, commencing with the fiscal quarter ended April 30, 2021. 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, or (b) the London Interbank Offered Rate (“LIBOR”). The Term Loan A-6 Facility bears interest at LIBOR plus an applicable margin ranging from 1.25% to 2.00% or a base rate plus an applicable margin ranging from 0.25% to 1.00%. The Refinancing Term B-2 Loans bear interest at LIBOR plus an applicable margin of 1.75% or a base rate plus an applicable margin of 0.75%. 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-6 Facility amortizes in equal quarterly installments in aggregate annual amounts equal to 5% of the original principal amount in each of the first four years after the facility closing date of March 13, 2019, and 80% of the original principal amount in the fifth year after March 13, 2019. The Revolving Credit Facility has no amortization. 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., a wholly-owned subsidiary of the Company ( “ 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 — Dell International L.L.C. and EMC Corporation, both of which are wholly-owned subsidiaries of Dell Technologies Inc., completed private offerings of multiple series of senior secured notes (collectively, the “First Lien Notes”) which were issued on June 1, 2016, March 20, 2019, and April 9, 2020 in aggregate principal amounts of $20.0 billion, $4.5 billion, and $2.25 billion, respectively. Interest on the First Lien Notes 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, Dell, and certain wholly-owned material subsidiaries of the issuers and the guarantors, subject to certain exceptions. The Company 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, in the case of the First Lien Notes issued on June 1, 2016, and within five years after their respective issue dates, in the case of the First Lien Notes issued on March 20, 2019 and April 9, 2020. On April 15, 2021, Dell International L.L.C., EMC Corporation and the guarantors of the First Lien Notes (collectively, the “Registrants”) filed a registration statement with the SEC relating to the proposed exchange offer of such registered notes. Subsequent to the three months ended April 30, 2021, on May 13, 2021, the Registrants filed an amendment to the registration statement, which was declared effective on May 17, 2021. In addition, on May 17, 2021, the Registrants filed a prospectus with the SEC and launched the exchange offer. The exchange offer expires at 5:00 p.m., New York City time, on June 15, 2021, unless extended by Dell International L.L.C. and EMC Corporation. During this period holders of the First Lien Notes may elect to tender their unregistered outstanding notes for freely tradable exchange notes that have been registered under the Securities Act. The Company does not currently intend to extend the expiration date. Unsecured Debt Unsecured Notes and Debentures — The Company has outstanding unsecured notes and debentures (collectively, the “Unsecured Notes and Debentures”) that were issued by Dell prior to the acquisition of Dell by Dell Technologies Inc. in the going-private transaction that closed in October 2013. Interest on outstanding borrowings is payable semiannually. 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 outstanding 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 outstanding borrowings is payable semiannually. VMware Notes — VMware, Inc. completed public offerings of unsecured senior notes in the aggregate amounts of $4.0 billion and $2.0 billion on August 21, 2017 and April 7, 2020, respectively (the “VMware Notes”). None of the net proceeds of such borrowings will be made available to support the operations or satisfy any corporate purposes of Dell Technologies, other than the operations and corporate purposes of VMware, Inc. and VMware, Inc.’s subsidiaries. Interest on outstanding borrowings is payable semiannually. VMware Revolving Credit Facility — On September 12, 2017, VMware, Inc. entered into an unsecured credit agreement, establishing a revolving credit facility (the “VMware Revolving Credit Facility”) with a syndicate of lenders that provides the company with a borrowing capacity of up to $1.0 billion for VMware, Inc. general corporate purposes. Commitments under the VMware Revolving Credit Facility are available for a period of five years, which may be extended, subject to the satisfaction of certain conditions, by up to two one year periods. The credit agreement contains certain representations, warranties, and covenants. Commitment fees, interest rates, and other terms of borrowing under the VMware Revolving Credit Facility may vary based on VMware, Inc.’s external credit ratings. None of the net proceeds of such borrowings will be made available to support the operations or satisfy any corporate purposes of Dell Technologies, other than the operations and corporate purposes of VMware, Inc. and VMware, Inc.’s subsidiaries. As of April 30, 2021, there were no outstanding borrowings under the VMware Revolving Credit Facility. DFS Debt See Note 3 and Note 6 of the Notes to the Condensed Consolidated Financial Statements, respectively, for discussion of DFS debt and the interest rate swap agreements that hedge a portion of that debt. Other Margin Loan Facility — On April 12, 2017, the Company entered into the Margin Loan Facility in an aggregate principal amount of $2.0 billion. In connection with the Class V transaction described in Note 1 of the Notes to the Condensed Consolidated Financial Statements, on December 20, 2018, the Company amended the Margin Loan Facility to increase the aggregate principal amount to $3.35 billion. In connection with obtaining the Term Loan A-6 Facility during the fiscal year ended January 31, 2020, the Company increased the aggregate principal amount of the Margin Loan Facility to $4.0 billion. VMware Holdco LLC, a wholly-owned subsidiary of EMC, is the borrower under the Margin Loan Facility, which is secured by approximately 76 million shares of Class B common stock of VMware, Inc. and approximately 24 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. Aggregate Future Maturities The following table presents the aggregate future maturities of the Company’s debt as of April 30, 2021 for the periods indicated: Maturities by Fiscal Year 2022 2023 2024 2025 2026 Thereafter Total (in millions) Senior Secured Credit Facilities and First Lien Notes $ 31 $ 213 $ 6,007 $ 1,758 $ 4,017 $ 12,743 $ 24,769 Unsecured Notes and Debentures — — — — — 952 952 Senior Notes and EMC Notes — — 1,000 1,625 — — 2,625 VMware Notes — 1,500 — — 750 2,500 4,750 DFS Debt 3,844 4,249 774 850 36 — 9,753 Margin Loan Facility — 4,000 — — — — 4,000 Other 11 11 171 78 8 25 304 Total maturities, principal amount 3,886 9,973 7,952 4,311 4,811 16,220 47,153 Associated carrying value adjustments (6) (15) (32) (71) (47) (299) (470) Total maturities, carrying value amount $ 3,880 $ 9,958 $ 7,920 $ 4,240 $ 4,764 $ 15,921 $ 46,683 Covenants and Unrestricted Net Assets — The credit agreement for the Senior Secured Credit Facilities contains customary negative covenants that generally limit the ability of Denali Intermediate Inc., a wholly-owned subsidiary of Dell Technologies (“Denali 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. 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. As of April 30, 2021, 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. Substantially all of the net assets of the Company’s consolidated subsidiaries were restricted, with the exception of the Company’s unrestricted subsidiaries, primarily VMware, Inc., Secureworks, and their respective subsidiaries, as of April 30, 2021. The Term Loan A-6 Facility and the Revolving Credit Facility are subject to a first lien 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 April 30, 2021. |
DERIVATIVE INSTRUMENTS AND HEDG
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | 3 Months Ended |
Apr. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | NOTE 6 — DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES As part of its risk management strategy, the Company uses derivative instruments, primarily foreign currency forward and option contracts and interest rate swaps, to hedge certain foreign currency and interest rate exposures, respectively. The Company’s objective is to offset gains and losses resulting from these exposures with gains and losses on the derivative contracts used to hedge the exposures, thereby reducing volatility of earnings and protecting the fair values of assets and liabilities. The earnings effects of the derivative instruments are presented in the same income statement line items as the earnings effects of the hedged items. For derivatives designated as cash flow hedges, the Company assesses hedge effectiveness both at the onset of the hedge and at regular intervals throughout the life of the derivative. The Company does not have any derivatives designated as fair value hedges. 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 months ended April 30, 2021 and May 1, 2020, 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 expanded offerings of DFS in Europe, forward contracts are used to hedge financing receivables denominated in foreign currencies other than Euro. These contracts are not designated for hedge accounting and most expire within three years or less. Interest Rate Risk The Company uses interest rate swaps to hedge the variability in cash flows related to the interest rate payments on structured financing debt. The interest rate swaps economically convert the variable rate on the structured financing debt to a fixed interest rate to match the underlying fixed rate being received on fixed-term customer leases and loans. These contracts are not designated for hedge accounting and most expire within 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 five 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 Euros linked to the one-month Euribor. The notional value of the swaps amortizes in line with the expected cash flows and run-off of the securitized assets. The swaps are not designated for hedge accounting and expire within five years or less. Derivative Instruments Notional Amounts of Outstanding Derivative Instruments April 30, 2021 January 29, 2021 (in millions) Foreign exchange contracts: Designated as cash flow hedging instruments $ 6,967 $ 6,840 Non-designated as hedging instruments 9,449 9,890 Total $ 16,416 $ 16,730 Interest rate contracts: Non-designated as hedging instruments $ 6,011 $ 5,859 Effect of Derivative Instruments Designated as Hedging Instruments on the Condensed Consolidated Statements of Financial Position and the Condensed Consolidated Statements of Income Derivatives in Cash Flow Hedging Relationships Gain (Loss) Recognized in Accumulated OCI, Net of Tax, on Derivatives Location of Gain (Loss) Reclassified from Accumulated OCI into Income Gain (Loss) Reclassified from Accumulated OCI into Income (in millions) (in millions) For the three months ended April 30, 2021 Total net revenue $ (29) Foreign exchange contracts $ (1) Total cost of net revenue 2 Interest rate contracts — Interest and other, net — Total $ (1) $ (27) For the three months ended May 1, 2020 Total net revenue $ 96 Foreign exchange contracts $ 167 Total cost of net revenue 4 Interest rate contracts — Interest and other, net — Total $ 167 $ 100 Effect of Derivative Instruments Not Designated as Hedging Instruments on the Condensed Consolidated Statements of Income Three Months Ended April 30, 2021 May 1, 2020 Location of Gain (Loss) Recognized (in millions) Gain (Loss) Recognized: Foreign exchange contracts $ (24) $ 52 Interest and other, net Interest rate contracts 1 (39) Interest and other, net Total $ (23) $ 13 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 following tables present the fair value of those derivative instruments presented on a gross basis as of the dates indicated: April 30, 2021 Other Current Other Non- Other Current Other Non-Current Total (in millions) Derivatives designated as hedging instruments: Foreign exchange contracts in an asset position $ 45 $ — $ 19 $ — $ 64 Foreign exchange contracts in a liability position (20) — (19) — (39) Net asset (liability) 25 — — — 25 Derivatives not designated as hedging instruments: Foreign exchange contracts in an asset position 111 — 57 — 168 Foreign exchange contracts in a liability position (76) — (127) (7) (210) Interest rate contracts in an asset position — 9 — — 9 Interest rate contracts in a liability position — — — (26) (26) Net asset (liability) 35 9 (70) (33) (59) Total derivatives at fair value $ 60 $ 9 $ (70) $ (33) $ (34) January 29, 2021 Other Current Other Non- Other Current Other Non-Current Total (in millions) Derivatives designated as hedging instruments: Foreign exchange contracts in an asset position $ 28 $ — $ 18 $ — $ 46 Foreign exchange contracts in a liability position (10) — (15) — (25) Net asset (liability) 18 — 3 — 21 Derivatives not designated as hedging instruments: Foreign exchange contracts in an asset position 184 — 58 — 242 Foreign exchange contracts in a liability position (108) — (159) (4) (271) Interest rate contracts in an asset position — 10 — — 10 Interest rate contracts in a liability position — — — (31) (31) Net asset (liability) 76 10 (101) (35) (50) Total derivatives at fair value $ 94 $ 10 $ (98) $ (35) $ (29) The following tables present the gross amounts of the Company’s derivative instruments, amounts offset due to master netting agreements with the Company’s counterparties, and the net amounts recognized in the Condensed Consolidated Statements of Financial Position as of the dates indicated: April 30, 2021 Gross Amounts of Recognized Assets/ (Liabilities) Gross Amounts Offset in the Statement of Financial Position Net Amounts of Assets/ (Liabilities) Presented in the Statement of Financial Position Gross Amounts not Offset in the Statement of Financial Position Net Amount of Assets/ (Liabilities) Recognized in the Statement of Financial Position Financial Instruments Cash Collateral Received or Pledged (in millions) Derivative instruments: Financial assets $ 242 $ (173) $ 69 $ — $ — $ 69 Financial liabilities (276) 173 (103) — 6 (97) Total derivative instruments $ (34) $ — $ (34) $ — $ 6 $ (28) January 29, 2021 Gross Amounts of Recognized Assets/ (Liabilities) Gross Amounts Offset in the Statement of Financial Position Net Amounts of Assets/ (Liabilities) Presented in the Statement of Financial Position Gross Amounts not Offset in the Statement of Financial Position Net Amount of Assets/ (Liabilities) Recognized in the Statement of Financial Position Financial Instruments Cash Collateral Received or Pledged (in millions) Derivative instruments: Financial assets $ 298 $ (194) $ 104 $ — $ — $ 104 Financial liabilities (327) 194 (133) — 2 (131) Total derivative instruments $ (29) $ — $ (29) $ — $ 2 $ (27) |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 3 Months Ended |
Apr. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | NOTE 7 — GOODWILL AND INTANGIBLE ASSETS Goodwill The Infrastructure Solutions Group, Client Solutions Group, and VMware reporting units are consistent with the reportable segments identified in Note 16 of the Notes to the Condensed Consolidated Financial Statements. Offerings within Other businesses as defined below represent separate reporting units. The following table presents goodwill allocated to the Company’s reportable segments and changes in the carrying amount of goodwill as of the dates indicated: Infrastructure Solutions Group Client Solutions Group VMware Other Businesses (a) Total (in millions) Balance as of January 29, 2021 $ 15,324 $ 4,237 $ 20,802 $ 466 $ 40,829 Impact of foreign currency translation 10 — — — 10 Balance as of April 30, 2021 $ 15,334 $ 4,237 $ 20,802 $ 466 $ 40,839 ____________________ (a) Goodwill allocated to Other businesses consists of Secureworks, Virtustream, and Boomi. Goodwill Impairment Tests — 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. No impairment test was performed other than the Company’s annual impairment review in the third quarter of Fiscal 2021. For the annual impairment review in the third quarter of Fiscal 2021, the Company elected to bypass the assessment of qualitative factors to determine whether it was more likely than not that the fair value of a reporting unit was less than its carrying amount, including goodwill. In electing to bypass the qualitative assessment, the Company proceeded directly to performing a quantitative goodwill impairment test to measure the fair value of each goodwill reporting unit relative to its carrying amount, and to determine the amount of goodwill impairment loss to be recognized, if any. 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 combination of public company multiples and discounted cash flow methodologies, unless the reporting unit relates to a publicly-traded entity (VMware, Inc. or Secureworks), in which case the fair value is determined based primarily on the public company market valuation. The discounted cash flow and public company multiples methodologies require significant judgment, including estimation of future revenues, gross margins, and operating expenses, which is dependent on internal forecasts, current and anticipated economic conditions and trends, selection of market multiples through assessment of the reporting unit’s performance relative to peer competitors, the estimation of the long-term revenue growth rate and discount rate of the Company’s business, and the determination of the Company’s weighted average cost of capital. Changes in these estimates and assumptions could materially affect the fair value of the goodwill reporting unit, potentially resulting in a non-cash impairment charge. The fair value of the indefinite-lived trade names is generally estimated using discounted cash flow methodologies. The discounted cash flow methodology requires significant judgment, including estimation of future revenue, the estimation of the long-term revenue growth rate of the Company’s business and the determination of the Company’s weighted average cost of capital and royalty rates. Changes in these estimates and assumptions could materially affect the fair value of the indefinite-lived intangible assets, potentially resulting in a non-cash impairment charge. Based on the results of the annual impairment test performed during the fiscal year ended January 29, 2021, the fair values of each of the reporting units exceeded their carrying values. Intangible Assets The following table presents the Company’s intangible assets as of the dates indicated: April 30, 2021 January 29, 2021 Gross Accumulated Net Gross Accumulated Net (in millions) Customer relationships $ 22,394 $ (15,864) $ 6,530 $ 22,394 $ (15,448) $ 6,946 Developed technology 15,499 (12,409) 3,090 15,488 (12,136) 3,352 Trade names 1,285 (931) 354 1,285 (909) 376 Definite-lived intangible assets 39,178 (29,204) 9,974 39,167 (28,493) 10,674 Indefinite-lived trade names 3,755 — 3,755 3,755 — 3,755 Total intangible assets $ 42,933 $ (29,204) $ 13,729 $ 42,922 $ (28,493) $ 14,429 Amortization expense related to definite-lived intangible assets was approximately $0.7 billion and $0.9 billion for the three months ended April 30, 2021 and May 1, 2020, respectively. There were no material impairment charges related to intangible assets during the three months ended April 30, 2021 or May 1, 2020. During the three months ended May 1, 2020, the Company recognized proceeds and a gain of $120 million from the sale of certain internally developed intellectual property assets. The following table presents the estimated future annual pre-tax amortization expense of definite-lived intangible assets as of the date indicated: April 30, 2021 (in millions) Fiscal 2022 (remaining nine months) $ 1,993 Fiscal 2023 1,826 Fiscal 2024 1,457 Fiscal 2025 1,107 Fiscal 2026 861 Thereafter 2,730 Total $ 9,974 |
DEFERRED REVENUE
DEFERRED REVENUE | 3 Months Ended |
Apr. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
DEFERRED REVENUE | NOTE 8 — DEFERRED REVENUE Deferred Revenue — Deferred revenue is recorded for support and deployment services, software maintenance, professional services, training, and software-as-a-service when the Company has a right to invoice or payments have been received for undelivered products or services where transfer of control has not occurred. Revenue is recognized on these items when the revenue recognition criteria are met, generally resulting in ratable recognition over the contract term. The Company also has deferred revenue related to undelivered hardware and professional services, consisting of installations and consulting engagements, which are recognized as the Company’s performance obligations under the contract are completed. The following table presents the changes in the Company’s deferred revenue for the periods indicated: Three Months Ended April 30, 2021 May 1, 2020 (in millions) Deferred revenue: Deferred revenue at beginning of period $ 30,801 $ 27,800 Revenue deferrals 6,480 5,423 Revenue recognized (5,905) (5,356) Other (a) — (250) Deferred revenue at end of period $ 31,376 $ 27,617 Short-term deferred revenue $ 16,835 $ 14,766 Long-term deferred revenue $ 14,541 $ 12,851 ____________________ (a) For the three months ended May 1, 2020, Other represents the reclassification of RSA Security deferred revenue to liabilities held for sale. See Note 1 of the Notes to the Condensed Consolidated Financial Statements for more information about the divestiture of RSA Security. Remaining Performance Obligations — Remaining performance obligations represent the aggregate amount of the transaction price allocated to performance obligations not delivered, or partially undelivered, as of the end of the reporting period. Remaining performance obligations include deferred revenue plus unbilled amounts not yet recorded in deferred revenue. The value of the transaction price allocated to remaining performance obligations as of April 30, 2021 was approximately $42 billion. The Company expects to recognize approximately 61% of remaining performance obligations as revenue in the next twelve months, and the remainder thereafter. The aggregate amount of the transaction price allocated to remaining performance obligations does not include amounts owed under cancellable contracts where there is no substantive termination penalty. The Company applied the practical expedient to exclude the value of remaining performance obligations for contracts for which revenue is recognized at the amount to which the Company has the right to invoice for services performed. Remaining performance obligation estimates are subject to change and are affected by several factors, including terminations, changes in the scope of contracts, periodic revalidation, adjustments for revenue that have not materialized, and adjustments for currency. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Apr. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 9 — 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: Class Actions Related to the Class V Transaction — Four purported stockholders brought putative class action complaints arising out of the Class V transaction described in Note 1 of the Notes to the Condensed Consolidated Financial Statements. The actions were captioned Hallandale Beach Police and Fire Retirement Plan v. Michael Dell et al. (Civil Action No. 2018-0816-JTL), Howard Karp v. Michael Dell et al. (Civil Action No. 2019-0032-JTL), Miramar Police Officers’ Retirement Plan v. Michael Dell et al. (Civil Action No. 2019-0049-JTL), and Steamfitters Local 449 Pension Plan v. Michael Dell et al. (Civil Action No. 2019-0115-JTL). The four actions were consolidated in the Delaware Chancery Court into In Re Dell Class V Litigation (Consol. C.A. No. 2018-0816-JTL), which names as defendants the Company’s board of directors and certain stockholders of the Company, including Michael S. Dell. The plaintiffs generally allege that the defendants breached their fiduciary duties to the former holders of Class V Common Stock in connection with the Class V transaction by allegedly causing the Company to enter into a transaction that favored the interests of the controlling stockholders at the expense of such former stockholders. The plaintiffs seek, among other remedies, a judicial declaration that the defendants breached their fiduciary duties and an award of damages, fees, and costs. The plaintiffs filed an amended complaint in August 2019 making substantially similar allegations to those described above. The defendants filed a motion to dismiss the action in September 2019. The court denied the motion in June 2020 and the case is currently in the discovery phase. Trial is currently scheduled to begin on May 3, 2022. Patent Litigation — On April 25, 2019, Cirba Inc. and Cirba IP, Inc. (collectively, “Cirba”) filed a lawsuit against VMware, Inc. in the United States District Court for the District of Delaware (the “Delaware Court”), alleging two patent infringement claims and three trademark infringement-related claims (the “First Action”). Following a hearing on August 6, 2019, the Delaware Court denied Cirba’s preliminary injunction motion. On August 20, 2019, VMware, Inc. filed counterclaims against Cirba, asserting among other claims that Cirba is infringing four VMware, Inc. patents. The Delaware Court severed those claims from the January 2020 trial on Cirba’s claims. On January 24, 2020, a jury returned a verdict that VMware, Inc. had willfully infringed Cirba’s two patents and awarded approximately $237 million in damages. As to Cirba’s trademark-related claims, the jury found that VMware, Inc. was not liable. A total of $237 million was accrued for the First Action as of January 31, 2020, which reflected the estimated losses that were considered both probable and reasonably estimable at that time. The amount accrued for this matter was included in Accrued and other in the Consolidated Statements of Financial Position as of January 31, 2020, and the charge was classified in Selling, general and administrative in the Consolidated Statements of Income (Loss) for the fiscal year ended January 31, 2020. On March 9, 2020, the parties filed post-trial motions in the First Action. On December 21, 2020, the Delaware Court granted VMware, Inc.’s request for a new trial based, in part, on Cirba’s Inc.’s lack of standing, set aside the verdict and damages award, and denied Cirba’s post-trial motions (the “Post-Trial Order”). On October 22, 2019, VMware, Inc. filed a separate lawsuit against Cirba in the United States District Court for the Eastern District of Virginia for infringing four additional VMware, Inc. patents (The “Second Action”). The Virginia court transferred the Second Action to the Delaware Court on February 25, 2020. On March 23, 2020, Cirba filed a counterclaim asserting one additional patent against VMware, Inc. The Delaware Court consolidated the First and Second Actions and ordered a consolidated trial on all of the parties’ patent infringement claims and counterclaims. On May 3, 2021, the Court denied Cirba’s motion to certify the Post-Trial Order to enable an interlocutory appeal to the United States Court of Appeals for the Federal Circuit. Also, on May 3, 2021, the Court granted Cirba’s motion for leave to assert an additional patent against VMware, Inc. Separately, in February 2021, the U.S. Patent and Trademark Office (“PTO”) granted VMware, Inc.’s ex parte reexamination request as to the ‘687 patent (which was at issue in the January 2020 trial and subject to the Court’s new trial order). In addition, in May 2021, the PTO’s Patent Trial and Appeal Board instituted Inter Partes Review (“IPR”) of the ‘492 patent in response to VMware, Inc.’s IPR petition. As of January 29, 2021, VMware, Inc. reassessed its estimated loss accrual for the First Action based on the Post-Trial Order and determined that a loss was no longer probable and reasonably estimable with respect to the consolidated First and Second Actions. Accordingly, the estimated loss accrual recognized during the fiscal year ended January 31, 2020 totaling $237 million was adjusted to $0 with the credit included in Selling, general, and administrative in the Consolidated Statements of Income (Loss) for the fiscal year ended January 29, 2021. VMware, Inc. has reported that is unable at this time to assess whether, or to what extent, it may be found liable and, if found liable, what the damages may be. VMware, Inc. intends to vigorously defend itself in this matter. Class Actions Related to VMware, Inc.’s Acquisition of Pivotal — Two purported stockholders brought putative class action complaints arising out of VMware, Inc.’s acquisition of Pivotal Software, Inc. on December 30, 2019 as described in Note 1 of the Notes to the Condensed Consolidated Financial Statements. The two actions were consolidated in the Delaware Chancery Court into In re: Pivotal Software, Inc. Stockholders Litigation (Civil Action No. 2020-0440-KSJM). The complaint names as defendants the Company, VMware, Inc., Michael S. Dell, and certain officers of Pivotal. The plaintiffs generally allege that the defendants breached their fiduciary duties to the former holders of Pivotal Class A Common Stock in connection with VMware, Inc.’s acquisition of Pivotal by allegedly causing Pivotal to enter into a transaction that favored the interests of Pivotal’s controlling stockholders at the expense of such former stockholders. The plaintiffs seek, among other remedies, a judicial declaration that the defendants breached their fiduciary duties and an award of damages, fees, and costs. Other Litigation — 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. In accordance with the relevant accounting guidance, the Company provides disclosures of matters where it is at least reasonably possible that the Company could experience a material loss exceeding the amounts already accrued for these or other proceedings or matters. In addition, the Company also discloses matters based on its consideration of other matters and qualitative factors, including the experience of other companies in the industry, and investor, customer, and employee relations considerations. As of April 30, 2021, 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 other parties for losses incurred from certain events as defined in the relevant contract, such as litigation, regulatory penalties, or claims relating to past performance. Such indemnification obligations may not be subject to maximum loss clauses. Historically, payments related to these indemnifications have not been material to the Company. |
INCOME AND OTHER TAXES
INCOME AND OTHER TAXES | 3 Months Ended |
Apr. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME AND OTHER TAXES | NOTE 10 — INCOME AND OTHER TAXES For the three months ended April 30, 2021, the Company’s effective income tax rate was 5.0% on pre-tax income of $987 million. For the three months ended May 1, 2020, the Company’s effective income tax rate was -33.8% on pre-tax income of $136 million. The changes in the Company’s effective income tax rate is primarily driven by higher discrete tax benefits on higher pre-tax income and a change in the Company’s jurisdictional mix of income. For the three months ended April 30, 2021, the Company’s effective income tax rate includes discrete tax benefits of $103 million related to stock-based compensation. In comparison, for the three months ended May 1, 2020, the Company’s effective income tax rate includes a discrete tax benefit of $59 million from an intra-entity asset transfer of certain of Pivotal’s intellectual property to an Irish subsidiary that was completed by VMware, Inc. during the quarter. The effective income tax rate for future quarters of Fiscal 2022 may be impacted by the actual mix of jurisdictions in which income is generated, as well as the impact of any discrete tax items. The differences between the estimated effective income tax rates and the U.S. federal statutory rate of 21% principally result from the Company’s geographical distribution of income, differences between the book and tax treatment of certain items, and the discrete tax items discussed above. In certain jurisdictions, the Company’s tax rate is significantly less than the applicable statutory rate as a result of tax holidays. The majority of the Company’s foreign income that is subject to these tax holidays and lower tax rates is attributable to Singapore and China. A significant portion of these income tax benefits relate to a tax holiday that will be effective until January 31, 2029. The Company’s other tax holidays will expire in whole or in part during fiscal years 2022 through 2030. 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. As of April 30, 2021, the Company was not aware of any matters of non-compliance related to these tax holidays. The Internal Revenue Service (“IRS”) is currently examining fiscal years 2015 through 2019. The Company believes it has valid positions supporting its tax returns and that it is adequately reserved. 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 valid positions supporting its tax returns and 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 the fiscal year ended January 29, 2010. Judgment is required in evaluating the Company’s uncertain tax positions and determining the Company’s provision for income taxes. The unrecognized tax benefits were $1.4 billion as of both April 30, 2021 and January 29, 2021, 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 is required in certain situations to provide collateral guarantees or indemnification to regulators and tax authorities until the matter is resolved. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 3 Months Ended |
Apr. 30, 2021 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | NOTE 11 — ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Accumulated other comprehensive income (loss) is presented in stockholders’ equity (deficit) in the Condensed Consolidated Statements of Financial Position and consists of amounts related to foreign currency translation adjustments, unrealized net gains (losses) on cash flow hedges, and actuarial net gains (losses) from pension and other postretirement plans. The following table presents changes in accumulated other comprehensive income (loss), net of tax, by the following components as of the dates indicated: Foreign Currency Translation Adjustments Cash Flow Hedges Pension and Other Postretirement Plans Accumulated Other Comprehensive Income (Loss) (in millions) Balances as of January 29, 2021 $ (150) $ (86) $ (78) $ (314) Other comprehensive income (loss) before reclassifications (7) (1) 1 (7) Amounts reclassified from accumulated other comprehensive income (loss) — 27 — 27 Total change for the period (7) 26 1 20 Less: Change in comprehensive income (loss) attributable to non-controlling interests — — — — Balances as of April 30, 2021 $ (157) $ (60) $ (77) $ (294) Amounts related to the Company’s cash flow hedges are reclassified to net income during the same period in which the items being hedged are recognized in earnings. See Note 6 of the Notes to the Condensed Consolidated Financial Statements for more information on the Company’s derivative instruments. The following table presents reclassifications out of accumulated other comprehensive income (loss), net of tax, to net income for the periods indicated: Three Months Ended April 30, 2021 May 1, 2020 Cash Flow Hedges Pensions Total Cash Flow Hedges Pensions Total (in millions) Total reclassifications, net of tax: Net revenue $ (29) $ — $ (29) $ 96 $ — $ 96 Cost of net revenue 2 — 2 4 — 4 Operating expenses — — — — (2) (2) Total reclassifications, net of tax $ (27) $ — $ (27) $ 100 $ (2) $ 98 |
NON-CONTROLLING INTERESTS
NON-CONTROLLING INTERESTS | 3 Months Ended |
Apr. 30, 2021 | |
Noncontrolling Interest [Abstract] | |
NON-CONTROLLING INTERESTS | NOTE 12 — 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 Condensed Consolidated Statements of Financial Position and was $5.0 billion as of both April 30, 2021 and January 29, 2021. As of April 30, 2021 and January 29, 2021, the Company held approximately 80.7% and 80.6%, respectively, of the outstanding equity interest in VMware, Inc. Secureworks — The non-controlling interests’ share of equity in Secureworks is reflected as a component of the non-controlling interests in the Condensed Consolidated Statements of Financial Position and was $101 million and $96 million as of April 30, 2021 and January 29, 2021, respectively. As of April 30, 2021 and January 29, 2021, the Company held approximately 84.6% and 85.7%, respectively, of the outstanding equity interest in Secureworks, excluding restricted stock awards (“RSAs”) and 83.8% and 84.9%, respectively, including RSAs. The following table presents the effect of changes in the Company’s ownership interest in VMware, Inc. and Secureworks on the Company’s equity for the period indicated: Three Months Ended April 30, 2021 (in millions) Net income attributable to Dell Technologies Inc. $ 887 Transfers (to)/from the non-controlling interests: Increase in Dell Technologies Inc. additional paid-in-capital for equity issuances and other equity activity 251 Decrease in Dell Technologies Inc. additional paid-in-capital for equity issuances and other equity activity (249) Net transfers to non-controlling interests 2 Change from net income attributable to Dell Technologies Inc. and transfers to the non-controlling interests $ 889 |
CAPITALIZATION
CAPITALIZATION | 3 Months Ended |
Apr. 30, 2021 | |
Equity [Abstract] | |
CAPITALIZATION | NOTE 13 — CAPITALIZATION The following table presents the Company’s authorized, issued, and outstanding common stock as of the dates indicated: Authorized Issued Outstanding (in millions) Common stock as of April 30, 2021 Class A 600 385 385 Class B 200 102 102 Class C 7,900 285 277 Class D 100 — — Class V 343 — — 9,143 772 764 Common stock as of January 29, 2021 Class A 600 385 385 Class B 200 102 102 Class C 7,900 274 266 Class D 100 — — Class V 343 — — 9,143 761 753 Under the Company’s certificate of incorporation as amended and restated upon the completion of the Class V transaction described in Note 1 of the Notes to the Condensed Consolidated Financial Statements, the Company is prohibited from issuing any of the authorized shares of Class V Common Stock. Preferred Stock The Company is authorized to issue one million shares of preferred stock, par value $0.01 per share. As of April 30, 2021 and January 29, 2021, no shares of preferred stock were issued or outstanding. Common Stock Dell Technologies Common Stock — The Class A Common Stock, the Class B Common Stock, the Class C Common Stock, and the Class D Common Stock are collectively referred to as Dell Technologies Common Stock. The par value for all classes of Dell Technologies Common Stock is $0.01 per share. The Class A Common Stock, the Class B Common Stock, the Class C Common Stock, and the Class D Common Stock share equally in dividends declared or accumulated and have equal participation rights in undistributed earnings. Voting Rights — Each holder of record of (a) Class A Common Stock is entitled to ten votes per share of Class A Common Stock; (b) Class B Common Stock is entitled to ten votes per share of Class B Common Stock; (c) Class C Common Stock is entitled to one vote per share of Class C Common Stock; and (d) Class D Common Stock is not entitled to any vote on any matter except to the extent required by provisions of Delaware law (in which case such holder is entitled to one vote per share of Class D Common Stock). Conversion Rights — Under the Company’s certificate of incorporation, at any time and from time to time, any holder of Class A Common Stock or Class B Common Stock has the right to convert all or any of the shares of Class A Common Stock or Class B Common Stock, as applicable, held by such holder into shares of Class C Common Stock on a one-to-one basis. During the three months ended April 30, 2021, the Company issued 49,209 shares of Class C Common Stock to stockholders upon the conversion of the same number of shares of Class A Common Stock into Class C Common Stock in accordance with the Company’s certificate of incorporation. Repurchases of Common Stock Dell Technologies Common Stock Repurchases by Dell Technologies On February 24, 2020, the Company’s board of directors approved a stock repurchase program under which the Company is authorized to repurchase up to $1.0 billion of shares of the Class C Common Stock over a 24-month period expiring on February 28, 2022, of which approximately $760 million remained available as of April 30, 2021. During the three months ended May 1, 2020, the Company repurchased approximately 6 million shares of Class C Common Stock for approximately $240 million and subsequently suspended activity under its stock repurchase program. To the extent not retired, shares repurchased under the repurchase program are placed in the Company’s treasury. VMware, Inc. Class A Common Stock Repurchases by VMware, Inc. On May 29, 2019, VMware, Inc.’s board of directors authorized the repurchase of up to $1.5 billion of VMware, Inc.’s Class A common stock through January 29, 2021. On July 15, 2020, VMware, Inc.’s board of directors extended authorization of VMware, Inc.’s existing repurchase program and authorized the repurchase of up to an additional $1.0 billion of VMware, Inc.’s Class A common stock through January 28, 2022. As of April 30, 2021, the cumulative authorized amount remaining for stock repurchases was $684 million. During the three months ended April 30, 2021, VMware, Inc. repurchased 2.5 million shares of its Class A common stock in the open market for approximately $371 million. During the three months ended May 1, 2020, VMware, Inc. repurchased approximately 1.5 million shares of its Class A common stock in the open market for approximately $181 million. All shares repurchased under VMware, Inc.’s stock repurchase programs are retired. The above VMware, Inc. Class A common stock repurchases for the three months ended April 30, 2021 and May 1, 2020 exclude shares repurchased to settle employee tax withholding related to the vesting of VMware, Inc. stock awards of $52 million and $154 million, respectively. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Apr. 30, 2021 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 14 — EARNINGS PER SHARE Basic earnings per share is based on the weighted-average effect of all common shares issued and outstanding and is calculated by dividing net income by the weighted-average shares outstanding during the period. Diluted earnings per share is calculated by dividing net income by the weighted-average number of common shares used in the basic earnings per share calculation plus the number of common shares that would be issued assuming exercise or conversion of all potentially dilutive instruments. The Company excludes equity instruments from the calculation of diluted earnings per share if the effect of including such instruments is antidilutive. The Class A Common Stock, the Class B Common Stock, the Class C Common Stock, and the Class D Common Stock are collectively referred to as Dell Technologies Common Stock. For purposes of calculating earnings per share, the Company uses the two-class method. As all classes of Dell Technologies Common Stock share the same rights in dividends, basic and diluted earnings per share are the same for each class of Dell Technologies Common Stock. The following table presents the basic and diluted earnings per share for the periods indicated: Three Months Ended April 30, 2021 May 1, 2020 Earnings per share attributable to Dell Technologies Inc. Dell Technologies Common Stock — Basic $ 1.17 $ 0.19 Dell Technologies Common Stock — Diluted $ 1.13 $ 0.19 The following table presents the computation of basic and diluted earnings per share for the periods indicated: Three Months Ended April 30, 2021 May 1, 2020 (in millions) Numerator: Dell Technologies Common Stock Net income attributable to Dell Technologies — basic $ 887 $ 143 Incremental dilution from VMware, Inc. attributable to Dell Technologies (a) (2) (2) Net income attributable to Dell Technologies — diluted $ 885 $ 141 Denominator: Dell Technologies Common Stock weighted-average shares outstanding Weighted-average shares outstanding — basic 757 740 Dilutive effect of options, restricted stock units, restricted stock, and other 25 15 Weighted-average shares outstanding — diluted 782 755 Weighted-average shares outstanding — antidilutive — 8 ____________________ (a) The incremental dilution from VMware, Inc. represents the impact of VMware, Inc.’s dilutive securities on diluted earnings per share of Dell Technologies Common Stock, and is calculated by multiplying the difference between VMware, Inc.’s basic and diluted earnings per share by the number of shares of VMware, Inc. common stock held by the Company. For both periods presented, there was no incremental dilution from Secureworks due to its net loss position. |
REDEEMABLE SHARES
REDEEMABLE SHARES | 3 Months Ended |
Apr. 30, 2021 | |
Temporary Equity Disclosure [Abstract] | |
REDEEMABLE SHARES | NOTE 15 — 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. The put feature requires the Company to purchase the stock at its fair market value. Accordingly, these awards and such 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, or restricted stock awards, any of which stock award types are subject to service requirements, the fair value of the share is multiplied by the portion of the share for which services have been rendered. • For share-based arrangements that are subject to the occurrence of a contingent event, those amounts are reclassified to temporary equity based on a probability assessment performed by the Company on a periodic basis. Contingent events include the achievement of performance-based metrics. In connection with the Class V transaction described in Note 1 of the Notes to the Condensed Consolidated Financial Statements, the put feature provisions were amended to provide that the put feature will terminate upon the earlier of June 27, 2021 or the consummation of any underwritten public offering of shares of Class C Common Stock. The following table presents the amount of redeemable shares classified as temporary equity and summarizes the award type as of the dates indicated: April 30, 2021 January 29, 2021 (in millions) Redeemable shares classified as temporary equity $ 558 $ 472 Issued and outstanding unrestricted common shares 1 2 Restricted stock units 1 — Outstanding stock options 3 6 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 3 Months Ended |
Apr. 30, 2021 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | NOTE 16 — SEGMENT INFORMATION The Company has three reportable segments that are based on the following business units: Infrastructure Solutions Group (“ISG”); Client Solutions Group (“CSG”); and VMware. ISG enables the digital transformation of the Company’s customers through its trusted multi-cloud and big data solutions, which are built upon a modern data center infrastructure. The ISG comprehensive portfolio of advanced storage solutions includes traditional storage solutions as well as next-generation storage solutions (such as all-flash arrays, scale-out file, object platforms, and software-defined solutions), while the Company’s server portfolio includes high-performance rack, blade, tower, and hyperscale servers. The ISG networking portfolio helps business customers transform and modernize their infrastructure, mobilize and enrich end-user experiences, and accelerate business applications and processes. ISG also offers attached software, peripherals, and services, including support and deployment, configuration, and extended warranty services. CSG includes sales to commercial and consumer customers of branded hardware (such as desktops, workstations, and notebooks) and branded peripherals (such as displays and projectors), as well as services and third-party software and peripherals. CSG also offers attached software, peripherals, and services, including support and deployment, configuration, and extended warranty services. VMware works with customers in the areas of hybrid and multi-cloud, modern applications, networking, security, and digital workspaces, helping customers manage their IT resources across private clouds and complex multi-cloud, multi-device environments. VMware enables its customers to digitally transform their operations as they ready their applications, infrastructure, and employees for constantly evolving business needs. The reportable segments disclosed herein are based on information reviewed by the Company’s management to evaluate the business segment results. The Company’s measure of segment revenue and segment operating income for management reporting purposes excludes the impact of Other businesses, unallocated corporate transactions, the impact of purchase accounting, amortization of intangible assets, transaction-related expenses, stock-based compensation expense, and other corporate expenses, as applicable. The Company does not allocate assets to the above reportable segments for internal reporting purposes. 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 income for the periods indicated: Three Months Ended April 30, 2021 May 1, 2020 (in millions) Consolidated net revenue: Infrastructure Solutions Group $ 7,911 $ 7,569 Client Solutions Group 13,305 11,104 VMware 2,991 2,755 Reportable segment net revenue 24,207 21,428 Other businesses (a) 290 517 Unallocated transactions (b) 2 — Impact of purchase accounting (c) (12) (48) Total consolidated net revenue $ 24,487 $ 21,897 Consolidated operating income: Infrastructure Solutions Group $ 788 $ 732 Client Solutions Group 1,090 592 VMware 841 773 Reportable segment operating income 2,719 2,097 Other businesses (a) (5) 65 Unallocated transactions (b) — (1) Impact of purchase accounting (c) (25) (63) Amortization of intangibles (709) (855) Transaction-related expenses (d) (51) (76) Stock-based compensation expense (e) (435) (370) Other corporate expenses (f) (119) (95) Total consolidated operating income $ 1,375 $ 702 ____________________ (a) Secureworks, Virtustream, and Boomi constitute Other businesses and do not meet the requirements for a reportable segment, either individually or collectively. The results of Other businesses are not material to the Company’s overall results. On September 1, 2020, the Company completed the sale of RSA Security. Prior to the divestiture, RSA Security’s results were included within Other businesses. See Note 1 of the Notes to the Condensed Consolidated Financial Statements for more information about the divestiture of RSA Security. (b) Unallocated transactions includes other corporate items that are not allocated to Dell Technologies’ reportable segments. (c) Impact of purchase accounting includes non-cash purchase accounting adjustments that are primarily related to the EMC merger transaction. (d) Transaction-related expenses includes acquisition, integration, and divestiture related costs. (e) Stock-based compensation expense consists of equity awards granted based on the estimated fair value of those awards at grant date. (f) Other corporate expenses includes impairment charges, severance, facility action, and other costs. The following table presents the disaggregation of net revenue by reportable segment, and by major product categories within the segments for the periods indicated: Three Months Ended April 30, 2021 May 1, 2020 (in millions) Net revenue: Infrastructure Solutions Group: Servers and networking $ 4,109 $ 3,758 Storage 3,802 3,811 Total ISG net revenue 7,911 7,569 Client Solutions Group: Commercial 9,803 8,634 Consumer 3,502 2,470 Total CSG net revenue 13,305 11,104 VMware: Total VMware net revenue 2,991 2,755 Total segment net revenue $ 24,207 $ 21,428 |
SUPPLEMENTAL CONSOLIDATED FINAN
SUPPLEMENTAL CONSOLIDATED FINANCIAL INFORMATION | 3 Months Ended |
Apr. 30, 2021 | |
Condensed Financial Information Disclosure [Abstract] | |
SUPPLEMENTAL CONSOLIDATED FINANCIAL INFORMATION | NOTE 17 — SUPPLEMENTAL CONSOLIDATED FINANCIAL INFORMATION The following table presents additional information on selected accounts included in the Condensed Consolidated Statements of Financial Position as of the dates indicated: April 30, 2021 January 29, 2021 (in millions) Cash, cash equivalents, and restricted cash: Cash and cash equivalents $ 14,244 $ 14,201 Restricted cash - other current assets (a) 930 891 Restricted cash - other non-current assets (a) 86 92 Total cash, cash equivalents, and restricted cash $ 15,260 $ 15,184 Inventories, net: Production materials $ 2,023 $ 1,717 Work-in-process 739 677 Finished goods 1,066 1,008 Total inventories, net $ 3,828 $ 3,402 Property, plant, and equipment, net: Computer equipment 6,839 6,506 Land and buildings 4,670 4,745 Machinery and other equipment 3,960 3,933 Total property, plant, and equipment 15,469 15,184 Accumulated depreciation and amortization (8,912) (8,753) Total property, plant, and equipment, net 6,557 6,431 Other non-current assets: Deferred and other tax assets $ 6,351 $ 6,230 Operating lease ROU assets 2,088 2,117 Deferred commissions 1,111 1,094 Other 1,807 1,755 Total other non-current assets $ 11,357 $ 11,196 ____________________ (a) Restricted cash primarily includes cash required to be held in escrow pursuant to DFS securitization arrangements. Trade Receivables — Allowance for Expected Credit Losses The following table presents the changes in the Company’s allowance for expected credit losses for the periods indicated: Three Months Ended April 30, 2021 May 1, 2020 (in millions) Trade Receivables — Allowance for expected credit losses: Balance at beginning of period $ 104 $ 94 Adjustment for adoption of accounting standard (a) — 27 Provision charged to income statement 10 36 Bad debt write-offs (10) (13) Balance at end of period $ 104 $ 144 ____________________ (a) The Company adopted the current expected credit losses standard as of February 1, 2020 using the modified retrospective method, with the cumulative-effect adjustment to the opening balance of stockholders’ equity (deficit) as of the adoption date. Warranty Liability The following table presents changes in the Company’s liability for standard limited warranties for the periods indicated: Three Months Ended April 30, 2021 May 1, 2020 (in millions) Warranty liability: Warranty liability at beginning of period $ 473 $ 496 Costs accrued for new warranty contracts and changes in estimates for pre-existing warranties (a) (b) 202 148 Service obligations honored (217) (168) Warranty liability at end of period $ 458 $ 476 Current portion $ 345 $ 333 Non-current portion $ 113 $ 143 ____________________ (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 The Company incurs costs related to employee severance and records a liability for these costs when it is probable that employees will be entitled to termination benefits and the amounts can be reasonably estimated. The liability related to these actions is included in accrued and other current liabilities in the Condensed Consolidated Statements of Financial Position. The following table presents the activity related to the Company’s severance liability for the periods indicated: Three Months Ended April 30, 2021 May 1, 2020 (in millions) Severance liability: Severance liability at beginning of period $ 138 $ 196 Severance charges to provision 30 98 Cash paid and other (a) (74) (168) Severance liability at end of period $ 94 $ 126 ____________________ (a) Other adjustments include the impact of foreign currency exchange rate fluctuations. The following table presents severance charges as included in the Condensed Consolidated Statements of Income for the periods indicated: Three Months Ended April 30, 2021 May 1, 2020 (in millions) Severance charges: Cost of net revenue $ 13 $ 10 Selling, general, and administrative 14 81 Research and development 3 7 Total severance charges $ 30 $ 98 Interest and Other, Net The following table provides information regarding interest and other, net for the periods indicated: Three Months Ended April 30, 2021 May 1, 2020 (in millions) Interest and other, net: Investment income, primarily interest $ 11 $ 24 Gain on investments, net 157 94 Interest expense (510) (672) Foreign exchange (49) (99) Other 3 87 Total interest and other, net $ (388) $ (566) |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Apr. 30, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 18 — SUBSEQUENT EVENTS Debt Repayment — Subsequent to April 30, 2021, the Company repaid $1 billion principal amount of the Margin Loan Facility due April 2022. Boomi Divestiture — On May 1, 2021, Dell Technologies announced its entry into a definitive agreement with Francisco Partners and TPG Capital to sell Boomi and certain related assets from the Company in a cash transaction valued at $4 billion, subject to certain closing adjustments. The transaction is expected to close by the end of calendar 2021, subject to customary closing conditions. The transaction is intended to support the Company’s focus on fueling growth by continuing to modernize Dell Technologies’ core infrastructure and PC businesses and by expanding in high-priority areas, including hybrid and private cloud, edge, telecom and Apex. Boomi is included within Other Businesses and does not meet the requirements for a reportable segment. Other than the matters identified above, there were no known events occurring after April 30, 2021 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) | 3 Months Ended |
Apr. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of Consolidation | References in these Notes to the Condensed Consolidated Financial Statements to the “Company” or “Dell Technologies” mean Dell Technologies Inc. individually and together with its consolidated subsidiaries. |
Basis of Presentation | Basis of Presentation — The accompanying unaudited Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and accompanying Notes filed with the U.S. Securities and Exchange Commission (“SEC”) in the Company’s Annual Report on Form 10-K for the fiscal year ended January 29, 2021. 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. as of April 30, 2021 and January 29, 2021 and the results of its operations, corresponding comprehensive income (loss) and its cash flows for the three months ended April 30, 2021 and May 1, 2020. |
Use of Estimates | 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. Management has considered the actual and potential economic impacts of the coronavirus disease 2019 (“COVID-19”) pandemic on the Company’s critical and significant accounting estimates. Actual results could differ materially from those estimates. The results of operations, comprehensive income (loss), and cash flows for the three months ended April 30, 2021 and May 1, 2020 are not necessarily indicative of the results to be expected for the full fiscal year or for any other fiscal period. |
Fiscal Period | The Company’s fiscal year is the 52- or 53-week period ending on the Friday nearest January 31. Both the fiscal year ended January 29, 2021 (“Fiscal 2021”) and fiscal year ending January 28, 2022 (“Fiscal 2022”) are 52-week periods. |
Principles of Consolidation | Principles of Consolidation — These Condensed Consolidated Financial Statements include the accounts of Dell Technologies and its wholly-owned subsidiaries, as well as the accounts of VMware, Inc. and SecureWorks Corp. (“Secureworks”), each of which is majority-owned by Dell Technologies. All intercompany transactions have been eliminated. |
Recently Issued and Adopted Accounting Pronouncements | Recently Issued Accounting Pronouncements Reference Rate Reform — In March 2020, the Financial Accounting Standards Board (“FASB”) issued guidance which provides temporary optional expedients and exceptions to GAAP guidance on contract modifications and certain hedging relationships to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate to alternative reference rates. The Company may elect to apply the amendments prospectively through December 31, 2022. Adoption of the new guidance is not expected to have a material impact on the Company’s financial results. Recently Adopted Accounting Pronouncements Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity — In August 2020, the Financial Accounting Standards Board (“FASB”) issued guidance to simplify the accounting for convertible debt instruments and convertible preferred stock, and the derivatives scope exception for contracts in an entity's own equity. In addition, the guidance on calculating diluted earnings per share has been simplified and made more internally consistent. The Company early adopted this standard as of January 30, 2021. There was no impact on the Condensed Consolidated Financial Statements or to diluted earnings per share as of the adoption date. Simplifying Accounting for Income Taxes — In December 2019, the FASB issued guidance to simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740, Income Taxes , and by clarifying and amending existing guidance in order to improve consistent application of GAAP for other areas of Topic 740. The Company adopted the standard during the three months ended April 30, 2021. The impact of the adoption of this standard was immaterial to the Condensed Consolidated Financial Statements. |
Money Market Funds | Money Market Funds — The Company’s investments 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 April 30, 2021, the Company’s U.S. portfolio had no material exposure to money market funds with a fluctuating net asset value. |
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. |
Derivative Instruments | Derivative Instruments — The Company’s derivative financial instruments consist primarily of foreign currency forward and purchased option contracts and interest rate swaps. The fair value of the portfolio is determined using valuation models based on market observable inputs, including interest rate curves, forward and spot prices for currencies, and implied volatilities. Credit risk is also factored into the fair value calculation of the Company’s derivative financial instrument portfolio. See Note 6 of the Notes to the Condensed Consolidated Financial Statements for a description of the Company’s derivative financial instrument activities. As part of its risk management strategy, the Company uses derivative instruments, primarily foreign currency forward and option contracts and interest rate swaps, to hedge certain foreign currency and interest rate exposures, respectively. The Company’s objective is to offset gains and losses resulting from these exposures with gains and losses on the derivative contracts used to hedge the exposures, thereby reducing volatility of earnings and protecting the fair values of assets and liabilities. The earnings effects of the derivative instruments are presented in the same income statement line items as the earnings effects of the hedged items. For derivatives designated as cash flow hedges, the Company assesses hedge effectiveness both at the onset of the hedge and at regular intervals throughout the life of the derivative. The Company does not have any derivatives designated as fair value hedges. |
Deferred Compensation Plans | Deferred Compensation Plans — The Company offers deferred compensation plans for eligible employees, which allow participants to defer payment for a portion of their compensation. Assets were the same as liabilities associated with the plans at approximately $340 million and $308 million as of April 30, 2021 and January 29, 2021, respectively, and are included in other assets and other liabilities on the Condensed Consolidated Statements of Financial Position. The net impact to the Condensed Consolidated Statements of Income is not material since changes in the fair value of the assets substantially offset changes in the fair value of the liabilities. As such, assets and liabilities associated with these plans have not been included in the recurring fair value table above. |
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis | Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis — Certain assets are measured at fair value on a nonrecurring basis and therefore are not included in the recurring fair value table above. These assets consist primarily of non-financial assets such as goodwill and intangible assets. See Note 7 of the Notes to the Condensed Consolidated Financial Statements for additional information about goodwill and intangible assets. As of April 30, 2021 and January 29, 2021, the Company held private strategic investments of $1.1 billion and $1.0 billion, respectively. As these investments represent early-stage companies without readily determinable fair values, they are not included in the recurring fair value table above. The Company has elected to apply the measurement alternative for these investments. Under the alternative, the Company measures investments without readily determinable fair values at cost, less impairment, adjusted by observable price changes. The Company must make a separate election to use the alternative for each eligible investment and is required to reassess at each reporting period whether an investment qualifies for the alternative. In evaluating these investments for impairment or observable price changes, the Company uses inputs including pre- and post-money valuations of recent financing events and the impact of those events on its fully diluted ownership percentages, as well as other available information regarding the issuer’s historical and forecasted performance. |
Legal Matters | 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. |
FAIR VALUE MEASUREMENTS AND I_2
FAIR VALUE MEASUREMENTS AND INVESTMENTS (Tables) | 3 Months Ended |
Apr. 30, 2021 | |
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 the dates indicated: April 30, 2021 January 29, 2021 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (in millions) Assets: Cash and cash equivalents: Money market funds $ 8,936 $ — $ — $ 8,936 $ 8,846 $ — $ — $ 8,846 Equity and other securities 327 — — 327 449 — — 449 Derivative instruments — 69 — 69 — 104 — 104 Total assets $ 9,263 $ 69 $ — $ 9,332 $ 9,295 $ 104 $ — $ 9,399 Liabilities: Derivative instruments $ — $ 103 $ — $ 103 $ — $ 133 $ — $ 133 Total liabilities $ — $ 103 $ — $ 103 $ — $ 133 $ — $ 133 |
Carrying value and estimated fair value of outstanding debt | Carrying Value and Estimated Fair Value of Outstanding Debt — The following table presents the carrying value and estimated fair value of the Company’s outstanding debt as described in Note 5 of the Notes to the Condensed Consolidated Financial Statements, including the current portion, as of the dates indicated: April 30, 2021 January 29, 2021 Carrying Value Fair Value Carrying Value Fair Value (in billions) Senior Secured Credit Facilities $ 6.2 $ 6.3 $ 6.2 $ 6.3 First Lien Notes $ 18.3 $ 22.7 $ 18.3 $ 22.8 Unsecured Notes and Debentures $ 0.8 $ 1.2 $ 1.2 $ 1.6 Senior Notes $ 1.6 $ 1.7 $ 2.7 $ 2.8 EMC Notes $ 1.0 $ 1.0 $ 1.0 $ 1.0 VMware Notes $ 4.7 $ 5.2 $ 4.7 $ 5.3 Margin Loan Facility $ 4.0 $ 3.9 $ 4.0 $ 3.9 |
Investments | The following table presents the carrying value of the Company’s investments as of the dates indicated: April 30, 2021 January 29, 2021 Cost Unrealized Gain Unrealized (Loss) Carrying Value Cost Unrealized Gain Unrealized (Loss) Carrying Value (in millions) Equity and other securities $ 1,328 $ 198 $ (121) $ 1,405 $ 907 $ 677 $ (145) $ 1,439 Fixed income debt securities 256 9 — 265 176 9 — 185 Total securities $ 1,670 $ 1,624 |
FINANCIAL SERVICES (Tables)
FINANCIAL SERVICES (Tables) | 3 Months Ended |
Apr. 30, 2021 | |
Receivables [Abstract] | |
Components of financing receivables segregated by portfolio segment | The following table presents the components of the Company’s financing receivables segregated by portfolio segment as of the dates indicated: April 30, 2021 January 29, 2021 Revolving Fixed-term Total Revolving Fixed-term Total (in millions) Financing receivables, net: Customer receivables, gross (a) $ 752 $ 9,438 $ 10,190 $ 796 $ 9,595 $ 10,391 Allowances for losses (139) (177) (316) (148) (173) (321) Customer receivables, net 613 9,261 9,874 648 9,422 10,070 Residual interest — 367 367 — 424 424 Financing receivables, net $ 613 $ 9,628 $ 10,241 $ 648 $ 9,846 $ 10,494 Short-term $ 613 $ 4,367 $ 4,980 $ 648 $ 4,507 $ 5,155 Long-term $ — $ 5,261 $ 5,261 $ — $ 5,339 $ 5,339 ____________________ |
Allowance for financing receivable losses | The following tables present the changes in allowance for financing receivable losses for the periods indicated: Three Months Ended April 30, 2021 May 1, 2020 Revolving Fixed-term Total Revolving Fixed-term Total (in millions) Allowance for financing receivable losses: Balances at beginning of period $ 148 $ 173 $ 321 $ 70 $ 79 $ 149 Adjustment for adoption of accounting standard (a) — — — 40 71 111 Charge-offs, net of recoveries (13) (2) (15) (20) (9) (29) Provision charged to income statement 4 6 10 54 36 90 Balances at end of period $ 139 $ 177 $ 316 $ 144 $ 177 $ 321 ____________________ (a) The Company adopted the current expected credit losses standard as of February 1, 2020 using the modified retrospective method, with the cumulative-effect adjustment to the opening balance of stockholders’ equity (deficit) as of the adoption date. |
Aging of customer financing receivables | The following table presents the aging of the Company’s customer financing receivables, gross, including accrued interest, segregated by class, as of the dates indicated: April 30, 2021 January 29, 2021 Current Past Due 1 — 90 Days Past Due Total Current Past Due 1 — 90 Days Past Due Total (in millions) Revolving — DPA $ 549 $ 21 $ 10 $ 580 $ 578 $ 30 $ 13 $ 621 Revolving — DBC 158 11 3 172 157 14 4 175 Fixed-term — Consumer and Commercial 9,035 346 57 9,438 9,192 316 87 9,595 Total customer receivables, gross $ 9,742 $ 378 $ 70 $ 10,190 $ 9,927 $ 360 $ 104 $ 10,391 |
Credit quality indicators | The following tables presents customer receivables, gross, including accrued interest, by credit quality indicator segregated by class and year of origination, as of the dates indicated: April 30, 2021 Fixed-term — Consumer and Commercial Fiscal Year of Origination 2022 2021 2020 2019 2018 Years Prior Revolving — DPA (a) Revolving — DBC (a) Total (in millions) Higher $ 1,057 $ 2,597 $ 1,520 $ 486 $ 107 $ 13 $ 153 $ 45 $ 5,978 Mid 286 1,000 553 190 45 4 176 51 2,305 Lower 238 728 419 163 27 5 251 76 1,907 Total $ 1,581 $ 4,325 $ 2,492 $ 839 $ 179 $ 22 $ 580 $ 172 $ 10,190 January 29, 2021 Fixed-term — Consumer and Commercial Fiscal Year of Origination 2021 2020 2019 2018 2017 Years Prior Revolving — DPA (a) Revolving — DBC (a) Total (in millions) Higher $ 3,125 $ 1,802 $ 661 $ 166 $ 26 $ — $ 172 $ 47 $ 5,999 Mid 1,121 671 287 73 9 — 188 52 2,401 Lower 865 499 243 38 9 — 261 76 1,991 Total $ 5,111 $ 2,972 $ 1,191 $ 277 $ 44 $ — $ 621 $ 175 $ 10,391 ____________________ |
Finance leases | The following table presents the net revenue, cost of net revenue, and gross margin recognized at the commencement date of sales-type leases for the periods indicated: Three Months Ended April 30, 2021 May 1, 2020 (in millions) Net revenue — products $ 230 $ 215 Cost of net revenue — products 163 159 Gross margin — products $ 67 $ 56 |
Future maturity of fixed-term customer leases | The following table presents the future maturity of the Company’s fixed-term customer leases and associated financing payments, and reconciles the undiscounted cash flows to the customer receivables, gross recognized on the Condensed Consolidated Statements of Financial Position as of the date indicated: April 30, 2021 (in millions) Fiscal 2022 (remaining nine months) $ 2,232 Fiscal 2023 1,819 Fiscal 2024 1,086 Fiscal 2025 429 Fiscal 2026 and beyond 141 Total undiscounted cash flows 5,707 Fixed-term loans 4,399 Revolving loans 752 Less: unearned income (668) Total customer receivables, gross $ 10,190 |
Operating lease income | The following table presents the components of the Company’s operating lease portfolio included in Property, plant, and equipment, net as of the dates indicated: April 30, 2021 January 29, 2021 (in millions) Equipment under operating lease, gross $ 1,921 $ 1,746 Less: accumulated depreciation (541) (432) Equipment under operating lease, net $ 1,380 $ 1,314 |
Operating lease income maturities | The following table presents the future payments to be received by the Company as lessor in operating lease contracts as of the date indicated: April 30, 2021 (in millions) Fiscal 2022 (remaining nine months) $ 525 Fiscal 2023 516 Fiscal 2024 261 Fiscal 2025 59 Fiscal 2026 and beyond 9 Total $ 1,370 |
Summary of debt | The following table presents DFS debt as of the dates indicated. The table excludes the allocated portion of the Company’s other borrowings, which represents the additional amount considered to fund the DFS business. April 30, 2021 January 29, 2021 (in millions) DFS U.S. debt: Asset-based financing and securitization facilities $ 2,674 $ 3,311 Fixed-term securitization offerings 3,548 2,961 Other 198 140 Total DFS U.S. debt 6,420 6,412 DFS international debt: Securitization facility 784 786 Other borrowings 1,087 1,006 Note payable 250 250 Dell Bank Senior Unsecured Eurobonds 1,212 1,212 Total DFS international debt 3,333 3,254 Total DFS debt $ 9,753 $ 9,666 Total short-term DFS debt $ 4,673 $ 4,888 Total long-term DFS debt $ 5,080 $ 4,778 The following table presents the Company’s outstanding debt as of the dates indicated: April 30, 2021 January 29, 2021 (in millions) Secured Debt Senior Secured Credit Facilities: 2.00% Term Loan B-2 Facility due September 2025 $ 3,135 $ 3,143 1.90% Term Loan A-6 Facility due March 2024 3,134 3,134 First Lien Notes: 5.45% due June 2023 3,750 3,750 4.00% due July 2024 1,000 1,000 5.85% due July 2025 1,000 1,000 6.02% due June 2026 4,500 4,500 4.90% due October 2026 1,750 1,750 6.10% due July 2027 500 500 5.30% due October 2029 1,750 1,750 6.20% due July 2030 750 750 8.10% due July 2036 1,500 1,500 8.35% due July 2046 2,000 2,000 Unsecured Debt Unsecured Notes and Debentures: 4.625% due April 2021 — 400 7.10% due April 2028 300 300 6.50% due April 2038 388 388 5.40% due September 2040 264 264 Senior Notes: 5.875% due June 2021 — 1,075 7.125% due June 2024 1,625 1,625 EMC Notes: 3.375% due June 2023 1,000 1,000 Debt of Public Subsidiary VMware Notes: 2.95% due August 2022 1,500 1,500 4.50% due May 2025 750 750 4.65% due May 2027 500 500 3.90% due August 2027 1,250 1,250 4.70% due May 2030 750 750 DFS Debt (Note 3) 9,753 9,666 Other 2.46% Margin Loan Facility due April 2022 4,000 4,000 Other 304 235 Total debt, principal amount $ 47,153 $ 48,480 April 30, 2021 January 29, 2021 (in millions) Total debt, principal amount $ 47,153 $ 48,480 Unamortized discount, net of unamortized premium (185) (194) Debt issuance costs (285) (302) Total debt, carrying value $ 46,683 $ 47,984 Total short-term debt, carrying value $ 8,748 $ 6,362 Total long-term debt, carrying value $ 37,935 $ 41,622 |
Financing receivables held by the consolidated VIEs | The following table presents financing receivables and equipment under operating leases, net held by the consolidated VIEs as of the dates indicated: April 30, 2021 January 29, 2021 (in millions) Assets held by consolidated VIEs Other current assets $ 874 $ 838 Financing receivables, net of allowance Short-term $ 3,478 $ 3,534 Long-term $ 3,267 $ 3,314 Property, plant, and equipment, net $ 827 $ 792 Liabilities held by consolidated VIEs Debt, net of unamortized debt issuance costs Short-term $ 4,055 $ 4,208 Long-term $ 2,938 $ 2,841 |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Apr. 30, 2021 | |
Leases [Abstract] | |
Components of lease expense and supplemental information | The following table presents components of lease costs included in the Condensed Consolidated Statements of Income for the periods indicated: Three Months Ended April 30, 2021 May 1, 2020 (in millions) Operating lease costs $ 142 $ 131 Variable costs 33 44 Total lease costs $ 175 $ 175 During both the three months ended April 30, 2021 and May 1, 2020, sublease income, finance lease costs, and short-term lease costs were immaterial. The following table presents supplemental information related to operating leases included in the Condensed Consolidated Statements of Financial Position as of the dates indicated: Classification April 30, 2021 January 29, 2021 (in millions, except for term and discount rate) Operating lease ROU assets Other non-current assets $ 2,088 $ 2,117 Current operating lease liabilities Accrued and other current liabilities $ 440 $ 436 Non-current operating lease liabilities Other non-current liabilities 1,791 1,787 Total operating lease liabilities $ 2,231 $ 2,223 Weighted-average remaining lease term (in years) 8.76 8.85 Weighted-average discount rate 3.40 % 3.47 % The following table presents supplemental cash flow information related to leases for the periods indicated: Three Months Ended April 30, 2021 May 1, 2020 (in millions) Cash paid for amounts included in the measurement of lease liabilities — $ 134 $ 131 ROU assets obtained in exchange for new operating lease liabilities $ 117 $ 120 |
Maturity of operating lease liabilities | The following table presents the future maturities of the Company’s operating lease liabilities under non-cancelable leases and reconciles the undiscounted cash flows for these leases to the lease liability recognized on the Condensed Consolidated Statements of Financial Position as of the date indicated: April 30, 2021 (in millions) Fiscal 2022 (remaining nine months) $ 351 Fiscal 2023 469 Fiscal 2024 347 Fiscal 2025 260 Fiscal 2026 211 Thereafter 1,010 Total lease payments 2,648 Less: Imputed interest (417) Total $ 2,231 Current operating lease liabilities $ 440 Non-current operating lease liabilities $ 1,791 |
DEBT (Tables)
DEBT (Tables) | 3 Months Ended |
Apr. 30, 2021 | |
Debt Disclosure [Abstract] | |
Outstanding debt | The following table presents DFS debt as of the dates indicated. The table excludes the allocated portion of the Company’s other borrowings, which represents the additional amount considered to fund the DFS business. April 30, 2021 January 29, 2021 (in millions) DFS U.S. debt: Asset-based financing and securitization facilities $ 2,674 $ 3,311 Fixed-term securitization offerings 3,548 2,961 Other 198 140 Total DFS U.S. debt 6,420 6,412 DFS international debt: Securitization facility 784 786 Other borrowings 1,087 1,006 Note payable 250 250 Dell Bank Senior Unsecured Eurobonds 1,212 1,212 Total DFS international debt 3,333 3,254 Total DFS debt $ 9,753 $ 9,666 Total short-term DFS debt $ 4,673 $ 4,888 Total long-term DFS debt $ 5,080 $ 4,778 The following table presents the Company’s outstanding debt as of the dates indicated: April 30, 2021 January 29, 2021 (in millions) Secured Debt Senior Secured Credit Facilities: 2.00% Term Loan B-2 Facility due September 2025 $ 3,135 $ 3,143 1.90% Term Loan A-6 Facility due March 2024 3,134 3,134 First Lien Notes: 5.45% due June 2023 3,750 3,750 4.00% due July 2024 1,000 1,000 5.85% due July 2025 1,000 1,000 6.02% due June 2026 4,500 4,500 4.90% due October 2026 1,750 1,750 6.10% due July 2027 500 500 5.30% due October 2029 1,750 1,750 6.20% due July 2030 750 750 8.10% due July 2036 1,500 1,500 8.35% due July 2046 2,000 2,000 Unsecured Debt Unsecured Notes and Debentures: 4.625% due April 2021 — 400 7.10% due April 2028 300 300 6.50% due April 2038 388 388 5.40% due September 2040 264 264 Senior Notes: 5.875% due June 2021 — 1,075 7.125% due June 2024 1,625 1,625 EMC Notes: 3.375% due June 2023 1,000 1,000 Debt of Public Subsidiary VMware Notes: 2.95% due August 2022 1,500 1,500 4.50% due May 2025 750 750 4.65% due May 2027 500 500 3.90% due August 2027 1,250 1,250 4.70% due May 2030 750 750 DFS Debt (Note 3) 9,753 9,666 Other 2.46% Margin Loan Facility due April 2022 4,000 4,000 Other 304 235 Total debt, principal amount $ 47,153 $ 48,480 April 30, 2021 January 29, 2021 (in millions) Total debt, principal amount $ 47,153 $ 48,480 Unamortized discount, net of unamortized premium (185) (194) Debt issuance costs (285) (302) Total debt, carrying value $ 46,683 $ 47,984 Total short-term debt, carrying value $ 8,748 $ 6,362 Total long-term debt, carrying value $ 37,935 $ 41,622 |
Aggregate future maturities | The following table presents the aggregate future maturities of the Company’s debt as of April 30, 2021 for the periods indicated: Maturities by Fiscal Year 2022 2023 2024 2025 2026 Thereafter Total (in millions) Senior Secured Credit Facilities and First Lien Notes $ 31 $ 213 $ 6,007 $ 1,758 $ 4,017 $ 12,743 $ 24,769 Unsecured Notes and Debentures — — — — — 952 952 Senior Notes and EMC Notes — — 1,000 1,625 — — 2,625 VMware Notes — 1,500 — — 750 2,500 4,750 DFS Debt 3,844 4,249 774 850 36 — 9,753 Margin Loan Facility — 4,000 — — — — 4,000 Other 11 11 171 78 8 25 304 Total maturities, principal amount 3,886 9,973 7,952 4,311 4,811 16,220 47,153 Associated carrying value adjustments (6) (15) (32) (71) (47) (299) (470) Total maturities, carrying value amount $ 3,880 $ 9,958 $ 7,920 $ 4,240 $ 4,764 $ 15,921 $ 46,683 |
DERIVATIVE INSTRUMENTS AND HE_2
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 3 Months Ended |
Apr. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Notional amounts of outstanding derivative instruments | April 30, 2021 January 29, 2021 (in millions) Foreign exchange contracts: Designated as cash flow hedging instruments $ 6,967 $ 6,840 Non-designated as hedging instruments 9,449 9,890 Total $ 16,416 $ 16,730 Interest rate contracts: Non-designated as hedging instruments $ 6,011 $ 5,859 |
Derivative instruments designated as hedging instruments | Derivatives in Cash Flow Hedging Relationships Gain (Loss) Recognized in Accumulated OCI, Net of Tax, on Derivatives Location of Gain (Loss) Reclassified from Accumulated OCI into Income Gain (Loss) Reclassified from Accumulated OCI into Income (in millions) (in millions) For the three months ended April 30, 2021 Total net revenue $ (29) Foreign exchange contracts $ (1) Total cost of net revenue 2 Interest rate contracts — Interest and other, net — Total $ (1) $ (27) For the three months ended May 1, 2020 Total net revenue $ 96 Foreign exchange contracts $ 167 Total cost of net revenue 4 Interest rate contracts — Interest and other, net — Total $ 167 $ 100 |
Derivative instruments not designated as hedging instruments | Three Months Ended April 30, 2021 May 1, 2020 Location of Gain (Loss) Recognized (in millions) Gain (Loss) Recognized: Foreign exchange contracts $ (24) $ 52 Interest and other, net Interest rate contracts 1 (39) Interest and other, net Total $ (23) $ 13 |
Fair value of derivatives | The following tables present the fair value of those derivative instruments presented on a gross basis as of the dates indicated: April 30, 2021 Other Current Other Non- Other Current Other Non-Current Total (in millions) Derivatives designated as hedging instruments: Foreign exchange contracts in an asset position $ 45 $ — $ 19 $ — $ 64 Foreign exchange contracts in a liability position (20) — (19) — (39) Net asset (liability) 25 — — — 25 Derivatives not designated as hedging instruments: Foreign exchange contracts in an asset position 111 — 57 — 168 Foreign exchange contracts in a liability position (76) — (127) (7) (210) Interest rate contracts in an asset position — 9 — — 9 Interest rate contracts in a liability position — — — (26) (26) Net asset (liability) 35 9 (70) (33) (59) Total derivatives at fair value $ 60 $ 9 $ (70) $ (33) $ (34) January 29, 2021 Other Current Other Non- Other Current Other Non-Current Total (in millions) Derivatives designated as hedging instruments: Foreign exchange contracts in an asset position $ 28 $ — $ 18 $ — $ 46 Foreign exchange contracts in a liability position (10) — (15) — (25) Net asset (liability) 18 — 3 — 21 Derivatives not designated as hedging instruments: Foreign exchange contracts in an asset position 184 — 58 — 242 Foreign exchange contracts in a liability position (108) — (159) (4) (271) Interest rate contracts in an asset position — 10 — — 10 Interest rate contracts in a liability position — — — (31) (31) Net asset (liability) 76 10 (101) (35) (50) Total derivatives at fair value $ 94 $ 10 $ (98) $ (35) $ (29) |
Offsetting assets | The following tables present the gross amounts of the Company’s derivative instruments, amounts offset due to master netting agreements with the Company’s counterparties, and the net amounts recognized in the Condensed Consolidated Statements of Financial Position as of the dates indicated: April 30, 2021 Gross Amounts of Recognized Assets/ (Liabilities) Gross Amounts Offset in the Statement of Financial Position Net Amounts of Assets/ (Liabilities) Presented in the Statement of Financial Position Gross Amounts not Offset in the Statement of Financial Position Net Amount of Assets/ (Liabilities) Recognized in the Statement of Financial Position Financial Instruments Cash Collateral Received or Pledged (in millions) Derivative instruments: Financial assets $ 242 $ (173) $ 69 $ — $ — $ 69 Financial liabilities (276) 173 (103) — 6 (97) Total derivative instruments $ (34) $ — $ (34) $ — $ 6 $ (28) January 29, 2021 Gross Amounts of Recognized Assets/ (Liabilities) Gross Amounts Offset in the Statement of Financial Position Net Amounts of Assets/ (Liabilities) Presented in the Statement of Financial Position Gross Amounts not Offset in the Statement of Financial Position Net Amount of Assets/ (Liabilities) Recognized in the Statement of Financial Position Financial Instruments Cash Collateral Received or Pledged (in millions) Derivative instruments: Financial assets $ 298 $ (194) $ 104 $ — $ — $ 104 Financial liabilities (327) 194 (133) — 2 (131) Total derivative instruments $ (29) $ — $ (29) $ — $ 2 $ (27) |
Offsetting liabilities | The following tables present the gross amounts of the Company’s derivative instruments, amounts offset due to master netting agreements with the Company’s counterparties, and the net amounts recognized in the Condensed Consolidated Statements of Financial Position as of the dates indicated: April 30, 2021 Gross Amounts of Recognized Assets/ (Liabilities) Gross Amounts Offset in the Statement of Financial Position Net Amounts of Assets/ (Liabilities) Presented in the Statement of Financial Position Gross Amounts not Offset in the Statement of Financial Position Net Amount of Assets/ (Liabilities) Recognized in the Statement of Financial Position Financial Instruments Cash Collateral Received or Pledged (in millions) Derivative instruments: Financial assets $ 242 $ (173) $ 69 $ — $ — $ 69 Financial liabilities (276) 173 (103) — 6 (97) Total derivative instruments $ (34) $ — $ (34) $ — $ 6 $ (28) January 29, 2021 Gross Amounts of Recognized Assets/ (Liabilities) Gross Amounts Offset in the Statement of Financial Position Net Amounts of Assets/ (Liabilities) Presented in the Statement of Financial Position Gross Amounts not Offset in the Statement of Financial Position Net Amount of Assets/ (Liabilities) Recognized in the Statement of Financial Position Financial Instruments Cash Collateral Received or Pledged (in millions) Derivative instruments: Financial assets $ 298 $ (194) $ 104 $ — $ — $ 104 Financial liabilities (327) 194 (133) — 2 (131) Total derivative instruments $ (29) $ — $ (29) $ — $ 2 $ (27) |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 3 Months Ended |
Apr. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill | The following table presents goodwill allocated to the Company’s reportable segments and changes in the carrying amount of goodwill as of the dates indicated: Infrastructure Solutions Group Client Solutions Group VMware Other Businesses (a) Total (in millions) Balance as of January 29, 2021 $ 15,324 $ 4,237 $ 20,802 $ 466 $ 40,829 Impact of foreign currency translation 10 — — — 10 Balance as of April 30, 2021 $ 15,334 $ 4,237 $ 20,802 $ 466 $ 40,839 ____________________ (a) Goodwill allocated to Other businesses consists of Secureworks, Virtustream, and Boomi. |
Schedule of definite-lived intangible assets | The following table presents the Company’s intangible assets as of the dates indicated: April 30, 2021 January 29, 2021 Gross Accumulated Net Gross Accumulated Net (in millions) Customer relationships $ 22,394 $ (15,864) $ 6,530 $ 22,394 $ (15,448) $ 6,946 Developed technology 15,499 (12,409) 3,090 15,488 (12,136) 3,352 Trade names 1,285 (931) 354 1,285 (909) 376 Definite-lived intangible assets 39,178 (29,204) 9,974 39,167 (28,493) 10,674 Indefinite-lived trade names 3,755 — 3,755 3,755 — 3,755 Total intangible assets $ 42,933 $ (29,204) $ 13,729 $ 42,922 $ (28,493) $ 14,429 |
Schedule of indefinite-lived intangible assets | The following table presents the Company’s intangible assets as of the dates indicated: April 30, 2021 January 29, 2021 Gross Accumulated Net Gross Accumulated Net (in millions) Customer relationships $ 22,394 $ (15,864) $ 6,530 $ 22,394 $ (15,448) $ 6,946 Developed technology 15,499 (12,409) 3,090 15,488 (12,136) 3,352 Trade names 1,285 (931) 354 1,285 (909) 376 Definite-lived intangible assets 39,178 (29,204) 9,974 39,167 (28,493) 10,674 Indefinite-lived trade names 3,755 — 3,755 3,755 — 3,755 Total intangible assets $ 42,933 $ (29,204) $ 13,729 $ 42,922 $ (28,493) $ 14,429 |
Estimated future annual pre-tax amortization expense | The following table presents the estimated future annual pre-tax amortization expense of definite-lived intangible assets as of the date indicated: April 30, 2021 (in millions) Fiscal 2022 (remaining nine months) $ 1,993 Fiscal 2023 1,826 Fiscal 2024 1,457 Fiscal 2025 1,107 Fiscal 2026 861 Thereafter 2,730 Total $ 9,974 |
DEFERRED REVENUE (Tables)
DEFERRED REVENUE (Tables) | 3 Months Ended |
Apr. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Changes in deferred revenue | The following table presents the changes in the Company’s deferred revenue for the periods indicated: Three Months Ended April 30, 2021 May 1, 2020 (in millions) Deferred revenue: Deferred revenue at beginning of period $ 30,801 $ 27,800 Revenue deferrals 6,480 5,423 Revenue recognized (5,905) (5,356) Other (a) — (250) Deferred revenue at end of period $ 31,376 $ 27,617 Short-term deferred revenue $ 16,835 $ 14,766 Long-term deferred revenue $ 14,541 $ 12,851 ____________________ (a) For the three months ended May 1, 2020, Other represents the reclassification of RSA Security deferred revenue to liabilities held for sale. See Note 1 of the Notes to the Condensed Consolidated Financial Statements for more information about the divestiture of RSA Security. |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 3 Months Ended |
Apr. 30, 2021 | |
Equity [Abstract] | |
Changes in accumulated other comprehensive income (loss) | The following table presents changes in accumulated other comprehensive income (loss), net of tax, by the following components as of the dates indicated: Foreign Currency Translation Adjustments Cash Flow Hedges Pension and Other Postretirement Plans Accumulated Other Comprehensive Income (Loss) (in millions) Balances as of January 29, 2021 $ (150) $ (86) $ (78) $ (314) Other comprehensive income (loss) before reclassifications (7) (1) 1 (7) Amounts reclassified from accumulated other comprehensive income (loss) — 27 — 27 Total change for the period (7) 26 1 20 Less: Change in comprehensive income (loss) attributable to non-controlling interests — — — — Balances as of April 30, 2021 $ (157) $ (60) $ (77) $ (294) |
Reclassifications out of accumulated other comprehensive income (loss) | The following table presents reclassifications out of accumulated other comprehensive income (loss), net of tax, to net income for the periods indicated: Three Months Ended April 30, 2021 May 1, 2020 Cash Flow Hedges Pensions Total Cash Flow Hedges Pensions Total (in millions) Total reclassifications, net of tax: Net revenue $ (29) $ — $ (29) $ 96 $ — $ 96 Cost of net revenue 2 — 2 4 — 4 Operating expenses — — — — (2) (2) Total reclassifications, net of tax $ (27) $ — $ (27) $ 100 $ (2) $ 98 |
NON-CONTROLLING INTERESTS (Tabl
NON-CONTROLLING INTERESTS (Tables) | 3 Months Ended |
Apr. 30, 2021 | |
Noncontrolling Interest [Abstract] | |
Effect of changes in ownership interest | The following table presents the effect of changes in the Company’s ownership interest in VMware, Inc. and Secureworks on the Company’s equity for the period indicated: Three Months Ended April 30, 2021 (in millions) Net income attributable to Dell Technologies Inc. $ 887 Transfers (to)/from the non-controlling interests: Increase in Dell Technologies Inc. additional paid-in-capital for equity issuances and other equity activity 251 Decrease in Dell Technologies Inc. additional paid-in-capital for equity issuances and other equity activity (249) Net transfers to non-controlling interests 2 Change from net income attributable to Dell Technologies Inc. and transfers to the non-controlling interests $ 889 |
CAPITALIZATION (Tables)
CAPITALIZATION (Tables) | 3 Months Ended |
Apr. 30, 2021 | |
Equity [Abstract] | |
Schedule of stock | The following table presents the Company’s authorized, issued, and outstanding common stock as of the dates indicated: Authorized Issued Outstanding (in millions) Common stock as of April 30, 2021 Class A 600 385 385 Class B 200 102 102 Class C 7,900 285 277 Class D 100 — — Class V 343 — — 9,143 772 764 Common stock as of January 29, 2021 Class A 600 385 385 Class B 200 102 102 Class C 7,900 274 266 Class D 100 — — Class V 343 — — 9,143 761 753 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Apr. 30, 2021 | |
Earnings Per Share [Abstract] | |
Computation of basic and diluted earnings (loss) per share and reconciliation to consolidated net income (loss) | The following table presents the basic and diluted earnings per share for the periods indicated: Three Months Ended April 30, 2021 May 1, 2020 Earnings per share attributable to Dell Technologies Inc. Dell Technologies Common Stock — Basic $ 1.17 $ 0.19 Dell Technologies Common Stock — Diluted $ 1.13 $ 0.19 The following table presents the computation of basic and diluted earnings per share for the periods indicated: Three Months Ended April 30, 2021 May 1, 2020 (in millions) Numerator: Dell Technologies Common Stock Net income attributable to Dell Technologies — basic $ 887 $ 143 Incremental dilution from VMware, Inc. attributable to Dell Technologies (a) (2) (2) Net income attributable to Dell Technologies — diluted $ 885 $ 141 Denominator: Dell Technologies Common Stock weighted-average shares outstanding Weighted-average shares outstanding — basic 757 740 Dilutive effect of options, restricted stock units, restricted stock, and other 25 15 Weighted-average shares outstanding — diluted 782 755 Weighted-average shares outstanding — antidilutive — 8 ____________________ (a) The incremental dilution from VMware, Inc. represents the impact of VMware, Inc.’s dilutive securities on diluted earnings per share of Dell Technologies Common Stock, and is calculated by multiplying the difference between VMware, Inc.’s basic and diluted earnings per share by the number of shares of VMware, Inc. common stock held by the Company. For both periods presented, there was no incremental dilution from Secureworks due to its net loss position. |
REDEEMABLE SHARES (Tables)
REDEEMABLE SHARES (Tables) | 3 Months Ended |
Apr. 30, 2021 | |
Temporary Equity Disclosure [Abstract] | |
Temporary equity | The following table presents the amount of redeemable shares classified as temporary equity and summarizes the award type as of the dates indicated: April 30, 2021 January 29, 2021 (in millions) Redeemable shares classified as temporary equity $ 558 $ 472 Issued and outstanding unrestricted common shares 1 2 Restricted stock units 1 — Outstanding stock options 3 6 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 3 Months Ended |
Apr. 30, 2021 | |
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 income for the periods indicated: Three Months Ended April 30, 2021 May 1, 2020 (in millions) Consolidated net revenue: Infrastructure Solutions Group $ 7,911 $ 7,569 Client Solutions Group 13,305 11,104 VMware 2,991 2,755 Reportable segment net revenue 24,207 21,428 Other businesses (a) 290 517 Unallocated transactions (b) 2 — Impact of purchase accounting (c) (12) (48) Total consolidated net revenue $ 24,487 $ 21,897 Consolidated operating income: Infrastructure Solutions Group $ 788 $ 732 Client Solutions Group 1,090 592 VMware 841 773 Reportable segment operating income 2,719 2,097 Other businesses (a) (5) 65 Unallocated transactions (b) — (1) Impact of purchase accounting (c) (25) (63) Amortization of intangibles (709) (855) Transaction-related expenses (d) (51) (76) Stock-based compensation expense (e) (435) (370) Other corporate expenses (f) (119) (95) Total consolidated operating income $ 1,375 $ 702 ____________________ (a) Secureworks, Virtustream, and Boomi constitute Other businesses and do not meet the requirements for a reportable segment, either individually or collectively. The results of Other businesses are not material to the Company’s overall results. On September 1, 2020, the Company completed the sale of RSA Security. Prior to the divestiture, RSA Security’s results were included within Other businesses. See Note 1 of the Notes to the Condensed Consolidated Financial Statements for more information about the divestiture of RSA Security. (b) Unallocated transactions includes other corporate items that are not allocated to Dell Technologies’ reportable segments. (c) Impact of purchase accounting includes non-cash purchase accounting adjustments that are primarily related to the EMC merger transaction. (d) Transaction-related expenses includes acquisition, integration, and divestiture related costs. (e) Stock-based compensation expense consists of equity awards granted based on the estimated fair value of those awards at grant date. |
Disaggregation of revenue | The following table presents the disaggregation of net revenue by reportable segment, and by major product categories within the segments for the periods indicated: Three Months Ended April 30, 2021 May 1, 2020 (in millions) Net revenue: Infrastructure Solutions Group: Servers and networking $ 4,109 $ 3,758 Storage 3,802 3,811 Total ISG net revenue 7,911 7,569 Client Solutions Group: Commercial 9,803 8,634 Consumer 3,502 2,470 Total CSG net revenue 13,305 11,104 VMware: Total VMware net revenue 2,991 2,755 Total segment net revenue $ 24,207 $ 21,428 |
SUPPLEMENTAL CONSOLIDATED FIN_2
SUPPLEMENTAL CONSOLIDATED FINANCIAL INFORMATION (Tables) | 3 Months Ended |
Apr. 30, 2021 | |
Condensed Financial Information Disclosure [Abstract] | |
Information on selected accounts | The following table presents additional information on selected accounts included in the Condensed Consolidated Statements of Financial Position as of the dates indicated: April 30, 2021 January 29, 2021 (in millions) Cash, cash equivalents, and restricted cash: Cash and cash equivalents $ 14,244 $ 14,201 Restricted cash - other current assets (a) 930 891 Restricted cash - other non-current assets (a) 86 92 Total cash, cash equivalents, and restricted cash $ 15,260 $ 15,184 Inventories, net: Production materials $ 2,023 $ 1,717 Work-in-process 739 677 Finished goods 1,066 1,008 Total inventories, net $ 3,828 $ 3,402 Property, plant, and equipment, net: Computer equipment 6,839 6,506 Land and buildings 4,670 4,745 Machinery and other equipment 3,960 3,933 Total property, plant, and equipment 15,469 15,184 Accumulated depreciation and amortization (8,912) (8,753) Total property, plant, and equipment, net 6,557 6,431 Other non-current assets: Deferred and other tax assets $ 6,351 $ 6,230 Operating lease ROU assets 2,088 2,117 Deferred commissions 1,111 1,094 Other 1,807 1,755 Total other non-current assets $ 11,357 $ 11,196 ____________________ (a) Restricted cash primarily includes cash required to be held in escrow pursuant to DFS securitization arrangements. |
Trade receivables — allowance for expected credit losses | The following table presents the changes in the Company’s allowance for expected credit losses for the periods indicated: Three Months Ended April 30, 2021 May 1, 2020 (in millions) Trade Receivables — Allowance for expected credit losses: Balance at beginning of period $ 104 $ 94 Adjustment for adoption of accounting standard (a) — 27 Provision charged to income statement 10 36 Bad debt write-offs (10) (13) Balance at end of period $ 104 $ 144 ____________________ (a) The Company adopted the current expected credit losses standard as of February 1, 2020 using the modified retrospective method, with the cumulative-effect adjustment to the opening balance of stockholders’ equity (deficit) as of the adoption date. |
Liability for standard limited warranties | The following table presents changes in the Company’s liability for standard limited warranties for the periods indicated: Three Months Ended April 30, 2021 May 1, 2020 (in millions) Warranty liability: Warranty liability at beginning of period $ 473 $ 496 Costs accrued for new warranty contracts and changes in estimates for pre-existing warranties (a) (b) 202 148 Service obligations honored (217) (168) Warranty liability at end of period $ 458 $ 476 Current portion $ 345 $ 333 Non-current portion $ 113 $ 143 ____________________ (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. |
Activity related to severance liability | The following table presents the activity related to the Company’s severance liability for the periods indicated: Three Months Ended April 30, 2021 May 1, 2020 (in millions) Severance liability: Severance liability at beginning of period $ 138 $ 196 Severance charges to provision 30 98 Cash paid and other (a) (74) (168) Severance liability at end of period $ 94 $ 126 ____________________ (a) Other adjustments include the impact of foreign currency exchange rate fluctuations. |
Severance charges | The following table presents severance charges as included in the Condensed Consolidated Statements of Income for the periods indicated: Three Months Ended April 30, 2021 May 1, 2020 (in millions) Severance charges: Cost of net revenue $ 13 $ 10 Selling, general, and administrative 14 81 Research and development 3 7 Total severance charges $ 30 $ 98 |
Interest and other, net | The following table provides information regarding interest and other, net for the periods indicated: Three Months Ended April 30, 2021 May 1, 2020 (in millions) Interest and other, net: Investment income, primarily interest $ 11 $ 24 Gain on investments, net 157 94 Interest expense (510) (672) Foreign exchange (49) (99) Other 3 87 Total interest and other, net $ (388) $ (566) |
BASIS OF PRESENTATION - Narrati
BASIS OF PRESENTATION - Narrative (Details) - USD ($) $ in Millions | Apr. 14, 2021 | Sep. 01, 2020 | Dec. 28, 2018 |
VMware | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
CFA, initial term | 5 years | ||
CFA, renewal term | 1 year | ||
VMware | Minimum | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Dividends | $ 11,500 | ||
VMware | Maximum | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Dividends | $ 12,000 | ||
Merger Agreement | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cash payment | $ 14,000 | ||
Shares issued (in shares) | 149,387,617 | ||
Equity issued in acquisition | $ 6,900 | ||
RSA Security | Held-for-sale | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Proceeds from divestiture | $ 2,082 | ||
Gain on sale | 338 | ||
Loss on sale, net of tax | 21 | ||
Tax expense from sale | $ 359 |
FAIR VALUE MEASUREMENTS AND I_3
FAIR VALUE MEASUREMENTS AND INVESTMENTS - Hierarchy for Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Millions | Apr. 30, 2021 | Jan. 29, 2021 |
Assets: | ||
Equity and other securities | $ 327 | $ 449 |
Derivative instruments | 69 | 104 |
Total assets | 9,332 | 9,399 |
Liabilities: | ||
Derivative instruments | 103 | 133 |
Total liabilities | 103 | 133 |
Money market funds | ||
Assets: | ||
Cash and cash equivalents | 8,936 | 8,846 |
Level 1 | ||
Assets: | ||
Equity and other securities | 327 | 449 |
Derivative instruments | 0 | 0 |
Total assets | 9,263 | 9,295 |
Liabilities: | ||
Derivative instruments | 0 | 0 |
Total liabilities | 0 | 0 |
Level 1 | Money market funds | ||
Assets: | ||
Cash and cash equivalents | 8,936 | 8,846 |
Level 2 | ||
Assets: | ||
Equity and other securities | 0 | 0 |
Derivative instruments | 69 | 104 |
Total assets | 69 | 104 |
Liabilities: | ||
Derivative instruments | 103 | 133 |
Total liabilities | 103 | 133 |
Level 2 | Money market funds | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Level 3 | ||
Assets: | ||
Equity and other securities | 0 | 0 |
Derivative instruments | 0 | 0 |
Total assets | 0 | 0 |
Liabilities: | ||
Derivative instruments | 0 | 0 |
Total liabilities | 0 | 0 |
Level 3 | Money market funds | ||
Assets: | ||
Cash and cash equivalents | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS AND I_4
FAIR VALUE MEASUREMENTS AND INVESTMENTS - Additional Information (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2021 | Jan. 29, 2021 | |
Fair Value Disclosures [Abstract] | ||
Deferred compensation plan assets | $ 340 | $ 308 |
Deferred compensation liability | 340 | 308 |
Carrying Value | 1,100 | $ 1,000 |
Equity securities, upward price adjustment | 198 | |
Equity securities, downward price adjustment | $ 26 |
FAIR VALUE MEASUREMENTS AND I_5
FAIR VALUE MEASUREMENTS AND INVESTMENTS - Carrying Value and Estimated Fair Value of Outstanding Debt (Details) - USD ($) $ in Billions | Apr. 30, 2021 | Jan. 29, 2021 |
Carrying Value | Senior Secured Credit Facilities | Secured Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Outstanding debt | $ 6.2 | $ 6.2 |
Carrying Value | First Lien Notes | Secured Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Outstanding debt | 18.3 | 18.3 |
Carrying Value | Unsecured Notes and Debentures | Unsecured Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Outstanding debt | 0.8 | 1.2 |
Carrying Value | Senior Notes | Unsecured Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Outstanding debt | 1.6 | 2.7 |
Carrying Value | EMC Notes | Unsecured Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Outstanding debt | 1 | 1 |
Carrying Value | VMware Notes | Unsecured Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Outstanding debt | 4.7 | 4.7 |
Carrying Value | Margin Loan Facility | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Outstanding debt | 4 | 4 |
Fair Value | Senior Secured Credit Facilities | Secured Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Outstanding debt | 6.3 | 6.3 |
Fair Value | First Lien Notes | Secured Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Outstanding debt | 22.7 | 22.8 |
Fair Value | Unsecured Notes and Debentures | Unsecured Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Outstanding debt | 1.2 | 1.6 |
Fair Value | Senior Notes | Unsecured Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Outstanding debt | 1.7 | 2.8 |
Fair Value | EMC Notes | Unsecured Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Outstanding debt | 1 | 1 |
Fair Value | VMware Notes | Unsecured Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Outstanding debt | 5.2 | 5.3 |
Fair Value | Margin Loan Facility | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Outstanding debt | $ 3.9 | $ 3.9 |
FAIR VALUE MEASUREMENTS AND I_6
FAIR VALUE MEASUREMENTS AND INVESTMENTS - Investments (Details) - USD ($) $ in Millions | Apr. 30, 2021 | Jan. 29, 2021 |
Equity and other securities | ||
Carrying Value | $ 1,100 | $ 1,000 |
Fixed income debt securities | ||
Total securities | 1,670 | 1,624 |
Long-Term Investments | ||
Equity and other securities | ||
Cost | 1,328 | 907 |
Unrealized Gain | 198 | 677 |
Unrealized (Loss) | (121) | (145) |
Carrying Value | 1,405 | 1,439 |
Fixed income debt securities | ||
Fixed income debt securities | ||
Cost | 256 | 176 |
Unrealized Gain | 9 | 9 |
Unrealized (Loss) | 0 | 0 |
Carrying Value | $ 265 | $ 185 |
FINANCIAL SERVICES - Additional
FINANCIAL SERVICES - Additional Information (Narrative) (Details) - USD ($) $ in Billions | 3 Months Ended | |
Apr. 30, 2021 | May 01, 2020 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
New financing originations | $ 1.9 | $ 1.8 |
Revolving | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Repayment term (in years) | 12 months | |
Fixed-term | Minimum | Commercial Borrower | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Repayment term (in years) | 2 years | |
Fixed-term | Minimum | Other Borrower | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Repayment term (in years) | 3 years | |
Fixed-term | Maximum | Commercial Borrower | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Repayment term (in years) | 4 years | |
Fixed-term | Maximum | Other Borrower | ||
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 | Apr. 30, 2021 | Jan. 29, 2021 | May 01, 2020 | Jan. 31, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Customer receivables, gross | $ 10,190 | $ 10,391 | ||
Financing receivables, net | 10,241 | 10,494 | ||
Short-term | 4,980 | 5,155 | ||
Long-term | 5,261 | 5,339 | ||
Customer receivables | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Customer receivables, gross | 10,190 | 10,391 | ||
Allowances for losses | (316) | (321) | $ (321) | $ (149) |
Financing receivables, net | 9,874 | 10,070 | ||
Residual interest | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing receivables, net | 367 | 424 | ||
Revolving | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing receivables, net | 613 | 648 | ||
Short-term | 613 | 648 | ||
Long-term | 0 | 0 | ||
Revolving | Customer receivables | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Customer receivables, gross | 752 | 796 | ||
Allowances for losses | (139) | (148) | (144) | (70) |
Financing receivables, net | 613 | 648 | ||
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 | 9,628 | 9,846 | ||
Short-term | 4,367 | 4,507 | ||
Long-term | 5,261 | 5,339 | ||
Fixed-term | Customer receivables | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Customer receivables, gross | 9,438 | 9,595 | ||
Allowances for losses | (177) | (173) | $ (177) | $ (79) |
Financing receivables, net | 9,261 | 9,422 | ||
Fixed-term | Residual interest | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing receivables, net | $ 367 | $ 424 |
FINANCIAL SERVICES - Schedule_2
FINANCIAL SERVICES - Schedule of Changes in the Allowance for Financing Receivable Losses (Details) - Customer receivables - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2021 | May 01, 2020 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balances at beginning of period | $ 321 | $ 149 |
Charge-offs, net of recoveries | (15) | (29) |
Provision charged to income statement | 10 | 90 |
Balances at end of period | 316 | 321 |
Adjustment for adoption of accounting standards | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balances at beginning of period | 0 | 111 |
Revolving | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balances at beginning of period | 148 | 70 |
Charge-offs, net of recoveries | (13) | (20) |
Provision charged to income statement | 4 | 54 |
Balances at end of period | 139 | 144 |
Revolving | Adjustment for adoption of accounting standards | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balances at beginning of period | 0 | 40 |
Fixed-term | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balances at beginning of period | 173 | 79 |
Charge-offs, net of recoveries | (2) | (9) |
Provision charged to income statement | 6 | 36 |
Balances at end of period | 177 | 177 |
Fixed-term | Adjustment for adoption of accounting standards | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balances at beginning of period | $ 0 | $ 71 |
FINANCIAL SERVICES - Aging Cust
FINANCIAL SERVICES - Aging Customer Financing Receivables, Gross, Including Accrued Interest (Details) - USD ($) $ in Millions | Apr. 30, 2021 | Jan. 29, 2021 |
Financing Receivable, Past Due [Line Items] | ||
Total customer receivables, gross | $ 10,190 | $ 10,391 |
Customer receivables | ||
Financing Receivable, Past Due [Line Items] | ||
Total customer receivables, gross | 10,190 | 10,391 |
Revolving | Customer receivables | ||
Financing Receivable, Past Due [Line Items] | ||
Total customer receivables, gross | 752 | 796 |
Revolving | Revolving — DPA | Customer receivables | ||
Financing Receivable, Past Due [Line Items] | ||
Total customer receivables, gross | 580 | 621 |
Revolving | Revolving — DBC | Customer receivables | ||
Financing Receivable, Past Due [Line Items] | ||
Total customer receivables, gross | 172 | 175 |
Fixed-term | Customer receivables | ||
Financing Receivable, Past Due [Line Items] | ||
Total customer receivables, gross | 9,438 | 9,595 |
Fixed-term | Fixed-term — Consumer and Commercial | Customer receivables | ||
Financing Receivable, Past Due [Line Items] | ||
Total customer receivables, gross | 9,438 | 9,595 |
Current | Customer receivables | ||
Financing Receivable, Past Due [Line Items] | ||
Total customer receivables, gross | 9,742 | 9,927 |
Current | Revolving | Revolving — DPA | Customer receivables | ||
Financing Receivable, Past Due [Line Items] | ||
Total customer receivables, gross | 549 | 578 |
Current | Revolving | Revolving — DBC | Customer receivables | ||
Financing Receivable, Past Due [Line Items] | ||
Total customer receivables, gross | 158 | 157 |
Current | Fixed-term | Fixed-term — Consumer and Commercial | Customer receivables | ||
Financing Receivable, Past Due [Line Items] | ||
Total customer receivables, gross | 9,035 | 9,192 |
Past Due 1 — 90 Days | Customer receivables | ||
Financing Receivable, Past Due [Line Items] | ||
Total customer receivables, gross | 378 | 360 |
Past Due 1 — 90 Days | Revolving | Revolving — DPA | Customer receivables | ||
Financing Receivable, Past Due [Line Items] | ||
Total customer receivables, gross | 21 | 30 |
Past Due 1 — 90 Days | Revolving | Revolving — DBC | Customer receivables | ||
Financing Receivable, Past Due [Line Items] | ||
Total customer receivables, gross | 11 | 14 |
Past Due 1 — 90 Days | Fixed-term | Fixed-term — Consumer and Commercial | Customer receivables | ||
Financing Receivable, Past Due [Line Items] | ||
Total customer receivables, gross | 346 | 316 |
Past Due >90 Days | Customer receivables | ||
Financing Receivable, Past Due [Line Items] | ||
Total customer receivables, gross | 70 | 104 |
Past Due >90 Days | Revolving | Revolving — DPA | Customer receivables | ||
Financing Receivable, Past Due [Line Items] | ||
Total customer receivables, gross | 10 | 13 |
Past Due >90 Days | Revolving | Revolving — DBC | Customer receivables | ||
Financing Receivable, Past Due [Line Items] | ||
Total customer receivables, gross | 3 | 4 |
Past Due >90 Days | Fixed-term | Fixed-term — Consumer and Commercial | Customer receivables | ||
Financing Receivable, Past Due [Line Items] | ||
Total customer receivables, gross | $ 57 | $ 87 |
FINANCIAL SERVICES - Credit Qua
FINANCIAL SERVICES - Credit Quality Indicators (Details) - USD ($) $ in Millions | Apr. 30, 2021 | Jan. 29, 2021 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Customer receivables, gross | $ 10,190 | $ 10,391 |
Fixed-term | Fixed-term — Consumer and Commercial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022 | 1,581 | 5,111 |
2021 | 4,325 | 2,972 |
2020 | 2,492 | 1,191 |
2019 | 839 | 277 |
2018 | 179 | 44 |
Years Prior | 22 | 0 |
Revolving | Revolving — DPA | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, revolving | 580 | 621 |
Revolving | Revolving — DBC | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, revolving | 172 | 175 |
Higher | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Customer receivables, gross | 5,978 | 5,999 |
Higher | Fixed-term | Fixed-term — Consumer and Commercial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022 | 1,057 | 3,125 |
2021 | 2,597 | 1,802 |
2020 | 1,520 | 661 |
2019 | 486 | 166 |
2018 | 107 | 26 |
Years Prior | 13 | 0 |
Higher | Revolving | Revolving — DPA | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, revolving | 153 | 172 |
Higher | Revolving | Revolving — DBC | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, revolving | 45 | 47 |
Mid | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Customer receivables, gross | 2,305 | 2,401 |
Mid | Fixed-term | Fixed-term — Consumer and Commercial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022 | 286 | 1,121 |
2021 | 1,000 | 671 |
2020 | 553 | 287 |
2019 | 190 | 73 |
2018 | 45 | 9 |
Years Prior | 4 | 0 |
Mid | Revolving | Revolving — DPA | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, revolving | 176 | 188 |
Mid | Revolving | Revolving — DBC | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, revolving | 51 | 52 |
Lower | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Customer receivables, gross | 1,907 | 1,991 |
Lower | Fixed-term | Fixed-term — Consumer and Commercial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022 | 238 | 865 |
2021 | 728 | 499 |
2020 | 419 | 243 |
2019 | 163 | 38 |
2018 | 27 | 9 |
Years Prior | 5 | 0 |
Lower | Revolving | Revolving — DPA | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, revolving | 251 | 261 |
Lower | Revolving | Revolving — DBC | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, revolving | $ 76 | $ 76 |
FINANCIAL SERVICES - Leases Nar
FINANCIAL SERVICES - Leases Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2021 | May 01, 2020 | |
Lessee, Lease, Description [Line Items] | ||
Interest income on the sales-type lease receivables | $ 64 | $ 65 |
Operating lease income | 156 | 87 |
Operating Lease | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease depreciation expense | $ 116 | $ 62 |
FINANCIAL SERVICES - Finance Le
FINANCIAL SERVICES - Finance Leases (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2021 | May 01, 2020 | |
Receivables [Abstract] | ||
Net revenue — products | $ 230 | $ 215 |
Cost of net revenue — products | 163 | 159 |
Gross margin — products | $ 67 | $ 56 |
FINANCIAL SERVICES - Finance _2
FINANCIAL SERVICES - Finance Leases Future Maturity (Details) $ in Millions | Apr. 30, 2021USD ($) |
Sales-type and Direct Financing Leases, Lease Receivable, Fiscal Year Maturity [Abstract] | |
Fiscal 2022 (remaining nine months) | $ 2,232 |
Fiscal 2023 | 1,819 |
Fiscal 2024 | 1,086 |
Fiscal 2025 | 429 |
Fiscal 2026 and beyond | 141 |
Total undiscounted cash flows | 5,707 |
Total customer receivables, gross | 10,190 |
Less: unearned income | (668) |
Fixed-term loans | |
Sales-type and Direct Financing Leases, Lease Receivable, Fiscal Year Maturity [Abstract] | |
Total customer receivables, gross | 4,399 |
Revolving loans | |
Sales-type and Direct Financing Leases, Lease Receivable, Fiscal Year Maturity [Abstract] | |
Total customer receivables, gross | $ 752 |
FINANCIAL SERVICES - Operating
FINANCIAL SERVICES - Operating Leases (Details) - USD ($) $ in Millions | Apr. 30, 2021 | Jan. 29, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Equipment under operating lease, gross | $ 15,469 | $ 15,184 |
Less: accumulated depreciation | (8,912) | (8,753) |
Equipment under operating lease, net | 6,557 | 6,431 |
Operating Lease | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Equipment under operating lease, gross | 1,921 | 1,746 |
Less: accumulated depreciation | (541) | (432) |
Equipment under operating lease, net | $ 1,380 | $ 1,314 |
FINANCIAL SERVICES - Future Mat
FINANCIAL SERVICES - Future Maturities (Details) $ in Millions | Apr. 30, 2021USD ($) |
Operating Leases | |
Fiscal 2022 (remaining nine months) | $ 525 |
Fiscal 2023 | 516 |
Fiscal 2024 | 261 |
Fiscal 2025 | 59 |
Fiscal 2026 and beyond | 9 |
Total | $ 1,370 |
FINANCIAL SERVICES - DFS Debt (
FINANCIAL SERVICES - DFS Debt (Details) - USD ($) $ in Millions | Apr. 30, 2021 | Jan. 29, 2021 |
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Total debt, carrying value | $ 46,683 | $ 47,984 |
Total DFS debt | 47,153 | 48,480 |
Short-term debt | 8,748 | 6,362 |
Long-term debt | 37,935 | 41,622 |
Secured Debt | U.S. | Finance Leases and Revolving Loan Portfolio Segments | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Total debt, carrying value | 6,420 | 6,412 |
Secured Debt | International | Finance Leases and Revolving Loan Portfolio Segments | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Total debt, carrying value | 3,333 | 3,254 |
Asset-based financing and securitization facilities | Secured Debt | U.S. | Finance Leases and Revolving Loan Portfolio Segments | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Total debt, carrying value | 2,674 | 3,311 |
Asset-based financing and securitization facilities | Secured Debt | International | Finance Leases and Revolving Loan Portfolio Segments | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Total debt, carrying value | 784 | 786 |
Fixed-term securitization offerings | Secured Debt | U.S. | Finance Leases and Revolving Loan Portfolio Segments | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Total debt, carrying value | 3,548 | 2,961 |
Other | Secured Debt | U.S. | Finance Leases and Revolving Loan Portfolio Segments | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Total debt, carrying value | 198 | 140 |
Other | Secured Debt | International | Finance Leases and Revolving Loan Portfolio Segments | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Total debt, carrying value | 1,087 | 1,006 |
Note payable | Secured Debt | International | Finance Leases and Revolving Loan Portfolio Segments | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Total debt, carrying value | 250 | 250 |
Dell Bank Senior Unsecured Eurobonds | Unsecured Debt | International | Finance Leases and Revolving Loan Portfolio Segments | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Total debt, carrying value | 1,212 | 1,212 |
DFS Debt | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Total DFS debt | 9,753 | |
DFS Debt | Secured Debt | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Total DFS debt | 9,753 | 9,666 |
Short-term debt | 4,673 | 4,888 |
Long-term debt | $ 5,080 | $ 4,778 |
FINANCIAL SERVICES - DFS Debt N
FINANCIAL SERVICES - DFS Debt Narrative (Details) | Jun. 24, 2020EUR (€) | Oct. 17, 2019EUR (€) | Apr. 30, 2021USD ($) | Aug. 07, 2020agreement | Mar. 20, 2019USD ($) | Jun. 22, 2016USD ($) | Jun. 01, 2016USD ($) |
Note payable | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount | $ 250,000,000 | ||||||
Note payable | TIIE | Mexico, Pesos | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 3.37% | ||||||
Secured Debt | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount | $ 4,500,000,000 | $ 20,000,000,000 | |||||
Secured Debt | Asset-based financing and securitization facilities | U.S. | Finance Leases and Revolving Loan Portfolio Segments | |||||||
Debt Instrument [Line Items] | |||||||
Total debt capacity | $ 4,100,000,000 | ||||||
Secured Debt | Asset-based financing and securitization facilities | International | Fixed-term | |||||||
Debt Instrument [Line Items] | |||||||
Total debt capacity | $ 970,000,000 | ||||||
Secured Debt | Fixed-term securitization offerings | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 0.21% | ||||||
Secured Debt | Fixed-term securitization offerings | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 5.92% | ||||||
Secured Debt | Other | Canada | |||||||
Debt Instrument [Line Items] | |||||||
Total debt capacity | $ 366,000,000 | ||||||
Secured Debt | Other | Europe | |||||||
Debt Instrument [Line Items] | |||||||
Total debt capacity | 727,000,000 | ||||||
Secured Debt | Other | Australia and New Zealand | |||||||
Debt Instrument [Line Items] | |||||||
Total debt capacity | $ 349,000,000 | ||||||
Unsecured Debt | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount | $ 3,250,000,000 | ||||||
Unsecured Debt | Mexico | |||||||
Debt Instrument [Line Items] | |||||||
Number of credit agreements | agreement | 2 | ||||||
Unsecured Debt | Dell Bank Bonds | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 1.625% | 0.625% | |||||
Aggregate principal amount | € | € 500,000,000 | € 500,000,000 | |||||
Debt instrument, term | 4 years | 3 years |
FINANCIAL SERVICES - Schedule_3
FINANCIAL SERVICES - Schedule of Financing Receivables Held by the Consolidated VIEs (Details) - USD ($) $ in Millions | Apr. 30, 2021 | Jan. 29, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Assets | $ 121,752 | $ 123,415 |
Liabilities | 112,608 | 115,390 |
Other current assets | Variable Interest Entity, Primary Beneficiary | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Assets | 874 | 838 |
Short-term | Variable Interest Entity, Primary Beneficiary | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Assets | 3,478 | 3,534 |
Long-term | Variable Interest Entity, Primary Beneficiary | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Assets | 3,267 | 3,314 |
Property, plant, and equipment, net | Variable Interest Entity, Primary Beneficiary | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Assets | 827 | 792 |
Short-term | Variable Interest Entity, Primary Beneficiary | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Liabilities | 4,055 | 4,208 |
Long-term | Variable Interest Entity, Primary Beneficiary | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Liabilities | $ 2,938 | $ 2,841 |
FINANCIAL SERVICES - Variable I
FINANCIAL SERVICES - Variable Interest Entities Narrative (Details) - USD ($) $ in Billions | 3 Months Ended | |
Apr. 30, 2021 | May 01, 2020 | |
Variable Interest Entity, Primary Beneficiary | ||
Debt Instrument [Line Items] | ||
Financing receivables transferred via securitization through SPEs | $ 1.4 | $ 1.8 |
FINANCIAL SERVICES - Customer R
FINANCIAL SERVICES - Customer Receivables Sales Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2021 | May 01, 2020 | |
Banking and Thrift, Interest [Abstract] | ||
Financing receivables sold | $ 101 | $ 21 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) $ in Millions | Apr. 30, 2021USD ($) |
Lessee, Lease, Description [Line Items] | |
Operating lease not yet commenced | $ 97 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease term | 1 month |
Term of lease contract | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease term | 25 years |
Term of lease contract | 10 years |
LEASES - Components of Lease Ex
LEASES - Components of Lease Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2021 | May 01, 2020 | |
Operating lease expense: | ||
Operating lease costs | $ 142 | $ 131 |
Variable costs | 33 | 44 |
Total lease costs | $ 175 | $ 175 |
LEASES - Supplemental Informati
LEASES - Supplemental Information Related to Operating Leases (Details) - USD ($) $ in Millions | Apr. 30, 2021 | Jan. 29, 2021 |
Leases [Abstract] | ||
Operating lease ROU assets | $ 2,088 | $ 2,117 |
Operating lease right of use (“ROU”) assets extensible list | us-gaap:OtherAssets | |
Current operating lease liabilities | $ 440 | 436 |
Current operating lease liabilities extensible list | us-gaap:AccountsPayableAndAccruedLiabilitiesCurrent | |
Non-current operating lease liabilities | $ 1,791 | 1,787 |
Non-current operating lease liabilities extensible list | Other non-current liabilities | |
Total operating lease liabilities | $ 2,231 | $ 2,223 |
Weighted-average remaining lease term (in years) | 8 years 9 months 3 days | 8 years 10 months 6 days |
Weighted-average discount rate | 3.40% | 3.47% |
LEASES - Supplemental Cash Flow
LEASES - Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2021 | May 01, 2020 | |
Leases [Abstract] | ||
Cash paid for amounts included in the measurement of lease liabilities — operating cash outflows from operating leases | $ 134 | $ 131 |
ROU assets obtained in exchange for new operating lease liabilities | $ 117 | $ 120 |
LEASES - Maturity of Operating
LEASES - Maturity of Operating Leases (Details) - USD ($) $ in Millions | Apr. 30, 2021 | Jan. 29, 2021 |
Leases [Abstract] | ||
Fiscal 2022 (remaining nine months) | $ 351 | |
Fiscal 2023 | 469 | |
Fiscal 2024 | 347 | |
Fiscal 2025 | 260 | |
Fiscal 2026 | 211 | |
Thereafter | 1,010 | |
Total lease payments | 2,648 | |
Less: Imputed interest | (417) | |
Total operating lease liabilities | 2,231 | $ 2,223 |
Current operating lease liabilities | 440 | 436 |
Non-current operating lease liabilities | $ 1,791 | $ 1,787 |
DEBT - Outstanding Debt (Detail
DEBT - Outstanding Debt (Details) - USD ($) $ in Millions | Apr. 30, 2021 | Jan. 29, 2021 | Sep. 07, 2016 |
Debt Instrument [Line Items] | |||
Total debt, principal amount | $ 47,153 | $ 48,480 | |
Unamortized discount, net of unamortized premium | (185) | (194) | |
Debt issuance costs | (285) | (302) | |
Total debt, carrying value | 46,683 | 47,984 | |
Total short-term debt, carrying value | 8,748 | 6,362 | |
Total long-term debt, carrying value | 37,935 | 41,622 | |
DFS Debt | |||
Debt Instrument [Line Items] | |||
Total debt, principal amount | 9,753 | ||
2.46% Margin Loan Facility due April 2022 | |||
Debt Instrument [Line Items] | |||
Total debt, principal amount | 4,000 | ||
Secured Debt | 2.00% Term Loan B-2 Facility due September 2025 | |||
Debt Instrument [Line Items] | |||
Total debt, principal amount | $ 3,135 | 3,143 | |
Interest rate at period end | 2.00% | ||
Secured Debt | 1.90% Term Loan A-6 Facility due March 2024 | |||
Debt Instrument [Line Items] | |||
Total debt, principal amount | $ 3,134 | 3,134 | |
Interest rate at period end | 1.90% | ||
Secured Debt | 5.45% due June 2023 | |||
Debt Instrument [Line Items] | |||
Total debt, principal amount | $ 3,750 | 3,750 | |
Interest rate | 5.45% | ||
Secured Debt | 4.00% due July 2024 | |||
Debt Instrument [Line Items] | |||
Total debt, principal amount | $ 1,000 | 1,000 | |
Interest rate | 4.00% | ||
Secured Debt | 5.85% due July 2025 | |||
Debt Instrument [Line Items] | |||
Total debt, principal amount | $ 1,000 | 1,000 | |
Interest rate | 5.85% | ||
Secured Debt | 6.02% due June 2026 | |||
Debt Instrument [Line Items] | |||
Total debt, principal amount | $ 4,500 | 4,500 | |
Interest rate | 6.02% | ||
Secured Debt | 4.90% due October 2026 | |||
Debt Instrument [Line Items] | |||
Total debt, principal amount | $ 1,750 | 1,750 | |
Interest rate | 4.90% | ||
Secured Debt | 6.10% due July 2027 | |||
Debt Instrument [Line Items] | |||
Total debt, principal amount | $ 500 | 500 | |
Interest rate | 6.10% | ||
Secured Debt | 5.30% due October 2029 | |||
Debt Instrument [Line Items] | |||
Total debt, principal amount | $ 1,750 | 1,750 | |
Interest rate | 5.30% | ||
Secured Debt | 6.20% due July 2030 | |||
Debt Instrument [Line Items] | |||
Total debt, principal amount | $ 750 | 750 | |
Interest rate | 6.20% | ||
Secured Debt | 8.10% due July 2036 | |||
Debt Instrument [Line Items] | |||
Total debt, principal amount | $ 1,500 | 1,500 | |
Interest rate | 8.10% | ||
Secured Debt | 8.35% due July 2046 | |||
Debt Instrument [Line Items] | |||
Total debt, principal amount | $ 2,000 | 2,000 | |
Interest rate | 8.35% | ||
Secured Debt | DFS Debt | |||
Debt Instrument [Line Items] | |||
Total debt, principal amount | $ 9,753 | 9,666 | |
Total short-term debt, carrying value | 4,673 | 4,888 | |
Total long-term debt, carrying value | 5,080 | 4,778 | |
Unsecured Debt | 4.625% due April 2021 | |||
Debt Instrument [Line Items] | |||
Total debt, principal amount | $ 0 | 400 | |
Interest rate | 4.625% | ||
Unsecured Debt | 7.10% due April 2028 | |||
Debt Instrument [Line Items] | |||
Total debt, principal amount | $ 300 | 300 | |
Interest rate | 7.10% | ||
Unsecured Debt | 6.50% due April 2038 | |||
Debt Instrument [Line Items] | |||
Total debt, principal amount | $ 388 | 388 | |
Interest rate | 6.50% | ||
Unsecured Debt | 5.40% due September 2040 | |||
Debt Instrument [Line Items] | |||
Total debt, principal amount | $ 264 | 264 | |
Interest rate | 5.40% | ||
Unsecured Debt | 5.875% due June 2021 | |||
Debt Instrument [Line Items] | |||
Total debt, principal amount | $ 0 | 1,075 | |
Interest rate | 5.875% | ||
Unsecured Debt | 7.125% due June 2024 | |||
Debt Instrument [Line Items] | |||
Total debt, principal amount | $ 1,625 | 1,625 | |
Interest rate | 7.125% | ||
Unsecured Debt | 3.375% due June 2023 | |||
Debt Instrument [Line Items] | |||
Total debt, principal amount | $ 1,000 | 1,000 | $ 1,000 |
Interest rate | 3.375% | ||
Unsecured Debt | 2.95% due August 2022 | |||
Debt Instrument [Line Items] | |||
Total debt, principal amount | $ 1,500 | 1,500 | |
Interest rate | 2.95% | ||
Unsecured Debt | 4.50% due May 2025 | |||
Debt Instrument [Line Items] | |||
Total debt, principal amount | $ 750 | 750 | |
Interest rate | 4.50% | ||
Unsecured Debt | 4.65% due May 2027 | |||
Debt Instrument [Line Items] | |||
Total debt, principal amount | $ 500 | 500 | |
Interest rate | 4.65% | ||
Unsecured Debt | 3.90% due August 2027 | |||
Debt Instrument [Line Items] | |||
Total debt, principal amount | $ 1,250 | 1,250 | |
Interest rate | 3.90% | ||
Unsecured Debt | 4.70% due May 2030 | |||
Debt Instrument [Line Items] | |||
Total debt, principal amount | $ 750 | 750 | |
Interest rate | 4.70% | ||
Other | |||
Debt Instrument [Line Items] | |||
Total debt, principal amount | $ 304 | 235 | |
Other | 2.46% Margin Loan Facility due April 2022 | |||
Debt Instrument [Line Items] | |||
Total debt, principal amount | $ 4,000 | $ 4,000 | |
Interest rate at period end | 2.46% |
DEBT - Additional Information (
DEBT - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2021 | May 01, 2020 | |
Debt Instrument [Line Items] | ||
Repayments of debt | $ 4,070 | $ 5,405 |
Unsecured Debt | 5.875% due June 2021 | ||
Debt Instrument [Line Items] | ||
Repayments of debt | $ 1,075 | |
Interest rate | 5.875% | |
Unsecured Debt | 4.625% due April 2021 | ||
Debt Instrument [Line Items] | ||
Repayments of debt | $ 400 | |
Interest rate | 4.625% |
DEBT - Secured Debt Narrative (
DEBT - Secured Debt Narrative (Details) - USD ($) | Feb. 18, 2021 | Jun. 01, 2016 | Apr. 30, 2021 | Jan. 29, 2021 | Apr. 09, 2020 | Mar. 20, 2019 | Sep. 12, 2017 |
Secured Debt | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount | $ 20,000,000,000 | $ 4,500,000,000 | |||||
Debt, maximum period for registration | 5 years | ||||||
VMware Revolving Credit Facility | Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 4,500,000,000 | $ 1,000,000,000 | |||||
Senior Secured Credit Facilities | Letter of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | 500,000,000 | ||||||
Senior Secured Credit Facilities | Other | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 400,000,000 | ||||||
Refinancing Term B-2 Loans | Secured Debt | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount | $ 3,143,000,000 | ||||||
Annual principal amortization | 0.25% | ||||||
Refinancing Term B-2 Loans | Secured Debt | LIBOR | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 1.75% | ||||||
Refinancing Term B-2 Loans | Secured Debt | Base Rate | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 0.75% | ||||||
Term Loan A-4 Facility And Term Loan A-6 Facility | Secured Debt | LIBOR | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 1.25% | ||||||
Term Loan A-4 Facility And Term Loan A-6 Facility | Secured Debt | LIBOR | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 2.00% | ||||||
Term Loan A-4 Facility And Term Loan A-6 Facility | Secured Debt | Base Rate | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 0.25% | ||||||
Term Loan A-4 Facility And Term Loan A-6 Facility | Secured Debt | Base Rate | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 1.00% | ||||||
Term Loan A-6 Facility | Other | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 4,000,000,000 | ||||||
Term Loan A-6 Facility | Line of Credit | First Four Years After March 13, 2019 | |||||||
Debt Instrument [Line Items] | |||||||
Annual principal amortization | 5.00% | ||||||
Term Loan A-6 Facility | Line of Credit | Fifth Year After March 13, 2019 | |||||||
Debt Instrument [Line Items] | |||||||
Annual principal amortization | 80.00% | ||||||
3.33% Revolving Credit Facility due September 2021 | Secured Debt | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, collateral, percent of capital stock of borrowers | 100.00% | ||||||
Notes Due April 9, 2020 | Secured Debt | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount | $ 2,250,000,000 |
DEBT - Unsecured Debt Narrative
DEBT - Unsecured Debt Narrative (Details) | Sep. 12, 2017USD ($)option_period | Apr. 30, 2021USD ($) | Jan. 29, 2021USD ($) | Apr. 07, 2020USD ($) | Aug. 21, 2017USD ($) | Sep. 07, 2016USD ($) | Jun. 22, 2016USD ($) |
Debt Instrument [Line Items] | |||||||
Total debt, principal amount | $ 47,153,000,000 | $ 48,480,000,000 | |||||
VMware Notes | |||||||
Debt Instrument [Line Items] | |||||||
Total debt, principal amount | 4,750,000,000 | ||||||
Revolving Credit Facility | VMware Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Total debt, principal amount | 0 | ||||||
Maximum borrowing capacity | $ 1,000,000,000 | $ 4,500,000,000 | |||||
Debt instrument, term | 5 years | ||||||
Number of extension periods | option_period | 2 | ||||||
Conditional extension period | 1 year | ||||||
Unsecured Debt | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount | $ 3,250,000,000 | ||||||
Unsecured Debt | 1.875% due June 2018 | |||||||
Debt Instrument [Line Items] | |||||||
Total debt, principal amount | $ 2,500,000,000 | ||||||
Interest rate | 1.875% | ||||||
Unsecured Debt | 2.650% Due June 2020 | |||||||
Debt Instrument [Line Items] | |||||||
Total debt, principal amount | $ 2,000,000,000 | ||||||
Interest rate | 2.65% | ||||||
Unsecured Debt | 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% | ||||||
Unsecured Debt | VMware Notes | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount | $ 2,000,000,000 | ||||||
Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount | $ 4,000,000,000 |
DEBT - Other Narrative (Details
DEBT - Other Narrative (Details) - Other - USD ($) shares in Millions | Apr. 12, 2017 | Apr. 30, 2021 | Jan. 29, 2021 | Dec. 20, 2018 |
2.46% Margin Loan Facility due April 2022 | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 2,000,000,000 | $ 3,350,000,000 | ||
2.46% Margin Loan Facility due April 2022 | Base Rate | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.25% | |||
2.46% Margin Loan Facility due April 2022 | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 2.25% | |||
Term Loan A-6 Facility | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 4,000,000,000 | |||
Class B | 2.46% Margin Loan Facility due April 2022 | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, collateral (in shares) | 76 | |||
Class A | 2.46% Margin Loan Facility due April 2022 | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, collateral (in shares) | 24 |
DEBT - Aggregate Future Maturit
DEBT - Aggregate Future Maturities (Details) - USD ($) $ in Millions | Apr. 30, 2021 | Jan. 29, 2021 |
Total maturities, principal amount | ||
2022 (remaining nine months) | $ 3,886 | |
2023 | 9,973 | |
2024 | 7,952 | |
2025 | 4,311 | |
2026 | 4,811 | |
Thereafter | 16,220 | |
Total debt, principal amount | 47,153 | $ 48,480 |
Associated carrying value adjustments | ||
2022 (remaining nine months) | (6) | |
2023 | (15) | |
2024 | (32) | |
2025 | (71) | |
2026 | (47) | |
Thereafter | (299) | |
Total | (470) | |
Total maturities, carrying value amount | ||
2022 (remaining nine months) | 3,880 | |
2023 | 9,958 | |
2024 | 7,920 | |
2025 | 4,240 | |
2026 | 4,764 | |
Thereafter | 15,921 | |
Total debt, carrying value | 46,683 | $ 47,984 |
Senior Secured Credit Facilities and First Lien Notes | ||
Total maturities, principal amount | ||
2022 (remaining nine months) | 31 | |
2023 | 213 | |
2024 | 6,007 | |
2025 | 1,758 | |
2026 | 4,017 | |
Thereafter | 12,743 | |
Total debt, principal amount | 24,769 | |
Unsecured Notes and Debentures | ||
Total maturities, principal amount | ||
2022 (remaining nine months) | 0 | |
2023 | 0 | |
2024 | 0 | |
2025 | 0 | |
2026 | 0 | |
Thereafter | 952 | |
Total debt, principal amount | 952 | |
Senior Notes and EMC Notes | ||
Total maturities, principal amount | ||
2022 (remaining nine months) | 0 | |
2023 | 0 | |
2024 | 1,000 | |
2025 | 1,625 | |
2026 | 0 | |
Thereafter | 0 | |
Total debt, principal amount | 2,625 | |
VMware Notes | ||
Total maturities, principal amount | ||
2022 (remaining nine months) | 0 | |
2023 | 1,500 | |
2024 | 0 | |
2025 | 0 | |
2026 | 750 | |
Thereafter | 2,500 | |
Total debt, principal amount | 4,750 | |
DFS Debt | ||
Total maturities, principal amount | ||
2022 (remaining nine months) | 3,844 | |
2023 | 4,249 | |
2024 | 774 | |
2025 | 850 | |
2026 | 36 | |
Thereafter | 0 | |
Total debt, principal amount | 9,753 | |
Margin Loan Facility | ||
Total maturities, principal amount | ||
2022 (remaining nine months) | 0 | |
2023 | 4,000 | |
2024 | 0 | |
2025 | 0 | |
2026 | 0 | |
Thereafter | 0 | |
Total debt, principal amount | 4,000 | |
Other | ||
Total maturities, principal amount | ||
2022 (remaining nine months) | 11 | |
2023 | 11 | |
2024 | 171 | |
2025 | 78 | |
2026 | 8 | |
Thereafter | 25 | |
Total debt, principal amount | $ 304 |
DERIVATIVE INSTRUMENTS AND HE_3
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Additional Information (Narrative) (Details) | 3 Months Ended |
Apr. 30, 2021 | |
Foreign Exchange Forward and Option | Designated as cash flow hedging instruments | |
Derivative [Line Items] | |
Term of derivative contract | 12 months |
Foreign Exchange Forward | Not Designated as Hedging Instrument | |
Derivative [Line Items] | |
Term of derivative contract | 3 months |
Foreign Exchange Forward | Not Designated as Hedging Instrument | Financing receivables | |
Derivative [Line Items] | |
Term of derivative contract | 3 years |
Interest Rate Swap | Not Designated as Hedging Instrument | |
Derivative [Line Items] | |
Term of derivative contract | 5 years |
Interest Rate Swap | Not Designated as Hedging Instrument | Structured financing debt | |
Derivative [Line Items] | |
Term of derivative contract | 3 years |
Cross Currency Interest Rate Contract | Not Designated as Hedging Instrument | |
Derivative [Line Items] | |
Term of derivative contract | 5 years |
DERIVATIVE INSTRUMENTS AND HE_4
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Notional Amounts of Outstanding Derivative Instruments (Details) - USD ($) $ in Millions | Apr. 30, 2021 | Jan. 29, 2021 |
Foreign exchange contracts | ||
Derivative [Line Items] | ||
Notional amount | $ 16,416 | $ 16,730 |
Foreign exchange contracts | Designated as cash flow hedging instruments | ||
Derivative [Line Items] | ||
Notional amount | 6,967 | 6,840 |
Foreign exchange contracts | Non-designated as hedging instruments | ||
Derivative [Line Items] | ||
Notional amount | 9,449 | 9,890 |
Interest rate contracts | Non-designated as hedging instruments | ||
Derivative [Line Items] | ||
Notional amount | $ 6,011 | $ 5,859 |
DERIVATIVE INSTRUMENTS AND HE_5
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) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2021 | May 01, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in Accumulated OCI, Net of Tax, on Derivatives | $ (1) | $ 167 |
Gain (Loss) Reclassified from Accumulated OCI into Income | (27) | 100 |
Gain (Loss) Recognized in Income | (23) | 13 |
Foreign exchange contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in Accumulated OCI, Net of Tax, on Derivatives | (1) | 167 |
Foreign exchange contracts | Total net revenue | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Reclassified from Accumulated OCI into Income | (29) | 96 |
Foreign exchange contracts | Total cost of net revenue | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Reclassified from Accumulated OCI into Income | 2 | 4 |
Foreign exchange contracts | Interest and other, net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in Income | (24) | 52 |
Interest rate contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in Accumulated OCI, Net of Tax, on Derivatives | 0 | 0 |
Interest rate contracts | Interest and other, net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Reclassified from Accumulated OCI into Income | 0 | 0 |
Gain (Loss) Recognized in Income | $ 1 | $ (39) |
DERIVATIVE INSTRUMENTS AND HE_6
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Fair Value of Derivative Instruments in the Condensed Consolidated Statements of Financial Position (Details) - USD ($) $ in Millions | Apr. 30, 2021 | Jan. 29, 2021 |
Derivatives, Fair Value [Line Items] | ||
Asset position | $ 242 | $ 298 |
Liability position | (276) | (327) |
Gross Amounts of Recognized Assets/ (Liabilities) | (34) | (29) |
Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts of Recognized Assets/ (Liabilities) | 60 | 94 |
Other Non- Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts of Recognized Assets/ (Liabilities) | 9 | 10 |
Other Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts of Recognized Assets/ (Liabilities) | (70) | (98) |
Other Non-Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts of Recognized Assets/ (Liabilities) | (33) | (35) |
Designated as cash flow hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts of Recognized Assets/ (Liabilities) | 25 | 21 |
Designated as cash flow hedging instruments | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts of Recognized Assets/ (Liabilities) | 25 | 18 |
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) | 0 | 3 |
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] | ||
Asset position | 64 | 46 |
Liability position | (39) | (25) |
Designated as cash flow hedging instruments | Foreign exchange contracts | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset position | 45 | 28 |
Liability position | (20) | (10) |
Designated as cash flow hedging instruments | Foreign exchange contracts | Other Non- Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset position | 0 | 0 |
Liability position | 0 | 0 |
Designated as cash flow hedging instruments | Foreign exchange contracts | Other Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Asset position | 19 | 18 |
Liability position | (19) | (15) |
Designated as cash flow hedging instruments | Foreign exchange contracts | Other Non-Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Asset position | 0 | 0 |
Liability position | 0 | 0 |
Non-designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts of Recognized Assets/ (Liabilities) | (59) | (50) |
Non-designated as hedging instruments | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts of Recognized Assets/ (Liabilities) | 35 | 76 |
Non-designated as hedging instruments | Other Non- Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts of Recognized Assets/ (Liabilities) | 9 | 10 |
Non-designated as hedging instruments | Other Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts of Recognized Assets/ (Liabilities) | (70) | (101) |
Non-designated as hedging instruments | Other Non-Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts of Recognized Assets/ (Liabilities) | (33) | (35) |
Non-designated as hedging instruments | Foreign exchange contracts | ||
Derivatives, Fair Value [Line Items] | ||
Asset position | 168 | 242 |
Liability position | (210) | (271) |
Non-designated as hedging instruments | Foreign exchange contracts | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset position | 111 | 184 |
Liability position | (76) | (108) |
Non-designated as hedging instruments | Foreign exchange contracts | Other Non- Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset position | 0 | 0 |
Liability position | 0 | 0 |
Non-designated as hedging instruments | Foreign exchange contracts | Other Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Asset position | 57 | 58 |
Liability position | (127) | (159) |
Non-designated as hedging instruments | Foreign exchange contracts | Other Non-Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Asset position | 0 | 0 |
Liability position | (7) | (4) |
Non-designated as hedging instruments | Interest rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Asset position | 9 | 10 |
Liability position | (26) | (31) |
Non-designated as hedging instruments | Interest rate contracts | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset position | 0 | 0 |
Liability position | 0 | 0 |
Non-designated as hedging instruments | Interest rate contracts | Other Non- Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset position | 9 | 10 |
Liability position | 0 | 0 |
Non-designated as hedging instruments | Interest rate contracts | Other Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Asset position | 0 | 0 |
Liability position | 0 | 0 |
Non-designated as hedging instruments | Interest rate contracts | Other Non-Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Asset position | 0 | 0 |
Liability position | $ (26) | $ (31) |
DERIVATIVE INSTRUMENTS AND HE_7
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Gross amounts of derivative instruments, amounts offset due to master netting agreements (Details) - USD ($) $ in Millions | Apr. 30, 2021 | Jan. 29, 2021 |
Financial assets | ||
Gross Amounts of Recognized Assets/ (Liabilities) | $ 242 | $ 298 |
Gross Amounts Offset in the Statement of Financial Position | (173) | (194) |
Net Amounts of Assets/ (Liabilities) Presented in the Statement of Financial Position | 69 | 104 |
Financial Instruments | 0 | 0 |
Cash Collateral Received or Pledged | 0 | 0 |
Net Amount of Assets/ (Liabilities) Recognized in the Statement of Financial Position | 69 | 104 |
Financial liabilities | ||
Gross Amounts of Recognized Assets/ (Liabilities) | (276) | (327) |
Gross Amounts Offset in the Statement of Financial Position | 173 | 194 |
Net Amounts of Assets/ (Liabilities) Presented in the Statement of Financial Position | (103) | (133) |
Financial Instruments | 0 | 0 |
Cash Collateral Received or Pledged | 6 | 2 |
Net Amount of Assets/ (Liabilities) Recognized in the Statement of Financial Position | (97) | (131) |
Total derivative instruments | ||
Gross Amounts of Recognized Assets/ (Liabilities) | (34) | (29) |
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 |
Net Amounts of Assets/ (Liabilities) Presented in the Statement of Financial Position | (34) | (29) |
Financial Instruments | 0 | 0 |
Cash Collateral Received or Pledged | 6 | 2 |
Net Amount of Assets/ (Liabilities) Recognized in the Statement of Financial Position | $ (28) | $ (27) |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS - Goodwill (Details) $ in Millions | 3 Months Ended |
Apr. 30, 2021USD ($) | |
Goodwill [Roll Forward] | |
Goodwill | $ 40,829 |
Impact of foreign currency translation | 10 |
Goodwill | 40,839 |
Infrastructure Solutions Group | |
Goodwill [Roll Forward] | |
Goodwill | 15,324 |
Impact of foreign currency translation | 10 |
Goodwill | 15,334 |
Client Solutions Group | |
Goodwill [Roll Forward] | |
Goodwill | 4,237 |
Impact of foreign currency translation | 0 |
Goodwill | 4,237 |
VMware | |
Goodwill [Roll Forward] | |
Goodwill | 20,802 |
Impact of foreign currency translation | 0 |
Goodwill | 20,802 |
Other Businesses | |
Goodwill [Roll Forward] | |
Goodwill | 466 |
Impact of foreign currency translation | 0 |
Goodwill | $ 466 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS - Intangible Assets (Details) - USD ($) | 3 Months Ended | ||
Apr. 30, 2021 | May 01, 2020 | Jan. 29, 2021 | |
Business Acquisition [Line Items] | |||
Gross | $ 39,178,000,000 | $ 39,167,000,000 | |
Accumulated Amortization | (29,204,000,000) | (28,493,000,000) | |
Total | 9,974,000,000 | 10,674,000,000 | |
Total intangible assets | 42,933,000,000 | 42,922,000,000 | |
Intangible assets, net | 13,729,000,000 | 14,429,000,000 | |
Amortization expense | 700,000,000 | $ 900,000,000 | |
Impairment charges related to intangible assets acquired | 0 | ||
Gain on sale of assets | $ 120,000,000 | ||
Customer relationships | |||
Business Acquisition [Line Items] | |||
Gross | 22,394,000,000 | 22,394,000,000 | |
Accumulated Amortization | (15,864,000,000) | (15,448,000,000) | |
Total | 6,530,000,000 | 6,946,000,000 | |
Developed technology | |||
Business Acquisition [Line Items] | |||
Gross | 15,499,000,000 | 15,488,000,000 | |
Accumulated Amortization | (12,409,000,000) | (12,136,000,000) | |
Total | 3,090,000,000 | 3,352,000,000 | |
Trade names | |||
Business Acquisition [Line Items] | |||
Gross | 1,285,000,000 | 1,285,000,000 | |
Accumulated Amortization | (931,000,000) | (909,000,000) | |
Total | 354,000,000 | 376,000,000 | |
Trade names | |||
Business Acquisition [Line Items] | |||
Indefinite-lived trade names | $ 3,755,000,000 | $ 3,755,000,000 |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS - Amortization Expense (Details) - USD ($) $ in Millions | Apr. 30, 2021 | Jan. 29, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Fiscal 2022 (remaining nine months) | $ 1,993 | |
Fiscal 2023 | 1,826 | |
Fiscal 2024 | 1,457 | |
Fiscal 2025 | 1,107 | |
Fiscal 2026 | 861 | |
Thereafter | 2,730 | |
Total | $ 9,974 | $ 10,674 |
DEFERRED REVENUE - Changes in D
DEFERRED REVENUE - Changes in Deferred Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Apr. 30, 2021 | May 01, 2020 | Jan. 29, 2021 | |
Deferred revenue: | |||
Deferred revenue at beginning of period | $ 30,801 | $ 27,800 | |
Revenue deferrals | 6,480 | 5,423 | |
Revenue recognized | (5,905) | (5,356) | |
Other | 0 | (250) | |
Deferred revenue at end of period | 31,376 | 27,617 | |
Short-term deferred revenue | 16,835 | 14,766 | $ 16,525 |
Long-term deferred revenue | $ 14,541 | $ 12,851 | $ 14,276 |
DEFERRED REVENUE - Remaining Pe
DEFERRED REVENUE - Remaining Performance Obligation, Expected Timing (Details) $ in Billions | Apr. 30, 2021USD ($) |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation, amount | $ 42 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-05-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, percentage | 61.00% |
Deferred revenue recognition period | 12 months |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Millions | Mar. 23, 2020patent | Dec. 30, 2019plaintiff | Oct. 22, 2019patent | Aug. 20, 2019patent | Apr. 25, 2019patenttrademark | Apr. 30, 2021plaintiff | Jan. 31, 2020USD ($) |
Class V Transaction Class Action Case | |||||||
Loss Contingencies [Line Items] | |||||||
Number of stockholders | plaintiff | 4 | ||||||
Cirba Inc Versus VMware, Inc | |||||||
Loss Contingencies [Line Items] | |||||||
Patents allegedly infringed | patent | 1 | 4 | 2 | ||||
Trademarks allegedly infringed | trademark | 3 | ||||||
Amount awarded to other party | $ | $ 237 | ||||||
Cirba Inc Versus VMware, Inc | Selling, general, and administrative | |||||||
Loss Contingencies [Line Items] | |||||||
Amount awarded to other party | $ | $ 0 | ||||||
VMware Inc Versus Cirba Inc | |||||||
Loss Contingencies [Line Items] | |||||||
Patents allegedly infringed | patent | 4 | ||||||
Class Actions VMware, Inc.’s Acquisition Of Pivotal Software | |||||||
Loss Contingencies [Line Items] | |||||||
Number of stockholders | plaintiff | 2 |
INCOME AND OTHER TAXES - Narrat
INCOME AND OTHER TAXES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Apr. 30, 2021 | May 01, 2020 | Jan. 29, 2021 | |
Income Tax Disclosure [Abstract] | |||
Effective income tax rate | 5.00% | (33.80%) | |
Pre-tax gains (losses) | $ 987 | $ 136 | |
Tax benefit from share-based compensation | 103 | ||
Discrete tax benefit from intra-entity asset transfer | 59 | ||
Unrecognized tax benefits | $ 1,400 | $ 1,400 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Changes in Accumulated Other Comprehensive Loss, Net of Tax (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2021 | May 01, 2020 | |
AOCI [Roll Forward] | ||
Balance, beginning of period | $ 7,553 | $ 3,155 |
Other comprehensive income (loss) before reclassifications | (7) | |
Amounts reclassified from accumulated other comprehensive income (loss) | 27 | |
Total other comprehensive income (loss), net of tax expense (benefit) of $(2) and $10, respectively | 20 | (84) |
Less: Change in comprehensive income (loss) attributable to non-controlling interests | 0 | (3) |
Balance, end of period | 8,586 | 3,240 |
Accumulated Other Comprehensive Income (Loss) | ||
AOCI [Roll Forward] | ||
Balance, beginning of period | (314) | (709) |
Total other comprehensive income (loss), net of tax expense (benefit) of $(2) and $10, respectively | 20 | |
Balance, end of period | (294) | $ (790) |
Foreign Currency Translation Adjustments | ||
AOCI [Roll Forward] | ||
Balance, beginning of period | (150) | |
Balance, end of period | (157) | |
Cash Flow Hedges | ||
AOCI [Roll Forward] | ||
Balance, beginning of period | (86) | |
Balance, end of period | (60) | |
Pension and Other Postretirement Plans | ||
AOCI [Roll Forward] | ||
Balance, beginning of period | (78) | |
Balance, end of period | (77) | |
Foreign Currency Translation Adjustments Including Portion Attributable to Noncontrolling Interest | ||
AOCI [Roll Forward] | ||
Other comprehensive income (loss) before reclassifications | (7) | |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | |
Total other comprehensive income (loss), net of tax expense (benefit) of $(2) and $10, respectively | (7) | |
Cash Flow Hedges Including Portion Attributable to Noncontrolling Interests | ||
AOCI [Roll Forward] | ||
Other comprehensive income (loss) before reclassifications | (1) | |
Amounts reclassified from accumulated other comprehensive income (loss) | 27 | |
Total other comprehensive income (loss), net of tax expense (benefit) of $(2) and $10, respectively | 26 | |
Pensions | ||
AOCI [Roll Forward] | ||
Other comprehensive income (loss) before reclassifications | 1 | |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | |
Total other comprehensive income (loss), net of tax expense (benefit) of $(2) and $10, respectively | 1 | |
Foreign Currency Translation Adjustments Portion Attributable to Noncontrolling Interest | ||
AOCI [Roll Forward] | ||
Less: Change in comprehensive income (loss) attributable to non-controlling interests | 0 | |
Cash Flow Hedges Attributable to Noncontrolling Interests | ||
AOCI [Roll Forward] | ||
Less: Change in comprehensive income (loss) attributable to non-controlling interests | 0 | |
Pension and Other Postretirement Plans Portion Attributable to Noncontrolling Interest | ||
AOCI [Roll Forward] | ||
Less: Change in comprehensive income (loss) attributable to non-controlling interests | $ 0 |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Reclassifications Out of Accumulated Other Comprehensive Income (Loss), Net of Tax, to Net Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2021 | May 01, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Net revenue | $ 24,487 | $ 21,897 |
Cost of net revenue | (16,829) | (15,044) |
Operating expenses | 6,283 | 6,151 |
Total reclassifications, net of tax | 938 | 182 |
Total reclassifications, net of tax | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Net revenue | (29) | 96 |
Cost of net revenue | 2 | 4 |
Operating expenses | 0 | (2) |
Total reclassifications, net of tax | (27) | 98 |
Total reclassifications, net of tax | Cash Flow Hedges | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Net revenue | (29) | 96 |
Cost of net revenue | 2 | 4 |
Operating expenses | 0 | 0 |
Total reclassifications, net of tax | (27) | 100 |
Total reclassifications, net of tax | Pensions | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Net revenue | 0 | 0 |
Cost of net revenue | 0 | 0 |
Operating expenses | 0 | (2) |
Total reclassifications, net of tax | $ 0 | $ (2) |
NON-CONTROLLING INTERESTS - Add
NON-CONTROLLING INTERESTS - Additional Information (Narrative) (Details) - USD ($) $ in Millions | Apr. 30, 2021 | Jan. 29, 2021 | May 01, 2020 | Jan. 31, 2020 |
Noncontrolling Interest [Line Items] | ||||
Non-controlling interests | $ 8,586 | $ 7,553 | $ 3,240 | $ 3,155 |
Non-controlling interests | ||||
Noncontrolling Interest [Line Items] | ||||
Non-controlling interests | $ 5,099 | $ 5,074 | $ 4,854 | $ 4,729 |
VMware, Inc. | ||||
Noncontrolling Interest [Line Items] | ||||
Outstanding equity interest held | 80.70% | 80.60% | ||
VMware, Inc. | Non-controlling interests | ||||
Noncontrolling Interest [Line Items] | ||||
Non-controlling interests | $ 5,000 | $ 5,000 | ||
SecureWorks | ||||
Noncontrolling Interest [Line Items] | ||||
Outstanding equity interest held | 84.60% | 85.70% | ||
Outstanding equity interest, including RSAs | 83.80% | 84.90% | ||
SecureWorks | Non-controlling interests | ||||
Noncontrolling Interest [Line Items] | ||||
Non-controlling interests | $ 101 | $ 96 |
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 | |
Apr. 30, 2021 | May 01, 2020 | |
Noncontrolling Interest [Abstract] | ||
Net income attributable to Dell Technologies Inc. | $ 887 | $ 143 |
Transfers (to)/from the non-controlling interests: | ||
Increase in Dell Technologies Inc. additional paid-in-capital for equity issuances and other equity activity | 251 | |
Decrease in Dell Technologies Inc. additional paid-in-capital for equity issuances and other equity activity | (249) | |
Net transfers to non-controlling interests | 2 | |
Change from net income attributable to Dell Technologies Inc. and transfers to the non-controlling interests | $ 889 |
CAPITALIZATION - Schedule of St
CAPITALIZATION - Schedule of Stock by Class (Details) - shares | Apr. 30, 2021 | Jan. 29, 2021 |
Class of Stock [Line Items] | ||
Authorized (in shares) | 9,143,000,000 | 9,143,000,000 |
Issued (in shares) | 772,000,000 | 761,000,000 |
Outstanding shares (in shares) | 764,000,000 | 753,000,000 |
Class A | ||
Class of Stock [Line Items] | ||
Authorized (in shares) | 600,000,000 | 600,000,000 |
Issued (in shares) | 385,000,000 | 385,000,000 |
Outstanding shares (in shares) | 385,000,000 | 385,000,000 |
Class B | ||
Class of Stock [Line Items] | ||
Authorized (in shares) | 200,000,000 | 200,000,000 |
Issued (in shares) | 102,000,000 | 102,000,000 |
Outstanding shares (in shares) | 102,000,000 | 102,000,000 |
Class C | ||
Class of Stock [Line Items] | ||
Authorized (in shares) | 7,900,000,000 | 7,900,000,000 |
Issued (in shares) | 285,000,000 | 274,000,000 |
Outstanding shares (in shares) | 277,000,000 | 266,000,000 |
Class D | ||
Class of Stock [Line Items] | ||
Authorized (in shares) | 100,000,000 | 100,000,000 |
Issued (in shares) | 0 | 0 |
Outstanding shares (in shares) | 0 | 0 |
Class V | ||
Class of Stock [Line Items] | ||
Authorized (in shares) | 343,000,000 | 343,000,000 |
Issued (in shares) | 0 | 0 |
Outstanding shares (in shares) | 0 | 0 |
CAPITALIZATION - Preferred Stoc
CAPITALIZATION - Preferred Stock Narrative (Details) - $ / shares | Apr. 30, 2021 | Jan. 29, 2021 |
Equity [Abstract] | ||
Preferred stock, authorized (in shares) | 1,000,000 | |
Preferred stock, par value (in dollars per share) | $ 0.01 | |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
CAPITALIZATION - Common Stock N
CAPITALIZATION - Common Stock Narrative (Details) | 3 Months Ended | |
Apr. 30, 2021vote$ / sharesshares | Jan. 29, 2021$ / shares | |
Class of Stock [Line Items] | ||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 |
Class A | ||
Class of Stock [Line Items] | ||
Number of voting interests per share | 10 | |
Class B | ||
Class of Stock [Line Items] | ||
Number of voting interests per share | 10 | |
Class C | ||
Class of Stock [Line Items] | ||
Number of voting interests per share | 1 | |
Conversion of stock, shares issued (in shares) | shares | 49,209 | |
Class D | ||
Class of Stock [Line Items] | ||
Number of voting interests per share | 1 |
CAPITALIZATION - Repurchases of
CAPITALIZATION - Repurchases of Common Stock Narrative (Details) - USD ($) shares in Millions | Feb. 24, 2020 | Apr. 30, 2021 | May 01, 2020 | Jul. 15, 2020 | May 29, 2019 |
Class of Stock [Line Items] | |||||
Aggregate purchase price | $ 240,000,000 | ||||
Class C | |||||
Class of Stock [Line Items] | |||||
Stock repurchases, authorized amount | $ 1,000,000,000 | ||||
Stock repurchase program, term | 24 months | ||||
Stock repurchases, remaining authorized amount | $ 760,000,000 | ||||
Shares repurchased (in shares) | 6 | ||||
Aggregate purchase price | $ 240,000,000 | ||||
Class A | |||||
Class of Stock [Line Items] | |||||
Stock repurchases, authorized amount | $ 1,000,000,000 | ||||
Stock repurchases, remaining authorized amount | $ 684,000,000 | ||||
Shares repurchased (in shares) | 2.5 | 1.5 | |||
Aggregate purchase price | $ 371,000,000 | $ 181,000,000 | |||
Shares withheld for tax withholding obligation | $ 52,000,000 | $ 154,000,000 | |||
Class A | January 2017 and August 2017 Authorizations | |||||
Class of Stock [Line Items] | |||||
Stock repurchases, authorized amount | $ 1,500,000,000 |
EARNINGS PER SHARE - Schedule o
EARNINGS PER SHARE - Schedule of Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Apr. 30, 2021 | May 01, 2020 | |
Earnings Per Share [Abstract] | ||
Earnings (loss) per share - basic (in dollars per share) | $ 1.17 | $ 0.19 |
Earnings (loss) per share - diluted (in dollars per share) | $ 1.13 | $ 0.19 |
Numerator: Continuing operations | ||
Net income attributable to Dell Technologies — basic | $ 887 | $ 143 |
Incremental dilution from VMware | (2) | (2) |
Net income (loss) - diluted | $ 885 | $ 141 |
Denominator: weighted-average shares outstanding | ||
Weighted-average shares outstanding - basic (in shares) | 757 | 740 |
Dilutive effect of options, restricted stock units, restricted stock, and other (in shares) | 25 | 15 |
Weighted-average shares outstanding - diluted (in shares) | 782 | 755 |
Weighted-average shares outstanding - antidilutive (in shares) | 0 | 8 |
REDEEMABLE SHARES (Details)
REDEEMABLE SHARES (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Apr. 30, 2021 | Jan. 29, 2021 | |
Temporary Equity [Line Items] | ||
Holding period | 6 months | |
Redeemable shares classified as temporary equity | $ 558 | $ 472 |
RSUs | ||
Temporary Equity [Line Items] | ||
Redeemable shares outstanding (in shares) | 1 | 0 |
Redeemable shares issued (in shares) | 1 | 0 |
Employee Stock Option | ||
Temporary Equity [Line Items] | ||
Redeemable shares outstanding (in shares) | 3 | 6 |
Redeemable shares issued (in shares) | 3 | 6 |
Common Stock | ||
Temporary Equity [Line Items] | ||
Redeemable shares outstanding (in shares) | 1 | 2 |
Redeemable shares issued (in shares) | 1 | 2 |
SEGMENT INFORMATION - Additiona
SEGMENT INFORMATION - Additional Information (Narrative) (Details) | 3 Months Ended |
Apr. 30, 2021segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
SEGMENT INFORMATION - Reconcili
SEGMENT INFORMATION - Reconciliation of net revenue by reportable segments to consolidated net revenue (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2021 | May 01, 2020 | |
Segment Reporting Information [Line Items] | ||
Total net revenue | $ 24,487 | $ 21,897 |
Consolidated operating income (loss) | 1,375 | 702 |
Amortization of intangibles | (700) | (900) |
Operating segments | ||
Segment Reporting Information [Line Items] | ||
Total net revenue | 24,207 | 21,428 |
Consolidated operating income (loss) | 2,719 | 2,097 |
Operating segments | Infrastructure Solutions Group | ||
Segment Reporting Information [Line Items] | ||
Total net revenue | 7,911 | 7,569 |
Consolidated operating income (loss) | 788 | 732 |
Operating segments | Client Solutions Group | ||
Segment Reporting Information [Line Items] | ||
Total net revenue | 13,305 | 11,104 |
Consolidated operating income (loss) | 1,090 | 592 |
Operating segments | VMware | ||
Segment Reporting Information [Line Items] | ||
Total net revenue | 2,991 | 2,755 |
Consolidated operating income (loss) | 841 | 773 |
Operating segments | Other businesses | ||
Segment Reporting Information [Line Items] | ||
Total net revenue | 290 | 517 |
Consolidated operating income (loss) | (5) | 65 |
Unallocated transactions | ||
Segment Reporting Information [Line Items] | ||
Total net revenue | 2 | 0 |
Consolidated operating income (loss) | 0 | (1) |
Other corporate expenses | (119) | (95) |
Reconciling items | ||
Segment Reporting Information [Line Items] | ||
Total net revenue | (12) | (48) |
Impact of purchase accounting | (25) | (63) |
Amortization of intangibles | (709) | (855) |
Transaction-related expenses | (51) | (76) |
Stock-based compensation expense | $ (435) | $ (370) |
SEGMENT INFORMATION - Net reven
SEGMENT INFORMATION - Net revenue and property, plant and equipment (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2021 | May 01, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Total net revenue | $ 24,487 | $ 21,897 |
Operating segments | ||
Disaggregation of Revenue [Line Items] | ||
Total net revenue | 24,207 | 21,428 |
Operating segments | Infrastructure Solutions Group | ||
Disaggregation of Revenue [Line Items] | ||
Total net revenue | 7,911 | 7,569 |
Operating segments | Infrastructure Solutions Group | Servers and networking | ||
Disaggregation of Revenue [Line Items] | ||
Total net revenue | 4,109 | 3,758 |
Operating segments | Infrastructure Solutions Group | Storage | ||
Disaggregation of Revenue [Line Items] | ||
Total net revenue | 3,802 | 3,811 |
Operating segments | Client Solutions Group | ||
Disaggregation of Revenue [Line Items] | ||
Total net revenue | 13,305 | 11,104 |
Operating segments | Client Solutions Group | Commercial | ||
Disaggregation of Revenue [Line Items] | ||
Total net revenue | 9,803 | 8,634 |
Operating segments | Client Solutions Group | Consumer | ||
Disaggregation of Revenue [Line Items] | ||
Total net revenue | 3,502 | 2,470 |
Operating segments | VMware | ||
Disaggregation of Revenue [Line Items] | ||
Total net revenue | $ 2,991 | $ 2,755 |
SUPPLEMENTAL CONSOLIDATED FIN_3
SUPPLEMENTAL CONSOLIDATED FINANCIAL INFORMATION - Information on Selected Accounts (Details) - USD ($) $ in Millions | Apr. 30, 2021 | Jan. 29, 2021 |
Cash, cash equivalents, and restricted cash: | ||
Cash and cash equivalents | $ 14,244 | $ 14,201 |
Restricted cash - other current assets | 930 | 891 |
Restricted cash - other non-current assets | 86 | 92 |
Total cash, cash equivalents, and restricted cash | 15,260 | 15,184 |
Inventories, net: | ||
Production materials | 2,023 | 1,717 |
Work-in-process | 739 | 677 |
Finished goods | 1,066 | 1,008 |
Total inventories, net | 3,828 | 3,402 |
Property, plant, and equipment, net: | ||
Total property, plant, and equipment | 15,469 | 15,184 |
Accumulated depreciation and amortization | (8,912) | (8,753) |
Total property, plant, and equipment, net | 6,557 | 6,431 |
Other non-current assets: | ||
Deferred and other tax assets | 6,351 | 6,230 |
Operating lease ROU assets | 2,088 | 2,117 |
Deferred commissions | 1,111 | 1,094 |
Other | 1,807 | 1,755 |
Total other non-current assets | 11,357 | 11,196 |
Computer equipment | ||
Property, plant, and equipment, net: | ||
Total property, plant, and equipment | 6,839 | 6,506 |
Land and buildings | ||
Property, plant, and equipment, net: | ||
Total property, plant, and equipment | 4,670 | 4,745 |
Machinery and other equipment | ||
Property, plant, and equipment, net: | ||
Total property, plant, and equipment | $ 3,960 | $ 3,933 |
SUPPLEMENTAL CONSOLIDATED FIN_4
SUPPLEMENTAL CONSOLIDATED FINANCIAL INFORMATION - Trade Receivables — Allowance for Expected Credit Losses (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2021 | May 01, 2020 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at beginning of period | $ 104 | $ 94 |
Provision charged to income statement | 10 | 36 |
Bad debt write-offs | (10) | (13) |
Balance at end of period | 104 | 144 |
Adjustment for adoption of accounting standards | ||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at beginning of period | $ 0 | $ 27 |
SUPPLEMENTAL CONSOLIDATED FIN_5
SUPPLEMENTAL CONSOLIDATED FINANCIAL INFORMATION - Warranty Liability (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2021 | May 01, 2020 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Warranty liability at beginning of period | $ 473 | $ 496 |
Costs accrued for new warranty contracts and changes in estimated for pre-existing warranties | 202 | 148 |
Service obligations honored | (217) | (168) |
Warranty liability at end of period | 458 | 476 |
Current portion | 345 | 333 |
Non-current portion | $ 113 | $ 143 |
SUPPLEMENTAL CONSOLIDATED FIN_6
SUPPLEMENTAL CONSOLIDATED FINANCIAL INFORMATION - Severance Liability (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2021 | May 01, 2020 | |
Restructuring Reserve [Roll Forward] | ||
Severance liability at beginning of period | $ 138 | $ 196 |
Severance charges to provision | 30 | 98 |
Cash paid and other | (74) | (168) |
Severance liability at end of period | $ 94 | $ 126 |
SUPPLEMENTAL CONSOLIDATED FIN_7
SUPPLEMENTAL CONSOLIDATED FINANCIAL INFORMATION - Severance Charges (Details) - Employee Severance - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2021 | May 01, 2020 | |
Restructuring Cost and Reserve [Line Items] | ||
Total severance charges | $ 30 | $ 98 |
Cost of net revenue | ||
Restructuring Cost and Reserve [Line Items] | ||
Total severance charges | 13 | 10 |
Selling, general, and administrative | ||
Restructuring Cost and Reserve [Line Items] | ||
Total severance charges | 14 | 81 |
Research and development | ||
Restructuring Cost and Reserve [Line Items] | ||
Total severance charges | $ 3 | $ 7 |
SUPPLEMENTAL CONSOLIDATED FIN_8
SUPPLEMENTAL CONSOLIDATED FINANCIAL INFORMATION - Interest and Other, Net (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2021 | May 01, 2020 | |
Interest and other, net: | ||
Investment income, primarily interest | $ 11 | $ 24 |
Gain on investments, net | 157 | 94 |
Interest expense | (510) | (672) |
Foreign exchange | (49) | (99) |
Other | 3 | 87 |
Total interest and other, net | $ (388) | $ (566) |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | ||
Jun. 07, 2021 | Apr. 30, 2021 | May 01, 2020 | May 01, 2021 | |
Subsequent Event [Line Items] | ||||
Repayments of debt | $ 4,070 | $ 5,405 | ||
Boomi | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Divestiture transaction amount | $ 4,000 | |||
2.46% Margin Loan Facility due April 2022 | Other | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Repayments of debt | $ 1,000 |